Reports » Malaysia

Malaysia stock market and companies daily report (January 02, 2013)

Contributed by Shares Investment

Dominant Enterprise Ventures Into The DIY Material Industry
Dominant Enterprise will tap into the Do-It-Yourself (DIY) furniture material and building material industry this year, as the industry has become more prevalent in South East Asia. Among its businesses include manufacturing environmentally-friendly engineered wood mouldings, laminated wood panel products, distribution and export of an extensive range of wood products worldwide. Its Deputy Managing Director Danny Owee said the company is now focusing on enforcing and expanding its market share in existing markets. This is carried out through continuous innovation and introduction of new products for its customers’ selection. Last year, Dominant began the year on a positive note by improving operational efficiency at its plant in Sungai Buloh. Furthermore, the company had undertaken expansion plans at its factory in Muar and expanded distribution network to broaden its reach to the target markets such as Thailand, the Philippines and Indonesia.On the industry’s outlook, Owee said the laminated wood panel sector showed consistent growth prospects due to its key selling point as an environment-friendly alternative to solid wood, as well as its vast price advantage compared to solid wood.
Significance: The increasing scarcity of solid wood due to the steadily-growing global population has resulted in the greater demand for laminated and moulded wood panel products that the company produces. Despite lower demand and increased competition, the manufacturing division has performed commendably due to its market expansion drive into South East Asia as well as its new product development.

Sentoria’s Unit Plans RM1.5bil Theme Park In Morib
Sentoria Group’s wholly owned unit Sentoria Harta and a government-link fund would jointly undertake a RM1.5 billion theme park project in Morib, Selangor. To be named, “Morib Beach Resort City”, the project will be developed over the next eight to 10 years. “The government-linked fund chose Sentoria because of the success of its Bukit Gambang Water Theme Park in Pahang,” a source said. Sentoria is the developer and operator of the Bukit Gambang Resort City in Kuantan. The construction of the upcoming project in Morib will be commencing in the first half of 2013, comprising of serviced apartments, resort villas and other facilities. The first phase of the Morib development will be the water theme park and accommodation, followed by the safari park. The 121 hectare land that is estimated to be worth around RM20 million is owned by the government-link fund. It is located close to the vicinity of Kuala Lumpur and Putrajaya.
Significance: Sentoria Harta will develop the land at its own cost and expense, including the land premium. The company expects the returns on gross development value to generate between 20 and 30 percent to its gross profit margin.

OCK Aims To Transfer To Main Market
The telecommunications network services provider, OCK Group is expected to transfer to the Main Market of Bursa Malaysia most likely in May or June this year. Its group managing director Sam Ooi said that the move up from the Ace Market was part of its strategy to clinch more businesses, both locally and abroad. OCK has seen steady growth in the past few years. The company is expected to benefit from the allocation of the 4G long-term evolution spectrum band as there would be more job opportunities to upgrade and optimise telecommunications stations. Besides that, it is also looking for more opportunities in the South-East Asia region. For instance, OSK believes there is a demand for telecoms infrastructure in Thailand which might need contractors like OCK to upgrade the system there. Kenanga Research has point out that although one of the company’s weaknesses was its small market capitalisation, its advantage is its position as the biggest tier-one market player in the country.
Significance: Currently OCK is bidding for a contract in Vietnam and expects the outcome to be announced in the first quarter of next year. The company is optimistic of its domestic and global market prospects and expects a double-digit growth in revenue this year.