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Reports Malaysia

Malaysia stock market and companies daily report (June 25, 2014)

June 25, 2014, Wednesday, 06:21 GMT | 01:21 EST | 09:51 IST | 12:21 SGT
Contributed by Shares Investment

Boustead Aims For Greater Growth

- Boustead Plantations aims to increase total plantation area by 20,000 hectare (ha) over the next five years through a greater use of new planting materials and techniques.

- The firm intends to use of new high density planting materials by 300 ha to 400 ha per year and tap on new planting materials to lift oil yield extraction by over 20 percent.

- Since 1999, Boustead has utilised new planting materials developed by its associate research company, Applied Agricultural Resources, to enhance its fresh fruit bunches and oil yield.

Significance: Moving forward, the group aims to use RM420 million of the gross proceeds from its initial public offering to part finance the acquisition of 10,000 ha of plantation land, primarily in Malaysia and possibly other parts of South East Asia, within the next three years.

Kulim To Grow Land Bank

- With its move back into Indonesia in October 2013, Kulim (M)’s expects to expand its oil palm land-bank by about 40,000 ha in central Kalimantan and accelerate its new planting programme.

- The first 500 ha of land clearing for a new planting programme, coupled with the setting up of an 80 ha oil palm nursery, will commence in 3Q14.

- Following that, the programme will facilitate between 5,000 ha and 7,000 ha per annum.

Significance: Limited land in Malaysia has prompted Kulim to diversify its geographical presence into other locations. Papua New Guinea and the Soloman Islands contribute 90 percent of Kulim’s turnover in 2013.

Seacera Proposes 506km Electrified Fence

- Seacera Group has inked a memorandum of understanding with Intelligent Fence (M) to participate in a tender with the home ministry to build, operate and transfer an electricity security fence.

- The tender, is a proposal to install a 506 kilometre electrified fence along the national border of Malaysia and Thailand.

- Intelligent’s chairman, Datuk Mohd Suffian Abdul Aziz, noted the opportunities in this area as the government lost RM5.5 billion in revenue from illegal activities such as pilferage and smuggling.

Significance: Although Seacera could not disclose the value or cost of the proposal, it shared that the proposal offered a recurring income stream.