KUALA LUMPUR (Nov 7): Based on corporate announcements and news flow today, companies in focus on Tuesday (Nov 8) may include: PIE Industrial, BHS Industries, New Hoong Fatt, Metronic Global, MNC Wireless, Scicom, Maypak and Axiata.
PIE Industrial Bhd's net profit for the third quarter ended Sept 30, 2016 (3QFY16) fell 67.1% to RM4.6 million from RM13.97 million a year earlier mainly due to lower revenue and lower margins of products mix.
Revenue for the quarter declined 14.7% to RM130.2 million from RM150.5 million previously on reduced demand from existing customers for electronics manufacturing activities and raw wire and cable products, but this was partly mitigated by higher revenue from trading activities.
In a filing to Bursa Malaysia, the group said net profit for the first nine months of the financial year (9MFY16) fell 62% to RM12.83 million from RM33.76 million recorded in 9MFY15. Revenue slipped 3.55% to RM385.8 million from RM399.96 million.
BHS Industries Bhd said it 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 a bourse filing, 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's 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 Phases 2 and 3 of the technology park and other ancillary facilities.
New Hoong Fatt Holdings Bhd's net profit jumped 22.4% to RM6.41 million for the third quarter ended Sept 30, 2016 (3QFY16) from RM5.24 million a year ago, on fair value gain on its investment properties amounting to RM900,000 recognised in the current quarter under review.
Revenue rose 2.5% to RM54.48 million in 3QFY16 from RM53.17 million in 3QFY15, mainly due to higher demand in the local market.
The automotive replacement parts manufacturer also declared an interim dividend of 3 sen per share amounting to RM2.25 million for the financial year ending Dec 31, 2016 (FY16), payable on Dec 16.
For the cumulative nine months (9MFY16), net profit increased 38.9% to RM20.5 million from RM14.76 million in 9MFY15, mainly due to higher revenue, favourable impact from foreign exchange rate and fair value gain on the investment properties.
Revenue for 9MFY16 rose 10.5% to RM169.08 million from RM153.03 million in 9MFY15, on higher demand in the local and overseas markets as well as favourable impact from foreign exchange rate.
Metronic Global Bhd has revoked the special notice served to loss-making MNC Wireless Bhd to convene an extraordinary general meeting (EGM) for the removal of five directors.
Based on latest Bursa Malaysia filings, Metronic Global held an 18.75% direct stake in MNC Wireless as at Oct 5, 2016.
On Oct 24, Metronic Global announced that the company and one other shareholder of MNC Wireless had given special notice to the latter on Oct 21 of their intention to move resolutions and convene an EGM to remove five of its directors.
They sought to remove MNC Wireless chairman Wong Kok Seong, chief executive officer and executive director Christopher Tan Chor How, executive director Pang Siaw Sian, independent non-executive director Thu Soon Shien and non-independent non-executive director Kua Khai Shyuan, and replace them with Nga Koo Koy, Eric Boon Chuan Kit, Ng Wee Peng, Tan Kian Hong and Raja Aida Jasmin Raja Shahrome.
Recall that this was after Metronic Global filed an ex parte injunction order on Oct 7 against MNC Wireless shareholder Datuk Seri Pang Chow Huat, Wong, Siaw Sian, Thu, Tan and MNC Wireless, restraining them from taking any steps to implement a proposed right issue, an employee share option scheme and to increase the authorised share capital of the company, among others.
The hearing of the injunction was, however, dismissed by the Kuala Lumpur High Court on Oct 12, 2016.
Scicom (MSC) Bhd's net profit for the first quarter ended Sept 30, 2016 (1QFY17) increased by 23.6% to RM12 million from RM9.72 million due primarily to an increase in billings for outsourcing projects.
The group's revenue grew by 16.3% to RM52.1 million in 1QFY17 from RM44.8 million a year ago mainly due to a rise in revenue in outsourcing business.
Scicom is on track to be the largest business process outsourcing (BPO) provider in Sri Lanka by March 2017, said group executive director and chief executive officer Datuk Leo Ariyanayakam.
Scicom recently became the call centre provider for SriLankan Airlines, according to reports by Sri Lankan media. In the financial year ended June 30, 2016 (FY16), 0.7% of the group's revenue came from Sri Lanka while the biggest contributors of revenue by country were Malaysia (55.4%) and Philippines (32.1%).
In addition to strengthening its BPO presence in Sri Lanka, Scicom also expressed interest in moving into e-government services in Nepal, Cambodia and Laos.
Mercury Securities Sdn Bhd, the independent adviser to the 54.95% Malaysia Packaging Industry Bhd (Maypak) takeover offer by Taisei Lamick Co Ltd, has recommended that shareholders accept the revised offer of RM1 although it deemed the offer not fair.
On Oct 17, Mercury had advised shareholders to reject the takeover offer priced at 65 sen per share as it was a significant discount of 63.07% over the estimated revalued net asset value (RNAV) per Maypak share of RM1.76.
On Oct 31, Taisei Lamick revised the offer price to RM1, which would remain open for acceptance till 5pm on Nov 15.
In a supplemental independent advice circular filed via Bursa Malaysia today, Mercury said the revised offer price represents a significant premium ranging from 99.96% to 122.22% to the closing market price or volume weighted average market price of the Maypak shares as at the sale and purchase agreement's last trading date of July 28, 2016.
Mercury reiterated the shares have never traded at or higher than the revised offer price for the past 10 years up to Oct 31, the latest practicable date prior to the issuance of the circular, and that it represents a lower discount of 43.18% over the estimated RNAV per share of RM1.76.
Axiata Group Bhd's wholly-owned subsidiary, edotco Group Sdn Bhd, has exercised a call option to increase its effective holdings in edotco Myanmar Ltd by to 87.5% from 75%.
The additional 12.5% stake will cost Axiata US$35 million (RM147.4 million) and will be settled by cash.
This values edotco Myanmar at US$280 million, 68.7% higher than the US$166.7 million implied valuation of the company when Axiata paid US$125 million for a 75% stake almost one year earlier.