Wednesday, December 5th, 2018


PRG Holdings signs deal for stake in Capital World for RM28.2m

PETALING JAYA: Property and construction group PRG Holdings Bhd has agreed to take up a 16.7% interest in the enlarged share capital of Singapore Exchange Securities Trading Ltd Catalist-listed Capital World Ltd, for S$0.035 per new Capital World share or RM28.2 million.

Capital World, which is engaged in property development activities in Malaysia, has its flagship project “Capital City” in Johor Baru, an integrated development comprising of a shopping mall, hotel, serviced suites and serviced apartments.

The term sheet agreement it signed yesterday, came with an option to further subscribe for up to 205 million new Capital World shares (option shares) at an issue price of $S0.035 (RM0.1065) each upon completion of the Tranche 1 subscription. The closing market price of Capital World Shares on the SGX-ST as at the last practiceable date was S$0.054.

The term sheet is to set the parameters and the terms and conditions of the proposed subscription agreement. PRG plans to fund the deal via internally-generated funds and/or bank borrowings.

PRG will pay a S$5 million deposit for the stake, which be available for Capital World to use as working capital. In return Capital World will provide an investor collateral comprising available retail units in the Capital City Project amounting to SG$15 million (RM45.63 million). The undertaking will be terminated upon the completion of the Tranche 1 subscription.

PRG closed unchanged at 76 sen today, with some 52,100 shares changing hands.

Sunway Construction unit bags RM100m construction job

PETALING JAYA: Sunway Construction Group Bhd (SunCon) has bagged a construction job worth RM100 million in respect of the main building works for the proposed development in Jalan Peel, Jalan Shelley and Jalan Cheras, Kuala Lumpur.

The group said in the stock exchange filing that its unit Sunway Construction Sdn Bhd received the letter of award from SA Architects Sdn Bhd on behalf of Sunway Integrated Properties Sdn Bhd, which is SunCon’s major shareholder.

The proposed development comprises three floors of commercial area, eight floors of office area, 11 floors of serviced apartments, pedestrian decks and four floors of basement carpark.

The 29 months project is expected to be completed by April 30, 2021.

SunCon expects the project to contribute positively to its earnings from the financial year ending Dec 31, 2019 onwards.

Upon securing the project, the group’s new order book secured to-date amounts to RM1.5 billion.

RHB Research: Front-loading activities to spur Malaysia’s trade momentum

KUALA LUMPUR, Dec 5 — RHB Research Institute Sdn Bhd expects Malaysia’s strong trade momentum to continue in the coming months, as front-loading activities by Chinese importers will likely prevail following the trade ceasefire and…

Astro Q3 net profit up to RM153.2m

KUALA LUMPUR, Dec 5 — Astro Malaysia Holdings Bhd's net profit jumped to RM153.22 million in the third quarter ended Oct 31, 2018 (Q3 2018) from RM146.68 million in the same period a year ago. The direct broadcast satellite pay-TV service…

Ringgit closes lower against US dollar on profit-taking

KUALA LUMPUR: The ringgit closed lower against the US dollar today on continued profit-taking following the recent appreciation of the local note, dealers said.

At 6pm, the ringgit traded at 4.1525/1555 against the US dollar from Tuesday’s close of 4.1450/1500.

OANDA Head of Trading Asia-Pacific Stephen Innes, however, said the ringgit’s position was still relatively positive on the back of foreign inflow of funds into the bond market.

“The prospects of higher oil prices, coupled with news that the country’s exports grew 17.7% in October, year-on-year, may have also capped the ringgit’s decline,” he told Bernama.

Malaysia’s exports in October breached the RM90 billion mark for the first time to hit a record high of RM96.38 billion, from RM81.86 billion recorded in the same month last year, said the report on the Malaysia’s External Trade by the Ministry of International Trade and Ministry.

However, another dealer said the uncertainty surrounding the US-China trade negotiations last weekend in Argentina weighted on investors’ sentiment.

The ringgit, however, traded firmer against other major currencies.

It rose against the Singapore dollar to 3.0366/0392 from 3.0393/0441 on Tuesday and marginally strengthened against the yen to 3.6754/6784 from 3.6756/6810.

However, vis-a-vis the euro, the local unit edged up to 4.7077/7115 from 4.7299/7376 and appreciated against the pound to 5.2832/2891 from 5.3089/3166 yesterday. — Bernama

Techbond seals 30% premium in debut on Bursa

PETALING JAYA: Techbond Group Bhd, a developer and manufacturer of industrial adhesives and sealants, ended its debut on the Main Market of Bursa Malaysia Securities today 30% or 20 sen higher at 86 sen, giving it a market capitalisation of RM197.8 million.

“Today’s listing signals the beginning of a new phase in our corporate journey. As demonstrated from the public portion of our shares which was oversubscribed by 24.20 times, this strong interest from the members of the public will give us motivation to strive for better achievements and higher shareholders’ value in the coming years. We have developed a clear roadmap and set realistic targets which we are hopeful of achieving,” Techbond managing director Lee Seng Thye said at its listing ceremony.

The company’s initial public offering (IPO) entailed a public issue of 60.11 million new ordinary shares at an issue price of 66 sen per share.

Techbond is working to strengthen its reach in its existing markets, such as Vietnam, Malaysia, Indonesia and other countries, and to continuously develop and expand its product range of industrial adhesives and sealants. This is expected to provide sustainability and growth opportunities to the company in the years to come.

The IPO proceeds of about RM39.67 million will be used for, among others, the construction of a factory complex at the Vietnam-Singapore Industrial Park 2 in Binh Duong Province, Vietnam (VSIP2). They will also go to the purchase of machinery and equipment for VSIP2 and its existing factory complexes in Shah Alam.

Techbond began operations in 1996 in Malaysia and expanded to Vietnam in 2005. Over the years, Techbond expanded its presence to countries such as Indonesia, China, Thailand, Cambodia, Brunei, Liberia, Singapore, Sri Lanka, the Maldives, China (Hong Kong) and Uganda.

In conjunction with the listing, Rakuten Trade initiated coverage on Techbond with a “buy” call and a target price of 95 sen. Its target price is based on 15x price-to-earnings ratio of the Bursa Malaysia Industrial Production Index.

The valuation is premised on Techbond’s 22-year track record as a manufacturer of industrial adhesives and sealants with a strong presence in Asean; the fact that about 73% of the IPO proceeds will go to the second factory complex in Vietnam, to be completed by March 2020; that 14.9% of the proceeds for its Malaysian operations to add four production lines as well as the development of new adhesives types; and its commendable net margin of around 15%, with net profit growing steadily at a 12.3% compound annual growth rate for the past four years.

Rakuten Trade said it expects Techbond’s earnings per share to grow by 8% and 26% respectively in FY19 and FY20.

Bursa Malaysia, Asian peers close in the red

KUALA LUMPUR: Bursa Malaysia, together with its Asian peers, closed in the red on Wednesday, amid uncertainties related to the US-China trade war truce, dealers said.

At 5pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) was 6.72 points easier at 1,688.27 after opening 11.41 points weaker at 1,683.58.

The index moved between 1,683.03 and 1,688.60 throughout the day.

On the broader market, losers trounced gainers 519 to 251, while 365 counters were unchanged, 734 untraded and 21 others suspended.

Volume narrowed to 1.75 billion units, valued at RM1.52 billion, from 2.44 billion units worth RM2.08 billion.

A dealer said the trading hours for some of the US exchanges had been shortened today as a mark of respect for the late President George H.W. Bush.

“However, the trading so far has been lower following the decline in long-term US Treasury yields, making investors worry about the US economic outlook,” he said.

Regionally, Hong Kong’s Hang Seng declined 440.76 points or 1.62 per cent to 26,819.68, Singapore’s Straits Times Index fell 17.01 points or 0.51 per cent to 3,150.10 while Indonesia’s Jakarta Composite Index was 19.74 points or 0.32 per cent lower at 6,133.12.

Back home, among heavyweights, Maybank and Public Bank were flat each at RM9.42 and RM24.88, respectively, Tenaga lost 22 sen to RM13.93 and Petronas Chemicals rose six sen to RM9.21.

Of actives, Bumi Armada fell 1.5 sen to 17 sen, Sapura Energy shed one sen to 33.5 sen, Main Market debutant Techbond jumped 20 sen to 86 sen and Hubline was flat at four sen.

The FBM Emas Shariah Index decreased 71.79 points to 11,685.88, the FBM 70 shed 39.66 points to 13,566.04 and FBM Ace Index was 61.46 points weaker at 4,743.82.

The FBM Emas Index depreciated 48.28 points to 11,653.71 and the FBMT 100 Index edged down 43.04 points to 11,528.94.

Sector-wise, the Plantation Index eased 31.64 points to 6,905.32 and the Industrial Products and Services Index was 0.52 of-a-point weaker at 169.87 but the Financial Services Index gained 11.59 points to 17,457.81.

Main Market volume decreased to 1.27 billion shares, worth RM1.4 billion, from 1.91 billion shares valued at RM1.96 billion recorded yesterday.

Warrants turnover fell to 306.05 million units valued at RM81.96 million versus 334.85 million units worth RM78.31 million previously.

Volume on the ACE Market slipped to 170.32 million shares valued at RM36.67 million compared with 189.21 million shares worth RM42.02 million.

Consumer products and services accounted for 184.42 million shares traded on the Main Market, industrial products and services (322.43 million), construction (67.44 million), technology (81.73 million), SPAC (264,400), financial services (29.75 million), property (68.53 million), plantations (37.36 million), REITs (7.13 million), closed/fund (0), energy (344.58 million), healthcare (31.20 million), telecommunication and media (35.52 million), transportation and logistics (40.99 million), and utilities (18.15 million).

The physical price of gold as at 5pm stood at RM159.63 per gramme, down 22 sen from RM159.85 at 5pm yesterday. — Bernama

BFood posts 21% increase in Q2 net profit

PETALING JAYA: Berjaya Food Bhd’s second quarter net profit ended Oct 31 was 21.0% higher due to higher profit contributions from Starbucks Coffee operations in tandem with the higher revenue achieved.

In addition, the group had ceased consolidation of the losses from its Kenny Rogers Roasters (KRR) operations in Indonesia following its disposal in the previous financial year.

The group made a net profit of RM7 million for the quarter under review, compared with RM5.8 million for the corresponding quarter in the preceding year.

This was on 35.9% higher revenue of RM166.6 million, compared with RM160.8 million for the corresponding quarter in 2017 mainly due to the same-store-sales growth recorded by Starbucks as well as additional Starbucks cafes operating in Malaysia.

The board has recommended a second interim dividend of one sen per share in respect of the financial year ending April 30, 2019 to be payable on Jan 25, 2019. The entitlement date has been fixed on Jan 9, 2019. Total dividend declared for the financial period ended Oct 31 amounts to two sen per share.

The group is engaged in developing and operating the Starbucks Coffee brand in Malaysia and Brunei, developing and operating the KRR chain in Malaysia as well as Jollibean and two other brands in Singapore.

The key factors that affect the performance of all food and beverage businesses include mainly the festive seasons, tourism, eating out culture, raw material costs, among others.

The board believes that the renewed consumer confidence level, coupled with the group’s expansion plans, will fuel the group’s business growth and should augur well for the group’s operations going forward.

For the cumulative six month period ended Oct 31, the group posted a net profit of RM13.3 million, compared with RM11.2 million for the same period in 2017.

This was on 4.1% higher revenue of RM328 million, compared with RM315.2 million for the same period in 2017.

Bursa closes in the red amid doubts over US-China trade deal

SUBANG JAYA, Dec 5 — Bursa Malaysia, together with its Asian peers, closed in the red today, amid uncertainties related to the US-China trade war truce, dealers said. At 5pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) was 6.72…

Serba Dinamik acquires 30% of India’s eNoah iSolutions

PETALING JAYA: Serba Dinamik Holdings Bhd, which acquired a 30% stake in India based IT company, eNoah iSolutions India Pvt Ltd, will allocate RM30 million for the company to undertake projects in the coming year.

eNoah offers cutting edge business process outsourcing and IT solutions to Fortune 500 companies worldwide, in the integrated health, insurance, manufacturing and automotive domains.

The diversified group via its wholly owned subsidiary Serba Dinamik IT Solutions Sdn Bhd (SDIT), today entered into a share and purchase agreement with the 12 shareholders of eNoah for the stake buy.

Simultaneously, SDIT also inked a shareholders agreement with eNoah and the remaining existing shareholders of the company to regulate the affairs of the company.

The US$3.6 million or RM14.94 million acquisition will be funded by the proceeds raised during its initial public offering (IPO) last year.

For starters, the company is looking to bid for jobs in Singapore worth some S$500-800 million (RM1.52-2.43 billion).

“We are collaborating and tendering for some of the sizeable jobs in Singapore. (In the) Infrastructure sector they do have IT-related and other engineering components which we can contribute. So it is a multi-discipline bid we are participating in at the moment,” Serba Dinamik’s group CEO Datuk Dr Ir Mohd Abdul Karim Abdullah told reporters after the signing ceremony.

With the acquisition of interest in eNoah, the revenue contribution of the group’s IT segment could increase to 2-2.5% as the segment’s current contribution stood at below 2%.

In the third quarter ended Sept 30, Serba Dinamik’s other segments which include technical training, ICT solutions and supply of products and parts divisions saw a 110.3% jump in revenue to RM2.92 million from RM1.39 million.

Abdul Karim said through eNoah, Serba Dinamik is looking to tap into the populous Indian market as well as to leverage on its international client base in the US, Singapore and Australia.

He said it would also allow Serba Dinamik to tap into eNoah’s pool of talent and expertise.

In turn, eNoah will be leaning on Serba Dinamik for funding, regulating company affairs as well as expanding into the Middle East, where Serba Dinamik already has a footing in.

SDIT also intends to utilise eNoah’s capabilities to develop artificial intelligence centric solutions, augmented reality as well as system and software for robotic technology.