KUALA LUMPUR (March 27): Based on corporate announcements and news flow today, stocks in focus on Tuesday (March 28) may include: CIMB, IHH, Perdana Petroleum, Teck Guan, Bison, Scomi, Top Glove and BCB.
CIMB Group Holdings Bhd is aiming to kick off its planned 50:50 strategic partnership in the stockbroking business with China Galaxy International Financial Holdings Ltd (CGIF) officially by the second quarter of 2017.
CIMB said CGIF's parent company China Galaxy Securities Co Ltd had announced the passing of resolutions by its board of directors in connection with the proposed partnership through the Shanghai Stock Exchange and the Stock Exchange of Hong Kong on March 24, 2017.
"CIMB notes this positive development and will continue its discussions with China Galaxy International on the proposed partnership, with a target to execute the definitive agreements by 2Q17," the banking group said.
According to a heads of terms signed in October, CIMB and China Galaxy Securities would explore a strategic partnership in the stockbroking business comprising institutional and retail brokerage, equities research, and associated securities businesses, as well as to identify further areas of cooperation in markets where they operate.
IHH Healthcare Bhd's indirect unit M&P Investments Pte Ltd has received a business licence for the incorporation of a 60%-owned subsidiary in Nanjing, China.
IHH said M&P Investments was issued the licence by the Chinese authorities for the incorporation of ParkwayHealth Zifeng Nanjing OBGYN Hospital Co Ltd. The licence is valid until March 20, 2037.
Jiangsu Zifeng Healthcare Co Ltd owns the remaining 40% equity stake in ParkwayHealth Zifeng Nanjing.
ParkwayHealth Zifeng Nanjing is primarily involved in the management and operation of medical and health related facilities and services.
Petronas Carigali Sdn Bhd (PCSB) has awarded Perdana Petroleum Bhd an umbrella contract for the provision of spot charter marine vessel services.
Perdana Petroleum's wholly-owned subsidiary Perdana Nautika Sdn Bhd received a letter of award for a three-year contract — with a two-year extension option for PCSB — on March 17.
The contract — effective March 15 this year until March 14, 2020 — allows Perdana Nautika to provide anchor handling tug or supply vessel bollard pull (both below and over 100 metric tonnes), workboat, as well as workbarge.
According to Perdana Petroleum, the contract's total value will depend on the actual number of days the vessels are on hire throughout the contract period.
The contract is expected to contribute positively to the group's earnings and net assets for the financial years ending Dec 31, 2017, 2018, 2019 and 2020.
Teck Guan Perdana Bhd's net profit more than doubled to RM1.34 million for the fourth quarter ended Jan 31, 2017 (4QFY17), from RM637,000 a year earlier, thanks to higher palm oil price and volume.
Revenue also more than doubled to RM87.79 million, from RM41.79 million in 4QFY16. The group said palm oil products contributed 96.96% of the revenue.
For the full year, Teck Guan's net profit rose 44.4% to RM12 million from RM8.31 million in FY16, while revenue stood at RM377.31 million, up 79.2% from its FY16 revenue of RM210.57 million.
Bison Consolidated Bhd's net profit for the first quarter ended Jan 31, 2017 (1QFY17) climbed 10.2% to RM6.36 million, from RM5.77 million a year earlier, on the back of higher revenue.
Revenue rose 23.5% to RM76.23 million from RM61.72 million, driven by revenue from new stores, improved merchandise mix and promotional activities, the group said.
Bison, which operates the myNEWS.com chain, said merchandise sales grew by 21% or RM11.52 million to RM65.31 million from RM53.79 million in 1QFY16, while complementary income rose by 37% or RM2.98 million to RM10.92 million from RM7.94 million.
Operating expenses (comprising rental, staff and utilities costs) climbed 27% or RM4.04 million to RM19.11 million from RM15.07 million in 1QFY16. Accounting for 94% or RM3.57 million of the group's operating costs were the selling and distribution expenses due to higher number of outlets.
The group did not declare any dividend for 1QFY17.
Scomi Group Bhd has inked a power purchase agreement (PPA) with Tenaga Nasional Bhd (TNB) to develop a 30MWac large-scale solar photovoltaic (PV) power plant in Bandar Sungai Petani, Kedah, on a build-own-operate basis.
Construction of the power plant will be undertaken by Scomi's 30%-owned special purpose vehicle Strong Elegance Sdn Bhd. The remaining equity interest in Strong Elegance is held by Synergy Generated Sdn Bhd (40%) and Lembaga Tabung Angkata Tentera (30%).
"The PPA, which has an expected commercial operation date of Dec 31, 2018, governs the sale and purchase obligations of the energy generated by the project between Strong Elegance and TNB for a period of 21 years from the commercial operation date in accordance with the agreed terms and conditions," Scomi said.
Top Glove Corp Bhd's wholly-owned unit Top Glove Sdn Bhd (TGSB) has embarked on a joint venture (JV) with Japanese firm Fimatec Ltd, to venture into the manufacturing of rubber reinforcing agent.
"The JV is a long-term investment plan for Top Glove group of companies. It aims to reduce the overall glove production cost, improve glove quality and production efficiency through the supply of good and consistent quality of rubber reinforcing agent," said Top Glove.
The business will be carried out via Techniglove Asia Sdn Bhd as the JV company, which will be renamed TG FMT Sdn Bhd and commence operations by the first quarter of 2018.
The agreement states that TGSB will subscribe for up to RM4.2 million of Techniglove's paid-up capital, and Fimatec will subscribe for up to RM1.8 million. Both parties' subscriptions will be executed in stages.
"In any event of any increase of the share capital of the proposed JV company, the enlarged share capital of the proposed JV company would be 70% by TGSB and 30% by Fimatec," said Top Glove.
BCB Bhd is acquiring six adjoining plots of agriculture land, measuring a combined 18.91 hectares, in Batu Pahat, Johor, for RM34.6 million, on which it will develop a residential project with an estimated gross development value of RM360 million.
The property developer is buying the freehold plots from two Singaporeans, Wellington Tan and Shenton Tan Seng Koon, and 400 residential units comprising bungalows, semi-Ds and terrace houses will be built on the land.
The purchase will be funded via a combination of internal funds and borrowings.
"It is too preliminary at this stage to ascertain the total development cost and expected profits to be derived from the proposed development," said the group.