KUALA LUMPUR (Apr 27): Based on corporate announcements and news flow today, the companies that may be in focus on Friday (April 28) could be the following: RHB Bank, Tenaga, T7 Global, Vizione, Datasonic, Maxis, Westports, Nestle, Dutch Lady, MMC Corp, Ire-Tex, Engtex, PBA Holdings, SMTrack, Scientex and Kenanga IB.
RHB Bank Bhd’s wholly owned RHB Islamic Bank Bhd has issued Islamic debts or sukuk with a face value of RM250 million.
The bonds have “a tenure of 10 non-callable five years” with a fixed profit rate of 4.88% per annum, payable semi-annually in arrears throughout the entire tenure.
Proceeds raised from the sukuk will be used for RHB Islamic’s syariah compliant working capital and general banking purposes
Utilities provider Tenaga Nasional Bhd (TNB)’s net profit rose 12% to RM1.48 billion in the second financial quarter ended Feb 28, 2017 (2QFY17), from RM1.32 billion in the previous year’s corresponding quarter (2QFY16), as revenue grew 6% to RM11.16 billion from RM10.49 billion.
TNB announced an interim single-tier dividend of 17 sen per share to reward its shareholders.
The group said the higher revenue was due to lower over-recoverability of imbalance cost pass-through (ICPT) recognised during the current period of RM191.1 million compared with RM713.1 million a year earlier.
For the first half of its financial year (1HFY17), net profit slipped 2% to RM3.22 billion from RM3.3 billion in 1HFY16, while cumulative revenue rose 6% to RM22.4 billion from RM21.17 billion.
Going forward, TNB's board remains cautious over TNB’s prospects, given the likelihood of higher global commodity and energy prices, and the impact of exchange rate volatility.
Engineering firm T7 Global Bhd, formerly known as Tanjung Offshore Bhd, has been awarded an extension of a one-year contract with Petronas Carigali Sdn Bhd for the provision of construction work request (CWR) worth about RM200 million.
The company also won a RM15 million contract from Sarawak Shell Bhd for the provision of professional manpower under an umbrella contract, which is for two years with a one-year optional extension, commencing on March 1, 2017.
Property developer Vizione Holdings Bhd has won a RM58 million subcontract in a government housing project in Kelantan under the Program Perumahan Rakyat (PPR).
The group’s wholly-owned subsidiary, Vizione Construction Sdn Bhd, will supply material, labour, necessary tools and equipment to build 418 units of low cost walk-up flats at Machang district.
The contract is estimated to cost RM55.3 million, with a gross profit margin of 4.66%. The project is expected to commence in the second quarter of 2017 and be completed 30 months later.
Card insertion system and card printer supplier Datasonic Group Bhd has won a RM40.8 million contract for maintenance services at the National Registration Department’s (NRD) card personalisation centres.
The group is required to furnish a performance bond of RM1.02 million during the duration of the three-year contract, which ends on April 30, 2020.
Mobile network operator Maxis Bhd posted a net profit of RM505 million in the first quarter of year 2017 as revenue rose to RM2.16 billion, from RM2.14 billion a year earlier. Revenue rose as service income average revenue per user (ARPU) increased.
Maxis said service revenue increased to RM2.13 billion in the first quarter ended March 31, 2017 (1QFY17), from RM2.12 billion.
It declared a tax-free dividend of five sen a share for the quarter in review.
Port operator Westports Holdings Bhd's net profit dropped 17.6% to RM140.89 million or 4.13 sen a share in the first quarter ended March 31, 2017 (1QFY17) from RM171.08 million or 5.02 sen a share a year ago, due to the absence of a one-off gain disposal gain of RM20.4 million that was recognised in 1QFY16.
Earnings were also dragged down by higher fuel cost during the current quarter under review.
However, quarterly revenue rose 12% to RM520.93 million, from RM464.71 million in 1QFY16.
Food producer Nestle (Malaysia) Bhd will be allocating RM200 million as capital expenditure (capex) this year, compared with RM123 million last year.
Chief financial officer Martin Peter Krugel said the capex is mainly for upgrading of the group’s manufacturing facilities across all product categories.
Dairy products producer Dutch Lady Milk Industries Bhd’s net profit for the first quarter ended March 31, 2017 (1QFY17) slipped 6% to RM31.9 million from RM33.9 million a year ago, on higher material prices and investments in advertisements and promotion.
Earnings per share consequently fell to 49.9 sen from 52.95 sen, though revenue was a marginal 0.1% higher at RM250 million versus RM249.8 million previously.
It expects FY17 to be another challenging year, in light of the current economic outlook, higher material prices and weak ringgit.
Utilities and infrastructure group MMC Corp Bhd’s proposed acquisition of the remaining 51% of Penang Port Sdn Bhd (PPSB) for RM220 million is “fair” and “reasonable”, says independent advisor MIDF Amanah Investment Bank Bhd.
In its independent advice to MMC Corp’s non-interested shareholders, MIDF Amanah recommended they vote in favour of the resolution pertaining to the acquisition to be tabled at the extraordinary general meeting (EGM) on May 11.
Corrugated packaging services provider Ire-Tex Corp Bhd independent director Mak Lin Kum said the extraordinary general meeting (EGM) convened today for the removal of several directors of the company was invalid.
Mak said the meeting — which was called by Ire-Tex’s substantial shareholder Elite Cosmo Group Ltd — was riddled with unusual conduct.
Elite Cosmo – which has a 16.273% stake in Ire-Tex – had on April 11 called for the EGM for the immediate removal of Mak and directors Soo Tee Wei, Chin Wui Choong, Lee Yow Fui, Wong Fook Hiong.
Pipe manufacturer Engtex Group Bhd’s orderbook grew to RM170 million as at March 31, 2017, after the company secured five pipe supply contracts worth RM60 million in the first quarter of 2017.
Engtex said most of these are set to be recognised in financial year ending Dec 31, 2017 (FY2017).
Engtex group managing director Datuk Ng Hook said the company is tendering for more than RM300 million worth of projects nationwide.
Penang water supply company PBA Holdings Bhd expects to reduce its RM91 million domestic water subsidy in Penang, following the impending implementation of the water consumption surcharge (WCS) next year.
Its CEO Datuk Jaseni Maidinsa said the subsidy has increased from about RM50 million in 2008, and that the yearly sum is not sustainable or sensible, adding the money should be used for important water infrastructure projects to avoid water rationing.
Bursa Malaysia Securities Bhd has publicly reprimanded Radio Frequency Identification (RFID) solution specialist SMTrack Bhd for breaches of ACE Market listing requirements.
SMTrack, said the regulator, was late for a month in announcing a quarterly report and its 2016 annual report, and failed to consult Bursa on the period covered in the quarterly report after changing its financial year end.
Scientex Bhd is planning a private placement of up to 10% of its issued shares to third party investors to raise as much as RM361.58 million for property development, landbank expansion and as working capital for its manufacturing business.
The expected proceeds from the placement, which could involve up to 46.36 million shares, is based on an indicative issue price of RM7.80 per placement share, said Scientex.
Rakuten Trade Sdn Bhd, a joint venture between Kenanga Investment Bank Bhd (Kenanga IB) and Japan's Rakuten Securities Inc, has received a licence from the Securities Commission Malaysia (SC) to provide online brokerage services.
In April last year, both Kenanga IB and Rakuten said the online platform will provide new trading experience.