KUALA LUMPUR (Jan 4): Based on corporate announcements and news flow today, companies that may be in focus tomorrow (Tuesday, Jan 5) could include the following: Ikhmas Jaya ( Valuation: N/A, Fundamental: N/A), Econpile, Borneo Aqua Harvest, XOX, ConnectCounty, TDM, Tenaga and IOI Prop.
Ikhmas Jaya Sdn Bhd, a wholly-owned subsidiary of bore piling and bridge specialist construction company Ikhmas Jaya Group Bhd (Ikhmas Jaya), has been awarded a RM166.4 million contract for the construction of serviced apartments at Jalan Talalla, Kuala Lumpur.
In a filing with Bursa Malaysia today, the group said it has accepted the terms and conditions stipulated in the letter of award from Star Effort Sdn Bhd for the development of two blocks of suite serviced apartments (357 units) for Messrs Star Effort Sdn Bhd.
The contract is expected to commence on Jan 2, 2016 for about two and half years (29 months) and is slated for completion by June 1, 2018.
Ikhmas Jaya said the contract is expected to contribute positively to the group's earnings and net assets for the financial year ending Dec 31, 2016.
Econpile Holdings Bhd ( Valuation: N/A, Fundamental: N/A) has secured a RM20.3 million contract for piling and related works for a mixed development commercial and residential development in Kampung Baru.
In a filing with Bursa today, the piling and foundation specialist said its unit Econpile (M) Sdn Bhd had on Dec 31 (last Thursday) received a letter of acceptance from Ahmad Zaki Sdn Bhd, to undertake piling and sub-structure works for the proposed project.
"The contract comprises bored piling, sheet piling, earthworks and sub-structure of a mixed commercial and residential development, for a contract sum of RM20.3 million," it said in the filing.
Econpile said the duration of the contract is approximately eight months and is expected to be completed in July 2016.
The group expects the contract to contribute positively to its revenue and earnings for the financial year ending June 30, 2016 (FY16).
Lembaga Tabung Haji has ceased to be a substantial shareholder in aquaculture company Borneo Aqua Harvest Bhd ( Valuation: 0.00, Fundamental: 1.30).
It was revealed today that the pilgrims' fund board had on Dec 29, 2015 disposed of 21 million Borneo Aqua shares, representing a 4.9% stake.
After the disposal, Tabung Haji now holds some 19.59 million Borneo Aqua shares, or a 4.6% stake, in the company.
In November last year, Borneo Aqua had announced plans to diversify into the exploration for minerals and mining business, with the proposed acquisition of the entire equity stake in Wullersdorf Resources Sdn Bhd for RM131 million.
XOX Bhd ( Valuation: 0.20, Fundamental: 1.55) has fixed the issue price of its renounceable rights issue of up to 356 million new shares at 20 sen per rights share, which could raise up to RM71.2 million.
The group announced today that it has also fixed the exercise price of the free warrants that will come with the rights shares — on the basis of one free warrant for every one rights share subscribed — at 20 sen each.
To recap, XOX had announced on Oct 9, 2014 that it would undertake the renounceable rights issue of up to 356 million new shares with free detachable warrants, on a basis of one rights share for every one existing XOX share.
XOX said the issue price of the rights share was fixed after considering the theoretical ex-rights price of XOX shares of 20.46 sen per share based on their five day-volume weighted average market price up to and including Dec 31, 2015 of 20.92 sen per share.
Integrated interconnect solutions provider ConnectCounty Holdings Bhd ( Valuation: 0.30, Fundamental: 1.80) is investing RM20 million to expand its manufacturing capacity in 2016, specifically for its China facility.
In a statement today, the group said data compiled by Infobusiness Research & Consulting Sdn Bhd indicated global sales of interconnects reached approximately US$190 billion in 2014, up 8.3% over the previous year.
Moving forward, global sales are anticipated to expand by a compounded annual growth rate of 6.1% between 2015 and 2020, reaching US$266.4 billion.
An interconnect is a cable connection that seamlessly connects two or more devices. One example is the Universal Serial Bus (USB).
The group's China facility manufactures custom cable assemblies, wire harness, USB cables, audio and video cables, computer peripheral cables, custom cables and flat cable assemblies.
ConnectCounty also plans to expand its workforce in China by close to 40% by the end of 2016
Mid-sized plantation player TDM Bhd ( Valuation: 1.40, Fundamental: 0.65) has appointed Kamarul Bahrein Kamarulzaman as its new group chief executive officer (CEO) effective Jan 1.
He succeeds Badrul Hisham Mahari, who tendered his resignation, which was effective last Friday (Jan 1), due to health reasons last year. Badrul, 56, had been the company's CEO since 2008.
Today, TDM said Kamarul Bahrein was the Senior Vice President/Head of Business Banking II at Bank Pembangunan Malaysia Bhd since Nov 2012, where his primary responsibility was to plan and lead the strategic development of the bank's lending activities in the mandated sectors of infrastructure, maritime, oil and gas, and technology.
He was also a member of the Bank Pembangunan Malaysia's group management committee.
Tenaga Nasional Bhd ( Valuation: 1.20, Fundamental: 1.30) is said to be planning to tap the dollar debt market for the first time in two decades with its debut offering of global Islamic bonds, according to Bloomberg.
The news agency reported today that according to people familiar with the matter, Tenaga is asking bankers to submit pitches for a US$3 billion sukuk programme, the proceeds of which will be used to fund overseas investments including the purchase of a 30% stake in Turkish power firm Gama Enerji A.S. for US$243 million.
The company last issued dollar-denominated debt in 1996, when it sold 100-year conventional notes.
The planned sale would help stem a slump in issuance of global Islamic bonds and be Malaysia's first since the Federal Reserve raised interest rates in December. The ringgit slid 19% versus the dollar in 2015, Asia's biggest loss, as investor confidence was dented by tumbling crude oil prices, an investigation into political donations taken by Prime Minister Najib Razak and concern about debt levels at state investment company 1Malaysia Development Bhd (1MDB).
"Timing is everything and Tenaga's plan is telling people the ringgit won't depreciate too much from here and that it will stand to benefit from the debt sale," James Lau, a Kuala Lumpur-based investment director at Pheim Asset Management Asia Sdn Bhd, which oversees US$300 million, said in a phone interview. "1MDB's problem is more of a governance issue, which shouldn't affect Tenaga's financials or borrowing costs."
Bankers' proposals for Tenaga's sukuk programme have to be submitted by the end of this week, people familiar with the issue said.
Tenaga plans to add 5,000 megawatt of regional capacity as part of a five-year expansion, its CEO Azman Mohd said in a Dec 14 statement. That's sufficient to power 1.25 million Malaysian homes.
The electricity company has a market capitalisation of RM74.8 billion and a total installed capacity of 10,818 MW. It sold the country's third-biggest sukuk in November — an RM8.93 billion offering — to part-finance the construction of a 2,000 MW coal-fired power plant. The company has debt totaling RM26.1 billion, Bloomberg data showed.
IOI Properties Group Bhd ( Valuation: 2.20, Fundamental: 2.10) is targeting to begin the construction of Phase 2 of IOI City Mall here before this year end, with an investment of RM500 million.
IOI Properties CEO Lee Yeow Seng said today that the design and planning of Phase 2 of the shopping mall is currently ongoing.
"Construction is expected to take about 2 to 3 years," he said, after the company's extraordinary general meeting today.
"We will be adding about one million square feet to Phase 1 (of the) shopping mall," he added.
He said Phase 1 of the shopping mall has achieved an occupancy rate of 93%.
(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.)
http://www.theedgemarkets.com/my/article/ikhmas-jaya-econpile-borneo-aqua-harvest-xox-connectcounty-tdm-tenaga-and-ioi-properties
