Sime Darby, IGB Corp, Daya Materials, Supermax, Zecon, HSS Engineers, ConnectCounty, Tomei, YSP Southeast Asia, PetDag, Salutica, Tower REIT, Ann Joo and SCH Group

KUALA LUMPUR (Aug 15): Based on corporate announcements and news flow today, companies that might be in focus tomorrow (Tuesday, Aug 16) could include: Sime Darby, IGB Corp, Daya Materials, Supermax Corp, Zecon, HSS Engineers, ConnectCounty Holdings, Tomei Consolidated, YSP Southeast Asia Holdings (YSPSAH), Petronas Dagangan (PetDag), Salutica, Tower REIT, Ann Joo Resources and SCH Group.

Sime Darby Bhd has initiated a reverse takeover (RTO) of Japan’s Saizen Real Estate Investment Trust (REIT), under which it will be injecting several of its industrial properties in Australia into the REIT, in exchange for a a certain amount of units in the REIT and cash.

The conglomerate, via its indirect wholly-owned unit Sime Darby Property Singapore Ltd (Sime Darby Prop Singapore), will also be taking up an 80% stake in Japan Residential Assets Manager Ltd (JRAM), the manager of Saizen REIT.

The injection of the properties and the JRAM acquisition are inter-conditional, said Sime Darby in a bourse filing today.

Its indirect wholly-owned subsidiaires — Hastings Deering (Australia) Ltd (HDAL) and Sime Darby Prop Singapore — have inked a framework agreement today with JRAM for the sale of certain industrial properties in Australia to Saizen REIT.

IGB Corp Bhd announced a proposed disposal of Renaissance Kuala Lumpur Hotel (Renaissance KL) by Great Union Properties Sdn Bhd, a wholly-owned subsidiary of IGB, to Ventura International Sdn Bhd for RM765 million.

The disposal is as a going concern free from encumbrance and liabilities, with all assets and items used in connection with the operations of the hotel business that are owned by Great Union and are located at Renaissance KL as at the completion of the sale and purchase agreement (SPA), including all buildings, structures, plant, machinery and equipment, and fitting, furnishings and fixtures thereon, together with the business of the hotel and all activities related thereto, according to IGB's filing with Bursa Malaysia.

"The divestment represents an attractive opportunity for the Group to unlock business assets at a favourable price. IGB intends to utilise the proceeds for working capital and to support its continued growth for suitable acquisitions or investments, when such opportunity or opportunities arise," read the filing today.

Daya Materials Bhd has bagged a three-year contract from Schlumberger Ltd, the world's largest oilfield services company, to provide specialised well services in Saudi Arabia, starting from the third quarter of this year.

In a filing with Bursa Malaysia today, Daya Materials said its subsidiary, Daya Maxflo Sdn Bhd, was awarded the contract from Schlumberger. The value of the deal was not disclosed.

Daya Maxflo offers its services throughout Asia and the Middle East, and a strategic partner of many multinational technology providers in the oil and gas industry.

Glove maker Supermax Corp Bhd has clarified that a previous court case involving its 98%-owned contact lens business unit, SuperVision Optimax Sdn Bhd (SVO), has no operational or financial impact at the company and group level.

In a filing with Bursa Malaysia today, Supermax said the Singapore High Court did not grant a permanent injunction to restrain SVO and its employee, Ting Chong Chai, from using spincasting technology.

"In fact, the court ruled that this technology has a limited lifespan and decided that a limited period would be sufficient to meet the claimant's concerns and the court ultimately decided a fair period of five years from the date of the writ. We understand that the injunction period will expire in October 2016," the group said.

Zecon Bhd has signed a heads of agreement (HoA) with PR1MA Corp Malaysia for a proposed residential property development within an estimated 22-hectare (54.8-acre) tract at Sarawak's Salak Land district in Kuching.

In a filing with Bursa Malaysia today, Zecon said its wholly-owned subsidiary, Zecon Land Sdn Bhd (ZLSB), has today signed the HoA with PR1MA Corp's wholly-owned unit, PR1MA Development Sdn Bhd.

HSS Engineers Bhd has bagged a RM41.33 million contract to provide construction supervision services for the Selangor Alignment of the West Coast Expressway.

In a filing with Bursa Malaysia today, HSS Engineers said its associate, HSS Integrated Sdn Bhd (HSSI), had received a letter of appointment from the IJM Construction Sdn Bhd and Kumpulan Europlus Bhd joint venture (JV) to provide construction supervision for the expressway's Section 1 (Banting Interchange-SKVE Interchange), Section 2 (SKVE Interchange-SAE Interchange), Section 6 (Kapar Interchange-Assam Jawa Interchange) and Section 7 (Assam Jawa Interchange-Tg Karang Interchange).

"The contract is expected to be completed within 39 months to 41 months from commencement of construction works. The contract is in addition to HSSI’s existing appointment for the provision of engineering design for West Coast Expressway from Tg. Karang to Banting, and construction supervision for Section 3 and Section 5," it added.

ConnectCounty Holdings Bhd has decided to abandon its latest plan to acquire 51% in Kejuruteraan Asastera Sdn Bhd (KASB), just less than a year after it cancelled its plan to buy over the entire stake in the same company.

Recall in April last year, ConnectCounty had proposed to buy over KASB for RM25 million, and had planned a rights issue to partly fund the purchase. But the purchase was later scrapped a few months later, though no reason was given as to why.

Then on June 30 this year, ConnectCounty revived its proposal to purchase KASB, this time just a 51% stake instead of the entire equity interest. No price tag was specified at the time.

Today, however, ConnectCounty said the heads of agreement (HoA) which it had inked on June 30 with the vendors of the equity stake in KASB for the proposed buy, has lapsed, following the expiry of the exclusivity period yesterday (Aug 14).

Tomei Consolidated Bhd posted a net profit of RM485,000 or 0.35 sen per share for the second quarter ended June 30, 2016 (2QFY16), from a net loss of RM5.34 million or 3.85 sen loss per share a year earlier.

Revenue rose 17% to RM107.14 million, from RM91.78 million in 2QFY15.

"The improved sales have contributed to the current quarter's profitability. In addition, gold price has increased compared to last year, which has resulted in the group enjoying better gross profit margin," said Tomei in its filing with the bourse today.

The group said its retail segment saw a 10% year-on-year increase in revenue to RM79.15 million during the quarter, while the manufacturing and wholesale segment's revenue jumped 39% to RM27.99 million.

For the half-year period (1HFY16), net profit spiked to RM3.88 million, from RM126,000 in 1HFY15, as revenue slid 12% to RM230.38 million, from RM261.41 million.

Pharmaceutical products maker YSP Southeast Asia Holdings Bhd’s (YSPSAH) second quarter net profit grew 99.2% to RM6.8 million or 5.06 sen per share, from RM3.4 million or 2.57 sen a share, on lower cost margin in product mix and favourable unrealised foreign exchange recognised.

In a filing with Bursa Malaysia today, YSPSAH said revenue rose 2.4% to RM51.8 million, from RM50.6 million.

For the first half ended June 30, 2016 (1HFY16), net profit fell 8.3% to RM11.7 or 8.69 sen per share, from RM12.76 million or 9.59 sen per share a year ago. Revenue went up 7.46% to RM118.1 million, from RM110 million.

The group paid an eight sen dividend, comprising final ordinary dividend of 6.5 sen and a special dividend of 1.5 sen, on July 28.

Petronas Dagangan Bhd (PetDag) saw a 21.3% year-on-year decline in net profit to RM214.95 million in the second quarter ended June 30, 2016 (2QFY16), as revenue slipped 17.5% to RM5.33 billion.

It recorded a net profit of RM273.21 million in the same quarter last year, with a revenue of RM6.47 billion, according to its bourse filing today.

The weaker financials notwithstanding, the company declared an interim dividend of 14 sen a share, comparable to the same period last year, to be paid on Sept 9.

Meanwhile, the company attributed the drop in net profit to its weaker retail segment, while the lower revenue was largely a result of a 20% drop in average selling prices during the quarter, despite a 3% gain in sales volume.

"The decrease in average selling price was due to a decrease in Mean of Platts Singapore prices," it noted.

Salutica Bhd’s net profit fell 51.74% to RM7.51 million for the fourth quarter ended June 30, 2016 (4QFY16), from RM15.56 million a year ago, on higher income tax due mainly to certain non-deductible expenses.

Revenue, however, rose 57.6% to RM73.04 million, from RM45.71 million, mainly contributed by Bluetooth headsets.

For the full year ended June 30, 2016 (FY16), Salutica’s net profit fell 11.22% to RM24.33 million, from RM27.41 million.

Revenue rose 25.09% to RM241.83 million, from RM192.52 million.

The group declared a first interim dividend of 0.6 sen per share, amounting to RM2.328 million for FY17.

Tower Real Estate Investment Trust (REIT)'s second quarter net income fell 6.4% to RM5.44 million or 1.94 sen per unit, from RM5.81 million or 2.07 sen per unit a year earlier, due to lower occupancy rate, lower interest income and higher property operating cost.

In a filing with Bursa Malaysia today, Tower REIT said revenue for the second quarter ended June 30, 2016 (2QFY16) dipped 1.4% to RM9.37 million, from RM9.5 million in 2QFY15.

The trust's manager declared an interim income distribution of 3.2 sen per unit amounting to RM8.9 million, representing about 76% of the realised distributable net income for the six months ended June 30, 2016 (1HFY16), payable on Sept 14.

Ann Joo Resources Bhd has returned to the black. It achieved a net profit of RM92.4 million for the second quarter ended June 30, 2016 (2QFY16), compared with a net loss of RM10.85 million in the same period last year, on improved cost structure.

Quarterly revenue improved 17% to RM584.66 million, from RM501.27 million a year earlier, its bourse filing today showed.

The group also declared a special dividend payment of 6 sen per share, in conjunction with the group's 70th anniversary. The dividend will be paid on Oct 28.

The group said improved market sentiment and recovery in steel prices had increased top-line performance for both its manufacturing and trading segments by 18% and 14%, respectively.

SCH Group Bhd has proposed to raise RM20.61 million via a bonus issue of 206.12 million warrants, on the basis of one warrant for every two existing SCH shares held on an entitlement date to be determined later.

In a filing with Bursa Malaysia today, SCH said the board will determine and announce the exercise price at a later date, after it has been fixed.

Assuming the indicative exercise price of the warrants is 10 sen, representing a discount of 47.6% to the theoretical ex-bonus price of SCH shares of 19.08 sen based on the five-day volume weighted average price of SCH shares of 23.62 sen up to Aug 12, the company said it could potentially raise gross proceeds of RM20.61 million.

In order to accommodate the issuance of new SCH shares arising from the exercise of the warrants, it is also proposing to increase its authorised share capital to RM100 million, comprising one billion SCH shares; from RM50 million, comprising 500 million SCH shares currently.