MY Morning Wrap | Genting Malaysia Subsidiaries Issue Additional $100 Million in Senior Unsecured Notes

The market cooled in the afternoon after the S&P 500 and Dow Jones Industrial Averages hit record trading highs Tuesday morning before falling back. Only a couple of trading hours remain before the most exciting FOMC monetary policy meetings for years. Just past 4 pm ET the $S&P 500 Index (.SPX.US)$ was up 3 bps, the $Dow Jones Industrial Average (.DJI.US)$ fell 0.04%, and the $Nasdaq Composite Index (.IXIC.US)$ climbed 0.20%.

$GENM (4715.MY)$'s subsidiaries, Genting New York LLC and Genny Capital Inc, have successfully issued an additional US$100 million (RM427 million) of 7.25% senior unsecured notes, maturing in 2029. This issuance follows their recent offering of US$525 million in similar notes last Tuesday, also maturing in 2029. "These additional notes form part of the same series as the initial US$525 million aggregate principal amount of notes that were priced on Sept 10, 2024 (initial notes) and the additional notes will carry the same terms as the initial notes.” The net proceeds from this issuance are earmarked for the repayment of existing debts. Following this issuance, the company's total gross borrowings are projected to rise to RM17.69 billion from RM14.98 billion, with the net gearing ratio anticipated to increase from 0.81 to 1.04 times.

$SUPERMX (7106.MY)$ inaugural manufacturing facility in Texas is slated to commence commercial operations in January 2025. Its American subsidiary, Maxter Healthcare Inc., is set to begin testing and commissioning its initial production lines in December 2024. The facility’s phase one operation boasts a production capacity of 4.8 billion gloves annually, with expectations to reach 50% of this capacity by the following year. Full capacity expansion is anticipated to complete by the fourth quarter of 2025. According to analyst reports, Supermax currently produces approximately 21 billion gloves annually, with around 29% of its sales directed to the US market.

$SAMAIDEN (0223.MY)$ is venturing into Indonesia's renewable energy sector by forming a joint venture (JV) company. Its subsidiary, Samaiden SG Pte Ltd, will partner with PT MCS Bina Energi on a 70:30 basis, with an authorized capital of 10 billion rupiah (RM2.8 million). PT MCS Bina Energi, active in infrastructure, renewable energy, and mineral resources, aligns closely with Bintang Timur Investama, which invests in infrastructure, renewable energy, and technology. Samaiden will offer technical advisory services for solar photovoltaic systems and renewable energy, while MCS Bina focuses on local business development and regulatory navigation in Indonesia.

$RESINTC (7232.MY)$ is entering a joint venture with a Sarawak state agency unit to trade industrial plastic products within the state. This collaboration will enhance Resintech’s trading capabilities and provide access to new markets within Sarawak’s burgeoning industrial sector, promising a reliable revenue source. Initially, the JV will concentrate on trading, with potential future expansion into manufacturing. SEDC Energy Sdn Bhd, part of the Sarawak Economic Development Corp, will own 40% of the JV, subscribing to 40,000 new shares, with Resintech holding the remaining 60%.

$PRKCORP (8346.MY)$ has secured a sixth six-month extension from Bursa Malaysia to finalize its regularisation plan, moving the submission deadline to February 9, 2025. This extension follows the company’s recent request as it neared its previous deadline on August 10.

$MYEG (0138.MY)$ has partnered with the Federation of Malaysian Freight Forwarders (FMFF) to endorse ZTrade as the National Single Window (NSW) for streamlining cross-border trade in Malaysia. FMFF, with its 1,500 members, joins MyEG following its exclusive agreement with East Logistics Link Co Ltd, a division of China’s General Administration of Customs, to develop and implement an NSW for ASEAN trade. ZTrade leverages MyEG’s Zetrix blockchain platform to offer near real-time access to trade documentation, improving tariff assessments and customs procedures.