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Reports Malaysia

Malaysia stock market and companies daily report (July 01, 2014)

July 1, 2014, Tuesday, 04:27 GMT | 23:27 EST | 07:57 IST | 10:27 SGT
Contributed by Shares Investment

MRC Wins 64 acres Project MX-1 Bid

- Malaysian Resources Corporation (MRC) brushed past five other property developers to secure the bid to develop a coveted parcel of land, measuring 64 acres, known as Project MX-1, into a mixed development.

- Project MX-1 is situated within the Kwasa Damansara project that is being positioned as the largest township development in the Klang Valley.

- The project has an estimated gross development value of RM7 billion.

Significance: The whole development within the Project MX-1 land, including sales of the properties, is expected to be fully completed within 12 years.

I-Bhd Targets 50% Earnings From Recurring Sources

- I-Bhd aims to derive half of its net profit from recurring income in the leisure and property investment segments within five years’ time.

- The firm intends to increase its property development segment’s revenue to RM500 million and generate RM100 million per annum from its leisure segment in five years.

- I-Bhd has been building up its investment property portfolio concurrently with various property launches. With turnover from the property development sector at RM90 million last year, I-Bhd is eyeing a double-digit growth, or an additional RM100 million per year, to achieve its goal.

Significance: The move will help support I-Bhd’s newly announced 30 percent dividend policy.

RHB Fails To Acquire Indonesia Bank Mestika

- RHB Capital has failed to get approval from the Financial Services Authority of Indonesia for its acquisition of a 40 percent stake in Indonesia’s Bank Mestika Dharma.

- The period to satisfy the conditions of the sales and purchase agreement for the RM651.1 million acquisition expired on 30 June.

- The abortion of acquisition of Bank Mestika did not surprise analysts as it has been dragging for five years.

Significance: Analyst felt that the termination of the acquisition would not derail the banking group’s expansion plans and the group would continue to look for opportunities to expand its business throughout ASEAN.