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Reports Malaysia

Malaysia stock market and companies daily report (May 05, 2014)

May 5, 2014, Monday, 04:47 GMT | 00:47 EST | 09:17 IST | 10:47 SGT
Contributed by Shares Investment

Industrial Property Sector Not To Soften In 2014

- The industrial property market is likely to stay buoyant this year and rental rate for industrial units within the Klang Valley is expected to rise on increasing demand for more warehouse space.

- Property consultant CH Williams Talhar & Wong (WTW) in its 2014 property market report expects supply to tighten further in 2014. This is likely to push up rents in 2014 especially for well-planned high-tech and capital intensive manufacturing industrial parks.

- Citing the National Property Information Centre, WTW said total industrial property buildings grew from 37,507 units in 2008 to 39,035 units in 2013, growing at an average of 0.7 percent annually.

Significance: WTW said there investments totaling 336 projects in the manufacturing sector valued at RM22.5 billion for the first half of 2013, of which 102 projects worth RM2.3 billion would be located in the Klang Valley.

Westports’ 1Q14 Net Profit Surges 38.3%

- Westports Holdings’ 1Q14 net profit rose 38.3 percent year-on-year to RM109 million as revenue jumped 4.1 percent to RM363.2 million from RM348.8 million in the previous quarter. The rise was underpinned by higher container throughput, termination of management service agreement and a lower effective tax rate.

- However, excluding the impact of the management service agreement and the lower effective tax rate, which are non-recurring items, its core net profit would have only increased by 10 percent.

- Westports registered a record high monthly volume of 693,000 twenty-foot equivalent units (TEUs) in March, attributable to robust growth in all trade lanes particularly from Asia-Australasia (+31 percent) and Asia-Africa (+25 percent).

Significance: The record high volume registered came in timely as the company expects its new 600-metre Container Terminal 7, which will increase its total handling capacity to 11 million TEUs to be fully operational by the end of the year.

M&A Securities Maintains “Buy” Rating On Media Prima, Target Price RM2.90

- In a research note, M&A Securities expects robust reception to Media Prima’s stock after the group altered its dividend policy from the 25 percent to 75 percent range to 60 percent to 80 percent. It is also upbeat on digital advertising expenditure, which could grow by more than 10 percent annually.

- The revised dividend policy was anchored by its strong cash flow and retained earnings position, and starting FY14, the dividends are to be paid quarterly or at a minimum of twice a year.

- Media Prima and MCIL Multimedia have joined forces to feature each other’s content on their respective digital portals. A total of 11 million unique visitors are expected from this partnership from the 3.4 million monthly visitors for MCIL and 7.6 million monthly visitors for Media Prima.

Significance: M&A Securities maintains “Buy” rating on Media Prima with a target price of RM2.90, as it foresees Media Prima having a positive footing driven by the favourable economic outlook and various sporting events such as the FIFA 2014 World Cup.