Bina Puri, RGB, PPB, Alam Maritim, MKH, TNB, RHBCap, Harvest Court and ECS ICT



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KUALA LUMPUR (March 5): Based on corporate news flow and announcements today, stocks in focus tomorrow (Friday, March 6) could include: Bina Puri Holdings Bhd, RGB Holdings, PPB Group Bhd, Alam Maritim Resources Bhd, MKH Bhd, Tenaga Nasional Bhd (TNB), RHB Capital Bhd (RHBCap), Harvest Court Industries Bhd and ECS ICT Bhd.

Bina Puri Holdings Bhd (fundamental: 0.15; valuation: 1.8) has clinched a RM128.5 million contract to build the beachfront Movenpick Spa Resort on a 10 ha (25 acres) site on Chendering Beach, Kuala Terengganu, from Success Diar Sdn Bhd.

Bina Puri said in a statement today that with this contract, its un-built book order to-date stands at RM1.86 billion.                                    

The project, to be completed in 22 months, also includes eight blocks of two-storey, three-storey and five-storey buildings and nine pavilions. The project will also include a spa and multi-purpose building, besides related facilities.

Gaming machines distributor RGB International Bhd (RGB) (fundamental: 1.7; valuation: 1.5) is looking to achieve single-digit growth in its revenue and profit for the financial year ending Dec 31, 2015 (FY2015), underpinned by the sales of new gaming machines.

The company will be aiming to sell 1500 machines in 2015, focusing on the replacement market in existing and new markets across Asia, its chief operating officer Steven Lim told a media briefing today.

It is also targeting to place 500 Bingo machines in its largest market, Philippines, and sign concessions for some 7000 gaming machines Asia.

Moving forward, RGB plans to buy equity stakes in clubs which host gaming machines and gaming terminals in new and emerging markets. It is in the midst of completing the first such buy — the proposed acquisition of a 30% equity stake in Timor Holdings Lda, which will be supported by internally-generated funds, as well as appropriate corporate exercises.

PPB Group Bhd (fundamental: 2.7; valuation: 0.6), controlled by billionaire Robert Kuok, expects its revenue growth this year to be driven largely by its flour, animal feed milling and grain segment.

"The flour, feed milling and grains segment has always been the largest contributor of our core segments. We expect to see a similar proportion this year," PPB Group managing director Lim Soon Heat told reporters, after a briefing on the group's prospects for 2015 today.

In FY14, the flour, animal feed and grains segment contributed 61% to PPB's total revenue of RM3.701 billion.

While revenue rose from a year earlier, PPB's profit had however, fallen to RM916.78 million, versus RM982.57 million in FY13.

Alam Maritim Resources Bhd (fundamental: 1.6; valuation: 1.2)'s wholly-owned subsidiary Alam Maritim (M) Sdn Bhd has received a Letter of Award from Petronas Carigali Sdn Bhd (Petronas Carigali), for the provision of spot charter marine vessels.

The contract is for two years, beginning Jan 29, 2015, and gives Petronas Carigali a one-year extension option, Alam Maritim told Bursa Malaysia today.

The contract shall enable Alam Maritim to provide the vessels, crew and associated equipment for continuous 24-hour operations.

The total value of the contract will depend on the actual number of days the vessels are on-hire, based on instructions from Petronas Carigali during the contract period.

Alam Maritim expects the job to contribute positively to its earnings and net tangible for the financial year ending Dec 31 this year and beyond, but will have no material effects on the share capital and shareholding structure of the group.  

MKH Bhd (fundamental: 1.2; valuation: 2.4) has set an internal sales target of RM850 million for its property development business for the financial year ending Sept 30, 2015 (FY15).

The sales target is a 60.79% increment to the group’s FY14 property sales of RM528.63 million, the group’s managing director Tan Sri Eddy Chen Lok Loi told the press, after the group’s annual general meeting today.

The company expects its prudent land-banking strategy over the years and flexibility in its product launches to help it overcome the challenging year.

For FY15, the group’s property sales would mainly be driven by demand for affordable housing, as catered to by its HillPark project in Shah Alam, with about RM366 million in gross development value (GDV). The project is to be launched soon.

Tenaga Nasional Bhd (fundamental: 1.3; valuation: 1.8)'s 1,071 megawatt (MW) combined cycle power plant in Seberang Perai, Pulau Pinang, is on track for commercial operation on Jan 1, 2016.

The RM2.5 billion project, utilising the world's largest and most efficient gas turbine (Siemens HClass), is currently 94% complete, said TNB in a statement.

One of the project's major milestones involved ‘back energisation’ which took effect on Feb 27, 2015, added TNB, noting this enabled pre-commissioning and testing works on various sub systems.

“The new high efficiency power plant comprises two blocks of single shaft combined cycle gas turbines that utilise the most efficient H-Class technology gas turbine, with a block efficiency rate of 59.7%,” said TNB.

Construction work commenced on May 2, 2013, after TNB and its partner Samsung Engineering & Construction, beat 18 other international bidders to build, own and operate a 1000-1400MW power plant. Samsung is the Engineering, Procurement and Construction (EPC) contractor of the project.

RHB Capital Bhd (RHBCap) has identified a successor to assume the role of group managing director and group chief executive officer, following the resignation of the incumbent, Kellee Kam Chee Khiong, on Feb 12.

"A successor has been identified. The board will now proceed to seek approval from Bank Negara Malaysia (BNM) to appoint the said successor. An announcement will be made upon receipt of BNM’s approval," said RHBCap (fundamental: 1.5 valuation: 2.1) in a statement today.

It also said that its board of directors has formally accepted Kam's resignation and that Kam will step down as group CEO on May 4 this year. In the mean time, he will continue to carry out his responsibilities prior to that.

It added that its board has further approved the appointment of Datuk Khairussaleh Ramli, the current MD of RHB Bank Bhd/deputy group MD, to be the acting group CEO/group MD in Kam's absence.

Harvest Court Industries Bhd's RM129 million contract with Sagajuta (Sabah) Sdn Bhd to build a commercial and residential development in Kota Kinabalu, Sabah, has been terminated by mutual consent on Jan 30.

The contract was for the construction of a 28-storey medium-cost apartment block, eight units of 2-storey shoplots, a common facilities podium and a five-level car park, which would form part of Sagajuta’s RM500 million 1Sulaman project in Kota Kinabalu.

In a filing with Bursa Malaysia today, Harvest Court (fundamental: 1.2; valuation: 0.6) said the contract was terminated due to majority of its shareholders at its annual general meeting held on June 20 last year, having voted against the resolution pertaining to the renewal of the shareholders’ mandate for recurrent related party transactions of a revenue or trading nature.

Its wholly-owned subsidiary Harvest Court Construction Sdn Bhd, and Sagajuta, was also unable to reach a consensus on the variation of the design and construction contract sum, due to increase in material and labour cost since the letter of award (LoA) was issued on Nov 21, 2011.

"Pursuant to the LoA, the parties has agreed that the contract price for the design and construction contract works would be RM129 million. To date, Harvest Court Construction has carried out 14.8% of the works," it added.

Harvest Court said the termination of the LoA is not expected to have any material effect on the its earnings, net asset and gearing for the financial year ending March 31, 2015.

ECS ICT Bhd has been appointed by China-based electronics manufacturer, Xiaomi, to be the company’s authorised distributor of the Xiaomi MiPad tablets in Malaysia.

In a statement today, ECS ICT (fundamental: 2; valuation: 2.4) chief executive officer Soong Jan Hsung said Xiaomi had quickly risen the ranks to become a global household brand within the mobility products sector.

Hence, he said ECS ICT is not only proud to partner an emerging brand like Xiaomi, but also to be its robust on-the-ground presence through the group’s reseller network, numbering more than 5,000-strong nationwide.

(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.)