KUALA LUMPUR (July 12): Based on corporate announcements and news flow today, companies in focus on Friday (July 13) may include: WCT, Lafarge Malaysia, Star Media Group, JAKS Resources, Gabungan AQRS, Atlan, Kumpulan Jetson, Nova MSC and SKH Consortium.
WCT Holdings Bhd has secured a RM555 million contract from Lendlease Projects (M) Sdn Bhd for a proposed mixed development in the Tun Razak Exchange (TRX) Lifestyle Quarter.
The job includes the construction of a four-level shopping complex, three levels of car park, and a level of open landscape with retail space.
Lafarge Malaysia Bhd's RM270 million cement supply contract for the proposed East Coast Rail Link (ECRL) project has been suspended by China Communications Construction (ECRL) Sdn Bhd, following the suspension of the project pending a government review.
This follows the instruction received by China Communications from Malaysia Rail Link Sdn Bhd on July 3 on the ECRL project suspension; Lafarge received a letter today from China Communications on the suspension of the cement supply with immediate effect until further notice.
The High Court has ordered the two issuing financial institutions to release a RM50 million bank guarantee called on by Star Media Group Bhd in February, in relation to an agreement for the purchase of a piece of land in Section 13, Petaling Jaya for RM135 million.
This means JAKS Resources Bhd will have to pay the RM50 million sum to the two issuers.
Star Media said the Court has today dismissed the legal suit filed by JAKS to restrain the financial institutions from releasing the bank guarantee to Star Media, with costs.
The financial institutions are required to release the bank guarantee to Star Media within five working days.
In an immediate response, JAKS said in a separate bourse filing that its 51%-owned unit JAKS Island Circle Sdn Bhd (JIC) has instructed its solicitors to file a notice of appeal to the Court of Appeal. JIC has further instructed for applications for a stay of execution of the Court order, as well as an Erinford injunction on the issuing financial institutions and Star Media pending the hearings of the appeal.
An Erinford Injunction is filed pending an appeal or an application of leave to appeal.
JAKS added that the notice of appeal, stay of execution and injunction are expected to be filed by tomorrow.
"In the meantime, the solicitors of JIC have already put the issuing financial institutions on notice not to release the monies on the bank guarantee, pending the hearing and disposal of the notices of application for Erinford Injunction," the group said.
Gabungan AQRS Bhd's net profit for the second quarter ended June 30, 2018 (2QFY18) more than doubled to RM19.1 million from RM7.23 million a year ago, thanks to higher revenue from both its construction and property development segments.
Quarterly revenue jumped 134% year-on-year (y-o-y) to RM187.19 million from RM79.83 million, the group's stock exchange filing today showed.
For its cumulative six months ended June 30, 2018 (1HFY18), the group's net profit jumped 52% y-o-y to RM35.57 million from RM23.37 million, as revenue strengthened 32% to RM314.69 million from RM238.77 million.
Moving forward, Gabungan AQRS said the group anticipates a better financial performance in FY18 compared to FY17, as construction progress for its ongoing construction jobs picks up pace.
Atlan Holdings Bhd registered a net profit of RM7.38 million in the first quarter ended May, 2018 — 35.4% lower than RM11.43 million in the same period last year — as its revenue fell significantly owing primarily to a "supply shortage of certain popular products in the global market".
Revenue was 21.5% lower at RM170.53 million compared to RM217.31 million a year ago. Earnings per share amounted to 2.91 sen against 4.5 sen last year.
Atlan said the drop in revenue in its duty free segment was largely due to shortage of supply of certain popular products in the global market, which had affected group revenue.
The property and hospitality segment also recorded lower revenues as a result of reduced occupancy rates. Lower revenues coupled with higher operating expenditure led to lower profits for the segment.
Kumpulan Jetson Bhd's wholly-owned subsidiary Jetson Construction Sdn Bhd has bagged a contract worth RM88.03 million to build four blocks of serviced apartments at Jalan Yap Kwan Seng, Kuala Lumpur.
The letter of award was received from Ken Wong Architect, which issued it on behalf of O&C Makok Isola Sdn Bhd.
The contract entails the construction of the main building and external works for four blocks of serviced apartments totalling 140 units. The project's tenure is 32 months, with the commencement date to be confirmed by the architect.
Nova MSC Bhd has entered into an agreement with Japan Asia Group Ltd to dispose of its 51% equity interest in Singapore-based engineering consulting firm Primustech Pte Ltd for S$3 million or equivalent of approximately RM8.9 million.
Nova MSC said loss-making PrimusTech had performed below management's expectations, mainly because PrimusTech operated within Singapore's highly competitive market.
The proposed disposal will allow Nova MSC to focus its resources on the e-Government and healthcare application solution segments, which in the management's opinion have good prospects and high growth potential, as the company has already secured book orders of some RM117 million.
SKH Consortium Bhd is proposing to acquire a 70% stake in property development firm Rimbun Gabungan Sdn Bhd for RM12 million in cash, from a company in which Bina Puri Holdings Bhd's founder Dr Tony Tan Cheng Kiat is a director.
SKH said it inked a share sale agreement with Bijak Fajar Sdn Bhd and Newston Development Sdn Bhd for the proposed acquisition.
The directors of Rimbun Gabungan are Tan, David Ng Chee Hwa, Zailan Abdul Ghapar and Heap Wei Guan. Tan and Ng are both directors of Bijak Fajar, which has a 70% stake in Rimbun Gabungan, while Zailan and Heap are directors of Newston, which owns the remaining 30% in Rimbun Gabungan.
Under the agreement, SKH will buy 49% from Bijak Fajar, and 21% from Newston — giving it control of 70% in Rimbun Gabungan.
Rimbun Gabungan is set to receive the rights to develop a piece of government leasehold land in Setapak that has been alienated for affordable housing from its sister company, Rimbun Purnama Sdn Bhd, which was awarded the land last year. The two companies have common shareholders and directors.
Based on an independent valuation in April this year, the market value of the land was set at RM24.52 million. The proposed affordable housing project on the plot, comprising two blocks of residential apartments, will have an estimated gross development value of RM252 million.