KUALA LUMPUR (Oct 20): Based on corporate announcements and news flow today, companies that may be in focus tomorrow (Wednesday, Oct 21) could include: IOI Properties, CIMB Group, Hong Leong Bank, Bina Puri, Top Glove and Hunza Properties
IOI Properties Group Bhd is acquiring Mayang Development Sdn Bhd and Nusa Properties Sdn Bhd for RM1.58 billion from the Lee family, under a cash and share deal.
According to IOI Properties' filing with Bursa Malaysia, Mayang and Nusa Properties own land located near IOI Properties' development in Putrajaya, with gross development value of RM20 billion.
IOI Properties said it signed conditional share sale agreements with Tan Sri Lee Shin Cheng, Puan Sri Hoong May Kuan and Datuk Lee Yeow Chor, for their respective 100% stakes in Mayang and Nusa Properties.
IOI Properties said it was buying Mayang for RM1.26 billion, while Nusa Properties was valued at RM319.83 million. IOI Properties said the acquisitions would be financed by a combination of cash and new IOI Properties shares.
CIMB Thai Bank Public Co Ltd, a 93.7%-owned unit of CIMB Group Holdings Bhd (CIMB), saw its net profit for the third quarter ended Sept 30, 2015 (3QFY15) surged 81.2% to 498.38 million baht (RM60.25 million), from 275.08 million baht (RM33.25 million) a year ago.
In a filing with Bursa Malaysia today, the country's second largest financial institution said CIMB Thai's net interest income grew 4.54% to 3.68 billion baht (RM440 million), from 3.52 billion baht (RM430 million) a year ago.
For the cumulative nine months (9MFY15), CIMB Thai saw a 6% drop in net profit to 846.54 million baht (RM102.33 million), from 900.41 million baht (RM108.84 million) a year ago, mainly attributed to a 105.4% on year increase in provisions, due to prevailing weaker economic conditions.
Net interest income increased 6.5% to 6.16 billion baht (RM740 million), from 5.78 billion baht (RM700 million), resulting from loan expansion.
Hong Leong Bank Bhd and Hong Leong Islamic Bank Bhd are implementing a mutual separation scheme (MSS) to strengthen operational efficiency.
Hong Leong Bank's group managing director and chief executive officer Tan Kong Khoon said the MSS was a move to strengthen the organisation by enhancing productivity and efficiency, amid an increasingly competitive environment.
"We have to continually review our business and adapt to maintain our competitiveness," said Tan.
According to him, the MSS, which is offered to permanent staff at all levels, functions and locations on a voluntary basis, would create an opportunity for both the bank and employees to gain mutual benefits.
He said final approval for the MSS applications would be based strictly on Hong Leong Bank's and Hong Leong Islamic's business and operational requirements.
Bina Puri Holdings Bhd has won its second contract to construct six buildings in the Pengerang Integrated Petroleum Complex in Johor, for a sum of RM234.12 million.
In a statement today, the company said the contract was to be completed in 30 months.
It said the scope of work includes engineering, procurement, construction and commissioning of the two main control buildings and four laboratory buildings, and external civil works which involve road pavement, drainage, water and sewage reticulation, and parameter fencing and gates.
Top Glove Corp Bhd will set aside RM200 million for its financial year ending Aug 31, 2016 (FY16) for organic growth, according to its chairman Tan Sri Lim Wee Chai.
"We have plans to grow organically, therefore we have allocated RM200 million for expansion of our factories," he told reporters, after the group's fourth financial quarter ended Aug 31, 2015 (4QFY15) and FY15 financial results briefing today.
Currently, Top Glove has 25 glove factories, running 484 production lines, producing 44.6 billion glove pieces per annum; and by February 2017, the group targets to have 26 factories, running 540 production lines, producing 52.4 billion pieces per annum.
On mergers and acquisition activities, Lim said the group has a target to acquire one company per year.
Hunza Properties Bhd proposed to acquire a 3.92 ha freehold land in Pulau Pinang for RM57.02 million, located near its landbank in Bayan Baru, for the development of affordable housing and accommodation.
In a filing, the company said the land is located nearby its 43 acres of land in Bayan Baru. The land will be used to develop affordable housing, in order to meet the requirement imposed by the state government.
“In Hunza’s quest to develop an integrated project in its 43 acres of land in Bayan Baru, in accordance to ‘Garispanduan Penggunaan Nisbah Plot Bagi Pemajuan Kediaman Di Dalam Pemajuan Bercampur’ approved by State Planning Committee on Oct 17, 2014, and Oct 20, 2014, Hunza is required to build and sell, in the same Daerah, affordable homes to qualified buyers,” said Hunza.
It expects to complete the acquisition by the first quarter of 2016.
(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.)