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Reports Malaysia

Malaysia stock market and companies daily report (May 28, 2014)

May 28, 2014, Wednesday, 06:19 GMT | 01:19 EST | 09:49 IST | 12:19 SGT
Contributed by Shares Investment

RM71m Contract Extension For Alam Maritim Resources

- Alam Maritim (M), a wholly-owned subsidiary of Alam Maritim Resources, received letters of extension from an established oil major confirming its intention to exercise the option to extend the existing charter contracts for four utility vessels and one straight supply vessel.

- The total contract sum amounts to RM71 million. The contracts are for long-term charters of one year for the straight supply vessel effective from August 2014 and three years for the utility vessels effective from September 2014.

- On a separate filing, the firm recorded RM79.2 million and RM15.6 million in revenue and earnings respectively for the quarter ended 31 March 2014. Compared with a year ago, revenue declined 15.1 percent and earnings was down 29.9 percent.

Significance: The contracts are expected to contribute positively to the earnings and net tangible assets of Alam Maritim Resources for the financial year ending 31 December 2014 and beyond.

MKH Records 4-Fold Jump In 2Q14 Net Profit

- For the second quarter ended 31 March 2014, property developer MKH saw its net profit multiplied four folds to RM50.7 million from RM12.8 million in 2Q13.

- The stronger performance was driven by increased contribution from both its property development and oil palm plantation divisions, resulting in revenue registering growth of 37.1 percent to reach RM188.1 million.

- MKH is on track to achieve RM800 million new sales in the current financial year. The group has planned new launches amounting to gross development value of RM1.4 billion for the whole financial year, of which more than 50 percent is expected to be launched only in the second half of the year.

Significance: MKH continues to enjoy long-term profit track record for more than 30 years. Such momentum is expected to be sustained as the company remains bullish on its oil palm plantation division, where exponential growth is expected by 2017 when all the oil palm trees reach their peak from 7 to15 years old.

Silk Holdings To Sell Highway To IJM Corporation For RM398m

- Silk Holdings has entered into an agreement with Road Builder Holdings, a unit of IJM Corporation, to sell its entire equity stake in Sistem Lingkaran-Lebuhraya Kajang, the concession holder for the 37 kilometre Kajang Traffic Dispersal Ring Road.

- The disposal consideration for the sale is RM398 million.

- The finalisation of the transaction is dependent on the approvals from the Economic Planning Unit, Unit Kerjasama Awam Swasta and shareholders of Silk Holdings, among others.

Significance: Silk Holdings believes that the disposal is timely and enables the firm to unlock the value of its investment in Sistem Lingkaran-Lebuhraya Kajang and focus the resources of the company and its subsidiaries to the oil and gas support services business.