News Bites · Koperasi Permodalan Felda Malaysia Bhd intends to buy at least a 10% stake in Felda Global Ventures Holdings Bhd with the RM1.1bn proceeds from the proposed sale of its 51% in Felda Holdings Bhd. · The feasibility study of the LRT 3 line is expected to be completed by the end of next month and the project is expected to cost between RM8bn and RM9bn, said a source close to the matter. · Westports Holding Bhd is expecting up to a 10% volume growth in the next two years, helped by better worldwide transshipment activities, said chief executive officer Ruben Emir Gnanalingam. · Brahims Holdings Bhd is set to dominate the sugar market in Sabah and Sarawak by 2015 with the setting up of a RM150mn sugar refinery factory in the Demak Laut Industrial Park in Kuching. · Scomi Engineering Bhd is keen to participate in the elevated Mass Rapid Transit System project in Thiruvananthapuram and Kozhikode in Indias southern state of Kerala. · Malaysia Building Society Bhd aims to grow its childrens savings accounts segment by 20% next year, says Vice-President for Retail Sales, Azman Aziz. · Hwang-DBS (Malaysia) Bhds wholly-owned subsidiary has disposed of a vacant piece of freehold land, together with a commercial building, to Putrajaya Ventures Sdn Bhd for RM82.5mn. · Berjaya Auto Bhd will offer 82.76mn new ordinary shares under its initial public offering at an offer price of 70 sen apiece to raise RM57.93mn. · Caring Pharmacy Group Bhd aims to raise RM43.75mn in gross proceeds from its initial public offering based on the IPO price of RM1.25 per share. · Bank Negara Malaysia and the Bank of Korea yesterday jointly announced the establishment of a bilateral local currency swaps arrangement. · Bank Negara Malaysia governor says that there is no risk of asset bubble in Malaysia and the central bank will continue to be proactive in ensuring financial stability and avoiding excessive credit risks to the economy. · Chinas economy grew 7.8% in the third quarter of 2013 from a year earlier, matching consensus estimate and an acceleration from 7.5% in 2Q13. Sector Update Automotive Sector (Neutral) Total Industry Volume (TIV) picked up in September after a significant drop in August (-25.3MoM, -1.4%YoY). September’s TIV rose by 7.5% MoM and 19.6% YoY to 54,945 units. YTD, TIV grew by 6.4% YoY to 487,970 units. This represents 76.2% of Malaysian Automotive Association (MAA)’s forecast of 640,000 units in 2013 (+2.0% YoY). On an annualised basis, TIV works out to 650,627 units, which is 10,627 units or 1.7% higher than MAA’s estimates. YTD passenger vehicle sales grew 6.6% YoY to 430,488 units while commercial vehicles increased 5.4% YoY to 57,482 units. We expect sales volume for October to be higher compared with September due to aggressive year-end promotions and heavy marketing campaigns by car dealers. Both national car makers, Perodua and Proton reported strong sales in September after a significant drop in August. Both marques registered double digit growth - cumulative: +26% MoM, +33% YoY. Perodua’s sales surged 26.3% MoM and 26.1% YoY to 17,507 units. On the other hand, Proton sales also registered a commendable growth of 25.6% MoM and 42.1% YoY to 14,828 units. We believe Proton’s impressive sales growth was mainly driven by the strong response to Proton Saga SV variant and Proton Suprima S, which has officially launched in Aug 2013. Automotive sector is still lacking of major re-rating catalysts at this juncture, in our view. Meanwhile, risks of stricter credit standards and policy response to growing household debts may have negative impact on car sales. Maintain NEUTRAL stance on the sector at this juncture. Only UMW is rated as Buy with RM14.52 target price, underpinned by strong growth in its O&G business units as well as new model launches potentially boosting market share ahead. TA RESEARCH
Posted on: Mon, 21 Oct 2013 15:48:18 +0000
Trending Topics
Recently Viewed Topics
© 2015