Dec 18th - Companies in the news V.S. Industry, Hiap Teck Venture, Sarawak Oil Palms, MMC Corp, Gamuda, Pelikan International Corp, Mah Sing Group and

by **Cals** Thu 18 Dec 2014, 00:13

Companies in the news
V.S. Industry, Hiap Teck Venture, Sarawak Oil Palms, MMC Corp, Gamuda, Pelikan International Corp, Mah Sing Group and TH Heavy Engineering

KUALA LUMPUR (Dec 17): Based on corporate announcements and newsflow today, the companies that may draw interest tomorrow could include the following: V.S. Industry Bhd ([You must be registered and logged in to see this image.] Financial Dashboard), Hiap Teck Venture Bhd ([You must be registered and logged in to see this image.] Financial Dashboard), Sarawak Oil Palms Bhd ([You must be registered and logged in to see this image.] Financial Dashboard), MMC Corp Bhd ([You must be registered and logged in to see this image.]Financial Dashboard), Gamuda Bhd, Pelikan International Corp Bhd ([You must be registered and logged in to see this image.] Financial Dashboard), Mah Sing Group Bhd ([You must be registered and logged in to see this image.] Financial Dashboard) and TH Heavy Engineering Bhd ([You must be registered and logged in to see this image.] Financial Dashboard).
Electronic Manufacturing Services (EMS) provider V.S. Industry Bhd achieved a 268% jump on net profits for the first financial quarter ended Oct 31, 2014 (1QFY15) to RM35.22 millon, from RM9.56 million in the same quarter a year ago, on higher sales and a better sales mix, contributed by its Malaysian operations.
In an announcement to Bursa Malaysia today, V.S. said its revenue for 1QFY15 had grown 24.5% to RM544.56 million, from RM437.26 million in 1QFY14, due to higher sales achieved.
V.S. managing director Datuk Gan Sem Yam said the first and fourth quarters of the financial year, were the strongest for the company, as customers increase orders in preparation for the year-end festivities.
“This commendable 1QFY15 [results] reflects our partnership with strong global brands who are still focused on expanding their market share, and along with our key customer development, we have invested substantially in production capacity in our Malaysian operations in recent years, and are now reaping the benefits of these strategies,” he said in a separate statement today.
Its share price closed up 2 sen to RM2.17 today, rising to a market capitalisation of RM435 million.
Hiap Teck Venture Bhd’s integrated steel mill in Kemaman, Terengganu, is currently undergoing a trial-run, said its deputy chairman Tan Sri Law Tien Seng, who controls 26.31% stake.

"The plant is already completed and on trial run. We are just waiting for the production to start running smoothly. So, if there's no major problems, we should start producing before year end," Law told the media, after the company’s AGM today.
Revenue and profit contribution from the plant will kick-in next year, Law said, but he declined to divulge of the expected amount.
For its first quarter ended Oct 31, 2014 (1QFY15), Hiap Teck reported a 79% fall on in net profits to RM2.84 million, from RM14.06 million in 1QFY14, mainly due to lower other income reported, and share of loss of a jointly controlled entity of RM4.97million.
The company reported a 13.7% increase in revenue to RM307.46 million in 1QFY15, compared to the same period a year ago, when it reported a revenue of RM270.45 million mainly due to higher sales volume achieved in its trading division.
The integrated steel mill is a joint-venture project between Hiap Teck and China Shougang International Trade and Engineering Corp. Shougang is also substantial shareholder of Hiap Teck, with an equity stake of 9.09%.
Hiap Teck shares closed up 1.5 sen, or 2.8% today giving it a market capitalisation of RM392.08 million.
Sarawak Oil Palms Bhd (SOP) has withdrawn its bid to acquire a 60% stake in DD Pelita Sebungan Plantation Sdn Bhd and Mutiara Pelita Genaan Plantation Sdn Bhd from Double Dynasty Sdn Bhd (DDSB) and Mutiara Hartabumi Sdn Bhd (MHSB), for RM134.9 million, after the vendors failed to obtain consent from the authority for the sale and transfer of their sale shares.
DD Pelita and Mutiara Pelita have collectively planted 9,661ha of oil palm estates in Sarawak, with an estimated average age profile of 5.5 years.
In a filing with Bursa Malaysia today, SOP said it was informed by the vendors (DDSB and MHSB) that the latter were unable to obtain the consent from the Ministry of Land Development for the sale and transfer of their sale shares, which was one of the conditions precedent in the share sale agreement (SSA).
"(As such,) the vendors are giving notice to rescind the SSA, pursuant to clause 4.5.1 of the SSA. As the sale and purchase agreement (SPA) is conditional upon the completion of the SSA, the SPA would also be rescinded," it added.
SOP noted it is currently contemplating its next course of action, which would include the recovery of the deposit and the cessation of its representative as a director in DD Pelita and Mutiara Pelita.
Its share price closed up 11 sen or 2.08% today to RM5.39, rising to a market capitalisation of RM2.36 billion.
The 50:50 joint venture firm of MMC Corp Bhd and Gamuda Bhd, MMC Gamuda KVMRT (T) Sdn Bhd (MGKT), which is the underground work package contractor for the MRT project Line 1, will spend over RM100 million on refurbishing and upgrading its tunnel boring machines.
MGKT's head of tunneling Ng Hau Wei said the refurbishment and modification works of the tunnel boring machines are in preparation for its next tunneling job.
The works included the storage and preservation of the boring machines.
MGKT will partner German firm Herrenknecht AG to undertake the necessary works for 10 tunnel boring machines, the same ones which were deployed for MRT Line 1.
Under the agreement, Herrenknecht AG will collaborate with local steel works and heavy engineering specialistWaiko Engineering Works Sdn Bhd, to jointly carry out the machine refurbishment works.
MMC Corp shares closed down 1 sen or 0.45% to RM2.22 today, arising to a market capitalisation of RM6.82 billion, while Gamuda shares closed up 1 sen or 0.21% to RM 4.81 today, rising to a market capitalisation of RM11.22 billion.
Pelikan International Corp Bhd has received approval from its shareholders for its proposed business re-organisation scheme, during its extraordinary general meeting held today.
In a statement to Bursa Malaysia this afternoon, Pelikan said the group was set to realise an estimated gain of RM130 million and raise RM390 million cash on completion of the scheme.
The successful fund raising will also serve to strengthen Pelikan’s balance sheet, where gearing would be substantially reduced to 0.38 times.
Its cash per share will also be raised to RM1, from 22 sen as at the end of 2013, and overall net asset per share improve to RM1.31, from RM1.06.
"One of the key rationales of the exercise is to consolidate the group’s stationery sales and distribution business into Herlitz, to create a clearly defined organisational structure of management and business," said President and CEO of Pelikan Loo Hooi Keat.
Pelikan share price gained two sen or 2.05% to 99.5 sen today, giving the company a market capitalisation of RM545.63 million.
Mah Sing Group Bhd will appoint Topotels Sdn Bhd to run the former's Meridin Hotel Suites in Iskandar Malaysia, Johor.
In a press release today, Mah Sing group managing director Tan Sri Leong Hoy Kum said its wholly-owned subsidiary, Meridin Hospitality Sdn Bhd, had signed a letter of intent with Topotels.
“[email=Meridin@Medini]Meridin@Medini[/email] is poised to benefit from its location just right next door to Legoland Malaysia, which drew more than 1 million visitors since its opening. The project has done very well, and we are optimistic of very good response to Meridin Suites as well,” Leong said.
Meridin Hotel Suites comprises two 27-storeys blocks, which come with studios, besides one and two-bedroom suites in phase 2 of [email=Meridin@Medini]Meridin@Medini[/email].
Mah Sing share price climbed 12 sen or 5.56% today to RM2.28, rising to a market capitalisation of RM3.36 billion for the property developer.
Bursa Malaysia has publicly reprimanded TH Heavy Engineering Bhd for breaching the main market listing requirements, as it failed to do relevant adjustment to its quarterly financial results stated in the company’s announcement.
In a statement, Bursa Malaysia said TH Heavy has failed to ensure that the company’s announcement dated Feb 28, on the fourth quarterly report for the financial year ended Dec 31, 2013 (4QFY13), took into account the adjustments which were made in the annual audited accounts for FY13 announced on Apr 30, 2014.
“The failure to take into account the adjustments was in contravention of Paragraph 9.16(1)(a) of the Bursa Malaysia Securities Main Market Listing Requirements (Main LR), where a listed issuer must ensure that each announcement made is factual, clear, unambiguous, accurate, succinct and contains sufficient information to enable investors to make informed investment decisions,” Bursa Malaysia said.
TH Heavy share price went up 1.5 sen to 30sen today, giving it a market capitalisation of RM333.32 million.