Business & Markets 2014
Written by Liew Jia Teng of theedgemalaysia.com
Monday, 04 August 2014 19:05
KUALA LUMPUR (Aug 04): Based on news flow and corporate announcements today, the stocks that may be in focus on Tuesday (Aug 05) could include Bina Puri, DRB-Hicom, Industronics, Bina Goodyear, Econpile and Oriental Food Industries.
Builder Bina Puri Holdings Bhd has bagged a construction contract worth RM115.42 million to build hostel Block A for Universiti Malaysia Sabah Cooperative (KoUMS) at Kg. Numbok, Kuala Menggatal, Sabah.
In a filing with Bursa Malaysia today, Bina Puri said its wholly-owned unit, Bina Puri Sdn Bhd, has on Saturday (July 02), accepted the letter of award from Arkitek TM, on behalf of its employer, Likas Bay Precinct Sdn Bhd.
Likas Bay Precinct is a Sabah-based bumiputra development and construction company.
The project, dubbed “Cadangan Penyatuan, Pembahagian Tanah Dan Pembinaan KOUMS Asrama UMS”, is slated to be completed in 28 months.
“With this latest award, the group’s book order stands at RM2.18 billion, as at to date. The management is confident to secure more projects for the year 2014,” said Bina Puri.
Petroliam Nasional Bhd (Petronas) will fund RM67 million for the deployment of DRB-Hicom Bhd’s underwater search equipment and a support vessel for the missing Malaysia Airlines flight MH370.
In a press statement today, the national oil company said it will continue to provide technical support and funding for the search-and-recovery (SAR) operations, by deploying Prosas Towed Side Scan Sonar and Marine Support Vessel to the new search zone.
The two assets are supplied by DRB-Hicom Defense Technologies Sdn Bhd (Deftech) and they will be used for the deep-water search.
DRB-Hicom Deftech, a wholly-owned subsidiary of local conglomerate DRB-Hicom, is a prime defence contractor that provides the development, manufacturing and supply of armoured and logistic vehicles for military and homeland security. In commercial sector, it also supplies specialized vehicles and commercial buses.
The loss-making Industronics Bhd (Itronic) has aborted its private placement plan to raise gross proceeds of up to RM5.95 million.
“Itronic has decided not to proceed with the proposed private placement, after taking into consideration of its current cash flow position and funding requirements,” it said in a filing with Bursa Malaysia today.
As at March 31, 2014, Itronic had cash and bank balances of RM26.1 million. The group also has total borrowings of RM1.757 million, out of which RM1.455 million are short-term borrowings.
Itronic said in view of the aborted plan, the listing application to Bursa Malaysia for the proposed private placement, which has been submitted on July 26, 2013, will now be withdrawn.
The proposed private placement activity, which was announced a year ago, was set at an indicative issue price of 55 sen apiece, to raise money for Itronic’s working capital requirements of its existing business operations.
Share price of Itronic fell more than 55% in the past three months, down from 68.5 sen on April 25, closing at 30.5 sen today.
Bursa Malaysia Securities Bhd had today rejected Bina Goodyear Bhd’s proposed regularisation plan to move out of its Practice Note (PN) 17 status.
Hence, the trading in the securities of Bina Goodyear will be suspended with effect from Aug 12, 2014.
Its shares will also be de-listed on Sept 08, 2014, unless an appeal against the rejection of the regularisation plan and de-listing is submitted to the regulator on or before Sept 03, 2014. Or else, the shareholders of the construction firm will be holding shares which are no longer quoted and traded on Bursa Malaysia.
Econpile Holdings Bhd has clinched a RM64.5 million contract to undertake earthworks, piling works and structure works for basement and elevated carpark of a service apartment property development project at Kuala Lumpur.
In a filing with Bursa Malaysia today, Econpile said its wholly-owned unit, Econpile (M) Sdn Bhd, had last Friday (Aug 01, 2014) received the letter of award dated July 30, 2014, from Instant Bonus Development Sdn Bhd.
Econpile said the duration of the contract is 16 months and is expected to commence on Aug 26, 2014.
The contract will contribute positively to the revenue and earnings of Econpile for financial years ending June 30, 2015 and 2016, it added.
Malacca-based confectioner and snack food manufacturer Oriental Food Industries Holdings Bhd has set an ex-date for its final dividend of 3.5 sen apiece on Aug 29, 2014. The single-tier dividend, amounting to RM2.1 million, is payable on Sept 26 this year. However, it is still subject to approval of its shareholders at the upcoming annual general meeting, to be held on Aug 28.