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Reports Malaysia

Malaysia stock market and companies daily report (September 05, 2014)

September 5, 2014, Friday, 05:38 GMT | 00:38 EST | 09:08 IST | 11:38 SGT
Contributed by Shares Investment

Axis REIT Aims To Surpass RM2b Mark

-  With the acquisition of its five new properties, for RM472 million this year, the Managers of Axis REIT expects the value of the REIT to surpass the RM2 billion mark.

-  CEO Datuk Stewart LaBrooy mentioned that he expects the five properties to yield an additional RM0.021 per annum to its FY15 income distribution per unit (DPU).

-  In 1H14, Axis REIT posted a 2 percent year-on-year drop in net profit of RM44.3 million and a 16.5 percent year-on-year increase in DPU of RM0.106.

Significance: Axis REIT’s manager has once again assured investors that they do not buy real estate for the sake of growing and held back from acquiring real estate in 2013 where the market was overheated and asset prices were inflated with low yields. Moving on, Axis REIT aims to surpass the US$1 billion mark, as only then it will be able to attract the interest of foreign investors and funds.

Digistar To Acquire 70% Stake In Protecs

-  Digistar Corporation’s wholly-owned subsidiary, Digistar Holdings will acquire 350,000 ordinary shares of RM1 each, representing a 70 percent stake in Protecs A & A CMS.

-  The proposed acquisition will give the firm immediate access to the customer base of Protecs in the central monitoring system (CMS) business, providing new business opportunity for the company.

-  The firm is looking to acquire another two to three CMS providers to increase its customer base, with a target to hit 500,000 subscriptions in five years.

Significance: Management stated that the security services business is poised to be the group’s main growth driver in the coming years. The company is also expected to turn around next financial year, with expectations of significant improvement in revenue after the completion of its property development, The Heritage hotel.

Pos Malaysia Plans 150m CAPEX For FY15

-  Pos Malaysia plans to spend more than RM150 million as capital expenditure (CAPEX) for the financial year ending 31 March, 2015. The funds will be channelled new areas of postal services, information communication technology infrastructure, upgrading post offices and acquiring new vehicles.

-  The national postal company will soon launch a new parcel locker service and also set up an app for the service.

-  The group is said to be working to mitigate the drop in sales in the mail segment with “innovative ideas”, such as ads mail and direct mail. Growth in the online purchases business will also be beneficial for the group.

Significance: Management expects earnings growth to be sustained in FY15 and seeks to contain rising operation costs through better productivity in its business operations.