CIMB, RHB, MBSB, MMHE, Tropicana, Takaso, EA Technique, Lii Hen, Bright Packaging, Ho Hup, Jiankun and Tek Seng

By Chester Tay / theedgemarkets.com   | January 13, 2015 : 9:02 PM MYT   

KUALA LUMPUR (Jan 13): Based on corporate announcements and news flow today, the companies that may be in focus tomorrow (Wednesday, Jan 14) could be the following: CIMB Group Holdings Bhd, RHB Capital Bhd, Malaysia Building Society Bhd (MBSB), Malaysia Marine and Heavy Engineering Holdings Bhd (MMHE), Tropicana Corporation Bhd, Takaso Resources Bhd, E.A. Technique Bhd, Lii Hen Industries Bhd, Bright Packaging Industry Bhd, Ho Hup Construction Co Bhd, Jiankun International Bhd and Tek Seng Holdings Bhd.

CIMB Group Holdings Bhd (Fundamental score: 1.35; Valuation score: 2.1) told Bursa Malaysia this evening that its board will discuss the mega bank merger on Wednesday, Jan 14, while RHB Capital Bhd (RHBCap) (Fundamental score: 1.5; Valuation score: 2.1) said it is unable to provide further details pertaining to the current status of the said merger, in response to queries from the exchange on a report by The Edge Financial Daily today, that the merger deal is off.

Meanwhile, Malaysia Building Society Bhd (MBSB) (Fundamental score: 1.2; Valuation score: 1.6), which is also a party in the proposed merger, told Bursa it will be having a regular board meeting tomorrow, which has been scheduled last week.

The Edge Financial Daily, quoting sources, reported today that an official announcement on the mega merger being called off is expected before the end of the week.

Oil and gas marine services provider Malaysia Marine and Heavy Engineering Holdings Bhd (MMHE) will appoint MISC Bhd’s vice president to be its managing director and chief executive officer, effective Mar 1, 2015.

According to MMHE’s (Fundamental score 1.4, Valuation score 1.8) filing with Bursa Malaysia today, Abu Fitri Abdul Jalil will be appointed to succeed the incumbent leader, Dominique Soras. Soras’ contract of employment ends on Feb 28. He will also cease to be non-independent executive director from the board, by then.

Prior to MISC, Abu Fitri was senior general manager of Petroleum Operations Management in Petroliam Nasional Bhd (Petronas), having joined the national oil firm since 1991.

Tropicana Corporation Bhd (Fundamental Score 1.3; Valuation Score 3.0) has entered into an agreement with global educational group GEMS Education, to build an international school campus with a built-up area of approximately 210,000 sq ft in Tropicana Metropark in Subang Jaya.

Tropicana said the project is estimated to worth about RM50 million. The school will be operated by GEMS upon completion in 2017, with the first intake expected in September.

Baby products and condoms maker Takaso Resources Bhd (TRB) (Fundamental score 1.25, Valuation score 0.3) announced that its wholly-owned subsidiary Takaso Land Sdn Bhd had been appointed on Jan 12, as main contractor for a RM37.44 million construction project which involves a twenty-one story commercial building.

The contract was awarded by OCR Land Holdings Sdn Bhd, which is also a 6.31% substantial shareholder of TRB, thus resulting in the deal to be a related party transaction. The project would represent the first step for the group to diversify its business into construction sector.

Marine vessels operator E.A. Technique Bhd has entered into a bareboat charter contract worth RM24.64 million, for the provision of one fast support vessel to Classic Marine & Services (M) Sdn Bhd. The contract was for a period of five years with an option to extend, with work commencing on Jan 15, 2015 and expiring on Jan 14, 2020.

Furniture maker Lii Hen Industries Bhd (Fundamental score 2.5, Valuation score 2.4) had registered a property revaluation surplus of nearly RM35 million. The surplus from the revaluation of its nine Johor properties (under the ownership of five subsidiaries) will increase the company's net assets per share by 58.3 sen, for financial year ended Dec 31, 2014 (FY14).

Lii Hen's latest reported net assets per share stood at RM2.63 as at Sept 30, 2014.

Packaging materials maker Bright Packaging Industry Bhd (Fundamental Score 1.3; Valuation Score 0.9) announced it had entered into an agreement to supply aluminium foil to Zao Philip Morris Izhora, the Russian affiliate of tobacco player, Philip Morris International Inc (PMI).

The two-year contract’s total estimated value is US$15 million (about RM53.29 million), which equals to over 70% of Bright Pakaging’s market capitalisation of RM75.71 million.

Ho Hup Construction Co Bhd (Fundamental score: 2.1; Valuation score: 1.5) has fixed the issue price of its 38.86 million private placement shares to independent third party investors at RM1.12 per share.

The price of RM1.12 represents a discount of approximately 9.69% or 12 sen from the five day weighted average market price of Ho Hup shares from Jan 7, 2015 to Jan 13, 2015 (today), which is around RM1.24 per share.

Property developer and aviation services provider Jiankun International Bhd (Fundamental score 2.1, Valuation score 0.3) has appointed two executive directors to its board, effective today.

Foong Kah Heng and Lee Leong Kui have been appointed as executive directors.

Foong was managing director in Falcon Speed Automobile Sdn Bhd, before this. He owns a direct interest of 2.51 million shares (1.64% stake) and an indirect interest of 4 million shares (2.62% stake) in Jiankun. Lee, on the other hand, was director in Juara Gred Development Sdn Bhd, before joining Jiankun.

Polyvinyl chloride (PVC) product and photovoltaic solar manufacturer Tek Seng Holdings Bhd (Fundamental score: 0.6; Valuation score: 1.8) expects its solar panel production sector to take over its traditional PVC business, and become its main and only revenue generator in three years' time.

Chairman Loh Kok Beng told reporters its joint venture to produce solar panels with Taiwan-listed Solartech Energy Corp, could easily replace the current PVC production sector — which contributes 70% to group revenue now — as its revenue mainstay.

“We have started setting up our second and third production lines. It should be ready for production by the first quarter of this financial year. We are in the midst of ramping up production of solar panels.

“We expect this sector to contribute between 25% and 30% in the next quarter, to our group revenue, but by the end of the year, it could be generate 50% revenue, with the remainder from PVC products.