AirAsia, Asia’s largest low-cost carrier by passenger number, has proposed to set up a Sukuk Mudharabah programme to raise up to RM1 billion.
The firm intends to use RM550 million of the proceeds to partly fund its capital expenditure and RM300 million to refinance its banking facilities.
AirAsia said the Sukuk Mudharabah, which will be recognised as equity capital from an accounting perspective, is perpetual in tenure, where it has a call option to redeem at the first call date, which is at the end of the fifth, seventh or 10th year.
Significance: AirAsia also added that payment obligations on the Sukuk Mudharabah will at all times, rank ahead of other share capital instruments or security for the time being outstanding, but junior to the claims of all other present and future creditors of the group.
Press Metal Posts 3Q14 Turnaround Profits
For the third quarter ended 30 September, Press Metal recorded net profit of RM82.7 million, in contrast to net loss of RM1.6 million in 3Q13, with quarterly revenue surging 29.5 percent to RM1 billion.
Increased profitability was attributable to higher aluminium selling prices and higher production output at the group’s Mukah and Bintulu smelting plants.
For the nine-month period, revenue jumped 26.4 percent to RM2.9 billion while net profit nearly quadrupled to RM170.7 million.
Significance: Press Metal has declared a dividend of RM0.03 per share for the quarter. Management noted that demand for aluminium remained strong in the third quarter, and the momentum is expected to continue till end of the year.
Marine Product Manufacturing To Drive QL Resources’ Growth
JF Apex Securities has nudged up QL Resources earnings forecast for FY15 by 1.8 percent after imputing the income contribution from marine white prawn aquaculture.
The group’s net profit is expected to grow by 20 percent in the next financial year due to the solid growth in marine product manufacturing division and its ongoing regional expansion of livestock farming division.
In the longer term, the research house is positive on QL Resources’ prawn aquaculture, which was started in January 2013, and expects it to become another significant source of income to the group, despite the minimal earnings contribution currently.
Significance: JF Apex has upgraded its call on QL Resources to ‘Buy’, with a higher target price of RM3.90 as it favours the stock for its unique and defensive business model.
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