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Reports Malaysia

Malaysia stock market and companies daily report (December 05, 2013)

December 5, 2013, Thursday, 05:53 GMT | 00:53 EST | 10:23 IST | 12:53 SGT
Contributed by Shares Investment

BHIC Aiming For Commercial Jobs

- Boustead Heavy Industries Corporation (BHIC) is now looking to bid for commercial jobs as the company aims to grow both sectors for military and commercial proportionately. Currently, 70 percent of BHIC’s earnings come from its defence business while the rest are from the commercial sector.

- BHIC is looking to develop a niche in the commercial shipbuilding sector. Last month, BHIC delivered two tugboats built at Boustead Langkawi Shipyard, which is a testimony to BHIC’s smart partnership with the United Kingdom-based Macduff Ship Design.

- BHIC should cap the year on a positive note, with heavy engineering continuing to be the strongest segment boosted by the performance of current maintenance, repair and overhaul (MRO) of submarines and helicopters.

Significance: BHIC expects income this year to be derived mainly from contributions from its littoral combat ship project for the government. It is also seen to be a catalyst for the commercial ship repair and ship construction, one of the Entry Point Projects under the government’s Economic Transformation Programme.

CH Secures RM97.2m Deal From KPPFM

- Caely (M), a wholly-owned subsidiary of Caely Holdings (CH), entered into two construction contracts with Koperasi Peserta-Peserta Felcra Malaysia (KPPFM) valued at RM97.2 million. Both contracts are to be completed within a period of 24 months from the date of the contract.

- One of the contract is for the construction and completion of infrastructure for RM28.2 million, while the other is for the design, construction and completion of an additional 770 units of houses in Perak for a contract sum of RM69 million.

- The 21.4 hectares mixed development project in Perak, consisting of commercial and residential units is targeted for completion in June 2015 and June 2016, respectively.

Significance: This is not the first time CH has been offered construction projects from KPPFM. The latest property development project marks the continuation of a previous project mandate given by KPPFM to CH in 2011 to construct bungalows in Pasir Salak, Perak.

YTL Corp’s Unit On Aggressive Network Expansion

- YTL Corporation’s communications arm, YTL Communications, is optimistic of breaking even at a much faster pace with an aggressive expansion of its network coverage nationwide. Based on its total number of subscribers of 700,000 to date, it can break even in less than three years once it signs on “well over a million subscribers”.

- Currently, YTL Communications has over 4,000 base stations and it plans to build a few hundred more to support its network expansion.

- Previously, the company had won the contract for phase one of the 1BestariNet programme, to deliver a cloud-based virtual learning platform and high-speed Internet connectivity to 10,000 schools nationwide. The programme is worth RM1.5 billion for the first five years, including about RM663 million job to connect over 10,000 schools with 4G wireless broadband access in the first two years.

Significance: The company is optimistic on the increasing number of subscribers due to the wider network coverage of 85 percent in the country so far and it has further plans underway to expand network coverage to Sabah and Sarawak as well.