MY Morning Wrap | Capital A Advances Disposal of Aviation Sector to AirAsia X

Just past 4 pm ET the $S&P 500 Index (.SPX.US)$ traded lower by 29 bps, the $Dow Jones Industrial Average (.DJI.US)$ fell 0.25%, and the $Nasdaq Composite Index (.IXIC.US)$ fell 0.31%.

$WCT (9679.MY)$ plans to sell three retail properties to the newly formed Paradigm REIT for RM2.44 billion. The properties include Bukit Tinggi Shopping Centre, managed by Gemilang Waras Sdn Bhd, an indirect subsidiary of WCT; Paradigm Mall Petaling Jaya, managed by Jelas Puri Sdn Bhd, a 70% joint venture of WCT; and Paradigm Mall Johor Bahru, managed by WCT Hartanah Jaya Sdn Bhd. Paradigm REIT, set to be listed on the Main Market of Bursa Malaysia, will finance this acquisition by issuing 1.6 billion new units at an assumed price of RM1 per unit and a cash component of RM837 million, raised through medium-term notes by a special purpose vehicle.

$CAPITALA (5099.MY)$ has received approval from Bursa Malaysia for its EGM circular, outlining the proposed sale of its aviation sector to $AAX (5238.MY)$. Concurrently, AAX announced regulatory approval for its EGM circular, setting the stage for shareholder votes within the next three weeks. The divestiture of Capital A's aviation division to AAX is aimed at alleviating its debt-laden balance sheet and exiting the Practice Note 17 status, a condition it has been under since 2020.

$PMETAL (8869.MY)$ has partnered with three Indonesian entities to manage an alumina refinery in West Kalimantan, Indonesia. The facility is projected to produce between one and 1.2 million tonnes annually in its first phase, with potential future expansion to double the capacity. Phase one is budgeted at US$750 million (RM3.24 billion), financed through equity and loans. The Indonesian partners include PT Alakasa Alumina Refineri, PT Dinamika Sejahtera Mandiri, and PT Kalimantan Alumina Nusantara (KAN). Press Metal will acquire an 80% stake in KAN for RM1.04 billion, with payments spread over seven tranches within the next year, funded by internal resources.

$EWINT (5283.MY)$ reported a reduced net loss of RM8.19 million for the third quarter ending July 31, 2024 (3QFY2024), improving from a RM12.3 million loss the previous year. The decrease in losses is attributed to better joint venture results with Ballymore Group, reduced marketing expenses, and the absence of interest costs following a complete loan repayment last year. This quarter also marked the first with no revenue, down from RM31.17 million, as the company paused new launches to focus on selling existing inventory. No dividends were proposed for this period.

$SCIPACK (8125.MY)$ experienced a 9.43% decrease in net profit for FY2024, earning RM32.55 million compared to RM35.94 million previously. The decline is attributed to increased market competition and freight costs. Annual revenue fell to RM713.51 million from RM774.78 million due to product mix adjustments. However, the fourth quarter saw a net profit of RM6.81 million, a significant increase from RM149,000 in 4QFY2023, although quarterly revenue slightly dropped by 1.88%. The company increased its quarterly dividend to five sen per share, raising the annual dividend to 7.5 sen per share.

$BARAKAH (7251.MY)$, classified under Practice Note 17 (PN17), has received a non-binding purchase offer from an Indonesian company via a private tender for its pipe-laying barge, Kota Laksamana 101. The company did not disclose the offer amount. According to a recent report by The Edge Malaysia, discussions are ongoing for a potential sale below US$10 million (RM43.5 million), which is less than the initially quoted US$11.4 million.

$KIMLUN (5171.MY)$ secured a RM128.13 million contract to construct a residential development in Johor Bahru. This marks the company's fifth contract announcement this year. The project is divided into two phases: the first valued at RM57.86 million, expected to complete by the third quarter of 2026, and the second worth RM70.27 million, due 21 months from the start date.

$PEKAT (0233.MY)$ has won a RM115 million contract from $MFCB (3069.MY)$ to develop a 29.99MW solar farm in Kinta, Perak. The project commencement is scheduled for the fourth quarter of 2024, with a planned operational start by December 31, 2025. This contract represents Pekat's second major solar project award this year.

$YBS (0025.MY)$ plans to acquire the entire stake of Allied Technologies Holdings Pte Ltd's precision manufacturing units for an indicative total of US$38 million (RM167.2 million), payable in cash and shares. Of the total, US$26 million will be paid in cash, with the remaining US$12 million covered by issuing 70.4 million YBS shares at 75 sen each. This move was announced following a memorandum of understanding with Allied Technologies Holdings for the acquisition of Allied Precision Manufacturing (M) Sdn Bhd, Allied Precision Technologies (M) Sdn Bhd, Allied Precision (Thailand) Co Ltd, and Allied Technologies (Saigon) Co Ltd.