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Thursday, July 24, 2014

Zelan wins RM249m Petronas Rapid contract (Edge)

Zelan Bhd has secured a RM248.5 million contract to build and operate material off-loading facilities (MOLF) for Petroliam Nasional Bhd's (Petronas) Refinery and Petrochemical Integrated Development (Rapid ) in Pengerang, Johor.

In a statement to the exchange today, Zelan said it had received  the letter of award from Petronas Refinery and Petrochemical Corp Sdn Bhd for the 18-month project within the Tanjung Setapa area.

"The MOLF Jetty is intended to be used for import of heavy lift oversized (HLO) and super HLO equipment and materials as well as some break-bulk and containerised cargo during the implementation of the Rapid project," Zelan said.

Wednesday, July 23, 2014

Ahmad Zaki bagged RM185.15m construction and upgrading job (Edge)

Builder Ahmad Zaki Resources Bhd (AZRB) has bagged a construction and upgrading works contract worth RM185.14 million.

In a filing with Bursa Malaysia today, AZRB said its wholly-owned subsidiary, Ahmad Zaki Sdn Bhd, received the letter of award from Putrajaya Resources Sdn Bhd.

“The contract is expected to contribute positively to the group’s earnings and net tangible assets from the financial year ending Dec 31, 2014 onwards,” it added.

The project is for a contractual period of 28 months and AZRB is to construct two blocks of office buildings, retails spaces, a three-level basement parking, access road on Plots Z1, Z2, Z3 and Z4, and complete the external works on Plots Z1 and Z2.

In addition, the group will undertake the upgrading works to Jalan Alamanda with associated infrastructure and landscaping works at Precinct 1, Putrajaya.


The group's share price went down 0.5 sen or 0.7% to 69.5 sen at the close of market today, with 591,500 shares traded.

Talam Transform's landbank attracts interest (Edge)

Shares of Talam Transform Bhd was traded actively today, as investors may have noticed the value of its massive landbank in the Klang Valley.

With a market capitalization of only RM527.4 million, the group currently owns undeveloped land bank in Selangor, that fetches a net book value (NBV) of RM962 million.

As at 3pm today, share price of Talam Transform went up 0.5 sen or 4.2%, to 12.5 sen, with 39.123 million shares done, making it the third most active counter of today.

Year-to-date, the share has risen by 6 sen or 92.31%, and it is now trading at its highest level since Jan 11, 2011.

It has a net asset per share of 13 sen, as at end-April this year.

Based on the top 10 properties listed in Talam Transform’s latest annual report, it had 1,861 acres in Ampang, Bukit Jalil, Puchong, Sepang and Rawang. If the group was to develop the lands itself, the estimated gross development value (GDV) should be more than RM5 billion.

Talam Transform’s undeveloped lands in Selangor, spanned about 800 ha (2, 000 acres) — 82.4% higher than its current market cap.

Formerly known as Trinity Corp Bhd, Talam Transform has assets held for sale, amounting to about RM300 million, including Pandan Safari Shopping Complex, its 85% stake in China’s Maxcourt Hotel Ltd, as well as a few parcels of land in Batang Berjuntai and Bukit Beruntung.

As at June 3, 2014, Kumpulan Europlus Bhd (KEuro) is the single largest shareholder, with 29.89% stake in Talam Transform.

Thai tycoon Tan Sri Surin Upatkoon, is an indirect substantial shareholder, as he holds 32.62% of MWE Holdings — the investment vehicle that has acquired a 24.68% stake in KEuro, last year.

Meanwhile, KEuro founder and former president, Tan Sri Chan Ah Chye, who is also Talam Transform’s non-executive director, now holds 1.72% stake in the company.

Friday, July 18, 2014

REDtone targets to seek transfer to Main Market in September (Edge)

Maintain outperform with target price of 81 sen: REDtone is believed to be participating in establishing a teleradiology hub in the city to cater to both domestic and regional hospitals. The hub is expected to have a pool of radiologists who will interpret computerised tomography (CT) scans, magnetic resonance imaging (MRI) and even ultrasound images and this will allow the participating hospitals to improve their operational efficiencies as well as reduce their in-house specialist costs. While REDtone is reluctant to elaborate at this juncture, the project is expected to contribute positively to the group’s future earnings if it materialises.

The Malaysian Communications and Multimedia Commission (MCMC) is expected to announce the successful bidders of the public cellular service tendering process under the TIME 3 (T3) extension project in the coming weeks. The T3 extension project is expected to be worth about RM800 million and it will be segregated into two clusters, namely the installation of tower and infrastructure (Part 1) and the installation of equipment and electronics related to public cellular service under the concept of radio access network (RAN) sharing technology (Part 2).

While the project details have yet to be revealed, management believes there is a fair likelihood for the group to participate in the project due to its vast industry knowledge, respectable track record and technical know-how.

REDtone is targeting to submit its application to transfer the company’s listing to the Main Market of Bursa Malaysia after the release of its financial year 2014 (FY14) audited accounts in September.

Management is confident of posting its third consecutive year of profitability in FY14, thus meeting one of the transfer’s listing requirements (uninterrupted audited profit for three to five full financial years with an aggregate profit after tax [PAT] of at least RM20 million and a PAT for the most recent financial year of at least RM6 million).
Note that REDtone had recorded net profits of RM2.2 million, RM25.2 million and RM14.7 million in FY12, FY13 and 9MFY14 respectively. — Kenanga Research, July 17