KUALA LUMPUR (April 18): Based on corporate announcements and news flow today, companies in focus on Wednesday (April 19) may include the following: S P Setia Bhd, CapitaLand Malaysia Mall Trust, Yong Tai Bhd, Sinotop Holdings Bhd, JKG Land Bhd, Anzo Holdings Bhd, Vivocom International Holdings Bhd, Petronas Chemicals Group Bhd, Landmarks Bhd, AmanahRaya REIT, Axiata Group Bhd, Tomei Consolidated Bhd and Malaysian Pacific Industries Bhd
S P Setia Bhd said it has outbid 24 others to win the tender for the popular Toh Tuck Road site in Singapore today for S$265 million (about RM847.6 million) or S$939 per sq ft.
The 4.6-acre leasehold plot will be home to the group's third development in Singapore — a five-storey luxurious condominium project with an estimated gross development value of S$457 million — said S P Setia.
According to S P Setia's stock exchange filing, Singapore’s Urban Redevelopment Authority issued the tender acceptance letter to the group’s wholly-owned subsidiary S P Setia International (S) Pte Ltd today. The land comes with a 99-year lease tenure, with a maximum permissible gross floor area (GFA) of 282,122 sq ft and a gross plot ratio of 1.4.
S P Setia said the planned condominium on the plot will have a GFA of 26,210 sq m. The project, to be completed within 60 months, is targeted to be launched in 2018.
CapitaLand Malaysia Mall Trust (CMMT)'s net property income for the first quarter ended March 31, 2017 (1QFY17) slid 1.5% to RM59.72 million from RM60.6 million a year ago, on lower contribution from its Klang Valley shopping malls.
Consequently, its distribution per unit (DPU) for the quarter under review still declined by 1.9% to 2.08 sen, from 2.12 sen in 1QFY16.
As CMMT’s DPU is paid out on a half-yearly basis, unitholders can expect to receive their 1QFY17 DPU, together with the 2QFY17 DPU, by August 2017.
The largest drag on its 1QFY17 income came from Sungei Wang Plaza, which registered a 38.2% fall in NPI to RM4.8 million from RM7.76 million a year ago, as the mall continues to be temporarily affected by the ongoing Mass Rapid Transit works and the closure of BB Plaza.
The trust’s revenue fell 1.28% to RM92.44 million in 1QFY17 from RM93.64 million a year ago.
Property developer Yong Tai Bhd said today it is considering disposing of its ailing textile and garment business in the near future.
This is in line with the company's plans to diversify its core business to tourism and cultural-related property development, it added.
However, Yong Tai noted it has not entered into any formal negotiation or agreement with any third party recently to dispose of the loss-making textile and garment business held by its wholly-owned subsidiary Syarikat Koon Fuat Industries Sdn Bhd.
It was responding to an article entitled 'Yong Tai expects to exit garment business by June' in The Edge Financial Daily yesterday, which stated the company was in talks with the previous owner of Syarikat Koon Fuat Industries to dispose of the unit.
China-based fabric manufacturer Sinotop Holdings Bhd wants to dispose of an indirect 35.625% equity stake in Suzhou Xuande Zhifu Yihe Investment Management Co Ltd Equity Investment Centre (Limited Partnership) (Xuande) at cost, as the investment failed to provide returns.
Sinotop said its indirect wholly-owned subsidiary Top Textile (Suzhou) Co Ltd has entered into an agreement with Beijing Zhifu Yihe Investment Management Co Ltd for the sale of the stake for 23.06 million renminbi (RM14.77 million).
JKG Land Bhd’s rights issue has been oversubscribed by 27.1% or 410.99 million shares after it received valid acceptances and excess applications of 1.93 billion rights shares.
The group had made available 1.52 billion rights shares for the exercise, on the basis of two rights shares for one existing share held (2-for-1).
The property developer had fixed the rights issue price at 10 sen apiece which would see it raise as much as RM151.7 million from the exercise.
The cash call was to raise funds for its property development projects, expansion plans, and working capital, as well as to repay its short-term bank borrowings.
Anzo Holdings Bhd has responded to the latest unusual market activity (UMA) query posed by Bursa Malaysia, stating that the group is not aware of any corporate development that would have caused it.
Yesterday, Anzo was slapped with the UMA query, after its share price plunged by 19.5 sen or 35.14% to 36 sen.
This is the second UMA query received by the construction and timber product manufacturing group within a month; it was queried on March 28 after the share price jumped to 54.5 sen the previous day from 29 sen on March 13.
In its reply today, Anzo said that after making enquiries with the directors, major shareholders and any other relevant persons, it is not aware of any corporate development, rumour or report concerning its business and affairs that may have accounted for the UMA.
Vivocom International Holdings Bhd says it has secured three contract wins with a combined value of RM44.71 million, for the installation of aluminium and glazing works.
The company said two of the contracts were awarded by PJD Construction Sdn Bhd, comprising a RM6.01 million contract for design, fabrication, supply, delivery and installation of aluminium and glazing works for a hotel, and another RM13.5 million deal for two blocks of serviced apartments.
Both projects are located in Pahang.
Another contract — worth RM25.2 million — was awarded by Setiakon Builders Sdn Bhd for aluminium and glazing works for four 40-storey serviced apartment blocks in Damansara, Selangor.
Vivocom said it expects to complete the works for the hotel within 22 months from the date of commencement of the contract, while the two other jobs are expected to be completed within 24 months.
Petronas Chemicals Group Bhd (PetChem) has approved a final investment decision for an Isononanol plant within the Pengerang Integrated Complex in Pengerang, Johor, for a total investment cost of US$442 million.
In a filing with Bursa Malaysia today, the petrochemical arm of Petroliam Nasional Bhd (Petronas) said the project is expected to come on-stream by the second half of 2019 and will be undertaken by a wholly-owned subsidiary.
Landmarks Bhd is proposing a private placement to raise as much as RM36.93 million to revitalise and grow its business through the injection of fresh equity into the group, with an indicative issue price of 76 sen per placement share.
The group said the indicative price represents a discount of 9.5% to the five-day volume weighted average price of Landmarks' share price of up to and including the latest practicable date (LPD) of 84 sen.
The placement involves issuing up to 48.59 million new shares, representing up to 10% of the group's enlarged issued share capital, to third-party investors to be identified later.
The group said it is expected to raise gross proceeds of RM36.54 million under the minimum scenario and RM36.93 million under the maximum scenario upon completion of the proposed private placement.
Under the maximum scenario, RM13 million will be used to repay a term loan obtained from Malayan Banking Bhd, RM11.6 million for capital expenditure as part of the development of the 338-hectare Treasure Bay Bintan waterfront resort city in Bintan, Indonesia, RM11.46 million for working capital and the remaining RM870,000 to defray expenses in relation to the exercise.
AmanahRaya Real Estate Investment Trust (AmanahRaya REIT) aims to acquire “trophy assets” in the immediate term, despite the softening property market, said Amanah Raya Bhd’s (ARB) group managing director Adenan Md Yusof.
In saying so, AmanahRaya REIT is looking to acquire a commercial property (office tower) in Kuala Lumpur, valued between RM350 million and RM370 million.
“We are looking at one commercial property (an office tower) in Kuala Lumpur which is valued at about RM350 million to RM370 million, and we are in negotiating terms with the party. We hope to close the deal by the second quarter of 2017 and complete the acquisition by year-end,” Adenan told reporters after the REIT’s fifth annual general meeting (AGM) today.
In 2016, the REIT acquired three properties, namely the Deluge Factory in Nusajaya, Toshiba TEC Malaysia in Shah Alam and Contraves in Cyberjaya, with a combined value of RM96 million.
The REIT’s portfolio currently includes 15 properties across Malaysia, collectively valued at RM1 billion.
Axiata Group Bhd is placing out 136.63 million shares in edotco Group Sdn Bhd to Kumpulan Wang Persaraan (Diperbadankan) or KWAP for RM440.95 million to further capitalise edotco.
Telecommunication tower owner and operator edotco is a subsidiary of Axiata.
Axiata told Bursa Malaysia today KWAP's selection was based on the same process and valuation of earlier private placements of edotco shares to Innovation Network Corp of Japan (INCJ) and Khazanah Nasional Bhd subsidiary Mount Bintang Sdn Bhd.
Jewellery chain operator Tomei Consolidated Bhd has secured a one-year deal to distribute and retail China’s Xifu jewellery collections in Malaysia.
Tomei said its wholly-owned unit, Tomei Gold & Jewellery Holdings (M) Sdn Bhd, has entered into a distribution agreement with Shenzhen Harmony Batar Jewellery Co Ltd for the distributorship right.
Tomei said Xifu jewellery collections, which is owned and trademarked by the World Gold Council, is a series of jewellery collections that focuses on the global wedding market.
Malaysian Pacific Industries Bhd (MPI) posted an 11% rise in net profit for its third quarter ended March 31, 2017 (3QFY17) to RM43.21 million, from RM38.99 million a year earlier, due mainly to favourable exchange difference and lower operating costs.
Revenue for the quarter gained 12% to RM396 million, from RM352.12 million previously, said the Hong Leong Group member company in its stock exchange filing today.
The better topline was due to improved contributions from its Asia, US and Europe segments which climbed 7%, 28% and 10% respectively, year-on-year.
The group declared a second interim dividend of 19 sen per share for the financial year ending June 30, 2017 (FY17), payable on May 23.
For the first nine-months of FY17, net profit rose 16% to RM137.92 million, from RM118.84 million a year ago, again due to the same reason behind its improved quarterly earnings, while revenue grew 3.3% to RM1.16 billion from RM1.12 billion.