KUALA LUMPUR (May 30): Based on corporate announcements and news flow today, companies that may be in focus tomorrow (Tuesday, May 31) could include the following: Tropicana, Guan Chong, Kejuruteraan Samudra, Sumatec, Eversendai, Tanjung Offshore, MyEG, Kimlun, Petaling Tin and Karambunai.
Tropicana Corp Bhd is in the midst finalising a land deal in Johor. The property developer announced that its indirect wholly-owned unit Tropicana Desa Mentari Sdn Bhd had entered into a heads of agreement with Terran Property Sdn Bhd.
According to the announcement to Bursa Malaysia today, the deal could be a land sale or the granting of development rights to Terran Property and its related parties of the freehold land measuring about 131.964 hectares in gross area in Pulai, Johor Bahru.
Guan Chong Bhd and Teoh Boon Hak plan to dispose of a 70% equity interest in GCB Specialty Chocolates Sdn Bhd (GCBSC) to Singapore's Fuji Oil Asia Pte Ltd, for RM12.81 million, cash.
The deal is expected to bring in earnings of about RM8.1 million to Guan Chong, which should reduce its gearing from 2.2 times to 2.01 times upon the repayment of bank borrowings, according to its bourse filing today.
The Johor-based cocoa processor said it has, together with Teoh, entered into a share sale and purchase agreement with Fuji Oil Asia to dispose of the equity stake in GCBSC, which involves 14 million ordinary shares of RM1 each.
Teoh will get RM960,750 of the disposal consideration for selling 1.05 million shares, while Guan Chong will get the balance RM11.85 million for giving up 12.95 million shares, which it expects to use for working capital within six months.
Major shareholders of Kejuruteraan Samudra Timur Bhd (KSTB) have proposed to the board to undertake a selective capital repayment (SCR) to take the Practice Note 16 company private at 42 sen per share, three sen below the last traded price of 45 sen.
The proposal came after the management's efforts to convert the cash-rich company into a power producer failed in March.
In a bourse filing, KSTB said its founder Datuk Chee Peck Kiat @ Chee Peck Jan, together with executive director Darmendran Kunaretnam, whose investment holding company Trance Rex Sdn Bhd holds a substantial stake, and executive director Chee Cheng Chun, will utilise the company's available cash and proceeds from exercising outstanding warrants to buy the company's shares and warrants that they do not own before cancelling them.
As at end-2015, KSTB's cash balance was at RM105.14 million while its total borrowings amounted to RM9.39 million.
Currently, the major shareholders collectively hold 102.57 million shares or a 55.21% stake in KSTB. They also hold 21.45 million or 31.21% of the company's outstanding warrants. The company's non-interested directors will have until June 13 to agree to Darmendran and his interested parties' privatisation proposal.
The offer price of 42 sen per share is at a 6.67% discount to KSTB's closing price of 45 sen last Friday, the company pointed out in the filing. Meanwhile, warrant holders will receive 12 sen per unit from the proposed SCR.
The net earnings for Sumatec Resources Bhd shrank 88.6% to RM2.24 million in the first quarter ended March 31, 2016 (1QFY16) from RM19.73 million in 1QFY15, due to the slowdown in the oil and gas (O&G) industry, exacerbated by a RM12.89 million unrealised foreign exchange loss caused by weaker US dollar in the period.
In its bourse filing, Sumatec said its revenue in 1QFY16 slipped nearly 44% to RM15.7 million from RM27.89 million in the previous corresponding quarter.
Eversendai Corp Bhd reported a first quarter net loss of RM50.43 million compared with a net profit of RM19.4 million a year earlier, due to financial asset fair value and foreign exchange losses.
The group told the bourse exchange that its revenue for the first quarter ended March 31, 2016 (1QFY16) was higher at RM440.73 million versus RM402.78 million.
Impact on fair value of financial assets and unrealised foreign exchange loss has resulted in the loss before tax of RM46.7 million in the first quarter, as compared to last year's profit of RM21.2 million.
In response to the slowdown in the O&G industry, O&G services provider Tanjung Offshore Bhd has partnered Hills Education Group to diversify into the education and training business.
Tanjung Offshore also indicated it is gearing up to enter the property construction, development and maintenance space, besides exploring opportunities in education, aerospace and transport, while remaining focused in O&G.
The company said in a statement, the joint venture will combine Tanjung Offshore's business expertise and Hill Education's vast education experience to form a dynamic and strategic partnership.
My EG Services Bhd saw its net profit rise 73.62% to RM33.11 million in the third quarter ended March 31, 2016 (3QFY16) from RM19.07 million a year ago, as revenue climbed near 80%.
Revenue rose to RM70.13 million from RM38.97 million a year ago. No dividend was declared for the quarter, its bourse filing today showed.
The improved financial performance was primarily due to higher transaction volumes from the online renewal of foreign workers' permits and insurance, and foreign worker rehiring programme services, as well as higher revenue contribution from its JPJ-related services.
The better earnings were also due to contributions from its newly acquired unit, Cardbiz Holding Sdn Bhd, and its group of companies.
Kimlun Corp Bhd's net profit for the first quarter ended March 31, 2016 (1QFY16) increased to RM17.1 million, marking a 21.2% jump from its 1QFY15 net profit of RM14.12 million.
In its filing to the bourse, Kimlun said the increase in profitability was due to better gross profit margin derived by its construction, manufacturing and trading divisions.
Additionally, an overall weaker ringgit against the Singapore dollar in the current quarter, in comparison to last year's corresponding period, also contributed to gross profit margin improvement during the period.
However, the group's revenue for 1QFY16 fell 27.1% to RM234.8 million from RM322.16 million a year ago, mainly due to lower construction revenue as a result of lower amount of balance orders in hand, carried forward from FY15 for execution in FY16.
Inter-Pacific Securities Sdn Bhd, the independent adviser for the takeover offers for Petaling Tin Bhd and Karambunai Corp Bhd, has recommended that shareholders reject both offers.
Inter-Pacific said in its independent advice circulars that the offers from major shareholder Tan Sri Dr Chen Lip Keong had undervalued property-based Petaling Tin and Karambunai in revalued net asset value terms.
Chen is offering 24 sen for each Petaling Tin share and five sen for each Karambunai share.