Reports » Malaysia

Malaysia stock market and companies daily report (October 17, 2012)

Contributed by Shares Investment

Time dotCom Teams Up With Setia Haruman Technology
Time dotCom is teaming up with Setia Haruman Technology ,the master developer of Cyberjaya to provide Internet pay-TV and also data, Internet and voice services. Both parties had signed a MoU for a 10 year collaboration where Time dotCom would supply its 100 percent fiber-to-the-home and fiber-to-the-office services. The company plans to roll out the services to about 3,000 homes and 1,400 offices in Cyberjaya. In the agreement, Time dotCom would provide its active network infrastructure to provide services through the gigabit passive optical network technology while Setia Haruman Technology will provide its active fiber network infrastructure. According to the companies, Cyberjaya’s population is expected to reach to 210,000 people by 2022. Businesses are expected to employ up to 120,000 people and higher learning institutions will support 30,000 students.
Significance: The collaboration will allow Time dotCom to acquire customers in Cyberjaya at a quicker pace without the need of duplicating network as it will be provided by Setia Haruman Technology.

MAHB Predicts 5% Passenger Growth at Penang International Airport
Malaysia Airports Holdings (MAHB) expects the Penang International Airport (PIA) to register between a four and five percent growth in passenger traffic this year despite the upgrading work in progress. Last year, the PIA recorded a four percent growth in passenger traffic, handling 4.5 million passengers while the first nine months this year registered a five percent growth at 3.5 million from 3.3 million in 2011. Senior general manager Datuk Azmi Murad noted that the tourism industry in Malaysia is unlikely to see any slowdown despite challenging global economic climate. Moving forward, the completion of the upgrading at the airport, PIA is likely to achieve higher growth in passenger traffic between five to six percent. The RM250 million upgrading work at the PIA is 95 percent complete and targeted for completion by November this year which by then, airport’s capacity would be doubled, to handle 6.5 million passengers.
Significance: Along with Malindo Airways’ entry into Malaysian market, MAHB’s passenger and aircraft traffic growth from 2013 onwards is further boosted with the increased capacity at the PIA.

Zhulian Share Price Soars Higher
Zhulian Corporation stocks climbed to a fresh record high of RM2.80 on Tuesday, 16 October. At near mid-noon, it was up 10 sen to RM2.80 with 415,900 shares done. Shares of the costume jewellery and consumer products manufacturer has been on the upward trend following the release of strong set of financial results in the quarter ended May 31, 2012. It has cash and cash equivalents of RM123.7 million. For the current released quarter, the group posted an increase of 25 percent to RM222.87 million from a year ago. Its export sales increased by 31 percent driven by sales to Thailand whilst the local sales increased by 18 percent. The sales of food & beverage, nutritional, jewellery and personal care products have increased by 45 percent, 28 percent, 10 percent and 31 percent respectively. Its profit before tax was up 34 percent year-on-year due to increases in revenue, share of profit of equity accounted investee and foreign exchange gain with the strengthening of US dollar, offset by the higher distribution expenses that were in line with the sales increase.
Significance: The increase in revenue was mainly due to local and overseas market demand, boosted by the Group’s aggressive sales and marketing programmes put in place for the current year. It is expected to announce its next quarter results ended Aug 31, 2012 later in October.