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Reports Malaysia

Malaysia stock market and companies daily report (August 13, 2014)

August 13, 2014, Wednesday, 05:51 GMT | 00:51 EST | 09:21 IST | 11:51 SGT
Contributed by Shares Investment

Grand-Flo Aims For 50% Income From Property Arm

- Grand-Flo aims to generate half of its revenue from its new venture in property development by next year. Its venture into property development will be driven by its acquisition of a 50 percent plus one share of Innoceria for RM15 million.

- Innoceria is a Penang-based property developer that holds the right to develop the RM220 million Vortex Business Park, comprising mainly commercial and light industrial buildings.

- Grand-Flo aims to partly fund the RM15 million consideration with the issuance of 29.4 million shares at RM0.34 each. Another RM5 million will come in cash.

Significance: Despite the property development landscape to be challenging, Grand-Flo claims that they see unabated demand for Vortex Business Park, which points to buyers’ acceptance of the project.

Maybank To Boost Market Share In Singapore

- Malayan Banking (Maybank) has launched Etiqa Insurance in 22 branch offices located in Singapore.

- Previously, the bank had a 10-year agreement with Prudential Assurance to offer life insurance products in Singapore which expired. Subsequently, following an approval granted from the Monetary Authority of Singapore, Etiqa is now a licensed life and general insurance company.

- Under the move, the bank intends to increase its market share and presence in Singapore, aiming to be a top-10 life insurer in Singapore in the next five years. In addition, the bank plans to launch 12 products and nine riders to address the protection and savings needs of customers.

Significance: Maybank’s entry into the life insurance segment under the insurance industry represents a timely opportunity, on the back of rising affluence in Singapore and increasing awareness about the need to plan for retirement and other life needs.

Nestle 2Q14′s Earnings Slipped 15.5%

- Nestle (Malaysia) registered a 4.6 percent growth in revenue to RM1.3 billion for the second quarter ended 30 June 2014, stemmed from better sales through marketing and promotional activities.

- However, in the face of higher commodity prices which outpaced the group’s cost control efforts, gross profit dipped 2 percent to RM424.3 million.

- Coupled with higher operating expenses, earnings for the quarter sank 15.5 percent to RM118.5 million.

Significance: Continuing its long-term strategy of investing in manufacturing capacity to support its growth, Nestle’s new Sri Muda factory which is under construction has been scheduled to start operations by 4Q14.