May 6-Companies in the news Versatile Creative, Three-A Resources, Fajarbaru, DRB-Hicom, Gabungan AQRS, MWE, TNB, Wing Tai and Lion Corp

by **Cals** Fri 06 May 2016, 01:29

Companies in the news

[size=28]Versatile Creative, Three-A Resources, Fajarbaru, DRB-Hicom, Gabungan AQRS, MWE, TNB, Wing Tai and Lion Corp

By Meena Lakshana / theedgemarkets.com | May 5, 2016 : 11:51 PM MYT

KUALA LUMPUR (May 5): Based on corporate announcements and news flow today, companies that may be in focus tomorrow (Friday, May 6) could include the following: Versatile Creative, Three-A Resources, Fajarbaru, DRB-Hicom, Gabungan AQRS, MWE, TNB, Wing Tai and Lion Corp.

Versatile Creative Bhd, which was slapped with a unusual market activity (UMA) query today after its shares rose to a five-year high, said a major shareholder has entered into an agreement to dispose of eight million shares in the group to a third party at a negotiated price of 60 sen per share.

In a reply to Bursa Malaysia's UMA query, Versatile said a deposit equivalent to 10% of the transaction value was received by the vendor of the shares, with the balance sum payable within 30 days of the agreement date.

Versatile added that it would make the appropriate announcement "as and when further information of the share sale transaction comes to the knowledge of the board".

Three-A Resources Bhd's net profit for the first quarter ended March 31, 2016 (1QFY16) surged 90.1% to RM6.69 million or 1.7 sen per share from RM3.52 million or 0.89 sen per share a year ago due to higher revenue and lower share of losses of a jointly controlled entity.

In a filing with Bursa, it said its revenue for the quarter jumped 44.2% to RM107.57 million from RM74.6 million, as a result of higher sales of its products.

The loss reported by a jointly controlled entity for the current quarter under review decreased 37.3% to RM1.01 million from RM1.61 million in 1QFY15.

Going forward, Three-A Resources expects its product to remain competitive in the market and expects its performance in FY16 to be satisfactory.

Fajarbaru Builder Group Bhd has won a RM259.7 million contract to rehabilitate the railway track between Jerantut, Pahang, and Gua Musang, Kelantan.

The construction company-cum-building materials provider said its wholly-owned subsidiary Fajarbaru Builder Sdn Bhd received the letter of acceptance for the contract from the transport ministry today.

Fajarbaru said the contract is expected to contribute positively to the earnings and assets for the financial years ending June 30, 2017 (FY17) to FY19.

The site possession of the contract is on June 3, and the construction period will last for 36 months, it said.

DRB-Hicom Bhd has aborted the divestment of its 90% stake in property investment firm Corwin Holding Pte Ltd for S$317 million (RM964.6 million) to Evolutyon Real Estate Investment Holding Pte Ltd.

DRB-Hicom announced on Dec 21 last year that its indirect unit Hicom Megah Sdn Bhd together with the minority shareholders, namely Mohamed Mustafa & Samsuddin Co Pte Ltd and BI Distributors Pte Ltd, would sell Corwin to Evolutyon.

Today, the diversified group said it had sent a termination notice to the purchaser informing that the share sale agreement signed last December has been officially terminated due to the inability of the latter to fulfill its contractual obligations by the agreed deadline.

Gabungan AQRS Bhd's wholly-owned subsidiary has proposed to acquire a 49% stake in the turnkey contractor for a PR1MA housing project in Kuantan, Pahang, with the construction contract valued at RM424.23 million.

The construction-cum-property development firm said its subsidiary Gabungan Strategik Sdn Bhd signed a joint venture (JV) agreement with Monolight IBS Building System Sdn Bhd to construct PR1MA homes with all the necessary amenities, utilities, facility, and infrastructure.

The project will be built on a 182,000 sq m tract in Kuala Kuantan. Monolight will hold a 51% stake in the JV.

Gabungan AQRS chief executive officer Datuk Azizan Jaafar said pending local authority's approval, the earthworks for the PR1MA housing project could begin in about seven weeks, and the whole construction project will have a 36-month period for completion.

For its JV with Monolight, Gabungan AQRS said the project was expected to contribute positively towards its earnings and earnings per share for this financial year ending Dec 31, 2016 (FY16) and beyond.

MWE Holdings Bhd plans to dispose of nine leasehold lands for RM54.93 million and its entire stake in MWE Golf and Country Club Bhd for RM1 to Newfields Land Sdn Bhd's wholly-owned subsidiaries.

MWE said the disposals are in line with its strategy to dispose of non-core businesses and loss making companies, with the cash proceeds to be used to pare down the group's bank borrowings and for working capital requirements.

MWE's indirect wholly-owned unit Melati Mewah Sdn Bhd will dispose of 48.2ha of lands in Mukim Raja, Petaling, in Selangor to Pristine Primawera Sdn Bhd.

MWE also plans to dispose of its entire shareholding of 25 million ordinary shares of RM1 each representing 100% equity interest in MWE Golf and Country Club to investment holding company Saujana Setara Sdn Bhd.

The proposed disposals are expected to be completed in the third quarter of financial year ending March 31, 2017, it said.

Tenaga Nasional Bhd (TNB) has inked a power purchase agreement (PPA) with Pengerang Power Sdn Bhd for the purchase of 600 megawatt (MW) of electricity over a 21-year period.

TNB said the PPA is the first of its kind as the Pengerang Power co-generation facility will be selling to TNB 400MW of generating capacity and electrical energy, scheduled to commence from June 1, 2017.

It said an additional 200MW is scheduled to commence from Jan 1, 2019, bringing to 600MW the total generating capacity and electrical energy to be supplied to TNB.

Pengerang Power, an indirect wholly-owned subsidiary of Petroliam Nasional Bhd (Petronas), has been tasked to design, construct, own, operate and maintain a co-generation facility with a nominal capacity of 1,729MW to be located at Pengerang, Johor.

Wing Tai Malaysia Bhd recorded a net loss of RM941,000 in the third quarter ended March 31, 2016 (3QFY16) from a net profit of RM8.49 million a year ago due to dwindled contributions from its property development and retail divisions.

Revenue declined 24.71% to RM62.48 million in 3QFY16 from RM82.99 million in 3QFY15.

For the first nine months of financial year 2016 (9MFY16), net profit more than halved to RM21.39 million from RM52.31 million a year ago while revenue declined 14.59% to RM213.36 million from RM249.8 million.

Wing Tai said the property development segment swung into a loss of RM4.16 million in 3QFY16 from a profit of RM2.33 million in 3QFY15 while its retail division profit plunged 90.3% to RM701,000 from RM7.23 million during the same period a year ago.

Wing Tai said revenue from the property development division declined to RM53.9 million in 9MFY16 from RM91.9 million in 9MFY15 due to lower revenue recognition from the group's northern region projects, which were substantially completed in September 2015.

The retail division's operating profit was lower at RM9.2 million in 9MFY16 compared to RM19.4 million in 9MFY15 due to lower gross profit margin on the back of currency depreciation, higher sales discounts and fair value changes on the derivative financial instruments.

On prospects, Wing Tai said with the currency volatility and subdued consumers' sentiment, the retail and property outlook is expected to be challenging in this financial year.

Financially-troubled Megasteel Sdn Bhd, a 79%-owned subsidiary of Lion Corp Bhd, today obtained a three-month restraining order against its creditors after it defaulted on RM3 billion worth of loans last year.

In a filing with Bursa, Lion Corp said the order granted by the High Court restrains any further proceedings against Megasteel, Lion Corp, and their assets, for 90 days from today except with the court's permission.

"The restraining order was applied for in order to allow Megasteel to have sufficient time to formalise the schemes of arrangement for the approval of the scheme creditors.

"Megasteel is currently working with its adviser on the schemes of arrangement and the details of the schemes of arrangement will be announced in due course," said Lion Corp.

The court also granted Megasteel an order, pursuant to section 176(1) of the Companies Act 1965, whereby separate meetings of the company's creditors be summoned within a period of 90 days from today to agree on a scheme of arrangement.
[/size]