Cocoaland, Scanwolf, Sona Petroleum, MSM, Hua Yang, Metronic, Dataprep, Digistar, CMMT, Biosis, KESM, Keladi Maju and TSH



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KUALA LUMPUR (June 2): Based on corporate announcements and news flow today, the companies that may be in focus tomorrow (Wednesday, June 3) could be: Cocoaland, Scanwolf, Sona Petroleum, MSM, Hua Yang, Metronic, Dataprep, Digistar, CMMT, Biosis, KESM, Keladi Maju and TSH.

Snacks and candy manufacturer Cocoaland Holdings Bhd has received another take-over offer, this time from Hong Kong-listed First Pacific Co Ltd, to acquire its entire business for RM2.70 per share or a total RM463.32 million, cash.

In a filing with the exchange, Cocoaland (fundamental: 2.8; valuation: 2.0) said it has received an indicative non-binding proposal dated May 29 from First Pacific.

The takeover will be undertaken by a special purpose vehicle, which Cocoaland's executive director cum substantial shareholder Liew Fook Meng, and certain shareholders of Leverage Success Sdn Bhd, a substantial shareholder of Cocoaland, will acquire an equity stake in.

First Pacific is led by Anthoni Salim as chairman. The tycoon is president and CEO of Indonesia's biggest conglomerate Salim Group.

Ipoh-based home and kitchen fittings manufacturer Scanwolf Corp Bhd, which is also in property development, today suspended the executive power of its executive director Datuk Tan Sin Keat and financial controller Ng Chee Wai, pending a full investigation into discrepancies found in documents pertaining to transactions conducted by its wholly-owned subsidiary, Scanwolf Plastic Industries Sdn Bhd (SPI).

In a filing with Bursa Malaysia, Scanwolf  (fundamental: 0.75; valuation: 0.3) said Tan is also an executive director of SPI, while Ng is also a director of the same unit.

In a separate filing, Scanwolf said it has formed an investigative committee, comprising group managing director Datuk Ch'ng Kong San, executive director Soon Eng Kooi, independent non-executive director Ong Sin Guan, and a representative from PKF Covenant Sdn Bhd.

Sona Petroleum Bhd, a special purpose acquisition company (SPAC), has scrapped its plan to acquire Salamander Energy Plc's Thailand upstream oil and gas (O&G) assets.

Through a statement today, Sona said this is because the investment now seems less attractive to it, and thus it has mutually agreed to discontinue discussion with its vendor, Ophir Energy Plc.

Sona had previously intended to approach Ophir in acquiring the Thailand O&G assets, namely Salamander Energy (Bualuang) Ltd.

Sugar producer MSM Malaysia Holdings Bhd is in 'advanced' negotiations to acquire two Indonesia-based firms that operating in the upstream market.

This is in line with the firm's aim to be an integrated sugar producer next year.

MSM (fundamental: 2.8; valuation: 2) also aims to dominate the Singapore midstream market in 2018, and enlarge its current market share of about 18%-20%.

The group's president cum chief executive officer Datuk Dr Sheikh Awab Sheikh Abod told reporters that MSM targets for both upstream and downstream segments to contribute 30% each to total profitability, while the remainder by midstream segment.

Property developer Hua Yang Bhd (fundamental: 1.7; valuation: 2.4) is on track to begin construction of a high-rise mixed-development project in Selayang, with a gross development value (GDV) of RM800 million.

This came after shareholders passed the ordinary resolution that will realise the proposed acquisition of a piece of land measuring 8.09 acres in Selayang.

The development is expected to begin in fourth quarter of 2016, targeted to complete in five to seven years.

The project comprises four blocks of serviced apartments with 1,264 units, club facilities with a multi-storey car park, and two levels of retail commercial area consisting of 154 units of retail outlets.

James Chan Yoke Peng, a close associate to tycoon Tan Sri Halim Saad, has emerged as a substantial shareholder in Metronic Global Bhd, with a 5.01% equity stake.

A filing with Bursa yesterday shows a company named Tekad Mulia Sdn Bhd had acquired 35 million shares in Metronic (fundamental: 1.25; valuation: 0.3) at 10 sen per share through off market on May 26.

According to Companies Commission Malaysia, Tekad Mulia Sdn Bhd is owned by Chan, who is also a director in the private limited outfit.

Metronic provides system integration for control and management of intelligent building.

Dataprep Holdings Bhd's managing director Muhammad Fauzi Abd Ghani has resigned from office, effective today, to pursue other business interests.

In a filing with Bursa, the information technology consulting firm said Muhammad Fauzi was redesignated as managing director on Dec 18, 2013, after he relinquished his role as senior vice president, business development downstream, at Felda Global Ventures Holdings Bhd in May 2013.

Digistar Corporation Bhd saw its net profit ballooned to RM6.48 million or 1.4 sen a share in the second financial quarter ended March 31, 2015 (2QFY15), from RM900,000 previously, boosted by the completion of The Imperial Heritage project in Melaka.

Digistar (fundamental: 1.05; valuation: 0.3) principally involves in designs, supplies, installation and integration of IT infrastructure.

Nevertheless, in its quarterly report to Bursa, cumulative six months net profit (1HFY15) had only increased to RM2.62 million, from RM1.17 million, after accounting for losses incurred in the first quarter.   

Meanwhile, revenue for 2QFY15 jumped to RM52.63 million, from RM19.34 million, while that of 1HFY15 rose to RM83.87 million, from RM27.61 million.

Retail properties real estate investment trust (REIT) CapitaMalls Malaysia Trust (CMMT) has entered into a tenancy agreement with StorHub Self Storage (SWP) Sdn Bhd, to lease out part of the Level 6 of Sungei Wang Plaza.

Based on CMMT's filing to Bursa, the space will be leased out for an initial duration of three years at a monthly gross rental income of RM63,185.60, with the option of three terms of three years renewal at a revised rental.

StorHub is an indirect wholly-owned subsidiary of CapitaLand Ltd, which is a major unitholder of CMMT (fundamental: 1.8; valuation: 1.0), and major shareholder of CapitaMalls Malaysia REIT Management Sdn Bhd, the manager of CMMT.

Bursa will suspend the trading of Biosis Group Bhd's shares from June 10 (next Wednesday) after it rejected the latter's proposed regularisation plan.

In a filing on Bursa today, the stock exchange also said it will de-list the securities of the pharmaceutical products maker on July 7, unless an appeal against the rejection of the regularisation plan and de-listing is submitted on or before July 2, 2015.

However, if Biosis submits an appeal within the stipulated timeframe, the de-listing of Biosis securities shall be deferred, a filing with Bursa revealed.

KESM Industries Bhd (KESM) saw its net profit for the third financial quarter ended March 31, 2015 (3QFY15) jump 27.21% to RM1.73 million or four sen per share from RM1.36 million or 3.2 sen per share a year earlier, on foreign exchange gains and lower raw materials and consumables used.

KESM (fundamental: 2.5; valuation: 2)'s revenue for the quarter came in at RM62.93 million from RM59.11 million previously.

The group also declared a three sen dividend for the current quarter under review.

KESM is involved in specialised electronic manufacturing activities particularly in providing burn-in services to the semiconductor industry.

For it cumulative nine months (9MFY15), net profit has increased by 56.67% to RM6.58 million or 15.3 sen a share as compared to RM4.2 million or 9.8 sen a share previously.

Revenue for the period grew 4.56% to RM194.18 million from RM185.72 million last year.

Property developer Keladi Maju Bhd has declared a first and final dividend of 0.2 sen per share under single tier system for the financial year ending Jan 31, 2016, to reward its shareholders.

In a filing with Bursa, Keladi Maju (fundamental: 1.65; valuation: 1.8) said its shares will trade ex-dividend on July 7. The dividend is payable on July 30.

In a separate filing, Keladi Maju proposed to change its name to 'JKG Land Bhd'.

In spite of challenging year ahead, palm oil planter TSH Resources Bhd expects to see increasing fresh fruit bunch (FFB) output this year.

After its annual general meeting today, TSH (fundamental: 0.45; valuation: 0.5) chairman Datuk Kelvin Tan Aik Pen told reporters that the management will continue to improve FFB yield and lower cost of production.

Tan further revealed that TSH has allocated RM100 million for capital expenditure, and is looking to acquire plantation land in Malaysia and Indonesia, which is part of the group's growth plan.

(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.)