KUALA LUMPUR (July 28): Based on corporate announcements and news flow today, stocks in focus tomorrow may include Bursa Malaysia Bhd, Cycle and Carriage Bintang Bhd, Syarikat Takaful Malaysia Keluarga Bhd, RHB Bank Bhd, Sunway Bhd, Green Ocean Corp Bhd, Press Metal Aluminium Holdings Bhd, XOX Bhd, Key Alliance Group Bhd, Dagang NeXchange Bhd, Sime Darby Plantation Bhd, Axiata Group Bhd, ConnectCounty Holdings Bhd, Ranhill Utilities Bhd and AWC Bhd.
Bursa Malaysia Bhd booked its highest quarterly net profit of RM86.23 million for the second quarter ended June 30, 2020, up 86.08% from RM46.34 million last year. Quarterly revenue, meanwhile, rose 45.03% to RM179.78 million from RM123.96 million, largely thanks to a big jump in securities market trading revenue to RM110.1 million from RM58.8 million previously. The extraordinary quarter brought Bursa Malaysia's cumulative results for the first half ended June 30, 2020 to their best since its listing in 2005, as the group benefitted from market volatility, which resulted in higher trading activities in both securities and derivatives markets. The stock market operator approved a quarterly dividend of 17 sen per share — also its highest ever since its listing.
Cycle and Carriage Bintang Bhd remained in the red for the second quarter ended June 30, 2020, posting an 18.93% narrower net loss of RM9.38 million compared with RM11.58 million a year earlier, owing to a plunge in sales. Revenue fell 55.12% to RM139.34 million from RM310.48 million for the same period last year on the back of softening demand in the premium segment of the automotive sector.
Syarikat Takaful Malaysia Keluarga Bhd and its subsidiary Syarikat Takaful Malaysia AM Bhd have entered into two service agreements with RHB Islamic Bank Bhd, a wholly-owned subsidiary of RHB Bank Bhd, for a combined facilitation fee of RM151 million. Under the agreement, RHB Islamic will sell, distribute and promote family credit takaful products developed by Syarikat Takaful. In return, Syarikat Takaful will pay a facilitation fee of RM145 million to RHB Islamic.
Sunway Bhd is buying a leasehold land in Kota Baru, Kelantan from Liziz Standaco Sdn Bhd for RM28.7 million, to construct a 200-bed hospital. This marks the group's healthcare maiden expansion into the east coast region.
Green Ocean Corp Bhd, whose share price soared to a seven-year high today, saw its second-largest shareholder Khoo Chee Siang exit the group after disposing of all his shareholdings, representing some 9.79% stake in the company. The group also saw two of its directors — independent and non-executive director Fong Shin Ni and non-independent and non-executive director Shelly Chiau Yee Wern — resign with immediate effect. On the other hand, Green Ocean has planned to raise RM5.36 million via private placement, fro repaying bank borrowings and for general working capital.
Press Metal Aluminium Holdings Bhd's subsidiary Press Metal (Labuan) Ltd launched invitation to buy corporate notes it has issued, up to a maximum aggregate principal amount of US$200 million (RM849.90 million). The group said the offer is part of its policy to actively mange its balance sheet liabilites while optimising its costs of financing.
XOX Bhd's largest shareholder Key Alliance Group Bhd is increasing its equity holdings in XOX by converting 248.6 million irredeemable convertible preference shares in XOX into an equal number of new ordinary shares, in light of recent developments concerning XOX's expansion into microfinancing and emergence of new substantial shareholder involving Hong Kong national Daniel Tam Ping Kuen.
Dagang NeXchange Bhd has proposed a private placement to raise up to RM109.14 million to invest in new businesses, repay bank borrowings and use for working capital. On the potential businesses, acting group managing director Mohd Azhar Mohd Yusof said he believes there are sound opportunities for the company to be back on the growth path especially since valuations of certain IT and energy assets have become attractive for the group to consider investing in.
Sime Darby Plantation Bhd sees rising costs for sustainable practices and foresees the trend is unlikely to reverse anytime soon, noted its chief sustainability officer Prof Dr Simon Lord. Citing the World Wide Fund for Nature data, Lord said the cost to produce sustainable palm oil varies between US$4 and US$12 per tonne of crude palm oil. At the group level, the group's cost stood at around US$32 per hectare.
Axiata Group Bhd said its business-to-business unit Axiata Enterprise has inked a strategic partnership agreement with Spanish multinational telecommunications firm Telefónica to leverage off each other's scale, expertise and market presence in their respective regions. The agreement will see Axiata Enterprise join the Telefónica Partners Programme, an initiative launched in 2011 as part of Telefónica Tech, as the only Asian partner covering 11 markets in the region.
ConnectCounty Holdings Bhd said it has ceased all negotiations pertaining to the possible reverse takeover (RTO) exercise involving S5 Systems Sdn Bhd. This comes after it was reported last Monday that Ancom Logistics Bhd had proposed an RTO exercise which entailed the acquisition of the entire share capital in S5 Holdings Inc — the parent company of S5 Systems.
Ranhill Utilities Bhd said it has received a letter of acceptance from the mayor of Bandung for its proposal to build, operate and transfer a water treatment plant in the Indonesian city, subject to negotiations with the relevant government agencies. The group will be involved in the operations and maintenance of the 30-million-litre-a-day treatment plant for 30 years, with the water tariff set at 3,200 rupiah per cubic metre.
AWC Bhd is partnering with Techkem Utilities Sdn Bhd to jointly explore water-related project opportunities in Malaysia and the Asean region.