Daily News Summary by The Edge - Velesto, Boustead Plantations, UEM Sunrise, RHB, S P Setia, Yong Tai, Berjaya Corp, Three-A Resources, Gamuda, EcoWorld, Bintai Kinden, Euro Holdings

 Based on corporate announcements and news flow today, companies in focus tomorrow (March 25) may include Velesto Energy Bhd, Boustead Plantations Bhd, UEM Sunrise Bhd, RHB Bank Bhd, S P Setia Bhd, Yong Tai Bhd, Berjaya Corp Bhd, Three-A Resources Bhd, Gamuda Bhd, Eco World Development Group Bhd, Bintai Kinden Corp Bhd and Euro Holdings Bhd.

Oil rig operator Velesto Energy Bhd sank into the red in the fourth quarter of financial year 2020 (4QFY20) ended Dec 31, 2020, reporting a net loss of RM493.29 million from a net profit of RM10.2 million a year earlier. Quarterly revenue shrank 44.38% to RM99.06 million from RM178.1 million, mainly due to lower activities in both drilling and oilfield services segments. For the full FY20, Velesto reported a net loss of RM491.73 million from a net profit of RM33.22 million. Annual revenue fell 18.5% to RM546.94 million from RM670.76 million a year ago.

Boustead Plantations Bhd reported a net profit of RM27.46 million for 4QFY20 ended Dec 31, 2020, compared with a net loss of RM172.73 million a year earlier, on higher palm product prices. The higher palm product prices also lifted quarterly revenue by 27.09% to RM227.63 million, from RM179.1 million a year ago. The group declared a second interim dividend of 0.5 sen, to be paid on April 28. For the full FY20, the group's net profit surged 70.17% to RM42.95 million, from a net loss of RM144.01 million in the previous year, while revenue increased 32.2% to RM763.05 million from RM577.2 million.

UEM Sunrise Bhd saw its net loss for 4QFY20 ended Dec 31, 2020 widen to RM134.66 million, from RM28.87 million in the preceding quarter, on lower contributions from joint ventures and associates, as well as additional impairment of assets due to Covid-19. Revenue, however, surged 181% to RM611.64 million, from RM217.44 million in 3QFY20, mainly due to settlement of the sale of the en bloc serviced apartment to Scape Australia Management Pty Ltd. For the full FY20, the property developer recorded a net loss of RM277.28 million versus a net profit of RM221.6 million in the previous year. Full-year revenue plunged 60.92% to RM1.14 billion, from RM2.91 billion.

Chairman of the Employees Provident Fund Tan Sri Ahmad Badri Mohd Zahir has taken over the chairmanship of RHB Bank Bhd, effective today. Ahmad Badri will remain as the chairman of EPF. RHB said Ahmad Badri succeeds Tan Sri Azlan Zainol, who retired on Feb 28 after being with the group since 2005.

Property developer S P Setia Bhd said it has identified several potential areas for business diversification. It said logistics, e-commerce, healthcare and assisted senior living are among the markets to be explored by the group.

Property developer Yong Tai Bhd's subsidiary has been appointed the exclusive mining operator to undertake exploration works on a 100ha site in Bukit Kenderak in Pahang's Lipis district. Yong Tai said wholly-owned subsidiary YTB Land Sdn Bhd has signed an agreement with the registered holder of the mining lease of the land, Tengku Fahad Mua'adzam Shah ibni Almarhum Sultan Haji Ahmad Shah, and Amazing Logic Sdn Bhd.

Berjaya Corp Bhd's newly minted chief executive officer Abdul Jalil Abdul Rasheed has acquired 70 million Berjaya Corp shares at 28 sen a share, giving him a 1.4% stake in the diversified conglomerate. The acquisition of equity interest by Jalil signifies good corporate governance, Berjaya Corp said.

Former executive director of Three-A Resources Bhd, Fang Siew Yee, has been convicted and sentenced for two offences related to insider trading by the Kuala Lumpur Sessions Court. The Securities Commission Malaysia said Fang was sentenced to one-day jail and a fine of RM5 million after she pleaded guilty to two separate charges of communicating inside information and acquiring shares when in possession of the said information.

Construction giant Gamuda Bhd has requested the trading of its shares to be suspended tomorrow, to make way for a material announcement. The group said its structured warrants will also be suspended.

Eco World Development Group Bhd (EcoWorld) said its wholly-owned subsidiary Eco World Capital Services Bhd has established a sukuk wakalah programme of RM500 million in nominal value. The subsidiary today issued RM180 million worth of sukuk wakalah with a tenure of five years under the programme. Proceeds from the sukuk issuance will be used for repayment of several identified existing borrowings and working capital requirements.

Bintai Kinden Corp Bhd has signed a third distribution agreement with Korean cold chain equipment manufacturer firm SLAB Asia Co Ltd to supply its cold chain boxes for the storage and distribution of Covid-19 vaccines in Indonesia. Bintai Kinden's subsidiary Bintai Healthcare Sdn Bhd was appointed the exclusive distributor for the cold chain boxes in Indonesia after the parties signed a separate distribution agreement dated March 15.

Office furniture maker Euro Holdings Bhd has proposed a bonus issue of up to 3.21 billion shares, on the basis of four bonus shares for every one share held of which the entitlement date will be announced later. It said the bonus issue is expected to be completed by the second quarter of 2021.

 Source: The Edge Markets

OSK's 4Q profit drops 25% to RM97m, plans three sen dividend

 OSK Holdings Bhd's net profit dropped 25.14% year-on-year to RM97.45 million in the fourth quarter ended Dec 31, 2020 (4QFY20), compared with RM130.17 million a year ago, despite posting a higher revenue.

OSK's revenue, meanwhile, grew by 15.1% to RM335.54 million from RM291.53 million in 4QFY19, thanks to its property segment, according to its filing with Bursa Malaysia.

The company also proposed a single-tier final dividend of three sen per share of which the dates of entitlement and payment will be announced in due course.

The group noted that its property segment's revenue grew 35% to RM230.91 million from RM171.45 million, mainly contributed by its ongoing projects and completed projects in Malaysia.

"The share of profit in 4QFY20, amounted to RM7.9 million, was contributed by the development of Melbourne Square in Melbourne, Australia compared with RM12.3 million recorded from the share of profit of the development of Agile Mont Kiara in 4QFY19.

"The property investment division recorded an impairment loss on property, plant and equipment and a fair valuation loss on investment properties amounting to RM29.5 million in 4QFY20," said OSK.

Apart from that, the group said the division continued to generate steady rental income from its office buildings, while operations of the retail shopping gallery remained challenging.

On a quarterly basis, net profit decreased slightly by 7.37% from RM105.21 million, while revenue inched up 4.97% from RM319.67 million in 3QFY20.

For the full year ended Dec 31, 2020 (FY20), net profit declined by RM339.34 million from RM412 million in the previous year, while revenue fell 10.1% to RM1.09 billion from RM1.21 billion.

On prospects, it said the performance from the property development division will continue to be supported by sales and progress billings from ongoing projects which have successfully secured high take-up rates.

"The property investment division is expected to generate a steady rental income stream from the offices at Plaza OSK and Faber Towers. Rental and occupancy at our Atria Shopping Gallery will continue to be under pressure with the contracting retail sales and the implementation of MCO (Movement Control Order) in January 2021 may hastened the closure of more stores.

"The construction division will continue to deliver our current outstanding order book of RM196.7 million as at Dec 31, 2020 while targeting to replenish new orders from pipeline projects from the property division. The segment will continue to focus on our internal projects and strive to ensure that our projects are delivered within the stipulated time, quality and at the same time optimising the development cost," said the group.

Barring any prolonged economic slowdown, the group said it is confident of performing satisfactorily in FY21.

Shares of OSK slipped 1.16% or one sen to 85 sen, giving it a market capitalisation of RM1.78 billion.

Source: The Edge Markets

 

Poh Kong glitters in Q2 earnings

Jewellery maker Poh Kong Holdings Bhd reported slower sales in three-month ended Jan 31, but higher gold prices and cost control initiatives boosted its earnings.

Net profit rose to RM11.35mil compared with RM10.6mil a year ago. Revenue declined to RM231.4mil from RM252mil previously.

“The implementation of movement control order severely impacted the Group’s operations and businesses, ” Poh Kong said in a filing with Bursa Malaysia yesterday.

However, margins improved due to the “uptrend of gold prices and the cost control initiative efforts together with streamlining and strengthening of operations and business, ” it said. Poh Kong expects the country’s economy to improved with the scheduled progress of the vaccine rollout.

“The group will continuously monitor the impact of these current uncertainties on its operations, financial obligations and performance while external factors are largely beyond our control, ” it said.

Barring unforeseen circumstances, the Board of Directors is confident that the Group has put in place adequate measures to meet the challenges ahead for financial year ending July 31,2021, ” it said.

Source: The Star 

Industronics signs MoU with Hong Kong’s Bluemount to venture into fintech

 Electronics company Industronics Bhd has entered into a non-binding memorandum of understanding (MoU) with Hong Kong's Bluemount Financial Group Ltd and its shareholder and director Li Hok Yin today to further discuss and negotiate the terms and conditions with regard to the proposed acquisition of Bluemount shares for the purpose of venturing into the financial services industry, specifically exploring the fintech industry.

Industronics said in a bourse filing that the MoU shall be valid and remain in effect for a period of one year from the date of the MoU.

According to Industronics, Bluemount was incorporated in Hong Kong in 2016 and is principally engaged in the business of financial services. It recorded a profit of HK$3.29 million on the back of HK$15.84 million revenue in its latest audited financial statements for the year ended March 31, 2020.

“The effects of the collaboration will only be determined upon the finalisation of terms of any collaboration agreement(s). Should any collaboration agreement materialise, it is expected to contribute positively to the future earnings of the group,” it said.

It also said the board of directors of the company is of the opinion that the MoU is in the best interest of the company and its shareholders.

At noon break, Industronics shares were three sen or 7.89% higher at 41 sen, valuing the group at RM71.7 million.

Source: The Edge

PDZ to venture into glove making

Loss-making container shipping firm PDZ Holdings Bhd is planning a scheme to raise as much as RM100mil for its glove manufacturing venture.

In a filing with Bursa Malaysia, PDZ said the proposed diversification was expected to contribute significantly to the group’s future revenue and earnings.

To raise funds for the new business, the company has proposed a corporate exercise.

First, PDZ has proposed to consolidate its existing shares and warrants on the basis of 10 units into one unit.

It will then proceed with the plan to issue new rights shares and free warrants on the basis of six new rights shares and three new warrants for every one consolidated share at a later date.

“The company intends to raise a minimum of RM10mil from the proposed rights issue with warrants to meet the funding requirements, ” it said.

PDZ said it has procured undertakings from executive director and CEO Datuk Christopher Tan Chor How and executive director Ho Jien Shiung to fully subscribe their entitlements and allotments.

Source: The Star

AmInvest Research retains overweight on auto sector

AmInvestment Research is maintaining its overweight stance on the auto sector with an unchanged total industry volume (TIV) projection of 575,000 units for 2021. In its research note on Wednesday, it expects the strong sales volume momentum to sustain throughout 1H2021, bolstered by the extension of the sales and service tax (SST) exemption from Jan 1 until June 30,2021. 

“We believe that the SST exemption will continue to spur buying interests for passenger vehicles, especially the national brands Proton and Perodua, ” it said. In February 2021, the auto sector recorded an improved TIV of 42,800 units (+30% MoM, +4% YoY), mainly driven by a major improvement in footfalls to showrooms after the lifting of the MCO for most states nationwide. 

“We expect March 2021 TIV to be higher MoM supported by the resumption of the Road Transport Department’s full services for all types of vehicle transactions. “We understand that the Proton B-segment X50 model has exceeded 50,000 booking units as at end-February, with 8,200 units already delivered to customers. 

 “We gathered from our channel checks that the waiting period for the X50 is more than six months, an indication of how well-received the model is locally. As of now, the global chip shortage issues have not affected both SUVs, ” it said. 

AmInvest Research noted Proton’s market share soared to a seven-year high at 27.3% in February, resulting in a runner-up YTD market share of 23.3%, behind Perodua’s 44.3%. Proton has introduced its sales volume target for 2021 at 132,000 units.

 Source: The Star

BIMB Investment hopes to achieve RM2.5b AUM by year end

BIMB Investment Management Bhd, a wholly-owned subsidiary of Bank Islam Malaysia Bhd, hopes to achieve assets under management (AUM) of RM2.5 billion by year end.

BIMB Investment chief executive officer Najmuddin Mohd Lutfi told a press conference after the virtual launch of BIMB-ARABESQUE Global Shariah Sustainable Equity Fund (BGSEF) that the group is managing a total fund of about RM1.7 billion currently.

He said he hopes its newly launched fund BGSEF will achieve AUM of RM100 million in the next two years.

“We hope that the new fund will contribute about 10% (to the total fund) in the next 24 months,” he added.

He also said 65% of the group’s current AUM is in equity, adding that it hoped to achieve 70% of its AUM to be in equity in the next 34 months.

“Currently, we are managing the largest Syariah environmental, social, and corporate governance (ESG) assets of about RM1 billion. The new fund is also (investing) in ESG asset. Hopefully, it will contribute additional equity growth for us,” he added.

BIMB Investment today launched BGSEF, a global shariah ESG equity feeder fund that seeks to achieve capital appreciation over a medium to long term period for investors. The fund offers investors globally diversified exposure in up to 100 Shariah-ESG stocks at all times.

Source: The Edge Markets

 

Lay Hong's Jeram farms have been declared free of the Salmonella Enteritidis

Lay Hong's Jeram farms have been declared free of the Salmonella Enteritidis (SE) after a comprehensive test by the Veterinary Services Department (DVS).

In a statement, the poultry company said the test showed negative results for SE. This effectively lifted the suspension of egg supply from its Jeram 1-CES 008 farm.

“This is a very comprehensive investigation conducted by the department, which includes testing on the eggs, environment chicken faeces, cloacal swap, feed, water and others from each farm at the lab in DVS Salak Tinggi, ” it said.

 

Source: The Star

Shahril bersara sebagai Presiden, CEO Sapura Energy

Tan Sri Shahril Shamsuddin akan bersara daripada Sapura Energy Bhd (Sapura Energy) hari ini sebagai Presiden dan Ketua Pegawai Eksekutif (CEO) kumpulannya.

Beliau akan digantikan oleh Datuk Mohd Anuar Taib yang mengambil alih pucuk pimpinan mulai 23 Mac, 2021.

Mohd Anuar yang menyertai Sapura Energy sebagai Pengarah Bebas pada Ogos, 2020 dilantik sebagai Ketua Pegawai Operasi dan CEO dilantik pada Oktober, 2020.

Pelan peralihan kepimpinan Sapura Energy diumumkan tahun lalu,  menjelang Shahril mencapai usia persaraan 60 tahun pada 22 Mac, 2021.

"Bagi pihak lembaga pengarah, kami ingin mengucapkan terima kasih kepada Tan Sri Shahril, visi dan kesungguhannya menjadikan Sapura Energy menjadi syarikat multinasional Malaysia yang mampu bersaing dan menang di peringkat antarabangsa," kata Pengerusi Sapura Energy, Tan Sri Shamsul Azhar Abbas dalam satu kenyataan hari ini.

Shamsul Azhar berkata kepemimpinan Shahril telah membolehkan kumpulan itu berkembang daripada penggiat di peringkat tempatan bertukar kepada sebuah syarikat tenaga tersohor yang merangkumi seluruh nilai rantaian huluan dan wawasannya meletakkan asas bagi kumpulan itu untuk maju selain daripada minyak dan gas dan meneroka dalam bidang tenaga yang boleh diperbahrui.

Shahril menubuhkan Sapura Energy pada pertengahan tahun 1990-an, membangunkan kumpulan tersebut pada awalnya sebagai kontraktor 'diving' kepada sebuah syarikat tenaga bersepadu global.

Kumpulan itu menjalankan operasinya lebih daripada 20 negara dengan jumlah tenaga kerja di peringkat antarabangsa melebihi 11,000 orang daripada 37 kewarganegaraan, bekerja dan bekerjasama di 12 pusat operasi di seluruh dunia.

Rakyat Malaysia merangkumi sekitar 86 peratus dalam kumpulan pekerja mahirnya.

Sapura Energy telah menyumbang kira-kira RM89 bilion untuk ekonomi Malaysia sejak lima tahun lalu dengan lebih daripada RM15 bilion nilai kontrak diberikan kepada vendor tempatan.

Dalam tempoh tiga tahun lalu, kumpulan itu membawa masuk lebih daripada AS$2 bilion dalam mata wang asing. - BERNAMA

Berjaya Food rancang 12 cawangan baharu Starbucks

 Berjaya Food Bhd komited untuk membuka lebih banyak rangkaian makanan dan minuman di bawah kendaliannya, termasuk Starbucks di sebalik cabaran pandemik COVID-19.

Ketua Pegawai Eksekutif Berjaya Food, Sydney Quays, berkata Starbucks terus menjadi rangkaian utama kumpulan walaupun dalam tempoh mencabar ketika ini, membuktikan orang ramai masih mempercayai jenama itu.

Beliau yang juga Pengarah Urusan Starbucks bagi Malaysia dan Brunei berkata, kumpulan akan membuka 12 cawangan baharu Starbucks di Malaysia tahun ini termasuk cawangan pertamanya di Perlis dalam beberapa minggu akan datang.

Katanya, Starbucks adalah jenama utama bagi Berjaya Food dengan sumbangan sehingga 80 peratus kepada kumpulan dan akan kekal menjadi pemangkin utama pertumbuhan pendapatannya.

"Tahun ini, kumpulan optimis akan pulih berdasarkan situasi semasa. Sektor makanan dan minuman akan pantas meningkat kembali. Starbucks juga sentiasa menjadi jenama pilihan kepada orang ramai di Malaysia.

"Malah, kumpulan juga dalam perancangan awal dalam memperkenalkan platform e-dagang sendiri. Bagaimanapun, ia masih di peringkat cadangan dan tiada keputusan lagi ketika ini," katanya.

Beliau berkata demikian selepas pelancaran pembukaan rangkaian kedai terbaharu Starbucks di Tropicana Garden Mall (TGM) dekat sini, hari ini.

Rangkaian terbaharu itu juga adalah cawangan Starbucks Reserve ke-13 yang dibuka di Malaysia.

Starbucks Reserve adalah cawangan yang berbeza dengan menampilkan keunikan tersendiri selain mempunyai ruangan kedai yang lebih besar terbahagi kepada dalaman dan luaran.

Starbucks Reserve TGM mempunyai dua bar kaunter yang menyediakan pelbagai kopi buatan tangan selain rangkaian kopi sedia adanya.

Antara keunikan utama di Starbucks Reserve TGM adalah mural 'Wall Of Gratitude' yang mempamerkan gambar lebih daripada 200 petugas barisan hadapan.

Sementara itu, Tropicana Corporation Bhd optimis sektor peruncitan akan kembali pulih tahun ini pasca pandemik COVID-19 sekali gus meningkatkan kembali kadar kepenghunian pusat membeli belahnya, Tropicana Garden Mall (TGM).

Pengarah Urusan TGM, Andrew Ashvin, berkata pihaknya menyasarkan kadar penyewa di TGM akan meningkat kepada 80 peratus pada hujung tahun ini berbanding 43 peratus ketika ini.

Beliau berkata, pusat membeli belah akan kembali dikunjungi orang ramai dalam masa terdekat disebabkan peningkatan semula keyakinan terhadapan pandemik itu.

"Ketersediaan vaksin COVID-19 adalah petanda positif peningkatan semula kunjungan pusat membeli belah termasuk di TGM dalam tempoh terdekat.

"Kami yakin dengan peningkatan keyakinan orang ramai itu, sektor peruncitan akan turut melonjak dan membuatkan penyewa kembali bersedia membuka kedai.

"Malah, TGM akan menyediakan barisan penyewa terkemuka dan akan menjadi tumpuan orang ramai," katanya.

 

Source: Berita Harian