Salcon, Supermax, MAHB, Pentamaster, Solarvest, Scientex, Globetronics, Mr DIY, MCE, Kerjaya Prospek, MAA, KNM and Annum

10/05/2024

KUALA LUMPUR (May 9): Here is a brief recap of some business news and corporate announcements that made the headlines on Thursday:

Salcon Bhd (KL:SALCON) said Envitech Sdn Bhd, a 60%-owned subsidiary of Salcon Engineering Bhd, has been awarded a job by Rantau Urusan (M) Sdn Bhd for the design and construction of a sewerage treatment plant in Durian Sebatang, Hilir Perak, Perak. The contract is valued at RM9.7 million with a contract period of 20 months and will cater to a population of 54,000 upon completion. Salcon unit clinches RM9.7m sewerage treatment plant job

Supermax Corp Bhd (KL:SUPERMX) is acquiring the remaining 33% equity interest in its 67%-owned subsidiary Supermax Healthcare Canada Inc (SHCI) for C$5.5 million (RM18.96 million) cash. Supermax is acquiring the stake from Sylvain Bergeron, who has been a business partner of the company since 2004 when Supermax’s founder and managing director Datuk Seri Stanley Thai Kim Sim partnered with Bergeron to start the Canadian branch of Supermax. SHCI is principally involved in the marketing, importing and distribution of latex gloves for the Supermax group in Canada. Based on the audited accounts of SHCI as at June 30, 2023, the company incurred a net loss of C$15.3 million, while its net book value stood at C$73.6 million. Supermax acquires remaining stake in 67%-owned loss-making Canadian unit for RM18.96 mil cash

Malaysia Airports Holdings Bhd (KL:AIRPORT) (MAHB) on Thursday named former Malaysian Aviation Commission (Mavcom) executive chairman Dr Nungsari Ahmad Radhi as its director effective immediately. Nungsari, an economist by training who currently sits on Prime Minister Datuk Seri Anwar Ibrahim’s Policy Advisory Committee, is appointed as non-independent and non-executive director at Malaysia Airports. Nungsari, 64, served as commissioner of Mavcom since its inception in 2015 and, subsequently as its executive chairman from July 1 2018 till April 10 2020, according to MAHB. Former aviation regulator chairman Nungsari joins Malaysia Airports’ board

Pentamaster Corp Bhd (KL:PENTA) reported an 8.92% year-on-year (y-o-y) decline in its net profit for the first quarter of 2024 (1QFY2024) as slightly higher revenue was impacted by lower other income and share of loss of associates. Net profit for 1QFY2024 fell to RM19.37 million or 2.72 sen per share, down 8.92% from RM21.27 million or 2.99 sen per share in the same period last year. Revenue rose by 3.32% y-o-y to RM170.79 million, up from RM165.31 million, which Pentamaster attributed to higher contribution from its factory automation solutions (FAS) segment. Notably, revenue contribution from its automated test equipment saw a major decline by RM38.2 million to RM73.2 million in 1QFY2024 from RM111.4 million in the previous corresponding quarter. Pentamaster’s 1Q earnings fell 8.9% amid lower contributions from automated test equipment

Solarvest Holdings Bhd (KL:SLVEST) has secured a contract worth RM40.4 million to install rooftop solar photovoltaic (PV) systems at eight sites in Malaysia owned by Scientex Bhd (KL:SCIENTX) with a cumulative capacity of 21 megawatt peak. The project is slated to commence in May 2024. By January 2025, Solarvest said it is expected to generate enough renewable energy to offset approximately 14,000 tonnes of CO2 equivalent (tCO2e) annually by Scientex. Solarvest bags RM40.4m contract from Scientex to install rooftop solar PV systems

Globetronics Technology Bhd’s (KL:GTRONIC) net profit jumped 73.42% year-on-year for its first quarter ended March 31, 2024 (1QFY2024), thanks to a foreign exchange (forex) gain and higher interest income. Net profit for 1QFY2024 rose to RM5.72 million from RM3.3 million in the same period last year. It recorded a forex gain of RM1.8 million during the quarter, as opposed to a forex loss of RM65,000 previously, and interest income of RM1.3 million, versus RM900,000 previously. Revenue, however, slipped 9.74% to RM29.9 million from RM33.13 million in 1QFY2023, dragged by lower volume of products sold to some of its customers. Globetronics reports 73% jump in 1Q profit on forex gain, higher interest income

Mr DIY Group (M) Bhd (KL:MRDIY) said its net profit rose 13% in the first quarter from a year earlier, thanks to sales from new stores, while margins expanded as supply chain disruption and freight costs eased. Net profit for the three months ended March 31, 2024 rose to RM144.88 million from RM127.77 million in the same quarter a year ago. Revenue climbed 9.2% to RM1.14 billion from RM1.05 billion. Gross profit margin rose 1.5 percentage points year-on-year to 45.8%. The group declared a first interim dividend of one sen per share or about RM94.5 million for FY2024, to be paid on June 21. Mr DIY 1Q net profit rises 13% on sales from new stores, higher margins; pays one sen dividend

MCE Holdings Bhd (KL: MCEHLDG) said Brahmal Vasudevan has emerged as a substantial shareholder with a 5.02% indirect stake in the automotive parts and accessories manufacturer. Brahmal held 6.2 million shares in MCE via Creador Conscienta Ltd, which raised its stake beyond 5% following the acquisition of 100,000 shares earlier on Thursday. MCE’s other substantial shareholders include Dulcet One Holdings Sdn Bhd (19.1%), followed by Woo Chiew Loong (8.9%). Creador’s Brahmal emerges as substantial shareholder of MCE Holdings

Kerjaya Prospek Property Bhd (KL:KPPROP) will jointly develop a piece of freehold land in Aspen Vision City, Batu Kawan, Penang into a mixed development that will include a hotel and serviced apartments. The land, which measures 221,198 sq feet and has a net book value of RM25.1 million, will be developed by a 70:30 special purpose vehicle (SPV) owned by Kerjaya Prospek Property’s wholly-owned Kerjaya Property JV Sdn Bhd (KPJV) and Aspen Vision City Sdn Bhd (AVC), the master developer of Aspen Vision City. AVC will transfer the land to the SPV for the project. In return, AVC will be entitled to receive RM46.14 million from the SPV. Kerjaya Prospek Property to jointly develop Penang plot with Aspen group

MAA Group Bhd (KL:MAA), a substantial shareholder of KNM Group Bhd (KL:KNM), has extended a RM13.5 million loan to address the working capital requirements of the Practice Note 17 (PN17) company. The loan, bearing an interest rate of 12% per annum, was provided to KNM’s wholly-owned subsidiary, KNM Process Systems Sdn Bhd (KNM PS). The loan’s duration does not exceed 12 months from its disbursement date. MAA loans RM13.5 mil to KNM for working capital

Annum Bhd (KL:ANNUM), formerly known as Cymao Holdings Bhd, will hire a new audit firm to conduct a special audit on its revenue after its external auditor Messrs SBY Partners PLT said it cannot verify the figures Annum reported despite performing additional audit procedures. Annum, which is involved in the manufacturing of wood-based products, just hired SBY in March this year after approaching 31 other auditors who turned down the job. Most had cited resource constraints, according to the group. SBY, however, had expressed a disclaimer of opinion on Annum’s financial statements for the 18 months ended June 30, 2023, after it failed to obtain sufficient evidence to verify the group’s intangible assets of RM153.62 million; the value of its Smart Agriculture IOT System (SAIOT) of RM53.62 million; and revenue from its trading of plywood of RM197.34 million, as well as its wholesale goods of RM50.3 million. Annum plans special audit after newly hired auditor declines to vouch for its financials