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Reports Malaysia

Malaysia stock market and companies daily report (April 11, 2014)

April 11, 2014, Friday, 05:32 GMT | 00:32 EST | 10:02 IST | 12:32 SGT
Contributed by Shares Investment

Smartag Pens Agreement With Salimy To Develop Halal E-System

- Smartag Solutions has entered into an agreement with Ningxia Salimy Muslim Commodity Trading to develop China International Halal Online Trade and Traceability Ecosystem by building an online e-commerce and traceability platform that allows companies from all over the world to display halal food and Muslim supplies and trade internationally.

- The agreement between Smartag and Salimy will be valid for two years, and Smartag estimates the amount to develop the ecosystem will be Rmb16 million over the period.

- Salimy was established in Yinchuan, Ningxia, the sole Muslim province in China. It has a population of 6.4 million, of which Muslim accounts for 36 percent. In 2013, total imports and exports of Ningxia reached US$3.2 billion, up 45.2 percent year-on-year.

Significance: The agreement with Salimy provides a good platform for Smartag to commercialise its traceability ecosystem on an international level whereby the market potential is huge.

Protasco To Raise RM100m Through Private Placement

- Protasco intends to raise close to RM100 million via a private share placement of some 50 million shares at a price of at least RM1.95 per share, reported The Star Online.

- However, when probed further Datuk Seri Chong Ket Pen, Protasco’s executive vice chairman and group managing director, revealed little but confirm that the company was looking to raise funds via a private placement and that the funds raised would be used to finance projects undertaken by the firm.

- Protasco has obtained a string of jobs in recent times bolstering its construction orderbook to RM700 million. Chong is targeting for its orderbook to cross RM1 billion by the end of this year and net profit to increase by 15 percent for FY14.

Significance: Most of Protasco jobs have come from government projects and its expects new contracts to come from the government too, which generally commands higher pre-tax profit margins compared to private sector jobs.

1Q14 Total Vehicle Sales Increase 22% For MBM

- Mercedes-Benz Malaysia (MBM) reported a 22 percent increase in total sales for 1Q14 to 2,233 vehicles due to strong sales growth of its passenger vehicles. Sales of passenger vehicles rose 38.4 percent to 1,676 units from 1,211 units in the corresponding quarter last year.

- However, sales of its commercial vehicles slid 8.8 percent to 31 units in 1Q14 from 34 units previously, while Fuso registered sales of 526 units against 582 units before.

- MBM’s president and chief executive officer Roland Folger said overall, he was pleased with the company’s performance in 1Q14. He adds, “This is testament to the market’s confidence not only in the Mercedes-Benz brand and product quality, but also the excellent after-sales support offered by our nationwide network.”

Significance: This year the company will continue to invest in its dealer network, with a focus on one-stop centre offerings. It will add another new Autohaus which will set the benchmark in retail experience in Southeast Asia. In addition, to the new S-Class and CLA which were launched last month, MBM plans to introduce a few new passenger vehicle models later in the year.

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