KUALA LUMPUR (Jan 19): Based on corporate announcements and news flow today, companies that may be in focus on Friday (Jan 20) include Axis REIT, F&N, Ekovest, Pavilion REIT, Destini, TH Heavy Engineering, MMC Corp, UMW Oil & Gas, UMW Holdings and Versatile Creative.
Axis Real Estate Investment Trust (REIT) said it expects its total assets under management (AUM) to grow by more than 10% for its financial year ending Dec 31, 2017, contributed by the completion of Phase 1 of Axis PDI Centre and a few more acquisitions the trust is eyeing.
Axis REIT Managers Bhd chief executive director Leong Kit May said the REIT’s AUM stood at RM2.19 billion as at end-FY16, with the completion of the first phase of Axis PDI Centre to increase its AUM to approximately RM2.4 billion.
Axis REIT is also targeting to complete the acquisition of Kerry Warehouse in Pasir Gudang, Johor, within the first quarter of 2017 and is also aiming to acquire four more assets in Selangor, Pahang and Johor, with a combined asset value of RM400 million.
Fraser & Neave Holdings Bhd (F&N) is focused on growing exports to expand the soft drink and dairy product manufacturer's business.
F&N chief executive officer Lim Yew Hoe said exports represent a crucial pillar for the company and it is transforming its Malaysian operations to increase market presence and grow sales.
Lim said F&N is transforming its decades-old route-to-market strategy into a combined route-to-market approach to ensure greater efficiency.
Ekovest Bhd’s shareholders unanimously approved the proposed disposal of the 40% equity interest held in Konsortium Lebuhraya Utara-Timur (KL) Sdn Bhd (Kesturi) to the Employees Provident Fund Board (EPF) for a total cash consideration of RM1.13 billion and the proposed share split in the company during the Extraordinary General Meeting (EGM) held today.
The proposed share split involves the subdivision of every two existing ordinary shares of RM0.50 each into five ordinary shares of RM0.20 each in Ekovest while the proposed amendments to Ekovest’s memorandum of association will facilitate the implementation of the proposed share split.
With the disposal, a special dividend of 25 sen per share will be distributed to shareholders of Ekovest while the remainder will be used for repayment of borrowings, exit payment, working capital and expenses for the corporate exercise.
Pavilion Real Estate Investment Trust (REIT) posted a net property income of RM76.99 million in the fourth quarter ended Dec 31, 2016 (4QFY16), up 4% from RM73.96 million a year ago.
Its net profit was 29% higher at RM131.7 million or 4.36 sen per share from RM102 million or 3.38 sen per share in 4QFY15 due to higher revenue.
Its revenue rose 13.5% to RM117.5 million from RM103.5 million in the previous year due to its rental income from two new properties.
It has proposed a 4.08 sen distributable income for the second half of the financial year ended Dec 31, 2016 (FY16), amounting to RM123.3 million, payable on Feb 28.
Ajiya Bhd saw its net profit for the fourth financial quarter ended Nov 30, 2016 (4QFY16) rise 64% to RM7.05 million or 4.68 sen per share from RM4.3 million or 5.64 sen per share a year earlier, due to higher operating profit.
However, its 4QFY16 revenue fell 7% to RM100.54 million from RM108.15 million in 4QFY15, mainly due to weaker market conditions especially in the construction sector, which in turn affected demand for the group's products.
A joint venture (JV) between Destini Bhd and TH Heavy Engineering Bhd (THHE) has bagged a RM738.9 million contract from the government to supply three offshore patrol vessels (OPVs) for the Malaysian Maritime Enforcement Agency (MMEA).
In a joint statement today, Destini and THHE said the contract was secured by THHE Destini Sdn Bhd, which is 51% owned by Destini and 49% by THHE.
Destini managing director Datuk Rozabil Abdul Rahman said with the latest contract win, Destini has secured shipbuilding contracts from MMEA worth more than RM1.1 billion to date.
THHE chief executive officer Suhaimi Badrul Jamil said the OPV contract award marks the beginning of the group’s diversification strategy.
Destini and THHE said the 83-metre vessels will be the largest vessels to date in the MMEA fleet.
MMC Corp Bhd is disposing of wholly-owned MMC Oil & Gas Engineering Sdn Bhd for RM50 million in its bid to focus on its core businesses.
MMC said the buyer is Melati Pertiwi Sdn Bhd.
MMC Oil & Gas provides professional engineering services to the oil and gas industry.
MMC expects to have a one-off gain on disposal of RM16.5 million from the proposed disposal. The proceeds would be used for working capital purposes.
UMW Oil & Gas Bhd (UMWOG) has started the consolidation among local oil and gas (O&G) players with its planned demerger from UMW Holdings Bhd (UMWH). UMWOG will in turn acquire the O&G assets of Ekuiti Nasional Bhd (Ekuinas). Its acquisitions are valued at RM721.61 million.
UMWH said its demerger with the listed O&G unit will be through a proposed 'distribution in specie' of its 55.73% stake in UMWOG back to all entitled shareholders.
Subsequently, the group plans to progressively exit its 12 non-listed O&G assets by end FY2018 and focus on its core businesses instead.
UMWOG has also entered into two sales purchase agreements with Ekuinas to consolidate all of the latter's O&G assets, namely Icon Offshore Bhd and Orkim Sdn Bhd, with UMWOG.
Loss-making print and packaging solutions provider Versatile Creative Bhd said its appointment as the main contractor to build a halal vaccine plant, pharmaceutical plant and research centre in Bandar Enstek, Negeri Sembilan, has been terminated.
It said its termination in the project costing US$69.3 million (RM308.49 million) was made by Oriental Mace Sdn Bhd due to Versatile Creative not officially accepting the offer and not having embarked on the project.
It added that Oriental Mace could not grant further extension of time to complete the feasibility study.