Thursday 28 Mar 2024
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KUALA LUMPUR (Oct 26): Based on corporate announcements and news flow today, stocks in focus tomorrow (Thursday, Oct 27) may include: BHS Industries Bhd, MRCB-Quill Real Estate Investment Trust (MQREIT), Tek Seng Holdings Bhd, Yong Tai Bhd, Sarawak Cable Bhd and Sumatec Resources Bhd.

BHS Industries Bhd said it is in talks with potential investors to build a tissue paper factory, as part of the Phase 1 development of Pekan Green Technology Park in Kg Paloh Hinai, Pekan, Pahang.

The Pahang state government had on March 10 this year approved and granted its wholly-owned subsidiary, Ultimate Ivory Sdn Bhd, a piece of land measuring 26 acres in Kg Paloh Hinai, Pekan, Pahang for development of the first phase of the Pekan Green Technology Park.

"(We are) presently talking to potential investors and once (we) have anything to report, (we) will make an announcement to Bursa Malaysia."

All in, BHS is developing 375 acres of land in Pekan into a green technology park, where the main industries located in the park will be using green technology to convert empty fruit bunches into pulp and paper, box liner paper, corrugated paper and tissue paper. They will also be using bio-technology to convert frond to agro-feed, and other palm waste into organic fertiliser.

The development of Pekan Green Technology Park will be divided into five phases.

Work on phase 1 has begun and BHS is building a pulp and paper mill there, with an annual production capacity of 10,000 tonnes. The mill is expected to be ready for production by late first half of 2017.

MRCB-Quill Real Estate Investment Trust (MQREIT) is planning to establish a 20-year medium term notes (MTN) programme by end-2016, according to its manager, MRCB Quill Management Sdn Bhd (MQM).

The MTN Programme will act as a long-term debt financing platform to cater for immediate and future opportunistic acquisitions, as well as its future refinancing requirements, MQM said.

MQM chief executive officer Yong Su-Lin said another growth opportunity that will supplement MQREIT’s income flow is the proposed acquisition of Menara Shell, which is set to be completed by end of 4QFY16.

On completion of the buy, Menara Shell's contribution should come on board from 1QFY17, Yong said.

MQREIT’s net property income in the third quarter ended Sept 30, 2016 grew 0.2% to RM25.53 million, from RM25.49 million a year ago, dragged down by higher property operating expenses, due to higher repairs and maintenance costs incurred.

Net income dipped 3.2% from RM15.73 million or 2.38 sen a unit in 3QFY15, to RM15.23 million or 2.3 sen a unit in 3QFY16, mainly due to higher manager's fee, trustee’s fee, valuation fee and administrative expenses.

However, revenue gained 2.2% to RM32.5 million, from RM31.81 million, as a result of additional revenue from Platinum Sentral, and higher rental income due to step up rent adjustments from QB2, QB3 and Wisma Technip.

Tek Seng Holdings Bhd has declared a single-tier third interim dividend of 1 sen per share for the financial year ending Dec 31, 2016. The ex-date for the dividend is Nov 23, whereas the payment date is on Dec 21, according to its note to Bursa Malaysia.

The solar cell producer noted that its net profit for the second quarter ended June 30, 2016 nearly quadrupled to RM16.23 million, from RM3.69 million a year earlier, as a result of higher revenue and operating income. Revenue, too, doubled to RM159.53 million, from RM78.87 million.

Yong Tai Bhd has sold en bloc RM461 million worth of properties in Phase 1A of its RM5.4 billion Impression City mixed development in Melaka to Orient Venture Properties Bhd.

The group has also secured a fit out contract valued at RM412 million with Orient Venture Properties, to carry out renovation works on the property, according to its chief executive officer Boo Kuang Loon.

Yong Tai is also finalising and securing the investment and/or financing of about RM800 million from Golden Bridge United Holdings Group (HK) Ltd to expedite the execution of its Impression Melaka and Impression City projects.

Sarawak Cable Bhd has secured a contract worth RM55.9 million from Tenaga Nasional Bhd, to build two double circuit transmission lines.

The deal is expected to contribute positively to Sarawak Cable’s earnings and net assets for the financial years ending Dec 31, 2017 (FY17) and FY18.

The contract states that Sarawak Cable will lay the planned 500 kilovolt (kV) and 275kV double circuit transmission lines from Point Z to Point M (border of Pahang with Selangor).

Sumatec Resources Bhd today said its Miri-based associate Semado Maritime Sdn Bhd has defaulted on the repayment of RM165.21 million having been due to Bank Pembangunan Malaysia Bhd on Oct 18 and 19.

Semado said a delay in securing the completion of sale of two vessels as cause of the default.

In its filing with Bursa Malaysia today, Sumatec said on Oct 11 and 12 that Semado was slapped with a writ of summons and warrant of arrest on its vessels Semua Mutiara and Semua Muhibbah respectively, by Messrs Joseph & Partners — the solicitors acting on behalf of Bank Pembangunan.

Under the writ of summons, in return for release of the vessels, Bank Pembangunan is claiming RM143.32 million (including RM100,000 in cost) in settlement, or providing alternative security totalling RM165.21 million by way of either a first class bank guarantee or a letter of undertaking from a P&I Club, who is a member of the International Group of P&I Clubs.

Semado has within seven days to do so.

The sum to be guaranteed of RM165.21 million comprises a principal amount of RM143.32 million, interest at 5% up to Oct 4, 2016 of RM21.5 million, and RM400,000 in cost.

Sumatec said Semado is arranging for inspection of the vessels by interested buyers. It has also requested for extension of time from Bank Pembangunan, to complete the sale of the vessels.

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