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Singapore Investment


CLMT, F&N, UEM Edgenta, Duopharma, Hup Seng, Perstima, Kejuruteraan Asastera, EG Industries, Paragon Globe, Signature International, EcoFirst and Stella

KUALA LUMPUR (Nov 9): Here is a brief recap of some corporate announcements that made news on Wednesday (Nov 9) involving CapitaLand Malaysia Trust (CLMT), Fraser & Neave Holdings Bhd (F&N), UEM Edgenta Bhd, Duopharma Biotech Bhd, Hup Seng Industries Bhd, Perusahaan Sadur Timah Malaysia Bhd (Perstima), Kejuruteraan Asastera Bhd, EG Industries Bhd, Paragon Globe Bhd, Signature International Bhd, EcoFirst Consolidated Bhd and Stella Holdings Bhd.

CapitaLand Malaysia Trust is buying 91.8% of the total strata floor area of retail parcels in Penang's Queensbay Mall from parties related to CapitaLand Investment Ltd (CLI) for RM990.5 million in a related-party transaction. The acquisition sum represents a discount of about 1% to the independent valuation of RM1 billion commissioned by CLMT's trustee MTrustee Bhd. Taking into account the acquisition fees and expenses, the total acquisition cost is RM1.03 billion and will be funded by a combination of bank borrowings and proceeds from a private placement. The private placement entails the issuance of up to 1.04 billion new CLMT units to raise gross proceeds of up to RM495.25 million.  

Fraser & Neave Holdings Bhd aims to raise up to RM800 million in capital expenditure (capex) for the financial year ending Sept 30, 2023, with most of the funds earmarked for its dairy farm business, the food and beverage giant has completed the acquisition of agricultural land — Ladang Permai Sdn Bhd — in Gemas, Negeri Sembilan for RM215.59 million, and the group is on track to resume its plans for the upstream fresh milk business — for downstream production and distribution of fresh milk. This will enable the group to own vertical integration businesses and operations based on locally-grown crops for feed to F&N’s dairy farm, which in turn will lower the value chain cost per litre. The move will also help F&N to be less dependent on imported milk, and promote the local agriculture industry.

UEM Edgenta Bhd is selling its 51% stake in Faber Sindoori Management Services Pte Ltd for 700 million rupees (RM40 million) to Apollo Sindoori Hotels Ltd (ASHL). The group said its wholly-owned subsidiary Edgenta Facilities Sdn Bhd has entered into a share purchase agreement with ASHL, which holds the remaining 49% in Faber Sindoori, which is mainly involved in the provision of integrated facilities management services in India. The proceeds from the sale will be used for potential investments, including capital expenditure for growth opportunities.

Duopharma Biotech Bhd's third quarter net profit slipped 3.62% to RM16.35 million from RM16.96 million a year earlier, pressured by higher finance and operating costs. Revenue increased 3.05% to RM177.07 million from RM171.84 million. Its bottom line was pressed by finance costs rising 97.7% to RM3.7 million from RM1.87 million in 3QFY21, and operating costs climbing 10.26% to RM47.46 million from RM43.04 million. For the cumulative nine months ended Sept 30, 2022, Duopharma's net profit jumped 5.97% to RM52.95 million from RM49.97 million in the same period last year while revenue increased 10.33% to RM544.76 million from RM493.73 million.

Hup Seng Industries Bhd’s net profit for the third quarter ended Sept 30, 2022 dropped 6.05% to RM3.84 million from RM4.08 million in the same period last year, dragged down by higher raw material costs. Quarterly revenue, however, climbed 8.35% to RM70.19 million from RM64.79 million on improved contribution from both domestic and export markets. The group recommended an interim dividend of one sen per share. For the nine-month period, Hup Seng’s net profit fell 22.17% to RM13.64 million from RM17.53 million a year prior despite cumulative revenue growing 4.31% to RM223.26 million from RM214.03 million.

Perusahaan Sadur Timah Malaysia Bhd (Perstima) posted a net loss of RM1.03 million for its second quarter ended Sept 30, 2022 (2QFY23) compared to a net profit of RM10.94 million in the same period last year, due to unrealised exchange loss of RM26.9 million despite registering higher sales volume. The last time Perstima made losses was over two decades ago — back in 3QFY01 when it incurred a net loss of RM22.07 million. The group’s latest financial performance was also in stark contrast to its best ever quarterly net profit of RM31.18 million in the immediate preceding quarter (1QFY23). Top line wise, it climbed 62.6% to a record high of RM465.18 million from RM286.08 million in the same period a year ago driven by higher selling price coupled with higher sales volume.

Engineering and energy solutions provider Kejuruteraan Asastera Bhd (KAB) is expanding its sustainable energy solutions (SES) segment through the proposed acquisition of the entire equity of Future Biomass Gasification Sdn Bhd (FBG) for RM15 million. KAB said FBG, a wholly-owned subsidiary of Future NRG Sdn Bhd, owns a biogas power plant in Kedah with an installed capacity of 2.4 megawatt. KAB said it would benefit from long-term recurring income via FBG’s existing renewable energy power purchase agreement with Tenaga Nasional Bhd. The agreement, which is effective for 16 years until March 2034, enables FBG to supply power to the national grid.

Electronic manufacturing service provider EG Industries Bhd expects its RM180 million Smart Factory 4.0 in Batu Kawan, Penang, to potentially create more than 1,000 high-value jobs for the local community upon its commencement in 2024. EG Industries said that its first fully automated Lights-Out Smart Factory 4.0 will be situated on a six-acre piece of industrial land under its unit SMT Technologies Sdn Bhd. It said the lights-out methodology would create a completely networked environment that digitises material flows for autonomous manufacturing, controlled by a remote team of highly specialised experts to manage data, production planning and quality.

Paragon Globe Bhd has proposed to acquire a 42.29ha parcel of land in Johor Bahru for RM71.5 million, which is more than half of its market capitalisation of RM130.66 million. The land is for development of industrial properties with an estimated gross development value of up to RM626 million. The group will develop 171 units of industrial properties on the land over eight to 10 years from 2024.

Signature International Bhd’s co-founder Datuk Michael Chooi Yoey Sun has ceased to be a substantial shareholder of EcoFirst Consolidated Bhd. Chooi, who emerged as the property developer’s substantial shareholder in January this year, disposed of 10 million shares on the open market on Monday (Nov 7). This trimmed his stake in EcoFirst to 4.84% from 5.7%.

Stella Holdings Bhd has announced the resignation of its group chief executive officer Ng Jun Lip, and the appointment of major shareholder Datuk Lau Beng Sin as the new managing director. The group, which is involved in construction, property development, oil & gas support services and healthcare services, said Ng resigned to pursue his other personal interest. Lau's appointment as managing director took effect immediately.


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