PETALING JAYA (Dec 22): Based on corporate announcements and news flow today, companies in focus tomorrow (Wednesday, Dec 23) are YTL Power, Gas Malaysia, Magni-Tech, Aeon, Eversendai, Subur Tiasa, Mudajaya, Maxis and MHB.
YTL Power International Bhd yesterday signed a 30-year power purchase agreement (PPA) with PT PLN (Persero) worth US$2.7 billion (RM11.61 billion), marking the group's second investment in Indonesia.
In a statement, YTL Power said its 80%-owned subsidiary, PT Tanjung Jati Power Co Ltd, has inked the PPA to restate and amend the original PPA that was entered into on April 2, 1997.
Under the agreement, YTL Power is tasked to construct two units of 660-megawatt (MW) coal-fired power generating facility. Correspondingly, it will sell the energy and capacity from the facility to PLN.
The project is expected to contribute positively to YTL Power’s future earnings.
According to YTL Power, the project known as Tanjung Jati 'A' Coal Fired Independent Power project will be located at Cirebon, West Java, Indonesia, which will expire in 2051.
YTL Power managing director Tan Sri Dr Francis Yeoh said in the statement the project will utilise state-of-the-art coal-fired technology and will be among the most efficient of the new generation of plants in the Indonesian system.
YTL Power made its first Indonesian venture in 2004, after purchasing a stake in the 1,220MW Jawa Power project through its wholly-owned subsidiary PT YTL Jawa Timur.
YTL Power owns 57.14% shares of YTL Jawa Power Holdings BV, which in turn owns 35% of the Jawa Power project.
Gas Malaysia Bhd announced today that the government has increased the natural gas tariff for the non-power sector in Peninsular Malaysia by 17.11% on average, which will come into effect on next Friday (Jan 1, 2016).
In a filing with Bursa Malaysia, Gas Malaysia said the gas tariff has been increased to RM25.53/mmbtu (million British Thermal Units) from RM21.80/mmbtu.
The tariff for residential consumers, however, has been kept unchanged at RM19.52/mmbtu.
Consumers that use up to 600mmbtu annually, under tariff category B, will see a higher tariff of RM23.78/mmbtu, from RM20.30 previously.
The category C tariff (between 601mmbtu to 5,000mmbtu) will be 17.16% higher at RM23.90/mmbtu, while the category D tariff (between 5,001mmbtu to 50,000mmbtu) will go up 17.18% to RM24.14/mmbtu respectively.
The new tariff for categories E and F stood at RM25.19/mmbtu, from RM21.50/mmbtu previously, while those consuming more than 750,000mmbtu will be charged RM26.03/mmbtu, compared to the previous RM22.22/mmbtu.
Garments and plastic packaging products manufacturer Magni-Tech Industries Bhd saw its net profit soar 2.7 times year-on-year (y-o-y) to RM21.63 million in its second quarter ended Oct 31, 2015 (2QFY16) from RM8 million, largely due to the stronger US dollar against the ringgit during the period.
Revenue for the quarter rose 21.8% y-o-y to RM197.34 million from RM162.04 million, its filing to Bursa Malaysia today showed.
The company also declared a single-tier interim dividend of 5 sen per share, along with a special dividend of 3 sen per share for the financial year ending April 30, 2016 (FY16). Both dividends are payable on Jan 26, 2016, and will go ex on Jan 7.
The group said its profit before taxation for the current quarter rose by 165%, mainly due to higher garment revenue and higher other operating income, which was largely contributed by the favourable currency exchange rate.
It highlighted the stronger greenback resulted in a 27.5% increase in the segment's revenue, though that was partly offset by a 2.6% fall in revenue from its packaging business.
For the first half of its financial year (1HFY16), net profit more than doubled y-o-y to RM37.2 million from RM18.09 million, as revenue rose 15% y-o-y to RM391.16 million from RM339.28 million.
Going forward, the company expects its garments business to remain its major revenue contributor, which accounted for about 84.8% of its revenue for the financial period, and expects both its business divisions to remain profitable in the current financial year.
However, it remains cautiously positive for the remainder of FY16, amid the uncertainty in the global economy.
Aeon Credit Service (M) Bhd registered a net profit of RM53.36 million or 34.54 sen per share for the third quarter ended Oct 31, 2015 (3QFY16), on the back of RM245.78 million in revenue.
There were no comparative figures available, as the non-bank financial institution had changed its financial year-end to Feb 28 from Feb 20 previously.
For the cumulative nine months (9MFY16), Aeon Credit’s net profit stood at RM160.09 million or 103.94 sen per share, while revenue stood at RM706.94 million, its filing with Bursa Malaysia today showed.
Aeon Credit said its non-performing loans (NPL) ratio was 2.68% as at Nov 30, compared with 3.07% as at Nov 20, 2014 while total transaction and financing volume in 3QFY16 and 9MFY16 had risen by 8.71% to RM921.621 million and by 3.9% to RM2.658 billion respectively, compared with 3QFY15 and 9MFY15.
Aeon Credit recorded other operating income of RM21.628 million for 3QFY16, mainly from bad debts recovered, commission income from the sale of insurance products, and AEON Big loyalty programme's processing fee.
Ratio of total operating expenses against revenue for the quarter under review stood at 63.3% from the 60.4% seen in the quarter ended Nov 20 previously, mainly due to higher allowance for impairment losses on financing receivables.
Going forward, Aeon Credit expects to maintain its performance for the financial year ending Feb 29, 2016 (FY16), based on the implementation of its business plan.
Construction and engineering services specialist Eversendai Corp Bhd has inked a memorandum of understanding (MoU) with Puspajaya Aluminium Sdn Bhd (PASB) today to jointly bid for projects.
In a filing with Bursa Malaysia, Eversendai said under the MoU, PASB shall be awarded as a subcontractor for works comprising the design, supply, fabrication and installation of aluminium/glazing facade should Eversendai Corp Sdn Bhd secure an award.
Eversendai said the strategic tie-up with a facade specialised contractor of PASB's reputation, experience and standing will enhance the group's proposal for tenders as PASB has built a reputation as specialist in aluminium facade works with over 40 years of experience.
PASB is a private company involved in the design, supply, fabrication and installation of facade and aluminium products, and related subcontract works.
Timber products manufacturer Subur Tiasa Holdings Bhd saw its net profit for the first financial quarter ended Oct 31, 2015 (1QFY16) plunge 98.7% year-on-year (y-o-y) to RM72,000 from RM5.69 million, on lower export volume of logs, plywood and particleboard.
In its filing with Bursa Malaysia, the group also attributed the weaker performance to the drop in crude palm oil (CPO) and fresh fruit bunch average price, and higher raw material cost for timber and timber products.
Revenue for 1QFY16 was down 32.9% y-o-y at RM145.21 million from RM216.27 million.
On outlook, Subur Tiasa said timber prices are expected to sustain in anticipation of tight supply of logs and firm demand from timber consuming countries, especially India, which is a steadily growing market.
The company said the strong US Dollar (USD) against the ringgit will also help its export sales, which are predominantly in US dollar.
Mudajaya Group Bhd has bagged a RM220 million contract to undertake engineering, procurement, construction and commissioning works of warehouses and workshops for the refinery and petrochemical integrated development (Rapid) project in Pengerang, Johor.
In a filing with Bursa Malaysia today, Mudajaya said its wholly-owned subsidiary Mudajaya Corp Bhd was awarded the contract on Dec 11 by PRPC Utilities and Facilities Sdn Bhd, a subsidiary of Petroliam Nasional Bhd.
The contract is targeted to be fully completed by January 2018, with a construction period of 25 months from the date of the contract, it added.
Maxis Communications Bhd (MCB) is in non-binding, exclusive talks with India’s fourth-biggest mobile phone network operator Reliance Communications Ltd for a potential merger of Aircel with Reliance’s wireless business.
MCB holds a majority stake of 74% in Aircel, and Reliance is controlled by India’s renowned billionaire Anil Ambani. MCB also holds a 65% stake in Bursa Malaysia-listed Maxis Bhd.
Quoting a statement from Reliance, Reuters reported today that Reliance has entered into a 90-day exclusivity period with Maxis and its joint venture partner of Aircel, Sindya Securities and Investments Pvt Ltd.
The potential merger will exclude Reliance’s tower and optical fibre assets for which a separate sale process is on-going, Reuters reported.
The report also stated that any Maxis-Aircel deal will be subject to due diligence, documentation and regulation, as well as shareholders' and third party approvals.
Malaysia Marine and Heavy Engineering Holdings Bhd (MHB) has a secured a contract for offshore structure fabrication works at the Kumang Cluster gas fields in Sarawak as well as four other contracts for the Refinery and Petrochemical Integrated Development (RAPID) electro-mechanical, piping and structural works worth a total RM527 million.
In a statement, MHB said the contracts were secured via its wholly-owned unit Malaysia Marine and Heavy Engineering Sdn Bhd based on an exchange rate of RM4.30 to the US dollar, awarded by Petronas Carigali Sdn Bhd.
It expects to deliver within a year of the signing of the letter of award.
The contract entails works at the wellhead platform topside and jacket as well as telecommunication and instrumentation system tie-ins of the new F12 platform and existing platform.
MHB managing director and chief executive officer Tuan Haji Abu Fitri Abdul Jalil said with these latest contracts, MHB has secured an estimated RM975 million worth of projects for the year to date.
The group previously had secured four other contracts for RAPID projects from Toyo Engineering Corporation, Technicas Reunidas, and Punj Lloyd Sdn Bhd.
(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.)