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Stocks In Focus MY (Astro, Brahim’s Hldgs, SHL) – 02/04/15
Malaysia Daily Bulletin | 02 April 2015

Astro Predicts Challenging FY16

  • Astro Malaysia Holdings ended FY15 with revenue of RM5.2 billion, a 9 percent increase from RM4.8 billion in FY14. Net profit was RM519.4 million, a 16 percent increase from RM448 million.
  • The company expects a challenging environment next year, if not more challenging due to the slower economic growth prospects and the 6 percent goods and service tax (GST) implementation from 1 April 2015 onwards.
  • Astro’s performance was underpinned by expansion in customer base.
  • Significance: Astro remains confident that the company will maintain cash generation while maintaining dividend payout as it continues to invest in its growth strategy.

    Brahim Unit Extends Catering Deal With Malaysia Airlines

    • Brahim’s Holdings owns 70 percent of in-flight caterer Brahim’s Airline Catering (BAC), which has a 25 year contract that expires in 2028 to serve meals and related services at the KL International Airport and Penang International Airport.
    • BAC entered an extension agreement (EA) with Malaysia Airlines (MAS), extending its new catering agreement (NCA) cut off date from 31 March 2015 to 30 April 2015, facilitating negotiations for the NCA.
    • The EA is to give more time for the parties to negotiate and conclude the NCA with a common goal to expedite the signing.
    • Significance: The company is currently renegotiating its catering contract with Khazanah Nasional under the latter’s rationalisation plan for the national carrier.

      SHL Seeks Extension To Meet Public Spread

      • SHL Consolidated will be seeking an extension of six months from Bursa Malaysia to meet the public shareholding spread requirement.
      • The current public spread is 23.5 percent, which is 1.5 percent short of the minimum 25 percent required.
      • The non-compliance came after Datuk Yap Chong Lee acquired 3.6 million shares on 24 March 2015 via Yap Chong Lee Holdings.

      Significance: SHL has yet to draw up any plan to rectify the shortfall, but will endeavour to formulate a plan as soon as possible.

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