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Reports Malaysia

Malaysia stock market and companies daily report (August 26, 2014)

August 26, 2014, Tuesday, 05:03 GMT | 00:03 EST | 08:33 IST | 11:03 SGT
Contributed by Shares Investment

AMMB To Divest Its Singapore Stockbroking Arm

- AMMB Holdings has decided to divest its wholly-owned subsidiary, AmFraser Securities, to Taiwan-based stockbroking company, KGI Asia, for a consideration of RM96.3 million.
- The acquisition price has accounted for a preliminary value for future recovery of overdue receivables post-completion and a value at a premium over the adjusted net assets of AmFraser.

- However, the final purchase price will be determined as per completion of the proposed divestment in accordance with the sale and purchase agreement and the approval of relevant authorities in Taiwan and Singapore by 1Q15.

Significance: The divestment is not expected to have any material impact on AMMB financial result for FY15, being a divestment of a non-core operation.

Eversendai Wins RM113m Stadium Deal

- Eversendai Corporation has secured a RM113 million contract for total renovation works on the Khalifa Olympic Stadium in Doha, Qatar.

- The job involves re-engineering and dismantling of the existing lighting arch and ancillary steel structures, engineering, supply, fabrication and construction of steel structures.

- With the win, Eversendai has secured RM1.1 billion in new contracts year-to-date. As of 25 August, Eversendai’s order book stood at RM1.7 billion.

Significance: The win reflects Eversendai reputation and progress in Qatar and may pave the way for contracts to work on other stadium projects in the region.

FGV 2Q14 Earnings Halved

- For the quarter ended 30 June, Felda Global Ventures Holdings’ (FGV) revenue surged 36.5 percent to RM4.1 billion, underpinned by higher crude palm oil prices and the consolidation of Felda Holdings into FGV.

- However, a jump in operating expenses, as a result of the consolidation, and a fair value loss, compared to a gain a year earlier, related to FGV’s lease of plantation estate in Malaysia, dragged the firm’s bottom line down 52.9 percent to RM151.9 million.

- For 1H14, turnover grew 37.6 percent to RM7.8 billion while net profit slumped 35.7 percent RM295.5 million, impacted by similar attributes as 2Q14.

Significance: Nonetheless, FGV has declared an interim dividend of RM0.06 per share, in line with its policy of paying out at least 50 percent of its net profit after minority interest.