Business & Markets 2014
Written by Ho Wah Foon of theedgemalaysia.com
Friday, 25 April 2014 19:56
KUALA LUMPUR (April 25): Based on corporate announcements today, the companies that may attract interest on Monday (April 28) include:
Eco World Development Group Bhd has announced a major corporate exercise that will see “explosive growth” for the group and transform it into a top property player.
It enables the company to embark on ambitious properties development, setting itself huge sales targets for the next two years at RM5 billion (RM2 billion for FY2014 and RM3 billion for FY2015).
According to a press statement by Eco World, the corporate exercise involves buying development rights of eight projects from the subsidiaries of its major shareholder, Eco World Sdn Bhd, with gross development value of RM30 billion.
EcoWorld Berhad will gain an immediate, enlarged and active presence in all three key development regions of Malaysia: Klang Valley, Iskandar Malaysia and Penang.
The size of its landbank will increase from 1,326 to 4,433 acres with a resultant growth in GDV from RM13.49 billion to RM43.53 billion.
According to a filing with Bursa Malaysia, Eco World Bhd said it proposed a share subscription by its major shareholder to raise RM1.37 billion, a rights issue with free warrants to raise RM788 million, and a private placement of new shares equivalent to 20% of its enlarged share base.
The series of fund raising are to fund several major property acquisitions to immediately turn the company into a top property player, the company said.
But before the share subscription and acquisitions, the company wants to carry out a one-into-two share split of its existing shares, involving the subdivision of each of the existing ordinary shares of RM1.00 each in Eco World Berhad into two shares of RM0.50 each.
DiGi.Com Bhd said its net profit for the first quarter ended March 31, 2014, jumped to RM485.16 million from RM328.65 million a year earlier, on the back of revenue of RM1.72 billion versus RM1.65 billion, due to a surge in usage of mobile internet services.
The telecommunications company declared a first interim tax-exempt (single-tier) dividend of 6.2 sen per share totaling RM482 million or 99.4% payout ratio to be paid to shareholders on June 6 this year.
Earnings per share was 6.24 sen compared with 4.23 sen a year earlier, while net assets per share was 80 sen.
In a statement Friday, DiGi CEO Henrik Clausen said that growth in internet revenue was fueled by higher usage and a bigger customer base.
He said the company had committed to invest up to RM900 million in capital expenditure this year to strengthen its network position.
Southern Acids (M) Bhd has been issued an unusual market activity (UMA) query by Bursa Malaysia due to the spike in its share price and high volume of trades over the past few days.
At 12.30 noon break today, Southern Acids was traded at RM5.69, rising 70 sen or 14% with as many as 1.7 million shares done. The stock had earlier risen as much as 99 sen or 20% to a high of RM5.98.
Since Tuesday, Southern Acids’ share price had risen as much as RM1.64 or 40%.
Bursa Malaysia has ordered the company to make due enquiries with its directors, major shareholders and other relevant persons for the unusual market activities.
Wong Engineering Corporation Bhd (Wong) has also been slapped with a UMA query by Bursa Malaysia on the rise of its share price and volume today.
Wong, the sixth top gainer, saw trades of some 17 million shares and closed higher at 82 sen after gaining 19.5 sen or 31%.
Earlier, theedgemalaysia.com reported Wong’s phenomenal gain could be due to speculation regarding its negotiation with a third party for the supply of mechanical & industrial products.
Bursa has ordered the engineering firm to respond to its queries immediately for public release pursuant to making due enquiry with its directors, major shareholders and other relevant persons.
PDZ Holdings Bhd said Tan Sri Datuk Tan Hua Choon had disposed his entire shareholding of 166.3 million shares equivalent to a 19.13% stake in PDZ Holdings Bhd to Pelaburan Mara Bhd.
According to a statement to Bursa Malaysia, Pelaburan Mara now owns a total of 233.25 million shares or 26.83% stake in the company.
The Edge Financial Daily, quoting a source familiar with the matter, had earlier reported that Pelaburan Mara is expected to bring in a new business to PDZ.
“The new business will most likely be related to the oil and gas (O&G) sector and is expected to arrest the current losses faced by PDZ’s container shipping business.
“Pelaburan Mara is looking at buying O&G assets that will be injected into PDZ, transforming the shipping company into an O&G service provider,” said the source.
Hong Leong Bank Bhd has obtained approval from the Securities Commission Malaysia (SC) for the proposed multi-currency subordinated notes programme totalling RM10 billion.
“The proceeds from the programme will be utilised for working capital, general banking and other corporate purposes, and the refinancing of any existing borrowings incurred,” said Hong Leong Bank.
Digistar Corporation Bhd announced that its wholly-owned subsidiary, Digistar Holdings Sdn Bhd (DHSB) had entered into a memorandum of understanding with the Royal Malaysian Police Force (RMPF) to form a safe camera or SAFECAM Partnership.
“DHSB will have a collective partnership with RMPF to form SAFECAM Partnership with the objective to reduce the public crime rate,” said Digistar in an announcement today.
Under the agreement, both parties will discuss on essential issues for the success of the partnership, while the members of SAFECAM will prepare the closed circuit television (CCTV) system under their own cost as set out by RMPF.
The value of the contract was not stated in the announcement.
Caring Pharmacy Group Bhd said net profit for the 3rd financial quarter ended February 28, 2014 stood at RM6.6 million for the current financial year.
Revenue for the quarter rose to RM81.97 million.
As the company was recently listed, it did not provide comparative figures for the previous year.
It said net profit for the nine months to February was RM13.84 million while cumulative revenue for the nine months totalled RM249.70 million
“During the quarter under review, we have established an additional five new outlets… As of 28 February 2014, we have a total of 93 community pharmacies,” said the wholesale drug distributor.
On prospects, the company maintains its view that the group will continue to be profitable.
SCGM Bhd, a Johor-based manufacturing company, has attracted institutional investors who have bought into the company causing the recent surge in SCGM share prices, said an analyst and a company source.
The stock saw a 19% jump to a high of RM1.45 on Monday, with volume trades hitting a record high of 12.93 million shares.
“As far as I know its institutional interest that has moved the stock,” said the analyst.
“The company only has 80 million shares. In order for large quantity of shares to be purchased, shares had to be freed up,” he added.
A filing on Bursa Malaysia showed a disposal of 10 million shares at RM1.25 per unit by its directors on April 21, 2014.