KUALA LUMPUR (Feb 17): Based on corporate announcements and news flow today, companies that may be in focus on Monday (Feb 20) could include the following: DRB-Hicom, Choo Bee, CB Industrial, Amcorp Properties, Protasco, Sterling Progress, Pintaras Jaya and Sumatec.
DRB-Hicom Bhd has taken over Malaysian Resources Corp Bhd's stake in a joint venture firm that was set up to undertake subcontracting works for the new integrated, custom, quarantine and security (ICQS) complex at Bukit Kayu Hitam, Kedah, for RM7 million.
It said the 51% stake buy in Dekad Kaliber from MRCB's wholly-owned unit, MRCB Engineering Sdn Bhd, will give it more control over the development of the ICQS complex.
DRB-Hicom said the buy was undertaken by its indirect wholly-owned unit, HICOM Bhd, which inked the agreement for the purchase today. The purchase was completed on the same day.
The remaining 49% in Dekad Kaliber is now under Hicom Builders Sdn Bhd, a wholly-owned subsidiary of Hicom.
Steel pipe maker Choo Bee Metal Industries Bhd saw a more than eightfold jump in net profit for the fourth quarter ended Dec 31, 2016 (4QFY16) on the back of improved average selling price.
Net profit rose to RM7.48 million or 6.87 sen a share, from RM760,000 or 0.7 sen a share in 4QFY15.
Revenue, however, was down 6% to RM94.07 million from RM100.07 million previously, due to slower market demand for its manufacturing arm, and tepid market conditions for its trading segment in anticipation of favourable government policies to stimulate the economy.
Full-year results for FY16 saw net profit jump 316.75% to RM24.71 million from RM5.93 million in FY15, on improved margins on the back of lower material cost and better average selling prices.
Revenue, however, fell 19.87% to RM369.63 million from RM461.21 million on slower market demand for both its manufacturing and trading divisions.
CB Industrial Product Holding Bhd (CBIP) has bagged two contracts totalling RM67 million from PT Lifere Agro Kapuas, a subsidiary of United Malacca Bhd, for imports of materials and equipment as well as works involving the construction of a new palm oil mill in Kalimantan, Indonesia.
CBIP said its wholly-owned subsidiary PalmitEco Engineering Sdn Bhd has received a letter of acceptance (LOA) from PT Lifere Agro Kapuas to execute and complete the two tasks.
Amcorp Properties Bhd’s third quarter net profit fell 25% on-year as it recorded higher finance costs and taxation, while revenue slid.
Net profit for the three months ended Dec 31, 2016 (3QFY17) came in at RM4.01 million, versus RM5.33 million a year earlier, on the back of a 5% drop in revenue to RM44.52 million from RM46.64 million.
For the cumulative nine months (9MFY17), the property, engineering and infrastructure firm recorded an 87% slump in net profit to RM10.32 million from RM78.75 million a year ago, on weaker performance of its property projects in Malaysia and abroad.
Segmentally, AmProp’s profit from its property business in Malaysia fell 55% to RM5.06 million in 9MFY17 from RM11.36 million previously, while overseas properties' profit shrank 85% to RM11.14 million from RM73.66 million in 9MFY16.
Protasco Bhd has bagged a contract worth RM90.1 million for the routine and periodic maintenance of agricultural roads in Perak.
The two-year contract, which will end on Feb 19, 2019, was awarded by the Perak government to Protasco's subsidiary Empaya Indera Sdn Bhd.
“The contract is expected to contribute positively to the net assets and earnings of the group for the financial year ending Dec 31, 2017,” the group said.
Loss-making Sterling Progress Bhd is venturing into the hotel management business to seek alternate revenue streams and to reduce dependency on its ICT business.
It said it is buying the business rights to the brand of T+ Hotel and Time Capsule Hotel for RM3.5 million from Tandop Hotel Sdn Bhd, which is also providing Sterling Progress a profit guarantee of not less than RM800,000 per annum for five financial years from 2018 to 2022.
The company expects the new hotel management business to contribute positively to its future earnings and improve its financial position.
Piling specialist Pintaras Jaya Bhd’s net profit jumped by three folds to RM11.31 million for its second quarterly results in the financial period ended Dec 31, 2016 (2QFY17), from RM2.53 million in the previous year, due largely to a significant improvement in contribution by its construction division and higher investment income.
Revenue increased by 92% to RM59.77 million, from RM31.21 million a year ago.
Pintaras said the construction division achieved a high revenue of RM52 million in the recent quarter, compared with its earnings of RM23 million in the same quarter last year.
For its cumulative first half, Pintaras made a net profit of RM24.52 million, up 165% from RM9.25 million a year ago, as revenue climbed 78% to RM119.50 million from RM66.97 million.
It expects its next two financial quarters to be softer, as several on-going projects are nearing completion.
Oil and gas services provider Sumatec Resources Bhd announced to Bursa today a slew of corporate proposals related to its Kazakhstan projects, with plans to raise some RM400 million via private placement, share issuance and rights issues with warrants.
The company has also inked an agreement with Ken Makmur Holdings Sdn Bhd and Markmore Energy Labuan Ltd to produce liquefied petroleum gas (LPG) and condensate, as it seeks a new source of income.
“Subject to the prevailing market condition, the proposed private placement may be implemented in tranches within six months after the receipt of all relevant approvals,” Sumatec said. “As such, there could potentially be several price fixing dates, depending on the number of tranches and timing of implementation,” the statement said.
Sumatec has proposed to issue up to 800 million shares to its contractors, who will be appointed to assist in the Petroleum Operations by providing specialised services, materials and equipment.
Sumatec has proposed a renounceable 1-for-2 rights issue of up to 3.23 billion shares, together with up to 3.23 billion warrants at an indicative issue price of 10 sen per rights share, on the basis of one rights share for every two existing shares in Sumatec, held together with one warrants for every one rights share subscribed.
Sumatec said it intends to produce LPG from the 100 million standard cubic feet per day of natural gas supplied from the Rakushechnoye oil and gas field in Kazakhstan.
The company foresees the Kazakhstan field projects to generate an overall return of 20% per year.
Sumatec will implement the corporate proposals in stages, with the cash call proposals to be implemented in the first phase, and LPG production in the second.
The LPG production will only start after the group has completed its cash call exercise.