Malton, Bintai Kinden, Integrax, TNB, REDtone, Fitters Diversified, BCB and SapuraKencana

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KUALA LUMPUR (March 4): Based on corporate announcements and news flow today, stocks that may be in focus tomorrow (Thursday, March 5) could include: Malton Bhd, Bintai Kinden Corp Bhd, Integrax Bhd, Tenaga Nasional Bhd (TNB), REDtone International Bhd, Fitters Diversified Group Bhd, BCB Bhd and SapuraKencana Petroleum Bhd.

Malton Bhd is aiming to more than double its current construction order book of approximately RM700 million, as it targets RM1.5 billion worth of contracts this year.  

Malton director Ng Chee Kiat told pressmen after the company's extraordinary general meeting (EGM) today that the group is banking on the Damansara Town Centre project, to account for approximately RM1 billion of the total RM1.5 billion contracts it is looking to secure.

The demolition works for the project, which could take up to 18 months, will commence this year. Ng said Malton hopes to finalise the contract with the project’s developer, Impian Ekspresi Sdn Bhd, which is controlled by Malton’s chairman Tan Sri Desmond Lim Siew Choon.

Impian Ekspresi plans to construct 11 buildings on the site, including offices, a hotel, serviced apartments and retail lots.

At the EGM earlier, its shareholders paved the way for the group to undertake construction projects from related parties, which are mainly companies linked to its chairman Lim — such as the Damansara Town Centre project — when they unanimously approved a resolution to allow it to do so.

Mechanical and electrical engineering services specialist Bintai Kinden Corp Bhd's sub-subsidiary BK Singapore Trading Pte Ltd has secured an S$11.91 million (RM31.67 million) offshore contract from PT Bintan Vista, for a project in Bintan, Indonesia.

It told the stock exchange today that under the contract, BK Singapore Trading will supply and deliver major equipment and materials for air-conditioning and mechanical ventilation, as well as undertake electrical, fire fighting, fire alarm, plumbing, sanitary and gas, lift, swimming pool and powerhouse installation, for a proposed resort development in Bintan.

The project, targeted to be completed by Nov 6, 2016, is expected to contribute positively to the future earnings of Bintai Kinden Group (fundamental: 0.35; valuation: 1.2).  

The board of directors of Port operator Integrax Bhd (fundamental: 1.65; valuation: 0.6) has advised minority shareholders to reject the revised take-over offer of RM3.25 a share by Tenaga Nasional Bhd.

The board said the updated underlying value per Integrax share of RM3.60 to RM3.66 per share, is still at a material premium of 10.8%-12.6% to TNB's (fundamental:1.3; valuation: 1.8) revised offer price of RM3.25.

It said the company's deputy chairman and substantial shareholder Amin Halim Rasip, who controls 24.18% stake, has confirmed he will reject the revised offer.

However, M&A Securities, the independent adviser appointed by the Integrax’s board, has advised minority shareholders to reject the revised offer, as it still deems the revised offer "not fair, but reasonable".

The firm, which previously advised minority shareholders to accept TNB’s offer, said it changed its view, because the "updated value of Integrax shares ranging from RM3.60 to RM3.66, is now only 10.8% to 12.6% higher than the revised offer price" of RM3.25, compared to its previous offer of RM2.75.

REDtone International Bhd said its Penang Free Wifi project, which it undertook in collaboration with the Penang government, has been extended by another two years.

With the extension, REDtone (fundmental: 2.30; valuation: 0.30) expects to register RM1.85 million revenue from the project.

Its president and chief business officer Shaifubahrim Saleh told pressmen that the extension and increased revenue were attributable to the backhaul bandwidth upgrade to improve the free Penang wifi service, offered since 2009.

The group started the five year venture with the state government in 2009. Currently, there are 1,550 hotspots located in all 40 state constituencies.

Property developer Fitters Diversified Bhd plans to redevelop the 2.3-acre Plaza Pekeliling along Jalan Tun Razak here, into a small office/home office (SOHO) concept building.

In a filing with Bursa Malaysia today, Fitters (fundamental: 1.3; valuation: 1.8) said its wholly-owned subsidiary Fitters Building Services Sdn Bhd has signed the sales and purchase agreement (SPA) with GCP Tower Sdn Bhd to purchase the freehold property which comes with 70 parcels of office lots and 363 units of car park bays, for RM28.28 million.

GCP Tower is a wholly-owned unit of Global Carriers Bhd.

According to the filing, the 33-year-old property has a built-up area of 290,798 sq ft, with a net lettable area of 144,376 sq ft.

The purchase consideration, it said, will be satisfied via internally-generated funds and bank borrowings. The deal is targeted to be completed within six months of the SPA.

Another property developer, BCB Bhd, is collaborating with HELP University Sdn Bhd to set up an education and training centre in Kluang, Johor.

BCB told Bursa today that it has entered into a memorandum of understanding (MoU) with HELP University to forge good relationship and understanding between the parties.

The MoU is valid for five years and will form an initial framework for further formal agreements to be drawn up between both parties.

BCB said they will also set up other education and training centres in other parts of Johor, apart from Kluang.  

Under the MoU, HELP University will set up, establish and manage the education and training centre by providing its expertise in managing and administering the education and training activities at the centre.

Tan Sri Mokhzani Mahathir and his close associate, Yeow Kheng Chew, have both resigned from the board of SapuraKencana Petroleum Bhd today.

Without disclosing further details, the company told Bursa Malaysia that Mokhzani has resigned from his position as vice-chairman, while Yeow is leaving his position as non-executive director. Both cited personal reasons for their resignations.  

According to Bloomberg data, as at Dec 9, 2014, Mokhzani had a 0.16% direct stake in SapuraKencana and deemed interested in some 610 million shares or 10.38% stake via Kencana Capital and Khasera Baru Sdn Bhd - another of his private vehicle.

Yeow had a 0.39% direct stake or 23.18 million shares in the company.

Other major shareholders in the company included Sapura Holdings Sdn Bhd with a 16.71% stake, Sapura Technology Sdn Bhd (15.9%), Employees Provident Fund (EPF) (14.23%), Seadrill Ltd (8.18%) and Skim Amanah Saham Bumiputera (6.23%).

(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.)