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Reports Malaysia

Malaysia stock market and companies daily report (June 11, 2014)

June 11, 2014, Wednesday, 06:46 GMT | 01:46 EST | 10:16 IST | 12:46 SGT
Contributed by Shares Investment

Eco World Aims For RM3b Sales Target In FY15

- Eco World Development Group is on track to hit its RM2 billion turnover target for FY14 and has casts its sights on a RM3 billion top line goal for FY15.

- With the completion of an asset-injection exercise in October, Eco World expects to triple its land bank from 1,326 acres to 4,433 acres across the Klang Valley, Iskandar Malaysia and Penang. The exercise will lift the gross development value of Eco World’s projects from RM13.5 billion to RM43.5 billion.

- In Sydney, Australia, Eco World intends to build 300 apartment units on a 1.18-acre plot of land sitting on the Southern fringe of the Parramatta CBD Retail Precinct. The project is slated to begin by early 2015.

Significance: Eco World, which has 11 ongoing projects, recorded RM1.1 billion in sales as of 31 March 2014 for the fiscal year ending 31 October 2014 (FY14).

Ekovest To Get RM117m Facilitation Fund

- Ekovest’s subsidiary Ekovest Properties (EPSB) has entered into a facilitation fund agreement worth RM117 million with the Malaysian government and Bank Pembangunan Malaysia for a grant provided to EPSB’s commercial development known as The Gateway@KL Bund.

- The project will be developed on a 5.87-hectare land near Setapak and within Precinct 1 of the River of Life project. It is also an entry point project identified under the Economic Transformation Programme.

- The grant is to facilitate the development of the project, consisting of 300 units of PR1MA affordable homes and 320 units of Riverfront service apartments and other mix developments. The development would build the necessary facilities and infrastructure required.

Significance: The development is expected to have huge spillover effects and high strategic impact to economic development.

Top Glove Brings Annual Capacity To 45b Units

- Top Glove Corporation is expecting its capacity to rise to 45 billion units a year with the addition of two plants, bring the group’s total number of factories to 29.

- As of October 2013, Top Glove’s production capacity was 43.9 billion units per annum from its factories in Malaysia, China and Thailand.

- Despite the abundance of supply that led to a lower average selling price on the back of declining raw material costs, Top Glove remains optimistic on the company’s outlook as rubber gloves will always be in demand and is recession-proof.

Significance: While Top Glove is positive on the outlook for gloves, the challenges are real and CIMB Research expects margins to be compromised as the rubber industry continues to operate in a highly competitive and tough environment.

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