CORPORATE

Avillion: Locks in 10-year contract to manage upcoming Johor Bahru hotel. Avillion announced the signing of a 10-year hotel management agreement with Bintang Kencana Sdn Bhd to manage and provide direct day-to-day operation of an upcoming 153- room hotel in Bandar Baru Uda, Johor Bahru. The contract comes with a five-year renewal option. According to Avillion, it will commence to manage and operate the hotel once construction of the facility has been completed, and once it has received all required business licences.

(Source: The Edge Financial Daily)

Kumpulan Powernet: Gerakan's Liang named MD. Parti Gerakan Rakyat Malaysia secretary-general Datuk Liang Teck Meng has been appointed the managing director of Kumpulan Powernet Bhd. Liang, 47, is replacing Woo Wai Mun, who has stepped down from his post after three years at the helm to pursue other business and personal commitments. (Source: The Edge Financial Daily)

Maybank: Partners CGC to provide RM2b SME portfolio guarantee scheme. Malayan Banking (Maybank) has entered into a strategic partnership with Credit Guarantee Corporation Malaysia Bhd (CGC) to provide up to RM2b of financing to small and medium sized enterprises (SMEs) via the latter's portfolio guarantee (PG) scheme. Maybank and CGC said this is the largest ever amount under the CGC PG scheme to support local SMEs in growing their businesses further. Under the scheme, SMEs can apply financing facilities from Maybank, from a minimum of RM50,000 up to a maximum of RM1.5m and for a fixed tenure of up to seven years. (Source: The Edge Financial Daily)

Sime Darby Property: New launches record strong take-up rate. Sime Darby Property sold as much as 90% of its new launches within one week, suggesting resilient demand for both its residential and commercial products despite the soft property market. This refers to the final phase of its landed home series in Denai Alam situated at the heart of City of Elmina, dubbed Semanea Hills, which comprises 162 units as well as commercial units at 3 Avenue in Bandar Bukit Raja. According to Sime Darby Property, the Semanea Hills superlink homes were 90% sold last weekend, while the semi-detached units were 73% sold, resulting in the combined take-up rate of 50% across the entire Elmina Green development. On the commercial front, it said 80% of its new commercial units at 3 Avenue were bought within a week of their launch on 9 June. (Source: The Edge Financial Daily)

Vertice: In talks to venture into smart hotels with Smuzcity. Vertice is contemplating to venture into the smart hotel business, which will be "unmanned" and "cashless", via a strategic partnership with a local company Smuzcity Bhd. Vertice's wholly-owned unit Vertice Construction Sdn Bhd inked a memorandum of understanding (MoU) with Smuzcity to negotiate on forming the strategic alliance. Under the deal, the parties want "to collaborate for opportunities for qualified real properties to be considered for a structured smart hotel chain business," Vertice said. Via the MoU, Vertice will provide its knowledge and experience in the construction industry to contribute towards works for the design, construction and renovation for the chain of hotels. (Source: The Edge Financial Daily)

Wah Seong: To distribute Ammann's construction products. Wah Seong said its 60%-owned indirect subsidiary WDG Resources Sdn Bhd has entered into a distributorship agreement with Switzerland-based Ammann BauAusrűstung AG's to be an exclusive dealer for the sales and services of its construction products, including Pavers, Heavy Compaction and Light Compaction, within West Malaysia. The agreement would be effective for an indefinite period unless otherwise terminated by either of the parties by giving three months' written notice, and upon the terms and conditions stipulated in the agreement. (Source: The Edge Financial Daily)

ECONOMICS

Trade: January-May trade higher by 4.2% yoy. Malaysia’s trade from January to May 2018 rose to RM753.46b, up 4.2% yoy. The Malaysia External Trade Development Corp (Matrade) said exports rose 6.9% yoy to RM403.99b while imports grew 1.3% yoy to RM349.48b. The trade surplus also surged 64.9% yoy to RM54.51b. In May 18, the country’s trade grew 1.8% yoy to RM156.1b as trade with China, Taiwan, Hong Kong, South Korea, the European Union, Japan and Saudi Arabia expanded. Exports of manufactured goods expanded 8.8% yoy to RM335.71b, mainly led by higher exports of electrical and electronics products, manufactures of metal, chemicals and chemical products, transport equipment as well as optical and scientific equipment. (Source: The Star)

Source: UOB Kay Hian Research - 6 Jul 2018