KUCHING: Sarawak Cable Bhd (SCB) is teaming up with Hercules Engineering (SEA) Sdn Bhd to revitalise the business of its wholly-owned subsidiary Sarwaja Timur Sdn Bhd.
The two parties have entered into a memorandum of agreement (MOA) for cooperating and joint venturing with each other to revitalise Sarwaja Timur’s business and develop synergy between them and their group of companies.
The move is to bring Sarwaja Timur to the next level of success for the mutual benefit of SCB group, Sawajaya Timur and Hercules group, SCB said in a filing with Bursa Malaysia.
Sarwaja Timur’s principal activities are manufacturing, fabrication, galvanising and sale of steel structures at its plant along Jalan Kampung Sejingkat, off Jalan Bako here.
According to SCB, Sarwaja Timur is in need of funding,management and technical expertise to revitalise its business and Hercules agrees to provide the management and technical exercise to assist Sarwaja Timur in procuring vendor financing for the latter’s business in Malaysia and overseas.
The objectives of the MOA include to define the steps which shall be taken towards the reorganisation of the share capital of Sarwaja Timur, the initial funding requirements for its business and the structure of the joint venture, and the entering into of the definitive agreements in relation to the joint venture within 30 business days of the date of the MOA (April 18, 2022).
Another objective is to set out the distribution of tasks and responsibilities of both parties pending execution of the definitive agreements.
Meanwhile, Ta Ann Holdings Bhd has reported lower production volume of crude palm oil (CPO) and fresh fruit bunches (FFB) but higher output of palm kernel (PK) in first quarter 2022 (Q12022) as compared to Q12021.
In Q12022,Ta Ann group recorded CPO output of 52,353 metric tonnes against 56,235 metric tonnes in Q12021 or down by 3,882 tonnes, according to the company’s monthly production figures filed with Bursa Malaysia. In March 2022,the group produced 18,736 tonnes of CPO (March 2021:20,684 tonnes).
The group’s FFB output declined to 132,367 metric tonnes in Q12022 from 136,709 tonnes in Q12021 or a decline of 4,342 tonnes.
The production volume was 45,505 metric tonnes in March 2022 (2021 March:45,935 tonnes).
However, Ta Ann group registered an increase in PK production volume to 12,202 metric tonnes in Q12022,up from 11,840 metric tonnes in Q12021.
The production volume was 4,414 tonnes in March 2022 (4,405 tonnes).
Ta Ann group recorded a sharp increase in log production to 83,442 cubic meters (cu m) in Q12022 against 56,847 cu m in Q12021 or an increase of 26,575 cu m or nearly 47 per cent.
Ta Ann, like most other oil palm stocks, has greatly benefitted from the robust palm oil prices as reflected by its strong earnings.
For the quarter ended Dec 31, 2021 (Q42021) ,Ta Ann group net profit soared to RM128.2 million from RM6.78 million in Q42020 as revenue jumped to RM611.5 million from RM363.3 million.
The group reported a 63 per cent increase in the average selling price of CPO and 62 per cent hike in the average selling price of FFB while their sales volumes rose by 11 per cent and 21 per cent respectively in Q42021 from Q42020.
The average selling price of plywood products climbed 44 per cent during the same period.
The strong profits brought about a rally in Ta Ann share price which closed at RM5.95 on Monday (April 18) from RM3.47 on Dec 31, 2021.
WTK Holdings Bhd,on the other hand, posted higher production volume of FFB to 20.995 metric tonnes in Q12022 (Q12021:19,357 tonnes) but its CPO output decreased to 3,425 metric tonnes (3,848 tonnes) and PK volume dipped to 778 metric tonnes (892 tonnes).
The group’s log production volume rose to 48.048 cu m in Q12022 from 45,802 cu m in Q12021.
