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Reports Malaysia

Malaysia stock market and companies daily report (August 07, 2014)

August 7, 2014, Thursday, 06:07 GMT | 02:07 EST | 09:37 IST | 12:07 SGT
Contributed by Shares Investment

Boustead To Buy 80% Of O&G Support Player

- Boustead Holdings intends to purchase an 80 percent stake in PFC Engineering (PFCE) for RM20 million.

- PFCE is an integrated engineering and maintenance services provider in the oil and gas (O&G) industry. Its services include project engineering services and trading of O&G industry-related mechanical parts, equipment, tools and materials.

- Boustead guided that the PFCE purchase will provide synergy to the former’s current stable of O&G offerings through the latter’s pool of talent, know-how and existing customer and supplier network.

Significance: In line with its strategy, the move would enable Boustead to expand its investment in the O&G sector.

Eita Secures RM15m Lift System Contract

- EITA Elevator (Malaysia), a subsidiary of Eita Resources, has been awarded a RM15.3 million project from Mass Rapid Transit Corporation as the designated contractor for Package LS-U (R1).

- The contract involves the supply, procurement, installation, testing and commissioning of lift system for all underground stations and ancillary buildings.

- The contract amount translates to 10.8 percent of Eita’s FY13 total turnover.

Significance: Although the contract is not expected to have any significant effect on Eita’s FY14 performance, it is expected to contribute positively to future earnings.

MBM Resources Subsidiary To Be Iveco Distributor

- MBM Resources’ (MBMR) subsidiary F.A. Trucks (FAT) has entered into a distributorship agreement with an Italy-based company, Industrial Vehicles Corporation (IVECO), as the authorised distributor for the sale and service of IVECO vehicles and spare parts in Malaysia.

- IVECO is in the business of developing, manufacturing and marketing a broad range of commercial vehicles and its relevant components and parts throughout the world.

- The execution of the agreement is not expected to have any material effect on the earnings, net assets and gearing of MBMR for the current financial year ending 31 December 2014, but the company expects a positive contribution in the coming years.

Significance: The agreement enables MBMR to expand further its motor trading division, broaden the group’s revenue base and complement its existing operations, in line with MBMR’s plan to become one of the leading and most complete automotive groups in Malaysia