KUALA LUMPUR (June 12): Based on corporate announcements and news flow today, stocks in focus on Monday (June 15) may include: Berjaya Land Bhd (BLand), Dialog Group Bhd, Serba Dinamik Holdings Bhd, Careplus Group Bhd, Ekovest Bhd and Malaysian Resources Corp Bhd (MRCB).
Berjaya Land Bhd (BLand)-owned Berjaya Tioman Resort said it will cease operations from June 15, as the over 50-year-old resort was hit by the Covid-19 outbreak and to make way for a redevelopment on site. Following this, the resort management will undertake a retrenchment exercise to compensate all affected employees, amounting to more than RM8 million. BLand owns and operates 13 hotels and resorts locally and internationally.
Dialog Group Bhd’s co-founder and chairman Tan Sri Dr Ngau Boon Kiat sold 44 million shares, which is equivalent to a 0.78% stake in the company, on June 10. According to Dialog, Azam Utama Sdn Bhd sold 37 million shares (0.66%), while Wide Synergy Sdn Bhd sold seven million (0.12%). The two companies are Ngau’s investment vehicles. The shares changed hands via off market transactions for RM161.48 million or RM3.67 per share. After the sale, Ngau holds an 18.12% stake in the oil and gas storage tank services provider.
Serba Dinamik Holdings Bhd has inked a RM320 million deal with Petroliam Nasional Bhd (Petronas) to acquire the Teluk Ramunia fabrication yard in Johor. It was reported that Petronas bought the yard for RM296 million in 2011 from Sime Darby Engineering Sdn Bhd, just a year after the latter had paid RM530 million to acquire the asset from Ramunia Holdings Bhd.
Glove maker Careplus Group Bhd is proposing a private placement to fund new production lines. The group said it intends to raise up to RM82.96 million by issuing up to 53.14 million shares, equivalent to 10% of its outstanding share capital. The shares will be placed to independent third party investors to be identified later, at an issue price that will also be determined later. Careplus said the issue price will not be priced at a more-than-10% discount to the five-day volume weighted average market price of its shares immediately before the price fixing date.
Ekovest Bhd posted a lower net profit of RM8.43 million for 3QFY20, down 71.3% from RM29.4 million previously, dragged by weaker performance across all three business segments, which more than offset the lower net finance costs and taxes paid. Quarterly revenue rose 4.31% to RM344.88 million from RM330.61 million, as the construction segment's gains more than made up for lower contribution from property segment and toll operations. The weak quarterly performance further dragged Ekovest's net profit for 9MFY20 to RM100.78 million down RM17.81 million or 13.99% from RM117.18 million. Revenue for the period rose 7.96% to RM1.08 billion from RM996.68 million, largely due to better contribution from the construction segment.
Malaysian Resources Corp Bhd (MRCB) is raising up to RM5 billion from a sukuk issuance to “fund business growth and to meet future funding requirements”. It plans to utilise the proceeds for general working capital, capital expenditure and other general corporate purposes, which are shariah compliant.