All Positive.....Profit.....dividend ...good management etc.....Vacuum anything below 0.28.......moving towards 0,37 to 0.42......and highly likely will move higher after that...All the best...
Is it the waste management plant so powerful that contributing the great reduction of material costs by mixing DMMA with MMA in the production of cast acrylic sheets?
News: Thursday, 30 July 2015
KUALA LUMPUR: Asia Poly Holdings Bhd has proposed a rights issue and a special bumiputra issue with the aim of raising funds to retire part of its borrowings and to set up a waste management plant, as well as complying with the bumiputra equity requirement.
In a filing with Bursa Malaysia, the cast acrylic sheet manufacturer proposed a two-call 2-for-1 rights issue along with free detachable warrants on a 1-for-3 basis.
The ACE Market company, whose share price has more than tripled since the year started, also proposed a special issue of up to 15% of its enlarged issued and paid-up capital to bumiputra investors to be recognised by the International Trade and Industry Ministry.
The proposed exercise, among others, allows the company to raise capital without incurring interest costs, issue new Asia Poly shares without diluting the existing shareholders’ equity interest, and adhere to the 12.5% bumiputra equity requirement.
The issue price of 10 sen per rights share will be payable in two calls - first call of 5 sen per rights share to be payable in full on application and second call of 5 sen per rights share to be payable via capitalisation of the share premium and retained earnings of the company. Entitled shareholders won’t have to fork out more cash after paying for the first call.
The warrants, meanwhile, will have an exercise price of 10 sen per warrant.
On the proposed special bumiputra issue, Asia Poly noted that the Securities Commission, in a letter dated April 23, had given it 18 months (by Oct 22) to meet the 12.5% bumiputra equity requirement. As at Dec 12, 2014, bumiputra investors held only 0.63% equity interest in the company.
Based on the first call of 5 sen per rights share and an assumed issue price of 22.5 sen per bumiputra share, Asia Poly expects the exercise to raise total gross proceeds of between RM14.8mil and RM17.69mil.
Of the proceeds, it plans to use RM8.9mil to RM11.8mil to repay bank borrowings, RM3mil to set up a waste management plant and RM2mil for working capital.
Asia Poly said the group had total bank borrowings of about RM18.45mil as at July 15. At the prevailing interest rate of the group of about 4.75% per year, it expects interest savings of about RM0.56mil per annum as the result of repaying the bank borrowings.
On the waste management plant, Asia Poly, which operates a factory in Klang, said the plant would allow it to break down and depolymerise the scraps/strips from polymer units to monomer units which are known as depolymerised methyl methacrylate monomer (DMMA).
“The DMMA will have an average purity of 96% to 98% and can be used in the group’s own production of cast acrylic sheets, where the DMMA can be mixed with MMA to produce new cast acrylic sheets,” it said.
The cost of DMMA is cheaper than MMA by 20% to 30%. By mixing DMMA with MMA in the production of cast acrylic sheets, the Asia Poly group will be able to reduce the total cost of raw materials and thus improve its gross profit margin.
It said the waste management plant would have a production capacity of up to 100 tonnes per month, which will be able to handle the recovery of 40 tonnes of scraps/strips per month.
Asia Poly shares have surged more than 40% since mid-June, and earlier this week reached the highest closing price (76.5 sen) in years. The counter closed unchanged at 75 sen on Thursday.
very good worr....very strong support........0.27 closing......they ask you to sell so they can buy at 0.27......ha..ha..ha.....this month can. fly very high worrrr.....ha...ha...ha...buy...buy..buy..
Old news. 2015 news post here for what? Anyway, the price has no movement at all. Talk much also useless. Hahaa.. go buy wtk better. Tmr sure rebound!!
The company delivered very good results in last QR. Don't know what would happen in the coming QR. At least, we are not hoped for miracle to happen without something to rely on la.
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Posted by tklim > 2016-05-17 15:27 | Report Abuse
Buy 0.37 better....after that limit up to 0.77....ha..ha.....ha....