Stocks to watch today

Velesto to focus on sunken Naga 7 rig recovery efforts 

Offshore drilling company Velesto Energy Bhd will focus on recovery efforts of its rig, Velesto Naga 7, which submerged off the coast of Sarawak on May 4. In a filing with Bursa Malaysia yesterday, the company said that the operation of Velesto Naga 7 was interrupted. It added the incident happened due to soil rapid penetration while operating for a client on May 3. Drilling activities had not commenced at the site and no well has been drilled. All 101 personnel onboard have been transferred safely to Miri, Sarawak, said the company.– BERNAMA

Sunway to conduct re organisation exercise

Sunway Bhd has said it has entered into a Share Purchase Agreement with Sunway Healthcare Holdings Sdn Bhd (SHH) via its wholly-owned subsidiary Sunway City Sdn Bhd to dispose its entire equity interest in ten different companies.

In a stock exchange filing yesterday, it said the disposal of its equity to SHH will be for a total consideration of RM683 mil to be fully satisfied by the allotment and issuance of 489 mil ordinary shares at an issue price of RM1.3967 per share in the share capital of SHH to SunCity.The group said upon completion, all ten companies will become direct subsidiaries of SHH.

Maybank Aims to Clock ROE of 13%-15% by 2025

Malayan Banking Bhd, Malaysia’s top lender by assets, expects to post a dividend payout ratio of between 40%-60% on a net cash basis by 2025, as part of its profitability targets, Group President and CEO  DAbdul Farid Alias said yesterday.

The Bank aims to keep cost-to-income ratio below 45%, while seeking to boost per share earnings to above 100 sen. Maybank also plans to mobilize 50 billion ringgit in sustainable financing to improve the lives of one million households across Southeast Asia. The lender also aims to achieve carbon-neutral positive emissions by 2030, and net zero carbon emissions by 2050. – Bloomberg 

Ho Wah Genting enters distributorship with Xiamen 

Ho Wah Genting Bhd’s subsidiary HWGB EV Sdn Bhd (HWGB EV) and Xiamen Chief Electric Vehicle Co. (Xiamen Chief) had entered into a distributorship agreement to sell non-passenger electric vehicles produced by Xiamen Chief in Malaysia and Indonesia. In a filing to Bursa Malaysia yesterday the company said following the execution of the distribution agreement, the earlier (MOU) signed between the parties shall be deemed terminated as the terms of the MOU had been fulfilled and the parties have decided not to proceed with manufacturing and assembling of vehicles.

CMS Deputy Group Chairman agrees to Board request to stay on

The Board of Directors of Cahya Mata Sarawak Bhd has passed a resolution requesting Deputy Group Chairman Datuk Seri  Mahmud Abu Bekir Taib to continue his service with the Group and not to take leave of absence as announced on Thursday April 22, 2021. Datuk Seri Mahmud had on April 22 tendered his request for leave of absence in relation to reports lodged with the relevant authorities following whistle-blower allegations. In a filing to the exchange yesterday the company said while the Board is grateful for his gesture of seeking leave of absence, CMS reviewed the situation and resolved that there is no need for him to do so. Mahmud has agreed to the Board’s request and we have informed the authorities accordingly. The Board also wishes to announce that the Board is completely satisfied that the allegations of conflict of interest made against Mahmud and Karl Vink, former CMS chief information officer, in relation to the award of the contract by CMS I-Systems Sdn Bhd, a wholly owned subsidiary of CMS, to Vienna Advantage GmbH are without any basis whatsoever.