New York: 21:01 || London: 02:01 || Mumbai: 05:31 || Singapore: 08:01

Reports Malaysia

Malaysia stock market and companies daily report (February 27, 2014)

February 27, 2014, Thursday, 06:03 GMT | 01:03 EST | 10:33 IST | 13:03 SGT
Contributed by Shares Investment

FGVH’s 4Q13 Profit Jumps 129.1%

- Felda Global Ventures Holdings (FGVH) reported a 129.1 percent increase in profit to RM498.7 million despite a 4.8 percent fall in revenue from continuing operations to RM3.7 billion for the fourth quarter ended 31 December 2013.

- For the full year, profit was up 21.7 percent to RM981 million while revenue dipped 2.5 percent to RM12.6 billion.

- The decline in revenue was due to lower average crude palm oil realised price and lower fresh fruit bunch average coupled with lower contribution from associates, which was slightly offset by increased contribution from sugar segment. Earnings growth was led by the acquisition of Felda Holdings.

Significance: Despite the challenging conditions, FGVH delivered a final bottom line that was a significant improvement and the group will strive to manage costs as well as exploring new brownfields to moderate the loss of income from ongoing replanting efforts.

SapuraKencana Bids For US$7b Worth Of Deals

- SapuraKencana Petroleum is eyeing US$7 billion (RM23.1 billion) worth of contracts locally and abroad.

- The group is expecting to secure more businesses from overseas, with about 60 percent to 65 percent of its business to come from that segment this year. This compares to 40 percent overseas and 60 percent domestic last year.

- SapuraKencana is actively bidding for contracts in Africa for its drilling business and will continue to develop the Mexican market, with the acquisition of a new heavy lift veseel that was launched in China few weeks ago.

Significance: SapuraKencana would be implementing projects in its order book and continue to bid for more projects globally. Its overall order book stands at US$7 billion.

Maybank Has “Buy” On Time dotCom

- Maybank Research noted Time dotCom’s (TDC) solid results where the company’s 2013 net profit was boosted by deferred taxes while core pre-tax profit was in line with its expectations.

- 4Q13 net profit was RM187 million while core pre-tax profit (excluding Digi dividends) was RM28 million, bring 2013’s core pre-tax profit to RM116 million, 99 percent of the house’s forecast.

- Notably, a dividend policy was announced ahead of expectations, reaffirming TDC’s strong capital management potential. TDC will pay out up to 25 percent of normalized profit after tax for 2014 with scope for higher payouts in future.

Significance: Maybank reiterated its “Buy” call on TDC with an unchanged target price of RM4.40 on the back of the strong results which would allay any operational concerns. TDC remains the purest exposure amongst Malaysia telcos to the secular growth trends of data usage.