KUALA LUMPUR (March 21): Based on corporate announcements and news flow today, companies that may be in focus on Wednesday (March 22) could include: Yong Tai, Mulpha, Ranhill, Alam Maritim, Redtone, TM, UMW Holdings and T7 Global.
Property developer Yong Tai Bhd is planning two new developments with an estimated gross development value of RM2.3 billion in Melaka, to complement its Impression City master development.
It said it is buying two pieces of leasehold commercial land measuring 12 acres in all, located next to the Impression Melaka theatre, for a RM1.1 billion mixed development comprising a hotel, serviced apartments and retail units.
Yong Tai is buying the lands by acquiring the owner Laila Development Sdn Bhd, for RM35 million.
The project's gross development cost (GDC) is estimated at RM800 million (including the land cost), which gives rise to a potential development profit of RM300 million.
Meanwhile, Yong Tai's wholly-owned subsidiary, YTB Impression Sdn Bhd, is partnering JM Bestari Land Sdn Bhd to develop a piece of land in Melaka Tengah, Melaka, which JM Bestari is in the midst of buying from Chief Minister of Malacca (Inc).
The proposed JV development is expected to have a total gross development value and estimated GDC of approximately RM1.2 billion and RM800 million respectively, giving rise to a potential gross development profit of RM400 million, said Yong Tai.
Energy, construction and real estate group Mulpha International Bhd has announced a 10-to-one share consolidation plan to improve its capital structure and reduce the trading volatility of its shares.
The share consolidation plan, said Mulpha, will be done on the basis of 10 existing shares for one consolidated share, which will see its share capital reduced to 319.62 million from 3.196 billion currently.
"In the past three years, Mulpha shares have been traded in wide-ranging prices from 19.5 sen to 55 sen. This represents a 64.5% change in Mulpha's transacted price from its lowest to the highest," Mulpha said.
"The proposed share consolidation is also part of Mulpha's plan to improve its capital structure," said Mulpha, which expects the share consolidation exercise to increase its earnings per share and net asset per share.
Ranhill Holdings Bhd warns that its wholly-owned unit Ranhill Water Technologies Sdn Bhd (RWT) may face legal action in relation to alleged breach of contracts over failing to construct a water treatment plant in Sepang, Selangor, for WRP Asia Pacific Sdn Bhd.
RWT secured two contracts from WRP in August 2015 and December 2015 to build the plant, but has stated its intention to terminate the contracts on numerous occasions due to WRP's long delay and failure to obtain regulatory approval.
RWT received a legal letter yesterday from WRP's lawyers requiring RWT to start work within 14 days, failing which WRP will start action to claim for damages and loss, said Ranhill.
Upstream oil and gas services provider Alam Maritim Resources Bhd has bagged a one-year contract to provide subsea inspection, maintenance and repair services for RM99 million.
Alam Maritim did not identify the company that awarded the contract, only citing it as an "independent oil and gas exploration and production company".
"The contract is expected to contribute positively to Alam Maritim's earnings and net tangible assets for the financial year ending Dec 31, 2017 and beyond," the company said.
Redtone International Bhd's net loss halved to RM3.62 million in the third quarter ended Jan 31, 2017 (3QFY17) from RM7.2 million a year ago, in the absence of a goodwill impairment and losses from discontinued operations.
The broadband and digital services provider's revenue for the quarter, however, slipped to RM37.43 million from RM38.68 million, due mainly to lower revenue from its telecommunication services division after having sold off its China unit, Redtone Asia Inc.
For the cumulative eight months ended Jan 31, 2017 (8MFY17), Redtone posted a net loss of RM7.41 million on revenue of RM115.14 million.
Redtone did not provide any comparative figures as it had changed its financial year end from May 31 to April 30.
Datuk Seri Shazalli Ramly was today officially named as the new group chief executive officer (CEO) of Telekom Malaysia Bhd (TM), with Datuk Bazlan Osman as deputy CEO.
This confirms a news report by The Edge Financial Daily on March 10, which stated that Shazalli was the frontrunner to lead TM, to replace CEO Tan Sri Zamzamzairani Mohd Isa, who is retiring on April 30.
Shazalli will assume his new position on May 1 and Bazlan on April 1, TM said.
UMW Holdings Bhd's property unit UMW Land Sdn Bhd and the Malaysian Investment Development Authority plan to team up to develop a 348.3-hectare land in Serendah, Selangor, into a high-value manufacturing park focused on aerospace and smart manufacturing.
The companies signed a memorandum of understanding to explore areas of collaboration and cooperation on the industrial development on UMW Land's site, said UMW Land's owner UMW Corp Sdn Bhd.
UMW Corp, which operates in the automotive, equipment, manufacturing and engineering, and oil and gas sectors, is a wholly-owned subsidiary of UMW Holdings.
The park, located next to an automotive manufacturing facility, also has commercial and residential developments on the northern part of the site.
The mixed development project would feature UMW Aerospace Sdn Bhd's production facility of aero-engine fan cases for Rolls-Royce Plc.
T7 Global Bhd's wholly-owned subsidiary T7 Aero Sdn Bhd has signed a heads of agreement (HoA) with MARA Aerospace & Technologies Sdn Bhd to collaborate on aerospace-related training programmes.
T7 Global was formerly known as Tanjung Offshore Bhd.
T7 Global told Bursa Malaysia today the HoA encompassed human capital development for metal work and high-value manufacturing activities in the aerospace and other high-technology industries in Malaysia.
http://www.theedgemarkets.com/my/article/yong-tai-mulpha-ranhill-alam-maritim-redtone-tm-umw-holdings-and-t7-global
