FBMKLCI 1571.56 DJ-23.54 CRUDE OIL90.92 RM 3.03

Suria Capital Holdings Bhd's wholly owned subsidiary SCHB Engineering Services Sdn Bhd and its consortium partners have been awarded a RM1bil engineering, procurement, construction and commissioning (EPCC) contract for a power plant project in Sabah. The contract from Kimanis Power Sdn Bhd involves the construction of a 300MW combined-cycle gas turbine gas-fired power plant project in Kimanis, Sabah, Suria Capital told Bursa Malaysia yesterday. The construction period is three years. SCHB's consortium partners include CTCI Corp, CTCI Overseas Corp Ltd, CTCI Malaysia Sdn Bhd and Steamline (M) Sdn Bhd.

Johor Corp Bhd (JCorp) says it will focus on enhancing its core businesses and resolving its debt of RM3.6bil this year. “Our primary focus now is to enhance our core businesses. JCorp's majority owned public-listed companies are spearheading the palm oils, foods and restaurant, and healthcare divisions while JCorp directly manages property development and hospitality divisions.” “The immediate task now is to resolve the debt of RM3.6bil that comes due mid-next year and we have identified the means of achieving this,” it said in a statement yesterday. JCorp said it would be assisted by Maybank and CIMB Bank.

The Selangor government had in December promised to allow the federal government to build the Langat 2 water treatment plant, which is part of the Pahang-Selangor Interstate Water Transfer Project. Energy, Green Technology and Water Minister Datuk Seri Peter Chin Fah Kui said his ministry, however, was still waiting for the approval in writing from the state government, which was expected to be received this month. “Although we are seven months late, the state government's latest decision means that we can proceed. And we are going ahead with the tender this month or by February. The approval means the last hurdle has been removed,” he said after meeting with the ministry's officers and staff, here yesterday.

 

Sime Darby, through Sime Darby Property, will be launching 15 projects across 10 townships in the first half of this year. Its head of marketing development, Henri Young said, the townships include Putra Heights and USJ Heights in Subang Jaya, Denai Alam (Shah Alam) and Bandar Bukit Raja (Klang). "There is still strong demand for landed and residential properties in Malaysia," he said yesterday. He said the company's previous projects in Denai Alam, Bandar Bukit Raja and the USJ Heights townships were sold out within two months.

Hubline’s core business is the provision of container and dry-bulk shipping services as well as vessel chartering. RAM Ratings said the revision in outlook is premised on our concerns that the group’s financial performance may remain depressed by weak freight rates (for both its container and dry-bulk shipping segments) and poor dry-bulk cargo volumes. “Large incoming supply of newbuilds will further pressure freight rates which have yet to stage a meaningful recovery. At the same time, uncertainties in economic recoveries of advanced economies may further dampen market outlook,” said the ratings agency.

SEG INTERNATIONAL BHD declared a special dividend of 14 sen per share which will go ex on Jan 27 while its entitlement date is Jan 31.

The Perak state government is considering setting up its own low-cost carrier terminal (LCCT) in the northern part of the state. "We have had a few discussions with AirAsia on the matter and we have proposed several locations in Perak, and they have stated their preference for one particular location," Menteri Besar Datuk Seri Zambry Abd Kadir said yesterday. The site is expected to be in the vicinity of Parit Buntar and Taiping, which is in the area of the Northern Corridor Economic Region. Zambry explained that the state government was waiting for the right time to bring it up to the federal government to decide on the suitability and viability of the project.

FBMKLCI 1566.49 DJ+83.56 CRUDE OIL 92.08 RM 3.03

Faber Group Bhd subsidiary Faber Ltd Liability Co (FLLC) has received a letter from the Department of Municipal Affairs, Western Region Municipality, Abu Dhabi, for the non-renewal of three contracts with an estimated annual total contract worth RM184mil. The contracts are for the provisions of civil, mechanical and electrical maintenance services for low-cost houses at Madinat Zayed and Liwa in Abu Dhabi. The services of FLLC for the contracts will cease with effect from April 3 and June 1. The non-renewal of the contracts shall have an effect to the group's earnings and the net assets per share of approximately 4 sen for the financial year ending Dec 31, 2011.

Tenaga Nasional Bhd (TNB) has signed two agreements worth some RM2.15bil for its Ulu Jelai hydroelectric project. The company said the first agreement was with SMEC International Pty Ltd and SMEC (M) Sdn Bhd consortium, which would provide detailed engineering design for the main civil works, engineering design review for electrical and mechanical works, project management and site supervision.

The contract value was A$22.1mil and RM31.1mil, which was equivalent to RM99.6mil at the prevailing exchange rates, it told Bursa Malaysia yesterday.

The second agreement is with Tindakan Mewah Sdn Bhd and Salini Costruttori SpA consortium. Under this contract, the consortium will be responsible for the main civil, electrical and mechanical works.

The main civil works consist of the construction of a dam, two water-transfer tunnels and an underground power house. It said the value of the second contract was 307 million euros and RM818.1mil, which was equivalent to RM2.05bil at the prevailing exchange rates.

Affin’s share price rose its 10-year high on Wednesday at RM3.59, despite its management dispelling rumours of a takeover by CIMB Group Holdings Bhd. Later, CIMB stated it is not involved in any discussions relating to a possible acquisition or merger with Affin Bank or any of its related companies. Its shares may see some selling pressure.

Naim Holdings moved a further step ahead for the Sabah Oil and Gas project after signing a memorandum of understanding (MoU) on the relevant works involving oil and gas facilities. Its unit Naim Engineering Sdn Bhd had signed the MoU with Sabah Oil & Gas Contractor Association (SOGCA) and Dewan Perniagaan Melayu Malaysia Negeri Sabah. The MoU was to record certain basic understanding reached between the parties to participate in the relevant works of the O&G facilities under the contract secured recently for the engineering, procurement, CONSTRUCTION and commissioning of the project.

Green Packet plans to invest RM250 million in 2011 to expand its sites from 1,000 now to 1,600. Each site has about three base stations.  Group managing director CC Puan said this would increase its coverage to about 52% of the population of West Malaysia by the end of this year, from about 45% of the population at present.

Property developer SP Setia Bhd (8664)has emerged as the leading contender to build the Penang International Convention Centre (PICC) on the grounds of the Penang International Sports Arena (Pisa). According to sources, SP Setia is likely to get a 30-year concession to build and operate the convention centre, which will include other components like a hotel and retail outlets. "The proposed project is likely to cost over RM200 million," one source told Business Times yesterday. Another source said SP Setia is one of four companies which had responded to a request for proposal from the Penang state government. The Penang Island Municipal Council had closed the tender in September last year.  

AN ambitious RM6.5 billion plan to develop an integrated resort in Karambunai near Kota Kinabalu has received support from the Sabah government. The state cabinet gave its nod after a delegation led by Karambunai Corp Bhd president Tan Sri Dr Tsen Lip Keong provided a briefing on the project yesterday. Chief Minister Datuk Seri Musa Aman said the development could strengthen Sabah's position as a tourism hub in the region and provide employment opportunities. "According to the briefing, 20,000 to 50,000 jobs will be made available in the next 10 years.

Tejari Technologies is confident of growing its revenue by 20% this year with the expandion of its retail and wholesale businesses in information and communication technology (ICT products. The recent acquisition of PC3 Technology SV and Essential Action SV have helped boost the group;s revenue for nine month period ended Aug 31.  

Malaysia Airports is set to receive four new airlines flying into KL International (KLIA) in sepang this year. MAHB marketing manager Mohamed Sallauddin Mohamed Shah said these airlines from the Middle East, India, South Afgrica have expressed strong interest to fly into KLIA and some indicated plans to commence services dyibng rge summer and witer period.

Perodua, Malaysia’s number one car seller in 2010, has set aside RM614.2mil for capital expenditure (capex) this year. Of this amount, between RM250mil and RM300mil will be utilised for the development of a new model, which is expected to further boost overall sales. “New models are needed in this business and we will also work towards increasing the local content. At present, the Alza has the highest local content of 90% while for other models, such as the Viva and Myvi, it is above 80%,” managing director Datuk Aminar Rashid Salleh told a press conference after unveiling the company’s sales figures for 2010 yesterday. He also said the new model would be a small compact car, but declined to say if it would be a completely new model or replacement of units of the current models in Perodua, as the Myvi has been in the market for five years.