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Reports Malaysia

Malaysia stock market and companies daily report (April 07, 2014)

April 7, 2014, Monday, 04:53 GMT | 23:53 EST | 08:23 IST | 10:53 SGT
Contributed by Shares Investment

Malaysia Exports Beat Forecast In February

- Malaysian exports expanded 12.3 percent year-on-year to RM58.9 billion in February this year on higher sales of electrical and electronic products, liquefied natural gas and palm oil.

- The export growth was also driven by higher sales to major importing countries like the US and European Union nations, where exports rose 8.4 percent and 15.9 percent respectively.

- Imports for the period rose 9.5 percent to RM48.5 billion on the back of higher purchases of intermediate and consumption goods. Trade surplus increased 27.2 percent to RM10.4 billion.

Significance: The growth in February exports beat a median forecast of a 12.1 percent rise, according to a Reuters survey. The slowly improving outlook for exports in the manufacturing and electronics sectors will likely be supported by the gradual recovery in global economies.

Alam Maritim Resources To Grab Larger Slice Of RM2b Market

- Alam Maritim Resources is planning to capture a bigger slice of the RM2 billion market for underwater inspection, repair and maintenance (IRM) with the acquisition of a US$80 million (RM262 million) modern diving support ship.

- The target vessel would be a boost to its subsea capabilities, where it currently owns a fleet of underwater work class remotely operated vehicles (ROV) that can dive to a depth of 3,000 metres.

- Notably, there is tremendous demand for subsea IRM services, not only in the oil and gas industry but also in the telecommunications industry where China Telecom Corporation had contracted Alam Maritim’s ROVs to install anchors for a subsea water pipeline project and carry out IRM works.

Significance: Owning the vessel would give the company a lot of flexibility to improve its margins as well as the advantage of being the only Malaysian company with a modern ROV launch vessel.

Formis To Sell Business Units To Microlink Solutions For RM50m

- Formis Resources proposed to dispose of five subsidiaries involved in IT solutions businesses to Mircolink Solutions for RM50 million.

- The original investment in the units was RM105.8 million but the disposal is part of its restructuring plan to streamline its existing business segments with similar activities in Microlink, where it also controls an 88.5-percent stake.

- Microlink has proposed a 10-percent share placement exercise to raise proceeds of RM11.5 million to partially fund the acquisitions from Formis.

Significance: The units disposed will complement Microlink’s application capabilities in the financial services industry and would be able to help the company grow in scale as well as to expand its product range of third party products and services in the software distribution segment, further diversifying its revenue base.