Serba Dinamik, AAX, MAHB, PPB, MUI, Lotte Chemical, Coastal Contracts, CAP and Vortex

KUALA LUMPUR (March 3): Based on corporate announcements and news flow on Thursday, companies in focus on Friday (March 4) may include: Serba Dinamik Holdings Bhd, AirAsia X Bhd, Malaysia Airports Holdings Bhd, PPB Group Bhd, Malayan United Industries Bhd, Lotte Chemical Titan Holding Bhd, Coastal Contracts Bhd, China Automobile Parts Holdings Ltd and Vortex Consolidated Bhd.

The High Court has ruled that no more creditors are allowed to intervene in four Serba Dinamik Holdings Bhd-related companies’ interim judicial management court hearing because the matter regarding the appointment of a judicial manager or interim judicial manager would have to be decided quickly.

The Court of Appeal has dismissed three striking-out appeals by AirAsia Bhd and AirAsia X Bhd (AAX) against the original suit filed by Malaysia Airports (Sepang) Sdn Bhd (MASSB), a unit of Malaysia Airports Holdings Bhd (MAHB), relating to outstanding passenger service charges (PSCs). The court also ruled that the High Court did not err in granting MASSB a summary judgment for a total of RM41.55 million against AirAsia and AAX, comprising the outstanding PSCs, late payment charges and costs.

PPB Group Bhd sees challenges on many fronts in 2022, which will affect several of the group’s business segments. Its managing director Lim Soon Huat said the ongoing tension in Ukraine will contribute to more uncertainty to the global commodities market. Lim said these disruptions would adversely impact the group’s grains and agribusiness segment given the rise in food commodity prices. Raw material prices aside, several of PPB’s businesses are also affected by the labour shortage in Malaysia.

Malayan United Industries Bhd (MUI) has proposed to undertake an RM3.07 billion capital reduction exercise to offset RM3.06 billion in accumulated losses as at Dec 31, 2021.  MUI said the capital reduction will enable the group to eliminate its accumulated losses to reflect more accurately its financial position. It will also enhance the group’s ability to declare and pay dividends out of its retained earnings in the future when the company returns to profitability.

Lotte Chemical Titan Holding Bhd (LCT) has declared a final dividend of 21 sen per share for the year ended Dec 31, 2021 (FY21). The group said the dividend of 21 sen per share will be paid on April 13, with an ex-date of March 21. Coupled with LCT’s prior special dividend of 18 sen paid in November 2021, the total dividend for FY21 is 39 sen per share — a cumulative payout of RM888.2 million — compared with 3.27 sen  for FY20.

Coastal Contracts Bhd is selling one offshore support vessel and two other vessels for an aggregate value of RM109.7 million. The integrated marine oil and gas service provider said the transactions are expected to contribute positively to the earnings of the group for the financial year ending June 30, 2022.

Automobile parts manufacturer China Automobile Parts Holdings Ltd (CAP) has received yet another reprieve by Bursa Securities from being delisted, after it managed to issue its annual report for the financial year ended June 30, 2021 (FY21) for public release. As a result, trading in the company’s shares will resume on Friday (March 4). Trading of CAP shares has been suspended since June 8, 2017, after it first failed to submit its quarterly report for the financial period ended March 31, 2017 within the stipulated time frame. Since then, it has received several reprieves from being delisted.

Vortex Consolidated Bhd said it plans to acquire a Johor-based company for RM21.03 million to diversify into the oil palm plantation business. The
company, Teras Gemumi Sdn Bhd, through its subsidiary Gemumi Multi Plantations Sdn Bhd (GMPSB), has 1,285 acres of oil palm-planted land in Kota Tinggi. The land was awarded by the Johor government to Lembaga Kemajuan Johor Tenggara (Kejora), which then sub-leased it to GMPSB.