For the longest time, FAST ENERGY HOLDINGS BHD (FAST) had been neglected due to its business being dragged by its non-profitable mould cleaning rubber sheets and LED epoxy encapsulant business, which had resulted in a loss.
In May 12 however, things had started to take a turn. The company had disposed 100% equity interest in Cape Technology Sdn Bhd, which is good for the shareholders in value creation.
Plus, in tandem with other non-profitable companies which include Oriem Technology Sdn Bhd and Techfast Precision Sdn Bhd, the 3 now-disposed or ceased subsidiaries had resulted in RM0.72 million in net losses. Investors must take note that this will no longer impact FAST going forward.
The acquisition is also consistent with KPS’ long-term business strategy of enhancing the group’s fundamentals by pursuing opportunities that would take us further on the trajectory of sustainable growth and continuous value creation,” he said.
Ahmad Faris said the expected higher market share would give KPS more strategic positioning relative to its peers.
"As this acquisition would further strengthen our core manufacturing business with the platform to move towards higher margin products, it is expected to contribute towards shaping a more robust group’s financial performance with broader earnings base and visibility, and ultimately, enhance shareholder value
With a widened array of capabilities adding to its existing competitive advantage and value proposition, Perangsang Dinamik could offer more holistic solutions to the engineering support industry, and ultimately, the machinery and equipment industry, having even broader skillsets than some of the larger players in the industry
KPS) expects to enhance its future profitability on an enlarged earnings base with the acquisition of a 100 per cent equity stake in MDS Advance Sdn Bhd via its wholly-owned subsidiary, Perangsang Dinamik Sdn Bhd, for RM85 million.
The purchase consideration of RM85 million values MDS Advance within the industry benchmark in terms of enterprise value/earnings before interest, tax, depreciation and amortisation (EV/EBITDA) ratio of 7.9 times, which will be fully satisfied by internally generated funds, KPS said in a filing with Bursa Malaysia today.
President and chief executive officer Park Hyun Chul said this would amount to a total dividend payout of RM318.4mil, translating into a dividend yield of 9.58% based on the closing share price of RM1.46 on Nov 24, 2022.
“This special dividend is intended to reward our shareholders for their continued and unwavering support,” he said in a statement.
Lim noted that being a small player in the total confectionary, sweets, biscuits, and savoury snacks category - currently worth RM4.2bil in Malaysia - Cocoaland has room to grow, especially in the healthy and functional range.
He added that F&N plans to build upon Cocoaland’s strengths and invest in the brands to introduce new portfolios such as plant-based and health & wellness products.
In the third quarter ended Sept 30, 2022, Cocoaland recorded a net profit of RM10.6mil, up from RM4.1mil a year earlier, while revenue jumped 55.8% year-on-year to RM71.7mil.
Sharing the plans in store for Cocoaland Holdings Bhd, Fraser & Neave Holdings Bhd (F&N) CEO Lim Yew Hoe said the group's long-term goal is to build the 40-year-old candy maker into East Asia's most recognisable gummy manufacturer and a leading producer of chocolate products internationally.
As at Nov 25, Cocoaland has been delisted from the Main Market of Bursa Malaysia following its acquisition and privatisation by F&N.
"With our existing good relationship with Cocoaland’s management and the injection of a fresh team of professional and experienced leaders into the company, we are optimistic about capturing future opportunities that will drive our expansion to other global and domestic markets
fast has successfully secured several contracts to deliver a range of marine fuel oils to prominent customers in various industries, and fast is aiming to fulfill the supply of 30,000 tonnes ahead of schedule.
The rise in the share prices of Top Glove Corp Bhd and Hartalega Holdings Bhd might be too little too late from being relegated from the benchmark FBM KLCI in the upcoming review of the index unless Top Glove can gain another 45 sen while Hartalega by 70 sen by this week.