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Pan Borneo Expressway a catalyst for Sabah development – Musa Aman

corporatenews10 feb2017

KOTA KINABALU (April 19): The Sabah Pan Borneo Expressway project launched in March 2015 serves as a catalyst that will stimulate and drive the state’s economic growth comprehensively, said Sabah Chief Minister Tan Sri Musa Aman. He said the project would also help to stimulate the state’s development agenda as outlined under the Hala Tuju Agenda of Sabah and the Sabah Development Corridor (SDC). “The Pan Borneo Expressway is a pledge by the Barisan Nasional (BN) government under the leadership of Prime Minster Datuk Seri Najib Tun Razak in theRead More


T7 Global down despite securing new contracts

PETALING JAYA: T7 Global Bhd's share price dropped one sen or 1.92% this morning, despite securing three new contracts with a total value of RM63 million.

At 11.07am, the stock, which was among the top active counters, stood at 51 sen. Its market capitalisation stood at RM216 million.

Yesterday, the group said the first contract was from Murphy Sarawak Oil Co Ltd for the provision of maintenance services, spare parts and consumables for Gastec nitrogen generator for Murphy production operations.

The second contract was awarded by Marine Crest Technology Sdn Bhd for the upgrade of combat management system for Royal Malaysian Navy's vessel.

It also received a letter of award from CP Energy & Services Sdn Bhd for the supply of equipment and upgrading works.


Pantech to see higher earnings: TA

PETALING JAYA: TA Securities is expecting increased revenue and earnings margin for Pantech Group Holdings Bhd’s as a result of the US’ move to impose tariffs on steel imports and the inflow of orders from Petronas’ Refinery and Petrochemical Integrated Development (Rapid) project in Pengerang, Johor.

The research house said Pantech is set to indirectly benefit from the rising prices of hot rolled coil (HRC) which is a main raw material for Pantech, due to the tariffs.

“We note that HRC is Pantech’s main raw material. Hence, higher prices will increase the group’s material costs.

Nevertheless, we understand from management that the increased costs are mostly passed on to its clients,” the research house said.

Thus, we opine that rising prices of HRC will benefit Pantech, as its clients choose to stock up on inventories in anticipation of increased product prices whilst increased costs are passed on. Therefore, this will increase demand for Pantech’s products and result in margin and revenue expansion,” it expanded.

In addition to that, Pantech is expecting orders from Rapid to the tune of RM200 million per annum in FY18-19.

While Rapid is expected to be completed and begin operations next year, orders are not expected to dry up on the back of sales from Pantech’s warehouse arising from maintenance activities at the site, and development of the larger Pengerang Integrated Complex (PIC), with a projected remaining capital expenditure of US$11 billion (RM42.8 billion).

“Thus, we do not expect orders from Pengerang to slow down until full completion of PIC. Additionally, according to management, there are several big gas projects in Sabah and Sarawak such as Pegaga and Bokor gas fields,” the research house said.

For the first nine months of FY18, Pantech’s earnings grew 87.3% on the back of strong demand from Rapid and high utilisation of its plants.

This trend is expected to continue into the fourth quarter of the financial year with estimated quarterly earnings of RM8-12 million, on the back of 90% utilisation rate at its stainless steel and steel plants and in trading revenue of about RM100 million underpinned by Rapid orders.

The research house maintained a “buy” call on the stock at a higher target price of 78 sen (from 69sen) 11x CY19 price-to-earnings ratio (PER), which also represents Pantech’s 5-year historical mean PER.

Pantech’s shares fell 1.80% to 54.5 sen with 380,900 shares done, today.


Pantech to enjoy higher revenue, earnings margin: TA Securities

PETALING JAYA: TA Securities is expecting increased revenue and earnings margin for Pantech Group Holdings Bhd’s as a result of the US’ move to impose tariffs on steel imports and the inflow of orders from Petronas’ Refinery and Petrochemical Integrated Development (Rapid) project in Pengerang, Johor.

The research house said Pantech is set to indirectly benefit from the rising prices of hot rolled coil (HRC) which is a main raw material for Pantech, due to the tariffs.

“We note that HRC is Pantech’s main raw material. Hence, higher prices will increase the group’s material costs.

Nevertheless, we understand from management that the increased costs are mostly passed on to its clients,” the research house said.

Thus, we opine that rising prices of HRC will benefit Pantech, as its clients choose to stock up on inventories in anticipation of increased product prices whilst increased costs are passed on. Therefore, this will increase demand for Pantech’s products and result in margin and revenue expansion,” it expanded.

In addition to that, Pantech is expecting orders from Rapid to the tune of RM200 million per annum in FY18-19.

While Rapid is expected to be completed and begin operations next year, orders are not expected to dry up on the back of sales from Pantech’s warehouse arising from maintenance activities at the site, and development of the larger Pengerang Integrated Complex (PIC), with a projected remaining capital expenditure of US$11 billion (RM42.8 billion).

“Thus, we do not expect orders from Pengerang to slow down until full completion of PIC. Additionally, according to management, there are several big gas projects in Sabah and Sarawak such as Pegaga and Bokor gas fields,” the research house said.

For the first nine months of FY18, Pantech’s earnings grew 87.3% on the back of strong demand from Rapid and high utilisation of its plants.

This trend is expected to continue into the fourth quarter of the financial year with estimated quarterly earnings of RM8-12 million, on the back of 90% utilisation rate at its stainless steel and steel plants and in trading revenue of about RM100 million underpinned by Rapid orders.

The research house maintained a “buy” call on the stock at a higher target price of 78 sen (from 69sen) 11x CY19 price-to-earnings ratio (PER), which also represents Pantech’s 5-year historical mean PER.

Pantech’s shares fell 1.80% to 54.5 sen with 380,900 shares done, today.


T7 Global clinches three contracts worth RM63m

PETALING JAYA: T7 Global Bhd has bagged three contracts with a total value of RM63 million.

The offshore oilfield services provider told Bursa Malaysia that its subsidiary Wenmax Sdn Bhd had on January 15 received a letter of award from Murphy Sarawak Oil Co Ltd for the provision of maintenance services, spare parts and consumables for Gastec nitrogen generator for Murphy production operations.

This contract is from January 15, 2018 until the completion of the contract which is expected to be ended on January 14, 2021, with an option to extend for an additional one year.

The second contract was awarded by Marine Crest Technology Sdn Bhd to T7 Global's wholly owned subsidiary T7 Marine Sdn Bhd for the upgrade of combat management system for Royal Malaysian Navy's vessel, which is expected to be completed in August 2019.

T7 Global's wholly owned subsidiary Tanjung Offshore Services Sdn Bhd also received a letter of award from CP Energy & Services Sdn Bhd for the supply of equipment and upgrading works.

The duration for the contract is from April 17, 2018 until the completion of the contract which is expected to be ended on October 16, 2018.

At the noon break, T7 Global shares gained 2.5 sen or 5.2% to 51 sen on some 10.04 million shares done.


Malaysia does not solely depend on China for FDIs, says Treasury sec-gen

KUCHING, April 16 — Malaysia receives foreign direct investments (FDIs) from various countries and does not depend solely on China, said Treasury Secretary-General Tan Sri Dr Mohd Irwan Serigar Abdullah. Refuting claims that Malaysia was…


EPF exiting healthcare provider Columbia Asia

PETALING JAYA: The Employees Provident Fund (EPF) is selling its close to 30% interest in Columbia Asia Sdn Bhd (CASB) for an undisclosed sum, according to its annual report released on Friday.

The fund has reclassified the cost of investment in CASB of RM203.21 million as assets held-for-sale, with the sale to be completed this month.

It said the decision to sell was approved by its investment panel on Nov 7, 2017. The identity of the buyer could not be immediately ascertained.

EPF currently owns a 12.65% stake in KPJ Healthcare Bhd and an 8.7% interest in IHH Healthcare Bhd.

According to the 2017 annual report other assets held for sale are 38 units of investment properties of CIMB Group Holdings Bhd and one unit of land at Petra Jaya, Sarawak. These assets are in the process of disposal and are expected to be sold completely this year.

CASB is an international private healthcare company incorporated in Malaysia in 1996.

According to its latest filing with the Companies Commission of Malaysia, EPF owns a 29.7% interest in CASB and Columbia Asia Healthcare Sdn Bhd, previously known as Columbia Pacific Healthcare Sdn Bhd has 69.4%. The remainder is held by eight individuals. Columbia Asia Healthcare is fully owned by US-based fund International Columbia US LLC.

According to its last audited financial results, CASB made a net profit of RM31.3 million on revenue of RM506.0 million for the financial year ended March 31, 2017. It has RM1.2 billion in assets and RM539.7 million in liabilities.

Columbia Asia Group is owned by more than 150 private equity companies, fund management organisations and individual investors.

While it is not clear which operations are parked under CASB today, Columbia Asia as a group currently has 12 medical facilities in Malaysia, 12 in India, three in Vietnam, three in Indonesia and one in Kenya.

The hospitals of Columbia Asia provide an array of specialised services including general surgery, paediatrics, obstetrics & gynaecology, orthopaedics, internal medicine, oncology, cardiology, neuro surgery, bariatric surgery and more.

Columbia Asia Group received additional equity investment of US$210 million (RM820 million) from existing shareholders to build new hospitals and deepen the level of specialty care in existing facilities. A majority of the funds were invested by Tokyo-based Mitsui & Co Ltd.

As of March this year, the group has added 342 beds across facilities in Malaysia, India and Indonesia. It aims to have more than 4,000 beds in Asia by 2025.


Your anti-palm oil policy is ‘colonialism’, Malaysian group tells UK supermarket chain

KUALA LUMPUR, April 13 — British supermarket chain Iceland should be “ashamed” of its anti-palm oil policy which will deprive thousands of poor farmers in Asia, Africa and Latin America of much-needed income, a Malaysian group of…


Airlines go into overdrive to get voters home

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KUALA LUMPUR (April 13): The country’s two biggest carriers MAS and AirAsia are going into overdrive to ensure more voters are able to get back to their hometowns to vote on May 9, when Malaysia heads to the polls. AirAsia is offering fixed fares on all its domestic routes on May 8 to May 10 — but only for new bookings for the travel period and subject to availability, the budget carrier clarified in a statement today. Today’s announcement came after AirAsia group CEO Tan Sri Tony Fernandes announced viaRead More


AirAsia working hard to add more flights for GE14, says Fernandes

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KUALA LUMPUR (April 13): Low-cost carrier AirAsia Bhd group chief executive Tan Sri Tony Fernandes said the airline was working towards making available more flights to enable Malaysians to vote in the upcoming 14th general election (GE14). In a series of tweets this morning, Fernandes said, “Team is now working hard to put on more flights.” “Kudos to the revenue team for working overtime and doing this for the people of Malaysia. Go home and vote #GE14 #ForThePeople,” he said. Meanwhile, AirAsia said it is offering fixed fares on allRead More