AT Systematization, Mah Sing, Raya International, Lafarge Malaysia, SKB Shutters, Guinness Anchor, EA Technique, BHS Industries, The Media Shoppe, and FGV

By Azril Annuar / theedgemarkets.com   | August 14, 2015 : 10:31 PM MYT   

KUALA LUMPUR (Aug 14): Based on corporate announcements and news flow today, the companies that may be in focus next week (Mon, Aug 17) could include the following: AT Systematization, Mah Sing ( Financial Dashboard), Raya International, Lafarge Malaysia, SKB Shutters, Guinness Anchor ( Financial Dashboard), EA Technique, BHS Industries, The Media Shoppe ( Financial Dashboard), FGV

Loss-making AT Systematization Bhd aims to break even in financial year ending February 29, 2016 (FY16), even as the industrial automation specialist contends with decreasing orders from hard disk drive (HDD) manufacturers.

AT Systematization executive director Mak Siew Wei said the lynchpin to realise its FY16 earnings target is the company's joint venture (JV) with Singapore-based Fong’s Engineering & Manufacturing Pte Ltd (FEM).

“The JV entity is known as Fong’s & AT Venture Sdn Bhd. We want FEM to load us with more jobs,” Mak told reporters after AT Systematization's annual general meeting today.

He said Fong’s & AT Venture is aiming to clinch a major job from a Switzerland-based company, which builds components for textile machines.

Securing the project will be timely especially when AT Systematization is facing a 40% on-year decline in HDD orders from one of its main customers Western Digital, as it was slowing the pace of its global HDD output.

Mah Sing Group Bhd (Mah Sing) has aborted the purchase of a prime freehold tract in Seremban measuring 1,051.3 acres for RM359.56 million, due to a breach of terms in the sale and purchase agreement (SPA) by the vendors.

Its wholly-owned unit Grand Prestige Development Sdn Bhd, who was to undertake the acquisition, sent a letter through its solicitors today to the vendors informing them that the SPA is void and/or rescinded.

In its filing today, Mah Sing (fundamental: 2.8; valuation: 2.4) also demanded a refund of the 10% deposit, RM35.96 million with interests earned thereon from the vendors.

Further, Mah Sing said it had raised RM629.32 million from a rights issue with warrants that was completed on Feb 26 this year, of which RM107.2 million was earmarked for part payment of the proposed land acquisition.

With the rescission, it proposed to reallocate the amount for other potential land acquisitions and/or development activities. It will seek shareholders’ approval at an extraordinary general meeting to be convened to discuss the variation in the utilisation of the proceeds raised.

The proposed acquisition was to site a mixed development with an estimated gross development value (GDV) of RM7.5 billion.

Since Mah Sing expected revenue contribution to commence in 2016 and be developed over the next seven to eight years, the rescission will not have a near term material effect on earnings, Mah Sing noted.

Raya International Bhd ( Financial Dashboard)’s chairman Datuk Izham Yusoff, together with non-independent and non-executive director Yee Chee Seng, have resigned, effective today.

Raya International (fundamental: 0.85; valuation: 0) announced on Bursa Malaysia today that the two have resigned voluntarily, but did not specify why. It also did not name any replacements for the vacated posts.

Construction materials giant Lafarge Malaysia Bhd ( Financial Dashboard) has named French national Thierry Marie Robert Legrand, 49, as its new president and chief executive officer (CEO) to replace Bradley Peter Mulroney, 52, who has resigned, effective today.

According to Lafarge’s (Fundamental: 1.8; Valuation: 1.1) filing on Bursa today, Legrand, 49, first joined LaFarge in 1992 and has more than 23 years of experience in cement and plant activities. 

SKB Shutters Corp Bhd is acquiring a parcel of land in Kota Damansara, Selangor from Selangor State Development Corp (PKNS) for RM54.91 million cash.

In a filing with Bursa Malaysia today, SKB Shutters (fundamental: 1.55; valuation: 0.9) said its wholly-owned unit SKB Shutters Manufacturing Sdn Bhd accepted a PKNS offer for the proposed land acquisition.

“(A) formal SPA will be prepared and executed upon the finalisation of the terms and conditions between PKNS and SKB Shutters Manufacturing. [A] valuation report in compliance with the Securities Commission’s asset valuation guidelines will be done in due course," said SKB Shutters.

SKB Shutters Manufacturing has been occupying the factory building located on the piece of land for its business of manufacturing and sale of roller shutters, racking systems, storage system and related steel products since 2002 under a 30-year lease agreement with PKNS.

Guinness Anchor Bhd (GAB) saw its net profit fall 6.2% to RM44.02 million or 14.57 sen per share for its fourth financial quarter ended June 30, 2015 (4QFY15) from RM46.94 million or 15.54 sen per share a year ago, due to low consumer sentiment, inflationary pressure post-goods and services tax (GST), and unfair competition from contraband beers.

Revenue for 4QFY15 declined 3.7% to RM397.62 million from RM412.87 million in 4QFY14, mainly due to GST.

The group proposed a final dividend of 51 sen per share for the financial year ended June 30, 2015 (FY15), subject to approval of shareholders at the upcoming annual general meeting. If approved, the total dividend payment for the year will amount to 71 sen per share.

For the full year FY15, GAB (fundamental: 2.3; valuation: 2.1)’s net profit improved 8.1% to RM214.19 million or 70.9 sen a share from RM198.21 million or 65.61 sen a share in FY14, mainly due to higher revenue and cost efficiency in commercial investments and overheads.

Revenue rose 8.6% to RM1.75 billion from RM1.61 billion because of overall strong performance due to market recovery and the government’s effective measures against contraband beers.

EA Technique (M) Bhd saw its net profit surge more than five-fold to RM15.21 million or 3.02 sen per share for the second quarter ended June 31, 2015 (2QFY15) from RM2.82 million or 0.72 sen per share last year.

The increase was due to the securing of an engineering, procurement, construction, installation and commissioning (EPCIC) contract last year worth US$191.8 million for a floating storage offloading (FSO) facility in the North Malay Basin offshore Peninsular Malaysia.

Revenue for 2QFY15 jumped 417% to RM416.88 million from RM40.52 million in 2QFY14.

For the six months period (1HFY15), E.A. Technique’s net profit surged five-fold to RM22.57 million or 4.48 sen per share from RM6.65 million or 1.71 sen per share in 1HFY14.

Revenue increased exponentially to RM282.17 million compared with RM76.7 million in 1HFY14.

EA Technique told Bursa it expects to maintain its stellar performance throughout its financial year ending Dec 31, 2015 (FY15), adding that EPCIC contract was progressing per schedule and that it is expanding its fleet of marine vessels.

BHS Industries Bhd ( Financial Dashboard) will tap into oil palm wastes – empty fruit bunches (EFB) – to produce paper pulps as part of its diversification plan from its core printing business.

The group today received shareholders’ approval to raise RM44.8 million through a rights issue of up to 106.67 million new shares at an issue price of 42 sen per share, as funds for this new activity. 

The proposed rights issue with warrants are on the basis of one rights share with two warrants at the exercise price of 60 sen per warrant for every three BHS shares held. 

BHS (fundamental: 1.65; valuation: 0.8) executive director Khoo Tiam Yoong said proceeds from the rights issue will be used to set up a renewable paper pulp products manufacturing plant, utilising the EFB.

Multimedia solutions provider The Media Shoppe Bhd (TMS) announced that its chief executive officer Christopher Chan Hooi Guan has resigned, effective today.

In a Bursa filing, the company said Chan had stepped down to devote more time on operations at the subsidiary level.

Chan had recently ceased to be a substantial shareholder in the company, following the disposal of 66 million shares or a 7.58% stake in the company.

Meanwhile, in a separate filing, Master Knowledge Sdn Bhd, the group’s largest shareholder, has acquired a further 59.35 million shares in TMS (fundamental: 1.85; valuation: 0.9) via an off-market trade today, bringing its total holdings in the company to 92.35 million shares or 21.226%.

Felda Global Ventures Holdings Bhd (FGV) aims to enter into a definitive agreement for its proposed acquisition of a 37% stake in major Indonesian palm oil player PT Eagle High Plantations Tbk, the third-largest plantation group listed in Jakarta, by Oct 31 2015.

In a filing with Bursa Malaysia, Kenanga Investment Bank, on behalf of FGV (fundamental: 1.15; valuation: 2), said FGV has “substantially” completed the due diligence process on the proposed deal with the Rajawali Group.

The proposed deal will see FGV, via wholly-owned subsidiary Felda Global Ventures Kalimantan Sdn Bhd, fork out RM2.37 billion in cash and issue 95 million new shares to fund Eagle High’s acquisition.

The deal also involves FGV acquiring a 95% equity interest in vendor Rajawali’s sugar project for RM249 million.

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