Mar23-Companies in the news VS Industry, Top Glove, Sime Darby, Poh Huat, Sentoria, CCM Duopharma and Astro

by **Cals** Wed 23 Mar 2016, 05:43

Companies in the news

[size=28]VS Industry, Top Glove, Sime Darby, Poh Huat, Sentoria, CCM Duopharma and Astro

By Ahmad Naqib Idris / theedgemarkets.com | March 22, 2016 : 9:40 PM MYT
KUALA LUMPUR (March 22): Based on corporate announcements and news flow today, companies that may be in focus tomorrow (Wednesday, March 23) could include the following: VS Industry, Top Glove, Sime Darby, Poh Huat, Sentoria, CCM Duopharma, and Astro.

Electronics manufacturing services provider VS Industry Bhd (VSI) has acquired a 12.1% stake in Seeing Machines Ltd (SEE) after subscribing for 129.65 million new shares in the latter for £6.74 million (RM39.38 million), cash.

Australia-based SEE is a monitoring and sensing technology firm listed on the London Stock Exchange's Alternative Investment Market (AIM).

Earlier this month, SEE has, in partnership with Tier-1 automotive supplier Takata Corp, successfully secured a major order for its second generation automotive driver monitoring systems from one of the world's largest automotive manufacturers.

"Our investment in SEE allows us to strategically position VSI in this space and to participate as a collaborative R&D partner, which will bode well for our future growth," said VSI managing director Datuk S.Y. Gan.

Top Glove Corp Bhd, the world's largest rubber glove maker, is forming a joint venture (JV) with DHS Emergency Asia Sdn Bhd to provide clinical and specialist medical services in Malaysia.

In a bourse filing, Top Glove said its wholly-owned subsidiary Top Glove Sdn Bhd (TGSB) has entered into a JV agreement with DHS today, which will see the JV partners acquiring TG GD Medical Clinic Sdn Bhd as the JV company. The ultimate equity structure of the JV is 75% TGSB and 25% DHS.

Top Glove said Global Doctors Malaysia will grant the sole and exclusive transferable rights, licence and privilege to use the intellectual property and know-how developed by the hospital chain to TG GD for a fee that will be mutually agreed on by both TGSB and DHS.

Moody's Investors Service said Sime Darby Bhd's sale of perpetual sukuk still leaves the company needing to lower its dependence on short-term funding for Malaysia's biggest listed palm-oil producer to reduce the chances of a further ratings downgrade, according to Bloomberg.

Sime Darby issued RM2.2 billion (US$544 million) of Islamic notes with no set maturity this month via private placement to yield 5.65%, said people familiar with the matter who asked not to be identified because the information isn't public.

The securities, which are treated as equity rather than debt on a company's balance sheet, will pay a step-up rate of 100 basis points, if they aren't redeemed after the 10th year.

The offering, which was Malaysia's biggest perpetual sukuk, is part of measures undertaken by Sime Darby to reduce debt that swelled 74% to RM19.7 billion in the 18 months ended Dec 31, after the acquisition of New Britain Palm Oil Ltd in Papua New Guinea.

Poh Huat Resources Bhd saw its net profit soar 73% to RM14.14 million or 6.62 sen per share for the first quarter ended Jan 31, 2016 (1QFY16), from RM8.18 million or 3.83 sen per share in the previous year, partly due to the stronger US dollar during the period.

The furniture maker's revenue for the quarter rose 44% to RM151.06 million, from RM105.09 million in 1QFY15.

In its filing with the bourse, the group attributed the better revenue to higher volume of shipments by its Malaysian and Vietnam operations, as well as the stronger US dollar during the quarter.

Sentoria Group Bhd announced two contract wins totalling RM110 million, consisting of a design and build contract for one block of apartment in Sepang, Selangor, worth RM20 million, and another for the development of 800 units of single-storey terrace houses in Kuantan, Pahang, worth RM90 million.

In its filing today, the group said it intends to fund works for both contracts through a combination of internally generated funds and bank borrowings.

Works for the Sepang project commenced on March 21, 2016, and is expected to be completed by March 20, 2019. The Kuantan development had also commenced on March 21, with completion targeted by March 31, 2020.

CCM Duopharma Biotech Bhd (CCMD) plans to construct a new plant and a warehouse in Taman Klang Jaya, Selangor, at an estimated cost of RM103.7 million and RM37.1 million, respectively.

"The new state of the art plant which consists of two adjoining blocks will be equipped with enhanced cGMP (current good manufacturing practices) facilities to cater for existing businesses and increased product offerings including specialty product.

"Meanwhile, the new purpose-designed warehouse with roof top car park amenities will accommodate existing operations and cater for future warehousing needs of CCMD's business. These buildings are expected to complement each other and will serve as CCMD's central point for its designated activities," said the company.

The new plant will expand its capacity by approximately 40% to 50%, after its targeted completion within the fourth quarter of 2018.

Astro Malaysia Holdings Bhd's net profit jumped 45.58% year-on-year to RM203.77 million in its fourth quarter ended Jan 31, 2016 (4QFY16), from RM139.97 million a year ago.

The better net profit was mainly due to an increase in earnings before interest, tax, depreciation and amortisation of RM27 million, lower net finance cost by RM30 million and an increase in the share of post-tax results from investment accounted for of RM12.9 million.

Revenue for the quarter under review grew 3.97% to RM1.4 billion, compared to RM1.35 billion in the corresponding quarter a year ago.

Astro declared a fourth interim single-tier dividend of 2.75 sen per ordinary share, with its shares to trade ex on April 4, payable on April 21. The board also recommended a final single-tier dividend of one sen per share for the financial year ended Jan 31, 2016.

For the full financial year ended Jan 31, 2016 (FY16), net profit increased by 18.47% to RM615.3 million from RM519.4 million a year ago, while revenue jumped 4.66% to RM5.48 billion in FY16, compared to RM5.23 billion in FY15.
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