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Stocks In Focus MY (Gas M’sia, JCorp, KKB) – 29/04/15
Malaysia Daily Bulletin | 29 April 2015

Gas Malaysia Partners Sime Darby Offshore

  • Gas Malaysia has partnered with Sime Darby Offshore Engineering to undertake a biogas compressed natural gas distribution business extracted from the palm oil mill effluent.
  • The joint venture would involve the provision of the sale, supply and the transportation of BioCNG to customers and carrying out of the design, construction, installation, commissioning and operation of pressure regulating unit at each customer’s premises.
  • Gas Malaysia has vast experience in marketing and promotion of natural gas usage to industrial, commercial and residential sectors in Peninsular Malaysia through pipeline distribution.

Significance: Both parties seek to optimise the combined strengths of each partner. Gas Malaysia has the potential network and infrastructure to facilitate the proposed business activities of the joint venture, serving as platform to supply natural gas to new customers currently not served by the company’s existing pipeline. Gas Malaysia will fund its investment through its internally generated funds.

JCorp To List RM900 Million Islamic REIT

  • Johor Corp (JCorp) plans to list its RM900 million Islamic real estate investment trust (REIT), Al-Salam on the main market of Bursa Malaysia in the third quarter of 2015.
  • Al-Salam REIT is a diversified Islamic REIT focusing on various syariah-compliant assets which consists of commercial, retail, office and industrial assets. It’s initial portfolio will include 31 assets to be acquired by Damansara Assets (DASB) and QSR Brands Holdings.
  • The IPO will offer 580 million units and the prospectus will be launched in June. JCorp believes that Islamic REITs have the potential to be the preferred investment instrument among investors in the capital market.

Significance: Al-Salam is expected to bring returns of 6 percent to 6.3 percent to unitholders in the first year. JCorp aimed to acquire RM2 billion worth of assets through Al-Salam REIT within 3 years.

KKB Associate Bids For RM550 Million Projects

  • KKB Engineering‘s associate OceanMight delivered tis maiden fabrication project for the oil and gas (O&G) industry last week and has bid for four more projects worth RM550 million.
  • OceanMight is a 43 percent owned associate firm of KKB Engineering and has teamed up with Icon Oilfield Solutions in two of the four bids. Last month, they entered a consortium agreement to leverage on the two companies’ combined capabilities and resources especially in projects involving the engineering and construction of minimal facilities platforms and lightweight structures.
  • The tie-up with Icon Oilfield Solutions was to strengthen OceanMight’s focus on marginal oilfield development as the former could bring in engineering expertise and installation solutions.

Significance: KKB Engineering had tendered for more than RM85 million worth of contracts related to its traditional engineering and manufacturing businesses. The group is eyeing potential jobs from the Sarawak Museum campus and heritage trail project. Net profit stands at RM28.6 million with revenue at RM76.7 million for the first quarter ended 31 March 2015.

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