Companies in the news Hua Yang, TNB, MAHB, Sasbadi, Dayang, Ekovest, Sime Darby, AWC, Seacera, Berjaya Corp and Kim Teck Cheong

by **Cals** Tue 12 Jan 2016, 00:45

Companies in the news
Hua Yang, TNB, MAHB, Sasbadi, Dayang, Ekovest, Sime Darby, AWC, Seacera, Berjaya Corp and Kim Teck Cheong
By Tan Siew Mung / theedgemarkets.com | January 11, 2016 : 10:37 PM MYT

KUALA LUMPUR (Jan 11): Based on corporate announcements and news flow today, companies that may be in focus tomorrow (Tuesday, Jan 12) could include the following: Hua Yang, TNB, MAHB, Sasbadi, Dayang, Ekovest, Sime Darby, AWC, Seacera, Berjaya Corp ([You must be registered and logged in to see this image.] Valuation: 2.40, Fundamental: 0.90) and Kim Teck Cheong ( Valuation: N/A, Fundamental: N/A).
Hua Yang Bhd ([You must be registered and logged in to see this image.] Valuation: 3.00, Fundamental: 1.90) plans to develop a mixed development with a gross development value of RM346.4 million in Mukim Plentong, Johor Bahru.
Hua Yang today signed an agreement to acquire eight parcels of freehold land totalling 73.16 acres in Johor Bahru for RM75.6 million through the purchase of Grand View Realty Sdn Bhd, a Johor-based property development company.
Moody's Investors Service has revised Tenaga Nasional Bhd ([You must be registered and logged in to see this image.] Valuation: 1.20, Fundamental: 1.30)'s outlook to 'stable' from 'positive' and affirmed its 'A3' senior unsecured bond ratings.
This reflects the company's close operational and financial links with the government, and its dependence on the domestic macro-economic environment.
The rating action came after Moody's decision to affirm Malaysia's 'A3' government bond rating and change the outlook to 'stable' from 'positive' on the same day.
Likewise, Moody's also revised Malaysia Airports Holdings Bhd ([You must be registered and logged in to see this image.] Valuation: 1.40, Fundamental: 0.80)'s outlook to 'stable' from 'positive', and affirmed its 'A3' issuer rating.
Sasbadi Holdings Bhd ([You must be registered and logged in to see this image.] Valuation: N/A, Fundamental: N/A) has fixed the issue price for its proposed private placement of up to 12.7 million shares at RM2.49 per share, which should raise as much as RM31.62 million.
The issue price represents a discount of approximately 0.24% to the five-day volume weighted average market price of its shares up to last Friday (Jan 8) of RM2.4960 per share.
Sasbadi had proposed to undertake the private placement last month to part finance future acquisition of publishing/education/education-related business(es) or intellectual property rights, to repay bank borrowings and for working capital.
Vogue Empire Sdn Bhd has ceased to be a substantial shareholder of Dayang Enterprise Holdings Bhd ([You must be registered and logged in to see this image.] Valuation: 2.40, Fundamental: 1.30) after disposing of 61.2 million shares it held indirectly on Jan 8.
In its annual report for the year ended Dec 31, 2014, Dayang showed that Vogue Empire held a direct interest of 6.98% as at March 31, 2015.
Ekovest Bhd ([You must be registered and logged in to see this image.] Valuation: 1.40, Fundamental: 1.15) has been awarded the concession for the construction and management of the RM3.74 billion Setiawangsa-Pantai Expressway (formerly Duta-Ulu Kelang Expressway (DUKE) Phase-3).
The concession period is 53 years and six months. The concession agreement is expected to contribute positively to the group's earnings and the net tangible assets for future financial years.
Tan Sri Dr Abd Wahab Maskan, 65, has ceased to be the chief operating officer of Sime Darby Bhd ([You must be registered and logged in to see this image.] Valuation: 1.40, Fundamental: 0.80), with effect from Dec 31, 2015, due to his health and medical condition.
Wahab has also, on Dec 31, vacated his managing director post in Sime Darby's property division, Sime Darby Property Bhd.
AWC Bhd ([You must be registered and logged in to see this image.] Valuation: 0.50, Fundamental: 2.50) has bagged a RM61.95 million plumbing subcontract for Permodalan Nasional Bhd's proposed KL118 tower here.
This contract is for the provision of plumbing works for the KL118 Tower project. The plumbing subcontract, which started on Nov 2, 2015, was scheduled to be completed on Dec 2, 2019.
SPAZ Sdn Bhd, a 60%-owned subsidiary of ceramic tiles maker cum property developer Seacera Group Bhd ([You must be registered and logged in to see this image.]Valuation: 2.40, Fundamental: 2.30), has pre-qualified for the construction and completion works related to the Damansara-Shah Alam Elevated Expressway (DASH) and the Sungai Besi-Ulu Kelang Elevated Expressway (SUKE).
In a filing with Bursa Malaysia today, Seacera, which will see the trading of its shares suspended tomorrow (Jan 12) pending an announcement, said SPAZ had received two letters of invitation from Turnpike Synergy Sdn Bhd (TSSB)informing SPAZ that it has successfully pre-qualified as contractor for the construction and completion of the highways, and have been invited to participate in the tenders of both projects.
For DASH, SPAZ has been pre-qualified in four out of the eight separate contract works packages. As for SUKE, SPAZ has been pre-qualified in one out of nine separate contract works packages.
DASH, costing about RM4 billion, will be a 20.1km, three-lane expressway that will traverse Shah Alam's Puncak Perdana U10, Kota Damansara, Mutiara Damansara and Damansara Perdana.
The RM4.18 billion SUKE expressway is a 24.4km, three-lane, dual carriageway, which will connect Sri Petaling to Cheras and Ulu Kelang.
The diversified group that is controlled by local tycoon Tan Sri Vincent Tan Chee Yioun, Berjaya Corp Bhd (BCorp), has disposed of a 7.44% stake in Magni-Tech Industries Bhd ([You must be registered and logged in to see this image.] Valuation: 2.10, Fundamental: 2.40) to Perbadanan Nasional Bhd (PNB) at RM4.13 per share — a discount of 8.2% from the stock's closing price of RM4.50 today — or RM50 million in total.
The disposals will result in a gain on disposal of about RM49.12 million to the BCorporation Group for the current financial year ending April 30, 2016, said BCorp in a bourse filing.
BCorp said its wholly-owned subsidiaries Berjaya Group Bhd and Juara Sejati Sdn Bhd have collectively disposed of the 7.44% stake or 12.11 million Magni-Tech shares to PNB today.
Prior to that, BCorp said it had disposed of 12 million Magni-Tech shares, representing a 7.37% stake in the open market, for RM43.56 million or RM3.63 per share in November 2015.
BCorp said these Magni-Tech shares were acquired since November 2008 and has an average adjusted group carrying value as at Dec 31, 2015 of about RM1.84 per share.
BCorp said the disposals provided it an opportunity to realise part of its investment in Magni-Tech.
On completion of the disposals, BCorp's remaining interest in Magni-Tech stands at 8.43%.
BCorp said the proceeds from both the disposals will be utilised for its working capital.
Kim Teck Cheong Consolidated Bhd (KTC) has entered into a memorandum of understanding to acquire the entire equity stake in Sarawak-based Popular Trading (Borneo) Corporation Sdn Bhd, a distributor, wholesale trader and food manufacturer.
KTC said in a bourse filing that Popular Trading's business covers Sarawak, Sabah and Labuan, and that the acquisition will enable it to establish KTC's presence in Sarawak.
In a separate statement, KTC said Popular Trading is a popular household name in Sarawak with 48 years of experience, and that its total estimated purchase consideration will be based on a due diligence process that will take into consideration Popular Trading's net asset value, excluding investment in subsidiary companies, as at Dec 31, 2015 and the company's audited net profit after tax for the last three financial years.
"In view of this acquisition, KTC's revenue shall double, [while its] operations will be strengthened and presence in the state of Sarawak will be unparalleled," KTC group executive director Dexter Lau said.
"This move will expand our trading business, network, and infrastructure and also increase our human resource by three times our present capacity in order to meet with the huge expansion plans we have targeted and planned," he added.
(Note: The Edge Research's fundamental score reflects a company's profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)