Reports » Malaysia

Malaysia stock market and companies daily report (March 06, 2013)

Contributed by Shares Investment

Eversendai Clinches US$28.5m Azerbaijan Job
Eversendai Corporation clinched a US$28.5 million (RM87.3 million) job for the Crescent City project in Baku, Azerbaijan. The job was awarded by the Crescent City developer, Gilan Holding LLC to the company’s subsidiary, Eversendai Engineering LLC in Dubai. It involves the supply, fabrication and installation of structural steel works for a 41-storey office tower, which is part of the project’s first phase of development. Work will commence this month with an expected completion date in August next year, according to the executive chairman and group managing director of Eversendai, Datuk AK Nathan. Over the last two years, Eversendai had secured a few complex fabrication projects which led to a slight delay in recognising the potential higher revenue and its corresponding profits. Currently, the company’s order book stands at RM1.6 billion with over 20 major projects.
Significance: The group recently reported a revenue and net profit of RM1.02 billion and RM121.7 million, respectively, compared with RM1.03 billion and RM131.6 million last year. The managing directors is optimistic that revenue target of RM2 billion is achievable within the next five years, via organic growth and acquisitions.

CelcomAxiata Posts Highest Earnings Ever
CelcomAxiata recorded its highest ever earnings before interest, tax, depreciation and amortisation (EBITDA) at RM3.45 billion for the financial year ended 31 December, 2012. The 7.1 percent growth from RM3.22 billion a year ago, was driven mainly by contributions from voice, SMS, mobile broadband and smart spending programme. Company revenue for 2012 stood at RM7.74 billion, a 7 percent growth compared with RM7.23 billion a year ago while its profit after tax and minority interests (PATAMI) stood at RM2.2 billion, up 5.1 percent from a year ago. Meanwhile Celcom, a wholly-owned subsidiary of Axiata, reported a 3.6 percent increase in revenue for its voice segment to RM4.6 billion in 2012 while the non-voice revenue stood at RM2.73 billion, a 10 percent increase from a year ago. Celcom plans to invest RM1 billion worth of capital expenditure this year, with RM300 million invested on information technology and network expansion. Chief executive officer Datuk Seri Shazalli Ramly stated that Celcom was allocating RM100 million as capital expenditure to roll out its LTE programme with the commercial launches to be announced in the second quarter of this year.
Significance: At the end of 2012, its total subscribers reached 12.7 million. With the inclusion of the mobile virtual network operators (MPOV) such as XOX and Tune Talk, Celcom, which is the main pillar of Axiata Group had overtaken Maxis in terms of number of subscribers.

Ingenuity Consolidated To Grow Telco Distribution And Services Divisions
Ingenuity Consolidated, one of the nation’s leading information and communication technology (ICT) distributors expects its telecommunications distribution and services divisions to grow and gain a strong foothold in the ICT industry. According to chief financial officer Kenny Khow, the management expects to secure new distribution rights for other key ICT product trademarks that the group’s ICT distribution network does not own currently. In addition, the management plans to reinforce its sales team to enable the group to service and establish closer links with its potential and existing customers. “It is especially for customers that are located far from the group’s five branches in Penang, Sabah, Sarawak, and the headquarters in Klang Valley,” Khow said. The management also decides to introduce at least three outlets in Johor, Malacca, and Ipoh to further expand its ICT distribution network,which is subject to further market studies and assessment.
Significance: Ingenuity has just undergone a consolidation process and streamlining of its functions and processes. Coupled with the better performance from its newly acquired ICT distribution division and business solutions division, the firm staged a turnaround for its bottom line of RM5.874 million for the nine month period ended 31 December 2012, compared to a loss of RM1.913 million previously.