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Reports Malaysia

Malaysia stock market and companies daily report (August 25, 2014)

August 25, 2014, Monday, 06:16 GMT | 01:16 EST | 10:46 IST | 13:16 SGT
Contributed by Shares Investment

AMMB 1Q15 Net Profit Up 16% On Divestment Gain

- For the quarter ended 30 June, AMMB Holdings’ revenue increased 8.4 percent year-on-year to RM2.6 billion from RM2.4 billion while net profit rose 16.2 percent year-on-year to RM536.9 million from RM462 million underpinned by a one-time gain from sale of a circa 50 percent partnership stake in AmLife and AmFamily Takaful.

- AMMB mentioned that in retail banking, plans are underway to deliver solution to new target value segments, particularly in emerging affluent and small businesses to drive deposits and fee-based income growth.

- Going forward, AMMB will be guided by four strategic priorities to achieve its vision: deliver on focused organic growth; leverage strategic partnerships and deliver on acquisitions; continue to optimise efficiency; and build sustainability.

Significance: In the coming years AMMB anticipates headwinds in the business environment with further industry consolidations, intensifying competition and rising compliance requirement.

Daya Materials To Acquire 2 Vessels

- Daya Materials has acquired two dynamic positioning class 2 offshore subsea construction vessels from Siem Offshore Rederi AS (SORA) for RM888.2 million.

- Daya Materials intends to fund the acquisition through a combination of proceeds from a proposed fund raising exercise and bank borrowings.

- In view of this, the company plans to raise up to RM230 million via a renounceable rights issue of new ordinary shares together with free detachable warrants of up to 25 percent of its issued and paid-up capital as well as an issuance of seven-year redeemable convertible secured bonds of up to RM120 million in nominal value.

Significance: The acquisitions will allow the group to own and operate the vessels instead of chartering the vessels from SORA. Moving forward, Daya Materials would expect the acquisition to enhance the operating cost structure of the vessels, which is expected to contribute positively its future financial performance.

UMW Wins RM200m Equipment Deals In Myanmar

- UMW Engineering Services, a unit of UMW Holdings, has agreed to supply over 60 units of Komatsu equipment in Myanmar worth RM200 million.

- The contracts are secured from three major jade-mining customers operating in Hpakant, Mandalay. Hpakant is the source of the world’s highest quality jade.

- The delivery of the equipment is expected to begin from October.

Significance: Jading-mining activities in Myanmar, which have been suspended since May 2012, will resume on 1 September. The suspension lift is expected to fuel UMW’s order book for Komatsu equipment in the country.

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