Kingsley Edu Group Ltd has become the first Malaysian education service provider to be listed on the Growth Enterprise Market of the Stock Exchange of Hong Kong Ltd (HK Exchange).

Following the listing, the group, which owns the Kingsley International School (KIS) in Subang Jaya, plans to expand and set up its schools across Asia.

Kingsley EduGroup founder and chairman Tan Sri Barry Goh said there were very good prospects for international schools in the region.

“It is a huge and fast-growing market. The differentiation factor for our schools will be the leadership academy, which will be located at our new annex building,” he said in an interview,

Goh said full boarding would be offered at the new building, with extra-curricular activities to be focused on leadership.

The new building is expected to come into use by the end of the year, and comprises dormitary rooms with accomodation capacity for 667 students.

The stock rallied upon its debut on the market, opening HK$0.07 higher from the final offer price of HK$0.40. It closed at HK$0.485 with 502.2 million shares traded.

The number of shares offered was 200,000,000, with 60,000,000 Hong Kong public offer shares and 140,000,000 international placing shares.

The group said earlier that the final offer price for the global offering had been determined at HK$0.40 per offer share, with the net proceeds estimated to be about HK$53.3mil.

The offer shares initially offered under the Hong Kong public offer had been over-subscribed by over 35 times.

Goh said it planned to use most of the proceeds, or about HK$25.5mil, to renovate the new KIS Annex Building, while HK$20.3mil would be used for settlement of fees for the construction of the building, which mainly consists of dormitories and other facilities such as a swimming pool, gymnasium and cafeteria.

A total of HK$7.5mil will be used for the purchase of facilities for the KIS Annex Building. The group expects the new facilities to enhance its competitiveness to attract prospective students.

KIS’ enrolment has grown rapidly at a compounded annual growth rate of 19.4% from June 30, 2013 to June 30, 2017.

As at April 20, 2018, the school had 987 students enrolled. Its revenue increased by 58.3% year-on-year to RM29.8mil for the year ended June 30, 2017.

Source: The Star

There is a Chinese proverb that says, “If your plan is for one year, plant rice. If your plan is for 10 years, plant trees. If your plan is for 100 years, educate children.”

Kingsley EduGroup Ltd may not be the biggest private education service provider in Malaysia but it took the lead to become the country’s first education company to be listed on the Hong Kong Exchanges and Clearing Ltd (HKEX) last month.

The market potential in the mid-range segment is huge, says executive director Dr Chua Ping Yong, especially after the government liberalised international schools about a decade ago. “About 50 to 60 years ago, only expatriates and those who worked in embassies could send their children there. In 2009, the rules were relaxed and international schools were allowed to enrol Malaysians,” he tells The Edge in an interview.

But even then, there was a 40% enrolment cap for local students until the quota was removed in 2012.

The timing is just right for Kingsley International School (KIS), which recorded its first student intake in September 2011.

A report by Frost & Sullivan shows that based on average annual tuition fees, international schools in Malaysia can be divided into three segments — high-end (RM40,000 and above), mid-range (RM20,000 to RM40,000) and low-end (below RM20,000). The average tuition fee at KIS falls in the mid-range.

“The mid-range segment is growing very quickly. Today, there are close to 1,000 students in our school, which offers courses ranging from nursery to A-levels, based on the curriculum developed by the University of Cambridge International Examinations and National Curriculum for England. This is our main income stream, our core business,” says Chua.

According to Frost & Sullivan, in 2016, in terms of student enrolment, KIS ranked 29th out of 116 international schools in Malaysia and 13th out of 37 in Selangor. The school recorded a steady increase in student enrolment over the past five years, growing at a compound annual growth rate of 19.4%.

Kingsley also provides tertiary education programmes through Kingsley tertiary institutions, which comprise Kingsley Skills College, Kingsley Professional Centre and Kingsley College.

Last month, Kingsley made its debut on the Growth Enterprise Market of HKEX after raising about HK$53 million in net proceeds. Its offer of shares at 40 HK cents apiece was oversubscribed by over 35 times.

Kingsley’s market capitalisation stood at HK$360 million at last Monday’s close of 45 HK cents.

Tan Sri Barry Goh Ming Choon founded Kingsley and is its chairman and executive director with a 62% stake. A farmer’s son from a village in Sitiawan, Perak, he is better known as the co-founder of property firm MCT Bhd.

Goh also owns 48% of Hong Kong-listed BGMC International Ltd, a home-grown construction firm named after himself. Last August, it became the first Malaysian builder to list on the Main Board of HKEX.

Tapping on the expertise of Goh in property development, Kingsley aims to venture into new markets by setting up schools in other parts of Asia, including China, Hong Kong, India, Vietnam and Cambodia.

“Ideally, it would be great if we can set up universities in these countries. But first, we need to find local partners. We also have to look at individual opportunities as well as the land ownership. Does the partner own the land and we just build it?” says Chua.

As a Hong Kong-listed firm, it is easier for other education groups to consider a collaboration with Kingsley, he says. “Our potential partners would want to look at our financial capability, the number of students and how trustworthy we are. If you are listed in Hong Kong, all that would have already been vetted by HKEX.”

The listing also gives Kingsley a firm footing to expand into the China market. “China is another huge option for us. But to seek collaboration in China, it will take some time and a little bit of work. Hong Kong is also a possibility. Obviously, the demand for international schools there is very high. That’s where we are heading,” says Chua.

For the financial year ended June 30, 2017 (FY2017), Kingsley saw its revenue increase 58.3% year on year to RM29.8 million. Group profit jumped more than threefold to RM11.3 million. KIS contributed close to 90% to Kingsley’s total revenue in FY2017 while Kingsley tertiary institutions made up the remaining 10%.

Chua says Kingsley hopes to maintain its strong growth momentum and to move to the Main Board of HKEX within two years.

“We want to get more students. Eventually, we are going to have [sufficient] classrooms for 3,000 students. Right now, we only have 1,000 students. So, there is literally more room for growth,” he says.

Kingsley’s strategy is to monitor the source countries for foreign students so it can move into those markets. “Currently, Koreans make up the highest number of foreign students. But to set up a school in South Korea is expensive. We need to understand the culture, the situation and the education system of the countries concerned,” Chua says.

Source: The Edge Markets

Oriental Holdings Bhd’s fourth oil mill, to be built at a cost of RM156.1mil, in Sumatra, Indonesia will start operations in 2019.

In its annual report, the group said the oil mill would meet the projected output of fresh fruit bunch (FFB) from the group’s young trees in south Sumatra from 2020 to 2022.

Preparations are underway for the construction of the oil mill, the first in south Sumatra.

“The total capital expenditure, to be incurred for new planting, the construction of offices and the fourth oil mill, is expected to reach RM156.1mil,” according to the annual report.

The report added that moving forward, Oriental Holdings’ strategy for the year 2018 was to replant 239ha.

“As for new planting activities in Indonesia, we have planted 9,350ha to date and target to plant 1,000ha to 2,000ha each year over the next two years. All the replanting activities will be carried out in a sustainable manner and in accordance with environmental-friendly, zero-burning policy,” the report added.

Oriental Holdings expected FFB production to contribute positively in 2018.

The addition of newly-mature areas, the progress of existing mature areas into higher yielding brackets will be the growth drivers for the group’s plantation division in Indonesia, according to the report.

“As of Dec 31, 2017, the group’s plantation land bank concession stands at 95,516ha, of which 39,082ha have been planted with oil palm trees.

“A total of 90,551ha are in Indonesia (Pulau Bangka and South Sumatra) while the remaining 4,965ha are located in Pahang and Negri Sembilan.”

The division currently has a mature area of 31,190ha, the report said.

In Indonesia, the group has three palm oil mills with a combined operating capacity of 240 tonnes per hour, processing its own crops as well as crops purchased from smallholders, FFB traders and other third party estates.

The total FFB processed by its three mills was 529,483 tonnes in 2017, an increase of 12.8% compared with 469,568 tonnes in 2016.

On its automotive business, the annual report said Honda Malaysia is optimistic about leading the nation’s automotive industry in 2018 with a target of 109,000 combined sales units with the introduction of the HRV facelift and Odyssey facelift.

“Ideally, this would translate to a market share of 18% against the projected 2018 total industry volume of 600,000 units.

“To further enhance market positioning and our portfolio’s attractiveness to customers, the management will also focus on expanding the reach of its sales and aftersales service networks and improving overall service quality levels offered, to support the heightening demand,” the report said.

It added that over the past year, the group have been continuously expanding and upgrading showrooms and service centres.

“We have also strengthened efforts to boost our presence in Sabah and Sarawak.

“In addition, plans are being made to upgrade the Puchong, Selayang, Ipoh and Sabah outlets from 3S to 4S centres by including body and paint services,” the report says.

A gloomy outlook for the automobile market is expected in 2018 with the phenomenon likely to persist throughout the year, according to the report.

The group’s automotive division involved the distribution and retailing of Honda cars and spare parts, serving as the exclusive distributor of Honda cars in Singapore and Brunei.

On its hospitality business, the report said the overall outlook for the leisure and hospitality industry is expected to remain highly competitive amid slower economic conditions in both domestic and overseas markets.

“Looking ahead, we aim to drive revenues by investing in a more
user-friendly website to attract guests and exploring other income streams,
including ways to increase guests’ consumption of food and beverage.

“We also aim to increase operational efficiencies by implementing cost saving measures, reducing wastage and improving staff efficiency levels.

“Besides planned major refurbishments, about 3%-4% of revenue per year would be reserved for capital expenditure on replacement and repair of furniture, fittings and equipment, to ensure the properties remain in optimum condition at all times,” the report added.

Source: The Star

Tycoon Robert Kuok is entering the wind energy market in Taiwan through a collaboration between two companies linked to him.

In a joint statement yesterday, Singapore-listed PACC Offshore Services Holdings Ltd (POSH) and Kerry TJ Logistics, a unit of Hong Kong-listed Kerry Logistics Network Ltd, said they were forming a joint-venture (JV) company – POSH Kerry Renewables (POSH Kerry) – in Taiwan.

The JV aims to provide an integrated solutions platform for offshore wind farm developers, EPCI (engineering, procurement, construction and installation) contractors and wind turbine manufacturers.

“This is the first time that two major players in their respective fields have integrated supply chain and marine solutions on a single platform capable of supporting the entire offshore renewables project life cycle,” POSH and Kerry TJ said in the joint statement yesterday.

“Leveraging the capabilities and assets of both companies, POSH Kerry will provide a comprehensive portfolio including the end-to-end transportation of wind turbines and components, as well as diversified marine solutions during the installation, operations and maintenance of offshore wind farms in Taiwan,” it added.

The JV between POSH and Kerry TJ unveiled yesterday came just weeks after Taiwan awarded the rights to develop its first commercial-scale offshore wind projects.

The projects, expected to be executed over two phases, could deliver more than five gigawatts of wind power to Taiwan’s shores.

Kuok is a controlling shareholder of POSH, an offshore marine services provider. The Malaysian tycoon also owns interests in Taiwan-based logistics firm Kerry TJ through its stake in Kerry Logistics Network.

Meanwhile, the JV partners said they had signed a memorandum of understanding (MoU) with Rolls-Royce to explore suitable designs for walk-to-work and services operations vessels specific to offshore wind operations.

A separate MoU was also signed by the JV partners with Macquarie Capital and Swancor to jointly explore collaboration opportunities in the Taiwan offshore wind market.

According to POSH deputy CEO Lee Keng Lin, Taiwan is one of the fastest growing offshore wind markets in Asia.

Business Times quoted Lee as saying that POSH viewed Taiwan as “an open market that welcomes contributions from foreign players with good track records in the offshore marine services sector”.

By Lee’s estimate, about one-third or 40 vessels on POSH’s current fleet are suited for deployment in offshore wind projects, the Singapore business daily said.

Enterprise Singapore, an agency championing enterprise development, voiced its support for the POSH-Kerry TJ joint venture.

Director for Precision Engineering, Marine & Offshore and Engineering Services, Enterprise Singapore, Ho Chi Bao said: “As renewables form an increasing part of the energy mix in Asia, Singapore companies such as POSH can leverage their expertise in operating offshore vessels and project logistics to contribute to wind energy developments.

“Enterprise Singapore has been working closely with POSH on its entry into Taiwan through sharing insight into the market landscape and facilitating connections to key business partners.

“We will continue to facilitate such partnerships to enable Singapore players to offer their solutions and expand into the renewables space.”

Source: The Star

Source: NST

Berjaya Food Bhd has entered into a memorandum of understanding (MoU) to expand its Kenny Rogers Roasters (KRR) and Jollibean franchises in India.

The food and beverage company said it planned to open at least 30 KRR outlets and 75 Jollibean kiosks costing about US$50mil (RM205mil) in India over the next five years.

The MoU with World Iconic Brands (WIB) Hospitality Pvt Ltd India will also mark the opening of Jollibean’s first kiosk outside Singapore.

As for KRR, there is currently only one outlet in India, which was opened in October 2016 in the city of Chandigarh.

Berjaya Food group chief executive officer Sydney Quays said the company was looking to enter as many cities in India as possible.

“We will keep opening more stores as we identify more locations – we have the capability to do a lot more than the 30 KRR and 75 Jollibean outlets,” he told reporters after the signing of the MoU.

With the new partnership and the expansion in India, he said it expected to see more interested parties looking to purchase the franchise.

“This is a positive expansion for both brands and like any other business, there will be a gestation period.

“We are hopeful that it will contribute very positively to the group in the future,” he said.

Berjaya Food, in November 2017, completed the disposal of its loss-making KRR operation in Indonesia, while it has put in place several strategies to turn around the KRR business in Malaysia.

The major contributor to its revenue is its Starbucks business.

In the fourth quarter ended April 30, 2018, Berjaya Food posted a net profit of RM837,000, returning to the black after recording losses of RM3.37mil a year earlier.

For the full year, the group saw net profit fall 88% to RM1.4mil, while revenue grew 5.6% or RM34.2mil to RM639.6mil.

WIB Hospitality managing director Gaurav Marya said the company expected to open the first KRR store under the partnership in the next three to four months.

“There is great potential for the business in India, which has 970 shopping malls and another 400 currently being developed.

“We will open a few stores over the next six to eight months to study the preferences of Indian consumers and then we will scale up the business,” he said.

Source: The Star

Campbell: For a country of this size, it has a significant amount of industrial parks

Vietnam is in the process of transitioning from an agricultural-based economy to becoming one of the most popular manufacturing and industrial countries in Asia. It currently has 356 industrial parks spanning 94,000ha, with more to be launched, said John Campbell, Savills Vietnam industrial service senior consultant.

“For a country of this size, it has a significant amount of industrial parks,” he said during his presentation on ‘Industry and logistics: current opportunities and outlook for Vietnam’. He and other experts from ACSV Legal Vietnam, VSIP, KPMG Malaysia and Vietnam, and Public Bank Vietnam were among the speakers at a talk, entitledPromising investment spotlight — Why Vietnam now? The event was co-organised by VSIP and Public Bank Vietnam. VSIP is one of the largest developers of integrated industrial parks and mixed-use areas in Vietnam.

Of the 356 industrial parks, 220 are operational and 73% occupied, which is “quite a healthy balance right now,” said Campbell.

Vietnam is divided into three economic zones — North, South and Central, which is relatively new. “The north and south are the biggest,” he added.

In Hai Phong in the north, where there are more import and export activities, Deep C Industrial Zones will be opening up 550ha of land.

In the south, a 1,000ha industrial park will be opening up in Phu My, which is located in Ba Ria-Vung Tau province in the southeast of the country.

VSIP will be developing a few industrial parks. In the north, there is the 500ha VSIP Bac Ninh II in Bac Ninh within 20km to 25km of Hanoi central business district. In the south, there is the 1,000ha VSIP Binh Duong III, close to Ho Chi Minh City.

“Bac Ninh is one of the provinces in the north that have been receiving a lot of interest in the past couple of years, especially since the occupancy in Hanoi has increased so much that there is not much land available,” said Campbell.

“VSIP Bac Ninh is close to the central business district. This means that as much as it is built for manufacturing, it is also a logistics option due to its close proximity to the business district.”

As for Binh Duong III, the location is great for investors as it is very close to Ho Chi Minh City. Binh Duong is also known as the manufacturing capital of Vietnam.

Special administrative economic zones

To attract investors, the Vietnamese government is proposing three special economic zones — Van Don, Bac Van Phong and Phu Quoc. According to ACSV Legal Vietnam senior associate Elaine Chew, the government is currently drawing up a draft law on special administrative economic units in Van Don, North Van Phong and Phu Quoc.

Special economic zones are a type of economic zone with a more liberal set of economic laws to foster growth and improve a location’s competitiveness.

Under the draft law, preferential treatment will be given to identified projects in the special administrative economic zones, among which is that no investment projects will be required before organisations are established as well as tax preferential treatment. The enterprise registration certificate will be also issued within three to five days and the investment registration certificate within 15 days.

Under the draft law, the land leases for special administrative economic zones will be longer than normal — 70 years for a normal term lease compared with 50 years in other economic zones, while a special term lease will be 99 years.

“Land use rights are slightly controversial. Land in Vietnam is owned, operated and maintained by the state so there is no concept of ownership but rather the right to use the land in the form of a lease. Generally, for foreigners, the lease is 50 to 70 years, and [getting] 70 years is under very special circumstances. What the draft law is proposing is up to 99 years, which is quite lengthy. In some people’s opinion, it is far too long,” said Chew.

In general, she said, the idea behind the draft law is great but it remains to be seen whether it will be passed. “It is not without controversy, especially issues relating to cluster development and employee working conditions.” She said the government has to find a diplomatic way to overcome the controversy and provide more clarity to enable the law to be approved.

Source: The Edge Markets

The Holstein Milk Company Sdn Bhd, which produces milk under the Farm Fresh brand, has invested RM85 million to acquire a dairy farm and a plant in Melbourne, Australia, to meet the demand for fresh milk in Malaysia.

Operations Director Azmi Zainal said of that amount, RM45 million was spent to take over the plant from a dairy company there while RM40 million was used to buy a 607-hectare farm as well as to establish a sperm bank for breeding cattle through artificial insemination.

“We started taking over the plant and the farm in July and are in the stage of renovation and bringing in the necessary machinery for processing fresh milk.

“When works are completed early next year, the plant will be able to produce 27,000 litres of milk daily, which will then be brought into this country to be re-processed at the Muadzam Shah Cattle Research and Innovation Centre,” he added.

He was speaking to reporters today after Pahang Mentri Besar Datuk Seri Wan Rosdy Wan Ismail paid an official visit to the company’s farm in Muadzam Shah here along with Pahang State Agriculture, Agro-Based Industry and Biotechnology Committee Chairman Datuk Seri Mohd Soffi Abd Razak.

Azmi said that with the additional production, The Holstein Milk Company was expected to control almost 30 per cent of raw milk production in the country compared with 17 per cent to-date.

The company operates a 12-hectare farm in Muadzam Shah with a production capacity of 80,000 litres of milk daily, comprising 60,000 litres of Ultra High Temperature (UHT) milk and 20,000 litres of fresh milk.

The milk comes from top-quality livestock comprising 2,800 dairy cattle, including Holsteins, at the farm.

“To meet the demand for fresh milk in the country, the company is also assisted by about 15 satellite breeders in the state, including from the Panching and Pekan areas,” he noted.

In its effort to expand its fresh milk market, The Holstein Milk Company recently launched UHT milk in a new 200 ml Tetra Edge pack in chocolate, kurma (date) and cafe latte flavours.

Azmi said the pack, introduced in July, was targeted at school students as the milk would last longer than that marketed by the firm previously.

“For a start, we are producing 12,000 litres daily. We have seen very encouraging response and are in the process of raising production to 30,000 litres daily,” he added.

Besides Malaysia, Farm Fresh is also marketed in Singapore and is expected to penetrate the Philippine market next year.

Source: Bernama

Petronas, through its subsidiary Petronas Lubricants International, has opened its Research and Technology Centre in Latin America, the largest facility dedicated to the development of fluid technology to meet the region’s automotive and industrial sector’s growing needs.

The Research and Technology (R&T) facility located at the Petronas Lubricants Brazil’s blending plant here, focuses on development of the latest industrial fluids, lubricants and greases, while serving as a centre for technical expertise, customer assistance, product management and quality control activities.

“For PLI, this new R&T centre in Latin America symbolises our commitment and deep-rooted belief in the power of technology to help industries succeed in the future,” said PLI group managing director and chief executive officer Giuseppe D’Arrigo at the launch.

Also present were PLI’s partners and customers in the automotive and industrial business, as well as Petronas vice-president of marketing (downstream business) Datuk Seri Syed Zainal Syed Tahir and PLI head of Americas, Guilherme de Paula.

The US$8mil investment joins PLI’s network of satellite R&T centres around the world, including China, Malaysia, South Africa and North America. These facilities have their nucleus at the Petronas Global Research and Technology Centre in Turin, Italy, which was opened in March this year.

“We believe in Brazil’s growth ambitions and are committed to our goal to fulfil the market requirements of the largest economy in the region,” said De Paula.

The R & T centre, which covers an area of over 2,400 sq m and houses state-of-the-art facilities including ISO 17025 accredited laboratories for its team of chemists, engineers and technicians to perform more than 105 different ASTM (American Society for Testing and Materials) methodologies.

“This is not just a physical structure that houses the hardware and people who will deliver fluids to our customers. It represents our partnership with worldwide leaders in automotive and industrial sectors. It is our promise to innovate towards your winning performance and future success,” said Syed Zainal.

PLI markets Petronas Selenia, Petronas Syntium, Petronas Urania, Petronas Tutela automotive fluids, and a range of Petronas industrial lubricants and greases to its customers in the region. Over the past six years, the company had moved from seventh to fourth position of the top lubricant players in Brazil, which testifies to its capability and credibility in meeting customers’ needs.

Earlier this year, PLI announced it will be committing 75% of all future R&T projects to achieve its carbon dioxide emissions reduction agenda, through its unique approach in technology and co-engineering of specialised lubricants products.

Source: Bernama

Source: Bernama

Source: NST

Source: NST

Source: Bernama

Argentina’s state-controlled energy company YPF and Petroliam Nasional Bhd (Petronas) are forming a joint venture to invest US$2.3bil (RM9.55bil) over the next four years in the country’s Vaca Muerta shale oil fields, the president’s office announced.

Petronas would have an equal stake in the project through its subsidiary Petronas E&P Argentina SA, the presidency said in a statement. Petronas has not yet commented on the announcement.

The Belgium-sized Vaca Muerta deposit, located in western Argentina, is regarded as having the world’s second-largest shale gas and fourth-largest shale oil deposits.

“This investment will allow us to increase YPF’s petrol production by 30% by 2022, which will represent a total increase for Argentina of 15%,” the statement said.

The companies’ objective is to reach a production equivalent of 60,000 barrels a day by 2022, it said. Total investment could reach US$7bil within 20 years, it said.

Successive governments have targeted Vaca Muerta to reverse Argentina’s energy deficit but the plans have been hindered by a lack of infrastructure.

YPF chief executive Daniel Gonzalez told Reuters last month the company would bolster both unconventional oil and gas production by investing between US$4bil and US$5bil per year through 2022.

Petronas and YPF have already partnered in pilot exploration and production initiatives and will begin development of the unconventional fuel project in the Amarga Chica block in the province of Neuquen.

The announcement is good news for the beleaguered government of Mauricio Macri, which was forced to seek an International Monetary Fund bailout earlier this year.

Macri discussed the deal in a meeting on Tuesday with YPF president Miguel Gutiérrez, Finance Minister Nicolás Dujovne and Energy Secretary Javier Iguacel, the president’s statement said.

Source: Reuters

Source: Bernama

Source: Bernama

Source: Bernama