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Reports Malaysia

Malaysia stock market and companies daily report (May 06, 2014)

May 6, 2014, Tuesday, 04:53 GMT | 23:53 EST | 08:23 IST | 10:53 SGT
Contributed by Shares Investment

Petronas Inks Contract For Raw Water Supply Within PIC

- Petroliam Nasional’s (Petronas) subsidiary PRPC Water has signed a contract with a consortium comprising of Asia Baru Construction and Putra Perdana Construction for the development of a raw water supply project.

- Situated within Petronas’ Pengerang Integrated Complex (PIC), the consortium will build raw water supply facilities to support Petronas’ Refinery and Petrochemical Integrated Development (Rapid) project and other facilities.

- The project will supply 260 million litres of water per day to PIC, with 30 million litres targeted for public usage. It would provide water to the larger Pengerang Integrated Petroleum Complex as well.

Significance: As a key support infrastructure, the raw water supply project, slated for completion by early 2016, is essential to allow other facilities in the PIC to be operational as scheduled.

Affin IB Research Maintains Buy On IGB REIT

- IGB Real Estate Investment Trust (IGB REIT) registered a 17.1 percent year-on-year increase in net profit to RM57.7 million, from RM49.3 million, for 1Q14.

- Gross rental income grew by a robust 12.6 percent year-on-year to RM114.1 million, from RM101.4 million, underpinned by tenancy renewals and higher rental rates at both Mid Valley Megamall (MVM) and The Gardens Mall (TGM).

- Occupancy rates for MVM and TGM as at 1Q14 stood at 99.9 percent and 98.8 percent respectively.

Significance: Despite the uncertain operating outlook in FY14, Affin IB Research has faith in IGB REIT’s key strengths of stability of occupancy rates, strong visitor and retailer attraction and yield-accretive asset enhancement initiatives and maintains a “Buy” rating with a target price of RM1.34.

Titijaya To Acquire Penang Land For RM126m

- Titijaya Land could acquire a piece of land of 8.3 hectares in the south-eastern part of Penang island from its major shareholder for some RM126 million cash.

- The price translates to RM141.72 per square foot with the site, which is being earmarked for a mixed development worth RM2 billion in terms of gross development value (GDV).

- Titijaya raised RM74.3 million from its public offering last year, of which RM30 million was set aside to acquire new landbank. The group’s cash and cash equivalents stood at RM115.4 million as at 31 December 2013.

Significance: Analysts note that Titijaya has about 221 acres of land with a potential GDV of more than RM4 billion in its portfolio and planned to roll out about RM1 billion worth of projects this year.