Stocks To Watch Seacera, Public Bank, IJM/IJM Land, Toyo Ink, TAHPS, Daya, Tune Ins

Monday IJMland will drop kau kau?

Why suspended when no decision??? Kanasai...


Business & Markets 2014
Written by Ho Wah Foon of theedgemalaysia.com   
Friday, 06 June 2014 19:54

KUALA LUMPUR (June 6): Based on corporate announcements and news flow today, the companies that may be in focus on Monday (June 9) could include:

Seacera Group Bhd announced it has teamed up with two conglomerates from China and a local bumiputra firm to bid for EPC jobs linked to the mega multi-billion Warisan Merdeka project.

In a filing with Bursa, Seacera said it has today signed a memorandum of understanding with Sinohydro Corporation Ltd, Shanghai Construction Group Co. Ltd (SCG) and SPAZ Sdn. Bhd. to form a joint venture (JV) to bid for the Warisan Merdeka project in Kuala Lumpur “in the mode for financing plus engineering, procurement and construction (EPC).”

The percentage interest of the parties in the assets, liabilities, profits and losses of the JV shall be: SCG/Sinohydro 60%, Seacera/SPAZ 40%.

Seacera, which has interests in construction, building materials supply and property development, said the JV came about after May 30-31 meetings in Beijing, in conjunction with the visit of Prime Minister Datuk Seri Mohd Najib Tun Razak.

According to the filing by Seacera, Sinohydro has businesses covering power generation, infrastructure, water works and buildings. Worldwide, Sinohydro has over 400 projects under construction in over 70 countries, with total contract value of US$35 billion.

SCG has total assets of about RMB68.26 billion and an annual revenue of over RMB82.86 billion, according to the filing. SCG’s interests include construction, industrial production, real estate development, garden and landscape construction and industrial investment.

Public Bank Bhd has fixed the issue price for its proposed rights issue at RM13.80 a share, to raise RM4.83 billion for the group.

In a statement to the exchange, Public Bank said the rights issue involved 350.2 million new shares. This will be done on the basis of one rights share for every 10 existing units held.

The issue price of RM13.80 per right share represents a discount of 33% to the theoretical ex-rights price of RM20.64 per Public Bank share, Public Bank said.

Public Bank shares fell 12 sen or 0.6% to close at RM20.78 today.

IJM Corp Bhd is “contemplating” corporate proposals, including the possible privatisation of 64.16%-owned property subsidiary IJM Land Bhd.

But IJM Corp said it had, however, yet to make a decision on the matter.

IJM Corp said it was part of the company's initiatives to explore long-term strategies to enhance shareholders’ value. 

IJM Corp's statement was in response to news reports speculating that IJM Land may be privatised.

IJM Corp and IJM Land shares closed at RM7.00 and RM3.20 respectively on June 5. Trading of the counters was suspended today (June 6).

Toyo Ink Group Berhad announced it will be negotiating with the Vietnam government on terms relating to a project to build-operate-transfer (BOT) two coal-fired power plants of 1000 megawatt capacity.

In a filing with Bursa Malaysia, the company said it had on June 5, 2014, executed a “Principles of Project Agreements” with the Ministry of Industry and Trade of Vietnam on this project.

The “Principles of Project” set out the general principles for negotiation and finalisation of the documents in relation to the company’s proposed Song Hau 2 BOT coal-fired power plant project (2 units x 1000 MW gross nominal capacity) in Hau Giang Province in Vietnam and related facilities.

It said that apart from the BOT contract and the Government Guarantee and Undertakings Agreement (GGU), 10 others issues the parties have to finalise include land lease agreements (LLA) and power purchase agreement (PPA).

“The key project agreements such as the BOT contract, PPA, GGU and LLA are considered non-exhaustive and may include other agreements to be agreed during the negotiation,” said Yoyo Ink.

The operational period of the project is 25 years operational term, it added.

TAHPS Group Bhd was slapped with an unusual market activity (UMA) query regarding the sharp rise in the plantation and property firm's share price of late.

At market close, TAHPS shares rose 54 sen or 5% to RM11.44. TAHPS shares have begun to rise from its closing price of RM8.60 last Thursday, with 116,800 shares traded.

In reply to the UMA, Tahps Group said it is unaware of the reasons behind its share price surge.

Daya Materials Bhd announced that its unit, Daya Offshore Construction Sdn Bhd (DOCSB), has entered into a memorandum of understanding with Caracal Oil & Gas Services Limited.

The purpose of the MOU is to combine their complementary resources and collaborate to market the combined services and assets in international markets, the company said.

Tune Ins Holdings Bhd (TIH) will team up with an Indonesian counterpart to obtain a general insurance licence by year-end, said Bernama.

"TIH does have a partner in Indonesia, which is a third party, but if TIH is able to obtain a general insurance licence, the third party insurance company will be passed on to the local players," said general manager Sasitharan Krishnan.

"We are trying a few approaches and see which will work best, and currently the targeted company has been identified.”

TIH’s first attempt to go into Indonesia did not work out. "This is the second attempt to go into the Indonesian market and this time we are confident as we have given our commitment to shareholders," he said, adding TIH aims to bring in travel insurance business as well as other insurance businesses.

"The reason we are focusing on Malaysia, Indonesia and Thailand is that based on AirAsia's portfolio, 70% of the business comes from these markets," he said.