News - WestPorts, MAS, TRIPLC, Sunsuria, Taliwork, Ho Hup, Golsta

WestPorts: The stumbling block to its long-term outlook was removed when China rejected the formation of a global shipping alliance.

China’s Ministry of Commerce (CMC) had rejected the formation of a global shipping alliance by Europe’s three biggest container alliance under the proposed P3 grouping on the basis that it will “restrict competition”.

P3 has been seen as a stumbling block to Westports’ longer term outlook as it could potentially grow in size.

Is CEO said that the latest decision in some ways would not change anything because he did not expect the route realignment of the P3 shipping alliance to have any impact on WestPorts.

He expects volume to grow at between 5% and 10% for 2014. CMA CGM has been its largest client for some time.

Industry observers opine further increases in WestPorts’ container volume for 2014 following the latest news. The scrapping of the P3 shipping alliance should be good news for WestPorts.

MAS: News report that MAS might form a partnership with Etihad Airways. Its major shareholder Khazanah Nasional Bhd had also reaffirmed commitment to restructure the ailing airline.

Observers pointed out that the news of partnership with Etihad was no big deal as it would not support MAS fundamentally. MAS has an existing partnership with Etihad and the news could be an extension of that relationship. Nevertheless a partnership with Etihad could help boost its revenue and would see an upward re rating.

Khazanah Nasional’s director Tan Sri Azman said the government is committed to formulating a revival plan within a year from June 2014 because MAS’ operating cash flow are on the course to run out by then.

TRIPLC: It is said to have clinched a government concession to build, operate and lease UITM new Puncak Niaga Alam campus in Selangor.

The government has agreed to sign a 23 year concession agreement with six companies to build the campuses.

Tan Sri Rozali Ismail owns a 43% stake in TRIPLC.

Sunsuria: It is not going ahead with the proposed purchase of real estate development assets in Selangor and Johor worth some rm10 billion from companies linked to its new chairman and major shareholder Datuk Ter. It had decided to allow the heads of agreement for the acquisition to lapse.

However despite shelving the plan to acquire assets from Ter, Sunsuria said it would continue with the proposed rights issue to raise fresh proceeds for the group.

The group would continue to seek potential landbank, property investment and property development for acquisition, in line with its plan to grow its business and enhance its prospects.

Ter currently (June 2014) controls 50.12% stake in SUnsuria.

Pelikan: It is confident of returning to the black this financial year ending Dec 31 2014. The company has been making losses in the past three financial years.

The group will now focus on driving core profitable businesses and to rationalize its loss making units. The integration of Herlitz Germany into Pelikan is expected to be completed in the next three months from June 2014.

For FY2013, Europe contributed 52% to the group revenue, America contributed 13% while Asia contributed 4.2%.

It had announced a private placement of up to 10% of its issued and paid up capital. The funds will be used for working capital.

Taliwork: It controls a 55% stake in Cheras-Kajang highway concessionaire Grand Saga Sdn Bhd is not planning to sell the highway operator anytime soon.

Meanwhile it is looking at making strategic investments in both domestic and foreign markets.

It will continue to be driven by the water segment which contributed 57% to its revenue and 65% of the overall pre tax profit in FY2013.

The group manages six water treatment plants with a combined capacity of 1.04 billion litres per day.

AS at end FY2013, its gross receivables from SPLASH which is its main client rose to rm260 million. SPLASH is a 40% own by GAmuda.

Taliworks appointed Tan Sri Ong Ka Ting as its chairman. Ong is the former president of MCA until 2008.

Vijay Virendran Sethu is a major shareholder with a 10% stake.

Ho Hup: Details of the 50 acres development in Bukit Jalil dubbed Pavilion 2 to be co developed by Ho Hup and Malton will be out by third quarter of 2014.

The project will be the growth driver for Ho Hup.

While the 50 acre piece is for the JV with Malton, Ho Hup has actually started development an adjacent 10 acre on its own, with a GDV of rm10 billion.

On its construction arm, the gorup’s order book stood at rm400 million.

The group is looking to replenish its land bank.

It had ventured into property and construction projects in Myanmar.

Golsta: Tan Sri Hii who is a major shareholder with a 52.21% stake has plans to enter the property market in the near future.

Golsta is involved in heavy machine manufacturing.

Earlier news report that Hii was looking at injecting his privately owned property business into the listed company.

Hii’s HCK capital group has a property development arm with several major projects in the Klang Valley and Perak. The group has secured projects worth rm3.8 billion in GDV within three years of establishing its property division.

He has already began injecting part of HCK Capital Group’s business into Golsta by incorporating its hospitality and hotel management arm.