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Reports Malaysia

Malaysia stock market and companies daily report (June 05, 2014)

June 5, 2014, Thursday, 06:00 GMT | 02:00 EST | 09:30 IST | 12:00 SGT
Contributed by Shares Investment

HLIB Research Positive On BP’s Outlook

- Hong Leong Investment Bank (HLIB) Research is projecting Boustead Plantations’ (BP) core net profit in 2014 to jump by 74.7 percent to RM119.9 million on the back of higher average crude palm oil (CPO) price assumption of RM2,700 per tonne against RM2,353 per tonne achieved in 2013. HLIB expects core net profit to remain flattish at RM116.4 million for 2015.

- Notably, BP’s oil plantation assets average 14 years with 59 percent of its land bank at its prime mature stage at the end of last year.

- 45.3 percent of BP’s proceeds from the initial public offering will be utilised for the acquisition of plantation land while 42 percent goes towards the repayment of money owed to Boustead Holdings.

Significance: HLIB has a long-term positive outlook on the oil palm sector and expect BP’s 246.8 hectares of land bank in Balau estate as well as its replanting programme with the use of new planting materials to improve BP’s overall yield in the long term. The house valued BP at RM1.63 per share.

Southville City Rakes In RM600m In Sales For Mah Sing

- Mah Sing Group raised its gross development value (GDV) for its Southville City@KL South project to RM8.3 billion, up from the preliminary RM5.1 billion.

- It attributed the higher GDV to the township’s master plan, which now includes a new commercial component. It will now feature high-rise commercial blocks comprising office towers, a shopping mall, small-office, home-office, serviced apartments and possibly hotels, versus the original plan for low-rise shop offices.

- The take-up rate for Southville City’s latest phase – Avens Residence – was 80 percent sold as of last weekend. Thus far, Southville City has already generated RM600 million in sales.

Significance: HLIB Research maintains a “Hold” on Mah Sing and raised its target price to RM2.47 from RM2.40. The house believes it is premature to turn aggressive on property developers given the uncertain outlook from macro and sector headwinds.

YTL Power International Acquires 60% Stake In KJS

- YTL Power International will acquire a 60 percent stake in Konsortium Jaringan Selangor (KJS) from Kumpulan Darul Ehsan (KDEB) and Ingres Software (IS) for a consideration of RM49.8 million.

- Following the completion of the acquisition, KJS will become a subsidiary of YTL Communications and indirect subsidiary of YTL Power.

- KJS engages in the planning, implantation and maintenance of telecommunication towers and telecommunication-related services and have secured a 30-year management service agreement with the Selangor state government till 2029.

Significance: YTL expects the acquisition to have a positive contribution to its earnings in the medium and long term.