Hap Seng, Tomei, Hong Seng, Revenue Group, CSH Alliance, Ageson, Teladan Setia, SFP Tech and Kumpulan Kitacon

KUALA LUMPUR (May 12): Here is a brief recap of some corporate announcements that made news on Friday (May 12) involving Hap Seng Consolidated Bhd, Tomei Consolidated Bhd, Hong Seng Consolidated Bhd, Revenue Group Bhd, CSH Alliance Bhd, Ageson Bhd, Teladan Setia Group Bhd, SFP Tech Holdings Bhd and Kumpulan Kitacon Bhd.

Hap Seng Consolidated Bhd is in discussions with Mercedes-Benz Malaysia Sdn Bhd (MBM) to shift from its present dealership distribution model to an agency model. This came after Hap Seng’s unit Hap Seng Star Sdn Bhd and MBM inked an MOU to commence negotiations over the proposed business model change. The MOU is to remain effective for six months unless either party issues a notice of early termination. While specifics behind the shift in business model were not disclosed, the shift to an agency model proposes the removal of middlemen — dealerships — in reaching out to the market. Looking elsewhere, MBM’s counterparts have already embarked on a similar transition.

Gold prices still have room for increase despite the retail price of the yellow metal having risen three times in 2023, said gold and jewellery brand Tomei Consolidated Bhd. Its managing director Datuk Ng Yih Pyng, however, said the company does not forecast gold prices due to current market uncertainties, but is confident that the value of gold will stay positive in the market. Meanwhile, its net profit for the first quarter ended March 31, 2023 (1QFY2023) declined 24.75% to RM11.87 million from RM15.77 million in the same quarter a year earlier, dragged by higher operating overheads. Quarterly revenue, meanwhile, increased marginally to RM237.73 million from RM234.15 million.

In less than six months after acquiring a controlling 51% stake in Innov8tif Holdings Sdn Bhd in January to venture into the digital industry, Hong Seng Consolidated Bhd is offloading the stake to Revenue Group Bhd — citing its lack of experience in the digital business as the reason. The RM36 million disposal came prior to Hong Seng's payment of the balance consideration of RM24.41 million for the stake. It has paid only RM3.36 million of the RM30.86 million price tag so far, of which RM3.35 million would be retained as security performance of Innov8tif Holdings' key management personnel. Hong Seng expects to pocket a gain of RM5.15 million from the disposal of the stake to Revenue Group for RM36 million.

Ageson Bhd's subsidiaries and Koperasi Belia Nasional Bhd (Kobena) have mutually agreed to terminate three MOUs in relation to a vending machine business and the sale and development of a parcel of land in Gombak. Ageson said two MOUs entered into by its indirect units Ageson Retails Sdn Bhd (ARSB) and Ageson Net Sdn Bhd (ANSB) with Kobena concerning the sale of 4,000 Internet-of-Things-enabled vending machines and/or retail fridges by ARSB to Kobena for RM120 million, and the appointment of ANSB as the operator of Kobena's vending machine business, were ended. When announcing the vending machine deal last October, Ageson said the new venture was expected to rake in RM2.3 billion in annual revenue.

Meanwhile, another MOU entered into by Ageson's 99%-owned indirect subsidiary Solidvest Properties Sdn Bhd (SPSB) and Kobena, for SPSB to sell and develop a 9.33-acre piece of freehold land to Kobena — a conglomeration of cooperatives nationwide with almost 35,000 members — was also called off. Kobena was supposed to buy the land from SPSB for RM35 million, and then appoint the company to develop landed homes with a gross development value of RM95.2 million on the parcel. The MOUs were terminated as the parties were unable to agree to and finalise the terms of the respective deals. Ageson's subsidiaries had entered into the MOUs with Kobena between September and October last year.

Teladan Setia Group Bhd’s net profit fell 12.28% to RM8.31 million for the first quarter ended March 31, 2023 (1QFY2023) from RM9.47 million in 1QFY2022, mainly due to higher administrative expenses. Revenue, in contrast, increased by 4.6% to RM61.61 million from RM58.98 million, mainly derived from Taman Desa Bertam Phase 3A and 3B and Taman Bertam Heights Phase 1B, as well as the new launching of Taman Desa Bertam Phase 4A. This year, it plans to launch properties with an accumulated gross development value (GDV) of RM1.1 billion. This includes projects with GDV of RM535.5 million in Melaka and RM574.5 million in a new high-rise service apartment project in Seri Kembangan, which is situated near the Serdang KTM station and the Mines Shopping Centre.

SFP Tech Holdings Bhd's net profit rose 16.47% to RM10.1 million for the first quarter ended March 31, 2023 (1QFY2023) from RM8.67 million a year ago, underpinned by higher revenue in its mechanical assembly segment. It said quarterly revenue had climbed 93.4% to RM34.61 million from RM17.9 million in 1QFY2022 with the mechanical assembly segment accounting for 74.45% of total revenue. SFP Tech had its debut on the Ace Market of Bursa Malaysia in June 2022 and the company joined the billion-ringgit club after its share price surged more than 480% in less than six months upon listing. The group did not declare any dividends for the quarter under review.

Kumpulan Kitacon Bhd has won a RM101.5 million contract for construction work pertaining to a residential development in Gombak, Selangor. The job won by its unit Kitacon Sdn Bhd from GLM Emerald West (Rawang) Sdn Bhd, involves the main building and infrastructure works of the development. It said the construction work is split into two phases: Phase 10A which comprises 161 units of two-storey terrace houses and an electrical substation, and Phase 10B which comprises 139 units of two-storey terrace houses, an electrical substation, as well as a pond and recreation area.