Thursday 28 Mar 2024
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KUALA LUMPUR (Oct 8): Based on corporate announcements and news flow today, companies in focus tomorrow (Friday, Oct 9) could include: YTL Power, MyEG, Teo Guan Lee, Daya Materials, Halex, LPI Capital, Berjaya Corp, Cliq Energy and Econpile.

YTL Power Generation Sdn Bhd, a wholly-owned subsidiary of independent power producer YTL Power International Bhd, has won the bid to supply power from its existing 808-megawatt (MW) power plant in Paka, Terengganu, to the main grid for two years and 10 months commencing March 1, 2016.

In a filing with Bursa Malaysia, YTL Power said YTL Power Generation won the short-term capacity bid called by the Energy Commission (EC), following the successful completion of the 21-year power purchase agreement (PPA) entered into between YTL Power and Tenaga Nasional Bhd on Sept 30, 2015.

The PPA was signed on March 31, 1993 for both its Paka plant and its 404MW power plant in Pasir Gudang, Johor, which had expired last month. The EC has yet to renew YTL Power's PPA for the latter, as it needs to fulfil certain conditions before the renewal is granted.

YTL Power also said it has registered its interest to participate in the New Enhanced Dispatch Agreement (NEDA), as per the recent ruling by the EC.

NEDA was launched by the EC on Sept 29, in a bid to ensure cost effective power generation, which will be fully implemented by the first quarter of 2016.

MyEG Services Bhd (MyEG) said the proposed decision by Malaysia Competition Commission (MyCC) to impose a financial penalty of RM307,200 on the company for allegedly abusing its dominant position in the provision and management of online Foreign Workers Permit Renewal (PLKS) applications, is not expected to have significant financial and operational impact on MyEG for the financial year ending June 30, 2016 (FY16).

MyEG said this is because it will prove to MyCC that the allegations are unfounded, adding it will work towards resolving the allegations amicably with MyCC.

Even if the proposed decision becomes final, the company said it is not expected to have a significant financial impact on the company.

However, the company said the operational impact cannot be ascertained at this juncture, until the remedial actions have been finalised with MyCC.

MyCC announced on Tuesday (Oct 6) that it had commenced its investigation into MyEG, pursuant to the complaints filed by numerous parties.

MyCC said an investigation found MyEG had harmed the level of competition in the selling of mandatory insurance policies for online PLKS renewal applications, as the MyEG is also competing against other insurance companies in the market.

MyEG said it will review the proposed decisions with its legal counsel, and submit a written representation and make an oral representation to MyCC by Nov 18, to defend against the commission’s allegations.

Teo Guan Lee Corp Bhd has announced the retirement of three of its top executives, including its group managing director Datuk Toh Peng Hoe, effective Nov 26, 2015.

Peng Hoe, 79, is retiring after 21 years helming the company. He was appointed to his present post on Aug 9, 1994.

Also retiring are executive directors Toh Ping Hai, 75, and Toh Peng Hua, 70. Both Ping Hai and Peng Hua were also appointed to the board on Aug 9, 1994, and are substantial shareholders of Teo Guan Lee.

Teo Guan Lee is involved in the manufacturing, distributing and retailing of branded baby and children apparels, including Cuddles, Kikilala, Sesame Street, Garfield, Power Puff Girls and Tom & Jerry.

Daya Materials Bhd's 67%-owned subsidiary, Daya OCI Sdn Bhd, has bagged a €17.7 million (RM88 million) subcontract from Axima Concept SA of France, to provide marine heating, ventilation and air conditioning equipment and services.

Daya Materials told Bursa Malaysia in a filing today, that the award will terminate and supersede the consortium agreement entered into on April 18, 2013.

Daya OCI, which supplies equipment and specialty chemicals for oil and gas process plants, besides providing installation and maintenance services for onshore and offshore facilities, entered into a consortium agreement with Axima on April 18, 2013, for the purpose of submitting an offer for the Boustead Naval Shipyard Sdn Bhd's littoral combats ship project.

Two executive directors at agro-chemical manufacturer Halex Holdings Bhd have resigned today, due to personal reasons related to organisational changes and the implementation of key performance indicators (KPIs).

The two are Halex managing director Chen Sen Loon, who was just appointed managing director six months ago on April 15, and executive director Lim Pang Yan.

The two resigned for ‘personal reasons’, according to separate filings on Bursa Malaysia. The group had also noted that the duo had disagreements with Halex’s board on the change of organisational set-up and implementation of KPIs.

LPI Capital Bhd's net profit for the third quarter ended Sept 30, 2015 (3QFY15) rose 18.13% to RM75.84 million, from RM64.2 million a year ago, on the back of an improved performance in general insurance and underwriting profit from its wholly-owned subsidiary Lonpac Insurance Bhd.

In a filing to Bursa Malaysia today, the company said its revenue had increased 16.02% to RM349.51 million, from RM301.24 million in 3QFY14; while earnings per share (EPS) rose to 22.85 sen, from 19.39 sen a year earlier.

For the nine months ended Sept 30, 2015 (9MFY15), LPI Capital's net profit had grown 31.83% to RM217.78 million, from RM165.96 million a year ago. This translated into a higher EPS of 65.9 sen, from 50.14 sen in 9MFY14.

Revenue was up 8.66% at RM945.96 million, from RM870.53 million in the previous year, largely due to the general insurance segment, which registered an increase of 8.8% in revenue to RM912.6 million over the previous corresponding period in FY14.

In a statement today, LPI Capital founder and chairman Tan Sri Teh Hong Piow said the last quarter of 2015 is expected to be challenging for the Malaysian economy, as the US economy has registered strong growth, while Asian economies, especially China, are still struggling to stabilise.

Berjaya Corp Bhd (BCorp)'s 60%-owned indirect subsidiary, KUB-Berjaya Energy Sdn Bhd (KBESB), has entered into a joint venture (JV) agreement with Amita Environmental Strategic Support (Malaysia) Sdn Bhd, to undertake an industrial waste recycling project for RM900,000 cash.

In a filing with Bursa Malaysia today, BCorp said KBESB will take up a 60% stake in the JV company, while Amita will hold the remaining 40%.

KBESB is fully owned by KUB-Berjaya Enviro Sdn Bhd, which is 60%-owned by Berjaya Group Bhd — a 100%-owned subsidiary of BCorp.

The proposed name of the JVC is Amita KUB-Berjaya Kitar Sdn Bhd. Its principal activity will involve the recycling of industrial waste to produce alternative raw material and fuel in Malaysia.

BCorp said the proposed JV, expected to be completed by year end, presents an opportunity for the group to further expand its environment-related businesses.

It added that the proposed JV is expected to contribute positively to its future, after the commencement of its operations.

CLIQ Energy Bhd plans to raise at least RM210 million (US$49.95 million) through a rights issue, to address the 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.

This confirmed a news report from The Edge Weekly on Monday (Oct 5), which stated the oil and gas special purpose acquisition company (SPAC) was planning to undertake a rights issue to fund a shortfall for its QA.

In a statement, CLIQ said the shortfall is a result of the potential need to utilise CLIQ’s trust account cash for repurchase of any dissenting shareholders’ shares, and deficit due to strengthening of US dollar against the ringgit.

CLIQ said the proposed renounceable rights issue of new CLIQ shares, together with free detachable warrants B, to shareholders of CLIQ, will also enable the group to finance its capital commitment of up to US$17.5 million (RM73.23 million) for development of the Karazhanbas Northern Oilfield, which is expected to contribute positively to the future earnings of CLIQ.

The company said surplus proceeds shall be used to prepay the remaining US$27.3 million deferred purchase consideration.

It said the exercise price and amount of Warrants B will be determined at a later [date], taking into consideration CLIQ’s funding requirements and timing over the next seven years.

Nevertheless, CLIQ said its board intends to fix the rights issue price at a discount of at least 30% to the theoretical ex-rights price, immediately preceding the price-fixing date.

The company said based on the 630.94 million CLIQ shares in issue as at Sept 28, 2015, a shareholder with 1,000 CLIQ shares will have to fork out approximately RM332.84 to subscribe for a full entitlement.

CLIQ also said Best Oracle Sdn Bhd, the sole major shareholder of the group with a 20% stake, has provided its irrevocable undertaking to fully subscribe for its proposed rights issue entitlement.

Barring any unforeseen circumstances and subject to all requisite approvals being obtained, the proposed stake acquisition in Phystech II and the proposals are expected to be completed by the first quarter of 2016.

Econpile Holdings Bhd’s (Econpile) unit, Econpile (M) Sdn Bhd (EMSB), has been served an arbitration notice from IRDK Ventures Sdn Bhd (IRDK), over a disputed non-performance of a contract, for which it is demanding almost RM120 million in damages and loss of profit.

IRDK had on Sept 28, served a notice of demand upon EMSB, demanding for the said loss of profit and damages due to the non-performance of the contract. Thereafter, it served EMSB the notice of arbitration on Oct 7, according to Econpile’s filing to Bursa Malaysia.

It is now discussing with its solicitors on the matter and will proceed with the arbitration process, it said.

The disputed contract is a RM8.73 million piling works awarded by IRDK for a condominium project in Puchong, Selangor, on Oct 8, 2014. On June 3, 2015, IRDK served EMSB a notice to determine the contract, for which EMSB have been, and still is, disputing.

On June 5, EMSB served a notice of adjudication against IRDK to refer the disputes from EMSB’s payment of claim for the contract, and proceeded with the adjudication claim to seek from IRDK about RM4.04 million, with other interest costs.

The adjudication submission has been made and now pending decision.

Econpile said there is no material operational impact arising from the arbitration notice, but the financial impact will be the expected losses arising from the litigation mentioned above.

(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.)

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