Sarawak Cable, CBIP, MNC Wireless, UEM Sunrise, Sumatec, LPI Capital, Pestech



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KUALA LUMPUR (Apr 8): Based on corporate announcements and news flow today, the companies that may be in focus tomorrow (Thursday, April 9) could include the following: Sarawak Cable Bhd, CB Industrial Product Holding Bhd, MNC Wireless Bhd, UEM Sunrise Bhd, Sumatec Resources Bhd, LPI Capital Bhd and Pestech International Bhd.

Sarawak Cable Bhd said a joint venture (JV) involving its wholly-owned subsidiary, Trenergy Infrastructure Sdn Bhd, has secured a contract from Tenaga Nasional Bhd (TNB) worth RM26.89 million.

In a filing with Bursa Malaysia, Sawarak Cable (fundamental: 0.25; valuation: 1.4) said TNB has today awarded the tender to the JV between Trenergy Infrastructure and PTIS Engineering Sdn Bhd.

The tender was for the establishment of an air-insulated switchgear (AIS) at the Tanjung Langsat Industrial Estate switching station in Johor.

The contract commences today, and is targeted to be completed within 483 days from the commencement date.

CB Industrial Product Holding Bhd (CBIP) announced that its wholly-owned subsidiary Modipalm Engineering Sdn Bhd has bagged a RM49.8 million contract from United Plantations Bhd to build a palm oil mill at Ulu Bernam, Selangor.

In a filing with Bursa Malaysia this evening, CBIP (fundamental: 3; valuation: 1.8) said the contract is expected to contribute positively to its earnings for the financial years ending Dec 31, 2015 and 2016.

The mill will have a processing capacity of 60 tonnes per hour.

CBIP provides processing equipment and replacement parts for palm oil companies. The group also retrofits special purpose vehicles and other palm oil mill related equipments such as steam energy boilers.

Mobile technology solutions developer MNC Wireless Bhd saw 30 million shares representing a 31.76% stake traded off market today.

No details have yet surfaced on the parties involved in the transaction. However, it is worth noting that MNC’s current largest shareholder is Grand Sino Investment Ltd, which holds 30 million shares.

MNC’s second largest shareholder is system integration provider Metronic Global Bhd (fundamental: 1.25; valuation: 0.6) with a 16.1% stake. Metronic has emerged as a substantial shareholder in February this year.

According to Bloomberg, the 30 million shares transacted via off market today were moved in one block of 6.56 million shares, and five blocks of 4.69 million shares each totalling 23.44 million shares.

All shares were transacted at 32 sen each, amounting to a total transaction value of RM9.6 million. The transaction price was at a 5.88% discount to MNC’s closing share price of 34 sen today, which gave the firm a market capitalisation of RM32.1 million. The counter gained 2 sen or 6.25% at market close.

Within a period of six months, MNC’s (fundamental: 1.5; valuation: 0.3) share price has appreciated by 51% from levels of 22.5 sen in October last year.

UEM Sunrise Bhd today unveiled development plans for its flagship B (Zone B) parcel in Iskandar Malaysia, Johor, which has a gross development value (GDV) of RM42 billion.

Dubbed "Gerbang Nusajaya", Zone B is designed to promote growth via catalytic developments and strategic partnerships, said UEM Sunrise (fundamental: 1.5; valuation: 2) managing director and chief executive officer Anwar Syahrin Abdul Ajib.

To be developed over 25 years, the 4,551-acre development will serve as a commercial and business engine for Nusajaya and marks another milestone for the property developer.

Gerbang Nusajaya will comprise developments such as Nusajaya Tech Park (519 acres of integrated eco-friendly technology park), FASTrack Iskandar (a 300-acre motorsports city), Signature Residences, Gerbang Nusantara (affordable housing), as well as lifestyle and retail parks, campus offices, and residential precincts.

The development is located 5km from the Tuas Checkpoint via the Malaysia-Singapore Second Link with easy access to the Senai International Airport and Singapore's Changi International Airport.

Sumatec Resources Bhd has no plan to diversify its businesses as the company would continue to focus on exploration and production despite the sharp fall on crude oil prices, said its chief executive officer Chris Dalton.

Speaking after the company's extraordinary general meeting (EGM) today, he said Sumatec (fundamental: 2.4; valuation: 0.9) would drill more oil wells to expand its production capacity.

Presently, Sumatec is in the joint venture with CaspiOilGas (COG), and Markmore Energy (Labuan) (MELL) for the exploration of Rakushechnoye oil field in Kazakhstan, which has five wells.

Besides, the new asset Buzachi Neft which Sumatec is acquiring from Borneo Energy Oil Ltd, has seven oil wells in total.

According to him, the company is planning to increase its number of oil wells to 26 by year end from 12 currently.

To achieve its objective, Sumatec has set aside some US$20 million (approximately RM74 million) for capital expenditure (capex) this year for oil field development.

The total capex is expected to increase from US$30 million to US$40 million (approximately RM111 million to RM148 million) in the next year.

LPI Capital Bhd’s net profit jumped 13% to RM57.2 million or 17.23 sen a share in the first quarter ended Mar 31, 2015 (1QFY15) from RM50.58 million or 15.28 sen a share a year ago, contributed mainly by the better results of its wholly-owned insurance subsidiary, Lonpac Insurance Bhd.

Revenue also increased 5% to RM291.73 million from RM277.8 million in 1QFY14.

In a statement today, LPI Capital (fundamental: 2.1; valuation: 1.65) said Lonpac reported pre-tax profit of RM53.3 million in 1QFY15, an improvement of 13.6% over RM46.9 million in 1QFY14.

The group’s chairman and founder Tan Sri Dr Teh Hong Piow said Lonpac registered a lower claims incurred ratio of 49.1% in 1QFY15, reduced from 50.8% in 1QFY14.

The unit's combined ratio also improved to 70.7% for the quarter under review compared with 75.8% a year ago, while its underwriting profit rose 28% to RM42.1 million from RM32.9 million.

Pestech International Bhd's 60%-owned subsidiary Diamond Power Ltd (DPL) has procured all necessary legal documentation relating to the development of the 230 kilovolt (kV) Kampong Cham–Kratie transmission system project in Cambodia on a build–operate–transfer basis.

This signifies the full and effective ownership of the project by DPL, and marks the entry of the Pestech group as an independent power transmitter on a concession basis.

The cost for the development of the project is US$92.21 million, which commences today and is to be completed by Nov 30, 2017.

In a filing with Bursa Malaysia today, Pestech (fundamental: 0.9; valuation: 0.7) said the duration and validity of the power transmission agreement and novation agreement for implementation agreement will continue for 25 years from the scheduled commercial operation date.

The total collection of charges will amount to US$437.5 million for the entire 25-year concession period.

The Kampong Cham–Kratie transmission system project aims to bring electricity from the upcoming Hydro Power Lower Se San 2 hydropower plant in Stung Treng to Kratie and Kampong Cham.

(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.)