Thursday, March 7th, 2019



Handal Resources to raise up to RM5.04m via private placement

PETALING JAYA: Handal Resources Bhd is looking to raise up to RM5.04 million via a proposed private placement to fund potential new projects.

In a filing with Bursa Malaysia, the group said it has proposed to undertake a private placement of up to 10% of the total number of issued shares to third party investors to be identified later.

Based on the indicative issue price of 31.53 sen per share, the proposed private placement is expected to raise gross proceeds of up to RM5.04 million. The group plans to use the proceeds as funding for potential new projects.

Handal’s wholly owned subsidiary Handal Offshore Services Sdn Bhd provides integrated crane services which includes the provision of maintenance and services for offshore pedestal cranes in the upstream oil and gas sector. It also fabricates new offshore pedestal cranes and provides offshore crane rentals to clients.

Through its other subsidiaries, Handal is also actively expanding in other areas of oil and gas, which includes provision of hydraulic workover units and other downstream maintenance support activities.

Handal has tendered for projects in the oil and gas sector with an expected total contract value of RM125 million.

The proceeds earmarked for funding of potential new projects will generally be used for capital expenditure, which may include the purchase of additional equipment and/or purchase of offshore cranes.

Bank Pembangunan to undergo ‘clean-up soon: New chairman

KUALA LUMPUR: Bank Pembangunan Malaysia Bhd (BPMB), which has been in the spotlight due to allegations of lax lending practices, is expected to undergo a “clean-up process” soon.

The bank is expected to be more meticulous in its credit standards and processes.

Newly appointed chairman Datuk Zaiton Mohd Hassan said the bank would not sacrifice its credentials as a development bank and would balance its roles going forward.

“We will clean up as soon as this year and we will have an incoming chief executive officer (CEO) and we will finalise the strategy once the CEO, the board and the management sit together to formulate the plan going forward,” she said TOday.

She was met by the media after jointly launched the Industry Digitalisation Transformation Fund with Finance Minister Lim Guan Eng.

Meanwhile, Lim had expressed his confidence in Zaiton’s leadership and her ability to turnaround the bank.

“We believe that BPMB will soon get a clean bill of health,” he said.

The bank had been alleged of giving out loans to politically connected parties as well as being lenient in its lending procedures.

Don’t be too optimistic on banking sector’s earnings growth, says research house

PETALING JAYA: Hong Leong Investment Bank (HLIB) Research cautioned that the street could be too optimistic on the banking sector’s earnings growth for 2019 and 2020, suggesting that downside risk is not being adequately accounted for.

The research house said despite the quarter ending with perfect hits, in which all eight banks under its coverage posted largely in-line results, closer scrutiny showed that they were backed mainly by falling loan loss provisions.

“That said, the street could be too optimistic on sector earnings growth in 2019-2020, making it a downside risk.”

HLIB said the annual earnings run rate projected by the street for 2019 and 2020 is RM25-RM26 billion, implying a compound annual growth rate (CAGR) of 5.5%, which is higher than the five-year historical level of 4.4%.

However, it is a tall order considering the softer present-day macro climate, which should trickle down to the banking sector.

“Erring on the conservative side, we are forecasting two-year earnings CAGR of 4.1% for the sector versus our previous estimate of 3.7%; this includes the upward profit revision made on Affin, AMMB, Maybank, and RHB during the Q4’2018 reporting season.”

HLIB said its “neutral” call on the banking sector remains intact as valuation is fair, adding that focus continues to be on value play opportunities and banking stocks with little risk of earnings downgrade by the street.

“Without strong growth catalysts and tracking near to the five-year historical growth pace, we find that current sector valuation is fair, since it is also trading close to its corresponding time series mean price-to-book ratio of 1.31 times.

“Under such context, we reckon stock picking will be more critical than broad sector selection and focus is on value play opportunities and banking stocks with little risk of earnings downgrade by the street. RHB and BIMB meet all these conditions, making them both ‘buy’ calls.”

Sterling falls to day’s low on Brexit impasse

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UK insurer Aviva warns outlook weaker on Brexit uncertainty

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Volkswagen India says will contest green court’s US$71m penalty

NEW DELHI, March 7 — Volkswagen will challenge a ruling by an Indian environment court that imposed a fine of 5 billion rupees (RM290 million) on the German carmaker for emission violations. An investigation by the Indian government in 2015 found…

KNM subsidiary bags US$4.86m Bahrain contract

KUALA LUMPUR, March 7 — KNM Group Bhd’s wholly-owned subsidiary FBM-KNM FZCO has won a US$4.86 million (RM19.8 million) contract to supply carbon steel pressure vessels from TTSJV WLL for the BMP Modernisation Programme-Bahrain. In a filing with…

‘Nearly a third’ of British billionaires moved to tax havens

LONDON, March 7 — Nearly a third of Britain’s billionaires have either moved or are relocating to tax havens, where some have broken UK law by bankrolling political parties, a major investigation said today. The Times newspaper published a…

BoE most likely to cut rates in a no-deal Brexit, says Tenreyro

LONDON, March 7 — The Bank of England is more likely to cut interest rates than raise them in the event of a no-deal Brexit, rate-setter Silvana Tenreyro said, the latest BoE official to back the idea of coming to the economy’s rescue if it…