Companies in the news - Bina Puri, Destini, Sunway REIT, Puncak Niaga, BToto and Sanichi

KUALA LUMPUR (June 20): Based on corporate announcements and news flow today, the companies that may be in focus on Friday (June 21) could include the following: Bina Puri, Destini, Sunway REIT, Puncak Niaga, BToto and Sanichi.

Contractor cum property developer Bina Puri Holdings Bhd has clinched a RM73 million contract to undertake pipe sleeper and underground work for Petroliam Nasional Bhd's (Petronas) refinery and petrochemical integrated development (Rapid) project.

Bina Puri’s 100%-owned subsidiary, Bina Puri Sdn Bhd, accepted the letter of award from Punj Lloyd Sdn Bhd. Bina Puri said the contract involved package-22 of Petronas' Rapid project in Pengerang, Johor.

The group said the works will be completed within 18 months. With the latest award, its unbuilt book order stands at RM1.62 billion.

Destini Bhd — an aviation, marine, and oil and gas engineering firm — has bagged a RM62 million contract from the Transport Ministry to build a new motor trolley and road rail vehicle.

Destini said its wholly-owned subsidiary, System Enhancement Resources & Technologies Sdn Bhd, has accepted a letter of award from the ministry for the proposed project.

In a statement, Destini said the new motor trolley and road rail vehicle are for national railway operator, Keretapi Tanah Melayu Bhd.

The contract is expected to last for two years, with completion in July 2018.

Destini’s managing director Datuk Rozabil Abdul Rahman also said the group is submitting tenders for more rail maintenance, repair and overhaul and manufacturing projects, and hope to clinch more contracts this year.

Sunway Real Estate Investment Trust (REIT) is buying a leasehold tract in Seberang Perai that measures 143,225 sq ft (13,306 sq m), from its parent Sunway Bhd for RM17.2 million, cash. The tract is adjacent to its Sunway Carnival Shopping Mall in mainland Penang.

In a bourse filing, the trust's manager, Sunway REIT Management Sdn Bhd, said the land is to facilitate its plans to increase Sunway Carnival's net lettable area.

The extension will comprise a nine-storey shopping mall that also includes a six-storey parking bay above the retail space, and a one-floor basement parking.

Sunway REIT said it has already signed the sale and purchase agreement earlier today, with the land owner Commercial Parade Sdn Bhd — which is a wholly-owned subsidiary of Sunway.

Sunway REIT expects to complete the acquisition by the second half of this year. As REITs are not permitted to conduct property development activities or acquire vacant lands under the Securities Commission’s REIT guidelines, Sunway REIT will seek a waiver of the rule from the regulator.

Puncak Niaga Holdings Bhd — a water, wastewater and environmental solutions provider — said its wholly-owned unit, Puncak Niaga Construction Sdn Bhd (PNC), has received two separate notices of arbitration from the subcontractor that PNC had terminated for the sewerage pipe network project at the Bunus catchment area here.

The subcontractor, Genbina Sdn Bhd, is seeking a payment of RM143.87 million, together with damages, interests, costs and other such relief as the arbitrator deems fit, from PNC.

PNC appointed Genbina as its subcontractor for the Bunus project via a letter of award (LoA) dated March 6, 2014. The RM394 million project was awarded to Genbina on Feb 14, 2014.

In a bourse filing, Puncak Niaga said the arbitration notices from Genbina, dated June 17, was received by PNC today, and that it was in relation to PNC's termination of Genbina on June 10 this year, allegedly due to various breaches of contract under the LoA, and slow progress of work.

PNC has instructed its lawyers to contest the matter.

Berjaya Sports Toto Bhd (BToto), a number forecast operator (NFO), saw its net profit for the fourth quarter ended April 30, 2016 (4QFY16) gain 35.1% to RM104.71 million or 7.77 sen per share, due to stronger earnings from Sports Toto Malaysia Sdn Bhd and Philippine Gaming Management Corp.

It posted a net profit of RM77.51 million or 5.72 sen per share in 4QFY15.

Quarterly revenue was up 1.4% to RM1.48 billion, from RM1.46 billion a year earlier, underpinned by higher revenue contribution from London-listed luxury car dealer HR Owen Plc, its bourse filing today showed.

But this was partially offset by lower revenue recorded by Sports Toto Malaysia.

It also declared a fourth interim dividend of five sen per share, payable on Aug 9.

For the full year (FY16), its net profit was down 15.3% to RM306.18 million or 22.7 sen per share, from RM361.61 million or 26.86 sen per share; while revenue grew 5.3% on year to RM5.56 billion, from RM5.28 billion a year earlier.

Going forward, BToto expects the NFO business to remain challenging, in view of the impact from goods and services tax, increasing illegal gaming activities and rising costs of living that have continued to dampen consumer spending.

Sanichi Technology Bhd, a plastic injection mould maker, has teamed up with licensed Petronas' vendor, Petrowangsa Sdn Bhd (Petrowangsa) to jointly bid for Petronas’ oil storage tank terminal contracts in the oil and gas (O&G) industry in Malaysia and the region.

The two parties inked a memorandum of understanding (MoU) to form the alliance today, according to Sanichi’s bourse filing.

Under the MoU, Petrowangsa will award, subcontract or nominate Sanichi as contractor, should it secure contracts in relation to its licences with Petroliam Nasional Bhd (Petronas), while Sanichi will provide mechanical engineering solutions to Petrowangsa.

In a press statement, Sanichi managing director Datuk Seri Dr Jacky Pang said the group is “very excited” about the partnership, as the value of the oil storage terminal projects under Sanichi’s radar in Malaysia and around the region is estimated to be above RM1 billion.