NEWSBRIEF

FGV Denies Restructuring or Takeover

Felda Global Ventures Holdings Bhd (FGV) has denied talk that it will be announcing a large scale restructuring, or be taken over before the 14th general election on May 9. (The Edge)

BAssets’ Latest Move Renews Speculation About 7-Eleven Malaysia Privatisation

Berjaya Assets Bhd (BAssets), via its subsidiary, upped its stake in 7-Eleven Malaysia Holdings Bhd to 5.2%, stoking further speculation about a potential privatisation of the 24-hour convenience store chain operator. (The Edge)

Berjaya Assets Emerges as Substantial Shareholder in 7-Eleven.

Berjaya Assets Bhd has emerged as a substantial shareholder in 7-Eleven Malaysia Holdings Bhd following a recent spate of purchases in the open market and direct deals. The company, in a filing with Bursa Malaysia today, said it had spent RM17.8m acquiring additional 11.8m 7-Eleven shares between Jan 23 and May 2. (StarBiz)

Fourth 1MDB Auditor Starts Audits on 2015- 2017 Accounts

1Malaysia Development Bhd’s (1MDB) fourth auditor, Parker Randall UK LLP, has been given access by the police to the state entity’s accounts dating back to 2015, 2016 and 2017, said its chief executive officer Arul Kanda Kandasamy. (The Edge)

AirAsia X to File Defence Against MAHB’s RM35m Claim

AirAsia X Bhd (AAX) said yesterday it will be filing a defence to Malaysia Airports Holdings Bhd’s (MAHB) claim that the airline owes it RM34.9m in outstanding airport charges, rent and late payment charges. (The Edge)

Puncak Niaga Bags RM490m Job to Build Sewage Plant in Kuantan

Puncak Niaga Holdings Bhd has bagged a RM489.9m contract to undertake subcontract works to build a new regional sewage treatment plant, among others, in Kuantan, Pahang. (The Edge)

Tri-Mode’s IPO Public Tranche Oversubscribed by 3.74 Times

Tri-Mode System (M) Bhd, en route to be listed on the ACE Market of Bursa Malaysia on May 11, saw the public portion of its initial public offering (IPO) oversubscribed by 3.74 times. (The Edge)

Sime Darby Motors Aims to Produce 50,000 Vehicles in Kulim by 2020

Sime Darby Bhd’s automotive arm Sime Darby Motors is targeting to produce more than 50,000 vehicles, as well as engine parts and components for the vehicles by 2020 at its manufacturing facility here. (The Edge)

New Sime Facility to Produce 10,000 BMW Engines a Year

The new RM132m Sime Darby Auto Engineering (SDAE) facility here will produce 10,000 BMW engines per annum to cater to the growing demand for locally assembled vehicles with innovative capabilities in engine assembly technology. (StarBiz)

T7 Makes Cash Call to Fund New Metal Treatment Plant

T7 Global Bhd will undertake a private placement to raise a further RM39.7m to fund the cost of setting up a RM30m specialised metal treatment plant in Serendah, Selangor. (The Edge)

F&N 2Q Net Profit Down 13.6%; Pays 27 Sen Dividend

Fraser & Neave Holdings Bhd’s (F&N) net profit fell 13.6% to RM92.6m in the 2Q18 from RM107.1m a year ago, impacted by higher input costs, especially for dairy products. T he group declared an interim dividend of 27 sen per share amounting to RM99m for FY18, payable on June 7. (The Edge)

DGB Plans 1-for-2 Warrants Bonus Issue

DGB Asia Bhd has proposed to undertake a one-for-two bonus issue of warrants to reward shareholders and to provide the group with additional working capital when the warrants are exercised in the future. DGB said the proposed exercise entails up to 474.4m DGB warrants (Warrants B). (The Edge)

Gamuda Land Bags FIABCI Gold Award for First Vietnam Township

Gamuda Land’s Gamuda City – its first town development in Hanoi, Vietnam – was awarded the World Gold Award for Environmental (Rehabilitation/Conservation) at the FIABCI World Prix d’ Excellence Award 2018 held at the Jumeirah Emirates Towers in Dubai last night. (The Edge)

Mara Sues Med-Bumikar

Majlis Amanah Rakyat (Mara), the single largest shareholder in MedBumikar Mara Sdn Bhd, has gone to court in its battle to take control of the privately-held entity that controls MBM Resources Bhd. Mara filed an originating summons against six directors of Med-Bumikar and the company to challenge the appointment of two new directors. (StarBiz)

Priceworth: Sabah’s FMU5 Valued at RM433.8m

Priceworth International Bhd says Forest Management Unit 5 (FMU5) has been valued at RM433.8m, significantly more than the RM260m price it is paying for its proposed acquisition of the FMU 5 timber concession comprising a net concession are of 88.9ha. (StarBiz)

Maybank Targets RM50bn Credit Card Billing

Malayan Banking Bhd (Maybank) is eyeing a 16%-18% increase in total spending by customers using its credit cards to RM50bn this year. Head of community financial services Datuk Hamirullah Boorhan said the bank’s credit card billing would continue to grow year after year, with last year’s billing recording an increase of 12%. (StarBiz)

MAHB Prepares for Runway 3 Closure

Malaysia Airports Holdings Bhd (MAHB) is prepared to support the coordination of the air traffic movements during the temporary closure of Kuala Lumpur International Airport’s (KLIA) third runway, Runway 3, next month. (The Malaysian Reserve)

ECONOMICS

US

White House economist sees a fairly positive start to closed-door China talks, but said the real test will be China’s ability to deliver on its promises of economic change. (Bloomberg)

U.S. trade gap narrowed to US$49bn in March from US$57.7bn in prior month (est: US$50bn). (Bloomberg)

Initial claims for state unemployment benefits rose 2,000 to a seasonally adjusted 211,000 for the week ended April 28, better than estimate of 225,000 (Reuters).

US productivity rose 0.7% annualized rate in first quarter of 2018, higher than 0.3% in the previous quarter (Bloomberg)

Eurozone

EU joins IMF warning that trade disputes such as tariffs and retaliatory measures could derail economic welfare and activity. (Bloomberg)

The Eurozone Producer Price Index, or PPI rose to 2.1% in May from 1.6% in April. (Bloomberg)

The Eurozone Consumer Price Index, or CPI moderated to 1.2% in May from 1.3% in April. (Bloomberg)

UK

IHS Markit said its Purchasing Managers Index saw only a modest rebound from the 20-month low posted in March, with the reading of 52.8 the second weakest since September 2016. (Bloomberg)

Source: Hong Leong Investment Bank Research - 4 May 2018