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Reports Malaysia

Malaysia stock market and companies daily report (May 07, 2014)

May 7, 2014, Wednesday, 04:45 GMT | 23:45 EST | 08:15 IST | 10:45 SGT
Contributed by Shares Investment

Encorp’s Major Shareholder Launches General Offer

- Federal Land Development Authority’s investment arm, Felda Investment Corp (FIC) will make a mandatory general offer for Encorp at RM1.55 per share. Encorp’s shares last traded price was RM1.53 before its suspension pending the announcement.

- On 6 May, FIC paid RM239.7 million to buy a 49.45-percent stake in Encorp from the latter’s major shareholders, Lavista and Pegang Impian Holdings.

- Encorp’s FY13 net profit jumped more than five-fold to RM61.1 million, from RM12.1 million a year earlier, due to higher sales and progress of works achieved by its property division.

Significance: The offer price is close to Encorp’s recent intra-day high of RM1.62 set on 2 May, which was its highest since 20 February 2008.

Hartalega 4Q14 Net Profit Slips 21.1%

- For the quarter ended 31 March, Hartalega Holdings recorded RM280.4 million in revenue, up 3.9 percent compared to RM269.8 million a year earlier, driven by continuous expansion in production capacity and increase in demand.

- However, lower average selling price, higher staff costs as well as electricity and maintenance expenses dragged earnings-before-interest-and-taxes margin down 5.1 percentage points to 25.1 percent.

- Consequently, net profit for the period fell 21.1 percent to RM49.2 million.

Significance: Despite a downward pressure on average selling prices as a result of intensified competition, Hartalega is confident of maintaining its position as a profitable glove manufacturer on back of its expansion plans and technological innovation.

Parkson To Build 3 Stand-Alone Shopping Malls

- Parkson Holdings aims to build stand-alone malls in China in first half of 2015, followed by malls in Cambodia and Malaysia in 2017. Parkson further intends to introduce 30 new brands each from China and Malaysia by the end of 2014 and 100 new brands by 2016 in each country.

- The company’s management has allocated RM50 million for the expansion of its brand portfolio this year.

- Additionally, in view of the massive retail potential in Johor, the group targets to open six more Parkson department stores there within the next three years.

Significance: The expansion of its brand portfolio is part of its strategy to re-brand itself as a lifestyle brand and further increase the proportion of its own house brand to 40 percent of its product portfolio within the next five years.