New York: 01:20 || London: 06:20 || Mumbai: 09:50 || Singapore: 12:20

Reports Malaysia

Malaysia stock market and companies daily report (August 19, 2014)

August 19, 2014, Tuesday, 05:29 GMT | 00:29 EST | 08:59 IST | 11:29 SGT
Contributed by Shares Investment

SMTrack In Chongqing Tie Up

- SMTrack has entered into a joint venture (JV) with Chongqing Zhenxin Investment (CZI) to conduct information technology and related applications to facilitate trade and distribution within the Chongqing free trade zones in China.

- In 1H14, Chongqing’s foreign trade reached Rmb268 billion, up 41.8 percent year-on-year, with exports contributing 62.3 percent and imports making up the remaining 37.7 percent.

- SMTrack will subscribe for 55 percent of the JV, with the balance held by CZI. The company is budgeting Rmb1.5 million (RM0.8 million) for the JV.

Significance: The JV offers SMTrack a platform to further commercialise its traceability on an international level.

Star Publications 2Q14 Earnings Up 38%

- For the three months ended 30 June 2014, Star Publications (Malaysia) posted a 9.2 percent rise in turnover to RM274.5 million while net profit grew 38 percent to RM39.4 million.

- Higher advertising revenue lifted the firm’s print and digital segment while increased exhibition and interior projects by the company’s event and exhibition arm contributed to the improved top and bottom lines.

- While Star Publications’ radio broadcasting division narrowed its losses due to better cost management, higher programme and marketing expenses kept its television channel segment in the red.

Significance: Star Publications announced its first interim dividend of RM0.06 per share, accompanied by a special dividend of RM0.03 apiece for 2Q14.

Tune Ins Holdings Pre-Tax Profit Up 14.9% To RM38m

- Tune Ins Holdings (TIH) recorded a 14.9 percent increase in pre-tax profits to RM37.9 million in the first half of financial year 2014. First half revenue rose 17.4 percent to RM215.5 million from RM183.5 million in 1H13.

- TIH’s profits were contributed primarily from its online business as well as through a new partnership via a joint venture with Cozmo Travel in the Middle East North Africa (MENA) region as well as its expansion into Thailand via a 49 percent stake in Thai insurer, Osotspa Insurance Public Company.

- TIH is extremely positive and optimistic with its Thai and MENA business and believe it will become a significant revenue contributor in 2015/2016.

Significance: CIMB Research said that, TIH’s 1H14 results were in line with its expectations and gave the stock an “Add” rating, underpinned by the potential re-rating catalysts of swift expansion of the travel insurance business; synergistic M&As in Thailand, and entry into Middle Eastern markets.