Gas Malaysia, Gamuda, MMC Corp, WCT Holdings, HeiTech Padu, George Kent

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KUALA LUMPUR (Oct 29): Based on news flow and corporate announcements today, companies that may be in focus tomorrow (Thursday, Oct 30) could include the following: Gas Malaysia Bhd, Gamuda Bhd, MMC Corp Bhd, WCT Holdings, HeiTech Padu Bhd and George Kent (M) Bhd.

Companies which consume plenty of natural gas, for instance the steel makers and rubber glove manufacturers, may be in the limelight after the government’s move to raise natural gas prices.  

Gas Malaysia Bhd announced it has raised the natural gas selling price for non-power sector in Peninsular Malaysia, which resulted from the tariff revision made by the government.

In a filing with Bursa Malaysia today, Gas Malaysia highlighted that the purchase price of gas procured from Petroliam Nasional Bhd (Petronas) will be “accordingly adjusted upwards”.

“The purchase price shall take into account the blended price of domestic natural gas, as well as the liquefied natural gas (LNG) price, basing on the volume to be purchased by Gas Malaysia.   

“Gas Malaysia wishes to emphasise that there will be no change to the selling prices for customers under category A. Category A customers represent the residential segment,” it said in a statement.

Gas Malaysia added the tariff increase does not apply to liquefied petroleum gas (LPG).
 
Gamuda Bhd and MMC Corp Bhd have been appointed as the project delivery partner (PDP) for the Klang Valley Mass Rapid Transit Line 2 project, which will run from Sungai Buloh to Putrajaya via Serdang.

The MRT Line2 is estimated to cost about RM23 billion.

In two separate Bursa Malaysia filings this evening, Gamuda and MMC said they had received a letter from Mass Rapid Transit Corporation Sdn Bhd, appointing a joint venture company to be established between MMC and Gamuda.

“The terms and conditions of the PDP’s appointment will be contained in a project delivery partner agreement, to be negotiated and agreed," both filings said.

MMC Corp closed one sen higher at RM2.52 with a market capitalisation of RM7.67 billion, while Gamuda closed one sen lower to RM4.99, giving it a market capitalization of RM11.60 billion.

WCT Holdings Bhd has bagged a shopping complex construction job along Jalan Cochrane in Kuala Lumpur, worth RM651.62 million, from Boustead Ikano Sdn Bhd.

In a filing with Bursa Malaysia today, WCT said its wholly-owned subsidiary WCT Bhd had accepted a Letter of Acceptance dated Oct 27 from Boustead Ikano, for the contract.

Under the contract, the construction and property development company will undertake all the works relating to the construction of a major retail shopping centre.

The works is expected to be completed in second half of 2016.

WCT said the contract is expected to contribute positively to the group's future earnings and net assets.

Its share price closed one sen lower at RM2.10, with 289,700 shares traded, translating into a market capitalization of RM2.29 billion.

HeiTech Padu Bhd announced it has been awarded a government contract to maintain the Road Transport Department's wide area network connectivity and services, worth RM10.3 million, bringing its total contract value clinched this year to RM292.03 million.
 
In an announcement to Bursa, HeiTech said the one-year contract — the sixth job it has bagged this year so far — will end on July 25, 2015.
 
“Any further renewal or extension of the duration is at the discretion of the government," it said in a filing to Bursa Malaysia.
 
On financial implications, HeiTech said the contract is expected to contribute positively to its future earnings.
 
HeiTech Padu closed at 65 sen today, giving it a market capitalization of RM65.8 million.

George Kent (M) Bhd, a water meter manufacturer and a construction outfit, has received a Letter of Award (LOA) from the Ministry of Health (MOH) to design and build Phase Two of Kuala Lipis Hospital (Lipis Two), for a contract sum of RM57 million.

“The project is to be completed over a period of 30 months and is due for completion in April 2017,” said George Kent in an announcement to Bursa Malaysia.

“This is in line with the group’s long term strategy to actively bid for current and up-coming infrastructure and engineering related projects,” it added.

Lipis Two is the second MOH project awarded to George Kent, and is an extension of Phase One that was completed in 2012, worth RM97.75 million.

George Kent also expects the contract to positively contribute to its earnings.

George Kent closed unchanged at RM1.48 today with 284,500 shares transacted, giving it a market capitalization of RM444.61 million.