Jan22-Companies in the news Maybank, EcoFirst, F&N, SCGM, KTC, Hap Seng, KLCC Stapled Group, GUH, Seacera, LTKM, EUPE Corp, Gadang, Nexgram, GDex and

by **Cals** Fri 22 Jan 2016, 00:42

Companies in the news

[size=28]Maybank, EcoFirst, F&N, SCGM, KTC, Hap Seng, KLCC Stapled Group, GUH, Seacera, LTKM, EUPE Corp, Gadang, Nexgram, GDex and banking stocks

By Danial Idraki / theedgemarkets.com | January 21, 2016 : 11:11 PM MYT

KUALA LUMPUR (Jan 21): Based on corporate announcements and news flows today, companies that may be in focus tomorrow (Friday, Jan 22) could include the following: Maybank, EcoFirst, F&N ([You must be registered and logged in to see this image.] Valuation: 1.30, Fundamental: 2.10), SCGM, KTC ( Valuation: N/A, Fundamental: N/A), Hap Seng, KLCC Stapled Group, GUH, Seacera, LTKM, EUPE Corp( Valuation: 1.10, Fundamental: 1.25), Gadang, Nexgram, GDex ( Valuation: 0.70, Fundamental: 2.55), as well as banking (Valuation: 3.00, Fundamental: 1.50) stocks.

Malayan Banking Bhd (Maybank) has established a US$3 billion structured note programme to widen its product offerings.

In a filing with Bursa Malaysia on Thursday, Maybank said the programme will enable it to issue the structured notes in various countries outside of the United States and Malaysia, in accordance with applicable selling restrictions.

EcoFirst Consolidated Bhd ([You must be registered and logged in to see this image.] Valuation: 1.10, Fundamental: 0.30) saw its net profit jump over 78 times to RM11.74 million or 1.61 sen per share for its second financial quarter ended Nov 30, 2015 (2QFY16) from RM150,000 or 0.02 sen per share a year ago, mainly due to reversal of over provision of tax penalties and interests.

The property developer's revenue also quadrupled to RM23.63 million in 2QFY16 from RM5.35 million in 2QFY15.

The multi-fold net profit growth in 2QFY16 helped to boost its earnings for the cumulative six months ended Nov 30, 2015 (1HFY16) by more than 16 times to RM14.08 million or 1.93 sen per share from RM866,000 or 0.13 sen per share in 1HFY15.

Revenue for 1HFY16 also quadrupled to RM46.96 million from RM10.48 million in 1HFY15.

Beverage manufacturer Fraser & Neave Holdings Bhd (F&N) has budgeted at least RM300 million for capital expenditure (capex) over the next two years to expand production capacity.

F&N chief executive officer Lim Yew Hoe said capex would finance investments, which include the expansion of group's dairy and packaging products' output.

He said two planned investments would come on stream within the next six months. In Thailand, Lim said F&N's capex would finance its packaging line for evaporated milk at its 300 million baht (RM36.15 million) Rojana plant. Production would start in March this year, according to Lim.

SCGM Bhd ([You must be registered and logged in to see this image.] Valuation: 1.70, Fundamental: 2.60), the country's largest manufacturer of thermo-vacuum form plastic packaging, has appointed Sabah-based Kim Teck Cheong Consolidated Bhd (KTC) as sole distributor of its Benxon brand food packaging and plastic cups to food and beverage retailers and manufacturers in Sabah, Sarawak and Brunei.

SCGM managing director Datuk Seri Lee Hock Chai expects the collaboration to boost its presence in the three markets "significantly" in the coming years.

"We target to increase revenue contribution from Sabah, Sarawak and Brunei, from 3% recorded in the financial year just-ended on Dec 31, 2015 (FY15) to 15% in three years," Lee told reporters, after the signing of a memorandum of understanding (MoU) between SCGM and KTC here today.

Under the MoU, KTC will distribute SCGM's Benxon brand products through its 6,419 distribution points, across 18 distribution centres.

Hap Seng Land Sdn Bhd, the property arm of Hap Seng Consolidated Bhd ([You must be registered and logged in to see this image.] Valuation: 2.10, Fundamental: 1.30), said it will be launching projects worth RM1.9 billion in gross development value (GDV) in 2016, despite the weaker overall property market.

Hap Seng executive director Cheah Yee Leng said the launches slated for the year comprise Aria (RM1.1 billion GDV), a high-rise residential project in Jalan Tun Razak, which will be launched in the first half of 2016, and another mixed development in Balakong (RM800 million GDV) to be launched in the second half of the year.

Aria will comprise 598 units of serviced apartments, while the Balakong project will be 60% residential and 40% commercial. "For the Balakong project, we will be launching the residential units first in order to build the volume to support the commercial businesses later," said Cheah.

The KLCC Stapled Group, which comprises KLCC Property Holdings Bhd (KLCCP) and KLCC Real Estate Investment Trust (KLCC REIT), saw its total realised distributable income for the fourth quarter ended Dec 31, 2015 (4QFY15) slip 1.2% to RM173.4 million from RM175.36 million a year ago.

But revenue for 4QFY15 came in at RM347.14 million, 0.04% higher than the RM347 million that was seen in the previous corresponding period, mainly on higher contributions from its retail properties, and management services, which was offset by declines in property investment revenues and hotel operations.

As its distribution rate for 4QFY15 rose to 102.24% compared with 90.08% in the same period a year ago, its dividend/income distribution for 4QFY15 was at RM177.28 million or 9.82 sen per stapled security, 12.2% higher from RM157.97 million or 8.75 sen per stapled unit in 4QFY14.

The 9.82 sen declared comprises a fourth interim income distribution of 4.13 sen for KLCCP and a 5.69 sen distribution per unit for KLCC REIT, both payable on Feb 29.

For the full-year FY15, total realised distributable income was 0.35% higher at RM641.32 million compared with RM639.06 million in FY14, as revenue came in 2.72% higher at RM937.51 million, from RM912.69 million previously.

Its FY15 dividend/income distribution was at 34.65 sen per stapled unit or RM625.55 million, compared with 33.64 sen per stapled unit or RM607.29 million in FY14.

Printed circuit board maker GUH Holdings Bhd ([You must be registered and logged in to see this image.] Valuation: 2.00, Fundamental: 2.35) has called off its proposed investment in a water treatment plant in Jiangsu Province, China, with the Development General Company of Jiangsu Gaochun Economic Development Zone, after the investment failed to materialise.

It first announced the venture into the water treatment sector in China in January 2011.

In a bourse filing, GUH said following this decision, GUH Water (Gaochun) Co Ltd, which has been a dormant company since its incorporation on Jan 13, 2012, has been struck off from the register of the Chinese authority.

Under the proposed venture, GUH was to undertake the construction of a 100 million litres per day water treatment plant on a build-operate-transfer basis, to be implemented in two phases.

Seacera Group Bhd ([You must be registered and logged in to see this image.] Valuation: 2.40, Fundamental: 2.30)'s 60%-owned subsidiary SPAZ Sdn Bhd has accepted a letter of award from Turnpike Synergy Sdn Bhd for the construction of a 13½-storey Ampang Jaya traffic police quarters block and relevant supporting buildings on Lot 38100 and 36900 in Pandan Indah, Kuala Lumpur, for RM14.88 million.

In its bourse filing, it said the contract's completion period is 18 months from the date of site possession.

Turnpike Synergy is a wholly owned unit of Projek Lintasan Kota Holdings Sdn Bhd (Prolintas), which in turn is a wholly owned unit of Permodalan Nasional Bhd.

Poultry farming company LTKM Bhd ([You must be registered and logged in to see this image.] Valuation: 3.00, Fundamental: 3.00) plans to buy a parcel of freehold land in Kuala Lumpur for RM27.44 million, cash.

In a bourse filing, LTKM said its wholly owned subsidiary LTK (Melaka) Sdn Bhd has, today, entered into a sale and purchase agreement with the vendors to acquire the land, which is located in Mukim Petaling, Kuala Lumpur; the tract measures about 1.94 acres (7,841 sq m).

LTKM intends to fund the land buy via internal funds and bank borrowings.

EUPE Corporation Bhd's net profit for its third quarter ended Nov 30, 2015 (3QFY16) slumped 98.6% year-on-year to RM0.05 million or 0.04 sen a share, while revenue fell by 13.3% to RM35.45 million.

The Kedah-based property developer said the weaker 3QFY16 results were partly due to the cancellation of some property sales. It noted that the continuing restrictions on mortgage lending have made it difficult for potential homebuyers to convert registration for its products into purchases.

For the cumulative nine months (9MFY16), net profit was down 75.5% to RM1.89 million from a year ago, while revenue dropped 30% to RM93.9 million.

However, the group said it remains committed to launching its first major residential project in Kuala Lumpur in the next six months, as part of its strategy to achieve a more diversified and robust revenue and profit base over the longer term.

Civil engineering firm Gadang Holdings Bhd ([You must be registered and logged in to see this image.] Valuation: 1.80, Fundamental: 1.70)'s net profit doubled to RM17.72 million or 7.93 sen a share in its second financial quarter ended Nov 30, 2015 (2QFY16) from RM8.51 million or 3.93 sen a share a year ago, mainly due to improved profit margins from construction activities and higher contribution from its property division.

Revenue for 2QFY16, however, dropped 11% to RM101.98 million compared with RM114.6 million in 2QFY15.

For the cumulative six-month period (1HFY16), the group's net profit also doubled to RM38.58 million or 17.26 sen a share from RM18.05 million or 8.34 sen a share in 1HFY15, though revenue only grew a marginal 1.4% to RM251.36 million from RM247.95 million in 1HFY15.

Nexgram Holdings Bhd ([You must be registered and logged in to see this image.] Valuation: 1.10, Fundamental: 1.15) said today it will withdraw its takeover offer of Ire-Tex Corp Bhd ( Valuation: 0.90, Fundamental: 0.35).

In a bourse filing, Nexgram said it is in the best interest of the company to make an application to the Securities Commission of Malaysia (SC) to withdraw the offer, in view of recent developments and events that have transpired and after taking into consideration the timeline of the offer permitted under the code.

"Mercury Securities had, on behalf of the Nexgram Board, applied for the written consent of the SC, pursuant to section 11(13) of the code to withdraw the offer on [the same] date," Nexgram said.

It added that the withdrawal is subject to the consent of SC. "Upon the consent of SC, the offer shall cease and all acceptances received pursuant to the offer shall be returned to the accepting holders," Nexgram added.

GD Express Carrier Bhd (GDex) has offered up to 10% of its issued and paid-up share capital to Yamato Asia Pte Ltd, a wholly owned subsidiary of Yamato Holdings Co Ltd, paving the way for the company to become the leading delivery company in Malaysia.

In a filing, GDex said the number of new shares to be issued under the private placement is 124.89 million shares amounting to RM217.31 million.

GDex also said Yamato Asia "has the intention" to increase its stake to 23% in the future by acquiring additional shares from existing shareholders.

Yamato Holdings also manages Yamato Transport Co Ltd, the number one parcel delivery company in Japan with a market share of 45.4% in the financial year 2015 (FY15), according to the country's Land, Infrastructure andTransportation Ministry.

Banking stocks could also be in focus tomorrow after Bank Negara Malaysia, which has maintained the overnight policy rate at 3.25% today, announced that it is reducing the statutory reserve requirement ratio to 3.5% from 4%, effective Feb 1.

The reduction, the first since 2011, is to ensure sufficient liquidity in the domestic financial system.

(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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