News - Magna Prima, Bonia, Taliworks, YNHP, Mah SIng, EG

Magna Prima: It plans to raise rm40 million via an offer of new RCPS to LTAT to fund its property development projects.

 

It had entered into a conditional subscription agreement with LTAT for 40 million new RCPS at an issue price of rm1.00 each.

In the event that LTAT chooses to fully convert all the RCPS into new Magna Prima shares, Magna Prima’s share base will increase to 375.0 million from 332.9 million currently (Aug 2014). A full conversion will see LTAT become a substantial shareholder in Magna Prima with an 11.23% equity stake.

Magna Prima intends to use the funds for its property development projects and defrayment of expenses in relation to the exercise. The group’s projects are the Istana project, the boublevard Business Park development project and the Desa Mentari development projects.

Bonia: Its long term outlook remains solid due to the group as a regional upper to mid range retailer. Bonia’s growth for the next few years from 2014 will continue to be bacjed by increasing sales volume in tandem with improved brand recognition via its inhouse brands and licenses, regional expansion of its boutique stores especially in Indonesia and Vietnam, to create better brand awareness and ongoing store refurbishment and consolidation of unprofitable outlets to improve operating efficiencies through the reallocation of resources.

Currently (Aug 2014), the group’s Indonesia and Vietnam operations are progressively contributing to the company’s top line.

Going forward, these two markets will contribute positively to the company’s bottom line over the longer term.

Other than expanding its own in house brands, the group has also been aggressively expanding its co owned brand … Braun Buffel.

Key risks for Bonia will be a regional slowdown in consumer spending and stiffer than expected competition.

Taliworks: It is establishing a JV with the EPF to acquire recurring income generating infra assets, including highway concessions.

Taliworks’ 84.62% owned subsidiary own a 51% stake in Pinggiran Infra Sdn Bhd with EPF holding the remaining 49% stake.

Pinggiran infra’s prime asset is its 65% effective stake in highway toll operator Cerah Sama Sdn Bhd, which in turn owns Grand Saga Sdn Bhd – the concessionaire for the Cheras-Kajang Highway in the Klang Valley.

YNHP: YNHP controlling shareholder Datuk Yu bought additional 420000 shares in the property company on the open market on 11 Aug 2014. On 08 Aug 2014, the also mopped up 740000 shares on the open market. Yu and his family, the single largest shareholder of YNHP, currently (Aug 2014) holds a direct and indirect 31.86% stake in the company.

Mah Sing: It has entered into an agreement to acquire an estimated 1000 acre freehold land in Seremban, NS for rm360 million cash. The tract has been earmarked for a planned township with a potential GDV of rm7.5 billion.

The proposed acquisition allows the Mah Sing group of companies to amass 1400 acres of land for expansion of its existing presence south of KL.

It will develop RM3.4bil worth of residential projects in Penang and Kuala Lumpur over the next five years. Two of the projects would be located in Penang, while another two would be in Kuala Lumpur.

In Penang, Mah Sing plans to develop The Coastal for the RM320mil Southbay City in Batu Maung and the RM750mil Ferringhi Residence Precinct 2 in Batu Ferringhi. In Kuala Lumpur, the group will launch the RM1.5bil Lakeville Residence in Taman Wahyu, Jalan Ipoh, and the RM900mil D’sara Sentral in Sungai Buloh soon.

The group’s main focus is still on the Klang Valley, where the projects are expected to contribute 60% to sales this year, followed by Johor Baru (23%), Penang (10%), and Kota Kinabalu (7%).

EG: It has already secured about RM300mil worth of orders for its printed circuit board assembly (PCBA) device used in hard-disk drive (HDD) and box-built consumer electronic products.

The HD drive PCBA devices were sold to major producers such as Western Digital, while the PCBA used in consumer electronic products went to Dyson, Oxylane, and OJ Electronics, which were branded consumer electronic products makers based in Europe.