(July 24): Based on corporate announcements and news flow today, stocks in focus tomorrow (July 24) may include: CIMB, Lotte Chemical Titan, IWCity, Rohas Tecnic, Axis REIT, Wah Seong, Bright Packaging, ManagePay, Java Bhd and Ekons Corp.
CIMB Group Holdings Bhd's subsidiary Touch 'n Go has entered into an equity joint venture (JV) with Alipay, a subsidiary of Ant Financial Services Group to launch a new e-wallet platform in Malaysia.
The JV company, in which Touch ’n Go will hold a majority stake, will develop an e-wallet for use via mobile phones by individuals and small and medium enterprises (SMEs) here, before bringing in banks and merchants to link their services with the platform.
Lotte Chemical Titan Holding Bhd (LCT) has received share buy-back requests for 34.81 million shares from retail investors and MITI-approved non-cornerstone Bumiputera investors eligible for the offer, representing a take up rate 58.8%.
The buy-back offer — made after LCT cut its institutional offering by 23.44% and offer price to RM6.50 from RM8 a week before its July 11 listing — has reduced the proceeds for the development of its Integrated Petrochemical Facility in Indonesia by RM226.25 million to RM3.54 billion.
Iskandar Waterfront City Bhd (IWCity)’s substantial shareholder Creed Asia Development (M) Sdn Bhd has trimmed its stake to 5.26% from 6.88% previously, after disposing of 12.6 million shares last week.
Shares of IWCity, which is in the midst of a merger with its sister company Iskandar Waterfront Holdings Sdn Bhd (IWH), have been actively traded over the past week amid renewed talk that it is in the running for the Bandar Malaysia development deal again after losing the project on May 3.
Rohas Tecnic Bhd has signed an agreement with shareholders of EPCC company HG Power Transmission Sdn Bhd to buy 75% stake in the latter — at a revised price of RM91.66 million.
The share sale agreement was a follow-up to a Heads of Agreement (HoA) inked in April 10 between Rohas Tecnic and HGPT’s two shareholders, PT Safe Tower Systems Sdn Bhd (PTSTS) and Kemuncak Agresif (M) Sdn Bhd (KAMSB), where it first proposed a price of RM101.67 million for 4.9 million shares in HGPT.
Axis Real Estate Investment Trust (REIT) is planning to buy lands measuring a total of 126.55 acres together with buildings erected thereon for RM155 million cash from five subsidiaries of Wah Seong Corp Bhd.
The lands are situated within Kawasan Perindustrian MIEL in Gebeng, Kuantan, Pahang. Axis REIT said the acquisitions will be funded by existing and new bank borrowings, and is expected to be completed by end-2017.
In a separate announcement, Axis REIT saw its property income grow to RM36.4 million from RM35.8 million a year ago for the second financial quarter ended June 30, 2017 (2QFY17), while total trust revenue was flat at RM41.6 million against RM41.8 million last year.
Its distribution per unit (DPU), however, increased 5.9% to 2.17 sen in 2QFY17 from 2.05 sen in the previous corresponding period.
Bright Packaging Industry Bhd reported a lower net loss in the third quarter ended May 31, 2017 (3QFY17) to RM403,000 from RM503,000 in 3QFY16.
Revenue in the period, however, fell 41.52% to RM10.46 million from RM17.89 million a year ago on lower orders from customers in the tobacco industry.
For the cumulative nine months ended May 31, 2017 (9MFY17), it reported a net loss of RM2.5 million from a net profit of RM177,000 in the same period a year ago. Revenue fell 44.16% to RM26.79 million in 9MFY17 compared with RM47.97 million in 9MFY16.
ManagePay Systems Bhd intends to list its associate Trustgate Bhd on Bursa Malaysia’s Leading Entrepreneur Accelerator Platform (LEAP) Market, with M&A Securities Sdn Bhd as the adviser.
The electronic payment specialist first bought into Trustgate back in September 2015, when it acquired a 29.5% stake in the cyber-security firm for RM1.8 million cash.
Practice Note 17 (PN17) company Java Bhd has received the green light from Bursa Malaysia to delay the deadline for the submission of its regularisation plan to Dec 29.
It first entered into PN17 category in January this year after it ceased the timber operation of its subsidiaries — two of which defaulted on bank loans amounting to RM30.12 million — resulting in total equity in the company to drop below 25% of the issued and paid-up capital.
Bursa Malaysia has publicly reprimanded Eksons Corp Bhd for posting an error in its net profit for profit for its nine-month financial period ended Dec 31, 2014 (9MFY15), after it failed to eliminate inter-company sales when preparing the consolidated financial statements.
On Feb 26, 2015, Eksons posted RM64.06 million in net profit in 3QFY15, before revising it to RM52.23 million — a difference of RM11.84 million or 18.5%.