Tuesday 10 June 2014

 Update

MAS - Revival Plan Within 6 - 12 Months From June 2014

Khazanah Nasional has reiterated its commitment to continue with its shareholders’ role in MAS in the near term.

Khazanah Nasional was reviewing all options for MAS. It also dismiss the possibility of selling the company.

Khazanah Nasional owns 69% of MAS.

 

Meanwhile the Malaysian government will announce a plan to revive MAS within 6 to 12 months. MAS had enough cash to operate for the next 12 months from June 2014, beyond which it needs to have a sustainable business model in place.

 

Markets

Sime Darby (SIME MK, Outperform, TP: RM10.10): Plans to double market capitalisation to RM100bn. Sime Darby plans to almost double its market capitalisation to RM100bn by 2016 from RM57.7bn recorded to date. In line with its five-year strategy blueprint for financial years 2012 until 2016, Sime Darby would continue to expand and strengthen its position in diversified business activities such as plantation, industrial, motor, property, and energy and utilities. (StarBiz)
SapuraKencana: Makes four non-associated natural gas well discoveries. SapuraKencana Petroleum’s unit, SapuraKencana Energy Sarawak Inc (SKE), has made four significant discoveries of non-associated natural gas in the SK408 production-sharing contract (PSC) area, offshore Sarawak. SapuraKencana Petroleum said the four-well discovery, from the first four exploration wells, was within the primary target of the Late Miocene Carbonate reservoirs. SK408 Block is located in shallow waters about 120km offshore Sarawak covering an area of about 4,480 sq km. “These are the first four wells of a 10-well commitment in the SK408 PSC,” it said. (StarBiz)
Mah Sing: Expects building costs to go up regardless of GST. When GST is implemented next year, prices are expected to rise by 4% for residential and 6% for commercial properties on the back of higher construction costs, according to Mah Sing Group. The price hike was particularly for projects which developers have not factored in the GST impact. Corporate and investment ED Datuk Steven Ng Poh Seng said that even without the GST, material costs were already expected to go up. The effect on Mah Sing’s property prices, he added, would be a 2.25% increase. (StarBiz)
Amcorp Properties: Inks PPA with TNB. Amcorp Properties has completed and commissioned a 10.25MW solar power plant in Gemas, Johor, with the capacity to generate 1.2m kWh of electricity per month. The company has also secured a 21-year power purchase agreement (PPA) with Tenaga Nasional (TNB) to pay a feed-in tariff (FiT) rate of 87.4sen per kWh. “The plant is capable of producing 41,000 kWh of electricity a day, or 1.2m kWh a month, to fulfil peak-hour demand,’’ Chairman Tan Sri Azman Hashim said. (StarBiz)
RHBCap: To finalise Bank Mestika move in two weeks. RHB Capital (RHB Cap) will make a decision on its proposed acquisition of a 40% stake in PT Bank Mestika Dharma in Indonesia in two weeks, according to group MD Kellee Kam. Kam said the bank and PT Mestika Benua Mas were in discussions and would make the necessary decision on the exercise. The conditional agreement between both parties for RHB Cap to acquire the stake in the Indonesian bank will expire this month. (StarBiz)
KLCCP: Banks on organic growth, cost reduction. KLCC Property Holdings (KLCCP) expects organic growth and cost reduction to keep its revenue stream steady, said CEO Datuk Hashim Wahir. “In the short term, there will be no new space coming out. Our last was the KLCC Tower 3. Therefore, we are not expecting any big jump in revenue. Our revenue growth has always been steady at 3% to 4%, with profit growth at 7% to 8%,” he said. To reduce costs, KLCCP will practise economies of scale and harness the group’s strengths. (Business Times)