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Reports Malaysia

Malaysia stock market and companies daily report (August 06, 2014)

August 6, 2014, Wednesday, 05:45 GMT | 00:45 EST | 09:15 IST | 11:45 SGT
Contributed by Shares Investment

Axis REIT To Purchase RM472m Of Assets This Year

- The manager of Axis Real Estate Investment Trust (Axis REIT) has five asset acquisitions lined up this year that would increase its assets under management to RM2 billion.

- The five properties includes two industrial facilities located in Prai and Johor, and the other three namely, Axis Shah Alam DC3, Axis Shah Alam DC2 and Axis MRO Hub all located in Shah Alam.

- Contributions from the five properties will not come in this year, but depending on the time of purchase, Axis-REIT, claims that it will add RM0.021 to the distribution per unit on an annualised basis for 2015.

Significance: In line with its aggressive acquisition plan, Axis-REIT will issue a placement of 83.6 million units to raise about RM280 million in early October.

Hartalega 1Q15 Net Profit Down 9.3%

- For the quarter ended 30 June, Hartalega Holdings recorded a modest 0.4 percent gain in turnover to RM279.2 million, from RM278 million a year earlier.

- However, operating profit margin declined from 31 percent to 25.9 percent, attributable to lower average selling price coupled with higher electricity tariff, natural gas tariff and maintenance cost.

- Consequently, net profit for the period fell 9.3 percent, from RM62.9 million, to RM57.1 million. On a per-share basis, basic earnings fell 11.8 percent, from RM0.0856, to RM0.0755.

Significance: Hartalega guided that despite lower average selling prices impacting the glove manufacturing industry, global demand for nitrile gloves remains strong, growing at a rate of over 19 percent.

WZ Satu Bags RM30m Interchange Job

- WZS KenKeong, a subsidiary of WZ Satu, has secured a contract from Laksana Amanbina for the construction of an interchange at the existing Federal Route 3, Kuantan, Pahang Darul Makmur.

- The project, worth RM30 million, is expected to be completed within 15 months.

- For the 12 months ended 30 April, WZ Satu posted a bottom line of RM1.4 million on revenue of RM89.7 million.

Significance: The contract is expected to contribute positively to WZ Satu’s earnings and net assets per share in FY15.