Prestariang, Power Root, mTouche Technology, Bina Darulaman, IGB REIT, Glomac, Censof Holdings, Puncak Niaga Holdings and CCM

KUALA LUMPUR: Based on that corporate announcements and news flow today, stocks in focus on Thursday (August 3) may include Prestariang Bhd, Power Root Bhd, mTouche Technology Bhd, Bina Darulaman Bhd, IGB Real Estate Investment Trust, Glomac Bhd, Censof Holdings Bhd, Puncak Niaga Holdings Bhd and Chemical Company of Malaysia Bhd.

Prestariang Bhd has been awarded a RM10 million contract extension for the distribution and management of Microsoft software licences to public higher education institutions in Malaysia from the Higher Education Ministry.

Prestariang said its wholly-owned subsidiary Prestariang Systems Sdn Bhd (PSSB) has received a letter of award dated July 17 from the Ministry for the contract extension for a period of one year, starting July 3 this year till July 2, 2018.

Power Root Bhd is spending 7.9 million United Arab Emirates (UAE) dirham (RM9.2 million) to raise its stake in its profitable UAE subsidiary.

The proposed acquisition will allow Power Root to increase its equity interest in Power Root ME FZCO (PRMF) from 91% to 97%, thereby allowing Power Root to consolidate the earnings attributable to the sale shares.

Power Root, the company behind the Tongkat Ali and Kacip Fatimah energy drink brands, said the acquisition was formalised after it signed a share sale agreement with Chay Hock Chang to buy three shares in PRMF, which is equivalent to a 6% stake.

The price tag for the 6% stake was pegged to a price-earnings multiple of about 9.5 times. This, Power Root said, was calculated based on 6% of PRMF’s profit after tax of 834,881 dirham (RM968,000) that it chalked up for financial year ended March 31, 2017 (FY17).

mTouche Technology Bhd is collaborating with Thai software, platform and artificial intelligence (AI) technology development company Octa Gravity Co Ltd to enhance its digital media offering in Southeast Asia.

mTouche said it entered into a master collaboration partnership agreement with Octa today to jointly develop and market the digital media and infotainment platform, enhanced with the OCTABrain technology.

Under the agreement, mTouche will also obtain the exclusive rights to market and commercialise the newly-developed platform for markets in the Southeast Asian region including Malaysia, Thailand, Indonesia, Singapore, Vietnam, Cambodia, Philippines, Myanmar, Laos and Hong Kong.

The OCTABrain AI engine can be integrated to any social network and online advertising network, adding human thinking to the platform with the ability of in-deep users behaviour analysis, finding consumer insight, stimulate consumer demand and choosing the right AdNetwork for effective marketing campaigns.

Bina Darulaman Bhd's net profit for the second quarter ended June 30, 2017 (2QFY17) plunged 83.4% to RM433,000 from RM2.61 million in 2QFY16, on lower profit contribution from its property development and construction businesses.

Quarterly revenue, however, grew 14.73% to RM78.95 million in 2QFY17 from RM68.81 million in 2QFY16, thanks to higher contribution by its quarry and road pavement division, which recently bagged road maintenance projects.

For the cumulative six months ended June 30, 2017 (6MFY17), Bina Darulaman said net profit plunged 85.47% to RM716,000 from RM4.93 million a year ago, on lower property sales.

Despite lower earnings, Bina Darulaman said it managed to record a 23.66% growth in revenue to RM142.81 million in 6MFY17 from RM115.49 million in 6MFY16, boosted by early commencement of the state road maintenance project, coupled with external construction jobs.

IGB Real Estate Investment Trust's (IGB REIT) net property income (NPI) for the second quarter ended June 30, 2017 (2QFY17) grew 1.6% to RM88 million from RM86.6 million a year earlier, thanks to higher rental recorded in the quarter under review.

IGB REIT said the distributable income for 2QFY17 amounted to RM76.8 million or 2.19 sen per unit, consisting of realised profit of RM67.7 million and the non-cash adjustment arising mainly from manager fee payable in units of RM8.2 million.

Revenue for 2QFY17 came in at RM127.32 million, up 2.2% from RM124.6 million a year earlier, mainly due to higher rental income, the group said.

The REIT declared a distribution per unit of 4.38 sen comprising 4.3 sen taxable and 0.08 sen non-taxable for the first half of 2017.

For the cumulative six months of FY17 (1HFY17), IGB REIT posted a 2.1% growth in NPI at RM184.1 million from RM180.3 million in 1HFY16. Distributable income for the period totalled to RM161.7 million or 4.61 sen per unit, consisting of realised profit of RM143.1 million and non-cash adjustment from manager free payable in units of RM16.8 million.

Revenue for 1HFY17 was 2% higher at RM260.98 million versus RM255.8 million a year earlier.

IGB REIT is managed by IGB REIT Management Sdn Bhd.

Glomac Bhd is proposing to undertake a bonus issue on the basis of one bonus share for every 10 Glomac shares held to reward existing shareholders and improve liquidity and marketability of its shares.

Glomac said the exercise will involve the issuance of up to 74.82 million shares to shareholders whose names are listed in the Record of Depositors on a date to be fixed later.

As at July 21, 2017, Glomac said it had an issued share capital of RM363.91 million, comprising 727.82 million shares, including 4.85 million which are held as treasury shares.

On completion of the exercise, Glomac said its share capital could be enlarged to as little as RM395.79 million with 795.27 million shares, or as much as RM419.75 million with 822.99 million shares.

Censof Holdings Bhd has won a government contract worth RM5.98 million from the Inland Revenue Board of Malaysia for software application development.

The financial management software services company said its wholly-owned subsidiary Century Software (Malaysia) Sdn Bhd accepted the letter of award today for the project, which will be for three years starting from Aug 1 this year till July 31, 2020.

Puncak Niaga Holdings Bhd announced that its wholly-owned unit Puncak Niaga Construction Sdn Bhd (PNCSB) is facing a notice of adjudication for an alleged payment of RM25.41 million to its former sub-contractor Genbina Sdn Bhd.

The notice was received by PNCSB on July 31, the same day it was issued by Genbina, Puncak Niaga said.

The notice, said Puncak Niaga, was issued by Genbina on disputes arising from the alleged payment claim for a design and build contract relating to the construction of sewerage piping in Bunus, Kuala Lumpur (D44 Project).

The value of RM25.41 million excludes interests, costs and any other relief by Genbina against PNCSB in relation to the payment claim, added the company.

Chemical Company of Malaysia Bhd (CCM) is planning to redistribute a 73.37% stake in CCM Duopharma Biotech Bhd to its shareholders.

The chemical company is also planning to sell off three parcels of lands in Shah Alam to GBA Corp Sdn Bhd (GBA) for RM190 million cash. Its original cost of investment for the three plots was RM23.3 million.

Further, CCM is proposing a placement of 10% its current share capital to investors by way of book-building to raise approximately RM67 million, at an indicative price of RM1.49 per share to be finalised later.