joint venture

 
 

Sanichi issued UMA query

PETALING JAYA: Sanichi Technology Bhd was issued an unusual market activity (UMA) query by Bursa Malaysia Securities Bhd on the sharp fall in price of the company’s shares recently.

Sanichi’s share price has fallen 53% to 8 sen today from 17 sen last Thursday (Dec 6). At 5pm’s close, Sanichi saw 46.66 million shares changing hands.

Earlier this week, Sanichi entered into a memorandum of understanding with FKS Holdings Pte Ltd to supply fresh produce for international food and beverage industry and provide Japanese fine dining cuisine. Sanichi owns 70% of the joint venture, while the balance 30% goes to FKS.


Protasco down on SUKE contract termination

PETALING JAYA: Prostasco Bhd’s share price fell as much as 6.81% to 20.5 sen this morning after its construction contract for the proposed Sungai Besi-Ulu Kelang Elevated Expressway (SUKE) project was terminated due to delays in the project.

At 11.18 am the stock was still trading at 20.5sen with 994,600 shares done.

The group told the stock exchange yesterday that its subsidiary HCM Engineering Sdn Bhd received a letter of termination from Turnpike Synergy Sdn Bhd (TSSB).

“The notice of termination was served by TSSB as a result of an overall delay and physical delay of the project undertaken by HCM-Hatimuda JV(joint venture),“ it said in a filing with the stock exchange.

HCM-Hatimuda JV was awarded with the project by TSSB in August 2016 for about RM315.8 million and was expected to complete it in 30 months period by Feb 28, 2019.

HCM and Hatimuda hold 40% and 60% of the JV.

Protasco, however, said as the project was solely financed, implemented and managed Hatimuda, hence the termination does not have any significant impact on the group’s net assets and earnings for the current financial year and year ending Dec 31, 2019.


Eco World eyes RM12 billion sales for FY19, FY20

KUALA LUMPUR: Eco World Development Group Bhd (EcoWorld Malaysia) and Eco World International Bhd (EcoWorld International) aim to achieve a combined sales of RM12 billion over two financial years ending October 31, 2019 (FY19) and FY20. EcoWorld Malaysia chairman Tan Sri Liew Kee Sin said the target was based on the bullish performance recorded by […]


LEAD (eaneco) EcoWorld aims RM12b sales, better earnings in 2019

* CHOOSE 1 PIX *

BY EE ANN NEE

[email protected]

KUALA LUMPUR: Eco World Development Group (EcoWorld Malaysia) and Eco World International Bhd (EcoWorld International), which are targeting to achieve RM12 billion combined sales over two financial years FY2019 –FY2020, are expected to achieve better earnings in FY2019 compared with FY2018 with its high unbilled sales.

EcoWorld Malaysia chairman Tan Sri Liew Kee Sin said EcoWorld Malaysia registered RM3.1 billion sales in FY2018 while EcoWorld International recorded RM3.3 billion sales.

Prospects of both companies are undergirded by the record high levels of locked-in progress billings of RM6.44 billion (EcoWorld Malaysia) and RM6.62 billion (EcoWorld International) respectively as at Oct 31, 2018, which provides clear earnings visibility for FY2019 – FY2020.

This position will be further strengthened by additional sales achieved in FY2019 especially after EcoWorld Malaysia kicks off its HOPE campaign and additional en-bloc sales to institutional investors for another two to three built-to-rent (BTR) sites sealed by EcoWorld International.

“We’ll do better (earnings wise for FY2019), looking at our unbilled sales. We’re the only guy with this unbilled sales, especially EcoWorld International, and we’ve been keeping all this unbilled sales as we can’t recognise it until completion. Now we can finally recognise the completion,” Liew told a press conference here yesterday.

He expects 2019 to be an equally tough year like 2018 with Brexit in the UK, stamp duty issues in Australia, US-China trade war and the uncertainty in Malaysia over policies for investment.

He said Eco World International, which turned profitable in FY2018, has its focus on the UK that comes with a million dollar BTR market.

“We’re going after the UK market, where margins are better. The market is much deeper and stronger despite Brexit,” said Liew.

EcoWorld International is acquiring land in the UK for the BTR business. EcoWorld London already has existing sites with the potential to deliver over 3,000 BTR units, which the group intends to realise over the next two to three years.

For the fourth quarter ended Oct 31, 2018, Eco World Malaysia’s net profit more than doubled to RM68.53 million from RM33.71 million a year ago mainly thanks to its share of results from joint-ventures, against a revenue of RM607.58 million, which was 33% lower compared with RM904.06 million in the previous year’s corresponding quarter.

For the full year period, its net profit fell 21% to RM165.59 million from RM209.65 million a year ago, while revenue fell 26% to RM2.17 billion from RM2.94 billion.

Meanwhile, Eco World International saw a net profit of RM70.08 million for the fourth quarter compared with a net loss of RM32.56 million a year ago, mainly due to recognition of revenue and profit by its joint venture projects in the UK following completion and commencement of handover of units sold to customers. Its revenue also increased significantly to RM4.89 million from RM27,000.

For the full year period, it posted a net profit of RM35.24 million compared with a net loss of RM87.63 million, while revenue went up 10 folds to RM4.90 million from RM488,000 a year ago.


EcoWorld aims RM12b sales in 2 years

KUALA LUMPUR: Eco World Development Group (EcoWorld Malaysia) and Eco World International Bhd (EcoWorld International) are targeting to achieve RM12 billion combined sales over two financial years FY2019-FY2020.

EcoWorld Malaysia chairman Tan Sri Liew Kee Sin said EcoWorld Malaysia registered RM3.1 billion sales in FY2018 while EcoWorld International recorded RM3.3 billion sales.

He said EcoWorld Malaysia and EcoWorld International’s positive results in FY2018 demonstrate that there remains sizeable markets to be captured in segments that are inherently resilient, even during cyclical downturns.

For the fourth quarter ended Oct 31, 2018, EcoWorld Malaysia’s net profit more than doubled to RM68.53 million from RM33.71 million a year ago mainly thanks to its share of results from joint-ventures, against a revenue of RM607.58 million, which was 33% lower compared with RM904.06 million in the previous year’s corresponding quarter.

For the full year period, its net profit fell 21% to RM165.59 million from RM209.65 million a year ago, while revenue fell 26% to RM2.17 billion compared with RM2.94 billion in the previous year’s corresponding quarter.

Meanwhile, Eco World International saw a net profit of RM70.08 million for the fourth quarter compared with a net loss of RM32.56 million a year ago, mainly due to recognition of revenue and profit by its joint venture projects in the UK following completion and commencement of handover of units sold to customers. Its revenue also increased significantly to RM4.89 million from RM27,000 in the previous year’s corresponding quarter.

For the full year period, it posted a net profit of RM35.24 million compared with a net loss of RM87.63 million, while revenue went up 10 fold to RM4.90 million from RM488,000 a year ago.

Liew said EcoWorld Malaysia will launch a new campaign in January 2019 called Hope (Home Ownership Programme with EcoWorld) that will incorporate two home ownership solutions to help customers own their homes.


Hitachi moves to buy ABB’s power grid unit for US$7b, says report

TOKYO, Dec 12 — Japan’s Hitachi is moving to purchase the power grid business of Swiss engineering giant ABB for a deal worth as much as US$7.05 billion, local media reported today. The electronics giant is in “the final stage of talks” to…


Sanichi eyeing RM500m from F&B partnership

PETALING JAYA: Sanichi Technology Bhd has entered into a memorandum of understanding (MoU) with FKS Holdings Pte Ltd to supply fresh produce for international food and beverage (F&B) industry and provide Japanese fine dining cuisine.

Sanichi owns 70% of the joint venture (JV), while the balance 30% goes to FKS.

The JV is expected to contribute up to RM500 million of order book over the next five years with healthy profits to Sanichi.

Sanichi group managing director Datuk Seri Pang Chow Huat said the JV expects to set up 25 outlets over the next three years across the region and major cities, namely Singapore, Kuala Lumpur, Hong Kong, Sydney and Jakarta, offering “Omakase” fine dining Japanese cuisine.

“The JV will also entail further collaboration with key suppliers in Japan of fresh produce such as seafood, wagyu beef, and vegetables to ensure the highest and strictest of industry food quality standards are maintained with reliable supply of fresh produce for the international F&B industry players,” he said in a statement.


The future of mobility; not one solution, but many

IN 1807, when he patented the first hydrogen-powered engine, François Isaac de Rivaz could have been forgiven for thinking he had found the future of transport. Yet here we are, more than 200 years later, still wrestling with the same question. What will drive us tomorrow? Some still say hydrogen. Some say battery electric power. […]


Encorp’s JV with Sinmah Capital for Bukit Katil project falls through

PETALING JAYA: Encorp Bhd’s plans to develop its Bukit Katil land in Malacca has hit another setback as plans to jointly develop the land with Sinmah Capital Bhd fell through.

In a filing with Bursa Malaysia, Encorp said the conditions precedent (CP) of the joint venture and shareholders agreement (JVSA) dated June 8, 2017 for the proposed joint venture were not fulfilled as of Dec 6, 2018.

The JVSA was entered into between Encorp Bukit Katil Sdn Bhd (EBKSB), Sinmah Development Sdn Bhd (SDSB) and Sinmah Development JV Sdn Bhd (SDJSB) in June last year.

“The CP period for the JVSA has lapsed and has not been extended by EBKSB and SDSB. As such, the JVSA has been rescinded and the parties shall revert to its original position prior to the JVSA,” said Encorp.

The expiry of the JVSA is not expected to have any financial effect on the earnings per share and net assets per share of Encorp.

Under the JVSA, the parties were to jointly develop 77.9 acres of the land into a mixed development comprising a medical college, hospital and residential properties with a gross development value of RM865 million.

SDSB is a wholly-owned unit of Sinmah Capital while SDJSB is a JV company set up to carry out the development project. EBKSB and SDSB held 70% and 30% stake respectively in SDJSB.

To recap, EBKSB had in October 2016 signed three memorandums of understanding (MoUs) with Kean Leng Construction Sdn Bhd, Tiong Nam Logistics Holdings Bhd’s unit Tiong Nam Properties Sdn Bhd and SDSB, to develop 640.9 acres of leasehold land in Bukit Katil.

However, in July last year, the MoU with Kean Leng Construction lapsed and the parties had mutually and amicably agreed not to further extend the validity period of the MoU. A month later, the MoU with Tiong Nam Properties lapsed, with no conclusion reached on the negotiations between the parties.

The MoU with Kean Leng Construction was to develop 49 acres while the MoU with Tiong Nam Properties was to develop 100 acres.

EBKSB is the master developer of the land, which belongs to Federal Land Development Authority (Felda). Felda holds about 67% stake in Encorp via Felda Investment Corp.

Encorp’s share price fell 2.22% or 1 sen to close at 44 sen today with 31,000 shares traded.


Worldwide plans RM1b WTE plant in Selangor

SHAH ALAM: Selangor state-linked firm Worldwide Holdings Bhd plans to invest RM1 billion to set up a waste-to-energy (WTE) facility in its existing sanitary landfill in Jeram, Selangor, according to its group CEO Datin Paduka Norazlina Zakaria.

The plant, which is set to be the largest and most modern WTE facility in Malaysia, will be fully funded by the group, in which the state government has provided an allocation of RM40 million for land acquisition.

“Some 20% (of the total investments) will be coming from our equity and the balance (80%) from the financial institutions,” Norazlina told a press conference in conjunction with the group’s signing ceremony today.

The group today signed a joint development agreement with Western Power Clean Energy Sdn Bhd – a joint venture company of China Western Power Engineering and Construction Co Ltd (CWPEC) and China Western Power International (CWPI) for the first phase of the WTE project.

CWPEC and CWPI, which have over 30 years of expertise in the new energy and environmental protection industry, will provide facilitation to Worldwide Holdings in terms of the project development as well as operations and maintenance of the facility.

The phase one of the project would involve an estimated investment of RM500 million, and an additional RM500 million for the second phase.

Norazlina noted that the WTE plant addresses all aspects of environmental issues through a modern and high-tech treatment facilities in strict compliance with the EU standards.

“The technology we are adopting has proven track record using similar waste characteristics in Malaysia. The solid waste is used as feedstock to heat up the furnace and create steam which propels the turbine to generate electricity,” she added.

With waste capacity of 1,000 tonnes per day, Norazlina said the first phase of the facility will produce between 20-25 MW (megawatt) of green energy, which is enough to power 25,000 households within the vicinity of the plant.

She said the first phase of the plant will be ready for commercial operation by 2022, while completion of the second phase is targeted by 2024.

At the same time, Norazlina said the group also plans to open a similar facility, possibly in its Tanjung 12 sanitary landfill in Kuala Langat, Selangor, with a development cost of around RM500 million.

The facilities are expected to reduce land use for landfill while supporting the government’s aspiration of increasing renewable energy generation to 20% by year 2025.

At present, Worldwide Holdings manages 5,000 tonnes of domestic waste per day at its six sanitary landfills in Selangor.