KUALA LUMPUR (June 30): Based on corporate announcements and news flow today, companies that may be in focus tomorrow (Friday, July 1) could include: Salcon, Tan Chong Motor Holdings, Hibiscus Petroleum, CCM, Muda Holdings, Yinson Holdings, MRCB-Quill REIT, MRCB, KKB Engineering, Insas and Southern Steel.
Salcon Bhd is buying a plot of freehold commercial plot in Australia, together with a carpark and a two-storey office building erected on it, for A$37.88 million (RM113.94 million) cash, to redevelop it into a high-rise residential development with an estimated gross development value of A$230 million (RM691.8 million).
The development will comprise 336 residential units with a retail podium space, according to a bourse filing today.
RAM Ratings has downgraded Tan Chong Motor Holdings Bhd’s long-term corporate credit rating and the group’s RM1.5 billion medium-term notes programme (2014/2034) rating to “A1/Stable”, from “AA2/Negative”.
The short-term corporate credit rating of the group and its RM1.5 billion commercial papers programme (2014/2021) have, meanwhile, been reaffirmed at “P1”.
RAM consumer and industrial ratings head Kevin Lim said the downgrade is premised on the fundamental weakening of Tam Chong’s financial profile, as a result of notable profit margin deterioration on the back of stiff competition and a challenging macroeconomic environment, which has left it susceptible to negative foreign exchange movements.
Hibiscus Petroleum Bhd said the valuation of its interest in Anasuria Cluster oil and gas field was at US$208 million, an uplift of 84% in valuation from the previous valuation of US$113 million.
In a statement, Hibiscus said according to a report issued by RPS Energy (2016 RPS Report), the valuation of the interest held by Hibiscus in the Anasuria Cluster as of March 1, 2016 is US$ 208 million (approximately RM851 million). This signifies an 84% uplift in valuation, when compared with the previous report also issued by RPS Energy dated September 2015, said the company.
The 2015 RPS report valued Hibiscus’s interest in the Anasuria Cluster at US$113 million.
Chemical Company of Malaysia Bhd (CCM) today announced the divestiture of its fertilizers operations in Sabah and Sarawak.
The group signed a RM48.55 million share sale agreement with Hextar Fertilizers Group Sdn Bhd to dispose its collective 100% equity interest in both CCM Agriculture Sdn Bhd and CCM Agriculture (Sabah) Sdn Bhd, and certain trademarks relating to the Cock's Head brand.
CCM also agreed to dispose of two parcels of land, together with buildings in Bintulu, Sarawak, to Hextar Synergy Sdn Bhd for RM35 million.
Muda Holdings Bhd expects its glazed paper machine worth RM34 million to begin operation by next month, after a one-year delay.
Its deputy managing director Datuk Lim Chiun Cheong said the delay was due to some technical difficulties which the company had to address.
He said the machine is to produce glazed paper for the export market. The expansion was in view of the rising demand for glazed paper, usually used to wrap and package food.
Yinson Holdings Bhd’s net profit jump 2.14 times or 114.16% to RM22.38 million in the first quarter ended April 2016, from RM10.45 million a year ago, as its gross profit margin improved, while fair value loss on derivatives declined.
Revenue, however, fell 17.62% to RM211.38 million, from RM256.6 million, largely because revenue from its discontinued operations for the period under review declined 39.1% due to lower sales volume.
MRCB-Quill Real Estate Investment Trust (MRCB-Quill REIT) is buying Menara Shell in KL Sentral from Malaysian Resources Corp Bhd (MRCB) for RM640 million.
This would raise MRCB-Quill REIT’s asset portfolio size to RM2.27 billion, from RM1.63 billion as at December 2015.
Menara Shell consists of a 33-storey office tower, a 5-storey podium, and a 4-storey basement car park with 915 parking bays and 110 motorcycle bays. The building has 557,053 square feet of net lettable area and a current occupancy of 99.9%.
KKB Engineering Bhd has clinched RM11.4 million worth of contracts, related to the supply of steel products.
In a filing with Bursa Malaysia, KKB said it has accepted a contract from Cityon Development Sdn Bhd (CDSB) for the supply of mild steel concrete lined pipe and specials for the proposed Bekalan Air Luar Bandar project in Sarawak.
KKB has also received a contract from Syarikat Sesco Bhd for the annual supply and delivery of steel products.
KKB said the completion date for the CDSB contract is scheduled within the first quarter of 2017 (1QFY17), while the Sesco contract is scheduled to be completed within the third quarter of 2017 (3QFY17).
Insas Bhd has teamed up with GreenTech Catalyst Sdn Bhd, a government-linked entity, to import electric vehicles into the country.
Insas and its 55% indirect subsidiary, PRAC Logistics Sdn Bhd, have entered into an agreement with GreenTech Catalyst to formalise the relationship and responsibilities for the collaboration.
Under the agreement, a new joint venture company will be tasked with importing the vehicles from overseas.
PRAC Logistics is engaged in the long term car lease, fleet management and limousine service, while GreenTech Catalyst is a subsidiary of the Malaysian Green Technology Corporation — an agency under the purview of the Ministry of Energy, Green Technology and Water.
Southern Steel Bhd (SSB) said it has resolved all issues relating to an industry-wide audit conducted by the Royal Malaysian Customs Department on its subsidiary, Southern Steel Pipe Sdn Bhd (SSP).
In a filing with Bursa Malaysia, SSB said the the department has returned all documents and financial records taken into custody. Consequently, SSB said the order to freeze its bank accounts has been lifted.