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Reports Malaysia

Malaysia stock market and companies daily report (August 05, 2014)

August 5, 2014, Tuesday, 05:22 GMT | 00:22 EST | 08:52 IST | 11:22 SGT
Contributed by Shares Investment

Bina Puri Clinches RM115.4m Sabah Contract

- Bina Puri Holdings has bagged a new contract valued at RM115.4 million, for the construction and completion of building works and external works for KOUMS Asrama Block A (Phase 2) in Kampung Numbok, Sabah.

- Earlier in October 2013, Bina Puri received the award for the construction of KOUMS Asrama (Phase 1) valued at RM96.6 million.

- With the latest win, the company’s un-built book order was boosted to RM2.2 billion.

Significance: Thus far this year, the group has secured new projects worth RM645 million. Total ongoing construction projects stand at RM3.6 billion.

FGV Eyes Plantation Land Near Equator

- Cash rich Felda Global Ventures Holdings is eyeing plantation land globally in an effort to become one of the world’s top agribusiness firms by 2020.

- FGV is eyeing land near the Equator with rainfall of 2,500mm a year to plant oil palm, rubber and sugarcane. Under consideration include lands in countries such as Indonesia, the Philippines, Gabon, Nigeria, Brazil, Peru, Papua New Guinea, Timor Leste, Myanmar and Cambodia.

- FGV is considering land in Mindanao, the Philippines, where land is abundant and far from conflict areas. However, FGV needs to go through the proper channels and further discussion with the Mindanao Development Authority is required.

Significance: Given the limited land in Malaysia, which can be expensive and cost between RM70,000 to RM100,000 per hectare, FGV has to look overseas for land suitable for cultivation. This is in line with FGV’s goal to double its total global landbank to 925,000 hectares and expand its crude palm oil (CPO) production to 8.7 million tonnes.

Hartalega’s Fair Value Upgraded To RM6.95

- RHB Research has maintained its “Neutral” rating but upgraded Hartalega’s fair value to RM6.95 on new growth and the Ebola virus disease outbreak.

- The Ebola virus disease outbreakin West Africa may drive the demand for gloves.

- Hartalega’s next-generation complex expansion is on track with the first two lines expected to commence operations by this year-end. This could possibly boost the company’s installed capacity to about 14.7 billion pieces per annum by year-end and the targeted 15 billion pieces by FY15.

Significance: These growth factors are in line with Hartalega’s aim to achieve installed capacity of 22 billion pieces per annum by FY16 and 42 billion pieces per annum by 2020.