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Reports » Malaysia

Malaysia stock market and companies daily report (December 21, 2012)

December 21, 2012, Friday, 04:44 GMT | 23:44 EST | 09:14 IST | 11:44 SGT
Contributed by Shares Investment


Aeon Credit Service Post Strong Results
AEON Credit Service (ACSB) was among the top gainers on Bursa Malaysia in yesterday morning’s early session. The company, which deals in the business of credit, climbed 12 sen or 0.99 percent to RM12.20 at mid-morning, after posting encouraging financial results yesterday.The company’s pre-tax profit surged 41.5 percent to RM129 million at the back of a 34.2 percent revenue growth for the nine months ended 20 November, 2012. The results were driven by continued business growth combined with improved cost efficiency from robust growth in receivables in the year and lower ratio of net impairment. According to HwangDBS Vickers Research, the results were within its expectations, led by healthy loan growth in personal and vehicle financing. It expects the growth in vehicle, general and personal financing to continue strongly while the credit cards business softens due to Bank Negara’s tighter lending guidelines for credit cards issuance. The share price closed 3.5 percent higher at RM12.50 with 0.4 million shares traded.
Significance: The research house has maintained its “hold” recommendation on ACSB with a revised target price of RM11.30 from RM9.80  previously. This is based on 9.5 times calendar year 2012 earnings per share as it rolls forward the valuation base to 2014.

Chin Well Expects 40% Revenue Growth From DIY Fastener Segment
Chin Well Holdings aims to double the revenue contribution from its Do-It-Yourself (DIY) fastener segment to 40 percent from the current 20 percent by 2014. In a statement Thursday, its managing director Tsai Yung Chuan pointed out opportunities to seize in the DIY segment, in line with evolving consumer lifestyles. Tsai said end-users are increasingly preferring hands-on approach in household repairs, restoration and refitting works. Chin Well is currently collaborating with DKSH Holdings to capture the growing demand of DIY tools. “To this end, we established a 50-50 partnership with globally-renowned DKSH Holdings to set up Swisstec Sourcing Limited. This company will source, sell and market fasteners, hand tools and power tools for DIY customers in Asia and Europe,” he said. The company intends to invest US$2 million in Swisstec by December 2012, which would be financed via internally-generated funds.
Significance: The group manufactures and supplies a wide range of fasteners used in the construction of highway guard rails, power transmission towers, furniture and other applications. Chin Well supplies its fasteners globally, including various countries in the Eurozone and South East Asia.

Tan Chong Is Optimistic With Local-assembled Subaru XV
Tan Chong Motor Holdings unit, Tan Chong International through its wholly owned subsidiary Motor Image Group expects to sell five thousand units of the local-made Subaru XV, next year. Tan Chong International is part of the Tan Chong Group, which is the sole and master distributor of Japanese Nissan vehicles in Malaysia. According to its executive director Glenn Tan, this is the first time that Fuji Heavy Industries, the Subaru’s carmaker allowed its vehicles to be assembled outside of Japan. It also indicates its confidence in Tan Chong’s capability as the local assembling and marketing arm of Japanese vehicles. More than 5,000 units of Subaru vehicles will be produced annually, whilst at least 65 percent will be exported to Indonesia and Thailand, while the remaining will be distributed locally. Moving forward, the carmaker plans to introduce seven more sales and distribution outlets in Malaysia and another 33 outlets overseas.
Significance: Tan Chong is of the opinion that this opportunity will allow the company to widen its vehicle distribution network. The carmaker also expects its top line for the three markets to increase more than tenfold within the first year of the Malaysia-assembled Subaru XV’s debut.