KUALA LUMPUR (July 23): Based on corporate announcements and news flow today, companies that may be in focus on Wednesday (July 24) may include: Malaysia Airports Holdings Bhd (MAHB), UOA Real Estate Investment Trust (UOA REIT), Berjaya Corp Bhd (BCorp), IGB REIT, AirAsia Group Bhd, Destini Bhd, ARB Bhd, GDB Holdings Bhd, KUB Malaysia Bhd and Mah Sing Group Bhd.
Malaysia Airports Holdings Bhd (MAHB) will be taking measures to collect the RM41.5 million in outstanding passenger service charges (PSC) and late payment charges from AirAsia (AirAsia Group Bhd and AirAsia X Bhd).
It said the PSC is mandated by the Malaysian Aviation Commission (Mavcom) and that its civil suits against the low-cost carriers are due to their failure to make payment of Mavcom-prescribed PSC rates.
UOA Real Estate Investment Trust (UOA REIT)’s second quarter (2QFY19) net rental income (NPI) fell 3.8% to RM14.31 million, from RM14.88 million a year ago, following a retreat in gross rental income.
Gross rental for the quarter ended June 30, 2019 fell 4.5% to RM19.5 million, from RM20.43 million previously.
The group has declared an income distribution per unit (DPU) of 2.03 sen (as against 2.01 sen last year), bringing year-to-date DPU to 4.24 sen (4.04 sen last year).
Property operating expenses in 2Q declined 6.5% to RM5.19 million, from RM5.5 million previously.
Cumulative six-month [1HFY19] net rental income declined 3.2% to RM28.62 million, from RM29.57 million a year ago, with gross rental income declining to RM39.05 million, from RM40.03 million.
Berjaya Corp Bhd (BCorp) said reports that executive chairman Tan Sri Vincent Tan was flying to Japan to sign a distributorship agreement with Suzuki Motor Corp was “not true at all”. It requested the publication to correct the error.
Suzuki had exited the Malaysian market in 2016.
IGB REIT’s 2Q NPI rose 8.6% to RM98.5 million, from RM90.7 million posted in the corresponding quarter last year, due to higher rental income and lower property operating expenses.
Rental income rose to RM114.5 million, leading to revenue increasing 5.5% year-on-year (y-o-y) to nearly RM135 million, from RM128 million prior.
DPU for the quarter stood at 2.26 sen — of which 2.22 sen is taxable and 0.04 sen is non-taxable — and is payable on Aug 30. The group said it is distributing 95% of its distributable income of some RM80 million.
Cumulative six-month NPI rose 4.5% to RM202 million, from RM193.24 million a year ago, with distributable income totalling RM173.84 million.
AirAsia Group Bhd’s consolidated aircraft operating certificate passenger volume for Malaysia, Indonesia and the Philippines rose 18% to 12.84 million in the second quarter of this year (2Q19), from 10.88 million a year prior.
Total number of passengers carried as a percentage of capacity rose 19% to 15.09 million, from 12,72 million.
Load factor dipped to 85%, from 86% in 2QFY18, while available seat kilometres (ASK) grew 17% y-o-y, on the back of route expansion and more frequent flights.
Destini Bhd’s wholly-owned subsidiary Destini Oil Services Sdn Bhd (DOS) bagged a contract to service Petrofac (Malaysia-PM304) Ltd’s Malaysian wells. The contract is for the provision of handling equipment and running services, with its total value dependent on the number of work orders issued by Petrofac to DOS throughout the contract's duration.
The three-year contract commenced on July 1 and contains the option for a further one-year extension.
ARB Bhd’s wholly-owned ARBIOT Sdn Bhd is to work with two Chinese companies for the provision of water supply-related technology, with a combined project value of approximately RM800 million.
ARBIOT signed an MoU with Hangzhou Mayam IoT Tech Co Ltd to deploy smart meters to measure, collect and analyse water consumption information, with the project valuing at RM200 million.
ARBIOT also signed an MoU with Shuifa IoT Tech Co Ltd, which involves the installation of a Smart Household Water Filtration System, that can be supplied to the public and private individuals — with the project valued at RM600 million.
GDB Holdings Bhd’s wholly-owned unit Grand Dynamic Builders Sdn Bhd has purchased a 70% equity interest in Eco Geotechnics Sdn Bhd for RM5.96 million. The purchase is to be made using internally-generated funds and will be completed in 4Q19.
The group purchased the shares from Eco Geotechnics director Goh Eng Ngai (who holds an 84% stake), Tan Loo Loo (10%) and Wong Choo Keong (6%).
GDB said the acquisition will allow for benefit from Eco Geotechnics’ speciality in bored piling and foundation works.
KUB Malaysia Bhd is selling its factory and land in Mukah, Sarawak for RM43 million and RM1.8 million respectively.
The group is selling the factory (inclusive of ancillary equipment and machinery) and the 60-hectare plot of leasehold land to Sinong Pelita Oil Mill Sdn Bhd.
Proceeds from the sale of the factory will be used to settle bank borrowings and reduce other debts, while proceeds from the sale of the land will be used for operational requirements — with the proposed disposals slated for completion within 90 days, with a 30-day extension option at 8% interest per annum.
Mah Sing Group Bhd is acquiring a 5.47 acre land in Taman Metropolitan, Kepong, for RM94.8 million.
The land is earmarked for the development of M Luna services apartments, which has a gross development value of RM705 million.
The move is expected to increase Mah Sing’s prime landbank to 2,104 acres, with the total remaining GDV and unbilled sales amounting to RM25.84 billion, which can sustain the group’s growth over the next eight- to nine years.
https://www.theedgemarkets.com/article/mahb-uoa-reit-bcorp-igb-reit-airasia-destini-arb-gdb-holdings-kub-malaysia-and-mah-sing
