KUALA LUMPUR (Feb 4): Based on corporate announcements and news flow today, the companies that may be in focus tomorrow (Thursday, Feb 5) could include: Eco World Development Group Bhd, Lay Hong Bhd, QL Resources Bhd, Silk Holdings Bhd, Muhibbah Engineering (M) Bhd, Sunway Bhd, Malaysia Airports Holdings Bhd (MAHB), WZ Satu Bhd, Esthetics International Group Bhd, IRM Group Bhd, Press Metal Bhd and Sino Hua-An International Bhd.
UDA Holdings Bhd is poised to receive RM1 billion as development rights for the transformation of the former Pudu jail site into the multi-billion ringgit Bukit Bintang City Centre (BBCC).
The project, with an estimated gross development value of RM8 billion, will be jointly developed by a consortium company, BBCC Development Sdn Bhd, with UDA and Eco World Development Group Bhd (Eco World) each holding a 40% stake, while the Employees Provident Fund will have the remaining 20%.
UDA, which is the landowner, signed a development rights agreement BBCC today.
The project, the design of which borrows heavily from the Battersea Power Station project in London, would entail the 19.4 acres plot of land to be transformed into a mixed residential and commercial development, comprising amongst others, a retail mall, an entertainment block, office towers, serviced residence and a hotel.
Poultry farmer Lay Hong Bhd (fundamental: 0.45; valuation: 0.6) has proposed a private placement of up to 15.75 million new shares or 30% of the company's enlarged share capital, a move that may dilute QL Resources Bhd (fundamental: 1.1; valuation: 1.5)’s stake in the company.
It has also proposed to terminate the existing executive share option scheme, to be replaced with a new share issuance scheme of up to 15% of its issued share capital for eligible directors and employees of the holding company and subsidiaries.
Offshore support vessel service provider Silk Holdings Bhd (Silk) (fundamental: 0.2: valuation: 0.3) secured a contract worth about RM24.46 million to provide one straight supply vessel with accommodation, to ExxonMobil Exploration and Production Inc.
The contract will commence immediately and will last for a primary term of two years, with the option of a one-year extension.
Muhibbah Engineering (M) Bhd clinched a US$32 million (RM116 million) construction subcontract for the Petroliam Nasional Bhd's (Petronas) Refinery and Petrochemicals Integrated Development (Rapid) project in Pengerang, Johor.
Muhibbah (fundamental: 1.15; valuation 0.6:) was appointed by Tecnicas Reunidas to design and build "temporary construction facilities and accommodation camp". The subcontract comes under package 3 of the Rapid project.
The construction is scheduled to commence in first quarter of 2015, and is expected to be completed by first quarter 2016.
Sunway Bhd (fundamental: 1.9; valuation 2.4) is another step closer to listing its construction arm, Sunway Construction Group Bhd (SCG), as the Ministry of International Trade and Industry (MITI) has granted its approval for SCG to implement the proposed offer for sale and proposed listing of SCG shares.
Sunway plans to list 573.4 million ordinary SCG shares, out of which 401 million or 31% of SCG shares is for offer for sale to retail and institutional investors.
From this, up to 135.8 million or 10.5% of SCG shares have been set aside for Bumiputera investors, to be approved by MITI.
Malaysia Airports Holdings Bhd (MAHB) (fundamental: 0.5; valuation: 0.6) said the UEMC-Bina Puri joint venture has received the certificate of practical completion (CPC) for the klia2 terminal building on Feb 2.
The effective date of the CPC is Jan 26, 2015, and the defects liability period will commence on Jan 27, 2015, and expire on Jan 26, 2017.
UEMC-Bina Puri is the main contractor for the klia2’s main terminal building, and satellite building and associated works.
With the receipt of the CPC, the klia2 terminal building can now be officially handed over to MAHB for management.
WZ Satu Bhd (fundamental: 1.7; valuation: 1.8) has just added another win to its order book, after securing a RM124.12 million contract to construct an elevated bridge over the existing Bayan Lepas Expressway at Batu Maung, Penang, which is expected to complete by Nov 30 this year.
Based on a filing with Bursa Malaysia, its wholly-owned subsidiary, WZS KenKeong, received a letter of award from UEM Construction Sdn Bhd.
Esthetics International Group Bhd's (EIG) (fundamental: 2.5; valuation: 2.4) wholly-owned unit, EIG Haircare Sdn Bhd (EGIH), is now the exclusive distributor for the Evo range of professional haircare products in Hong Kong, Macau and the Asean region.
EIGH had signed a distribution agreement with Privity Pty Limited and EA Holland Pty Limited, for the distributorship for 10 years, starting from April 1, 2015, to March 31, 2024, with the option to renew for another 10 years.
IRM Group Bhd shares will be suspended from Feb 11, 2015, after it failed to submit a regularisation plan to Bursa Malaysia.
Bursa Malaysia had granted it extensions up to Dec 19, for the submission of its regularisation plan, after the company missed its initial deadline on May 30.
IRM’s request for a further extension was rejected by the exchange, and its shares could face delisting on Feb 13, unless an appeal is submitted to the bourse on or before Feb 10.
Press Metal Bhd (fundamental: 0.65; valuation: 2.4) expects a 10% to 15% increase in the production capacity at its aluminium smelter within Sarawak's Samalaju Industrial Park this year.
Press Metal group CEO Datuk Paul PK Koon said output increase would come from the planned phase three of the aluminium smelter in financial year ending Dec 31, 2015 (FY15).
As a result of the third phase expansion, the company expects to see an increased contribution to sales and revenue for FY16. Earnings are dependant on a number of factors, but it should also move in tandem with revenue growth.
Sino Hua-An International Bhd (fundamental: 1.85; valuation: 1.2) said a fire had occurred at its subsidiary Linyi Yehua Coking Co Ltd’s crude benzene plant, located at Shenquan Village Industrial Park, Luozhuang District, Linyi City, Shandong Province, China, on Jan 31, but with minimal impact to its operation.
The fire resulted in damages worth RM286,000 (RMB487,000) to its equipment, with four fatalities, whilst three were injured.
(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)