AmanahRaya REIT, IOI Corp, Alam Maritim, CIMB, KSL, Tanjung Offshore, Genetec, Plenitude, Gamuda, VS Industry, Magni-Tech, Destini, Fututech, PetChem



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KUALA LUMPUR (June 23): Based on corporate announcements and news flow today, the companies that may be in focus tomorrow (Wednesday, June 24) could be the following: AmanahRaya Real Estate Investment Trust, IOI Corp Bhd, Alam Maritim Resources Bhd, Puncak Niaga Holdings Bhd, CIMB Group Holdings Bhd, KSL Holdings Bhd, Tanjung Offshore Bhd, Genetec Technology Bhd, Plenitude Bhd, Gamuda Bhd, VS Industry Bhd, Magni-Tech Industries Bhd, Destini Bhd, Fututech Bhd and Petronas Chemicals Group Bhd (PetChem).

AmanahRaya Real Estate Investment Trust (REIT) is selling Wisma AmanahRaya on Jalan Ampang to its major unitholder Amanah Raya Bhd (ARB) for RM78 million, in which the proceeds will be used to buy more yield and value accretive properties or to repay borrowings.

ARB owns over 63% stake in AmanahRaya REIT (fundamental: 1.3; valuation: 2.7).

In a filing with Bursa Malaysia today, AmanahRaya REIT said its trustee CIMB Islamic Trustee Bhd had entered into a conditional sale and purchase agreement with Annex Sentral Sdn Bhd for the said disposal.

Annex is a wholly-owned subsidiary of AmanahRaya Development Sdn Bhd, which in turn is a wholly-owned unit of ARB.

The REIT’s manager, AmanahRaya-REIT Managers Sdn Bhd, said it is of the view there is limited upside potential to the future value of Wisma AmanahRaya, hence it reasoned this is an “opportunistic” disposal.

AmanahRaya REIT’s cost of investment into Wisma AmanahRaya was RM68 million as at Feb 26, 2007. Taking into account RM3.98 million as expenses for the proposed disposal, the REIT is expected to book a one-off net realised gain of about RM6.02 million.

With regards to the physical proceeds of RM78 million, around RM74.02 million will be redeployed to new investments within the next 12 months.

The proposed disposal is subject to the approval of AmanahRaya REIT’s unitholder, at an extraordinary general meeting to be convened.

The REIT expects to complete the disposal by the fourth quarter of 2015. 

Plantation group IOI Corp Bhd has formed a joint venture with Irish food company Kerry Group Plc to develop and market the nutrition lipid Betapol business.

Betapol is a palm oil-derived nutritional additive that is used to fortify infant milk powder globally.

IOI Corp (fundamental: 1.2; valuation: 1.1) said in a filing with Bursa Malaysia today that Betapol, one of Loders Croklaan Group BV’s groundbreaking innovations, will be integrated into Kerry Group’s global nutritional ingredients portfolio, backed by global applications, marketing and sales support.

IOI Corp said Loders Croklaan Group has agreed to subscribe for 100 shares worth €1 each and €25 million (RM105 million) redeemable shares totalling US$25 million, in LCK Nutrition Ltd (LCK).

Kerry is a public food company headquartered in Ireland and is listed on the Irish and London stock exchanges.

Alam Maritim Resources Bhd’s jointly controlled entity Alam Swiber Offshore (M) Sdn Bhd has clinched an installation works contract for the replacement of subsea pipeline worth RM22 million.

In a filing with Bursa Malaysia today, Alam Maritim (fundamental: 1.6; valuation: 1.5) said Alam Swiber Offshore entered into an agreement with Chevron Malaysia Ltd (Chevron) in relation to the contract.

It added that the contract is for the installation works for replacement of subsea pipeline at Chevron's Prai Terminal.

Alam Maritim said the contract is expected to commence in early June 2015 and to be completed by Dec 31 this year.

Puncak Niaga (M) Sdn Bhd (PNSB), a wholly-owned subsidiary of Puncak Niaga Holdings Bhd, has entered into an agreement with Pengurusan Air Selangor Sdn Bhd (Air Selangor) for the abstraction of water from the Bernam River Headworks new water treatment plant under Air Selangor’s licence.

In a filing with Bursa Malaysia today, Puncak Niaga (fundamental: 1.9; valuation: 2.1) said under the agreement, Air Selangor will grant rights to PNSB under its license, which was issued by Lembaga Urus Air Selangor (LUAS), to extract water from the water source at the Bernam River water treatment plant from Aug 1, 2015 to Oct 31 the same year.

The agreement can be renewed for three months at a time — at the discretion of Air Selangor — upon the receipt of a written request from PNSB.

CIMB Group Holdings Bhd, the country's second-largest bank by assets, said it has obtained the Securities Commission Malaysia's (SC) approval to issue RM6 billion worth of conventional and Islamic bonds.

In a filing with Bursa Malaysia, CIMB (fundamental: 1.05; valuation: 2.25) said the SC had approved its conventional and Islamic commercial papers programme last Friday.

CIMB said the bonds would replace its conventional commercial papers programme and Islamic commercial papers programme, which expired on Sept 4, 2014 and March 4, 2015.

According to CIMB, proceeds from the RM6 billion issuance would be used to refinance borrowings, and fund asset acquisitions and working capital needs.

Johor-based property developer KSL Holdings Bhd plans to start the construction of KSL City Mall 2, expected to be one of the largest shopping malls in Klang, by the end of 2015.

In a statement today, the company said KSL City Mall 2, with total gross floor area of about 2 million sq ft, will be integrated with a 400-room hotel and three blocks of service apartments adjoining it.

KSL (fundamental: 2.6; valuation: 3.0) chairman Ku Hwa Seng said the integrated development with a total gross development value of about RM2 billion would cater to the rapidly-expanding population in Klang, which stood at approximately 1.2 million in 2014.

Oil and gas engineering firm Tanjung Offshore Bhd has lodged a police report on its purchase of a chromite mine in the Philippines and a rubber-material substitute plant in China. It has also made a formal complaint to the Malaysian Anti-Corruption Commission (MACC) regarding a property purchase in the UK.

In a statement today, the company said the three deals were negotiated and executed under the previous board of directors and were identified as irregular, following a forensic audit by Ferrier Hodgson.

The MACC report was filed against a former director of Tanjung Offshore (fundamental: 1.65; valuation: 0.9) and several ex-senior officials for “corruptly receiving gratification” after facilitating the company’s purchase of a property in Birmingham, UK.

The company spent RM62.7 million to purchase the property, out of which a total of RM27.4 million for refurbishment is still being investigated.

Meanwhile, a police report was made against the same former director and a China national for dishonestly and fraudulently misappropriating the company’s funds in the Philippine chromite mine deal and ethylene propylene diene monomer (EPDM) project in China.

Automated industrial systems, equipments and services provider Genetec Technology Bhd has secured new orders from its existing clients from various industries amounting to RM27.3 million.

According to the company's filing with Bursa Malaysia today, it bagged RM25.3 million worth of jobs from the electronics, semiconductor and hard disk drive industry, some RM1.7 million from the automotive industry and RM300,000 from other industries.  

Genetec (fundamental: 0.8; valuation: 0.3) said the tenure of the contracts normally range from three to nine months depending on the size of order and scope of work.

Property developer Plenitude Bhd said it is exercising its right to compulsorily acquire the remaining shares in The Nomad Group Bhd after it has gained more than 90% stake in the latter.

In a filing with Bursa Malaysia today, Plenitude (fundamental: 2.7; valuation: 1.4) said it has posted the notice of compulsory acquisition to the dissenting shareholders of Nomad to offer them the same offer price of RM1.25 per Nomad (fundamental: 0.9; valuation: 1.1) share.

Property developer and builder Gamuda Bhd saw its net profit decline 9.83% to RM160.43 million or 6.81 sen per share for the third financial quarter ended April 30, 2015 (3QFY15), from RM177.92 million or 7.74 sen per share a year ago, on completion of the electrified double tracking railway project and a soft property market.

In a filing with Bursa Malaysia today, Gamuda (fundamental: 2.2; valuation: 1.1) said the electrified double-tracking railway project was completed in November last year.

Revenue fell 12.63% to RM553.78 million in 3QFY15, from RM633.83 million in 3QFY14.

The group also declared a second interim dividend of 6 sen per share for the financial year ending July 31, 2015, payable on July 29.

For the nine months period (9MFY15), its net profit grew 2.91% to RM528.46 million or 22.58 sen per share, from RM513.51 million or 22.39 sen per share in 9MFY14; while revenue rose 8.54% to RM1.78 billion, from RM1.64 billion.

VS Industry Bhd’s net profit jumped almost seven-fold to RM26.52 million or 6 sen per share for the third quarter ended April 30, 2015 (3QFY15) from RM3.82 million or 2.5 sen a share a year ago, on higher sales and a better sales mix from its Malaysian operations.

VS Industry's (fundamental: 1.3; valuation: 2) revenue was up 12% to RM420.10 million from RM376 million a year ago, according to the company’s filing to Bursa Malaysia today.

For the accumulated nine months, the integrated electronic manufacturing services (EMS) provider’s net profit increased almost five times to RM80.04 million from RM17.14 million in 9MFY15; revenue was at RM1.43 billion from RM1.18 billion last year, up 21%.

It also declared a third interim dividend of 6 sen per share for the period, payable on July 28, bringing its total dividend for FY15 thus far to 12 sen.

The cumulative 9MFY15 dividend payout of RM26.1 million represents 32.5% of VS Industry’s net profit in 9MFY15 — the company has a dividend policy of distributing at least 40% of group net profit to shareholders.

Apparel and flexible packaging products manufacturer Magni-Tech Industries Bhd recorded a 94.7% jump in its net profit for its fourth financial quarter ended April 30, 2015 (4QFY15) to RM16.54 million or 15.24 sen per share from RM8.49 million or 7.83 sen per share in 4QFY14, mainly due to higher revenue and other operating income, as well as lower cost of sales for its garment business.

In a filing with Bursa Malaysia today, Magni-Tech (fundamental: 2.8; valuation: 2.4) saw an 8.8% increase in its 4QFY15’s revenue at RM176.73 million, compared with RM162.44 million in the same quarter a year ago, due to a 12% increase in sale orders for its garment business.

The company has recommended a final dividend of 3 sen per share, and a special dividend of 7 sen per share for the financial year ended April 30, 2015 (FY15).

For the full FY15, Magni-Tech recorded a 24.2% increase in net profit to RM52.11 million or 48.04 sen per share, from RM41.95 million or 38.67 sen per share a year ago, which the group attributed to higher revenue and other operating and investment related income, as well as lower cost of sales for its garment business.

Revenue for FY15 also increased by 10% to RM716.38 million from RM651.27 million in FY14, thanks to higher sales orders received for its garment business.

Fututech Bhd is targeting to launch its maiden residential project dubbed "Vista Residence" which carries RM300 million in gross development value (GDV) at Gohtong Jaya, Pahang by the fourth quarter of this year.

Fututech executive chairman Datuk Tee Eng Ho said subsequent to the said project, the group will launch its second residential project in Monterez Golf and Country Club, Shah Alam, which has a projected GDV of RM200 million.

Currently, Fututech (fundamental: 3.0; valuation: 2.4) has RM130 million worth of contracts on hand.

On Fututech's proposed acquisitions of Kerjaya Prospek (M) Sdn Bhd and Permatang Bakti Sdn Bhd, Tee expects the deals to be closed by end of the third quarter of this year.

By then, he expects Fututech would be able to realise some RM1.8 billion order book and RM2.3 billion worth of contracts the Kerjaya Prospect has.

Petronas Chemicals Group Bhd (PetChem) reported that a fire broke out at one of its silos (intermediate product storage vessel) in Kertih, Terengganu at about 5:00pm today.

In a statement today, PetChem (fundamental: 1.65; valuation: 1.1) said the incident occurred at its 60%-owned subsidiary Petronas Chemicals LDPE Sdn Bhd (PC LDPE).

“The incident has been brought under control. All relevant authorities have been informed. There are no casualties or injuries reported. There is no immediate threat to on-site personnel or the surrounding community,” the group said.

“The incident is confined to PC LDPE and there is no impact to production at other PetChem plants in Kertih,” it added.

PetChem said an investigation will be carried out to determine the cause of the fire and the extent of damage to property.

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)