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Stocks In Focus MY (Bintulu Port Hldgs, Malakoff Corp, M’sian Pacific Industries) – 30/04/15
Malaysia Daily Bulletin | 30 April 2015

Bintulu Port Holdings Invests RM550 Million In 6 Projects

  • Bintulu Port Holdings (BPHB) plans to invest RM550 million in six major port development projects to reduce its dependency on liquefied natural gas (LNG) cargo.
  • The six projects include the conversion of an existing general cargo wharf for container operations, a proposed bulk fertiliser wharf at the second inner harbour, a proposed small barge berth at the edible oil terminal, LNG berth number 4, a proposed general cargo wharf and the development of a supply base terminal. The first project, the proposed general cargo wharf, will commence in 2017.
  • The new projects will be financed by the company’s internally generated funds and bank borrowings.

Significance: Last year, BPHB increased its total cargo throughput by 3.6 percent to 45.4 million tonnes, with LNG cargo contributing 25.5 million tonnes and non-LNG cargo 19.9 million tonnes. Besides reducing dependency, improved turnaround time of vessels where the waiting period for ships can be reduced can be expected of the new facilities. 

Malakoff Fixes IPO Price At RM1.80

  • Malaysia’s largest independent power producer Malakoff Corporation is set to raise up to RM2.7 billion via its initial public offering (IPO) based on the price of RM1.80 per share fixed for both its institutional and retail offerings.
  • Malakoff is issuing up to 1.5 billion shares representing about 30 percent of its paid-up capital in the country’s largest IPO so far this year.
  • The institutional offering comprised up to 1.3 billion shares while the retail offering consisted of 242.5 million shares.

Significance: Malakoff’s offer has been over-subscribed by 10 times. On 29 April 2015, Reuters reported the offer had been oversubscribed by 14 times by institutional investors and the institutional offering was said to have closed two days early on 27 April 2015.

MPI’s Results Above Expectations For 9M15

  • Malaysian Pacific Industries’ (MPI) nine-month earnings (9M15) were above expectations, accounting for 84 percent and 79 percent of CIMB Equities Research’s and consensus full-year estimates.
  • MPI posted stronger net profit of RM71.5 million compared to RM42.7 million in 9M14, attributable to better sales of higher-margin packages and strengthening in US dollar against Ringgit.
  • 9M15 revenue for MPI increased by 4.9 percent to RM1 billion from last year’s RM970 million, underpinned by higher contribution from its key customers in Asia and Europe. The impact was offset by lower contribution in US.

Significance: CIMB believes MPI will continue to benefit from its structural shift to higher-margin packages with growing exposure in smartphone segment. MPI is expected to record another strong performance in the fourth quarter of FY15 driven by higher shipment volumes and better contribution from its new product segment in land grid array and fine-ball grid arrays.

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