Here's what we have for the week

Significant Event

  • Personal financial marketplace, MoneySmart will be undertaking a reverse takeover by using Asia-Pacific Strategic Investments Limited as a shell via an SGD 220 million transaction.
  • Real estate developer, Paramount Corp Bhd is venturing into the e-commerce space via investing RM 10 million in Commerce.Asia.
  • Cahya Mata Sarawak Bhd, the company owned by the King of Sarawak's Rainforest, is venturing into the energy sector via the acquisition of Scomi Energy Services Bhd’s oilfield operations for RM21 million.


Real Estate Industry
 

  • Elsoft Research Berhad, a company involved in test and burn-in systems had disposed of a property located in Penang Island for RM 38 million.
  • Sapura Mines, a 260,000 sqft office building located in Seri Kembangan is up for sale. You can check out the property details here.
  • ARA US Hospitality Trust is disposing of Hyatt Place Chicago Itasca for USD 7.75 million.
  • Ho Bee Land, who bought “The Scalpel” in London a few weeks ago, is disposing of its office asset in Munich, Germany.


Users can get access all the major transactions of offices, lands, and factories in Malaysia via this tool.

Infrastructure/Logistics

  • A RM 62 million contract had been awarded by Pengurusan Aset Air Bhd (PAAB) to Ranhill Utilities for the replacement of old pipes and related works in Kota Bharu Timur, Machang, Tanah Merah, and Kuala Krai in Kelantan.
  • Pengurusan Aset Air Bhd (PAAB) has allocated about RM471mil to construct 10 water treatment plants (LRA) in Kelantan.
  • Malaysia 5G infrastructure will adopt a single wholesale model. Up to a 70% stake in Digital Nasional Bhd (DNB), the government-owned entity to deploy the 5G network, will be offered to mobile network operators (MNOs) such as Maxis, Digi, Celcom, and U Mobile. (Read Full Story)


Cash Call/ Debt restructuring

  • KL Kepong, a plantation giant had Issued RM2 billion worth of Islamic bonds or Sukuk through two tranches under its Islamic Medium-Term Notes (IMTN) program.
  • AirAsia X Bhd had completed its debt restructuring and will write RM33 billion back to profits in the next quarter. Under the airline's restructuring proposal, it would pay just 0.5% of the debt owed and end its existing contracts.


Company Expansion Plan/ Capex Plan

  • Johor-based logistic player, Xin Hwa Holdings Bhd had Invested approximately RM100 million to establish an e-fulfillment center in Shah Alam.
  • Kedah-based building material company had emerged as the single largest shareholder of Johor-based building materials manufacturer Ajiya Bhd with a 24.68% equity interest via acquiring the stake for RM104.4 million from Ajiya’s major shareholder and Avia Kapital.



Users can filter the companies' activities via industry or nature of activities via using our tool for Malaysia companies and Singapore companies via the link.

Daily Insights

  • The Russia Ukraine war had brought energy prices to a new high. Energy-intensive industries should be part of our portfolio in the next quarter. (Read Full Story)
  • The changing landscape of the logistics industry and e-commerce industry. (Read Full Story)
  • The cornerstone of US Dollar hegemony is starting to shake as Saudi Arabia suggests accepting RMB in the oil trade. (Read Full Story)
  • Supply disruption in fertilizer is going to affect the world agriculture production level. (Read Full Story)
  • Malaysia palm oil producers are facing no competitors at the global level as Indonesia imposed an export levy on palm oil. (Read Full Story)


News we are reading

  • Argentina, which accounts for 41% of global soy meal exports and 48% of world soy oil exports has halted the registration of export sales of soy oil and meal. (Reuters)
  • Accenture is expanding its presence in Southeast Asia with the plans to hire more than 2,000 IT professionals for its new Advanced Technology Centre in Malaysia. (NST)
  • Saudi Arabia Considers Accepting Yuan Instead of Dollars for Chinese Oil Sales. (WSJ)
  • Singapore introduces taxes on NFT trading. (Business Today)
  • Australia has imposed an immediate ban on exports of alumina, aluminum ores, and bauxite to Russia. Russia relies on Australia for nearly 20 percent of its alumina need. (Reuters)


If you are an investor, identifying what’s happening in the industry will give you a long-term view of the industry and ignore the noises. We had built a tool to help you to focus on the trends that are shaping the landscape much more easily.
Access it here.

Trades we are monitoring

  • Short unprofitable US tech stocks


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What we are thinking

BN had a landslide victory in the Johor state election. If we are right, the national election should arrive in a very short period of time. If BN won the national election with a huge margin in this coming election, investors could expect huge contract flow awarded to industries that are involved in providing waterworks (Irrigation, flood mitigation, pipe replacement) and construction companies that could participate in mega infrastructures such as highway and MRT 3.

On Friday, Sime Darby Property Berhad emerges as the top volume counter, could it be the start of the Malaysia property real estate industry upcycle? Time will tell. 

In case you are not convinced with the prospect of Kuala Lumpur, a picture is worth a thousand words.