Wednesday, January 9th, 2019
KUALA LUMPUR: CORE Precious Development Sdn Bhd has started construction of two serviced residence towers and one serviced apartment tower at the Tun Razak Exchange (TRX) following a groundbreaking ceremony today.
The project, targeted for completion by end-2022, will be sold exclusively via a sales preview by the middle of 2019.
Present at the ceremony were CORE managing director Frank Feng, TRX City Sdn Bhd CEO Datuk Azmar Talib, China Communications and Construction Group chairman Zhao Hui and representatives from WCT Holdings Bhd.
In a joint statement today, they said the development was positioned to be the frontier of global living and emphasised a modern urban living lifestyle catering to financial professionals and expatriates.
Feng said the company was confident of helping TRX to achieve its goal of becoming a financial centre and business hub.
“As an international investor, our vision is to collaborate with TRX City and our valued shareholders in transforming TRX into a world class financial centre in this region.
“We aim to create a modern urban living lifestyle within this TRX project,” he said.
PETALING JAYA: AmInvestment Bank has upgraded VS Industry Bhd (VSI) to a “buy” call as it believes the recent sell-off offers opportunities for investors to accumulate VSI shares, premised on its long-term prospects tied to solid execution track record, despite short-term prospects being dampened by a string of headwinds.
“Despite the expectations of declining order flow for its key customer, we understand that the group is currently in various stages of discussion with more than five prospective multinational corporation customers to secure new orders that would fill the excess capacity in its facilities,“ the research house said in a report today.
VSI’s profit warning last month spooked the investors, sending the stock to a low of 63 sen from its recent high of RM1.59. It closed 2.04% higher at 75 sen today on 18.23 million shares done.
It had said that the second-half financial performance will be affected by the anticipated lower sales order.
At the recent AGM, VSI managing director Datuk Gan Sem Yam had shared that the ongoing US-China trade war has opened up opportunities for VSI through receipts of enquiries from US MNCs looking to shift or diversify their manufacturing bases to Southeast Asia.
“We concur that VSI is well-equipped to take on these opportunities given its new facilities with 300,000 sq ft combined production space, which include a 120,000 sq ft factory and new 180,000 sq ft factory.
“Furthermore, VSI continues to undergo cost rationalisation exercise to streamline its operations in China in light of uncertainties from the US-China trade war, higher operating costs and intense competition faced,“ AmInvestment Bank said.
The research house added that VSI boasts a healthy balance sheet with its net asset per share standing at 84 sen with net gearing of 0.2 times as at Oct 31, 2018. At the current price, VSI is trading at nine times its price-earnings ratio (PE), way below its two-year historical average PE of 19 times.
“All in, we believe VSI’s fundamentals remain intact and recommend a buy on weakness.”
Despite the rating upgrade, AmInvestment Bank has lowered VSI’s fair value to RM1.04 from RM1.31, pegged to a lower 2019 forecast PE of 14 times (previously 15 times) amid the anticipated order slowdown in 2019 and reduced market capitalisation.
“We cut our FY19-FY21 forecasts further by 6-15% mainly on account of lower printed circuit board assembly revenue tied to reduced contribution from VSI’s key customer in 2HFY19.”
PETALING JAYA: Malaysian Rating Corp Bhd (MARC) has affirmed its “AAA” ratings on Putrajaya Holdings Sdn Bhd’s (PJH) three sukuk programmes.
The sukuk programmes are the RM370 million sukuk musharakah programme (due 2030); RM3 billion sukuk musharakah programme (due 2032); and RM1.5 billion sukuk musharakah medium-term notes (MTN) programme (due 2033).
“The ratings affirmation is mainly premised on PJH’s stable and sizeable rental income from the Malaysian government as the principal lessee of government buildings in Putrajaya under long-term lease-and-sublease agreements. The ratings also incorporate the credit strength of PJH’s government-linked major shareholders and its developmental track record as the master developer of the federal administrative centre in Putrajaya,“ MARC said in a statement.
The stable ratings outlook reflects MARC’s expectation that PJH’s credit profile would remain commensurate with the ratings and will receive continued support from its key shareholders.
As at end-October 2018, PJH had delivered 40 government building projects with a total gross built-up area of 37.5 million sq ft under the lease-sublease arrangement with the government. It currently has only one ongoing government building construction project, the Parcel F development in Putrajaya.
This project, which is being undertaken by its wholly owned subsidiary Putrajaya Bina Sdn Bhd, comprises nine government buildings and is nearing completion. The Parcel F project will generate an additional annual lease rental of about RM216 million for the group.
The rating agency said while government building projects under the lease-sublease arrangement provide assured rental streams, its non-government development projects continue to face challenging conditions given the prevailing weak property market.
“Nonetheless, PJH is less reliant on these projects to meet its financial obligations. Its annual lease rental income of about RM1.4 billion is more than sufficient to meet principal repayments of between RM500 million and RM685 million per year over the next five years.”
As of end-September 2018, the take-up rate for ongoing residential projects remained moderate, albeit with some improvement, at 42.8% (9M2017: 37.3%). During the year, PJH also launched its third Perumahan Penjawat Awam 1Malaysia (PPA1M) project in Putrajaya.
LONDON, Jan 9 — World stocks extend their gains to hit a near-four week high and oil prices rose today on optimism that the United States and China may be inching towards a trade deal, soothing fears an all-out trade war could hit a slowing global…
KUALA LUMPUR: With the introduction of DuitNow by Payments Network Malaysia Sdn Bhd (PayNet) recently, AmBank customers are now able to transfer money instantly and securely using the recipient’s mobile phone number.
Customers wishing to receive DuitNow fund transfers using their mobile number just need to perform a simple one-time registration via AmOnline, AmBank’s internet banking platform, to link their mobile number to their bank’s account number.
Alternatively, customers may choose their MyKad or MyPR identity card numbers, army or police numbers, passport numbers or business registration numbers to link with their bank accounts in order to receive money.
“DuitNow provides convenience and efficiency to the Malaysian payment landscape, and we have designed and incorporated it in AmOnline as a simple and easy to use feature for our customers. We have also introduced other new value-added features into our online banking platform to provide a more efficient online banking experience. These new features are part of our AmOnline digital roadmap and the promise of a new feature every three months,” said AmBank Group COO Datuk Iswaraan Suppiah.
Amongst latest features made available in AmOnline is the One Step New Credit Card Activation. The first of its kind in Malaysia, it offers a three-in-one process to activate card, set pin through registering for AmOnline allowing new customers to be able to use their card within minutes of receiving it.
The AmOnline mobile app, which is accessible 24 hours a day, seven days a week, is now equipped with the quick access function that allows customers quicker access into their accounts. Customers are able to view their account balances by just looking at their phone via Face ID, a facial recognition system or Touch ID, a fingerprint recognition feature.
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