MAHB, Eco World, MUI, IJM, KEuro, Protasco, Talam Transform and GHL Systems

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KUALA LUMPUR (Dec 12):  Based on the newsflow and corporate announcements today, the stocks that may attact interest next Monday (Dec 15) could include the following: Eco World Development Group Bhd, Malayan United Industries Bhd (MUI), IJM Corp Bhd, Kumpulan Europlus Bhd (KEuro), Protasco Bhd, Talam Transform Bhd, GHL Systems Bhd and Malaysia Airports Holdings Bhd (MAHB).
 
Eco World Development Group Bhd shareholders had approved the company's real estate asset acquistions from major shareholders today.

Eco World shareholders had, at its extraordinary general meeting (EGM) here, approved proposals including the acquisition of development rights from Eco World Development Sdn Bhd (EWD) for RM3.79 billion; and a renounceable rights issue of new Eco World shares, with new free detachable warrants.

Eco World is targeting to raise RM788 million from the rights issue.

"After the approval for development rights, we will carry out the share split, rights issue and warrants. It will take us probably until the second quarter next year [2015], to complete all of these," Eco World president and CEO Datuk Chang Khim Wah told reporters, after the EGM.

Eco World share price rose six sen or 1.51% to close at RM4.04, for a market value of RM1.02 billion. The stock had gained 6% this year (2014), outperforming the FBM KLCI's 7% decline.

Malayan United Industries Bhd (MUI) is selling its 69.192% equity stake in Pan Malaysia Holdings Bhd (PM Holdings) to Datuk Dr Yu Kuan Chon for RM77.124 million cash or 12 sen pe share, in a move to divest its non-core assets and reduce its bank borrowings.

In a filing with Bursa Malaysia today, MUI said its six subsidiaries, namely Acquiline Sdn Bhd, Loyal Design Sdn Bhd, Malayan United Management Sdn Bhd, MUI Media Ltd, MUI Property Services Sdn Bhd and Megawise Sdn Bhd, had signed a shares sale agreement with Yu, to sell 642.7 million shares in PM Holdings.

“About RM60 million of the proceeds will be used to repay MUI’s bank borrowings, while the balance will be for other working capital purposes,” said the announcement.

MUI, the flagship of tycoon Tan Sri Khoo Kay Peng with 47.67% stake, is expected to realize a gain on disposal of about RM40 million, which will translate to net gain of 1.3 sen in earnings per share.

The joint venture between IJM Corp Bhd and Kumpulan Europlus Bhd (KEuro) has been awarded the contract to undertake construction works for the West Coast Expressway (WCE).

Today, the joint venture accepted the letter of award from West Coast Expressway Sdn Bhd, for the project costing no more than RM5.044 billion, said IJM Corp in a filing with Bursa Malaysia.

The joint venture was appointed as the engineering, procurement and construction contractor, whereby construction of the WCE project that will link Taiping to Banting, will span over a five-year period.

According to the statement, the joint venture was formed by IJM Construction Sdn Bhd and KEuro, on a 70:30 basis.

IJM Construction is a wholly-owned subsidiary of IJM Corp, while West Coast Expressway is an 80%-owned subsidiary of KEuro.

IJM Corp share price fell 6 sen or 0.9% to RM6.43, giving it a market capitalisation of RM9.59 billion. KEuro share price ended flat at RM1.03, with a market capitalisation of RM1.03 billion.

Protasco Bhd had today called off its proposed private placement and one-for-10 bonus issue of warrants, which the board proposed a year ago.

The company — which recently embroiled in a shareholder tussle — did not reveal however, the reason for such decision to terminate the plan in the announcement.

To recap, Protasco had in Dec 12, 2013, proposed the private placement of up to 50 million shares, together with up to 100 million new detachable warrants, on the basis of two warrants for every one placement share.

The board also proposed a bonus issue of up to 33.5 million free warrants, on the basis of one warrant for every 10 existing shares.

Protasco is expected to raise RM82.5 million from the private placement, of which RM70 million will be used for property development and construction projects, while another RM12 million will be allocated for working capital, according to the earlier announcement.

Protasco share price fell five sen or 3.4% to settle at RM1.42 today, with 904,600 shares done, bringing it to a market capitalisation of more than RM476 million.

Talam Transform Bhd posted a net profit of RM3.56 million in the third quarter ended Oct 31, 2014, (3QFY15), compared with a net loss of RM13.07 million a year ago.

The property developer attributed the improved earnings to higher finance income of RM11.88 million in the current quarter under review.

Quarterly revenue jumped nearly 160% to RM49.97 million, from RM19.32 million in 3QFY14, due to disposal of development lands.

Earnings per share expanded to nine sen, from a loss earnings per share of 0.32 sen.

For the cumulative nine months period, its net loss narrowed to RM8.22 million, versus RM20.45 million in the previous corresponding period; while revenue leapt by 264.2% to RM220.63 million, from RM60.58 million a year earlier, due to the above reason.

Going forward, Talam will continue to enter into joint ventures with reputable corporations, to develop its land banks.

"The group will launch new development projects, once approvals are obtained from the relevant authorities. However, the board foresees a challenging financial year ahead, due to market conditions brought about by tougher lending guidelines by Bank Negara Malaysia, and an increasing construction costs environment," it said.

Talam's share price closed unchanged at 8 sen, giving a market capitalisation of RM358.65 million.

Substantial shareholder Cycas, a unit of the private equity fund Creador Sdn Bhd, has bought more shares in GHL Systems Bhd, raising its equity interest to 28.5% in the electronic payment solution provider.

The filing with Bursa Malaysia shows Cycas had acquired some 4.1 million shares or 0.6% stake in GHL, between Dec 8 and 11.

According to GHL's 2013 annual report, Cycas emerged as a substantial shareholder early this year (2014), by taking up a private placement of 84.1 million new shares, which is equivalent to 20% stake.

GHL share price has retreated from its historical high of 91 sen in late October, to the recent low of 66.5 sen on Dec 9. The stock gained 0.5 sen to 70 sen, giving it a market capitalisation of RM447.6 million.

Malaysia Airports Holdings Bhd (MAHB) has won a QAR209.48 million or RM192.15 million contract for the repair and maintenance services of the airport special systems at Hamad International Airport (HIA) in Doha, Qatar.

Based on a filing with Bursa Malaysia, the contract was won by Malaysia Airports Consultancy Services Middle East LLC (MACS ME) — a joint venture company between Malaysia Airports Consultancy Services Sdn Bhd (MACS) and Qatar's Watad Group.

MACS is, in turn, a wholly-owned subsidiary of MAHB.

"MAHB is committed to its fundamental objective of pursuing long-term sustainable business growth. Hence, the project awarded to MACS ME, signifies MAHB's determination to continue pursuing opportunities in airport development, operation, management, and project consultancy overseas."

"The project is expected to enhance MAHB's revenue stream from the consultancy business, and to diversify its future earnings," said the airport operator.

MAHB announced the contract from the New Doha International Airport Steering Committee is for a period of three years, with an option to extend for an additional period of two years.

The HIA — formally known as New Doha International Airport — is the international airport of Doha, Qatar. It has the capacity to handle 29 million passengers a year.

MAHB share price closed at RM6.66, down 10 sen today. This gives it a market capitalisation of RM9.15 billion.