AFG, Ekovest, Genting, Hai-O, Glomac, Damansara Realty, Bintai Kinden and MAHB

 KUALA LUMPUR (Sept 21): Based on corporate announcements and news flow today, companies that will be in focus on Thursday (Sept 22) may include: AFG, Ekovest, Genting, Hai-O, Glomac, Damansara Realty, Bintai Kinden and MAHB.

Alliance Financial Group Bhd (AFG) has proposed a corporate reorganisation exercise, which will see its banking unit, wholly-owned core subsidiary Alliance Bank Malaysia Bhd, assume the group's listing status upon completion of the exercise.

Under the corporate exercise, existing AFG shareholders will exchange their shares for Alliance Bank's shares on a one-for-one basis. Their number of shares, and percentage of shareholding, in AFG will be the same in Alliance Bank.

"This enables the existing shareholders of AFG to have direct participation in the equity and future growth of Alliance Bank," the banking group said in a bourse filing.

The Employees Provident Fund (EPF) is acquiring a 40% stake in the concessionaire of the Duta-Ulu Klang Expressway (DUKE) for RM1.13 billion, from Ekovest Bhd.

Ekovest's wholly-owned subsidiary Nuzen Corporation Sdn Bhd has entered into a binding term sheet with EPF to dispose of the stake in Konsortium Lebuhraya Utara-Timur (KL) Sdn Bhd (Kesturi).

On completion of the disposal, EPF will pay RM921 million to Nuzen, in cash, with another RM60 million to be paid upon the issuance of the certificate of practical completion for DUKE Phase 2.

A further sum of RM149 million in cash will be paid by EPF, subject to Nuzen's fulfilment of the post-completion conditions, as stipulated in an agreement between both parties.

The disposal is conditional upon the approval of Ekovest's shareholders, consent from the government under the relevant concession agreement entered into by Kesturi, consent from holders of the existing senior sukuk issued by Kesturi, and EPF being satisfied with the outcome of a due diligence exercise to be carried out on Kesturi.

Moody's Investors Service has affirmed the Baa1 issuer rating of Genting Bhd, with a "stable" outlook, to reflect the company's healthy financial profile.

"(This is) backed by its stable cash flow generation and excellent consolidated liquidity position with sizable holdings of cash-on-hand as well as a well-managed debt maturity profile," said Moody's vice president and senior analyst Jacintha Poh in a statement today.

"Genting's financial metrics can accommodate its stated growth plans including ongoing re-development of Resorts World Genting and construction of Resorts World Las Vegas, over the next 12 to 18 months," added Poh.

Moody's expects Genting's capital expenditure (capex) to rise significantly to around RM8 billion per year in 2016 and 2017, from RM4.4 billion last year.

The rating agency said given that a significant portion of Genting's cash is held under 53%-owned Singapore-listed Genting Singapore Plc, the additional capex is expected to be largely funded by debt.

"Hence, the group's leverage, as measured by adjusted debt to earnings before interest depreciation and amortisation (ebitda), will remain around 4 times over the next 12–18 months," it said.

Its adjusted retained cash flows to debt, meanwhile, is expected to weaken to around 15%, from around 18% in the 12 months to June 30, 2016.

Hai-O Enterprise Bhd's first quarter net profit rose 46.9% to RM9.74 million, from RM6.63 million a year earlier, mainly contributed by its multi-level marketing and wholesale divisions.

Revenue for the quarter ended July 31, 2016 (1QFY17) strengthened 42% to RM78.66 million from RM55.38 million, the group said in a filing to Bursa Malaysia today.

Moving forward, Hai-O said consumers will continue to stay cautious in their spending amid the prolonged weak economy and uncertainties around the region, but remained optimistic it would continue to be profitable in the next quarter.

Glomac Bhd's net profit surged by 306% to RM85.54 million for the first quarter ended July 31, 2016 (1QFY17), from RM21.07 million last year, boosted by proceeds from a land disposal.

Revenue for the quarter doubled to RM251.42 million, from RM122.99 million a year earlier.

The property developer said its performance for the quarter was boosted by the RM145.6 million disposal of land to Perbadanan PR1MA Malaysia, while development progress for key ongoing projects, such as Saujana KLIA, Lakeside Residences, Glomac Centro and Reflection Residences, had also contributed to its profitability.

The group is planning over RM1 billion worth of launches for the financial year ending April 30, 2017 (FY17), with a majority of projects to be within the landed residential and affordable segments.

Going forward, conditions are expected to remain challenging in the local property market, amid the tighter lending environment.

Damansara Realty Bhd has aborted its plan to form a joint venture company to take part in future business operations involving the handling and logistics of oil and gas downstream products in Pengerang Integrated Petroleum Complex.

The property developer told Bursa Malaysia today that it had received a notice from Tokyo-based Sumitomo Warehouse Co Ltd to mutually discontinue the memorandum of understanding inked between the two parties on Sept 15 last year, as there was no significant progress since it was signed.

Bintai Kinden Corp Bhd has bagged a subcontract job in relation to the supply and installation of air conditioning and mechanical ventilation (ACMV), as well as engineered control smoke systems works at Tuas Avenue 1 in Singapore, for S$15.8 million (RM48.15 million).

The subcontract, a non-renewable construction deal estimated to be completed by September 2017, is for the proposed project involving five blocks of industrial factory, a workers dormitory, and a parking facility at Tuas Avenue 1.

The job was secured via its 69.82% subsidiary, Bintai Kindenko Pte Ltd. It also includes testing, commissioning and maintenance of the ACMV and smoke system works.

Malaysia Airports Holdings Bhd (MAHB) has, together with its wholly-owned unit Malaysia Airports Sepang Sdn Bhd (MA Sepang), received a notice from Express Rail Link Sdn Bhd (ERL) to indemnify the latter against a RM5.41 million claim by Segi Astana Sdn Bhd.

ERL holds the concession to operate the high speed rail line from KL Sentral to the Kuala Lumpur International Airport (KLIA) and the low cost carrier terminal, klia2, in Sepang.

Segi Astana, a joint-venture company between WCT Holdings Bhd and MAHB, is the developer of the gateway @ klia2 shopping mall, located near KLIA's main terminal.

In a bourse filing, MAHB said the third party notice, dated Sept 9, to indemnify ERL for the said sum, was received today.

It was also asked to indemnify ERL from further and continuing damages from Sept 9, the date of the notice, "until the date of vacant possession of premises, or until such date as deemed appropriate by court" for all losses and damages in relation to a civil suit.

It said it, together with MA Sepang, had instructed their solicitors to represent both the company and MA Sepang in the legal action.

However, its filing did not detail what the dispute was about, nor what the "premises" referred to.