Malaysia stock market and companies daily report (January 24, 2014)
January 24, 2014, Friday, 07:31 GMT | 02:31 EST | 13:01 IST | 15:31 SGT
Kossan Poised To Take On 2014 With A Storm
- Kossan Rubber Industries (Kossan), is expecting a big year ahead for the company. With three plants in Malaysia that are due to begin commercial operations in 1H14, and a Jakarta facility which will begin construction in the later part of the year, Kossan is poised to see production increases.
- The three Malaysian plants are estimated to produce up to six billion pieces of nitrate gloves a year. General manager Edward Yip of Kossan expressed at Bursa Malaysia’s “Spotlight on Malaysia 2014” forum on 23/01/14, that opening a plant in Indonesia is a natural step as the price of rubber is cheap, with good supply as well.
- Kossan has allocated between RM70 million and RM90 million of capital expenditure for 2014, as well as sourcing potential joint ventures with relevant players in the rubber industry, chemical producers and state enterprises.
Significance: Based on the Malaysian operations alone, after it commences operations, Kossan is expecting a yearly growth to its bottom line of between 20 and 25 percent. Coupling this when the Indonesian plant is up and fully running, this figure will be much more in 2015.
Capital Expenditure of RM1b Planned; UMW O&G
- A sum of RM1 billion has been planned by UMW Oil & Gas Corp (UMW) this year to strengthen its drilling rig business locally, as well as for its ambitious expansion in Southeast Asia expansion. This comes from the RM1.7 billion raised from UMW’s listing last November.
- Rohaizad Darus, President of UMW expressed that UMW has already used more than RM600 million of the proceeds and they’re now allocating the rest for Capex for 2014. UMW plans to increase the number of its drills from the existing five this year.
- It is eyeing a bigger market share, both locally and in Southeast Asia. UMW is already quite a contender in Malaysia and is aiming to raise its market share by another 12 percent in 2014.
Significance: UMW’s objective is to continue raising its bottom line. Darus explained that with every additional rig into the artillery, UMW is able to expand its revenue base by 20 percent.
AirAsia’s CEO “Named Airline Industry Leader Of The Year”, Views On AirAsia India
- Tan Sri Tony Fenandes, AirAsia group chief executive officer, has been named “Airline Industry Leader Of The Year”. AirAsia expressed in a statement yesterday that Fernandes efforts of pushing the boundaries of the aviation industry was recognised.
- Fernandes said that this past 12 years has been a great journey for AirAsia. On the front of the Indian market, Fernandes was quoted from reports in New Delhi that he is optimistic about his India venture taking off soon as well as changing the travel mood of the country with a population size of 1.3 billion people.
- The AirAsia India is a 49:30:21 joint-venture between AirAsia , Tata Group and Arun Bhatia. It was set up last year with aims to take the skies in September/October 2013 itself, but as a result of a few delays, the potential date has now been pushed to March/April 2014.
Significance: AirAsia is the first foreign airline that has ever been allowed to have got this far in India. It has recently gotten the approval of the directionate general on all its training facilities, and AirAsia is ready to go and believes that a launch in March to April is possible.