KUALA LUMPUR (Dec 20): Here is a brief recap of some business news and corporate announcements that made the headlines on Friday:
Hong Leong Investment Bank (HLIB) has concluded that the RM11 per share takeover offer for Malaysia Airports Holdings Bhd (MAHB) (KL:AIRPORT), from the consortium led by Khazanah Nasional Bhd and the Employees Provident Fund (EPF), is not fair — as it is below its valuation — but reasonable in the absence of a competing bid. The independent adviser advised shareholders of MAHB to accept the offer, as it represents a chance for them to realise their investments in MAHB. MAHB’s non-interested directors, however, concluded that the offer is both unfair and unreasonable, and have recommended that shareholders reject it instead. — MAHB takeover: Adviser recommends acceptance but independent directors disagree
Top Glove Corp Bhd (KL:TOPGLOV) returned to black with a net profit of RM5.47 million for its first quarter ended Nov 30, 2024 (1QFY2025), from a net loss of RM57.71 million in the corresponding quarter a year ago, thanks to higher sales volumes and increased foreign exchange gains. The world’s largest glove manufacturer’s revenue for 1QFY2025 surged 79.5% to RM885.89 million, from RM493.46 million in 1QFY2024. It projects its glove sales volume in FY2025 to grow 60% to 43 billion pieces, helped by the impending US tariffs on Chinese gloves. — Top Glove returns to profitability in 1Q on stronger sales
Catcha Digital Bhd (KL:CATCHA), formerly known as Rev Asia Bhd, is acquiring a 60% stake in Drive 2 Digital Sdn Bhd (D2D) for RM16.2 million, cash, marking its entry into the automotive digital media sector, with a focus on Chinese and Malay language automotive content. The acquisition is contingent upon D2D achieving profit targets of RM3.5 million in the first 12 months following the deal's completion, and RM4.2 million in the subsequent 12 months. — Catcha Digital expands into automotive digital media by investing in Drive 2 Digital
Johor Plantations Group Bhd (KL:JPG) has appointed Tg Langsat Development Sdn Bhd (TLD) as earthwork and main infrastructure contractor for its Integrated Sustainable Palm Oil Complex (iSPOC) project in Johor for RM39.04 million. The contract is deemed a related-party transaction as TLD is a wholly-owned unit of TPM Technopark, which in turn is a wholly-owned subsidiary of Johor Corporation (JCorp). Kulim (Malaysia) Sdn Bhd — a wholly-owned unit of JCorp — is the largest shareholder in JPG with a 65% stake. — Johor Plantations appoints JCorp unit as main infra contractor for Kota Tinggi palm oil project
ACE Market-listed Kawan Renergy Bhd’s (KL:KENERGY) earnings for the financial year ended Oct 31, 2024 (FY2024) hit an all-time high as net profit for the full year surged 44.5% to RM19.22 million, compared with RM13.3 million in FY2023. For FY2024, the company’s cumulative revenue grew 15% to RM113.1 million from RM98.4 million in the previous year, attributed to a stronger order book. For its fourth quarter ended Oct 31, 2024 (4QFY2024), Kawan Renergy's net profit of RM5.32 million was largely unchanged from its immediate previous quarter of RM5.31 million in 3QFY2024. Revenue increased 23.1% quarter-on-quarter to RM39.16 million, from RM31.82 million in 3QFY2024, driven by higher sales from its industrial process plants business. — Kawan Renergy posts all-time high earnings in FY2024
Mega First Corp Bhd's (KL:MFCB) executive director, Goh Nan Yang, will step down from his position effective Dec 31, upon the expiry of his employment contract. In line with his resignation, Nan Yang will also vacate his role as an alternate director to MFCB’s executive chairman, Goh Nan Kioh, who is his brother. Nan Yang, who owns a 1.34% direct stake in MFCB, has served as the company’s executive director for two decades. — Goh Nan Kioh's brother resigns as Mega First executive director after two decades
PLB Engineering Bhd’s (KL:PLB) external auditors, Grant Thornton Malaysia PLT, have expressed an unmodified audit opinion with material uncertainty regarding the group's ability to continue as a going concern. Grant Thornton highlighted the group’s and the company’s net losses of RM12.79 million and RM17.12 million, respectively, in the audited financial statements for the financial year ended Aug 31, 2024 (FY2024). It also noted that the group’s and the company’s current liabilities exceeded their current assets by RM54.79 million and RM52.18 million, respectively. — PLB Engineering’s auditor flags material uncertainty over group’s ability to continue as going concern
Bahvest Resources Bhd (KL:BAHVEST) has proposed to buy mining equipment from China-based Chengdu Mining Maintenance Technology Co Ltd for RM22.82 million, to be used to build a new gold mining processing plant. The plant is located less than 1km from the company's existing facility in Bukit Mantri in Tawau, Sabah. The commissioning of the plant is expected to commence within 12 months. — Bahvest buys mining equipment from Chinese firm to build new plant
Auditing firm HLB Ler Lum Chew said a special notice for a resolution to remove the firm as the external auditor of Smile-Link Healthcare Global Bhd (KL:SMILE) had been immediately retracted, and that is the reason why the firm did not make any written representation on the matter. HLB Ler Lum Chew was responding to an announcement by Smile-Link on Thursday that its major shareholder Smile Link Resources (M) Sdn Bhd, holding 46.36% in the company, had proposed to remove the auditing firm, following significant delays in the company's financial reporting, which have led to trading suspensions and regulatory scrutiny. — Smile-Link's auditor says removal notice retracted, threatens legal action over ‘untrue’ statement