Company Notes 2018.01.26

iCapital.biz Q2 FY2018 Results

The KLCI only includes the 30 largest companies in the Malaysian stock market. The only criterion for a stock to be included in the KLCI is the company’s market capitalisation, with no consideration given to the company’s fundamentals. This selection methodology is totally different from icapital.biz Berhad’s value investing strategy. Besides, the KLCI is a 100% equity only index, but icapital.biz Berhad’s is permitted to be 100% invested in equities or to be 0% invested in equities. GIPS or the Global Investment Performance Standards recommends that an appropriate benchmark must reflect the investment mandate, objective, or strategy of the portfolio.

Based on this, there is no suitable benchmark for icapital.biz Berhad considering its long-term absolute return objective and eclectic value investing strategy. Considering the nature of icapital.biz Berhad and how KLCI is constructed, I am of the opinion that the most appropriate benchmark would be the yield of the 5-year Malaysian government bond.

For the quarter ended 30th November 2017, the cash holdings of icapital.biz Berhad have fallen further as we have bought some shares. Finding attractive stocks to invest with sufficient margin of safety remains our focus.


UCrest Q2 FY2018 Results

Palette has moved into the medtech space with the significant investment made over the past few years on the development of imedic, the mobile health system. imedic enable patients to have wireless medical devices at home or anywhere, to regularly make measurement and upload the vital sign data to the Cloud. This would allow doctors from anywhere in the world to have access to the patient’s data 24×7 to review and provide online consultation to the patients. More than 15 devices have been developed to connect to imedic including CPAP machines for sleep apnea patients. The Company will continue to invest in the innovation and development of its next generation of imedic with extensive artificial intelligence (AI) technologies performing analytic on the “Big Data” of the patients and make useful recommendation of diagnosis and treatment plan to the doctors and patients.

The Company has effectively combined the latest innovative technologies: medtech, AI and Big Data in imedic. The power to be unleashed from these 3 technologies could be enormous.


CapitaLand Malaysia Mall Trust Q4 FY2017 Results

The decrease was mainly due to negative rental reversions from Sungei Wang (SW), as SW continues to be affected by the closure of BB Plaza. Lower gross revenue was recorded for The Mines (TM) mainly due to lower rental rates and occupancy whilst lower gross revenue in Tropicana City Property (TCP) was mainly due to lower occupany at the office tower and softer demand for promotional space at the mall. The decrease was mitigated by better performance from Gurney Plaza (GP) and East Coast Mall (ECM) on the back of higher rental rates and gross turnover rent.


Pensonic Q2 FY2018 Results

The Group is developing our Digital Customer Relationship Management. The objective of the platform is to provide customers with direct after-sales service solutions with easier online service calls, marketing automation, e-commerce, royalty programme and smart appliance management.

The Group has also started our e-commerce and partnership with various reputable marketplaces, as well as TV shopping channels. We have seen significant improvement in revenue. However, it is still minimal comparing to the total group revenue. With the e-commerce platform, we will be developing our Online-To-Offline commerce with our existing dealers to create a win-win business solution in this trending e-commerce market. We are expecting a full force digital marketing by end of the 2018.

On top of that, the Group is in the process of securing 2 new distributorships of electrical appliances brands from United Kingdom. These distributorships cover Malaysia and Singapore and is anticipated to contribute to Group revenue in mid to long term.


Suiwah Q2 FY2018 Results

The Group will continue to seek further opportunities to embrace Retail 4.0 (Industrial Automation) by leveraging technology and reinventing value add offerings, which we expect the momentum to be sustained going into 2018.

Manufacturing revenue was slow this quarter due to delay in some customers’ product launch. The new expansion project at Batu Kawan is progressing well and is as per schedule to be completed by next quarter.

GHL to offer Alipay services in Philippines

“The company started with Alipay in 2016 in Thailand and Malaysia in April 2017 and now with the Philippine market, GHL looked to expanding further to the region as Alipay’s key Asean partner.”

To date, GHL Thailand has enabled over 900 merchant acceptance points and GHL Malaysia has enable 5,400 acceptance points in the hotels, retail chain stores, convenience stores and F&B space which has high Chinese tourist foot traffic.

GHL said 810,807 tourists from China visited the Philippines during the first 10 months of 2017, compared to the whole of 2016, which totalled 675,663.

“With the implementation of the visa upon arrival programme in the Philippines, it is expected to grow further. This bodes well for Philippine businesses and merchants as Chinese tourists generally carry the Alipay mobile wallet.”


Texchem to open 80 more Sushi King outlets by 2021

“This year, the capital expenditure of the group is planned to be around RM35mil, of which RM30mil is for the restaurant division while the remaining RM5mil will go to the industrial and polymer engineering divisions. There are presently 19 Yoshinoya and Hanamaru restaurants nationwide. Subsequently, there will be 20 new Sushi King restaurants opened each year until 2021.” Konishi said the group would also this year set up five new Yoshinoya and Hanamaru restaurants, costing about RM750,000 each.

“The polymer engineering division makes semiconductor trays and packaging for hard-disk drive. There are plans to diverse into manufacturing products to support the medical device and life science industries.”


Mexter’s healthcare business takes off

“The healthcare industry is a comparatively stable market and is anticipated to compensate for business cycle fluctuations. Mexter has chosen mother-and-child-related healthcare services as its maiden focus in the healthcare segment as Malaysia has a relatively young demographic, which makes this sub-segment an attractive business proposition with good long-term viability”

“This would make Mexter the first listed company in Malaysia (and globally to the best of our knowledge) to have postpartum care as its primary business,” CIMB Research stated.


IoT solution is Mikro MSC’s new growth driver

The new IoT solution would be a preventive solution for its consumers, as the real-time data and information collected could indicate if there are any possible defects. “For example, if the heat being released is more than usual, it could be an indicator that some parts have aged or need replacements. This helps avoid any disruption to our customers,” Fong added.

“It has taken longer than we expected to move to the new factory due to some approvals [that needed to be obtained]. Nonetheless, we are looking to complete the move by the first half of this year. Once all the new machines and automation are set in the new factory, they will also help enhance the efficiency of our operation. All these will eventually add to the bottom line moving forward.”


Saudee’s food service revamped

“We cannot keep operating a business-as-usual mode and expect to see changes in our earnings,” said Chong. Early last year, the group pulled up its underrated food service segment — involving the supply of ready-to-eat food products to restaurant chains — a non-core unit under the FPP sector, which was given a new lease of life. Chong said the measures were put in place in the second half of FY17.

“People tell us to sell cheap, but we don’t want to be branded in that category. We had no choice but to refocus on food service. The original equipment manufacturing (OEM) and exports under the FPP segment would remain. We want to do premium products only,” he added.

Saudee is also in discussions with a distributor in Japan to expand its food service business there. The group only supplies one OEM brand to Japan. Chong said more than 90% of its revenue is derived from Malaysia, with the FPP and trading segments contributing equally. Within the FPP, Saudee’s “own brand” product section makes up almost 80% of the business unit’s revenue.

“We are chopping the volume of trading tremendously because we don’t believe in that so much. It has incurred losses in the past. It gives revenue but not profit. We cannot control forex … it is unpredictable. We have to buy food products with cash. We have no time to react to forex [fluctuations]. It is like a hedging gambling business, which we don’t want to engage much in,” he said.


Perodua, Proton to be hit most by lending guidelines

“The continued high rejection rate for loan approvals will still be among the most difficult challenges not just for consumers but car companies,” MAA president Datuk Aishah Ahmad told a media briefing. “Excluding luxury vehicle sellers, as their markets have the money to easily buy their products, it’s the local players which will be affected the most.” Aishah pointed out two prevailing issues which could reinforce more stringent lending practices, namely the implementation of the Malaysian Financial Reporting Standards 9 (MFRS 9) since Jan 1, 2018, as well as the high household debt levels.


Ireka joins China firms to explore driverless rail transit

CRRC UT president Gu Yifeng said the ART system, developed by China-based CRRC Group, is already operating in Zhuzhou, China and the company intends to make Malaysia a springboard to the rest of Southeast Asia. “Why we chose Ireka? From what we have seen, Ireka has been in the construction industry for the past 50 years and it has a strong technical capability, focusing on professionalism,” he told a news conference after the MoU signing ceremony yesterday. Our investment in Ireka was a good start for both companies to create a synergistic collaboration and investment. If the Malaysian market requires us to invest more, we will definitely do so.”

“Construction still accounts for almost 90% of our turnover and our outstanding order book currently stands at about RM400 million, which should keep us busy for two years.”


Stronger ringgit good for F&N as net importer

“A stronger ringgit is definitely good for the group and its overall business. For example, we import a lot of dairy products, especially raw materials, from several foreign countries and transactions are predominantly done in the US dollar.”

“The first quarter [ended Dec 31, 2016 or 1QFY17] was a bit tough for us as it was the peak [of raw material costs]. But now, we can breathe a little.”

“Our products are for the masses and for that reason, we believe increasing prices are the last thing will consider. As it is, sugar prices are moderating, so increasing prices is not on the cards.”


iPay88 online transactions hit RM6.6bil

“In the month of January 2017, we recorded a little less than two million mobile-type online payments. Moving onward to December 2017, in that month alone this number shot up to 3.5 million mobile online transactions.”

“More shoppers are now accessing the shopping sites using a mobile (device) than a desktop. iPay88 statistics show that the trend of m-Commerce has been changing since 2015. In the first quarter of 2015, desktop transactions doubled mobile transactions. Subsequently in the first quarter of 2016, mobile transactions were on par with desktop transactions.”

US tariffs to hit Malaysia PV exporters most

Malaysia has emerged as the largest exporter of PV cells and modules to the US with a market share of 25% by value and 30% by capacity in 2016, benefiting from the fall in China’s share from a peak of 59% in 2011 to 21% in 2016 after the US imposed anti-dumping and countervailing duties in 2012. The US government alleges that China’s PV manufacturers evaded these tariffs by subsequently shifting PV production to countries like Malaysia, Singapore, Germany and South Korea.

“UN Comtrade data shows outbound shipments of PV products to the US comprised 1.1% of Malaysia’s total exports in 2016. According to a Malaysia Investment Development Authority (MIDA) survey in 2016, 89% of Malaysia’s total PV production was exported.”

Company Notes 2017.10.20

Digi.com Q3 FY2017 Results

Digi continued to register notable milestones, with our 4G Plus network being one of the fastest growing networks in Malaysia, capable of delivering consistent LTE speed around 10Mbps 80% of the time. Meanwhile, rapid LTE 2600Mhz and LTE 900Mhz deployments expanded Digi’s LTE-A coverage to 49% of the population, making us the frontrunner for widest LTE-A network coverage nationwide.

Postpaid ARPU levelled to RM77 on the back of a larger postpaid subscriber base supported by sturdy demand for our new postpaid plans. Prepaid ARPU steadied at RM32, with higher contribution from prepaid internet revenue.


Palette Multimedia Q1 FY2018 Results

Palette has moved into the medtech space with the significant investment made over the past few years on the development of imedic, the mobile health system. imedic enable patients to have wireless medical devices at home or anywhere, to regularly make measurement and upload the vital sign data to the Cloud. This would allow doctors from anywhere in the world to have access to the patient’s data 24×7 to review and provide online consultation to the patients. More than 15 devices have been developed to connect to imedic including CPAP machines for sleep apnea patients. The Company will continue to invest in the innovation and development of its next generation of imedic with extensive artificial intelligence (AI) technologies performing analytic on the “Big Data” of the patients and make useful recommendation of diagnosis and treatment plan to the doctors and patients.

The Company has effectively combined the latest innovative technologies: medtech, AI and Big Data in imedic. The power to be unleashed from these 3 technologies could be enormous. In additional to its early adoption by hospitals and doctors in the China market and other Asian countries, the Company has made successful penetration into the Russia market. The Company has recorded profit last quarter and Q1 FY2018. The Board of Directors is in the opinion that the Company will be profitable for the current FY.

Scientex expects growth from major investments

“For the manufacturing side, for the last three to four years, we have invested probably almost RM1 billion to expand the capacity to [produce] 350,000 tonnes [of stretch films per year].”

He said the group’s new stretch film facility in Arizona in the US is on track to commence its operations early next year. The two lines at the US facility, he said, will take about two years to be fully utilised. At full utilisation, the plant will be able to produce up to 30,000 tonnes of stretch film per annum. With this new plant, Lim said the group expects its sales in the US market to increase further.

Scientex now has a total land bank with a gross development value (GDV) of RM11 billion, which includes completed projects with a RM3.2 billion GDV and ongoing projects worth RM1.5 billion. The remaining RM6.3 billion worth of land will be used for future projects which can last the group for up to 10 years, said Lim.


Oriental Food seeks growth via biscuit venture

“We originally planned to launch our biscuit products this month, but we wanted to make a bigger impact by launching the entire series on the market. We still have another few products to finalise and we will be launching them next month.”

“We can easily add machines to our existing four production lines for our potato products. Adding one [machine] could boost our revenue probably another 5% to 10%. But in order to have more growth, we have to venture into another [new] segment.”

“For this financial year (FY18), it is very difficult for us to estimate our bottom line due to the rising cost of raw materials and labour. This year, we see a rise in sugar prices, as well as packaging cost due to higher paper prices. And the price of paper is expected to rise by another 8% in the near future as some China paper mills had stopped production on environmental grounds, resulting in supply shortage.”

“Although we absorb some margin loss, all of us are still making money,” he said, adding that raw materials account for 60% of the group’s production cost.


YSP Southeast Asia’s Vietnam ops to break even

“Our bottom line was previously very much affected by unrealised foreign exchange losses due to the volatility of the Vietnamese dong and the US dollar.” YSPSAH purchases a good 60% of its raw materials in US dollars. Lee said its exports, which are also denominated in US dollars, helped mitigate the situation.

“Our animal use drugs segment faces strong headwinds”, he said, since this segment, which caters to livestock and aquatic creatures, took a hit after the Chinese embargo on Vietnamese swine took place. Vietnam is one of the biggest pork producers in Asia, and the largest within the Asean region. The biggest buyer of Vietnamese pork used to be China, up until political tensions between both countries led to an import ban in November last year. “We have been trying to reduce our reliance on the domestic market there, and instead to focus on exporting products from there.”

The Vietnamese plant is running at a rather low utilisation rate of 40%, where it manufactures over 50 registered products that are distributed to more than 1,200 clients through 35 YSPSAH sales representatives to date. Lee said this is not its full range of products just yet. By year end, YSPSAH aims to have a total of 60 products registered and launched in Vietnam.


Affin to focus more on retail banking

The group now wants to shift its focus to retail banking, which had already contributed close to 50% to overall revenue this year.

“In this five-year programme from 2016 to 2020, we have allocated about RM300 million to spend not only on IT (information technology) but also with a view to improving the performance and delivery of our retail banking operation. So it’s actually quite a substantial improvement. I think we are well within our target to meet the 40% goal for Islamic banking by 2020 [set] in the Malaysian financial sector blueprint.”

“The positioning of the bank will be enhanced because the bank is at the apex [of the corporate structure], and hence [it holds] all the assets of the entities underneath it so the size will be enhanced as well. The bank will also have a direct access to the capital and equity market which, again, profiles the company as a much stronger entity.”


MPay gets MCMC licence to roll out mobile services

“With the ASP licence obtained from MCMC, MPay Mobile has become the latest mobile virtual network operator (MVNO) in Malaysia supporting a wide spectrum of services to the public nationwide, including the latest high-speed broadband 4G network.”

“Enabling Asia is a mobile virtual network aggregator, who has a wholesale MVNO agreement with one of four network operators in Malaysia, offering a complete network product and services to MVNOs.”

“The aim is to bring more convenience and accessibility for customers who are located at remote areas with difficulty to access to bank branches, or who intended to move away from traditional banking at branches towards online and mobile banking.”


Bellew explains why he is leaving Malaysia Airlines to return to Ryanair

On Malaysia Airlines, Bellew pointed out that success is just within its grasp. Just another 4%-5% in revenue monthly and it should move to profits, he added.

“It is Ireland’s greatest company. They need my help and there is a big challenge. It is a form of national service,” he said in a personal statement why he was rejoining the Irish low-cost carrier.

ASEAN Open Skies implementation remains slow — IDEAS

“Freedom of travel in air is characterised by nine different levels of freedom. Asean has implemented perfectly the first four levels of freedom, [while] the fifth freedom is in progress. The ninth level of permission, which is the final spectrum of freedom of air, essentially gives an airline the freedom to travel in the domestic destination of a foreign country, not just the capital city itself. We are halfway to full freedom of flight in the air. There is an understanding among the Asean countries that this can be done by the year of 2020, but as a think tank, we observe that the progress has been slow, and a lot of obstacles at regulatory and policy levels still exist.”

Ali noted that there are no national supportive policies in certain large countries in the region, which allows a foreign carrier to freely navigate across the country. “And then there are of course government-owned airlines operating in different countries, which also impose restrictions on private airlines originating from the same region to fly without permission,” he said. Therefore, Ali opined that Asean governments should stay away from aviation businesses over time.


Unshackle the EPF or face the consequences

The provident fund, which endears itself to many above 55, warned that it may not be able to keep up with the current rate of dividends if there are continued restrictions on its efforts to invest outside Malaysia.

The returns from its investments overseas outweigh the proportion of money allocated. For instance, as at June 30 this year, the returns from overseas investments accounted for 32.5% of the EPF’s total investment income. This is despite overseas investments making up only 29% of the total investment assets of the fund.


Economists warn of inflation if minimum wage hiked

“If there is a minimum wage increase next year, it would likely result in a cost-push inflation as businesses are likely to pass on the rising costs to consumers. It would also contribute to demand-pull inflation at the back of income growth. The increase in minimum wage will cascade up to other income groups and higher wage across the economy.”

“We will see another round of inflationary pressure [if minimum wage is raised], but it’s crucial to move Malaysia out of the low-wage industries. We need to move to higher value products and services. The increase in minimum wage will force manufacturers to seek out for higher value-added jobs and activities rather than the low value-added [jobs], high volume output.”

Noting that the minimum wage-earning workers in Malaysia are largely made up of foreigners, she said an increase in the wage rate could spur Malaysians to take on more of these jobs, and thereby help reduce unemployment in the country.

“A hike will add to the costs of doing business, which may mean more people in the lowest strata losing their jobs,” Wan Saiful said, adding that an increase in wages should come only after there is an increase in the productivity level.

Company Notes 2017.08.04

Malaysia Airports Q2 FY2017 Results

MAHB’s network of airports (including Istanbul SGIA) recorded 61.7million passengers in YTD 2017, representing a growth of 9.5% over YTD 2016. International traffic improved by 13.0% while domestic passengers traffic increased by 6.8%. Correspondingly, aircraft movements improved by 3.1% with international and domestic aircraft movements increasing by 4.5% and 2.3% respectively.

The improvement in passenger growth is driven by a new level of growth contributed by visa relaxation measures for China and India, new additions in the local travelling population, increase in Umrah travel, competitive fares as well as favourable exchange rate for foreign tourists.

The increase in demand was adequately supported by increase in airlines’ seat capacity. Seat capacity supply estimates for the second half of 2017 indicate a 6% growth over the second half of 2016, setting the tone for a solid year for passenger growth.


Lotte Chemical Titan Q2 FY2017 Results

…the decrease in the sales volume due to the decrease in production volume attributable to unplanned water interruption by Syarikat Air Johor in April 2017 and lower sales due to festive holiday in June 2017. Partially offsetting the effects of the decrease in sales volume on Group revenue was a 19.0% increase in average selling price.


Lotte Chemical Titan takes nosedive

While the group had disclosed the water supply disruption in its IPO prospectus, the significance of the impact was not made clear as analysts did not expect the incident would have taken a heavy toll on its profit.

“After this year, the maintenance and turnaround work — which is done every five years or so — will be completed. LCT’s refining margin is a bigger factor but the expectation is that margins should be maintained next year.”


United Plantations Q2 FY2017 Results

The main risk for a lower production than initially anticipated is mainly continued labour shortages, in relation to especially the workforce assigned to crop harvesting and evacuation, which undoubtedly will have a negative impact on all plantations companies during the forthcoming peak crop expected in July-Sep 2017.

…with historically high U.S. soy bean plantings that took place in early 2017 and which will be harvested from September onwards, there may likely be a large recovery in global vegetable oil stocks. Whilst this would put a lid on further upwarad momentum on prices, the weather across the farming regions of the U.S. will be a significant price driver during the coming quarter and must be a factor closely watched.


Texchem Resources Q2 FY2017 Results

…unfavorable sales mix in industrial division; cessation of a loss making subsidiary in China in Q4 2016 in polymer engineering division; lower pre-tax loss due to better operating environment and cost management in food division; closure costs arising from cessation of business by a subsidiary and losses from new concept restaurants in restaurant division…


Palette Multimedia Q4 FY2017 Results

After the successful launch of iMedic in Malaysia, Palette in partnership with HSC Hospital has started a patient recruitment campaign. In addition, development has started on the next phase of iMedic software targeted at smaller clinics and individual medical practitioners. This will be a multi platform solution offering iMedic’s unique features to a market segment that at the moment only has access to old style clinic management systems. It is anticipated this development will be completed by Q4 2017. Further development is also ongoing with software being developed to integrate a wider range of medical devices and IOT sensors into the iMedic platform.


Key Asic FY2017 Quarterly Results

…working on the variation of K-card that allows 2-way communications for medical equipment uses. This technology would connect such equipment to the service provider directly and remotely through internet cloud. The significant of this 2-way communications would potentially save time, cost and life for people that require the services of service provider on regular basis. One of the specific example of such medical device is CPAP (Continuous Positive Airway Pressure) machine for those with sleep apnea problem. We are currently working with Sefam (a French Company) and u-wish (a Taiwan Company) to bundle our Kcard with their CPAP machine. The Group has started to supply to u-Wish to be bundle with their CPAP machine. In addition, the Company through its subsidiary in Taiwan has successfully market our K-card solution to a fitness company. Although the revenue contribution is not yet significant, but it does show the potential of our chip.


Fraser & Neave Q3 FY2017 Results

Input costs in the near to mid term for F&B Thailand and F&B Malaysia are expected to increase following the uptrends in packaging cost, milk powder and sugar prices.


SLP Resources Q2 FY2017 Results

…higher costs of raw materials mainly caused by higher average prices of plastic resins in the current quarter. The unfavourable conversion of selling prices in USD for the export sales due to strengthening of MYR had also contributed to the lower PBT…

…to strengthen operational and financial performance by continuing the implementation of a series of process improvement and ongoing expansion plans to achieve better overall operational and cost efficiency.

CCM to demerge from CCM Duopharma to improve capital structure

With direct ownership in chemical and polymer coating, as well as the pharmaceutical company following the completion of the proposed distribution and capital reduction, the entitled shareholders of the company can manage their investment exposure or rebalance their portfolio in each of these businesses independent of each other according to their individual investment objectives.

As the purpose of undertaking the internal reorganisation is to facilitate the proposed distribution and capital reduction, CCM will seek an exemption from the Securities Commission from the obligation to undertake the mandatory offer.

Company Notes 2017.07.21

Pentamaster in a filing with Bursa Malaysia

The three units will be injected into PIL for a collective RM86.78 million, which will be satisfied via the issuance of 999 PIL shares to Pentamaster.

“The internal reorganisation will facilitate a more efficient group structure by way of promoting a better segregation of business responsibilities and operations for Pentamaster’s existing automated solution business and its other smart control solution system business. This will in turn enable the management of the automated solution business and smart control solution system business to efficiently allocate resources and focus on their respective businesses. In addition, the internal reorganisation will also facilitate PIL to act as the listing entity for the proposed listing.”


Icapital.biz in a filing with Bursa Malaysia

With another rate hike expected in the coming months and the Federal Reserve’s plan to unwind its US$4.5 trillion balance sheet, this is confirming what I wrote in the said commentary – “With the US economic recovery remaining intact, one can expect the normalisation of her monetary policy to proceed at a pace faster than in 2015 and 2016.” Again, we hope that investors are prepared for this in a calm manner

…in a reflection of the uncertain global economic conditions created by the US-led 2008 global financial crisis, the Bank of Italy recently advertised for 30 junior positions with an annual salary of €28,000 and it received 85,000 applications – nearly 3,000 candidates for each post. With Italy’s youth unemployment close to 40% and the overall level at 11.3%, steady jobs are in huge demand. The trouble in Italy is that, once an employee is hired, it is hard for a company to get rid of them no matter how incompetent they might be. How Italy and other European nations got into such a devastating mess deserves deep research by the government and policymakers.


Capitaland Malaysia Mall Trust in a filing with Bursa Malaysia

The decrease was mainly due to negative rental reversions from Sungei Wang Plaza as it continues to be temporarily affected by the ongoing Mass Rapid Transit works and the closure of BB Plaza. Lower gross revenue was recorded for The Mines mainly due to lower rental rates and occupancy whilst lower gross revenue in Tropicana City Property was mainly due to lower occupancy at the office tower. The decrease was mitigated by better performance from Gurney Plaza and East Coast Mall on the back of higher rental rates achieved.

As the competition in the market place heats up with the opening of new shopping malls – of which many are located in the Klang Valley – in the second half of this year (2H 2017), the Manager expects the operating environment to remain challenging. As CMMT’s malls are largely focused on day-to-day necessity shopping, they have proven resilient through economic cycles in the past and should continue to do so. The Manager also expects the recent commencement of the Sungai Buloh-Kajang Mass Rapid Transit line to benefit Sungei Wang Plaza in the long term.


Maxis in a filing with Bursa Malaysia

…added 41k new subscriptions, achieving the highest net additions following the revamp of the flagship MaxisONE plan. The Power of ONE campaign which enabled subscribers to own a wide range of devices for RM1 continued to attract high ARPU customers. As a result, the Group has grown its MOP subscription base to 1.9 million with monthly ARPU of RM120, which is higher than the blended ARPU of RM102.

Prepaid ARPU was stable at RM42 per month supported by continuous growth in mobile Internet revenue…Hotlink FAST base has now surpassed 1.8 million subscriptions with monthly ARPU of RM44.

Customer demand for data continues to grow strongly, supported by the rising consumption of social media, increasing availability of TV and video on mobile devices and better user experience on mobile network.

Blended smart-phone penetration stood at 79% against 70% in the same period last year. Blended data usage grew more than double in the last 12 months and is now at 5.0GB/month. The Group’s expanded 4G LTE network, with a nationwide population coverage of 89% on a comparable peer basis, continued to be an important differentiator for customers to enjoy high speed unmatched digital experience.


Westports in a filing with Bursa Malaysia

Due to the ongoing changes in the container shipping industry, we expect our container throughput to be lower when compared to the previous year by between seven percent and twelve percent.

The second phase of Container Terminal 8, consisting of a 300-metre wharf and supporting terminal operating equipment and facilities, have just been completed and are expected to be commissioned into service soon. The total terminal handling capacity would then be increased to 12.5 million TEUs.

Construction work continues at the first phase of Container Terminal 9, consisting of a 600-metre wharf, and is expected to be completed by December 2017.


Syarikat Takaful Malaysia in a filing with Bursa Malaysia

For the year 2017, Takaful Malaysia will continue to emphasize the four core areas of customer reach, operational agility, cost competitiveness and stakeholder confidence to increase its overall market shares and continuously improving shareholders’ value… promote its unique proposition of rewarding a 15% Cash Back to its General Takaful customers for no claims during coverage period.


British American Tobacco (Malaysia) in a filing with Bursa Malaysia

Illegal cigarettes incidence for the same period has increased by about 16% from 50.0% in the first half of 2016 to 57.9% in May 2017. This was driven by the price gap between legal and illegal cigarettes and current macroeconomic factors that are impacting consumer spending power…in line with volume decline and the cessation of contract manufacturing for exports as of 31st December 2016.


TAS Offshore in a filing with Bursa Malaysia

Indonesia is expected to export about 30 million metric tons of bauxite alone in 2017 as a consequence of the easing on export ban of unprocessed mineral ores by the Indonesian government. This may call for the demand for vessels required for such activities.


WZ Satu in a filing with Bursa Malaysia

For civil engineering and construction segment, the Group not only accumulated an order book to last for the next two to three years but also the Group is confident that its order book will grow beyond the run-off rate. The current order book of RM1.0 billion will ensure the Group is kept busy for the coming financial year and beyond.

WZS Misi Setia Sdn Bhd’s (“MISI”) investment in the Automated Pipe Spooling fabrication plant has kicked-off well and has led to successfully securing contracts in The Refinery and Petrochemical Integrated Development (“RAPID”) project. Since the previous reporting, MISI has secured additional works on top of existing contracts for RAPID projects. The above investment has come on stream and has been successfully translated into meaningful results as reflected and registered in the current quarter oil and gas segment result.


Saudee Group in a filing with Bursa Malaysia

…new products going to markets both locally and abroad. The Group has started collaboration with a few strategic partners to produce new halal food product to cater to the local and exports market. The product, manufactured under a patented technology, has a significant untapped market both locally and overseas.


Cycle & Carriage Bintang in a filing with Bursa Malaysia

The Mercedes-Benz trading operations recorded a loss primarily due to increased competitive intensity resulting in lower
unit sales, reduced margins and to a lesser extent higher operating expenses.

…with the model mix moving away from S-Class to the lower margin GLC-Class and E-Class. Margins suffered further due to strong competition in the premium car market.

Furniture exports keep growing

“The ban on rubberwood export would ensure sustainable supply to the furniture industry to achieve Natip’s RM16 billion target.”

“If we are allowed to employ five foreign workers for one local employee (5:1), we can expand faster but the home ministry wants to stick to the 3:1 ratio.”

“Malaysia wants to have a balanced policy by keeping the upstream players including the rubberwood sawn timber mills happy instead of helping the downstream value-added furniture industry. But Malaysia can export a quota of 100,000 cubic metres of rubberwood which would generate a total revenue of RM200 million to RM300 million. However, we hope the government would consider reducing the quota to 40,000 cubic metres.”

“Some manufacturers are thinking of Vietnam where there is sufficient labour and raw materials like acacia wood for use in our furniture. If the environment is not good, with unfriendly policies that impede growth, we might think of moving out of Malaysia.”


Mobile healthcare app to revive Palette’s earnings

The demand for mobile healthcare in Malaysia is not as good as in China at the moment, but we are targeting the locations that have higher tourism numbers such as Penang, Melaka, and Kuala Lumpur. We expect the whole mobile healthcare business segment to contribute about RM3 million to RM5 million in revenue…”

…it plans to diversify into traditional Chinese medicine (TCM) to expand its earnings base by acquiring a 51% stake in TCM, food and herbal supplements trader Genopharma Sdn Bhd (GSB) for RM1.53 million.


Prestariang sees strong growth from SKIN

“It is a government-led initiative, as the current system needs to be refreshed and rebranded because some of the technologies used are old and things have changed. It is considered as zero risk for the government through the build, operate, maintain and transfer method under the public-private partnership.”

Payment to Prestariang will commence upon full commissioning of SKIN, with an average annual payment of RM294.7 million for 12 years (from the fourth to the 15th year) during the maintenance and technical operations period.


Foreign insurers are said to plan US$2 bil of Malaysia deals

A sale of a 30% stake in Great Eastern Life Assurance (Malaysia) Bhd could raise about RM5 billion (US$1.2 billion), while the disposal of a similar stake in Prudential Malaysia Assurance Bhd would fetch at least RM3 billion.

Foreign insurers have until end of June 2018 to reduce their holdings in local firms to 70% at most. The country’s central bank has been weighing tougher enforcement of a cap on foreign ownership as it seeks to boost local participation in the industry.


Bank Negara: Housing loan criteria review won’t resolve affordable housing issue

“Housing affordability has not improved significantly where average national house prices remained at 4.4 times of median income (affordable range is 3.0 and below), with lower affordability recorded for some major states and urban cities. Housing developers, working together with authorities and relevant stakeholders, should therefore intensify efforts to reduce costs and accelerate supply.”


RAM: Malaysian ports throughput growth to “remain at low single digit”

“Malaysia’s throughput remained resilient in 2016, with container throughput recording a 10-year CAGR [compound annual growth rate] of 6% while that of cargo throughput came in at 5%. At the same time, Malaysia handled more than 25% of the containers passing through the Asean-5 nations, in other words Malaysia, Singapore, Thailand, Indonesia and the Philippines and accounted for 3% of world container traffic.”

“On that note, regional port expansion is under way in Singapore, Malaysia, Indonesia, Thailand and the Philippines, adding at least 100 million TEUs (20-foot equivalent units) of new container-handling capacity over the next 20 years, with most of this planned along the Straits of Malacca. Although the new capacity will provide opportunities in terms of scale, there is a possibility of running into a supply glut and an ultra-competitive situation if trade growth does not keep pace.”


Don’t get ‘punch-drunk’ over Belt and Road, Munir urges Malaysia

“We must not be overwhelmed by the sheer size of the Belt and Road and think that good things are going to happen automatically. We must look at which part of it will work for Malaysia, and inevitably for Asean.”

…China’s investments in Malaysia’s planned port and railway projects over the next two decades could be as much as RM400 billion or 32% of the country’s expected gross domestic product (GDP) in 2017.

Data from Malaysia Investment Development Authority (Mida) showed that China is currently the largest foreign investor in the country. In 2016, Mida approved a total of 33 China-led projects valued at RM4.8 billion, almost double 2015’s tally of 17 projects worth RM1.9 billion.


Nazir urges govt to scrutinise benefits of Chinese-led deals

“What are the lessons that we have learnt across the 60 countries that have experiences in negotiating with the public and private China. This year is the 20th anniversary of the Asian financial crisis. What caused it? It is the infrastructure debt. Isn’t there a risk? This (Obor) is going to create huge infrastructure debts in the 60 countries. Nobody will not dare not to repay China. Therefore, the risk will eventually end up in sovereign balance sheet and then we have a problem. If this happens in many countries, then we have an Asian problem. That is one caution that we need to bring to the table.”