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Reports Malaysia

Malaysia stock market and companies daily report (May 21, 2014)

May 21, 2014, Wednesday, 06:11 GMT | 02:11 EST | 10:41 IST | 13:11 SGT
Contributed by Shares Investment

7-Eleven’s IPO 4.8 Times Oversubscribed

- 7-Eleven Malaysia Holdings (7-Eleven) said that its initial public offering (IPO) for retail investors has been 4.8 times oversubscribed. The group received a total of 12,761 applications for 195.8 million issue shares.

- 7-Eleven is the largest convenience store operator in Malaysia, having a nationwide network of 1,583 stores, with a market share of 82 percent of the standalone convenience store segment as of March 2014.

- It plans to further consolidate its market position by expanding its store network and to invest in supply chain and IT infrastructure to facilitate growth and further improve operating efficiency and productivity.

Significance: The company will raise total gross proceeds of RM250.3 million, which will be utilised for capital expenditure, working capital and payment for the listing expenses.

YTL Corp Earnings Jumps 27.2%

- YTL Corporation’s (YTL Corp) earnings increased 27.2 percent to RM1.2 billion for the nine months ended 31 March 2014 from RM944.2 million in 9M13. This was despite a marginal 1.9 percent decline in revenue to RM14.7 billion due to a lower contribution from its construction and utility divisions.

- YTL Corp noted that its stronger bottom line was due to its cement, property development and investment divisions, which registered stronger growth.

- Particularly, contributions from the uniquely-styled Fennel and Capers condominium developments in its Sentul urban regeneration project and consolidation of results from Starhill Global REIT in Singapore helped drove growth. Its water and sewerage, mobile broadband and power generation sub-segments also bolstered profit for the period under review.

Significance: YTL Corp expects to achieve a satisfactory performance for FY14 across all its segments, except for utilities, which is likely to face pressure in both margin and sales volume, given the increase in generation capacity into the Singapore electricity market.

Uzma In RM95.3m Move To Expand Service Offering

- Along with three individuals, Uzma has proposed to acquire a Thai company, MMSVS Group Holdings, for US$29.7 million (RM95.3 million).

- MMSVS provides repair and maintenance of exploratory and production wells services by its utilising hydraulic workover units (HWU). Presently, MMSVS owns a fleet of seven modern HWUs and one truck mounted service rig.

- Over the last eight years, MMSVS has expanded its operations through Southeast Asia to take advantage of the region’s opportunities.

Significance: The inclusion of the HWUs to Uzma existing suite of technologies will widen the latter’s oil and gas service offering to its clients.