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Reports Malaysia

Malaysia stock market and companies daily report (August 14, 2014)

August 14, 2014, Thursday, 06:56 GMT | 01:56 EST | 11:26 IST | 13:56 SGT
Contributed by Shares Investment

BHIC 2Q14 Net Profit Up 9.7%

- Boustead Heavy Industries Corporation (BHIC) recorded a 7.5 percent year-on-year increase in revenue to RM66.5 million in 2Q14, underpinned by the chartering segment due to higher average charter as well as the Belum topside project also contributed marginally to the revenue from the heavy engineering segment.

- However, as a result of a higher cost of goods sold, gross profit for the quarter fell 5.5 percent year on year to RM10.7 million.

- Net profit rose 9.7 percent year-on-year to RM11.2 million, mainly due to higher revenue recognition for certain construction contracts and an increase in share of profit from joint venture companies.

Significance: BHIC claimed that the RM108 million Belum Topside project for murphy Sarawak is progressing well. They expect this project, as well as the other ongoing maintenance, repair and overhaul projects to be the main generators of income in 2014 for the heavy machinery segment.

Berjaya Assets 4Q14 Pre-Tax Profit Up 79.5%

- Berjaya Assets reported a 2.7 percent year-on-year increase in revenue to RM106.5 million in 4Q14, underpinned by contributions from the gaming business segment operated by Natural Avenue due to higher number of draws in the current quarter under review as compared to the previous year corresponding.

- However, due to higher operating expenses, gross profits fell 10.9 percent year on year to RM21.3 million.

- Pre-tax profits increased 79.5 percent year-on-year to RM41.2 million from RM22.9 million a year earlier, as a result of a higher gain registered on fair value adjustment of investment properties.

Significance: Going forward, the directors of Berjaya Assets expects the property investment and hotel and related businesses operated by Berjaya Times Square group and the gaming business operated by Natural Avenue to maintain its occupancy rates and market share. They also envisage a satisfactory operating performance of the group for the financial year ending 30 June 2015.

CLIQ Closes In On Maiden Acquisition

- CLIQ Energy has narrowed down two assets, which range from pre-development to production types, from five shortlisted qualifying assets (QA) to acquire. The initial list contained 38 proposals.

- The firm has guided that the proposed purchases would use about 80 percent of its current funds each, which stood at RM336 million as of 31 March. If CLIQ decides to acquire both assets, it may need to raise more funds.

- According to guidelines, CLIQ, a special-purpose acquisition company listed on 10 April 2013, must utilise majority of their listing proceeds on their first QA within three years from the listing date. So far, it has not made any purchase.

Significance: In CLIQ’s prospectus, any producing or in-development asset to be acquired must offer a minimum internal rate of return of 15 percent.

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