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Reports Malaysia

Malaysia stock market and companies daily report (August 28, 2014)

August 28, 2014, Thursday, 05:49 GMT | 00:49 EST | 09:19 IST | 11:49 SGT
Contributed by Shares Investment

EIG To Spend RM60m On Expansion Plans

- Esthetics International Group (EIG), plans to invest RM60 million to expand its corporate outlets in 10 different locations locally and abroad.

- EIG, a beauty and wellness group currently owns and manage 73 corporate outlets comprising of 56 skin care salons and 17 retail kiosks in Malaysia, Singapore, Hong Kong and Thailand, of which revenue from its operations in Malaysia contributing to 59 percent and the rest from the region.

- EIG aims to begin operations in Indonesia in 2H14 and has attained exclusive distributorship for Demalogica and Averine skin care products as well as Tisser and aromatherapy and beauty products in Indonesia.

Significance: EIG’s core 1Q15 earnings were below analyst expectations as a result of slower than expected sales for its corporate salons and product distribution arm. Management recognised that tightening consumer spending and escalated competition could translate into potential earnings headwinds ahead.

RHB Capital 2Q14 Earnings Jump 35.6%

- For the quarter ended 30 June, RHB Capital reported a marginal 0.8 percent rise in net revenue to RM1.4 billion. For the six-month period, the group’s revenue was up 4.1 percent to RM2.9 billion, largely attributable to strong growth in Islamic Banking income and higher net interest income.

- Net profit for the quarter jumped 35.6 percent to RM556.5 million, on the back of higher impairment write back on other assets and significantly lower impairment allowances for loans and financing. For 1H14, earnings spiked 31.2 percent to RM1 billion.

- The jump in profit pushed net asset value per share up RM0.40 to RM6.97.

Significance: The group has successfully launched several initiatives during 2014, which provides a strong foundation for the positive momentum pf the transformation programme which aims to grow the RHB Banking Group into a leading multinational financial services group by 2020.

TM Posts 0.6% Dip In 1H14 Net Profit Despite Higher Revenue

- Telekom Malaysia (TM) reported an 8 percent increase in revenue to RM2.8 billion for the quarter ended 30 June, bolstered by better performances across all services. For the six-month period, turnover was also up 8 percent to RM5.4 billion.

- In particular, the government segment registered a 27.3 percent growth in income to RM591.6 million in 2Q14, attributable to higher revenue from customer projects and data services.

- However, due primarily to deferred tax, tax expenses for the six-month period rose more than five-fold to RM145.7 million which eroded profitability as 1H14 net profit fell marginally by 0.6 percent to RM424.7 million.

Significance: TM expects a good year ahead with domestic demand continuing to be the key driver for growth, together with improving external demand and strong private investments.