The Edge Markets
23rd June, 2016

KUALA LUMPUR (June 23): Based on corporate news flow and announcements today, stocks in focus tomorrow (Friday, June 24) could include: Vivocom, Sime Darby, AMMB Holdings Bhd (Ambank Group), Gabungan AQRS, Benalec, RCE Capital and NTPM.

Vivocom International Holdings Bhd‘s subsidiaries have received letters of award for construction works worth a cumulative amount of RM37.8 million in Sungai Buloh, Selangor, and Lorong Stonor, Kuala Lumpur.

Vivocom (formerly known as Instacom Group Bhd) said that Kiara 5 Development Sdn Bhd has appointed Vivocom Enterprise Sdn Bhd as its turnkey contractor for the construction of a 19-unit low-density apartment block in Kampung Ara, Sungai Buloh, for RM25 million. The project would commence upon site possession, with completion expected within 18 months.

Meanwhile, Vivocom’s unit, Neata Aluminium (Malaysia) Sdn Bhd, received and accepted a letter of award from Lim Hoo Seng Construction Sdn Bhd for the design, fabrication, supply, delivery and installation of aluminium and glazing works for a 41-storey serviced apartment on Lot 256, Section 63, Lorong Stonor for RM12.8 million.

The project shall be completed within 35 months from the date of commencement of the main contract works on March 28, 2016.

Both projects are expected to contribute positively to the earnings and net assets of Vivocom for the duration of the projects, it added.

Sime Darby Bhd has disposed of its entire interest in Hotel Equatorial Melaka to Permodalan Nasional Bhd (PNB) for RM55.36 million, cash, confirming an earlier report by The Edge weekly on Dec 7, 2015 that the diversified group was seeking a buyer for the Melaka Hotel.

Via its wholly-owned unit Sime Darby Property Bhd, the group has disposed of its 55% equity interest in Syarikat Malacca Straits Inn Sdn Bhd (SMSI), represented by 18.7 million ordinary shares, and its 78.6% equity interest in SMSI’s redeemable preference shares — which amounted to 9.43 million shares — in the deal.

The transaction was completed on Tuesday, according to Sime Darby’s bourse filing today.

AMMB Holdings Bhd (Ambank Group) has divested of the group’s entire 80% shareholding in AmTrustee Bhd (AmTrustee), a non-core operation, to several parties, including Rockwills International Group chairman Johari Low Abdullah, for RM9.13 million.

According to the group, its subsidiaries, AmBank (M) Berhad, AmInvestment Bank Berhad, AmCard Services Berhad and AmSecurities Holding Sdn Bhd, have disposed of their respective 20% equity stake in AmTrustee today.

Aside from Johari, the other buyers are: PL Advisory Services Sdn Bhd, PLAS Capital Sdn Bhd and PLAS Equity Sdn Bhd.

Gabungan AQRS Bhd would be selling 1,140 units of affordable homes along with 19.03 acres of a leasehold land located in Putra Perdana, Sepang, on which they will be built to PR1MA Corp Malaysia for RM314 million.

The construction company said its wholly-owned unit, Gabungan Strategik Sdn Bhd, has received a letter of intent (LoI) dated June 21 from PR1MA for the proposed purchase.

Under the deal, the government body will buy the 1,140 units of the company’s PR1MA homes, along with infrastructure, facilities and amenities from Gabungan Strategik and AQRS The Building Company Sdn Bhd, being the land owner of the project.

Barring unforeseen circumstances, a definitive contract is expected to be executed in three months from the date of the LoI. The project is estimated to be completed in three and a half years.

Benalec Holdings Bhd has received the Department of Environment’s (DoE) approval for the reclamation works for phases 2 and 3 of its Tanjung Piai Integrated Petroleum & Petrochemical Hub and Maritime Industrial Park project, which comprises a man-made island to be sited off the south-western coast of Johor.

The latest approvals came after it obtained the greenlight from DOE for the Phase 1 of land reclamation, amounting to 1,080 acres, early this year.

With the approval, Benalec can now proceed with the reclamation development of the hub and the industrial park with a total area of 3,487 acres (1,411 hectares), as well as the development of oil storage terminals and related marine facilities, which will be capable of accommodating vessels up to 350,000 dead weight (DWT).

Benalec has also confirmed it had obtained the development order and earthwork plan for its 1,672.8 acres Pengerang Maritime Industrial Park at Teluk Ramunia, Johor, on June 16.

RCE Capital Bhd (RCECap) announced it has established a Sukuk Murabahah asset-backed securitisation programme of up to RM900 million in nominal value, via Al Dzahab Assets Bhd. It has launched the first issuance of RM155.48 million under the programme on Tuesday (June 21).

RCEM, a wholly-owned subsidiary of RCE Capital, is the originator of the loan receivables, forming the underlying assets for the sukuk programme. It has also been appointed to act as servicer of the debt.

The sukuk programme is expected to increase the capital funds of the originator/RCEM for future business growth. As such, the sukuk programme is expected to contribute positively to the earnings of the RCE Group in future years, it said.

Meanwhile, NTPM Holdings Bhd’s net profit for the fourth financial quarter ended April 30, 2016 (4QFY16) fell 23.7% to RM10.05 million or 0.9 sen per share, from RM13.17 million or 1.2 sen a share a year ago, as margin declined on higher energy costs and labour-related expenditure.

NTPM reported a 7.3% increase in its 4QFY16 revenue to RM144.65 milllion, from RM134.79 million a year ago, mainly due to higher revenue from its paper products segment.

Its board of directors have proposed a single tier final dividend of 8% in respect of the financial year ended April 30, 2016 (FY16), which is subject to approval by shareholders at the upcoming annual general meeting.

For its full FY16, NTPM achieved a 35.2% rise in net profit for the financial year ended April 30 (FY16) to RM57.67 million or 5.1 sen a share, from RM42.64 million or 3.8 sen a share a year ago.

This was due to higher sales and margin improvements in its paper products segment, and the decrease in selling, distribution and advertisement cost for its personal care products segment.

Revenue for FY16 had also come in 9.9% higher at RM601.71 million, from RM547.51 million a year ago, on higher sales of baby diapers under its personal care segment.


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