Stocks To Watch Faber, UEMS, Bonia, Metronic, Ariantec, AE Multi and Mesiniaga

Business & Markets 2013
Written by Ho Wah Foon of   
Monday, 05 August 2013 19:36

KUALA LUMPUR (Aug 5): Based on corporate filings today, the stocks that may attract investor interest tomorrow could include Faber, UEM Group, Bonia, Metronic, Ariantec, AE Multi and Mesiniaga.

FABER GROUP BHD [] (FGB) will own Projek Penyelengaraan Lebuhraya Berhad (PROPEL) and OPUS GROUP BHD [], if it accepts an offer by Aug 30 to buy two companies from UEM BUILDERS BHD [] and UEM Group Bhd respectively.

The disposals by UEM companies will be made at a minimum price of RM1.12 billion or a maximum of RM1.15 billion.

The disposals are part of an effort to merge and streamline the asset & facility management (AFM) businesses of the UEM Group of companies, namely PROPEL, Opus and FGB.

The disposal of PROPEL by UEM Builders will be for a total of RM500 million, with RM250 million payable in cash and the rest via the issuance of 125 million new ordinary Faber shares at an issue price of RM2 apiece.

The disposal of Opus by UEM Group will either be via the issuance of 313.8 million new Faber shares (as a minimum) for RM2 per share, or a maximum issue of 325.5 million new shares to UEM Group at RM2 apiece.

BONIA CORPORATION BHD [], whose share price surged to an all-time high of RM3.31 today, said it expects its performance to improve due to its expansion plans.

The company said this in reply to Bursa Malaysia’s query relating to an article by a newspaper last weekend stating that the company aims to achieve yearly revenue of RM1 billion by 2015.

Bonia added in its reply that the quantum of improvement cannot be determined at this juncture as it depends on, among others, market demand of the company’s range of products, domestic and regional spending power for the future financial years.

In response to another query, Bonia clarified that the company has made no arrangement for a listing of any of its subsidiary companies or any dual-listing of Bonia on other stock exchange in the Asia-Pacific region.

METRONIC GLOBAL BHD [] has set the issue price of its private placement of up to 63.49 million new shares at 10 sen each, the firm told the stock exchange.

This translates into proceeds of RM6.35 million for Metronic, a building and industrial automation specialist.

Metronic said the issue price represents an estimated 0.93% discount to the five-day weighted average market price of some 10.09 sen for its shares between last Monday and Friday (July 29 and August 2, 2013).

Ariantec Global Bhd's (AGB) wholly-owned unit Ariantec Sdn Bhd has been awarded a US$10 million (RM32.4 million) contract for works to build a high speed broadband network in Pekanbaru Riau, Indonesia. 

The contract was awarded by PCC - a licensed internet service provider - and will run for a duration of up to three years and will be in phases.

"The contract sum shall be paid by PCC to AGB on a progressive basis and within 90 days from the date of receipt by the PCC of each and every certificate for works done," said Ariantec in its filing.

"AGB intends to fund the works of the contract via funds to be raised under the proposed private placement exercise announced on 25 April 2013, internally generated funds as well as borrowing," it added.

In a separate filing, Ariantec said that it is proposing a name change to NetX Holdings Bhd.

AE Multi Holdings Berhad announced that AEM and its wholly-owned subsidiary AE Corporation (M) Sdn Bhd have executed a corporate guarantee of Thai Baht 151 million (RM15 million) in favour of TMB Bank PCL in respect of credit facilities granted to the wholly-owned subsidiary of AEC, Amallion Enterprise (Thailand) Corporation Limited (AET).

The said credit facilities are to provide finance for the total development cost for the CONSTRUCTION [] of the land acquired by AET on 27 June 2013.

The corporate guarantee will not have any significant effect on the earnings per share, net assets per share of the company for the current financial year.

MESINIAGA BHD []’s net profit for its second financial quarter ended June 30, 2013, plunged to RM240,000 from RM2.48 million in similar quarter in 2012.

Its earnings per share shrank to 0.4 sen from 4.11 sen, while its revenue fell to RM63.15 million, from RM77.63 million.

For the six months to June, its net profit was RM1.52 million, down from RM3.65 million. Revenue was up at RM136.58 million, from RM135.95 million.

Reviewing its results, the company said a reduction in higher margin services revenue led to the lower profit.

On prospects, Mesiniaga said whilst market conditions remain challenging its management anticipates the group to be profitable in financial year 2013.