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Reports Malaysia

Malaysia stock market and companies daily report (July 02, 2014)

July 2, 2014, Wednesday, 04:10 GMT | 00:10 EST | 08:40 IST | 11:10 SGT
Contributed by Shares Investment

AirAsia enters into partnership to form AirAsia Japan

- AirAsia will enter into a partnership with four local companies to restart AirAsia Japan. The partnership, which costs US$70 million, will be with Octave Japan Infrastructure Fund I GK (19 percent), Ratkuten Incorporated (18 percent), Noevir Holdings (9 percent), Alpen Company (5 percent) and AirAsia (49 percent).

- However, the formation of the airline is still pending approvals from the relevant authorities and will only be expect to commence its operations mid next year.

- Presently Japan Airlines’ Jetstar Japan, All Nippon Airways’ Peach Aviation and Vanilla Air dominate the domestic low cost carrier business.

Significance: Fernandes expressed confidence that the strong partnership and new investors will be able to revolutionise the low cost carrier segment in Japan.

Affin Upgrades Hiap Teck To ‘Buy’ With A Target Price Of RM0.92

- Affin Investment Bank upgrades Hiap Teck Ventures to ‘Buy’ from ‘Add’ and raised its target price from RM0.78 to RM0.92 after Hiap Teck posted a higher-than-expected 3Q14 earnings.

- Hiap Teck posted a 6.2 percent year-on-year increase in revenue to RM296.7 million in 3Q14. Core net profit also rose 192.8 percent year-on-year to RM34.9 million.

- The variation of Affin forcast was largely a result of a reversal of tax during the quarter that led to a lower effective tax rate.

Significance: Moving forward, Affin expects buoyant demand for steel products supported by upcoming projects, while the recovery in the global economic outlook will translate into  a recovery in Malaysia’s export demand.

Genting Posts Second Bid For Casino License In Orange County

- Genting Malaysia added a second bid for a casino license in the Orange County area of the Catskills and Hudson Valley in New York.

- Among Genting Malaysia are 15 other players who had submitted 17 bids to the New York Gaming Commission to bid for four casino licences with the deadline falling on 30 June.

- The New York Gaming Facility Location Board stated that bidders seeking to build a casino in Orange County will be required to invest a minimum of US$350 million (approximately RM1.1 billion) in capital.

Significance: Given its proven track record and financial strength, Genting Malaysia is a strong contender to win the licence. The company operates the first and only racino (racing track with a casino) in New York City at the Aqueduct Racetrack. Since beginning operations on 28 October 2011, Genting Malaysia has been the most profitable racino in North America.