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Reports Malaysia

Malaysia stock market and companies daily report (September 02, 2014)

September 2, 2014, Tuesday, 06:11 GMT | 01:11 EST | 09:41 IST | 12:11 SGT
Contributed by Shares Investment

Mudajaya Aims To Grow Recurring Income Business

- Mudajaya Group aims to enhance profit margins by reducing its dependence on construction work from third parties though increasing its recurring income business.

- Mudajaya’s recurring income business will be in the power generation and other related utilities segments that contributes to less than 20 percent of its revenue.

- Mudajaya aims to attain contributions of 50 percent or more from recurring businesses such as power plants, by the next 3 years.

Significance: In the long run, Mudajaya has the goal to monetise its recurring income businesses by lumping them together to be listed as a utility real estate investment trust

SapuraKencana Unit Makes Another Gas Discovery In Offshore Sarawak

- SapuraKencana Petroleum’s subsidiary, SapuraKencana Energy Sarawak (SKE) has made another gas discovery from Bakong-1. The newest discovery at Bakong-1, the biggest in terms gross gas column, is in excess of 600 metres in the primary target reservoir within the Late Miocene Carbonates reservoirs.

- This fifth and final well discovery marks the completion of the five well drilling programmes slated for this year as part of the SK408 work campaign. Management stated that the last well ranks as one of the larger discoveries in Malaysia this year and has doubled the resources found in the block to-date.

- SKE is the operator with a 40 percent working interest with partners Petronas Carigali and Sarawak Shell each having a 30 percent interest.

Significance: Going forward, the group will launch another five well-exploration campaigns next year that targets additional gas prospects with significant potential in the SK408 Block.

Sentoria To Develop New Resort City And Medical Village

- Sentoria Group has secured two parcels of land in Padang Matsirat and Mukim Ulu Melaka, Langkawi, measuring a total 120 acres for RM41.4 million, with both parcels carrying a lease period of 90 years.

- The group plans to develop its fourth resort city in Langkawi to be known as Langkawi Geopark Resort City, expanding its business into North Malaysia, which will enhance its future recurring leisure and hospitality income to create sustainable growth.

- On the parcel in Mukim Ulu Melaka, Sentoria will develop a medical village to be known as Langkawi Medical Village, comprising a medical training centre, medical tourism centre and housing quarters.

Significance: The value of the properties to be made available for sales is expected to be around RM1 billion while retained properties amounts to roughly RM380 million, giving the resort city a total gross development value (GDV) of RM1.4 billion. The estimated GDV of the medical village is RM700 million.