New York: 09:12 || London: 12:12 || Mumbai: 17:42 || Singapore: 20:12

Reports Malaysia

Malaysia stock market and companies daily report (May 26, 2014)

May 26, 2014, Monday, 05:26 GMT | 01:26 EST | 09:56 IST | 12:26 SGT
Contributed by Shares Investment


Felda Establishes JV For Rubber Production And Export In Cambodia

- Felda Global Ventures Holdings’ (Felda) subsidiary has entered into a joint venture agreement and shareholders’ agreement with Co-Op Village Co to establish a joint venture company in Cambodia with equity participation between Felda and Co-op Village to be 75:25 respectively.

- The joint venture company will produce and export CSR 10 rubber blocks or other classification of processed rubber.

- The joint venture is expected to be completed in 3Q14.

Significance: As a result of the joint venture, Felda and Co-op Village Co will be able to collaborate and leverage on each other’s strength and areas of expertise.  This is in line with Felda’s plan to increase revenue significantly in the next seven years, focusing on palm oil, sugar and rubber crops.


Globetronics Eyes M&A To Expand Revenue Base

- In order to broaden its revenue base, Globetronics Technology has set its sights on electronic medical manufacturing companies with the intention to either merge or acquire. The group is currently in talks with two potential partners in the Asean region to acquire a major stake.

- According to the company’s chief executive officer Heng Huck Lee, the group will be able to leverage on its electronic manufacturing expertise to expand in the electronic medical device business.

- The plan is also in line with the group’s recent business direction to develop sensors for bio and health wearable smart devices for US customers.

Significance: Besides the expectation that demand for medical device outsourcing and contract manufacturers will surge, Heng says that the electronic medical device manufacturing sector is a recession-proof business, which generates sustainable margins.


IOI Properties Results Hit By Challenging Business Environment

- For the quarter ended 31 March, IOI Properties Group registered RM361.5 million and RM89.1 million in revenue and earnings respectively. Contribution from property development segment contributed 84 percent of revenue.

- Underpinning the company’s third quarter results included development projects in Johor, IOI Park Bay project in China, property investments such as IOI Mall, One & two IOI Square, IOI Resort and IOI Boulevard.

- Compared to the second quarter, revenue slumped 8.5 percent while earnings dived 70.3 percent.

Significance: Regulatory measures implemented in Singapore, Malaysia and China where IOI Properties derives bulk of its revenue are believed to be behind the weaker performance as the growth of the property sector is impacted.

Stock Market Forum