Wednesday, July 24th, 2019


Switzerland the world’s most-innovative in latest rankings

NEW DELHI, July 24 — Switzerland is the world’s most innovative country for a second consecutive year while Asian giant India made the biggest strides among major economies, a global indicator showed today. The annual Global Innovation Index —…

Vivendi to appoint banks tomorrow for sale of Universal stake, says source

PARIS, July 24 — French media group Vivendi is set to appoint several investment banks tomorrow for the sale of up to 50 per cent of Universal Music Group, its most-prized asset, said a source close to the matter. It has been a year since the…

Ford shutters French transmission plant

BORDEAUX, July 24 — A Ford plant that produced transmissions in southwestern France shut down for good today after the carmaker brushed aside efforts save some operations at the facility that had employed up to 3,600 people. The factory in…

US stocks flat on earnings deluge, tech crackdown

NEW YORK, July 24 — Wall Street stocks were little changed today as markets largely shrugged off disappointing results from Caterpillar and Boeing and a US antitrust probe into technology giants. Investors were also keeping an eye on high-stakes…

US, China to resume trade talks next week

WASHINGTON, July 24 — US and Chinese are restarting negotiations to in an effort to resolve the year-long trade dispute, with two days of talks due next week, US Treasury Secretary Steven Mnuchin said today. The talks in Shanghai on Tuesday and…

US slaps US$5b fine, curbs on Facebook in privacy probe

WASHINGTON, July 24 — US regulators today slapped a record US$5 billion (RM20.6 billion) fine on Facebook for privacy violations in a settlement requiring the world’s biggest social network to “submit to new restrictions and a modified…

Genting stocks jump on optimism over outdoor theme park opening

PETALING JAYA: Genting Malaysia Bhd and Genting Bhd were the top gainers on Bursa Malaysia today, driven by the possible earlier-than-expected opening of Resorts World Genting’s (RWG) outdoor theme park.

Genting Malaysia surged 7.25% to close at RM3.70 with 57.67 million shares traded, while Genting rose 3.31% to close at RM6.87 on volume of 11.96 million shares.

According to Maybank IB Research, RWG’s full-page job advertisements for its theme park division in local newspapers over the last two weeks suggest that the outdoor theme park could be ready to open soon.

“We are optimistic that the outdoor theme park will drive Genting Malaysia’s next phase of earnings growth regardless of whether it opens in the first quarter of 2021 as we expect or earlier,” it said in a research note today.

The outdoor theme park, which is the subject of a US$1 billion (RM4.12 billion) lawsuit between Genting Malaysia and Fox/Disney, is about 95% complete as at July 2019.

Prior to Genting Malaysia’s fallout with Fox/Disney in November 2018, the company also took out job advertisements for 20th Century Fox World (the outdoor theme park’s original name) in May 2018.

Back then, the group said it would open 20th Century Fox World in late 2018 or early 2019, implying a lead time of six to nine months between hiring and opening.

“Applying the same lead time suggests to us that the outdoor theme park could be opened in the first or second quarter of 2020, which is much earlier than our first quarter of 2021 forecast,” said Maybank IB Research.

It upgraded Genting Malaysia to “buy” from “hold”, with a revised target price of RM3.80 from RM3.40 previously.

“At this point, we are unsure if Genting Malaysia will reconcile with Fox/Disney, partner other studios, share royalties with them or even operate the outdoor theme park on its own. Thus, we think it best to leave our earnings estimates which assume that outdoor theme park will open in the first quarter of 2021 unchanged.”

DNeX’s NSW contract extended for 2 years

PETALING JAYA: Dagang NeXchange Bhd’s (DNeX) contract for the National Single Window (NSW) for trade facilitation has been extended for two years by the government.

In a filing with Bursa Malaysia, DNeX said its wholly owned subsidiary Dagang Net Technologies Sdn Bhd has received a letter informing the company that the government has approved the contract extension in principle subject to terms and conditions to be agreed upon.

The contract extension will commence from Sept 1, 2019 until Aug 31, 2021.

DNeX has been the operator of the NSW for trade facilitation since its launch in 2009, providing six core services – ePCO, ePermit, ePermitSTA, eManifest, eDeclare and ePayment.

Hibiscus reaches first oil in North Sabah PSC

PETALING JAYA: Hibiscus Petroleum Bhd’s wholly owned subsidiary SEA Hibiscus Sdn Bhd has achieved the first oil in the North Sabah enhanced oil recovery production sharing contract (PSC).

The group told Bursa Malaysia that it had drilled and completed the SJ‐105A well, the first of three infill wells being drilled as part of the St Joseph infill drilling project.

“The SJ‐105A wellbore was drilled as a horizontal well consisting of approximately 2,400ft of horizontal section which encountered approximately 1,000 feet of oil in the targeted reservoirs of the St Joseph oil field.”

“The SJ‐105A well was subsequently brought online and achieved a stabilised production flowrate of slightly above 1,000 barrels of oil per day, with 0% watercut, exceeding expectations.”

SEA Hibiscus had received the approval from Petroliam Nasional Bhd (Petronas) for the St Joseph infill drilling project field development plan on Dec 21, 2018.

The St Joseph infill drilling project is a production enhancement project which, together with the South Furious 30 infill drilling project and SF30 early water injection project, is part of a seven‐well campaign being executed under the North Sabah PSC in 2019.

Gadang slips into the red in Q4

PETALING JAYA: Gadang Holdings Bhd saw a net loss of RM3.39 million in the fourth quarter ended May 31, 2019 against a net profit of RM23.31 million a year ago due to recognition of some variation orders for completed construction projects in the preceding year and the significantly lower profit reported for the Capital City project in the current year.

Its revenue however, was 7.3% higher at RM196.9 million compared with RM183.51 million previously.

The board has proposed a first and final dividend of 1.2 sen per share for the quarter under review.

Gadang’s net profit more than halved to RM48.49 million from RM96.38 million in the previous year, while revenue increased 17.7% to RM699.89 million from RM594.77 million.

The group is cautiously optimistic that major construction initiatives such as the revival of the East Coast Rail Line project and the development of Bandar Malaysia infrastructure components will be positive for the group.

It said the construction division will continue to bid for new contracts to enhance its order book as well as focusing on project execution to ensure timely completion of all on-going projects. Its existing outstanding order book stands at RM1.24 billion which will be able to sustain its operation for the next two years.

Meanwhile, Gadang said its property division will be supported by total unbilled sales of RM119.34 million.