Corporate results: Cagamas, MIDF, KKB Engineering, Aeon Credit Service, QL Resources and Pharmaniaga
Cagamas announces RM1.4b in combined issuance
Cagamas Bhd, the national mortgage corporation of Malaysia, has issued a combined issuance of RM1.4 billion bonds and sukuk which takes its annual issuance to RM15.8 billion, the highest in the past decade. The combined issuance comprise RM800 million conventional medium term notes, RM400 million Islamic medium term notes , RM100 million conventional commercial papers and RM100 million Islamic commercial papers, the company noted in a release yesterday. “Despite a reduction in the primary supply of local currency corporate bonds within the domestic market of more than 10% year-on-year, the overall amount issued by Cagamas also marked an increase of more than RM400 million from the year before,” its CEO Datuk Chung Chee Leong said. The CMTN and IMTNs issued will mature in a year while the CPs and ICPs issued are tenured for six months. The proceeds will be used to finance purchases of mortgage loans and Islamic home financing from the domestic financial system. Chung added despite some concerns of Malaysia’s debt levels, Cagamas’ issuances were well absorbed at competitive levels which testifies to the resilience and strength of the domestic market and investor confidence in the organisation’s  credit profile. – TMR
 
MIDF appoints Dominic Silva as deputy CEO
Malaysian Industrial Development Finance Bhd (MIDF) has appointed Datuk Dominic Silva as deputy CEO of MIDF Amanah Investment Bhd effective Jan 7, 2019. According to a statement released yesterday, MIDF noted Silva who was until recently director of DMY Capital had also served as the Head of Investments at Khazanah Nasional Bhd. He has spent over 10 years at ABN Amro Bank (later known as Royal Bank of Scotland) and served on the boards of Astro Holdings Sdn Bhd (Malaysia), various banks and companies in the CIMB Group and the Infrastructure Development Finance Co Ltd of India. 
 
KKB Engineering wins RM47m contract
KKB Engineering Bhd’s (KKB) subsidiary, Harum Bidang Sdn Bhd, has received a supplementary contract from CMS Infra Trading Sdn Bhd (CMSIT) worth RM46.7 million for the supply and delivery of concrete lined mild steel pipes and mechanical couplings to the JKR Central Unallocated Stores at Tanah Puteh, Kuching in Sarawak. The supply and demand will be based on issuance of purchase orders by CMSIT on a required basis, KKB noted in an exchange filing yesterday. The contract expiry date is Aug 31, 2020.
 
Aeon Credit Service 3Q profit up 23.52%
Aeon Credit Service (M) Bhd’s net profit for the third quarter ended Nov 30, 2018 (3QFY19) improved by 23.52% year-on-year (YoY) to RM87.14 million due to higher revenue. Bbasic earnings per share amounted to 33.35 sen. Revenue for the quarter improved by 11.57% YoY to RM348.50 million. The financing company noted in an exchange filing yesterday domestic demand will be the key driver for growth moving forward and household spending is likely to be supported by growth in income and employment. Aeon expects to maintain its financial performance for the financial year ending Feb 28, 2019, based on the scheduled implementation of its business plan.
 
QL Resources’ acquires several plots of land worth RM48.70m
QL Resources Bhd’s wholly-owned subsidiaries have entered into sale and purchase agreements with some companies to acquire several plots of land worth RM48.70 million. In an exchange filing yesterday, the company noted QL Agroventures Sdn Bhd  acquired a piece of land held with a single storey house erected thereon in Papar, Sabah from MB Agriculture (Sabah) Sdn Bhd for RM2.10 million. QL Kitchen Sdn Bhd has purchased a piece of freehold vacant industrial land in Shah Alam, Selangor, from Sizeable Properties Sdn Bhd for RM19 million. KS Galah Sdn Bhd, meanwhile, bought one third undivided share in a piece of leasehold vacant industrial land in Klang, Selangor, from Inspirasi Delima Sdn Bhd for RM23 million. Lastly, QL Foods Sdn Bhd has acquired two pieces of freehold agriculture land in Bagan Datuk, Perak, from Credential Development Sdn Bhd for RM4.6 million. QL Resources noted the proposed acquisitions will be funded with internal funds and/or borrowings and are expected to be completed within six months from the date of the SPAs.
 
Lodin Wok vacates Pharmaniaga position
Tan Sri Che Lodin Wok Kamaruddin has resigned from Pharmaniaga Bhd’s nomination and remuneration committees effective Dec 31, 2018. In an exchange filing yesterday, the pharmaceutical supplier group noted Lodin’s early resignation from the board comes with termination of his service agreement with Boustead Holdings Bhd as MD with effect from Dec 31, 2018. Boustead is the holding company of Pharmaniaga. Pharmaniaga added the board will identify a suitable candidate to fill the vacancy in due course. Meanwhile, non-independent and non-executive director Ebinesan @ Daniel Gnanakkan has also left the company due to personal commitment from Dec 31, 2018. The company has appointed Fahmy Ismail as the new non-independent and non-executive director effective Jan 1, 2019.