Felda buys 11% in BHS, becomes substantial shareholder

Felda and biomass

PETALING JAYA: The Federal Land Development Authority (Felda) has emerged as a substantial shareholder in BHS Industries Bhd, following in the footsteps of Pelaburan Mara Bhd (PMB), also a state-linked investment fund.

Stock filings yesterday showed that Felda had bought eight million shares, or an 11.1% stake, in the printing company last Friday.

Felda’s cost was not disclosed, but shares of BHS Industries had finished at RM2.86 on Sept 5.

In July, PMB had acquired six million shares in BHS Industries via an off-market transaction.

It now owns 18% of BHS Industries, or 12.98 million shares, Bloomberg data showed. That makes PMB the single largest shareholder of BHS Industries. 

StarBiz had previously reported that PMB was planning to increase its stake in BHS Industries to 18% as the firm diversifies into renewable biomass and property development.

Its shares were last quoted at RM2.85 yesterday on thin trade of 188,400 shares.

BHS Industries’ net profit surged 53.64% to RM11.13mil in the financial year ended June 30, 2014 (FY14), on flattish revenue growth to RM65.56mil.

It paid out dividends of three sen per share in FY14 on earnings per share of 15.44 sen, as cash and near cash grew strongly to RM11.13mil from RM2.19mil a year ago, while debts fell to zero as of June 30.

According to its website, BHS Industries operates as a printer, offering pre-press (including desktop publishing), press and post-press.

It prints magazines, school textbooks, general publications, directories, company annual reports, as well as brochures and pamphlets. It also prints a number of books for overseas publishers.

PMB’s other investments so far include PDZ Holdings Bhd (29.45% stake), Sanichi Technology Bhd (8.06%), SEG International Bhd (0.58%), Malaysia Steel Works (KL) Bhd (2.14%) and Crest Builder Holdings Bhd (1.32%).

Inclusive of its interest in BHS Industries, the market value of PMB’s total investments was worth some RM149.93mil, Bloomberg’s calculations showed.

Besides BHS Industries, Felda owns a 33.66% stake in Felda Global Ventures Holdings Bhd.

While most of PMB’s recent investment choices have centred on small-cap penny stocks like PDZ and Sanichi, group CEO Nazim Rahman told StarBiz recently that it was not fixated on investing only in large or medium-cap firms.

Although he did not want PMB, which now manages a war chest of RM1.7bil, to be seen as a penny stock investor, Nazim said good value could be found in small-cap companies such as PDZ and Sanichi.

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