KUALA LUMPUR (Feb 18): Based on corporate announcements and news flow today, companies likely to be in focus on Friday (Feb 19) include: BHIC, AirAsia, Bina Darulaman, UMW, Hup Seng Industries, MK Land, I-Bhd, Sarawak Plantation, Mulpha International and PUC Founder.
Boustead Heavy Industries Corp Bhd (BHIC) said its 51%-owned subsidiary, BHIC Aeroservices Sdn Bhd (BHIC AS) has received an extended letter of award (LOA) from the Defence Ministry for its previous "in service support" (ISS) contract.
In a filing to Bursa Malaysia, BHIC said the extended award brings the value of the contract to RM63.2 million, from RM32.4 million previously. The contract has been extended for three years, effective Feb 7.
The Group said the extended LOA will have a material effect on its earnings for the financial year ending Dec 31, 2016, and will contribute positively to its future earnings.
To recap, the contract was initially awarded on Jan 30, 2013 for BHIC AS to provide ISS for six units of Royal Malaysian Navy Fennec AS555SN helicopters for a period of three years.
With low oil prices reducing its operating costs, AirAsia Bhd's group chief executive Tan Sri Tony Fernandes said the budget carrier is ready to start expanding again in Southeast Asia, and is eyeing Vietnam and the Philippines, according to a Reuters report.
Fernandes, speaking to reporters on the sidelines of the United States–Asean trade conference in San Francisco today, said the pace of expansion would depend on securing approvals for new routes and airport access.
"We're going to start expanding again in different parts of Asean," Fernandes was quoted by Reuters as saying.
While some benefits of the collapse of oil prices have been swallowed up by a decline in currencies in its major markets, Fernandes said he viewed the lower fuel costs as "an opportunity to expand, to regrow, to put capital investment in".
Kedah-based property developer Bina Darulaman Bhd's (BDB) net profit for the fourth quarter ended Dec 31, 2015 (4QFY15) nearly doubled to RM14.16 million or 4.66 sen per share, from RM7.71 million or 10.59 sen per share a year ago, mainly due to recovery of doubtful debt in which BDB was able to recover RM4.7 million debt from a related company.
In a filing with Bursa Malaysia today, BDB said lower cost of sales in the property and construction divisions arising from finalisation of accounts for completed projects, had also contributed to the higher profit.
Revenue for 4QFY15, however, fell 24.35% to RM105.84 million, from RM139.9 million a year ago, due to a one-off transaction relating to an en-bloc sales to PR1MA in 4QFY14.
For the full year FY15, the Group saw its net profit slip 0.84% to RM23.97 million or 7.88 sen per share, from RM24.17 million or 33.18 sen per share in FY14, on lower revenue.
Revenue dropped 26.02% to RM243.3 million, compared to RM328.88 million in FY14, hit by lower contributions from its property and construction divisions.
UMW Holdings Bhd has earmarked 12 hectares (ha) of land in Serendah, Selangor, for a proposed plant, to produce fan cases for Rolls-Royce Holdings Plc’s jet engines.
UMW Holdings' president and group chief executive officer Badrul Feisal Abdul Rahim said the plant, which is for its wholly-owned subsidiary UMW Aerospace Sdn Bhd, is expected to receive its first order in October 2017.
“Earthworks on the site are progressing as planned and UMW Holdings is currently on course to deliver its first unit of Trent 1000 fan case aero engines to Rolls-Royce’s assembly facility in Seletar Aerospace Park, Singapore, upon receipt of the first purchase order targeted for October 2017,” he said in a statement today.
“Despite the current unfavourable economic conditions, we are positioning ourselves into the field of high-value manufacturing.
“We believe that the fan case project will enable UMW to strengthen its engineering capabilities and establish a strong platform for delivering future value creation for the Group,” he added.
UMW Aerospace signed a 25-year agreement with Rolls-Royce in August last year, to manufacture and assemble fan cases for Rolls-Royce’s Trent 1000 and Trent 7000 aero engines.
The deal came with a five-year extension option.
Biscuits and coffee producer Hup Seng Industries Bhd's net profit rose 22.16% to RM15.39 million or 1.92 sen a share for the fourth quarter ended Dec 31, 2015 (4QFY15,) from RM12.6 million or 1.57 sen a share a year ago, mainly due to improved sales margin brought about by lower input costs, weaker ringgit and improved efficiency in production.
Revenue for 4QFY15 increased 8.72% to RM80.07 million, versus RM73.65 million in 4QFY14, as benign growth in demand for biscuits in local and export market contributed to the increase in sales volume.
For FY15, the Group's net profit surged 43.47% to RM54.73 million or 6.84 sen a share, from RM38.15 million or 4.77 sen a share in FY14; while revenue went up 9.4% at RM286.86 million, compared to RM262.22 million last year.
MK Land Holdings Bhd plans to launch five new property projects with a total gross development value (GDV) of RM571 million, before the current financial year ends on June 30, 2016 (FY16).
MK Land's chief executive officer Lau Shu Chuan said although the overall market is currently subdued, the Group is still moving ahead with some new launches in FY16, within the affordable homes segment.
Leading the new launches is its Residensi Suasana@Damai condominium project in Damansara Damai here, which has a GDV of RM400 million and will be launched in April.
Spanning 5.65 acres (2.29ha), it features 780 condominium units, which will be launched in three phases. The units come in two sizes — 1,015 sq ft and 1,455 sq ft — with prices starting from RM450,000 or RM444 per square feet (sq ft).
The Group will also launch next month (in March), three affordable housing projects in Ipoh, Perak, comprising three phases within its Klebang Putra project, valued at RM98 million; whilst the last phase within its Meru Perdana 2 development, with a GDV of RM73 million, will be launched in June.
I-Bhd, the developer of the i-City, is optimistic about its current year financials, as the Group undertakes RM1.5 billion worth of property projects.
I-Bhd's deputy chairman Datuk Eu Hong Chew said the projects include the 8Kia Peng residential tower, near the iconic Petronas Twin Towers, within the Kuala Lumpur City Centre.
Speaking to reporters today after the signing ceremony to appoint Setiakon Builders Sdn Bhd as the master contractor for 8Kia Peng, Eu said the 50-storey 8Kia Peng, which has a GDV of RM1 billion, will offer 442 units, comprising 315 serviced apartments and 127 small office/home offices.
I-Bhd is also undertaking the RM500 million, 43-storey Hyde Tower residential project within i-City. He said Hyde Tower is slated for launch next week.
Sarawak Plantation Bhd saw its net profit fall 87.7% to RM2.88 million or 1.03 sen in the fourth quarter ended Dec 31, 2015 (4QFY15), from RM23.39 million or 8.37 sen a year ago, due mainly to a reversal of impairment loss in FY14.
For 4QFY15, Sarawak Plantation registered a revenue of RM91.31 million, which was 6.08% lower from the RM97.22 million reported in 4QFY14.
The Group also declared an interim dividend of 4.5 sen per share for FY15, payable on March 30.
For full-year FY15, Sarawak Plantation's net profit fell 65.3% to RM21.3 million or 7.62 sen per share, from RM61.29 million or 21.92 sen in FY14; while revenue dropped 14.3% to RM334.23 million, from RM389.9 million a year earlier.
Moving forward, Sarawak Plantation said its performance is largely dependent on the production, operation efficiency and prices of crude palm oil (CPO) and palm kernel (PK).
Property developer Mulpha International Bhd, through its strategic investment in Aveo Group Ltd, took over the owner and operator of retirement communities Freedom Aged Care Pty Ltd, to build on its care offering to elderly Australians.
Mulpha said in a statement that Freedom owns and operates more than 1,000 units in 15 retirement communities across Australia in Queensland, New South Wales, Victoria and Tasmania, as well as a development pipeline of 533 units.
The development pipeline includes 387 units in five of the 15 existing villages and a 146 unit site for an additional new village on the Sunshine Coast in Queensland.
Mulpha said the acquisition of Freedom is a key component to Aveo's strategy, which is to increase the levels of care and support services to its residents. This is following the acquisitions of 50% interest in two allied health businesses, Mobile Rehab and The Physio Co, last year.
Freedom retirement communities are unique private care retirement communities under the Retirement Villages legislation, dedicated to delivering unmatched levels of freedom, lifestyle and care with 24-hour nursing available. Its offering is to residents with initially low to moderate care needs, it added.
"Post-acquisition of Freedom and with the rollout of our existing development pipeline, Aveo will be operating 95 retirement communities with over 17,000 homes for elderly Australians, making us the largest owner and operator of retirement communities in Australia," Mulpha's executive chairman Lee Seng Huang said.
Mulpha owns 26.26% equity interest in Aveo Group.
PUC Founder (MSC) Bhd, which is undertaking a rights issue to raise RM83.9 million as part of the Group's strategy to diversify into solar photovoltaic (PV) power plant, saw the corporate exercise being undersubscribed by 42.83%.
In a filing with Bursa Malaysia today, the Group said as at Feb 5, the total valid acceptances and excess applications received under the rights issue of irredeemable convertible unsecured loan stocks (ICULS) was RM42.65 million, representing an undersubscription of RM31.95 million, over the total of RM74.61 million.
PUC Founder said it will proceed with the rights issue of ICULS, since the minimum subscription level of RM28 million nominal value has been fulfilled.
RedHot Media International Ltd (RHIL), the substantial shareholder of PUC Founder with a 41.58% stake, had previously agreed to subscribe RM28 million nominal value of the rights ICULS.
RHIL is owned by PUC Founder’s managing director Cheong Chia Chieh@ Chang Chia Chieh.
The rights issuance of ICULS was devised on the basis of 28 ICULS for every 20 shares. It also comes with free warrants on the basis of seven warrants for every 28 rights ICULS.
PUC Founder said the valid acceptances of warrants stood at 213.27 million, against a total of 373.03 million.
PUC Founder’s rights ICULS was issued at five sen each, with a conversion price of 10 sen for one share, identical to the exercise price of the said warrants.
Of the RM83.9 million proceeds, PUC Founder had planned to use 89.12% or RM74.77 million of it for capital expenditure to construct solar PV plants, with capacities ranging from 3MW to 9.5MW.
Another RM8.13 million or 9.69% was for working capital, and RM1 million for expenses incurred with regards to the exercise.
http://www.theedgemarkets.com/my/article/bhic-airasia-bina-darulaman-umw-hup-seng-industries-mk-land-i-bhd-sarawak-plantation-mulpha
