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Reports Malaysia

Malaysia stock market and companies daily report (April 28, 2014)

April 28, 2014, Monday, 06:17 GMT | 02:17 EST | 10:47 IST | 13:17 SGT
Contributed by Shares Investment

Axiata On Track For Growth For Next 3 To 5 Years

- Axiata Group is on track to achieve a revenue growth trajectory of mid to high single digit in the next three to five years as it aligned four areas of its business – new services, expansion of digital services, mergers and acquisitions (M&As), and towers and civil infrastructure – to ensure that it is on target for continued growth.

- Axiata has invested heavily in data networks to generate more data revenue for this year and looks to digital services to contribute to growth in future.

- Notably, on M&As, it is looking at further consolidations in Cambodia, Indonesia, Sri Lanka and Bangladesh, where it has a solid presence.

Significance: Despite the growth plans, cost reduction remains a primary focus as the telecommunication provider’s higher cost is network, both in capital expenditure and operational expenditure.

Eco World Among Top 20 Developers In Malaysia

- Eco World Development Group will emerge amongst the country’s top 20 developers, with 1,793 hectares of land generating RM43.5 billion in gross development value (GDV), following a corporate exercise.

- The corporate exercise comprise of a proposed acquisition of eight development rights to eight projects of RM30 billion in GDV as well as a proposed funding to raise RM2.2 billion, which will conclude in October and help to raise the company’s market capitalisation to about RM3 billion.

- The net consideration for the eight projects was RM1.8 billion.

Significance: This corporate exercise will allow Eco World to achieve explosive growth for the next eight to ten years as they integrate the development projects into the company.

MIDF Remains Neutral On Pavilion REIT’s Retail Performance

- Pavilion Real Estate Investment Trust (Pavilion REIT) registered a realised net income of RM56.6 million for the first quarter ended March 2014, at 25.9 percent and 25 percent of consensus’ full year estimates.

- Net property income grew 3.8 percent year-on-year to RM68.8 million, driven by higher retail rental on positive rental reversions, although it was lower than the 6.8 percent growth recorded in its top line.

- The trust’s retail segment continued to register growth and asset enhancement works are ongoing, including the upgrading of toilets and renovation works, new beauty hall and former retail space at the mall. The capital expenditure allocated for FY14 is RM27 million.

Significance: MIDF Research maintained “Neutral” on the trust with a target price of RM1.36 and notes that Pavilion REIT’s performance continues to be stable, with limited exposure to the office segment, which is softening due to the oversupply of office spaces in Kuala Lumpur city centre.