KUALA LUMPUR (May 8): Based on corporate announcements and news flow today, stocks in focus on Tuesday (May 9) may include: Media Prima Bhd, Tien Wah Press Holdings Bhd, PanPages Bhd, ManagePay Systems Bhd, Tenaga Nasional Bhd, Texchem Resources Bhd, Censof Holdings Bhd, Kimlun Corp Bhd, Key ASIC Bhd, MK Land Holdings Bhd and Hovid Bhd.
Media Prima Bhd is buying over Rev Asia Bhd's advertising and social media business, which is parked under Rev Asia Holdings Sdn Bhd, for RM105 million, which the companies said would create Malaysia's largest digital media company.
The planned acquisition is being undertaken by its wholly-owned unit Media Prima Digital Sdn Bhd, which today inked a conditional sales and purchase agreement with Rev Asia.
Rev Asia has a 70% stake in Rev Asia Holdings, while Youth Asia Bhd holds the remaining 30%.
Media Prima is specifically interested in five subsidiaries held by Rev Asia Holdings, namely Rev Digital Sdn Bhd, Rev Lifestyle Sdn Bhd, Rev Social Malaysia Sdn Bhd, Rev Social International Sdn Bhd and Rev Entertainment Sdn Bhd.
Media Prima said other than the five named, other subsidiaries under Rev Asia Holdings will be disposed of by the group prior to completion of the sale.
Tien Wah Press Holdings Bhd posted a 26.3% decline in net profit for the first quarter ended March 31, 2017 (1QFY17) to RM4.13 million from RM5.6 million a year ago.
The company attributed the decrease in earnings to the lower gross profit margin following the newly acquired subsidiary’s smaller gross profit margin.
Quarterly revenue, however, was up 34% to RM110.39 million against RM82.39 million in 1QFY16 on increased sales under a major customer’s contract and the revenue consolidation of a newly acquired foreign subsidiary.
PanPages Bhd, a business platform developer, is acquiring a 30% stake in Lay Hong Bhd’s subsidiary for RM10.75 million.
PanPages said G-MART Borneo Retail Sdn Bhd is engaged in the operation of retail supermarkets.
ManagePay Systems Bhd will be deploying over 3,000 credit card terminals to Johor Corp’s subsidiary Virtualflex Sdn Bhd — which has 748 outlets of pre-paid payment kiosks nationwide — for five years.
This is subject to the commissioning of its terminals, said ManagePay.
ManagePay added that it will absorb the costs of deploying terminals including the support and maintenance of the terminals, in lieu of earnings from the payment processing and Tag-On revenue. As for Virtualflex, ManagePay said it will collaborate exclusively on terminals deployment and usage.
Tenaga Nasional Bhd’s wholly-owned unit TNB Repair and Maintenance Sdn Bhd (TNB Remaco) has been awarded a US$176 million (RM763.22 million) contract to operate and maintain the 1,223 megawatt (MW) Balloki combined cycle power plant in Punjab province, Pakistan.
The contract, which was won through an international bidding exercise, is a new milestone for TNB Remaco as it is the largest O&M contract for a single power plant, both locally and internationally.
Tenaga Nasional said the 12-year contract was awarded by the National Power Parks Management Company (Private) Ltd, a government-linked company in Pakistan.
Texchem Resources Bhd’s net loss in the first quarter ended March 31, 2017 (1QFY17) narrowed to RM575,000 from RM2.21 million a year ago, as revenue improved 5.5% year-on-year to RM270.98 million from RM256.84 million.
The diversified food and chemical company’s finance costs also declined to RM2.19 million from RM2.44 million.
Texchem said its 1QFY17 losses were due to an unfavourable sales mix of lower margin products, though this was partly offset by improved sales across multiple divisions.
The company has set aside RM44 million to open 17 Sushi King outlets in Malaysia, Brunei and Indonesia, as well as expand its coffee cafes and frozen food business in Malaysia.
Censof Holdings Bhd has won a RM7.5 million contract to maintain application, hardware and licence renewal for the Inland Revenue Board's revenue accounting system or eRAS.
Censof said its wholly-owned unit Century Software (Malaysia) Sdn Bhd has accepted a letter of award from the board. The contract is valid for three years, starting from Nov 19, 2017 to Nov 18, 2020.
Kimlun Corp Bhd's 40%-owned joint venture company JBB Kimlun Sdn Bhd has bagged a RM263 million contract to construct an office complex block for Majlis Bandaraya Johor Bahru (MBJB) in Plentong, Johor.
JBB Kimlun accepted the letter of award for the job from property developer Astaka Padu Sdn Bhd, the group said.
The project's duration is 30 months from the date of site possession, and is expected to be completed in October 2019.
Key ASIC Bhd said two chips it co-designed with RC Module — PCI-e SoC (system on a chip) and Numeric Matrix (NM) CPU — a leading system and chip design company in Russia, are going into production.
The company has secured contracts worth RM7 million, as of May this year, for the two chips.
He said the company has other projects it has been co-designing with customers using its IPs (intellectual property), and expects these projects to successfully go into production in the near future.
MK Land Holdings Bhd is selling off nine parcels of leasehold land in Kamunting, Perak for RM72 million, to improve its financial position.
The group expects to record a net gain of about RM32.14 million from the disposal after deducting disposal expenses, taxes and related costs.
Its wholly-owned subsidiary Dominant Star Sdn Bhd has inked two sale and purchase agreements (SPAs) with KL Teh Land and Development Sdn Bhd for the disposals.
The first batch comprises six vacant land parcels, measuring approximately 33.56 acres (13.58 hectares), which will be sold off for RM9 million. The remaining three land plots totalling 65.67ha, on which a clubhouse, a golf course and a driving range are located, will be disposed of for RM63 million.
Hovid Bhd has received the manufacturing licence for its pharmaceutical facility in Ipoh, Perak, from the Health Ministry after complying with the Ministry's regulations.
The Ministry had revoked the licence for the facility along Jalan Tunku Abdul Rahman in January this year. "The (re-issued) licence is valid from May 5, 2017, to be renewed three months prior to the expiry date on Dec 31, 2017,” Hovid said.
On Jan 9 this year, the Ministry had revoked the manufacturing licences of Hovid's two facilities in Perak due to non-compliance with the regulator's good manufacturing practice.
Besides the Ipoh facility, the Ministry had also revoked the licence for the facility along Jalan Ipoh/Chemor in Chemor. However, on March 6, the Ministry had re-issued the licence for the Chemor facility, which is valid from March 6 till Dec 31 this year.