MBSB, Pestech, MyNews, Ajinomoto, Power Root, EA Technique, Handal Energy, TNB, Cahya Mata Sarawak, Bahvest, Computer Forms, Pos Malaysia and Fajarbaru Builder

MBSB, Pestech, MyNews, Ajinomoto, Power Root, EA Technique, Handal Energy, TNB, Cahya Mata Sarawak, Bahvest, Computer Forms, Pos Malaysia and Fajarbaru Builder

MBSB, Pestech, MyNews, Ajinomoto, Power Root, EA Technique, Handal Energy, TNB, Cahya Mata Sarawak, Bahvest, Computer Forms, Pos Malaysia and Fajarbaru Builder

KUALA LUMPUR (June 27): Here is a brief recap of some corporate announcements that made the news on Tuesday (June 27) involving Malaysia Building Society Bhd (MBSB), Pestech International Bhd, MyNews Holdings Bhd, Ajinomoto (Malaysia) Bhd, Power Root Bhd, EA Technique (M) Bhd, Handal Energy Bhd, Tenaga Nasional Bhd (TNB), Cahya Mata Sarawak Bhd (CMS), Bahvest Resources Bhd, Computer Forms (Malaysia) Bhd, Pos Malaysia Bhd and Fajarbaru Builder Group Bhd.

Malaysia Building Society Bhd (MBSB) is aiming to deliver a high return on equity (ROE) of 6.0%-6.5% this year, up from 5.2% in 2022, even as the Islamic commercial bank faces margin pressure arising from increasing cost of funds. Apart from rolling out in-house initiatives to cushion the margin pressure, chief financial officer Ramanathan Rajoo said MBSB will also try to focus on increasing its current account saving account (Casa), which typically carries minimal-to-zero cost of funds. Ramanathan said the targeted 6.0%-6.5% ROE for this year does not include operations from Malaysian Industrial Development Finance (MIDF).

Pestech International Bhd said it has been terminated as the sub-contractor for the Gemas-Johor Baru electrified double-track project, by Syarikat Pembenaan Yeoh Tiong Lay Sdn Bhd (SPYTL). Pestech said its unit Pestech Technology Sdn Bhd (PTech) received the notice of termination for default on May 10 from SPYTL, who took it off the project for “purported and baseless allegations of insolvency event, repudiation by sub-contractor and breach of representations, warranties or undertakings”. The project, with a fixed sub-contract price of RM339 million, was awarded in October 2018 to an unincorporated consortium formed between PTech and Ansaldo STS Malaysia Sdn Bhd. Under the consortium, the total sub-contract price for PTech’s portion of works is RM75 million.

MyNews Holdings Bhd has proposed a placement to raise RM29.33 million, with 78% of the proceeds to be used to fund working capital. The loss-making convenience retail chain store said the proposed placement would involve an issuance of up to 68.2 million new shares — representing not more than 10% of the total number of issued shares — to third-party investors to be identified and at an issue price to be determined later. Out of the RM29.33 million, RM22.88 million will be allocated for working capital, as the group plans to open up 48 convenience stores in Malaysia within the next 12 months.

Ajinomoto (Malaysia) Bhd announced its first and final dividend of 9.1 sen per share for the financial year ended March 31, 2023 (FY2023), to be paid on Sept 25. The dividend’s ex-date fell on Aug 29 and the entitlement date is on Aug 30. It also announced the appointment of Riichiro Osawa as managing director/chief executive officer, effective July 1. This comes after its previous managing director Tomoharu Abe was reassigned to another post by Ajinomoto Co Inc, Japan.

Power Root Bhd is buying 116 parcels of freehold residential land, totalling about 771,949 sq ft in Johor Baru, Johor, for RM25 million in cash. It expects the purchase to expand its revenue base and give better generation of potential returns. Power Root, through its wholly owned subsidiary Alicafe Sdn Bhd (ASB), signed a sale and purchase agreement with GreatEarth Development (Molek) Sdn Bhd.

Oil tankers and port marine services provider EA Technique (M) Bhd is initiating arbitration proceedings against Petronas Carigali Sdn Bhd’s wholly owned unit Vestigo Petroleum Sdn Bhd (VPSB), with claims including special and general damages, costs and interest. The arbitration is related to a dispute arising out of a contract for the lease of the FSU Nautica Muar vessel dated April 11, 2017.

Besides that, EA Technique announced the disposal of Nautica Muar for US$6.045 million, or RM27.89 million, to Portland Vessels Ltd, a British Virgin Islands (BVI) incorporated company wholly owned by another BVI entity called Columbia Seas Ltd, which in turn is owned by Ferdous Rahman. The Practice Note 17 (PN17) company also proposed to dispose of another floating storage offloading vessel called Nautica Tembikai for at least US$6.05 million, or RM27.92 million, hoping to find a suitor to enter a memorandum of agreement within six months, once it gets shareholders’ approval.

Handal Energy Bhd has proposed to diversify its principal activities into two new business segments to further expand its revenue stream and earnings base. The proposed new segments are telecommunications network infrastructure solutions and marine sand businesses. The board expects the new business segments to contribute 25% or more to the group’s net profit.

Tenaga Nasional Bhd (TNB) and Electricite du Lao (EDL) have signed a memorandum of understanding (MOU) to explore the potential of hydropower in Laos, which is expected to generate returns of RM460 million to RM2.3 billion a year for TNB, beginning 2025. It also has the potential to increase cross-border electricity trade in Asean and assist Laos to become the “Battery of Asia”.

Cahya Mata Sarawak Bhd (CMS)’s unit Cahya Mata Phosphates Industries Sdn Bhd (Phosphates) has filed an appeal at the Court of Appeal to stop state utilities firm Syarikat Sesco Bhd (Secso) from cutting off the supply of electricity to its phosphate production plant. CMS said this follows the dismissal by the Kuching High Court of Phosphates’ application for an interim injunction on June 16.

Bahvest Resources Bhd claims that the recent damage to its plant site was believed to be an act of sabotage. It filed a police report on June 26, after several men entered the site on the morning of June 22 and broke the bund wall of its water reservoir using an excavator machine, causing water to gush into the site and disrupted operations. The company said it is currently exploring all available options to resolve the issue and resume its gold mining operations.

Printing and packaging services provider Computer Forms (Malaysia) Bhd announced that its executive director Datuk Justin Lim Hwa Tat has quit the company due to “differences of opinion with the management”. Lim, 47, was appointed executive director last August. He is currently an executive director of SMTrack Bhd.

Pos Malaysia Bhd continues to be cautiously optimistic that it will deliver improved results for the financial year ending Dec 31, 2023 (FY2023), after halving its losses in FY2022 and reporting an improved performance in the first quarter of this year. Group chief executive officer Charles Brewer said the group has made solid progress in its transformational initiatives and return to profitability despite significant headwinds, with almost all business segments registering profitability except for the parcel and retail segments.

Fajarbaru Builder Group Bhd has signed a memorandum of understanding (MOU) with the Penang Development Corp (PDC) to develop a medical city and mixed development hub in Bandar Cassia, Batu Kawan. Fajarbaru’s group chief executive officer Datuk Seri Eric Kuan Khian Leng said the proposed development is on approximately 93 hectares of land, and the project has been tentatively named Medi-City Bandar Cassia.

https://theedgemalaysia.com/node/672817