Precision sheet metal cum property developer Ewein Bhd (fundamental: 1.7; valuation: 1.1) has proposed to acquire 4.43 acres of freehold land in Bandar Tanjong Pinang, Penang, for RM162 million, for a possible residential and commercial property development project.
In a statement today, the group said its 60%-owned subsidiary, Ewein Zenith II Sdn Bhd, has entered into a sale and purchase agreement (SPA) with Consortium Zenith BUCG Sdn Bhd (CZBUCG) to acquire all the freehold land in Section 1, Bandar Tanjong Pinang, free from all encumbrances and with vacant possession.
The remaining 40% stake in Ewein Zenith II is held by CZBUCG.
Ewein added that the proposed land acquisition will be financed through a combination of internal funds and bank borrowings.
The proposed acquisition is expected to be completed in the first half of 2016.
The proposed acquisition is subject to shareholders' approval at the forthcoming extraordinary general meeting.
Edgenta Propel Bhd, a wholly-owned subsidiary of UEM Edgenta Bhd ( Valuation: 2.10, Fundamental: 2.50) (fundamental: 2.5; valuation: 2.1), has clinched a five-year RM109.07 million contract for the maintenance of certain state roads in Selangor.
In a filing with Bursa Malaysia, UEM Edgenta said Edgenta Propel had today received a letter of acceptance from the Selangor Public Works Department to carry out maintenance work on Zone III state roads.
The filing did not state the location of the Zone III state roads.
The contract will commence on Feb 1, 2016 and ends on Jan 31, 2021; and is expected to contribute positively to the group's future earnings and net assets per share.
Malaysia's second largest property developer Mah Sing Group Bhd ( Valuation: 2.40, Fundamental: 2.80) (fundamental: 2.8; valuation: 2.4) will be receiving RM35.96 million by Dec 31, 2015, representing the refund of the entire deposit for the acquisition of land in Seremban. The acquisition was terminated in August 2015.
In a statement today, the group said the vendor had offered to settle the dispute out of court by refunding the entire deposit, and Mah Sing has agreed to the settlement to avoid a protracted litigation.
“With this settlement, vendors have withdrawn their counterclaim, with no liberty of filing their claim afresh in this suit,” Mah Sing said.
Information technology solutions provider PUC Founder (MSC) Bhd ( Valuation: 1.10, Fundamental: 1.70) (fundamental: 1.7; valuation: 1.1) said its wholly-owned subsidiary EPP Solution Sdn Bhd has entered into a cross-border internet payment service collaboration agreement with Lakala Payment Co Ltd.
Lakala is one of China's leading internet financial services group, and is authorised to obtain the payment licence for all categories issued by the country’s central bank.
Lakala has strategic partnerships with UnionPay and various banks in China, including China Construction Bank, Bank of China and Agricultural Bank of China.
The agreement will be effective for a period of one year upon signing, and will be renewed automatically every year, unless both parties agree to terminate the agreement.
PUC Founder's managing director Cheong Chia Chieh said in a press statement that the group is expecting revenue contribution from this business, starting from the second quarter of 2016.
Wood-based furniture maker Poh Huat Resources Holdings Bhd ( Valuation: 1.70, Fundamental: 2.10) (fundamental: 2.1; valuation: 1.7) said adjuster Crawford Vietnam Co Ltd has proposed an interim payment of VND22 billion (RM3.83 million) as fire damage claim in relation to a fire incident that occurred at Poh Huat's manufacturing facilities in Binh Duong, Vietnam, on Aug 23.
In a filing with Bursa Malaysia today, Poh Huat said it has received the first portion of VND11 billion on Dec 11, and the second portion of VND11 billion on Dec 23.
This follows a fire claim of US$3.62 million (RM15.57 million) that Poh Huat had submitted to its insurance company, Bao Minh Insurance Corp, on Sept 17.
Poh Huat said it is now preparing the fire consequential loss claim.
The total settlement of the claim is pending finalisation and the group said an announcement will be made upon confirmation/acceptance of the same.
Poh Huat has estimated that the total net book value of the damaged factory buildings, together with the plant and machinery, totalled RM2.89 million; while damaged stocks amounted to RM6.12 million.
Public bus transport operator Konsortium Transnasional Bhd (KTB) (fundamental: 0.2; valuation: 1.1) is disposing of a 0.63ha piece of industrial land in Larkin, Johor Baru, to MHSB Development Sdn Bhd for RM2.1 million.
In a filing with Bursa Malaysia today, KTB said its wholly-owned subsidiary, Transnasional Express Sdn Bhd (TESB), has signed a sale and purchase agreement (SPA) with MHSB Development for the proposed disposal.
The land includes a two-storey shop office, which is currently being used as a workshop.
The land was originally acquired by the group for RM1.83 million on May 1, 2003. The net book value (NBV) of the property stood at RM1.25 million as at Dec 31, 2014.
Based on the original cost of investment and NBV of the property as at Dec 31, 2014, KTB said there would be an estimated gain of RM853,468 arising from the disposal.
The group said it intends to utilise the proceeds from the disposal for working capital purposes, and expects to complete the disposal within three months from the date of the SPA.
Information technology services provider Inix Technologies Holdings Bhd ( Valuation: 0.00, Fundamental: 1.65) (fundamental: 1.65; valuation: 0.0) is being cautious about its new foray into the sand dredging and land reclamation business, and is focusing on delivering projects currently under its belt, rather than shoring up business.
After the annual general meeting today, Inix executive director Mohd Anuar Mohd Hanadzlah told pressmen that the company is focusing on delivering on its projects and is not currently bidding for any projects.
On March 16, Inix entered into a conditional share sale agreement with Galactic Yield Enterprises Ltd to acquire a 30% stake in Galactic Maritime (Malaysia) Sdn Bhd, a dredging and land reclamation services provider, for RM7.2 million, which has since been completed.
Oil and gas offshore support services provider Yinson Holdings Bhd ( Valuation: 1.80, Fundamental: 1.90) (fundamental: 1.9; valuation: 1.8) saw its net profit slip 1.2% to RM85.74 million in its third financial quarter ended Oct 31, 2015 (3QFY15), from RM86.79 million a year ago, on impairment of available-for-sale financial assets and plant and equipment.
Revenue for the quarter fell 3.5% to RM246.41 million, from RM255.22 million in 3QFY14.
For the cumulative nine months period (9MFY15), the group’s net profit rose 18.1% to RM174.57 million, from RM147.77 million in 9MFY14. Revenue, however, dropped 11.5% to RM734.46 million in 9MFY15, from RM829.8 million a year ago.
In a filing with Bursa Malaysia today, Yinson said the 3QFY15 performance benefitted from foreign exchange gain of about RM38 million, due to favourable currency fluctuation, and reduction in realised loss on derivatives by RM5.308 million. These were offset by impairment of available-for-sale financial assets RM16.102 million and impairment in plant and equipment of RM18.98 million.
Yinson said going forward, global growth is expected to remain moderate and while major advanced economies continue to improve, the pace of recovery will be modest.
It opined that downside risks to global growth remain high, arising from the moderating growth momentum in a number of major economies, uncertainty surrounding energy and commodity prices.
Amid this challenging global economic environment, the group expects to sustain satisfactory results for the full financial year ending Jan 31, 2016.
Polyvinyl chloride related products manufacturer Tek Seng Holdings Bhd ( Valuation: 0.80, Fundamental: 0.60) (fundamental: 0.6; valuation: 0.8) said it is unaware of the reason behind the recent sharp rise in price and volume of its shares.
In a reply to Bursa Securities ( Valuation: 1.70, Fundamental: 2.30) today, after it was issued an unusual market activity (UMA) query, the polyvinyl chloride product and photovoltaic solar manufacturer said it is unaware of any corporate development that has not been previously announced, rumour, report or any other explanation for the unusual trading of its shares.
“The board wishes to confirm that the company is in compliance with Paragraph 9.03 of the LR of Bursa Securities, on immediate disclosure obligations,” it said.
Tek Seng also noted that the company saw its share price increase 22% within a span of eight trading days, to close at RM1.05 on Dec 23, from 86 sen on Dec 14.
(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.)
Companies in the news - Ewein, UEM Edgenta, Mah Sing, PUC Founder, Poh Huat, Konsortium Transnasional, Inix, Yinson and Tek Seng
http://www.theedgemarkets.com/my/article/ewein-uem-edgenta-mah-sing-puc-founder-poh-huat-konsortium-transnasional-inix-yinson-and-tek
