KUALA LUMPUR (April 11): Based on corporate announcements and newsflow today, stocks that could be in focus on Thursday (April 12) may include: Fitters Diversified Bhd, Datasonic Group Bhd, Benalec Holdings Bhd, Sapura Energy Bhd, Cypark Resources Bhd, Pharmaniaga Bhd, Encorp Bhd, Public Bank Bhd, Harn Len Corp Bhd and Suria Capital Holdings Bhd.
Fitters Diversified Bhd’s subsidiary has been appointed the strategic supplier of specialized pipes for Felda Water Sdn Bhd’s RM57.9 million project involving Orang Asli villages in Pahang.
Molecor (SEA) Sdn Bhd was appointed following the inking of a Memorandum of Understanding between itself and Felda Water to explore and co-operate in the application and use of HYPRO PVC-O pipes in water and wastewater projects in Malaysia and the region.
Felda Water — a wholly-owned subsidiary of Felda — was awarded a contract by the Energy, Green Technology and Water Ministry to install and commission approximately 80km of main and distribution pipelines to supply treated water to 14 Orang Asli villages throughout five districts in Pahang.
The project is expected to contribute positively to the group’s performance for the financial year ending December 2018.
Datasonic Group Bhd has proposed the issuance of up to 675 free warrants on the basis of one warrant for every two shares held, at an entitlement date to be announced later.
The assumed exercise price of the warrant is RM1.01, which represents a premium of 16.07% to the five-day volume weighted average market price of Datasonic shares of 10 sen, as at April 2. Datasonic's issued share capital on April 2 stood at RM135 million comprising 1.35 billion shares.
The group said the gross proceeds from the exercise of the warrants would depend on the actual number of warrants exercised.
In the event, the warrants are fully exercised, the gross proceeds will be RM681.75 million to fund future working capital requirements which may include business development activities, project expenditures and other operating expenditures.
Benalec Holdings Bhd is proposing to raise up to RM31.42 million via a private placement to third party investors, to finance ongoing and future land reclamation projects.
The proposed placement to yet-to-be-identified parties will involve the issuance of up to 112.22 million new shares — representing up to 10% of its enlarged issued shares of 1.23 billion shares — at an issue price to be determined later.
For illustrative purposes, the shares were assumed to be priced at 28 sen apiece.
Proceeds raised will mainly be used for expenses such as raw material costs, payments to sand concessionaires for the rights to dredge sand ex-seabed, payments to suppliers, hire of land equipment and labour costs amongst others. Additionally, RM10 million will be apportioned for working capital.
The proposed exercise is expected to be completed by the second quarter of 2018.
Sapura Energy Bhd’s wholly-owned subsidiary Sapura Exploration and Production (Sarawak) Inc (Sapura E&P), Petronas Carigali Sdn Bhd and Sarawak Shell Bhd have taken the final investment decision (FID) to develop Sarawak's Gorek, Larak and Bakong gas fields under phase one of the SK408 production sharing contract.
The FID follows Petronas' approval for the field development plan. It also follows the signing of the key terms to the gas sales agreement for phase one of the SK408 gas field development.
Sapura E&P is the development and production operator of the Larak and Bakong fields while Sarawak Shell is the development and production operator of the Gorek field.
Cypark Resources Bhd is tying up with German-based 21st Century Clean Energy GmbH & Co KG to collaborate and cooperate in energy storage projects and to jointly expand their business opportunities in the area of renewable energy in Malaysia.
Its wholly-owned subsidiary Cypark RE Store Sdn Bhd has signed an MoU with 21st Century, which is the authorised German battery storage system developer and Tesvolt agent for Malaysia.
The MoU is valid for two years with an option for extension.
It entails cooperation in a number of areas including to develop business and marketing strategies to potential customers for battery energy storage projects in Malaysia, to jointly explore relevant business opportunities for vertical and horizontal market expansion, and collaborating in feasibility studies to set up renewable energy facilities and the development of battery energy storage projects.
Pharmaniaga Bhd is targeting double-digit growth of between 17% and 18% this year from its Indonesian segment, as its halal products gained more traction in the country, its chairman told reporters post-AGM today.
It will also be putting aside capital expenditure of RM75 million for FY18 to be used for upgrading machinery and warehousing for its plants, including a halal vaccine plant which should be ready between 2020 and 2022.
The group plans to continue reducing its dependency on the concession business, which contributes 49% to total business currently.
Encorp Bhd's unit Must Ehsan Development Sdn Bhd has filed a lawsuit against its contractor Bumimetro Construction Sdn Bhd to claim for liquidated damages of RM24.63 million, because of a project delay.
Must Ehsan is also seeking a Quality Assessment System in Construction penalty of RM3 million for failure to score a minimum of 85% and an interest at the rate of 5% per annum on the sum of RM27.63 million until the date of full settlement.
Bumimetro was appointed by Must Ehsan as the main contractor for main building works construction for a proposed mixed development project in Kota Damansara. The single block development comprises a three-storey retail component, 34 storeys of serviced apartment, five storeys of car park, a facility floor and a basement level.
Encorp said today that Bumimetro had failed to complete the project within the timeframe, as stipulated in the agreement.
Public Bank Bhd is establishing an Additional Tier 1 Capital Securities (AT1CS) programme up to RM10 billion in nominal value.
The banking group said Public Investment Bank Bhd (PIVB) on behalf of PBB has lodged the programme with the Securities Commission Malaysia, and it has also obtained approval from Bank Negara Malaysia (BNM) on March 7 for the establishment of the AT1CS programme.
The AT1CS to be issued from time to time under the AT1CS programme will qualify as Additional Tier 1 capital for the computation of the regulatory capital of PBB and PBB group in accordance with the Capital Adequacy Framework (Capital Components) issued by BNM.
PBB said the programme to be issued shall have a perpetual tenure.
Harn Len Corp Bhd was publicly reprimanded by Bursa Malaysia Securities Bhd today for failing to account for adjustments in the group’s financial report for the fourth quarter year ended Dec 31, 2016 (4QFY16).
Harn Len had reported an unaudited loss attributable to the owners of the company of RM2.29 million in its 4QFY16 report, compared with an audited loss attributable to owners of the company of RM8.34 million in the audited statements announced on April 28, 2017.
The difference of RM6.05 million represented a variance of 264%.
Suria Capital Holdings Bhd, a company controlled by the Sabah state government, said today that it has not finalised the fundraising method for the alienation of a 28.9-acre piece of land located at Kota Kinabalu Port in Sabah, which it intends to develop into an international cruise terminal and related realty.
The group said it will make the announcement on Bursa, once the fundraising proposal has been determined, which may include a possible rights issue with attached bonus shares and/or debt issuance.