Monday 9 June 2014

UPdate

Eng Kah - Substantial Shareholder Emerged

Tan Thiam Hock emerged as a substantial shareholder in Eng Kah Corp, has dismissed any potential alliance between the manufacturer of personal care and household products and privately held Alliance Cosmetics Group which Tan founded.

 

He emerged with a 5.03% stake in Eng Kah Corp.

ACG owns the Silky Girl, Stage and SG Men Brands and distributes. ACG is currently (June 2014) a customer of Eng Kah, contributing several % to its revenue. Private equity funds Ekuiti Nasional Bhd and Navis Capital Partners own an 80% stake in ACG. While Tan is no longer the head of ACG which he has a seat on the board.

Its revenue in FY2013 was the lowest in the past five years while profit also came in second lowest slightly above FY2009’s.

At current price (June 2014), it is trading at a 21.48 times to FY2013 earnings.

As at March 2013, it had zero borrowings and had a net cash of rm17.8 million.

It had a 30:70 JV with Cosway China Co Ltd. Cosway Malaysia is currently (June 2014) its major customer.

Other major shareholders of Eng Kah include CAM-GTF Ltd and Raffles-Asia Investment Co, which held a 9.59% stake and 5.31% stake respectively as at May 5 2014. Ewe Eng Kah and Neoh Lay Hwa holds 39.55% stake in the company.

Update:

Trader Corner - AMPROP

A clear breakout of rm1.13 resistance would signal an uptrend continuation, targeting rm1.32 followed by rm1.55-rm1.58 level. Support is at RM1.02 followed by em0.965.

PMI: PN17 outfit PMI may be looking to sell its past property – a vacant land in Jalan Mayang near KLCC for some rm32 million cash.

PMI is left without a business and its only property asset left is the Jalan Mayang land.

MUI and PMI are controlled by Tan Sri Khoo Say Peng, who owns a 47.67% stake in the former and 68.27% in the latter. PMI owns a 13.23% stake in MUI.

On May 0 2014, PMI submitted to Bursa Malaysia to seek an extension of time to submit its regularization plan after being slapped with PN17 by the authority in May 2013. It was still awaiting the decision from Bursa with regard to the application.

PMI was bleeding for five consecutive quarters with hefty borrowings of rm86.62 million as at March 31 2014.

Yinson: An offshore production and support services provider announced that its latest floating production storage and offloading vessel (FPSO), PSTC land Son has produced its first oil in 06 June 2014.

The achievement follows its earlier accomplishment in Aug 2013 when the group’s first floating FSO produced its first condensate within the schedule of client.

The Lam Son project is a 49:51 JV between Yinson and PetroVietnam Technical Services Corp for the provision and chatering of the FPSO with a total contract value of up to USD738 million.

On May 2014, the group proposed a rights issue that will raise rm568 million. The group will utilize the rights issue proceeds for expansion activities and repayment of borrowings to reduce their current net gearing.