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Reports Malaysia

Malaysia stock market and companies daily report (April 15, 2014)

April 15, 2014, Tuesday, 09:23 GMT | 04:23 EST | 12:53 IST | 15:23 SGT
Contributed by Shares Investment

EPF And UEM Joint Bid For Queensland Motorways

- The Employees Provident Fund (EPF) and UEM Group are reported to be planning for a joint bid for Australian state-owned toll road company Queensland Motorways, according to Bloomberg.

- Bloomberg also reported that Singapore state investment firm, Government of Singapore Investment Corporation, would team up with IFM Investors and Borealis Infrastructure Management to bid for Queensland Motorways, and that the offer may exceed RM15.6 billion or $6 billion.

- Among the other bidders for Queensland Motorways include a consortium led by Australia’s Hasting Funds Management, which also includes sovereign wealth fund Kuwait Investment Authority, Spanish toll road operator Abertis Infraestructuras and Dutch pension fund APG Algemene Pensioen Groep.

Significance: Final bids for Queensland Motorways are due by 22 April and the sale is expected to raise between A$5 billion and A$6 billion for Queensland Investment Corporation, making it the country’s biggest infrastructure deal this year.

Eco World Develops Remaining Land At Kota Masai

- Eco World Development Group president and chief executive officer Datuk Chang Khim Wah said they will start developing its remaining 404.5 hectares of undeveloped land at the Kota Masai township by September.

- Out of the 404.5 hectares of land, 311.6 hectares has been earmarked for 7,000 units of residential properties, while the remaining is for commercial units and green industrial properties.

- Eco World is reported to be already at the planning stage now including the theme for the new development and indicative pricing for the proposed residential properties.

Significance: Chang said the company was excited to embark on the second phase development of the township, adding that it would bring something new to the area which would be a benchmark for future development within the Masai-Pasir Gudang growth corridor.

AmResearch Maintains “Buy” Call On Tenaga Nasional, Target Price RM14.90

- AmResearch held its FY14 to FY16 earnings forecast for Tenaga Nasional unchanged after the company said it had signed a power purchase agreement with 1MDB Solar. The agreement involved the purchase of electricity from 1MDB’s planned 50 megawatts (MW) solar photovoltaic plant in Kedah.

- The research house, quoting a local daily, said 1MDB’s tariff rates were between RM0.40 per kilowatt hour (kwh) and RM0.46 per kwh, which is higher than Tenaga’s current rate of RM0.40 per kwh. However, the rates were much lower than the first generation of applications back in January 2012, which secured tariff rates of up to RM0.95 per kwh for 1MW to 10MW plants.

- AmResearch said Tenaga would not bear the higher costs of renewable energy as it collects 1.6 percent of all electricity bills for Sustainable Energy Development Authority Malaysia’s renewable fund to pay for the costs.

Significance: AmResearch maintains “Buy” call on Tenaga Nasional with an unchanged target price of RM14.90. It expects weaker results from the company for 2Q14 this year due to tax-rate normalisation, and gas costs increase earlier.