KUALA LUMPUR (Jan 5): Based on corporate announcements and news flow today, companies that may be in focus tomorrow (Friday, Jan 6) could include: Top Glove Corp Bhd, My EG Services Bhd, LFE Corp Bhd, LBS Bina Group Bhd, Amway (M) Holdings Bhd, Perisai Petroleum Teknologi Bhd, Dancomech Holdings Bhd, Enra Group Bhd and O&C Resources Bhd.
Top Glove Corp Bhd is considering raising the average selling price (ASP) of its rubber gloves in the three months until Feb 28, as uncertainties in the prices of raw material and the weakening of the US dollar negatively impact its production costs.
According to its executive director Lim Cheong Guan, a potential increase in the ASP is possible, though it depends heavily on how much further the local note would weaken against the greenback, and if raw material prices would go up in the coming quarters.
Top Glove saw the average natural rubber latex price rise 12.6% to RM4.46 per kg in the first financial quarter ended Nov 30, 2016 (1QFY17), versus RM3.96 per kg a year ago. As at Dec 30, 2016, the price of natural rubber latex was at RM6.46 per kg.
Lim said the group doesn’t have a fixed timeline when a price increase would happen, but considering the current price trend of the raw material, an increase in 2QFY17 is likely.
My EG Services Bhd (MyEG) has secured a RM553.85 million contract to provide online renewal of temporary employment pass for foreign workers for the Immigration Department.
In a bourse filing today, MyEG said the project is for five years, from May 23, 2015 to May 22, 2020. It received a letter of acceptance from the home affairs ministry today for the deal.
“An agreement to formalise the acceptance of the project will be signed and announced by the company in due course,” it added.
Engineering firm LFE Corp Bhd will be exiting its Practice Note 17 (PN17) status tomorrow.
According to its bourse filing today, it will no longer be classified as a PN17 company after it has regularised its financial condition and level of operations, as well as not triggering any of the PN17 criteria under the Main Market listing requirements.
LFE Corp slipped into PN17 status on Oct 1, 2012 after its shareholders' equity for the financial year ended July 31, 2012 was less than 25% of its issued capital.
Fresh from having met its RM1.2 billion sales target for 2016, LBS Bina Group Bhd is targeting to achieve a higher target of RM1.5 billion sales for its financial year ending Dec 31, 2017 (FY17), which it believes will be driven by planned launches worth some RM2.3 billion in gross development value for the year, and unbilled sales of RM1.48 billion as at Dec 28, 2016.
Its 12 planned launches this year comprise 92% residential developments, with the remaining 8% being commercial ones. They are spread out over the Klang Valley, Pahang and Johor.
Amway (M) Holdings Bhd expects the weakening ringgit against the US dollar to pressure the multilevel company's profit margin as 90% of its products are imported, predominantly from the US.
Though the company hedges its currency exposure annually, Amway executive director Mike Duong said margin compression from the weak local note is still unavoidable but declined to say how much has been hedged and at what rate.
A weaker ringgit makes Amway's imported products more expensive. Last year, Amway increased its product prices by about 9.3%, after the last hike in 2013.
Over the past one year, the ringgit traded between 3.8442 and 4.5002 against the US dollar. It settled at 4.4862 on Dec 30, 2016 before continuing to slide on Jan 3 to close at 4.4938.
Perisai Petroleum Teknologi Bhd has received an extension from the Companies Commission of Malaysia (SSM) to hold its annual general meeting (AGM).
The company announced that it had received an approval letter dated Dec 28, 2016 from SSM approving an extension for the company to hold its 2017 AGM, and to table its audited financial statements for the 18-month period ending June 30, 2017 latest by Dec 29, 2017.
The group had announced on Nov 29 last year that it was changing its financial year end from Dec 31, 2016 to June 30, 2017. The company’s last held AGM was on June 24 last year.
Dancomech Holdings Bhd is venturing into the pump manufacturing business after proposing to acquire a piece of leasehold land measuring 11,838 sq m along with a single-storey industrial building erected on it in Perak for RM4.25 million cash.
In a filing with Bursa Malaysia today, the group said its unit Dancomech Properties Sdn Bhd has inked a sale and purchase agreement (SPA) with Chun Khong Engineering Works Sdn Bhd.
The property has a 99-year leasehold, expiring on May 23, 2067. According to the group, the land was acquired in 1968 and the industrial building was constructed in phases over the years since 1968 and underwent a major refurbishment in 2002.
It said the agreement will be subject to fulfilment or satisfaction of a condition precedent stipulated in the SPA within six months from the date of the SPA.
Enra Group Bhd via an indirect subsidiary has formed a joint venture (JV) with a unit of Australia's Icon Engineering Pty Ltd to provide low-cost solutions to the upstream oil and gas industry within and outside Malaysia.
Enra Group said its indirect wholly-owned subsidiary Enra Oil & Gas Services Sdn Bhd (EOGS) and Icon Oilfield Solutions Sdn Bhd have entered into a shareholders agreement to jointly establish a JV company, to be known as Enra Icon Sdn Bhd.
EOGS will have a 70% stake in the JV, while Icon Oilfield will hold the remaining 30%.
"The intended activities of the JV company are expected to contribute positively to the profitability and growth of the company in the future," it said.
O&C Resources Bhd (OCR) will begin discussions with Universiti Sains Islam Malaysia (USIM) to jointly build student accommodation for the latter.
In a filing with Bursa Malaysia today, OCR said its 80%-owned subsidiary Visi Anggun Properties Sdn Bhd (VAPSB) has signed a Memorandum of Understanding (MoU) with USIM for further discussion and arriving at the details of the joint-collaboration to plan, build, design and construct and operation of student accommodation.
OCR said the MoU will pave way for the two parties to establish a basis of co-operation and collaboration in building two in-campus students’ accommodation by way of build-operate-transfer concept for 4,200 students.
The validity of the MoU will be binding for one year from today. It may be extended for a further period as agreed by both parties.
http://www.theedgemarkets.com/my/article/top-glove-myeg-lfe-lbs-bina-amway-perisai-petroleum-dancomech-enra-and-ocr
