Sentral REIT, Vstecs, Dufu Tech, MNRB, Mega First, Ivory Properties, Paragon Globe and Sarawak Cable

09/05/2024

KUALA LUMPUR (May 8): Here is a brief recap of some business news and corporate announcements that made the headlines on Wednesday:

Sentral Real Estate Investment Trust (KL:SENTRAL), or Sentral REIT, posted a 30.29% increase in its net property income in the first quarter ended March 31, 2024 (1QFY2024) to RM38.15 million from RM29.28 million a year ago, on higher contribution from its key properties. Gross revenue rose 27.58% to RM48.12 million from RM37.71 million. However, net income grew at a slower pace of 12.63% to RM19.89 million from RM17.66 million, due to higher finance costs and fees for its trustee and manager. Sentral REIT’s 1Q net property income rises 30% but finance costs weigh

Vstecs Bhd’s (KL:.VSTECS) wholly-owned subsidiary Vstecs Ku Sdn Bhd has been picked as Amazon Web Services’ (AWS) first distributor in Malaysia. Vstecs will offer AWS’ portfolio of highly scalable and cost-effective cloud services, including computing, storage, databases, analytics, networking and application services to enterprises in the private and public sectors in Malaysia. Amazon Web Services picks Vstecs as first distributor in Malaysia

Dufu Technology Corp Bhd’s (KL:DUFU) net profit for the first quarter ended March 31, 2024 (1QFY2024) fell by 59.3% year-on-year to RM4.43 million or 0.8 sen per share from RM10.88 million or 2.1 sen per share on lower revenue and higher overhead costs. Quarterly revenue shrank by 22% to RM57.86 million in 1QFY2024 from RM74.18 million a year ago due to lower sales in its hard disk drives (HDD) components. The group said it is navigating the tail-end of an unprecedented downturn in the storage market. Dufu Tech 1Q net profit falls 59% mainly due to lower HDD components sales

MNRB Holdings Bhd’s (KL:MNRB) net profit more than doubled year-on-year (y-o-y) in the fourth quarter, thanks to lower insurance expenses and higher investment income, sending its shares surging to an all-time high. Net profit for the three months ended March 31, 2024 (4QFY2024) stood at RM232.63 million or 29.71 sen per share versus RM94.95 million or 12.12 sen per share a year ago, MNRB said. Revenue for the quarter rose 28% y-o-y to RM816.79 million from RM637.97 million. Profit for the full year (FY2024) tripled to a new high of RM428.34 million from RM142.65 million in FY2023, while revenue increased 21.23% to RM3.6 billion from RM2.97 billion a year ago. MNRB logs record profits from lower insurance expenses, higher investment income

Mega First Corp Bhd (MFCB) (KL:MFCB) is buying a 64% stake in CSC Agriculture Holdings Sdn Bhd, a company that is involved in plantations and the wholesale of fruits and vegetables, for RM25 million. The group is buying CSC Agriculture from existing shareholders, namely CSC Chin Family Sdn Bhd, Chin Boon Tak, Chin Boon Ching and Chin Boon Thiam. The group, however, did not share its rationale for the acquisition. Mega First buys 64% stake in CSC Agriculture for RM25 mil

Practice Note 17 (PN17) company Ivory Properties Group Bhd (KL:IVORY) said it had been granted a restraining order by the High Court of Malaya in Penang against its creditors

including winding up, execution and arbitration from its creditors. The three-month restraining order from April 19, 2024 is to enable Ivory Gleneary Sdn Bhd (IGSB), a wholly-owned subsidiary of Ivory Properties, and its creditors to formalise the proposed scheme of arrangement and thus allow for the extension of time to submit the company’s regularisation plan to get out of the PN17 status. Ivory Properties gets three-month restraining order to avoid winding up proceedings by creditors

Paragon Globe Bhd (KL:PGLOBE) is selling part of a parcel of freehold land it had just acquired in the district of Plentong, Johor Bahru, for RM238.32 million. It had just completed the purchase of the land, measuring 104.5 acres (42.29ha), for RM71.5 million in November 2023. It is now selling 47.86 acres of that to Bridge Data Centres Malaysia IV Sdn Bhd. Of the proceeds, Paragon Globe will use RM94.47 million to build roads and infrastructure on the plot, RM57 million to repay bank borrowings, RM26.76 million to fund purchases of other lands, RM38 million to fund ongoing projects and RM21.7 million for working capital. Paragon Globe expects a net pro forma gain of RM68.47 million, which is expected to increase its net assets per share to 49 sen from 40 sen. Paragon Globe to sell part of JB land it just bought for RM238 mil

Sarawak Cable Bhd (KL:SCABLE) will have to go back to the drawing board and look for a new white knight to regularise its financials.The PN17 company announced that the Memorandum of Agreement it entered with Serendib Capital Ltd has fallen through. Both parties were said to be “unable to agree upon an exclusive working relationship governed by a Memorandum of Agreement entered on Dec 29, 2023”. The loss-making cable manufacturer said it would provide further updates if there is any development regarding this matter. Sarawak Cable needs a new white knight as ‘resuscitation exercise’ falls through

OTHER NEWS