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Reports Malaysia

Malaysia stock market and companies daily report (December 16, 2013)

December 16, 2013, Monday, 04:57 GMT | 23:57 EST | 09:27 IST | 11:57 SGT
Contributed by Shares Investment

MMH Opens Biggest Outlet At Seremban 2

- Mydin Mohamad Holdings (MMH), a local hypermarket operator, announced the opening of its 13th hypermarket spanning 950,000 square metres and offers 250 retail lots for rent. The new outlet is the company’s biggest outlet in the country and is situated at Seremban 2.

- Seremban 2 was strategically chosen as the population of the area has reached to between 100,000 and 150,000 people, on top of a booming township.

- The new hypermarket, Mydin Seremban 2, had also introduced the self-scanning system which represents a new revolution to improve operational efficiency. With the introduction of the new technology, customers would require less time to make payment and need not queue for long to wait for their turn.

Significance: MMH is planning to open five more hypermarkets in 2014, with an estimated investment of RM650 million. The planned outlets, are expected to be opened between March and April 2014, one each in Selangor, Terangganu and Pelangi Indah, and two in Johor Bahru.

Petronas Seeking High LNG Prices For KGC Contract

- Petronas is looking to increase the prices for the two million tonnes of liquefied natural gas (LNG) a year it supplies to Korea Gas Corporation (KGC). Petronas’ 20-year supply contract with KGC began in 2008, and prices are subjected for review every five to eight years.

- According to sources, Petronas would be happy if they could get above 13 percent of crude oil prices. While another source quoted the Malaysian state-run company is aiming to renegotiate its contract with KGC, to 13 to 13.5 percent of crude oil prices, and that the current pricing is below 10 percent of crude oil prices.

- Long-term LNG prices increase of around 13 percent of crude oil prices would put Malaysian LNG prices into South Korea, at around $14.50 per million British thermal units (mmBtu). Current LNG spot prices are around $19 mmBtu.

Significance: Though the deal has yet to be finalised, KGC’s options are limited, given strong regional demand for LNG and South Korea’s growing dependence on the fuel to feed its power plants, due to cuts in nuclear power.

Technodex Clinches RM7.4m Contract

- Technodex Solutions, a wholly-owned subsidiary of Technodex, announced that it had entered into a contract with the Malaysian government to provide services for the application enhancement of the Property Information System Malaysia at a contract sum of approximately RM7.4 million.

- In a press statement released on the Malaysian Exchange, Technodex mentioned that the contract is for three years and deemed to have commenced on 22 June 2013. It shall continue to be in force for a period of 24 months and shall expire on 22 June 2015.

- Technodex Solutions has an option to apply to the government in writing, for an extension of the contract period, not less than three months to its expiry date.

Significance: The contract is expected to contribute positively to Technodex’s earnings for the financial years ending 30 April 2014 and 30 April 2015. 1H13, Technodex reported a net loss of RM521k on the back of RM6.9 million in revenue primarily derived locally.