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Reports Malaysia

Malaysia stock market and companies daily report (August 11, 2014)

August 11, 2014, Monday, 04:59 GMT | 23:59 EST | 08:29 IST | 10:59 SGT
Contributed by Shares Investment

Fitters Targets Pipe Ops To Be Main Revenue Contributor By 2016

- Fitters Diversified expects its RM90 million pipe manufacturing plant in Kuantan, to be completed in 4Q14 with three production lines churning out RM150 million in revenue and subsequently, doubling that by 4Q15, enabling it to be Fitters’ main revenue contributor.

- Fitters made entry into the pipe manufacturing business in March 2014, through its 65 percent subsidiary Molecor (SEA) that has the exclusive rights to manufacture and market Spain-based Molecor Tecnologia’s patented “oriented PVC” pipes in South East Asia.

- Fitters received an eight-year tax exemption from the East Coast Economic Region and Malaysian Investment Development Authority that would further enhance its bottom line.

Significance: Over the next three to four years, Fitters aim to have at least 10 production lines to cater to Malaysia and the region and after which it aims to set up plants in Thailand and Indonesia to become a regional player.

Karex To Buy 55% Stake In GPC

- Karex has proposed to acquire a 55 percent interest in US-based Global Protection Corporation (GPC) for US$6.6 million (RM21 million).

- GPC is a condom and lubricant distributor in the US and Canada and owns the ONE® brand condom. For its fiscal year ended 31 December, 2013, GPC recorded gross revenue of US$10.8 million.

- GPC will grant exclusive rights to a subsidiary of Karex to be its sole distributor of the ONE® brand condom and other condom brands in North Africa as well as certain countries in Asia and the Middle East.

Significance: In addition, Karex has the option to acquire another 15 percent and 30 percent equity interest from GPC founder, Davin Wedel, in 2017 and 2020 respectively.

Mah Sing Aims To Develop RM3.5b Of Projects In KL And Penang

- Mah Sing Group will develop four residential projects with two located in Kuala Lumpur (KL) and two located in Penang. The projects are worth RM3.5 billion and will be built over the next five years.

- Mah Sing aims to develop The Coastal for the RM320 million Southbay City in Batu Maung, Penang, and the RM750 million Ferringhi Residence Precinct 2 in Batu Ferringhi, Penang. In Kuala Lumpur, the group will launch the RM1.5 billion Lakeville Residence in Taman Wahyu, Jalan Ipoh, and the RM900 million D’sara Sentral in Sungai Buloh soon.

- To further add value to the Southbay City project, Mah Sing aims to develop a 750,000 square feet shopping mall in 2016, which will take about three to four years to complete.

Significance: Despite stringent bank loan conditions and the softening of the property market, Mah Sing does not expect the pricing of their projects to fall, as a result of its prime and strategic locations.