KUALA LUMPUR (Aug 10): Here is a brief look at some corporate announcements and news flow on Wednesday (Aug 10), which include Malaysia Airports Holdings Bhd, Capital A Bhd, Malayan Flour Mills Bhd, PPB Group Bhd, MISC Bhd, Ranhill Utilities Bhd, Hup Seng Industries Bhd, Pertama Digital Bhd, Green Packets Bhd and KPower.
Malaysia Airports Holdings Bhd and Capital A Bhd have both decided to drop legal proceedings against each other that they initiated via their subsidiaries Malaysia Airports (Sepang) Sdn Bhd (MASSB) and AirAsia Aviation Group Ltd (AirAsia Group). The two groups have locked horns since the end of 2018 when AirAsia Group's Malaysian operations refused to collect the higher passenger service charges (formerly known as airport tax) from passengers that MAHB and MASSB demanded after the rate was raised to RM73 per passenger in 2018 from RM50, which escalated into a series of lawsuits between the groups.
Malayan Flour Mills Bhd's (MFM) partially owned Dindings Poultry Development Centre Sdn Bhd (DPDC) said that Malaysia Competition Commission (MyCC) has proposed to impose a financial penalty of RM70.02 million in the event that DPDC is found to have infringed the Competition Act 2010. However, MFM said DPDC strongly denies the allegation of any infringement of the provisions of the Act as mentioned in the proposed decision. Similarly, MyCC proposed to impose a financial penalty of RM46.36 million on FFM Bhd — an 80%-owned subsidiary of PPB Group Bhd.
MISC Bhd announced that it has, via a consortium with Nippon Yusen Kabushiki Kaisha (NYK), Kawasaki Kisen Kaisha Ltd (K-Line) and China LNG Shipping (Holdings) Ltd (CLNG), been awarded liquefied natural gas (LNG) shipping charter contracts by QatarEnergy for seven new LNG carriers that will be built by Hyundai Heavy Industries Co Ltd. MISC, however, did not specify the value and duration of the LNG shipping charter contracts. It has agreed on the principal terms for the consortium and each consortium member will have an equal equity interest of 25% in each awarded LNGC.
Ranhill Utilities Bhd has obtained a four-year extension of a power purchase agreement (PPA) from Energy Commission (EC) to develop a 50 MW large scale solar plant under large scale solar phase [email protected] ([email protected]) in Perak. This confirms a report by The Edge on Aug 2, which stated that LSS4 project owners have their power purchase agreements (PPAs) extended by four years to 25 years from 21 previously, citing sources.
A continuous escalation in input costs has slowed Hup Seng Industries Bhd's margin growth, leading the group to report a lower net profit of RM3.04 million for the second quarter ended June 30, 2022 (2QFY22). This was a 15.14% decline from the RM3.58 million reported for 2QFY21. Earnings per share (EPS) fell to 0.38 sen from 0.45 sen a year earlier. Quarterly revenue, meanwhile, rose 11% to RM73.81 million in 2QFY22 from RM66.5 million in 2QFY21, mainly due to higher selling prices. Going forward, the biscuit maker said a sharp increase in global commodity prices and the government's gradual withdrawal of food and fuel subsidies, which have put pressure on the group's input costs, remain a concern.
Pertama Digital Bhd has gained the majority vote from its shareholders to dispose of its entire equity interest in China-based textile subsidiary BeTop to Gifted Investments Ltd for a total consideration of RM70 million. However, it triggered paragraph 8.03A(2)(a)(bb) of the Main Market Listing Requirements when it completed its asset sale.
Green Packet Bhd has disposed of its remaining shares in G3 Global Bhd for RM5.78 million. The remaining amount of 115.25 million G3 Global shares, representing a 3.97% stake was sold in the open market via a direct business transaction on Wednesday (Aug 10). These were among 305.25 million warrants that had been converted into shares by Green Packet in May this year.
KPower Bhd's unit KPower Development Sdn Bhd (KDSB) has received approval from the Terengganu government to develop affordable and mixed housing development on 18.959ha of land in Kuala Nerus district, Terengganu. It said 4.85% of the gross development value will be attributable to the state's affordable housing fund, which is under the purview of the housing department of Terengganu's state secretary.