AAX, PPB Group, Inix, Ipmuda, Fintec Global and Ageson

AAX, PPB Group, Inix, Ipmuda, Fintec Global and Ageson
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KUALA LUMPUR (Sept 4): Based on corporate announcements and news flow today, companies that may be in focus on Monday (Sept 7) include AirAsia X Bhd, PPB Group Bhd, Inix Technologies Holdings Bhd, Ipmuda Bhd, Fintec Global Bhd and Ageson Bhd.

AirAsia X Bhd (AAX) has been hit with a US$22.98 million (RM95.33 million) suit in the UK for alleged breach of contract. AAX and its indirect wholly-owned subsidiary AAX Leasing Two Ltd have received a letter detailing a legal claim by BOC Aviation Ltd (BOCA), which alleged that AAX Leasing Two had breached its obligations under the lease agreements. There were also breaches under the leases' respective guarantees dated Dec 28, 2018, it claimed.

PPB Group Bhd, whose net profit for the first half of financial year 2020 (1HFY20) grew 27% year-on-year, expects its financial performance to remain resilient in 2HFY20, supported by its grains and agribusiness, as well as its consumer products segment.

PPB group managing director Lim Soon Huat said the grains and agribusiness segment, which had to contend with volatility in grain prices and foreign exchange rates in 1HFY20, was not significantly impacted by the COVID-19 pandemic, as it is in the production and distribution of essential food products. The consumer products business is also expected to maintain sales growth momentum by focusing on food services and other channels via the e-commerce marketplace.

However, the group's film exhibition and distribution business — which owns and operates the Golden Screen Cinemas (GSC) and posted a loss for 1HFY20 due to the Movement Control Order — is expected to continue to be affected by the COVID-19 pandemic, while most movie title releases have been deferred to 2021.

Inix Technologies Holdings Bhd said in a stock exchange filing today that it is in early talks with parties developing a COVID-19 vaccine. Inix was responding to a report in the New Straits Times that said the ACE Market-listed firm had obtained access to the supply of COVID-19 vaccine, and that a formal agreement on the deal was expected to be signed within weeks

The report also said Inix is poised to build a medical rubber glove plant in Perak via a joint venture with a State-owned company there. "[The group] would like to reiterate that the above-mentioned matters are all in preliminary stage and [we] will make the relevant announcements as and when they materialise," Inix said.

Building materials trader Ipmuda Bhd's subsidiary has bagged a contract worth RM78 million to design and build a 100MW alternating current photovoltaic solar generation facility in Marang, Terengganu. Its wholly-owned Ipmuda Rensol Sdn Bhd executed the engineering, procurement, construction and commissioning (EPCC) contract with Coara Marang Sdn Bhd today.

Fintec Global Bhd is planning a rights issue with free warrants — on a five rights issue with four free warrants for every five existing Fintec shares held — to raise funds to venture into the manufacturing of medical grade nitrile gloves with the initial setting up of a factory with 12 glove-dipping lines, which will cost RM81.9 million.

The issue price of the rights shares has yet to be fixed, but at an indicative price of 8 sen per share, the technology incubator hopes to raise at least RM15 million from the cash call. To meet the minimum subscription level, Fintec has procured an undertaking from its executive director Tan Sik Eek, to apply and subscribe in full for his rights entitlement, and any additional rights shares not taken up by other entitled shareholders to the extent that at least RM15 million is raised from the exercise.

Ageson Bhd said RHB Bank Bhd is suing the group over an RM33 million term loan obtained by its wholly-owned subsidiary Ageson Development Sdn Bhd.

Ageson said it had signed a corporate guarantee and indemnity under which it agreed to pay RHB for the amount owed by Ageson Development.

RHB had used RM662,689.50 from the debt service reserve account maintained by Ageson Development to reduce the indebtedness under the loan, the group said in a filing with Bursa Malaysia.

It said RHB is seeking RM20.8 million as at July 31, with a 3.5% interest per annum above the bank’s base lending rate on daily basis with monthly rests from Aug 1 until the date of full settlement.

Tan Choe Choe