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Reports Malaysia

Malaysia stock market and companies daily report (August 22, 2014)

August 22, 2014, Friday, 05:00 GMT | 00:00 EST | 08:30 IST | 11:00 SGT
Contributed by Shares Investment

Europlus To Sell Talam Stake For RM92m

- Kumpulan Europlus has entered into a memorandum of understanding (MOU) with Tan Sri Dato’ (Dr) Ir Chan Ah Chye to sell 840 million shares in Talam Transform to the latter for RM92.4 million, or RM0.11 per share.

- Talam is a Malaysian property developer. The firm currently has six existing projects, excluding joint-venture projects, worth an estimated gross development value (GDV) of RM8.9 billion.

- A search on Talam’s website shows that the firm has a future project, Berjuntai Bistari, with an estimated GDV of RM985 million to be developed over 10 years from 2016 onwards.

Significance: The MOU, which is valid for four weeks from 21 August 2014, followed Europlus’ disposal of a 5.5 percent stake in Talam in July for RM21.6 million.

Scomi Energy 1Q15 Earnings Flat At RM24m

- For the three months ended 30 June 2014, Scomi Energy Services posted revenue of RM365.7 million, up 14 percent year-on-year, driven by improved activity levels in its oilfield service division and a new contract secured in its marine services division.

- However, margins weakened due to an industry slowdown for coal, leading to a lower utilisation rate of vessels under its marine services unit.

- Nonetheless, a RM1.4 million loss attributable to non-controlling interests ensured that net profit for owners of the company was marginally up 0.6 percent at RM23.7 million.

Significance: Moving forward, Scomi expects a pickup in its Malaysia operations while its oilfield services business will remain the key contributor to both its top and bottom lines.

Selangor Dredging RM500m New Launches In Pipeline

- Selangor Dredging expects to launch new projects worth RM500 million in the next six to nine months, enhancing its portfolio of niche development and increase its earnings in the coming years.

- Its upcoming launches include superlink houses with a gated and guarded area, complete with clubhouse facilities, worth RM175 million GDV at Taman Melawati, Kuala Lumpur, and another service apartment in Sungai Buloh, Selangor, worth RM330 million GDV.

- With unbilled sales amounting to about RM1 billion, the company stated that cash flow wise they are in a pretty good position for the next two years.

Significance: Despite the challenging outlook in view of stringent bank loan guidelines, implementation of measures to curb bulk sales, the increase in overnight policy rate, Selangor Dredging is hoping to maintain its sales and also on the constant lookout to purchase lands in Klang Valley and Singapore.