Reports » Malaysia

Malaysia stock market and companies daily report (October 02, 2012)

Contributed by Shares Investment

Glomac Set On Achieving RM800m In Sales
Glomac is expected to break its previous record of RM663 million in property sales from the financial year ended 30 April 2012. At present, the developer has a pipeline of future projects with a total gross development value (GDV) of RM7 billion, RM1.13 billion of which is set to be launched in financial year 2013. Based on this figure, the company’s managing director and chief executive officer expects at least RM800 million of sales in the financial year 2013 as indicated by company’s track record of achieving 80 to 85 percent of new property launches. Key drivers for sales in financial year 2013 include Lakeside Residences in Puchong, Phase 4 of Plaza Kelana Jaya, and the townships of Bandar Saujana Utama and Saujana Rawang. For the first quarter ended 31 July 2012 under year-on-year basis, net profit was up 17.3 percent to RM21 million while revenue rose 26.1 percent to RM161.1 million.
Significance: The group’s townships launches were well received with positive responses mainly due to the good mix of affordable and mid-market landed properties. At end of July 2012, the group had gathered another record high of RM763 million of unbilled sales, of  which momentum is expected to persist.

Scomi Up On Active Trade
Scomi Group stock price continued to climb in active trade on Monday, 1st October over weekend news which gave punters speculation to the oil and gas company. Last week, Scomi’s share price rose to 39 sen, a high not seen since February 2011 due to news that IJM corporation will be purchasing a 25.08 percent stake in the company. IJM on the other hand suffered an 11 percent fall as investors perceived this as a bail-out of a previously-politically connected debt-laden company.As of late Monday morning, Scomi rose 0.5 sen to 39.5 sen on trades of 30.69 million shares while IJM rose 4 sen to RM4.76 on volume of 1.51 million shares. Moving forward, some analysts reported  that while there were mixed views on whether the offer price for Scomi by IJM was reasonable, some others were optimistic that IJM would benefit considerably from Scomi in the business aspect and the technology in transportation and, especially in the oil and gas business.
Significance: Scomi is among the three drilling fluids companies in the world and among the three monorail operators in the world. With Scomi tendering RM15 billion worth of jobs in monorail and oil and gas projects, IJM’s expertise could come in handy.

FGVH To Develop 3 Core Business Supply Chains In Myanmar
Felda Global Ventures Holdings (FGV) plans to develop a complete supply chain of its three core businesses of palm oil, sugar cane and rubber in Myanmar. The group has signed a memorandum of understanding (MoU) with local partner, Pho La Min Trading (PLM), to explore rubber plantations and rubber processing in the country. Under this deal, a joint-venture company will be set up to develop rubber business in three phases, starting with the establishment of a processing plant. According to FGV’s President and Chief Executive Officer, Datuk Sabri Ahmad; the deal is expected to be concluded by December or early next year and the company will then plan to grow rubber trees on 30,000 hectares of land in Myeik. Meanwhile, the group had also identified areas suitable for sugar cane and oil palm plantations. FGV is also studying the feasibility of a plan to emulate Felda’s social scheme in Myeik. Furthermore, the exported palm oil products by the group have been met with overwhelming demand from the people of Myanmar. This has encouraged the group to expand to other regions and will soon invest about RM30 million to establish a packing and processing plant in Myanmar.
Significance: Ever since the economic liberalisation of Myanmar, FGV has been aggressively exploring opportunities in Myanmar. Moreover, FGV’s subsidiary, Delima Oil Products (DOP), will soon set up a packaging and production plant in Myanmar, enabling it to export downstream products to neighbouring countries like Laos, Cambodia, and the Philippines.