Malaysian Investor Thread

[nazrey]

WORLD 2022
Part 30: Hong Kong | Khazanah Nasional Bhd
Khazanah-backed WeLab Bank becomes first Hong Kong virtual bank to offer digital wealth advisory services
Justin Lim April 25, 2022 18:44 pm +08

KUALA LUMPUR (April 25): WeLab Bank in Hong Kong, which is backed by Malaysian sovereign wealth fund Khazanah Nasional Bhd, says it has become the first virtual bank in the city-state to be licensed to offer digital wealth advisory services.

In a statement Monday (April 25), WeLab Bank said it has soft-launched its intelligent wealth solution GoWealth Digital Wealth Advisory (GoWealth) for selected customers, after having obtained the Type 1 (dealing in securities) and Type 4 (advising on securities) licences from the Hong Kong Securities and Futures Commission (HKSFC).

The public launch of GoWealth — which is the bank's wealth management advisory solution that capitalizes on the investment expertise of Allianz Global Investors (AllianzGI), one of the world’s leading asset management firms — has been scheduled for the near future, it said.

The two entities announced a strategic collaboration early last year to combine their expertise in fintech and investment management, as well as their deep understanding about the financial needs and habits of Hong Kong people for the WeLab Bank to create a new seamless intelligent wealth advisory experience for the city.

WeLab Bank is a wholly-owned subsidiary of WeLab Holdings Ltd (WeLab), a leading fintech company that provides a wide range of digital financial services in Hong Kong, China, and Indonesia, with over 50 million individual users and over 700 enterprise customers.

Khazanah first announced in 2016 its investment in WeLab, which it termed as one of China's largest mobile lending and credit analytics platforms, via special purpose vehicle Bukit Galla Investments Ltd in a US$160 million Series B fundraising exercise.

At the time, Khazanah said its participation in the fundraising represented its first investment in China's fintech sector, which the fund said would allow it to gain exposure to the country's growing consumer loan market with tremendous demand that was not met by traditional banking services.

Apart from Khazanah, WeLab Bank — which has a virtual bank licence from the Hong Kong Monetary Authority — is also backed by investors like Allianz, International Finance Corp (a member of the World Bank Group), CK Hutchison’s TOM Group and Sequoia Capital.

https://www.theedgemarkets.com/artic...ealth-advisory

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WORLD 2022
Part 31: India | IHH Healthcare Bhd
IHH’s Fortis gets final order to recover RM225 mil from former controlling shareholders
Adam Aziz April 25, 2022 20:14 pm +08

KUALA LUMPUR (April 25): IHH Healthcare Bhd said its unit Fortis Healthcare Ltd has received a final order from the Indian regulators to recover 397.12 crore rupees (RM225 million) with interest, which is said to be diverted from the Fortis group for the benefit of its former controlling shareholders.

IHH said the Securities and Exchange Board of India (SEBI) also imposed a penalty of one crore rupees (RM567,000) and 50 lakh rupees (RM284,000) on Fortis and its wholly-owned unit Fortis Hospitals Ltd, respectively.

This follows an investigation by SEBI from 2018 on the diversion of funds from the Fortis group and misrepresentation in the group’s financial statements for the year ended March 31, 2018.

The amount stated in the final order is to be recovered from RHC Holdings Pvt Ltd, Malvinder Mohan Singh, Shivinder Mohan Singh, Malav Holdings Pvt Ltd and Shivi Holdings Pvt Ltd (collectively referred to as the erstwhile promoter group noticees).

Brothers Malvinder and Shivinder are the founders of the Fortis group, but lost control in 2017-2018 amid allegations that they siphoned funds from the healthcare group.

As their shareholdings fell from nearly 25% at end-December 2017 to just under 1% in July 2018, IHH won the bid for control over the cash-strapped hospital chain with a subscription of a 31.1% interest in Fortis for US$1.1 billion (RM4.64 billion). An open offer by IHH to acquire another 26% stake was halted amid a stay order by the Supreme Court in India.

IHH said Fortis is evaluating the final order “in detail” in consultation with its legal advisors.

“As per the directions from SEBI, Fortis Group has taken steps to recover dues from the erstwhile promoter group noticees and various other entities.

“These include initiating civil actions against these entities demanding recovery of the outstanding amounts together with interest, and to secure repayment of the outstanding amounts on the assets of these entities,” IHH said.

“The final order shall have no material effect on the earnings, net assets or gearing of IHH for the financial year ending Dec 31, 2022,” it added.

Shares of IHH fell five sen or 0.76% to close at RM6.56 on Monday (April 25), giving the healthcare group a market capitalisation of RM57.75 billion.

https://www.theedgemarkets.com/artic...g-shareholders


https://www.ihhhealthcare.com/

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WORLD 2022
Part 32: China | Parkson Holdings Bhd
Parkson positive about China operations as number of global outlets shrinks to 85 from 102
Justin Lim April 26, 2022 16:05 pm +08

KUALA LUMPUR (April 26): Parkson Holdings Bhd chairman Tan Sri William Cheng Heng Jem said the retail group, which has seen the number of owned and managed stores shrink to 85 from 102, remains positive about its China retail operations' prospects although Covid-19 containment measures and inflationary pressures remain a concern for the group's Southeast Asian business.

According to Parkson Holdings' latest 2021 annual report which was filed with Bursa Malaysia on Tuesday (April 26, 2022), the group which 102 owned and managed stores across Malaysia, China, Vietnam and Indonesia as at June 30, 2020 saw its number of owned and managed stores reduced to 85 as at Dec 31, 2021 as the number of outlets in Malaysia and Vietnam shrank while the company no longer had any Indonesian outlets.

"The group had ceased to have control over the subsidiary in Indonesia with effect from May 17, 2021," Parkson Holdings said.

On China, Cheng said in Parkson Holdings' annual report that the group remains positive about the prospects of its retailing operations there despite repeated Covid-19 outbreaks as the consumer market there adapts to the new normal.

"The group will continue to strive to improve consumer experience in order to fully capture potential opportunities provided by the Chinese retail market besides continuing to diversify the income sources, establish online and offline sales channels, and promote long-term sustainable development of its businesses," he said.

On Parkson Holdings' Southeast Asian business, Cheng said Covid-19 containment measures and inflationary pressures remain a concern for its retail operations in the region.

"Notwithstanding these, the group continues to focus its priorities on enhancing product offerings, optimising operational efficiency and productivity, carrying out tactical promotional activities as well as cost control management," he said.

According to Parkson Holdings' annual report, the group's Malaysian operations comprised 38 outlets as at Dec 31, 2021 compared with 42 as at June 30, 2020 while the number of outlets in Vietnam was reduced to two from four.

In contrast, Parkson Holdings' China operations recorded an increase in the number of outlets to 45 from 41 previously, its annual report showed.

At 3.40pm on Tuesday (April 26, 2022), Parkson Holdings shares were traded 0.5 sen or 3.03% higher at 17 sen, which brings its market capitalisation to about RM195.5 million.

Parkson Holdings' latest reported number of outstanding shares stood at 1.15 billion, according to the company's Bursa filing on March 3, 2022.

https://www.theedgemarkets.com/artic...shrinks-85-102


Parkson Operation in China 2022
http://www.parksongroup.com.cn/html_...on/Profile.php

[nazrey]

WORLD 2022
Part 33: India | AirAsia
Tata's Air India proposes to buy AirAsia India
Chandini Monnappa/Reuters April 27, 2022 17:20 pm +08

BENGALURU (April 27): Tata Group-owned Air India has proposed to buy the entire equity share capital of low cost-carrier AirAsia India, in which Tata has a majority stake, to merge into a single airline, according to an application with India's competition commission.

The autos-to-steel conglomerate bought state-run carrier Air India in a US$2.4 billion equity-and-debt deal, regaining ownership of what used to be India's flagship carrier after nearly 70 years.

Tata Sons has an 83.67% stake in AirAsia India.

"This was on expected lines as it makes no sense for the Tata Group to own stakes in separate airlines," said Vinamra Longani, head of operations at Sarin & Co, a law firm specialising in aircraft leasing and finance.

"The Tata Group has embarked on what will go down in history as possibly one of the most challenging airline realignment or turnarounds."

While Air India has lucrative landing slots, Tata faces an uphill task to upgrade the airline's ageing fleet and turn around its financials and service levels.

"The proposed combination will not lead to any change in the competitive landscape or cause any appreciable adverse effect on competition in India," according to the application with the Competition Commission of India (CCI).

The CCI application is the first move by Tata to integrate its airline businesses, which also include Vistara, a joint venture with Singapore Airlines, and AirAsia India, which it operates with Malaysia's AirAsia X Bhd.

https://www.theedgemarkets.com/artic...-airasia-india

[nazrey]

WORLD 2022
Part 34: South Africa | Proton Holdings Bhd
Proton returns to South Africa after 10-year hiatus
Surin Murugiah April 28, 2022 13:34 pm +08

KUALA LUMPUR (April 28): National car maker Proton Holdings Bhd has signed an agreement to appoint CMH Group as the distributor for Proton vehicles in South Africa.

In a statement Thursday (April 28), the company said the signing will see the first shipment of fully imported CBU models go on sale in September, with the Proton X50 and Proton X70 leading the charge.

It said this will be followed by the Proton Saga, which is making a return to the nation 10 years after sales ended in 2012.

Proton said it is bullish about its sales prospects in South Africa, projecting strong sales this year, and targeting to more than double its volume in 2023.

It said for the first quarter of this year, total export sales have increased by 175% over the same period from 2021.

It said that number is expected to increase as the company takes aim at growing export sales by more than 300% by the end of the year.

Proton said in 2010, it exported 29,833 units to several overseas markets.

It said this dwindled to only 248 units in 2017 though volumes are seeing a gradual upturn.

Last year, 3,018 Proton vehicles were sold overseas, which is more than double the 1,508 units exported in 2020.

For 2022, the company’s international sales department is targeting to grow export sales exponentially and are targeting 10,000 units.

Proton director of international sales Steven Xu said Proton’s long-term goals require exports to play a major role to grow the company’s overall sales as TIV in Malaysia is expected to remain flat.

“So, we are exploiting the strength of our new products, our brand and even the links Malaysia has with other countries to establish a foothold in many new markets.

“This is then bolstered by establishing KD operations where possible, which also helps to grow local economies,” he said.

https://www.theedgemarkets.com/artic...-10year-hiatus

[nazrey]

ASEAN 2022
Part 37: Indonesia | CIMB Group Holdings Bhd
CIMB Niaga's 1Q consolidated net profit grows 20% to RM361.7m
Sulhi Khalid April 28, 2022 17:16 pm +08

KUALA LUMPUR (April 28): CIMB Group Holdings Bhd’s 92.5%-owned PT CIMB Niaga Tbk (CIMB Niaga) highlighted that its unaudited consolidated net profit for the first quarter of the year (1Q22) grew 19.9% year-on-year (y-o-y) to the tune of 1.2 trillion Indonesian rupiah (approximately RM361.71 million).

In a statement on Thursday (April 28), CIMB Niaga — the second largest privately owned bank by assets in Indonesia — said the financial results announced translated into earnings per share of 47.89 Indonesian rupiah.

CIMB Niaga president director Lani Darmawan shared that healthy growth in operating income, well-managed operating expenses and lower provisioning drove the performance in 1Q22.

“Our strong results reflect the positive economic recovery and the progress we have made in our strategic priorities.

“We continued to maintain prudent provisioning with high focus on asset quality and risk management. With the ongoing economic recovery, we expect a sustainable performance in 2022, driven by loan growth, normalisation of net interest margins in subsequent quarters as well as heightened discipline in cost management.

“Going forward, we will continue to build and leverage our digital capabilities to enhance customer experience and drive long-term business growth,” she said.

According to the financial results filed with Bursa Malaysia, CIMB Niaga’s consolidated gross non-performing loan ratio improved to 3.62% as at March 31, 2022 from 3.81% a year earlier. The consolidated cost-to-income ratio also improved to 43.84% from 44.03% over the same period.

In the statement on Thursday, CIMB Niaga pointed out that its capital adequacy ratio and loan-to-deposit ratio were strong at 23.1% and 76.1% respectively as at March 31, 2022.

Total loans stood at 182.7 trillion Indonesian rupiah, contributed mainly by a 12.4% y-o-y growth in the consumer banking segment, while mortgages grew by 9.2% y-o-y and auto loans rose by 48.8% y-o-y, it added.

“As one of the leading banks that are actively implementing sustainability in Indonesia, CIMB Niaga has made various efforts to support Sustainable Development Goals implementation through the five-pillar strategy — Sustainable Action, Sustainable Business, Corporate Social Responsibility, Governance and Risk, and Stakeholder Engagement and Advocacy.

“We strive to build a sustainable business by synergising environmental, economic, social and governance aspects into the banking process,” Lani shared.

Meanwhile, in the syariah banking segment, CIMB Niaga’s Islamic business unit maintained its position as the largest in Indonesia, with total financing valued at 38.1 trillion Indonesian rupiah (up 17.4% y-o-y) and deposits at 40.1 trillion Indonesian rupiah (up 35.4% y-o-y) as at March 31, 2022.

To support business growth, CIMB Niaga said it will continue to improve customer experience by offering a comprehensive suite of products and services through its 418 branches (including 34 mobile branches and 36 digital lounges).

Across the country, CIMB Niaga operates 4,431 ATMs (including 936 cash deposit and recycle machines) and 258,376 electronic data capture points (EDCs & QR).

On Bursa, CIMB Group closed four sen or 0.78% higher at RM5.19 on Thursday, giving it a market capitalisation of RM53.05 billion.

https://www.theedgemarkets.com/artic...ows-20-rm3617m

[nazrey]

ASEAN 2022
Part 38: Indonesia | Maybank
Maybank Indonesia sees positive trend in first quarter backed by strong cost management
Bernama April 29, 2022 12:11 pm +08

KUALA LUMPUR (April 29): After two years of challenging times, Maybank Indonesia saw a positive trend in the bank's profit for the first quarter of 2022, backed by its strong effort in managing costs across the business and growth in fees as well as in its retail loan segment.

President director of Maybank Indonesia Taswin Zakaria said the bank started the year with a promising outlook and will continue implementing its strategies and initiatives to enhance its loan growth and expand its customer base through acquisitions, which will strengthen the bank’s fundamentals.

"Our comprehensive financial solutions, including our digital banking services, will ensure that we fulfil the demands of our customers and society in line with the bank's mission of humanising financial services.

“This year, we will also continue to focus on our digital transformation efforts and pave our way to a sustainable business by leveraging our growing digital platforms and integrating all aspects of the bank's services to fulfil the needs of our wide range of customers,” he said in a statement in conjunction with the announcement of the bank's consolidated financial highlights as of March 31, 2022.

Maybank Indonesia's profit before tax (PBT) for the first quarter ended March 31, 2022 rose 12.1% to 562 billion rupiah (about RM169.14 million) from 501 billion rupiah a year ago, backed by lower provisions and cost of funds, well-contained overheads cost as well as strong growth in fee-based income resulting from global market transactions and fee income from subsidiaries.

Net interest income increased by 45 basis points to 4.8%, backed by lower cost of funds and healthy current account and savings account (CASA) growth, which rose 4.1% to 49.95 trillion rupiah, while the CASA ratio increased to 47.1% from 41%.

The bank's fee-based income increased by 4.9% to 475 billion rupiah from 453 billion rupiah last year, contributed primarily by a significant rise in global market transaction fees by 46% to 51 billion rupiah from 35 billion rupiah, and fee income from subsidiaries.

The consolidated non-performing loan (NPL) ratio stood at 3.9% (gross) and 2.8% (net) as of March 2022, supported by lower NPL balances, which declined by 6.8%.

Liquidity remained strong, with the loan-to-deposit ratio at a healthy level of 82%, while the liquidity coverage ratio stood at 190.4% in March 2022, exceeding the regulator's requirement of a minimum level of 100%.

Meanwhile, the syariah banking unit’s operating profit before provision fell by 6.6% to 170 billion rupiah due to a drop in financing, while its PBT fell by 51% to 85 billion rupiah due to an increase in provisions.

Total assets grew by 6.8% to 38.33 trillion rupiah from 35.88 trillion rupiah, accounting for 24% of the bank's total consolidated assets.

However, syariah financing assets experienced a drop of 2.9% to 24.56 trillion rupiah from 25.29 trillion rupiah.

During the first quarter of 2022, the bank's digital banking business saw financial transactions from retail customers using M2U increase 14.3% to 4.1 million transactions, while transactions from corporate customers using M2E grew by 91.1% to over one million transactions.

https://www.theedgemarkets.com/artic...ost-management

[nazrey]

ASEAN 2022
Part 39: Singapore | Genting Bhd
Genting Singapore appoints Tan Hee Teck as CEO
Chong Jin Hun May 01, 2022 11:30 am +08

KUALA LUMPUR (May 1): Genting Bhd's 52.7%-owned subsidiary Genting Singapore Ltd said on Sunday (May 1, 2022) the latter's former president and chief operating officer (COO) Tan Hee Teck has been appointed as the chief executive officer (CEO) of Genting Singapore with effect from Sunday.

"Concurrent to his appointment as CEO of the company, Mr Tan has ceased to be the president and COO of the company," casino and hotel operator Genting Singapore said in filings with the Singapore Exchange Ltd.

Prior to Tan's appointment as CEO, Genting Singapore said Tan had been the company's president and COO since 2010.

Genting Singapore said its nominating committee and board of directors had assessed Tan's appointment as CEO and that they were satisfied that Tan had the qualifications and experience to be appointed as the CEO of the company.

"The appointment is executive in nature. The CEO is responsible for executing the board's approved strategies, managing and developing Genting Singapore's business and providing leadership to the management team of the group to ensure effective day-to-day operational performance and organisational excellence," Genting Singapore said.

At Bursa Malaysia on Friday (April 29, 2022), Genting Bhd's share price closed up 11 sen or 2.43% to close at RM4.63 for a market value of about RM17.83 billion.

Genting Bhd has 3.85 billion outstanding shares, according to its latest annual report.

https://www.theedgemarkets.com/artic...n-hee-teck-ceo

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WORLD 2022
Part 35: Brazil | Petroliam Nasional Bhd (Petronas)
Petronas signs Santos Basin field PSC in Brazil O&G push
Shazni Ong April 29, 2022 17:51 pm +08

KUALA LUMPUR (April 29): Petroliam Nasional Bhd (Petronas) said on Friday (April 29) that its subsidiary PETRONAS Petróleo Brasil Ltda (PPBL) had on Friday signed a production sharing contract (PSC) for the Sépia offshore oil and gas (O&G) field within the Atlantic Ocean's Santos Basin which is located about 300km southeast of Santos, Brazil.

"Our entry into the prolific Santos basin strengthens our ventures in Brazil as well as strengthens our presence in the Americas, in line with our global growth strategy," Petronas said in a Facebook post.

Malaysian national oil company Petronas said PPBL, together with its consortium partners won the Sépia field during Brazil’s Second Transfer of Rights Surplus Volume Bidding Round on Dec 17, 2021.

According to Petronas, PPBL holds 21% participating interest in the Sépia field,while Petrobras as operator owns a 30% stake.

Meanwhile, TotalEnergies holds a 28% participating interest in the Sépia field while QatarEnergy holds the remaining 21% stake, according to Petronas.

"Signing (the PSC) on behalf of PPBL was (Petronas) vice president of international assets Mark Fitzgerald.

"We continue to focus on pursuing value creation while continuing our decarbonising efforts in order to sustainably develop and monetise the Sépia field," Petronas said.

https://www.theedgemarkets.com/artic...brazil-og-push

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WORLD 2022
Part 36: China | Kelington Group Bhd
Kelington bags RM80mil job in Beijing
By Azanis Shahila Aman - May 12, 2022 @ 7:21pm

KUALA LUMPUR: Kelington Group Bhd's subsidiary Kelington Engineering (Shanghai) Co Ltd has clinched a 123 million renminbi (about RM80 million) to perform gas hook up works in Beijing, China.

The integrated engineering solutions provider said the contract was awarded by China's largest semiconductor foundry.

"The works will commence in May 2022 and are slated to be completed by March 2024," it said in a statement.

Kelington chief executive officer Raymond Gan said the company was proud to be entrusted by a semiconductor giant in China which also happenned to be its repeat client.

"Their confidence in us stems from our quality workmanship in the past several projects that we have performed for them.

"Notably, our solid profile in serving some of the largest chip foundries has well-positioned us to capitalise on the swift advancement of the semiconductor industry in China," said Gan.

Gan said the contract also signalled that the semiconductor shortage would remain prevalent in the near term as there was continuous growth in demand for chips alongside a stretched lead time in building wafer fabrication plants.

He said the expansion activities of technological players remained active across its operating markets, especially China and Singapore.

"We expect to see more projects coming on stream throughout the year and continue bolstering our already elevated orderbook," he added.

Inclusive of this contract, the company has so far secured new orders amounting to RM427 million in this financial year ending December 31, 2022.

https://www.nst.com.my/business/2022...il-job-beijing

[nazrey]

Originally Posted by nazrey

Axiata Group

WORLD 2022
Part 37: Sri Lanka | Axiata Group Bhd
Sri Lanka turmoil to hit hard but Axiata expects ops there to withstand
By Azanis Shahila Aman - May 13, 2022 @ 8:14am

KUALA LUMPUR: The turmoil in Sri Lanka is expected to adversely affect Axiata Group Bhd's earnings and valuation, analysts said.

But Axiata said its operation there was strong enough to tide over the difficult times.

The telecommunication company, nevertheless, acknowledged that the ongoing economic risks of its Sri Lankan operations via subsidiary Dialog Axiata plc particularly and regulatory issues in Nepal generally, were a concern.

"Axiata is closely monitoring the situation in Sri Lanka. Our operating company Dialog has been consistently communicating with all stakeholders, including employees, customers, and vendors in Sri Lanka to manage the potential impact it may have on the business," Axiata told the New Straits Times.

Axiata said the company regularly assessed any business, operational and financial risks as part of its operations, and expected forex translation impact and unrealised losses, some of which would be reflected in its first quarter (Q1) of 2022 results.

Dialog's balance sheet has the requisite capacity with enough liquidity to continue operations effectively in these difficult times, it added.

"Dialog will be able to sustain itself through this crisis and will continue to exercise prudent financial and operational management to navigate macro uncertainties arising from the current situation," the company said.

Sri Lanka is facing an unprecedented economic crisis with its rupee having depreciated by 42 per cent against the ringgit year to date.

Inflation hit 29.8 per cent in April, and the government had suspended foreign debt payments and its president recently declared a new state of emergency.

Looking ahead, high global commodity prices might continue to fuel inflation, prolonged protests affect the recovery in tourism and political uncertainties affect investor and business confidence, analysts said.

Affin Hwang Capital analyst Isaac Chow said the crisis in Sri Lanka was going to affect Axiata and Dialog on several fronts including margin compression (revenue growth should lag cost inflation) and higher finance costs.

Chow said the crisis would also cause lower profit in ringgit terms due to currency depreciation, potential increase in taxes, lower free cash flow for the group as well as weigh on Dialog's valuation multiple.

"Dialog Axiata is Sri Lanka's largest telco and a key contributor to Axiata's earnings, accounting for 21-30 per cent of Axiata's 2018-2021 normalised profit after tax after minority interest (Patami).

"In 2021, Dialog Axiata contributed to 26 per cent of Axiata's normalised Patami. Hence, we expect Dialog's earnings contribution to fall sharply due to the depreciation of Sri Lankan rupee and margin compression," he said in a report.

Hence, Chow said the firm was cutting its 2022-2024 earning forecast by 13-15 per cent after incorporating a lower earnings contribution from Dialog.

In tandem, he said Affin Hwang was lowering its target price to RM3.40 from RM3.85 on Axiata after trimming its valuations of Dialog and Celcom.

"We maintain our Hold call on Axiata. The regulatory risks in several markets, rising interest rate and uncertainties in regional economic growth will likely continue to weigh on Axiata's business operations. However, we believe these negatives are partly reflected in the share price – over the past three months Axiata's share price has skidded by 13.5 per cent," he added.

https://www.nst.com.my/business/2022...here-withstand

[nazrey]

ASEAN 2022
Part 40: Vietnam | Kein Hing International Bhd
Kein Hing to construct RM5m factory in Vietnam as part of future expansion plans
Shazni Ong May 12, 2022 21:26 pm +08

KUALA LUMPUR (May 12): Kein Hing International Bhd on Thursday announced it has awarded an RM5 million construction contract to a third party main contractor in Vietnam for the proposed construction of a single-storey factory.

Kein Hing’s wholly-owned subsidiary Kein Hing Thai Nguyen (Vietnam) Co Ltd (KHTV), has awarded the job to the contractor for the proposed construction of the factory on a piece of industrial land located at Diem Thuy Industrial Park, Phuc Binh District, in Vietnam.

In a bourse filing, Kein Hing said the proposed construction of the factory with a total built-up of approximately 53,000 square feet will cater for the future expansion plans of the group in Vietnam, particularly the business of metal stamping, precision
machining, assembly of components and fabrication of tools and dies.

Kein Hing noted further that the group’s production and warehouse space are expected to increase by approximately 9% against its current total capacity with the proposed construction.

“The growth in customers’ demand for parts and metal components in Vietnam has created a great opportunity for the group to expand its manufacturing business in Vietnam.

“The proposed construction is strategically situated within the Diem Thuy Industrial Park, Thai Nguyen where business activities have been expanding rapidly in recent years.

“Therefore, the intended use of the factory upon completion of the proposed construction would principally be engaged in the business of metal stamping, precision machining, assembly of components and fabrication of tools and dies mostly for the multinational corporation customers in Vietnam,” it said.

Kein Hing added the construction of the proposed construction is expected to commence in May 2022, and barring any unforeseen circumstances it is expected to be completed by December 2022.

KHTV intends to finance the construction costs of the proposed construction through bank borrowings.

Kein Hing’s shares finished three sen or 2.91% lower at RM1, bringing it a market capitalization of RM108.9 million.

https://www.theedgemarkets.com/artic...xpansion-plans

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WORLD 2022
Part 38: Mauritania | Petroliam Nasional Bhd (Petronas)
Petronas hires Norwegian subsea company for decommissioning services in Mauritania
Hailey Chung May 13, 2022 13:09 pm +08

KUALA LUMPUR (May 13): Petroliam Nasional Bhd (Petronas), via its unit PC Mauritania 1 Pty Ltd (PCMPL), has hired Norwegian offshore services company Havfram for decommissioning operations in Mauritania.

In a statement on Thursday (May 12), Havfram, previously known as Ocean Installer, said that Petronas awarded the contract to the company for the provision of engineering, procurement, retrieval and disposal services in March 2022.

The services are for the abandonment and decommissioning of Petronas’ subsea facilities on the Chinguetti and Banda fields, offshore Mauritania.

Havfram, while not disclosing the financial details nor the terms, indicated that work had commenced.

Under the contract, Havfram said it will utilise its in-house expertise to service the remaining field infrastructure after Phase 1 decommissioning operations executed in 2018.

Havfram first secured a project from Petronas back in 2018.

The scope of the latest project includes decommissioning of risers and umbilicals on the Chinguetti field, which is located at water depths of approximately 800 metres, about 80km west of Mauritania.

Havfram deputy chief executive officer and subsea executive vice-president Kevin Murphy stated the company's focus on risk mitigation and efficient execution solutions saw it appointed by Petronas as a partner for decommissioning operations.

Havfram’s project management and engineering team is based in its Houston office in the US.

https://www.theedgemarkets.com/artic...ces-mauritania

[nazrey]

WORLD 2022
Part 39: Canada | Petroliam Nasional Bhd (Petronas)
Petronas unit to partner with Itochu, Inter Pipeline to construct blue ammonia, methanol plants in Canada
Justin Lim May 13, 2022 19:01 pm +08

KUALA LUMPUR (May 13): Petroliam Nasional Bhd (Petronas)’s subsidiary Petronas Energy Canada Ltd (Petronas Canada) is partnering with Canadian firm Inter Pipeline Ltd and Japanese firm Itochu Corp on the commercial production of blue ammonia and blue methanol in Canada by 2027.

The proposed project would consist of two facilities based in Alberta, with early expectations, pending the results of a technical evaluation, of producing world-scale volumes of blue ammonia with blue methanol volumes.

“This opportunity is dependent on a thorough risk assessment to be conducted by Inter Pipeline, Itochu and Petronas Canada, and a commercial arrangement between the partners. The partners are expected to reach a final investment decision in early 2024. If sanctioned, construction would commence in late 2024 with a 2027 in-service date,” said Inter Pipeline in a statement on Wednesday (May 11).

Blue ammonia is an efficient method of transporting hydrogen, a much sought-after energy source that contains no carbon. Blue methanol serves as a versatile building block for countless everyday products, including adhesives and construction materials, and is being evaluated for use as a low-carbon fuel for industries such as shipping.

“This project would be among the first of its kind in North America,” said Inter Pipeline president and chief executive officer Brian Baker.

“Once operational, these facilities would be at the forefront of diversifying Canada’s abundant supply of raw resources by converting them to value-added, energy transition products to supply growing global markets with low or no-carbon fuel and energy products,” he added.

One of the target markets for blue ammonia is Japan, which has set a target to reach net-zero GHG emissions by 2050. As part of that plan, the Japanese Ministry of Economy, Trade, and Industry (METI) announced that ammonia and hydrogen will play key roles in meeting its national clean energy targets in part by replacing coal as fuel in thermal power generation, Inter Pipeline noted.

In August last year, Nikkei Asia reported that Itochu has agreed to conduct a joint feasibility study with a Canadian subsidiary of Petronas on the commercial production of ammonia in Canada in 2026.

“The US$1.3 billion (about RM5.49 billion) plant will manufacture ammonia from natural gas extracted from a field owned by the Petronas unit, making up to one million tonnes per year.

“Ammonia generates no carbon dioxide when burned and can be blended with coal to reduce emissions at fossil-fuel power plants,” the report said.

Inter Pipeline is a major petroleum transportation and natural gas liquids processing business based in Calgary, Alberta, Canada. Inter Pipeline owns and operates energy infrastructure assets in Western Canada and is building the Heartland Petrochemical Complex — North America’s first integrated propane dehydrogenation and polypropylene facility.

https://www.theedgemarkets.com/artic...ethanol-plants

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ASEAN 2022
Part 41: Philippines | Telekom Malaysia Bhd's (TM)
TM teams up with Globe Telecom to roll out co-branded gaming solutions in Philippines
By Farah Adilla - May 15, 2022 @ 11:09am

KUALA LUMPUR: Telekom Malaysia Bhd's (TM) wholesale arm TM Wholesale has signed a collaborative agreement with Globe Telecom for a nationwide rollout of Globe's co-branded gaming solution called "Globe Gamer Grounds powered by Ember in the Philippines".

TM said the partnership would provide Globe with access to Swarmio's plug-and-play Ember gaming platform enhancing the latter's gaming and e-sports services and bringing it closer to its millions of mobile and broadband end users.

Leveraging TM's established global network and infrastructure ecosystems, the platform enables Globe's customers to enjoy ultra-low latency gaming experiences with faster download speeds.

TM Wholesale executive vice president Amar Huzaimi Md Deris said the company took pride in making superior gaming experiences accessible to the industry via its wholesale offerings which provide a seamless and high-quality digital experience to users.

"This collaboration also aligns with our vision to create a more vibrant digital ecosystem throughout the region," he said in a statement.

Globe operates nationwide fixed-line and broadband networks throughout the country, serving over 86 million mobile customers.

Beyond providing telecommunications services, the Globe Group of companies also has a significant presence in various digital solutions businesses, leveraging its substantial customer base, distribution capabilities, and strategic partnerships to establish a footprint that spans numerous industry sectors.

Globe Games and Esports head Ralph Aligada said with Globe's all-in-one gaming platform, the community of gamers would enjoy a seamless and high-quality digital experience.

"We aim to excite all gamers regardless of age and skill level across the Philippines. We are hopeful that with this agreement, there will be more opportunities and innovative solutions that would benefit our gaming community and users in the country, perhaps even across the region," he said.

Previously, TM Wholesale and Swarmio Media, a Canada-based gaming and e-sports technology company, established a partnership to provide accessible and high-quality digital gaming and e-sports services throughout Asean.

TM said the partnership with Globe marked a breakthrough in its collaboration with Swarmio Media, enhancing e-sports gaming and levelling up digital experiences for the Philippines and across the region.

https://www.nst.com.my/business/2022...ns-philippines

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ASEAN 2022
Part 42: Vietnam | Samaiden Group Bhd
Samaiden eyes RE projects in Vietnam with new Japanese shareholder Chudenko?
By John Gilbert - May 17, 2022 @ 8:26am

KUALA LUMPUR: Renewable energy (RE) and environment solutions provider Samaiden Group Bhd is venturing into Vietnam this year to tap lucrative RE projects in the country.

Group managing director Ir Chow Pui Hee said while Malaysia contributed almost 100 per cent to its revenue, Samaiden planned to make its first overseas venture to Vietnam this year.

"We have set our sights on Vietnam, which offers a plethora of potential as the Southeast Asia region's fastest-growing RE market and second-largest electricity consumer. We always believe the RE industry in Vietnam has good prospects," she told the New Straits Times.

Chow said Samaiden had set up a new company for the venture in Vietnam last year.

"We have constantly been eyeing RE projects in that market. We welcome any business partner or party interested in exploring with us via a joint venture or another business set-up," she added.

Chow did not furnish any estimates or contracts currently under negotiations.

However, it is believed that Samaiden would be venturing into Vietnam with Japan-based Chudenko Corporation, its new substantial shareholder.

Samaiden signed a business collaboration agreement with Chudenko in March this year to explore RE projects in Malaysia and overseas markets.

Chudenko previously subscribed for 16.8 million new ordinary shares of Samaiden at RM1.27 each via a private placement, representing a 7.27 per cent stake.

After that, Chudenko acquired 18.2 million ordinary shares from its co-founder Fong Yeng Foon, which further increased its stake to 15.15 per cent.

Chudenko has a vast domestic reach in Japan, with over 68 offices and an overseas presence with subsidiaries in Malaysia and Singapore.

In recent years, Chudenko had been active in the overseas investment of renewable energies.

It is listed on the Tokyo Stock Exchange (TSE) with a market capitalisation of 126.7 billion yen (equivalent to RM4.6 billion).

Last year, Vietnam announced a plan to have RE account for three-quarters of its national power production capacity by 2045.

It also hoped to achieve 70 per cent of actual production through renewable sources under its commitments made during the United Nations Climate Change Conference 2021 (COP 26) in November.

Vietnam is committed to reaching net-zero emissions by 2050 and will shift from fossil fuels to clean and renewable energy.

Under a 10-year Power Development Plan, the country plans to increase wind and solar power capacity by 333 per cent and 167 per cent respectively.

It was reported that its deputy minister of science and technology Tran Van Tung said Vietnam had a big potential for RE development with around 217 gigawatts of onshore wind power, 160 gigawatts of offshore wind power and 434 gigawatts of solar power, including rooftop panels.

"Vietnam needs to push investment in new and green technologies and dedicate resources to developing these with due technology transfers," Tung said in a local daily.

Chow said Samaiden remainrf consistent in growing its recurring income streams and plans to increase investments in RE assets and power plants.

She said there was a significant investment opportunity in renewable energy assets such as solar, biogas and biomass in the Asean region.

Samaiden is currently developing a 1.2MW biogas power plant in Kelantan, with expected completion by November 2023.

The power plant is to generate power to sell electricity to the power grid for 21 years.

The company is also developing a 531kWp grid-connected rooftop solar photovoltaic power system for Sunway Nexis.

Upon completion, Samaiden will operate and maintain the rooftop solar PV system and supply electricity to Sunway Nexis for 20 years.

On the corporate front, Samaiden has raised RM25.3 million after completing a private placement in February 2022.

This strengthened the company's war chest and enhanced the ability to seize opportunities in RE asset investments, Chow said.

As of Dec 31 2021, Samaiden's balance sheet remains healthy, with total cash of RM39.2 million exceeding total borrowings of RM14.6 million. As a result, the company is in a net cash position of 10.8 sen per share.

Samaiden has secured new contracts totalling RM299.9 million in the current financial year ending June 30 2022.

This has expanded the company's orderbook to RM410.2 million, with most works expected to be carried out within the next 12-24 months.

"This will contribute to Samaiden's revenue in the coming quarters. Our orderbook is equally balanced across commercial and large-scale solar projects while our tender activities remain active. As a result, we expect our order flows to remain solid in the coming months," Chow said.

For the first half (1H) of FY22, Samaiden's revenue surged 176.5 per cent year-on-year (YoY) to RM53.2 million compared to RM19.3 million in 1H FY21.

Its net profit for 1H FY22 climbed 38.7 per cent to RM4.3 million versus RM3.1 million in 1H FY21 on the back of a larger number of projects undertaken from engineering, procurement, construction and commissioning (EPCC) services and broad economic recovery from the Covid-19 pandemic.

https://www.nst.com.my/business/2022...older-chudenko

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ASEAN 2022
Part 43: Thailand | AirAsia
Thai AirAsia records average load factor of 73% in 1Q
Bernama May 17, 2022 21:48 pm +08

BANGKOK (May 17): Thai AirAsia Co Ltd (TAA) recorded an average of 73% load factor in the first quarter of 2022 (1Q 2022), following an easing of travel restrictions and the launch of more international routes.

In a statement on Tuesday (May 17), Asia Aviation Public Co Ltd (AAV), a major shareholder of TAA, said passengers served in 1Q 2022 also rose by 48% year-on-year (y-o-y) to 1.45 million, propelling the average fare by 7% y-o-y to 1,018 baht (100 baht=RM12.70) per passenger.

It said the cost of sales and services rose in line with the increase in flights, the average fuel price hiked by 61% y-o-y, and selling and administrative expenses increased by 21%, following commission fees and related fees stemming from the company’s fundraising.

“Positively, passenger numbers have shown signs of a steady increase for 2Q as the government eases restrictions and entry requirements to sustain international tourist arrivals, allowing TAA to continue to add routes and flight frequencies.

“For 2022, TAA is targeting to serve 10.4 million guests, with a 78% average load factor, 90% on-time performance rate and to end the year with a fleet of 53 aircraft in operation,” it said.

For 2Q 2022, TAA said it would continually be launching campaigns, emphasising the SUPER+ that offers unlimited free flights across Thailand and Asean throughout the year, free deliveries from airasia food, and flight cancellation coverage.

Earlier, AAV announced its operational results for 1Q, recording 2.09 billion baht in total revenue and a loss of 2.37 billion baht.

Meanwhile, AAV and Thai AirAsia Co Ltd chief executive officer Santisuk Klongchaiya said clear signs of recovery in the tourism sector were seen in 1Q 2022, as entry restrictions into Thailand were eased, while the Covid-19 pre-flight testing requirement was removed at the start of 2Q 2022.

“TAA seized the opportunity during this period to resume both domestic and international routes, adding 11,002 flights, up by 32% from the same period last year.

“We plan to launch even more international routes throughout the Asean and South Asian markets, in anticipation of the pent-up demand among foreign travellers to visit Thailand,” he said.

Recently, TAA commenced flights to eight countries, including 19 routes, covering Maldives, Cambodia, Malaysia, Singapore, Vietnam, Indonesia and Laos.

“TAA is forging ahead with its robust and sustainable growth plan, gradually adding seats and flights as the situation allows.

“We believe we will be able to fully fuel the international expansion in the coming quarters, resuming both familiar routes and adding newer choices, including routes to Japan,” he said.

https://www.theedgemarkets.com/artic...d-factor-73-q1

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WORLD 2022
Part 40: Sweden | Petronas Chemicals Group Bhd (PetChem)
PetChem buys Swedish specialty chemicals group Perstorp for €1.5b
Adam Aziz May 17, 2022 18:35 pm +08

KUALA LUMPUR (May 17): Petronas Chemicals Group Bhd (PetChem) is acquiring the entire equity interest in leading specialty chemicals group Perstorp Holding AB from Financière Forêt SARL for a base purchase of €1.538 billion (approximately RM7.018 billion) cash.

The acquisition marks the creation of a significant specialty chemicals portfolio, while enhancing its overall earnings, said PetChem, which together with its wholly-owned unit Petronas Chemicals International BV (PCIBV), had entered into a conditional securities purchase agreement with the seller for the proposed acquisition.

The Perstorp group currently derives more than 80% of its revenue from the 18 preferred chemical segments identified by PetChem, including surfactants, specialty polymers, specialty films, plastic additives, coatings, preservatives and biocides, and pre/pro biotics.

Perstorp has also developed a number of solutions such as the game-changing production of sustainable methanol from carbon dioxide, residue streams, biogas and green hydrogen at Stenungsund site to replace a large portion of its fossil-based methanol feedstock by 2026.

The price tag of €1.538 billion is based on an enterprise value (EV) of €2.3 billion minus adjusted net debt of €762 million.

The implied EV represents an EV/ebitda multiple of 8.3 times, which sits between comparable transactions of between 6.9 times and 15.7 times as well as below the average of 10.9 times.

Under the deal, PCIBV is required to pay a maximum of €45 million when Perstorp’s new pentaerythritol plant in Sayakha, India achieves mechanical completion, and the required permits to commence operations.

PCIBV is also required to repay all outstanding amounts owing by Perstorp group pursuant to certain existing financing agreements amounting to €851.7 million.

The Perstorp group has seven manufacturing sites and three research and development centres worldwide, with a diversified customer portfolio of more than 2,600 customers globally. Its top 10 customers represent 19% of the sales for the financial year ended 2021 (FY21).

In FY21, Perstorp recorded approximately €1.33 billion (RM6.54 billion) in revenue and €248 million (RM1.21 billion) in EBITDA with an EBITDA margin of 18.6%.

“PetChem’s existing supply of chemical/intermediates feedstock (for example olefins, methanol, n-butanol, acetic acid and syngas, among others) and industrial utilities will further support backward integration and create additional upside potential,” PetChem said.

“The Perstorp group’s unique combination of expertise in the development of proprietary processes and its ability to scale utilising its proprietary processes, chemistry, and implantation methods will greatly enhance PetChem’s current capabilities, thus reducing PetChem’s reliance on third party licensed technology,” it added.

In a statement, PetChem said the acquisition marks the creation of a significant specialty chemicals portfolio, while enhancing its overall earnings.

This follows the acquisition in 2019 of BRB Group, a leading global independent producer and formulator of silicones, lube oil additives and chemicals.

“Perstorp will add up to 2.3 million tonnes per annum (mtpa) to PetChem’s production capacity and contribute about 28% incremental revenue to PetChem on 2021 results as well as support PetChem’s medium-term goal of establishing 30% revenue generated from non-traditional businesses by 2030,” said PetChem managing director and CEO Mohd Yusri Mohamed Yusuf.

“This acquisition will also provide us with critical talent, know-how, technological platforms and proven customer channels to address the pressing needs of the market for more sustainable solutions,” he added.

PetChem, which will settle the transaction entirely via internally generated funds, had cash of RM16.39 billion as at end-2021.

The proposal will require shareholders' approval at an upcoming extraordinary general meeting of PetChem. It expects the deal to be completed in the second half of 2022.

Shares of PetChem closed up three sen or 0.3% to RM10.02, after touching an intra-day high of RM10.70 in the early session. Based on its closing price, the counter has a market capitalisation of RM80.16 billion.

https://www.theedgemarkets.com/artic...dish-firm-rm7b

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Part 44: Singapore | Resorts World Cruises
Genting tycoon Lim Kok Thay seeks Singapore comeback with new cruise line
Low De Wei/BloombergMay 18, 2022 22:36 pm +08

(May 18): Malaysian billionaire Lim Kok Thay is launching another cruise line in Singapore, months after his Hong Kong-based cruise empire imploded.

Resorts World Cruises Pte will initially operate with one ship, Genting Dream, which will provide cruises to nowhere setting off from the city-state in June, Michael Goh, the firm’s President and Head of International Sales, said in a press briefing. Goh was also former president of Dream Cruises, which went into liquidation in February amid the collapse of its parent firm Genting Hong Kong Ltd.

Lim, who is executive chairman of the new venture, resigned in January from his positions as the Chief Executive Officer and Chairman of Genting Hong Kong, after the Covid-19 pandemic crippled his once-sprawling global cruise brand.

Travel demand is rebounding in Asia amid an easing of travel curbs and economic reopenings. While the new cruise line shares the same name as Genting’s Resorts World casino and resort franchise, it will be run as a separate business entity.

At the same time, Lim continues to own one of the largest gaming and entertainment conglomerates in the world operating casino resorts in countries including Malaysia, Singapore and the US.

“Our cruise ventures for the last 30 years have been very profitable and is a core business,” Colin Au, the new liner’s Chief Executive Officer said at the same briefing.

While the world’s largest cruise liners — including Carnival Corp and Royal Caribbean Cruises Ltd — have been able to raise enough liquidity to get through the worst of the pandemic, a handful of smaller operators sought bankruptcy. Spanish cruise line Pullmantur, partly owned by Royal Caribbean, shut down in 2020, while Jalesh Cruises became the first operator in Asia to collapse the same year.

Singapore’s move to scrap testing requirements for vaccinated travelers has been a major boost for travel in the region, while other neighboring countries like Malaysia and Indonesia have followed suit. Still, key cruise markets like China still face strict quarantine requirements for travelers.

Au said the new cruise line will remain focused on Asia, although adding future ships will depend on whether locations like Hong Kong and Taiwan open up. The firm will seek to roll out routes to Indonesia, Thailand and Malaysia from September.

Bloomberg News previously reported that Lim had indicated interest in acquiring Genting Hong Kong’s mega-liner Global Dream, which is being sold by liquidators. Au declined to comment.

Genting Dream, which was previously sold after the liquidation of Dream Cruises, is being leased from four Chinese banks including Bank of Communications Co, China Merchants Bank Co, China Construction Bank Corp and China Development Bank.

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

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Part 45: Singapore | Genting Casino
Genting Singapore reports net profit after tax of S$40.4m for 1QFY22, 17% higher y-o-y
Felicia Tan May 12, 2022 17:45 pm +08

SINGAPORE (May 12): Genting Singapore has reported a net profit after tax (NPAT) of S$40.4 million (about RM127.13 million) for the first quarter ended March 31, 2022 (1QFY22), 17% higher than NPAT of S$34.5 million for the same period the year before.

Total revenue for the quarter improved 13% year-on-year (y-o-y) to S$314.5 million on the back of broad-based growth across all its segments.

Revenue for the group’s gaming segment for Resorts World Sentosa increased by 8% y-o-y to S$234.5 million

https://www.theedgemarkets.com/artic...-17-higher-yoy