KUALA LUMPUR (Jan 7): Here is a brief recap of some business news and corporate announcements that made the headlines on Tuesday:
Alliance Bank Malaysia Bhd (KL:ABMB) expects a positive financial year ending March 31, 2025 (FY2025) riding on strong momentum of loan growth, easing competition for funding, and stabilising asset quality. The bank’s group chief executive officer Kellee Kam told The Edge that it was still seeing strong momentum in loan growth in the third quarter ended Dec 31, 2024 (3QFY2025), and is optimistic of achieving loan growth of 10% and a return on equity (ROE) of more than 10% in FY2025. In terms of net interest margin (NIM), Kam said the banking industry as a whole is now past the “challenging” period for funding competition, and as such, NIMs are expected to be stable. — Alliance Bank confident of achieving 10% loan growth, ROE of over 10% in FY2025
UUE Holdings Bhd (KL:UUE), via its wholly owned subsidiary Kum Fatt Engineering Sdn Bhd, has secured contract extensions and renewals worth a total of about RM36.5 million from Komasi Engineering Sdn Bhd. The contracts cover underground cable installation and commissioning works within Tenaga Nasional Bhd’s (KL:TENAGA) distribution network. The first contract is a nine-month extension — valued at over RM22 million — for the installation, testing, and commissioning of 33kV underground cables and accessories for asset development in Terengganu and Kelantan. The extension is valid until Oct 8. The second contract is an 11-month renewal — worth RM14.5 million — for similar works involving 11kV underground cables and accessories for asset development in Johor. This renewal is valid until Dec 5. — UUE bags RM37 mil contracts for underground cable installation and commissioning works
Nestcon Bhd’s (KL:NESTCON) wholly owned subsidiary Nestcon Infra Sdn Bhd (NISB) has secured a RM25.01 million contract for earthworks and erosion control in Johor’s Senai Airport City. In tandem with the third phase of Senai Airport City’s industrial development expansion measuring some 300 acres, NISB has been appointed as the contractor for earthworks to provide investors with industrial plots ready with platform and corresponding infrastructure. The project will commence on Jan 13, 2025, and is expected to complete by July 12, 2026, and includes a 12-month defect liability period after completion, it said. — Nestcon wins RM25 mil earthworks contract for Senai Airport City project
Infomina Bhd (KL:INFOM) has secured a three-year contract worth RM22.35 million from the Road Transport Department to provide maintenance and support for the Automated Awareness Safety System. The contract covers back-end application, data centre infrastructure, disaster recovery systems, network infrastructure and communication systems. Infomina will also manage integration services with various entities for digital enforcement processes. The contract will run from Feb 1, 2025, to Jan 31, 2028. During this period, Infomina plans to explore advanced technologies such as 5G infrastructure and automated artificial intelligence to enhance image processing and ensure seamless integration between existing and new enforcement cameras. — Infomina gets RM22.35 mil contract to maintain enforcement camera system
ITMAX System Bhd (KL:ITMAX) said on Tuesday that it has secured a second contract worth RM11.8 million from the Penang Island City Council to deliver video surveillance services. Under the contract, ITMAX will be responsible for upgrading and maintaining select closed-circuit television (CCTV) cameras within the council’s existing video surveillance network. The contract will begin on Jan 13, 2025 to Sept 12, 2030, it noted. The scope of the contract includes integrating several of ITMAX’s in-house developed traffic-related artificial intelligence features, aimed at enhancing the efficiency and functionality of the current system. The maintenance period, meanwhile, is effective for 60 months, beginning Sept 13, 2025 until Sept 12, 2030. — ITMAX gets RM11.8m video-surveillance contract in Penang
KUB Malaysia Bhd (KL:KUB) is acquiring a building materials company from CI Holdings Bhd (KL:CIHLDG) in a related party transaction deal for RM20 million cash, as part of the group's strategy to broaden its revenue base. KUB said its wholly owned subsidiary Central Cables Bhd (CCB) had entered into a share sale agreement with CI Holdings, being the sole shareholder of the target company, Doe Industries Sdn Bhd. JAG Capital Holdings Sdn Bhd, the investment vehicle of Plantation Industries and Commodities Minister Datuk Seri Johari Abdul Ghani, is the largest shareholder in both KUB (62.8%) and CI Holdings (32.9%). Following the acquisition, Doe Industries will be a wholly owned subsidiary of CCB. — KUB Malaysia acquires buildings materials firm from CI Holdings for RM20m cash
Directors of MN Holdings Bhd (KL:MNHLDG) trimmed their stake as the share price surged to a record high recently. The company’s managing director Datuk Toh Eng Keat, plus two executive directors Datuk Loy Siong Hay and Datuk Dang Siong Diang, have collectively sold 18 million shares, equivalent to a 3.73% stake, to institutional funds via a direct business deal. The shares changed hands at RM1.13 per share. Its share price hit a record high of RM1.29 last Friday (Jan 3). The stock, which closed at RM1.26 on Tuesday, has more than doubled over the past 12 months, rallying from the low of 55 sen. Its market capitalisation swelled to RM644.98 million based on the closing price of RM1.26. Toh sold 7.5 million shares but he is still left with 90.79 million shares or 17.64% in the company. Loy and Dang sold 6.5 million and four million shares, respectively. Loy still holds 14.3% while Dang has a 6.24% stake in the company. — MN Holdings major shareholders sell shares as price soars to record high
Coastal Contracts Bhd (KL:COASTAL) said it has formed a 60%-owned subsidiary, Coastal Watt Energy Pte Ltd (CWE), as part of a strategic collaboration to expand into renewable energy projects in the Asia-Pacific region. Coastal said CWE was established by its wholly owned unit Coastal Drilling Pte Ltd (CDPL) on Monday, Jan 6, with a paid-up capital of S$100,000 (RM329,674). The unit will operate alongside Hongkong Watt Energy Tec Co Ltd (HWET), which will hold the remaining 40% stake in CWE. CWE is tasked with providing technical and project management services, as well as investing in renewable energy projects in accordance with a defined business plan. — Coastal Contracts forms renewable energy subsidiary for Asia-Pacific projects
Sentoria Group Bhd (KL:SNTORIA) said its former chief executive officer Datuk Loh Yuen Tuck has initiated legal proceedings against the company in the Industrial Court. The company said that it is currently reviewing the matter, and is in the process of responding to the legal case in accordance with the proper legal procedures. In August last year, Sentoria stated that Loh had repudiated his service contract by failing to return to work on July 1, 2024, making his contract untenable. Conversely, Loh contended that he was constructively dismissed, arguing that the company's actions unfairly compelled him to leave his position. — Former CEO files lawsuit against Sentoria in Industrial Court