Latest news with #RM8.4mil
The Star
06-06-2025
- Business
- The Star
Ecomate acquires 60% stake in ICT business for RM8.4mil
PETALING JAYA: Ecomate Holdings Bhd is venturing into the information and communications technology (ICT) solutions business through the acquisition of a 60% stake in Progressive Computer Systems Sdn Bhd (PCS) for RM8.4mil. In a filing with Bursa Malaysia, Ecomate will buy the stake in PCS from Law Seng Peng, the sole director and shareholder of PCS. Upon completion of the proposed acquisition, PCS will become a subsidiary of Ecomate and Law will remain as a director and shareholder of PCS and 'continue to be involved in the daily operations of PCS.' PCS is principally involved in marketing and servicing of computers, computer-related accessories, and peripherals. It is also engaged in the sale of computer software, software development, programming services, and training on software applications. According to the exchange filing, Law has given a 'unconditionally and irrevocably, guarantees and covenants' that PCS will earn at least RM3mil in audited profit after tax for the financial year ending Feb 28, 2026 (FY26), as well as for each of the following two financial years. 'In the event that PCS shall incur loss after taxation of any amount in any financial year within the profit guarantee period, a payment of RM1.8mil representing 60% of the profit guarantee for each financial year, shall be made in full,' it noted. The purchase consideration of RM8.4mil, which implies a price-to-earnings (PE) multiple of 2.8 times based on the guaranteed profits, is at a 13.6%-19.1% discount to the indicative fair market value of PCS, and deemed the price 'fair'. Ecomate, a ready-to-assemble furniture manufacturer, said the acquisition represents 'a diversification of the existing business operations to include information and communications technology ('ICT') solutions.' Currently, Ecomate is primarily involved in the production of ready-to-assemble (RTA) furniture products including living room and bedroom furniture. With PCS projected to contribute more than 25% of the group's future net profit, Ecomate expects the acquisition to broaden its earnings base. Meanwhile, to reward shareholders, Ecomate also proposed a bonus issue of up to 358.03 million new Ecomate shares on a 1-for-1 basis, and a free warrant issue of the same amount, also on a 1-for-1 basis. Upon completion of both proposals, Ecomate's issued share capital will increase from 358.03 million shares currently to 716.05 million shares, and to 1.07 billion shares assuming full exercise of the warrants. These proceeds raised from the exercise of the warrants will be used for working capital.
The Star
26-05-2025
- Business
- The Star
TH Plantations to gain from output recovery
PETALING JAYA: TH Plantations Bhd is expected to post better earnings, given the anticipation of a recovery in output following recently normalised weather, says Maybank Investment Bank Research (Maybank IB). The planter recorded a headline profit after tax and minority interest (Patmi) of RM8.4mil for the first quarter of financial year 2025 (1Q25), which was down 67% quarter-on-quarter and eased 2% year-on-year (y-o-y). Its Patmi was watered down by unrealised foreign-exchange loss, mitigated by fair value gains on biological assets. Adjusted, TH Plantations posted a 1Q25 core Patmi of RM10.8mil that was 23% of Maybank IB's full-year forecasts. The research house had lowered TH Plantations' earnings forecasts as the 1Q25 results were slightly below expectations. 'Following our earnings cut, we lowered our target price on the stock to 54 sen from 58 sen previously,' the research house noted. Maybank IB has also conservatively trimmed TH Plantations' fresh fruit bunch growth by 4% for financial year 2025 (FY25), FY26 and FY27 respectively, which implied y-o-y growth estimates for FY25 at 1% (previously 5%) while FY26 and FY27 growth estimates were unchanged at 2% y-o-y. Meanwhile, the it has cut its FY25-FY27 core Patmi by 7% each year. It said 'earnings are sensitive to output changes due to our all-in operating cost to customer forecast of RM2,800 per tonne.' 'The group's key catalyst remains the speed of its deleveraging exercise to improve its balance sheet position,' said Maybank IB. It added that the banking group continued to earmark RM810mil of its assets for disposal as at end-March 2025.
