KUALA LUMPUR (Apr 8): Based on news flow and corporate announcements today, stocks that may lure interest on Tuesday (April 9) could include MMC, WCT, Boustead, Alam Maritim, Nextnation, LPI Capital and CMSB.
MMC CORPORATION BHD [] said its 50% joint venture (JV) company, Jazan Economic City Land Co Ltd, has had its rights as the developer of Jazan Economic City in Saudi Arabia terminated, with immediate effect.
MMC said the termination was “a result of circumstances which gave rise to several difficulties that interrupted the progress of the project.”
MMC had in 2008 announced that the Jazan Economic City, located in Jizan Province within the Kingdom of Saudi Arabia, had attracted investments worth US$30 billion.
“Until the status of the termination is clearer, the board is not in a position to determine precisely the impact on the group’s future earnings. The board will be engaging advisers to advise on matters relating to the termination and compensation,” said MMC in its filing with Bursa Malaysia.
The Jazan Economic City Land Co. Ltd is a JV company between MMC Corp and Saudi Binladin Group, with each party holding a 50% stake.
WCT BHD [] said it has lost the Batinah Expressway joint venture project contract worth in excess of RM1 billion in Oman, after the Sultanate decided not to proceed with the project.
WCT said the Ministry of Transport and Communications of Oman had on April 6 informed the company and Oman Roads Engineering Company LLC (its JV partner) of the decision not to proceed with the project.
WCT did not specify the reason why the Omani sultanate did not proceed with the project.
WCT had on Aug 16 last year announced that it had been awarded the project together with its 80:20 JV with Oman Roads Engineering Company.
It had then said the contract sum was 123.22 million Omani Riyals (more than RM1 billion).
BOUSTEAD HOLDINGS BHD [] expects its six core divisions to do well and the group’s earnings to be higher for the current financial year to December 2013.
According to group deputy chairman and managing director Tan Sri Lodin Wok Kamaruddin, Boustead’s heavy industries division, which incurred losses last year, would turnaround this year.
He told reporters after the company’s AGM today: “The RM9 billion contract that was awarded to BOUSTEAD HEAVY INDUSTRIES CORP [] Bhd to build six battle ships would help BHIB’s performance.
“Hopefully, we (Boustead’s net profit) could breach the RM1 billion mark soon…this is my personal target.”
Boustead Holdings posted lower net profit of RM417 million, or 40.3 sen per share, for the financial year ended Dec 31, 2012, compared with RM611 million, or 59 sen per share in the previous year.
ALAM MARITIM RESOURCES BHD [] said a wholly owned unit of the company has been awarded a RM61 million service contract from Petronas Carigali Sdn Bhd for the provision of one unit accommodation vessel.
The contract has commenced from March 11, 2013, for five years, with an optional extension of another year.
In addition, Alam Maritim has also obtained a contract for the provision of one unit platform supply vessel and an extension of contract for one unit work barge from two established oil and gas services companies.
The platform supply contract is worth RM12.96 million and the barge contract is worth RM10.92 million.
According to the company, these contracts are expected to contribute to its earnings and net assets for the financial year ending December 2013 and beyond.
NEXTNATION COMMUNICATION BHD [] (NCB) said it has inked an agreement with Al Batha group of the UAE to acquire the latter’s office building in Bangsar South for RM64 million.
After the purchase is completed, Al Batha will become a strategic shareholder in Nextnation.
NCB said that the purchase will be satisfied via the issuance of 192 million new shares of 10 sen each in NCB at the issue price of 30 sen each, together with up to 120 million free detachable warrants and a cash payment of RM6.40 million.
The Al Batha Group will emerge with an equity stake of up to 22.69% in NCB, and its stake could rise to 32.30% if it exercises all warrants issued to it.
NCB said on completion of this acquisition, its net assets per share will rise to 19 sen from 17 sen for the financial year ended April 30, 2013.
Al Batha Group is one of the largest private business groups in the UAE, according to its website.
LPI CAPITAL BHD [] said its net profit for the first quarter ended March 31, 2013 rose 33.76% to RM42.11 million from RM31.48 million a year earlier, on the back of an increase in revenue.
In a filing to Bursa Malaysia, LPI Capital said its revenue rose 5% to RM258.46 million from RM246.06 million a year earlier, due mainly to higher gross earned insurance premium.
Earnings per share rose to 19.11 sen from 14.29 sen, while net assets per share were at RM5.92.
On its outlook, the company said it is confident it will maintain its earnings momentum and continue to report good results for the next quarter of the year.
Cahaya Mata Sarawak Bhd (CMSB) said its 20% unit, OM Sarawak Sdn Bhd, has executed turnkey engineering, procurement and CONSTRUCTION [] (EPC) contract for the Ferro Alloy Smelting Project in Samalaju, Sarawak.
The signing of the EPC contract completes the final stage in the project’s planning and preparation process, paving the way for a full scale project construction phase to commence immediately.
CMSB’s group managing director Datuk Richard Curtis said the development of the Bakun Hydroelectric Dam and the Sarawak Corridor of Renewable Energy initiative will enable OM Sarawak to establish one of the world’s lowest cost greenfield Ferro Alloy plants.
He added that this in turn will accelerate CMSB’s growth and create long-term financial and strategic value for its shareholders.
OM Sarawak is targeting production to commence in 2Q14 and expects to achieve full commissioning and full production in second quarter of 2015.
Written by Ho Wah Foon of theedgemalaysia.com
No comments:
Post a Comment