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Reports Malaysia

Malaysia stock market and companies daily report (April 16, 2014)

April 16, 2014, Wednesday, 07:40 GMT | 02:40 EST | 11:10 IST | 13:40 SGT
Contributed by Shares Investment


Bina Puri Secures RM247.8m Fishery Complex Contract

- Bina Puri Holdings said in a filing with Bursa Malaysia that its wholly-owned subsidiary, Bina Puri Construction, had entered into an agreement with Blessed Builders and Pangkalan Ikan Central for the RM247.8 million job to plan, design and build a government fishery complex in Kuching, Sarawak.

- “This is yet another major project for Bina Puri where we are actively participating in building the economic and social progress of Sarawak,” Bina Puri’s group managing director Tan Sri Datuk Tee Hock Seng said.

- The new Fisheries Development Authority of Malaysia complex would serve a larger number of fishermen from the Western coastal region of the state as opposed to the current facility at Bintawa where vessel movement was restrictive. It would also allow the Sarawak government to spearhead the development of its fishery-related industry and improve the quality of products from the state.

Significance: The new job raises Bina Puri’s unbuilt orderbook to RM1.9 billion but it is not expected to have any material effect on the group’s net assets and earnings for the financial year ending 31 December. Looking ahead, Bina Puri says they are confident of securing more projects this year.


CIMB Buoyant On Indonesian Unit This Year

- CIMB Group Holdings expects its Indonesian consumer banking arm, PT Bank CIMB Niaga, to perform better this year and at the least achieve the industry’s average loan growth in Indonesia, which ranges from 14 percent to 18 percent compared with about 8 percent which the bank registered last year.

- Last year, CIMB lowered its dollar loan base to US$300 million as it was quite concerned about capital outflows and the Indonesian rupiah weakening against the greenback.

- “But with positive economic indicators like higher trade surplus, lower inflation and stronger car sales, CIMB Niaga is confident of faring better this year,” CIMB Niaga president and chief executive officer Arwin Rasyid said at a press briefing after CIMB Group’s annual general meeting.

Significance: CIMB Niaga posted an audited consolidated net profit of 4.3 trillion rupiah or RM1.2 billion for FY13, compared with 4.2 trillion rupiah a year ago. At the moment, the group’s earnings from Indonesia accounted for 30 percent of its overall total earnings.


Potential Privatisation Of MAS Would Cost Khazanah RM1.2b, Says Maybank IB

- Maybank Investment Bank (Maybank IB) said in a research note that assuming a 10 percent premium on the current share price of Malaysian Airlines System (MAS), Khazanah Nasional would have to fork out RM1.2 billion to privatise it.

- “Further assuming that the profitable businesses of MAS units is valued at RM4.1 billion [base case] and spun-off to separately list, with Khazanah stake exceeding 30 percent, the sovereign investment fund would get back RM1.3 billion cash,” Maybank IB said in the same note.

- The research house views that the share price for the national carrier has reached the bottom and therefore they are upgrading the stock to a “Hold” rating with a target price of RM0.22 per share. However, it has yet to make any changes to its earnings forecasts pending clarity over the MH370 issue.

Significance: According to Bloomberg, Maybank IB is the only broking house who has currently raised its recommendation on MAS to “Hold”. A total of 14 out of 15 analysts currently have “Sell” recommendations on the stock.