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Reports Malaysia

Malaysia stock market and companies daily report (April 03, 2014)

April 3, 2014, Thursday, 06:13 GMT | 01:13 EST | 09:43 IST | 12:13 SGT
Contributed by Shares Investment

Datasonic Shares Dip On Bursa Warning

- Shares and call warrants of Datasonic Group fell yesterday after Bursa Malaysia Securities issued a trade with caution warning on the electronic-identification specialist.

- The price of both Datasonic shares and call warrants fell 2.9 percent to RM4.71 and 10.9 percent to RM0.41 respectively, following yesterday’s statement by Bursa.

- Bursa added it will not hesitate to take appropriate regulatory action to ensure fair and orderly trading of Datasonic and its call warrants.

Significance: The fall in Datasonic share price could be related to its declaration on 28 February a one-for-one bonus issue of 675 million new shares on the Main Market of Bursa Malaysia.

TA Global Forecasts Lower Property Development Contribution For FY15

- TA Enterprise’s property arm, TA Global, expects earnings from its property development division to be lower in FY15 due to lower demand for higher priced properties and rising cost pressure. It added that it will continue to focus on its 19.4 hectares upscale mixed development Damansara Avenue project and will be launching new projects in FY15 to maintain earnings from property development.

- In addition, TA Global is also projecting lower earnings contributions from its overseas and local property investments in FY15 in view of the expected upgrading works to be undertaken at some of the projects.

- As for its hospitality business which spans Singapore, Australia and Thailand, TA Global said it will continue to generate a stable recurrent income stream for the group. The growth of its hospitality business in China and Canada in FY15 will be driven by and dependent on the respective countries’ economic growth.

Significance: For FY14, the group’s net profit grew 32.6 percent to RM123.9 million from RM93.4 million the year before, while revenue increase 8.5 percent to RM692.4 million from RM638 million.

Hong Leong IB Research Maintains “Hold” Rating On CBIP, Target Price RM4.48

- In a note, Hong Leong IB Research said CB Industrial Product Holdings’ (CBIP) special purpose vehicle division’s orderbook of RM216 million would translate to another sizeable revenue and earnings recognition in 2014, albeit lower year-on-year.

- Management is confident that its zero waste management technology will extend Modipalm Continuous Sterilisation technology’s tax free status, which is expiring by 2015, as well as broaden the group’s earnings stream over the longer term.

- The new plantation development works will keep CBIP occupied for the next few years, based on management’s unchanged new planting target of 6,000 hectares per annum, its vast greenfield plantation landbank as well as intention to acquire more landbank in Indonesia.

Significance: Hong Leong IB Research maintains “Hold” rating on CBIP with a target price of RM4.48 based on sum-of-parts valuation while maintaining earnings forecasts.