KUALA LUMPUR (March 23): Shares of Jaya Tiasa rallied on Friday after it announced a bonus issue, proposed share placement to raise RM299.74 million and one-for-20 share dividend.
At 10.57am, it was up 71 sen to RM8.40. There were 166,800 shares done.
The FBM KLCI rose 0.66 of a point to 1,583.90. Turnover was 1.03 billion shares valued at RM395.41 million. There were 188 gainers, 322 losers and 292 stocks unchanged.
The proposed placement will involve the issuance of up to 42.04 million new shares at RM7.13 per placement share. After adjusting for the payment of the share dividends, the proposed placement is expected to raise gross proceeds of RM299.74 million.
Its proposed bonus issue will be on the basis of two bonus shares for every one share held. Its one-for-20 share dividend will go ex on April 6.
Jaya Tiasa also reported on Thursday its net profit rose 14% to RM45.52 million in the quarter ended Jan 31, 2012 from RM39.89 million a year earlier as lower tax expenses offset lower revenue and higher operating costs.
Its revenue fell marginally to RM237.56 million from RM237.64 million a year earlier as the company registered lower prices for its logs besides oil palm fresh fruit bunch (FFB) and crude palm oil (CPO).
Cumulative nine-month net profit rose 54% to RM142.59 million from RM92.42 million a year earlier while revenue was up 20% to RM737.08 million from RM615.39 million.
RHB Research said the nine-month core net profit was below expectations. Key variances were mainly due to lower-than-expected FFB sales volume and lower average selling prices for logs in the third quarter.
“ We are positive on these corporate exercises as: 1) These will address the on-going concern of low stock trading liquidity; and 2) Fund-raising could be a prelude to potential landbank acquisition to increase the landbank of its oil palm PLANTATION [],” it said.
“ We raised our target PER for Jaya Tiasa’s plantation division to 15 times (from 13 times), in line with the recent upgrade in our target PER for the sector. We also remove the 10% discount in our SOP fair value given the proposed corporate exercises will improve the stock’s trading liquidity. Post earnings revision, fair value for Jaya Tiasa is revised to RM8.92 (from RM7.80),” it said.
At 10.57am, it was up 71 sen to RM8.40. There were 166,800 shares done.
The FBM KLCI rose 0.66 of a point to 1,583.90. Turnover was 1.03 billion shares valued at RM395.41 million. There were 188 gainers, 322 losers and 292 stocks unchanged.
The proposed placement will involve the issuance of up to 42.04 million new shares at RM7.13 per placement share. After adjusting for the payment of the share dividends, the proposed placement is expected to raise gross proceeds of RM299.74 million.
Its proposed bonus issue will be on the basis of two bonus shares for every one share held. Its one-for-20 share dividend will go ex on April 6.
Jaya Tiasa also reported on Thursday its net profit rose 14% to RM45.52 million in the quarter ended Jan 31, 2012 from RM39.89 million a year earlier as lower tax expenses offset lower revenue and higher operating costs.
Its revenue fell marginally to RM237.56 million from RM237.64 million a year earlier as the company registered lower prices for its logs besides oil palm fresh fruit bunch (FFB) and crude palm oil (CPO).
Cumulative nine-month net profit rose 54% to RM142.59 million from RM92.42 million a year earlier while revenue was up 20% to RM737.08 million from RM615.39 million.
RHB Research said the nine-month core net profit was below expectations. Key variances were mainly due to lower-than-expected FFB sales volume and lower average selling prices for logs in the third quarter.
“ We are positive on these corporate exercises as: 1) These will address the on-going concern of low stock trading liquidity; and 2) Fund-raising could be a prelude to potential landbank acquisition to increase the landbank of its oil palm PLANTATION [],” it said.
“ We raised our target PER for Jaya Tiasa’s plantation division to 15 times (from 13 times), in line with the recent upgrade in our target PER for the sector. We also remove the 10% discount in our SOP fair value given the proposed corporate exercises will improve the stock’s trading liquidity. Post earnings revision, fair value for Jaya Tiasa is revised to RM8.92 (from RM7.80),” it said.
