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Reports Malaysia

Malaysia stock market and companies daily report (August 21, 2014)

August 21, 2014, Thursday, 05:37 GMT | 00:37 EST | 10:07 IST | 12:37 SGT
Contributed by Shares Investment

Boustead Plantations Returns To The Black

- In its 2Q14, Boustead Plantations posted a net profit of RM9.4 million on revenue of RM188.7 million.

- Top line was up 24.4 percent, driven by higher average prices of crude palm oil (CPO) and palm kernel as well as improved crops from existing estates in the Sabah region and output from the newly-acquired G&G Estate.

- Boustead declared a dividend of RM0.02 for the six-month period ended 30 June 2014.

Significance: Aside from El Nino concerns which may impact CPO prices, Boustead is optimistic on palm oil demand due to rising biodiesel mandates in a number of countries.

IOI Corp 4Q14 Earnings Up 51%

- Despite posting lower revenue for the quarter ended 30 June 2014, IOI Corporation’s net profit soared 50.5 percent to RM407.5 million.

- A difference in top and bottom lines performances’ was due to a RM101.3 million translation gain and a one-off RM52.4 million gain as a result of the demerger of IOI Corp’s property business from the firm.

- On a full-year basis, earnings was up 70.9 percent to RM3.4 billion, largely due to the property business demerger.

Significance: Moving forward, IOI Corp anticipates more demand coming from the biodiesel and biofuel sector given the current low CPO prices in its domestic market while higher contribution is expected from its Indonesian associate as more of their young palm trees reach optimum production age.

Oldtown Aims To Open 27 Cafes In 4 Countries

- Oldtown aims to open 21 to 27 new cafes in Malaysia, Singapore, Indonesia and Australia by FY15. Furthermore, besides growing its number of outlets in Southern China, Oldtown aims to set up a new food-processing centre in Guangdong, China, to support its growing number of new cafes there.

- Oldtown currently has 238 outlets in Malaysia, Singapore and Indonesia and China, of which 89 are fully owned, 20 partially-owned, 108 franchised and 21 licensed.

- Oldtown is striving to strengthen its market share for its beverages manufacturing business. It has appointed new distributors in Indonesia and the Philippines and aims to fortify its branding through various marketing campaigns, advertising and promotional activities.

Significance: Oldtown aims to develop its coffee brands as premium labels to ensure sustainable long-term growth in this highly competitive market.