Malaysian Investor Thread

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ASEAN 2022
Part 15: Singapore | AirAsia
AirAsia xpress kicks off delivery service in Singapore
Bernama February 17, 2022 13:22 pm +08

SINGAPORE (Feb 17): The AirAsia xpress delivery service which kicked off on Thursday (Feb 17) here is set to help small businesses and social entrepreneurs to save costs and grow their businesses.

Customers can get parcels and documents delivered using motorbikes and cars in less than one hour via the instant delivery service, which is offered via the AirAsia Super App.

Same-day delivery service — where items are delivered within four to six hours — will be available in the near future.

“Serving the underserved has always been the core mission of AirAsia, and this expansion highlights our commitment to providing the best delivery services to consumers in the region,” AirAsia Super App head of delivery, Lim Ben-Jie said in a statement on Thursday.

He said small businesses and social entrepreneurs will benefit from the fastest and most affordable delivery service which offers great value service.

Apart from Singapore, AirAsia xpress also covers seven cities in Malaysia — Klang Valley, Melaka, Johor Bahru, Kota Bharu, Penang, Ipoh and Kota Kinabalu — as well as Bangkok, Thailand.

“Intercity, inter-state and international deliveries in other key cities across the region will follow soon,” said AirAsia, adding that the service is powered by Teleport, the logistics venture of Capital A Bhd.

To launch this new service, new AirAsia xpress users can order their first delivery at 50% off (capped at S$5).

Users may click on the ‘Xpress’ icon in the AirAsia Super App to book or visit https://www.airasia.com/aa/xpress/sg/ for more information.

https://www.theedgemarkets.com/artic...vice-singapore

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ASEAN 2022
Part 16: Indonesia | CIMB
CIMB Niaga's consolidated net profit 103.8% higher for FY21
Bernama February 21, 2022 21:14 pm +08

KUALA LUMPUR (Feb 21): CIMB Group Holdings Bhd’s 92.5% indirectly-owned subsidiary, PT Bank CIMB Niaga Tbk (CIMB Niaga), posted an audited consolidated net profit of 4.1 trillion Indonesian rupiah in financial year 2021 (FY21), a 103.8% year-on-year (y-o-y) growth, translating into earnings per share of 164.5 rupiah.

CIMB Niaga director Lani Darmawan said the results were encouraging with a double-digit return on equity (ROE), despite continued challenges due to the ongoing Covid-19 pandemic.

“We are optimistic that the recovery of economic and business activities across industries will continue in 2022.

“Therefore, we are cautiously optimistic of a better financial performance in 2022, driven by loan and operating income growth, complemented by strong discipline in cost management,” he said in a statement and filing with Bursa Malaysia.

He revealed the CIMB Niaga’s capital adequacy ratio (CAR) and loan to deposit ratio (LDR) were strong at 22.7% and 74.4% respectively as at Dec 31, 2021.

With total assets of 310.8 trillion rupiah as at Dec 31, 2021, CIMB Niaga maintained its position as Indonesia's second-largest privately owned bank by assets.

CIMB Niaga also had total deposits at 241.4 trillion rupiah, with the current account savings account (CASA) ratio rising to 61.3%.

“Current account and savings account grew by 35.1% (y-o-y) and 6.9% (y-o-y) respectively, driven largely by the bank’s continuous commitment to digital enhancement and customer experience,” he said.

Meanwhile, total loans stood at 181.6 trillion rupiah contributed mainly from 9.2% y-o-y growth in the consumer banking segment.

Mortgages grew by 9.1% year-on-year, while auto loans rose by 28.8% year-on-year.

In addition, CIMB Niaga Syariah maintains its position as the largest Islamic business unit in Indonesia, with total financing valued at 37 trillion rupiah, increasing by 15.8% y-o-y and deposits at 41.5 trillion rupiah or 39.2% y-o-y growth as at Dec 31, 2021.

Going forward, Lani said CIMB Niaga will continue to focus on asset quality, cost management, and CASA growth, expanding its consumer and small and medium enterprise (SME) businesses, and innovating on digital engagement.

https://www.theedgemarkets.com/artic...38-higher-fy21

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ASEAN 2022
Part 17: Indonesia | Maybank
Maybank Indonesia closes FY21 with 29.9% profit jump, amid lower provisions and stronger contribution from shariah banking
Izzul Ikram February 21, 2022 18:28 pm +08

KUALA LUMPUR (Feb 21): PT Bank Maybank Indonesia Tbk, part of Maybank Group, posted a 29.9% increase in profit after tax and minority interest (PATAMI) for the full year ended Dec 31, 2021 (FY21), as provisioning costs tapered due to pre-emptive provisioning, which was made in previous years, while its overhead costs were trimmed by 4.2% to 5.47 trillion rupiah (about RM1.6 billion), year-on-year.

It also saw a stronger performance from its shariah banking unit on the backdrop of a gradual economic recovery in Indonesia, the group said in a statement Monday.

The bank's PATAMI increase to 1.64 trillion rupiah from 1.27 trillion rupiah in FY20 was achieved despite NII, or net interest income, declining 2% to 7.12 trillion rupiah from lower loan growth and decreasing trend in loan yield, while fee-based income dropped 12.1% to 2.09 trillion rupiah amid declining global markets-related fees.

However, net interest margin, or NIM, grew 14 basis points to 4.7% in December 2021, due to improvements in the cost of funds and a healthy 18.5% growth of current and savings account (CASA), and a CASA ratio of 47.2%.

The bank was also able to maintain the growth momentum of its retail-related income such as bancasurrance, which grew 26.9% to 201 billion rupiah in December 2021, from 158 billion rupiah in the previous year.

Maybank Indonesia said its pre-emptive provisioning previously, combined with positive improvement from its restructuring during the year has now contributed to a drop in loan-loss provisions by 25.8% to 1.54 trillion rupiah.

"The bank’s consolidated non-performing loans (NPL) ratio stood at 3.7% (gross) and 2.6% (net) in December 2021 from 4.0% (gross) and 2.5% (net) in December 2020, supported by lower NPL balances, which declined by 10.8%.

"Meanwhile, the bank's loan at risk ratio (LAR Bank only) has improved and stood at 18.0% in December 2021 from 21.5% in the previous year. The improved bank’s LAR Bank only ratio was attributed [to] the improvement of loan quality, as the bank proactively took part in monitoring and restructuring customer loans," it noted.

Meanwhile, it said its Shariah First strategy has significantly contributed to its shariah banking unit's performance, as reflected by a 52.8% jump in the unit's profit before tax (PBT) to 450 billion rupiah in December 2021, from 295 billion rupiah in the previous year.

“Total shariah-compliant asset portion of Maybank Indonesia has reached 25%, the highest percentage of all banks with shariah business units in Indonesia. As a reference, to date, total shariah asset of Indonesia banking sector is at a level of 6.5% (Indonesia shariah banking statistics, Financial Service Authority (OJK), November 2021),” it said.

Maybank Indonesia president director Taswin Zakaria noted that while 2021 remained a challenging year for the bank given the second wave of Covid-19, he said the Indonesian government’s vaccination programme and implementation of health protocols contributed to accelerating the nation’s recovery towards the last quarter of 2021.

Moving forward, he said the bank is optimistic that public optimism and economic recovery momentum will continue in 2022, though other challenges remained.

“Amidst the uncertainties, we remain prudent in running our banking business to maintain the bank’s fundamentals and at the same time we look forward to optimise our acquisition efforts across our businesses by strengthening productivity and collaborating among various banking services, to deliver value for customers, as reflected in our mission, Humanising Financial Services,” he added.

Malayan Banking Bhd shares closed 14 sen or 1.62% higher at RM8.80 on Bursa Malaysia, giving the group a market capitalisation of RM104.53 billion.

https://www.theedgemarkets.com/artic...rillion-rupiah

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WORLD 2022
Part 14: Australia | Halal Development Corporation Bhd (HDC)
HDC collaborates with AUSTRADE to organise World Halal Business Conference Circuit 2022 in Melbourne
Bernama February 22, 2022 00:28 am +08

KUALA LUMPUR (Feb 21): Halal Development Corporation Bhd (HDC) is collaborating with the Australian Trade and Investment Commission (AUSTRADE) to host and organise the World Halal Business Conference Circuit 2022 in Melbourne, Australia in June.

HDC chief executive officer Hairol Ariffein Sahari said Malaysia and Australia have long been trade partners in the halal industry, notably in the food service such as dairies and meat, hospitality and manufacturing industries.

“This will complement Malaysia’s robust manufacturing sector which will continue to play a vital role in the country’s economic transformation.

“Last year, the manufacturing sector contributed about 22 per cent of the country’s gross domestic product (GDP) including a growing halal manufacturing subsector focused on food and healthcare products,” he said in his opening address at the World Halal Excellence Awards 2021 here on Monday (Feb 21).

He said the partnership would also enhance Malaysia’s standing as a preferred partner in the global halal ecosystem and create increased commercial opportunities for Australian and Malaysian stakeholders in the growing halal economy.

“This collaboration is not only subject to market insights and partnership opportunities. Importantly, it will include projects to enhance trade, exchange of market intelligence know-how, investment in halal parks, training and consultancy and co-organising halal-related events,” said Hairol Ariffein.

Meanwhile, the halal industry is currently experiencing an undersupply situation in the global market, he said.

“Hence the local halal players must make full use of this strong halal brand to venture abroad and establish a bigger market share within the global halal market.

“These present opportunities to capture the estimated global consumption market of halal goods and services expected to grow at 4% annually to reach US$2.4 trillion in 2024,” he added.

The halal industry is expected to contribute 8.1% to the country's GDP and generate RM56 billion export revenue in 2025, compared with RM31 billion in 2020 as per the 12th Malaysia Plan.

https://www.theedgemarkets.com/artic...2022-melbourne

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ASEAN 2022
Part 18: Indonesia | TDM Bhd
TDM's Indonesian unit charged over 2019 fire incident
Izzul Ikram February 22, 2022 18:57 pm +08

KUALA LUMPUR (Feb 22): TDM Bhd's Indonesian palm oil unit PT Rafi Kamajaya Abadi (RKA) is facing a charge in relation to a fire incident in 2019 at its land in West Kalimantan province.

In a filing on Tuesday (Feb 22), TDM said that a public prosecutor of the Indonesian state of Sintang has filed a charge against RKA under Article 99(1) — causing environmental damage surpassing standard criteria due to negligence.

It also faces another charge under 116(1) — in the event environmental crime is committed by, for and on behalf of a business entity — which relates to environmental protection and management.

The first mention of the charge was held on Feb 21, 2022, at the Court of Sintang, West Kalimantan, according to TDM.

Under Article 99(1), if convicted, RKA will be subject to imprisonment of not less than one year and not more than three years, as well a fine of not less than one billion rupiah (about RM292,000) and not more than three billion rupiah (about RM875,000).

Pursuant to Article 116(1), the penalty shall be imposed on "the said business entity and/or person ordering the crime or person acting as activity manager in the crime".

"The management is analysing its potential financial and operational impact against RKA, the company and the group.

"As at the date of this announcement (Feb 22), there is no material impact on the operations of RKA and the company," it added.

TDM noted that based on the advice of RKA's lawyers, it said the company has grounds to defend and dismiss the charge. The next mention date of the case has been fixed for March 7.

Shares in TDM closed unchanged at 28 sen, giving it a market capitalisation of RM474.37 million.

https://www.theedgemarkets.com/artic...-fire-incident

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ASEAN 2022
Part 19: Myanmar | Axiata Group Bhd
Axiata on planned edotco listing: Myanmar situation a challenge
Justin Lim February 22, 2022 19:10 pm +08

KUALA LUMPUR (Feb 22): The political upheaval in Myanmar is posing a challenge to Axiata Group Bhd's plan to list its telecommunications infrastructure unit edotco Group Sdn Bhd, according to Axiata president and group chief executive officer Datuk Izzaddin Idris.

edotco operates and manages a regional portfolio of over 42,000 towers across Malaysia, Myanmar, Bangladesh, Cambodia, Sri Lanka, Pakistan, Philippines and Laos.

The group’s concern is how the market will react to Myanmar being part of its portfolio, Izzaddin told a press briefing Tuesday.

"We have been advised that as long as we have Myanmar as part of our portfolio, it can be a bit of a challenge if we try to list edotco.

"When a company is listed, we try to make sure we have a good investor base, with good and sustainable valuation," he said.

Having said that, Izzaddin said edotco is in a good position to be able to raise capital to execute its expansion. "I think the bigger issue for me and for the edotco team is Myanmar — how that is addressed if we were to try to seek for listing it in any of the markets. Some markets may take a different view from other more developed markets."

He further said the potential listing of both edotco and Axiata's financial technology firm Boost Holdings Sdn Bhd would depend on market conditions and the entities' state of readiness, and provided no specific timeline for that.

"SPAC (special purpose acquisition company) could be an opportunity for us. And I'll be very open to all of you, we have several proposals around SPAC listing for Boost and edotco," he shared.

“For Boost, we are in no rush because we think the value will be significantly enhanced with the digital bank licence. So this might take a bit of time," he said, referring to the bid Boost has jointly put in for the licence.

"Even if the government decides to announce [the digital banking licence recipients] in March, it will take maybe six to nine months to launch the bank,” he added.

https://www.theedgemarkets.com/artic...tion-challenge

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ASEAN 2022
Part 20: Singapore | Gamuda Bhd
Gamuda JV awarded RM1.45b Singapore MRT project
Seah Eu Hen February 22, 2022 18:51 pm +08

KUALA LUMPUR (Feb 22): Singapore’s Land Transport Authority (LTA) has awarded Gamuda Bhd's operating unit Gamuda Bhd Singapore Branch's (GBSG) joint venture (JV) with Wai Fong Construction Pte Ltd, a S$ 467 million (about RM1.45 billion) design and construction contract for the proposed Defu station and tunnels, which form a part of Singapore’s 29km Cross Island Line Phase 1 (CRL1) mass rapid transit (MRT) line.

Gamuda said in a statement on Tuesday (Feb 22) to Bursa Malaysia that GBSG and Wai Fong Construction have formed an unincorporated JV on a 60:40 basis respectively, under which GBSG is the lead member for the design and construction of the planned Defu station and tunnels along Tampines Road.

Commencement date for the Defu station and tunnels project is scheduled within the "second quarter of 2022”, while completion date is expected within 2030, according to Gamuda.

"The main risks for Defu station and tunnel project is the availability of foreign staff and labour due to the evolving immigration policy in border restrictions brought about by the (Covid-19) pandemic.

"The Defu station and tunnel project is expected to contribute positively to the revenue and earnings of Gamuda Group for the financial year ending 31 July 2022,” Gamuda said.

Gamuda said Wai Fong Construction, which is directly owned by SJK Investments Ltd, has been operating for more than 28 years in Singapore.

According to Gamuda, CRL is Singapore’s eighth MRT line.

Gamuda said the work scope for the Defu station and tunnel project comprises one underground station and two tunnels.

Singapore’s LTA had also on Tuesday (Feb 22) issued a statement on the award of two contracts, one each involving the design and construction of the CRL1’s planned Defu and Tampines North stations and their associated tunnels.

"The first contract, valued at S$467 million and covering the design and construction of Defu station and tunnels, was awarded to GBSG-Wai Fong Construction JV.

"Gamuda Bhd has vast experience in infrastructure and residential projects locally and abroad. The company is currently involved in the construction of Gali Batu Bus Depot.

"Wai Fong Construction has an established track record in providing design-and-build construction services for infrastructure projects such as rail stations and tunnels. They are currently involved in the construction of two stations on the Jurong Region Line (JRL), as well as road tunnels between Victoria Street and Kampong Java Road for the North-South Corridor,” the LTA said.

Meanwhile, the LTA said it has awarded the estimated S$397 million Tampines North station and tunnels design and construction contract to China Communications Construction Co Ltd (Singapore Branch).

The LTA said China Communications Construction Co has extensive experience in undertaking infrastructure construction and building projects locally and abroad.

"The company is currently constructing a station along the JRL, as well as the Johor Bahru-Singapore Rapid Transit System Link viaduct and tunnels, the LTA said.

According to the LTA, the proposed Defu station is located along Tampines Road between Defu Avenue 1 and Defu Avenue 2, while the Tampines North station is located between Tampines Link and Tampines Ave 11.

The LTA said excavation works at these areas are expected to be challenging, as the ground conditions comprise thick and soft layers of marine clay, as well as a soil-like material comprising sandy and silty clay.

"Safety measures will be taken when carrying out the earth retaining and stabilising structure and deep excavation works to ensure stability of the ground and surrounding structures.

"LTA and the contractors will monitor the works closely to ensure that they are carried out safely and minimise any inconvenience to stakeholders.

"Construction works for Defu and Tampines North stations are expected to start in the second quarter of this year, with passenger service for CRL1 slated to commence in 2030," the LTA said.

The CRL is Singapore’s eighth MRT line. The LTA said CRL will serve existing and future developments in the eastern, north-eastern and western corridors, linking major hubs such as Jurong Lake District, Punggol Digital District and Changi region.

According to the LTA, the CRL will have almost half of its stations as interchanges with other rail lines, making it easier and more convenient for commuters to travel across the rail network.

"CRL1 is 29 kilometres long and comprises 12 stations from Aviation Park to Bright Hill. This will serve residential and industrial areas in Loyang, Tampines, Pasir Ris, Defu, Hougang, Serangoon North and Ang Mo Kio and benefit more than 100,000 households.

"With CRL1, common recreational spaces such as Changi Beach Park and Bishan-Ang Mo Kio Park will be more accessible by public transport. Studies on the details of subsequent CRL phases are ongoing,” the LTA said.

At Bursa on Tuesday (Feb 22), Gamuda’s share trade was halted since 4:17pm in conjunction with the announcement on the Singapore MRT contract.

Prior to the halt, Gamuda’s shares were traded three sen or 1% lower at RM2.97, valuing the group at about RM7.45 billion based on the company’s 2.51 billion issued shares.

Trading in Gamuda shares will resume at 9am on Wednesday (Feb 23), the company said.

https://www.theedgemarkets.com/artic...re-mrt-project

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WORLD 2022
Part 15: UK | S P Setia Bhd, Sime Darby Property Bhd, Employees’ Provident Fund
Phase 2 of Battersea Power Station to open doors in September
Adam Aziz February 22, 2022 10:09 am +08

KUALA LUMPUR (Feb 22): Battersea Power Station is slated to open its doors to the second phase of the mixed development project, the Grade II* listed Power Station in September 2022, featuring the first tranche of cafes, bars and restaurants.

The Grade II* listed building will house over 100 shops, restaurants and cafes, an events venue, a unique chimney lift experience offering 360-degree panoramic views of London’s skyline, new office space and 254 new residential apartments.

The September opening will unveil its first tranche of cafés, bars and restaurants hosting British and international eateries including Le Bab, Where The Pancakes Are, Poke House, Clean Kitchen Club, Paris Baguette, Joe & The Juice, Starbucks, and Gordon Ramsay’s Bread Street Kitchen & Bar, Battersea Power Station Development Co said in a statement on Monday (Feb 21).

Battersea Power Station’s food and drink offering, located in the historic Turbine Halls and Boiler House, is complemented by 14 outlets already open in the Circus West Village including authentic Malaysian restaurant Roti King.

“It will be the ‘must-visit’ destination for foodies,” the company said. “A 20,000 sq ft Food Hall offering an all-day dining experience will also be opening in the Boiler House at the heart of the Power Station,” it added.

These newly-announced brands will join a line-up of retailers already set to open their doors next year, including Ray-Ban, Ralph Lauren, Tommy Hilfiger, The Kooples, Aesop, Calvin Klein, Hugo Boss, MAC Cosmetics, Space NK, Watches of Switzerland and Jo Malone.

Leisure outlets include boxing gym BXR and The Cinema at the Power Station, a new cinema and private members club, with sister sites including The Cinema at Selfridges.

Meanwhile, State of Play Hospitality’s Bounce will be opening its venue comprising 11 gaming areas, a central cocktail bar and a private room.

Battersea Power Station’s first development phase, Circus West Village, is already home to over 1,700 residents and more than 20 bars, restaurants, cafés, fitness and leisure offerings.

The riverside neighbourhood usually welcomes over three million people each year thanks to its annual events programme with highlights including the Light Festival at Battersea Power Station, which is currently taking place until Feb 27.

The wider Battersea Power Station development is owned by a consortium of Malaysian investors composed of S P Setia Bhd (40%), Sime Darby Property Bhd (40%) and the Employees’ Provident Fund or EPF (20%).

The commercial assets within the Power Station building are directly owned by Permodalan Nasional Bhd and the EPF, the company said.

https://www.theedgemarkets.com/artic...oors-september

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WORLD 2022
Part 16: Uzbekistan | Gemilang International Ltd (GML)
Gemilang International bags 190 CKD bus body kits supply contract from Uzbekistan
By Ayisy Yusof - February 23, 2022 @ 12:02pm



GML said the secured award from Uzbekistan would position the Malaysian company as a strong player in the emerging Central Asia market while helping the company venture into neighbouring countries such as Belarus and Kazakhstan.

KUALA LUMPUR: Gemilang International Ltd (GML) has clinched a single largest order from Uzbekistan to supply 190 completely knocked down (CKD) bus body kits.

In a statement today, the Johor-based bus and bus body manufacturer said the contract was awarded in February 2022 and would likely be completed in October 2022.

GML said the secured award from Uzbekistan would position the Malaysian company as a strong player in the emerging Central Asia market while helping the company venture into neighbouring countries such as Belarus and Kazakhstan.

The contract was also awarded less than a month after the GML group won its biggest order to deliver fully-electric school buses to California, United States (US).

To recap, GML has delivered more than 160 bus body kits to Uzbekistan since 2015, making the country an important growth market for the group.

GML expected the latest contract to be a major revenue contributor for the company this year.

Uzbekistan is fast-tracking the upgrading of its infrastructure and connectivity, including transportation, and the Hong Kong-listed GML anticipates more future tenders from the country.

The company is optimistic of continuously benefiting from the infrastructure developments in Uzbekistan, leveraging on its proven track record as one of the leading bus and bus body manufacturers in Asia.

GML secured the latest contract via competitive tender bidding undertaken with GML's partners, including chassis suppliers and local bus body manufacturers.

The main winning factor is GML's pre-engineered aluminium body kits which are fabricated using craftsmanship originating from Switzerland.

The materials used for body structure consist of high durability 5000 – 6000 series aluminium alloy (similar to aviation and railroad standards).

This was the essence of three decades of industry experience, and GML aimed to deliver consistent quality and clean, simple and environmentally friendly solutions.

The contract also demonstrated GML's buses, and bus bodies can meet regulatory and statutory safety requirements in the destination countries.

GML chairman and chief executive officer Pang Chong Yong said Uzbekistan is one of six focus markets this year, apart from the US, Australia, Singapore, Malaysia and Hong Kong.

"The latest contract is a repeat order from Uzbekistan and is recognised as a springboard for us to grow further in the region.

"We are pleased as this repeat order at a bigger quantity implicitly shows the trust from the country in Malaysian craftsmanship and product quality," he said.

Pang said the company had planned to deliver high-quality products consistently and further build a strong and competitive presence in the market, depending on future tenders from Uzbekistan.

"GML is actively working on securing new projects in the six countries as mentioned earlier."

Additionally, he said many tender activities had been delayed in the past two years since the pandemic.

"We wish to see tenders coming from our target markets this year as the economy is recovering. In addition, with commitments from many neighbouring countries to reduce and eventually neutralise carbon emission, we expect more electrification in transportations."

He said GML was ready to offer environmentally-friendly solutions for the transition.

"As Malaysia is our base, we hope that our continued growth would allow more economic advantages for the country over the long run such as increased job opportunities, capital investments and innovations in the emerging electric vehicle (EV) segment."

While GML focuses on manufacturing and supplying completely built-up (CBU) buses, Pang said the company saw rising demand in the CKD segment as more countries, especially the US.

"US is looking to create or reshore domestic manufacturing activities. This trend opens new opportunities for GML internationally, especially with the growing global interest in EV buses."

He added body kit solutions were distinctive in the bus manufacturing industry and were invented in-house by GML.

"Domestically, more than 2000 units have been delivered in CKD form. Through CKD body kit solutions, the group's business partners will be able to assemble buses in their regions and enjoy the reduced total cost of manufacturing and lower initial capital investments."

In addition, he said these companies could receive incentives and support from their local governments for promoting localisation while the final assembly works are done locally.

GML has designed and manufactured bus bodies and assembled buses for over 30 years based in Johor.

Its recent projects in the domestic market include Sarawak's first electric city bus for Kuching Metro and an electric bus pilot project by the Sabah government for public transport.

It is also notable that GML has supplied buses for Go KL, Rapid KL, Rapid Penang and MRT feeder buses for the past 13 years.

https://www.nst.com.my/business/2022...act-uzbekistan

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WORLD 2022
Part 17: UK | Tenaga Nasional Bhd
TNB unit completes RM1.56b financing exercise involving UK solar power plants
Bernama February 24, 2022 09:37 am +08

KUALA LUMPUR (Feb 24): Tenaga Nasional Bhd’s (TNB) wholly-owned subsidiary Vantage RE Ltd has completed a £275 million (RM1.56 billion) financing exercise through refinancing of its Vantage Solar UK (VSUK) portfolio of solar power plants in the UK.

The financing facility with Macquarie Asset Management, arranged by Standard Chartered Bank, is part of Vantage RE’s management initiative to optimise VSUK’s financing structure and providing greater investment certainty over the longer term.

“The refinancing exercise has proven that the portfolio is able to meet the lender’s expectations for environmental, social and governance (ESG) compliance through the portfolio’s performance, which is aligned with the European Union’s taxonomy for sustainable activities.

“The activity reinforces TNB’s journey in achieving its global ESG vision,” TNB president and chief executive officer Datuk Baharin Din said in a statement on Wednesday (Feb 23).

The 365MW solar portfolio, which comprises 24 ground-mounted solar photovoltaic plants located across England and Wales, makes an important contribution to the UK’s supply of clean energy, TNB said.

As estimated by Macquarie’s Green Investment Group, the portfolio produces enough electricity each year to power the equivalent of more than 90,000 homes while helping to avoid about 3,300 kilotonnes of carbon dioxide equivalent of emissions over the remaining lifetime of the portfolio.

TNB said the refinancing exercise is another valuable contribution provided by Vantage RE to the solar portfolio under its management.

Since assuming management control of VSUK’s portfolio last year, the portfolio’s earnings before interest, taxes, depreciation and amortisation performance improved by about 28% from £30.3 million (RM172.4 million) in 2020 to £38.7 million (RM220.2 million) in 2021.

“TNB is confident that under Vantage's management, VSUK’s portfolio will grow in value and continue to provide acceptable returns to its investors,” the company said.

https://www.theedgemarkets.com/artic...r-power-plants

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ASEAN 2022
Part 21: Thailand | Pharmaniaga Bhd
Pharmaniaga inks two MoUs with Thailand-based technical partners on vaccine R&D and product development
Seah Eu Hen February 25, 2022 19:39 pm +08

KUALA LUMPUR (Feb 25): Pharmaniaga Bhd has inked Memoranda of Understanding (MoU) with two biotechnology companies based in Thailand for vaccine research & development (R&D) and bioequivalence solutions as well as pharmaceutical product development innovation.

In a statement on Friday (Feb 25), the pharmaceutical company said the signing was a step up in its efforts to become a major regional pharmaceutical player by partnering with technical firms in Thailand.

Pharmaniaga said that the MoUs were signed between Pharmaniaga LifeScience Sdn Bhd (PLS) and BioNet Group, and Pharmaniaga Research Centre Sdn Bhd (PRC) with Bio-Innova Co Ltd. PLS and PRC are wholly-owned subsidiaries of the group.

According to the statement, the collaboration between PLS and BioNet will serve as a foundation in establishing the framework to exchange information and know-how to facilitate the registration, manufacture, supply and marketing of various finished products and bulk antigens in respect of biopharmaceutical products, especially vaccines.

Meanwhile, PRC and Bio-Innova will be exploring opportunities in bioavailability and bioequivalence studies as well as to build capabilities in product development by capitalising on Bio-Innova’s scientific expertise.

“As part of our efforts to support the government in reducing import dependency for critical and high-value vaccine products, our high-tech EU certified plant, PLS, has embarked on developing biopharmaceuticals such as vaccines to ensure affordable, high-quality vaccine supply and build self-sufficiency for Malaysia.

“Hence, this collaboration with BioNet will support the development of combination vaccine formulation by providing required antigens and know-how method using recombinant acellular pertussis vaccine, leading to the most innovative paediatric combination, and market insights for long-term use in Malaysia and other relevant territories,” Pharmaniaga’s group managing director (MD) Datuk Zulkarnain Md Eusope said.

He added that Pharmaniaga needs to accelerate the introduction of new products to the market with the growth strategies that it has laid.

“It is timely for Pharmaniaga to establish a strategic partnership with the right partners, such as BioNet and Bio-Innova.

“We will be able to capitalise on each other’s strengths and know-how to synergise and accelerate our shared pursuit towards technology and innovation advancement. It will also help us to further improve our products and processes, as well as enhance our competitiveness to achieve greater resilience for our businesses,” he noted.

At market close on Friday, Pharmaniaga shares rose one sen or 1.2% to 84 sen, giving it a market capitalisation of RM1.09 billion.

https://www.theedgemarkets.com/artic...rd-and-product

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WORLD 2022
Part 18: Kazakhstan | CN Asia Corporation Bhd
CN Asia signs HOA for JV in proposed O&G project in Kazakhstan
Bernama March 01, 2022 03:03 am +08

KUALA LUMPUR (Feb 28): Management services CN Asia Corporation Bhd has ventured into a construction and oil and gas (O&G) operations facilities deal in Kazakhstan with tycoon and former Renong Bhd executive chairman Tan Sri Halim Saad and Abu Talib Abdul Rahman.

In a statement on Monday (Feb 28), CN Asia said it had signed a heads of agreement (HOA) with Markmore Energy (Labuan) Ltd (MELL), in which Halim and Abu Talib are directors. MELL, in turn, wholly-owns CaspiOil Gas LLP (COG), the other signatory to the HOA.

The deal involves a proposed joint-venture for the construction and facilities operation at the Rakushechnoye Oil and Gas Field in the Karakiyan District of the Mangistau Oblast, Kazakhstan.

CN Asia said the parties would collaborate in the development, production, marketing and export of hydrocarbon, including liquid and gaseous hydrocarbon in the field, with CN Asia investing and developing the Central Processing Complex together with COG.

The parties agree that all the crude oil produced at the Rakushechnoye Oil and Gas Field will belong to COG. In the event the crude oil is treated by the central processing complex, CN Asia is entitled to a fee to be fixed as soon as practicable, but not later than four weeks from the date of the HOA, the statement said.

The proposed Central Processing Complex is an integrated facility to process oil and gas separation, as well as gas processing to extract condensate, liquefied petroleum gas and natural gas.

The investment value for the implementation of the Central Processing Complex is about US$285.0 million (US$1=RM4.19) for the first phase; the equity to be injected by CN Asia is 15.0%, while the balance of 85.0% is to be raised via issuance of debt or loan.

"The project provides the Group with an opportunity to diversify and expand its source of income. The Board believes that the project would contribute positively to its future earnings and improve the financial position of the Group.

"The additional revenue from the project is expected to enhance the company’s profitability and returns on shareholders’ funds,” CN Asia said in a filing to Bursa Malaysia.

https://www.theedgemarkets.com/artic...ect-kazakhstan

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ASEAN 2022
Part 22: Vietnam | Tan Chong Motor Holdings Bhd
Tan Chong Motor swings to profit in 4Q on higher revenue
Syafiqah Salim March 01, 2022 00:06 am +08

KUALA LUMPUR (Feb 28): Tan Chong Motor Holdings Bhd recorded a net profit of RM43.28 million for the fourth quarter ended Dec 31, 2021 (4QFY21), compared with a net loss of RM44.2 million in the immediate preceding quarter, following a higher revenue and earnings before interest, taxes, depreciation and amortisation (EBITDA).

Revenue surged 97.35% to RM866.92 million from RM439.27 million in 3QFY21, as business operations resumed after the easing of the Movement Control Order, the group said in a bourse filing.

EBITDA, meanwhile, soared 1,526% to RM103.1 million from RM6.34 million, according to its filing with the local bourse.

The automotive division reported a 101% jump in revenue to RM844.88 million, from RM420.77 million in 3QFY21. EBITDA improved 267% to RM58.77 million from RM16.02 million, mainly due to recovery in sales; favourable sales mix and lower operating expenses.

The financial services division’s revenue rose 16.1% to RM18.45 million from RM15.89 million. EBITDA stood at RM17.4 million due to the reversal of impairment loss on hire purchase receivables.

Revenue for other operations (investment and properties division) climbed 37.1% to RM3.59 million, from RM2.62 million. It recorded an EBITDA of RM26.92 million due to a net forex gain which arose from transactions and outstanding balances denominated in foreign currencies.

On a year-on-year basis, Tan Chong returned to the black from a net loss of RM69.62 million in 4QFY20. Revenue rose 15.91% from RM747.9 million.

For the full financial year, Tan Chong narrowed its cumulative net loss to RM15.4 million from RM165.58 million in FY20, mainly due to better sales mix, lower operating expenses, lower impairment on hire purchase receivables and higher unrealised forex gain.

Cumulative revenue fell 14.27% to RM2.54 billion, from RM2.96 billion because of the prolonged lockdown period.

Tan Chong said it will continue to take appropriate actions to stay competitive in the domestic, as well as the IndoChina markets, with new model launches in Malaysia and Vietnam expected to be the catalysts for sales growth in FY22.

“Barring any unforeseen circumstances, the group is cautiously optimistic of a better operational performance in 2022. The group’s overall balance sheet and business fundamentals remain strong and will continue to strengthen its core business operations.

“Moving ahead, the group will continue to raise its focus to drive digitalisation and further business improvement strategies to deliver operational and financial sustainability,” it added.

Tan Chong's shares rose one sen or 0.9% to RM1.12 on Monday (Feb 28), for a market capitalisation of RM752.64 million.

https://www.theedgemarkets.com/artic...higher-revenue

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ASEAN 2022
Part 23: Indonesia | Axiata Group Bhd
edotco Group acquires 1,000 towers from Indonesia's XL Axiata for RM219mil
By Azanis Shahila Aman - March 1, 2022 @ 11:10am

KUALA LUMPUR: Axiata Group Bhd subsidiary, edotco Group Sdn Bhd, has acquired 1,000 towers from XL Axiata in a deal valued at about IDR 750 billion (RM219 million) via its local subsidiary PT edotco Infrastruktur Indonesia.

edotco chief executive officer Adlan Tajudin said the acquisition would accelerate its strategy towards becoming a top-five Global TowerCo and help it gain a strong foothold in one of Asia's most sought-after tower and telecom markets.

He said edotco has been intensifying its efforts to enter Indonesia since mid-2021 and have been actively pursuing several entry strategies in parallel.

"Our ambition is to grow aggressively, both organic and inorganic, to scale up our operations and become one of the market leaders in Indonesia," he said.

According to edotco, this strategic acquisition has confirmed its foray into the Indonesian market, one of Asia's largest and most established independent TowerCo markets.

As part of the transaction, edotco will acquire 859 towers through a sale and leaseback and enter into a managed service agreement for an additional 162 sites, with a significant build-to-suit potential with XL Axiata.

Following the transaction, edotco will enjoy a truly pan-Indonesian platform with a presence across all the major islands of Java, Sumatra, Bali, Kalimantan, Sulawesi, and Eastern Indonesia.

Following this transaction, edotco will have a presence in nine markets across Asia, with a portfolio of over 50,000 owned and managed towers under its operations.

The company also leverages its real-time monitoring service, echo, which helps to improve field operations whilst maximising operational efficiencies.

https://www.nst.com.my/business/2022...xiata-rm219mil

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ASEAN 2022
Part 24: Singapore | LYC Healthcare Bhd
LYC Healthcare ropes in Kenanga Investors as pre-IPO anchor for its Singapore unit's SGX listing
Syafiqah Salim March 01, 2022 20:40 pm +08

KUALA LUMPUR (March 1): Kenanga Investment Bank Bhd (KIB), via its wholly-owned unit Kenanga Investors Bhd, is taking up a 25% stake in LYC Healthcare Bhd's Singapore unit that is considering listing its healthcare business on the Singapore Exchange (SGX).

Kenanga Investors inked a conditional sale and purchase agreement on Tuesday with LYC Medicare Sdn Bhd to acquire the stake, which represents 6.53 million shares in LYC Medicare (Singapore) Pte Ltd (LYC SG), for S$12.9 million (equivalent to RM39.9 million), cash. LYC Healthcare will hold the remaining 75% stake in LYC SG post-divestment.

KIB is the largest shareholder of LYC Healthcare with a 17.72% stake held via Kenanga Investors (6.46%) and Kenanga Islamic Investors (10.75%), according to Bloomberg data. The second largest is LYC Capital Sdn Bhd with 11.93%.

In a statement, LYC Healthcare said the disposal set a pre-money valuation for LYC SG at S$51.67 million (approximately RM159.7 million), which represents an almost doubling of LYC SG's valuation in less than two years.

LYC SG is considering listing its healthcare business on the Catalist Board of the SGX, and ZICO Capital Pte Ltd has been appointed its full sponsor for the proposed listing.

"The proposed listing, which is still at a preliminary stage at this juncture, is subject to, amongst others, satisfactory due diligence and assessment of suitability for listing by LYC SG's professional advisers, approvals being obtained from the relevant authorities in Singapore and Malaysia (where required), as well as the shareholders of LYC Healthcare at a general meeting to be convened. In addition, the proposed listing is subject to assessment of other factors such as general economic and capital market conditions," LYC Healthcare said.

LYC Healthcare said Kenanga Investors has, at its invitation, agreed to participate and commit as the pre-initial public offering (IPO) investor for LYC SG's proposed listing.

"As an anchor investor prior to the IPO, Kenanga Investors provides an external validation to the group's proposed listing ambition, which can help to mitigate the risks of an IPO by building other investors' confidence in LYC SG, as well as supporting the benchmark IPO valuation and in turn potentially driving a higher total shareholder return," said LYC Healthcare.

Meanwhile, the divestment provides the group an immediate opportunity to unlock and realise the value of LYC SG, as well as provide a surplus cash flow of S$12.92 million (equivalent to RM39.93 million) to the group.

"The proceeds arising from the proposed divestment will enable the group to settle the partial redemption of its outstanding RPS (redeemable preference shares) of RM30 million, which is expected to result in dividend rate saving ranging from RM2.7 million to RM2.85 million per annum, as means to reduce its indebtedness and financing cost and in turn reposition the group towards a better financial footing moving forward," said LYC Healthcare.

A portion of the proceeds has been earmarked for business expansion, which LYC Healthcare said will enable it to capitalise on suitable and viable investment opportunities in the provision of healthcare and healthcare-related businesses.

LYC Healthcare shares ended half a sen or 2% lower at 24.5 sen, giving the group a market capitalisation of RM113.81 million.

https://www.theedgemarkets.com/artic...ts-sgx-listing

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ASEAN 2022
Part 25: Thailand | CTOS Digital Bhd
CTOS Digital raises stake in Thailand’s BOL to 24.825%
Syafiqah Salimb March 09, 2022 14:49 pm +08

KUALA LUMPUR (March 9): CTOS Digital Bhd has increased its associate stake in Thailand-based Business Online Public Company Ltd (BOL) to 24.825% from 22.65% previously, as the group continues to strengthen its presence in Thailand as part of its regional expansion strategy.

The credit-reporting agency announced its acquisition of 17.8 million shares via a direct business transaction on the Thai stock exchange, representing a 2.175% stake in BOL for a purchase consideration of 205.2 million baht (equivalent to RM26.2 million).

In a statement on Wednesday (March 9), it said the acquisition will be fully funded by proceeds raised from the recently completed private placement.

“The increase in shareholding comes after earlier acquisitions of 2.650% shareholding back in August 2021, as well as the group’s initial 20.000% stake acquisition in October 2020,” said CTOS Digital.

According to CTOS Digital, its shareholders had on Feb 21 approved the company’s additional acquisition of up to 2.25% stake in BOL for a cash consideration of up to 15 baht per ordinary share in BOL.

“We are pleased to increase our investment in the fast-growing BOL and look forward to further realise the potential synergies between both our products and customer base moving forward,” said CTOS Digital deputy group chief executive officer Eric Hamburger.

The group, citing the International Data Corp, said BOL is the largest company information bureau in Thailand, with 59% market share in terms of revenue for the financial year ended Dec 31, 2020.

BOL has an extensive database of business information online on over 1.6 million local businesses including Thailand’s financial institutions, corporates, small and medium enterprises, and government agencies.

At Wednesday’s noon break, CTOS Digital had risen nine sen or 6.67% at RM1.44, with some 4.92 million shares changing hands.

At RM1.44, the group is valued at RM3.33 billion.

https://www.theedgemarkets.com/artic...ands-bol-24825

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ASEAN 2022
Part 26: Thailand | AirAsia
AirAsia Thailand to resume flights to 7 countries in April
Bernama March 14, 2022 22:33 pm +08

BANGKOK (March 14): AirAsia Thailand will resume international flights to seven countries on 18 routes starting next month.

AirAsia Thailand chief executive officer Santisuk Klongchaiya said as Thailand reopens borders and travel restrictions are being lifted, the airline would continue to reintroduce international service starting next month on routes that cover ASEAN and South Asian countries.

From April, he said the airline would be flying to seven countries on 18 routes from three airports — Don Mueang International Airport in Bangkok, Phuket International Airport, and Hat Yai International Airport in Songkhla — providing a total of 38 flights per week.

Besides that, he said AirAsia Thailand would reinstate up to 81 flights per week by May in support of the nation’s economic recovery.

“We chose to resume routes to countries that share Thailand’s reopening policy, so that our guests can travel without having to worry about quarantine.

“The routes cover ASEAN and South Asian countries and we are working closely with the Tourism Authority of Thailand and relevant agencies to attract visitors while maintaining and adhering to public health measures,” he said in a statement.

He also said that with foreign visitors being able to travel throughout Asia, the airline would leverage on the AirAsia domestic network, helping to generate revenue for all of the nation’s regions.

At present, AirAsia Thailand flies from Bangkok’s Don Mueang International Airport to Phnom Penh, Cambodia, Maldives, and Singapore.

Starting April, AirAsia Thailand would fly from Don Mueang International Airport to Hanoi, Ho Chi Minh City (Vietnam), Bali (Indonesia), Kuala Lumpur and Penang (Malaysia), Bangalore and Chennai (India), Phuket-Singapore and Hat Yai-Kuala Lumpur.

Starting May, AirAsia Thailand resumes flight from Bangkok to Kolkata, Kochi and Jaipur (India), Da Nang (Vietnam), Johor Bahru (Malaysia), and Siem Reap (Cambodia).

AirAsia Thailand said guests travelling from Thailand to various countries with flights operated by AirAsia could travel without quarantine restrictions according to travel requirements of each country.

For those arriving in Thailand, it said travellers would enjoy the quarantine-free “Test & Go” programme by registering for an electronic entry certificate, Thailand Pass, in advance.

Guests are advised to explore more details on the required documentation and information at https://tp.consular.go.th/.

https://www.theedgemarkets.com/artic...ies-april-2022

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ASEAN 2022
Part 27: Thailand | airasia ride
airasia ride plans to expand services to Thailand in April 2022
Bernama March 16, 2022 15:21 pm +08
airasia ride is an e-hailing service by airasia Super App under Capital A Bhd.

KUALA LUMPUR (March 16): airasia ride plans to expand the e-hailing service to Thailand next month, said airasia ride regional chief executive officer (CEO) Lim Chiew Shan.

He said the company will begin with Bangkok, before expanding its coverage to other cities in the country.

“We are starting with 5,000 taxis, then after a few months, we will get the private drivers to come on board,” he said to the media at the launch of the Community Drivers feature here on Wednesday (March 16).

Launched in August 2021, it has more than 30,000 drivers to-date, and has completed over 700,000 rides across the country.

https://www.theedgemarkets.com/artic...and-april-2022

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ASEAN 2022
Part 28: Thailand | Kejuruteraan Asastera Bhd (KAB)
KAB inks power purchase agreements worth RM46.8m in Thailand
Sulhi Khalid March 22, 2022 14:49 pm +08

KUALA LUMPUR (March 22): Kejuruteraan Asastera Bhd (KAB) has inked five Rooftop Solar Power Generating System Construction and Power Purchase Agreements (PPAs) worth RM46.8 million with an estimated aggregate capacity of 4,284 kilowatt-peak (kWp) in Thailand.

The construction group said the contracted duration was for over 25 years.

In a Bursa Malaysia filing, KAB said the agreement, amongst others, requires KAB to construct, install, operate, and maintain the Grid-Connected Photovoltaic (GCPV) solar system for Siam Machinery and Equipment Co Ltd and four subsidiaries of Aapico Group of Companies (Aapico Ayutthaya).

“KAB has been actively developing a solid base within Thailand’s renewable energy space and the signing of these PPAs has demonstrated our continued foray into Thailand’s renewable energy sector as we remain steadfast to actively replenish the recurring income streams, while at the same time, further solidifying KAB’s footing in the industry.

“Our commitment towards our sustainability framework has bode well for KAB as we advance our sustainability efforts to Be Good and strive to Do Good as a One-Stop Engineering and Energy Solutions Provider,” said KAB managing director, Datuk Lai Keng Onn.

The total savings that the clients could achieve for the projects would be up to 135,433 megawatt throughout the project duration, the group added.

Meanwhile, Lai also highlighted that there are projects in the pipeline that the company is eyeing and is confident of securing them in the near term to boost KAB’s continuity of recurring income stream.

“Our continued dive into greenfield projects and brownfield energy assets are also supported by our capacity of up to RM500 million in war chest post-establishment of the Multi-Currency Islamic Medium-Term Notes programme.

“This will form a strong base to our tender capacity in the renewable energy segment within the Southeast Asia region,” he shared.

As at February 2022, KAB has a combined installed capacity of 12,695 kWp of solar projects, which include 5,073 kWp in Thailand and 7,622 kWp in Malaysia

At noon break on Tuesday (March 22), shares in KAB closed one sen or 2.56% lower to 38 sen, valuing the construction group at RM674.70 million.

https://www.theedgemarkets.com/artic...m468m-thailand

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ASEAN 2022
Part 29: Singapore | IOI Properties Group Bhd
Singapore’s Central Boulevard to generate RM350m-RM450m rental income for IOI Properties, says RHB Research
Sulhi Khalid March 22, 2022 11:00 am +08

KUALA LUMPUR (March 22): The Central Boulevard in Singapore, which is slated to be completed next year, could generate RM350 million to RM450 million in rental income a year for IOI Properties Group Bhd, based on a conservative rental rate of S$10 (RM31.01) to S$11 per square feet, according to RHB Research.

In a note on Tuesday (March 22), the research house said it is optimistic on the rental prospects of this asset as quality office space is highly sought after with the expansion of regional technology/telecommunication sectors in recent years.

Management also indicated that the initial response for leasing looks quite promising, it said.

“This should form a good earnings base for the company to raise its dividend payout in the future.

“Despite stable earnings growth, IOI Properties did not enjoy a sustainable share price recovery similar to its peers.

“The company is also a beneficiary of the reopening of the economy as earnings from its property development and property investment should normalise back to pre-pandemic levels,” it said.

Meanwhile, the research house said that during its recent virtual meeting, IOI Properties chief executive officer Datuk Voon Tin Yow indicated that the company is prepared to ride through this volatile period, given its diversified products and geographical locations, as well as contribution from investment properties.

“However, management was guided to be extra careful with the timing of the launches given heightening building material prices,” it said.

On the Home Ownership Campaign, the group expects property sales in Malaysia to be softer in the January-March quarter given the expiry of the campaign in December last year.

RHB Research also reckoned that IOI City Mall Phase Two will open in the second half of the year, and it estimates that Phase Two will contribute approximately RM30 million to RM40 million in rental income to the group during the initial years of operation.

The research house has set a target price of RM1.38 and maintained its “buy” call on the group, based on an unchanged 65% discount to revalued net asset value (RNAV).

At the time of writing on Tuesday, shares in IOI Properties traded unchanged at RM1.01, valuing the property group at RM5.56 billion.

https://www.theedgemarkets.com/artic...rties-says-rhb