Lion Industries stays in the red in Q3,. net loss narrows to RM57m

KUALA LUMPUR: Lion Industries Corporation Bhd remained in the red in the third quarter ended March 31, 2020 (Q3 2020) but its net loss narrowed to RM57.87 million from RM72.17 million in the same period last year.

Revenue declined to RM555.19 million versus RM693.36 million previously due to the lower sales volume of steel products, it said in a filing with Bursa Malaysia today.

“However, the group recorded a lower loss from operations of RM27.4 million due to higher sales prices and improved margins,” it said.

For the nine-month period (9M FY20), the company’s net loss widened to RM267.32 million from RM96.57 million in the same period last year, while revenue declined to RM1.85 billion from RM2.42 billion previously, mainly due to lower revenue registered by its steel division due to the Movement Control Order (MCO) that began on March 18, 2020.

Lion Industries said its businesses, being non-essential businesses, were temporarily closed during the MCO period, resulting in a higher operating loss of RM175.17 million for the period from RM38.68 million a year ago.

It added that the company’s net assets per share as at March 31, 2020 stood at RM2.06, a decrease of 40 sen from that of the last financial year.

On prospects, Lion Industries said its businesses were not spared from the crisis sparked by the unprecedented COVID-19 outbreak, causing global economic activities to grind to a halt with global supply chains and international trade disrupted.

“While the challenges ahead are highly uncertain, the company has implemented strict cost control measures to contain operating costs,” it said.

It added that the group would stay vigilant and responsive to market changes and to improve its operating performance for the next quarter. -Bernama

source https://www.thesundaily.my/business/lion-industries-stays-in-the-red-in-q3-net-loss-narrows-to-rm57m-FL2490061

Parkson’s unit signs tenancy agreement with Wuzhou City

KUALA LUMPUR: Parkson Holdings Bhd’s (Parkson) indirectly-owned unit, Nanning Brilliant Parkson Commercial Co Ltd has signed a 20-year tenancy agreement with Wuzhou Sankee Investment Co Ltd for approximately RM51.91 million.

Nanning Brilliant Parkson Commercial is a 54.97 per cent-owned subsidiary of Parkson Retail Group Ltd, which is Parkson’s Hong Kong Exchange-listed subsidiary.

In a filing with Bursa Malaysia today, Parkson said the tenancy agreement is in respect of the tenancy of the first to fourth floor of Sunshine 100 Sankee City, Wuzhou City, China.

“The principal activities of the group are the operation and management of a network of department stores in China.

“The tenancy of the property plays an important role in the development of the group’s business in Wuzhou City and is in line with the group’s development strategy in Guangxi Zhuang Autonomous Region,” it said.

The board believes that the tenancy will have a positive impact on the future development of the company. -Bernama

source https://www.thesundaily.my/business/parkson-s-unit-signs-tenancy-agreement-with-wuzhou-city-BL2490003

MISC appoints former minister Noh Omar as chairman

KUALA LUMPUR: Former minister Tan Sri Noh Omar has been appointed as the new chairman of Petronas’ subsidiary MISC Bhd, succeeding Datuk Ab. Halim Mohyiddin.

The appointment, effective today, was announced by the shipping company in a filing with Bursa Malaysia.

The Tanjung Karang Member of Parliament, 62, served as Entrepreneur and Co-operative Development Minister from 2008 to 2009.

Noh was subsequently the Agriculture and Agro-based Industry Minister from 2009 to 2013.

From 2014 to 2016, he served as the Selangor Federal Action Council chairman before returning to the Federal Cabinet as Urban Wellbeing, Housing and Local Government Minister from 2016 to 2018.

Meanwhile, Ab. Halim, 74, remains on the company’s board as an independent director.

MISC, which is 57.56 per cent owned by Petronas, provides energy-related maritime solutions and services. -Bernama

source https://www.thesundaily.my/business/misc-appoints-former-minister-noh-omar-as-chairman-AD2489983

Ringgt ends stronger as dollar remains under pressure

KUALA LUMPUR: The ringgit ended higher today as the dollar lost its lustre in the global market amid the Covid-19 economic recovery optimism.

At close, the ringgit stood at 4.3150/3200 against the greenback compared with Friday’s 4.3450/3500.

AxiCorp global chief market strategist Stephen Innes said the dollar was sold on general global reopening optimism.

In addition, local risk sentiment has been improving due to a relief rally as US President Donald Trump’s reaction to a Hong Kong law fell well short of markets fears, as some had even expected tariffs to escalate.

“This strengthens the yuan and benefits regional currencies, and the dollar is being sold on general global reopening optimism,” he told Bernama.

On Friday, Trump said he would eliminate special trade privileges for Hong Kong in reaction to China’s decision to impose a national security law on the financial hub, but did not announce any specific measures against Hong Kong.

Meanwhile, Innes said oil prices were stabilising at the recent high level as it is expected that the Organisation of the Petroleum Exporting Countries (OPEC)+ production agreement will be extended for three months.

OPEC was reportedly considering convening a meeting as soon as this week to discuss whether to extend record production cuts beyond end-June.

He said besides central bank meetings such as the European Central Bank, Reserve Bank of Australia Bank of Canada, the US employment report for May is a potential flash points for investors this week.

Meanwhile, the ringgit was traded mostly higher against a basket of benchmark currencies, except against the British pound, where it declined to 5.3454/3533 from 5.3435/3514.

The local note rose against the Singapore dollar to 3.0620/0660 from 3.0768/0810, gained against the Japanese yen to 4.0099/0156 from 4.0528/0586 and was higher against the euro at 4.7953/8021 from 4.8369/8433 last Friday. - Bernama

source https://www.thesundaily.my/business/ringgt-ends-stronger-as-dollar-remains-under-pressure-AD2489552

Bursa Malaysia riding the bull to close higher

KUALA LUMPUR: Bursa Malaysia rode the regional trend wave to close higher today supported by index-linked counters and commendable performance by rubber-based producers, dealers said.

The benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) rose 16.89 points to end the day at 1,490.14 from 1,473.25 at last Friday’s close.

The index, which opened 1.61 points stronger at 1,474.86 this morning, hovered between 1,473.55 and 1,492.55 throughout the day.

The overall market breadth was however negative with decliners marginally outpacing gainers 574 to 511, while 343 counters were unchanged, 440 untraded and 23 others suspended.

Total volume rose to a staggering 10.3 billion shares worth RM6.73 billion from 9.04 billion shares worth RM9.31 billion last Friday.

AmInvestment Bank representative, Joshua Ng said the FBM KLCI has seen a recent massive re-rating of the already high protective equipment glove sector (now with a 9.0 per cent weighting in the FBM KLCI).

“This was due to the strong demand for personal protective equipment amidst the Covid-19 pandemic, and it will probably go beyond the pandemic as a result of stronger hygiene awareness and practices of the entire world population,” he said in a note today.

AmInvestment Bank said the ferocity of the domestic liquidity has been driven by the risk-on sentiment globally triggered by the massive monetary and fiscal stimulus packages put in place by central banks and governments around the globe.

In the case of the US Fed, the monetary stimulus promised is an ‘unlimited’ one.

Other factors include optimism on the reopening of the economy and Covid-19 vaccine development; as well as the reality that risk-free assets such as cash and the Malaysian Government Securities (MGS) are hardly generating any positive inflation-adjusted yield following a series of cuts in the overnight policy rate (OPR) by Bank Negara Malaysia to a level last seen during the global financial crisis in 2008/2009.

Regionally, Japan’s Nikkei rose 1.21% to 22,142.6, Hong Kong’s Hang Seng expanded 3.06% to 23,664.71 and Singapore’s Straits Times improved 2.04% to 2,561.89.

Among the heavyweights, Tenaga improved 64 sen to RM11.90, IHH Healthcare rose 13 sen to RM5.56 and Hartalega garnered 64 sen to RM13.18.

Meanwhile, Maybank eased two sen to RM7.48 and, Public Bank declined eight sen to RM14.58.

Of the actives, K-One bagged 12.5 sen to 44.5 sen, BCM Alliance rose 13 sen to 35.5 sen, LKL International garnered 29.5 sen to 85 sen, KNM Group added 3.5 sen and Nexgram improved one sen to 2.5 sen.

On the index board, the FBM Emas Index was 83 points firmer at 10,463.85, the FBMT 100 Index rose 85.5 points to 10,398.71, the FBM Emas Shariah Index advanced 199.42 points to 12,224.64, the FBM ACE soared 311.51 points to 5,931.32 while the FBM 70 eased 23.49 points to 13,171.71.

Sector-wise, the Plantation Index added 36.96 points to 6,822.13 while the Financial Services Index decreased 59.45 points to 12,423.29 and the Industrial Products and Services Index declined 0.34 of-a-point to 129.72.

Main Market volume trimmed to 4.88 billion shares worth RM4.71 billion from 5.64 billion shares worth RM8.20 billion last Friday.

Warrants turnover improved to 592.96 million units worth RM206.25 million from 563.18 million units worth RM175.79 million last Friday.

Volume on the ACE Market exponentially widened to 4.82 billion shares worth RM1.81 million from 2.83 billion shares worth RM930.71 million previously.

Consumer products and services accounted for 796.59 million shares traded on the Main Market, industrial products and services (791.95 million), construction (368.5 million), technology (448.28 million), SPAC (nil), financial services (76.61 million), property (320.82 million), plantations (142.28 million), REITs (7.89 million), closed/fund (25,800), energy (1.34 billion), healthcare (132.09 million), telecommunications and media (210.23 million), transportation and logistics (186.98 million), and utilities (60.22 million). - Bernama

source https://www.thesundaily.my/business/bursa-malaysia-riding-the-bull-to-close-higher-ID2489486

Eversendai’s orderbook hits all time high of RM2.9b with 2 awards from Europe

PETALING JAYA: Eversendai Corp Bhd’s outstanding construction order book hit an all time high of RM2.88 billion with the award of two European offshore wind renewable energy projects, via its wholly-owned subsidiary, Eversendai Offshore.

It revealed the first project entails the fabrication and construction of an offshore wind substation platform, jacket and piles in the United Kingdom.

The other project is for the fabrication and construction of jacket & piles for the Hollandse Kust Zuid (HKZ) Beta offshore wind substation platform for TenneT in the Netherlands.

Eversendai Offshore’s CEO Narish Nathan commented that the awards mark the group’s continued expansion in the offshore wind renewable energy sector; a market that it recognises as vital for the world’s future clean energy needs.

““This diversification into the offshore wind renewable energy sector continues to promote our diversification efforts of growing our business into industries that leverages on our fabrication facilities and core expertise in engineering, fabrication and construction”, he said in a press release.

Both contracts were awarded by Petrofac Ltd with a total contract value of RM186 million and will be executed in its waterfront fabrication yard in RAK Maritime City, United Arab Emirates.

It elaborated that the scope of the contract in the UK includes engineering, fabrication, construction, sea- fastening and loadout of the offshore substation platform topside, jacket and piles as well as pre-commissioning of the substation platform topside.

Eversendai said the substation will have the highest capacity in the world, and is expected to generate clean energy that will be enough to power approximately one million homes in that region.

On the other hand, its work scope for the HKZ Beta project includes engineering, fabrication, construction, sea-fastening and loadout of the jacket & piles.

The group expects the offshore wind renewable energy projects to be a substantial contributor to its revenue and profits moving forward and these newly secured projects will further add value to the Eversendai’s track record for future projects which are currently being bid.

source https://www.thesundaily.my/business/eversendai-s-orderbook-hits-all-time-high-of-rm29b-with-2-awards-from-europe-FC2488968

UMW’s Badrul Feisal passes away

PETALING JAYA: UMW Holdings Bhd president & group CEO Badrul Feisal Abdul Rahim has passed away yesterday.

Badrul Feisal, 50, had served as the president & group CEO of UMW group since his appointment on

Oct 1, 2015. He joined UMW group as senior general manager at the president & group CEO’s office in December 2010 and was appointed as the acting executive director for the UMW oil & gas division from April 2011 to December 2011. He was also the executive director of group corporate development division before being appointed group COO of UMW in January 2013.

Prior to UMW, he had been involved in the senior management and directorship of Khazanah Nasional Bhd, Proton, Lotus and the DRB-Hicom group of companies. He acquired vast corporate and operational experience through manning responsibility over Khazanah’s key subsidiaries, among others, Tenaga Nasional Bhd, Malaysian Technology Development Corp, Commerce Asset-Holdings Bhd (now known as CIMB Group) and UEM Group.

“Badrul Feisal was instrumental in the success of key value creation projects at various business divisions, particularly making UMW as the first Malaysian company to be a tier-1 aerospace engine component manufacturer to Rolls-Royce plc,” UMW said in a statement today.

The board, management and staff of UMW express their deepest condolences to the family of the late Badrul Feisal.

source https://www.thesundaily.my/business/umw-s-badrul-feisal-passes-away-GC2488899