By Gho Chee Yuan / theedgemarkets.com | July 27, 2015 : 9:44 PM MYT
KUALA LUMPUR (July 27): Based on news flows and corporate announcements today, some of the companies that may attract investor attention tomorrow (Tuesday, July 28) include the following: AirAsia, Destini, MAHB (Financial Dashboard), Milux, DPS Resources, Mieco Chipboard, Y&G, UEM Edgenta, Melati Ehsan, Ikhmas Jaya, London Biscuits, Khee San and 1 Utopia.
AirAsia Bhd has signed a collaboration agreement with maintenance, repair and overhaul (MRO) services provider Destini Bhd ( Financial Dashboard), under the budget airline's proposed outsourcing of its aviation services to Destini.
"Each of these initiatives is to be implemented in a phased manner, over the next six to eight months, one after the other," Destini (fundamental: 1.7; valuation: 1.1) told stock exchange today.
AirAsia expects the outsourcing to reduce its cost by about 10% to 15% per annum.
Meanwhile, Reuters quoted AirAsia Bhd group chief executive officer (CEO) Tan Sri Tony Fernandes as saying that the group will recapitalise its 49%-owned Indonesian associate PT Indonesia AirAsia (IAA) so that the unit can meet a rule set by the country's transport ministry.
The report said IAA has submitted a plan to boost shareholder's equity ahead of a month-end deadline.
In another news, AirAsia said that the new budget passenger terminal klia2 is sinking — with cracks appearing in the taxiway and water forming pools that planes must drive through — and wants to move back to the old low cost carrier terminal (LCCT) while Malaysia Airports Holdings Bhd (MAHB) resolve the issues at klia2.
It claims that the defects could cause flight delays, increase wear and tear on planes and pose potential safety risks. AirAsia is klia2’s main tenant.
AirAsia CEO Aireen Omar said today the continuous remedial works at the RM4 billion klia2 is hindering AirAsia's operations, making it difficult for the low-cost carrier to operate efficiently.
Milux Corp Bhd ( Financial Dashboard) saw changes in its shareholdings today after businessman Yee Ying Sung disposed of 2.76% equity interest and ceased to be a substantial shareholder in the company.
Yee emerged as a substantial shareholder in Milux with a 5.51% direct stake in last December. He, however, trimmed down his stake on June 2 this year by disposing of 1.5 million shares via an off-market transaction.
Following the latest disposal, Yee should still have some 2.75% stake in Milux (fundamental: 1.2; valuation: 0.3).
DPS Resources Bhd has appointed Edward Sow Yuen Seng as its managing director (MD) to replace his father Datuk Seri Dr Sow Chin Chuan who will take on the position of executive chairman.
In a filing with Bursa Malaysia today, DPS Resources (fundamental: 1.05; valuation: 0.9) said Yuen Seng, 28, joined Baker Tilly Monteiro Heng as an audit assistant in 2011 before joining DPS Realty Sdn Bhd, a company controlled by Chin Chuan, as a finance accounts manager from 2002 to 2008.
Prior to this, Yuen Seng has served as a director of TST Construction Sdn Bhd, which started operating on Jan 28, 2014.
He is also MD of ESYS Construction Sdn Bhd, an entity that is 74.29% controlled by him and 25.71% held by his mother Datin Chu Kim Guek.
Meanwhile, Chin Chuan, who controls a 53.62% stake in DPS Resources as at Jan 16 this year, has over 20 years of experience in the construction and wood-based industry.
Particleboard maker Mieco Chipboard Bhd ( Financial Dashboard)'s single largest shareholder Purnama Kuantum Sdn Bhd (Purnama Kuantum) has ceased to be a substantial shareholder in the company on termination of Conditional Letter of Agreement dated Jan 21 this year.
It told Bursa Malaysia that the cessation took place after Purnama Kuantum mutually terminated the conditional letter of agreement with Ambang Sehati Sdn Bhd and BRDB Developments Sdn Bhd (BRDB).
Mieco Chipboard (fundamental: 0.65; valuation: 0.9) said the termination was due to unfulfilment of conditions, but did not elaborate.
Purnama Kuantum first emerged as the single largest shareholder in Mieco Chipboard after acquiring some 119.19 million shares or a 56.76% stake in the company in January this year from Ambang Sehati and BRDB.
Y&G Corp Bhd ( Financial Dashboard) intends to develop a mixed development on a 16.79-ha piece of commercial leasehold land located off Jalan Bandar Tasik Puteri in Rawang, Selangor, and is acquiring Maha Harapan Sdn Bhd (MHSB) for RM4.68 million to get its hand on the said tract.
However, the property developer said the proposed development is still at a preliminary stage.
"The proposed development is still subject to the planning and the development approvals from the relevant authorities upon the completion of the proposed acquisition," it told the stock exchange today.
As such, Y&G is unable to ascertain the indicative gross development value at this juncture.
Y&G today signed a share sale agreement with four individuals to acquire Maha Harapan Sdn Bhd (MHSB). MHSB is in the midst of acquiring the 16.79-ha piece of land, which has an unaudited net book value of RM37.27 million as at June 30, from Sapphire Plenitude Sdn Bhd. The land lease will expire on Nov 24, 2093.
The land is currently free from all encumbrances except for the charge in favour of Sabah Development Bank Bhd for loan facilities granted to Sapphire Plenitude, in which the latter has an outstanding sum of RM33.21 million due as at March 5, plus interest accrued thereon until its full settlement, the filing added.
The purchase consideration will be funded via Y&G’s internal funds arising from its recently completed proposed private placement with warrants and proposed rights issue with warrants.
UEM Edgenta Bhd has tied up with Resource Data Management Ltd's (RDM UK) unit Resource Data Management Asia Sdn Bhd (RDM Asia) to form a joint venture (JV) company to offer energy management services, together with remote monitoring and control solutions.
Under the partnership, the JV company will also develop active facility management capabilities for the commercial and industrial buildings/facilities segment (excluding hypermarkets, supermarkets, food and retail outlets and food factories) within Southeast Asia.
UEM Edgenta (fundamental: 2.5; valuation: 1.1) told Bursa Malaysia today that it has signed a JV cum shareholders agreement with RDM Asia to effect the tie-up, under which it will hold a 70% stake, while the remainder will go to RDM Asia.
Property developer Melati Ehsan Holdings Bhd ( Financial Dashboard)'s net profit for the third financial quarter ended May 31, 2015 (3QFY15) fell 87.6% to RM827,000 or 0.69 sen per share from RM6.64 million or 5.55 sen per share a year ago, due to lower operating profit from all segments of the group.
Quarterly revenue was down 57.2% to RM46.26 million from RM108.16 million in 3QFY14.
For the cumulative nine months (9MFY15), Melati Ehsan's (fundamental: 1.8; valuation: 2) net profit declined 67.43% to RM5.51 million from RM16.92 million last year.
Revenue for the period also retreated by 38.92% to RM154.33 million from RM252.67 million a year earlier.
Nevertheless, Melati Ehsan remains optimistic on its earnings going forward. It said the ongoing construction works and property development including road work in East Coast Economic Region (ECER) projects, PPR and Taman Ehsan Jaya at Pandamaran will continue to contribute positively to its revenue and profitability.
Ikhmas Jaya Group Bhd, which made its trading debut on the Main Market of Bursa Malaysia today, is the most traded stock as well as one of the top gainers across the bourse today.
Its shares opened at 68 sen, an 11 sen premium to its issue price of 57 sen, with 126 million shares changing hands. It closed at its intra-day high of 82 sen, up 25 sen or 43.86%, after 171.58 million shares changed hands.
At a press conference after its listing ceremony today, Ikhmas Jaya group MD Datuk Ang Cheng Siong said: "I think the (opening) price is fair and reasonable. It reflects our strong fundamental."
He said the piling and engineering specialist is eyeing projects related to the Kuala Lumpur–Singapore High Speed Rail, as it falls within the group’s area of expertise.
Currently its order book stands at RM346 million, which is made up mostly of construction projects.
Ang also expects Ikhmas Jaya to achieve a double-digit revenue growth for the financial year ending Dec 31, 2015 (FY15).
London Biscuits Bhd ( Financial Dashboard) said it is not considering a merger and acquisition (M&A) with its subsidiary, Khee San Bhd ( Financial Dashboard).
"The company has never made any consideration for an M&A in respect of Khee San as Khee San is currently a subsidiary of London Biscuits," it said in a filing with Bursa Malaysia today.
It was responding to a news report that London Biscuits (fundamental: 0.5; valuation: 1.7) was considering a M&A with Khee San (fundamental: 0.3; valuation: 1.7) and was working out the terms of the M&A.
Information communications and technology (ICT) lifestyle retailer 1 Utopia Bhd ( Financial Dashboard) has been slapped with an unusual market activity (UMA) query by Bursa Securities today on the sharp rise in volume of its shares recently.
1 Utopia's trading volume soared to 132.6 million shares last Friday from 170,000 shares on Thursday. The stock was the fifth most actively traded counter on Bursa today, registering a trading volume of 47.61 million shares.
At market close, 1 Utopia's (fundamental: 0.95; valuation: 0.9) share price fell 0.5 sen or 11.11% to settle at 4 sen, bringing it a market capitalisation of RM44.51 million.
Its shares have risen to current levels from a low of 3.5 sen on July 23.
1 Utopia has outlets in Plaza Low Yat in Kuala Lumpur, as well as Digital Mall and Sunway Pyramid in Petaling Jaya.
(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.)