Stocks to Watch TNB, LPI Capital, Brem, Yinson, Astral Supreme


Business & Markets 2014
Written by Shalini Kumar of theedgemalaysia.com  
Friday, 25 July 2014 20:26

KUALA LUMPUR (July 25): Based on corporate announcements and news flow today, the stocks in focus on Wednesday (July 30) could include:

Tenaga Nasional Bhd (TNB) has inked an investment agreement with KLS Energy Sdn Bhd (KLS), KLS Energy Lanka Sdn Bhd (KLS Energy) and KLS Energy Lanka (Pte) Ltd (KLS Energy Lanka) for a 35-megawatt renewable energy hybrid wind and solar power project in Sri Lanka.

In a filing with Bursa Malaysia today, TNB said it was invited by KLS to acquire a stake in the latter’s wholly-owned subsidiary KLS Energy.

KLS Energy is the holding company of KLS Energy Lanka, which was granted a 20-year concession to develop the project by the Ceylon Electricity Board.

LPI Capital Bhd posted a net profit of RM51.2 million for the second quarter ended June 30, 2014 (2QFY14), almost 10% higher from RM46.6 million a year ago. 

Revenue rose to RM291.5 million from RM282.4 million in 2QFY13. 

For the six months period, LPI Capital’s net profit rose 14.7% to RM101.8 million from RM88.7 million from a year ago. Revenue for 6MFY14 increased to RM569.3 million from RM540.9 million.

LPI Capital also declared a first interim dividend of 20 sen per share, payable on Aug 21. 

Brem Holdings Bhd has entered into a share sale agreement to dispose of its 32.89% stake in Bertam Alliance Bhd to Wisma Jutamas Sdn Bhd for RM80.24 million. 

The total cost of Brem's investment in Bertam was RM60.29 million, which was made between July 22, 2002 and March 31, 2011. 

Yinson Holdings Bhd’s wholly-owned indirect subsidiary, Yinson Production AS, has entered into an agreement with Prosafe Productions Plc Ltd, a wholly-owned indirect unit of BW Offshore Ltd, to dispose of its entire equity interest in Nautipa AS to Prosafe for US$59.3 million (RM187.98 million) cash. 

Nautipa, an investment holding company, owns 50% equity interest in Singapore-incorporated Tinworth Pte Ltd, which in turn owns and operates floating production and/or storage vessels, while its subsidiary Tinworth Gabon SA, is principally involved in the operation of the FPSO Petroleo Nautipa. 

Astral Supreme Bhd's wholly-owned unit Astral Supreme Construction Sdn Bhd (ASC), has terminated its joint venture agreement with Zenith PMC Sdn Bhd, involving the proposed construction of various roads in Penang and an undersea tunnel between Penang Island and Seberang Perai. 

In a filing with Bursa Malaysia today, Astral Supreme said the agreement was to jointly manage, perform and carry out the feasibility studies and detailed design stage of the project known as "Projek Pembinaan Jalan-jalan Utama dan Terowong di Pulau Pinang".

Due to a breach in the agreement, Zenith declined ASC's appeal to delay the implementation of the agreement and due to ASC failing to remedy the breach in time, the agreement was terminated.