KUALA LUMPUR (June 1): Based on corporate announcements and news flow today, companies that will be in focus on Friday (June 2) may include: 7-Eleven, Perak Corp, RHB, AMMB, XingQuan, Wah Seong, Perisai, Westports, New Hoong Fatt, AppAsia Bhd and Mesiniaga.
Convenient store operator 7-Eleven Malaysia Holdings Bhd has scrapped plans for a RM61.67 million rights issue of new warrants to fund working capital following lukewarm market response.
7-Eleven Malaysia had proposed to undertake the rights issue last month at an issue price of 10 sen per warrant.
Perak Corp Bhd has clarified a 43% variation between its audited and unaudited financial annual net loss for the financial year ended Dec 31, 2016 (FY16).
On Feb 28, the group announced an unaudited net loss of RM10.86 million for FY16. However, the figure has now expanded to RM15.58 million, due mostly to an impairment loss on the investment of an associate, including the advance amount and interest charged, and additional tax at a subsidiary in respect of the prior year.
The impairment loss on the investment of the associate totalled RM4.89 million including the amount advanced and interest charged. The additional tax at its subsidiary had cost Perak Corp RM3.22 million.
It also recorded an RM2.74 million deduction on the application of IC Interpretation 15 Agreements for the construction of real estate with a subsidiary.
RHB Bank Bhd and AMMB Holdings Bhd have confirmed that they are exploring a merger and that they have obtained approval from Bank Negara Malaysia (BNM) to commence discussions.
With BNM’s approval, the two lenders said they have inked an exclusivity agreement to negotiate and finalise terms and conditions of the proposed merger by Aug 30.
Both banks “envisaged that the transaction will effectively be an all-share merger.”
RHB and AMMB requested to suspend trading of their shares yesterday, pending a material announcement. The two stocks will resume trading tomorrow.
XingQuan International Sports Holdings Ltd risks having the trading of its shares suspended on June 8, after not submitting its third quarterly report for the financial period ended March 31, 2017 within the stipulated timeframe.
XingQuan said it was unable to submit its results by May 31, but did not state why. It now has up to June 7 — the suspension deadline — to submit its delayed 3QFY17 report, failing which its shares will be suspended on June 8.
China Automobile Parts Holdings Ltd (CAP) too risks having the trading of its shares suspended on June 8 if it fails to submit its quarterly report for the financial period ended March 31, 2017 (1QFY17) on or before June 7.
This was an expected development after CAP had said last week it would not be able to finalise its quarterly report within the May 31 deadline after its auditor PKF had retracted its audit report for FY15.
In response to Bursa's suspension warning, the company said today an application in relation to re-issuance of the audited financial statements for FY15 has been submitted to Bursa Malaysia Securities.
Earlier, Bursa Malaysia said it would suspend the trading of CAP’s shares with effect from 9am on June 8 until further notice if the issuer fails to submit the financial results on time.
Wah Seong Corp Bhd has become a distributor for one of South Korean Doosan Group’s subsidiaries to distribute construction equipment in Peninsular Malaysia.
Wah Seong said its indirect subsidiary WDG Resources Sdn Bhd has inked an agreement with Doosan Infracore Co Ltd, which results in the appointment of WDG as the exclusive distributor of Doosan Infracore’s products, which it will also jointly promote.
WDG is principally involved in the distribution, rental and service of industrial machinery such as portable power generation systems and construction equipment.
Doosan, on the other hand, produces construction equipment such as excavators, wheel loaders, articulated dump trucks, compact equipment, portable power and engines.
Wah Seong said the distributorship agreement will remain effective until end-2018.
Perisai Petroleum Teknologi Bhd has obtained the agreement of PPL Shipyard Pte Ltd to defer the delivery of two jack-up rigs, Perisai Pacific 102 and Perisai Pacific 103.
The company said PPL had agreed to extend the delivery date for both rigs to Aug 31, 2017, in view of the slump in the upstream oil and gas sector.
It said the parties have also agreed to seek and evaluate any options that may arise during the deferment period.
Construction and property player WCT Holdings Bhd said it expects to realise plans to list a real estate investment trust (REIT) before year end, after the group has tidied its assets.
WCT group managing director Datuk Lee Tuck Fook said the REIT will have about RM1 billion in assets, starting with its own own assets.
The listing of the group's properties under a REIT forms part of WCT's de-gearing exercise, as the group aims to lower its gearing from the 0.9 times level as at Dec 31, 2016.
Westports Holdings Bhd has cut its overall container volume forecast for the financial year ending Dec 31, 2017 (FY17) again, following a decline in throughput in the first five months of this year amid intense competition, on top of last year’s high base.
It now expects FY17 throughput to slip by a single-digit percentage compared with FY16 — which was a record year for the company with 9.95 million TEUS, a 10% jump from FY15 — after revising its container volume target for the year from a slight growth to flat in April.
Westports recorded a drop of 3% in throughput volume at 3.95 million TEUs (twenty-foot equivalent units) for the five-month period ending May 31, 2017, compared with the corresponding period last year.
New Hoong Fatt Holdings Bhd (NHF) is keeping its double-digit growth forecast in net profit and revenue this year, driven by its overseas businesses.
The international contribution is expected to grow to 70% of the group's revenue by 2021, from 52% currently, its managing director Chin Jit Sin said. It now exports to more than 50 countries.
Mobile technology solutions provider AppAsia Bhd has teamed up with Hong Kong-based China Mobile International Ltd to expand its digital video content business in China and other overseas markets.
AppAsia said its wholly-owned subsidiary AppAsia Studio Sdn Bhd has entered into a Memorandum of Understanding (MoU) with China Mobile for the purpose.
Under the MoU, China Mobile will leverage AppAsia Studio's content resources and distribute the content in the form of digital video on Migu and other related content platforms, including but not limited to mobile apps, personal computer and internet protocol television.
Mesiniaga Bhd, which announced a sevenfold increase in net profit to RM876,000 for its first quarter ended March 31, 2017 (1QFY17) yesterday, said it would pay a first interim single tier dividend of five sen per share for its financial year ending Dec 31, 2017 (FY17).
The dividend, which is the group's first payout since September 2014, will be paid on Sept 6, 2017, Mesiniaga said.
http://www.theedgemarkets.com/article/7eleven-perak-corp-rhb-ammb-xingquan-cap-wah-seong-perisai-wct-holdings-westports-new-hoong
