Maybank, E&O, Sime Darby, Kerjaya Prospek Group, Velesto, IOI Corp, Cypark, Malton, Kimlun, Hai-O, Oriental Holdings, Subur Tiasa
KUALA LUMPUR (March 26): Based on corporate announcements and news flow today, companies in focus on Monday (March 29) may include Malayan Banking Bhd, Eastern & Oriental Bhd, Sime Darby Bhd, Kerjaya Prospek Group Bhd, Velesto Energy Bhd, IOI Corp Bhd, Cypark Resources Bhd, Malton Bhd, Kimlun Corp Bhd, Hai-O Enterprise Bhd, Oriental Holdings Bhd and Subur Tiasa Holdings Bhd.
Malayan Banking Bhd (Maybank) has come forward as a third party to contest a government forfeiture of approximately RM16 million from the wife and children of former Tabung Haji chairman Datuk Seri Abdul Azeez Abdul Rahim and their family-linked company. Of the RM16 million in cash and assets, Maybank, through its lawyer Poh Choo Hoe, is trying to contest the forfeiture of a shoplot near Sunway Geo Avenue, however the value of the shoplot is not known. The forfeiture was filed under Section 56 of the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act.
Amazing Parade Sdn Bhd is making a mandatory takeover offer to Eastern & Oriental Bhd (E&O) at 60 sen per share after it bought a 10.89% stake from Sime Darby Bhd. E&O said it received notice of the MGO from Amazing Parade — the private vehicle of the Tee brothers, who control construction firm Kerjaya Prospek Group Bhd. Sime Darby, meanwhile, said it has disposed of its last block of shares in E&O to Amazing Parade for RM93.5 million cash. Its indirect wholly-owned subsidiary Sime Darby Nominees Sdn Bhd today entered into a share sale agreement to dispose of its entire stake in E&O, comprising 155.83 million ordinary shares and representing approximately 10.89% equity interest in the shares outstanding of E&O, to Amazing Parade for a total cash consideration of RM93.5 million or 60 sen per share.
Velesto Energy Bhd has secured a US$8 million (RM33.17 million) contract from ConocoPhilips Sarawak Ltd and ConocoPhilips Sarawak Oil Ltd for the provision of jack-up drilling services. The group said the project, named NAGA 7, entails the drilling of up to three wells, with work tentatively scheduled to start in the first half of 2021.
IOI Corp Bhd's 32.101%-owned associate Bumitama Agri Ltd said the oil palm plantation company will continue to invest in its infrastructure, and instead of expanding into new planting, the group will start to look into replanting areas with below-average yields and higher-than-expected costs to drive fresh fruit bunch production growth to ensure efficient use of the company's assets.
Cypark Resources Bhd's wholly-owned unit has been granted a 1.100 MW biogas quota at a palm oil mill in Johor. The group said wholly-owned Reviva Sdn Bhd was granted the quota at the Ulu Remis Palm Oil Mill in Layang-Layang by the Sustainable Energy Development Authority Malaysia, which will be sold at an approved rate stated in the feed-in-tariff.
Malton Bhd has signed a memorandum of understanding with Ho Wah Genting Bhd (HWGB) to potentially acquire a 14% stake in its wholly-owned electric vehicle (EV) unit HWGB EV Sdn Bhd, the property developer said. Meanwhile, HWGB said while Malton does not have any experience in the EV industry, it is believed that the latter's local partner expertise and experience in the property industry will contribute and strengthen the implementation of the EV project.
Engineering and construction services provider Kimlun Corp Bhd's net profit plunged 71.39% to RM4.78 million for the fourth quarter ended Dec 31, 2020 (4QFY20), from RM16.71 million a year earlier, due to lower contributions from its construction, property and investment divisions. Quarterly revenue dropped 24.59% to RM243.57 million, from RM322.97 million previously, on lower revenues achieved by all the business divisions. The group proposed a final dividend of one sen per share, with the payment date to be announced later. For the full financial year, Kimlun's net profit tumbled 86.32% to RM7.99 million from RM58.39 million in the previous year. Full-year revenue dropped 42.45% to RM749.71 million from RM1.3 billion.
Hai-O Enterprise Bhd's net profit grew 35.32% year-on-year to RM10.28 million in the third quarter ended Jan 31, 2021 (3QFY21) from RM7.6 million in the previous year, thanks to better contributions from its multilevel marketing and wholesale divisions. The stronger earnings, which came despite revenue staying relatively flat at RM67.23 million, versus RM67.02 million a year before, pushed earnings per share to 3.55 sen from 2.62 sen. For the cumulative first nine months of FY21, Hai-O's net profit climbed 36.35% to RM30.90 million from RM22.66 million in the corresponding nine months in the previous year, while revenue grew 1.56% to RM204.61 million from RM201.47 million.
Oriental Holdings Bhd said its net profit surged to RM103.12 million for the fourth quarter ended Dec 31, 2020 (4QFY20) from RM14.99 million in the preceding quarter, thanks to better performance by its plantation segment. Quarterly revenue rose 4.4% to RM990.2 million from RM948.22 million in 3QFY20 on the back of higher commodity prices and sales volume. On a year-on-year basis, Oriental Holdings' 4QFY20 net profit was up by 26.32% from RM81.64 million in 4QFY19 while revenue was down 10.02% from RM1.1 billion. For the full financial year, the group saw its net profit shrink 67.44% to RM114.81 million, from RM352.6 million in the previous year. Full-year revenue retreated 34.8% to RM3.36 billion from RM5.16 billion.
Subur Tiasa Holdings Bhd's net profit for the second quarter ended Jan 31, 2021 rose 65.7% to RM3.65 million from RM2.2 million a year ago, on higher crude palm oil prices. Its quarterly revenue, however, slipped 0.25% to RM84.14 million from 84.36 million a year ago, dragged by its timber segment. For the cumulative half year ended Jan 31, 2021, the group's net profit surged 108.27% to RM5.64 million from RM2.71 million a year earlier. Its revenue for the period, however, dropped marginally to RM177.89 million from RM179.24 million a year earlier.