KUALA LUMPUR (May 3): Based on corporate announcements and news flow today, companies that may be in focus tomorrow (May 4) include Duopharma Biotech Bhd, Tashin Holdings Bhd, Sarawak Consolidated Industries Bhd, UEM Edgenta Bhd, Minetech Resources Bhd, Handal Energy Bhd, and SHH Resources Holdings Bhd.
Duopharma Biotech Bhd has reported a 29.9% increase in net profit to RM17.61 million for the first quarter of financial year 2021 (1QFY21) ended March 31, 2021, from RM13.56 million a year earlier, on the back of higher sales in the consumer healthcare sector, along with a one-for-three bonus issue. Quarterly revenue rose 4.9% to RM166.45 million, from RM158.71 million.
Steel processor and manufacturer Tashin Holdings Bhd's net profit for 1QFY21 surged 16-fold to RM12.23 million from RM724,000 a year earlier, on higher demand for its steel products as well as selling prices. Quarterly revenue jumped 55.2% to RM95.22 million from RM61.35 million. Tashin's managing director Lim Choon Teik said the group experienced improved sales and profit margins as the economy saw a gradual return to normalisation while business sentiments improved after one year of the Covid-19 pandemic.
Civil construction group Sarawak Consolidated Industries Bhd (SCIB) plans to raise up to RM227.8 million via its latest private placement. The group will place up to 20% of its issued shares to third party investors to be identified later, at a yet to be determined issue price. Some RM133 million of the placement proceeds will be used for working capital for ongoing projects. Another RM66.95 million will be set aside for estimated expenses for upcoming projects, while RM19.9 million will be utilised for capital expenditure requirements for current operations.
UEM Edgenta Bhd has been slapped with a RM18.7 million penalty by the Inland Revenue Board (IRB) for the years of assessment 2015 to 2018, of which the notices of additional assessment were raised "mainly pursuant to dispute on the status of UEM Edgenta as a management services company and shall be taxed as an investment holding company under Section 60FA of the Income Tax Act, 1967". Based on UEM Edgenta tax solicitors' opinion, the company views that there are reasonable grounds to challenge the basis of assessment. Thus, the company shall proceed to file an appeal against the said notices raised by IRB with the Special Commissioner of Income Tax.
Minetech Resources Bhd has won a RM33.69 million contract to undertake construction work for the second phase development of the Sarawak Islamic Skills Institute. The project, for which its indirect wholly-owned subsidiary Coral Evergreen Sdn Bhd has accepted the letter of acceptance from Azan Engineering Sdn Bhd, is expected to commence upon receipt of official order from Azan Engineering, and is scheduled to be completed by March 18, 2024.
Handal Energy Bhd's 51%-owned subsidiary Borneo Seaoffshore Engineering Sdn Bhd has secured a new contract from Malaysia LNG Sdn Bhd for the provision of pipeline isolations services. The contract, which does not have any specified value as it is on a "call-out" basis, is effective for about 14 months until April 2, 2022 and comes with a one-year extension option.
SHH Resources Holdings Bhd's wholly-owned subsidiaries SHH Furniture Industries Sdn Bhd and Kurnia Sejati Sdn Bhd have shut their manufacturing facilities in Muar until May 14, after some employees tested positive for Covid-19. The temporary suspension of operations of the subsidiaries is expected to result in delay of shipment of several orders to its customers. The management is currently in discussion with the affected customers for the rescheduling of the delivery dates for these orders.