KUALA LUMPUR (July 26): Based on corporate announcements and news flow today, stocks in focus tomorrow (July 27) may include: Top Glove, Bursa Malaysia, Gadang, Heineken, SC Estate Builder, ECS ICT, LBS Bina, Mieco Chipboard, SYF Resources, Sunsuria, Luxchem, Pantech and Sasbadi.
Top Glove Corporation Bhd will invest about RM75 million to build its condom business, which should take off a year from now.
The group’s chairman Tan Sri Lim Wee Chai said the existing technology in the glove industry is more advanced than that in condom manufacturing, giving Top Glove an edge in its diversification move.
Bursa Malaysia Bhd’s net profit for its second quarter ended June 30, 2017 (2QFY17) grew by 20.3%, up to RM59.5 million from RM49.5 million last year, thanks to higher contribution from its securities market segment.
Quarterly revenue increased by 10% up to RM142.7 million, from RM129.7 million a year ago, the group said in a filing today. The company has proposed an interim dividend of 20 sen per share and a special dividend of 15 sen per share.
Its first half (1HFY17) net profit was the highest since 2008 and it grew by 16.9% to RM116.2 million from RM99.4 million a year ago, while revenue grew 8.2% to RM285.4 million, from RM263.7 million a year ago — its highest since its listing in 2005.
Gadang Holdings Bhd's net profit in its fourth quarter ended May 31, 2017 (4QFY17) slid 3.5% to RM29.99 million from RM31.07 million in 4QFY16 as revenue fell. It proposed a first and final single tier dividend of three sen for FY17, down from seven sen last year.
Quarterly revenue declined 33.8% to RM163.78 million, from RM247.5 million a year ago as revenue from the construction division declined by 50.03% to RM89.95 million from RM180.02 million previously.
For FY17, Gadang registered a net profit of RM100.38 million, up 5.92% from RM94.77 million in FY16. Revenue, however, retreated 19.4% to RM542.8 million from RM673.53 million last year.
Heineken Malaysia Bhd announced that its net profit in its second quarter ended June 30, 2017 (2QFY17) came in at RM61.58 million, up a marginal 1% from the RM60.88 million it reported in the same three-month period last year, thanks mostly to effective cost management.
Quarterly revenue came in at RM406.58 million, down 12% from RM459.51 million in the corresponding period last year. The decline was mainly due to higher sales seen prior to a price increase implemented on July 1, 2016, said Heineken in a press statement today.
The brewer declared an interim dividend of 40 sen for FY17, payable on Oct 9.
SC Estate Builder Bhd has won a RM3.7 million contract to undertake site clearance and infrastructure earthworks for a PR1MA Homes Project in Kubang Pasu, Kedah.
The PR1MA housing project — which should begin on Aug 25 this year and is scheduled for completion by Feb 24, 2018 — will comprise 732 terrace houses, 492 apartment units, and 10 shop lots.
Computer technology and systems provider ECS ICT Bhd is looking to acquire a 50% stake in property management company Enrich Platinum Sdn Bhd (EPSB) from ECS ICT co-founder Datuk Teo Chiang Quan for RM12.17 million.
EPSB's only fixed asset is its office and warehouse building, which is presently occupied by ECS ICT and its subsidiaries. ECS ICT’s 50% equity in EPSB will secure the long-term tenancy in the building, it said.
LBS Bina Group Bhd is buying eight acres of leasehold land in Seri Kembangan, Selangor from Stratmont Development Sdn Bhd for RM63 million for a mixed development project.
The group plans to develop four towers of serviced apartments with an estimated gross development value of RM600 million on the land, with works expected to start in 2018.
Mieco Chipboard Bhd is taking over SYF Resources Bhd's unit Great Platform Sdn Bhd for RM58.58 million. It will finance the purchase via a combination of bank borrowing and internal funds.
The acquisition will help Mieco Chipboard expand its chipboard production capacity, and enable it to penetrate into the existing customer base of Great Platform.
Sunsuria Bhd has entered into a 70:30 joint venture (JV) agreement with Genlin Development Sdn Bhd to co-develop mixed development projects on two pieces of land totalling 2.23 acres in Sentul.
Sunsuria has also inked a sale and purchase agreement with Genlin to acquire the lands from the JV company for RM28 million, making it a related party transaction.
Luxchem Corp Bhd declared a 2.5 sen dividend for its second quarter ended June 30, 2017 (2QFY17), despite a 33.54% drop in net profit to RM8.66 million from RM13.03 million a year earlier. Quarterly revenue rose 15.5% to RM203.11 million, from RM175.85 million.
For the first half ended June 30 (1HFY17), Luxchem’s net profit climbed to RM22.27 million from RM20.03 million in 1HFY16. Revenue too, was higher at RM421.25 million against RM335.82 million previously.
Pantech Group Holdings Bhd's net profit for its first quarter ended May 31, 2017 (1QFY18) rose 63.72% to RM13.96 million, from RM8.09 million a year earlier, on higher sales demand from both its trading and manufacturing divisions.
Quarterly revenue rose 22.23% to RM151.5 million from RM123.94 million. It declared a half sen first interim dividend and a half sen special interim dividend in respect of its financial year ending Feb 28, 2018, payable on Oct 24.
Sasbadi Holdings Bhd’s net profit for the third quarter ended May 31, 2017 (3QFY17) fell 33% to RM2.56 million, from RM3.84 million a year ago on higher operating cost and lower revenue. 3QFY17 revenue dropped marginally to RM21.69 million, from RM22.42 million previously.
For the cumulative nine-month period (9MFY17), Sasbadi’s net profit was almost flattish at RM12.27 million, versus RM12.51 million in the same period last year. Revenue, however, rose 3.58% to RM80.07 million, from RM77.3 million in 9MFY16.