Eita Resources, Astro, Willowglen, EKA Noodles, Maypak, LBS Bina and Melewar




KUALA LUMPUR (Sept 14): Based on corporate announcements and news flow today, companies that may be in focus on Thursday (Sept 15) could include: Eita Resources, Astro, Willowglen, EKA Noodles, Maypak, LBS Bina and Melewar.

Elevator manufacturer Eita Resources Bhd has bagged several projects worth RM15.2 million to supply and install 18 units of lifts.

In a bourse filing, Eita said its wholly-owned subsidiary Eita Elevator (M) Sdn Bhd had received a letter of award (LoA) as the 'nominated sub-contractor' from Kerjaya Prospek (M) Sdn Bhd to supply, deliver, install, test and commission the lift service works for serviced apartments and office suites development project in Kuala Lumpur, for Tetuan Nusmetro Property Sdn Bhd.

The company said the subcontracts are expected to commence anytime from the date of the official receipt of the LoA on Sept 13, and are expected to be completed by Oct 31, 2019.

Astro Malaysia Holdings Bhd, Malaysia's largest pay TV provider, saw its second quarter ended July 31, 2016 (2QFY17) net profit retreat 8.6% year-on-year to RM125.4 million from RM137.2 million, due to a RM63.5 million fall in earnings before interest, taxes, depreciation and amortisation (EBITDA).

EBITDA margin, constricted by the weakening ringgit and lower subscription revenue, declined 6%, said Astro in a bourse filing. This was compounded by higher content costs, particularly from the UEFA European Championship or EURO 2016.

This is despite a growth of 4.33% in the group's revenue in 2QFY17 to RM1.43 billion from RM1.37 billion a year ago, Astro told Bursa Malaysia.

Astro's board declared a second interim dividend of three sen, payable on Oct 13, 2016.

For the first half ended July 31, 2016 (1HFY17), net profit climbed 7.22% to RM327.6 million compared to RM305.5 million a year ago, while revenue gained 3.9% to RM2.8 billion from RM2.7 billion.

Computer-based control systems provider Willowglen MSC Bhd is teaming up with a Singapore information technology firm to expand its current range of security solutions, systems and services.

In a bourse filing, Willowglen said it has entered into a shareholders agreement with Secura Group Ltd, a Singapore Exchange Catalist Board listed entity, for the above purpose.

Under the agreement, both companies will incorporate a joint venture company (JV Co) known as Secura Malaysia Sdn Bhd, with each company holding 50% stake in the JV Co.

Secura Malaysia will provide cyber security, homeland security, security consultancy, security systems integration and other security products and services in the country.

Practice Note 17 (PN17) company EKA Noodles Bhd has obtained a 90-day restraining order from the Penang High Court to prevent further proceedings or actions taken against itself and its eight wholly-owned subsidiaries.

In a filing with Bursa Malaysia, EKA said the order began on Sept 9 and restrains any party, including scheme creditors, from taking actions against the group and its subsidiaries.

Recall that EKA fell under PN17 status on Sept 1 as its shareholders' equity on a consolidated basis is 25% or less than its issued and paid up capital and such shareholders' equity is less than RM40 million in the company's unaudited interim financial results for the second quarter ended June 30, 2016.

As a result, the group was unable to comply with its repayment obligations.

The restraining order was applied for to facilitate the group in convening a meeting with its creditors to consider approving, with or without any alteration or modification, a proposed scheme of arrangement and compromise.

Trading in plastic packaging maker Malaysia Packaging Industry Bhd (Maypak) will be suspended tomorrow (Sept 15), pending a material announcement.

In a bourse filing, Maypak said it has requested the suspension, pending a material transaction involving a major shareholder of the company.

In end-July this year, Taisei Lamick Co Ltd had purchased a 54.95% stake in Maypak from Toyo Seikan Co Ltd for RM3.835 million or 16.6 sen per share, making it the largest shareholder in the group, and triggering a mandatory general offer.

Property developer LBS Bina Group Bhd announced plans to streamline its construction business under its 51.18% subsidiary ML Global Bhd (MGB) via the disposal of its indirect 75% equity interest in MITC Engineering Sdn Bhd (MITCE) to MGB for a consideration of RM225 million.

In a filling to Bursa Malaysia, LBS Bina said the consideration will be satisfied with the allotment and issuance of 200.82 million ordinary shares of 50 sen each in MGB to be issued at a price of 67 sen per share to its indirect wholly-owned subsidiary MITC Sdn Bhd.

MITC holds the 75% interest in MITCE.

In addition, 135 million new irredeemable convertible preference shares of 50 sen each in MGB will be issued at the price of 67 sen per share to MITC.

In conjunction with the planned disposal, MITC will undertake a proposed placement of up to 45 million shares to third party investors who will be identified later.

Melewar Industrial Group Bhd (MIG) said the unusual market activity (UMA) in the trading of its shares may be due to a rally in the stock price of its subsidiary, Mycron Steel Bhd.

"At MIG company level, its 71.51% controlling share holdings in Mycron Steel has witnessed a sharp increase in market price and volume recently," said MIG. "Whilst we cannot be certain that the aforementioned is the cause of MIG's rise in share price and volume, it does offer a possible connection."

Replying to an UMA query from Bursa Malaysia, MIG said another reason for the rise in its share price and volume could be its better financial performance in its fourth quarter ended June 30, 2016 (4QFY16).

MIG reported a net profit of RM8.13 million for the quarter, against a net loss of RM29.55 million for 4QFY15.

Another possible reason cited by MIG is the revaluation exercise undertaken by the group on its land, buildings, plant, machinery and electrical installation.

http://www.theedgemarkets.com/my/article/eita-resources-astro-willowglen-eka-noodles-maypak-lbs-bina-and-melewar