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Reports Malaysia

Malaysia stock market and companies daily report (December 09, 2013)

December 9, 2013, Monday, 05:56 GMT | 00:56 EST | 10:26 IST | 12:56 SGT
Contributed by Shares Investment

BCB In JV To Develop Iskandar Land

- Through a proposed joint venture (JV) firm – BCB Heights – BCB Berhad (BCB) and United Harvest Group (UHG) will acquire a lease over seven development land parcels, situated in Iskandar, Johor Bahru, for RM123.6 million, from Ibzi Development (Johor).

- In the proposed development, measuring 7.8 acres, BCB Heights will construct six tower blocks of approximately 1,750 residential units with an estimated gross development value of approximately RM1.2 billion.

- The proposed JV, where BCB holds a 60 percent stake, will enable the firm to reduce its financial commitment and share the risks and returns in the proposed development by leveraging on UHG’s financial resources.

Significance: The proposed acquisition is an opportunity for BCB to benefit from the economic zone of Iskandar Malaysia, which is targeted to become the most developed region in Southern Peninsular Malaysia, and is expected to contribute positively to its future revenue stream.

Berjaya Auto’s 2Q13 Profit Up 251.3%

- For the three months ended 31 October 2013, Berjaya Auto posted a 30 percent hike in turnover to RM282.4 million, up from RM217.3 million in the same quarter last year.

- The improved revenue was primarily driven by demand for Mazda CX-5 and Mazda6 models in Malaysia and income contribution from Berjaya Auto Philippines, which commenced operations in January 2013.

- Coupled with a favourable sales mix, growth in gross profit margin for certain popular models in Malaysia and share of profit in Mazda Malaysia, Berjaya Auto’s bottom line surged 251.3 percent to RM27.3 million for the period.

Significance: Berjaya Auto declared an interim dividend of RM0.0175 per share for FY14, its first payout since listing on Bursa Malaysia’s main board on 18 November 2013.

iDimension To Raise Stake In ICT Firm

- iDimension Consolidated has proposed the purchase of a 60 percent interest in IDB Interactive for RM15 million, to be satisfied with RM10 million in cash and the issuance of 40 million new ordinary iDimension shares, at an issue price of RM0.125 apiece. iDimension had acquired a 20 percent stake in IDB in June 2013.

- Online E-Club, a master licensee of various online gaming products and merchandise, has appointed IDB as its exclusive retailer to distribute, market and sell its products in Indonesia, Vietnam, Philippines, Cambodia and Brunei.

- iDimension has been seeking strategic opportunities to expand and grow its software solutions and other complementary ICT-related (information and communications technology) services businesses to extract greater, recurring income contributions leading to sustainable growth.

Significance: The ICT industry is key in driving Malaysia’s development and growth and has received support from the government such as the Multimedia Super Corridor project which is aimed at attracting world-class technology companies while grooming the domestic ICT industry.