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Reports Malaysia

Malaysia stock market and companies daily report (December 13, 2013)

December 13, 2013, Friday, 07:06 GMT | 02:06 EST | 11:36 IST | 14:06 SGT
Contributed by Shares Investment

Nomura: 4.5% Growth For Malaysia’s FY14 GDP

- Nomura Equity Research forecasts a Malaysian gross domestic product (GDP) growth of 4.5 percent for the year ahead, an improvement from an estimated 4.3 percent growth for 2013.

- The forecast, which is lower than the 5 percent to 5.5 percent forecast by the government, was arrived at after factoring in the effects of China’s slowdown on commodity exporters and the fiscal consolidations set out by the government.

- For 2015, Nomura forecasts a lower GDP growth of 4 percent due to the expected implementation of goods and services tax (GST) in April 2015.

Significance: Notably, the GST would imply a lot of fiscal drag on growth, particularly on private consumption. Nomura favours downstream sectors like manufacturing, technology and industrial sectors, rather than upstream sectors like metals and mining or oil and gas extraction, exploration and production.

SP Setia Posts 21.1% Rise In FY13 Revenue

- SP Setia’s FY13 revenue rose 21.1 percent to RM3.1 billion from RM2.5 billion while earnings increased 6.1 percent to RM417.9 million from RM393.8 million. A change in product mix, higher interest expenses and mismatch between expenses and income recognition resulted in a drag of the performance of its earnings.

- Notably, FY13 achieved total sales of RM8.2 billion, which is almost double the sale achieved last year of RM4.2 billion and 50 percent above its sales target of RM5.5 billion.

- The strong sales performance in 2013 had increased total unbilled sales to be carried forward to 2014 to RM9.6 billion, which would contribute strongly to SP Setia’s earnings over the next few years.

Significance: With its solid execution and tremendous support from its own customer base, SP Setia has been able to garner high brand acceptance steadily all over the world, which augurs well for its future international ventures.

Mitrajaya Wins RM427.9m Job

- Mitrajaya Holdings, via its unit, Pembinaan Mitrajaya, was awarded a RM427.9 million job from Putrajaya Holdings to build three blocks of office building in Putrajaya.

- Under the contract, Mitrajaya will undertake the construction of three blocks of office towers, seven levels of podium, one level sub-basement, one level basement and external works for Suruhanjaya Pencegahan Rasuah Malaysia.

- The contract is for a duration of 36 months and is expected to complete by 25 December 2016.

Significance: As at 30 September 2013, Mitrajaya has an order book of RM503 million from its construction division and is expected to record improved contribution from its property division given encouraging responses for its properties. Coupled with the contract win, there is a strong earnings visibility going forward.