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Reports Malaysia

Malaysia stock market and companies daily report (May 27, 2014)

May 27, 2014, Tuesday, 06:35 GMT | 02:35 EST | 11:05 IST | 13:35 SGT
Contributed by Shares Investment

Petronas To Transform Retail Business Segment

- Petronas is currently the largest oil company in Malaysia, but second in terms of retail sales. Therefore, it aims to transform its retail business to emerge as the market leader.

- Petronas aims to increase the number of petrol stations by 40 nation-wide by year end.

- Each Petronas petrol station would then be benchmarked against competitors and upgraded accordingly.

Significance: Petronas allocates RM500 million yearly for capital expenditure to be used mainly for opening new petrol stations. It aims to achieve 35 percent share of the market for consumer vehicle fuel this year from the current 30 percent.

PJ Development’s 3Q14 Net Profit Up 28.8%

- For the quarter ended 31 March, PJ Development Holdings saw revenue rise 12.6 percent to RM227.7 million. Operating margin was 1.5 percentage points higher at 11.7 percent. Earnings surged 28.8 percent.

- For the nine cumulative months, revenue increased 19.1 percent to RM705.5 million while earnings surged 90.4 percent to RM75.9 million.

- The stronger results came on the back of higher sales units and construction work-in-progress from projects such as You City at Cheras, Swiss-Garden Resort Residences at Kuantan and D’Majestic at Pudu. Higher value of construction work also boosted performance.

Significance: PJ Development expects to deliver better results in the current financial year, mainly driven by its Properties Division, as it focus on its core competencies and established track record.

Higher Expenses A Drag On Eversendai’s 1Q14 Results

- Multi-disciplinary turnkey contractor Eversendai Corporation recorded RM230.7 million in revenue, a 5.1 percent drop year-on-year. The decrease was mainly due to longer than expected contract execution in a number of intricate fabrication projects in the Middle East region and India.

- Earnings slumped 53.6 percent to RM11 million. The larger contraction was due to a 50 percent rise in operating expenses.

- The company bagged 5 new contracts that were secured in the United Arab Emirates, Qatar and India in 2014, boosting its order book to RM1.1 billion.

Significance: While Eversendai’s financial performance for 1Q14 in terms of profit may not have met expectations, the group’s chairman and managing director Tan Sri A K Nathan said that it has to be taken into consideration that the group is still favoured as a preferred player in turnkey projects.