KUALA LUMPUR (Feb 16): Based on corporate announcements and news flow today, companies that will be in focus on Friday (Feb 17) may include: Affin, Yong Tai, Destini, BAT, LTKM, Mega First, YFG, Taliworks, DRB-Hicom and Malakoff.
Affin Holdings Bhd plans to undertake a corporate reorganisation exercise that would see its wholly-owned subsidiary Affin Bank Bhd take over its listing status on the Main Market of the local stock exchange.
Under the corporate exercise, which is to position Affin Bank to spearhead the banking group’s future growth, Affin’s shares will be exchanged with the shares of Affin Bank on a one-to-one basis.
“There will be no change to the shareholding structure, where an existing shareholder of Affin will be ‘migrated’ to Affin Bank with the above,” said Affin in the statement.
The exercise will also see Affin transferring its wholly-owned subsidiaries Affin Hwang IB and Affin Moneybrokers Sdn Bhd, as well as its 51%-owned joint venture AXA Affin Life Insurance Bhd and 37.07%-owned associate AXA AFfin General Insurance Bhd, to Affin Bank.
Yong Tai Bhd intends to buy a 70% stake in Iconic Paragon Sdn Bhd to take part in a proposed development on two leasehold plots with a cumulative 1.08-acre size in Bukit Bintang, Kuala Lumpur.
However the purchase of the two plots of leasehold land by Iconic Paragon has yet to be completed.
Iconic Paragon, which is an investment holding and property development company, inked a sale and purchase agreement for the land with Datuk Bandar Kuala Lumpur in March 2015.
An announcement shall be made in due course as to the type of development to be carried out on the land, Yong Tai said in a statement.
Both parties have jointly agreed to negotiate the terms and conditions of the share subscription agreement and are expected to finalise it within three months from today.
Destini Bhd has bought a military helicopter supply company today, enabling it to get a share of a RM321.9 million contract between the company and Malaysian Ministry of Defence (MinDef).
Destini said its wholly-owned subsidiary Destini Prima Sdn Bhd acquired a 70% stake in defence equipment manufacturer, Halaman Optima Sdn Bhd for RM5.5 million.
In November 2016, Halaman Optima inked a supply contract with the Malaysian government for the procurement of six Multipurpose Armed Reconnaissance Model MD530G worth RM321.9 million for the Armed Forces.
British American Tobacco (Malaysia) Bhd (BAT Malaysia) posted a 52.2% increase in net profit for the fourth quarter ended Dec 31, 2016 (4QFY16) to RM299.12 million or RM1.013 per share, from RM196.12 million or 68.1 sen per share a year ago, due to a restructuring income of RM131.92 million.
Revenue was down 20.55% to RM840.61 million in 3QFY16, from RM1.06 billion in 4QFY15.
The cigarette maker declared a fourth interim dividend of 77 sen per share and a special dividend of 46 sen per share amounting to RM351.2 million, payable on March 23.
For the full year (FY16), its net profit was 19.84% lower at RM732.07 million or RM2.526 per share, versus RM913.31 million or RM3.187 per share during the previous year (FY15). Its revenue for the period fell 18.01% to RM3.76 billion, from RM4.58 billion a year ago.
Meanwhile, it said its contract manufacturing business also declined by 46.2% versus the same period of last year (cigarettes and non-cigarettes), which was due to the winding down of the Group’s factory operations in Malaysia, which will be carried out in stages.
The Inland Revenue Board has commenced civil proceedings against a subsidiary of Mega First Corp Bhd for RM26.33 million in tax debt.
The subsidiary, Idaman Harmoni Sdn Bhd, said last September it had been served with a notice of assessment for conducting a transaction involving residential property PJ8, which according to the board is subject to tax.
The transaction was treated by Idaman Harmoni as a capital transaction that is liable to real property gains tax in year 2004, said Mega First.
It added that Idaman Harmoni is a property investment company and has not disposed of any of its PJ8 properties since completion.
YFG Bhd has bagged a RM245 million contract for sub-contract works involving construction of 1Malaysia People's Housing Programme (PR1MA) houses in Pedas, Rembau, Negeri Sembilan.
YFG said it has received a letter of award from Wearegold Sdn Bhd for the project.
"The project involves the building and infrastructure works of the proposed development of 1,572 units of PR1MA homes," it added.
YFG said the project is expected to commence on a date to be notified in writing by Wearegold and to be completed within 24 months.
Taliworks Corp Bhd’s net profit fell 38% to RM32.01 million in its fourth quarter ended Dec 31, 2016 (4QFY16), from RM51.22 million in the same quarter last year, largely on the absence of exceptional gain from a stake disposal.
It said it had in 4QFY15, recognised a disposal gain of RM59.55 million from the 50% stake sale in Pinggiran Muhibbah — now a joint-venture company.
The quarter under review also recorded higher provisioning for discounting on a deferred payment consideration of RM17.1 million, versus RM6.7 million last year.
If the above effects were excluded, Taliworks said its profit after tax would be about RM54.6 million, compared with RM11 million previously.
Meanwhile quarterly revenue came in 7% lower at RM69.01 million, compared with RM74.09 million previously, on lower contribution across all its business segments, i.e. construction, water treatment, supply and distribution, water management and toll operations.
The group proposed a fourth interim dividend of two sen per share for the quarter, bringing its full-year payout to eight sen, the same as FY15.
For its full year, Taliworks made a net profit of RM127.48 million, up 47% from FY15’s RM86.54 million. Revenue, however, was only up 4.4% to RM304.86 million from RM291.99 million, mainly due to the provision for discounting impact, without which it would have come in at RM367.2 million versus RM333.1 million.
DRB-Hicom Bhd has withdrawn from the consortium formed to develop a large-scale solar photovoltaic plant in Tanjung Malim, Perak. The other member of the consortium is Malakoff Corp Bhd.
The two consortium members were unable to reach mutual agreement on certain terms and conditions of the joint venture, DRB-Hicom said in a filing with Bursa Malaysia.
Malakoff held a 51% stake in the consortium while DRB-Hicom controlled the remaining 49% through its wholly-owned unit, DRB-Hicom Environmental Services Sdn Bhd (DHES).
DHES is wholly-owned by Alam Flora Sdn Bhd, which in turn is a 97.37%-owned subsidiary of Hicom Holdings Bhd, a wholly-owned subsidiary of DRB-Hicom.
The consortium received a letter of acceptance from the Energy Commission (EC) in December 2016 to build the 50MW plant on a 200-acre (80.94ha) plot of land, following a bidding exercise.
Commercial operation was scheduled to start in July 2018 for a term of 21 years.
In a separate filing with the bourse, Malakoff said with DHES’ withdrawal, it will undertake 100% equity interest in the project.
http://www.theedgemarkets.com/my/article/affin-yong-tai-destini-bat-mega-first-yfg-taliworks-drb-hicom-and-malakoff
