AirAsia, Ta Ann, Destini, FGV, C.I. Holdings, Handal Resources, SAM Engineering, BMedia, Heng Huat, Keladi Maju, PUC Founder, Chin Well

By Chester Tay /   | June 22, 2015 : 11:16 PM MYT   

KUALA LUMPUR (June 22): Based on corporate announcements and news flow today, the companies that may be in focus tomorrow (Tuesday, Jun 23) could include: AirAsia Bhd ( Financial Dashboard), Ta Ann Holdings Bhd (Financial Dashboard), Destini Bhd ( Financial Dashboard), Felda Global Ventures Holdings Bhd ( Financial Dashboard), C.I. Holdings Bhd ( Financial Dashboard), Handal Resources Bhd ( Financial Dashboard), SAM Engineering & Equipment Bhd, Berjaya Media Bhd, Heng Huat Resources Group Bhd ( Financial Dashboard), Keladi Maju Bhd ( Financial Dashboard), PUC Founder (MSC) Bhd and Chin Well Holdings Bhd ( Financial Dashboard).

Low-cost airline AirAsia Bhd clarified today that it is bound by legal constraints that have limited its ability to consolidate the accounts of its associate companies in Indonesia, the Philippines, Thailand and India.

In a response to a report by Hong Kong-based GMT Research Ltd, AirAsia (fundamental: 0.2; valuation: 1.4) audit committee chairman VU Kumar said the committee was concerned about the report’s allegations of improper accounting of AirAsia’s associate companies, “accounting gimmicks” and corporate governance abuses.

Kumar went on to say that the airline's audit committee, its board of directors and management are "somewhat distressed and peeved" to have been accused of corporate governance abuses and condoning accounting gimmicks by GMT Research.

AirAsia shares rose as much as 3.1% to hit an intraday high of RM1.66 today, before easing to close at RM1.64, giving it a market capitalisation of RM4.56 billion. It was the third most-active stock on Bursa Malaysia, with 37.03 million shares done.

Integrated timber producer Ta Ann Holdings Bhd has established two joint venture agreements (JVAs) with Pelita Holdings Sdn Bhd through its wholly-owned subsidiary Ta Ann Plantation Sdn Bhd (TAP) to implement oil palm development projects in partnership with the Sarawak state government.

In a filing with Bursa Malaysia today, Ta Ann (valuation: 1.4, fundamental: 1.4) said the joint venture companies (JVCs) would undertake the projects on parcels of Native Customary Rights (NCR) land in Sibu and Kapit, Sarawak amounting to an estimated 16,917ha of plantable area.

The issued capitals of the JVCs are expected to be RM51 million for the parcels of land in the Sibu division and RM33.5 million for the Kapit division.

Destini Aviation Sdn Bhd (DASB), a wholly-owned subsidiary of integrated engineering solutions provider Destini Bhd, has formed a joint venture (JV) with United Kingdom-based Avia Technique Ltd in efforts to expand into the commercial aviation sector.

In a statement today, Destini group managing director Datuk Rozabil Abdul Rahman said with the company’s vast experience in defence aviation maintenance repair and overhaul (MRO) and survival equipment, it is ready to expand into the commercial aviation sector.

He added that through the JV and also through its recently acquired 80% stake in SafeAir Technical Sdn Bhd for RM1.4 million, DASB is set to benefit from new business opportunities in the commercial aviation MRO services, as the Asia Pacific region is expected to need about 3,000 new planes, worth US$1.9 trillion over the next decade.

While SafeAir provides technical line maintenance, the JV will provide component MRO for the airline sector, which includes carrying out inspection, repair and overhaul services of aircraft components specifically oxygen equipment, survival equipment including evacuation slides, rafts and life jackets, fire suppression, environmental control system, electrical equipment and fuel and hydraulic systems.

Rozabil said that the JV shall carry out the MRO activities in Malaysia and for purely airline customers for the Asean region.

Destini (fundamental: 1.7; valuation: 0.8) shares closed down 1.5 sen or 2.27%  to 64.5 sen today, with a market capitalisation of RM519.13 million.  

Plantation group Felda Global Ventures Holdings Bhd’s (FGV) wholly-owned subsidiary Downstream Sdn Bhd has signed a memorandum of business exploration (MOBE) with Kinh Do Corp and Indo-Trans Logistics Corp to explore a collaboration for a new edible oil venture in Vietnam.

In its filing with Bursa Malaysia today, FGV (fundamental: 1.15; valuation: 1.4) said it is exploring the possibility of entering into a business collaboration or partnership to collectively build and operate a new business to manufacture and distribute branded, packaged edible oil in Vietnam.

FGV shares fell 4 sen or 2.29% to close at RM1.71 today, bringing a market capitalisation of RM6.38 billion.

Consumer edible oil manufacturer C.I. Holdings Bhd has denied a report that it was keen to acquire Edra Global Energy Bhd, an outfit that houses 1Malaysia Development Bhd (1MDB)’s power assets.

In its filing with Bursa Malaysia this afternoon, C.I. Holdings (fundamental: 1.85; valuation: 0.6) said it has never entered into any non-disclosure agreements (NDA) with Maybank Investment Bank Bhd in relation to 1MDB’s proposed plans to monetise the its power assets.

Handal Resources Bhd has terminated its collaboration with MEO Australia Limited (MEO) for a risk service contract (RSC) with Petroliam Nasional Bhd (Petronas).

In a statement with Bursa Malaysia today, the integrated offshore crane services provider cited current market conditions and Petronas’s deferment of the RSC for marginal fields as reasons for its termination.

Handal (valuation: 1.7, fundamental: 1.4) had entered into the collaboration with MEO in early July 2013 to consolidate both parties’ expertise in the development of the marginal oil and gas (O&G) field and to pursue the RSC with Petronas.

Precision engineering firm SAM Engineering & Equipment Bhd plans to pay total dividends of 32.2 sen a share after reporting higher profit for the financial year ended March 31, 2015 (FY15).

In a statement with Bursa Malaysia today, SAM (fundamental: 2.5; valuation: 2.6) said the single-tier dividends comprise an interim dividend of 11.94 sen and special portion of 20.26 sen.

SAM said its shares would trade ex-dividend this July 30.

Berjaya Media Bhd (BMedia) ( Financial Dashboard), the publisher of theSun newspaper, swung to a net loss of RM27.93 million or 11.88 sen loss per share in the fourth quarter ended April 30, 2015 (4QFY15) compared with a net profit of RM128,000 or 0.05 sen earnings per share a year ago, on impairment charges.

In a filing with Bursa Malaysia, BMedia (fundamental: 1.65; valuation: 0.9) said its bottomline was hit by the impairment of publishing rights amounting to RM25 million and impairment of certain quoted investments, coupled with lower revenue.

Revenue for 4QFY15 fell 14.2% to RM11.22 million from RM13.08 million a year ago, mainly due to lower advertising income recorded by its principal operating subsidiary, Sun Media Corp Sdn Bhd.

The weak quarterly results dragged BMedia into a net loss of RM31.16 million or 13.25 sen loss per share for the full year FY15 from a net profit of RM4.09 million or 1.75 sen earnings per share in FY14.

Revenue for FY15 was RM53.83 million, representing an 8.33% decline from RM58.72 million in FY14.

BMedia shares were not traded today. They last closed at 37 sen for a market capitalisation of RM86.98 million. 

Biomass material manufacturer Heng Huat Resources Group Bhd’s wholly-owned subsidiary HK Power Sdn Bhd has entered into a contract with Advance Boilers Sdn Bhd for the construction of a biomass co-generation power plant for RM8.81 million.

According to its filing with the exchange today, the contract entails the design, supply, delivery to site, installation and commissioning of one unit of 1,077 electrical kilowatts (eKW) power plant by the vendor.

The power plant will be installed at Heng Huat's new production factory in Kelantan.

However, in the event the construction of the new factory is delayed or discontinued, the power plant will be installed at its existing factory in Penang.

Advance Boilers is a subsidiary of CB Industrial Product Holding Bhd. The company said 20% of the purchase consideration will be funded by internal funds, while the balance 80% will be funded by external borrowings.

The proposed acquisition is expected to be completed in the third quarter of 2016.

Property developer Keladi Maju Bhd’s net profit tripled to RM8.79 million or 1.16 sen a share for the first financial quarter ended April 31, 2015 (1QFY16) from RM2.92 million or 0.38 sen a share a year ago, mainly due to higher contribution from its property development segment.

Revenue was also higher, tripling to RM24.74 million from RM7.93 million in the previous corresponding quarter.

Keladi Maju's (fundamental: 1.65; valuation: 1.8) higher recognition of revenue and profit before tax was mainly due to improved sales activities and construction progress billings achieved.

IT solution provider PUC Founder (MSC) Bhd, via its subsidiary MaxGreen Energy Sdn Bhd, has signed a renewable energy power purchase agreement with Tenaga Nasional Bhd (TNB) to provide electricity generated from its 1-megawatt-peak (MWp) solar photovoltaic (PV) plant in Sungai Petani, Kedah for 21 years.

Under the deal, TNB will purchase the electricity generated from the solar PV plant based on a Feed-in Tariff (FiT) rate of RM1.0355 per kilowatt-hour.

In a statement today, PUC Founder (fundamental: 1.85; valuation: 1.1) said construction of the solar PV plant will start soon and is planned for operation by fourth quarter of this year. It is expected to start contributing to PUC Founder's revenue in the first quarter of 2016.

Carbon steel fasteners manufacturer Chin Well Holdings Bhd co-founder Tsai Yung Yu ceased to be a substantial shareholder in the company effective today.

In a filing with Bursa Malaysia, Chin Well said Tsai ceased to be a substantial shareholder. He disposed of 158.31 million shares or equivalent to 52.9% stake in the company.

(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.)