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Reports Malaysia

Malaysia stock market and companies daily report (August 18, 2014)

August 18, 2014, Monday, 05:25 GMT | 00:25 EST | 08:55 IST | 11:25 SGT
Contributed by Shares Investment

Icon In Brunei OSV Tie Up

- Icon Offshore’s subsidiary, Icon Fleet, has agreed to form a 49:51 joint venture (JV) with Zell Transportation to provide offshore support vessels (OSV) to service contracts and operations in Negara Brunei Darussalam.

- Icon will transfer one vessel, an accommodation work boat, to the JV. The JV will charter the vessel to Zell, with the Brunei Shell Petroleum as the end customer.

- The charter will lasts for five years, with an extension option for a further two years.

Significance: The proposed JV tie up is in line with Icon’s strategy to expand into new markets and strengthen its position as one of the largest pure-play OSV providers in Southeast Asia in terms of number of vessels.

MBSB’s 2Q14 Earnings Rise 41% To RM233m

- Malaysia Building Society (MBSB) posted a 9.4 percent year-on-year increase in revenue to RM672.1 million in 2Q14. Earnings rose 41 percent year-on-year to RM232.9 million, underpinned by a write-back of impairment losses on loans, advances and financing coupled with higher operating income.

- MBSB which is in talks with CIMB Group Holdings and RHB Capital on a possible merger has said the personal financing and mortgage portfolio growth would be challenging in 2014 as Bank Negara Malaysia has implemented measures to further promote a sound and sustainable household sector.

- Therefore, while sustaining the personal financing portfolio, the group has been expanding the corporate business segment including tapping into opportunities under the federal government’s Economic Transformation Programme.

Significance: MBSB expects its performance in the second half of 2014 to be satisfactory and believes that a well-planned expansion programme into corporate segment will have positive contributions to the group in terms of assets and earnings growth.

Texchem In Myanmar Seafood JV

- Texchem Food, a subsidiary of Texchem Resources, has inked a JV with Mascot Industries Company to process seafood and manufacture seafood value-added products in Myanmar.

- The JV allows Texchem Resources, which is in business of seafood related products production under its food division, to tap on the natural resources in Myanmar to carry out its ordinary course business.

- The initial paid-up share capital of the JV will be US$84,000, with Texchem Food holding 90 percent of the firm.

Significance: Texchem Resources will fund its share of the JV via cash and the JV is expected to have a positive contribution to the firm in the long run.