KUALA LUMPUR (March 1): Based on corporate announcements and news flow today, companies that may be in focus tomorrow (Wednesday, March 2) could include the following: Econpile, PPB, CIMB, HeveaBoard, Sime Darby, Fajarbaru, Kuchai Development, Ta Ann, Unimech, China Automobile, Scomi Eng, Flonic Hi-Tec, Southern Steel and Hap Seng.
Econpile Holdings Bhd has clinched a piling works contract for the East Klang Valley Expressway (EKVE) project package 1 and 2 from Ahmad Zaki Sdn Bhd, valued at RM76.9 million.
In a filing with Bursa Malaysia today, the piling specialist said its unit Econpile (M) Sdn Bhd has received a letter of award dated Feb 26 from Ahmad Zaki for the proposed contract.
"The contract comprises bored piling works for the package 1 and 2 under the EKVE interchanges and spur roads project," it said, adding the duration of the contract is approximately 24 months, completing in February 2018.
PPB Group Bhd's fourth quarter's net profit for the financial year ended Dec 31, 2015 (4QFY15) jumped 21.2% to RM341 million versus RM281.43 million a year earlier, driven mainly by higher profit contribution from the grains and agribusiness segment in addition to a foreign exchange translation gain on Wilmar's results which are reported in US dollar, as well as profits from investment and other operational segment.
The group's revenue rose 16.86% in 4QFY15 to RM1.09 billion, compared to RM993 million in 4QFY14, primarily due to higher revenue from grains and agribusiness, film exhibition, environmental engineering and property segments.
The management has proposed a final single tier dividend of 17 sen per share for financial year ended Dec 2015, which will be tabled for approval at the annual general meeting, which is on May 10, 2016. The final dividend is payable on May 25.
For the full year 2015, PPB saw its net profit increase by 14.67% to RM1.05 billion, from RM917 million a year ago.
CIMB Group Holdings Bhd, the country's second largest lender by assets, has appointed Datuk Kong Sooi Lin as chief executive officer of CIMB Investment Bank Bhd (CIMB IB) with immediate effect.
In a statement today, CIMB Group said Kong has 27 years of investment banking experience, of which 22 years were honed with CIMB IB.
Heveaboard Bhd, which is currently in a net cash position, plans to spend RM20 million in its financial year 2016 to upgrade its factories and expects an increase of capacity by 10% to 15% by the end of this year.
Heveaboard group managing director (MD) Yoong Hau Chun said RM20 million capital expenditure would be used to upgrade the existing line in this financial year ending Dec 31, 2016 (FY16).
From that amount, RM8 million would be used for Heveaboard to upgrade its production line for particleboard, while the other RM12 million would be allocated to its wholly-owned subsidiary HeveaPac Sdn Bhd for its ready-to-assemble furniture products.
Moody's Investors Service has downgraded the issuer rating of Sime Darby Bhd and its bond ratings to Baa1 from A3, with a negative outlook.
"The downgrade reflects the extended period of weakness evident in Sime Darby's financial profile after it delayed plans to reduce its debt, while cash generation is deteriorating across its key business segments of plantation, industrial and motors because of a tougher operating environment," said Moody's assistant vice president and analyst Jacintha Poh in a statement today.
The international rating agency noted that the conglomerate's financial profile has been deteriorating in large part since the completion in March 2015 of its heavily debt-funded acquisition of New Britain Palm Oil Ltd for RM6 billion.
Fajarbaru Builder Group Bhd (FBG) said its wholly-owned unit has been appointed to redevelop the low-cost carrier terminal (LCCT) at the Kuala Lumpur International Airport in Sepang.
Fajarbaru Builder Sdn Bhd received the RM11.68 million contract, excluding goods and services tax, from Malaysia Airports (Sepang) Sdn Bhd, FBG said in a filing with Bursa Malaysia.
FBG said the proposed redevelopment will run for eight months from March 14 to Nov 13 this year.
Kuchai Development Bhd has appointed former non-executive director Justin Lee Chung-Shih as its new MD, the group said in a filing with Bursa Malaysia this afternoon.
According to Kuchai's 2015 annual report, Lee was appointed to the board since Feb 19, 1990, and holds directorships in Kluang Rubber Company (Malaya) Bhd and Sungei Bagan Rubber Company (Malaya) Bhd.
Lee, 54, owns a 0.38% direct stake in Kuchai as at Oct 15, 2015, while having a 51.65% indirect stake through Kluang Rubber and Sungei Bagan Rubber.
Ta Ann Holdings Bhd has proposed a bonus issue of up to 74.15 million ordinary shares of RM1 each on the basis of one share for every five existing Ta Ann shares on an entitlement date to be determined later.
In a bourse filing, Ta Ann said its enlarged share capital after the proposed bonus issue, which was proposed to reward shareholders, could rise to between 444.84 million shares and 444.88 million shares.
Its current issued and paid-up capital as at Dec 31, 2015 is 370.73 million shares. It expects the proposed bonus issue to be completed in the second quarter of 2016.
Ta Ann pointed out that the bonus issue would increase the number of shares held by shareholders, whilst maintaining their percentage equity interest in the group.
Unimech Group Bhd has appointed Datuk Seri Kiew Kwong Sen as the group's independent and non-executive chairman to replace the late Tan Sri Kamal Hashim.
In a filing with Bursa Malaysia today, the Penang-based company said Kiew, 68, will take over the position effective today.
Kiew currently holds the positions of chairman with Vitrox Corp Bhd and the Penang Small and Medium Enterprise (SME) Management Council, and director for Penang Science Council and Penang Green Council.
Kiew, a mechanical engineering graduate from the National Taiwan University and a Master of Science in Industrial Engineering from University of California, was also a vice chairman of InvestPenang Bhd till March 2008.
China Automobile Parts Holdings Ltd (CAP) is proposing a par value reduction to one US cent, from 10 US cents, to facilitate the implementation of an employees' share option scheme (ESOS), which will involve up to 15% of its issued and paid-up capital.
In a bourse filing today, the Bermuda-registered company said that as at Feb 29, its closing price was 6.5 sen or 1.55 US cents, which is at a discount of about 84.5% to the existing par value.
Under Bermuda Law, according to CAP, a share in a company may not be issued for a consideration that is below its par value.
"Thus, the present share price of the company is not conducive for the company to implement the proposed ESOS currently," it said.
Scomi Engineering Bhd's wholly-owned subsidiary has obtained an ex parte injunction to restrain Prasarana Malaysia Bhd from wrongfully terminating the RM494 million Kuala Lumpur Monorail Fleet Expansion project.
In a filing with Bursa Malaysia today, Scomi said Scomi Transit Projects Sdn Bhd, which filed the injunction that is valid till Friday, will have the matter heard inter parte then.
Scomi said the monorail fleet expansion deal is for an upgrade of the stations in the city as well as the electrical and mechanical system, the construction of a new depot, and delivery of 12 sets of new four-car trains.
Scomi pointed out that the first contract agreement was dated June 3, 2011 while the second supplemental contract was dated April 15, 2015.
Flonic Hi-Tec Bhd has appointed 24-year-old Loh Boon Ginn to assume its newly-created MD position.
The group also told Bursa Malaysia that its executive chairman Datuk Chua Wye Man has resigned to pursue other business interest after serving the company for four years.
Flonic Hi-Tec said Loh has a Bachelor of Entrepreneurship from Curtin University, Western Australia, and is the founder of a company involved in business investment activities and construction.
Southern Steel Bhd has confirmed that its subsidiary was affected by the industry-wide audit conducted by the Royal Malaysian Customs Department.
In a filing with Bursa Malaysia, Southern Steel said Customs made a "surprise" visit to its subsidiary Southern Steel Pipe Sdn Bhd (SSP) on Feb 24.
"For the purpose of the audit, Customs took custody of certain documents and related financial records and has frozen certain bank accounts. SSP has extended and will continue to extend its cooperation to RMCD (Customs) on its audit," Southern Steel said.
Hap Seng Consolidated Bhd is proposing to dispose of a 51% stake in its commercial vehicle business for RM382.5 million, to finance its RM380 million acquisition of a mosaics and ceramic tiles manufacturing business.
In a filing with Bursa Malaysia today, Hap Seng said its wholly-owned subsidiary Hap Seng Star Sdn Bhd has entered into a share sale agreement (SSA) with Lei Shing Hong Commercial Vehicles Ltd (LSHCV) to dispose of the 51% stake in Hap Seng Commercial Vehicle Sdn Bhd (Hap Seng CV) for RM382.5 million.
Under the deal, LSHCV also granted a five-year put option to Hap Seng Star, an authorised dealer for Mercedes-Benz, to sell the balance 49% stake in Hap Seng CV for RM367.5 million. The put option is exercisable only after the 51% stake is disposed of.
In a separate filing, Hap Seng said it has entered into another SSA with Gek Poh (Holdings) Sdn Bhd for the acquisition of the entire equity interest in Malaysian Mosaics Sdn Bhd, which manufactures a wide range of porcelain and ceramic tiles for walls and floors of residential and commercial properties, for RM380 million.
Under the deal, Hap Seng gets a profit guarantee from Gek Poh that Malaysian Mosaics' audited consolidated profit after tax shall not be less than RM30.71 million for the financial year ending Dec 31, 2016 (FY16), not less than RM40.93 million for FY17, not less than RM53.9 million for FY18, not less than RM67.52 million for FY19, and not less than RM81.97 million for FY20.
Hap Seng said the acquisition is expected to contribute positively to its future earnings and will complement its building material businesses, including its Singapore-listed subsidiary, Hafary Holdings Ltd, which is a supplier of premium tiles, stone, mosaic, wood-flooring, quartz top and sanitary ware fittings in Singapore.
If the abovementioned disposal does not materialise, Hap Seng will finance the acquisition via internally generated funds and/or bank borrowings, the breakdown of which will be determined later.
Both the proposals require the approval of Hap Seng's shareholders. Hap Seng expects to complete the corporate exercises by the second quarter of 2016.
Mar 2, 2016
http://www.theedgemarkets.com/my/article/econpile-ppb-cimb-heveaboard-sime-darby-fajarbaru-kuchai-development-ta-ann-unimech-china
