KUALA LUMPUR (Oct 27): Based on corporate announcements and news flow today, stocks in focus tomorrow may include: Sunway REIT, Pavilion REIT, Perisai Petroleum Teknologi Bhd, TH Heavy Engineering Bhd, Destini Bhd, Yinson Holdings Bhd and Gadang Holdings Bhd.
Sunway REIT’s net property income (NPI) for the first quarter ended Sept 30, 2016 rose 6.8% year-on-year thanks to the resilient performance from its retail segment. NPI for the quarter stood at RM96.07 million compared with RM89.94 million previously.
It also proposed higher interim income distribution of 2.27 sen per unit — an increase of 7% from the 2.12 sen declared last year. The proposed payout represents a full distribution of its realised distributable income of RM66.85 million versus RM62.33 million previously.
Revenue for the period rose 6.3% y-o-y to RM128.88 million, from RM121.22 million, though net profit was marginally lower by 0.6% at RM64.14 million, against the RM64.51 million it recorded previously.
The retail segment witnessed a growth of 14.5% in its revenue, contributed by higher average net rental for the Sunway Pyramid Shopping Mall, completion of the remodelling of a new food and beverage area on the second floor of Sunway Carnival Shopping Mall as well as higher average occupancy in Sunway Putra Mall.
Its hotel segment, however, saw revenue and NPI decline by 20.5% and 21.5% y-o-y respectively, mainly due to the closure of Sunway Pyramid Hotel (formerly known as Sunway Pyramid Hotel East) since April 2016 for a 12-month refurbishment, with projected completion to be in third quarter financial year ending 2017 (3QFY17).
Performance in the office segment of Sunway REIT was also compromised by the unsatisfactory take-up rates in Sunway Tower and Sunway Putra Tower.
Pavilion REIT posted an 11% increase in NPI to RM80.71 million for the third quarter ended Sept 30, 2016 (3QFY16), from RM72.73 million a year earlier, contributed by rental income from two new properties, Damen Mall and Intermark Mall.
Revenue climbed 14.7% to RM117.54 million, from RM102.48 million in 3QFY15.
The manager of Pavilion KL shopping mall said it utilised some RM9.1 million of its capital commitment during the year, mainly for continuous toilet upgrading works and enhancement to its common corridor, as well as the creation of a new drop-off entrance on Jalan Bukit Bintang and upgrading of the entrance on Jalan Raja Chulan.
Going forward, Pavilion REIT expects the retail prospects to remain challenging, due to low consumer sentiment. “Operating cost will continue to be scrutinised to enhance productivity," it added.
Perisai Petroleum Teknologi Bhd's 51%-subsidiary, SJR Marine (L) Ltd has defaulted on its financing facility of US$20.5 million (RM85.97 million) from OCBC Al-Amin Bank Bhd.
SJR Marine has been slapped with a notice today from the solicitors for OCBC Al-Amin.
"The notice requires repayment of the sum of US$20,544,527.32 under the facility within 14 days from the date of the notice," Perisai said.
The filing also mentioned that SJR Marine is seeking legal advice on the matter.
To recap, Perisai which is now a Practice Note 17 (PN17) company, defaulted on the principal and interest on a S$125 million RM376.57 million) bond early this month.
Perisai had also announced that it has been served with a winding-up petition due to the company's failure to make payment on the sum of S$15 million plus interest. Ravi Murarka is the petitioner who holds S$15 million of the S$125 million bond that Perisai defaulted on.
Perisai said the company has sought preliminary legal advice and intends to challenge and oppose the petition.
TH Heavy Engineering Bhd (THHE) and Destini Bhd entered into a joint venture to pursue a shipbuilding contract entailing the supply of three offshore patrol vessels for the Malaysian Maritime Enforcement Agency (MMEA).
The jobs comprise supply, delivery, testing and commissioning of the three vessels for MMEA, including the performance of an industrial collaboration programme as required by the government.
The vessels, measuring 80 metres each, will be the three largest vessels in MMEA’s fleet. Construction of the vessels is expected to take three and a half years.
Yinson Holdings Bhd announced today that Datuk Yeow Kheng Chew has ceased to be a substantial shareholder after disposing of 101.77 million shares representing some 9.33% in the company based on its outstanding shares.
In a bourse filing, Yinson said the shares were disposed of by Yeow via Trinity View Sdn Bhd, in which he had a direct interest.
It is learnt that Yeow had disposed of the shares mainly to local institutions. The shares were believed to have been sold at RM3 per share.
Trinity View had on Oct 17, 2016, acquired a 10.987% stake in Yinson, i.e. 119.71 million shares, from Kencana Capital Sdn Bhd — the investment vehicle in which Tan Sri Mokhzani Mahathir holds a 70% stake — for some RM367.5 million or RM3.07 per share.
Kencana Capital’s stake sale resulted in the cessation of Mokhzani as a substantial shareholder in Yinson. Yeow is a close associate of Mokhzani.
Yeow was charged in July this year along with two others — Paulene Chee Yuet Fang and her remisier, Tan Yee Chee — for insider trading in relation to the proposed merger of Kencana Petroleum Bhd and SapuraCrest Petroleum Bhd in 2011.
At the time, Yeow was the executive director of Kencana Petroleum, while Mokhzani was its chief executive. Both Mokhzani and Yeow resigned from Kencana Petroleum in 2015.
Gadang Holdings Bhd saw its net profit fall by as much as 20% to RM16.62 million or 6.46 sen per share for the first quarter of its financial year ended May 31 2017 (1QFY17) from RM20.86 million or 9.61 sen per share.
The construction and property player’s revenue for the period tumbled to RM104.6 million from RM149.38 million due to lower revenue inflow from its construction division. According to the group, this was mainly due to the completion of some projects.
Despite an uptick in revenue for its property division, profit before tax however fell from RM16.65 million to RM13.45 million caused by higher development progress achieved for projects with lower margins.
“The property division’s focus is on building affordable homes for the current financial year, in line with market demand. Continuous efforts are directed at securing property joint ventures with land owners having approved development plans,” the company said.