MSWG Weekly Newsletters 16 September 2017

Saturday, 16 September, 2017

16 September 2017


MSWG received several complaints on Golden Palm Growers Scheme (“Scheme”) as the growers are unhappy with the development of the Scheme.  We are pleased to inform that MSWG will be holding a forum to facilitate the discussion on the issues on the Scheme and wish to invite all affected growers to this forum, which will be held as follows:

Date       :         26 September 2017 (Tuesday)

Time      :         10.30 am

Venue    :         MSWG Training Centre

                        Minority Shareholder Watchdog Group

                        11th Floor, Bangunan KWSP

                        No. 3, Changkat Raja Chulan

                        Off Jalan Raja Chulan

                        50200 Kuala Lumpur


Those interested, please register at the link : or call our office at tel: 03-2070 9090 or email at





PNHB announced that the SC had, via its letter dated 12 September 2017, approved the Company’s application for the proposed acquisition by PNHB of the entire issued and paid-up share capital in TRIplc from Pimpinan Ehsan Berhad for a cash consideration of RM210 million (“Proposed Acquisition”) under Section 214(1) of the Capital Markets and Services Act 2007 and under the equity requirements for public listed companies.

[Source: PNHB’s announcement on Bursa Malaysia’s website on 13 September 2017]



We are of the views that the shareholders of PNHB would benefit from the Proposed Acquisition in the long run as based on our analysis on the information in relation to the Proposed Acquisition disclosed by PNHB on 16 December 2016, the offer price of RM210 million made by PNHB is at a discount to TRIplc’s indicated realisable net asset value of RM360 million.



According to the information released on GPGS’s website, the management company of GPGS has called for a meeting of the investors on 2 October 2017 to determine the future of the oil palm plantation scheme. As stated in the notice of meeting, the management is seeking approval from the growers for the following two (2) resolutions :

(i)   Management is seeking 12 months to find an optimal realisation for the plantation (Resolution 1)

(ii)  Immediate sale of the plantation which may result in a distressed and lower price sale (Resolution 2)

[Source: GPGS’s announcement on its website]


We see yet another interest scheme which defaulted its second phase income yield of 9% despite the fact that the average CPO price in 2017 is above RM1,500 per metric tonne. We believe the promoter of the scheme could have failed to take into consideration the rising operation cost of oil palm plantation which adversely affected its financial position and caused the scheme to default on the payment of the income yield. We are currently trying to engage with the regulator, the management company and investors to get an insight and explanation on the various issues of concern relating to the scheme.



For this week, the following are the AGMs/EGMs of companies which are in the Minority Shareholder Watchdog 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


Date & Time



19.09.17 (Tue)
10.00 am

Eastern & Oriental Bhd

Sime Darby Convention Centre, 1A Jalan Bukit Kiara 1, KL

20.09.17 (Wed)
10.30 am

Brem Holdings Bhd 

Crystal Crown Hotel,  Off Jalan Utara, PJ

21.09.17 (Thur)
09.30 am

NTPM Holdings Bhd

Bukit Jawi Golf Resort, Seberang Perai Selatan, Pulau Pinang


The points of interest to be raised:


Points/Issues to Be Raised

Eastern & Oriental Bhd

It was stated in the Management Discussion and Analysis that upon completion of the development properties – Andaman 18 East and Andorra of STP as well as Princes House in the UK – the unsold units cost was transferred from property development costs to inventories. We also noted in Note 23 on page 211 of the Annual Report that Completed properties increased from RM210.6 million to RM430.4 million.


(1).  Could the Board provide an update on the sales of these completed properties to date?

(2).  What are the proposed launches for FY2018?


Brem Holdings Bhd 

The property development, investments and investment holding segments had adopted aggressive marketing strategy to boost sales and to improve occupancy rates of its retail and office space during FY 2018. 


(1).  Could the Board elaborate on its marketing strategy and how much improvement it would expect in the sales of its properties as well as occupancy rates for FY 2018?

(2).  The results of associates and joint ventures recorded a loss of RM1.7 mil (2016: RM1.64 mil) and RM72,297 (2016: nil) respectively for FY2017.  What steps and measures would the Board take to improve the results?


NTPM Holdings Bhd

(1).  We noted that the Group’s current manufacturing capacity utilisation rate is approaching 80%. In order to support the anticipated growing demand, the Group plans to increase its manufacturing capacity by adding new tissue paper machines in its manufacturing facilities in Malaysia and Vietnam.

What is the targeted optimum capacity utilisation rate to be achieved in FY2018?


(2).  We noted under Note 8 of the Annual Report 2017, a total of RM419,981 bad debts were written off during the FY2017 compared to RM121,390 in FY2016.

Please explain on the bad debts written off which had increased 245.9% and what is the Company’s policy on bad debt written off?





In relation to WGB’s appeal against de-listing, the new Board (who were appointed at the Extraordinary General Meeting held on 20 June 2017) had submitted the plans and new direction on how to improve the financial performance of the group together with the new direction of the group to Bursa Malaysia. It has also taken cognizance of the interest of all shareholders and intended to put it on the right footing to be an ongoing listed Company.

Save for the above, the Sponsor namely M&A Securities Sdn Bhd has tendered their resignation earlier this year. The company or the new Board and new management has approached them on their re-appointment.

[Source: WGB’s announcement on Bursa Malaysia’s website on 8 September 2017]



Malaysia's July industrial output seen rising 5.3% y/y

SC hopes more non-PLCs will adopt governance practices

China investments transforming Malaysia

FGV board in the dark over chairman’s appointment

Banks not to blame for commercial property glut

Overnight Policy Rate retained at 3%, economy to expand faster than expected

Media Statement on Initial Coin Offerings

Speculative forex trading ended following 1990s saga, says Ahmad Don

Malaysia not churning out suitable graduates for innovation, R&D: Professor



China August trade surplus with US highest since Sept 2015

US services sector growth accelerates; trade deficit edges up

UK employers raise pay as Brexit skills shortage bites



Japan’s Q2 economic growth revised down from stellar first reading

Warning before Monday vote: Blocking EU repeal bill is vote for chaotic Brexit

Will Saudi Aramco deliver world record profit for next year’s IPO?

Indonesia banking rally imperilled by sluggish lending

China worries about yuan’s rise

World Bank executive says won't persist with capital increase deadline

India's auto industry gears up for government's electric vehicles push


MSWG Analysts

Lya Rahman, General Manager,
Rebecca Yap, Head, Corporate Monitoring
Quah Ban Aik, Head, Corporate Monitoring
Norhisam Sidek, Manager, Corporate Monitoring
Wong Kin Wing, Manager, Corporate Monitoring,
Hoo Ley Beng, Manager, Corporate Monitoring

Elaine Choo, Manager, Corporate Monitoring,
Muhammad Faris bin Mohamed Yusof, Analyst, Corporate Monitoring




•           With regard to the companies mentioned, MSWG holds a minimum number of shares in all these companies covered in this newsletter save for TRIplc Berhad, Golden Palm Grower Scheme and Wintoni Group Berhad.



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