Reports » Malaysia

Malaysia stock market and companies daily report (September 02, 2010)

Contributed by Shares Investment

By Shares Investment

Petronas To Acquire BP’s Stakes In EMSB, PEMSB

Petroliam Nasional (Petronas) will acquire BP’s 15% and 60% interests in Ethylene Malaysia (EMSB) and Polyethylene Malaysia (PEMSB) respectively for US$363m (RM1.14b). Petronas said under the agreement, the payment was inclusive of a balance sheet adjustment of US$13m (RM41m) and the repayment of a shareholder loan of US$53m (RM166m) and both parties are expected to complete the transaction by year-end. The purchase will enable Petronas to strengthen its presence in the olefins and polyolefins businesses in the region. Currently, EMSB owns an ethylene plant and PEMSB, a polyethylene plant, located within the Petronas Petroleum Industry Complex in Kertih, Terengganu, both operated by Petronas. EMSB’s olefin cracker currently produces about 400,000 tonnes yearly of ethylene, while PEMSB’s polyethylene plant produces 300,000 tonnes of polyethylene yearly, used primarily for packaging and film manufacture.

Greenpacket Eyes US$7.5m Overseas Deals

Greepacket expects to secure at least three more contracts worth US$7.5m (RM23.5m) for its WiFi modems and software from the Middle East and American continent by year-end. Greenpacket, which is currently behind base station vendors Motorola and Samsung, secured 30 deals in the first half of 2010, selling more than 130,000 modems to the marketplace. Currently, 15% of Greenpacket’s overall sales of modem and software comes from Europe, the US and Latin America, and the company wants to increase the contribution to 35% soon. Greenpacket sees huge potential for its products in the Middle East and American markets, hoping to grow its business and enhance presence in the marketplace, and these expanded business activities should help increase contribution to the Green Packet group revenue to 40% this year. Going forward, Greenpacket aims to become the top modem vendor and connectivity solutions provider by the end of this year as the group expands its shipment volume globally.

AmResearch Maintains Buy On Naim

AmResearch is maintaining its Buy call on Naim Holdings and raised the fair value from RM4.60 a share to RM5.09 after factoring in the Sabah Oil & Gas Terminal (SOGT) project. Naim had on 1st Sept, Wednesday revealed that the Samsung-Naim JV had received a letter of award from Petronas Carigali for the SOGT project. The contract value is RM2.4b or about 20% higher than initial estimates of RM2b, and the proposed terminal is located in Kimanis, Sabah. Naim stands to benefit from its strategic partnership with Samsung and the latest contract would lift Naim’s order book to about RM3.1b or almost 10 times its FY09 Construction revenue. As such, AmResearch have doubled their new order book assumptions for Naim to RM1b for FY10. “We continue to like Naim as an excellent proxy to Sarawak’s score. On revised earnings, Naim trades at alluring FY10-12 PEs of only 6 times to 9 times against a robust EPS CAGR of 20% and market cap of 0.3 times,” it said.

This article is contributed by Shares Investment. Visit Sharesinv.com for the latest Singapore, Malaysia and China stock market news and reports.