KUALA LUMPUR (Dec 30): Based on corporate announcements and news flow today, companies that may be in focus tomorrow (Thursday, Dec 31) could include: Ho Hup, FGV, Konsortium Transnasional and AirAsia X.
Builder cum property developer Ho Hup Construction Co Bhd has gained entry into the granite quarrying business, via the acquisition of a company with quarrying rights for RM2 million cash.
In a filing with Bursa Malaysia today, Ho Hup said its indirect 70%-owned subsidiary, Ho Hup Ventures (Malacca) Sdn Bhd, has signed a share sale and purchase agreement with Ong Chin Cheong, Ong Chin Yet and Noor Azman Nordin (collectively the vendors) for the acquisition of 1 million shares, representing the entire share capital, in Erakuasa Global Sdn Bhd (EGSB).
EGSB owns 75% equity in ACV-ICM Quarry Sdn Bhd (AIQSB), which owns the quarrying rights to a site measuring 102.3ha in Taboh Naning, Melaka. As such, the acquisition gives Ho Hup an effective 52.5% stake in AIQSB.
The other equity partner in AIQSB is I.C.M. Industries Corp Bhd, which is wholly-owned by Kolej Teknologi Islam Melaka Bhd (KTIMB), which is in turn owned by the Melaka state government.
KTIMB is the owner of the quarry land and has granted a power of attorney to ICM on April 21, 2004 to deal with the quarry land, of which the lease expires on March 25, 2028.
Palm oil cultivation giant Felda Global Ventures Holdings Bhd (FGV) has inked a memorandum of understanding (MoU) with several agencies to collaborate on the development of the smallholder supply chain risk assessment model.
In a filing with Bursa Malaysia, FGV said it signed the MoU with World Resources Institute, Procter & Gamble Co, Malaysia Institute for Supply Chain Innovation, Wild Asia, Proforest Initiative and Daemeter Consulting.
“The MoU sets out the understanding and intention of the parties during this interim exploratory period,” said FGV.
“The MoU shall remain valid for three years or such extended period, as agreed in writing by the parties,” it added.
Public bus transport operator Konsortium Transnasional Bhd (KTB), which expects to slip into a loss in the financial year ending Dec 31, 2016, is calling on the government to increase bus fares to cushion increasing operational costs experienced by bus companies.
KTB chairman and managing director Tan Sri Mohd Nadzmi Mohd Salleh said today that the company's profit margin is currently under pressure for increase in operational costs, due to the implementation of the goods and services tax (GST) and the weaker ringgit.
He said an increase in bus fares would help the company to offset operational costs related to the purchase of spare parts and phasing out of old buses.
"The government had approved for a 22.6% hike in bus fares to be implemented in May this year, but pulled it back due to the increase in cost of living," he said on the sidelines, after a signing ceremony between Nadicorp Holdings Sdn Bhd and the Malaysian Rubber Board for the trial use of environmental-friendly rubber tyres.
"But it is difficult for companies like us to cope with the current situation. If it persists, we could record losses next year," he added.
Long haul aviation operator AirAsia X Bhd is selling its Airbus designated pilot examiner (DPE) kits to a related party, Asian Aviation Centre of Excellence Sdn Bhd (AACE), for US$2.38 million (about RM10.22 million).
The sale of DPE Kits include the title to and all interest in the aircraft parts.
In a filing with Bursa Malaysia, AirAsia X said the airline and AACE have signed a sale agreement for the acquisition.
The purchase price was arrived at, pursuant to the market value of the DPE kits comprising data package, simulation software package and kit of genuine aircraft parts to be installed in the aircraft simulation training device.
“The purchase price for the DPE kits and aircraft manufacturer’s licence is US$2.38 milliion, exclusive of taxes, and AACE will bear such taxes and duties as applicable,” it said.
(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)