Daily News - 3 Aug 2020

Industrial Insight > Daily News - 3 Aug 2020
3 Aug 2020
Compiled by AllianceDBS Research

MALAYSIAN NEWS

KPJ to dispose of its 80% stake in Indonesian hospital firm for RM28m

KPJ Healthcare is disposing of its 80% stake in an Indonesian company that owns a hospital in Jakarta for RM28m, because of difficulty experienced in complying with the licensing and regulatory requirements. The company, PT Khidmat Perawatan Jasa Medika (KPJM), operates a specialist hospital known as RS Medika Permata Hijau. KPJM is a joint-venture company between KPJ’s subsidiary Kumpulan Perubatan (Johor) Sdn Bhd (KPJSB) and Irfan Jasri, on a 80:20 basis. KPJ said the 80% stake is being sold to Irfan and another individual, Annie Trisusilo, who is presently the medical director of RS Medika Bumi Serpong Damai, the other KPJ hospital in Indonesia. The disposal involves the sale of 15,999 shares to Irfan for 96bn rupiah, and the sale of one share to Annie for six million rupees. (The Edge Markets)

Willowglen bags RM12m contract from Ekovest Construction

Willowglen MSC has secured a RM12m contract from Ekovest Construction Sdn Bhd to supply a traffic control and surveillance system. This marks the group's third contract win for this month, with a total of RM36.78m worth of contract won. In a filing with Bursa Malaysia, Willowglen said the contract from Ekovest Construction was scheduled to commence on July 1 and would be completed by March 31 next year. (The Edge Markets)

Notion VTec’s face mask-production unit registered with US FDA

Notion VTec’s unit Notion Venture Sdn Bhd (NVSB) has been registered with the US Food & Drug Administration (FDA) as a face mask manufacturer that excludes N95 respirator. The company said it is also in the midst of submitting its N95 respirator samples to the US-based National Institute for Occupational Safety and Health (NIOSH) for approval. (The Edge Markets)

YNH raises another RM87m via second bond issuance

YNH Property (YNH) has completed the second issuance of perpetual securities with a nominal amount of RM87m that carries an initial coupon rate of 6.85% per annum. The group has raised a total of RM350m of perpetual securities, following its successful maiden issuance of RM263m in August 2019. YNH said the proceeds of the second issuance will be earmarked to finance the group's capital expenditure and working capital for new projects, as well as for investment such as landbanking. YNH general manager James Ngio said the perpetual securities programme has offered the group an efficient and effective alternative of funding through the capital markets to meet its capital and funding needs. (The Edge Markets)

Top Glove expects to settle remediation with US Customs next month

Top Glove Corp said it hopes to reach a remediation agreement with the US Customs and Border Protection (CBP) within the month of August 2020. The glove maker said it has been in engagement with the CBP via its headquarters in Malaysia, as well as its US office since July 17. Top Glove added that it has appointed an independent consultant to advise them on the matter. (The Edge Markets)

Hartalega aims to ramp up its total installed capacity to 76bn glove pieces per annum

Hartalega Holdings said preliminary plans for its Next Generation Complex (NGC) 2.0 entail seven production plants, comprising 82 production lines with an installed capacity of 32bn pieces of gloves. Once completed, the group’s total installed capacity will increase to 76bn pieces per annum. A 95-acre parcel of land located in Banting, Selangor will serve as the future site for its NGC 2.0. (The Edge Markets)

Pos Malaysia to temporarily suspend international mail, parcels, EMS

Pos Malaysia's international mail and parcels, as well as express mail service (EMS) to all international destinations, except Singapore, will be suspended beginning Aug 3 until further notice. Pos Malaysia in a statement said the temporary service suspension is due to service impact related to Covid-19, which involves varying levels of restrictions across destination countries on flights, airport closures, and cross-border services. (The Edge Markets)

Khairul Anwar is new CEO of Media Prima

Television Media Prima announced the appointment of Datuk Khairul Anwar Salleh as CEO of Media Prima Television Networks effective Aug 1. He will report to Datuk Iskandar Mizal Mahmood, group MD of Media Prima. Khairul has over 25 years of experience across the media and entertainment industry. He most recently served as vice president of the Malay and Nusantara content business of Astro Malaysia Holdings Bhd from March 2010. (The Edge Markets)

GLOBAL NEWS

Major economies in Europe suffer record contractions in Q2

The major European economies of France, Spain and Italy suffered record contractions in the second quarter as the impact of coronavirus lockdowns and depressed domestic consumption took its toll. France's economy contracted by a record 13.8% in the quarter ended June, its national statistics institute Insee said July 31. The seasonally adjusted q-o-q drop in gross domestic product (GDP) was better than forecast but worse than the performance of most of its Eurozone peers. The second-quarter figure means the French economy has been shrinking for three consecutive quarters and continues to be in recession. Spain plunged into recession after its GDP tumbled by 18.5%, official figures July 31 showed. In the first quarter, growth had fallen by 5.2%, said the country's Institute of National Statistics. The business, transport and hotel sectors were all badly hit, suffering a 40% drop compared with the first quarter. And tourism, a pillar of the Spanish economy and which accounts for 12% of its GDP, suffered a 60% drop in revenues compared with the same period last year. (The Straits Times)

Eurozone inflation unexpectedly ticks up amid record GDP slump

The Eurozone’s economy recorded its deepest contraction on record in the second quarter, preliminary estimates showed on July 31, while the bloc’s inflation unexpectedly ticked up in July. In the months from April to June, gross domestic product in the 19-country currency bloc shrank by 12.1% from the previous quarter, the European Union’s statistics office Eurostat said in its flash estimates. The deepest GDP fall since the time series started in 1995 coincided with coronavirus lockdowns which many Eurozone countries began to ease only from May. The contraction was slightly more pronounced than market expectations of a 12.0% fall, and followed the 3.6% GDP drop recorded in the first quarter of the year. Among the countries for which data were available, Spain posted the worst output slump, with its economy shrinking by 18.5% q-o-q, worse than expected and wiping out all the post-financial crisis recovery of the last six years. (Reuters)

China factory activity up for 5th month, Japan snaps 4-month fall

China's factories stepped up activity in July for the fifth straight month as improving prospects for electrical and pharmaceutical goods helped sustain a broader recovery from earlier coronavirus shutdowns. The world's second-largest economy has largely shaken off the strict lockdowns that led to weeks of business paralysis earlier this year, although it is now battling a resurgence of the coronavirus, driven by infections in the country's west and north-east. The government's manufacturing Purchasing Managers' Index (PMI), released July 31 by the National Bureau of Statistics, unexpectedly rose to 51.1 in July from June's 50.9. That was the highest reading since March and beat analyst expectations for a fall to 50.7. The 50-point mark separates growth from contraction. The PMI echoed upbeat readings from other major Asian export nations, with factory production in South Korea jumping at the fastest rate in more than 11 years, and Japan's output snapping four months of decline. (The Straits Times)

Japan's factory output rebounds, jobless rate dips as lockdown lifts

Japan's industrial output snapped four months of decline in June, pointing to a modest recovery in broader business and consumer activity in the world's third-largest economy following a heavy hit to demand from the coronavirus pandemic. Separate data showed the June jobless rate edged down from a three-year high hit the previous month, although the number of available jobs per applicant fell to a more than five-year low. Official data released on July 31 showed factory output increased 2.7% in June from the previous month when it hit its lowest level since March 2009 during the financial crisis. The rise was largely thanks to a bounce in motor vehicle production, and beat the median market forecast for a 1.2% increase in a Reuter’s poll of economists. Japan's economic activity has gradually resumed in recent months after the government lifted a state of emergency at the end of May. (The Straits Times)