Finance Ministry has not provided or guaranteed financing to any airline

Quoted from:
https://www.thestar.com.my/business/business-news/2020/10/13/finance-ministry-has-not-provided-or-guaranteed-financing-to-any-airline

Nikkei Asia reported that the RM1 billion loan will be provided by a group of local banks under a government loan guarantee scheme. The loan is expected to be issued next month. This government guarantee program aims to help local companies deal with the consequences of the new crown pneumonia epidemic. The report also quoted insiders from the Ministry of Finance and AirAsia saying that 80% of the above-mentioned loans will be guaranteed by the Ministry of Finance.

However, the above news only spread shortly, and the Ministry of Finance has immediately denied it. A spokesperson for the Ministry of Finance clarified in a brief statement that the ministry "has not approved any government loans or guarantees to any airlines."

Source:
https://www.klsescreener.com/v2/news/view/739511

Nikkei Asia reported that the RM1 billion loan will be provided by a group of local banks under a government loan guarantee scheme. The loan is expected to be issued next month. This government guarantee program aims to help local companies deal with the consequences of the new crown pneumonia epidemic. The report also quoted insiders from the Ministry of Finance and AirAsia saying that 80% of the above-mentioned loans will be guaranteed by the Ministry of Finance.

However, the above news only spread shortly, and the Ministry of Finance has immediately denied it. A spokesperson for the Ministry of Finance clarified in a brief statement that the ministry "has not approved any government loans or guarantees to any airlines."

Source:
https://www.klsescreener.com/v2/news/view/739511

AirAsia Group (AAG) has announced its associate AAJ to cease operations with immediate effect. While AAG has unrecognised losses of c.RM146.8m in AAJ, we do not discount further losses/impairments from the exercise given AAJ still owes a combined c.RM340m to AAG (based on 2019 Annual Report). The impact from Covid-19 has been worse than our initial expectation. Reiterate SELL recommendation with unchanged TP: RM0.46 based on 0.8x of P/B 2020, given the on-going uncertainty of Covid-19. We believe AAG is at risk of further cash calls and potential industry restructuring, in order to keep the group’s operation afloat during this critical period.

https://www.hlib.hongleong.com.my/Published/Download.ashx?ArticleId=15861&mode=view

https://www.theedgemarkets.com/article/macpie-says-largest-shareholder-has-exited-company-response-uma-query

https://malaysiastock.biz/Company-Announcement.aspx?id=1255905

https://www.theedgemarkets.com/article/hlt-globals-2q-profit-65-glovemaking-business-turns-profitable

Plans were set to consider Healthcare business as a stop gap in the light of global uncertainties.
Orders were placed for face mask machinery and PP meltblown machinery as well as purchase of raw materials.

Valuable time were spent learning new processes and machines and also time to improve and rectify as well. Meanwhile cleanrooms and laboratory and storage space commenced to accelerate this program. We started initial production in early July and the learning curve is at times steep but we have reached a confident stage where both 3 ply surgical mask and PP meltblown fabric are in production and sales has started. Novid is our brand.

The initial planned capacities will be completed by September. Now we are planning the next phase of expansion after knowing the
market and conditions better. On going certification of these products for different markets are in progress. We will expand 3 ply and meltblown capacity and include kids mask and N95 respirators. Additional purchase of new factory to cater for this expansion is needed soon.

The face mask and gloves market are inter related as the same customers will request for both. In this light, we are looking at possible trading and manufacture of gloves too as an adjunct to our Healthcare business if there's opportunity to invest. We are being inundated with various proposals that need further study.

Quoted from:
https://malaysiastock.biz/Company-Announcement.aspx?id=1253239

https://malaysiastock.biz/Company-Announcement.aspx?id=1254271

Presentation on the proposed facility to the MOSTI team led by YB Minister was held in early July and was subsequently presented to Nasional Science Council (NSC) chaired by YAB Prime Minister. Following this, YB MOSTI Minister made announcement that the Government could use the facilities of Pharmaniaga and Duopharma Biotech Berhad for fill and finish of COVID19 vaccine. As at to-date, Pharmaniaga have yet to enter into an agreement with the Government for the project.

HLIB Research

https://www.hlib.hongleong.com.my/Published/Download.ashx?ArticleId=15670&mode=view

Weak results due to deferment of work orders

https://www.hlib.hongleong.com.my/Published/Download.ashx?ArticleId=15648&mode=view