Gromutual, CCB, Ta Win, Greatech, Bursa and FGV

Gromutual, CCB, Ta Win, Greatech, Bursa and FGV
-A +A

KUALA LUMPUR (Nov 1): Based on corporate announcements and news flow on Monday, companies in focus on Tuesday (Nov 2) may include: Gromutual Bhd, Cycle & Carriage Bintang Bhd (CCB), Ta Win Holdings Bhd (Ta Win), Greatech Technology Bhd (Greatech), Bursa Malaysia Bhd (Bursa), and FGV Holdings Bhd (FGV).

Gromutual Bhd (Gromutual) is planning to acquire a 9.79-acre piece of land in Johor to further expand its business in the development of ready-built industrial facilities (RBF) for sale or lease to the supply chain of multinational companies operating in Senai Airport City’s Free and Non-Free Zone from Senai Airport City Sdn Bhd, a member of the MMC Group, for RM21.33 million.

Cycle & Carriage Bintang Bhd (CCB) reported its third-quarter results headlined by a 70.77% decline in net profit of RM2.1 million from RM7.2 million a year earlier. CCB revealed that sales volumes were hit by the Movement Control Order (MCO) 3.0 restrictions and supply-related challenges that affected production of automotive makers which saw its revenue fall by 48.17% to RM212 million from RM409.5 million in the same quarter last year.

Ta Win Holdings Bhd (Ta Win) announced that it secured a RM2.5 billion contract from South Korea’s POSCO International Corp to supply copper rods and wires as well as other copper-related products. The contract lasts for three years and Ta Win is expected to supply about 65,000 tonnes of the products for the whole three years, starting with 10,000 tonnes in the first year.

Greatech Technology Bhd reported a 24.75% increase in net profit to RM28.97 million from last year’s RM23.22 million for its third quarter ended September 30, 2021 due to increased foreign exchange gain and lower administrative and marketing expense. Greatech also saw its quarterly revenue grow by 25.74% to RM95.33 million from RM75.82 million a year ago. This increase was attributed to higher revenue recognised in production line systems (PLS) and single automated equipment which was contributed mostly by the electric vehicle energy storage industry (65.76%).

Bursa Malaysia Bhd (Bursa) has been downgraded by analysts from CGS-CIMB, Hong Leong Investment Bank, and AmInvestment Bank with a lower target price that ranges from RM6.52 to RM7.90. This comes after the government’s announcement that the stamp duty rate for contract notes will be raised from 0.1% to 0.15%, with the RM200 cap per contract being lifted and a special one-off windfall tax for profits in excess of RM100 million at 33% tax rate. Analysts said these increases in stamp duty will see lower average daily trading volume (ADTV) and increased tax expenses for Bursa in FY22.

FGV Holdings Bhd (FGV) announced that the acquisition price for MSM Perlis Sdn Bhd has been revised to RM181.11 million from RM175 million previously. In a bourse filing, FGV said that the revision was due to the completion net debt and completion working capital of MSM Perlis at RM902,954 and RM5.2 million respectively. FGV also announced that its logistics subsidiary FGV Transport Services Sdn Bhd will begin to provide delivery and cold storage solutions for temperature-sensitive products and perishable items. It said the initial investment was RM8.3 million and expects RM3.2 million in revenue for its cold chain business by 2024.

Lam Jian Wyn