KUALA LUMPUR (Dec 9): Based on corporate announcements and news flow today, the companies that may garner investors’ interest tomorrow (Thursday, Dec 11) could include: Eco World Development Group Bhd, Kumpulan Perangsang Selangor Bhd (KPS), Icon Offshore Bhd, UEM Sunrise Bhd, Kulim (Malaysia) Bhd, IJM Land Bhd, SILK Holdings Bhd and Green Packet Bhd.
Eco World Development Group Bhd will have a busy 2015 with a corporate exercise and a new property development launch - with a sales target of RM7 billion for the next two financial years - lined up in its calendar.
The property developer will start its financial year ending 31 Oct, 2015 (FY2015) with a corporate exercise to acquire development rights to eight projects from EW Sdn Bhd, which will allow it to scale up its operations in the Klang Valley, Iskandar Malaysia and Penang.
It will also increase the size of its land bank by 3,106 acres to generate additional gross development value (GDV) of approximately RM30 billion, it noted in a press release today.
Five of the eight projects under the corporate exercise have already been launched, while the remaining three are expected to be launched in the next two years.
“With so many new projects and the strong performance of our existing developments in Klang Valley and Iskandar Malaysia, we are confident that 2015 will be a very good year,” said its CEO Chang Khim Wah.
It registered a revenue of RM148.39 million and a net profit of RM7.18 million for the 13-month period ended Oct 31, 2014.
Comparative figures were not available as the group had just changed its financial year from Sep 30 to Oct 31.
“Whilst revenue and profits were muted this year, the strong sales achieved in FY14 will boost earnings growth significantly in the years ahead, upon completion of the group’s proposed corporate exercise,” it said.
As at Oct 31, 2014, it achieved cumulative sales of RM2.18 billion, exceeding its initial target of RM2 billion.
Its counter closed down 2 sen or 0.5% at RM3.95 with 291,500 shares traded. It has a market capitalisation of RM1.003 billion.
Kumpulan Darul Ehsan Bhd (KDEB) has extended Konsortium Abass Sdn Bhd's Klang Valley raw water abstraction right for another three months.
In a statement to the exchange today, Kumpulan Perangsang Selangor Bhd (KPS) said KDEB had extended the right from December 1, 2014 to February 28, 2015.
"The agreement also provides that KDEB may, at its own discretion, grant renewals for further periods of three months each," Kumpulan Perangsang said.
Selangor government investment arm KDEB owns 57.88% in Kumpulan Perangsang. Kumpulan Perangsang owns 90.83% in Titisan Modal (M) Sdn Bhd, which in turn, has a 100% stake in Konsortium Abass.
Konsortium Abass owns a 30-year concession for the Sungai Semenyih water supply scheme, which provides treated water to Klang Valley consumers. Konsortium Abass secured the concession in 2001.
Kumpulan Perangsang's shares rose three sen or 2.4% to close at RM1.29 for a market capitalisation of RM643.7 million.
Icon Offshore Bhd, an offshore support service provider, has bagged three long-term vessel charter and contract extensions worth RM43 million.
The three contracts were duly accepted by its subsidiary, Icon Offshore Group Sdn Bhd, it told Bursa Malaysia in a filing today.
Icon Offshore said the first contract - awarded by EQ Petroleum Production Malaysia Ltd and to start early this month – is to provide one unit straight supply vessel for two years with an option to extend by a further one year.
The second contract was a one-year contract extension by an established oil major for the provision of one utility tug vessel. The letter of extension was received last month and the contract has begun in October.
The third contract was another contract extension by an established oil major for the provision of one anchor handling tug or supply vessel (AHTS).
The AHTS contract is a 134-day extension to the initial charter and is expected to commence early this month.
Icon Offshore shares closed unchanged at RM1.15 today. It has a market capitalisation of RM1.35 billion.
Lembaga Tabung Haji has emerged as a substantial shareholder in UEM Sunrise Bhd, the master developer of Nusajaya, which is one of five flagship zones in Iskandar Malaysia.
UEM Sunrise told Bursa that the Malaysian pilgrim fund board had purchased 1.5 million UEM Sunrise shares on Dec 4 (last Thursday), thus increasing its shareholdings in the property developer to 227.148 million shares, which represents a stake of 5%.
Khazanah Nasional Bhd, the holding company of UEM Group Bhd, remains the largest shareholder in UEM Sunrise, with an indirect interest, held through UEM Group, of 66.06%. Employees Provident Fund (EPF) holds 5.14% in the property developer.
UEM Sunrise's share price, which was at RM2.29 a year ago, closed at RM1.59 today, after shedding 5 sen, giving it a market capitalisation of RM7.26 billion.
Kulim (Malaysia) Bhd has proposed to acquire a 60% equity interest in Indonesian oil and gas (O&G) player PT Citra Sarana Energy (CSE) for US$133.55 million (RM462.68 million).
Its wholly owned unit Kulim Energy Nusantara Sdn Bhd has entered into a conditional subscription and share purchase agreement with PT CSE, and its existing shareholders namely, PT Wisesa Inspirasi Sumatera (WIS) and PT Inti Energi Sejahtera (IES) in relation to the transaction.
It told the bourse that the acquisition will comprise the purchase of 6,282 ordinary shares or 41.88% interest in PT CSE for US$64.15 million (RM222.25 million) and the subscription of 6,796 new ordinary shares representing a 31.18% stake in the company, for US$69.40 million (RM240.43 million).
PT CSE is currently involved in the exploration and development of an O&G field in South West Bukit Barisan Block, Central Sumatera, Indonesia.
The acquisition will be funded using internally generated funds and the proceeds from the divestment of its 48.97%-subsidiary, New Britain Palm Oil Ltd (NBPOL), will be used to partly finance the acquisition, it said.
The company said the acquisition is in line with its move to diversify its business activities, reduce its reliance on the palm oil segment, and expand its involvement in the O&G sector, particularly into the niche upstream activities in Indonesia.
Kulim closed 10 sen or 3.13% higher at RM3.30, bringing its market capitalisation to RM4.38 billion.
SILK Holdings Bhd (SILK) has halved its net loss in its first financial quarter ended Oct 31, 2014 (1QFY15), to RM3.28 million from RM6.3 million recorded last year, mainly due to improved utilisation rates in its O&G segment.
It told Bursa that the 47.9% narrowing of net loss was because the group reported a pre-tax profit of RM1.14 million, compared to a pre-tax loss of RM557,000 in 1QFY14.
SILK's 1QFY15 revenue up 13.87% to RM107.55 from RM94.45 million last year, underpinned by the improvement in utilisation rates in its oil and gas (O&G) segment.
SILK's highway division in 1QFY15 saw its average daily traffic volume increased by 13% to 209,000 vehicles per day from 186,000 vehicles per day last year. This led to a 26.58% increase in revenue to RM26.29 million from RM20.77 million, though it still reported a pre-tax loss of RM10.72 million due to high finance and amortisation costs.
On the cancellation of disposal of Sistem Lingkaran-Lebuhraya Kajang Sdn Bhd (SILK Highway), Azlan said the decision came after careful consideration of the long-term interest of all stakeholders.
"This, however, will not detract from the planned focus on O&G activities. Should the right opportunity present itself, the group will give it due consideration, having regard to the long-term prospects of the sector," he said.
SILK went up three sen or 5.66% to 56 sen today, giving it a market capitalisation of RM396.37 million.
IJM Land Bhd (IJM Land) has acquired a 98% equity stake in Hong Kong-based Larut Leisure Enterprise (Hong Kong) Ltd (LLE) through its wholly owned subsidiary, IJM Properties Sdn Bhd (IJMPRP), for HK$148.47 million (RM66.66 million), to be fully satisfied by way of partial capitalisation of a loan by IJMPRP to LLE.
The acquisition was effected today through a share subscription of 148.47 million shares in LLE, at a subscription price of HK$1 per share. This makes IJM Properties a 99% shareholder of LLE, the group said in a filing to Bursa Malaysia this evening.
The remaining 1% stake in LLE is held by Larut Overseas Ventures Sdn Bhd, a company linked to Talam Transform Bhd.
It noted that the acquisition will put the group in a firm position to benefit from the sale of a commercial complex, currently owned by LLE's wholly-owned unit, Jilin Dingtai Enterprise Development Company Ltd (JDED).
JDED is a developer of a commercial complex in the Xi'An Avenue at Jilin Province in China. The complex has eight retail and office levels, and two basement levels. The gross sales value of this complex is estimated to be RMB781 million (about RM440.03 million). JDED is now in the mist of obtaining the approvals required for the sale of the complex.
Shares of IJM Land up 2 sen or 0.61% to close at RM3.30, giving it a market capitalisation of RM5.14 billion.
Green Packet Bhd's operating profit growth will possibly exceed 10% in the current financial year ending June 30, 2015 (FY15), according to its newly appointed CEO Tan Kay Yen.
When asked if this means the group's consolidated accounts would return to black in FY15, Tan was cautious to note that this will depend on the performance of its 31%-owned associate company, Packet One Networks (Malaysia) Sdn Bhd (P1).
He said the group is currently expanding its footprint to the Middle East and Africa to tap the communications market there. Its current orderbook stands at about US$40 million (about RM139.2 million).
Its share closed unchanged 30 sen, giving it a market capitalisation of RM205.72 million.