April 20th- Mah Sing, Integrated Logistics, Cycle & Carriage Bintang, Crest Builder, Hong Leong Industries, Syarikat Takaful Malaysia and Boustead He

by **Cals** Wed 20 Apr 2016, 01:41

Companies in the news

[size=28]Mah Sing, Integrated Logistics, Cycle & Carriage Bintang, Crest Builder, Hong Leong Industries, Syarikat Takaful Malaysia and Boustead Heavy Industries Corp

By Meena Lakshana / theedgemarkets.com | April 19, 2016 : 10:26 PM MYT

KUALA LUMPUR (April 19): Based on corporate announcements and news flow today, companies in focus on Wednesday (April 20) are Mah Sing Group Bhd, Integrated Logistics Bhd, Cycle & Carriage Bintang Bhd, Crest Builder Holdings Bhd, Hong Leong Industries Bhd, Syarikat Takaful Malaysia Bhd and Boustead Heavy Industries Corporations Bhd.
The Seremban High Court has struck out all claims by seven plaintiffs who said the RM359.5 million sale and purchase agreement (SPA) between Mah Sing Group Bhd's wholly-owned unit and three land trustees to be allegedly invalid last year.
In a filing with Bursa Malaysia today, Mah Sing said the court allowed its application to strike the claims made by the plaintiffs against its unit Grand Prestige Development Sdn Bhd with RM3,000 costs.
On Aug 5, 2015, the seven plaintiffs - each of them being one of the alleged undivided registered proprietors/beneficial owners to the land against the vendors - served a writ and statement of claim against Grand Prestige, claiming that the SPA was invalid.
Prior to that, on Aug 11, 2014, Grand Prestige had entered into a SPA with three vendors who are the surviving trustees appointed by all the registered and beneficial owners of the land to be their sole and absolute trustees in respect of the land.
The 425.4ha land in Rantau, Seremban, was to be developed into a mixed development with a gross development value of RM7.5 billion.
Integrated Logistics Bhd (ILB) is selling two of its Hong Kong-based warehousing outfits for HK$137.3 million (RM69.1 million), in line with its aim to divest most of its remaining business operations in China as it contends with an increasingly competitive business environment there.
ILB plans to utilise HK$119 million or 86.67% of total proceeds to repay borrowings.
"The group expects to realise interest savings of approximately HK$4.2 million per year from such repayment of borrowings, based on the interest rate of such borrowings of 2.39% to 6.41% per year," said ILB.
Subsequent to the disposal, which is estimated to be completed by the third quarter of 2016, ILB's gearing ratio will decline to 0.2 times, from 0.26 times as at FY15.
Cycle & Carriage Bintang Bhd saw its net profit rose 43.1% to RM9.5 million in its first quarter ended March 31, 2016 (1QFY16) from RM6.64 million a year ago, as its revenue improved on higher sales of lower-priced vehicles.
Revenue for the quarter under review came in 19.8% higher year-on-year (y-o-y) to RM315.14 million from RM263.12 million.
Cycle & Carriage chairman Haslam Preeston said demand remained healthy in the first quarter with unit sales up 50%, despite a softer market that reflected a weaker economic environment.
He said although the group recorded a 20% increase in unit sales in 1QFY16, revenue on a per unit basis was reduced as the sales mix was weighted towards lower-priced vehicles.
Preeston also said the group’s facility upgrades at Petaling Jaya and Georgetown were completed in 1QFY16, while the showroom at Jalan Tun Razak in Kuala Lumpur has been re-located to improved premises in the same area.
Crest Builder Holdings Bhd will be launching its RM1.1 billion gross development value (GDV) transit-oriented development, Latitud8, by the fourth quarter of this year.
Crest Builder managing director Eric Yong said preliminary construction works for the project already commenced last month and is looking to get works in full swing by the end of the year.
He said the project will begin contributing from next year onwards.
Yong added the group aims to sell 50% of the 420 residential units within the first six months of launching.
The 2.72-acre mixed development project will be jointly developed by Intan Sekitar Sdn Bhd, a 51%-owned unit of Crest Builder, and Syarikat Negara Bhd (Prasarana). Prasarana will be entitled to 21.2% of the project's GDV, which is equivalent to about RM233.2 million.
Hong Leong Industries Bhd (HLIB) saw its net profit for the third quarter ended March 31, 2016 (3QFY16) rise 27.4% year-on-year (y-o-y) to RM58.65 million from RM46.03 million, due to higher contribution from an associate company.
Revenue was up a marginal 0.7% y-o-y to RM555.03 million from RM551.05 million previously.
It has declared a second interim dividend of 19 sen per share and a special interim single-tier dividend of 10 sen per share for FY16, to be paid on May 24, 2016, bringing its total payout for the year-to-date period to 42 sen per share, compared to 29 sen per share in the same period last year.
For the first nine months of FY16 (9MFY16), HLIB recorded a 36.9% y-o-y rise in net profit to RM177.73 million from RM129.82 million.
Revenue, however, was largely flat at RM1.62 billion in 9MFY16 compared to RM1.61 billion in the first nine months of the previous financial year.
For 9MFY16, the group's PBT grew 6.7% to RM245.8 million from RM230.4 million a year ago due to higher profit contribution from an associated company, which was partly offset by higher production cost due to the weakening of the ringgit against the US dollar from our consumer products segment.
On prospects, HLIB said it expects the group's performance for both the consumer products and industrial products segment to be satisfactory in FY16.
Syarikat Takaful Malaysia Bhd reported a flattish net profit at RM46.62 million or 5.71 sen a share for its first financial quarter ended March 31, 2016 (1QFY16) from RM46.22 million or 5.67 sen a share a year ago, mainly attributable to lower tax expense during the quarter.
Syarikat Takaful reported 1QFY16 revenue of RM633.25 million, which was 12.6% higher than its 1QFY15 revenue of RM562.46 million, thanks to higher sales generated by both the Family Takaful and General Takaful businesses.
As for its prospects in 2016, the group said it will continue its value proposition of rewarding its customers with 15% cash back for General Takaful products and establish a strong foothold in the local insurance and takaful arena as the preferred choice for insurance.
BHIC Shipbuilding & Engineering Sdn Bhd (BSE), a wholly-owned subsidiary of Boustead Heavy Industries Corporations Bhd (BHIC), has clinched a RM54.9 million contract for the delivery of three tugboats to KFS Support Services Sdn Bhd.
BHIC said BSE and KFS had inked a contract for the design, supply, construct, testing and commissioning, and delivery of three units of 45 tonne bollard pull ASD harbour tugs to KFS.
The contract is subject to KFS fulfilling certain conditions, such as entering into a deal with Konsortium Pelabuhan Kemaman Sdn Bhd (KPK) and obtaining a support letter from a financial institution "confirming the provision of facility to fund the project", though it did not specify the name of the project.
BHIC said the contract will contribute positively to the earnings of BHIC Group for the financial year ending Dec 31, 2016.
[/size]