Lagenda Properties, Bina Darulaman, Tek Seng, FGV, PPB, CME, Focus Dynamics, AE Multi, Notion VTec, Axiata and AirAsia
KUALA LUMPUR (Oct 30): Based on corporate announcements and news flow today, stocks in focus for Monday (Nov 2) may include the following: Lagenda Properties Bhd, Bina Darulaman Bhd, Tek Seng Holdings Bhd, FGV Holdings Bhd, PPB Group Bhd, CME Group Bhd, Focus Dynamics Group Bhd, AE Multi Holdings Bhd, Notion VTec Bhd, Axiata Group Bhd and AirAsia Group Bhd.
Lagenda Properties Bhd, formerly known as D.B.E. Gurney Resources Bhd, has entered into a Memorandum of Understanding with BDB Land Sdn Bhd, a unit of Bina Darulaman Bhd, to build affordable homes, with the possibility of a recurring partnership between the two parties.
Under the MOU, both parties will negotiate and endeavour to enter into a joint venture to develop affordable homes over 230 acres of land in Kuala Muda, Kedah Darul Aman.
Both parties intend to further extend this partnership by developing other parcels of land located within the vicinity of the area, upon successful completion of the proposed development or reaching a certain milestone or sales target.
Tek Seng Holdings Bhd saw its net profit for the third quarter ended Sept 30, 2020 surging by more than 40 times to RM8.1 million from RM191,000 a year ago on higher PVC sales and profit. Revenue rose 23.35% to RM49.29 million from RM39.96 million.
For the nine months ended Sept 30, the group returned to the black with a net profit of RM19.25 million, from a net loss of RM3.32 million a year ago. Revenue for the nine-month period increased 9.55% to RM142.58 million from RM130.15 million in the previous corresponding period.
The Federal Land Development Authority (Felda) intends to buy over FGV Holdings Bhd’s palm oil mills, following the termination of the land lease agreement (LLA) between the two parties.
Tan Sri Abdul Wahid Omar, who heads the special task force set up to address issues at Felda, said the agency will also take over FGV’s palm oil mills scattered nationwide.
However, he did not disclose how much Felda will be paying for the mills nor the amount of compensation to be paid to FGV for the early termination of the 99-year LLA which took effect on Nov 1, 2011.
Given the latest developments, it seems that FGV will be left with roughly 67,000 of plantation land without any mills and a large cash pile with the compensation and the divestment.
Golden Screen Cinemas Sdn Bhd (GSC), Malaysia's largest cinema operator and a wholly-owned subsidiary of PPB Group Bhd, will be closing its cinemas nationwide for the whole of November.
This follows the announcement today by the Malaysian Association of Film Exhibitors to collectively suspend all cinema operations in the country temporarily.
"This is a temporary measure, however, as GSC continues to monitor the situation and hopes to reopen in December 2020 if market conditions improve," GSC said.
CME Group Bhd’s external auditors have included an emphasis of matter, drawing attention to a material uncertainty related to going concern in the group’s financial statements for the year ending June 30, 2020 (FY20).
Messrs Kreston John & Gan pointed out that CME had, in a note in its financial statements, said the group and the company had incurred accumulated losses of RM69.35 million and RM69.61 million respectively during FY20, and that their current liabilities had exceeded current assets by RM31.3 million and RM52.19 million respectively.
The auditors said this indicates the “existence of a material uncertainty which may cast significant doubt about the group and the company’s ability to continue as going concerns”.
Focus Dynamics Group Bhd has made a foray into the robotics food and beverage operations by teaming up with Saudee Group Bhd to roll out Malaysia's first robot-operated burger kiosks.
The group said it will lend its technological management expertise to develop a seamless, automated robotics operation with minimal human interaction.
Saudee, on its part, will provide research and development processes to produce appropriately packaged and custom processed food to cater for the robotics aspect.
AE Multi Holdings Bhd today signed a collaboration agreement with Ripcol Engineering Sdn Bhd to be a consultation service provider for companies that are entering the rubber glove-manufacturing industry.
Under the deal, Ripcol will be the lead project manager in the designing, fabricating, installing, testing and commissioning of glove-making facilities for the customers.
Meanwhile, AE Multi will be responsible to procure customers in Malaysia and Thailand and to advise the requirements in the setting up of glove manufacturing plants in Thailand as well as regulatory approvals for the glove business. AE Multi will also be involved in advising the sourcing of talents required to run glove production operations for customers in Malaysia and Thailand.
Notion VTec Bhd, which ventured into the production of personal protective equipment in June, will be investing some RM90 million to set up nine nitrile glove production lines.
It said the first phase comprises an estimated capital expenditure (capex) of RM30 million for three lines with an output of 60 million pieces of gloves per month.
Meanwhile, the group has set a capex of RM60 million for the remaining six production lines, which are expected to commence operations before November 2021, adding another 120 million pieces of gloves to its monthly capacity.
Axiata Group Bhd has appointed former chairman of the Malaysian Communications and Multimedia Commission Tan Sri Dr Halim Shafie as its independent non-executive director.
On top of that, Axiata announced today that it has appointed Syed Ali Syed Salem Alsagoff as the Permodalan Nasional Bhd’s nominee to Axiata’s board.
Following the investigation by the Malaysian Anti-Corruption Commission into its RM300 million loan from Sabah Development Bank Bhd (SDB), AirAsia Group Bhd has come out to clarify that the transaction was completed in accordance with all relevant laws, policies and procedures.
AirAsia stressed all discussions and negotiations with SDB and its officials were conducted in an appropriate manner, and on an arm's length basis.
It explained that the loan from SDB is to be utilised for AirAsia's expansion plans to transform Kota Kinabalu into an international hub for its passenger and logistics operations.
https://www.theedgemarkets.com/article/lagenda-properties-bina-darulaman-tek-seng-fgv-ppb-cme-focus-dynamics-ae-multi-notion-vtec
