Stocks In Focus (22-3-2018)

(March 21): Based on corporate announcements and news flow today, companies in focus on Thursday (March 22) may include: Sapura Energy Bhd, Properties Group Bhd, UMW Holdings Bhd, MBM Resources Bhd, Sumatec Resources Bhd and YFG Bhd

Sapura Energy Bhd has clinched an engineering, procurement, construction, installation, and commissioning (EPCIC) contract for the Pegaga Development Project from Mubadala Petroleum (MDC Oil & Gas (SK 320) Ltd).

The contract is for EPCIC works at the offshore integrated central gas processing platform facility in Block SK320, offshore waters of , .

The work is expected to be completed by the third quarter of 2021 and would contribute positively towards the group’s earnings for the ending Jan 31, 2019, and the financial periods within the duration of the contract.

The risk factors affecting the contract include execution risks such as availability of skilled manpower and materials, changes in pricing, weather conditions and/or political, economic and regulatory conditions.

IOI Properties Group Bhd has created an online community engagement platform via its mobile app ‘IOI Community’.

This facility will enable two-way communication between the property management team and residents.

IOI Properties said it was necessary for the company to move ahead in tandem with the development of ‘Industry 4.0’ and remain relevant as property technology, or proptech, increasingly becomes part of daily life.

The IOI Community app will enhance communication with IOI Properties’ customers, leverage on real-time customer feedback to enable prompt customer service and utilise data analytics to continuously improve on products and services delivery.

RAM Ratings has placed the AA2 rating of UMW Holdings Bhd‘s RM2 billion five-year Islamic medium-term notes (MTN) programme on its rating watch with a positive outlook.

The rating agency cited the group’s proposed acquisitions of a stake in MBM Resources Bhd and Perusahaan Otomobil Kedua Sdn Bhd (Perodua) as catalysts that are expected to strengthen UMW’s business and financial profiles, and possibly raise the group’s rating.

RAM noted that while the total RM1.4 billion consideration for the acquisitions will be almost entirely funded by equity, up to RM1.1 billion may initially be satisfied through cash payments funded by bridging loans.

This would, in turn, be repaid using proceeds from a rights issuance at a later date, the respective entitlements of which are expected to be subscribed in full by its major shareholder.

Sumatec Resources Bhd has agreed to settle a suit against Hoe Loeng Corp Ltd and Ebony Ritz Sdn Bhd for RM27 million.

Under a settlement agreement before the Mediation Centre, Sumatec will pay RM7 million in cash to Ebony Ritz. It will also issue RM20 million worth of redeemable convertible preference shares (RCPS) to Ebony Ritz.

The parties have agreed to end all litigation upon Sumatec’s successful completion of its corporate exercise no later than Oct 30, 2018.

Soon-to-be-delisted YFG Bhd has submitted an appeal to Bursa Malaysia requesting an extension of time to submit a regularization plan following an earlier rejection by the stock exchange.

The Main Market-listed YFG said it was appealing against the commencement of delisting procedures on the securities of the company as well as for the stock exchange to reconsider the rejection and to approve the extension of time to submit its new regularisation plan.

Given that the appeal was submitted within the appeal timeframe (by March 21), the removal of the securities of the company from the official list of Bursa Malaysia on March 26 shall be deferred pending the decision by Bursa Malaysia on the appeal.

Source: The Edge Markets

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