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China Mobile to widen its reach in enterprise segment

PETALING JAYA: China Mobile International Malaysia Sdn Bhd (CMI Malaysia) which has been providing telecommunication related connectivity services to telco carriers, is looking to grow contributions and expand its reach in the enterprise segment of its Malaysian operations.

The group, which has had a footing in Malaysia for over a period of two years, provides telecommunications services such as roaming, IP Transit and data services to major telco's in the country. As for the enterprise segment it provides cloud services and ICT solutions among others to businesses across various industries.

According to country head Hew Chee Chung, with a 70% revenue contribution, its telecommunication service segment contributes to the bulk of its earnings, while the enterprise segment's contribution stood at 30%.

Hew said CMI Malaysia is also looking to even out the contributions from both segments.

CMI is a unit of New York and Hong Kong Stock Exchange listed China Mobile Communications Corporation (CCMC).

CCMC is dubbed as the largest telecom operator in the world by network scale and subscriber base, and is among the top in terms of market capitalisation and brand value.


Palm oil battling image problem seeks to tap green energy demand

TOKYO, April 19 — Japanese scientists are encouraging South-east Asia’s palm oil producers to chop down trees to help save forests. Japan International Research Centre for Agricultural Sciences and IHI Enviro Corp, a subsidiary of IHI Corp,…


Bumi Armada still a ‘buy’ despite woes in Nigeria ops

PETALING JAYA: Analysts have not changed their call on Bumi Armada Bhd despite continued problems at its Nigerian operations.

AmInvestment Bank Bhd is keeping its “buy” recommendation on Bumi Armada Bhd with an unchanged forecasts and fair value of RM1.22 per share.

In a note today, the research house said it continues to view the risk profile of the group as substantively improved with its clientele’s upcoming full acceptances of the floating production, storage and offloading (FPSO) vessels Olombendo and Kraken, supported by minimal Q4’17 impairment charges.

On Tuesday, the group announced that it had received a notice from Erin Petroleum Nigeria Ltd, requesting immediate shutdown of operations on its wholly owned FPSO Armada Perdana, which is currently operating in OML 120 block, Oyo field, off Nigeria.

It also received a notice of seizure of crude oil produced and to be produced there.

Recall that in June last year, Bumi Armada suspended Armada Perdana’s operations following irregular payments for the operation and maintenance (O&M) services together with long-delayed charter payments by Erin Energy Corp.

However, since then, the group has allowed oil to be produced from the field to flow into Armada Perdana’s cargo tanks.

As Erin’s debts are still outstanding even after a series of meetings with Nigeria’s Department of Petroleum Resources and Erin Energy, the oil was not to be offloaded from Armada Perdana until a debt resolution was reached with the stakeholders.

AmInvestment said it sees this as a negative development as it understands that the announced FY18 credit risk impact estimated at RM30 million (7% of FY18 earnings) involves the demobilisation of the vessel from the field, and not the remaining outstanding debt of Erin, of which some provisions have already been made.

“As negotiations were still ongoing, management has not revealed the full potential outstanding claim against Erin at this stage, which involves a shutdown, not a termination of the charter contract,” it added.

On a separate note, PublicInvest Research said while the news flow is negative, the research house is neutral on this development as issues with Erin is common knowledge and had already been ongoing since 2015.

“Our earnings estimates and valuations have already excluded these contributions much earlier. We retain our “neutral” call with an unchanged target price of 90 sen,” it said.


Bumi Armada still a ‘buy’ despite problems in Nigeria operations

PETALING JAYA: Analysts have not changed their call on Bumi Armada Bhd despite continued problems at its Nigerian operations.

AmInvestment Bank Bhd is keeping its “buy” recommendation on Bumi Armada Bhd with an unchanged forecasts and fair value of RM1.22 per share.

In a note today, the research house said it continues to view the risk profile of the group as substantively improved with its clientele’s upcoming full acceptances of the floating production, storage and offloading (FPSO) vessels Olombendo and Kraken, supported by minimal Q4’17 impairment charges.

On Tuesday, the group announced that it had received a notice from Erin Petroleum Nigeria Ltd, requesting immediate shutdown of operations on its wholly owned FPSO Armada Perdana, which is currently operating in OML 120 block, Oyo field, off Nigeria.

It also received a notice of seizure of crude oil produced and to be produced there.

Recall that in June last year, Bumi Armada suspended Armada Perdana’s operations following irregular payments for the operation and maintenance (O&M) services together with long-delayed charter payments by Erin Energy Corp.

However, since then, the group has allowed oil to be produced from the field to flow into Armada Perdana’s cargo tanks.

As Erin’s debts are still outstanding even after a series of meetings with Nigeria’s Department of Petroleum Resources and Erin Energy, the oil was not to be offloaded from Armada Perdana until a debt resolution was reached with the stakeholders.

AmInvestment said it sees this as a negative development as it understands that the announced FY18 credit risk impact estimated at RM30 million (7% of FY18 earnings) involves the demobilisation of the vessel from the field, and not the remaining outstanding debt of Erin, of which some provisions have already been made.

“As negotiations were still ongoing, management has not revealed the full potential outstanding claim against Erin at this stage, which involves a shutdown, not a termination of the charter contract,” it added.

On a separate note, PublicInvest Research said while the news flow is negative, the research house is neutral on this development as issues with Erin is common knowledge and had already been ongoing since 2015.

“Our earnings estimates and valuations have already excluded these contributions much earlier. We retain our “neutral” call with an unchanged target price of 90 sen,” it said.


7-Eleven Malaysia announces dividend share, cash payout

PETALING JAYA: 7-Eleven Malaysia Holdings Bhd, which today announced cash and shares distribution as dividends, is acquiring a 60% stake in foodstuff supplier Café Decoral Sdn Bhd for RM600,000.

The group is paying out an interim single-tier cash dividend of 2.7 sen per ordinary share; and a share dividend distribution of 18.5 million treasury shares on the basis of one treasury share for every 60 shares held.

7-Eleven told Bursa Malaysia that its wholly owned subsidiary Convenience Shopping (Sabah) Sdn Bhd had on April 18 entered into a share sale agreement with Ng Kin Chen, Ng Lee Chin and Public Yong Tow Foo Sdn Bhd for the proposed acquisition.

Café Decoral presently only supplies ready-to-eat fresh food such as fried fishball, nasi lemak, fried rice, fried mee hoon and sandwiches to about 300 7-Eleven stores in the Klang Valley.

For the financial year ended April 30, 2017, it recorded an audited net profit of RM6,000 with audited net assets of RM187,000.

7-Eleven said the proposed acquisition, which will be financed through internally generated funds, will enable it to venture directly into the production of ready-to-eat fresh food business for the benefit of 7-Eleven stores.

Barring any unforeseen circumstances, the deal is expected to be completed in mid-2018.


Keck Seng Malaysia pays RM120m to buy shares in AccorInvest

PETALING JAYA: Keck Seng Malaysia Bhd (KSM) has subscribed to €25 million (RM120 million) worth of shares and Tracking Preferred Equity Certificates (TPEC) issued by A2I Holdings S.A.R.L, a conduit to purchase shares in hotel real estate group AccorInvest Group S.A.

The subscription was made through Brosna Ltd, a subsidiary incorporated in Hong Kong, through internally generated funds.
A2I is raising funds from various investors by issuing shares and TPECs.

The €25 million proceeds received by A2I from the subscriptions for the shares and TPECs will be used to acquire the AccorInvest shares no later than June 30, 2018.

An investment in AccorInvest is expected to provide an opportunity for KSM to gain exposure to a diversified portfolio of hotels mainly located in Europe with resilient income stream and opportunities for value creation.

Accor Invest has a current portfolio of 891 hotels, the majority of which are located in Europe, in the economy and midscale segments. Of the total, 324 are owned and 567 are operated under fixed or variable-rent leases.

Ho Kian Guan, Ho Kian Hock, Ho Kian Cheong, Chan Lui Ming Ivan, Ho Chung Kain, Ho Chung Hui and Ho Chung Tao are deemed to have interest in the transaction by virtue of their directorship and/or shareholdings in Keck Seng Investments (Hong Kong) Ltd, which is also investing €25 million in AccorInvest. Keck Seng Investments (Hong Kong) Ltd is listed on The Stock Exchange of Hong Kong Limited.

Ho Kian Guan is also personally investing €5 million (RM24 million) in AccorInvest under the same terms and conditions offered to KSM.


ACE Market-bound Tri-Mode to raise RM26.4m in IPO

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KUALA LUMPUR (April 18): ACE Market-bound Tri-Mode System (M) Sdn Bhd, an integrated logistics provider, is looking to raise as much as RM26.4 million from its initial public offering (IPO) exercise. The group expects to enlarge its market capitalisation of about RM101.3 million upon its listing on May 11. As part of the IPO exercise, Tri-Mode will offer to the public 43.21 million new shares at a retail price of 61 sen per share. The final retail price is subjected to the bookbuilding. Its group managing director Datuk Hew HanRead More


Supermax continues climb for third day in a row

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KUALA LUMPUR (April 18): Supermax Corp Bhd continued its climb upwards today, gaining 7 sen or 2.6% before the noon break to trade at RM2.76, after analysts highlighted the group’s strong earnings prospects and downplayed the recent political noise. The counter was the ninth top gainer on the stock exchange as at 2.12pm, having seen 4.93 million shares crossed. The rubber glove maker is currently trading at 20 times its earnings, with a market capitalisation of RM1.81 billion. Analysts told The Edge Financial Daily yesterday that investors should look at the group’sRead More


Opec-Russia talks set to keep oil cuts even as glut vanishes

DUBAI, April 18 — Opec and Russia will meet in Saudi Arabia this week after all but banishing a global oil glut. While looming political crises threaten to tighten supplies further, the group seems determined to keep its cuts in place. Almost…


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.