KUALA LUMPUR (Jan 22): Based on corporate announcements and news flow today, stocks in focus for Thursday (Jan 23) may include the following: MPHB Capital Bhd, Digi.Com Bhd, Kim Teck Cheong Consolidated Bhd, Gadang Holdings Bhd, CapitaLand Malaysia Mall Trust, TSR Capital Bhd, LBS Bina Group Bhd and Leader Steel Holdings Bhd.

The Federal Court yesterday dismissed MPHB Capital Bhd’s wholly-owned subsidiary Kelana Megah Sdn Bhd's final appeal over the acquisition of its land by the Johor State Government and Petroliam Nasional Bhd (Petronas) to host the Petronas Refinery and Petrochemical Integrated Development (Rapid) project.

The case involves seven parcels of land measuring 2,800 acres that the company alleges were acquired at 93 sen per sq ft (psf) as assessed by a Government valuer — a mere fraction of the RM5.30 psf appraisal by its valuer.

The company had claimed a sum of over half a billion ringgit, which is the difference between the valuation and the RM115 million Petronas had paid for the land.

Digi.Com Bhd reported a 9.23% drop in fourth quarter net profit to RM342.92 million from RM377.8 million a year earlier, as the mobile telecommunication network service provider contended with a drop in prepaid revenue as postpaid income grew.

Higher depreciation, amortisation and impairment besides finance cost also curbed net profit growth during the quarter ended Dec 31, 2019.

Digi said quarterly revenue rose to RM1.68 billion from RM1.67 billion a year ago. Postpaid revenue grew 9.6% year-on-year to RM731 million while prepaid revenue declined 9.7% to RM736 million.

Digi said prepaid revenue dropped "amid impact from lower interconnect rates, moderating non-Internet prepaid services and continued postpaid conversions".

Kim Teck Cheong Consolidated Bhd said it has obtained the exclusive right to use the Gardenia trademark in Sabah, Sarawak and Indonesia, after inking two separate licence agreements with the registered trademark holders.

The first agreement will enable its wholly-owned Gardenia Bakeries (East Malaysia) Sdn Bhd to operate the business of manufacturing bread, cakes and ice cream under the trademark, as well as to transport, supply and distribute the same in Sabah and Sarawak.

The second agreement, meanwhile, means Gardenia Bakeries can do the same business in Indonesia, and will allow the company to further expand its portfolio of distribution of third party brands and products across the country.

Gadang Holdings Bhd recorded a 36.3% fall in net profit in its second financial quarter to RM10.85 million from RM17.03 million in the year-ago quarter, mainly due to fair value loss on quoted investments that amounted to RM3.2 million.

Besides that, earnings in its construction division contracted for the quarter ended Nov 30, 2019, with profit before tax (PBT) dropping 26% to RM9.3 million from RM12.49 million while the utility division’s PBT fell 48% to RM1.48 million from RM2.83 million.

The decrease in profit came despite a 17.3% rise in revenue to RM197.72 million from RM168.52 million.

For the cumulative first six months of the financial year, Gadang's net profit fell 23.5% to RM25.69 million from RM33.57 million in the previous year, although revenue grew 16% to RM345.32 million from RM297.66 million.

Sustained growth in Gurney Plaza, Penang, and East Coast Mall in Kuantan have helped CapitaLand Malaysia Mall Trust (CMMT) offset lower contribution from its Klang Valley malls that have been hit by growing competition.

Both malls collectively accounted for about 75% of CMMT's net property income (NPI), but their improved performance was not enough to stem lower occupancies and rental rates as well as downtime at Klang Valley malls, resulting in a 6% year-on-year drop in net property income for the financial year ended Dec 31, 2019 to RM202 million.

Revenue for the year dipped 2.2% to RM342.28 million against RM350.15 million a year ago, owing to lower occupancies at The Mines and Sungei Wang Plaza, as well as lower rental rates at The Mines and downtime from asset enhancement initiative  at both malls.

TSR Capital Bhd is selling its freehold land in Mutiara Damansara, Petaling Jaya measuring 5,078 sq metres for RM48.1 million.

The disposal to Inwin Properties Sdn Bhd is expected to result in a loss of RM4.03 million to TSR Capital and its subsidiaries.

TSR Capital said this is the second disposal of property by the group since August 2019, and forms part of its assets rationalization plan to monetize its investments in property assets.

LBS Bina Group Bhd has disposed of all its 9.7% equity stake in China-based Zhuhai Holdings Investment Group Ltd for HK$164.5 million (RM86.05 million).

LBS said the disposal will result in a loss of HK$4.2 million (RM2.2 million), but added that its indirect wholly-owned subsidiary Dragon Hill Corp Ltd — which held the stake — has received dividends from Zhuhai Holdings since 2014 totalling HK$20.8 million (RM10.88 million).

It added that the gross proceeds from the disposal will be used for repayment of bank borrowings and working capital purposes.

Leader Steel Holdings Bhd is acquiring a piece of freehold land in Klang for RM30.67 million to expand its manufacturing-cum- warehouse facility.

The steel products manufacturer said the 3.48 million sq ft land, currently owned by Kapar Holding Sdn Bhd, is situated at the proximity of the group’s present plant and office in Kapar.

This, it said, could assist in its business expansion plan to other regions in Peninsular Malaysia and export market, due to excellent public infrastructure and its proximity to Port Klang.