FGV, UEM Sunrise, Supermax, QL Resources, MyEG, Kossan Rubber, JAG, Plenitude, WCT, IJM Corp, Genting, Taliworks, Silk Holdings and Yinson

No Wonder MYEG UP UP UP...

By Meena Lakshana / theedgemarkets.com   | September 18, 2015 : 11:38 PM MYT   
Printer-friendly versionSend by emailPDF version

KUALA LUMPUR (Sept 18): Based on corporate announcements and news flow today, companies that may be in focus on Monday (Sept 21) could include the following: FGV ( Valuation: 2.00, Fundamental: 1.15), UEM Sunrise, Supermax, QL Resources, MyEG, Kossan Rubber, JAG, Plenitude, WCT, IJM Corp, Genting, Taliworks, Silk Holdings and Yinson.

Felda Global Ventures Holdings Bhd (FGV), UEM Sunrise Bhd ( Valuation: 2.60, Fundamental: 1.50) and Supermax Corp Bhd ( Valuation: 0.80, Fundamental: 1.00) have been removed from the Dow Jones Islamic Market Malaysia Titans 25 Index’s list of stocks in the benchmark index’s latest quarterly review.

In a filing with Bursa Malaysia today, i-VCAP Management Sdn Bhd, the manager of MyETF Dow Jones Islamic Market Malaysia Titans 25 ( Valuation: None, Fundamental: None), said it has been informed by S&P Dow Jones Indices that QL Resources Bhd ( Valuation: 1.10, Fundamental: 1.30), MyEG Services Bhd ( Valuation: 1.10, Fundamental: 2.30) and Kossan Rubber Industries Bhd ( Valuation: 0.70, Fundamental: 2.10) will replace the three companies that were removed.

JAG Bhd said its wholly-owned subsidiary, Jaring Metal Industries Sdn Bhd (JMI), has entered into a joint venture (JV) agreement with Bubblelab Laundry Sdn Bhd (BLSB) and BLSB director Wong Chan Kong for the management and operation of a 24-hour coin-operated laundry business.

In a filing with Bursa Malaysia, JAG said the parties will invest in JAG Nasmech Sdn Bhd, the JV company for the venture. JMI will own an 80% stake in the JV company, while BLSB and Wong will each hold a 10% stake.

Under the agreement, JMI will advance RM4 million to JAG Nasmech for the development of the business, to open at least 10 self-operated laundry outlets in strategic locations in Malaysia.

The investment by JMI will be financed entirely by internally-generated funds.

The JV is expected to provide an additional source of income and contribute positively to the future financial performance of the group.

Plenitude Bhd ( Valuation: 2.40, Fundamental: 3.00) appointed Datuk Mohd Nasir Ali as its deputy chairman, following the property developer’s takeover of The Nomad Group Bhd.

Nasir, 57, was formerly the independent non-executive chairman of Nomad Group and is an independent non-executive director of E.A. Technique (M) Bhd.

Meanwhile, Plenitude non-independent director Tsang Chee Wah, 62, has been re-designated as an independent director. Tsang has 38 years of experience in the construction industry.

WCT Holdings Bhd ( Valuation: 1.40, Fundamental: 0.45) has clinched a construction contract for infrastructure jobs at Kwasa Damansara in Sungai Buloh valued at RM127.39 million.

In a filing with Bursa Malaysia, the company said its wholly-owned subsidiary, WCT Bhd, had today accepted a letter of award from Kwasa Land Sdn Bhd for the construction and completion of common infrastructure work at Kwasa Damansara Township Development.

The works under the contract shall be completed within 104 weeks and the date of completion is Oct 8, 2017, WCT said.

IJM Corporation Bhd’s wholly-owned unit IJM Construction Sdn Bhd has accepted the letter of award issued by GDP Architects Sdn Bhd on behalf of Hotel Equatorial (M) Sdn Bhd and Fenghuang Development Sdn Bhd, for a mixed commercial development worth RM455.5 million.

In its filing to Bursa Malaysia today, IJM said the job was for the proposed construction of one block of 52-storey mixed commercial development known as “Equatorial Plaza”, which is to be located on Lot 1217, Seksyen 57, Jalan Sultan Ismail, Kuala Lumpur.

The job entails the construction works of the podium block, office tower and hotel tower, as well as the interior design works for the hotel tower and hotel outlet.

The construction period for the project is three years.

Genting Bhd is venturing into a German shipbuilding business.

In a statement, Genting said its subsidiary Genting Hong Kong Ltd ( Valuation: 2.40, Fundamental: 2.10) is acquiring a 70% stake in Lloyd Werft’s shipbuilding business and 50% of the latter’s shipyard in Bremerhaven.

Genting Hong Kong chairman and chief executive officer Tan Sri Lim Kok Thay said it would pay €17.5 million (RM84.43 million) for stakes in Lloyd Werft’s shipbuilding business and yard.

Ownership in Lloyd Werft will enable Genting Hong Kong to leverage on the shipyard’s technical expertise, as well as their well-established and long track record in the shipbuilding industry, Genting said.

According to Genting Hong Kong’s statement, Lloyd Werft, founded in 1857, was initially focused on ship repair, before moving into shipbuilding in the 1970s.

Today, Lloyd Werft shipyard, on 26ha (260,000 sq m), comprises six docks and a 1,600-metre pier. Lloyd Werft has built ships for Norwegian Cruise Line, which is a unit of Genting Hong Kong.

To enhance the competitiveness of Crystal Cruises, another unit of Genting Hong Kong, the group has signed a letter of intent with Lloyd Werft to build “exclusive class” cruise ships.

Crystal Cruises is also planning to order new luxury river ships from Lloyd Werft, which will feature larger suites than currently available in the market, the company said.

Taliworks Corp Bhd ( Valuation: 2.40, Fundamental: 1.50) said today it is in talks with Silk Holdings Bhd to buy the latter’s wholly-owned subsidiary Sistem Lingkaran Lebuhraya Kajang Sdn Bhd (SILK).

SILK is the concession owner of the 37km Kajang Traffic Dispersal Ring Road, which is better known as Kajang Silk Highway in the Klang Valley. The 33-year concession ends in 2037.

Taliworks executive director Ronnie Lim Yew Boon said, however, discussions are still at an exploratory stage.

“Any highway projects in line with Taliworks’ investment strategy are being explored,” Lim said.

Lim, who was speaking to reporters after Taliworks’ extraordinary general meeting, confirmed a recent digitaledge Weekly report which reported that Taliworks and Silk Holdings were in exploratory talks on the proposed highway concession transaction.

The Taliworks-Silk negotiations followed a failed deal between Silk Holdings and IJM Corp’s unit, Road Builder (M) Holdings Bhd, in November 2014, when both parties scrapped the planned RM395 million acquisition of the 100% stake in SILK by Road Builder.

Today, Lim said Taliworks was also eyeing other matured and cash-generating concessions like toll roads, besides waste management and power generation assets, with these concessions involving Malaysian and foreign assets.

Yinson Holdings Bhd’s wholly-owned subsidiary Yinson TMC Sdn Bhd made a lodgement to the Securities Commission Malaysia (SC) yesterday for the proposed issuance of US$100 million (RM423.9 million) in Regulation S guaranteed senior perpetual capital securities.

In its filing to Bursa Malaysia this morning, Yinson said the proposed issuance is pursuant to the Guidelines on Unlisted Capital Market Products under the Lodge and Launch Framework issued by the SC, and the securities are expected to be issued by Sept 30, 2015.

“The perpetual Securities are unrated and will not be listed on Bursa Malaysia or on any other stock exchange and will carry an initial periodic distribution rate of 7% per annum,” said Yinson.

The group added that the perpetual securities have no fixed maturity date but are callable five years from date of issuance at their principal amount, and may also be redeemed upon the occurrence of certain events.

The perpetual securities are unconditionally and irrevocably guaranteed by Yinson and shall constitute direct, unsecured, unconditional and unsubordinated obligations of Yinson TMC.

According to Yinson, the proceeds arising from the perpetual securities will be utilised for the repayment of existing borrowings, capital expenditure, capital investments and other general corporate purposes of the Yinson Group.

The perpetual securities will qualify as an equity instrument in the consolidated financial statements of the group, and is expected to have a positive impact on its net assets and gearing.

(Note: The Edge Research’s fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)