Thursday 28 Mar 2024
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KUALA LUMPUR (Jan 29): Based on corporate announcements and news flow today, companies in focus on Wednesday (Jan 30) may include: Genting Bhd, LPI Capital Bhd, Axiata Group Bhd, DRB-Hicom Bhd, Eita Resources Bhd, Comfort Gloves Bhd, Sunway Bhd, Pavilion REIT, Uzma Bhd and Capitaland Malaysia Mall Trust.

Genting Bhd's indirect wholly-owned subsidiary Resorts World Las Vegas (RWLV) and Wynn Resorts Holdings LLC have reached a settlement agreement on a dispute involving trade dress and copyright infringement claims surrounding the design of the US$4 billion (RM16.45 billion) RWLV project.

Genting senior vice president of public affairs and development, Michael Levoff said the mutually beneficial settlement will allow Genting to continue to develop RWLV with minimal impact to cost and the overall project timeline.

LPI Capital Bhd posted a marginal 1.2% growth in net profit to RM84 million for the fourth quarter ended Dec 31, 2018 (4QFY18) from RM83 million a year ago, mainly contributed by its investment holding segment.

This resulted in improved earnings per share of 21.09 sen for 4QFY18 compared with 20.83 sen for 4QFY17.

Quarterly revenue also rose 7% to RM389.03 million from RM363.49 million in 4QFY17, which the group's founder and chairman Tan Sri Dr Teh Hong Piow attributed to higher premium written by its wholly-owned insurance subsidiary Lonpac Insurance Bhd.

It declared a second interim dividend of 42 sen for FY18, payable on Feb 27.

For the full FY18, LPI Capital posted a flat net profit at RM314.05 million compared with RM313.79 million in the previous year, while overall revenue for FY18 was up 2.9% to RM1.51 billion from RM1.47 billion in FY17.

Axiata Group Bhd’s unit is taking up an 80% stake in a Laotian telecommunications infrastructure services provider for 12.8 billion kip (RM6.08 million).

The group said its 63%-owned subsidiary edotco Group Sdn Bhd — through wholly-owned edotco Investments (Labuan) Ltd — is buying the stake from Viphet Sihachakr and Mekong Tower Co Ltd, adding that the move provides edotco Group with expansion and growth opportunities.

DRB-Hicom Bhd's 51%-owned indirect subsidiary Hicom-Teck See Manufacturing Malaysia Sdn Bhd (HTS) is partnering Shanghai-listed Jiangsu Xinquan Automotive Trim Co Ltd (XQ) to jointly design, develop and manufacture instrument panel, floor consoles and door trims and related components for vehicles in Malaysia.

DRB-Hicom said HTS has entered into a shareholders' agreement with XQ to form a joint venture (JV) company in Malaysia called Xinquan-Hicom Malaysia Sdn Bhd for the purpose.

XQ will hold a controlling 51% stake in the JV company, while HTS will own the remaining 49%.

Eita Resources Bhd has formed a 70:30 joint venture (JV) with Royal Malaysia Police Cooperative Bhd’s unit KOP Mantap Bhd for the provision of service, maintenance, repair, upgrade and modernise lifts, escalators and elevators to third parties.

Its wholly-owned subsidiary Eita Elevator (M) Sdn Bhd (EEM) has entered into a shareholders agreement with KOP Mantap for the formation of the JV called Eita KOP Sdn Bhd.

EM will manage the JV’s day-to-day operations; providing relevant training and syllabus in relation to lift and escalator studies to  Kolej Unikop students while providing job opportunities to the graduates. It also agreed to provide scholarships to five eligible children of police personnel with a value of RM20,000 each

Comfort Gloves Bhd is terminating its existing Employees’ Share Scheme (ESS) on the grounds that it is not suitable to attract, motivate and reward employees and directors.

The group said the exercise price of the ESS option is 93.5 sen per share. But based on the closing market price of Comfort Gloves shares on Jan 28 of 88 sen, the ESS options are currently out-of-the-money.

The total number of ESS that have been granted but yet to be exercised since the implementation of the existing ESS stood at 30.81 million shares. However, the group said that it was looking at alternative means of rewarding its employees and directors.

Sunway Bhd has set up a sukuk programme to raise up to RM10 billion in nominal value to finance its investment activities, capital expenditure and working capital, with proceeds, also being used to fund general corporate expenses, and for the repayment of existing or future borrowings.

The seven-year Islamic Commercial Papers/Islamic Medium Term Notes Programme under the syariah principle of Mudharabah is set up via its indirect wholly-owned unit Sunway Treasury Sukuk Sdn Bhd – with the first issuance expected in the first quarter of this year.

Pavilion Real Estate Investment Trust's (REIT) total net property income (NPI) increased 13.4% to RM100.98 million in the fourth quarter ended Dec 31, 2018 (4QFY18) from RM89.06 million a year ago, on higher revenue.

This resulted in an improved earnings per share of 3.3 sen for 4QFY18 compared with 2.73 sen for 4QFY17.

Quarterly revenue was up 13.6% to RM147.06 million from RM129.45 million a year ago, which the REIT attributed to income contribution from its new property Elite Pavilion Mall acquired at end-April 2018; a higher rental income from Pavilion Kuala Lumpur Mall after a repositioning exercise; and a higher occupancy rate at the Intermark Mall.

It also declared a final income distribution of 4.44 sen per unit for FY18, payable on Feb 28.

For FY18, Pavilion REIT's total NPI rose 16.1% to RM374.79 million from RM322.91 million in the previous year. Revenue grew 13.3% to RM554.98 million from RM490 million in FY17.

Uzma Bhd plans to buy another 15% stake in Setegap Ventures Petroleum Sdn Bhd for RM36 million in cash.

Uzma said the proposed acquisition allows the group to increase its equity interest in Setegap Ventures, as well as to consolidate a higher percentage of the latter's earnings.

In a filing with Bursa Malaysia today, Uzma said its wholly-owned subsidiary Tenggara Analisis Sdn Bhd had entered into a conditional share sale agreement with Nasri Nasrun Ventures Sdn Bhd (NNVSB) to acquire 694,350 shares in Setegap Ventures.

The proposed acquisition will increase Uzma's stake to 64% in Setegap Ventures.

CapitaLand Malaysia Mall Trust (CMMT) announced a 35% drop in its net profit for the fourth quarter ended Dec 31, 2018 (4QFY18) to RM34.63 million, from RM53.65 million a year ago, impacted by lower contribution from its Klang Valley shopping malls.

Net property income fell 8.2% to RM52.83 million from RM57.57 million in 4QFY17.

Quarterly revenue also contracted 5.5% to RM86.91 million from RM92.01 million in 4QFY17.

It is proposing a final income distribution of RM79.3 million or 3.88 sen per unit, payable on March 8. This brings its full-year DPU to 7.90 sen, lower than 8.22 sen in FY17.

For full year FY18, CMMT turned in a 16.3% decline in net profit to RM135.63 million from RM162.10 million in FY17, while revenue came in 5.1% lower at RM350.15 million from RM368.93 million.

Net property income stood at RM214.97 million, down 9.4% from RM237.15 million in 2017.

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