KUALA LUMPUR (Feb 7): Based on corporate announcements and news flow today, companies that may be in focus tomorrow (Feb 8) may include the following: MHB, PLB Engineering, Mesiniaga, DRB-Hicom, Kenanga Investment Bank, Vitrox, Pentamaster, F&N, SAM, Borneo Aqua and YTL Power International.
Malaysia Marine and Heavy Engineering Holdings Bhd's (MHB) fourth quarter ended Dec 31, 2016 (4QFY16) net loss widened to RM119.67 million from a net loss of RM27.13 million a year earlier on lower revenue and higher asset impairment provision.
Meanwhile revenue fell 57.9% to RM303.64 million from RM721.14 million mainly on lower income from its oil and gas structure construction unit.
The company said asset impairment provision was higher at RM140.53 million versus RM99.8 million.
For the full financial year, MHB posted net loss of RM134.3 million compared with net profit of RM43.89 million a year ago.
PLB Engineering Bhd is disposing of a piece of freehold agriculture land in Kulim, Kedah, to Tiong Nam Logistics Solutions Sdn Bhd for RM9.63 million.
In a filing with Bursa Malaysia today, PLB said the 5.96-hectare plot of land is held by its wholly-owned subsidiary PLB-KH Bina Sdn Bhd.
Tiong Nam Logistics Solutions, a wholly-owned subsidiary of Tiong Nam Logistics Holdings Bhd, is principally involved in transportation, warehousing and property investment.
PLB said its directors arrived at the consideration on a willing-buyer willing-seller basis after taking into account the audited net book value of the property of RM3.04 million as of Aug 31, 2016.
After the disposal, PLB expects to gain about RM6.59 million, it said, adding that the proceeds will be used to repay bank borrowings and for working capital.
Systems and solution integrator firm Mesiniaga Bhd announced that it has been selected by the Companies Commission of Malaysia (CCM) to build a new and advanced data exchange gateway for the agency's registration systems.
The value of the five-year contract, Mesiniaga's first for this year, was not disclosed.
Mesiniaga said it will maintain CCM's current information technology (IT) system, while expanding on some technical capabilities and maintaining the rollout of this new IT infrastructure.
Mesiniaga said the new data exchange gateway is part of CCM's organisation-wide transformation programme to revamp its IT infrastructure and software ecosystem, opting for an open standard-based enterprise service bus which will be the heart of its IT network.
As part of the exercise, Mesiniaga said it will migrate services that are now running on CCM's existing middleware platform while developing new components to substitute and expand current services.
Controlled by local businessman Tan Sri Syed Mokhtar Al-Bukhary, DRB-Hicom Bhd will be finalising a foreign strategic partner (FSP) for its wholly-owned automobile maker Proton Holdings Bhd by the first half of 2017.
In a statement today, its group managing director Datuk Seri Syed Faisal Albar said the potential FSPs have conducted their own due diligence on Proton over the past weeks, and DRB-Hicom is now waiting for the submission of bids from them, after which an evaluation will commence.
"Also as stated previously, we aim to complete the selection by the first half of this year, although we will strive to conclude it earlier and this remains the target for DRB-Hicom," he said.
Syed Faisal said DRB-Hicom's search for an FSP for Proton is a critical exercise to ensure the sustainability of the national carmaker.
He added that the entry of an FSP will enable Proton to revitalise itself through access to new platforms, powertrains and technologies, which will further improve the carmaker's range of products and quality.
Earlier this month, local media reported that Chinese automaker Geely Automobile Holdings Ltd is reportedly leading a three-way race to be the technical partner for Proton Holdings Bhd, ahead of French carmakers PSA Group and Renault SA.
Kenanga Investment Bank Bhd (KIBB) announced its independent director Izlan Izhab being redesignated as its new non-executive chairman replacing outgoing Datuk Paduka Tengku Noor Zakiah Tengku Ismail, 89, who had completed her term on Jan 28.
Tengku Noor Zakiah co-founded K & N Kenanga Sdn Bhd (Stockbrokers), now known as KIBB, in 1973 and served as its executive chairman until January 2007.
Tengku Noor Zakiah's cessation of office, announced on Jan 28, was to comply with the new regulatory requirement for boards of directors to have a majority of independent directors.
On the same day, Datuk Chay Wai Leong, stepped down as executive director for the same reason. He remains as KIBB’s group managing director.
Vitrox Holdings Bhd and Pentamaster Corp Bhd are acquiring a piece of 5.05-acre land in the Batu Kawan Industrial Park in Penang for RM3.52 million.
A company owned by Vitrox and Pentamaster, Penang Automation Cluster Sdn Bhd, is acquiring the land from state-owned Penang Development Corporation, according to filings with Bursa Malaysia.
They said the land will be used to develop and operate a small and medium automation industry cluster, which will support their long-term strategy to grow their business in providing a wider range of high-end automated inspection equipment.
“The automation cluster is expected to commence construction in the second half of 2017, and span over a development period of two years,” they said, adding that the automation cluster is still in the initial planning stage.
Preliminary estimates by Vitrox and Pentamaster reveal that they may need to fork out RM23 million to invest in the automation cluster.
Vitrox and Pentamaster each has a 35% stake in Penang Automation Cluster while a third shareholder Walta Engineering Sdn Bhd holds the balance 30%.
Fraser & Neave Holdings Bhd (F&N)’s net profit fell 16% to RM127.28 million in its first quarter ended Dec 31, 2016 (1QFY17) from RM151.66 million a year ago, mainly due to organisational restructuring costs.
The decline was also because the previous year’s quarter had seen a realisation of RM18.2 million foreign exchange gain from the early redemption of the zero-coupon bond by F&N Dairies (Thailand) Ltd, F&N said in a filing with Bursa Malaysia today.
Meanwhile, its 1QFY17 revenue, inched up 2% to RM1.09 billion from RM1.07 billion a year ago, contributed by F&N’s operations in both Malaysia and Thailand, despite continuing competitive price pressure and weak consumer sentiment, the group said.
Its operating profit from food and beverages (F&B) in Malaysia decreased 26% to RM60.4 million from RM81.6 million due to higher raw material costs — particularly sugar — organisational restructuring costs, and higher trade and consumer promotion spending.
SAM Engineering & Equipment (M) Bhd saw its net profit fall for the third consecutive quarter in the third financial quarter ended Dec 31, 2016 (3QFY17).
In 3QFY17, the group’s net profit declined 33.7% to RM9.7 million or 7.71 sen per share from RM14.65 million or 16.97 sen per share a year ago, mainly contributed by lower group profit before tax (PBT) due to lower group revenue and new projects start-up cost.
Revenue in 3QFY17 slipped 14.5% to RM132.49 million compared with RM155.03 million in 3QFY16, mainly due to the decrease in revenue from the equipment manufacturing and aerospace segments.
Borneo Aqua Harvest Bhd today proposed to undertake a private placement of up to 59.21 million new shares representing up to 10% of the total number of issued shares of the company.
The proposed private placement will enable the company to raise funds for capital expenditure and working capital for the mining operation as part of the company’s business plan to grow its mining business without incurring additional interest cost compared to other means of financing.
The company said that the issuance of the placement shares would increase the company’s capital base after taking into account Borneo Aqua’s intended business operations as well as enhancing its shareholders’ funds.
Borneo Aqua said the company is unable to determine the actual amount to be raised as this will depend on the actual issue price and number of placement shares to be issued.
Assuming an issue price of 90 sen per placement share, which represents a discount of approximately 4.26% to the five-day weighted average market price of Borneo Aqua shares up to and including Jan 27 of 94 sen per share, the proposed private placement is expected to raise a minimum RM49.19 million, up to a maximum of RM53.29 million,” the company said.
YTL Power International Bhd is one of four firms pre-qualified to submit their proposals for the development of a desalination plant on Jurong Island, which will be Singapore’s fifth.
According to a press release by PUB, Singapore’s national water agency, it had put up a Request for Proposal (RFP) today for the development of the desalination plant. Besides YTL Power, three other applicants were also shortlisted from an earlier pre-qualification exercise including Keppel Infrastructure Holdings, Sembcorp Utilities and Tuas Power.
All four firms will submit their proposals for the desalination plant, which is to be ready by 2020.
The press release said that the plant will add another 137,000 cubic metres or about 30 million gallons of desalinated water (mgd) a day to Singapore’s water supply, enhancing water supply resilience and it will be built under a design-build-own-operate (DBOO) arrangement.
The desalination plant will be co-located within the successful applicant’s existing facility such as a power plant or steam generation plant on Jurong Island, for potential synergies in resources such as seawater intake and outfall structures or energy, according to it.
YTL Power’s subsidiary, YTL PowerSeraya Pte Ltd, has a 10,000 meter cube per day Seawater Reverse Osmosis (SWRO) desalination plant sited at its Pulau Seraya Power Station on Jurong Island. The plant was established in 2008.
http://www.theedgemarkets.com/my/article/mhb-plb-engineering-mesiniaga-drb-hicom-kenanga-investment-bank-vitrox-pentamaster-fn-sam