KUALA LUMPUR (Dec 1): Based on corporate announcements and news flow today, companies that might be in focus tomorrow (Wednesday, Dec 2) include the following: Protasco, UEM Sunrise, WCT, PRG, Pos Malaysia, DRB-Hicom, MKH, EP Manufacturing, Iris, HLFG, Malakoff, Muhibbah and FGV.
Protasco Bhd has secured a contract worth RM300.5 million from the government to build 1,100 houses in Putrajaya under the 1Malaysia Civil Servants Housing Programme.
In a filing today, the company said its unit Protasco Development Sdn Bhd had received a letter of award from Perbadanan Putrajaya for the contract.
It expects the project to contribute positively to its future earnings.
UEM Sunrise Bhd and WCT Holdings Bhd plan to undertake a RM3 billion mixed-property project in Serendah, Selangor, under a proposed equally-owned joint venture (JV).
In a statement to Bursa Malaysia today, UEM Sunrise said the JV intended to develop the freehold land, measuring 243ha (608.63 acres).
UEM Sunrise and WCT had today signed a conditional subscription and shareholders agreement, under which UEM Sunrise proposed to buy a 50% stake in the expanded share capital of Jubiliant Courtyard Sdn Bhd (JCSB) for RM214.88 million.
Land owner JCSB is currently a wholly-owned subsidiary of WCT. Upon completion of the stake buy, UEM Sunrise and WCT will own 50% each in JCSB.
At the signing ceremony, UEM Sunrise's managing director and chief executive officer Anwar Syahrin Abdul Ajib said the JV was a move to strengthen the company's position, by expanding outside southern Johor.
"The contribution of this project is expected to come in from 2018 onwards. Over a period of 10 years, it will contribute significantly to our profit," Anwar Syahrin said.
PRG Holdings Bhd, which is diversifying its core business to include property development and construction, announced today that its executive director (ED) Datuk Seri Yeoh Soo Ann has stepped down from his post, effective yesterday.
The company, formerly known as Furniweb Industrial Products Bhd, told that Yeoh's resignation came after he ceased to be a substantial shareholder in the company.
According to the group, Yeoh had sold his entire stakeholding of 25.449 million shares yesterday (Nov 30), a 17.57% stake in PRG, for an undisclosed amount; he still owns 7.9 million warrants in PRG.
Pos Malaysia Bhd and Konsortium Logistik Bhd (KLB) have entered into a partnership to provide a vehicle shipping service between Peninsular Malaysia and East Malaysia.
The service, which will be provided via KLB's vehicle carrier vessel, MV Zara Sofia, will operate between two and three shipments per month, with a frequency target of 28 shipments per year.
MV Zarah Sofia has a load capacity of 2,500 vehicles.
KLB is a fully-owned subsidiary of KL Airport Services Sdn Bhd, under the DRB-HICOM Group.
DRB-Hicom Bhd's chief operating officer Datuk Mohamed Razeek Md Hussain said getting a figure above 1,300 capacity per shipment will already be profitable for the business.
The price of shipment per unit ranges between RM1,500 and RM1,600 between Peninsular Malaysia and East Malaysia, and vice versa.
Property developer MKH Bhd, formerly Metro Kajang Holdings Bhd, has partnered with Japanese company PanaHome Corp — the housing subsidiary of global electronics giant Panasonic Corp — to undertake design and building construction works in Malaysia.
The partnership will be effected via their investments into the joint venture company (JVco), PanaHome MKH Malaysia Sdn Bhd, which will be established by end December, according to a joint statement by Panasonic and MKH today.
The JVco will focus on conducting building contract works for numerous residential and apartment development projects undertaken by MKH. It will have a paid-up capital of RM9 million.
PanaHome's local subsidiary, PanaHome Malaysia Sdn Bhd, will take up 51% in the JVco, while MKH — via its subsidiary Kajang Resources Corp Sdn Bhd — will hold the remainder 49%.
According to the statement, Panasonic has set a target of 50 billion yen (RM1.7 billion) in consolidated sales in the fiscal year ending March 31, 2019, for its overseas business.
"Of the 50 billion yen, PanaHome aims to generate 15 billion yen (RM520 million) in sales from the Malaysian market. Through the establishment of the new JVco, PanaHome will accelerate its efforts to expand its business to attain these goals," the statement read.
EP Manufacturing Bhd has tied up with Japan's Y-tec Corp to supply automotive parts to Mazda Malaysia Sdn Bhd (Mazda Malaysia).
In a filing with Bursa, the automotive systems and components manufacturer said its unit Peps-JV (M) Sdn Bhd has entered into a conditional shareholders' agreement (SA) with Y-tec for the establishment of a joint venture (JV) company.
"The JV company will be the vehicle for the proposed JV to supply automotive parts to Mazda Malaysia," said EP Manufacturing.
The products will be manufactured by Peps-JV (Kedah) Sdn Bhd, another wholly-owned subsidiary of the company.
EP Manufacturing said Peps-JV will hold a 60% equity stake in the JV company that is yet to be established, while the remaining 40% will be controlled by Y-tec.
Digital identification solutions provider Iris Corp Bhd, which ventured into property development just early this year, was awarded a mixed development contract in Putrajaya that carries an estimated gross development cost (GDC) of RM622.73 million.
In a filing with Bursa, Iris said it received the letter of award, dated Nov 26, from Putrajaya Corp to undertake the proposed development of Perumahan Penjawat Awam 1Malaysia (PPA1M) and a mixed development (commercial and residential buildings) at Presint 19, on a tract measuring 16.2 acres.
It has accepted the appointment for the project, and said the job — involving the construction of 1,928 units of residential houses under PPA1M, with 508 residential houses and 22 units of commercial buildings for open sale — is expected to be completed in 30 months.
Hong Leong Financial Group Bhd’s (HLFG) rights issue, which targets to raise gross proceeds of RM1.1 billion, is oversubscribed by 12.48%, according to the group's filing to Bursa today.
The country's fifth largest bank by total assets had offered a total of 94.75 million new shares in HLFG at RM11.60 per rights share, on the basis of nine rights shares for every 100 existing HLFG shares held by entitled shareholders.
HLFG said as at the close of acceptance last Tuesday (Nov 24), it received applications for 106.57 million shares, representing an oversubscription of 12.48%.
The rights shares are expected to be listed on the Main Market of Bursa next Monday (Dec 7).
Malakoff Corp Bhd is suing Tanjung Bin Power Plant’s Japanese boiler manufacturers and service operators for about RM780 million, due to breaches of duty which have led to various incidents of boiler tube failure and inability to meet certain output requirements.
In a filing with Bursa, Malakoff said its subsidiary, Tanjung Bin Power Sdn Bhd (TBP), had filed a writ of summons and statement of claim against IHI Corporation Japan, ISHI Power Sdn Bhd and IHI Power Systems (M) Sdn Bhd, for “breaches of the duty of care” owed to the power plant.
“The breaches have led to at least 22 different boiler tube failure incidents at the plant and the inability of the plant to meet certain required output conditions,” Malakoff said in the filing.
IHI Corporation is the manufacturer and supplier of the equipment, parts and components for boilers and the boiler system in the 2,100MW coal-fired plant.
ISHI Power and IHI Power Systems provided services to TBP for, among other things, coal blending, maintenance and operations of the boilers and mills of the plant. TBP is the owner and operator of the plant.
Muhibbah Engineering (M) Bhd has bagged a RM300 million engineering, procurement, construction and commissioning (EPCC) contract to construct two temporary construction facilities in Pengerang, Johor.
In a filing with Bursa, the oil and gas services provider said Petronas Refinery and Petrochemical Corp Sdn Bhd, a subsidiary of Petroliam Nasional Bhd (Petronas), has awarded the package 20A-3 of the Refinery and Petrochemicals Integrated Development (Rapid) project to the group on Nov 25, but was only acknowledged by the group yesterday (Nov 30).
The EPCC job was for the Petronas Rapid Temporary Village (RTEV) and Petronas Rapid Temporary Management Office, within the RAPID project.
“The construction is scheduled to commence immediately and is expected to be completed by end November 2016," Muhibbah said.
Felda Global Ventures Holdings Bhd (FGV), which is exploring other "possible different mode of investment" in PT Eagle High Plantations, has provided more clarity on the matter today.
In a filing with Bursa, the state-controlled plantation group said the possible different mode of investment may comprise potential joint venture, off take agreement or other forms of mutually-agreed collaborations.
"The board envisaged that a conclusive mode of investment in Eagle High would be announced in 2016," it added, without giving a specific time frame.
Yesterday (Nov 30), the plantation giant announced it was in discussion with PT Rajawali Capital International for "a possible different mode of investment in PT Eagle High Plantations".
The announcement came after months of delay in the finalisation of the deal between the two parties and the weakening ringgit that has made the acquisition even costlier.
(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)