Thursday 28 Mar 2024
By
main news image

KUALA LUMPUR (April 28): Based on corporate announcements and news flow today, the companies that may be in focus on Tuesday (May 2) could be the following: Muhibbah Engineering, Weida, UMW Oil & Gas, DNeX, Prestar, SCGM, KBES, SMIS Corp, MAHB, Digi, Caring Pharmacy, IOI Corp, AirAsia X, FGV and Goodway Integrated.

Construction firm Muhibbah Engineering (M) Bhd has bagged a RM584.84 million contract from the Bintulu Port Authority to build a wharf, jetty and other associated facilities at Bintulu Port, Sarawak.

Muhibbah said its 51%-owned unit Muhibbah Viccana JV has been awarded a contract by the Bintulu Port Authority to undertake the works in the Second Harbour Basin of Bintulu Port.

Construction works on the project will commence immediately and is expected to be completed by end-2019.

Diversified group Weida (M) Bhd has secured a 20-year government concession worth RM351 million to build new buildings and facilities for the Sarawak General Hospital under a build-lease-maintain-transfer model.

Weida said its 49%-owned indirect associate Asaljuru Weida Sdn Bhd has signed a concession agreement (CA) with the Minister of Health for the proposed project. The other shareholders of Asaljuru Weida is Asaljuru Construction Sdn Bhd, which has a 40% stake and Cahaya Majestic Sdn Bhd with the remaining 11%.

Under the CA, Asaljuru Weida will build a daycare centre, a medi-hotel with a multi-storey car park and a multi-storey car park complex for the Sarawak General Hospital in Kuching.

Upstream oil and gas player UMW Oil & Gas Corp Bhd (UMW-OG) is disposing of its entire 50% stake in the NAGA 1 semi-submersible drilling rig for US$1.65 million (RM7.2 million).

This is a huge discount compared with the group's original cost of investment in NAGA 1 of US$17 million on March 11, 2005. The rig is co-owned with Japan Drilling Co Ltd.

UMW-OG said its wholly-owned subsidiary UMW Drilling Co Ltd (UDC) has signed a sale and purchase agreement with JDC Panama Inc for the proposed disposal.

It noted that the disposal consideration of US$1.65 million was arrived after taking into account the prevailing market value of NAGA 1 of US$3.31 million based on an open tender exercise carried out on Jan 13 this year.

Energy and IT solution provider Dagang Nexchange Bhd (DNeX) said its associate company, Ping Petroleum Ltd, has received the nod from United Kingdom’s Oil and Gas Authority for a farm out agreement.

DNeX said that the approval is a key condition precedent to the farm out agreement between Ping’s wholly-owned subsidiary, Ping Petroleum UK Ltd (Ping UK) and a wholly-owned unit of Japanese integrated trading company Sumitomo Corp, Summit Exploration and Production Ltd.

The group said the project is an expansion of its diversification into the energy sector via its wholly-owned subsidiary, DNeX Petroleum Sdn Bhd.

Prestar Resources Bhd is disposing of its plant at Song Than 3 Industrial Park in Vietnam for VND118.8 billion (RM22.71 million) as part of plans to shift its manufacturing operation back to Malaysia.

The steel maker is expected to report a net gain of RM8 million from the disposal. "However, this amount is subject to change due to the fluctuation of foreign currency rates from time to time," it noted.

The total original cost of the assets comprising land, building, fixture and fittings and related assets was RM12.1 million in December 2006.

Prestar said proceeds from the disposal will be used to pare down its borrowings, after obtaining approval from Vietnam authority.

Thermos-vacuum form plastic packaging manufacturer SCGM Bhd has proposed a bonus issue of 48.4 million new shares on the basis of one bonus share for every three existing shares, to reward shareholders.

SCGM also proposed a bonus issue of 19.36 million warrants on the basis of two free warrants for every 15 existing share.

Express bus services provider KBES Bhd will exclusively assemble and fabricate bodies of coaches and buses for China’s Beiqi Foton Motor Co Ltd (Foton), to be sold in Malaysia.

KBES's wholly-owned unit Super Coach Assemble Plant Sdn Bhd (SCAP) inked a cooperation agreement with Foton, which named SCAP the exclusive assembler of Foton's products, to be sold to local authorised wholesalers, retailer or end users here for three years.

As such, KBES will transform its Kamunting facility into a full-fledged assembly plant for Foton's products.

Automotive interior furnishing and components supplier SMIS Corp Bhd is buying a 16,186 sq m parcel of land in Kawasan Industri Terpadu Indonesia China, West Java, Indonesia for 36.5 billion rupiah (RM11.94 million), which will be used to construct factory/factories for its expansion into Indonesia.

SMIS said its foray into the Indonesian market fits into its longer term strategy.

It added that it is positive on the potential and opportunities available in Indonesia as the automotive industry has shown signs of consistent growth.

Airports operator Malaysia Airports Holdings Bhd’s (MAHB) net profit for the first financial quarter ended March 31, 2017 (1QFY17) rose by over three times to RM62.02 million, from RM17.01 million a year ago, thanks to contributions from its Malaysia operations.

Meanwhile, MAHB’s 1QFY17 revenue grew by 7.3% to RM1.09 billion from RM1.02 billion, thanks to higher revenues from both its Malaysia and overseas operations.

Moving forward, MAHB said the 6.5% growth rate target for airports in Malaysia (passenger traffic increase) is attainable, driven by the level of tourism interest in the country, which in turn is expected to increase as it hosts the Southeast Asian Games in August and September this year, as well as its participation in the Visit Asean@50 tourism campaign.

Mobile network operator DiGi.Com Bhd (Digi)'s first quarter net profit fell 6% to RM373.11 million, from RM399.04 million a year earlier, as the mobile telecommunication network provider registered lower prepaid revenue.

Digi.Com said group revenue dropped to RM1.57 billion in the first quarter ended March 31, 2017 (1QFY17), from RM1.65 billion in 1QFY16.

Going forward, Digi said it will strive to strengthen internet propositions in targeted segments to continue to grow postpaid and stabilise prepaid with sustainable customer base contribution.

Dispensary chain store operator Caring Pharmacy Group Bhd’s net profit increased by 3.3 times to RM5.28 million or 2.43 sen a share in the third financial quarter ended Feb 28, 2017 (3QFY17) from RM1.62 million or 0.74 sen a share a year ago, on higher sales generated from existing outlets due to aggressive and extensive promotional campaign launched during the financial year.

Revenue rose 11.9% to RM115.66 million from RM103.4 million in 3QFY16.

For the cumulative nine months (9MFY17), Caring saw its net profit almost double to RM8.77 million or 4.03 sen a share from RM4.55 million or 2.09 sen a share in 9MFY16, while revenue rose 15.7% to RM340.46 million from RM294.24 million.

On prospects, Caring said with the further weakening of the ringgit and rising inflationary pressure coupled with weak consumer purchasing power, the group will be operating in a challenging environment in the remaining quarter ending May 31, 2017.

Palm oil group IOI Corp Bhd said it "stands firmly committed" to ensure sustainable palm oil supply. The group's commitment is crucial to convince stakeholders on its desire to improve the commodity's supply-chain management.

IOI Corp chief executive officer Datuk Lee Yeow Chor said the company would continue to engage stakeholders in its sustainability journey. Lee said the group hoped to play a leading role in ensuring sustainable global palm oil supply chains.

AirAsia X Bhd (AAX) carried 33% more passengers in the first quarter of this year (1Q17) as the long-haul, low-cost affiliate of AirAsia Bhd enjoyed strong demand for travel across all segments.

AAX said it carried 1.4 million passengers in 1Q17 from 1.06 million a year ago on the back of a 28% increase in capacity.

Its load factor also rose two percentage points to 84% in 1Q17 and expanded its available seat kilometres (ASK) by 29% to 8.32 million from 6.44 million in 1Q16.

Moving forward in 2017, AAX said it remains prudent in its expansion plan, continues to explore strategic initiatives to ensure sustainable growth and strengthen its position in core markets where it can build up its market leadership position.

Palm oil giant Felda Global Ventures Bhd (FGV) today dismissed media reports alleging that it had violated its own sustainability policies and industry standards by clearing peat forests in Indonesia.

FGV said it has procured all necessary approvals from the relevant authorities in Indonesia, in respect of the development of its unit PT Temila Agro Abadi's plantation in West Kalimantan Indonesia, which started in late 2014.

Rubber-related products maker Goodway Integrated Industries Bhd is establishing an investigation committee to probe alleged irregularities highlighted by its external auditor with regards to its accounts for the year ended Dec 31, 2017 (FY16).

The group said its external auditor, Messrs Kreston John & Gan, has expressed a qualified opinion in its report.

This follows alleged irregularities comprising impairments worth a total of RM45.5 million. Interestingly, the amount is more than Goodway’s current market capitalisation of RM31.5 million.

      Print
      Text Size
      Share