The week at a glance 28 June 2015

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TA00733Sabah & Sarawak

Long term optimism for Ta Ann’s new joint ventures

Analysts are long-term positive on TA Ann Holdings Bhd (Ta Ann) latest contract to develop two parcels of native customary rights (NCR) land in Kanowit and Kapit. To note, its subsidiary Ta Ann Plantation Sdn Bhd has entered into two joint ventures with Pelita Holdings Sdn Bhd (Pelita) to develop two parcels of NCR land in Kanowit and Kapit of 17,000 hectares (ha) and 11,200ha, respectively.

 

Instacom explores alternative revenue streams for diversification

Instacom Group Bhd (Instacom) continues to see demand for its mainstay business such as telecommunication engineering services but also hopes to diversify into other avenues.

Last year saw Instacom scouting for alternative avenues to expand its business base.

The group completed its acquisition of Neata in January,  which led to the subsequent diversification of the group’s business into the aluminium design and fabrication sector as well as civil engineering and the construction portfolio.

 

Palm oil industry must enhance upstream productivity, exploit downstream opportunities

With limited land available, Malaysia will need to enhance upstream productivity and exploit the full potential of downstream opportunities, says Frost and Sullivan.

According to Chris de Lavigne, global vice president of consulting, global palm oil production is expected to grow at a cumulative annual growth rate (CAGR) of 5.9 per cent in the period 2011 to 2020 to reach 84.0 million metric tonnes (MT).

 

Dayang fundamentals intact despite industry slowdown

Dayang Enterprise Holdings Bhd’s fundamentals have been viewed as solid despite the overall slowdown in the hook up and commission (HUC) industry.

Following a recent meeting with Dayang, the research arm of Kenanga Investment Bank Bhd opined the company’s fundamental remains solid albeit it is not entirely spared from the overall industry slowdown.

 

Lower log production forecasts for WTK, says RHB Research

Analysts at RHB Research Institute Sdn Bhd (RHB Research) trimmed its log production forecasts for WTK Holdings Bhd (WTK) on several issues including the illegal logging clampdown and El Nino risks.

 

 

National

AirAsia dismisses accusations by gmt research

AirAsia Bhd’s Audit Committee has dismissed the accusation of corporate governance abuses and condoning accounting gimmicks by GMT Research Ltd, a UK-based firm. Of particular concern to the Audit Committee was the allegation of improper accounting for associate companies and that AAB’s auditor, PricewaterhouseCoopers (PWC) was malleable.

 

Sedania’s IPO 20.3 times oversubscribed

Mobile services enabler Sedania Innovator Bhd (Sedania) noted commendable response for its Initial Public Offering (IPO), with the public tranche oversubscribed by 20.3 times. For the nine million shares of RM3.42 million in value allocated to public investors, Sedania received 8,103 applications for a total of 191.6 million shares equivalent to RM72.8 million in value.

 

1Mdb reiterates asset acquisitions driven by long-term view

1Malaysia Development Bhd (1MDB) reiterated that it only acquires assets when it is convinced they represent long-term value.

“To suggest that any of our acquisitions were driven by political considerations is simply false,” it said, referring to a recent Wall Street Journal article suggesting that 1MDB had overpaid for the acquisition of itsenergy assets.

 

Ideal Jacobs expects to complete rto in 1H16

The proposed reverse take over (RTO) of Ideal Jacobs (Malaysia) Corp Bhd of oil and gas consultation service providers Cekap Technical Services Sdn Bhd and MECIP Global Engineers Sdn Bhd for RM129 million is expected to be completed in the first half of 2016. Ideal Jacobs executive director Chen Shien Yee said the the Securities Commission has asked the investment holding company to include some additional conditions in its proposal.

 

Echelon Asia Summit exposing and attracting regional investors to exceptional local startups

MaGIC led a delegation of Malaysian startups to the Echelon Asia Summit 2015 to showcase their products and services at one of Asia’s most anticipated tech conferences in Singapore. Out of 80 applications received to join the Malaysian delegation, 15 startups of various verticals, ranging from e-commerce to hardware, have been selected based on their ideas, traction gained since launch and their readiness to expand regionally.

 

Asia oil pricing change to raise trade volumes

Oil pricing agency Platts is changing how it assesses oil product values in Asian trade from July 1 in a move traders expect to boost volumes and encourage the use of regional oil storage facilities built at a cost of billions of dollars.

 

MAS’ second route, capacity cuts will widely impact sector

Analysts opine Malaysia Airlines’s (MAS) second wave of route and capacity cuts is expected to make a more prominent impact on the overall aviation industry.

Maybank Investment Bank Bhd said the first wave of route cuts was immaterial and has no noticeable impact on other domestic airlines such as AirAsia Bhd (AirAsia) and Malindo Air, as these are thin routes with only a handful of players.