KUCHING: Pansar Bhd, the top performer among Sarawak-based listed companies on Bursa Malaysia in 2018,saw its share price doubled.
The trading and engineering firm closed the year at 80 sen,boosting its market capitalisation to RM246.4 million from 2017’s close of 40 sen.
Low profile Pansar, which sprang to life in first quarter and was actively traded for the rest of the year,rallied to the highest level of RM1.29.
The company completed a private placement and rewarded its shareholders with bonus warrants on the basis of one warrant for two existing shares during the year under review.
As part of the strategy to increase its market share in the construction and palm oil industries, the company recently sealed a new distributorship for the sale and distribution of construction equipment,such as backhoe loaders, heavy excavators,compact excavators,telehandlers and associated spare parts.
Pansar took over the listing status of PWE Industries Bhd in a reverse takeover in 2010,and its shares had remained lacklusture since then.
In financial year ended March 13,2018,Pansar recorded group net profit of RM8.7 million on revenue of RM368.5 million.
Shin Yang Shipping Corp Bhd was the other performer which saw its share price gained 20% to close at 27 sen after rising to a high of 40.5 sen in 2018 from 22.5 sen in 2017.
The Miri-based shipping and shipbuilding and repair company is involved in containerised, liquid and bulk shipping and construction of various types of vessels for the local and export markets.
Shin Yang has a fleet of 268 vessels plying domestic and international routes.
Most listed companies from Sarawak did not do well in 2018,which witnessed a volatile market,as their share prices plummeted,some to their lowest levels.
The FBM KLCI lost 106.23 points or 5.91% to 1,690.58 points from 1,796.81 points in 2017.
The dismal performance of the local equity was attributed to several key factors,such as the shocking defeat of the Barisan Nasional (BN) government by Pakatan Harapan,volatile oil prices and rising US interest rates that prompted the outflow of foreign funds from Malaysia.
Two politically-linked companies – Naim Holdings Bhd and Cahya Mata Sarawak Bhd (CMS) – apparently fell victims as the BN government was toppled.
Naim finished 2018 at 44.5 sen,down by 98.5sen from RM1.43 at end-2017.This wiped out the stock’s market capitalisation by some RM246 million year-on-year.
Investors sold the shares of the Sarawak’s leading property developer after the company reported unexpected losses of RM147 million in financial year ended Dec 31,2017 (FY-2017).
The losses were mainly from the Klang Valley Mass Rapid Transit (MRT) project and Naim’s oil and gas (O&G) associate Dayang Enterprise Holdings Bhd.
Subsequently,Naim has come up with a five-year revival plan (2018-2022) with proactive measures aimed to bring the company back to profitability.
Naim,which has a landbank of some 1,800 acres in Kuching,Miri and Bintulu,has announced a cash call via a proposed rights issue to raise money to fund its three major property developments here and in Miri and Bintulu as well as to reduce its bank borrowings.
The rights issue will raise a minimium of RM100 million or maximium of RM159.9 million.Jan 11 is the last day for entitled shareholders to pay for the rights shares.
Conglomerate CMS shares were on free fall and had hit limit down (by 30%) in knee-jerk reaction after GE14.The slide stopped at RM1.74 before aggressive buying from investors led to a speedy rebound to RM3.50 .
For the year, CMS finished RM2.69,which represented a loss of RM1.21 or 31% from 2017’s close of RM3.90.The cement manufacturer posted group net profit of RM249 million in FY-2017.
Sarawak Cable Bhd saw its share price fell to 32 sen on 2018’s last day trading,losing 39 sen from 71 sen in 2017 or down by 55%.
The power and telecommunication cables manufacturer,which has plants in Sarawak and Peninsula Malaysia,incurred group net loss of some RM36 million in FY-2017 against net profit of RM20 million in FY-2016.
Its wholly-owned construction arm -Trenergy Infrastructure Sdn Bhd – accumulated total pre-tax loss of RM48 million as it strived to complete the delayed projects on hand amidst exceeded budgets and prolongation cost incurred from meeting the additional works and requirements from project owners.
The group’s non-core business segment,which comprises helicopter chartering business, suffered pre-tax loss of about RM14.7 million in FY-2017.
Its 10MW hydro dam project in Sumatra,Indonesia has been further delayed.
Sarawak Cable is laddened with huge debts with total loans and borrowings of more than RM600 million.
In Sibu,the three listed entities under the diversified Rimbunan Hijau Group also witnessed drastic drop in their share prices.Timber outfit Jaya Tiasa Holdings Bhd shares lost a massive 61 sen to close 2018 at 47 sen or down by 55% from 2017’s close of RM1.08.In financial year ended June 30,2018,the group suffered net loss of RM25.6
million.
Subur Tiasa Holdings Bhd did no better as the company’s poor financial results sent its share price down to 47.5 sen or a loss of 76.5 sen from 2017’s close of RM1.24 or by 62%.
In financial year ended July 31,2018,Subur Tiasa posted group net loss of RM19.3 million.
Plantation company Rimbunan Sawit Bhd,which recorded group net loss of RM151.6 million in FY-2017 suffered a similar fate as its share price ended 15.5 sen from 2017’s close of 38.5 sen or down by 23 sen or 60% year-on-year.
WTK Holdings Bhd could not also shed itself from the market volatility.Its share price was pulled down to 43 sen from 71 sen in 2017 or by 40% as investors were spooked by its whopping losses of RM189 million in FY-2017.
The losses were due mainly to the timber company’s bad investment in an O&G company in late 2014 to provide accommodation workboats to support offshore oil and gas activities.
The losses were attributed to impairment loss for the writedown on receivables in the said O&G company which was wounded up in early-2018.
Sibu-based shipbuilder TAS Offshore Bhd’s business was also hit by the downturn of the
O&G industry that affected the sales of offshore supply vessels.
TAS share price fell to 18 sen,a far cry from its glory day of some RM1.50 in 2014.
2018 was a turbulent year Zecon Bhd would probably like to forget.In early August,the Public Works Department terminated Zecon as the turnkey contractor for the RM495mil 300-bed Petra Jaya hospital project after the company failed to meet the extended deadline to complete the project.
The project which was supposed to be ready in late 2016 was only 34.54% completed as June-2018,according to the Health Ministry.
The termination notice came as a severe blow to Zecon as this had led to the company defaulting in the payment of about RM104 million to syndicated lenders on financial facilities for the hospital project. Investors punished Zecon,sending its share price to an insignificant 16.5sen from 2017’s close of 68.5 sen.
The construction firm has proposed several fund raising exercises,including assets monetisation,to repay the money due to the syndicated lenders.
The weak steel market did not augur well for YKGI Holdings Bhd,whose principal activities are in the manufacture and sales of galvanised and coated-steel products,hot and cold rolled coils.
Its share price closed 10.5 sen from 16.5 sen in 2017.
YKGI,which has manufacturing facilities here and in Selangor,proposed last month to undertake a capital reduction exercise with the proceeds derived to be used to pare down its accumulated losses.
The proposed exercise is expected to generate credit of RM137.9 million,which will go to reduce the company’s accumulated losses of RM30.48 million as at Sept 30,2018 as well as allowance for impairment amounting to RM107.4 million.
Other Sarawak-based companies which saw decline in their share prices in 2018 include Sarawak Oil Palms Bhd RM2.10 (RM3.90 in 2017),Ta Ann Holdings Bhd RM2.70 (RM3.66),Hock Seng Lee Bhd RM1.35 (RM1.43),Dayang Enterprise Holding Bhd 54 sen (68 sen), KKB Engineering Bhd 87.5 sen (95 sen),Kim Hin Industry Bhd RM1.24 (RM1.42),Sarawak Plantation Bhd RM1.70 (RM1.80),Ibraco Bhd 59.5 sen (81.5 sen) and Sarawak Consolidated Industry Bhd 48 sen (52 sen). -ALVIN TANG
