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Reports Malaysia

Malaysia stock market and companies daily report (June 26, 2014)

June 26, 2014, Thursday, 04:38 GMT | 00:38 EST | 09:08 IST | 11:38 SGT
Contributed by Shares Investment

SapuraKencana Eyes RM10b In Contracts

- SapuraKencana Petroleum unveiled its target to obtain RM10 billion worth of order book this year to ensure its visibility in the next three to four years.

- Year-to-date, SapuraKencana has won several contracts worth a combined RM4.9 billion for domestic and international waters.

- The firm’s management shared that the firm is presently running on an average of 85 percent asset utilisation rate but expects the number to rise as activities pick up in the coming years.

Significance: Securing RM10 billion worth of contracts would help sustain SapuraKencana’s order book at the current level of RM27 billion in the long term.

TSC To Increase Egg Production By 25%

- Teo Seng Capital (TSC) intends to lift its daily egg production from 2.8 million to 3.5 million by 2017.

- TSC will invest RM50 million to open a 109.3 hectare layer farm in Sungai Linggui, Kota Tinggi, which will be developed in four phases over the next three years.

- Despite owning almost 20 farms in Batu Pahat presently, TSC opted to set up the farm in Kota Tinggi due to its closer proximity to Singapore which will translate to better cost efficiency when transporting the eggs to the Republic.

Significance: The move is part of TSC’s business strategy to strengthen and position itself as the largest listed layer farming entity in Malaysia.

WSC To Acquire 49%-Stake In Ship Owner

- Wah Seong Corporation (WSC) has proposed to purchase a 49 percent interest in Alam-PE Holdings (L) for RM106 million.

- Alam-PE operates a fleet of five vessels through its single customer, Alam Maritim (M). The latter’s clients include well-established oil majors.

- The transaction has found favour with the street as Kenanga Research upgrades its rating on WSC to ‘Outperform’ from ‘Market Perform’ with a revised target price of RM2.17, up from RM2.00 previously.

Significance: The proposed acquisition would help reduce revenue volatility risk of WSC’s current project-based income in the oil and gas division.