Stocks To Watch Puncak Niaga, Gamuda, Toyo Ink, Dialog, IJM, Silver Ridge, Formis, Ho Hup


Business & Markets 2014
Written by Ho Wah Foon of theedgemalaysia.com   
Thursday, 09 January 2014 19:40

KUALA LUMPUR (Jan 9): Based on corporate statements made as at 7.00 pm today, the following companies may be interesting to watch tomorrow (Jan 10):

Toyo Ink Group Bhd (TIGB) announced that its wholly owned subsidiaries, Toyo Ink Sdn Bhd and Toyo Photo Products Sdn Bhd, have entered into agreements with Shen & Sons Sdn Bhd to sell their properties for RM5.9 million.

It said the proposed disposal will result in a net gain of RM3.1 million to TIGB Group.

“The proposed disposal is expected to contribute positively to the consolidated net assets, earnings and net gearing position of TIGB Group for the current financial year ending 31 March 2014,” said TIGB.

The proceeds from the disposal would provide future cash flows for the group’s working capital and repayment of borrowings, it added.

Puncak Niaga Holdings Bhd said it has been notified by Kumpulan Darul Ehsan Bhd (KDEB) today that “there will be no further discussions on the proposal to purchase the equities of PNSB and SYABAS for the foreseeable future”.

This means that all previous offers made by the Selangor government to Puncak Niaga and Gamuda Bhd may have come to an end.

The statement comes after the Selangor state and federal government decided to evoke Section 114 of the Water Services Industry Act 2006 (WASIA).

The section reads: “The minister may… direct the National Water Services Commission to assume control of the whole of property, business and affairs of a licensee and carry on the whole of the licensee’s business and affairs”

According a report by FZ.com, Selangor MB Tan Sri Abdul Khalid Ibrahim said yesterday: “The state government has agreed to give full cooperation to the federal government to use Section 114…which, among others, stipulate that National Water Services Commission (SPAN) appoint two administrators on behalf of the water concessionaires to handle the restructuring of the water services industry in the state."

The two administrators that have been appointed are KDEB president Suhaimi Kamaralzaman and Menteri Besar Incorporated (MBI) CEO Faekah Husin, a political secretary to Khalid.

Dialog Group Bhd announced the incorporation of two wholly owned subsidiaries, Pengerang Terminals (Five) Sdn Bhd (PT-5) and Pengerang Terminals (Six) Sdn Bhd (PT-6) for its major operation in Pengerang.

“The intended business activities of PT-5 and PT-6 are to undertake terminal storage facilities for petroleum and petrochemicals in Pengerang, Johor,” said the group in a statement to Bursa Malaysia.

Both subsidiaries were incorporated with an authorized share capital of RM400,000 comprising 400,000 ordinary shares of RM1.00 each of which 2 ordinary shares have been issued and fully paid-up.

IJM Corporation Bhd announced that it will establish a 20-year Sukuk Murabahah Programme of up to RM3.0 billion to finance its business activities.

“The proceeds raised from the Sukuk Murabahah Programme shall be utilised to finance working capital requirements, future investments, capital expenditure, other general corporate purposes, refinancing of borrowings of the company and its subsidiaries,” IJM informed Bursa Malaysia.

It added the Sukuk programme has been approved by the Securities Commission Malaysia.

Silver Ridge Holdings Bhd announced it has bagged a contract for microwave band systems worth RM50 million from Telekom Malaysia Bhd (TM).

The telecommunications infrastructure firm said its wholly-owned subsidiary had today received the letter of award dated December 19 last year from TM.

Silver Ridge accepted the award for the supply, delivery, installation, testing, commissioning, post acceptance maintenance and support service for microwave IP radio licensed and unlicensed band systems and its management system.

The contract is for a period of three years.

“The contract is expected to contribute positively to the group’s earnings for the financial years during the contract period,” said Silver Ridge.

Formis Resources Berhad announced that Formis Holdings Bhd (FHB), its wholly-owned subsidiary, has acquired one million redeemable convertible preference shares in Ho Hup Construction Company Berhad on the open market yesterday and today.

Following the acquisitions, FHB now holds a total of 23,115,000 ordinary shares representing 22.66% equity interest in Ho Hup, 23,115,000 irredeemable convertible preference shares of RM0.01 each, 11,557,500 warrants 2013/2018 and 4,246,000 RCPS of Ho Hup.