KUALA LUMPUR (Sept 15): Based on corporate announcements and news flow today, companies that may be in focus on Thursday (Sept 17) could include the following: SapuraKencana, Fututech, Tanjung Offshore, Kronologi Asia, Astro, Mega First and Zelan.
SapuraKencana Petroleum Bhd’s net profit sank 77% to RM104.09 million in its second quarter ended July 31, 2015 (2QFY16) from RM445.8 million a year earlier, primarily on massive asset impairment provision of RM539.9 million.
Revenue grew to RM2.8 billion from RM2.69 billion.
Cumulative 1HFY16 net profit fell to RM364.78 million from RM955.22 million a year earlier. Revenue was lower at RM5.06 billion compared to RM5.14 billion.
President and group chief executive officer (CEO) Tan Sri Shahril Shamsuddin said the RM23 billion order book to date provided certainty in SapuraKencana’s revenue over the next few years, with RM 5.8 billion already secured for FY17.
Fututech Bhd, which signed a share sale agreement for the buyout of construction firms Kerjaya Prospek (M) Sdn Bhd and Permatang Bakti Sdn Bhd, has proposed a private placement to raise RM150 million, based on an indicative issue price of RM1.50.
The proceeds raised from the private placement, according to the group, will be utilised for working capital, while some RM55.2 million will fund the proposed RM458 million acquisition of the two construction companies from its controlling shareholder.
However, Fututech CEO Evan Loo expects the private placement to be carried out in January next year, after the completion of the proposed acquisition.
Tanjung Offshore Bhd’s subsidiary Tanjung Offshore Services Sdn Bhd (TOS) has signed a three-year collaboration agreement with China-based Yantai Jereh Petroleum Equipment & Technologies Co Ltd, a subsidiary of Jereh Group, to explore potential oil and gas opportunities in Malaysia.
TOS will market Jereh’s services in Malaysia while Jereh will provide oil field equipment for projects awarded by Petroliam Nasional Bhd (Petronas).
According to TOS CEO Muhammad Sabri Abd Ghani, the company will be able to improve its operating efficiency, lower cost and implement continuous technology enhancement with Jereh’s technology.
Controlling shareholder Piti Pramotedham has resigned from his position as executive chairman and group CEO of Kronologi Asia Bhd, citing health reasons.
Pramotedham, a Singaporean aged 51 who is also Kronologi’s largest shareholder with a 53.03% stake in the company, had also resigned as director of all subsidiaries and associated companies of Kronologi Asia.
Kronologi Asia said that its board of directors will advise in due course the appointment of a new chairman and group CEO.
In the interim, Kronologi Asia executive director and chief technology officer Teo Chong Meng Philip Dominic will assume Pramotedham’s duties and responsibilities.
Astro Malaysia Holdings Bhd recorded a flat net profit of RM137.24 million or 2.64 sen per share in the second quarter ended July 31, 2015 (2QFY16) compared to RM137.66 million or 2.65 sen per share in the previous corresponding quarter.
Its quarterly revenue rose 1.5% to RM1.37 billion against RM1.35 billion in the previous corresponding financial quarter. The group declared a second interim dividend of 2.75 sen per share of 10 sen for the financial year ending Jan 31, 2016 (FY16).
For the first half of financial year ended July 31 (1HFY16), Astro’s accumulated net profit grew 13.2% to RM305.54 million, or 5.88 sen per share, against RM265.99 million or 5.12 sen per share previously. Revenue expanded 3.7% to RM2.7 billion from RM2.603 billion previously.
Mega First Corp Bhd’s 80%-owned indirect subsidiary Don Sahong Power Company Ltd has entered into a concession agreement with the Government of The Laos People’s Democratic Republic, to develop the US$500 million (RM2.15 billion) 260MW Dan Sahong Hydropower Project.
The project will be in the Hou Sahong Channel of the Mekong River, in Champasak Province, Loas, and is a 260MW run-of-river hydropower project that is capable of generating about 2,000GWh of electricity per year.
It is expected to achieve commercial operation in early 2020. The concession period shall end on the date occurring 25 years after the commercial operation date.
According to Mega First, power generated by the project shall be sold to Electricité Du Laos under a power purchase agreement to be executed later.
The total project cost of approximately US$500 million is expected to be funded by internally generated funds and long-term debt, and the project is expected to enhance the long-term net assets and earnings of the Mega First Group.
BUT Zelan Holdings (M) Sdn Bhd, a wholly-owned subsidiary of construction firm Zelan Bhd, is entitled to IDR72.49 billion (RM21.84 million) in tax refund claims.
Zelan said the Supreme Court of Indonesia had ruled in favour of its Indonesian branch over a legal dispute about income tax paid for the financial year 2007.
The court had held that the income tax payable by BUT Zelan Holdings to Indonesian authorities for the financial year 2007 shall be IDR1.73 billion (about RM522,000).
As BUT Zelan Holdings had paid IDR74.22 billion (about RM22.36 million) in income tax and penalties, it stands to claim a refund of IDR72.49 billion (about RM21.84 million).
(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.)