Companies in the news - AirAsia, Puncak Niaga, Berjaya Assets, Zhulian, TH Heavy, Kuantan Flour Mills and Edaran

KUALA LUMPUR (July 13): Based on corporate announcements and news flow today, companies that may be in focus on Thursday (July 14) could include: AirAsia, Puncak Niaga, Berjaya Assets, Zhulian, TH Heavy, Kuantan Flour Mills and Edaran.

AirAsia Bhd today announced that it has ordered 200 additional CFM LEAP-1A engines to power the 100 new Airbus A321neos it is buying.

In a statement, AirAsia said the order, which expands its LEAP engine fleet to nearly 730 engines, is valued at US$2.7 billion (RM10.65 billion) at list price.

Puncak Niaga Holdings Bhd is selling its loss-making water treatment company in China, Luwei (Pingdingshan) Water Co Ltd, to a Chinese state-owned enterprise (SOE) as it makes its exit from China.

It said in a bourse filing the proposed disposal will allow the group to limit its losses arising from its investment in Luwei.

Its 98.65%-owned subsidiary Sino Water Pte Ltd and Environmental Holding Pte Ltd (EHPL) have signed a framework agreement with the Lushan County People's Government to dispose of Luwei to a SOE to be identified by the Lushan government.

As at the date of execution of the agreement, the identity of the purchaser has yet to be confirmed by the Lushan government.

Luwei is a company involved in the treatment and distribution of water and water-related services. Sino Water holds 93.81% equity interest in Luwei and EHPL the remaining 6.19%.

Berjaya Assets Bhd (BAssets)'s unit, Berjaya Waterfront Sdn Bhd, has inked a memorandum of understanding (MoU) with Foshan City Bureau of Commerce (FCBC) to establish a strategic collaboration partnership to foster trade and investment activities from Foshan City to the South East Asia Duty Free Trade City project at Berjaya Waterfront in Johor Bahru, Johor.

Under the MoU, BAssets said both parties will establish a framework for collaboration with progressive discussions, exchange of information, and development and investment updates for the relevant commercial initiatives.

FCBC, meanwhile, will organise trade visits to South East Asia Duty Free Trade City project, to explore and conduct trading and investment activities with the intention of promoting this project as a strategic initiative for Foshan City investors in Malaysia.

Multi-level marketing company Zhulian Corp Bhd's net profit fell 28.4% to RM7.9 million or 1.73 sen per share for the second quarter ended May 31, 2016 (2QFY16), from RM11.1 million or 2.41 sen per share a year ago, due to a drop in revenue and share of profit from its associate.

The group announced a second interim single-tier dividend of 1.5 sen per share, payable on Sept 9. The ex-date is Aug 10.

Revenue came in 14.56% lower at RM47.2 million compared with RM55.27 million in 2QFY15 mainly due to a drop in both local and Indonesia market demands.

For the six months ended May 31, 2016 (1HFY16), Zhulian said net profit fell 36.5% to RM15 million or 3.27 sen per share, from RM23.7 million or 5.14 sen per share a year ago.

Revenue dropped 13.6% to RM95.4 million compared with RM110.5 million in 1HFY15.

TH Heavy Engineering Bhd (THHE), whose share price has tumbled near 32% since it was slapped with two winding-up petitions from its creditors in relation to the supply of equipment and work done at its floating production, storage and offloading (FPSO) Layang project, assures that it remains focused on completing the project.

In a statement, THHE, which is 29.81%-owned by pilgrim fund Lembaga Tabung Haji, said it is working closely with the relevant stakeholders to ensure the completion and delivery of the project despite having been served with the winding-up petitions.

"At this juncture, THHE is still operational and has sought legal advice with a view to striking out/defeating the winding up petitions. Therefore, it is premature to speculate on the outcome of these initiatives as claimed by certain quarters in the social media," it said.

THHE's statement came after it told the local exchange on July 5 the company has been slapped with two winding-up petitions from its creditors for a collective sum of US$8.88 million (RM35.6 million) in relation to the supply of equipment and work done at the FPSO Layang project.

Kuantan Flour Mills Bhd (KFM)'s executive director cum chief executive officer Lee Chee Kiean has resigned today due to health reasons.

Following his resignation, the business operations of the group will be managed by the group's chairman with the support of the chief financial officer and other management personnel, in consultation with other board members, said the Practice Note 17 company in a bourse filing.

Lee, 53, joined KFM in 1986 as a marketing executive and has held various managerial positions in the group since, according to a separate filing with Bursa.

Edaran Bhd's wholly-owned subsidiary, Edaran IT Services Sdn Bhd, has been awarded a tender to supply a weather prediction system worth RM44.62 million by the Ministry of Science, Technology and Innovation (MOSTI).

In a bourse filing, Edaran said the High Performance Computing and Active Archive System will be used for numerical weather prediction for the Malaysian Meteorological Department.

Proceeds from the contract shall contribute towards the earnings of Edaran group for the financial year ending June 30, 2017. Earnings per share is estimated to increase by 7.7 sen, according to Edaran.