PUC Founder, WCT, Gabungan AQRS, REDtone, Puncak Niaga, IHH Healthcare and Tambun Indah Land

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KUALA LUMPUR (March 16): Based on corporate announcements and newsflow today, stocks in focus tomorrow could include: PUC Founder (MSC) Bhd, WCT Holdings Bhd, Gabungan AQRS Bhd, REDtone International Bhd, Puncak Niaga Holdings Bhd, IHH Healthcare Bhd and Tambun Indah Land Bhd.

PUC Founder (MSC) Bhd (fundamental: 2.25; valuation: 1.8) is venturing into the solar energy business that will involve the supply of electricity to Tenaga Nasional Bhd.

In a filing with Bursa Malaysia, the media and IT solutions provider said its subsidiary MaxGreen Energy Sdn Bhd was selected as a feed-in-tariff (FiT) approval holder by the Sustainable Energy Development Authority Malaysia (SEDA).

According to its managing director Cheong Chia Chieh, the plan is to develop and operate a one-megawatt solar photovoltaic (PV) plant to produce electricity, which would be supplied to Tenaga.

"We intend to expand our solar PV plants capacity up to 50MWp in the near future, and will seek appropriate funding options such as bank borrowings, rights issue, private placement and strategic investments," Cheong said.

Builder cum property developer WCT Holdings Bhd (fundamental: 0.6; valuation: 1.8) has proposed a rights issue of shares on a one-for-10 basis, to raise RM107.61 million to RM143.23 million.

In a filing with Bursa Malaysia this afternoon, the proposed renounceable rights issue comprises up to 143.22 million new ordinary shares of 50 sen each, on the basis of one rights share for every 10 existing WCT shares held.

The group said the entitlement date and issue price would be determined later. The proceeds will mainly be used for working capital, including repayment to suppliers and sub-contractors.

In addition, WCT also proposed a bonus issue of up to 315.09 million new warrants, on the basis of one free warrant for every five existing shares held.

Both the rights issue and bonus warrants are expected to be completed by the third quarter of 2015.

Property developer Gabungan AQRS Bhd (fundamental: 1.3; valuation: 1.8) has teamed up with Suria Capital Holdings Bhd to jointly develop a mixed development dubbed "One Jesselton Waterfront" in Kota Kinabalu, Sabah, which will have a net sale value (NSV) of RM1.8 billion.

In a statement this evening, the two companies said the seven-acre (2.83ha) parcel of land is part of the 23.25 acres (9.41ha) allocated to Suria Capital, by the Sabah state government.

One Jesselton Waterfront will feature a shopping mall called "One Jesselton Mall" with a net floor area (NFA) of 473,795 sq ft, corporate offices with a NFA of 74,487 sq ft, and retail lots to be named Suria Retail with a NFA of 74,892 sq ft.

Additionally, the development will also include serviced suites and apartments, a condominium, as well as car park facilities and a ferry ticketing office.

Johor ruler Sultan Ibrahim Iskandar has emerged as the single largest shareholder in REDtone International Bhd (fundamental: 2.3; valuation: 0.3), with a 20.13% stake, following conversion of his warrants and irredeemable convertible unsecured loan stocks (ICULS) to ordinary shares, and the purchase of shares from the market.

In a Bursa Malaysia filing this evening, REDtone said Sultan Ibrahim had acquired 74.6 million shares in the integrated telecommunications solutions provider, via a married deal.

According to REDtone's media statement, the Sultan had been steadily accumulating shares over the past one year.

Prior to the warrants and ICULS conversion, he held a 4.8% stake in REDtone.

Puncak Niaga Holdings Bhd (PNHB) (fundamental: 1.5; valuation: 1.2) announced today that the disposal of its water assets to Pengurusan Air Selangor Sdn Bhd, has been extended for a third time by another month to April 9, 2015.

In a statement today, PNHB chief operating officer Datuk Syed Danial Syed Ariffin said the company agreed to an extension, to enable the pending issues related to the water asset transfer between the Selangor government and federal government to be resolved.

He said PNHB’s board of directors “expressed concern” that the delay in completing the proposed disposal of its water assets and consolidation of the Selangor water industry, would affect the level of services and management of the water supply system in Selangor, Kuala Lumpur and Putrajaya.

PNHB is confident that Selangor Menteri Besar Mohamed Azmin Ali and Prime Minister Datuk Seri Najib Razak will resolve the issue, he said.

IHH Healthcare Bhd (fundamental: 1.65; valuation: 0.70) said it has entered into a partnership agreement with Godo Kaisha Samurai 10, that saw an injection of RM182.62 million into the latter for the acquisition of nursing homes in Japan.

A silent partnership agreement was entered into today, between Godo Kaisha Samurai 10 and Parkway Life Japan4 Pte Ltd — a special purpose vehicle of Parkway Life Real Estate Investment Trust (REIT).

Parkway Life REIT is an indirect 35.76%-owned subsidiary of IHH Healthcare.  

Pursuant to a Tokumei Kumiai agreement (or silent partnership agreement), Parkway Life Japan4 Pte Ltd has injected ¥5.98 billion (approximately RM182.6 million) into Godo Kaisha, in relation to the acquisition of four nursing homes and one group home in Fukuoka City, Nagoya City and Sapporo City.

The acquisitions are expected to complete in the first quarter of 2015. In total, the five properties have 471 rooms.

Property developer Tambun Indah Land Bhd (fundamental: 2.7; valuation: 2.4) is buying 16 parcels of freehold land in Seberang Perai Tengah, Penang, with a collective land area of 18.8 acres, for RM38.9 million, cash.

In a filing with Bursa Malaysia, Tambun Indah said three of its wholly-owned subsidiaries — TID Development Sdn Bhd, Jasnia Sdn Bhd and Intanasia Development Sdn Bhd — had entered into four sale and purchase agreements for the said acquisition, with Naga Utama Construction Sdn Bhd today.

Tambun Indah said the acquisition, which will be funded either via internally-generated funds or bank borrowings, is in line with the group’s strategy to increase its land bank, in order to expand its revenue base.

(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 valuation)