Sime Darby, Tune Ins, Yinson, Sunway REIT, LPI, Mitrajaya, AMMB and Tanjung Offshore

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KUALA LUMPUR (Jan 28): Based on announcements and newsflow today, the companies that may be in focus tomorrow (Thursday, Jan 28) could include the following: Sime Darby Bhd, Tune Ins Holdings Bhd, Yinson Holdings Bhd, Sunway Real Estate Investment Trust (REIT), LPI Capital Bhd, Mitrajaya Holdings Bhd, AMMB Holdings Bhd and Tanjung Offshore Bhd.

Sime Darby Bhd (fundamental: 1.3; valuation: 1.3) has received approval from the European Commission for its acquisition of New Britain Palm Oil Ltd (NBPOL).

Sime Darby said it had today obtained the clearance on the European Union (EU) merger filing for the privatisation of UK and Papua New Guinea-listed NBPOL.

The European Commission said in a statement on its website that it had approved the NBPOL acquistion under the EU merger regulation.

The regulator said it had approved the exercise as the NBPOL acquisition was not expected to result in competition concerns.  

Tune Ins Holdings Bhd (fundamental: 2.7; valuation: 0.65) has appointed former chief executive advisor of AirAsia Zest, Junior Namjick Cho, as its new CEO.

Prior to his appointment with Tune Ins, Cho, 43, was chief executive advisor at AirAsia Zest, between January 2013 and October 2014.

He is also now a director in Tune Insurance Malaysia Bhd.

Yinson Holdings Bhd (fundamental: 1.5; valuation: 1.5) clinched a US$2.54 billion (RM9.16 billion) floating production, storage and offloading (FPSO) vessel charter contract for oil and gas (O&G) support operations in Ghana.

The contract was from Italy-based O&G firm Eni S.p.A's unit in Ghana.

Yinson said it secured the contract via a consortium comprising Yinson Production (West Africa) Pte Ltd (YPWA)and Yinson Production West Africa Ltd (YPWAL).

The contract involves the charter, operation and maintenance of the FPSO facility at the Offshore Cape Three Points Block (OCTP), located in the Tano Basin, which is approximately 60 km off the coast of Ghana.

Sunway Real Estate Investment Trust (Sunway REIT) recorded a distribution per unit (DPU) of 4.55 sen for its six months ended Dec 31 last year, which is 7.6% higher than 4.23 sen in 2013.

This translates into annualised distribution yield of 6.0%, based on market closing price of RM1.52 as at Dec 31, 2014.

In the second quarter ended Dec 31, 2014 (2QFY15), its DPU increased 1.8% to 2.27 sen, from 2.23 sen in the previous corresponding quarter. Meanwhile, total realised distributable income came in 1.99% higher at RM63.27 million, while revenue was 3.34% higher at RM114 million.

For the six months period, the REIT has raked in a total realised distributable income of RM126.72 million, an increase of 7.9% year-on-year from RM117.43 million. Revenue came in 8.23% higher at RM227.81 million, from RM210.49 million a year earlier.

LPI Capital Bhd’s (fundamental: 1.7; valuation: 0.35) fourth quarter (4QFY14) net profit soared 123% from a year ago to RM117.1 million or 53 sen a share, boosted by the realisation of investment gains in equities.

4QFY14 revenue rose 1.5% to RM299.2 million, in line with the marginal growth in its core general insurance business, which recorded a revenue growth of 1.4% to RM298.5 million.

For the full-year period, LPI’s net profit surged 40.5% to RM283.02 million; while revenue rose 4.5% to RM1.17 billion, from RM1.12 billion previously.

Separately, LPI announced a proposed bonus issue on a one-for-two basis, which would involve the issuance of some 110.66 million new ordinary shares in LPI.

Mitrajaya Holdings Bhd (fundamental: 1.5; valuation: 1.8) clinched a contract worth RM229.87 million today, to build three blocks of 20-storey public apartments at Precint 5, Putrajaya.

The contract, which is for a duration of 36 months, comprises the building of 1,062 units, coupled with two blocks of multi-level parking and common facilities. It is expected to be completed by February 2018.

AMMB Holdings Bhd (fundamental: 1.7; valuation: 3.0) could see a major shake up at the top level of AmBank Group, according to sources.

It is learnt that the bank will soon see the departure of its group managing director Ashok Ramamurthy, managing director for Wholesale Banking Coverage Pushpa Rajadurai and AmInvestment Bank’s managing director/chief executive officer for Wholesale Banking Products Kok Tuck Cheong.

Sources say a myriad of issues surrounding the business were behind the upcoming changes.

Tanjung Offshore Bhd said three of its company officials has been suspended, following an internal review by an independent committee. The said officials included a non-independent non-executive director, an executive director and a group adviser of Tanjung Offshore, according to a filing with Bursa.

(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.)