January 30, 2015, Friday
Bursa Malaysia recorded a 12.8 percent and 57 percent increase in total income and net profit to RM128.5 million and RM53.1 million respectively in 4Q14. Oil and gas (O&G) exploration company Hibiscus Petroleum will be more aggressive in looking for opportunities despite the currently volatile market environment. Jaya Tiasa Holdings’ 2Q15 log and fresh fruit bunch (FFB) production declined partly due to bad weather that affected the harvesting process.
January 29, 2015, Thursday
LPI Capital’s earnings shot up by 40.5 percent to RM283 million in FY14, as a result of a boost from its unit Lonpac Insurance (Lonpac). Press Metal will invest RM2 billion in the Phase 3 expansion of its aluminium smelter project to raise production capacity, which will bring its total investment in aluminium smelting facilities in Sarawak to RM5.5 billion. CIMB Equities Research said that UMW Oil & Gas Corporation (UMW O&G) is on the verge of a new phase of international expansion after building a solid presence in Southeast Asia, with a potential contract in the Middle East by year-end.
January 28, 2015, Wednesday
Benalec Holdings’ 70 percent-owned subsidiary Spektrum Kukuh and the Johor state government has received the Department of Environment’s (DOE) approval to commence reclamation work for its Tanjung Piai petroleum hub and industrial park in the Straits of Johor. Payment solutions provider GHL Systems’ wholly owned subsidiaries GHL Cardpay and GHL Epayments have taken up an agreement with Global Payments Card Processing Malaysia whereby the company will offer the latter sales, marketing and on-boarding services to help it acquire eligible new merchants.
January 27, 2015, Tuesday
CapitaMalls Malaysia Trust (CMMT) is revisiting the acquisition of Tropicana City Mall and Tropicana City Office Tower, after a previous attempt to acquire the two properties in 2013 miscarried due to disagreement on the terms of sale and purchase between the company and the vendor, Tropicana Corporation. CIMB Equities Research warned that Felda Global Ventures Holdings may lose its position in the 30-stock FBM KLCI due to its lower market capitalisation. KLCC Properties’ FY14 core net profit has reached RM711.2 million after the inclusion of its 4Q14 core net profit of RM205.1 million, according to CIMB Equities Research.
January 26, 2015, Monday
Pensonic Holdings plans to adopt a new business model to market its latest smart power bank device under the fonebud brand, which is to offer the ownership of the fonebud brand to distributors, who had hit a consistent sales target over a two-year period. WCT Holdings aims to clinch RM2 billion worth property development and construction jobs this year. The group is targeting RM1 billion worth of jobs in Malaysia and another RM1 billion from the Middle East and other overseas market.
January 23, 2015, Friday
Kenanga Research predicts a weak property market over the next six to nine months, thus reducing its 2015 and 2016 sales earnings estimates for Hua Yang by 14 percent and 12 percent to RM501 million and RM529 million respectively. IJM Land is optimistic that its “re-imagined” Sherwood development at Kinrara South Puchong, which has bungalows priced from RM2.9 million each, will be fully sold before year-end in spite of the weakening property market. Malaysian Pacific Industries (MPI)’s 2Q15 net profit tripled from RM8.1 million in the same period a year ago to RM24.1 million on the back of a 6.9 percent rise in revenue to RM338.3 million.
January 22, 2015, Thursday
Econpile Holdings announced that its wholly-owned subsidiary has clinched a RM129 million 23-month piling job from Damai City, the largest contract that the group has obtained since its listing last June. Just as the Johor property scene is experiencing a heightened state of wariness, Iskandar Waterfront City (IWCB) unit Southern Crest Development has established a joint venture (JV) with a subsidiary of Shanghai-based state developer Greenland Holdings Group to buy 128 acres of mostly submerged land from IWCB for a sum of RM2.4 billion.
January 21, 2015, Wednesday
Fitters Diversified is expected to have the third production line in its oriented-PVC pipe manufacturing plant at Gebeng, Kuantan up and running by June. Fraser & Neave Holdings is wary about the impact of a weak ringgit on commodity prices and the menace of rising inflation after the introduction of the goods and services tax (GST) on April 1 but remain hopeful for the year ahead. IRIS Corporation is forming a joint venture (JV) with Technology Park Malaysia Corporation (TPM) to develop a residential project on a 28.9 acre piece of land in Phase 3 TPM Bukit Jalil.
January 20, 2015, Tuesday
Eastern & Oriental’s (E&O) subsidiary, Eastern & Oriental Property (UK) (EOPUK), has entered into a property sale with GEMS Hammersmith (Luxembourg) SARL through EOPUK’s unit Hammersmith Properties, for the acquisition of Landmark House and Thames Tower in London for GBP57 million (RM308.9 million). Maybank Investment Bank Research notes that Quill Capita Trust’s 4Q14 core net profit softened to RM8.5 million mainly as a result of higher costs, which consequently led to an FY14 net profit of RM34.2 million which was within expectations.
January 19, 2015, Monday
Amalgamated Industrial Steel (AISB) wants to diversify its business to include property development to diversify its earnings base and to enhance its overall long term growth prospects, with the proposed diversification expected to be implemented this year. Affin Hwang Research has expressed its likes for Inari Amertron, given its position as a leading radio frequency test house in the region. Uzma’s unit, Uzma Engineering, has secured a Petronas Carigali contract to provide tubing downhole tools and services, which will last for two years starting from 1 January 2015, with an extension option of one year.
January 16, 2015, Friday
RHB Research has reaffirmed its positive view on OCK Group after its recent meeting with its new chief executive officer (CEO) and updates on its plans. Malaysian Resources Corporation (MRCB)’s share price is seeing a revival and active trading, after the lifting of a trading restriction on two of its major shareholders, Employees Provident Fund (EPF) and Gapurna, following the completion of a RM729 million asset injection deal. The proposed RM250 million disposal of MISC’s logistics business, MISC Integrated Logistics (MILS) to Golden Age Logistics has been terminated as GAL was not able to fulfil its obligations for completion, according to Maybank KE Research.
January 15, 2015, Thursday
Alliance DBS Research notes that construction works on Kossan Rubber Industries’ three new plants have been completed. Sona Petroleum has cancelled its plan to acquire a 40 percent stake in UK-listed Salamader Energy’s Thai unit, Salamander Energy (Bualang Holdings), for RM912 million. TMC Life Sciences, hopes to spend up to RM300 million to expand the facilities at its flagship Tropicana Medical Centre in Kota Damansara, Petaling Jaya and provide its patients there with improved and more comprehensive service to meet the growing demand of the surrounding community and the Klang Valley.
January 14, 2015, Wednesday
AmResearch has maintained its Buy call on DRB-Hicom with an unchanged fair value of RM3.60 a share. Tek Seng Holdings, a solar cell and polyvinyl chloride (PVC) manufacturer, expects its solar segment to contribute handsomely to its FY15 revenue after its subsidiary TS Solartech entered into a memorandum of understanding with Taiwan-based Solartech Energy Corporation. With several new launches planned, Tropicana Corporation hopes its sales will touch RM2 billion by year-end.
January 13, 2015, Tuesday
The proposed mega merger of CIMB Group Holdings, RHB Capital (RHBCap) and Malaysia Building Society (MBSB) is off and an announcement is expected before the end of the week. Kimlun Corporation (Kimlun) announced last week that it had secured two projects with a collective contract value of RM110.6 million. Tenaga Nasional (TNB) is putting a lot of money upfront to acquire Integrax, the Lumut Port operator in Perak, but the utility firm could be looking at a huge cost saving in the future ahead of the commissioning of its new power plants in nearby Manjung.
January 12, 2015, Monday
Axiata group’s Malaysian telco, Celcom Axiata, foresees 2015 as an opportunity to revisit its current business models, which are believed to remain sustainable in the long run, and to adopt innovative ways to develop up-and-coming new models. Malaysia Airports Holdings’ (MAHB) aim to be an international player will not mean it will pay less emphasis on the development of smaller airports in Malaysia, according to managing director Datuk Badlisham Ghazali. A high level initiative has started for a proposal for the property arm of Sime Darby to take over SP Setia and has been conveyed to the top brass of Sime Darby and Permodalan Nasional (PNB), the major shareholder of SP Setia.
January 9, 2015, Friday
Plantation group Kuala Lumpur Kepong (KLK) is selling 20 percent stake in wholly owned subsidiary, KLK Premier Capital to Japan-based Mitsui & Co for RM154 million cash. CIMB Equities Research advises investors to accumulate Perisai Petroleum shares as it retains the target price at RM0.63, which is 46.8 percent higher than the last traded price of RM0.43. Top Glove Corporation, the world’s largest rubber glove maker, is expecting FY15 to be a better year compared with FY14, which the company deemed “tough”.
January 8, 2015, Thursday
Puncak Niaga Holdings is in talks with China and countries in Latin America and ASEAN, among others, to provide maintenance services to their oil and gas (O&G) industries. Scomi Energy Services has been awarded a two year RM175.4 million contract of affreightment (COA) for carriage of bulk coal by TNB Fuel Services (TNBF), with an option for TNBF to extend it for another year. CIMB Equities Research maintains an ‘Add’ recommendation on Westports Holdings with a probability-weighted discounted cashflow target price of RM4.57.
January 6, 2015, Tuesday
Eversendai Corp, a structural steel turnkey contractor, has secured a RM44 million contract through its Dubai subsidiary for the connection design, fabrication, supply and erection of structural steel works for the new 5,000 seat Nas Indoor Futsal and Volleyball Arena, which will be used to host international tournaments. Kenanga Research said that diversified conglomerate IJM Corp is entering a new growth phase as most of its major drivers have gone into “earnings expansion mode”.
January 5, 2015, Monday
Superlon Holdings’ generous dividend payout has put the manufacturer of insulation products on investors’ radar. The recent surge in share price has been deemed unsustainable by CIMB Equities Research and the research house has lowered its rating on Jobstreet from Hold to Reduce. City-Link Express is considering a main market listing on Bursa Malaysia in the next three years.
January 2, 2015, Friday
Environment technology company, Cypark Resources, saw its net profit in 4Q14 fall 28.2 percent from RM8.9 million in the same period a year earlier to RM6.4 million while its revenue dropped 11.8 percent to RM50 million. Plantation group Kim Loong Resources recorded a 3.7 percent dip in 3Q15 net profit to RM15.2 million due to a RM3 million impairment of assets and provision for the financial implications of a 1 December 2009 court case against its subsidiary, Winsome Pelita, regarding their customary rights to land which is expected to result in an unfavorable outcome for the firm.
December 31, 2014, Wednesday
Berjaya Corporation’s (BCorp) net profit in 2Q15 surged 642.2 percent to RM153.1 million, mainly boosted by the recognition of gains arising from the re-measurement of the 50 percent equity interest in Berjaya Starbucks Coffee Company (BStarbucks), after the RM279.5 million acquisition of the remaining 50 percent equity interest by Berjaya Food was completed on 18 September 2014. Crescendo Corporation’s net profit for 3Q14 fell 61.8 percent to RM18.1 million while revenue for the period fell 6.9 percent to RM72.6 million.
December 29, 2014, Monday
Affin Hwang Capital is maintaining its ‘Overweight’ view on the utilities sector due to its defensive qualities and good earnings visibility amid volatile equity markets. Shin Yang Shipping Corporation, which owns and operates a fleet of 297 vessels, will see a boost to its bottom line if the current low bunker fuel price stays. Taliworks Corporation, fresh after the RM265 million takeover of the New North Klang Straits Bypass Expressway (NNKSB), is looking at acquiring mature infrastructure assets in developed countries, which includes US and Australia.
December 26, 2014, Friday
Malaysian palm oil futures rose to their highest in nearly a month on Wednesday, 24 December, as severe flooding in parts of the country due to the monsoon rains affected harvesting and crushing of palm fruit. Brahim’s Holdings is renegotiating its RM6.3 billion in-flight catering contract with Khazanah Nasional and hopes to agree on certain conditions soon, that will not put a dent on its earnings. Hong Leong Investment Bank (HLIB) Research sees the RM254 million concrete supply contract awarded to Lafarge Malaysia and its purchase of cement mill from Lafarge Ciment (Romania) SA for RM46 million as positive for the group.
December 23, 2014, Tuesday
RHB Research Institute has maintained its ‘Neutral’ call on WCT Holdings with a target price of RM1.64 based on 12 times revised fully-diluted FY15F earnings per share of 13.7 sen. Yinson Holdings saw its net profit soar more than four-fold from RM15.5 million in 3Q13 to RM85.8 million in 3Q14, thanks to a RM199.2 million gain from the disposal of a subsidiary, Nautipa AS, RM24.8 million forex gains and an improvement in its marine segment business.
December 22, 2014, Monday
MPHB Capital will be sitting on cash of more than RM700 million, translating into RM1 per share when the sale of a 49 percent stake in its insurance arm to Italy-based Generali Asia NV for RM355.8 million, is completed. Construction firm Prinsiptek Corporation, which recently diversified its business into property development, is considering potential mergers and acquisitions (M&A) in construction-related businesses. Web-based IT solutions maker Systech, which has been garnering attention for a couple of months now, is merely one of the companies which is “riding the IT wave” and has no plans to be sold off.
December 19, 2014, Friday
Berjaya Sports Toto recorded a 20.6 percent year-on-year jump in net profit from RM82.6 million to RM99.7 million in the second quarter ended 31 October 2014, as revenue rose 44.7 percent to RM1.3 billion. Tenaga Nasional (TNB) will increase its investment in alternative sources of energy to ameliorate the effects of a fossil fuel shortage going forward. CIMB Research has maintained its ‘Add’ call on Wah Seong Corporation with a target price of RM2.65 and urged investors to accumulate the stock.
December 18, 2014, Thursday
Genting Malaysia has failed to win a casino licence in upstate New York (NY). Sarawak Oil Palms has aborted a RM134.9 million related party deal to acquire a 60 percent stake in DD Pelita Sebungan Plantation and Mutiara Pelita Genaan Plantation from Double Dynasty (DDSB) and Mutiara Hartabumi (MHSB). Scientex reported a 3.1 percent rise in net profit to RM30.3 million for the first quarter ended 31 October 2014.
December 17, 2014, Wednesday
LFE Corporation’s unit, LFE Engineering, has secured a RM350 million contract to build the Shapadu City Village in Putrajaya. Masterskill Education (MEGB) has decided to abort the proposal to dispose of its four campuses in Cheras, Kota Kinabalu, Kuching and Pasir Gudang as their market value is higher than the sale consideration offered by the buyer. mTouche Technology signed a memorandum of understanding with Taiwan Stock Exchange-listed Arbor Technology Corporation to develop Internet of Things (IoT) and smart city solutions in Malaysia.
December 16, 2014, Tuesday
AirAsia’s long-haul affiliate, AirAsia X, has placed a firm order to buy 55 new A330neo aircraft from Airbus for US$15.2 billion (RM53.3 billion), making it the single biggest A330 airline customer for Airbus with a total order for 91 aircraft. Bumi Armada’s tumbling share price and the sudden departure of its chief executive officer on 5 December is fuelling talk that the company could be taken private again. Globaltec Formation shareholders approved the group’s proposed diversification into oil and gas (O&G) exploration and production (E&P) at an extraordinary general meeting on 15 December, paving the way for its first well drilling in March next year.
December 15, 2014, Monday
Facility management services provider, AWC, plans to embark into the telecommunication and healthcare industry, and may consider merger and acquisition (M&A) in the future, besides winning more private sector clients to boost its business. For the third quarter ended 31 October, Talam Transform recorded a net profit of RM3.6 million, compared with a net loss of RM13.1 million in 3Q14, mainly due to higher finance income. Tiong Nam Logistics Holdings sees Vietnam and Myanmar as its new overseas venture to further grow its business, as the group shared that it is still in the midst of finding reliable partners, in its bid to become an Asean player, rather than just a Malaysian player.
December 12, 2014, Friday
For the third quarter ended 30 October, Astro Malaysia Holdings recorded a 5.2 percent gain in revenue to RM1.3 billion on the back of increased subscriptions and other revenue. Felda Global Ventures Holdings (FGV) is set to mark a new foray into China by collaborating with Shenzhen Agricultural Products Co (SZAP) on an agri-business trading company. Hong Leong Investment Bank (HLIB) is concerned about the potential drop in charter rates and lower utilisation rates for UMW Holdings existing seven jack-up rigs and upcoming Naga 8, noting that five of its contracts are expiring in 2015.
December 11, 2014, Thursday
Eco World Development Group has set new sales targets of RM3 billion and RM4 billion for the next two years respectively, including existing phases that have not been launched. Kulim (Malaysia)’s unit, Kulim Energy Nusantara, is proposing to acquire Indonesian oil and gas (O&G) outfit PT Citra Sarana Energi (CSE) for US$133.6 million (RM462.7 million), to strengthen its footprint in Indonesia’s expanding O&G sector. Agrifood giant QL Resources failed in its attempted takeover offer of poultry producer Lay Hong, as it had not received more than 50 percent of acceptances at the closing date of the voluntary offer at 5pm on 10 December.
December 10, 2014, Wednesday
For the second quarter ended 31 October, Berjaya Food’s revenue more than doubled to RM75.3 million, mainly due to the effect of consolidation of a newly acquired subsidiary, Berjaya Starbucks Coffee Company (BStarbucks), as well as higher contributions from its Starbucks operations in Brunei. Kenanga Research said IJM Corporation’s outlook remains bright in the midst of entering a new phase of growth. RHB Research is upbeat on Sunway’s continuous effort in unlocking asset values, after the group announced its proposed disposal of Sunway Hotel Georgetown for RM74 million and Wisma Sunway for RM60 million, to Sunway REIT.
December 9, 2014, Tuesday
For the second quarter ended 30 September, Berjaya Auto recorded an 80.1 percent surge in revenue to RM508.8 million, as net profit more than doubled to RM57.5 million, primarily due to higher sales volume of Mazda vehicles in both Malaysia and the Philippines. MIDF Investment Research believes SapuraKencana Petroleum order book of RM28 billion is robust enough to withstand short-term shocks, as 70 percent of the group’s orders are from domestic oil companies.
December 8, 2014, Monday
CAB Cakaran Corporation is on track to hitting revenues of close to RM1 billion next year, riding on its intention to tap into the Singapore market and its expansion plans for its poultry farms in the country. Property heavyweight IOI Properties Group is making a bold move into the Taiwan real estate as it proposes to buy a stake in iconic skyscraper Taipei 101 for RM2.7 billion at a time when the ringgit is weakening. CIMB Equities Research is positive on Uzma’s acquisition of a 19 percent stake in its associate Setegap Ventures Petroleum for RM28.5 million, which will raise the firm’s equity interest to 49 percent.
December 5, 2014, Friday
The telecommunication industry is forecasted to be healthy and expected to enjoy 4.8 percent overall revenue growth next year, according to AllianceDBS Research. Genting Malaysia expects to complete by 2016 the world’s first Twentieth Century Fox World theme park by 2016 at a cost of about RM1 billion. Yong Tai’s subsidiary, YTB Apple, together with Apple 99 Development, has proposed a joint venture (JV) to construct and develop a mixed development project on an 11,862 square metres plot of land in the district of Melaka Tengah, Melaka, Malaysia.
December 4, 2014, Thursday
Logistics service provider GD Express Carrier is looking for more partners and potential mergers and acquisitions (M&A) to expand regionally, according to group chief executive officer Teong Teck Lean. For the second quarter ended 30 September, Glomac reported a 66.4% decline in net profit to RM13.2 million, in tandem with a 44.6% fall in revenue to RM86.3 million. After announcing that it will accept the RM2.8 billion offer for its stake in New Britain Palm Oil, Kulim (Malaysia) plans to use the RM680 million of proceeds from the disposal to finance its expansion into oil and gas (O&G) activities.
December 3, 2014, Wednesday
AirAsia X plans to fly to Hawaii and Sapporo, Japan, next year in a bid to strengthen its bottom line, says group chief executive officer Tan Sri Tony Fernandes. Hartalega’s two upcoming new generation complex (NGC) production lines will boost volume growth, backed by incoming capacity of about nine billion pieces per annum and the best operating structure in the sector, according to AllianceDBS Research. Hap Seng Consolidated will launch two property projects with a combined gross development value (GDV) of close to RM2 billion in Klang Valley next year.
December 2, 2014, Tuesday
Gamuda is building up its landbank with the recent purchase of 104.1hectares of leasehold land in Kuala Langat, Selangor, for RM392.2 million, by the group’s wholly-owned unit, Setara Hati. For the first quarter ended 30 September, Karex recorded revenue of RM70.1 million and net profit of RM12.8 million. With its Petronas license and marine engineering expertise, Muhibbah Engineering (M) is poised to clinch a sizeable share of the refinery and petrochemical integrated development (RAPID) project subcontract works, according to Alliance Research.
December 1, 2014, Monday
Mah Sing Group is known for its quick turnaround business model, tending to unlock the value of its land-bank quicker with an estimated project timeline of six to eight years, said Credit Suisse Securities Research. Privasia Technology expects its revenue to grow in the coming year after securing RM31.5 million worth of contracts from the Department of Survey and Mapping Malaysia (Jupem) and the Kuantan Port. For the first quarter ended 30 September, Sime Darby posted a 2.4 percent rise in net profit toRM500.7 million, despite a 4.3 percent decline in turnover to RM10.1 billion.