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Reports Malaysia

Malaysia stock market and companies daily report (February 14, 2014)

February 14, 2014, Friday, 05:26 GMT | 00:26 EST | 09:56 IST | 12:26 SGT
Contributed by Shares Investment

Malaysia Hits Record FDI In 2013

- Malaysia recorded a new all-time high foreign direct investment (FDI) of RM38.8 billion in 2013, which was a 24 percent increase over 2012’s RM31.1 billion and 3.9 percent higher than the last record of RM37.3 billion achieved in 2011.

- According to International Trade and Industry (MITI), the increase compared favourably with the increase in global FDI of 11 percent, 6.2 percent in developing countries and 2.4 percent in Southeast Asia.

- A record of RM161.1 billion private investments were realised in 2013, which was 14.9 percent higher than RM140.2 billion recorded in 2011.

Significance: It is noted that many large corporations have chosen Malaysia for the regional and global operations to take advantage of the country’s strong ecosystem and this trend will gain momentum given the government’s policy in promoting a conducive business environment.

Dialog’s 2Q13 Results Are Lifted On Projects In Pengerang

- Dialog Group’s net profit jumped 39.8 percent year-on-year to RM66.4 million as revenue increased RM694.2 million from RM503.1 million for its second quarter ended 30 June 2013.

- The improved performance was due to continuing engineering, procurement, construction and commissioning activities at the Pengerang Deepwater Petroleum Terminal and other on-going projects. Its international operations revenue from New Zealand, Singapore, Middle East, Africa and Thailand was also higher.

- Dialog is planning to continue to invest in upstream ventures and enhance its capabilities to increase its involvement in the development of marginal fields and the rejuvenation and redevelopment of mature oil fields.

Significance: Dialog is poised to benefit from the positive oil and gas industry outlook given that the demand for tank storage facilities is also expected to increase and the development of Pengerang Deepwater Petroleum Terminal will provide increased opportunities as well.

Westports Achieves 14.8% Rise In FY13 Revenue

- Westports Holdings sustained its uptrend and posted a 20.6 percent rise in net profit to RM435.3 million on the back of a 14.8 percent increase in revenue to RM1.7 billion for the full year ended 31 December 2013.

- The improvement was mainly led by an increase in container throughput, which increased 8 percent to 7.5 million Twenty-foot Equivalent Units (TEUs) for the year. For the quarter, container throughput volumes increased 12 percent year-on-year to 2 million TEUs.

- Going forward, the company expects its container throughput volume to grow between 5 percent and 10 percent in 2014, driven mainly by both the transshipment business as well as the import and export segment. It is adding another terminal, expected to be fully operational by end-2014, to support the growth.

Significance: RHB Research maintained its “Buy” rating on the company with a higher fair value of RM2.91 (from RM2.84), noting that its margins held up well owing to the economies of scale that mitigated the rise in overall costs.