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Reports Malaysia

Malaysia stock market and companies daily report (December 10, 2013)

December 10, 2013, Tuesday, 04:24 GMT | 23:24 EST | 08:54 IST | 11:24 SGT
Contributed by Shares Investment

Analysts Positive On Astro

- Satellite television company, Astro Malaysia Holdings, posted a higher net profit of RM123.7 million in the third quarter of the financial year ending 31 January 2014, on the back of firmer RM1.2 billion revenue.

- For the cumulative period, revenue was up 13 percent to RM3.5 billion compared to RM3.1 million due to an increase in subscription, advertising and other revenues.

- The 9M14 results were on track for the research houses’ estimates, forming 75 percent of Bank of America Merrill Lynch’s (BoAML) marginally revised up FY14 estimates and, 74 and 71 percent of Public Investment Bank’s full year revenue and earnings estimates.

Significance: Notably, BoAML notes that Astro’s strong operational momentum amid the lack of material competitive hurdles will limit its medium-term downside risks. RHB Research has maintained its “Buy” recommendation on the stock with a target price of RM3.36.

Kanger’s IPO To Help Fund Overseas Expansion

- China-based Kanger International, an integrated manufacturer of bamboo products, hopes to raise RM20 million from its initial public offering (IPO) on the ACE Market of Bursa Malaysia at RM0.25 per share, to fund its overseas expansion.

- Kanger is planning to extend further than its current markets of the United Arab Emirates, Romania, Russia and China, and the listing will serve as a platform for it to grow its business and access to other forms of capital raising avenues.

- Kanger has an agreement with Forest Research Institute of Malaysia to collaborate and conduct research on suitable Malaysian bamboo species for development of strand woven bamboo planks and the ensuing application of these products.

Significance: To be listed on 23 December 2013, Kanger will be the first and only ACE Market company to be listed on Bursa Malaysia this year out of a total of ten listings recorded in 2013.

CIMB Research Initiates Coverage With “Outperform” Call On UMW Oil & Gas

- UMW Oil & Gas Corporation is seen as a beneficiary from Southeast Asia’s strong demand for jack-ups and Petroliam Nasional’s (Petronas) import substitution model, as the domestic jack-up segment is currently dominated by foreign players.

- The company is armed with an order book of RM1.4 billion, up 122 percent from RM632 million a year ago, and is eyeing more jobs as it expands its fleet.

- CIMB Research expects three more jack-ups to be delivered in FY14, apart from its existing drilling assets.

Significance: CIMB Research initiates coverage on the firm with an “Outperform” call on the stock with a target price of RM4.57. It also notes that its aggressive fleet expansion is a major rerating catalyst.