April 1st- Companies in the news MMC Corp, Gamuda, Pestech, WCT, Econpile, Texchem and Talam Transform

by **Cals** Fri 01 Apr 2016, 08:18

Companies in the news

[size=28]MMC Corp, Gamuda, Pestech, WCT, Econpile, Texchem and Talam Transform

By Gho Chee Yuan / theedgemarkets.com | March 31, 2016 : 9:49 PM MYT

KUALA LUMPUR (March 31): Based on corporate announcements and news flow today, companies that may be in focus tomorrow (Friday, April 1) could include the following: MMC Corp, Gamuda, Pestech, WCT, Econpile, Texchem and Talam Transform.

MMC Gamuda KVMRT (T) Sdn Bhd (MGKT) has bagged the largest work package for the construction of the MRT Sungai Buloh-Serdang-Putrajaya (SSP) Line, also known as MRT2, valued at RM15.47 billion.

The underground works package involves the design, construction and completion of tunnels, underground stations and associated structures, such as portals and escape shafts for the SSP Line's 13.5km underground alignment from the Jalan Ipoh North Escape Shaft to the Desa Waterpark South Portal.

Mass Rapid Transit Corporation Sdn Bhd (MRT Corp) said the award to MGKT, which is a joint venture between MMC Corporation Bhd and Gamuda Bhd, was made following a One Stop Procurement Committee meeting, chaired by Prime Minister Datuk Seri Najib Razak.

"The successful contractor for the underground works package had a proven track record in carrying out tunnelling and other underground works in the challenging geology of the Klang Valley," MRT Corp chief executive officer (CEO) Datuk Seri Shahril Mokhtar said in a statement.

Shahril said MGKT was selected on the basis of best evaluated tender, where it was evaluated on technical and commercial criteria.

"This meant that the successful tender might not always be the one with the lowest price," he explained. "Nevertheless, for this tender, I can reveal that the best evaluated tender had the best score for the technical evaluation and also had the lowest price."

The SSP Line is 52.2km in length, of which 13.5km will run underground. It will have 37 stations, 11 of them being underground stations.

Pestech International Bhd has won a contract worth RM318 million to upgrade the facility of the Klang Valley Double Track (KVDT) infrastructure from Dhaya Maju Infrastructure (Asia) Sdn Bhd.

In a filing with Bursa Malaysia today, Pestech said its unit Pestech Sdn Bhd (PSB) had on Tuesday (March 29) received the consent for disclosure of the letter of award from Dhaya Maju, which was awarded to PSB on March 17.

Dhaya Maju is the turnkey contractor for the project.

The contract was for the design, construction, completion, testing, commissioning and maintenance of the systems works for the project involving the upgrading of the facility of KVDT infrastructure.

Pestech said the project shall commence tomorrow (April 1) and is to be completed within 42 months or on Sept 30, 2019.

WCT Holdings Bhd has been awarded a RM133.93 million contract to undertake the redevelopment of an existing police quarters (Block 10&11) at Bandar Ulu Kelang in Gombak, Selangor.

In a filing with Bursa Malaysia today, WCT said its wholly-owned subsidiary WCT Bhd has accepted an appointment by executing the letter of acceptance from MRT Corp to build a 20-storey police quarters housing 300 units, with facilities and a five-storey podium car park.

"The works under the contract are expected to be completed in 28 months," said WCT.

Econpile Holdings Bhd has bagged a RM51.63 million contract from Eco Meridian Sdn Bhd to provide bored piling and basement works for a hotel development in Penang.

The piling and foundation specialist said its unit Econpile (M) Sdn Bhd was awarded the contract for the 453-room four-star business hotel within the Setia SPICE (Subterranean Penang International Convention and Exhibition Centre) development on Penang Island.

Setia SPICE is a public-private partnership between property developer SP Setia Bhd and the Penang Municipal Council.

Econpile said the piling and basement works under the new contract are targeted to commence in April 2016, and slated for completion in June 2017.

The project is to revamp the existing Penang Indoor Sports Arena and aquatic centre, while adding three components comprising a world-class convention centre, hotel and retail outlets to increase service offerings to the target markets. The business hotel is reported to be the final component of the development.

Econpile executive director and group CEO Raymond Pang said the contract winning is a vote of confidence for the group, as Econpile had previously completed the piling and basement works for the convention centre within the Setia SPICE development.

Pang said the group's total order book to date of RM627 million would sustain its earnings until early 2018.

Texchem Resources Bhd has teamed up with Japan-based Kokubu Group Corp, which is involved in the wholesale, food manufacturing and import/export business, to venture into food logistics.

It told Bursa Malaysia that its unit Texchem Restaurant Systems Sdn Bhd has entered into a joint venture agreement with Kokubu Group.

Under the deal, Texchem Restaurant and Kokubu Group will jointly operate a company called namely Kokubu Food Logistics Malaysia Sdn Bhd to undertake food logistics, inventory management, handling of sales orders and warehouse operations.

Texchem Restaurant will own a 51% stake in Kokubu Food Logistics, while the remaining 49% stake will be held by Kokubu Group.

Texchem said the investment in Kokubu Food Logistics will be made in cash and financed by internally generated funds.

"The joint venture is expected to have a positive contribution to Texchem Group in the long term," it added.

Talam Transform Bhd's net loss came down to RM11.29 million or 0.27 sen in the fourth quarter ended Jan 31, 2016 (4QFY16) compared with RM127.89 million or 2.95 sen previously, due to lower impairment provisions and other expenses.

Quarterly revenue fell nearly 60% to RM32.02 million compared with RM79.77 million in 4QFY15, due to lower sales of development lands.

Its annual net loss dropped 85.4% to RM20.7 million or 0.49 sen per share from RM141.74 million or 3.31 sen per share in FY15; while revenue fell 23.8% to RM155.93 million from RM204.55 million.
Talam Transform foresees a challenging environment ahead, due to market conditions brought about by tougher lending guidelines by Bank Negara Malaysia and an increasing construction costs environment. [/size]