KUALA LUMPUR (Nov 3): Based on corporate announcements and news flow today, stocks in focus on Monday (Nov 6) may include: Top Glove, Jaycorp, Lafarge, SLP Resources, Hong Leong Bank, Cocoaland, Air Asia, MISC, Daya Materials, MBSB, Maxis and Lay Hong.
Top Glove Corp Bhd has inked an agreement to purchase Eastern Press Sdn Bhd, a supplier of printing and packaging materials to the group, for RM46.25 million, to improve coordination in its packaging material supply chain.
The proposed acquisition also comes with a net profit guarantee of RM4.5 million for Eastern Press's financial year ending Oct 31, 2018.
The acquisition, which will be funded via bank borrowings and internal funds, is expected to be completed in 1QFY18.
It had earlier inked a letter of intent for the proposed buy on Oct 13, at a higher price of RM47.25 million.
Jaycorp Bhd, a furniture maker, has proposed to diversify into construction and property development.
The group said the move could open up new opportunities and fetch additional streams of income, thereby reducing its reliance on its current core businesses, which also include packaging, processing of wood and renewable energy.
Jaycorp anticipates its new business segments to contribute at least 25% to its bottom line in the future, and result in a diversion of more than 25% of the group’s net assets.
The proposed diversification is subject to the approval of Jaycorp's shareholders at an extraordinary general meeting to be convened.
Lafarge Malaysia Bhd said a fire broke out at its integrated cement plant in Rawang, Selangor today.
The company said the Fire and Rescue Department was on site within 10 minutes and the fire was snuffed out shortly after.
At 9pm, three persons have been reported as missing.
The cause of the incident and extent of its damage are currently being worked out. An update can be expected tomorrow.
SLP Resources Bhd's net profit has fallen 45% to RM3.4 million in 3QFY17 from RM6.2 million a year ago, due to squeezed margins after a change in sales mix.
It also incurred a one-off corporate exercise expense of RM800,000 in relation to a private placement and bonus issue undertaken by the company during the quarter.
Revenue for 3QFY17, however, was up 12% year-on-year at RM45.86 million, from RM40.97 million.
This was due to improved demand for its flexible plastic packaging products domestically and in Singapore and New Zealand.
Net profit in 9MFY17 shrank 42% y-o-y to RM10.03 million from RM17.36 million, due to change in sales mix and higher raw material and labour costs.
Revenue rose 6% to RM135.06 million from RM127.8 million on higher sales in the domestic market.
SLP Resources expects to receive more orders in the following quarter from customers in view of festive spending habits.
Hong Leong Bank Bhd anticipates its digital banking business expanding by 30% to 40% in terms of customer base in the next two to three years.
This was because there was “significant” growth in both its mobile and Internet banking users for the past year, said its group managing director and chief executive officer Domenic Fuda.
Hong Leong Bank is maintaining its loan growth target of 5% to 6% for FY18.
Cocoaland Holdings Bhd‘s executive director Liew Fook Meng said the company is likely to see flat growth for its FY17 revenue.
The group remains upbeat on growth from candy sales, but foresees revenue from the group's beverage segment would be weaker, Liew said at a press briefing post-EGM today.
Other than organic growth, Liew said Cocoaland is eyeing acquisition of other candy companies in the Southeast Asian market, with a budget allocation of about US$10 million to be internally funded.
Liew said the group has met up with a number of targeted companies in Malaysia, Indonesia and Vietnam but stressed that nothing is finalised.
AirAsia Bhd carried 12% more passengers at 9.89 million across the budget airline's operations in Malaysia, Indonesia and the Philippines in 3QFY17, from 8.83 million a year earlier, on strong and sustained demand for air travel.
Capacity or number of seats flown rose 14% to 11.4 million in 3Q, from 9.98 million previously.
Load factor or number of passengers carried as a percentage of capacity, fell to 87%, from 88%.
MISC Bhd’s net profit for 3QFY17 surged fivefold to RM680.5 million from RM134.2 million a year earlier, driven by higher earnings from its liquefied natural gas (LNG), petroleum and offshore divisions.
Revenue for the quarter increased 1% to RM2.32 billion from RM2.29 billion a year ago.
Earnings per share jumped to 15.2 sen from 3 sen a year earlier.
MISC declared an interim dividend of 7 sen totalling RM312.5 million to be paid on Nov 30.
For 9MFY17, its net profit dipped to RM1.91 billion from RM2.05 billion a year earlier. Revenue, however, rose to RM7.6 billion from RM7.1 billion a year ago.
On prospects, MISC said petroleum shipping demand continues to be affected by global production cuts in response to high crude inventory levels and low oil prices.
Daya Materials Bhd said Nathan Tham Jooi Loon has resigned as the company’s executive vice chairman and director, to pursue other personal interests.
Its chief executive officer (CEO) Datuk Lim Thean Shiang, 46, will take over as the new executive vice chairman. Lim has been the CEO since March 2015.
Tham, 51, was appointed to the board of Daya Materials in May 2005, and assumed the position of executive vice chairman in March 2015.
Malaysia Building Society Bhd said trading in its shares will be suspended on Monday, Nov 6, pending a material announcement.
MBSB said the suspension was upon the request of the company.
Maxis Bhd chief executive officer (CEO) Morten Lundal will be leaving the company upon the expiry of his contract on March 31 next year.
Maxis said the board will announce Lundal's successor in due course.
Lundal, 52, came on board as Maxis CEO on Oct 1, 2013, bringing with him more than 16 years of experience in the telecommunications industry.
Lay Hong Bhd‘s chairman, Yap Hoong Chai has disposed of his 39.61 million shares, representing a 13% stake, in MMAG Holdings Bhd, which was held through his family vehicle Innofarm Sdn Bhd.
Yap’s move came less than two months after he emerged as a substantial shareholder in the information and communications technology hardware distributor.
At the same time, Chan Swee Ying, the wife of former MMAG chairman and managing director Chin Boon Long, had purchased 57.34 million MMAG shares representing an 18.88% stake in the company.