Business & Markets 2014
Written by Ho Wah Foon of theedgemalaysia.com
Thursday, 19 June 2014 19:35
KUALA LUMPUR (June 19): Based on news flow and corporate announcements as of 7.00 pm today, the following stocks may be in focus tomorrow (June 20):
SapuraKencana Petroleum Bhd announced its wholly-owned unit Kencana HL Sdn Bhd has been awarded two EPCIC contracts with total value at RM1.3 billion.
One EPCIC contract is for 25 months and the work is expected to commence in the second quarter of 2014 and due for completion by the third quarter of 2016.
Another EPCIC contract is for 39 months, with work commencing in June 2014 for expected completion in September 2017.
“In total, the contracts are valued at circa USD415 Million (circa RM 1.3 billion),” said SapuraKencana in a statement to the stock exchange.
AEON Credit Service (M) Bhd’s net profit jumped 36% year-on-year (y-o-y) to RM56.3 million in the first quarter this year from RM41.3 million.
Revenue also jumped 39.6% y-o-y to RM200.9 million from RM143.9 million.
AEON Credit said it recorded higher financing volume in the reviewed quarter due to continued higher growth rates for car financing and motorcycle financing operations under favourable market environment.
The credit services firm said its total financing receivables grew 43.3% to RM3.8 billion in May from RM2.7 billion in the first quarter a year ago.
It added non-performing loans ratio was 2.18% as at May this year.
PJ Development Holdings Bhd’s (PJD) subsidiary has entered into a put and call option deed (PCOD) with Dynasty Falls Pty. Ltd. for the option to purchase land in Melbourne, Australia.
PJD said its 75%-owned subsidiary Yarra Park City Pty. Ltd. today entered into the PCOD with Dynasty Falls to acquire a five-acre land for RM439.3 million (AUD$145 million) cash.
In the event the call or put option is exercised, PJD said Yarra will enter into a definitive sale and purchase agreement by way of a contract of sale of real estate to purchase the land.
“The land is strategically located in the area of Southbank, which is in the inner urban central business district and central activities district of the city of Melbourne.”
According to PJD, the land is deemed an ideal property for long-term development with strong growth potential.
Astro Malaysia Holdings Bhd will launch its joint venture (JV) home shopping service by end of this year, targeting the Malay segment.
"We are working closely with our partner to prepare the launch of our service by the end of the year," said Astro's Chief Commercial Officer Liew Swee Lin today after the media group's AGM and EGM.
Earlier this year, Astro had announced it would set up a JV with South Korea's Home Shopping Inc to undertake home shopping operations in Malaysia.
"We expect the home shopping service to contribute to our topline in five years time," she said.
Meanwhile, Astro's Chief Operating Officer Henry Tan said that Astro's exclusive coverage of the FIFA World Cup 2014 has contributed encouraging numbers to the media group.
"We are happy to report that at the early start of the World Cup, we are seeing fantastic numbers," he told enthusiastically.
Scientex Bhd net profit for the third quarter ended April 30, 2014 rose 23% to RM36.34 million from RM29.53 million a year earlier, on the back of a 23.7% year-on-year increase in revenue.
The company said revenue for the quarter rose to RM426.77 million from RM345.1 million.
Scientex declared a single-tier interim dividend of 8 sen per share, to be paid on 8 August 2014.
For the nine months ended April 30, Scientex’s net profit rose 24.5% year-on-year to RM99.6 million on the back of a 37% increase in revenue to RM1.16 billion.
Brahim's Holdings Bhd is in talks with interested parties to dispose of its sugar business, according to Executive Chairman Datuk Ibrahim Ahmad Badawi.
Speaking to reporters after Brahim's annual general meeting today, Ibrahim said the company was reassessing the viability of the business due to intense competition in the market.
“We’re assessing this as too many licenses have been given out to companies to import sugar. More and more people are coming into the sugar business and that upsets the market. We’re wondering where we would stand if we continue on,” Ibrahim said.
Brahim’s sugar venture comes under its 60%-owned subsidiary Admuda Sdn Bhd, which is supposed to build a sugar refinery within the Demak Laut Industrial Park in Sarawak. The refinery is expected to be completed by the end of 2015.
KUB Malaysia Bhd is partnering Japan-based IHI Enviro Corporation to develop an environmental energy business in Malaysia, Bernama reported.
The company said it would bid for an incineration project in Labuan via the partnership.
Both parties will combine expertise and resources to leverage on each other's business and service delivery capabilities in the waste management industry.
IHI Enviro, a resources, energy and environment management company, is a unit of IHI Corporation, the third largest conglomerate in Japan.
KUB Managing Director Datuk Wan Mohd Nor Wan Ahmad said the strategic alliance opened up opportunities for the group to participate in numerous waste-to-energy future projects involving incineration plants to be built in major cities in the country.
JAG Bhd plans to issue bonus shares totalling 292.4 million shares and free warrants of up to 324.9 million units.
JAG said the bonus issue would be on the basis of nine bonus units for every 20 existing shares held.
JAG also plans to issue free warrants on the basis of 10 warrants for every 20 existing shares owned.
The company expects the bonus issue to improve trading liquidity of its shares while the warrants, when exercised, will raise funds to finance the company's capital requirements.
JAG was formerly known as Infotech Alliance Bhd.