KUALA LUMPUR (Dec 20): Based on corporate announcements and news flow today, companies that may be in focus on Thursday (Dec 21) could include: Priceworth International Bhd, AirAsia Bhd, George Kent (Malaysia) Bhd, UMW Holdings Bhd, Berjaya Land Bhd, Greenyield Bhd and Yinson Holdings Bhd.
Priceworth International Bhd has fixed a price of 10.5 sen per share for the 44 million new shares in the first tranche of its delayed private placement, which aims to raise RM6.5 million in total.
The first tranche represents 68.5% of the total placement and approximately 6.85% of the issued and paid-up share capital of the group as at Sept 30, 2016, Priceworth International said in a filing on Bursa Malaysia today.
Although the proposed private placement had been delayed as "potential investors required time to obtain the necessary internal approvals", the company said it has secured potential investors for the first tranche.
A further 20.2 million shares remain to be placed out and Priceworth expects to complete the private placement by the end of January 2017.
Priceworth International said the implementation of the placement in tranches would help it secure suitable investors over time, taking into account prevailing market conditions and the group's working capital requirements.
AirAsia Bhd announced that it will be deploying an additional 84 flights from Jan 25 to Feb 1 in anticipation of strong travel demand during the Chinese New Year period.
The additional flights will be from Kuala Lumpur to Singapore, Penang, Sibu and Tawau; from Penang to Singapore; from Kuching to Singapore; and from Johor Bahru to Miri and Sibu, the budget carrier said in a statement today.
It encouraged travellers to book their flights early for the upcoming Chinese New Year 2017 festive season, and said it has an added capacity of 15,000 seats from Jan 25 until Feb 1 to facilitate the high demand for air travel during that period.
George Kent (Malaysia) Bhd has bagged a RM364.9 million contract from the Public Works Department (JKR) to build a 220-bed Endocrine Hospital in Precinct 7, Putrajaya, Selangor.
It is the fourth hospital project that the group is building on a turnkey basis for the Health Ministry and will bring the total order book to an all-time high of over RM6.2 billion, according to a statement by the group today.
Sitting on two acres, the scope of works include construction of the hospital extension complex with a link bridge to the existing main building block of Hospital Putrajaya, as well as a multi-storey parking block.
The job will take 36 months and is scheduled to be completed by January 2020.
UMW Holdings Bhd has entered into a share sale and purchase agreement with Permodalan Nasional Bhd (PNB) with the aim of consolidating its land bank in Serendah for future development.
In a filing today, the group said its wholly-owned subsidiary UMW Corporation Sdn Bhd (UMWC) and 51%-owned subsidiary UMW Development Sdn Bhd (UMWD) had signed the agreement to consolidate its shareholding in UMWD.
UMWC is to pay a total consideration of RM17.74 million to acquire PNB’s 780,000 shares in UWMD, as well as the investment fund’s 3.12 million 7.4% cumulative redeemable preference shares in UMWD.
PNB is a major shareholder of UMW, with a 58.09% stake in the diversified group, and is also a major shareholder of UMWD with a 39% stake.
The remaining 10% of UMWD is held by Permodalan Negeri Selangor Bhd.
The parcels of land in Serendah belonging to UMWD measure approximately 616.22 acres and are expected to offer potential realisable capital value due to its strategic location, the group said.
Berjaya Land Bhd’s (BLand) net profit for the second quarter ended Oct 31, 2016 (2QFY17) slipped 13.3% to RM180.47 million from RM208.3 million a year earlier.
The group attributed the fall to higher prize payout and operating expenses incurred by Sports Toto Malaysia Sdn Bhd (STMSB), lower profit contribution from the property sector and investment business from lower progress billings, amortisation of gaming rights allocated to the Philippines leasing of online lottery equipment business segment as well as lower investment-related income.
However, the group said the decline was partly mitigated by the higher profit of the hotels and resorts business.
BLand said its revenue rose marginally by 0.6% to RM1.62 billion in the quarter from RM1.61 billion previously as luxury British motor dealer HR Owens Plc saw increased sales volumes.
BLand said did not see any immediate material or noticeable impact on the luxury vehicles market resulting from the uncertainties of Brexit to-date.
For the cumulative first six months of FY17 (6MFY17), BLand’s net profit shrank 29.8% to RM153.23 million from RM218.21 million in 6MFY16. Revenue rose 2% to RM3.17 billion from RM3.11 billion.
Meanwhile, BLand’s chief executive officer Datuk Ng Sooi Lin has retired from his position in the group. However, he will continue serving BLand as its non-executive director.
Going forward, the group said it expected volatility and weak consumer sentiment to challenge its business.
BLand expects its hotels and resorts business to perform satisfactorily while its property market outlook remains lukewarm.
Greenyield Bhd, has appointed Tham Kin On, the son of its group managing director, as its executive director with immediate effect.
The 28-year-old is the son of MD Tham Foo Keong and his spouse, Twong Yoke Peng, the group's substantial shareholder, Greenyield said in a filing today.
Having joined the family-run business in 2014, Kin On now oversees Greenyield's corporate finance team and is responsible for the development of the group’s strategies and business.
Separately, Greenfield reported a 96% dive in earnings in its first quarter ended Oct 31, 2016 as net profit slumped to RM24,000 from RM669,000 a year ago.
Revenue shrank 14.6% to RM6.71 million from RM7.86 million on lower sales from its plantation segment and reduced contribution from net foreign exchange gains during the quarter.
Yinson Holdings Bhd’s net profit fell 26% year-on-year in its third quarter ended Oct 31, 2016 (3QFY17) to RM63.11 million from RM85.74 million as it saw less favourable foreign exchange (forex) movements during the quarter.
Meanwhile, revenue grew 16% to RM127.94 million from RM110.72 million due to increased contributions from its FPSO or floating, production, storage and offloading business, and higher conversion of US dollar against the ringgit during the period.
Notably, its income statement showed its other operating income was 85% lower at RM11.55 million compared with RM78.96 million a year ago, while income tax expense rose 64% to RM15.11 million from RM9.24 million previously.
Yinson said it ceased to recognise revenue from its discontinued non-oil and gas operations. In tandem with the divestment which was completed in July, Yinson paid out a 14.6 sen special dividend per share, or RM159.1 million in total, on Nov 21.
Yinson’s short-term to medium-term remains challenging and uncertain due to protracted oversupply, the group said, expecting business to be strongly supported by its long-term order book of US$5.6 billion.
http://www.theedgemarkets.com/my/article/priceworth-international-airasia-george-kent-umw-holdings-berjaya-land-greenyield-yinson
