Hartalega, IGB REIT, Bioalpha, Key ASIC, KNM, Sunsuria, Kerjaya Prospek Property, Bintai Kinden, Ge-Shen, Awantec, Paragon Union, Censof, DNeX
KUALA LUMPUR (Jan 25): Based on corporate announcements and news flow today, stocks that may be in focus on Tuesday (Jan 26) include Hartalega Holdings Bhd, IGB Real Estate Investment Trust, Bioalpha Holdings Bhd, Key ASIC Bhd, KNM Group Bhd, Sunsuria Bhd, Kerjaya Prospek Property Bhd, Bintai Kinden Corp Bhd, Ge-Shen Corp Bhd, AwanBiru Technology Bhd, Paragon Union Bhd, Censof Holdings Bhd and Dagang NeXchange Bhd.
Hartalega Holdings Bhd announced its net profit for the third quarter ended Dec 31, 2020 (3QFY21) leapt to a record high of RM1 billion, up nearly 84% against RM544.96 million in the preceding quarter, 2QFY21. Its revenue grew by 58.2% to RM2.13 billion quarter-on-quarter against RM1.35 billion in 2QFY21. The brisk glove sales boosted Hartalega's cash pile to RM2.14 billion. Quarterly earnings per share (EPS) ballooned to 29.31 sen, from 15.95 sen in the preceding quarter. This brings the cumulative EPS to 51.68 sen, from 9.49 sen. Hartalega declared a second interim dividend of 9.65 sen, bringing the cumulative dividend payout for the nine months ended Dec 31, 2020 (9MFY21) to 15.6 sen, versus the 5.5 sen registered in 9MFY20.
IGB Real Estate Investment Trust's (REIT) net property income for the fourth quarter ended Dec 31, 2020 slipped 3.12% to RM93.09 million, from RM96.09 million a year ago, mainly due to a higher allowance for impairment of trade receivables. Quarterly revenue rose 5.65% to RM147.51 million from RM139.61 million a year ago, the REIT said in a filing with Bursa Malaysia. The manager has approved a distribution of 95% of the trust's quarterly distributable income, amounting to RM74.3 million or 2.08 sen per unit, to be paid on Feb 26. For the full year, IGB REIT's net property income fell 20.59% to RM316.68 million, from RM398.79 million in the previous year. Revenue for the 12 months dropped 15.74% to RM465.24 million, from RM552.13 million previously.
Bioalpha Holdings Bhd announced that it has entered into a two-year procurement and distribution agreement with Shanghai Bukun Trading Co Ltd for the procurement and distribution of vaccines in Malaysia, which include the Covid-19 vaccine developed by Sinovac Biotech Co Ltd, subject to approval by the relevant authorities, including the Ministry of Health (MoH) and the National Pharmaceutical Regulatory Agency (NPRA). Bioalpha managing director William Hon said the company is currently liaising with MoH and NPRA and preparing to submit the clinical data for all three clinical trials to secure approvals to distribute the vaccines here.
Key ASIC Bhd's wholly owned subsidiary Key ASIC Semiconductor Ltd has entered into a contract worth US$5.25 million (approximately RM21.22 million) with Canvas Technology Pte Ltd. The project entails the technology and design of internet protocol development and licensing.
KNM Group Bhd's Italian unit has clinched RM30.22 million in contracts for a plant in the United States. The process equipment manufacturer's unit FBM Hudon Italiana SpA, which manufactures process equipment such as condensers, spheres and process tanks, inked two agreements with Dutch oil and gas firm Stamicarbon BV to supply a high-pressure carbanate condenser and a high-pressure stripper. The contracts are expected to contribute to KNM's earnings for the financial year ended Dec 31, 2021 (FY21) and FY22.
Sunsuria Bhd is disposing of two parcels of agricultural land in Kuala Lumpur to Kerjaya Prospek Property Bhd for a total of RM30.14 million. Sunsuria said its 70%-owned subsidiary Sunsuria Genlin Development Sdn Bhd has entered into a sale and purchase agreement with Kerjaya Prospek Property's wholly owned subsidiary Kerjaya Property Sdn Bhd to dispose of the two vacant freehold agricultural lands located in Setapak measuring a total of 9,092 square metres. "The disposal of properties will enable Sunsuria Group to unlock capital resources from being tied up as long-term assets and realise the value of the properties at a fair market value whilst enhancing Sunsuria Group's liquidity and strengthening its financial position," it said.
Bintai Kinden Corp Bhd is teaming up with Australian-based company, International Equities Corp Ltd, to jointly undertake two mixed property development and management projects with healthcare facilities and wellness services in Melaka and Penang. Bintai Kinden will take lead in the project to be developed on two parcels of freehold land spanning 2.16 hectares in Melaka and Penang with an estimated gross development value of RM470 million. International Equities, on the other hand, will provide technical consultation, planning, design, development, and other services to assist Bintai Kinden in developing and promoting the project.
High-precision plastic components maker Ge-Shen Corp Bhd announced that 10 employees of its 70%-owned subsidiary Demand Options Sdn Bhd have tested positive for Covid-19. The infected 10 employees work at Demand Options' primary operations in Desa Cemerlang, Johor Bahru. In a filing with Bursa Malaysia today, Ge-Shen said mass testing has been conducted after the first case of Covid-19 was identified at Demand Options.
Prestariang SKIN Sdn Bhd, a unit of AwanBiru Technology Bhd (Awantec), is entitled to damages of between RM733 million and RM922 million after the Pakatan Harapan government unilaterally terminated a concession agreement for the provision of a comprehensive immigration system over 15 years with the company, said its lawyer. At the start of Prestariang SKIN's hearing against the government, its counsel Datuk Lim Chee Wee in his opening statement said the company had completed 22.37% of the project since 2017, based on an assessment by an independent expert.
Koon Hoi Chun via AKK Capital Sdn Bhd is buying a 60.41% stake in carpet maker Paragon Union Bhd from major shareholders in an off-market deal which led to a planned unconditional mandatory takeover offer from the buyer to acquire the remaining shares in Paragon Union at 55 sen each. Paragon Union said it then received the notice of the unconditional mandatory takeover offer from Hong Leong Investment Bank Bhd on behalf of AKK. AKK's offer of 55 sen a share values Paragon Union at about RM36.4 million based on the company's latest reported number of issued shares at 66.18 million.
Censof Holdings Bhd has proposed a private placement to raise up to RM25.09 million, partly to fund the acquisition of an additional stake in a subsidiary. The group said it is placing out up to 100.35 million new shares or 20% of its shareholding to third-party investors. The indicative issue price of the placement shares is 25 sen apiece, it said. Censof said it will be using RM14.06 million of the proceeds of the placement to acquire an additional 30.87% interest in its 58.20%-owned subsidiary Asian Business Software Solutions Pte Ltd. Asian Business Software is involved in the development and supply of financial management and accounting softwares for small and medium enterprises.
Dagang NeXchange Bhd (DNeX) has inked a consortium agreement with PT Infrastruktur Telekomunikasi Indonesia to maintain submarine cables there. DNeX signed the agreement via a consortium comprising its unit PT DNeX Telco Indonesia (PT DTI) and PT Samudera Mbiantu Sesami (PT SMS). The group said the agreement is for the deployment, management, maintenance and repair, as well as other value-added works, for the sea cable communication system maintenance support within and outside of Indonesia. Under the deal, the consortium is established for a period of three years and may be extended over the next three years.