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Reports Malaysia

Malaysia stock market and companies daily report (July 14, 2014)

July 14, 2014, Monday, 09:44 GMT | 05:44 EST | 14:14 IST | 16:44 SGT
Contributed by Shares Investment

Aeon Acquires Land To Develop Malls

- Aeon Co (M) acquired a piece of freehold land in Batu Pahat, Johor, for RM34.9 million to build a new shopping centre.

- The purchase of the land is in line with Aeon’s strategy to accelerate the expansion of its retail business through opening of new malls and outlets.

- The acquisition will only be completed in 2016 and given its large net cash balance of RM182.5 million, the construction cost would not significantly strain its balance sheet.

Significance: Affin Investment Bank has reaffirmed its “Buy” rating on Aeon with a target price of RM4.05 for its healthy business model, sensible growth strategy and steady growth in its property management division.

Bina Darulaman Expands Kedah Presence

- Bina Darulaman (BD) has acquired 485 hectare (ha) of land spanning five districts in Kedah for RM204 million.

- The acquisition, comprising of 21 land parcels, will be focused on residential projects.

- The move will lift BD’s total landbank in Kedah to about 1,092ha.

Significance: The acquisition is in line with BD’s strategy to increase its landbank in Kedah as property development is a major contributor to the firm’s revenue and bottom line. In FY13, property development accounted for 37 percent of BD’s revenue.

Sumatec Moves Into Kazkhstan Oil Fields

- Sumatec Resources is buying Borneo Energy Oil and Gas for US$250 million in cash and stock.

- Borneo Energy owns Buzachi Neft, which engages in exploration, production and trading of oil and natural gas.

- Buzachi has two subsoil use contracts, which expire in November 2026, to explore and produce oil and gas in two fields within Kazakhstan. The fields started production in 2007, churn out between 400 and 600 barrels of oil daily and have reserves of 68 million barrels of oil.

Significance: The acquisition marks Sumatec’s foray to be a large independent upstream oil and gas player.