Jan21-FGV, Encorp, Fututech, Nexgram, Bintai Kinden, Pesona Metro, Guocoland, Berjaya Corp, BToto, UOA REIT, Shell Refining, Hua Yang, CMMT and Instac

by **Cals** Thu 21 Jan 2016, 01:15

Companies in the news

[size=28]FGV, Encorp, Fututech, Nexgram, Bintai Kinden, Pesona Metro, Guocoland, Berjaya Corp, BToto, UOA REIT, Shell Refining, Hua Yang, CMMT and Instacom

By Danial Idraki / theedgemarkets.com | January 20, 2016 : 10:59 PM MYT

KUALA LUMPUR (Jan 20): Based on corporate announcements and news flows today, companies that may be in focus tomorrow (Thursday, Jan 21) could include the following: FGV, Encorp, Fututech, Nexgram, Bintai Kinden, Pesona Metro, Guocoland, Berjaya Corp ([You must be registered and logged in to see this image.] Valuation: 2.40, Fundamental: 0.90), BToto ( Valuation: 1.50, Fundamental: 1.30),UOA REIT ( Valuation: 2.30, Fundamental: 1.40), Shell Refining, Hua Yang, CMMT and Instacom.

Felda Global Ventures Holdings Bhd (FGV) said on Wednesday its targeted acquisition of PT Eagle High Plantations TBK is still in negotiation and expects to conclude discussions by March, according to FGV chairman Tan Sri Mohd Isa Samad.

"The latest update is that we are still looking for a new business model. Negotiations are still ongoing and hopefully it will be settled in another one or two months. It will definitely be concluded by March," he told reporters.

On Nov 30, 2015, FGV had said it was in discussion with PT Rajawali Capital International for "a possible different mode of investment in PT Eagle High Plantations", following months of delay in the finalisation of the deal between the two parties.

Encorp Bhd ([You must be registered and logged in to see this image.] Valuation: 1.10, Fundamental: 0.45) inked a memorandum of agreement with the Federal Land Development Authority (Felda) ( Valuation: 2.00, Fundamental: 1.15) to nominate its unit Encorp Bukit Katil Sdn Bhd as the master developer for Felda's integrated township in Bukit Katil, Melaka, which carries a gross development value (GDV) of RM3.2 billion.

Isa, who is also Felda and Encorp chairman said the 640.98-acre township will be launched in phases, with construction to commence early 2017, after getting the necessary approvals.

"We expect to complete the development within 14 years. We announced a higher GDV of RM4.9 billion in 2015, but considering the dampened property segment, the GDV has been revised down to RM3.2 billion," he told the media at a press conference today, following the signing of the agreement between the parties.

Fututech Bhd ([You must be registered and logged in to see this image.] Valuation: 1.80, Fundamental: 2.60) aims to secure minimum construction jobs worth RM600 million in its current financial year, and is confident of doing so based on its previous track record, according to its executive chairman Datuk Tee Eng Ho.

Speaking to pressmen after the group's extraordinary general meeting today, Tee said Fututech's current orderbook stood at RM2.7 billion, which could support its earnings until 2018.

He also shared that the group is tendering for RM1.17 billion worth of jobs, of which 80% are from its main clients, SP Setia Bhd ([You must be registered and logged in to see this image.] Valuation: 2.00, Fundamental: 1.60), Eco World Group Development Bhd ( Valuation: 1.10, Fundamental: 0.85) and Eastern and Oriental Bhd ( Valuation: 1.10, Fundamental: 1.50).

Nexgram Holdings Bhd ([You must be registered and logged in to see this image.] Valuation: 1.10, Fundamental: 1.15) will be appointing a special auditor to address concerns raised about the existence of certain assets belonging to three subsidiaries.

This came after Bursa Securities Bhd ([You must be registered and logged in to see this image.] Valuation: 1.70, Fundamental: 2.30) had, vide a letter dated Jan 15, informed Nexgram that it was unable to proceed with the processing of the listing application and draft circular in relation to the takeover offer by Nexgram for Ire-Tex Corp Bhd ( Valuation: 0.90, Fundamental: 0.35) until its enquiries in relation to the units' assets are satisfactorily addressed.

Nexgram said in a bourse filing today it had compiled and shown to its due diligence committee documents and statements in relation to certain assets of the group that is in contention.

It has also scheduled and authorised representatives of the committee to travel to Indonesia to independently verify certain Nexgram assets to address Bursa's enquiries.

Nexgram warned that in the event Bursa decides not to proceed with the processing of the listing application and draft circular, the takeover will not succeed.

Last Friday, the Securities Commission Malaysia raised a red flag over the conduct of Nexgram in disposing of three of its subsidiaries while still in the midst of making a voluntary takeover offer for Ire-Tex. Nexgram on Nov 20, 2015 made the bid for Ire-Tex.

The three subsidiaries are Nexgram Resources Sdn Bhd, Godynamic Investments Ltd and PT Semesta Tirta Antara Raya (Indonesia).

Bintai Kinden Corp Bhd ([You must be registered and logged in to see this image.] Valuation: 0.90, Fundamental: 0.35) has won a RM120 million contract involving the construction of student housing, for Kolej Teknologi Islam Melaka Bhd (KTIM).

In a bourse filing, Bintai Kinden said its wholly owned subsidiary Bintai Integrated Engineering & Construction Sdn Bhdreceived the letter of award (LoA) from Optimal Property Management Sdn Bhd to be the turnkey contractor for the project.

Bintai Kinden executive director Datuk Sharifah Kadnariah Syed Ahmad said in the statement that the project sits on a 6.2ha (15.58 acre) land, and that the housing complex can accommodate 7,002 students.

Pesona Metro Holdings Bhd ([You must be registered and logged in to see this image.] Valuation: 1.40, Fundamental: 2.10) has bagged a contract to build a building comprising a five-storey car park with retail space and a mechanical room from Pantai Medical Centre Sdn Bhd in Melaka, worth RM26.7 million.

In a filing with Bursa Malaysia, Pesona Metro said its unit Pesona Metro Sdn Bhd has received the LoA from Pantai Medical Centre for the project, and that the six-month project started on Jan 18.

Guocoland (M) Bhd ([You must be registered and logged in to see this image.] Valuation: 2.40, Fundamental: 1.10), the property development outfit controlled by banking magnate Tan Sri Quek Leng Chan, has slipped into the red in its second quarter ended Dec 31, 2015 (2QFY16) with a net loss of RM7.48 million, as its revenue dropped almost 35% on lower contributions from various projects.

The group, which recorded a net profit of RM3.02 million in 2QFY15, saw its revenue came in at RM36 million in the latest quarter, compared with RM55.3 million in 2QFY15, its quarterly financial report to Bursa Malaysia on Wednesday showed.

Guocoland said the revenue decline was mainly due to lower contribution from its projects in PJ City, Commerce One, Old Klang Road and Amandarii Kajang.

Its first half ended Dec 31, 2015 (1HFY16)'s net profit more than doubled to RM13.85 million from RM5.8 million in 1HFY15, as revenue came in 27.5% higher at RM106.81 million from RM83.81 million in 1HFY15.

The Berjaya Group has bagged an 18-year contract worth US$210.58 million (RM919.18 million) to operate number forecast operations (NFO) in Vietnam.

In a joint filing with Bursa Malaysia on Wednesday, Berjaya Corp Bhd (BCorp) and Berjaya Sports Toto Bhd (BToto) said an investment registration certificate was issued by the Hanoi Department of Planning and Investment to BCorp and Vietnam Computerized Lottery One Member LLC — a wholly owned unit of Vietnam's Ministry of Finance — which grants the two companies an exclusive 18-year contract to invest in and operate a nationwide computerised lottery in Vietnam.

"The estimated cost of the project is about US$210.58 million (RM919.18 million) to be incurred over a period of 18 years," they said.

BCorp and BToto said the investment required for the project will be funded through internal funds and/or borrowings over the tenure of the project.

UOA Real Estate Investment Trust (UOA REIT) registered a 9.17% fall in total income available for distribution to RM11.88 million in its fourth quarter ended Dec 31 (4QFY15), compared with RM13.08 million in the same quarter last year.

It also made a provision to distribute RM24.1 million as income distribution for the second half year ended Dec 31, 2015, or 5.7 sen per unit — 3.01 sen for 4QFY15 (4QFY14: 3.28 sen) and 2.69 sen for 3QFY15 — to be paid by Feb 29, bringing its full FY15 payout to 11.02 sen compared with 11 sen in FY14.

Its 4QFY15 gross rental declined 2% to RM22.89 million from RM23.97 million a year ago, largely on revision in rental rates, though occupancy rates were steady compared to last year, UOA REIT's bourse filing showed.

Net rental income for the quarter came in 5.56% lower at RM17.34 million from RM18.36 million last year.

Loss-making Shell Refining Company ([You must be registered and logged in to see this image.] Valuation: 0.00, Fundamental: 0.20) (Federation of Malaya) Bhd kept mum over recent reports of a stake acquisition by China's state-owned enterprise Shandong Hengyuan Petrochemical Co Ltd.

Sinchew Daily, quoting a Chinese media report, said Shandong Hengyuan Petrochemical will invest US$130 million (RM565 million) to acquire Shell Refining.

But Shell Refining Malaysia said the group has nothing to announce at this point of time.

"Shell Refining is a separate independent entity from Shell's other operating units in Malaysia," the company's spokesperson said in a reply to The Edge Financial Daily's inquiry today.

The Chinese report, quoting a company official who declined to be named, said China's central planning agency, theNational Development and Reform Commission, has approved the acquisition but has yet to sign the agreement with Shell Refining.

Property developer Hua Yang Bhd ([You must be registered and logged in to see this image.] Valuation: 3.00, Fundamental: 1.90) saw a 2.52% drop in net profit to RM30.15 million or 11.42 sen per share on the back of marginally lower revenue at RM154.98 million in its third quarter ended Dec 31, 2015 (3QFY16) from a net profit of RM30.94 million or 11.72 per share and a revenue RM155.5 million last year due to lower sales.

In a bourse filing, Hua Yang declared an interim dividend of five sen for FY16. The dividend entitlement and payment date will be announced in due course.

In its nine months ended Dec 31, 2015 (9MFY16), net profit rose 9.7% to RM88.74 million or 33.61 sen per share compared to RM80.9 million or 30.63 sen per share in 9MFY15, while revenue grew 3.87% to RM448.2 million from RM431.46 million a year ago.

In a statement, Hua Yang said the total unbilled sales at the end of the quarter under review stood at RM530.5 million, while its undeveloped land bank stood at 540 acres, with a potential GDV of RM4 billion.

It added that Hua Yang's projects in the Klang Valley were the largest contributors to the revenue total making up 47%, followed by Johor (30%), Perak (21%) and Negeri Sembilan (2%).

CapitaLand Malaysia Mall Trust's (CMMT) distributable income for its fourth quarter ended Dec 31, 2015 (4QFY15) came in at RM42.3 million, up 5.3% from 4QFY14's RM40.2 million, mainly on higher rental revenue due to contributions from Tropicana City Property and the revamped East Coast Mall.

In a bourse filing, CMMT also announced a distribution per unit (DPU) of 2.09 sen for the quarter under review, down 7.5% from 4QFY14's DPU of 2.26 sen; the DPU for 4QFY15, however, was based on the enlarged units of 2.02 billion units (as at 4QFY14: 1.8 billion).

CMMT's total DPU for FY15 was 8.6 sen, down 3.5% from 8.91 sen in FY14. Based on the closing price of CMMT units today, its yield stands at 6.01%.

Meanwhile, its 4QFY15 net property income was up 11.1% at RM60.6 million from RM54.6 million a year ago, as gross rental income came in at about RM73 million from RM63.2 million in 4QFY14, mainly on higher rental rates from new and renewed leases, except for Sungei Wang Plaza.

In a separate statement, CapitaLand Malaysia Mall REIT Management Sdn Bhd, the manager of CMMT, said unitholders can expect to receive a total DPU of 3.99 sen (for the period between July 9 and Dec 31, 2015) on Feb 29.

Instacom Group Bhd ([You must be registered and logged in to see this image.] Valuation: 0.20, Fundamental: 1.95) announced that its subsidiary Vivocom Enterprise Sdn Bhd has received and accepted a LoA from Coneff Corp Sdn Bhd today for the provision of construction works for two blocks of commercial towers comprising service apartments, two storeys of retail units, one storey of recreational centre and seven storeys of car parks in Sungai Besi, Kuala Lumpur.

The project is valued at RM240.4 million.

In its filing to Bursa today, Instacom said Coneff is wholly owned by Bina Bersatu Sdn Bhd, which in turn is 70% owned by Zamurni Sdn Bhd.

Coneff was formed to undertake development projects, namely the joint-development Desa Tasik Project with Dewan Bandaraya Kuala Lumpur since 1989 to develop the area.

The LoA is subject to agreement to be entered into between Vivocom and Coneff.

The project will commence on March 8, 2016 and shall be completed within 45 months from the date of commencement.

(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.)
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