KUALA LUMPUR (March 24): Based on corporate announcements and news flow today, companies that may be in focus tomorrow (March 25) could be: SapuraKencana, EITA Resources, Sime Darby, Fajarbaru, Alam Maritim, Kuantan Flour Mills, PBA Holdings, Hai-O and MAHB.
SapuraKencana Petroleum Bhd reported a 62% fall in its fourth quarter net profit from a year earlier, as the firm registered higher depreciation and amortisation, besides foreign exchange losses.
In a statement to the Bursa Malaysia today, oil and gas support services provider SapuraKencana (fundamental: 1.3; valuation: 1.8) said provision for impaired receivables and properties also curbed profit growth, as the firm contended with lower crude oil prices.
“The global oil and gas industry is experiencing difficult times,” SapuraKencana said.
SapuraKencana said net profit fell to RM129.13 million in the fourth quarter ended Jan 31, 2015 (4QFY15), from RM337.23 million. Revenue was however higher at RM2.39 billion, versus RM1.88 billion.
Elevator and busduct manufacturer EITA Resources Bhd is keen on bidding for the next work package to supply elevators and escalators for the Klang Valley Mass Rapid Transit (MRT) Project, said its group managing director Fu Wing Hoong.
"The MRT is a new infrastructure and we are thankful that the government has given us a chance and of course, when it comes to the next phase, we will work hard to deliver the job to the satisfaction of the client," he told reporters after the group's annual general meeting today.
"We would like to continue bidding (for the project), as we have the experience needed to undertake such a challenging job," he added.
EITA Resources (fundamental: 1.7; valuation: 1.2) has clinched two MRT contracts to supply elevators and escalators worth RM95 million in total.
Sime Darby Bhd will compulsorily acquire the remaining shares in UK and Papua New Guinea-listed New Britain Palm Oil Ltd (NBPOL) under the proposed privatisation of the latter.
In a filing with Bursa, Sime Darby (fundamental: 1.00; valuation: 0.9), which had secured 98.8% of NBPOL, said it would compulsorily acquire the remaining shares from NBPOL shareholders who had yet to accept the offer at £7.15 (RM5.4687) per share.
Sime Darby said its wholly-owned subsidiary Sime Darby Plantation Sdn Bhd had today despatched the acquisition notice to holders of the outstanding NBPOL shares to acquire their shares.
"Following the completion of the compulsory acquisition, NBPOL will become an indirect wholly-owned subsidiary of Sime Darby.
Fajarbaru Builder Group Bhd’s wholly-owned unit Fajarbaru Builder Sdn Bhd (FBSB) has received a letter of acceptance from Prasarana Malaysia Bhd for works relating to the Kelana Jaya light rail transit (LRT) line extension project.
The construction group told Bursa that contract encompassed the construction, completion, testing and commissioning of remaining works of stations 1, 2 and 3, TPSS A & B, including civil works, external works and all other associated works.
The contract is valued at RM108.97 million, to be completed on Jan 15, 2016.
Alam Maritim Resources Bhd said its 51:49 joint venture company with Singapore-listed Vallianz Holdings Ltd, Deepsea Leader Venture (L) Inc, is acquiring offshore support vessel dubbed "OLV Venture 1" for US$60 million (RM218.76 million).
Alam Maritim (fundamental: 1.6; valuation: 1.2), in a filing to Bursa, said Deepsea’s wholly-owned subsidiary MDSV 1 (L) Inc has signed a memorandum of agreement (MoA) with Wellspring Marine Trading Ltd for the purchase today.
According to the group, OLV Venture 1 was built in 2014 and is currently registered in China.
The vessel is planned to be deployed in the operational waters of Malaysia and Southeast Asia to support the exploration and production (E&P) activities in the region, it said, and that the acquisition should be completed by mid-April 2015.
Kuantan Flour Mills Bhd’s (KFM) proposed reverse takeover (RTO) of water filtrations systems provider NEP Holdings (M) Bhd (NEP) fell through, after the company received a legal claim of approximately US$1.62 million for trade finance facilities.
KFM (fundamental: 0.8, valuation: 0.6) said both it and NEP had agreed not to extend the heads of agreement (HoA) in view of, among others, a writ of summons and statement of claim filed by LH Asian Trade Finance Fund Ltd, for various trade finance facilities granted to the flour mill company.
“Following the mutual termination of the HoA, the parties will not be pursuing or taking any legal action against each other,” its filing to Bursa read.
KFM said it will incur direct expenses in connection with the signing of the HoA and up to the final date, but did not disclose the amount.
PBA Holdings Bhd, Penang's licenced water supply operator, has taken the Kedah government to task over comments that Penang should pay Kedah for drawing raw water from the Greater Ulu Muda water-catchment area.
In a statement today, PBA CEO Jaseni Maidinsa said the catchment area was a shared enclave between both states. Jaseni said the Muda River, which courses through the catchment area, serves as a boundary between Kedah and Penang, and Penang draws raw water from the river at its own costs.
“The Muda River does not belong to Kedah. The raw water from the river does not accidentally flow into Penang’s Sungai Dua Water Treatment Plant.
“The raw water needs to be pumped from the Lahar Tiang Intake through the Sungai Dua Canal. The related costs of pumping and maintenance costs are not ‘free’,” Jaseni said.
Traditional medicine company Hai-O Enterprise Bhd saw its net profit fall 33.5% to RM7.07 million for its third financial quarter ended Jan 31, 2015 (3QFY15), from RM10.63 million a year ago, mainly driven by lower revenue and higher import cost due to a weaker ringgit.
Earnings per share (EPS) fell to 3.73 sen, from 5.29 sen in 3QFY14.
In a filing with Bursa, Hai-O (fundamental: 3; valuation: 1.2) said revenue dropped 13.5% to RM61.96 million, from RM71.64 million in 3QFY14.
For the nine months period (9MFY15), the group’s net profit fell to RM20.7 million, from RM29.75 million a year ago; while revenue was 11.7% lower at RM169.47 million, from RM191.92 million in 9MFY14. EPS for in 9MFY15 fell to 10.57 sen, from 15.10 sen in 9MFY14.
Malaysia Airports Holdings Bhd (MAHB) intends to dispose of its entire 10% stake in Delhi International Airport Pte Ltd (DIAL), the operator of India’s Indira Gandhi International Airport (Delhi Airport), for US$79 million (RM292.6 million).
In its filing with Bursa, MAHB said it was selling the stake because India’s law limits foreign ownership of domestic companies to 49%, which means it would not be able to gain a controlling stake in the company.
In a filing with Bursa, MAHB (fundamental: 1.15; valuation: 1.8) said its wholly-owned subsidiary, Malaysia Airports (Mauritius) Pte Ltd (MAM), had entered into a conditional share sale agreement with GMR Airports Ltd for the disposal.
MAHB said its original cost of investment for the stake in DIAL was US$57.62 million. The proposed disposal is expected to complete by the second quarter of 2015.
(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.)