S&P, Fitch assign ratings to Serba Dinamik's US dollar sukuk - Business News

KUALA LUMPUR: S&P Global Ratings and Fitch Ratings have assigned ratings to engineering solutions provider Serba Dinamik Holdings Bhd's proposed US dollar sukuk.S&P Global Ratings said on Tuesday it had assigned its preliminary 'BB-' long-term issuer credit rating to Serba Dinamik.It also assigned its preliminary 'BB-' issue rating to the proposed sukuk trust certificates that the company guarantees.“The rating reflected the company's modest scale with commoditised service offerings, limited record of large-scale project execution outside of oil and gas, large investment needs for future business growth, and somewhat untested asset acquisition strategy,” it said.S&P said however, the company's record of timely project execution within budget, respectable client base, good cost control, short but prudent history of equity raising, and investments temper these constraints.Serba Dinamik's revenues were from the Middle East and Malaysia. Its main business segments are operations and maintenance (O&M), and engineering, procurement, construction, and commissioning (EPCC) targeted at the oil and gas and the power sectors.“Serba Dinamik's order book of about RM8.3bil as of Dec 31, 2018, which typically lasts three years, provides good cash flow visibility,” it said.Over the past three years, Serba Dinamik had shown strong revenue and cash flow growth – indicating the company's capability to renew expiring contracts and win new ones at a healthy rate.“We expect Serba Dinamik to extend its record of project wins and renewals, supporting its top line and cash flow. The company's long-term association with and repeat business from some key clients in O&G segment, such as Petroliam Nasional Bhd. and Royal Dutch Shell Plc., provides it with good experience to expand its target client base.,” it said.Meanwhile, Fitch Ratings accorded a long-term issuer default rating (IDR) of 'BB-' with a stable outlook to Serba Dinamik.“Serba Dinamik's rating reflects its strong market position in Malaysia, where it is the fourth-largest provider of operation and maintenance (O&M) services to the oil and gas industry by 2017 revenue.“The rating is also supported by Serba Dinamik's solid financial profile, short-to-medium term revenue visibility and relatively low earnings cyclicality. Nevertheless, we believe that the company's small operating scale constrains its rating,” it said.Fitch said its rating was based on a bid book annual growth rate of 10% in 2019 and beyond; new order-book win rate of 30% across 2019-2021 and order-book renewal rate of 25% from 2019.It also expected Serba Dinamik to deliver an earnings before interest, depreciation and amortisation (Ebitda) margin pf arpund 17% over 2019-2021.

Source:The Star

April 23, 2019 08:03 UTC

Short selling of Ekovest, IWCity suspended - Business News

KUALA LUMPUR: The short selling activities for the shares of Ekovest and Iskandar Waterfront City (IWC) were suspended at midday on Tuesday after falling more than 15 sen or 15%.At midday, Ekovest was down 8.5 sen to 88.5 sen with 187 million shares done while Ekovest-WB slid nine sen to 39 sen.IWC lost nine sen to RM1.23 with 153 shares traded.The FBM KLCI was up 3.09 points or 0.19% to 1,625.15. Turnover was 2.15 billion shares valued at RM1.26bil. There were 253 gainers, 439 losers and 3865 counters unchanged.A statement from Bursa Malaysia said the short selling would only resume at 8.30am on Wednesday.On Monday, the two listed firms controlled by Tan Sri Lim Kang Hoo, issued separate statements to Bursa to clarify that they were not involved in the revived Bandar Malaysia project.Investors on Monday chased up counters linked to Lim on hopes that his companies would benefit from the revived Bandar Malaysia project.Last Friday, the Prime Minister’s Office (PMO) announced that the government has decided to reinstate the Bandar Malaysia project.The 483-acre Bandar Malaysia project (located on the site of the former Sungai Besi Air Force base) is estimated to generate RM140bil in gross development value (GDV) while attracting foreign direct investments.The original contractors, which is a consortium consisting of Iskandar Waterfront Holdings Bhd and China Railway Engineering Corp Sdn Bhd (IWH-CREC), have 60 days to pay the original deposit sum of RM741mil with an additional RM500mil.

Source:The Star

April 23, 2019 05:03 UTC

Billionaire Kwek keeps it in the family with luxury condo sales - Business News

SINGAPORE: Billionaire property developer Kwek Leng Beng’s latest luxury condo in Singapore has seen robust demand since its launch last month.It doesn’t hurt that some of his own relatives have rallied to the cause.Kwek’s son and daughter-in-law, Kingston and Cecilia Kwek, spent S$9.8 million ($7.2 million) on an apartment in Boulevard 88, according to a City Developments Ltd. exchange filing late Monday.His nephew and City Developments’ group chief strategy officer Kwek Eik Sheng snapped up another unit on one of the upscale project’s lower floors for a more modest S$4.3 million.Kwek senior, as chairman of City Developments, abstained from the board’s review and approval of the proposed sales, leaving it to the developer’s audit and risk committee to review the terms and conditions and greenlight the transactions.Lucky for his relatives, they also got a discount. Kingston and Cecilia got 22 percent off, comprising the 20 percent early-bird discount offered to all members of the public plus another 2 percent because Kingston, as a director, is eligible for the preferential price cut offered to directors and their immediate family members.Nephew Eik Sheng got a 23 percent markdown, the 3 percent because he’s also a company employee.To be fair, sales at Boulevard 88, located just off Singapore’s prime Orchard Road shopping district, have been pretty strong regardless.According to data released by the Urban Redevelopment Authority earlier this month, 26 of the 35 apartments that were marketed in March were sold, including one penthouse that went for S$28 million, or S$4,927 per square foot.That’s the highest price per square foot for a new unit since June 2013, property broker OrangeTee & Tie Pte said.- Bloomberg

Source:The Star

April 23, 2019 04:30 UTC

Cryptocurrency      African Press Release      Lifestyle       Hiring       Health-care       VMware