Aeon Co, IHH Healthcare, Benalec Holdings, Melewar Industrial, Genting Malaysia, water-related stocks

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KUALA LUMPUR (Sept 12): Based on news flow and corporate announcements today, the stocks that may be in focus on Monday (Sept 15) could include the following: Aeon Co (M) Bhd, IHH Healthcare Bhd, Benalec Holdings Bhd, Melewar Industrial Group Bhd, Genting Malaysia Bhd and water-related stocks.

Department store-cum-supermarket operator Aeon Co (M) Bhd (AEON Malaysia) is venturing into the furniture retail market, with the opening of its first home and interior furnishing store in IOI City Mall, Putrajaya, in November.

Dubbed “AEON Index Living Mall”, AEON Malaysia managing director Nur Qamarina Chew said the new home and interior furnishing outlet, measuring 6,800 sq m, will be the group’s flagship store.

The new store will be run by AEON Index Living Sdn Bhd, which is a 70:30 joint venture with Index Living Mall Co Ltd — a Thai furniture company.

Aeon climbed 0.79% to end at RM3.84 today, resulting in a market capitalisation of RM5.4 billion.

Over at IHH Healthcare Bhd, the healthcare group has proposed to fully acquire Singapore-based Radlink-Asia Pte Ltd (Radlink) for S$137 million (RM346.5 million).

In a filing to the exchange, IHH said its indirect wholly-owned subsidiary, Medi-Rad Associates Ltd, today entered into a sale and purchase agreement with Fortis Healthcare Singapore Pte Ltd, for the proposed acquisition of Radlink.

Following the acquisition, the subsidiaries and associate company of Radlink will be consolidated into the IHH group.

IHH Healthcare counter fell 0.2% to close at RM4.98 today, translating to a market capitalisation of RM40.73 billion.

Meanwhile, Benalec Holdings Bhd is proposing to issue a seven-year convertible secured bond (CB), with a nominal value of up to RM200 million. Most of the proceeds — about RM146.5 million — will be used for its reclamation works.

Benalec said the interest rate will be based on a fixed rate, to be determined prior to the issuance.

Its share price dropped 0.54% to 92.5 sen at 5pm today, with 1.92 million shares done, giving it a market capitalisation of RM739.5 million.

Water-related stocks Kumpulan Perangsang Selangor Bhd (KPS), Puncak Niaga Holdings Bhd, Gamuda Bhd, pipemakers Engtex Group Bhd, YLI Holdings Bhd and JAKS Resources Bhd, as well as water treatment plant contractors Salcon Bhd, Ahmad Zaki Resources Bhd, MMC Corp Bhd, would be gaining some grounds on Monday, following the signing of a master agreement today between the Federal government and the Selangor state government, on the Klang Valley water restructuring exercise.

In a joint statement today, Energy, Green Technology and Water Minister Datuk Seri Dr Maximus Ongkili and Selangor Menteri Besar Tan Sri Abdul Khalid Ibrahim said the master agreement was signed by Treasury secretary-general Tan Sri Mohd Irwan Serigar Abdullah, Selangor state secretary Datuk Mohammed Khusrin Munawi, Water Asset Management Co (PAAB) chief executive officer (CEO) Datuk Ahmad Faisal Abdul Rahman, and Pengurusan Air Selangor Sdn Bhd (PASSB) CEO Suhaimi Kamaralsaman.

“The share sale agreement between PASSB and the respective parties will be signed soon, which will complete the process of acquiring the Selangor water concession companies, and thus finalise the process of the water industry restructuring,” read the statement.

KPS dipped 5.76% to close at an intraday low of RM1.8 today, which translated to a market capitalisation of RM898.2 million, while Puncak Niaga fell 0.86% to end at RM3.44, with a market capitalisation of RM1.41 billion.

Gamuda and Ahmad Zaki both closed unchanged at RM4.83 and 77 sen, with a market capitalisation of RM11.22 billion and RM371.2 million respectively.

MMC Corp went up 3.91% to close at an intraday high of RM2.66, translating to a market capitalisation of RM8.1 billion.  

Salcon Bhd rose 1.17% to end at 86.5 sen, after climbing to as high as 87.5 sen, giving it a market capitalisation of RM583.4 million.

MMC Corp, Salcon and Ahmad Zaki had formed a consortium and bagged the Langat 2 water treatment plant project, with a contract sum of RM993.8 million.

After climbing to an intraday high of RM2.04, Engtex Group Bhd ended 3.76% higher at RM1.93, resulting in a market capitalisation of RM377.9 million.

YLI closed unchanged at 86.5 sen, with a market capitalisation of RM85.1 million, while JAKS Resources dropped 1.91% to 77 sen, with 2.64 million shares done. Its market capitalisation was at RM337.5 million.

Melewar Industrial Group Bhd has proposed to divest its wholly-owned steel unit, Melewar Steel Sdn Bhd (MST), to Mycron Steel Bhd for RM70 million.

In a filing to Bursa Malaysia, Melewar said the consideration would be paid via 104.5 million new shares from Mycron at 44 sen per share for a total of RM46 million, and the novation of a RM24 million debt owned by Melewar to Mycron.

“The proposed disposal of MST will not result in any gain or loss to the Melewar group,” the company said in its filing.

Melewar plunged 4% to close at an intraday low of 48 sen, with 7.26 million shares changing hands. Its market capitalisation was at RM108.3 million.

As for Genting Malaysia Bhd (GenM), the gaming group has announced today that its unit BB Entertainment Ltd (BBEL) has entered into a sale and purchase agreement with real estate developer, Rav Bahamas Ltd (RAV), to acquire a piece of land in Bahamas worth US$24.6 million (RM78.7 million).

The land, valued at US37.6 million, is located on Bimini Island in Bahamas. It measures some 16.2 acres and GenM intends to construct a 307-key hotel there.  

After rising to as high as RM4.52 today, GenM closed 0.46% higher at RM4.39, giving it a market capitalisation of RM24.9 billion.