MSWG Weekly Newsletter 08 June 2018 (English)

Friday, 8 June, 2018

MSWG’S AGM WEEKLY WATCH 11 – 15 JUNE 2018

For this week, the following are the AGMs/EGMs of companies which are in the Minority Shareholder Watch Group’s (MSWG) watch list.

The summary of points of interest is highlighted here, while the details of the questions to the companies can be obtained via MSWG’s website at www.mswg.org.my.

Date & Time

Company

Venue

13.06.18 (Wed)

02.30 pm

Mudajaya Group Bhd

(AGM)

Menara Mudajaya, No. 12A, Jalan PJU 7/3, Mutiara Damansara, PJ

 

The points of interest to be raised:

Company

Points/Issues to Be Raised

Mudajaya Group Bhd

(AGM)

1)       In 2017, the Group recorded an operating profit of RM59,478,000 compared to an operating loss of RM 217,882,000 recorded in 2016 (page 95 of the Annual Report 2017). However, after including the finance costs (RM44,668,000) and share of loss of equity accounted associates, net of tax (RM137,218,000), the Group’s financial performance plunged a loss before tax of RM122,408,000.              

a)  How will the Board address the profitability issues of the Group?

b)  We note that RKM’s loss has been growing over the last three years? What is the Group’s plan on investment in the company (Page 141 of the Annual Report 2017)?

2)       In Indonesia, the Group will continue to build upon its earlier foray in 2015 via its investment in the Bau Bau 2 x 7MW coal-fired power plant IPP in South Sulawesi. The assets will serve to increase the Group’s footprint in Indonesia and enable it to pursue more opportunities in the country (page 29 of the Annual Report 2017).   

Apart from the power business in Sulawesi, is the Group in talks with any parties to expand further in other parts of Indonesia?


LOCAL NEWS AND DEVELOPMENTS

Impact of SST

https://www.thestar.com.my/business/business-news/2018/06/04/impact-of-sst/

Order to suspend HSR negotiations

https://www.thestar.com.my/business/business-news/2018/06/01/order-to-suspend-hsr-negotiations/

Fiscal deficit to remain at 2.8% as govt reviews RM10b worth of projects, optimise revenue

http://www.theedgemarkets.com/article/fiscal-deficit-remain-28-govt-reviews-rm10b-worth-projects-optimise-revenue

Malaysia manufacturing conditions deteriorate further in May

http://www.theedgemarkets.com/article/malaysia-manufacturing-conditions-deteriorate-further-may

Malaysia's April broad money up 6.2% y-o-y — BNM

http://www.theedgemarkets.com/article/malaysias-april-broad-money-62-yoy-—-bnm

How transparent is the awarding of spectrum to cellular firms in Malaysia?

https://www.thestar.com.my/business/business-news/2018/06/01/how-transparent-is-the-700mhz-bid-and-award-process/#SlF0JF7XXRw5MwpO.99

Bank Negara exposure draft on trade credit insurance, takaful

https://www.thestar.com.my/business/business-news/2018/06/01/bank-negara-exposure-draft-on-trade-credit-insurance-takaful/#9SphRPHDKok7EAv4.99

Mulia Group: Don’t penalise us because we came in during Najib’s time

https://www.thestar.com.my/business/business-news/2018/06/02/mulia-group-dont-penalise-us-because-we-came-in-during-najibs-time/#lTQpXmYI4eqH6r7v.99

Najib steps down as Khazanah Nasional chairman

https://www.nst.com.my/business/2018/05/375275/najib-steps-down-khazanah-nasional-chairman

Malaysia's EPF 1Q investment income up 9.2% y-o-y at RM12.88b

http://www.theedgemarkets.com/article/malaysias-epf-1q-investment-income-92-yoy-rm1288b

Petronas Q1 net profit up 26% to RM13b on higher revenue, net write-back on impairment

https://www.thestar.com.my/business/business-news/2018/05/30/petronas-q1-net-profit-up-26pct-to-rm13b-on-higher-revenue-net-writeback-on-impairment/#4zYSOiTo1wKcLsU2.99

More Chinese firms invest in Malaysia after new govt installed

https://www.nst.com.my/business/2018/05/375150/more-chinese-firms-invest-malaysia-after-new-govt-installed

Berjaya’s hope to recoup US$10mil dims after Vietnam court upholds verdict

https://www.thestar.com.my/business/business-news/2018/05/31/berjayas-hope-to-recoup-us10mil-dims-after-vietnam-court-upholds-verdict/#1QFt53rktLeZ7Ehh.99

India's federal police seek to question AirAsia chief Tony Fernandes - source

http://www.thesundaily.my/news/2018/06/01/indias-federal-police-seek-question-airasia-chief-tony-fernandes-source

Business loan growth at 3.1% in April vs March’s 1.9%

http://www.theedgemarkets.com/article/business-loan-growth-31-april-vs-marchs-19

BNM sets record straight on RM2 billion land purchase

http://www.thesundaily.my/news/2018/05/31/bnm-sets-record-straight-rm2-billion-land-purchase

No toll for KL-Seremban and Salak highways starting June 1

http://www.theedgemarkets.com/article/no-toll-klseremban-and-salak-highways-starting-june-1

Berjaya Media seeks extension to submit regularisation plan

http://www.thesundaily.my/news/2018/06/01/berjaya-media-seeks-extension-submit-regularisation-plan

Hap Seng ‘underestimated’ due diligence needed for Kretam buy

http://www.theedgemarkets.com/article/hap-seng-underestimated-due-diligence-needed-kretam-buy


 

GLOBAL NEWS AND DEVELOPMENTS

US job growth surges, unemployment rate falls to 3.8%

http://www.theedgemarkets.com/article/us-job-growth-surges-unemployment-rate-falls-38

US first-quarter growth revised down to 2.2pc

https://www.malaymail.com/s/1636606/us-first-quarter-growth-revised-down-to-2.2pc

China official factory PMI rises to 51.9 in May, well above forecasts

https://www.thestar.com.my/business/business-news/2018/05/31/china-official-factory-pmi-rises-to-51dot9-in-may-well-above-forecasts/#uTp1jkmTo0lrdUMc.99

India's growth likely topped 7pc again in January-March quarter

https://www.malaymail.com/s/1636751/indias-growth-likely-topped-7pc-again-in-january-march-quarter

Japan's factory output growth slumps in April, casts doubt on quick recovery

https://www.malaymail.com/s/1636767/japans-factory-output-growth-slumps-in-april-casts-doubt-on-quick-recovery

UK economy risks being dragged down by shoppers' Brexit worry

https://www.malaymail.com/s/1637034/uk-economy-risks-being-dragged-down-by-shoppers-brexit-worry

Indonesia raises key rate to 4.75% to aid rupiah, flags chance of more rate hikes

https://www.thestar.com.my/business/business-news/2018/05/30/indonesia-raises-key-rate-to-4p75pct-to-aid-rupiah-flags-chance-of-more-rate-hikes/#80XJYkBy5Ry2DL5O.99

If MSCI’s so great, why are China stocks down?

https://www.thestar.com.my/business/business-news/2018/06/02/if-mscis-so-great-why-are-china-stocks-down/#rkQlZd1WlQlQI7Fs.99

U.S. to slap tariffs soon on steel, aluminum from EU -WSJ

http://www.theedgemarkets.com/article/us-slap-tariffs-soon-steel-aluminum-eu-wsj

US isolated at G7 meeting as tariffs prompt retaliation

https://www.malaymail.com/s/1637566/us-isolated-at-g7-meeting-as-tariffs-prompt-retaliation

US trade mission seeks structural changes to China's economy, says treasury secretary

https://www.malaymail.com/s/1637786/us-trade-mission-seeks-structural-changes-to-chinas-economy-says-treasury-s

Gold may hit US$1,400 on weak dollar

https://www.thestar.com.my/business/business-news/2018/06/04/gold-may-hit-usd1400-on-weak-dollar/#PtbwLjUovy9WkirG.99

John Soh and two others behind 2013 penny stock crash saga to go to trial

http://www.theedgemarkets.com/article/john-soh-and-two-others-behind-2013-penny-stock-crash-saga-go-trial

Jack Ma’s Ant Financial to raise funding to over US$12bil

https://www.thestar.com.my/business/business-news/2018/06/01/jack-mas-ant-financial-to-raise-funding-to-over-us12bil/

SGX slaps Jason Holdings, former CEO Sim with public reprimand

http://www.theedgemarkets.com/article/sgx-slaps-jason-holdings-former-ceo-sim-public-reprimand

World's biggest AI startup raises US$1.2 bil in mere months

http://www.theedgemarkets.com/article/worlds-biggest-ai-startup-raises-us12-bil-mere-months

China to slash import tariffs on many consumer products by 60pc starting July

https://www.malaymail.com/s/1637315/china-to-slash-import-tariffs-on-many-consumer-products-by-60pc-starting-ju

What could spur the ECB into action in Italy?

https://www.malaymail.com/s/1636756/what-could-spur-the-ecb-into-action-in-italy


MSWG Analysts

Lya Rahman, General Manager, lyarahman@mswg.org.my
Rebecca Yap, Head, Corporate Monitoring, rebecca.yap@mswg.org.my
Quah Ban Aik, Head, Corporate Monitoring, banaik.quah@mswg.org.my
Norhisam Sidek, Manager, Corporate Monitoring, norhisam@mswg.org.my
Wong Kin Wing, Manager, Corporate Monitoring, kinwing@mswg.org.my
Hoo Ley Beng, Manager, Corporate Monitoring, linnert.hoo@mswg.org.my

Elaine Choo, Manager, Corporate Monitoring, elaine.choo@mswg.org.my
Lee Chee Meng, Manager, Corporate Monitoring, cheemeng@mswg.org.my 

Abdul Halim Alias, Manager, Corporate Monitoring, halim.alias@mswg.org.my

Mustaqim Yusof, Analyst, Corporate Services, mustaqim.yusof@mswg.org.my


DISCLOSURE OF INTERESTS

•           With regard to the companies mentioned, MSWG holds a minimum number of shares in all these companies covered in this newsletter.


Feedback
We welcome your feedback on our newsletter and our work. Email us at corporateservices@mswg.org.my with your comments and suggestions.


DISCLAIMER

This newsletter and the contents thereof and all rights relating thereto including all copyright is owned by the Badan Pengawas Pemegang Saham Minoriti Berhad, also known as the Minority Shareholder Watch Group (MSWG).

The contents and the opinions expressed in this newsletter are based on information in the public domain and are intended to provide the user with general information and for reference only. Best efforts have been made to ensure that the information contained in this newsletter is accurate and current as at the date of publication. However, MSWG makes no express or implied warranty as to the accuracy or completeness of any such information and opinions contained in this newsletter. No information in this newsletter is intended to be or should be construed as a recommendation to buy or sell or an invitation to subscribe for any, of the subject securities, related investments or other financial instruments thereof.

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