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Reports Malaysia

Malaysia stock market and companies daily report (April 21, 2014)

April 21, 2014, Monday, 03:00 GMT | 23:00 EST | 07:30 IST | 10:00 SGT
Contributed by Shares Investment

New Shareholders Expected For Talam

- A restructuring exercise by Talam Transform will see the emergence of new investors and the exit of its current largest shareholder, Kumpulan Europlus. Datuk Sirin Upatkoon, who is an indirect shareholder of Talam, is also an existing shareholder of Multi Purpose Holdings (MPH), which is among the new investors. The new investors, will however, not drive operations.

- Although Talam has returned to the black after three consecutive years of losses in its latest financial year, it foresees a difficult year ahead due to lending guidelines by Bank Negara as well as increasing construction costs.

- Talam, in its filing with Bursa Malaysia, said it had completed all unfinished houses and will continue to team up with “reputable corporations” to develop its land bank.

Significance: A source close to the company mentioned that some new money will come from investors as the company undertakes a corporate exercise to beef up its balance sheet, and that the investment rationale is because they believe the stock has long term potential.

120 Outlets Targeted By Caring Pharmacy

- Caring Pharmacy, is targeting up to 120 outlets by 2016. As at April, Caring has 97 pharmacies nationwide.

- This is part of the group’s expansion plans. According to estimates of Hong Leong Investment Bank, the setting up of 12 to 13 new outlets per annum in FY15 and FY16 is expected to underpin double-digit prospective revenue and earnings growth.

- In terms of number of outlets, Caring is ranked third after Cosway and Guardian, with an estimated market share of four percent. No single operator controls more than seven percent of the market. Within the Klang Valley, Caring’s market share stands at eight percent.

Significance: Catalysts for Caring are successful implementation of outlet expansion plans over the next few years to sustain medium to longer-term growth.

DefTech Sets Sights On Cambodia and Myanmar

- DRB-Hicom Defence Technologies (DefTech), is setting its sights on Cambodia and Myanmar.

- Chief executive officer Amril Samsudin said DefTech is finalising a deal with the Cambodian government for a new maintenance, repair and overhaul (MRO) contract for T-55 tanks.

- With an estimated worth of US$50 million (RM162 million) to US$60 million for a five-year period, the project is set to commence by October. DefTech also noted that it is in talks with the relevant authorities in Myanmar for similar MRO contracts.

Significance: Judging from the size of its tanks for MRO services, the project in Cambodia has a great potential. If Myanmar’s authorities bite and sign the MRO deal, DefTech will very likely be able to look at a sizable contract sum coming in from Myanmar as well.