KUALA LUMPUR (Oct 17): Here is a brief recap of some business news and corporate announcements that made the headlines on Thursday:
Genting Malaysia Bhd (KL:GENM) said the lawsuit filed by RAV Bahamas Ltd, seeking over US$600 million (RM2.57 billion) in damages related to Resorts World Bimini's operations, will not materially impact the group's financial results or operations. The complaint, lodged on Oct 7 in the US District Court for the Southern District of Florida, was served on GAI, Genting’s indirect subsidiary, on Oct 11. The casino operator said the group is currently preparing a comprehensive legal response, which will be filed with the court in the coming weeks. — GenM says US$600m Bimini lawsuit won't impact its financial results, operations
Varia Bhd (KL:VARIA) has secured a contract worth RM571.8 million from the Social Security Organisation (Socso) to build a rehabilitation centre in Setiu, Terengganu. Its wholly-owned subsidiary, Pembinaan Teguh Maju Sdn Bhd, accepted the 30-month contract on Thursday. The date of site possession is set for Oct 29, 2024, with expected completion on April 28, 2027. The latest contract win lifted Varia’s current orderbook to RM3.08 billion from RM2.24 billion as of Aug 27. — Varia bags RM572m Socso rehabilitation centre project in Terengganu
Salcon Bhd’s (KL:SALCON) wholly-owned subsidiary, Salcon Engineering Bhd, has won an external water reticulation work package for RM18.5 million. The contract was awarded by LTE Engineers Sdn Bhd on behalf of F&N AgriValley Sdn Bhd in Gemas, Negeri Sembilan. The work packages are split into two sections and are related to Fraser & Neave Holdings Bhd’s (KL:F&N) integrated dairy farm. — Salcon wins RM18.5 mil water reticulation contract
SC Estate Builder Bhd (KL:SCBUILD) and consortium partner JK Spark Sdn Bhd plan to bid for Sabah’s large-scale solar power plant projects, initiated by the Energy Commission of Sabah (ECoS). The inaugural bidding process seeks to secure the development of LSS PV power plants with a total capacity of 100MW. The target is for the plants to begin operations in 2026. SC Estate said the consortium aims to bid for solar power projects with capacities ranging from 1 MWac to 15 MWac. — SC Estate Builder to bid for Sabah LSS power plant projects
AME Real Estate Investment Trust's (KL:AMEREIT) proposed acquisition of four single-storey detached factories in Johor for RM119.45 million has been deemed fair and reasonable, according to independent adviser MainStreet Adviser Sdn Bhd. The independent adviser noted the RM119.45 million price tag represents a 2.1% discount, or RM2.55 million, to the properties' fair value of RM122 million. The terms of the sale and lease agreements are also deemed fair and not detrimental to non-interested unitholders. AME REIT is buying the four industrial properties from its 49.62% parent AME Elite Consortium Bhd (KL:AME) in an effort by the latter to realign its property investments. — AME REIT's proposed acquisition of Johor factories for RM119 mil is fair and reasonable, says independent adviser
Ancom Nylex Bhd (KL:ANCOMNY) reported a 36.5% decline in its net profit for 1QFY2025, as its agricultural chemicals business was affected by higher freight costs arising from geopolitical conflicts. Net profit for the quarter fell to RM13.21 million or 1.41 sen per share, compared with RM20.80 million or 2.20 sen per share over the same period last year. This came despite revenue rising 5.8% year-on-year to RM515.54 million from RM487.36 million. The company declared a first interim dividend in the form of a distribution of treasury shares, offering four treasury shares for every 100 shares held. — Ancom Nylex's 1Q net profit drops as agrochemical business hit by geopolitical instability
Malaysia Airports Holdings Bhd (KL:AIRPORT) reported passenger growth of 36.1 million for the third quarter of 2024, representing a 10% y-o-y increase and coming close to pre-pandemic levels. Passenger traffic in 3Q2024 was driven by international passenger movement, which exceeded 3Q2019 levels by 7.4%, amounting to 18.9 million passengers. This contrasts with the more modest recovery in domestic travel, which reached 88.9% of pre-pandemic levels, at 17.2 million passengers. — MAHB’s 3Q2024 passenger movement up 10% y-o-y to 36.1 mil
Packaging company HPP Holdings Bhd (KL:HPPHB) reported a 54.5% decrease in its net profit to RM1.04 million for the 1QFY2025, from RM2.29 million a year ago, hurt by lower sales and foreign exchange loss due to a strengthening ringgit. Revenue for the quarter fell 12.4% to RM16.65 million from RM19.01 million in the previous year’s corresponding period, as the company saw lower sales from the electronic and electrical (E&E) and sheath contraceptive industries. No dividend declared during the quarter. — Lower sales and forex hit more than halve HPP Holdings’ 1Q profit
Medical equipment and furniture manufacturer LKL International Bhd (KL:LKL) has announced a proposed JV with PT Fasilitas Teknologi Nusantara (Fastech) to expand into the Indonesian healthcare market. The JV will primarily engage in the business of manufacturing, selling, trading and distribution of medical equipment, medical devices and medical furniture in Indonesia. Fastech is principally engaged in the business of providing workforce solutions in Indonesia that specialises in providing high quality labour resources. — LKL expands into Indonesia's medical equipment and furniture market via JV
Mechanical and electrical engineering services provider Bintai Kinden Corp Bhd (KL:BINTAI) has joined forces with a China-based company to bid for construction projects in Malaysia. The firm has entered into a MOU with Henan Province Installation Group (M) Sdn Bhd, a subsidiary of China's Henan Province Installation Group Co Ltd, which specialises in machinery installation and construction projects. The collaboration will target high-rise commercial and residential buildings, industrial facilities, data centres, as well as sub-stations and power distribution networks. — Bintai Kinden partners China-based firm to bid for construction projects