KUALA LUMPUR (Dec 7): Based on corporate news flow and announcements today, stocks in focus tomorrow (Tuesday, Dec 8) could include: SapuraKencana, Instacom, CB Industrial, E&O, KUB, CAB Cakaran, CLIQ Energy, SILK, Signature and SWS Capital.
SapuraKencana Petroleum Bhd has clinched two new projects and secured an extension for an existing job; the contracts have a collective value of US$72 million (RM300 million).
SapuraKencana said the new contracts involved upstream support services each in Malaysia and India.
In Malaysia, it secured a four-month engineering, procurement, construction and commissioning contract for simultaneous production and drilling from Roc Oil (Sarawak) Sdn Bhd.
In India, SapuraKencana secured a subcontract for the Vasai East project from main contractor L&T Hydrocarbon Engineering. The project is scheduled for completion in March 2016.
SapuraKencana also announced a five-month extension to an existing project in Africa's Ivory Coast, which means its drilling services for Foxtrot International LDC are now expected to be completed by August 2016. The drilling rig is known as SKD Alliance.
Instacom Group Berhad was awarded a RM116.4 million contract by CRCC Malaysia Bhd to construct a gated community housing scheme comprising semi-d units, villa mansions, apartment block and housing units, under the Selangorku Scheme in Gombak, Selangor.
The LoA is subject to an agreement to be entered into by Vivocom and CRCC. With this job, the Instacom Group has, to date, successfully secured projects amounting to almost RM600 million from CRCC, a company owned by China Railway Construction Corp Ltd.
“We are in final negotiations for more projects. Hence, there will most definitely be more contracts secured over 2016 and 2017, and beyond,” said Instacom's CEO, Datuk Seri Dr Yeoh Seong Mok.
He added that Instacom Group’s pipeline projects are estimated to be RM2 billion currently.
CB Industrial Product Holding Bhd (CBIP) has bagged a contract worth RM51.08 million from PT Ichtiar Gusti Pudi, a subsidiary of Ahmad Zaki Resources Bhd, to supply one continuous sterilisation palm oil mill, with a capacity of 60 tonnes per hour.
CBIP said its unit, Modipalm Engineering Sdn Bhd, received the letter of award (LoA) for the project last Friday (Dec 4). Under the contract, CBIP is tasked to supply the palm oil mill at Kabupaten Landak, Kecamatan Ngabang, Kalimantan Barat, Indonesia.
The LoA is expected to contribute positively to the earnings of CBIP Group for the financial years ending Dec 31, 2016 (FY16) and 2017 (FY17).
Eastern & Oriental Bhd (E&O) has secured up to RM1.084 billion loan facility to finance its reclamation and infrastructure works for the Seri Tanjung Pinang Phase 2 (STP2) project in Penang.
The property company said its subsidiary, Tanjung Pinang Development Sdn Bhd (TPD), has executed a Facility Agreement with Maybank Islamic Bank Bhd and RHB Islamic Bank Bhd, in relation to the syndicated banking facilities.
E&O's managing director Datuk Seri Terry Tham Ka Hon said the syndicated banking facilities will be used to part-finance the reclamation and infrastructure works of the STP2 project in Penang.
Tham also stressed that all relevant requirements and authorities’ approvals for STP2 are in hand, including the approval of the project’s Detailed Environmental Impact Assessment (DEIA) study by the Department of Environment, endorsement of the STP2 masterplan, and granting of the planning permission for STP2 reclamation works by the Penang state authorities.
KUB Malaysia Bhd is transferring its 88.29% stake, including of 273,000 units of preference shares held by individual shareholders in A&W Restaurants (Thailand) Co Ltd (A&W Thai), to a Thai citizen for RM3.69 million cash.
The purchase consideration, KUB said, was arrived at, after adjustment of certain assets and liabilities of A&W Thai.
KUB said its wholly-owned subsidiary Restoran Kualiti Sdn Bhd (RKSB), and A&W (Malaysia) Sdn Bhd (AWM), had entered into a Share Purchase Agreement with Kulpavee Chalermmeateewong last Friday (Dec 4) for the above share transfer.
The transfer is expected to be completed on or before the closing date, subject to the approval of the Franchisor, A Great American Brand International Pte. Ltd. The conditional period expires on Dec 12, 2015.
KUB said that RKSB agreed to novate the inter-company liabilities of RM45.34 million to the purchaser, while the purchaser will assume the liabilities encompassing trade creditors of RM290,000 and other creditors of RM230,000, following the completion of the proposed transfer.
A&W Thai will cease to be its subsidiary, afterwards.
KUB will net a gain of RM5.72 million from the deal; the proceeds will be utilised for its working capital in the first quarter of 2016.
Penang-based poultry player CAB Cakaran Corp Bhd said it is in the midst of discussion with Indonesia’s Salim Group in relation to the investment by Salim Group in the company, confirming a report by The Edge Financial Daily today.
However, CAB Cakaran said other than the memorandum of understanding (MoU) entered into between CAB with KMP Private Ltd that was announced earlier today, the company has not finalised the discussion on Salim's investment, at this junture.
It noted, however, that it would make the necessary announcements in due course, should any relevant agreements pertaining to the above-mentioned investment be finalised between the relevant parties.
CAB Cakaran was referring to the article titled, Indonesia's Salim Group eyeing 20% of CAB Cakaran? published by the daily today, which, citing a source, said that Salim Group is eyeing as much as a 20% stake in CAB and that both parties had been in talks for months. The deal is expected to be concluded soon.
CAB Cakaran said its MoU with Salim Group is for a proposed 10:90 joint venture (JV) to undertake poultry operations in Indonesia. CAB will have the option to increase its shareholding percentage up to 30% in the next three years’ time, after the initial setup, depending on its financial condition.
CAB Cakaran said the MoU was a prelude to a JV agreement with Salim Group, the businesses of which included food and fast-moving consumer goods.
CLIQ Energy Bhd (CLIQ) has clarified today that its proposed rights issue to raise at least RM210 million (US$49.95 million) is still on.
The cash call was announced in October to address a potential shortfall between its trust account cash and payment of the initial US$90 million for its qualifying acquisition (QA) of a 51% stake in Phystech II Joint Stock Company.
CLIQ directors said its announcements made to the Bursa Malaysia to-date, still remains.
It is in the midst of compiling and finalising information in connection with an updated application to be submitted to the Securities Commission, in light of, among others, the proposed rights issue with warrants and proposed increase in authorised share capital, it added.
It said it would make necessary announcement to the Bursa Malaysia, should there be any material development to the proposal.
The company was responding to a news article titled CLIQ may not need a cash call published by The Edge Malaysia for the week of Dec 7-13, 2015. The news report, citing sources, said CLIQ may cancel its RM210 million cash call, due to the lower valuation on its QA.
The QA involved acquiring a 51% stake in a vehicle, housing Phystech Firm LLP’s two onshore Kazakhstan oilfields.
SILK Holdings Bhd’s net loss narrowed to RM1.1 million in the three months ended Oct 30, 2015, compared with RM3.28 million a year ago.
Revenue declined 9.15% to RM97.74 million, from RM107.54 million recorded in the same time last year, due to what it described as an increasingly competitive and challenging economic landscape, which saw the group recording a loss before tax for the quarter of RM300,000, compared to a pre-tax profit of RM1.1 million previously.
Meanwhile, for the fifteen months period ended Oct 31, 2015, SILK’s net loss was at RM24.62 million or 3.69 sen per share. Revenue was at RM537.24 million.
SILK changed its financial year end from July 31 to Dec 31. Therefore, its audited financial statements will be for 17 months, from Aug 1, 2014 to Dec 31, 2015.
Modular kitchen and wardrobe provider Signature International Bhd expects a slower growth in the financial year ending June 30, 2015 (FY16), due to slower replenishment of orders.
"The revenue recognition in FY15 was too fast, some of them should have spread to FY16," Signature's group managing director Tan Kee Choong told reporters, after the annual general meeting today. As such, he said the company may not be able to maintain the growth momentum from its last financial year.
Still, Tan said he remains optimistic on the outlook for FY16, with the current orderbook standing at RM140 million, while its tenderbook is at RM400 million.
Furniture manufacturer SWS Capital Bhd’s plan to raise up to RM10.08 million via a private placement of up to 10% of its issued and paid-up share capital for business expansion and working capital seems to have hit a snag.
In a filing with Bursa Malaysia today, SWS Capital’s board of directors have been served with an injunction order issued by the Kuala Lumpur High Court to restrain the board from implementing its proposed private placement exercise announced on Nov 30, 2015.
The originating summons for the injunction was filed by its two new substantial shareholders Tan Sri Tan King Tai and his wife Puan Sri Chan Mei Cheng, as well as Tan Hui Ting, Tan Hui Lun and Tan Kean Aik. Tan and his wife Chan controls a direct and indirect holdings of 22.6% in SWS — as at Dec 2 — after a warrant conversion a day earlier.
The filing did not state the reasons for the injunction, merely that the inter-partes hearing of the notice of application for the injunction is fixed at 9am, on Dec 16 (Wednesday), at the Kuala Lumpur High Court. SWS Capital said the company is seeking legal counsel on its next course of action.
It should be noted that in announcing the issue price of 76.5 sen for the placement shares on Dec 1, SWS also said the placement shares are not intended to be placed to a director, major shareholder, chief executive of SWS or the holding company of SWS (interested person), any person connected with an interested person, or any nominee corporations, unless the names of the ultimate beneficiaries are disclosed.
(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.)