KUALA LUMPUR (Feb 3): Based on corporate announcements and news flow today, companies that may be in focus on Monday (Feb 6) could include the following: Bursa Malaysia Bhd, Tiong Nam Logistics Holdings Bhd, Lay Hong Bhd, Malaysia Airports Holdings Bhd, Borneo Aqua Harvest Bhd, Axiata Group Bhd and Kuantan Flour Mills Bhd.
Stock exchange operator and regulator Bursa Malaysia Bhd's net profit for the fourth quarter ended Dec 31, 2016 (4QFY16) came in flat at RM50.17 million, a marginal 0.86% drop from the RM50.6 million it recorded a year ago.
Bursa said in a filing that its earnings were dragged by lower profit from its securities market division, with the segment's net profit down 8.9% to RM65 million from RM71.4 million in 4QFY15.
However, this was mitigated by better performance of the derivatives markets division, which chalked an 11.6% increase in segment profit to RM14.3 million from RM12.8 million in 4QFY15, thanks to lower operating expenses.
Bursa's lower quarterly earnings was in line with the decline in its quarterly revenue, which fell by 8.7% to RM123.74 million from RM135.56 million a year ago, dragged by lower trading revenue and lower effective clearing fee rate.
Bursa said the average trading volume of shares on its bourse dropped to 1.54 billion shares from 2.23 billion shares in 4QFY15.
Tiong Nam Logistics Holdings Bhd’s subsidiary has been ordered to refund part of the sum it won in a legal suit against Lay Hong Bhd’s unit in a dispute over transportation charges.
The order was made by the Court of Appeal after Lay Hong Lay Hong Food Corp Sdn Bhd (LHF) appealed against the RM3.71 million sum awarded to Tiong Nam Logistics Solutions Sdn Bhd (TNLS) by the High Court in April 2016.
In a filing today, Tiong Nam said TNLS has been ordered to refund LHF RM2.63 million.
This sum includes RM274,540 being time barred claim, RM1.56 million being the loss of business due to failure to give six months’ written notice of nomination, and RM470,500 for the loss of the use of five trucks.
TNLS is allowed to retain close to RM1.6 million of the claim paid for services rendered, as well as RM30,000 out of the RM50,000 costs awarded by the High Court earlier.
Tiong Nam said the sum to be refunded has no material financial effect on the group as it was not recognised in its audited financial statements for the financial year ended March 31, 2016 (FY16).
Malaysia Airports Holdings Bhd’s (MAHB) operating agreements for KL International Airport (KLIA), klia2 and other Malaysian airports have been extended by 35 years.
In a filing with Bursa Malaysia today, MAHB said the operating agreement for KLIA entered between the Malaysian government and MAHB and its wholly-owned subsidiary Malaysia Airports (Sepang) Sdn Bhd in February 2009, has been extended for an additional period of 35 years, from the existing 25 years to 60 years.
Malaysia Airports (Sepang) handles the management, operations, maintenance and provision of airport-related services in KLIA, Low Cost Carrier Terminal (LCCT) and Klia2 in Sepang.
Additionally, another operating agreement entered between the government and MAHB together with its wholly-owned subsidiary Malaysia Airports Sdn Bhd (MASB) in February 2009, was also extended by 35 years from the existing 25 years to 60 years.
MASB is involved in the management, operations, maintenance and provision of airport-related services in other designated airports in Malaysia such as four international airports (Pulau Pinang, Langkawi, Kuching and Kota Kinabalu), 16 domestic airports and 18 short take-off and landing ports (STOLports).
Borneo Aqua Harvest Bhd has terminated its joint venture agreement (JVA) with City Harvest Aquaculture Sdn Bhd after the latter failed to deliver documents relating to its business activities.
"CHASB (City Harvest) failed to deliver the requested books, records, accounts, documents and vouchers relating to the business and affairs of CHASB as provided for under clause 9.1 of the JVA on 'Rights of Inspection and Information' despite repeated requests," Borneo Aqua said in a filing with Bursa today.
Shareholders of City Harvest also had an unresolved dispute that disrupted the group's operations.
To recap, Borneo Aqua's wholly-owned subsidiary Plentiful Harvest Sdn Bhd had entered into a JVA with City Harvest in January 2014 to enable City Harvest to utilise a few parcels of land for oyster aquaculture farming.
"Following the termination of the JVA, Plentiful Harvest will seize all assets belonging to City Harvest that are situated on the land," Borneo Aqua said.
Axiata Group Bhd's board of directors has extended Tan Sri Jamaludin Ibrahim's contract as managing director, president and group chief executive officer (CEO) for a further three years from March this year.
In a filing with Bursa today, Axiata said Jamaludin has been leading Axiata since 2008 and, together with his diversified management teams across the group, has turned it into a regional champion with major mobile operations in eight countries, and digital/internet ventures and tower infrastructure services in many others.
Axiata chairman Tan Sri Azman Mokhtar said Jamaludin will continue leading the group at this crucial moment to successfully oversee the turnaround of Celcom Axiata Bhd in Malaysia, the execution of PT XL Axiata Tbk's new strategy in Indonesia, and the merger of Robi and Airtel in Bangladesh, while at the same time capitalising on successes at most operating companies including edotco Group Sdn Bhd and Axiata Digital Services Sdn Bhd ventures
Practice Note 17(PN17) company Kuantan Flour Mills Bhd (KFM)’s external auditor has issued a qualified audit opinion for the group’s financial statements for its financial year ended Sep 30, 2016 (FY16).
In a filing with Bursa today, KFM said that its auditors McMillan Woods Thomas had issued a qualified opinion due to the uncertainties on the group’s going concern status.
The company has yet to finalise any business plan to revive the group since the announcement made on Dec 28, 2015 on its status as an affected issuer under PN17.
http://www.theedgemarkets.com/my/article/bursa-malaysia-tiong-nam-logistics-lay-hong-mahb-borneo-aqua-axiata-and-kuantan-flour-mills
