Malton’s 2Q net profit increases 3-folds to RM36m (Edge)

Malton Bhd’s net profit for the second quarter increased three folds to RM36.4 million from RM9.3 million in the previous corresponding quarter.

Its revenue for 2QFY14 soared 164% to RM204.4 million, from RM77.3 million in 2QFY13.

For the six months to 31 Dec 2013, the group's net profit rose to RM40.5 million from RM17.7 million, and revenue rose to RM295.5 million from RM155.3 million.

Insas on the move after strong earnings (Star)

Shares of Insas rose to a high of 93 sen in active trade on Monday after it earnings rose 34.5% to RM40.92mil in the second quarter ended Dec 31, 2013.

Last Friday, Insas reported its earnings rose 34.5% to RM40.92mil in Q2 ended Dec 31, 2013 from RM30.42mil a year ago. Revenue jumped 69% to RM80.67mil from RM47.69mil. EPS was 6.2 sen from 4.53 sen.

Notably its net asset per share was RM1.71 sen, which was 54.3% above its current market price of 93 sen.

In the first half, its earnings rose 65.2% to RM100.32mil from RM60.72mil a year ago. Its revenue rose to RM153.16mil from RM111.33mil.

EA Holdings (EAH) 2013 pre-tax profit soars to RM10.22 mln (Edge)

EA Holdings Bhd's pre-tax profit for the financial year ended Dec 31, 2013, increased to RM10.22 million, from RM8.83 million chalked up in 2012.

Revenue rose to RM91.8 million during the period under review, from RM45.88 million recorded previously.

For the fourth quarter, the company's pre-tax profit rose to RM1.84 million, from RM1.60 million recorded in 2012, while revenue increased to RM23.44 million, from RM10.98 million previously.

EAH said that the better results were due to the lucrative projects secured from the public sector and enterprise sectors, and predominantly two nation-building projects from a major government agency entrusted to its wholly-owned subsidiary, EASS Sdn Bhd.

"The EAH's pipeline projects also look extremely healthy, with the current jobs in hands, amounting to approximately RM103.6 million, with the potential for an additional RM90 million for the current financial year," it said in a statement.

Meanwhile, Chief Executive Officer Mohammad Sobri Saad, said that being one of Malaysia’s leading end-to-end solutions providers, the company was fully committed to the cause of empowering its corporate clients to be more productive and operationally efficient.

He said that the company hoped to ride on the current strong momentum, to build an even stronger and sustainable set of results for the current financial year and beyond.

Besides nurturing organic growth, EAH is also actively looking out for potential companies under its stringent merger and acquisitions plan, to diversify and develop new streams of revenue.

"Given the strong foundation of the previous financial year, EAH is now starting to move to the next level of our corporate history, in our efforts to continue maximising value for shareholders," said Mohammad Sobri, adding that a move to the Main Board of Bursa Malaysia, would increase the company’s visibility with investors.

EAH involved in the business activities as follows: - Provision of software solutions mainly in Business Intelligence and data warehousing solutions and automated invoices processing solution - R&D, sales and distribution of RFID-based tracking systems and the provision of access control systems - Provision of ICT services mainly in system and infrastructure integration services and ICT consultancy services.

Daya Materials’ technical services business to be more profitable (Edge)

Daya Materials Bhd
(Feb 21, 43 sen)
Maintain buy at 43 sen with a revised target price of 48 sen: Premised on its financial year 2014 ending Dec 31 (FY14) and FY15 estimated earnings growth of 86% and 18%, Daya Materials remains one of our favourite small-cap oil and gas (O&G) picks, especially given its growing O&G division. We raise our FY14 and FY15 forecasts by 13% and 29% to reflect better profitability for its technical services (TS) business.

Daya Materials’ two offshore support construction vessels
(OSCVs) — Siem Daya 1 (SD1) and Siem Daya 2 (SD2) — will officially begin their North Sea works with Technip Norge AS by end-February. Each vessel will be deployed for a period of 220 to 250 days per contracted year. We project 230 days for the North Sea deployment and 30 days for spot charters for each vessel.

Daya Materials’ planned acquisition of a 51% stake in SD2, which will cut related costs by around 25%, is targeted to be completed by first half of FY14. Our calculations suggest that the acquisition will bump up FY14 and FY15 earnings estimates by 2% to 4% and 4% to 8% respectively.

The company is negotiating for another vessel chartering contract with Technip Norge involving a similar vessel as SD1 and SD2. We believe the third vessel’s contract arrangement with Siem Offshore could be similar to SD2’s and ultimately lead to Daya Materials acquiring a 51% stake.

Daya Materials’ TS division did not fare well in the third quarter (3Q) of FY13 due to lower project profitability margins. Management said the division showed improvement in 4QFY13 and reaffirmed its more selective stance on future projects.

Maintain “buy”, with a new 48 sen fair value (from 42 sen), pegged to an unchanged 15 times target FY14 price-earnings ratio, which is on par with other small- to mid-cap O&G companies within our coverage universe. — RHB Research, Feb 21

Tambun Indah, Malton, Global Oriental choice picks for mainland Penang Theme, says RHB Research (EDge)

RHB Research has maintained its Neutral rating on the property sector and said Tambun Indah Land Bhd, Malton Bhd and Global Oriental Bhd remain its top choice for a mainland Penang theme.

In a note Thursday, the research house said development growth in mainland Penang will accelerate with the opening of the Penang Second Bridge in March.

It said the healthy fundamentals in the area will make the property market there less sensitive to additional policies to curb bulk property purchases.

“Opportunities for the sector lie in the small- to mid-cap space.

“Given their sizeable landbank exposure, Tambun Indah Land, Malton and Global Oriental remain our choice for a mainland Penang theme,” it said.

Cuscapi to sink in the red for 4Q, says CIMB Research (Edge)

Cuscapi Bhd is forecast to incur an RM1 million net loss in 4Q FY13 on delayed major jobs as compared to the previous forecast of RM3 million profit, according to CIMB Investment Bank Research.

The research house said it cut Cuscapi’s 2013 earnings per share (EPS), but maintained 2014 and 2015 EPS as commercial revenue from REV tables should contribute this year.
In a note today, CIMB IB’s research analyst Nigel Foo said: “We expect the company to post a net loss in 4Q FY13, following 3Q FY13’s disappointing loss.”

“But this year should be much better as jobs delayed from last year will commence.”

Foo said he maintained ‘add’ for the stock at 39 sen with unchanged target price of 70 sen.

“Our REV forecast is conservative until management is able to demonstrate its ability to bring in subscriptions for this product,” he said.

Touching on the RM21 million klia2 contract secured from Malaysia Airports Holdings Bhd, Foo deemed it ‘not a surprise’.

“This contract was one of the few major jobs which was supposed to have been secured by Cuscapi last year.”

In 3Q FY13, he pointed out the firm recorded a RM2.8 million net loss due to delays in securing jobs last year coupled with management growing its infrastructure and headcount.

PDZ’s asset acquisition is off (extracted fr Edge)

PDZ Holdings Bhd’s corporate exercise recently involving the takeover of private company Efogen Sdn Bhd has hit a brick wall, according to sources familiar with the matter.

It is understood that a meeting and subsequently an announcement to Bursa Malaysia pertaining to PDZ’s acquisition was to have been made last Friday, but this was not done as talks had fallen through.

An executive familiar with the deal confirmed that the talks had stalled, but said this was just one party and that there were other interested parties eyeing PDZ as well.

“This deal has been aborted ... it’s not fair for me to talk about it or give you the details,” the executive said, adding that given PDZ’s clean balance sheet, there are still other suitors, but declined to elaborate.

According to market observers, it is odd that the talks stalled as both parties are linked to former finance minister Tun Daim Zainuddin.

Tan is a known associate of Daim, while Efogen’s shareholders include Tan Sri Abdul Rashid Abdul Manaf, who was Daim’s
former lawyer. Abdul Rashid has almost 21% of Efogen.

Being a shipping firm, PDZ has a healthy balance sheet with net cash of RM17.8 million after deducting its long-term debt commitments of RM5.18 million and current liabilities of RM1.2 million. That makes it an ideal candidate for asset injection. However, the company has accumulated losses of RM22.08 million.

For its first quarter ended Sept 30, 2013, PDZ posted a net profit of RM778,000 compared to a net loss of RM265,000 a year ago.

This article first appeared in The Edge Financial Daily, on February 17, 2014.

No new move by PDZ (Star)

PDZ Holdings Bhd said it has not put in any proposals to acquire Efogen Sdn Bhd.

“The company’s major shareholder, who is in preliminary talks with some parties to explore potential business dealings, has informed the company that there is no new development thereof,” PDZ told Bursa Malaysia.

The shipping firm said it would make an announcement if there were further developments.

Ex-PDZ chairman Tan proposes to buy O&G Efogen (Star)

Shipping firm PDZ Holdings Bhd’s major shareholder and former chairman, Tan Sri Robert Tan Hua Choon (pic), is in discussions to acquire a 100% stake in Efogen Sdn Bhd, a bumiputra oil and gas (O&G) company providing integrated upstream O&G services and solutions, according to sources.

PDZ has put in a proposal to acquire Efogen in a straightforward cash deal, according to the sources.

On Feb 10, PDZ confirmed with Bursa Malaysia that its major shareholder had held preliminary talks with some parties to explore potential business dealings, but had not deliberated the matter at board level.

Shares of PDZ have been hogging the volume list of the local bourse over the last few weeks. The stock closed one sen lower at 14.5 sen on a volume of 245.6 million shares yesterday.

Efogen, a holder of national oil company Petroliam Nasional Bhd (Petronas) licences, provides O&G services and solutions mainly in geotechnology, marine transportation and support services, and ICT services.

Its list of clients include Petronas, HESS, Jaring Communications Sdn Bhd, Exxon Mobil, Petrofac, Murphy Oil Corp, Nippon Oil Corp and Talisman Energy Inc.

Presently, its chief executive officer is Johany Jaafar.

A check with the Companies Commission of Malaysia revealed that the company is headquartered in Megan Avenue, Jalan Tun Razak, Kuala Lumpur. The directors of the company consist of Tan Sri Abdul Rashid Abdul Manaf, Mohd Rosly Mohd Salleh and Johany.

Abdul Rashid is presently the chairman of Eco World Development Group Bhd. He was formerly the chairman and director of S P Setia Bhd. Abdul Rashid is an old hand in the corporate world, having previously held directorships in Loh & Loh Corp Bhd, SMIS Corp Bhd and Pohmay Holdings Bhd.

The company has a paid-up capital of 57.3 million shares of RM1 each. Out of this, GMV-Efogen Sdn Bhd owns 37.3 million shares, while Abdul Rashid and Johany own 12 million and eight million shares, respectively.

For its year ended April 30, 2012 (FY12), Efogen recorded a 21.72% jump in revenue to RM53.69mil from FY11, while net profit came in at RM3.77mil from a previous loss of RM1.63mil.

As of the period, it had non-current assets worth RM138.1mil and non-current liabilities worth RM103.95mil.

The company stated that its nature of business was in providing geophysical services to the O&G industry, trading computer software and hardware apparatus and providing consultancy and maintenance services in related fields, and chartering vessels for O&G offshore support services.

Tan appears to be on a spree to unlock value in his companies.

Only recently, his Malaysia Aica Bhd (Maica) created waves when it saw the entry of low-profile property developer Datuk Ter Leong Yap, who now controls 50% in Maica. Tan’s stake in Maica, after the entry of Ter, is around 14%.

Tan owns 19.13% in PDZ, and has been a shareholder of the company since November 2000. For the first quarter to Sept 30, 2013, PDZ turned around to record a net profit of RM778,000 from a loss of RM265,000 previously. This was on the back of an 18.33% drop in revenue to RM43.6mil. For the period, the company had a net asset value of 11 sen. It was also in a net cash position of some RM16mil.

Tan’s other holdings, namely Keladi Maju Bhd and GPA Holdings Bhd, have started to appear on the volume list of Bursa. Tan has a 16.8% stake in Keladi and a 23% stake in GPA.

Keladi ended the day 0.5 sen higher at 36 sen on a volume of 15 million shares, while GPA closed 0.5 sen lower at 10.5 sen on a volume of 15.57 million shares.

认购10%私配新股 传eTRS GTF 成盟汇(MPAY)大股东 (NanYang)

曾与盟汇集团（MPAY，0156，创业板）一同投标政府游客退款计划（TRF）的eTRS GTF私人有限公司，即将成为前者的主要大股东。

本地土著公司eTRS、盟汇集团和韩国Global Tax Free私人有限公司，去年12月以20:50:30股份比例，成立了Managepay GTF私人有限公司，共同投标上述料首年营运即可带来5000万令吉营业额的合约。

根据资料，游客退款计划是一项让外国游客在大马购物时，可申请税务退款的计划。政府预定在2015年4月份消费税（GST）执行时，同步推出该计划。

《The Edge》财经日报指出，eTRS将通过认购盟汇集团最近私下配售10%缴足资本的新股，成为该公司的主要大股东。

合标游客退款合约

上周五，盟汇集团宣布私下配售新股于第三者土著公司，但并未说明认购公司。

不过，eTRS董事Y.T罗（译音）也已坦言，将认购盟汇集团上述的私下配售股，并有信心会在该公司“扮演重要的角色”。

据述，ManagepayGTF并非唯一投标游客退款计划合约的公司，其他竞投公司包括了艾力 斯（IRIS，0010，创业板）和瑞士GlobalBlue联营子公司、Salihin顾问集团私人有限公司和西班牙Innova Tax Free集团联营子公司，以及Islah Wawasan私人有限公司和爱尔兰Premier Tax Free联营子公司。

不过，Y.T罗对得标有信心，因为其联营子公司拥有强稳的现金，而且是马来西亚连锁协会（MRCA）的合作伙伴。

“此外，盟汇集团也是财务部认证的支付网关系统。”

White knight for financially-distressed IRM (Star)

Financially-distressed IRM Group Bhd will be seeing the emergence of a white knight in the form of automotive parts maker Permintex Automotive Sdn Bhd (PASB) to assist on the former’s regularisation plan, which includes a reverse takeover.

In a filing with Bursa Malaysia, the company said IRM had entered into an agreement with PASB to assist its unit, IRM Solar Sdn Bhd, to complete its 5 Megawatt solar energy farm in Perlis.

It said PASB had been identified as a potential white knight to assist IRM to regularise its financial conditions by undertaking a comprehensive regularisation plan comprising a reverse takeover and other ancillary restructuring exercises.

PASB is involved in the manufacturing and sale of precision injection moulding parts for automotive industry such as instrument panel, dashboard and bumper and other medium and small automotive parts for various car manufacturers.

PASB’s directors are namely Datuk Md Zin Bin Baharom and Ahmad Umar Bin Alisan.

PDZ Holdings Berhad confirmed business dealings (Edge)

PDZ Holdings Berhad confirmed news reports that it was holding preliminary talks with some parties to explore potential business dealings.

In a statement to Bursa Malaysia today, the company said: “We confirm that the major shareholder has held preliminary talks with some parties to explore potential business dealing, but we have not, at this present time, deliberated the matter at board level as negotiations are still preliminary.”

The Edge Weekly said that the company is currently in talks with a China-based oil and gas player as well as a contractor with Petroliam Nasional Bhd for an asset acquisition exercise.

At market close today, PDZ was the most actively traded counter. It ended at an unchanged share price of 12 sen, with 191.7 million shares traded.

Destini shareholders approve Samudra Oil acquisition (Edge)

Destini Bhd's shareholders today approved the group's resolution to acquire 100% interest in Samudra Oil Services Sdn Bhd for RM80 million.

The group's managing director Datuk Rozabil Abdul Rahman told the media after Destini's extraordinary general meeting (EGM) that the acquisition would be finalised by the second quarter of this year.

"Now, we are waiting for Samudra's EGM. Hopefully, it will all go well and we hope that they are going to get the approvals by Bursa soon," said Rozabil.

Samudra Oil is a unit of Kejuruteraan Samudra Timur Bhd and is currently waiting for Bursa Malaysia to approve its EGM.

Robert Tan's PDZ in the limelight (Star)

 LOW-PROFILE tycoon Tan Sri Robert Tan Hua Choon seems to be on a roll to unlock the values of some his listed companies. His modus operandi: the entry of new shareholders that bring with them new businesses.

The 72-year-old, dubbed the elusive “Casio King”, only last month saw his Malaysia Aica Bhd (Maica) make headlines after it received a takeover offer from property developer Sunsuria Development Sdn Bhd. The move sent Maica shares sky rocketing by some 60%.

Now the buzz is around Tan’s ailing shipping firm PDZ Holdings Bhd. Market talk has it that Tan is steering PDZ into becoming an oil and gas services concern.

“PDZ is mulling the acquisition of an oil and gas services firm, which could see the emergence of a new major shareholder,” says a dealer.

Since January, PDZ shares have been traded heavily, averaging 18 million shares within that period and hitting a high of 54.5 million shares on Jan 20 alone.

It closed at 12 sen on Friday, a 50% jump from its 8 sen close on Jan 2.

This is the highest its shares have hit since May 2009.

PDZ is clearly in need of some kind of business revival. The loss-making container shipping firm is still reeling from the industry’s downturn since the 2008 economic crisis.

The shipping industry took a downturn following the 2008 economic crisis, on over capacity, high fuel costs and low freight charges.

Many shipping companies were caught, as they were unable to repay bank loans for the procurement of new vessels, and are still on the road to recovery.

According to its website, it operates six vessels covering Malaysia, Singapore, Brunei and Myanmar.

For its financial year ended June 30, 2013, it posted a net loss of RM12.45mil from a net profit of RM10.56mil the previous financial year.

PDZ attributed the loss to an impairment loss of RM8.24mil due to a vessel that it sold for scrap, and weakening freight rates due to oversupply of shipping tonnage.

The glut in the shipping industry is expected to continue on the back of the continued supply-demand imbalance caused by excess supply of tonnage.

Freight rates are expected to remain depressed this year.

“The existing container shipping industry is not doing so great. It will be hard for PDZ to make any headway in recovery,” an analyst says.
However, PDZ has a relatively clean balance sheet, being in a net cash position of close to RM16mil, which possibly makes it an attractive vehicle for new shareholders to emerge via the injection of an asset.

PDZ plans to reduce operating costs and improve operational efficiency in a bid to consolidate to a more competitive cost structure.

Another notable development at PDZ is the fact that Tan resigned from his role as chairman and director last June.

However, Tan has not sold any of his shares in PDZ, leading industry observers to speculate that he is likely to ride along with the new shareholders who come in as a result of the new asset injection.

Tan’s direct stake in PDZ stands at 19.13% although it is believed he might control more of the company through friendly parties.

His son-in-law Wong Hok Yim, who was appointed as PDZ’s non-independent non-executive director in June last year, has a deemed interest of 0.85% in the company.

Any corporate exercise involving the injection of an asset into PDZ for new shares will dilute Tan’s stake in the company.

A close associate of Tun Daim Zainuddin, Tan’s company Spanco Sdn Bhd obtained a privatised contract in 1993 to service government-owned vehicles.

Minetech said to be in talks for tie-up with Sany Group of China (Star)

Minetech, whose stock has been dominating the penny stock scene in recent weeks, could likely see a tie-up with the Sany Group, a large China company involved mainly in the manufacturing of heavy machinery.

Sources say the cooperation could be centred around the construction of a hotel and casino in Cambodia and could even go a step further should Sany decide to take up a substantial stake in Minetech, which is essentially a quarry operator.

However, executives of both companies are still discussing the matters and nothing is set in stone, sources say.

“The situation is fluid and anything can be decided at any point,” says one source.

Executive director Matt Chin Leong Choy when contacted, declines to divulge anything more than confirming that he is leaving for China tomorrow to discuss “business opportunities.”

Minetech has already confirmed that it is at the exploratory stage of discussions “with a party to undertake construction and raw material supply in relation to a casino and hotel project in Cambodia”, confirming an earlier StarBizWeek story.

Minetech finalising quarry concession talks （Edge）

Minetech Resources Bhd is in the midst of finalising negotiations for a quarry concession "in a southern state of Malaysia", the company said.

In a statement to Bursa Malaysia today, Minetech said it was also
exploring more potential collaborations with foreign parties for Minetech's quarry, premix, construction and bituminous businesses.

"For its bituminous business, the group is considering the procurement of a vessel, which is for the purpose of transporting bituminous products to overseas market.

"We have not identified the vendor of vessel as at to date," Minetech said.

Minetech's statement is in response to an unusual market activity (UMA) query by Bursa Malaysia.

Yesterday, Bursa Malaysia had issued the UMA query on Minetech following a sharp rise in the trading volume of the latter's shares.

Today, trading of Minetech shares has been suspended since since 4.17pm

Shares of Minetech will resume trading this Monday.