Reports » Malaysia
Malaysia stock market and companies daily report (February 04, 2013)
Melbourne Welcomes Malaysia Airlines Oneworld
There was an enthusiastic welcome given to Malaysia Airlines’ (MAS) oneworld aircraft when it landed at Melbourne last Friday, with cheers from around 50 travel industry leaders. Melbourne Airport chief executive Chris Woodruff said oneworld was “lucky” to have MAS as a member. He further explained that the airline had been a “part of the Melbourne Airport family” since the opening of the airport in the early 1970s and was a key contributor to the airport’s success. “The growth of Malaysia Airlines’ Melbourne services has also played an important role in supporting the growth of business, education and tourism ties between Victoria and Malaysia,” he added. Woodruff believes that through the oneworld alliance, MAS will become part of the leading global alliance and provide Victorian passengers with the strength, stability and reach of a global partnership. Melbourne Airport celebrated its 100 millionth international passengers last Thursday and Woodruff is looking forward to the next 100 million passengers with many of those being MAS’ passengers.
Significance: MAS Victoria manager Terence Swampillai said that MAS was charmed to be a member of oneworld, which is the best airline alliance for the third time. He expects the oneworld membership to strengthen MAS’ competitive edge considerably as it enables the airline’s customers to enjoy a truly global network.
PETRONAS’ Offer for MISC Sensible
Petroliam Nasional’s (PETRONAS) general offer (GO) of RM5.30 for each MISC shares that it does not already own, is reasonable; said CIMB analysts. This is 19 percent above its last closing price of RM4.45. “Our previous target price for MISC was based on a 30 percent discount to its share option plan (SOP) of RM6.17. While the offer price is 14 percent below the SOP, it is still reasonable as the secondary market is unlikely to value MISC at its SOP in the current weak shipping markets,” CIMB said. CIMB believes that MISC shares should move from its very low level as the GO come as a positive surprise. Furthermore, the company looks likely to be privatised, once the GO has achieved 90 percent acceptance. CIMB also noted that it is PETRONAS’ intention to privatise MISC, with the view to restructure and add value to the company away from the market’s glare, given the weak tanker shipping market that is expected to keep the share price low over the next one to two years. Currently PETRONAS owns 62.67 percent of MISC, EPF (9.66 percent) and Skim Amanah Saham (6.35 percent), leaving 21.32 percent to be mopped out.
Significance: According to CIMB, investors with a longer time horizon, who have recently accumulated MISC stock at attractive valuations, will likely be disappointed as they will not be able to ride an eventual shipping upturn through MISC in the years ahead. Nonetheless, it said the offer price is reasonable under the circumstance, and existing investors should be able to benefit from immediate share price upside.
MBSB Outdoes Its KPI Targets
Malaysia Building Society (MBSB) had surpassed its key performance indicators (KPI) targets for its net return on equity and revenue growth for the fourth quarter of financial year ended 31 December, 2012. The group had obtained 34 percent in net return on equity which was above its target of 15 percent. Revenue growth was also higher at 44.3 percent against its target of 25 percent. The outcome was mainly due to better contributions from its Islamic banking operations via the expansion of personal financing and higher income from conventional business, based on a filing with Bursa Malaysia last Thursday. Furthermore, its net profit for the fourth quarter surged to RM183.6 million from RM83.8 million from a year ago. Revenue for the period stood at RM487.5 million, up 40.4 percent from RM347.1 million a year ago. For the full year, the group’s net profit grew 37.25 percent to RM446.7 million while revenue was RM1.832 billion, up from RM1.269 billion the previous year. For 2012, MBSB proposed a final dividend and special dividend of net 6.75 sen and 13.5 sen respectively.
Significance: According to president and CEO Datuk Ahmad Zaini Othman, the group’s outstanding performance was a result of transformation initiatives undertaken by the company in the last four years. The expansion of retail business along with provision of bancatakaful, will-writing and new services at its branches nationwide had contributed significant fee-based income stream for the lender.
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