Tuesday, December 4th, 2018

 

I-Stone Group Bhd plans IPO on Ace Market

PETALING JAYA: I-Stone Group Bhd is planning an initial public offering (IPO) on the Ace Market of Bursa Malaysia Securities Bhd.

The group is principally involved in the manufacturing automation business segment, with a focus on specialised automation machines.

Its products are mainly sold to brand owners and contract manufacturers of home appliances, industrial products, automotive parts and components, which has manufacturing facilities in Malaysia, Singapore and the Philippines.

The IPO entails a public issue of 244.30 million shares, representing 20% of its enlarged issued share capital, as well as an offer for sale of 122.15 million shares, representing 10% of its share capital by way of private placement to selected investors, according to its draft prospectus.

Of the public issue shares, 5% are allocated for the public, 1% for eligible directors and employees, 10% for private placement to identified bumiputra investors and 4% for private placement to selected investors to be identified.

Proceeds from the IPO will be used for product development, repayment of borrowings, construction of new design & development centre, capital expenditure and working capital requirements.

I-Stone’s net profit surged 73% to RM8.22 million in 2017 from RM4.75 million in 2016. For the first half of 2018, its net profit stood at RM7.29 million.

The IPO will provide the group the financial flexibility to pursue future growth opportunities as and when they arise.

The group has, in October, centralised all its manufacturing operations at its new factory in Kulai, Johor.

“We also plan to enhance our manufacturing capabilities and introduce new products. This is expected to provide us with the flexibility to manufacture for other customers and reduce our sales concentration risk on our major customers, in particular Dyson Group of Companies,” said I-Stone.


TRC Synergy wins RM498.7m construction project

KUALA LUMPUR: TRC Synergy Bhd, via its wholly-owned subsidiary Trans Resources Corporation Sdn Bhd, clinched its largest contract year-to-date worth RM498.7 million from Petronas majority owned Putrajaya Holdings Sdn Bhd, the master developer of Putrajaya.

A filing with Bursa Malaysia shows that this project involves the construction and completion of an integrated development project at Precinct 8 of Putrajaya, with a contract duration of 57 months.

With the addition of this new contract, TRC Synergy’s order book will effectively surge to RM3.0 billion.

TRC Synergy managing director Tan Sri Sufri Mohd Zin said the group continues to deliver a resilient performance and a sustainable growth despite the challenging business environment in the domestic construction sector. Moving forward, the group will remain focused in executing the best strategies to meet the ever-evolving needs of its existing and prospective clients, and the challenges in the industry.

“Having clinched new contracts in 2018 with a collective RM716 million, we now have a strong order book of RM3.0 billion as well as a clear revenue and earnings visibility stretching into 2021. We are confident that TRC Synergy’s contract winning momentum will continue, riding on our existing tenders book as well as new biddings to be participated by the group going forward,” he added.


Export likely sustained in October despite uncertain outlook

KUALA LUMPUR: RAM Ratings expects Malaysia’s export growth to accelerate to 10.8% in October, despite that being the first full month of the latest round of American import tariffs on China (from Sept 4 onwards).

This is, as global value-chain activities, will likely be sustained by front-loaded orders amid greater concerns (up until the recent announcement on Dec 1 over the rise in US tariff rates – from 10% to 25% ) on US$200 billion (RM826 million) of Chinese imports that had earlier been scheduled to take effect on Jan 1, 2019.

The rating agency said the slated increase has now been put on hold following recent talks between US president Donald Trump and China president Xi Jinping at the G20 Summit in Buenos Aires, Argentina as they have agreed to a 90-day truce to allow time for fresh negotiations.

“Although this pauses an escalation of the trade war for now, uncertainties still cloud external demand prospects.

“As such, the current front-loaded demand momentum could taper off temporarily in the lead-up to the end of the 90-day window next February,” said RAM’s head of research Kristina Fong.

Overall, the trade surplus is projected to come in at RM14.3 billion in October. Despite the global volatility and uncertainty, RAM Ratings said Malaysia is still an attractive destination for foreign direct investment, as underlined by the increase in investment approvals in the first half of 2018, which should help stimulate more industrial activities and export growth over the longer term.


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Bursa Malaysia easier at close on cautious trading

KUALA LUMPUR: Bursa Malaysia was lower at Tuesday’s close as investors were cautious after the conclusion of the Group of 20 meeting, with some still pondering the possible outcome of the 90-day trade war truce between the US and China, dealers said.

At 5pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) eased 4.73 points to 1,694.99 from Monday’s close of 1,699.72, after opening 2.91 points weaker at 1,696.81.

The index moved between 1,688.88 and 1,698.51 throughout the morning session.

On the broader market, losers trounced gainers 525 to 282, while 361 counters were unchanged, 700 untraded and 21 others suspended.

Volume narrowed to 2.44 billion units, worth RM2.08 billion, from 2.52 billion units valued at RM2.29 billion.

A dealer said besides the local bourse, its regional peers were also trading on a downtrend after posting gains at Monday’s closing.

“Traders are in doubt that both the US and China would finally be on the same page and resolve their differences before the 90-day deadline is up,“ he said.

It was reported that the US government had agreed to keep the tariffs on US$200 billion worth of Chinese imports at the 10% rate and not raise them to 25% on Jan 1, 2019.

China, meanwhile, gave a green light to purchase a “very substantial” amount of agricultural, energy, industrial and other products from the US to reduce the trade imbalance between the two countries.

The barometer index was cushioned from weakening further by the higher global oil prices.

The crude Brent price rose 1.12% to US$62.38 per barrel.

Investors will next be focusing on the Organisation of the Petroleum Exporting Countries meeting, scheduled at the end of the week to provide some clues for the market outlook.

Back home, among heavyweights, Maybank fell one sen to RM9.42, Tenaga declined 16 sen to RM14.14, Petronas Chemicals shed two sen to RM9.15, while Public Bank was flat at RM24.88.

Of actives, Bumi Armada fell 2.5 sen to 17 sen, Sumatec Resources slipped half-a-sen to two sen, Sanichi gained half-a-sen to 17 sen and Hibiscus Petroleum added three sen to RM1.11.

The FBM Emas Syariah Index decreased 29.82 points to 11,757.67, the FBM 70 shed 44.31 points to 13,605.70 and FBM Ace Index was 61.78 points weaker at 4,805.28.

The FBM Emas Index depreciated 34.27 points to 11,701.99 and the FBMT 100 Index edged down 33.53 points to 11,571.98.

Sector-wise, the Plantation Index eased 10.80 points to 6,936,96, the Industrial Products and Services Index was 0.37 of-a-point weaker at 170.39 and the Financial Services Index lost 39.96 points to 17,446.22.

Main Market volume increased to 1.91 billion shares valued at RM1.96 billion from 1.86 billion shares, worth RM2.13 billion, recorded yesterday.

Warrants turnover fell to 334.85 million units worth RM78.31 million versus 441.26 million units valued at RM106.46 million.

Volume on the ACE Market slipped to 189.21 million shares worth RM42.02 million compared with the 219.12 million shares valued at RM56.53 million registered yesterday.

Consumer products and services accounted for 203.02 million shares traded on the Main Market, industrial products and services (678.55 million), construction (92 million), technology (117.25 million), SPAC (130,000), financial services (41.78 million), property (67.81 million), plantations (34.26 million), REITs (4.3 million), closed/fund (1,400), energy (503.91 million), healthcare (25.82 million), telecommunication and media (69.86 million), transportation and logistics (41.16 million), and utilities (28.43 million).

The physical price of gold as at 5pm stood at RM159.85 per gramme, up 25 sen from RM159.60 at 5pm yesterday. — Bernama


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