KUALA LUMPUR (June 10): Based on corporate announcements and news flow today, companies that may be in focus on Monday (June 13) include the following: MKH Bhd, Berjaya Food (BFood), Perisai Petroleum Teknologi, Trive Property, Hektar REIT and EcoFirst Consolidated.
MKH Bhd, which owns oil palm estate measuring 15,900 hectares (ha) in Indonesia, is buying additional 2445-ha plantation land there for RM15 million cash.
As part of the acquisition, it will also absorb debts amounting to US$7.125 million or RM29 million, bringing total cost of land to some RM44 million.
The group announced to Bursa Malaysia today that its wholly-owned subsidiary company, MKH Plantation Sdn Bhd, had today entered into a sale and purchase agreement with Ivakijaya Sdn Bhd (Ivakijaya) to acquire 6,975 ordinary shares of Rp1 million (about RM306) each, equivalent to 75% equity interest in PT. Sawit Prima Sakti (PTSPS), for a total cash consideration of RM15 million.
It is worth noting that MKH will also be taking over 75% of PTSPS book debts, including 75% of PTSPS’s US$9.5 million (RM38.68 million) loan, which is about US$7.125 million (RM29 million), for MKH’s portion with Hong Leong Bank Bhd.
PTSPS owns about 2,445.49-ha of oil palm plantation land in East Kalimantan, Indonesia.
The group also noted that the purchase of the sale shares is at a discount of about RM2.48 million, based on the adjusted market value of the plantation.
Berjaya Food Bhd’s (BFood)’s net profit halved to RM3.17 million or 1.05 sen per share in the fourth quarter ended April 30, 2016 (4QFY16), down 50.55% from RM6.41 million or 1.72 sen a share a year ago.
This was despite a 7.86% increase in revenue to RM139.05 million in 4QFY16, from RM128.92 million in the fourth quarter of financial year 2015 (4QFY15).
For the full year (FY16), net profit shrunk 87.11% to RM22.88 million or 6.09 sen a share, from RM177.57 million or 54.41 sen a share in financial year 2015 (FY15).
The group’s annual pre-tax profit of RM36.44 million was higher than RM23.6 million (after excluding the remeasurement gain of about RM159.2 million) in FY15. The remeasurement gain was the full effect of consolidating BStarbucks.
Revenue grew 47% to RM554.15 million in FY16, from RM376.78 million in FY15.
The group declared a fourth interim dividend of one sen a share, payable on July 28, bringing its full year dividend to 4.25 sen a share.
In notes accompanying its results, BFood said net profit declined in 4QFY16, due to lower contribution from the Kenny Rogers Roasters operations in Malaysia as Malaysian consumers became more cautious and prudent in their spending, post implementation of the goods and services tax (GST).
Profit margin of Berjaya Starbucks Coffee Company Sdn Bhd (BStarbucks) in 4QFY16 was also hit by the steep depreciation of the ringgit, which had weighed down on the profit margin of Starbucks’ operations.
BFood also said BStarbucks had to fork out RM600,000 to the Royal Malaysian Customs Department for additional import duty and sales tax on purchases from its principal over the past few years.
Higher revenue in 4QFY16 was attributed to higher sales at existing cafes, as well as additional cafes operating in 4QFY16.
Higher revenue in FY16 was also mainly due to the full effect of consolidating BStarbucks, it added.
On prospects, BFood said with weak consumer sentiment brought on by the introduction of the GST and various other factors, BFood expects a very challenging environment in the next financial year.
However, it expects BStarbucks to maintain its revenue growth momentum, especially with its new fast moving consumer goods business contributing positively to the operating results of the group, going forward.
Perisai Petroleum Teknologi Bhd has again delayed delivery of its second jack-up rig Perisai Pacific 102 to no later than Oct 31, 2016, due to soft market conditions.
In a filing with Bursa Malaysia, Perisai said today that it had reached an agreement with PPL Shipyard Pte Ltd on the second delay.
“Seeing that the offshore drilling is currently facing soft market conditions globally, the directors of Perisai are of the opinion that further deferment [is] in the best interest of the company,” the filing read.
Perisai said both parties have further agreed that Perisai will not bear cost for the Perisai Pacific 102, from April 1, 2016 onwards.
Since the suspension of cost for the deferment is in place, the company said this would result in a positive impact to the group’s financial position.
Additionally, the parties also agreed to take the opportunity to seek and evaluate any options that may arise during this period.
Trive Property Group Bhd was slapped with an unusual market activity (UMA) query by Bursa Malaysia on the recent surge in its share price and volume.
Its shares has more than doubled to 10.5 sen today, from 4.5 sen — the closing price it recorded on June 8. The stock closed at 10 sen, up three sen today against Thursday’s closing of seven sen.
Trading volume today was at 176.11 million, significantly higher than its 200-day average volume of 4.22 million. Year-to-date, the counter has gained 90%.
In a separate filing, Trive replied to the UMA query saying it was unaware of any corporate developments, rumour or any other report that may account for the UMA.
It said besides the fact that the company has regularized the default in payment to Paragraph 9.19A of the main market listing requirements, the group is not aware of any other possible explanation for the sharp fall in its share price yesterday.
Hektar Real Estate Investment Trust (REIT) is proposing to acquire the 1Segamat Shopping Centre in Johor from Tashima Development Sdn Bhd, a unit of EcoFirst Consolidated Bhd, for RM104 million cash.
EcoFirst Consolidated Group is expected to record a net loss of approximately RM16.213 million after tax and expenses arising for the proposed disposal, based on its audited net book value as at May 31, 2015.
EcoFirst will utilise RM42 million to pare down borrowings, and RM45 million for group taxes. Meanwhile, it will allocate RM10 million for business expansion within 24 months, while RM5 million for working capital within 12 months.
Over at Hektar REIT, this marks the second Johor mall it buys, after Wetex Parade in Muar in 2008.
In a filing with Bursa Malaysia today, Hektar REIT said it has entered into a conditional sale and purchase agreement with Tashima for the proposed acquisition of the 1Segamat property and the car park rights.
To part finance the proposed acquisition, Hektar REIT will undertake a renounceable rights issue of new units on an entitlement date to be determined later, to raise gross proceeds of up to RM75 million. The remainder of the acquisition price will be financed via bank borrowings.
Hektar REIT will also undertake an issuance of new units to the REIT manager, Hektar Asset Management Sdn Bhd, as part of the acquisition fee due to the manager.
Upon completion of the proposed acquisition, Hektar REIT will own six retail malls — 1Segamat and Wetex Parade in Johor; Subang Parade in Selangor, Mahkota Parade in Melaka, Central Square in Sungai Petani, Kedah; and Landmark Central in Kulim.