PRG, Hiap Teck, Lion Corp, Berjaya Media, ConnectCounty, Sunway REIT, Crescendo, Tanjung Offshore, and NPC Resources

KUALA LUMPUR (Sept 29): Based on corporate announcements and news flow today, companies that may be in focus tomorrow (Sept 30) could include the following: PRG, Hiap Teck, Lion Corp, Berjaya Media, ConnectCounty, Sunway REIT, Crescendo, Tanjung Offshore, and NPC Resources.

PRG Holdings Bhd, which is involved in manufacturing, property development and construction businesses, is considering listing its manufacturing business on the Growth Enterprise Market of the Stock Exchange of Hong Kong Ltd (HKEX).

"The actual details of the proposed listing have yet to be determined, but it is envisaged that the group’s manufacturing division will continue to remain as a subsidiary of PRG, upon completion of the proposed listing," it said in a filing with Bursa Malaysia today.

PRG said the reason for the listing is to allow the group and its manufacturing business to have separate fund raising platforms in the debt and equity capital markets, which will increase financing flexibility for both groups.

Hiap Teck Venture Bhd posted its second consecutive quarter in the black, recording a net profit of RM7.88 million in the fourth quarter ended July 31, 2016 (4QFY16). This compared with a net loss of RM68.66 million a year ago.

In a filing with Bursa Malaysia today, the steel maker attributed the better quarterly earnings to improved margins and the provision for impairment of investment in a jointly-controlled entity of RM55 million in 4QFY15.

Revenue fell 17% to RM260.54 million, from RM314 million in 4QFY15, primarily due to lower sales volume from both the trading and manufacturing divisions.

Hiap Teck is proposing a final dividend of 0.3 sen per share for the financial year ended July 31, 2016 (FY16), subject to shareholders’ approval at the forthcoming annual general meeting.

For the full year (FY16), Hiap Teck narrowed its net loss by 46% to RM41.56 million from RM77.09 million in FY15.

Revenue came in 9.5% lower at RM1.14 billion in FY16, from RM1.26 billion in FY15.

Shares of Lion Corp Bhd will be removed from the Main Market of Bursa Malaysia on Oct 12, as the stock regulator declined to grant further extension to the steel maker to submit its regularisation plan.

According to its bourse filing today, Lion Corp said Bursa Malaysia has rejected its application for a further extension of time to submit its regularisation plan.

On Sept 1, the group was seeking an extension of four months up to Nov 30 this year, to submit its regularisation plan. Bursa Malaysia has earlier granted it up to July 31 to submit the plan.

Hence, it has failed to comply with its obligation to regularise its condition to submit its regularisation plan and obtain Bursa Securities’ approval of its regularisation plan within the stipulated timeframe.

As a result, trading in its securities will be suspended with effect from Oct 10, it said in the filing.

Berjaya Media Bhd, which publishes daily newspaper The Sun, saw its net loss widen sharply to RM2.12 million or 0.9 sen per share in the first quarter ended July 31, 2016 (1QFY17), compared with a net loss of RM1 million or 0.43 sen per share a year ago.

In a bourse filing, Berjaya Media said weaker earnings performance was mainly due to lower revenue, coupled with impairment loss incurred on certain quoted investments.

Berjaya Media’s revenue has declined by 9.8% to RM10.86 million in 1QFY17, down from RM12.04 million a year earlier. This was attributed to lower advertising income recorded by its principal operating subsidiary, Sun Media Corporation Sdn Bhd.

Berjaya Media said the group is currently operating in a difficult business environment and will continue to focus on improving its advertising revenue.

Chang Choon Ming, the single largest shareholder of AE Multi Holdings Bhd, has directly emerged in interconnect and cable solutions provider, ConnectCounty Holdings Bhd.

According to Bursa filings, Chang has bought 8.2 million shares from the open market last Friday (Sept 23). He now owns some 19 million shares or a 7.68% direct stake in the company. While the transaction price was not revealed, it is worth noting that the shares of ConnectCounty closed at 12 sen on the same day.

The Edge Financial Daily had on Tuesday reported that Chang, who has already made a mark in the market with some saying he could be the “next big market mover”, is linked to ACE Holdings Bhd, whose subsidiary ACE Credit (M) Sdn Bhd, emerged as a substantial shareholder of ConnectCounty on Sept 15.

Sunway REIT Management Sdn Bhd’s non-independent non-executive chairman Tan Sri Dr Jeffrey Cheah Fook Ling will relinquish his position effective tomorrow, as part of efforts to enhance board independence.

Cheah, 71, who is founder and executive chairman of Sunway Group, was appointed to the board of directors of Sunway REIT Management on March 24, 2010.

In a statement today, the manager of Sunway Real Estate Investment Trust (Sunway REIT) said its senior independent non-executive director Tan Sri Ahmad Mohd Don will replace Cheah as independent non-executive chairman, starting Oct 1. 

Crescendo Corp Bhd saw its net profit for the second quarter ended July 31, 2016 (2QFY17) jump almost 14 times to RM44.41 million from a year ago, thanks to a one-off fair value change of investment properties, amounting to RM41.4 million.

Without the fair value gain, net profit was actually almost unchanged at RM3.01 million, compared with RM3.087 million a year ago.

Revenue rose 20.4% to RM49.22 million, from RM40.89 million a year ago, due to higher properties sales. The property developer declared an interim dividend of two sen per share, payable on Nov 21. 

For the cumulative six months ended July 31, 2016 (1HFY17), its net profit surged nearly four times to RM50.86 million, while revenue rose marginally by 0.9% to RM97.51 million, from RM96.63 million.

Tanjung Offshore Bhd is proposing a par value reduction, involving the cancellation of 40 sen of the par value of its current shares of 50 sen, to set off against its accumulated losses.

According to its bourse filing today, it has an accumulated loss of RM55.46 million as of June 30, 2016, while the par value reduction exercise will give rise to a credit of approximately RM152.62 million.

The remaining credit, it said, shall be credited to the capital reserves of the company, which may be utilised in such manner as the board deems fit and as permitted by relevant and applicable laws.

As at the latest practicable date, Tanjung Offshore has an issued and paid-up share capital of RM190.77 million, comprising of 381.55 million shares.

Sabah-based oil palm plantations company NPC Resources Bhd is proposing to dispose a palm oil mill and land in Sabah for a total of RM47.5 million to Budaya Potensi Sdn Bhd.

According to NPC’s filing to the exchange today, the disposal would lead to a total gain of RM20.6 million for the group.

The land measures 75.86 ha (187.4 acres), with 40.06 acres used for oil palm cultivation and 35.38 acres used for the palm oil mill, while the remaining 0.42 acres consists of infrastructures and slopes.

NPC said the group decided to dispose of the mill as it is the least performing mill owned by the group. This is because 95% of the mill’s fresh fruit bunches (FFB) output depends on external FFB suppliers.

In addition, the said land only contributed less than 1% of total crops for the group, which has insignificant impact to its performance, NPC said.

Post completion of the proposed disposals, NPC still owns approximately 11,714 hectares of plantation lands in Sabah, approximately 45,364 hectares in Indonesia, and two palm oil mills.