Mar 11-Companies in the news MBSB, MAHB, Kimlun, Zecon, Scomi Engineering, SMTrack, KESM Industries, ML Global, KNM Group, Ho Hup and Key Alliance

by **Cals** Fri 11 Mar 2016, 01:32

Companies in the news

[size=28]MBSB, MAHB, Kimlun, Zecon, Scomi Engineering, SMTrack, KESM Industries, ML Global, KNM Group, Ho Hup and Key Alliance

By Supriya Surendran / theedgemarkets.com | March 10, 2016 : 10:33 PM MYT

KUALA LUMPUR (March 10): Based on corporate announcements and news flow today, companies that may be in focus tomorrow (March 11) could include the following: MBSB, MAHB, Kimlun Corp, Zecon, Scomi Engineering, SMTrack, KESM Industries, ML Global, KNM Group, Ho Hup Construction and Key Alliance Group.

Malaysia Building Society Bhd (MBSB) is proposing a renounceable two-call rights issue of new shares to its entitled shareholders, on a basis and issue price to be determined and announced later, to raise gross proceeds of up to RM2 billion.

MBSB said the issue price of the proposed rights issue will be payable in two calls.

The first call will be payable in cash on application by the entitled shareholders who subscribe for the rights shares, and the second call shall be capitalised from the company’s share premium and/or retained earnings account.

By capitalising the share premium and/or retained earnings account, the entitled shareholders who subscribe for the rights shares will only be required to make a cash payment for the first call.

The Lunar New Year holiday season spurred the travelling urge, as Malaysia Airports Holdings Bhd (MAHB) said passenger traffic in its local airports grew by 6.9% year-on-year in February to 6.92 million, with an exceptionally strong increase from Kuala Lumpur International Airport (KLIA).

Malaysian airports’ growth of 6.9% was higher than expected, which was contributed by Chinese New Year traffic and the additional day in the leap year.

“Malindo Air continued to record a high double-digit growth of more than 35%, while AirAsia as a group, grew by more than 15%,” the airport operator said in a filing with Bursa Malaysia.

MAHB said KLIA’s traffic jumped by 7.8% to 4.05 million in the month. But the declining trend from the flagship terminal continued in the month, so the new terminal klia2 picked up the slack, as it grew by 25.5% to 2.38 million passengers — with more than two-thirds being travellers for international flights.

A consortium comprising Kimlun Corp Bhd and Zecon Bhd clinched a RM1.46 billion contract to develop and upgrade a portion of the Pan Borneo Highway in Sarawak.

In separate statements to Bursa Malaysia today, Kimlun and Zecon said they secured the four-year (48 month) project's letter of award from Lebuhraya Borneo Utara Sdn Bhd.

According to Kimlun and Zecon, both companies will set up a joint venture company (JVC) to develop the Serian roundabout-Pantu junction stretch of the Pan Borneo Highway.

Kimlun, which will own 30% in the JVC, said: "Upon the due incorporation of the JVC, the JVC will enter into a contract with the awarder on the project."

Zecon will own the remaining 70% in the JVC. Kimlun and Zecon said the contract was expected to "contribute positively" to their financials.

Scomi Engineering Bhd, which had obtained an ex parte injunction to restrain Prasarana Malaysia Bhd from terminating a RM494 million KL monorail expansion contract, said its work on the project was delayed by Prasarana’s failure to timeously certify and pay progress claims made.

In a filing with Bursa Malaysia today, Scomi Engineering said to date, it has completed 83% of the project works and will complete the project within the time that it is entitled to be given under the contract.

"As at today, Prasarana is still in breach of contract by failing to pay sums due to Scomi Engineering," it added.

SMTrack Bhd has tied up with property developer Cherish Words Sdn Bhd (CWSB) to take on sub-contracting works to design and build 300 houses for the Federal Land Development Authority (Felda) in Negeri Sembilan.

SMTrack said the joint-venture agreement (JVA) would provide an additional source of income and contribute positively to its future financial performance.

The 50:50 ratio JV with CWSB would see SMTrack contributing RM3.8 million, as working capital for the project called `Perumahan Generasi Baharu Felda’ that is expected to use industrialised building systems (IBS) for Phase 3-Package G3-1 at Wilayah Raja Alias in Felda Palong 16.

KESM Industries Bhd more than tripled its net profit for the three months ended Jan 31, 2016 (2QFY16) to RM6.99 million, from the previous corresponding quarter’s RM2.09 million.

Revenue rose by 13.15% to RM70.26 million, KESM Industries’ filing with Bursa Malaysia showed. The provider of burn-in solutions to semiconductor companies noted there was the higher demand for all its services, when compared with the year earlier.

ML Global Bhd will be uplifted from being classified as a Practice Note 17 (PN17) company, with effect from 9 am tomorrow (March 11).

In a filing with Bursa Malaysia today, it was revealed that ML Global has regularised its financial condition and level of operations, and no longer triggers any of the criteria under Paragraph 2.1 of PN17 of the Main Market Listing Requirements.

“After due consideration of all facts and circumstances of the matter, Bursa Malaysia Securities has decided to approve the company's application for an upliftment from being classified as a PN17 company,” read the group’s announcement.

ML Global, which is principally involved in the manufacture and sale of roof tiles, was classified as a PN17 company in February 2012, after its shareholders' equity fell to less than 25% of its paid-up share capital. It then completed its regularisation plan on Oct 31, 2014.

KNM Group Bhd has joined forces with Ho Hup Construction Company Bhd to undertake engineering, procurement, construction and commissioning(EPCC) contracts, both within and outside the country.

KNM said its wholly-owned unit KNM Process Systems Sdn Bhd and Ho Hup will each own 50% of the joint-venture (JV) company, called KHH Infrastructures Sdn Bhd.

“KNM Process Systems shall initially subscribe for 50 ordinary shares of RM1 each in the JV company at par value of RM1 each, and subscribe for additional 49,950 new ordinary shares of RM1 each, pursuant to the parties’ intention to increase the initial issued and paid up capital from RM100 to RM100,000,” KNM said in a filing with Bursa Malaysia.

It added that KNM Process Systems would fully subscribe for its shares in cash, through internally-generated funds and/or shareholders’ advances.

Telecommunication sector company Key Alliance Group Bhd has been slapped with an unusual market activity (UMA) query by Bursa Malaysia Securities Bhd, after its shares surged today.

At closing, the shares rose half sen or 7.69% to seven sen, with 85.9 million shares traded, for a market capitalisation of RM41.5 million. The shares have increased 55.56% in a year.
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