Reports » Malaysia

Malaysia stock market and companies daily report (March 19, 2013)

Contributed by Shares Investment

AirAsia X Sets For June Listing
AirAsia X, the long-haul affiliate of AirAsia is set for a June listing on the Main Board of Bursa Malaysia after having deferred its initial listing planned in the first quarter of this year, said AirAsia Group Chief Executive Tan Sri Tony Fernandes. AirAsia X submitted all listing-related documents, including listing application and prospectus, to the Securities Commission for an approval and pending reply. “This time it is going to happen. We are looking at a June listing,” Fernandes said, referring to the aborted AirAsia X’s initial listing plan. Through the proposed Initial Public Offering (IPO), AirAsia X is expected to raise about US$250 million (RM775 million), or 97 sen per share, where half would be utilised to repay bank borrowings and 21.5 percent for capital expenditure. The medium to long-haul carrier was initially targeted to be listed in the first quarter but the plan was later shelved.
Significance: Fernandes said AirAsia X’s listing would be different as the airline was planning to diversify and enlarge its shareholding ownership, by giving first priority of share subscription to Malaysians who have flown AirAsia X and contributed to the success of the airline

TdC Remains A “Buy”, Say Analyst
TIME dotCom’s (TdC) outlook remains bright, underpinned by its new ventures such as node fiberisation and global bandwidth, as well as series of synergistic acquisitions undertaken. Hong Leong Investment Bank (HLIB) Research believes Tdc is well positioned to benefit from the exponential data demand growth from Thailand following its recent 3G spectrum award. According to the Business Monitor International, 3G subscribers in Thailand are expected to increase more than three times from 10.1 million in 2012 to 33.2 million by 2016. On top of that, the company is planning to secure more indefeasible right of use (IRU) sales in the first half of 2013, which is a contractual agreement between the operators of a communications cable and client. The brokerage also foresees Tdc to gain as cellular telecommunications companies (cellcos) fiberise radio nodes to support 4G rollout in Malaysia. “Cellcos (DiGi and Celcom) may revert back to bandwidth leasing from fixed players rather than building it themselves, given that they are late in launching LTE service compared to Maxis,” said the brokerage.
Significance: HILB Research has maintained its “Buy” call on Tdc at RM3.98 with higher target price of RM4.60 from RM4.56. Meantime, the research house believes the possible catalyst for the company would be new acquisitions, when integrated as a group, will further enhance earnings due to volume synergies and the utilisation of assets at owner-cost prices.

Public Bank To Maintain The Dividend Pay-out For Year 2013
Public Bank expects to maintain the same dividend pay-out to its shareholders for 2013 financial year. “We hope to maintain our dividend pay-out rate in line with our growth,” Co-Chairman Tan Sri Thong Yaw Hong told shareholders when chairing the group’s Annual General Meeting here yesterday. The total dividend paid and payable for last year amounted to RM1.75 billion and represented a total pay-out of 45.3 percent of the group’s net profit for 2012. He also said that the group had no plans for dividend reinvestment or capital share buyback and is expecting to maintain the earnings momentum and record satisfactory performance in 2013. The bank will focus on local lending businesses while continue to promote Internet banking and encourage more customers to use it in order for us to achieve a high market share. Its overseas business meanwhile saw an expansion particularly in Hong Kong and Indochina markets.
Significance: The banking group’s pre-tax profit rose to RM5.104 billion in the financial year ended 31 December 2012 compared with RM4.878 billion in the same period in 2011. Its revenue for the period surged to RM14.058 billion from RM12.756 billion previously.