Guocoland down 4% to 6-month low on 3Q losses

KUALA LUMPUR (April 19) : Guocoland (M) Bhd shares fell 4% to a six-month low after the property developer announced net losses in the third quarter due to lower revenue besides higher operating and finance expenses.

The stock declined 3.5 sen to 80 sen as at 2.41pm, the lowest since October 2011.

Guocoland told the exchange on Wednesday that it posted a net loss of RM2.37 million in the quarter to March 31, 2012 against a net loss of RM3.65 million a year earlier. Revenue fell 2% to RM23.44 million from RM23.96 million.

Its net assets per share stood at RM1.13 as at March 31 this year.



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GuocoLand buys Cheras land for RM108m

KUALA LUMPUR: GuocoLand (M) Bhd is buying nine land parcels measuring 18.9ha in Cheras for RM107.87 million or RM53 per square foot (psf) to be satisfied via cash.

In a filing with Bursa Malaysia yesterday, the property developer said its wholly-owned subsidiary Ace Acres Sdn Bhd (AASB) had entered into a conditional sale and purchase agreement (SPA) with Bonds Corp Sdn Bhd (BCSB) to purchase the nine freehold land parcels.

The proposed development of the said land will comprise a mixture of bungalows, semi-detached houses, superlink houses, condominiums and shophouses, it said.

However, it did not provide any further information on the project as the development proposal is currently at the initial planning stage.

GuocoLand said the land is currently occupied by squatters. The developer added that the purchase would be funded entirely by borrowings and its gearing is expected to increase to 1.34 times from 1.13 times as at June 30.

In addition to the SPA, AASB and BCSB also signed an agreement where AASB would get the first priority within the next 12 months to acquire an adjacent 2ha plot from BCSB for RM53 psf.

The 18.9ha site is located 10km south of the city centre, and is sandwiched between Alam Damai and Bandar Damai Perdana townships.

The proposed acquisition is subject to approval by the Prime Minister Department’s Economic Planning Unit.

GuocoLand closed unchanged at 83.5 sen with 121,800 shares traded.


This article appeared in The Edge Financial Daily, December 7, 2011.



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GuocoLand rises on RM108m land buy plan

GuocoLand Malaysia Bhd, a property developer, rose 1.2 per cent, set for its highest close since Dec 1. The company plans to buy land for RM107.9 million, according to an exchange filing. -- Bloomberg



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Stocks to watch: Guocoland, CBIP, Ekovest, MRCB, Wijaya Baru

KUALA LUMPUR (Dec 7): Investor sentiment at the local stock market is likely to remain cautious on Wednesday in line with the overall tepid mood at key regional markets a day earlier after Standard & Poor's warned it might downgrade top-rated Germany and other euro zone countries.

S&P had placed the ratings of 15 euro zone countries on credit watch negative, including the region's two biggest economies Germany and France, and said "systemic stresses" are building as credit conditions tighten in the 17-nation region.

However, analysts say they are cautiously optimistic that European policymakers would make some progress in finding a solution to the eurozone debt crisis at the summit later this week, and as such the decline at the stock market was not expected to be severe, with the exception of further shocks like credit rating downgrades.

On Bursa Malaysia, among the stocks that could be in focus are GUOCOLAND (MALAYSIA) BHD [], CB INDUSTRIAL PRODUCT HOLDING [] Bhd (CBIP), EKOVEST BHD [], MALAYSIAN RESOURCES CORPORATION BHD and Wijaya Baru Global Berhad.

Guocoland’sunit is acquiring 46.72 acres of land worth RM107.8 million in the Cheras locality as part of its land bank expansion plan for future developments.

Its unit Ace Acres Sdn Bhd had entered into a sales and purchase agreement with Bond Corporation Sdn Bhd to acquire nine parcels of land located in Cheras and Mukim Petaling.

Meanwhile, CBIP secured a RM17.88 million contract from Felda Palm Industries Sdn Bhd for the conversion of the Trolak palm oil mill in Sungkai, Perak. Its unit Modipalm Engineering Sdn Bhd has accepted the letter of award to build and install the mill.

Ekovest - MRCB JV Sdn Bhd (EMJV) was picked the be the project delivery partner (PDP) by the government for to assist in the implementation and delivery of the River of Life (ROL) project.

EMJV is a joint venture between Ekovest Bhd and Malaysian Resources Corporation Bhd, where Ekovest will subscribe to 60% of the issued and paid up capital of the Company, while MRCB will subscribe to the remaining 40%. EMJV said it would earn a maximum fee of RM22 million or 1% of the total projected works to be delivered over three years.

It will also receive monetary incentives for the work done and the contract is expected to contribute positively to its future earnings.

Meanwhile, Wijaya Baru received its shareholders’ nod to acquire US$80 million in timber and palm oil concessions from Wealth Gate Pte Ltd and Suffolk Pte Ltd.

Wijaya will acquire 100% of Suffolk and Wealth Gate's shares, giving Wijaya ownership of two 40,000 ha plots of land in Irianjaya which can be converted into oil palm PLANTATION []s.



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Guocoland buys 46.7 acres in Cheras for RM107m

KUALA LUMPUR (Dec 6): GUOCOLAND (MALAYSIA) BHD []’s unit is acquiring 46.72 acres of land for RM107.8 million around Cheras to expand its land bank for future development which includes residential PROPERTIES [].

Guocoland said on Tuesday that the unit Ace Acres Sdn Bhd had entered into a sales and purchase agreement with Bond Corporation Sdn Bhd to acquire nine parcels of land in Cheras and Mukim Petaling.

It said the land was about 10km south of Kuala Lumpur city centre and located between two prominent townships -- Alam Damai and Bandar Damai Perdana -- in the Cheras locality. Other neighbourhoods are Taman Connaught, The Peak Cheras and Taman Len Sen, it said.

Guocoland said that the proposal was to build bungalows, semi-detached houses, superlink houses, condominiums and shophouses.

The purchase of the land is RM53 psf and will be financed from borrowings, it said.

Guocoland said the acquisition was to increase its land banks in strategic locations for future developments and it expected the projects to boost the group's earnings.



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GuocoLand to spend RM30m on acquisitions

KUALA LUMPUR: GuocoLand Malaysia Bhd (GLM) is planning to acquire the entire equity interest in PJ City Development Sdn Bhd and PJ Corporate Park Sdn Bhd for RM30.04 million.

“The proposed acquisitions are not expected to have any material effect on the earnings of the GLM group for the financial year ending June 30, 2012.

However, the proposed acquisitions are expected to contribute positively to the earnings of the GLM group in future years,” GLM told Bursa Malaysia yesterday.

GLM also said it would spend RM29.79 million for the proposed acquisition of the entire equity interest of five million shares in PJ City from GuoLine Asset Sdn Bhd. GuoLine initially spent RM5 million on its investment in PJ City.

The group will spend RM258,000 to acquire the entire equity interest of 20 million shares in PJ Corporate from MPI Holdings Sdn Bhd (MPIH). The original cost of investment in PJ Corp by MPIH was RM265,000.

PJ City, which deals primarily in property development and property investment, recorded a net profit of RM4.75 million for FY11 ended June 30, and its net assets was RM38.62 million. PJ Corp posted a net loss in FY11 ended June 30 of RM9,648 while its net assets was at RM249,303.

GLM’s major shareholder is Hong Leong Co (M) Bhd (HLB) through GLL (M) Pte Ltd. HLB is also a major shareholder of GuoLine and MPIH. Tan Sri Quek Leng Chan, a director of GLM and a name well associated with HLB, is deemed a major shareholder of GLM, GuoLine and MPIH.


This article appeared in The Edge Financial Daily, November 9, 2011.

Stocks to watch: Hartalega, Sanichi, Cypark, GuocoLand

KUALA LUMPUR (Nov 8): Stocks which could see trading interest on Wednesday, Oct 9 include Harlatega Holdings Bhd, SANICHI TECHNOLOGY [] BHD [], CYPARK RESOURCES BHD [] and GUOCOLAND (MALAYSIA) BHD [] (GLM).

Harlatega reported its earnings fell 2% to RM46.13 million in the second quarter ended Sept 30, 2011 from RM47.01 million a year ago as it was impacted by high raw material prices.

However, it is cautious about the outlook following the sharp increase in nitrile material price and recent high volatility of US dollar.

Its revenue rose 24.5% to RM229.54 million from RM184.31 million. At the profit before tax level, it dipped 2.4% to RM59.55 million from RM61.02 million. Earnings per share were 12.68 sen compared with 12.96 sen. It declared an interim dividend of 6.0 sen per share.

Sanichi resumes trading on Wednesday after it announced that German-based Projektarbelt Technische Beratung Venretung International (Protev) has completed its first phase of due diligence of the company and the second phase in early 2012.

However, as there were no significant updates, interest could decline in the company. The company was earlier queried by Bursa Malaysia Securities over the unusual market activity in the trading of its shares.

In Cypark, executive vice chairman Siow Kwang Khee disposed of 3.97 million shares on Nov 3.

Following the disposal of the shares, his direct stake was reduced to 10.50 million shares or 7.24%.

GuocoLand has proposed to acquire PJ City Development Sdn Bhd for a cash consideration of RM29.78 million from GuoLine Asset Sdn Bhd.

PJ City’s core business is property development and property investment activities. Based on its audited financial statements for FY ended June 30, 2011, PJ City recorded profit after tax of RM4.75 million while its net assets were RM38.61 million.

PJ City also owns two parcels of land in Section 32 in Petaling, Selangor. GLM said after the completion of the proposed acquisition, it intends to develop commercial office buildings and corporate factories on the land.

COMPLETE LOGISTIC SERVICES BHD [] (CLSB) has proposed to acquire the remaining 40% stake in its subsidiary Guper Integrated Logistics Sdn Bhd for RM13.60 million cash.

Guocoland in RM30m acquisition deals

KUALA LUMPUR (Nov 8): GUOCOLAND (MALAYSIA) BHD [] (GLM) has proposed to acquire PJ City Development Sdn Bhd for a cash consideration of RM29.78 million.

It said on Tuesday, it had the acquisition involved 5.00 million shares of PJ City from GuoLine Asset Sdn Bhd.

PJ City’s core business is property development and property investment activities. Based on its audited financial statements for FY ended June 30, 2011, PJ City recorded profit after tax of RM4.75 million while its net assets were RM38.61 million.

PJ City also owns two parcels of land in Section 32 in Petaling, Selangor. GLM said after the completion of the proposed acquisition, it intends to develop commercial office buildings and corporate factories on the land.

GLM also proposed to acquire PJ Corporate Park Sdn Bhd from MPI Holdings Sdn Bhd for a cash consideration of RM258,000