UMW Holdings Bhd ( Valuation: 1.40, Fundamental: 1.00)’s unit, UMW Toyota Motor Sdn Bhd, has announced that it will not be increasing the price of its Toyota Camry Hybrid vehicle this year, due to the energy efficient vehicle (EEV) incentive that was provided under the National Automotive Policy (NAP).
While other models under the Toyota stable have been revised for 2016, the Camry Hybrid will continue to be sold at the same price of RM174,900 throughout the year, as its EEV incentive runs till end 2016.
HeiTech Padu Bhd ( Valuation: 1.80, Fundamental: 0.55) has entered into an agreement with Permodalan Nasional Bhd (PNB) today for the outsourcing of information technology (IT) services, valued at RM16.96 million.
HeiTech told the exchange today that the agreement consists of application services, desktop management services, data center services, disaster recovery services and helpdesk services.
The contract is for a period of one year, commencing from Jan 1. The group expects the contract to contribute positively to its future earnings.
Pavilion Real Estate Investment Trust (REIT) recorded a 4.93% increase in its net property income for the fourth quarter of its financial year ended Dec 31, 2015 (4QFY15) to RM73.96 million, from RM70.49 million a year ago.
The REIT said in a Bursa Malaysia filing that the net property income increase was because of lower maintenance cost for some advertising sites in 4QFY15, compared to a year ago.
Pavilion REIT’s revenue in 4QFY15 inched up 2.67% from RM100.77 million in 4QFY14 to RM103.46 million.
Its distribution per unit (DPU) came to 4.14 sen for the quarter, compared to 4.12 sen last year. This rounded up its full-year DPU to 8.23 sen, a 3.39% increase from FY14’s 7.96 sen.
SapuraKencana Petroleum Bhd ( Valuation: 1.40, Fundamental: 0.65)’s (SapuraKencana) wholly-owned subsidiaries have secured contracts and extensions with a combined value of approximately US$117 million (RM503 million).
SapuraKencana said the jobs will have no effect on the issued and paid-up share capital of the company, but are expected to contribute positively towards earnings of the SapuraKencana group, principally for the financial year ending Jan 31, 2016, and for contracts that extend beyond the same date, the financial period thereafter during their respective contract periods.
Its unit, SapuraKencana HL Sdn Bhd, has been awarded an 8-month contract for the provision of hook-up and commissioning works for KNPG-B Phase II, a Kinabalu non-associated gas development project by THHE Fabricators Sdn Bhd, SapuraKencana’s bourse filing yesterday showed. The job is expected to start in the first quarter of 2016.
Another subsidiary, SapuraKencana Technology Sdn Bhd (formerly Sapura Energy Sdn Bhd), has been awarded a contract by Hess Exploration & Production Malaysia BV for the provision of engineering, procurement and construction of subsea isolation valve (SSIV) systems at Block PM302, North Malay Basin.
The job, for 18 months, has started and should complete around the first quarter of 2017.
In its drilling segment, SapuraKencana Drilling Tioman Sdn Bhd has been awarded a contract from Sarawak Shell Bhd/Sabah Shell Petroleum Co Ltd for the provision of its semi tender assist drilling rig, SKD Esperanza. The contract is 18 months, with the option to extend for up to another 18 months.
As for the tender assist drilling rig SKD T20, the contract, which was awarded to SapuraKencana Drilling Holdings Ltd on May 15, 2014, is now expected to be completed in June 2016, adding to the original contract term.
There is also the option to extend the contract by five additional wells, which if exercised, will keep the SKD T20 on contract until the final quarter of 2016, it added.
Atlan Holdings Bhd ( Valuation: 1.10, Fundamental: 1.40) saw its net profit climb 28.3% to RM13.68 million or 5.39 sen per share, on the back of an increased revenue of RM193.83 million, in its third quarter ended Nov 30, 2015 (3QFY16), up 10.3% from a year ago, due to improved performance of its duty free segment, as well as lower foreign exchange losses.
In a bourse filing, Atlan, however, revealed that net profit in its nine months ended Nov 30, 2015 (9MFY16) dropped marginally by 1.77% to RM31.26 million, against a higher revenue of RM572.5 million; compared to a profit of RM31.82 million and revenue of RM527.5 million during the same period last year.
IJM Construction Sdn Bhd, a wholly owned unit of IJM Corp Bhd, has clinched a RM484.2 million contract for external and landscaping works at Almãs, a mixed-use development at Puteri Harbour, Johor.
In a bourse filing, IJM Corp said IJM Construction has accepted a letter of award issued by UEM Land Bhd ( Valuation: 2.60, Fundamental: 1.50) for the main buildings works at phase 1A and phase 1B of the development. UEM Land is a wholly owned unit of UEM Sunrise, the developer of Almãs.
The project, which involves structural, architectural, mechanical and electrical works, besides associated external and landscaping works for the two phases.
Phase 1A is expected to be completed in 34 months, while Phase 1B are expected to be completed in 25 months.
RCE Capital Bhd ( Valuation: 2.20, Fundamental: 1.25), which saw its net profit jump 57% year-on-year in its six months ended Sept 30, 2015 (1HFY16), expects to post modest growth in its core loan financing segment for the current financial year ending March 31, 2016 (FY16), in light of the uncertain economic environment.
RCE Capital's chief executive officer Loh Kam Chuin said the non-bank financial institution, which provides personal financing to government servants, sees slowing in its growth in FY16, due to a more stringent policy in approving loans.
This is despite the group's net profit growing to RM19.65 million in 1HFY16, from RM12.52 million in 1HFY15, led by higher net interest income of RM6.8 million. Revenue also increased 21.9% to RM76.53 million, from RM62.76 million a year ago.
“In line with concerns on high household debt, we will also have to play our part. So, yes, we definitely have to be more careful and we are looking at more quality loans,” Loh told reporters, after the group's extraordinary general meeting (EGM) today.
He added that the non-performing loan will have to be managed.
Innoprise Plantations Bhd ( Valuation: 1.10, Fundamental: 0.85) has fixed the issue price for its two-call rights issue at 50 sen.
In a bourse filing today, the Sabah-based palm oil plantation company said it has fixed the first call rights share at 38 sen, which is payable in cash upon application, and 12 sen for the second call, which is to be capitalised from Innoprise’s share premium and retained earnings account.
Based on the issue price of 50 sen per rights share, Innoprise said price of the first call of 38 sen represents a discount of 25 sen or about 39.68% to the theoretical ex-rights price of 63 sen, based on the proforma five-day WAMP up to Jan 13, 2016 of 69 sen after the share split.
Innoprise had on Oct 9 proposed to undertake a one-to-two share split, followed by a renounceable two-call rights issue to raise up to RM36.57 million for its working capital, repayment of bank borrowings, and capital expenditure.
The rights issue will be exercised on the basis of one rights share for every four existing shares.
(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.)
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