KUALA LUMPUR (Feb 4): Based on corporate newsflow and announcements today, companies that will be in focus on Friday, Feb 5, may include: Raya International, SapuraKencana Petroleum (SK Petro), MKH, Dialog, Technodex, Amcorp Properties (AmProp), Acoustech, AirAsia, Astro, Mega First and Maxis.
Raya International Bhd, which is involved in the distribution of water filter components and the trading of fast moving consumer goods, plans to diversify its principal activities to include oil bunkering and the trading of oil related products.
The group is also proposing a special Bumiputera issue of up to 20.50 million Raya shares, representing approximately 12.5% of its issued and paid-up share capital, to Bumiputera investors to be identified later, to raise gross proceeds of up to RM4.51 million, at an indicative price of 22 sen per share.
The group told the bourse that it is no longer manufacturing its water and air filter products since early 2014, as they are not cost-competitive against other cheaper and imported products.
It added that the group had incorporated Selatan Bunker (M) Sdn Bhd in September 2015, to initiate the diversification. Selatan Bunker is also in the midst of applying for the necessary licensing for oil bunkering and trading activities.
“Barring any unforeseen circumstances, the diversification plan is expected to contribute 25% or more of the net profits of the group and may result in a diversion of more than 25% of the net asset of the group, to an operation which differs widely from its current operations,” it said.
The Bumiputera issuance is to meet its Bumiputera equity requirement.
SapuraKencana Petroleum Bhd (SK Petro) has bagged jobs consisting of contracts and contracts extensions for engineering, construction and drilling services, with a combined value of approximately US$382 million (RM1.58 billion).
Among the contracts won were by SapuraKencana GE Oil & Gas Services Sdn Bhd, which is a joint venture (JV) between SapuraKencana Services Shd Bhd and GE Power Systems (Malaysia) Sdn Bhd.
The JV company was awarded a contract by Murphy Sarawak Oil Company Ltd for comprehensive maintenance of GE-supplied turbomachinery equipment, under a long-term service agreement.
This comprises the provision of maintenance services for GE-supplied gas turbines and centrifugal compressors, and carries a contract period of approximately 10 years.
SapuraKencana GE Oil &Gas Services was also awarded a contract by Petronas Floating LNG1 (L) Ltd for comprehensive maintenance of GE-supplied turbomachinery equipment, under a long-term service agreement.
This comprises the provision of maintenance services for GE-supplied aeroderivative gas turbines, centrifugal compressors and electric generators and electric motors, and has a contract period of 10 years, with an option to extend for an additional period of five years.
As for its drilling services, SK Petro’s wholly-owned subsidiary SapuraKencana Drilling Jaya Ltd has been granted an extension to its contract with BP Trinidad & Tobago LLC, for the provision of its Semi-submersible Tender Assist Drilling Rig “SKD Jaya”.
BP has extended the use of the SKD Jaya for an additional one well in its development drilling campaign offshore Trinidad and Tobago, and is expected to remain on contract until April 2016.
The contracts are expected to contribute positively towards the earnings of SK Petro, principally for the financial year ending Jan 31, 2017; and for contracts extending beyond Jan 31, 2017, during their respective contract periods for the financial period(s) thereafter.
MKH Bhd's indirect subsidiary Amona Metro Development Sdn Bhd plans to acquire an 84% stake in Temara Pekeliling Sdn Bhd, the owner of a 1.5-acre leasehold plot in Kuala Lumpur — part of the land where the Pekeliling Flats used to stand — for RM5 million.
MKH told Bursa Malaysia that Amona has entered into a master share sale agreement with Amona Land Sdn Bhd, Che Hasnadi Bin Che Hassan and Temara Pekeliling Sdn Bhd, to pave the way for the acquisition.
Amona Land holds a 90% stake in Temara Pekeliling, while Che Hasnadi holds the remaining 10%. Temara Pekeliling owns a 1.5-acre leasehold plot of land in Kuala Lumpur, with a 99-year lease expiring on Dec 27, 2084.
The land is located to the west of Jalan Pahang roundabout, along Jalan Tun Razak, and is near Putra World Trade Centre, Malaysian Medical Association and Institute of Medical Research and National University of Malaysia (UKM) Kuala Lumpur Campus.
MKH said Amona Metro Development has paid the RM5 million to the vendors, through internally-generated funds.
The GDV of the land is approximately RM380 million, and valuation by Rahim &Co Chartered Surveyors Sdn Bhd on Feb 27, 2015 pegs the value of the land at RM78.4 million.
Meanwhile, Amona Metro Development and MKH will assume liabilities arising from the commodity murabahah term financing-i facility of RM50 million granted by RHB Islamic Bank Bhd to Temara Pekeliling, and will offer a corporate guarantee of RM50 million in favour of the bank to secure the repayment by the customer of the murabahah facility, together with profit and other monies payable thereon, to partly finance the purchase of the land.
MKH said the acquisition is in line with the group's strategy to acquire land or companies which own strategically-located land banks for the group's future property development projects.
The purchase of shares is expected to contribute positively to the future earnings of the group.
Dialog Group Bhd and national oil company Petroliam Nasional Bhd (Petronas) has mutually terminated their small field risk service contract (RSC), a contract to develop marginal oil field in Sarawak, citing depressed oil price as the reason.
Dialog said in a bourse filing that its jointly-controlled entity, BC Petroleum Sdn Bhd (BCP), has ceased its operation and had on Feb 3, signed a termination by mutual agreement with Petronas to mutually terminate the RSC. The termination's effective date was Dec 1, 2015.
BCP is 32%-owned by Dialog's wholly-owned subsidiary, Dialog D&P Sdn Bhd, 48%-owned by Roc Oil Malaysia (Holdings) Sdn Bhd and 20% held by Petronas Carigali Sdn Bhd, Petronas' exploration and production arm.
The RSC is for the development and production of petroleum from the Balai Cluster Fields, located offshore Bintulu, Sarawak. It was inked by Dialog D&P, Roc Oil and Petronas Carigali on Aug 16, 2011, and subsequently novated to BCP.
With the termination of the RSC, Dialog said BCP will receive the balance of the capital expenditure reimbursement within the first half of 2016.
"Dialog's total losses, amounting to approximately US$10 million, had been substantially provided for in the group's financial results. As such, the termination is not expected to have any material effect on the earnings, net assets and gearing of Dialog for the current financial year ending June 30, 2016," the filing read.
E-business enabler Technodex Bhd (TDEX) plans to undertake a private placement of up to 10% of its issued and paid-up share to raise up to RM3.99 million to fund its business development plans and increase its share capital.
The group told the bourse that the issue price and investors of the placement shares will be determined later.
At an indicative price of 10 sen per share, it is expected to raise gross proceeds of between RM3.75 million and RM3.99 million, based on the minimum and maximum scenarios.
The raised proceeds will be utilised for working capital or business development purposes, and it is expected to contribute positively to the future earnings of the group.
Amcorp Properties Bhd's (AmProp) net profit for the third quarter ended Dec 31, 2015 (3QFY16) fell 9.4% to RM5.33 million, from RM5.88 million a year earlier.
The lower profit could be due to higher cost of sales, which increased to RM32.25 million in 3QFY16 versus RM24.97 million a year ago.
The group told Bursa Malaysia that its revenue for 3QFY16 surged 17.7% to RM46.64 million, from RM39.64 million, of which Malaysian property projects contributed RM21.8 million and the renewable energy and contracting division contributed RM24.8 million.
For the cumulative nine months (9MFY16), its net profit jumped 157% to RM78.75 million, from RM30.58 million, mainly contributed by its overseas properties arising from gain on disposal of its property investment in Merchant Square, Paddington, London. Revenue dipped 2.08% to RM122.15 million, from RM124.75 million a year earlier.
The group expects an improved performance in the current financial year ended March 31, 2016 (FY16), as compared to FY15.
Acoustech Bhd's executive director (ED) Leong Ngai Seng, 43, has emerged as its largest shareholder with the purchase of 28.15 million shares, representing a 16.8% stake in the company on Jan 29, 2016.
On the same date (Jan 29), Acoustech’s former non-independent non-executive director and major shareholder Shih Chao Yuan had exited the group, with the disposal of 46.44 million shares or a 27.8% stake in the company, held through Formosa Prosonic Manufacturing Sdn Bhd.
According to Bursa Malaysia filing, Leong and Toh Kie Ho, 39, had purchased 25.77 million Acoustech shares, representing a 15.4 % stake, through their vehicle ACTE Properties Sdn Bhd on Jan 29.
Leong had also purchased a further 2.38 million or 1.4% of Acoustech shares via Adscore Sdn Bhd on the same date, bringing his total purchase to 28.15 million shares or a 16.8% stake. He also has direct shareholdings of 4.81 million shares or 2.87% stake in the company.
Toh, who hails from the construction industry, is a non-executive director in Teras Eco Sdn Bhd.
AirAsia Bhd and Malaysia Airlines Bhd today won their appeal over the RM10 million fine imposed on each of the companies, by Malaysia Competition Commission (MyCC).
The Competition Appeal Tribunal has unanimously set aside the RM10 million fine imposed by MyCC on both the airlines.
In the decision today, the tribunal's chairperson Datuk Hasnah Mohamed Hashim said fines that have been paid, shall be refunded.
On Sept 6, 2013, MyCC had found MAS and AirAsia guilty of anti-competition practices under Section 4(2)(b) of the Competition Act 2010, by entering into a share-swap agreement in 2011, which was subsequently called off by Khazanah Nasional Bhd in 2012. Following the findings, the commission had fined the two airlines RM10 million, each.
Astro Malaysia Holdings Bhd has secured the English Premier League (EPL) broadcast rights in Malaysia for the next three seasons, from 2016/17 to 2018/19.
Astro chief operating officer Henry Tan said in as statement that Astro has strengthened its position as the home of sports and the choice for sports fans, by winning the rights to all Premier League matches for the seasons from 2016/17 to 2018/19.
Mega First Corp Bhd is set to have a "very well" medium-term outlook moving forward, in conjunction with the completion of the group's Laos US$500 million Don Sahong 260MW hydropower plant, executive chairman Goh Nan Kioh said.
"We will try to do our best in the short term, but in the medium term, it will be very well," he told pressmen, after the group's extraordinary general meeting today.
For FY16 ended Dec 31, 2016, Goh expects MFCB's revenue growth to remain flat, but believes there will be continuous growth in the bottom line.
Maxis Bhd's net profit rose 38% to RM468 million in its fourth quarter ended Dec 31, 2015 (4QFY15), from RM339 million a year earlier, as service revenue grew.
The mobile telecommunication network provider told the bourse that its revenue for 4QFY15 rose 2.5% to RM2.18 billion, from RM2.12 billion.
The group’s full-year 2015 (FY15) net profit also increased by 1.22% to RM1.74 billion, from RM1.72 billion. Revenue was higher at RM8.6 billion versus RM8.39 billion.
Maxis declared a dividend of five sen per share for the quarter in review, bringing the full-year payout to 20 sen per share.
On FY16 prospects, Maxis said it would stay focused on maintaining its strong market position in an increasingly competitive and challenging economic environment.