Companies in the news MBSB, Flonic Hi-Tech, Comfort Gloves, Lay Hong, Encorp, CCM, Y&G, Talam Transform and Westports

by **Cals** Sun 15 Nov 2015, 02:15

Companies in the news

[size=28]MBSB, Flonic Hi-Tech, Comfort Gloves, Lay Hong, Encorp, CCM, Y&G, Talam Transform and Westports

By Tan Siew Mung / theedgemarkets.com | November 13, 2015 : 10:05 PM MYT

KUALA LUMPUR (Nov 13): Based on corporate announcements and news flow today, companies that may be in focus next Monday (Nov 16) could include the following: MBSB, Flonic Hi-Tech, Comfort Gloves, Lay Hong, Encorp, CCM ([You must be registered and logged in to see this image.]Valuation: 1.80, Fundamental: 0.35), Y&G, Talam Transform and Westports.

Malaysia Building Society Bhd ([You must be registered and logged in to see this image.] Valuation: 2.55, Fundamental: 1.20)'s (MBSB) net profit plummeted 67% to RM63.53 million or 2.24 sen a share for its third quarter ended Sept 30, 2015 (3QFY15) from RM192.37 million or 7.19 sen a share a year ago, mainly due to higher allowances for impairment losses on loans, advances and financing with the continuation of its impairment programme initiated in the fourth quarter of 2014.

Revenue for 3QFY15 rose 13.1% to RM768.03 million from RM679.99 million in 3QFY14, its filing to Bursa Malaysia today showed.

The group's total assets of RM41.1 billion as at Sept 30 grew by 9% from RM37.7 billion as at Dec 31, 2014. Loan growth shows an upward trend of 0.3% at RM31.7 billion in 3QFY15 from RM31.6 billion in 2QFY15.

For the nine-month period (9MFY15), MBSB saw its net profit drop 56% to RM273.4 million or 9.87 sen a share from RM621.96 million or 24.33 sen a share a year ago.

Revenue for 9MFY15, however, grew 10.2% to RM2.22 billion from RM2.02 billion in 9MFY14, mainly due to higher income from investments of liquid assets and higher financing income from corporate segment.

The group's cost to income ratio for 9MFY15 has also remained relatively consistent with the previous year corresponding period's to stand at 23%.

Flonic Hi-Tech Bhd ([You must be registered and logged in to see this image.] Valuation: 0.30, Fundamental: 1.65) has proposed a special issue of up to 172 million new shares, which are to be placed out to independent third party Bumiputera investor(s), thus enabling the company to meet its Bumiputera equity compliance.

The proceeds raised from the proposed special Bumiputera issue of up to RM8.6 million will be used for working capital.

In its filing with Bursa today, Flonic said the issue price of the special issue shares will be determined and fixed by the board of directors at a later date, after all relevant approvals have been obtained.

Comfort Gloves Bhd's wholly-owned unit Comfort Rubber Gloves Industries Sdn Bhd has proposed to invest RM20 million in the construction of a three-storey integrated examination glove manufacturing facility.

In its filing today, the group said the facility will help provide additional output to meet the growing demand for its product.

The proposed expansion is expected to be financed from internally generated funds, and should be completed by the end or the beginning of its second quarter ending July 31, 2017 (2QFY17).

Lay Hong Bhd ([You must be registered and logged in to see this image.] Valuation: 0.80, Fundamental: 0.75), which is in talks in relation to a possible joint venture (JV) project to invest in an integrated livestock business overseas, said it needs more time to seal the possible corporate exercise.

"The company expects to conclude and execute the definitive agreement(s) in less than three months," the poultry egg producer said, adding that its negotiations with the two foreign parties are still ongoing.

Initially, the group had expected to conclude the deal within two months, according to its filing on Nov 3.

Encorp Bhd ([You must be registered and logged in to see this image.] Valuation: 0.90, Fundamental: 0.35) has partnered an Australian developer to jointly undertake a proposed mixed development in Australia that has an estimated gross development value of A$75.41 million (RM235.71 million).

In a filing with the stock exchange, Encorp said its unit Encorp Development Pty Ltd (Encorp Development) has entered into a development and management agreement (DMA) with Tew Investments Pty Ltd to develop a piece of freehold land in Perth, Australia.

However, it did not disclose the size of the land.

Under the DMA, both parties will form an unincorporated JV company to develop the land, of which Encorp Development, being the landowner, shall hold no less than a 30% stake while Tew Investment's equity shall not be more than 70%.

They want to develop the land into a multi-level mixed-use commercial and residential development project, comprising commercial units and approximately 165 residential apartments.

Chemical Company of Malaysia Bhd (CCM) has called a truce with property developer Y&G Corp Bhd ([You must be registered and logged in to see this image.] Valuation: 2.00, Fundamental: 3.00) over a land dispute.

In a filing with Bursa Malaysia today, CCM said the settlement of the legal dispute in respect of its claims has been reached with Y&G after the latter agreed to its proposed terms of settlement.

CCM said the terms include the termination of lease granted to Y&G by CCM. Y&G also agreed to waive all of its rights against CCM under the lease.

"In connection with the termination of the lease, CCM has the right to re-enter and to re-occupy the premises with immediate effect," CCM said.

Recall that on Oct 26, CCM had slapped Y&G with a sealed Writ of Summons and Statement of Claim, over outstanding lease rental for a piece of land.

In the Writ of Summons, the chemicals and pharmaceuticals products maker wanted a declaration that the land lease is appropriately terminated, together with an order to re-enter and repossess the leased land, and an order that Y&G shall pay CCM a sum of RM2.23 million being six years' lease rental in arrears, with 5% interest per annum on the lease rental arrears (calculated from July 8, 2015 until the date of full settlement) and other incidental costs.

Talam Transform Bhd ([You must be registered and logged in to see this image.] Valuation: 0.90, Fundamental: 0.35) has aborted the proposed disposal of its 85% equity interest in Jilin Province Maxcourt Hotel Ltd to Cre8ive Hotels Management Ltd for RMB230 million, cash.

In a Bursa filing, Talam said the share sale agreement between its wholly-owned subsidiary company in Hong Kong Malim Enterprise (HK) Ltd with Cre8ive Hotels Management inked on April 3 last year has been officially terminated.

The termination was due to Cre8ive Hotels Management's failure to provide the relevant documents for submission to the local authorities and to settle Jilin Province Maxcourt Hotel's outstanding bank loan.

Westports Holdings Bhd ([You must be registered and logged in to see this image.] Valuation: 1.10, Fundamental: 1.90) saw its net profit for the third quarter ended Sept 30, 2015 (3QFY15) fall 7.7% to RM130.04 million from RM140.88 million last year, as its revenue dipped 1.14%.

Revenue for 3QFY15 came in at RM400.78 million versus RM405.41 million a year ago.

For the nine-month period (9MFY15), the company's net profit came in largely flat at RM372.32 million, compared with RM372.4 million in 9MFY14. However, revenue for 9MFY15 was up 2.31% at RM1.2 billion, from RM1.18 billion last year.

(Note: The Edge Research's fundamental score reflects a company's profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)
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