MBSB, Eversendai, IJM Corp, UMWOG, Yi-Lai, PIE Industrial, Cycle & Carriage Bintang, Dagang Nexchange, Eastland Equity, Nexgram, AirAsia X and CME

KUALA LUMPUR (Nov 6):  Based on corporate announcements and news flow today, stocks in focus on Tuesday (Nov 7) may include: MBSB, Eversendai, IJM Corp, UMWOG, Yi-Lai, PIE Industrial, Cycle & Carriage, Dagang Nexchange, Eastland Equity, Nexgram, AirAsia X and CME.

Malaysia Building Society Bhd (MBSB) is buying the entire interest in Asian Finance Bank (AFB) for RM644.95 million. The purchase will be satisfied via RM396.89 million in cash and an issuance of 225.51 million new ordinary shares in MBSB at RM1.10 apiece.

The proposed issue price represents a one sen discount to MBSB’s closing price of RM1.11 last Friday, and will enlarge MBSB’s share base by 225.51 million shares.

MBSB signed a conditional share purchase agreement with AFB’s shareholders Qatar Islamic Bank, RUSD Investment Bank Inc and Tadhamon International Islamic Bank, and Financial Assets Bahrain WLL to effect the acquisition today. The proposed merger is expected to be completed in the first quarter of 2018

Eversendai Corporation Bhd has become the first Malaysian company to work on a Saudi Aramco offshore fabrication project. It won a RM180 million project and has recently been certified with the Saudi Aramco 9com certification that allows it to execute Saudi Aramco projects.

The project has been awarded to its wholly-owned unit, Eversendai Offshore RMC FZE in the UAE, for an offshore fabrication project for Saudi Aramco.

The mixed-used development project will comprise commercial, retail cultural and entertainment areas in Doha, a bank headquarters building in Dubai, as well as jackets for Saipem in the Kingdom of Saudi Arabia.

IJM Corp Bhd is constructing an office building for HSBC Bank Malaysia Bhd in Kuala Lumpur city centre, at a contract sum of approximately RM392 million.

Its subsidiary IJM Construction Sdn Bhd was appointed by HSBC as the contractor for design, construction and completion works of the office building on Jalan Tun Razak.

The completion of the project is 37.5 months, and is expected to be handed over to HSBC by December 2020.

UMW Oil & Gas Corporation Bhd (UMWOG) has via its units Sumber Ribu Sdn Bhd and Sumber Wang (L) Ltd, entered into revolving credit facilities for the refinancing of existing working capital and similar debts and expenses related to the facilities. 

The agreement with Sumber Ribu was for a US$110 million Commodity Murabahah Revolving Credit Facility-i and an RM110 million Commodity Murabahah Revolving Credit Facility-i, with an option to upsize the latter facility by RM90 million.

UMWOG also inked an agreement with Sumber Ribu for a US$47 million USD Islamic Trade Facility and a conventional USD facility of RM15 million to be used for its working capital and hedging arrangements.

As with Sumber Wang, it signed a 5-year USD Commodity Murabahah Term Financing Facility-i of US$145 million and a 10-year USD Commodity Murabahah Term Financing Facility-i of US$220 million.

Shareholders of Yi-Lai Bhd have been told to reject the takeover bid by Boundless Vigour Sdn Bhd.

According to an evaluation by the independent adviser, Mercury Securities Sdn Bhd,  the offer price of 78.5 sen per share was deemed as not fair and not reasonable to the minority stockholders.

Mercury Securities said it is not fair as the offer price is at a steep discount, and priced at nearly 50% discount to the fair value of Yi Lai.

Its three independent directors Datuk Wong Gian Kui, Hsieh Yu-Tien and Anita Chew Cheng have also agreed with the evaluation and recommendation.

PIE Industrial Bhd’s net profit for 3QFY17 fell by 59.4% to RM1.9 million, from RM4.6 million a year earlier, due to higher provision for doubtful debts and lower gain from foreign currency exchange translation.

The decrease was partly offset by higher achieved revenue, lower operating costs and higher income from scrap sales.

One of its major customers of its electronic manufacturing activities (EMS) segment had changed its receiving system in March thus affecting payment to the group.

For 9MFY17, PIE Industrial’s net profit jumped 88.2% to RM24.2 million, from RM12.8 million previously. Similarly, revenue grew by 28.6% to RM496 million, from RM385.8 million in 9MFY16.

PIE said significant provision of doubtful debts made under this division during the quarter is expected to be reversed before year end.

Cycle & Carriage Bintang Bhd posted a net loss of RM3.24 million in 3QFY17 ended Sept 30, 2017, compared to a net profit of RM8.29 million a year ago, due to losses in its retail operations.

Quarterly revenue dropped 12.79% to RM331.61 million from RM380.26 million on difficult trading conditions that led to reduction in unit sales and earnings.

For 9MFY17, net profit plunged 83.94% to RM6.02 million, from RM37.46 million a year ago. Revenue fell 7% to RM1.04 billion from RM1.12 billion.

Going forward, Preeston said that with little improvement in the trading environment expected, the last quarter of the year will remain very challenging.

Dagang Nexchange Bhd has bagged a sub-contract to undertake the encryption of radio frequency identification (RFID) vehicle entry permit (VEP) tags on foreign vehicles entering Malaysia.

Its 51%-owned subsidiary, DNEX RFID Sdn Bhd, was awarded the job by the project’s main contractor TCSens Sdn Bhd, at a contract price of RM15 per tag.

Eastland Equity Bhd plans to undertake a renounceable rights issue of up to 294.8 million new shares to raise funds, to finance a proposed land buy and repay some of its bank borrowings.

The rights issue includes a free warrant issue of up to 147.4 million units.

It proposes the rights issue to be undertaken on the basis of six rights share for every five existing Eastland shares held, and one warrant for every two rights shares.

Nexgram Bhd said its chairman, Datuk Sri Wira Ayub Yaakob, 63, and deputy chairman Norzain Abdul Wahab, 51, had both resigned to pursue personal interests.

Its executive chairman Datuk Donald Lim Siang Chai, 62, has been redesignated as the new executive chairman.

Lim is a former politician who is also the chairman of Jiankun International Bhd and Advance Information Marketing Bhd.

AirAsia X Bhd is expecting to carry up to 143,000 passengers next year, after launching its direct flights from Kuala Lumpur to Jaipur. There will be four flights a week effective Feb 5, 2018.

The long-haul low-cost carrier is confident that Jaipur will receive positive response, with an average load factor of about 80% in the first year from February to December 2018.

Best Birdnest Sdn Bhd has surfaced as the largest shareholder in loss-making CME Group Bhd after buying a 16.61% stake from its executive director, Tunku Nizamuddin Tunku Shahabuddin.

Nizamuddin had disposed of his entire stake in the company, which had previously been held via his private vehicle Ikram Mulia Holdings Sdn Bhd.

The 80.57 million shares had been sold in a single block off-market today for RM3.63 million or 4.5 sen per share, representing a 1.5 sen or 25% discount to the group’s closing price of 6 sen, up one sen from yesterday.