Companies in the news - Tropicana, SapuraKencana, JAKS, OCK Group, UEM Edgenta, Subur Tiasa, Comintel, YTL Power and Wah Seong

KUALA LUMPUR (June 28): Based on corporate announcements and news flow today, companies that may be in focus tomorrow, Wednesday (June 29) could include the following: Tropicana, SapuraKencana, JAKS, OCK Group, UEM Edgenta, Subur Tiasa, Comintel, YTL Power and Wah Seong.

Tropicana Corp Bhd appointed Japan-based Panasonic Group's subsidiary PanaHome Malaysia Sdn Bhd as turnkey contractor for the third phase of Tropicana's RM12.4 billion Tropicana Aman township in Selangor.

The third phase of the 345ha (863-acre) Tropicana Aman near Kota Kemuning is known as Cheria Residences, which has a gross development value of RM358 million.

Tropicana group chief executive officer Datuk Yau Kok Seng said the RM168 million turnkey contract involved the construction of 272 semi-detached houses. Under the contract, Yau said PanaHome would also provide smart home technology to these residential units.

According to Yau, Cheria Residences is expected to be launched next month. He said the project is scheduled for completion by 2019.

SapuraKencana Petroleum Bhd's first quarter net profit fell 58% to RM110.31 million from a year ago as the oil and gas (O&G) support services provider contended with lower demand for its rigs as oil companies spent less on upstream operations.

In a statement to Bursa Malaysia today, SapuraKencana said lower crude oil output and prices had also curbed income growth.

SapuraKencana said net profit fell to RM110.31 million in the first quarter ended April 30, 2016 (1QFY16) from RM260.69 million. Revenue was lower at RM1.94 billion versus RM2.26 billion.

The company said group revenue decline was "mainly attributable to lower revenue from drilling and energy business segments". The group said certain rigs were "off contract" during the quarter.

Against such backdrop, the company said it was focusing on orderbook growth and replenishment in key markets. The group said it was also rebasing its cost and increasing operational efficiency.

The group’s wholly owned units have also secured new contract wins and extensions that carry a combined value of about USD125 million (approximately RM513 million).
In a separate filing with Bursa Malaysia today, SKP said SapuraKencana Drilling Tioman Sdn Bhd (SKD Tioman) has secured one new contract, while SapuraKencana HL Sdn Bhd (SKHL) has won three; SapuraKencana Australia Pty Ltd (SKA) has also bagged two other jobs.

Meanwhile, another unit, SapuraKencana Drilling Jaya Ltd (SKD Jaya) has managed to extend one of its existing contract.

The contracts, said SapuraKencana, are expected to contribute positively towards the earnings of the group principally for the financial year ending Jan 31, 2017 (FY17) and for the subsequent financial periods in accordance to their respective contract periods.

JAKS Resources Bhd aims to divest the newly opened Evolve Concept Mall near Ara Damansara, Selangor, within a year to further enhance its financial position.
According to JAKS's latest quarterly report, Evolve Concept Mall's fair value stood at RM390 million and a net lettable area of 460,000 square feet.
It has a retail mix of fashion brands such as LOGO Fashion Lounge & Gallery, H&M, F.O.S, Jaya Grocer and Guardian pharmacy. It also has various food and beverage outlets, such as Peninsula Chinese Cuisine and Texas Chicken, and a convention hall.
Its website listed LOGO, Foodzine, Celebrity Fitness, Jaya Grocer and Peninsula Chinese Cuisine as its main anchor tenants

OCK Group Bhd has secured a US$40.2 million (RM163.8 million) loan in Myanmar to help finance the construction of 920 telecommunications towers in the country.

In a statement today, the telecommunications network service provider said its wholly-owned subsidiary OCK Yangon Pte Ltd signed the syndicated term loan agreement with the Yangon branches of OCBC Bank Ltd, Malayan Banking Bhd, United Overseas Bank Ltd and Bangkok Bank Plc.

OCK managing director Sam Ooi said the financing received from the banks is a testimony of their confidence in the group's telecommunication tower business.

In December 2015, OCK and its Myanmar partner, King Royal Technologies Co Ltd, signed a master services agreement with Telenor Myanmar Ltd resulting in OCK becoming a tower company for Telenor in the country.

Telenor operates the largest 3G network in Myanmar.

The syndicated loan given to OCK is one of the largest by onshore foreign banks since the Myanmar financial sector was opened to foreign banks in 2015.

UEM Edgenta Bhd has secured a RM42.99 million contract from Malaysia Airlines Bhd for facilities management services for the national carrier.

According to its bourse filing today, the group said its 80%-owned subsidiary KFM Holdings Sdn Bhd has entered into a related party transaction with Malaysia Airlines for the above contract.

Under the contract, UEM Edgenta will provide Malaysia Airlines with facilities management, hotel management, mailing and cafeteria services.

It will also collect a RM4.1 million sinking fund from Malaysia Airlines, which will be used for facilities maintenance based on certain terms and conditions set by Malaysia Airlines.
The contract period is 34 months or such extended period as stipulated.

UEM Edgenta expects the contract to contribute positively to its earnings for the financial years ending Dec 31, 2016 (FY16) to FY18.

Subur Tiasa Holdings Bhd registered a net loss of RM13.9 million in the third quarter ended April 30, 2016 (3QFY16) as compared to a net profit of RM2.71 million in the corresponding quarter a year ago.

According to the filing to Bursa Malaysia today, the decline in earnings was mainly due to lower average free on board (FOB) export selling price of logs, plywood and sawn timber; higher raw material costs for manufacturing of timber products; and higher volume of fertilizer applied to higher acreage of mature oil palm trees.

The group's revenue for 3QFY16 decreased 37.6% to RM110.2 million from RM176.7 million.

"The group will focus on improving the existing business while diversifying into other businesses in order to deliver sustainable profitability and continual growth of the organisation," a note filed with Bursa said.

Comintel Corp Bhd's net profit surged to RM5.36 million or 3.83 sen per share in the first quarter ended April 30, 2016 (1QFY17) from RM1.86 million or 1.33 sen per share a year earlier.
Quarterly revenue grew 24.5% on year to RM103.72 million from RM83.33 million due to better performance of the manufacturing segment on higher demand for the products it manufactured.
The latest quarterly earnings accounted for 38% of last year's full year net profit of RM13.89 million.
The group attributed this to the better financial performance of its manufacturing segment on productivity improvement, higher demand for its products and shipment of better margin products.
Going forward, the group said the global economic outlook remains challenging amidst the current political situation in the European Union with the exit of UK and the ongoing commodity price crisis.

YTL Power International Bhd said it is not able to quantify the effects of the Brexit referendum results on the group for now, although it does not expect its water services unit in the UK to be materially affected.
"In light of the uncertain and highly fluid nature of the current situation, and given that events are still developing with no official indication from the UK government on the future steps to be taken, YTL Power is not able to quantify the effects, if any, of the outcome of the Brexit referendum on the group at this time," it said in the statement.

YTL Power said its major operation in the UK comprises its 100% stake in Wessex Water, which provides water and sewerage services in the southwest region of England under a regulatory concession granted by the UK government.

YTL Power said it is monitoring events and conducting ongoing assessments of any operational and financial impacts, and will make further announcements in due course.

After four months, the audit and investigations led by the Royal Malaysian Customs Department into Wah Seong Corp Bhd's indirect wholly-owned unit, PPI Industries Sdn Bhd, has been concluded with no penalties imposed.

In a filing with Bursa Malaysia today, Wah Seong said PPI's bank accounts and assets that were temporarily frozen to facilitate investigation have been "unconditionally released" pursuant to a revocation order dated June 10 and a June 13 letter from Customs.

Wah Seong said the documents were received yesterday and that PPI's business operation has resumed to normal and is now ongoing as usual.