Paramount Corp, Boustead, Bintai Kinden, Leong Hup, GIIB, VS Industry, APB, F&N, Capital A, Zelan, Seremban Engineering, Betamek, UMW, Resintech and Sime Darby Plantation

Paramount Corp, Boustead, Bintai Kinden, Leong Hup, GIIB, VS Industry, APB, F&N, Capital A, Zelan, Seremban Engineering, Betamek, UMW, Resintech and Sime Darby Plantation

KUALA LUMPUR (June 15): Here is a brief recap of some corporate announcements that made the news on Thursday (June 15) involving Paramount Corp Bhd, Boustead Holdings Bhd, Bintai Kinden Corp Bhd, Leong Hup International Bhd, GIIB Holdings Bhd, VS Industry Bhd, APB Resources Bhd, Fraser & Neave Holdings Bhd, Capital A Bhd, Zelan Bhd, Seremban Engineering Bhd, Betamek Bhd, UMW Holdings Bhd, Resintech Bhd and Sime Darby Plantation Bhd.

Paramount Corp Bhd has set a sales target of RM1.2 billion for the financial year ending Dec 31, 2023 (FY2023), representing about a 10% increase against the RM1.1 billion sales achieved in FY2022. Speaking at a press conference after the group's annual general meeting, group chief executive director and executive director Jeffrey Chew Sun Teong said the 10% targeted sales growth is “conservative”, considering weaker market sentiment this year compared with last year amid concerns over high inflation and economic prospects.

Boustead Holdings Bhd on Thursday (June 15) clarified that it has not held any material discussion on divesting petrol station operator Boustead Petroleum Marketing Sdn Bhd (BHPetrol). The statement was issued after Bloomberg reported earlier in the day that Boustead was considering selling BHPetrol for as much as RM2 billion. Citing unnamed people with knowledge of the matter, the report said oil and gas companies as well as investment firms have shown interest in the deal. Boustead said it is currently fully focused on the group-wide reset following the completion of the group's takeover by its main shareholder Armed Forces Fund (LTAT), following which the group will be delisted.

Practice Note 17 (PN17) group Bintai Kinden Corp Bhd has ceased to be a substantial shareholder of Genomics Resource Centre Bhd (MGRC). The mechanical and electrical engineering services provider had disposed of 1.82 million shares in MGRC on Tuesday, trimming its stake in MGRC to 3.56% from 5.19% as of July last year. Bintai Kinden emerged as a substantial shareholder of MGRC in February 2022 after acquiring a 5.03% stake to diversify its business into the healthcare sector.

Non-independent executive director of Leong Hup International Bhd Tan Sri Lau Eng Guang has acquired 50.05 million shares in the poultry producer for RM22.52 million. On Monday (June 12), Lau, who is also the executive chairman of Comfort Gloves Bhd, bought two blocks of shares — the first of 30 million shares and the second of 20.05 million shares — for 45 sen apiece. This raised his direct stake in Leong Hup to 2.803% from 1.431% as of end-March. He also holds a 0.313% indirect stake in the group. Lau joined the board of Leong Hup International as a director in July 2014. He is the brother of Lau Chia Nguang and Tan Sri Lau Tuang Nguang and the uncle to Datuk Lau Joo Hong, Lau Joo Han and Lau Joo Keat who are the directors and major shareholders of the group.

Rubber compound manufacturer GIIB Holdings Bhd executive chairman and chief executive officer Tai Boon Wee has ceased to be a substantial shareholder of the company after he transferred 45.81 million, representing a 7.748% stake, of his shares to his son, Tai Qisheng — who is the executive director of the company — via an off-market transaction on Tuesday (June 13). Following the transfer, Qisheng, 36, now holds 67.69 million shares, or an 11.45% direct stake, in GIIB. Boon Wee, meanwhile, is left with 9.6 million shares or a 1.62% equity interest.

VS Industry Bhd's net profit fell 47.8% to RM26.8 million for its third quarter ended April 30, 2023, from RM51.3 million a year earlier due to higher electricity, labour and financing costs, as well as net foreign exchange loss. Quarterly revenue for the period, however, rose 7.5% to RM996.8 million, compared to RM927.6 million a year ago, driven by higher sales orders from key customers. The group has declared a third interim dividend of 0.4 sen per share, which will be paid on July 28.

APB Resources Bhd announced more boardroom changes on Thursday (June 15), including the appointment of three new independent and non-executive directors: Kee Wui Hong, Dang Nguk Ling and Tan Teik Hsiung. Just a day earlier, the group had announced the appointment of Kang Wei Lun as a new independent and non-executive director. Kang, Kee and Tan are also independent and non-executive directors of Artroniq Bhd. Also on Thursday, APB announced the retirement of the Yap brothers — non-independent and non-executive alternate director Datuk Yap Kau @ Yap Yeow Ho and on-independent and non-executive chairman Yap Kow @ Yap Kim Fah. Yap Kow is the father of APB Resources executive director Yap Swee Sang.

Fraser & Neave Holdings Bhd (F&N) is venturing into the upstream fresh milk business, following the ground-breaking ceremony of the group’s integrated dairy farm in Gemas, Negeri Sembilan, with an investment of at least RM1 billion for the development of Phase 1 of the farm. The farm is expected to put the group on track to becoming one of Malaysia's largest milk producers, when Phase 1 reaches full production of 100 million litres of fresh milk. The project, which will be developed in phases, is expected to be fully completed by 2027 and create 500 jobs as well as provide agro business opportunities for the local community.

Capital A Bhd is set to launch, AirAsia Cambodia, a new low-cost airline in Cambodia, which is expected to start operating in the fourth quarter of this year (4QFY2023). “We are expanding across Asean based on a wide network and a strong brand, with the launch of AirAsia Cambodia expected to start operating in 4Q. We are looking for opportunities in the remaining Asean countries that deserve an airline,” said its chief executive officer Tony Fernandes. Capital A’s aviation group — AirAsia Malaysia, AirAsia Thailand, AirAsia Indonesia and AirAsia Philippines — saw a total of 157 aircraft reactivated as of 1Q2023, with enhanced profitability amid rationalised airfares and stabilising external factors.

Construction engineering company Zelan Bhd has decided to terminate the contract of its chief executive officer (CEO) Hazimi Baharum. Hazimi joined Zelan in March 2010 as head of special projects and was promoted to chief operating officer in February 2012 before leaving the company in 2016 to pursue other career opportunities. He rejoined Zelan in 2020 and was named acting CEO in March before being appointed as CEO last September.

Seremban Engineering Bhd (SEB) said it is being sued by construction firm See Yong & Son Construction Sdn Bhd over payments for subcontract works. See Yong is demanding that SEB pays the first portion of the retention sum amounting to RM579,016, a performance incentive of RM463.212, and late payment interest of RM33,348. As well as an issuance of a certificate of completion for the subcontract works.

Electronics manufacturing services provider Betamek Bhd said it had signed a Memorandum of Understanding (MOU) with Shenzen Zhonghong Technology Co Ltd (SZH) to develop advanced driver assistance systems, and an automotive cockpit system. The partnership is proposed to explore growth opportunities in the Asean automotive industry. The two parties will develop a range of new innovative products that combine Internet of Things-connected and other electronics and digital systems for the growing electric vehicle market. The MOU is effective for a one-year period, which will see both parties collaborate to generate new intellectual property, and to potentially develop and market the final products.

UMW Holdings Bhd has signed a maintenance service agreement with Khazanah Nasional Bhd’s subsidiary Cenergi SEA Bhd for a five-year term, with an agreement valued at RM12 million. The MSA was signed between UMW’s wholly-owned subsidiary UMW Industrial Power Services Sdn Bhd (UIPS) with Cenergi RE Sdn Bhd, a subsidiary of Cenergi SEA. It will see UIPS providing maintenance services for Cenergy RE’s existing Jenbacher biogas engines throughout Malaysia as well as newer ones, said UMW.

Plastic pipes and fittings maker Resintech Bhd wholly-owned Resintech Plastics (Sarawak) Sdn Bhd has inked a Memorandum of Understanding (MOU) with SEDC Energy Sdn Bhd to establish a joint venture company to expand its business in Sarawak and get itself into the renewable energy sector. The partnership will enable the parties to leverage each other's strengths and resources to operate in the plastic industry. Under the MOU that will be in effect for one year, their eventual joint venture collaboration is subject to the parties obtaining the necessary approvals.

Sime Darby Plantation Bhd (SDP) has appointed its non-independent director Tan Sri Dr Nik Norzrul Thani Nik Hassan Thani as the group's interim chairman. This follows the retirement of Tan Sri Megat Najmuddin Megat Khas, 79, as chairman at the conclusion of the group's annual general meeting on Thursday (June 15). Nik Norzrul, 62, was appointed to SDP's board a year ago.

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