Reports » Malaysia

Malaysia stock market and companies daily report (March 01, 2013)

Contributed by Shares Investment

Tune Ins 4Q Profit Doubles After Consolidating New Subsidiary
Tune Ins Holdings’ net profit for its fourth quarter ended 31 December,2012 grew more than double to RM18.03 million from RM6.68 million a year earlier. This includes consolidated income from a subsidiary, Tune Insurance Malaysia (TIMB) which it acquired last year. The acquisition helped Tune to increase its revenue to RM90.23 million in the fourth quarter, from RM15.72 million previously. Full-year net profit climbed to RM41.48 million from RM27.26 million a year earlier, while revenue was higher at RM226.38 million against RM55.87 million. Going forward, Tune Ins expects its bottom line to grow in FY13 as the insurer expands its product range and capitalise on demand for travel insurance. The company which was listed on 20 February this year, had secured market interest by virtue of its links with low-cost carrier AirAsia.
Significance: Tune Ins is a unit under the Tune Group banner which is jointly-owned by AirAsia founders Tan Sri Tony Fernandes and Datuk Kamaruddin Meranun. As such, Tune Ins’ insurance products can be crossed sold to customers of AirAsia and Tune Hotels as a primary strategy to grow the insurer’s business.

Supermax Maintains Momentum
BIMB Research Securities is maintaining their “Buy’ call for Supermax Corporation at RM1.80 with a target price of RM2.28. The price of latex has stabilised for the past three months, averaging slightly above RM6 per kg, thus the research house expects margins for the coming quarters to remain stable. The expansion of surgical glove capacity at the Sungai Buloh plant is well underway with the commissioning of five out of the seven lines planned in May 2012. The remaining lines will be commissioned in stages. Furthermore, Supermax is also expanding its nitrile division in plants Number 10 and 11 in Meru, Klang, over the next 12 months. These new plants will have the flexibility to switch between natural rubber and nitrile gloves. The plants are expected to be completed in the fourth quarter of financial year 2013. Production capacity at that point will increase by 6.8 billion pieces, raising Supermax’s current nitrile capacity of 5.2 billion pieces per year to 12 billion pieces.
Significance: With the stabilised latex price, the research house does not expect any great changes in the company’s earnings trend, thus maintaining FY13 earnings forecasts at RM129.1 million and FY14 at RM138.6 million.

Mah Sing Aims For RM3b Sales
Mah Sing Group has targeted its 2013’s revenue of at least RM3 billion, which represents a 20 percent increase over the last year. According to group managing director Tan Sri Leong Hoy Kum, Mah Sing plans to launch projects worth RM3.7 billion this year to support its sales target. Its projects in Greater Kuala Lumpur and Klang valley, Penang, Johor Bahru, and Sabah are expected to make up the bulk of 2013’s sales target of 62 percent, 13 percent, 20 percent, and five percent respectively. Besides on-going projects, Mah Sing has six new projects countrywide, which will drive the growth in this year. The group posted RM230.6 million of full year net profit for FY12, a 37 percent increase from last year at the back of RM1.78 billion revenue. Mah Sing believes the group is in a strong position to continue its expansion drive via land banking exercises and development activities.
Significance: According to the group, the strong unbilled sales position will enable visibility over near term performance and assures a steady stream of cash flows and liquidity. Mah Sing’s unbilled sales combined with remaining gross development value from its new and existing projects and land deals are estimated at approximately RM18.9 billion, as at 31 December 2012.