KUALA LUMPUR (June 24): Based on corporate announcements and news flow today, stocks in focus on Thursday (June 25) may include: Magna Prima Bhd, Yinson Holdings Bhd, Gamuda Bhd, Tenaga Nasional Bhd (TNB), Cuscapi Bhd, Axiata Group Bhd, AirAsia Group Bhd, Kanger International Bhd, Malaysia Smelting Corporation Bhd (MSC), Khee San Bhd and ARB Bhd.
Magna Prima Bhd has defaulted on a term loan facility from Alliance Bank, amounting to RM37.79 million in principal and accrued interest payments as at June 17. The default arose after the group failed to pay the instalment payments since March. The property developer said it encountered difficulties to make payments largely due to a delay in project implementation for a 20-acre land in Section 15, Shah Alam.
Yinson Holdings Bhd’s net profit fell 6.3% to RM46.72 million for 1QFY21, from RM49.85 million a year earlier, mainly due to higher depreciation and amortisation charges. Quarterly revenue rose 64.5% to RM343.75 million from RM209 million a year ago, supported by the group’s offshore and marine segment. Looking ahead, the group said the long-term outlook for the oil and gas industry remains challenging, noting the emergence of new alternative energy sources and lower financial institutions' risk appetite towards the sector.
Gamuda Bhd posted a lower net profit of RM40.23 million for 3QFY20, down 77.14% from RM175.99 million a year earlier, as its Malaysian operations were affected by the movement control order (MCO) imposed during the final six weeks of the quarter. It said the MCO, imposed on March 18, caused work stoppages and reduced traffic volume across its four expressways, as a result of which the group recorded its lowest quarterly revenue since 1QFY17.
For 9MFY21, the group’s earnings were down 25.36% to RM389.02 million from RM521.17 million a year earlier, as revenue fell 10.74% to RM2.74 billion from RM3.07 billion previously. On prospects, Gamuda pointed to the Covid-19 uncertainties and low oil prices as potential headwinds, with the latter expected to weigh on the government’s plans for infrastructure development.
Tenaga Nasional Bhd (TNB) today inked three large-scale solar (LSS) Photovoltaic Power Purchase Agreements with three special purpose companies (SPCs) to build transmission connected LSS projects, which have a total capacity of 290.88 megawatts of alternating current. The new agreements are in relation to the LSS Phase 3 (LSS3) competitive bidding exercise organised by the Energy Commission in the first quarter of 2019 to develop, among others, the transmission connected LSS projects. The three SPCs are Cypark Suria Merchang Sdn Bhd, Solarpack Suria Sungai Petani Sdn Bhd, and LSS3 Pekan Sdn Bhd.
Cuscapi Bhd has embarked on a new online management suite project for food and beverage (F&B) companies. The group said it had entered into a strategic agreement with lifestyle app Presto and delivery platform Hungry to develop a fully integrated and digitalised cloud-powered F&B management suite, Custory, which is designed to help F&B operators manage items such as order-to-delivery cycle. This new platform is composed of food ordering, cashless payments and delivery — each of which is a speciality of Cuscapi, Presto and Hungry respectively.
Axiata Group Bhd, along with two other firms, have been shortlisted to bid for Myanmar telecoms tower company Irrawaddy Green Towers (IGT). The other two shortlisted bidders to acquire IGT are China's Guodong Group and global private equity firm CVC Capital Partners, reported The Asset, citing Myanmar newspapers. The portal said reports estimated that IGT could be worth US$800 million (RM3.42 billion) and a preferred bidder was expected to be announced next month.
AirAsia Group Bhd registered its highest post-hibernation sale day yesterday, with 41,000 seats sold across the group in a single day, signifying a strong rebound in demand for air travel, said the budget airline. The group said its load factor averaged around 50% with AirAsia Malaysia hitting 70%, its highest load factor post-hibernation yesterday. AirAsia’s website is also experiencing traffic growth of 170%. AirAsia plans to increase its flight frequencies to around 50% of the group’s pre-Covid-19 operations and resume all domestic routes in the coming weeks and months to cater to the increasing demand.
Kanger International Bhd is set to promote the export of river sand and other minerals from Malaysia to mainland China and Hong Kong. This follows the group’s appointment as an authorised representative by Legasi Lestari Sdn Bhd, one of 11 companies in Malaysia that hold registered approved permits (AP) to export river sand and other minerals to Brunei, mainland China, Hong Kong, Taiwan, South Korea, Vietnam, India, Japan and the Maldives. The AP is issued by the Ministry of Energy and Natural Resources and is valid until July 2027.
Lower tin prices and lower sales dragged Malaysia Smelting Corporation Bhd (MSC) into the red with a net loss of RM13.19 million for 1QFY20, compared with a net profit of RM8.6 million a year ago. Quarterly revenue fell 33% to RM205.31 million versus RM307.45 million previously. The group’s performance was dragged by both the tin smelting and mining segments, which were impacted by the global trade disruptions due to the Covid-19 pandemic. MSC said it expects the business landscape to remain challenging for the second half of 2020.
Khee San Bhd is being sued by Alliance Bank for defaulting on a RM4.7 million loan. The candy manufacturer said the parties appeared before the High Court yesterday for the case management via e-review, and the court gave direction for Khee San to enter its defence by July 14, and for the bank to file a reply to the statement of defence by Aug 4. The next case management has been set for Aug 18, Khee San said in a filing with Bursa Malaysia. Giving its reasons for the loan default, Khee San said it had intended to restructure the facilities through its previously announced corporate exercise encompassing a subscription issue and right issue.
ARB Bhd is disposing of its remaining 51% interest in loss-making timber business Aturmaju (Sabah) Holding Sdn Bhd (AHSB) for RM5.6 million. The group, which has transformed itself into an IT software and platform provider, said it has entered into an agreement with AY Brothers Sdn Bhd for the disposal. ARB had earlier disposed a 49% stake in AHSB to AY Brothers in August 2019. The disposal is in line with its strategic plan to transform its business position from the timber sector to the IT sector, ARB said. Primarily involved in the manufacturing of wood products then, AHSB’s operations have been incurring losses over the past few years, which resulted in the cessation of its operations since the second quarter of 2018, the group said.