KUALA LUMPUR (May 6): Based on corporate announcements and newsflow today, companies that may be in focus on Friday (May 8) may include Affin Bank Bhd, CJ Century Logistics Holdings Bhd, Gunung Capital Bhd, K-One Technology Bhd, London Biscuits Bhd, Malaysia Buildings Society Bhd, Public Bank Bhd, RHB Bank Bhd, Ranhill Holdings Bhd, TA Enterprise Bhd and Westports Holdings Bhd.
Affin Bank Bhd’s proposal to lower its fourth-quarter interim dividend to five sen per share from seven sen has been rejected by Bursa Securities. No reason was mentioned for the rejection. The bank had sought the reduction in the dividend payout to preserve capital and liquidity in view of the economic slowdown and in support of Bank Negara Malaysia’s measures amid the COVID-19 outbreak.
CJ Century Logistics Holdings Bhd’s proposed RM100 million acquisition of CJ Korea Express Malaysia Sdn Bhd (CJKX) is fair and reasonable, said Mercury Securities Sdn Bhd. Mercury noted that the estimated value of CJKX is RM106.45 million compared with the purchase price of RM112.9 million, representing a premium of 6.45% to 12.9%. The proposed acquisition is also earnings accretive given CJKX’s historical financial performance, and the potential synergistic benefits of the acquisition.
Gunung Capital Bhd has been invited by the promoters of a yet-to-be-issued fully-fledged banking licence in Cambodia to evaluate a proposal to participate. It confirmed that it is in advanced discussions over the proposal, and noted that it was premature to conclude that a listing in Cambodia is the only way for it to unlock the value of such an investment. The group was commenting on a report by The Edge Malaysia dated May 4 stating that it was planning to acquire more than a 20% equity stake in a Cambodian financial institution, with a total investment value estimated at over US$25 million.
K-One Technology Bhd is venturing into making nasal swabs for COVID-19 tests. It will commence pilot manufacturing on a specific nasal swab design via 3D printing this month. K-One has placed an order with a US-based 3D printing technology developer and manufacturer to supply 3D printers for the nasal swabs.
London Biscuits Bhd is selling seven parcels of freehold industrial land in Johor Bahru for RM70 million to Pacific Petcare Sdn Bhd, with Mamee-Double Decker (M) Sdn Bhd acting as guarantor. The land comes with buildings, plant and machinery, as well as intellectual property rights such as certain trademarks and associated goodwill. The sale is part of London Biscuit’s liquidation and will be used to settle debts with creditors. It is selling the 13,451 sq ft of land for a pro-forma loss of RM98 million.
Malaysia Building Society Bhd (MBSB) is proposing a lower final dividend of three sen for the financial year ended Dec 31, 2019, from five sen apiece previously. This new pay-out now translates to RM201.4 million or 27.34%.
Public Bank Bhd is slashing its base rate (BR) and base lending rate (BLR) by 50 basis points following Bank Negara Malaysia’s overnight policy rate cut. Fixed deposit (FD) rates will also be adjusted downwards by 0.5%. All changes are effective May 12.
Meanwhile, RHB Bank Bhd is cutting its BR and BLR by 50bps effective May 13 to 2.75% and 5.7% respectively, from 3.25% and 6.2% per annum previously. FD rates will also have a similar downward revision.
Ranhill Holdings Bhd’s unit Ranhill Water Services Sdn Bhd (RWS) has bagged two water services contracts totalling RM5.96 million from Bina Darulaman Bhd. The contracts are part of the national non-revenue water programme in Perlis.
TA Enterprise Bhd has applied to the Securities Commission to withdraw its voluntary takeover to acquire up to 39.83% of TA Global Bhd. The decision was made after taking into account the impact of COVID-19 on TA Global for the financial year ending Dec 31, 2020, as well as the temporary suspension of several hotels owned by TA Global in March and April.
Westports Holdings Bhd’s net profit for the first quarter ended March 31, 2020 grew 9.22% to RM152.81 million from RM139.9 million a year ago, on the back of a tariff hike effective March 2019. Quarterly revenue was up 14.03% to RM473.46 million from RM415.18 million, on the back of construction activities for the development work on a new jetty and container yard.