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Reports Malaysia

Malaysia stock market and companies daily report (April 29, 2014)

April 29, 2014, Tuesday, 05:04 GMT | 00:04 EST | 08:34 IST | 11:04 SGT
Contributed by Shares Investment

Super Palms May Debut In 2015: Sime Darby

- Sime Darby expects to enlist its genome super palms by next year or 2016.

- The super palms can produce up to 10 tonnes of crude palm oil (CPO) per hectare, compared with the industry average of four tonnes per hectare and its plantations’ present output of six to eight tonnes of CPO per hectare.

- Separately, Sime Darby agreed to acquire a 30-percent stake in Verdezyne, a US biotechnology company. The deal, worth US$30 million (RM98 million), allows Sime Darby to expand its downstream activities to include products such as plastic and nylon.

Significance: “If we were to replace our planted areas with the latest planting material, we would be able to more than double our output,” said Sime Darby’s president, Tan Sri Mohd Bakke Salleh.

AirAsia X Secures GE Engines For Up To 28 Aircrafts

- AirAsia X has inked a memorandum of understanding with GE Aviation to equip its 25 new Airbus A330-300 aircrafts with GE’s CF6-80E1 engines, with an option for an additional three aircrafts.

- The deal, valued in excess of US$1.5 billion (RM4.9 billion), includes a multi-year OnPointSM solution service agreement for engine maintenance, repair and overhaul.

- With the contract, GE will become AirAsia X’s second core engine supplier.

Significance: The order will ensure AirAsia X maintains its competitive advantage as the world’s lowest unit cost airline operator, with industry-leading reliability performance, noted AirAsia Group chief executive officer, Tan Sri Tony Fernandes.

Tambun Indah’s 1Q14 Profit More Than Doubles

- For the three months ended 31 March 2014, Tambun Indah Land’s turnover rose 43 percent to RM112 million, underpinned by increase billings, higher take-up rates of the on-going projects and introduction of new development projects.

- Gross profit margin for the period came in at 35.6 percent, slightly lower than 1Q13’s 37.3 percent, as cost of sales rose at a faster rate.

- Coupled with a reduction in sales, marketing and administrative expenses, the company’s earnings more than doubled to RM25.3 million.

Significance: As at 31 March 2014, Tambun Indah achieved a take-up rate of 84.9 percent on its on-going projects with a total gross development value of RM975.7 million and unbilled sales of approximately RM470 million. The figures should contribute positively to the firm’s bottom line for the next two to three years.

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