Companies in the news - Heng Huat, Compugates, Pestech, Wah Seong, Bison, Bumi Armada, Puncak Niaga, PUC Founder, and Ajiya

KUALA LUMPUR (July 22): Based on corporate announcements and newsflow today, stocks in focus on Monday (July 22) may include Heng Huat Resources Bhd, Compugates Holdings Bhd, Pestech International Bhd, Wah Seong Corp Bhd, Bison Consolidated Bhd, Bumi Armada Bhd, Puncak Niaga Holdings Bhd, PUC Founder (MSC) Bhd and Ajiya Bhd.

Heng Huat Resources Bhd has decided to withdraw its application to transfer its listing to the Main Market, due to the current economic environment.

In a filing with Bursa Malaysia, Heng Huat said it accepted the view of its principal adviser Kenanga Investment Bank Bhd that now was not the best time for it to go for the transfer. The company intends to relook the proposed transfer in future.

IT products distributor Compugates Holdings Bhd has suspended its logging plans in Papua New Guinea, in view of the current challenging market environment.

It had inked two memorandums of understanding (MoUs) earlier this year with land-owners to log some 96,000ha of forested area in the East Sepik Province of Papua New Guinea, logging projects which it has now decided not to pursue.

Small cap power systems technology firm Pestech International Bhd is slated to establish an operation centre for East Malaysia and Brunei, with the acquisition of a Sarawak company for RM4.5 million.

In a filing to Bursa Malausia, Pestech said its indirect wholly-owned subsidiary Fornix Sdn Bhd is buying Forward Metal Works Sdn Bhd from Multiclassic Sdn Bhd.

Forward owns a piece of leasehold land, measuring 5,260 square metres, on which a double-storey office cum warehouse is situated. The lease is valid until Sept 16, 2069.

Wah Seong Corp Bhd has received another job from Norwegian’s Statoil ASA that is related to the Johan Sverdrup Export Pipeline project (JoSEPP), with the contract valued at US$18.23 million, or RM73.87 million in the local currency.

In a filing, Wah Seong said Statoil Petroleum AS awarded the oil and gas-related pipeline services provider, a job to provide services of pipe-shipping and other related services for JoSEPP.

“The contract involves shipping of pipes to a port at west coast of Norway and subsequent offloading. The activity is expected to commence in the second quarter of 2017 and be completed by first quarter of 2018,” said Wah Seong in the filing.

Bison Consolidated Bhd said its recently-acquired 100%-owned subsidiary, Otaru Fine Food Sdn Bhd, has signed an agreement with Gemini Flour Mills (M) Sdn Bhd to acquire a piece of land in Rawang for RM6.75 million.

According to its statement to the exchange, the freehold vacant land will be used for Bison’s food processing centre, in line with the group’s expansion plans.

“The land acquisition, apart from the registration of the change of ownership with the land office, is expected to be completed within one month from the date of the agreement," it said.

Bumi Armada Bhd has formed a joint venture (JV) with Shapoorji Pallonji Oil and Gas Pte Ltd (SPOG) to combine the expertise of both companies to bid for works such as the design, fabrication and operations and maintenance of an floating production, storage and offloading (FPSO) vessel.

SPOG is a wholly-owned subsidiary of India conglomerate group Shapoorji Pallonji And Company Pte Ltd (SPCL). SPCL is wholly owned by Shapoorji Pallonji Mistry — also a non-independent non-executive director on the board of Bumi Armada, and Cyrus Pallonji Mistry.

Puncak Niaga Holdings Bhd has confirmed it is exiting the Chinese market, after a buyer was found to take up its entire stake in loss-making Luwei (Pingdingshan) Water Co Ltd. In a bourse filing, it named Lushan County Chengnan Water Co Ltd as the buyer.

Puncak Niaga had announced on July 13 that Luwei, a water treatment company, will be sold to a state-owned enterprise to be identified by the Lushan provisional government.

PUC Founder (MSC) Bhd has nixed its proposal to subscribe for three million Redeemable Convertible Preference Shares (RCPS) in Green Forever Energy Sdn Bhd (GFE) for RM3 million.

In a bourse filing, PUC said both parties agreed to terminate the term sheet effective today as GFE had failed to obtain the necessary approval from the Sustainable Energy Development Authority Malaysia for its Feed-in-Tariff (FiT) application in respect to the proposed 425 kilowatt (kW) photovoltaic power plant to be constructed and operated by GFE.

“Hence, the term sheet shall be deemed terminated and neither party shall have any claims whatsoever, directly or indirectly, against the other,” said PUC.

Metal roofing and safety glass specialist Ajiya Bhd saw its net profit for the second quarter ended May 31, 2016 (2QFY16) dive 84.1% to RM973,000 from RM6.13 million a year ago, on weaker market conditions, primarily in the construction sector, which affected demand for its products.

Its profit before tax for the quarter more than halved to RM7.92 million from RM16.99 million in 2QFY15, Ajiya's bourse filing today showed.

Revenue-wise, the Segamat-based company reported a 9.4% decrease to RM101.15 million, from RM111.67 million.

As for its cumulative six months ended May 31, 2016 (1HFY16), net profit came in at RM4.07 million, down 62.2%, from its 1HFY15 net profit of RM10.76 million.

Its half-year revenue also fell 10% lower to RM194.79 million, from RM216.54 million in 1HFY15.