|Source: The Edge Financial Daily|
Wednesday, 31 December 2014
Wednesday, 26 November 2014
Saturday, 22 November 2014
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Tuesday, 28 October 2014
The Seremban-based property developer is a burgeoning property player. A strong performance in its second quarter as well as the recent purchase of a 164-acre piece of land to replenish its land bank led to great optimism among analysts. Yet its share price has been on a downtrend lately.
Business model: Established in 1996, Matrix Concepts Holdings Bhd started off as a property development company in Negeri Sembilan. In 2004, its acquisition of another property developer, Seventech Sdn Bhd, saw Matrix Concepts expanding into Johor. It went public in the same year and subsequently went into joint-venture (JV) with Kemajuan Tanah Negeri Johor Bhd and Menteri Besar Incorporated.
The group was listed on the main market of Bursa Malaysia Securities Berhad on May 28, 2013.
Its primary activities are investment holding, property development and construction. The group has undertaken various township developments in Kluang and Seremban as well as residential and commercial projects in Seremban. Bandar Sri Sendayan in Negeri Sembilan is thus far the group’s largest project and constitutes 79.7% of revenue in 2013.
Others include Sendayan TechValley as well as Taman Sri Impian in Kluang. In 2011, it signed a memorandum of understanding (MoU) with six foreign companies from Japan, Taiwan, Hong Kong and France for the sale of industrial lots at Sendayan TechValley 2 in Negeri Sembilan.
According to the group it has to-date successfully built and sold 22,000 residential and commercial properties with a gross development value (GDV) of RM2.5 billion.
Shareholder and management assessment: The company’s major shareholders include its founder, Lee Tian Hock, who is also managing director and CEO. He currently owns a substantial 19.81% of the company’s shares followed by Shining Term Sdn Bhd which holds 15.93%.
Its non-independent non-executive chairman Mohamad Haslah Mohamad Amin spent 20 years in Maybank Bhd and had previously served various foreign companies namely Peregrine Fixed Income Ltd in Hong Kong, Fleet Boston NA in Singapore as well as Pacific Plywood Holdings Ltd in Hong Kong.
Lee has had 30 years of experience in the property development industry and prior to founding the group, he held various executive positions in several property development companies. He currently leads the group’s business direction and overall strategies and policies.
Matrix Concepts 1 year price performanceShare performance: Matrix Concepts has been trading in a 52-week range of RM1.89 to RM3.32 with an annual return of 62.99% and has far surpassed the FBM KLCI benchmark of 3.04%. However, there has been a slump in the share price since late September when it plunged to RM2.74, an all-time low since experiencing a general uptrend in mid-June.
As at Oct 23, it was trading at RM2.96 up 0.06 sen.
Analyst calls on Matrix Concepts Holdings 231014What analysts think: Analysts are on the whole positive. The group currently registered revenue of RM163.7 million for the second quarter of the financial year ending Dec 31, 2014 (2QFY14) compared to RM147.3 million in last year’s corresponding quarter. Its profit before tax (PBT) for 2QFY14 stands at RM58.6 million compared to last year’s RM40.6million.
Analysts’ optimism stems from the group’s recent purchase of 164 acres of land for RM71.5 million in Sendayan, Negeri Sembilan to replenish its industrial land bank. The pricing of the land is deemed fair to most analysts and is in line with the current market value of RM72 million.
Earnings forecast for Matrix Concepts Holdings 231014
StockStalk: The new land slated for the development of a full facility industrial park called Sendayan TechPark is expected to generate GDV of RM170 million. The purchase has now increased the group’s land bank to a total 1,164 acres.
Given the infrastructure in Sendayan TechValley and its close proximity to Greater Klang Valley, Matrix’s industrial land is highly sought after and there would be ready buyers as noted by RHB.
In addition, the selling price is expected to be RM30-RM35 per square feet (psq), which according to RHB would make Matrix rake in a 50% gross margin by selling the industrial land plot and thus retain the group’s overall margin at 30% to 40%.
The group’s higher presence in Negeri Sembilan which is seen as an increasingly thriving satellite city is a reason to be optimistic. However, the lack of landbank diversification means that the group’s “fate is completely tied to that of Seremban” as observed by HongLeong Group.
It is also important to note that Sendayan TechValley has been quite well received with 760 acres sold to date mostly to multinational corporations from Japan, the UK, Germany, France and China.
The share has been experiencing a general downtrend and trading below analyst’s expectation lately. Investors seem to be lukewarm about the announcement since late September but this could probably be a result of overall poor market sentiment. The FBM KLCI has been trading at a near one-year low.
Most of the group’s properties consist of affordable housing which is continuously backed by government support. Kenanga believes that the group is “well positioned in the affordable housing segment coupled with industrial developments within the Greater Klang Valley region”.
Overall analysts are confident about Matrix Concepts’ ability to deliver a similar 2Q14 performance in subsequent quarters due to strong billings, sales take up rates as well as potential land sales.
Tuesday, 21 October 2014
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Wednesday, 16 July 2014
Tuesday, 1 July 2014
TOKYO: AirAsia Bhd said on Tuesday it would set up a low-cost airline with Japan's biggest online retailer Rakuten Inc and other firms, marking the budget carrier's second attempt to tap one of Asia's lucrative air travel markets.
The new carrier, AirAsia Japan, will start flying in about a year with a fleet of five aircraft, the carrier's CEO Yoshinori Odagiri told reporters.
The airline will fly to both domestic and international destinations, but has yet to decide which airport it will be based out of, he added.
Rakuten will own an 18% stake in the new airline, while Noevir Holdings Co Ltd, a diversified conglomerate that owns an aircraft leasing business, will own 9%. AirAsia is also partnering with Octave Japan Infrastructure Fund and sports firm Alpen Co Ltd.
The total cost of the venture was not immediately clear.
For AirAsia, the venture is another attempt to expand to Japan after it pulled out of a partnership with the country's biggest carrier ANA Holdings Inc last year.
That venture, launched in 2011, failed to woo travellers and ANA blamed poor marketing and a user-unfriendly website.
The airline has since been rebranded into Vanilla Air, and is now wholly owned by ANA and based out of Tokyo's Narita airport.
"This is AirAsia part two, and I hope there is no part three," Tony Fernandes, the owner and CEO of AirAsia, told reporters in Tokyo.
Rakuten, controlled by Japan's fourth-richest man Hiroshi Mikitani, aims to boost its online travel site through the partnership and create new business to fend off increased competition from the likes of Amazon.com Inc.
Rakuten's travel site is already one of the largest in Japan. Two decades ago, travel company H.I.S pioneered the trend, setting up Skymark Airlines, which is now Japan's leading discount carrier.
Mikitani said he saw great potential in the budget travel market in Japan.
"In America, discount carriers account for 30% of travel. In South-East Asia, it's 50%. In Japan, it's only 3%," he said. – Reuters
Saturday, 21 June 2014
Thursday, 19 June 2014
Thursday, 12 June 2014
KUALA LUMPUR, June 12:
While all attention is focused on AirAsia India’s maiden flight today, the budget carrier group’s unit in Indonesia has again delayed its plans for an initial public offer (IPO) and may be in the running to take over the TigerAir outfit there.
Indonesia’s Transportation Ministry’s director for air transportation Djoko Muratmodjo has reportedly revealed that AirAsia and Garuda’s low-cost subsidiary Citilink are keen to take control of TigerAir Mandala.
The Jakarta Globe quoted Djoko as saying both carriers had submitted proposals to TigerAir Mandala.
The ailing Indonesian unit is 33%-owned by Singapore-based budget airline Tiger Airways while Indonesian private equity firm Saratoga Capital has a 51.3% stake.
“Both the Singaporeans and the Indonesians are eager to cut their losses and dispose of their respective shareholdings before July 1,” the paper reported.
“TigerAir Mandala suspended a big part of its routes in February in an effort to curb mounting costs.”
It isn’t clear if TigerAir Mandala is also a factor why AirAsia Indonesia has delayed its IPO yet again, though group chief executive officer Tan Sri Tony Fernandes was reported by The Jakarta Post as saying it is due to the upcoming presidential election affecting the stock market sentiment.
“We won’t make money at the moment. The market has to be stabilised first. We’ll see how the market goes after the election,” Fernandes had reportedly said.
The paper said AirAsia Indonesia had initially expected to launch an IPO in the third quarter of 2013 and had appointed an underwriter.
Plans by AirAsia Indonesia to open new international routes from the archipelago have also been shelved “due to rising costs in the airline industry resulting from the weakening of the rupiah against the US dollar”.
“AirAsia has tried to develop many international routes but the airport tax keeps going up so we have to cancel routes,” Fernandes had said.
“Indonesian aviation could be massive but costs are going up too fast and its not as affordable as it was.”
To rationalise costs, AirAsia Indonesia has stopped services from Makassar, South Sulawesi, to Surabaya, East Java and to Denpasar, Bali from June 1.
The budget carrier now operates 30 airplanes – covering five main hubs in Bali; Bandung, West Java; Jakarta; Medan, North Sumatra; and Surabaya.
But in India, Fernandes was upbeat as the Indian venture’s maiden flight took off from Bangalore to Goa today and prompting other fiercely competitive budget carriers to match its low fares.
“It’s a proud day for me as my dad was from Goa. He was an amazing man. Down to earth, selfless doctor. He will be proud looking form above,” Fernandes had tweeted.
Based in Chennai, the 49:30:21 joint venture between AirAsia, Tata Sons and Telestra Tradeplace is launching its second route next week linking Bangalore-Chennai.
AirAsia India is eyeing a fleet size of between six and eight by end of 2014, said CEO Mittu Chandilya.
Wednesday, 21 May 2014
Tuesday, 20 May 2014
Wednesday, 14 May 2014
Tuesday, 13 May 2014
Thursday, 8 May 2014
NEW DELHI: AirAsia's low-cost Indian joint venture airline has won an operating permit, paving the way for the carrier to launch services and increasing competition in a market where most airlines are losing money.
The Directorate General of Civil Aviation (DGCA) issued the air operator permit, the last approval required to launch an airline, to AirAsia India on Wednesday, a senior government official said. AirAsia India Chief Executive Mittu Chandilya confirmed the company had received the permit.
"I can't wait for us to start flying," he told television channels. "We are working on being the lowest cost (airline)."
It was not immediately known when AirAsia India, a three-way venture between the Malaysia-based low-cost airline, India's Tata Group and investment firm Telestra Tradeplace, would start services.
Earlier plans to start the airline in the last quarter of 2013 were delayed, pending the air operator permit.
An airlines industry body, and a politician of India's main opposition Bharatiya Janata party, which is the favourite to form a government after a general election ending this month, had opposed AirAsia's entry into the Indian market.
AirAsia India has said it will offer one of the lowest fares to lure travellers and will rapidly expand its fleet by adding 10 Airbus A320 planes a year. But the entry of a new competitor is not good news for an industry where all carriers except market leader IndiGo are losing money.
High fuel prices, taxes and fees have squeezed existing Indian airlines. The sector lost a combined $1.3 billion in the financial year to March, according to estimates by aviation consultancy Centre for Asia Pacific Aviation (CAPA).
"Domestic airlines continue to be very precariously placed and AirAsia's entry will further challenge the existing airlines," said Kapil Kaul, South Asia CEO at CAPA.
The arrival of new carriers like AirAsia may lead to a price war and will further hurt passenger yields, Kaul said.
Singapore Airlines' joint venture with the Tata Group to start a full-service airline in India is awaiting an operating permit.
India has five operational national carriers and one regional airline. Competition had eased after the grounding of cash-and-debt-strapped Kingfisher Airlines in October 2012.
In 2012, the Indian government relaxed rules allowing foreign carriers to buy up to 49 percent in an Indian airline. Abu Dhabi's Etihad last year bought 24 percent of Jet Airways , the No.2 carrier by domestic market share. - Reuters
Wednesday, 7 May 2014
Monday, 5 May 2014
Thursday, 1 May 2014
Wednesday, 30 April 2014
KUALA LUMPUR: Shares of DiGi.Com Bhd hit a record high of RM5.52 at mid-afternoon on Wednesday after CIMB Research said DiGi reported good growth in service revenue of 5% on-year in its first quarter.
At 3.24pm, its shares rose 12 sen to RM5.51 with some 6.66 million shares done between the prices of RM5.39 and RM5.52.
The FBM KLCI was up 5.14 points to 1,864.48. Turnover was 1.01 billion shares valued at RM1.25bil. There were 327 gainers, 389 decliners and 311 counters unchanged.
CIMB Research said in a note on Wednesday that it believes DiGi will continue to gain market share.
“All in all we think DiGi should be able to deliver revenue growth of 6% driven by its expanding 3G network coverage and distribution network.
“This will help it continue to gain revenue market share and we estimate it will build ebitda margin from 45.5% in FY13 to over 46% over the next two years,” it said.
Wednesday, 23 April 2014
Tuesday, 22 April 2014
Saturday, 19 April 2014
PETALING JAYA: KLIA2 has finally been given the long awaited Certificate of Completion and Compliance (CCC) on Friday.
The certificate was handed over by the main contractors, the UEM-Bina Puri consortium to Malaysia Airports Holdings Bhd, in a ceremony on Friday.
There are three parts to the issuance of a CCC; it needs to comply with the Fire and Rescue Department, Sepang Municipal Council and Indah Water Konsortium Sdn Bhd (IWK) specifications and KLIA2 has complied with all the conditions and is now certified safe for use.
The Operational Readiness and Airport Transfer (Orat) procedures has been under way for over a month now and the new low cost air terminal will open for operations on May 2.
Orat is a comprehensive methodology and holistic approach employed to ensure the operational readiness of a new airport or airport infrastructure project.
Five airlines – Malindo Air, Cebu Pacific Air, Tiger Airways Singapore, Lion Air and Indonesia’s Mandala Airlines will begin operations on May 2 and AirAsia will join in before May 9. On May 9, the existing LCCT will cease operations.
Thursday, 17 April 2014
PETALING JAYA: AirAsia Bhd has signed an agreement to implement the Airbus Managed Inventory (AMI) service for its A320 and A330 fleets at its bases in Kuala Lumpur and Bangkok.
In a statement released by Airbus, the AMI service ensures the automatic and continuous replenishment of high-usage and non-repairable parts at the customer's facilities.
AirAsia is confident that the AMI service will support the company and its associated company AirAsia X in paving the way for low-cost aviation through innovative solutions and efficient processes.
"With AMI, we will minimise our spares investment costs while maximising delivery of parts when needed," said Anaz Ahmad Tajuddin, group head of engineering of AirAsia.
AirAsia is the fourth customer in the region to choose the AMI automated inventory management solution, which works to reduce inventory holding costs.
This is done by capturing material consumption information in real-time and automatically triggering replenishment orders within the agreed inventory levels, the service guarantees high on-shelf part availability while decreasing the overall inventory stock level.
Wednesday, 16 April 2014
KUALA LUMPUR: AirAsia Group says it will move to KLIA2 by May 9 although there are still a few outstanding commercial issues.
“We will be notifying all of our guests accordingly to ensure a smooth transition from the current LCC Terminal to KLIA2,” according to the joint statement issued by AirAsia executive chairman Datuk Kamarudin Meranun and AirAsia X Bhd chairman Tan Sri Rafidah Aziz on Tuesday.
They said the group expressed its appreciation to Prime Minister Datuk Seri Najib Razak and the government for the decision to enlist the expertise of the International Civil Aviation Organization (ICAO) to further evaluate KLIA2 and to determine the long term safety of the new airport.
“This decision reflects the priority that the government is giving to the issue of safety, and assuring the public that KLIA2 is safe. We are very grateful for this priority that the government has placed on this issue.
“Although there are still a few outstanding commercial issues, this should not hold back our operations at KLIA2 as planned. As such, AirAsia Group will move into KLIA2 by May 9, 2014,” they said in the statement.
Kamarudin and Rafidah said AirAsia and AirAsia X were looking forward to operate from KLIA2, as well as to the next stage of our growth and development through KLIA2.
They said ongoing discussions with relevant authorities were in progress.
“However, should the negotiations not be completed or concluded expeditiously, we hope the Government will be able to provide necessary mediation, in order to enable MAHB (Malaysia Airports Holdings Bhd) to get its dues as the airport operator; and at the same time, enabling the AirAsia Group to efficiently operate based on our proven low-cost carrier business model through reasonable charges and levies,” they said in the statement.
Tuesday, 15 April 2014
Monday, 14 April 2014
PETALING JAYA: Matrix Concepts Holdings Bhd proposes to undertake a bonus issue on the basis of one bonus share for every two existing shares held by shareholders.
In a filing with Bursa Malaysia, the bonus issue entails a issuance of up to 152.88 million new ordinary shares of RM1.00 each.
The maximum scenario would then result in the group's share capital increasing from RM301.17 million comprising 301.17 million shares of RM1.00 each as at Dec 31, 2013, to RM458.65 million comprising 458.65 million shares of RM1.00 each.
"The bonus issue is in tandem with our current scale of operations, and is anticipated to allow greater participation in the equity of the group," said its chairman Datuk Mohamad Haslah.
The bonus issue is targeted for completion by the third quarter of 2014.
The company also confirms that based on the audited financial statements for the financial year ended Dec 31, 2013, it will have adequate share premium and retained profits to cover the capitalisation required for the bonus issue after the completion of the receipt of dividend.
The bonus issue is targeted for completion by the third quarter of 2014.
Friday, 11 April 2014
Friday, 4 April 2014
Thursday, 3 April 2014
PETALING JAYA: Pharmaniaga Bhd is teaming up with Modern Group, one of the largest companies in Saudi Arabia, to build a RM120mil manufacturing plant in Riyadh.
Pharmaniaga chairman Tan Sri Lodin Wok Kamaruddin said the 50:50 joint venture was part of the company’s strategy to accelerate the growth of its pharmaceutical business and to capture the rapidly growing opportunities in Saudi Arabia.
Lodin said besides its plants in Saudi Arabia and Indonesia, which it acquired last year, the generic drug maker also aimed to penetrate other Asean countries such as Myanmar, Vietnam, the Philippines and Thailand.
“At the same time, we are looking at enhancing our retail pharmacy outlets.
“At present, we have one in Shah Alam under the Royale Pharma brand.
“We are now working closely with several organisations and companies to see if we can establish more outlets in the country,” he told a media briefing after Pharmaniaga’s annual general meeting here yesterday.
He added that Pharmaniaga’s parent company, Boustead group, owned and operated more than 300 petrol kiosks nationwide and soon all these locations would be selling the Royale Pharma products.
Pharmaniaga reported a lower pre-tax profit of RM93mil for the year ended Dec 31, 2013, down 10% from RM103mil previously.
However, its revenue rose to RM1.9bil from RM1.8bil a year ago.
This was attributable to strong contributions from the group’s non-concession business and organic growth in the concession business as well as new tenders that it secured. — Bernama
Wednesday, 2 April 2014
KUALA LUMPUR: AirAsia Bhd is appealing for Datuk Seri Najib Tun Razak to intervene in resolving the klia2 issue as it wants to be given a voice since it will be the main user of the terminal.
The low-cost carrier's CEO Aireen Omar said on Wednesday the Prime Minister's intervention was crucial in resolving this national issue.
She pointed out the airline was ready and committed to make the best out of klia2 "although it is not the design we wanted."
The klia2, she added, was longer a fully low-cost carrier terminal as initially promised by Malaysia Airports Holding Bhd (MAHB).
Aireen was clarifying news reports over AirAsia's decision to remain in the current low-cost carrier terminal after May 9, 2014.
She said while AirAsia was more than ready to move to klia2 but the shift must be done under the right circumstances.
"We will be the anchor tenant at the new airport, accounting for more than 80% of klia2's traffic, hence the critical need for klia2 to be fully functional and operationally viable in the long term," she said.
She said the articles could have given rise to a perception that AirAsia was not deliberately moving to klia2 or being difficult on purpose.
However, she assured this was not its intention as there were many concerns especially functionality, safety and security of klia2.
"Klia2 has the potential to be a global aviation hub, just like Dubai. AirAsia, as the largest low cost carrier in the region can and will contribute towards making that a reality, directly elevating the nation's aviation industry as a whole.
"As a major contributor to Malaysia's economy, AirAsia must be given a voice as we are the main user of klia2. AirAsia looks forward to resolve this issue as soon as possible," Aireen added.