Stocks To Watch Kinsteel, Hong Leong Bank, Haisan, Dayang, Goldies, Kulim, TH Heavy

Business & Markets 2013
Written by Ho Wah Foon of   
Thursday, 05 September 2013 19:45

KUALA LUMPUR (Sept 5): Based on corporate announcements today, the stocks that could attract some interest are likely to include Kinsteel, Hong Leong Bank, Haisan, Dayang, Goldies, Kulim and TH Heavy.

KINSTEEL BHD [] said RHB Investment Bank is granting the company until Oct 5, 2013, for the full redemption of the RM40 million outstanding (Maturing CP) under the company’s Commercial Papers/Medium Term Notes programme (CP/MTN Programme). 

The Maturing CP was due on Aug 28 and the CP/MTN Programme had expired on the same day, said the steel company in a filing with Bursa Malaysia.

Kinsteel also said it is in the midst of finalizing a restructuring proposal with RHB Investment Bank to repay the Maturing CP.

HONG LEONG BANK BHD []’s unit, Hong Leong Bank Cambodia, opened its first banking operations in Phnom Penh today, thus allowing it to serve business and retail customers there, reported Bernama.

Hong Leong Bank Group Managing Director Tan Kong Khoon said the group would leverage its knowledge and expertise in the region and share the best practices that it had developed from the more than 100 years of banking experience in Malaysia.

"We are here to stay and committed to growing and contributing to the banking sector in Cambodia as well as its broader economy," he said in a statement today.

HAISAN RESOURCES BHD [] is making a foray into the new business of liquefied petroleum gas (LPG), which includes storing, bottling, transportation of bulk LPG and other related activities.

In a statement to Bursa Malaysia, the cold chain logistics provider, refrigeration specialist and ice manufacturer said it had entered into a joint venture agreement with Keloil Sdn Bhd (KSB) to set up a joint venture company (JV) for the said business.

The JV will also act as a contract manufacturer or fabricator and a contract service provider to KSB and Haisan, it said.

“This JV is in line with the group’s strategy to expand its business into the oil and gas industry, which is more promising, to enhance our profitability,” said Haisan.

“The combined strength and network of KSB and Haisan will present competitive advantages over its rivals,” it said, adding it expects the JV to contribute positively to its future earnings.

DAYANG ENTERPRISE HOLDINGS BHD [] is expanding its fleet by acquiring a vessel to provide marine support services to its offshore oil and gas (O&G) facilities.

In a filing with the stock exchange, the O&G maintenance and support provider said that to expand its fleet, the group has entered into a shipbuilding contract with Shin Yang Shipyard Sdn Bhd today.

The contract stipulates the CONSTRUCTION [] and delivery of one unit of offshore accommodation workboat worth an estimated RM70 million, it said.

“This new vessel is expected to contribute positively to the future earnings and net assets of the company for the financial year ending Dec 31, 2015 and beyond,” said Dayang Enterprise.

The new vessel is scheduled for delivery by the fourth quarter of 2014, it said.

Goldies Bhd is a step closer to building a China sewage plant after setting up a project company today with a Chinese firm to undertake a concession to build, operate and transfer (BOT) a sewage plant in Shandong Province, China.

In May, a BOT (build, operate and transfer) concession agreement was entered into between Crest Spring Pte Ltd, a wholly-owned unit of Goldis, with Yantai Economic and Technical Development Zone City Management and Environmental Protection Bureau.

Under the old BOT agreement, a project company would have to be set-up to undertake the upgrading and expansion of the existing sewage treatment plant in Yantai Economic Development Zone, Shandong Province, operated by another subsidiary of Goldis.

Goldis said that since a new project company by the name of New Water Co. Ltd has been incorporated, a new BOT concession agreement has been signed to supersede the earlier BOT agreement.

Kulim Bhd is dealt another blow after the National Court of Papua New Guinea dismissed its application to uplift orders against the Securities Commission of Papua New Guinea (SCPNG), which had prevented the company from undertaking a partial offer to raise its stake in London-based New Britain Palm Oil Ltd (NBPOL) by up to 20%.

Kulim recently commenced legal proceedings against SCPNG, after the latter stopped the PLANTATION [] firm from increasing its interest in NBPOL on Aug 20.

Kulim told Bursa its application was dismissed by the National Court of Papua New Guinea on Sept 4.

“As such, Kulim was unable to declare the Partial Offer unconditional and the Partial Offer has since lapsed,” said Kulim.

TH Heavy Industries Bhd (THHE) is planning to establish a Sukuk Murabahah of up to RM170 million to refinance part of its existing Islamic Term Financing and for working capital.

In a filing with Bursa Malaysia, THHE said it has mandated MIDF Amanah Investment Bank Bhd to act as the principal adviser, while MIDF Investment and Hong Leong Islamic Bank Bhd have been mandated to act as joint lead arranger /lead manager for the Sukuk.

The tenure of the Sukuk Murabahah shall be three (3) years from the date of the first and only issuance, which shall be made within one (1) year from the date of authorisation of the Sukuk Murabahah by the Securities Commission, said THHE.