Faber, Cahya Mata Sarawak, Protasco, Gamuda, Bertam, Kumpulan Jetson and Star Publications



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KUALA LUMPUR (April 2): Based on corporate announcements and news flow today, companies that may be in focus tomorrow (Friday, April 3) could include: Faber Group, Cahya Mata Sarawak, Protasco, Gamuda, Bertam Alliance, Kumpulan Jetson and Star Publications.

Faber Group Bhd revealed that the hospital support services (HSS) concession agreement it inked with the government on March 11, carry a total contract value of RM3.07 billion.

In an announcement with Bursa Malaysia today, Faber (fundamental: 2.10; valuation: 0.9) said the first concession agreement was entered into on March 11 this year, between its wholly-owned subsidiary Faber Medi-Serve Sdn Bhd (FMS) and the government. The contract value is RM307.32 million per annum.

The job entails the provision of hospital support services (HSS) at contract hospitals in Perak, Pulau Pinang, Kedah and Perlis.

It also said that services agreements entered into by its associate companies — One Medicare Sdn Bhd and Sedafiat Sdn Bhd — with the government, are worth RM77.68 million and RM68 million respectively. 

The agreements are for the provision of HSS for six months at contract hospitals in Sabah (One Medicare) and Sarawak (Sedafiat).

Cahya Mata Sarawak Bhd (CMSB) is acquiring a 50% stake in Sarawak-based telecommunications infrastructure and services company Sacofa Sdn Bhd for RM186.79 million or RM4.40 per share.

In a filing with Bursa Malaysia today, CMSB (fundamental: 3; valuation: 1.5) said it has signed a conditional share purchase agreement with the State Financial Secretary (SFS) on behalf of the Sarawak state government for the proposed acquisition.

SFS currently has a 70.51% equity interest in Sacofa, while the remaining shares belong to Celcom Axiata Bhd(15.12%), Sarawak Information Systems Sdn Bhd (7.57%) and Yayasan Sarawak (6.8%).

CMSB said its board of directors is of the view the acquisition is strategic and that Sacofa fits into the group’s vision.

As the business in Sacofa is already income-generating, the proposed acquisition is expected to be income accretive and is envisaged to increase the overall business profitability of the CMSB.

Sacofa was granted a 20-year concession to build, manage, lease and maintain telecommunication towers in Sarawak on March 5, 2002. It currently operates more than 600 telecommunications towers, leased to local telecommunication players such as Celcom, DiGi and Maxis.

The transaction, expected to be completed by the second half of this year, is expected to increase the future earnings of the group for the financial year ending Dec 31, 2015 (FY15).

Protasco Bhd said its wholly-owned unit HCM Engineering has been awarded a RM77 million contract to undertake the maintenance works of federal roads in Sarawak from thePublic Works Department.

Its filing to the local bourse today said the job includes the construction of “four overtaking lanes in Sibu and Bintulu divisions”. The works are expected to be completed within 12 months.

Protasco (fundamental: 1.15; valuation: 1.2) said this award is expected to contribute positively to its financial results for the fiscal year ending Dec 31, 2015.

Bertam Alliance Bhd’s managing director (MD) Lim Nyuk Foh has emerged as a substantial shareholder of the company, after the Sabah businessman wiped up some 12 million shares that represent a 5.8% stake in the property developer from the open market.

Lim, who is also the MD and founder of timber products maker Priceworth International Bhd, has been accumulating Bertam’s shares from the open market since late February this year, according to various filings to Bursa Malaysia.

Lim, 51, was appointed Bertam’s MD in mid-October last year, succeeding Tan Ai Tong who was re-designated as executive director.

Other than helming Bertam (fundamental: 1.05; valuation: 1.2) and Priceworth (fundamental: 0.35; valuation: 1.2), Lim is also the non-independent and non-executive director of Sarawak Consolidated Industries Bhd (fundamental: 0.55; valuation: 0.6), in which he owns a collective direct and indirect interest of 29.23% as of Jan 13 this year.

A planned wholesale complex undertaken by the property development arm of Gamuda Bhd (fundamental: 2.2; valuation: 1.5) is expected to reap RM10 billion in revenue within the next ten years.

The project, known as GM Klang Wholesale City at Bandar Botanic, Klang in Selangor, is being jointly developed by Gamuda Land Sdn Bhd and GM Klang Sdn Bhd, according to GM Klang's press invite.

Upon full completion of the five-phase development, GM Klang said there will be more than 5,000 wholesalers operating. Total turnover, which reached RM1.5 billion in 2014, is expected to rise to RM10 billion within the next ten years.

According to GM Klang, phase one of the project comprises a five-level block that will be launched this Saturday by Selangor Mentri Besar Azmin Ali. Gamuda is also the developer of Bandar Botanic.

Kumpulan Jetson Bhd's 60%-owned unit Strategic Jewel Sdn Bhd is proposing to acquire 100% of the issued and paid-up share capital of Homegrown Development Sdn Bhd (HDSB) for RM4.2 million.

The proposed acquisition is to be undertaken together with the purchase of a piece of land measuring 0.9965 ha for RM8.5 million in Mukim Ulu Kelang, Daerah Gombak, Kampong Klang Gates Bharu, from Welly City Sdn Bhd.

Kumpulan Jetson (fundamental: 0.35; valuation: 1.2) said in a Bursa Malaysia filing today that the acquisitions are in line with the group’s objective to expand in the property development business and to increase its land bank to widen its revenue base.

It said HDSB, which is a housing developer, has obtained the development order, the endorsed building plan and the approval for the conversion of land use of the property from agricultural to residential.

The conversion, it added, is for the development of the land into a residential housing scheme comprising detached and/or semi-detached houses and/or medium cost houses.

The proposed acquisitions are expected to be completed within 4 months.

Star Publications (M) Bhd is acquiring the entire stake in a dormant company which will soon own US exhibition assets to diversify its income source.

In a Bursa Malaysia filing today, Star (fundamental: 2.5; valuation: 1.2) said its 64.1%-owned Singapore-listed unit Cityneon Holdings Ltd is acquiring Singapore-based Victory Hill Exhibitions Pte Ltd (VHE) from Philadelphia Investments Pte Ltd for S$21 million (RM56.77 million).

Under the sale and purchase agreement between Cityneon and Philadelphia Investments, Cityneon has proposed to undertake a rights issue to partly fund the acquisition of VHE.

VHE is a dormant company but by or upon the completion date of the acquisition, VHE will own and operate the assets of US-based Victory Hill Exhibitions LLC.

Victory Hill Exhibitions LLC is an exhibition services provider. It has a license agreement with Marvel Characters B.V. to provide exhibition services for Marvel.

(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.)