Boustead, The Store, SLP Resources, Reach Energy, MSC, BHS Industries and TNB

KUALA LUMPUR (Nov 4): Based on corporate announcements and news flow today, stocks in focus on Monday (Nov 7) may include: Boustead Holdings Bhd, The Store Corp Bhd, SLP Resources Bhd, Reach Energy Bhd, Malaysia Smelting Corp Bhd (MSC), BHS Industries Bhd and Tenaga Nasional Bhd (TNB).

Boustead Holdings Bhd has received a non-binding letter of intent from the government for the supply of four vessels to the Royal Malaysian Navy.

The vessels are littoral mission ships, said Boustead In a bourse filing,

“The company will make further necessary announcements on the project in due course,” it said.

Nirvana Asia Ltd founder Tan Sri Kong Hon Kong, who emerged as a substantial shareholder of The Store Corp Bhd on Nov 1, has increased his direct stake to 13.88% in the supermarket operator.

In a filing with Bursa Malaysia, The Store said Kong has further increased his stake to 13.88%, after acquiring 3.33 million shares via the open market.

This came shortly after he became a substantial shareholder on Nov 1, with a purchase of 6.18 million shares or 9.015% stake from the open market.

According to Bloomberg data, The Store saw a total of 3.33 million shares or 4.87% equity stake, worth RM10.67 million or RM3.20 per share, traded off market today.

The transactions, done in two blocks, comprised 1.43 million shares and 1.9 million shares respectively. The stock was untraded on Nov 2.

On Tuesday, the department store operator saw a total of 6.18 million shares or a 9.01% equity stake, worth RM19.77 million or RM3.20 per share, crossed off market.

SLP Resources Bhd's net profit fell 33.9% to RM6.2 million in the third quarter ending on Sept 30, 2016, from RM9.39 million share a year ago.

Revenue also declined 4% to RM40.9 million, from RM42.6 million, due to a decline in its domestic sale of polymer products, in line with slower domestic demand and stricter credit control on domestic customers.

The group announced a 1.5 sen second single-tier interim dividend for the period, payable on Jan 6.

For the nine-month period, net profit dropped by 14.3% to RM17.3 million, from RM20.3 million. However, revenue increased by 0.9% to RM127.8 million, from RM126.6 million.

Reach Energy Bhd has adjourned its extraordinary general meeting (EGM) for as much as 30 days, after a group of shareholders voted against its proposed qualifying acquisition (QA) of a 60% stake in an oilfield in Kazakhstan.

The adjournment of the EGM today came after those shareholders, which collectively hold some 208 million shares in the company, voted by proxy — via the group's chairman Izlan Izhab — against the planned buy.

The EGM was to decide on whether to allow Reach Energy to proceed with its maiden acquisition of a 60% stake in Palaeontol BV, the sole interest holder of Kazakhstan's Emir-Oil LLP, for US$154.9 million (RM638.2 million).

The conditional sales and purchase agreement for the QA, inked in March, would lapse on Nov 10.

Reach Energy needed 75% of its shareholders to vote yes, in order to pass the QA.

The SPAC's total issued and paid up capital amounted to 1.28 billion shares, so a rough calculation indicate the shareholders who voted against this, hold about 16% in the company.

Malaysia Smelting Corp Bhd (MSC)’s  third quarter net profit fell 15.29% to RM17.3 million or 17.3 sen a share, from RM20.42 million or 20.4 sen a share a year earlier, due to a decline in revenue and a lower favourable valuation adjustment on tin inventory.

Revenue for the quarter ended Sept 30, 2016 (3QFY16) dropped 15.87% to RM323.13 million, from RM384.1 million in 3QFY15.

For the first nine months of FY16, MSC’s net profit jumped by more than 12 times to RM31.95 million or 32 sen a share, from RM2.63 million or 2.6 sen a share in the previous corresponding period, while its revenue rose 1.59% to RM1.13 billion, from RM 1.11 billion previously.

BHS Industries Bhd plans to diversify its business to include the construction, development and management of Green Technology Park Pekan and other construction and property development activities.

In the filing with Bursa Malaysia today, BHS said the proposed diversification will reduce its risk of dependency on its existing printing business, noting its printing business has been facing a slide in profitability, due to the lower print orders received.

The Pahang government had on Oct 21, granted BHS' wholly-owned subsidiary, Ultimate Ivory Sdn Bhd, approval for 375 acres of land in Pekan for the development of Green Technology Park Pekan.

On Nov 1, BHS had entered into a memorandum of agreement with China Nuclear Industry Huaxing Construction Co Ltd to jointly develop and manage Phase 2 and Phase 3 of  the technology park and other ancillary facilities.

Utilities giant Tenaga Nasional Bhd said it has completed the acquisition of a 30% stake in Indian power company, GMR Energy Ltd, for US$300 million, pursuant to the definitive agreements executed on May 9.

The investment in GMR will be made via TNB’s wholly-owned subsidiary, Power and Energy International (Mauritius) Ltd, TNB said in a statement today.

It said the completion of the transaction marks its entry into India’s rapidly-expanding power sector, with demand for electricity growing between 6% to 7% compounded annual growth rate, adding 20 gigawatt of new capacity annually, an amount equivalent to Malaysia’s current installed capacity.

TNB anticipates the transaction, which will be financed by a combination of internal funds and external debt, to be earnings accretive by financial year ending Aug 31, 2018.