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Reports Malaysia

Malaysia stock market and companies daily report (July 30, 2014)

July 30, 2014, Wednesday, 03:00 GMT | 22:00 EST | 07:30 IST | 10:00 SGT
Contributed by Shares Investment


SP Setia Shifts Towards More Affordable Housing Developments

- SP Setia shifts its focus away from high-end development properties as it intends to put up more options of affordable housing over the next five years in Penang. These houses are targeted to fall within the income levels of the people in Penang.

- The move is in response to Setia’s observations where over the past few years, pricing of properties in Penang has grown out of proportion with the income levels of the population.

- Furthermore, ongoing efforts to reduce the nation’s credit risk have caused banks to establish tighter loan policies. As a result, this has adversely impacted higher-end properties, making them to be harder sells since they are more expensive in general.

Significance: The shift in the company’s strategy towards developing more affordable housing has been put to action as Setia already has several development projects under its pipeline, such as the 426-unit condominium, Sky Vista and two other projects in 2016.


Titijaya Casts Sight On More Klang Valley Projects

- Sources have indicated that Titijaya Land is intending to submit a proposal to KTMB for the construction of a commercial building on a piece of land in the Klang Valley.

- The proposal will be subjected to an approval from the Transport Ministry’s Railway Assets Corporation.

- The second proposed project Titijaya is eyeing is a mixed development with a gross development value of about RM1 billion, to be built atop a land parcel measuring less than 4.1 hectare.

Significance: RHB Research noted that Titijaya’s growth prospects are strong, backed by its stable stream of projects while gross margins were above the industry average.


UEM Sunrise Expects Home Demand To Wane

- With the impending implementation of the goods and services tax (GST) on 1 April 2015, UEM Sunrise sees demand for homes tapering off.

- The firm’s executive director, Datuk Izzaddin Idris, mentioned that this was based on trends in countries which have implemented GST.

- He expects a slight dip in margins due to rising cost pressures as well as a transition period as the markets focus more on costs and margins.

Significance: In view of the potential waning home demand, UEM is prepared to delay launches if necessary and revisit some of its existing development plans to cater to current market demand.

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