KUALA LUMPUR (June 16): Based on corporate announcements and news flow today, companies that might be in focus tomorrow (Friday, June 17) include: AE Multi Holdings Bhd, MB World Group, DKSH Holdings, Lion Corp, AmanahRaya REIT, Brite-Tech, Sunway, Reach Energy, KNM Group, Press Metal, Mudajaya Group and Mah Sing Group.
AE Multi Holdings Bhd has entered into an agreement with JMT Kelantan Baru Sdn Bhd, which will pave the way for it to venture into the growing renewable energy industry.
JMT, the holder of two feed-in approvals issued by the Sustainable Energy Development Authority for two renewable energy (RE) installations, is now planning the design, procurement, construction and commissioning of two 10MW integrated flood mitigated mini-hydro power projects, one each in Joh Labok and Temangan, Kelantan.
JMT had also in 2013, entered into two RE power purchase agreements with Tenaga Nasional Bhd, in respect of the sale and purchase of electricity to be generated from each of its RE installations for 21 years upon completion of the installations in 2018, said AE Multi.
AE Multi has approached JMT with a proposal to undertake the operation and maintenance of the RE installations, and JMT is prepared to consider the grant of the said right on an exclusive basis.
MB World Group Bhd plans to dispose of 19 units of serviced apartments in Pinnacle Tower, Johor Bahru, for RM18.6 million to generate revenue and cashflow for the group.
The disposal will be carried out by its property development unit, MB Max Sdn Bhd, which will concurrently enter into separate tenancy agreements with the respective purchasers.
Following that, MB Max will rent the properties for two years from the purchasers — four companies and two individuals — so that it achieves a rental return at a rate of 7% per annum for two years.
The Employees Provident Fund (EPF) has emerged as a substantial shareholder in DKSH Holdings (Malaysia) Bhd, with a 5.02% stake.
In a filing to Bursa Malaysia, DKSH said EPF is now holding 7.91 million shares or a 5.02% stake in the company, following the latest acquisition.
According to the filing, EPF had acquired 371,100 shares on June 9, for an undisclosed amount.
Lion Corp Bhd’s 78.89%-owned subsidiary Megasteel Sdn Bhd maintains that the `finding of the non-infringement’ by the Malaysia Competition Commission (MyCC) is correct and that the appeal by complainant Melewar Industrial Group Bhd is baseless and without merit.
Lion Corp was referring to a notice of appeal filed to the Competition Appeal Tribunal by Melewar on June 13 against MyCC’s finding that cleared Megasteel of anti-competition allegations regarding the alleged breaching of Section 10(1) of the Competition Act 2010.
“Megasteel has been advised that the finding of the non-infringement is correct and that the appeal by Melewar is baseless and without merit,” it said.
AmanahRaya Real Estate Investment Trust is acquiring a land together with a four-storey office building in Cyberjaya, for RM40 million.
In a filing to Bursa Malaysia, AmanahRaya REIT said it is buying the property from Cyberview Sdn Bhd and Setia Haruman Sdn Bhd.
The trust manager said the freehold land measures 8,312 square metres (89,470 sq ft), while the building has a gross floor area of approximately 93,804 sq ft.
AmanahRaya REIT intends to pay 20% of the purchase price in cash and the remainder through a term loan, noting this will raise its gearing to 29.5%, from 26% now.
Brite-Tech Bhd plans to acquire a single-storey semi-detached factory with a mezzanine office in Alor Gajah, Melaka, for RM901,000 for future expansion and potential capital appreciation.
Brite-Tech said its subsidiary Tan Tech-Polymer Sdn Bhd, which manufactures polymers and its related chemical products, is buying the leasehold building with a built-up area of 335 square metres from Tech-Latex Holding Sdn Bhd.
The purchase consideration will be funded by a combination of bank borrowings and internally-generated funds, the group said in a filing with Bursa Malaysia today.
Sunway Bhd expects to sustain its revenue for the financial year ending Dec 31, 2016 (FY16), despite the challenges ahead, said its executive chairman Tan Sri Dr Jeffrey Cheah Fook Ling.
"The year is expected to be very challenging, and while Sunway is not exempted from the weakness in the macroeconomic environment, I think we can sustain our revenue and performance for FY16," he told the media, after the group's annual general meeting.
Cheah added the group has a steady income stream derived from the recurring rental income from its property investment assets, as well as dividend income from its associate, Sunway Real Estate Investment Trust.
Sunway has a diversified business across multiple industries, including property, construction, hospitality, leisure, trading and manufacturing, quarrying, building materials, and healthcare.
Emir Oil LLP, the target of a proposed qualifying asset (QA) acquisition by Reach Energy Bhd, has found oil and gas bearing reservoirs in its first exploration well in the Aidai Block in the southwestern region of Kazakhstan.
Emir Oil is MIE Holdings Corp's subsidiary. MIE made the announcement about the positive results of the initial testing phase of the exploration well on the Hong Kong Exchange, yesterday.
"The drilling of the well was completed [in] June 2015. It reached a total depth of 5,080m and confirmed the presence of oil and gas bearing reservoirs in Triassic formation," said MIE in the HKEX filing.
The well is the group's deepest well to date, with drilling cost of about US$10 million.
Downstream oil and gas player KNM Group Bhd said it is focusing on improving its income base, to generate more recurrent revenue amid the uncertain global economic environment.
Its chief executive officer Lee Swee Eng said the group, which currently derives the entirety of its income from contracted works, expects to see up to 15% of its topline to be contributed by recurrent income for the financial year ending Dec 31, 2017 (FY17).
"Traditionally, KNM has gotten its revenue from contracting works. We are now embarking into more recurring income projects, such as biofuel and waste-to-energy. This will change our revenue landscape, going forward.
"By the end of this year, our bioethanol plant in Thailand will start production, so we should have recurrent income from that project. We are looking at 10% to 15% full year contribution in 2017, in terms of recurring income.
"Hopefully by 2018, when the waste-to-energy project is ready, we will have a 50:50 ratio of contribution from recurring income and contracting works," Lee said.
Press Metal Bhd is targeting a RM6 billion turnover for the financial year ending Dec 31, 2016 (FY16), said its group chief executive officer Datuk Koon Poh Keong after the group's annual general meeting.
"We expect to be able to reach a RM6 billion turnover this year. It will be a big increase; however, we think because of the output that we are now generating, if the prices of aluminium for this year stay about the same as last year, I think we will be able to reach that target," he said.
Following the completion of its Phase 3 aluminium smelter in Sarawak, Press Metal's smelting capacity will rise to 760,000 tonnes per annum, 1.5% of global primary aluminium production.
Koon also explained Press Metal's plan to extend the value chain of the group's operations to more mid-stream products such as billets and alloy wheel ingots, adding value and enhancing its profit margin.
Mudajaya Group Bhd has submitted RM8 billion worth of construction tenders this year, of which RM3 billion is related to power plant construction — a field that it believes it specialises in and has fewer competition.
Speaking to reporters after Mudajaya's annual general meeting, group managing director James Wong Tet Foh said most of the projects that the group has bid for, are in Malaysia.
Apart from power plants, the bids are for packages in major infrastructure projects such as the Sarawak portion of the Pan Borneo Highway, the second line of Klang Valley Mass Rapid Transit (MRT Line 2), the third phase of light rail transit (LRT3), and the West Coast Expressway (WCE).
"In fact, we were already pre-qualified for LRT3," he said.
Mah Sing Group Bhd is exploring more land acquisition and joint venture (JV) opportunities with the federal government, as well as state governments, to grow its earnings.
Managing director Tan Sri Leong Hoy Kum said the company would talk to federal and state authorities on potential JVs. For now, Leong said Mah Sing's Kota Kinabalu Convention Centre mixed development in Sabah was the only project undertaken in collaboration with the government.
"We have been looking for opportunities from time to time. JV with the government is one of the ways.
"Nothing more [that] we can share, as nothing is concrete yet," Leong said.
http://www.theedgemarkets.com/my/article/ae-multi-holdings-mb-world-group-dksh-holdings-lion-corp-amanahraya-reit-brite-tech-sunway
