Entrepreneurs are a dime a dozen in Malaysia, and this comes as no surprise when we think about the ecosystem that has been built to cultivate successful ventures. From having a Malaysian Global Innovation and Creativity Centre (MaGIC) – which is carrying out operations as normal – to having plenty of government aide programmes as […]
KUCHING: Sapura Energy Bhd (Sapura Energy) was the most actively traded stock on Bursa Malaysia yesterday following news that the company had bagged nine new contracts worth RM1.8 billion. At closing, the stock rose 7.5 per cent to 64.5 sen from Thursday’s close of 60 sen, with 198.25 million shares changing hands. In a statement […]
HONG KONG, June 22 — Three years after a wave of forced selling by margin traders fuelled a collapse in China’s stock market, a new breed of leveraged shareholders are threatening to trigger another downward spiral. More than 5 trillion yuan…
PETALING JAYA: Malaysia Airports Holdings Berhad (MAHB) managing director Datuk Mohd Badlisham Ghazali has stepped down following the expiry of his contract today.
“MAHB hereby announces that today, June 22, 2018 is the last day of Badlisham's contractual tenure as the managing director of MAHB; a position he has held since June 23, 2014,” the airport operator said in a statement today.
In the interim, MAHB said group CFO Raja Azmi Raja Nazuddin will serve as acting CEO of MAHB until the suitable candidate is identified.
“Raja Azmi has the full support of the board, having been with MAHB for over two years and having significant experience behind him.”
MAHB chairman Tan Sri Syed Anwar Jamalullail expressed deepest appreciation to Badlisham for his efforts and dedication in steering the group over the last 4 years.
MAHB said its immediate to long-term strategy involves the designing and implementing of a plan to enhance its quality of service on an evolving scale that always keeps the company ahead of tomorrow's customer requirements.
“MAHB will focus heavily on increasing operational and logistics efficiencies and enhancing human convenience. The company will further equip itself with the funding required to expand facilities in order to effectively manage the increasing volume of traffic, visitors and cargo shipments.”
MAHB's share price was down 4 sen or 0.5% to close at RM8.75 on 4.15 million shares done.
PETALING JAYA: Sapura Energy Bhd's share price rose 3.33% this morning after it secured nine new contracts valued at RM1.8 billion.
At 11.03am, Sapura Energy stood at 62 sen with 72.12 million shares changing hands.
Through its wholly-owned subsidiaries, the group will be executing a series of diverse jobs across the upstream value chain in Malaysia, Australia, India and Mexico.
The contracts win brought the accumulative value in contract wins to-date to RM4.5 billion for the group.
PETALING JAYA: Analysts have slashed earnings forecasts for Telekom Malaysia Bhd (TM) by as much 20% after Multimedia and Communications Minister Gobind Singh Deo indicated that broadband prices will drop by at least 25% by year-end.
The news also sent TM's share price down by as much as 14% today to a day low of RM3.12. At market close, the stock was 49 sen or 13.5% down at RM3.14 on volume of 68.53 million shares.
PublicInvest Research expects TM to post a reduction of 8% to 30% in average revenue per user (ARPU) but its subscriber base could rise 15% annually as broadband becomes more affordable. It will also prompt TM to be more aggressive in implementing cost-cutting measures in order to grow its bottom line.
After taking into account lower ARPU, higher customer base and lower operating costs, PublicInvest Research has cut its FY18-20 earnings forecasts for TM by 6% to 20%. Its target price for the telco's share is reduced from RM5.60 to RM4.65 with a “trading buy” call.
Given subdued revenue growth, PublicInvest Research believes TM's management will be more aggressive in implementing cost rationalisation measures in order to deliver earnings growth beyond FY19.
“We reckon areas for cost efficiency improvement include direct and manpower cost, which accounts for 40% of total cost.”
Due to the negativity surrounding TM and the industry, MIDF Research has downgraded its call recommendation to “sell” from “neutral” with a lower target price of RM3.02 from RM4.09.
“To be on the conservative side, we are cutting FY18 and FY19 earnings estimates downward by -1.7% and -10.4% respectively as we reduce our broadband ARPU assumptions to reflect the government initiative of making internet services more accessible to the masses.”
The research house opined that any cost-saving initiative programme implemented by TM would be inadequate to match the reduction in broadband prices.
“In addition, due to the earnings pressure and the group's commitment capex commitment for long-term growth, we expect the dividend payment to remain unattractive as well.”
AmInvestment Bank, meanwhile, said a 25% reduction in Unifi (TM's broadband service) revenue alone could potentially wipe out almost 90% of TM's FY19 earnings. “Including a similar reduction in Streamyx revenue, it will translate to a slight loss for TM.”
Following that, the research house expects TM to continue appealing to the government to reconsider its decision as such a drastic cut will derail the group's capex rollout programme under the High-Speed Broadband 2 drive to connect suburban and rural areas.
“This will also hinder plans to provide internet access throughout Malaysia, which Gobind indicated may be recognised as a basic human right by the government.”
AmInvestment Bank also noted that the national agenda to reduce broadband prices together with TM's convergence strategy to offer quad-play services to eventually lead the path towards sector consolidation as the need for a potential re-merger with Axiata Group is re-accentuated by its weak Q1 18 results.
BEIJING, June 21 — Starbucks Corp has reported a sudden slowdown in China growth just weeks after trumpeting rapid expansion in the country, citing a drop-off in unapproved third-party delivery services whose bulk orders had been clogging up its…
PETALING JAYA: Tan Chong Motor Holdings Bhd has secured the exclusive rights to distribute King Long coaches and buses in Malaysia for a period of five years.
The working capital for the new business is estimated at RM6.5 million, which will be internally funded by the group.
Tan Chong said in a filing with the stock exchange, its wholly owned subsidiary TC Trucks Sales Sdn Bhd (TCTS) had on June 20 entered into an exclusive distributorship agreement with China’s Xiamen King Long United Automotive Industry Co Ltd for the partnership.
TCTS has been appointed as King Long’s sole and exclusive distributor, assembler and after-sales service provider (including the sale and distribution of spare parts) of King Long coaches and buses, in both completely assembled form and in its bare chassis form, in Malaysia.
TCTS is expected to start sales of King Long products in the fourth quarter of 2018 and to contribute positively towards the group’s earnings in the long-term.
Worth noting is that another wholly owned subsidiary of Tan Chong – TC Motor Vietnam Co Ltd was appointed as King Long’s sole and exclusive distributor, assembler and after-sales service provider of the XMQ6829Y King Long coach model in Vietnam.
Tan Chong said King Long is familiar with the Malaysian sales and after sales regulations and market situation.
“They have gained the experience via their participation in local tender through their previous distributor in Malaysia whereby they have been able to obtain and comply with the strict tender requirements.”
Tan Chong’s share price edged up 2 sen or 1.1% to close at RM1.84 today on 12,000 shares done.