Business & Markets 2013
Written by Ho Wah Foon of theedgemalaysia.com
Monday, 30 December 2013 21:00
KUALA LUMPUR (Dec 30): Based on corporate announcements today, Brem, Ho Hup, Yinson and Selangor Properties may lead stocks that attract trading interest tomorrow.
Ho Hup Construction Company Bhd said it plans to exit its PN17 status earlier, held since 2008, via an application for an early uplift after achieving five consecutive quarters of profit.
Under Bursa Malaysia’s guidelines, a company can apply to exit PN17 status following two consecutive quarters of operational profit after completion of its financial regularisation scheme.
The construction firm said tomorrow would see the completion of its financial regularisation exercise (FRE) and corporate turnaround, an effort which began in March, 2010.
Ho Hup’s executive director Derek Wong Kit Leong said: “With a healthy and clean balance sheet now after the exercise, Ho Hup is poised to take on new projects.”
“Our flagship Bukit Jalil Development continues to roll out its Aurora Place and the balance of 10 acre property development projects over the next two to three years.”
Brem Holding Bhd, which soared to a 15-year high today after a bullish report by Nanyang Siang Pau regarding its net asset value, rose further in late trades to hit limit up after theedgemalaysia.com wrote about the hot stock.
At market close, Brem Holding’s shares were at RM1.96, after rising 45 sen or 30%, on heavy trades of 10.3 million shares.
But the company was slapped with an UMA (unusual market activity) query from the stock exchange after the market close.
According to a report by Nanyang Siang Pau today, if the group’s assets were revalued, its net asset per share would be at RM8.32. It added that the company has a high probability of issuing bonus shares, as it has reserves of RM311 million.
The report recommends investors to “boldly buy the stock to get rich.”
Yinson Holdings Berhad’s net profit for the third financial quarter ended 31 October 2013 rose 82.25% to RM15.5 million from RM8.5 million in a similar quarter a year ago.
Revenue for the quarter rose to RM236.8 million from RM192.6 million.
The company attributed its profit for this quarter to increased contributions from its marine segment, joint venture company and other operations.
Cumulative profits for the 9 months to Oct 2013 rose to RM41.2 million from RM29.1 million a year ago.
Cumulative revenue for the 9 months to Oct 2013 remained flat at RM692.4 million.
Selangor Properties Bhd’s net profit surged 78% year-on-year (y-o-y) to RM34 million in the fourth quarter ended Oct 31, 2013, from RM19 million a year ago.
Revenue rose 7% y-o-y to RM60 million from RM56 million.
For the full year period, profit stood at RM95 million from RM69 million a year earlier, while revenue generated was RM239 million versus RM244 million in the previous corresponding period.
Selangor Properties expects its operations in Malaysia and Australia to remain positive next year although profitability will be subject to currency fluctuations given its overseas investment.
In a separate statement, the company said it has undertaken a revaluation exercise of all its investment properties, and this has resulted in a gain in value of RM45.9 million.
“This will result in an increase of 10.9 sen in the net asset per share of Selangor Properties,” the firm said.
Following the revaluation, the total asset valuation of the investment properties stands at RM580 million.
Gamuda Bhd announced that at the close of its offer at 5.00 pm today, it has only received acceptance from PNB in relation to its revised offer for PNB’s stake in Kesas Holdings Bhd.
This means that Gamuda could only control 70% of Kesas.
Last week, Gamuda raised its offers to the remaining shareholders of Kesas which had not accepted its earlier offer: Perbadanan Kemajuan Negeri Selangor (PKNS) and Permodalan Nasional Bhd (PNB).
Gamuda’s revised offer price for PKNS’ 30% stake in Kesas was RM420 million and for PNB’s 20% was RM280 million.
In its announcement today, Gamuda stated that there will be no further extension of its offer on Kesas.
Amcorp Properties Bhd, which holds 20% stake in Kesas, had accepted Gamuda’s earlier offer. Gamuda holds the remaining 30%.
Kesas is the toll concessionaire for the 35km Shah Alam Expressway under a concession agreement that is valid until Aug 18, 2023.
Icon Offshore Berhad, through its wholly owned subsidiary, has acquired one unit maintenance / work vessel (MWV) from Nam Cheong International Ltd. The vessel can accommodate 200 passengers and is equipped with a Dynamic Positioning 2 system (DP2).
The vessel, which is American Bureau of Shipping (ABS) classed, has a length overall of 78 metres and is currently in an advance stage of construction and will be delivered in the second quarter of 2014.
This is the second MWV to be acquired by the company. Icon Offshore currently owns 32 vessels, which operate in Malaysia, Vietnam and Qatar.
Berjaya Corporation Bhd delivered a flat second quarter results.
Its net profit rose 2% year-on-year (y-o-y) to RM20.63 million for second quarter to October 2013, from RM20.20 million in the previous corresponding quarter.
Revenue was slightly higher at RM1.773 billion from RM1.767 billion in the year before.
“The marginally higher revenue was mainly due to higher progress billings from the property investment and development segment,” said Berjaya.
Going forward, the group expects the remainder of its financial year ending April 2014 to remain challenging.
Daiman Development Bhd announced it acquired a 100% equity interest in Sin Yue Holdings Sdn Bhd for RM33 million to increase its land bank in Johor.
In a statement to Bursa Malaysia, the property group said it had today entered into an agreement to acquire 1.2 million ordinary shares in Sin Yue Holdings.
Following the acquisition, Daiman via Sin Yue Holdings will have ownership of the agricultural land measuring 128.8 hectares in Sedenak, Johor Bahru.
“The acquisition is expected to contribute positively to the future earnings of the group through development of the land in the future,” the firm said.