•Komarkcorp Bhd has entered into a distributorship agreement with LKL International Bhd to sell and distribute its disposable medical grade face masks worldwide. The distributorship agreement was signed by the subsidiaries of both companies, namely Komark Mask (M) Sdn Bhd and LKL Advance Metaltech Sdn Bhd. Komarkcorp, involved in printing labels and packaging solutions, in June this year diversified into mask and personal protection equipment (PPE) manufacturing via the incorporation of Komark Mask to carry out the new business. The company currently has three operating mask lines and is about to install a further five lines within the next 60 days to cater to growing export demand.
•Kossan Rubber Industries Bhd has found 427 out of its total 7,004 employees infected with Covid-19, and it has suspended operations at one of its factories from Dec 4. This would result in an estimated 25% production loss over a two-week period. Group founder Tan Sri Lim Kuang Sia, in confirming the matter with theedgemarketscom today, said the impact from this temporary operation halt would be just 2% of its annual profit.
•Sarawak-based oil and gas (O&G) integrated support services provider Ocean Vantage Holdings Bhd is collaborating with Toyo Engineering & Construction Sdn Bhd to jointly bid for the tender for engineering, procurement, construction and commissioning (EPCC) works for an oil storage terminal project by Senari Synergy located in Senari Synergy Industrial Complex, in Kuching, Sarawak. Its wholly-owned unit Ocean Vantage Engineering Sdn Bhd signed an unincorporated consortium agreement (UCA) with Toyo yesterday. The agreement is valid until March 18, 2021.
•Kumpulan Kenderaan Malaysia Bhd (KKM) has ceased to be a substantial shareholder of Konsortium Transnasional Bhd, after selling 20 million shares, which is equivalent to a 4.96% stake, in the bus operator. According to Konsortium Transnasional, the shares were sold on Monday (Dec 14). However, the group did not disclose the transaction price. The company's share price settled at 17 sen on Dec 14, which would value the lot it sold at an estimated RM3.4 million. Post-divestment, KKM is left with 9.31 million shares or 2.31% in Konsortium Transnasional.
•G Capital Bhd’s 90%-owned subsidiary Gunung Hydropower Sdn Bhd’s has received the Sustainable Energy Development Authority’s (SEDA) nod for a higher feed-in tariff (FiT) rate for its small 10MW hydropower project in Sungai Perak, Salu. The certificate for SEDA's feed-in approval, which will increase its FiT rate from 25 sen per kWh to 28.98 sen per kWh, was received on Monday. In addition, the contract is effective from the scheduled FiT date of Dec 14 up till December 2025 while the yearly energy yield has been increased to 68 million kWh from 67.77 kWh.
•Lion Industries Corp Bhd (LICB) will take over China-based property developer Well Morning Ltd, in an RM210.35 million debt settlement by Lion Diversified Holdings Bhd (LDHB), which is currently in liquidation. Of the total RM210.35 million outstanding debt, LDHB owes RM26.79 million to Antara Steel Mills Sdn Bhd and RM35.17 million to Lion Waterway Logistics Sdn Bhd, both being subsidiaries of LICB, as well as RM148.39 million to Posim Marketing Sdn Bhd, which is a 74% indirect subsidiary of LICB. Well Morning, a wholly-owned subsidiary of LDHB, in turn wholly owns Changshu Lion Enterprise Co Ltd, a property developer based in China. LDHB was ordered by the High Court of Malaya to be wound up under the provisions of the Companies Act 2016 on Oct 15, 2019.
•Flexible packaging manufacturer Daibochi Bhd’s net profit for the first quarter ended Oct 31, 2020 (1QFY21) rose 16.51% to RM12.79 million from RM10.98 million a year ago, driven by higher sales to major consumer brands. Meanwhile, the group’s revenue for 1QFY21 grew 2.7% to RM156.68 million from RM152.56 million, led by contributions from packaging sales in the Malaysian market, which expanded 5.1% to RM88.5 million from RM84.2 million previously. The group did not declare any dividend for this quarter.
•Mah Sing Group Bhd is considering listing its manufacturing division — which includes its new rubber glove business — in Hong Kong. Mah Sing executive director Datuk Steven Ng said the group is exploring the listing of its manufacturing division within the next five years. Ng said the group’s manufacturing division is currently 100% owned by Mah Sing and would be under separate management under the new tentative listed entity. The group’s manufacturing division also has aims of producing other medical devices, which will be parked under the entity if it ends up being listed.
•OKA Corp Bhd has temporarily shut its Senai factory in Johor after two of its workers tested positive for Covid-19. The closure will be until Dec 21. The precast concrete products manufacturer with a 200-strong workforce said today that the two patients are now under medical care at a government hospital. The capacity loss from the temporary closure is estimated to be less than 0.7% of the group’s total annual output, it said. The Senai factory, it said, is one of five factories the group owns.
•* TA Enterprise Bhd (TAE)* said it has received a notice of an unconditional mandatory takeover offer from Datuk Tony Tiah Thee Kian to acquire all remaining ordinary shares in TAE not already owned by him at a cash offer price of 65.5 sen each, after Tiah and persons acting in concert with him triggered the creeping threshold, whereby their collective shareholdings in TAE will be increased from 42.36% to 59.78%. Separately, the group announced that it has received valid acceptances of 5.02 billion offer shares or 94.38% of the total number of issued shares in TA Global Bhd (TAG) on its conditional voluntary offer for shares of the property developer.
•* Widad Group Bhd* has inked a memorandum of collaboration with Rinani Dynamic Sdn Bhd in the distribution, marketing and selling of the Covid-19 vaccine known as Vxa-Cov2-1 and other products developed by US-based Vaxart Inc in Malaysia. Widad said Rinani on Nov 29 was appointed by Hong Kong-based Majoritas Global Ltd as its exclusive partner in Malaysia, to negotiate with relevant authorities and parties on the terms and conditions for testing, evaluating, placing on the market, contracting, financing and purchasing of the vaccine and other products in Malaysia.
•* Top Glove Corp Bhd's* executive chairman Tan Sri Dr Lim Wee Chai bought a total of 3.1 million shares in two transactions in his own capacity on the open market yesterday. The block of shares cost him RM19.98 million. Some 1.56 million shares were bought at RM6.39 per share, while another 1.54 million shares were transacted at RM6.49 per share. In less than a week, Lim, who is also the controlling shareholder, has spent RM49.75 million on buying Top Glove shares. He bought 4.28 million Top Glove shares for RM29.77 million last Thursday. Lim's direct interest is at 26.17% and indirect stake is at 8.63%. Besides Lim, two other parties also mopping up shares in the world's largest rubber glove maker on the open market were Tropicana Corp Bhd and Top Glove itself. Tropicana announced that it spent an additional RM20.05 million to buy 3.07 million Top Glove shares via its wholly-owned subsidiary Desiran Reality Sdn Bhd yesterday. Top Glove also bought back some 576,900 shares worth RM3.63 million at RM6.30 per share yesterday. The group has spent RM123.5 million on share buy-back so far this month. In contrast, the Employees Provident Fund (EPF) continued to trim its stake in Top Glove. EPF disposed of a total of 846,400 shares last Thursday, after the provident fund sold 3.42 million shares on Dec 9 and another 12 million shares on Dec 8.
•In response to an unusual market activity (UMA) query posed by Bursa Malaysia, Guocoland (Malaysia) Bhd said the group is not aware of any corporate development, rumour or report concerning its business, affairs and possible explanation that would have caused a spike in its share prices.
•* Fraser & Neave Holdings Bhd (F&N)* announced it is buying three food and beverage (F&B) companies — Sri Nona Food Industries Sdn Bhd, Sri Nona Industries Sdn Bhd and Lee Shun Hing Sauce Industries Sdn Bhd — for RM60 million, from Siew Yun Sing and Tong Saw Man. The three companies mainly make and sell rice cakes (ketupat), condiments (oyster sauce and paste), beverages (ginger tea powder), desserts (pudding and jelly powder), and jams and spreads under the “NONA” and “Lee Shun Hing” brands.
•* George Kent (Malaysia) Bhd’s* net profit for the third quarter ended Oct 31, 2020 (3QFY21) was kept steady at RM10.65 million, a marginal 4% higher than the RM10.26 million it made a year ago, underpinned by strong water meter sales. Meanwhile, revenue rose 8.22% to RM78.91 million from RM72.91 million.
•* United Malacca Bhd* posted a net profit of RM7.43 million for the second quarter ended Oct 31, 2020 (2QFY21), down from RM36.89 million a year ago, as the previous year registered a gain of RM49.3 million from the disposal of non-current assets held for sale. Its revenue meanwhile, rose 27% to RM97.95 million from RM76.99 million previously, amid higher average crude palm oil (CPO) and palm kernel prices. The group declared a first interim dividend of three sen per share, to be paid on Feb 4, 2021.
•* Econpile Holdings Bhd* wholly-owned subsidiary, Econpile (M) Sdn Bhd, has bagged an US$85.7 million (RM347.6 million) contract from MMC International Inc Ltd to undertake piling and substructure works for an integrated entertainment complex in Phnom Penh, Cambodia. The project will be completed within 30 months from the date of commencement.
•* Deleum Bhd* has confirmed that two senior executives working for the company's subsidiary, Deleum Primera Sdn Bhd (DPSB), were interviewed by the Malaysian Anti-Corruption Commission (MACC), as reported by theedgemarkets yesterday. It said the relevant senior executives are currently assisting MACC with its investigation into an alleged illegal scheme. It revealed its internal investigations discovered that the scheme had caused loss to DPSB, as set out in its Statement of Claim filed on Nov 5, 2020.
•* Uzma Bhd*, via its subsidiary Setegap Ventures Petroleum Sdn Bhd (SVP), has secured a two-year contract extension worth RM200 million from Petronas Carigali Sdn Bhd for the provision of coiled tubing and services (CTU). The contract was originally awarded to the company in 2015. The extension period is from Dec 1 this year until Nov 30, 2022.
•* Apollo Food Holdings Bhd* hopes to resume operations on Dec 18 or earlier, once it has completed the disinfection of its factories to curb the spread of Covid-19, following the closure of two premises of its wholly-owned subsidiary Apollo Food Industries (M) Sdn Bhd, which is based in Larkin. It said it had taken stringent precautionary measures including the temporary ceasing of operations from Dec 9, to test employees at its premises, as well as for disinfection purposes.
•IHH Healthcare Bhd said it is ready to administer the coronavirus vaccine, once they are rolled out in the 10 countries it operates in. Its managing director and CEO Dr Kelvin Loh Chi-Keon said the company has a trained staff count of 55,000 across 80 hospitals it runs from Turkey to Singapore, as well as cold-storage facilities required to store the shots.
•Bursa Malaysia Bhd's Bursa Malaysia Derivatives (BMD) said it will relaunch the Mini FTSE Bursa Malaysia Mid 70 Index Futures (FM70) contract, which will incorporate several amendments to the contract specifications. The revamped FM70 contract will be made available to traders from Dec 14. Launched in 2018, FM70 is a cash-settled ringgit-denominated futures contract which tracks the FTSE Bursa Malaysia Mid 70 Index as its underlying instrument.
•Guocoland (Malaysia) Bhd group managing director Datuk Edmund Kong Woon Jun is resigning from his post effective Jan 1, 2021, after being at the helm for four years. The group said Kong is resigning to “pursue other business opportunities”. The group has yet to announce a successor to Kong.
•JHM Consolidation Bhd is acquiring a 5.59ha vacant leasehold land in Penang for RM27.06 million, cash, to expand its business into the manufacturing of telecommunication equipment.
JHM said the acquisition of the land is to enable the company to expand its business into telecommunication equipment manufacturing industries that serve multiple multinational corporations in North American, Europe and Asia, tapping into the growing demand for Internet of Things application, as well as Cloud/Data Center.
•Ipmuda Bhd, which was slapped with an unusual market activity query by the bourse earlier today, highlighted recent changes in its board of directors, substantial shareholders’ shareholdings, as well as contract wins in its response to Bursa Securities.
Ipmuda said Tan Sri Abu Sahid Mohamed had ceased as its substantial shareholder on Dec 3, following the disposal of 2.55 million shares by Maju Holdings Sdn Bhd, as well as changes in shareholdings of parties related to the businessman, namely Maju Holdings, Beroz Nikmal Mirdin and Nurhaida Abu Sahid. Ipmuda also noted that its board had fixed the issue price for the first tranche of its private placement exercise at 56 sen per share earlier this week, and that it had bagged an engineering, procurement, construction and commissioning (EPCC) contract worth RM78 million from Coara Marang Sdn Bhd in September.
•It also pointed to changes in its board of directors in June, when Beroz Nikmal was appointed as executive chairman in place of Abu Sahid, while Jeefri Muhamad was appointed as chief executive officer, following the resignation of Datuk Sim Choo Thiam as managing director. Ekovest Bhd’s mandatory general offer (MGO) to buy out shares in durian planter PLS Plantation Bhd at 95 sen apiece must be a good deal, judging by the overwhelming acceptance to the offer. Minority shareholders who collectively held 122.96 million shares or a 33.85% stake, have accepted the offer. This has bumped up Ekovest’s shareholding in PLS to 91.24%. This block of shares is valued at RM116.8 million at the offer price. Additionally, the construction group also holds 74.91% of PLS’ warrants, following the closing of the MGO at 5pm today.
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Kossan briefing update
1. 427 workers are COVID-19 positive. Kossan shared that 427 of its employees are tested positive. Note that Kossan has started testing its 7004 workers from 4-10 December.
2. Action taken by Kossan The Company has transported the positive cases to hospitals as per Ministry of Health’s instruction. A thorough disinfection of all areas where the affected individuals have been present has also been carried out. For those under quarantine due to close contact, a second PCR test will be done on 16 and 17 Dec with the result to be known on 18-Dec.
3. Plans to test 20% of its workers every 2 weeks going forward. The Company believes that this is necessary as all of its employees who are tested COVID-19 positive are asymptomatic.
4. Accommodation space for workers exceed ILO standard Kossan shared that its average accommodation space per worker is 46 sq ft. This is above the requirement of 38.75 sq ft per worker set by International Labour Organization (ILO).
5. About 1% of total annual output volume affected. 25% if its capacity is affected for 2 weeks. This works out to be around 0.96% of total annual output. Earnings impact is estimated to be around 2% of FY20 earnings.
