PetChem, Carimin Petroleum, SLP, XiDeLang, KLCCP, Axiata, Country Heights, EG Industries, CIMB Group, Stone Master, Wing Tai, and MKH

By Sangeetha Amarthalingam / theedgemarkets.com   | August 8, 2015 : 12:48 AM MYT   

GEORGE TOWN (Aug 7): Based on corporate announcements and news flow today, companies that may be in focus on Monday (Aug 10) could include the following: PetChem, Carimin Petroleum, SLP, XiDeLang, KLCCProp (Financial Dashboard), Axiata, Country Heights, EG Industries, CIMB Group, Stone Master, Wing Tai, and MKH. 

Petronas Chemicals Group Bhd (PetChem)’s net profit for the second quarter ended June 30, 2015 (2QFY15) rose a marginal 0.4% to RM557 million or 7 sen a share, on better earnings due to lower feedstock cost, coupled with favourable exchange rate movements.

In the same period last year, it reported a net profit of RM555 million, also 7 sen a share, its filing to Bursa Malaysia today showed.

Its revenue for the quarter inched down 1.2% to RM3.3 billion from RM3.34 billion, comparable to last year, on higher sales volumes and favourable exchange rate movement which offset the impact of lower average product prices.

The chemical products manufacturer has declared an interim single tier dividend of eight sen for FY15 — same as last year — amounting to RM640 million, payable on Sept 9.

Despite higher volumes, its cumulative six months period (1HFY15)’s net profit declined 10.8% to RM1.16 billion or 15 sen per share from RM1.3 billion or 16 sen in 1HFY14, due to narrower product spreads and lower share of profit of equity-accounted joint ventures and associates.

Carimin Petroleum Bhd has bagged a contract for the provision of topside major maintenance from Lundin Malaysia BV for an undisclosed amount.

According to the offshore oil and gas services provider's filing with Bursa Malaysia today, it said the contract's total value will depend on the actual work orders to be issued by Lundin from time to time during the contract period.

Carimin secured the contract via its unit Carimin Engineering Services Sdn Bhd (CES) on July 8, 2015.

Under the contract, CES is required to provide topside maintenance services based on a work order issuance basis for Lundin's Wellhead Platform (WHP) and floating production storage and offloading (FPSO) unit in the Bertam offshore oil field.

The contract, which commenced on July 8, 2015, and will be effective for two years until 2017, carries a further one-year extension.

Carimin expects the contract to contribute positively to its future earnings and net assets.

SLP Resources Bhd ( Financial Dashboard)’s net profit for the second quarter ended June 30, 2015 (2QFY15) has gone up 2.5 times to RM6.4 million or 2.59 sen per share due to better sales mix and margins.

In a filing today, the plastic packaging products manufacturer’s net profit was at RM2.5 million or 1.01 sen per share in 2QFY14.

Its latest quarterly revenue came in at RM42.51 million, down 6.44% from RM45.44 million a year ago, on lower domestic sales.

The company declared a first interim single-tier dividend of 1.5 sen per share, amounting to RM3.7 million, payable on Oct 8, 2015. The stock will trade ex-dividend on Sept 22.

For the cumulative six months (1HFY15), SLP Resources registered a RM10.86 million net profit, a little over two times the RM5.04 million it saw in 1HFY14, on better sales mix with higher proportion of export sales of flexible plastic packaging products, which led to better margins.

Cumulative revenue, however, was down 6.62% to RM83.94 million compared with RM89.89 million a year earlier.

XiDeLang Holdings Ltd ( Financial Dashboard) is proposing a one-for-one bonus issue of up to 1.96 billion shares to reward shareholders. 

In its filing today, the China-based sports shoes maker as at Aug 4, its total issued and paid up capital totalled RM152.82 million comprising 1.32 billion shares, which will enlarge to RM455.45 million comprising 3.93 million shares on completion of the exercise.

XiDeLang also said the company has 25.8 million options under existing employees' share option scheme (ESOS) which have been granted but unexercised.

This comprises 181.49 million outstanding XiDeLang warrants 2014/2017 issued by the company pursuant to the deed poll dated Dec 9, 2013 (Warrants B) and 440.63 million outstanding XiDeLang warrants 2015/2018 dated June 17, 2015 (Warrants C).

KLCC Property Holdings Berhad (KLCCP) has announced a distribution per unit (DPU) of 8.34 sen for its second quarter ended June 30, 2015 (2QFY15), slightly higher as compared to 8.05 sen in the previous corresponding quarter.

The 2QFY15 dividend will be paid on Sept 18, according to an announcement with Bursa Malaysia today.

KLCCP (fundamental: 1.60; valuation: 1.50) raked in a total realised distributable income of RM160.97 million for the quarter — an 8.4% increase from RM148.48 million in 2QFY14.

The staple REIT (real estate investment trust) also reported a net profit of RM179.86 million or 9.96 sen a share, for the second quarter ended June 30, 2015 (2QFY15),  a 19.2% increase compared with RM150.9 million or 8.36 sen a share a year ago, due to higher rental rates.

Revenue for the quarter, however, dipped marginally to RM329 million, from RM332.81 million in 2QFY14, due to closure of City Point Kompleks Dayabumi for redevelopment and challenging conditions for hotel operations, according to the group’s filing to Bursa Malaysia.

However, its management services recorded higher revenue from additional facilities management services.

For the six months period (6MFY15) ended June 30, KLCCP posted a net profit of RM358.37 million or 19.85 sen a share, 7% higher as compared to RM335.86 or 18.55 sen a share a year ago. This is despite slightly lower revenue of RM655.9 million for the period, from RM673.7 million in 6MFY14.

Axiata Group Bhd ( Financial Dashboard)'s unit, Adknowledge Asia Pacific Pte Ltd (APAC), is buying out Komli Asia Holding Pte Ltd (Komli), an Indian-based digital media technology firm, for US$11.25 million (RM44.08 million) cash.

In a filing with Bursa Malaysia today, Axiata said APAC had entered into a Sale and Purchase Agreement (SPA) with Komli Media Inc today for the proposed acquisition.  

Axiata said the acquisition is a compelling strategic opportunity for APAC, as it enables the subsidiary to skip past the formative stage of its business plan, and scale up its presence and operations in South East Asian region.

"Komli Asia Group brings with it a geographically diversified revenue and provides a strong strategic fit across digital advertising verticals, such as social, video, display and mobile.

"It also brings in an experienced and deployed talent base of more than 100 sales, ad-ops and other personnel with strong reputation in the region, with deeply entrenched relationships with premium publishers and advertisers," it added.

Country Heights Holdings Bhd ( Financial Dashboard) incurred a net loss of RM7.8 million for the second quarter ended June 30 (2QFY15), compared with net profit of RM7.2 million achieved in the corresponding period last year.

This is the second consecutive quarter that the property developer has been in the red, due to lower sales of completed inventories and lower progressive recognition of ongoing developments.

The company also attributed the losses to lower contribution from the hospitality, health and tourism division, as compared to 2014.

In a filing with Bursa Malaysia, it said it posted loss per share to 2.86 sen, as compared to earnings per share of 2.63 sen in the previous corresponding quarter.

EG Industries Bhd ( Financial Dashboard)’s unit, SMT Technologies Sdn Bhd, has clinched a manufacturing and supply contract from a Finnish firm, Tramigo Ltd, which it expects to generate a revenue totaling US$50 million (RM195.93 million) over the next two years.

In a press release posted on Bursa Malaysia, the electronics manufacturing services (EMS) player said it was tasked to provide full-scale manufacturing services, from mould-making and plastic injection to final product assembly and testing.

The company’s executive director Alex Kang said the group targets to commence full-scale production by first half of 2016, after having undergone the trial production phase since the second quarter of calendar year 2015 (2QFY15).

"The group opines that Tramigo should contribute positively to group revenue from financial year 2016 (FY16) ending Jun 30, 2016 onwards," he added.

Kang said this contract will certainly reinforce the group's position as a one-stop provider for consumer electronics brands.

Tramigo is a pioneer in the field of vehicle and fleet management software and has presence in the emerging high growth markets such as Africa, Asia and Latin America.  

CIMB Group Holdings Bhd ( Financial Dashboard) will be spreading its wing in Vietnam. It has been given the nod by Vietnam’s central bank to operate a banking branch in the country, said the banking group in a press release on Friday.

In a statement today, CIMB Group said the in-principal approval allows the group to establish and operate a wholly-owned subsidiary that can offer full-fledged banking services, such as wholesale, commercial and consumer banking products and services to Vietnam.   

According to CIMB Group, it aims for its first branch in Hanoi to be fully operational by the third quarter of 2016, which is when the banking group is expecting to secure the full operating banking license.

Currently, CIMB Group’s presence in Vietnam is limited to brokerage services via its partnership with VNDIRECT, a Vietnam-based brokerage firm.

Stone Master Corp Bhd has become the exclusive agency of Hong Kong-incorporated Lion Legend Holdings Ltd and China-incorporated Guangdong Be-Tech Security systems to design, distribute and install their respective products in Malaysia and Singapore.

In its filing to Bursa Malaysia today, Stone Master said it has entered into separate exclusive agency agreements (EAA) with the two today to effect the tie-ups, which it will have to fork out a collective RM230 million as one-time ‘initial agency fees’.

However, Stone Master, which closed 1 sen or 3.57% lower at 27 sen today for a market capitalisation of RM25.17 million, did not specify as to how it intends to fund the agency fees. As at March 31, its cash and bank balances stood at only RM417,000, with total assets valued at RM57.6 million.

Lion Legend specialises in the development and production of various types of ceramic sanitary ware products and is a wholly-owned unit of Germany-listed ROY Ceramics SE.

In return for the RM150 million initial agency fees, Lion Legend will provide Stone Master with an assured profit guarantee of 30% of the gross contract value that the latter secures in the future, with a one-time initial kick-off package in the form of products and services, worth RM130 million.

In its EAA with Guangdong Be-Tech, Stone Master will pay an initial agency fee of RM80 million to Guangdong Be-Tech for the rights to design, market and install the latter’s ‘BE-TECH’ electronic security locks.

In return, Guangdong Be-Tech will provide Stone Master with an assured profit guarantee of 30% of the gross contract value that the latter secures in the future, with a one-time initial kick-off package in the form of products and services, worth RM65 million.

The respective tenure of both the EAAS is five years. Stone Master added that the EAAs will contribute significantly to its overall trading profit.

Wing Tai Malaysia Bhd ( Financial Dashboard)’s UNIQLO brand of apparel seems to be doing well. UNIQLO Malaysia announced that it is opening seven new stores between September and November this year, and entering into the East Malaysian market.

In a statement today, UNIQLO said these stores will be located in the Klang Valley (The Curve), Perak (AEON Klebang), Kedah (Aman Sentral), Sabah (Imago KK Times Square and Suria Sabah), and Sarawak (The Spring Mall and Vivacity Megamall).

UNIQLO Malaysia currently has 25 stores located within the Klang Valley, Johor, Malacca, Pahang and Penang.

MKH Bhd ( Financial Dashboard) is planning to develop 10 tracts of land in Semenyih beside its Kajang 2 township development, measuring about 130.05 acres in total, with a gross development value (GDV) of RM1 billion, via a joint venture.

In its filing with Bursa Malaysia, MKH said its wholly-owned subsidiary, Suria Villa Sdn Bhd, had entered into a joint venture (JV) agreement with three private companies — the landowners — to undertake the development.

The private companies are: Sim See Hua Brothers Sdn Bhd, Segamurni Corp Sdn Bhd and Joint Power Development Sdn Bhd. Eight of the tracts (115.49 acres) are freehold, while the remainder (14.56 acres) are leaseholds.

In return, the landowners are expected to get a minimum of RM238.95 million from MKH, to be progressively paid over eight years.

Alternatively, they could get 30% of the GDV of units sold for landed development, 20% for high rise residentials, and 22.5% for townhouses.

The development will be completed within seven years from the commencement date, which will be fixed after the group obtains the relevant regulatory approvals. MKH will fund the development through a mix of internally-generated funds, bank borrowings, and/or other forms of fund raising.

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