Golden Land, FGV, TSR Capital, V.S. Industry, Ewein and Prolexus



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KUALA LUMPUR (June 8): Based on corporate announcements and news flow today, the companies that may be in focus tomorrow (Tuesday, June 9) could include: Golden Land, Felda Global Ventures (FGV), TSR Capital, V.S. Industry, Ewein and Prolexus.

Felda Global Ventures Holdings Bhd (FGV) is acquiring four companies and a parcel of land in Beluran, Sabah from Golden Land Bhd for a combined RM655 million.

In a Bursa Malaysia announcement today, FGV (fundamental: 1.15; valuation: 1.4) said its wholly-owned subsidiary, Pontian United Plantations Bhd, has entered into a conditional sale and purchase agreement with Golden Land (fundamental: 0.7; valuation: 2) for the proposed acquisitions.

Under the deal, Pontian will buy Yapidmas Plantation Sdn Bhd (YPSB), Sri Kehuma Sdn Bhd (SKSB), Tanah Emas Oil Palm Processing Sdn Bhd (TEOPP) and Ladang Kluang Sdn Bhd (LKSB), which are wholly-owned subsidiaries of Golden Land.

It is also acquiring a parcel of oil palm plantation land, measuring 836.1ha, in Beluran from Golden Land.

The four companies have net assets worth RM468.65 million and is mainly in the business of oil palm cultivation, as well as milling and sale of oil palm products in Malaysia.

In a separate filing, Golden Land said the estimated gain to Golden Land and its subsidiaries from the proposed disposal, is approximately RM15.23 million or 7 sen per Golden Land share, after taking into account the Real Property Gain Tax of RM25.96 million and estimated expenses in relation to the proposed disposal of RM20 million.

"The board has yet to determine the utilisation of net proceeds but shall consider, among others, further investment to develop its Indonesian plantations and property development business, as well as a cash distribution to shareholders of the company," said Golden Land.

The proposed disposal is expected to be completed in the fourth quarter of 2015.

TSR Capital Bhd has bagged a RM81 million contract from Putrajaya Homes Sdn Bhd to build 151 units of two-storey terrace houses and associated works in Putrajaya.

TSR (fundamental: 0.85; valuation: 1.2) said its wholly-owned subsidiary TSR Bina Sdn Bhd has accepted a letter of award from Putrajaya Homes today.

The project is for a duration of 36 months and is expected to be completed by June 2018.

The project is expected to contribute positively to the earnings of the group, for the financial years ending 2015 through 2018.

Johor-based V.S. Industry Bhd has fixed the price of its private placement of up to 10% of its issued and paid-up capital at RM3.83 per share.

In a filing with Bursa Malaysia today, the plastic injection moulding specialist said the price represents a 9.984% or 42.48 sen discount to its five-day volume weighted average market price of RM4.2548, which was calculated up to June 5, 2015.

V.S. Industry had on April 1, proposed a series of corporate proposals that include a plan to raise up to RM81.359 million via a private placement of up to 10% of its issued and paid-up capital, which as at March 31 stood at 206.967 million shares, with 1.149 million treasury shares.

V.S. Industry (fundamental: 1.3; valuation: 2.4) said the bulk of proceeds from the private placement will be used for working capital, as well as product innovation, and research and development.

Precision sheet metal fabricator Ewein Bhd’s wholly-owned subsidiary Esplanade Park Sdn Bhd (EPSB) has been awarded a five-year Pioneer Status by the Malaysian Investment Development Authority (Mida).

Ewein (valuation: 1.4; fundamental: 0.5) said in a filing with Bursa Malaysia today, that EPSB received the status under the Promotions of Investment Act 1986 for its tourism project in the 229-year-old Fort Cornwallis.

According to the Act, a company that is granted the status would enjoy different degrees of tax exemption, depending on the types of promoted products or activities.

Original equipment manufacturer and retailer Prolexus Bhd is buying three contiguous pieces of freehold land zoned for industrial use in Kluang, Johor, for RM9.9 million, for future expansion.

Prolexus (fundamental: 2.8; valuation: 1.5) said its indirect wholly-owned unit Trans Pacific Textile (M) Sdn Bhd has entered into three separate sales and purchase agreements (SPAs) to effect the purchase of the lands, which measure a collective 11.159ha.

Prolexus intends to fund the acquisition through internally-generated funds and/or bank borrowings, which will be decided by the executive directors at a later stage.

Prolexus expects to complete the purchase by the third quarter of this year.

(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.)