Capital markets news summary for Tue 14 Feb 2023

Capital markets news summary for Tue 14 Feb 2023

Hong Seng expands further into EV

The company with businesses in glove manufacturing, healthcare services and supplies and moneylending is acquiring Alliance EV from CSH Alliance for RM20m. Alliance EV is collaborating with BYD Malaysia for the distribution of the BYD T3 commercial electric van, the setting up of a 4S service centre and the construction of a local assembly plant in Tanjung Malim. Hong Seng previously announce its memorandum of understanding with US-based EoCell to create a regional manufacturing hub in Malaysia for electric vehicle (EV) batteries and the supply of power storage solutions. Hong Seng closed at 20 sen while CSH Alliance closed at 6.5 sen.

Lagenda Properties buys Kulai land for RM4b GDV township

The Perak-based developer will be making its first foray in Johor. The 1,075.48-acre parcel is purchased from Seriemas Development – a subsidiary of Permodalan Nasional Berhad – for RM8.50 per square foot or RM398.2m. The company will pay for the land via internally generated funds and borrowings. The acquisition – which will conclude by end 2023 – will increase the company’s landbank from 3,726 acres to 4,801 acres. The Kulai township will comprise 12,000 residential units plus commercial units. Lagenda Properties is 72% controlled by Datuk Jimmy Doh Jee Ming and his brother, Datuk Doh Jee Chai. The counter closed at RM1.27.

MHB won RM1.4b contract from Carigali-PTTEPI

Under the 22-month contract, Malaysia Marine and Heavy Engineering (MHB) will provide engineering, procurement, construction and installation (EPCI) services for 5 wellhead platforms, 5 subsea pipelines and host tie-in works. Each wellhead platform weighs 2,000 metric tonnes and will be installed in water depths of 55-65m south of the Gulf of Thailand, off the coast of Thailand and Malaysia, in the Malaysia-Thailand joint development area. MHB beat prominent regional players for its third major win within the last 1 year, after the Rosmari-Marjoram project from Shell and Kasawari carbon capture and storage project from Petronas. The counter has recovered to pre-Covid levels closing at an almost 3-year high of 75 sen.

UEM plans to sell CIMA

UEM Group Berhad (UEM) – a subsidiary of Khazanah – has engaged financial advisers on the proposed sale. Cement Industries of Malaysia Berhad (CIMA) manufactures and sells cement and ready-mixed concrete. It was taken private by UEM and delisted in 2008. UEM, on the other hand, began as a construction company and evolved into a conglomerate focused on expressways, township and property development, engineering and construction, and asset and facility management. UEM is seeking a RM1b valuation for CIMA. Several players in the industry have shown interest.

Rashid Manaf rumoured to be white knight for EATech

The co-founder of Eco World is said to be buying a portion of the shares owned by Sindora – a subsidiary of Johor Corp. Sindora holds 50.05% of EA Technique (EATech) – a PN17 company with 1 month to submit a financial regularisation plan to Bursa. EATech has recorded losses in 2020 of RM105.5m and 2021 of RM150.6m. For 9M2022, losses have narrowed to RM2.94m. In Dec 2022, creditors approved a scheme of arrangement and the court allowed the company to dispose of 5 vessels. The company has already sold 2 and is in the process of selling a third vessel. On 27 Oct 2022, the company announced winning a 2-year contract from Petronas Floating LNG 1 for tugboat services. The contract provides for fixed rates and is worth RM41.06m. The counter closed at 25 sen, up from 3 sen in Jul 2022.