KIP REIT, Sentral REIT, Hai-O, T7, Bioalpha, Menang, Asia Media, Karyon, Boustead, i-Stone, F&N, FGV and Jade Marvel

KUALA LUMPUR (Jan 19): Based on corporate announcements and news flow today, stocks that may be in focus on Wednesday (Jan 20) include KIP REIT, Sentral REIT, Hai-O Enterprise Bhd, T7 Global Bhd, Bioalpha Holdings Bhd, Menang Corp (M) Bhd, Asia Media Group Bhd, Karyon Industries Bhd, Boustead Holdings Bhd, i-Stone Group Bhd, Fraser & Neave Holdings Bhd, FGV Holdings Bhd and Jade Marvel Group Bhd.

KIP REIT has reported a 5.7% drop in net property income (NPI) for its second quarter ended Dec 31, 2020 to RM13.9 million from RM14.73 million a year ago, as the trust continues to be affected by the movement control order (MCO). KIP REIT said recognition of the amortisation of rental rebates of RM500,000 offered to eligible tenants affected by the MCO enforced in the second quarter of 2020, led to a slight dip in its earnings. Net profit fell 6.2% to RM8.66 million from RM9.23 million a year ago, as revenue fell 5.65% to RM18.62 million versus RM19.73 million previously. It has declared a second interim distribution per unit (DPU) of 1.59 sen, amounting to RM8.03 million. Payment of the DPU will be made on Feb 19.

Sentral REIT saw its NPI slip 2.4% to RM29.44 million in the fourth quarter ended Dec 31, 2020 from RM30.15 million a year ago, due to lower revenue and higher unrealised rental income. Revenue fell 2.9% to RM39.46 million from RM40.62 million. The lower revenue was mainly due to “the adjustments on the unrealised revenue on unbilled lease income receivable pursuant to requirements of MFRS 16 Leases, recognised on a straight-line basis over the lease terms”. The REIT’s unrealised rental income for the quarter stood at RM2.35 million, compared with RM1.36 million a year earlier. Its distributable income stood at RM20.61 million, with distributable income per unit at 1.92 sen, compared with RM18.61 million and 1.74 sen respectively in the prior year. The group declared a final DPU of 3.65 sen, payable on Feb 26.

Hai-O Enterprise Bhd has proposed a share exchange with BesHom Holdings Bhd, which will also take over the group’s listing status. Hai-O said the exercise will see its entire 300.3 million shares exchanged with BesHom shares on a one-for-one basis. Upon completion of the share exchange, BesHom will become the new holding company of the group. It will also assume the listing status of Hai-O on the Main Market of Bursa Securities, and Hai-O will be delisted.

T7 Global Bhd has won a contract extension from Petronas Carigali Sdn Bhd to provide underwater inspection services using a mini remotely-operated vehicle. The contract was first awarded in August 2019, for a one year duration until Sept 2, 2020. It has now been extended to May 31, 2021.

Bioalpha Holdings Bhd has proposed to undertake a rights issue of up to 83.34 million new shares and up to 208.34 million new irredeemable convertible preference shares (ICPS) to raise funds primarily for the group’s working capital requirements. The health-supplement manufacturer said the company’s fundraising plans include a private placement of 290 million new ICPS in the group, where Khazanah Nasional Bhd’s wholly-owned unit Malaysian Technology Development Corp (MTDC) is a major shareholder. The rights issue of up to 83.34 million new shares will be undertaken on the basis of one rights share for every 15 existing shares held, while the rights issue of up to 208.34 million new ICPS will be implemented on the basis of one rights ICPS for every six existing Bioalpha shares held.

Two of Menang Corp (M) Bhd‘s shareholders holding a collective 13.29% stake in the property developer have requisitioned an EGM to be convened to remove four existing directors and appoint two new ones. Menang said Datuk Lee Chin Hwa and Nicholas Pun Chee Cheang, who hold 8.31% and 4.98% of the group’s shares respectively, are seeking to remove group executive chairman Raja Shahruddin Rashid, non-independent non-executive director Dr Christopher Shun Kong Leng, independent non-executive directors Wong Koon Wai and Sivagurunathan Narayanasamy, as well as any other persons that might have been appointed by the board of directors between now and the holding of the EGM. At the same time, they are seeking to appoint Yee Chun Lin and Chee Wai Hong to the board.

Asia Media Group Bhd expects its newly-appointed legal advisers and other professionals to take three- to four months to complete investigations linked to losses in the group. The group said in response to queries from Bursa Malaysia on its announcement dated Jan 15, relating to the appointment of the legal firm of Krish Maniam & Co to investigate “the possibility of losses caused by certain individuals with decision-making powers prior to the present board of directors’ entry”. According to Asia Media, the inspection is essentially linked to the write-downs and depreciation of the group’s assets and its whereabouts, that directly or indirectly led to the current impairment and write-downs. Asked by Bursa to quantify the write-downs and depreciation amount, Asia Media said: “Our initial estimated losses are to the tune of RM103,198,076.00 in impairment losses.

Four employees at Karyon Industries Bhd‘s wholly-owned plastic additives and industrial chemicals unit have tested positive for Covid-19. In a bourse filing, the group said the four production workers employed at Allbright Industries (M) Sdn Bhd had tested positive.The workers are currently receiving medical treatment at designated government facilities, as directed by the Ministry of Health, it noted.

Boustead Holdings Bhd said it will not be able to comment at this juncture on a media report by The Edge yesterday, on the intention of Lembaga Tabung Angkatan Tentera (LTAT) to privatise the group via selective capital reduction and repayment.

i-Stone Group Bhd’s subsidiaries PA Metal Technics Sdn Bhd (PAMT) and i-Stone Engineering Sdn Bhd (IEN) have been given the green light by the Ministry of Health to resume operations, after the balance of its employees tested negative for Covid-19. The automisation machine manufacturing group said the rest of its employees working at IEN and PAMT in Johor Bahru were screened for the virus.

Fraser & Neave Holdings Bhd (F&N) is set to establish halal food as the cornerstone of its growth, following its acquisition of Sri Nona companies for RM60 million, which was announced in December last year, besides exploring ways to reimagine its business through organic growth and business synergies, to ensure a more sustainable future. Sri Nona is best known for its flagship product, the NONA Ketupat (rice cakes) range, which is the number one ketupat brand in Malaysia, and its range of oyster sauce, which is among the top three in its category.

The Felda Land Development Authority (Felda) bought 41 million shares in FGV Holdings Bhd from the open market for RM53.3 million. FGV said the shares were purchased at RM1.30 per share yesterday. On Jan 14, Felda bought 22 million FGV shares from the open market for RM28.38 million.

Jade Marvel Group Bhd said the group and JSC Land Sdn Bhd have mutually agreed to terminate their joint venture agreement (JVA) to develop a project in mainland Penang. Jade Marvel, through its unit Great Marvel Sdn Bhd (GMSB), will instead complete the development on its own. Jade Marvel on Sept 21 last year, announced its JVA with JSC to develop a housing project with a gross development value of RM25 million on a 3.23-acre freehold land owned by the former in Simpang Ampat, Seberang Perai Selatan.

Source: TheEdgeMarkets