Box-Pak, Press Metal, PMB Technology, DNex, TAHPS Group, MMS Ventures, MHB, White Horse, Marco Holdings, CCM, V.S. Industry and Maybank

KUALA LUMPUR (Aug 16): Based on corporate announcements and news flow today, companies that might be in focus tomorrow (Wednesday, Aug 17) include: Box-Pak (Malaysia), Press Metal, PMB Technology, Dagang NeXchange (DNex), TAHPS Group, MMS Ventures, Malaysia Marine and Heavy Engineering Holdings (MHB), White Horse, Marco Holdings, Chemical Company of Malaysia (CCM), V.S. Industry and Malayan Banking (Maybank).

Box-Pak (Malaysia) Bhd's net profit plunged 81% to RM769,000 in its second quarter ended June 30, 2016 (2QFY16), compared with RM4.06 million a year ago, on higher material and operating costs and foreign currency translation losses.

The weaker financials were also due to higher finance costs and initial pre-operating expenses incurred in Myanmar in the current quarter, its bourse filing today showed.

Revenue, however, rose 26% to RM123.09 million in 2QFY16, from RM97.8 million last year, due to contributions from its Vietnam operations.

In the six months ended June 30, 2016 (1HFY16), Box-Pak’s net profit fall 67% to RM2.14 million, from RM6.58 million a year ago, due to the same reasons that caused its quarterly profit decline, while revenue grew 26% to RM243.5 million, from RM193.9 million.

Box-Pak also plans to undertake a rights issue with free detachable warrants to raise up to RM120 million to expand its business in Malaysia and Myanmar, besides repaying short-term loans and to increase its working capital.

In a bourse filing, the manufacturer and distributor of corrugated carton boxes said it was timely to expand its production capacity by 38,400 metric tonnes per year in Malaysia, due to growing demand here.

Furthermore, in line with its aim to be a Southeast Asian player, it plans to up the capacity in its manufacturing plant, which is under construction in the Thilawa Special Economic Zone in Myanmar, by about 36,000 MT per annum.

It expects to use RM30 million for expansion in Malaysia and RM50 million in Myanmar, while RM39.1 million would go towards loan repayments and working capital, with RM900,000 reserved to defray expenses related to the implementation of these corporate exercises.

Press Metal Bhd, whose shares price hit all time high today, saw its net profit jump nearly six times to RM146.08 million or 11.24 sen per share for the second quarter ended June 30, 2016 (2QFY16), from RM24.73 million or 1.91 sen per share a year ago, on higher production output and a RM45 million insurance claim.

This was the highest quarterly earnings that the group recorded since 4QFY07.

Quarterly revenue was up 67.9% to RM1.59 billion, versus RM947.26 million in 2QFY15, due to the additional capacity contributed by its new second phase facility and full production from Phase 1 smelter.

It declared a second interim dividend of three sen per share, amounting to RM39.27 million, payable on Sept 20. This brings its dividend for the year to six sen per share. It paid 1.5 sen dividend last year.

PMB Technology Bhd's net profit rose 49.7% to RM2.42 million in its second quarter ended June 30, 2016 (2QFY16), compared with RM1.62 million a year ago, on lower operating expenses and finance costs.

Its revenue, however, fell 15.7% to RM94.6 million, from RM112.1 million, as a result of lower contribution from its construction and fabrication segment.

The group declared a second interim single tier dividend of one sen or 2% per share for the financial year ending Dec 31, 2016, which will be paid on Sept 20.

In its six-month period ended June 30, 2016 (1HFY16), net profit grew 43.2% to RM4.81 million, from RM3.36 million in the corresponding period last year.

Dagang NeXchange Bhd (DNex) said second quarter net profit rose nearly 23-fold to RM89.5 million, from RM3.91 million a year ago, thanks to inclusion of the RM85.3 million share of profit from its 30% associate company, Ping Petroleum Ltd.

Revenue for the quarter ended June 30, 2016 (2QFY16) more than doubled to RM47.4 million, from RM22.6 million in 2QFY15, helped by progressive billing to the transport ministry on the Vehicle Entry Permit and Road Charges (VEP & RC) system project.

For the first half of financial year 2016 (1HFY16), net profit jumped by more than 20 times to RM94.9 million, from RM4.38 million in 1HFY15; while revenue rose 66.7% to RM74.3 million, from RM44.6 million.

In a media release, the group said e-commerce services for trade facilitation continued to be the main contributor to its revenue.

TAHPS Group Bhd's first quarter net profit fell 13.7% to RM1.9 million or 2.54 sen per share, from RM2.2 million or 2.94 sen per share a year ago, due mainly to higher development costs in its property division.

Revenue for the first quarter ended June 30, 2016 (1QFY17), however, rose 39.5% to RM15.94 million, from RM11.42 million in 1QFY16, the group said in a bourse filing.

Revenue for the group's property development segment rose 45.6% to RM13.6 million during the quarter, thanks mainly to an increase in construction progress billing of its ongoing projects. However, the pre-tax profit for the segment was down 42.3% at RM1.9 million.

MMS Ventures Bhd's net profit for the second quarter ended June 30, 2016 (2QFY16) jumped 59.9% to RM5.71 million, from RM3.57 million in the same quarter last year, thanks to a 75.5% rise in revenue.

Quarterly revenue stood at RM20.07 million, compared with RM11.43 million in 2QFY15, its bourse filing today showed. MMS Ventures's board of directors declared a dividend of one sen for the period, payable on Oct 17.

MMS Ventures said the improvement in revenue was mainly due to higher sales of machines to light-emitting diode (LED) manufacturers, especially those from the smart devices and automotive industry.

"Newly-acquired customers during the quarter have also contributed to this remarkable increase during the quarter," the group said. It is involved not only in the design and manufacture of LED, but also in semiconductor industrial automation systems and machinery.

MMS Ventures net profit for the cumulative six month ended June 30, 2016 (1HFY16) was at RM5.49 million, up 5% from RM5.23 million last year, due to fair value adjustments made on other investments and the weakened foreign exchange rate for the U.S. dollar against the ringgit during the period.

Malaysia Marine and Heavy Engineering Holdings Bhd (MHB) and Terengganu state government-linked corporation Eastern Pacific Industrial Corp Bhd (EPIC) have formed a joint venture (JV) to provide world-class repair services of marine vessels such as dry docking repair, refit, refurbishment, maintenance and technical solutions at the ship repair facilities located in Kemaman, Terengganu.

In a statement today, the two companies said MHB, via Malaysia Marine and Heavy Engineering Sdn Bhd (MMHE), will hold a controlling 70% stake in MMHE EPIC Marine & Services Sdn Bhd, while EPIC will own the remaining 30% stake.

The JV company will have a combination of MMHE's existing expertise in marine and oil and gas (O&G) services and EPIC's integrated facilities in Kemaman.

To support the JV company's business, MMHE and EPIC have acquired a 5,000-tonne floating dock from South Korea's Yeisu Ocean Co Ltd, which was completed on July 19 and delivered to Kemaman on July 30.

Higher production and operating costs, together with weaker ringgit, dragged down White Horse Bhd's net profit for the second quarter ended June 30, 2016 (2QFY16) by 75.3%.

It posted 2QFY16 net profit of RM3.98 million or 1.73 sen per share, as compared to RM16.09 million or 7.02 sen per share in the same quarter a year earlier.

This was despite a marginal 0.5% improvement in revenue to RM185.77 million, from RM184.87 million previously.

For the first half ended June 30, 2016 (1HFY16), its net profit fell 35.9% to RM21.25 million or 9.26 sen per share, from RM33.16 million or 14.46 sen per share in the previous corresponding period.

Cumulative revenue weakened by 8.4% to RM355.5 million, versus RM388 million a year ago.

Intense competition and higher cost of doing business resulted in weaker margins for Marco Holdings Bhd, a Casio brand timepiece and calculator distributor.

As a result, its net profit fell 23.3% to RM3.88 million in the second quarter ended June 30, 2016 (2QFY16), from RM5.06 million in the same period last year, though it managed to grow its revenue by 27.5% to RM45.49 million, from RM35.68 million, thanks to the group's regional business.

From a cumulative perspective, Marco's net profit for the first half of FY16 (1HFY16) fell by 25.4% to RM7.64 million, from RM10.24 million in 1HFY15, while revenue grew 15.4% to RM94.19 million, from RM81.6 million.

Chemical Company of Malaysia Bhd (CCM) has drawn down a term loan of RM100 million from Affin Islamic Bank Bhd to refinance its borrowings of non-rated sukuk musyarakah, maturing on Aug 25.

After careful deliberation, CCM's board was of the opinion that the term loan drawdown was in the best interest of the group in managing its cashflow and liquidity, according to its filing to Bursa Malaysia today.

The five-year term loan, which was for its RM100 million borrowings, will expire on Aug 16, 2021, said the group that was incorporated in 1963.

V.S. Industry Bhd has secured a US$82 million contract for the manufacturing of new model of coffee brewer from one of its existing key customers.

In a filing with Bursa Malaysia today, the electronics manufacturing services provider said the contract is for a period of three years.

This is the first full own brand manufacturing (ODM) model of coffee brewer by V.S. Industry for the customer, and the customer has granted exclusive manufacturing rights to the group for the first 18 months.

Under the deal, V.S. Industry will design and manufacture the new model of coffee brewer, while the customer undertakes to purchase a certain minimum quantity over that next three years, amounting to US$82 million.

Malayan Banking Bhd's (Maybank) investment banking arm, Maybank Kim Eng and Mizuho Securities Co formed a partnership to grow their equity brokerage businesses in Asia.

In a statement today, Maybank Kim Eng said the partnership will offer the group access to Mizuho's institutional clients in Japan. The collaboration will see Mizuho's institutional clients gaining access to Maybank Kim Eng's research reports and corporate services.

"Asean is one of the fastest growing regions in the world and the partnership will benefit Mizuho's institutional clients in Japan, as they will gain from Maybank, Kim Eng's deep and wide knowledge of the region, as well as access to the investment opportunities in the Asean markets.

"Maybank Kim Eng, on the other hand, will be able to leverage Mizuho's strong franchise in the Japanese domestic market," Maybank Kim Eng said.