Handal Resources, MMHE, MAHB, MBSB, E&O, Ni Hsin, QL Resources, Lay Hong, Iris Corp

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KUALA LUMPUR (Nov 3): Based on corporate announcements and newsflow today, the companies that may be in focus tomorrow (Tuesday, Nov 4) could include the following: Handal Resources, MMHE, MAHB, MBSB, E&O, Ni Hsin, QL Resources, Lay Hong and Iris Corp.

Handal Resources Bhd’s order book grew to RM191 million, after it’s wholly-owned subsidiary Handal Offshore Services Sdn Bhd secured a crane fabrication contract worth RM6.3 million from Sarawak Shell Bhd.

In a statement, Handal said the contract win demonstrated the “increasing confidence” of oil and gas majors in the company’s capacity and capability, and believed the affirmation would pay dividends for Handal, going forward.

Malaysia Marine and Heavy Engineering Holdings Bhd (MMHE) has secured contracts for fabrication and other associated works for two exploration and production projects offshore Peninsular Malaysia, worth RM350 million.

The first contract, in which MMHE is a subcontractor for Hyundai Heavy Industries Co Ltd, will be for the fabrication of well head platform and its jacket, the connecting bridge, and heavier jacket for the central processing platform for the North Malay Basin (NMB) Bergading Complex.

The second contract is for the procurement, construction, hook up and commissioning contract for the Besar A-well head platform and its jacket, as well as the associated host tie-in work for PETRONAS Carigali Sdn Bhd.

Malaysia Airports Holdings Bhd (MAHB) saw its net profit for the third quarter ended Sept 30, 2014 (3QFY14) plunge 98.6% from a year ago, to RM1.61 million, due to higher costs incurred by its new low cost-carrier terminal in Sepang (klia2).

The airport operator said it registered higher depreciation and amortization costs due to the completion of klia2, higher finance costs due to the cost of borrowing for the construction of the terminal, and had also recorded higher utilities cost, mainly due to the additional consumption of electricity after the commencement of klia2 and a higher tariff.

On top of expenses related to klia2, MAHB also suffered higher employee benefit expenses due to annual increments and additional recruitments.

Revenue for 3QFY14 also fell 30.5% to RM675.76 million, from RM972.7 million a year ago, in which MAHB pointed out there were no construction revenue recognized in 3QFY14, following the completion of klia2 and the expansion of the Penang International Airport, in which RM357.3 million was accounted for in the same quarter last year.

Malaysia Building Society Bhd (MBSB) saw its net profits for 3QFY14 surge 45% year-on-year (y-o-y) to RM192.37 million, from RM132.72 million, due to higher operating income from its Islamic banking operations and conventional business, as well as lower allowances for impairment losses on loans, advances and financing.

MBSB, which is in a three way merger to form a mega Islamic Bank with CIMB Group Holdings Bhd and RHB Capital Bhd, saw its revenue for 3QFY14 rise 5% y-o-y to RM678.99 million, from RM644.03 million previously.

The banking group said it had maintained its growth momentum by remaining focused on the expansion of its corporate segment, with total disbursement amounting to RM1.7 billion as at September this year.

Earnings from the corporate segment, which contributed 10.9% from total gross loan and financing as at September 2014, as compared to 9.2% as at December 2013, were predominantly contributed by the property development sector.

Eastern & Oriental Bhd (E&O) will raise up to RM500 million through private issue of debt securities (PDS), which will be used  for investments, property development expenditure, working capital and/or general corporate purposes accoss the group.

E&O said it had obtained the Securities Commission’s (SC) nod via a letter received on Oct 31, for this purpose.

With the SC’s approval, E&O said that they are closer to realizing their proposal to raise close to half a billion of funds on a fixed funding cost for a period of five years, which will enable the property developer to reduce exposure to interest rate fluctuations and manage cash flow more effectively.

Cookware manufacturer Ni Hsin Resources Bhd announced today that Pelaburan MARA Bhd had on Oct 30 purchased a 5.2% stake in the company, becoming a substantial shareholder.

Ni Hsin also stated in a separate announcement today that Hsiao Chih Che, who is an executive director and substantial shareholder in the company, had disposed off 11.83 million Ni Hsin shares for a disposal price of 36 sen per share, bringing the total disposal consideration to RM4.26 million.

QL Resources Bhd had announced to Bursa Malaysia that its takeover offer to acquire all shares in Lay Hong Bhd at RM3.50 per share, has been extended to 5pm on Nov 26, from its initial closing date of Nov 5.

QL has been accumulating Lay Hong shares on the open market, since it launched the takeover offer on Sept 24, resulting in its shareholding in the poultry firm increasing to 37.31% from 26.81%.

The takeover offer is conditional upon QL having received acceptances, which would result in holding in aggregate of more than 50% of the voting shares in Lay Hong.

Iris Corp Bhd has entered into a share sale agreement to fully acquire British Virgin Island-incorporated NSH Northern Shine Holdings Ltd for RM16.3 million, in an effort to gain “greater control” and “eventual ownership” of a Thai based incineration plant.

Iris said it had on Oct 31 this year, entered into a share sale agreement with Marin Global Ltd for the entire share capital of NSH — an investment holding firm which owns some 1.78 million shares or a 24% stake in PJT Technology Co Ltd.

PJT, in which Iris currently owns 51%, operates the Phuket Municipal Solid Waste-to-Energy Incineration Power Plant in Phuket, Thailand, and upon the successful acquisition, Iris would then own a 75% stake in PJT.

The full acquisition of NSH shares are to be funded by internal funds and bank borrowings, and is expected to contribute positively to the group in the long run.