DiGi Q3'13

Budget 2014 Highlights

KUALA LUMPUR: Following are the highlights of the 2014 Budget themed “STRENGTHENING ECONOMIC RESILIENCE,

ACCELERATING TRANSFORMATION AND FULFILLING PROMISES” which was tabled by Prime Minister Datuk Seri Najib Razak in Parliament today.

* The domestic economy is projected to grow at a stronger pace of between 5.0 per cent to 5.5 per cent. 

* The unemployment rate is estimated at 3.1 per cent while the inflation rate will remain low at between 2 per cent and 3 per cent.

* Goods exports are expected to grow 2.5 per cent due to improving external demand while on the supply side, the construction sector is expected to  grow 9.6 per cent. 

* The per capita income for 2014 is expected to reach RM34,126 compared with RM24,879 in 2009, an increase of 37 per cent over six years.

*  It is even possible that Malaysia will achieve developed nation status much earlier than 2020.

* Public investment is estimated to reach RM106 billion.

* Projects to be implemented include 316-kilometre West Coast Expressway from Banting to Taiping as well as double-tracking projects from Ipoh to Padang Besar and later from Gemas to Johor Baharu.

* Projects undertaken by Petronas include Sabah Ammonia Urea Project in Sipitang; integrated oil and gas production development project, Kebabangan; regasification plant project, Lahad Datu; and RAPID, Pengerang.

*  The Government allocates RM1.6 billion for development in the five regional corridors.

* Agropolitan project and oil palm-based industries to be implemented in Sabah Development Corridor, Samalaju Industrial Park and Halal hub in Sarawak Regional Corridor.

* Services Sector Blueprint to be launched next year.

* Logistics Sector Master Plan and National Aviation Policy to be formulated.

* RM3 billion in soft loans under the Maritime Development Fund through Bank Pembangunan Malaysia.

* To replace existing air traffic control and management system in Subang, a new air traffic management centre costing RM700 million will be built at KLIA.

* Kota Kinabalu, Sandakan, Miri, Sibu and Mukah airports to be upgraded with RM312 million allocation. 

* Passenger terminals in Langkawi International Airport and Kuantan Airport to be upgraded.

* Second phase of HSBB project to be implemented in collaboration with private sector involving RM1.8 billion investment.

* Internet speed to be increased to 10 Mbps. 

* To increase Internet coverage in rural areas, 1,000 telecommunications transmission towers to be built over next 3 years, with a RM1.5 billion investment.

* To increase Internet access in Sabah and Sarawak, new underwater cables will be laid within 3 years, at a cost of RM850 million. 

* Bank Negara Malaysia to lead in formulating the Netting Act to protect enforcement rights of “close-out netting” under the financial contract.

* Environmental, Social and Governance Index (ESG) to be introduced.

* Securities Commission to introduce Framework of Socially Responsible Sukuk Instrument. 

* To establish a SRI Fund to be invested in listed companies.

* Valuecap to allocate RM1 billion to invest in companies that score high on the Environmental, Social and Governance Index Index.

* National Entrepreneur Development Office to be established to plan and coordinate all activities related to entrepreneurship.

* RM50 million allocation for Malaysian Global Innovation and Creativity Centre (MaGIC).

* Committed 1Malaysia Entrepreneurs (1MeT) to be given further guidance at MaGIC.

* Government targets 5,000 young entrepreneurs to be trained yearly.

* RM4.1 billion to be provided for basic rural infrastructure projects, including RM980 million to upgrade 437 km of rural road networks nationwide and RM500 million for Pan-Borneo Highway project.

 

* RM109 million allocation to enhance economic development and well-being of Orang Asli community; RM50 million for land surveying and customary land ownership verification.

 

* Police and Armed Forces (ATM) allocated RM8.8 billion and RM13.2 billion respectively to reduce crime and enhance military preparedness.

 

* RM75 million proposed to further strengthen East Coast Special Security Area (ESSCOM) operations.

 

* RM48 million allocation to cater for the welfare of 20,000 armed forces veterans, including health payments, ex-gratia and education; RM202 million to build and refurbish ATM quarters.

 

* RM15 million launching grant for the creation of Malaysian Green Foundation to promote use of green technology among corporate sector and general public.

 

* Health sector allocated RM22.1 billion; RM150 million to appoint 6,800 more nurses; RM3.3 billion to purchase medicine and medical equipment.

 

* Abolition of 34 sen sugar subsidy effective Oct 26, 2013 in a bid to encourage Malaysians to reduce sugar intake.

 

* Women, Family and Community Development Ministry allocated RM2.2 billion

 

* For civil servants, eligibility to qualify for public sector TASKA fee of RM180 per month now extended to households with monthly income of RM5,000 compared with RM3,000 previously.

 

KAREX IPO ballot result

Bumi category

Public category

Caring Pharmacy Group Berhad IPO

Company Name: Caring Pharmacy Group Berhad
Main Business: Retailing of pharmaceutical, healthcare, and personal care products.
Board: Main market
Stock Name: CARING
Stock Code: 5245
IPO Price: RM 1.25
PAR: RM 1.00
Market Capital: 217,706,400 shares

Timetable for IPO

Date	Description
18-10-2013	Open application
30-10-2013	Close application
01-11-2013	Ballot result
11-11-2013	Allotment shares
13-11-2013	Listing

Total shares offer: 35,000,000 units (16.08% of total share capital)
    a. 5,443,000 shares for Malaysian public (Bumi). (2.5% of total share capital)
    b. 5,443,000 shares for Malaysian public (Non-bumi). (2.5% of total share capital)
    c. 5,716,000 shares for eligible directors, eligible employees and shareholders of subsidiaries of the group. (2.63% of total share capital)
    d. 4,200,000 shares for MITI bumi investors. (1.93% of total share capital)
    e. 14,198,000 shares for private placement. (6.52% of total share capital)

Financial summary:

FYE	May 2010	May 2011	May 2012	May 2013
Revenue (RM '000)	170,566	206,501	248,284	301,417
Gross Profit (RM '000)	45,706	56,240	64,132	77,790
PAT (RM '000)	15,274	18,181	20,071	22,322
Net EPS* (Cents)	6.22	7.56	8.39	9.44

* based on 217,706,400 shares.

Utilisation of proceeds:

Purpose	Total raised (RM '000)	Total raised (%)
New community pharmacy outlets	18,000	41.15
Repayment of bank borrowings	6,000	13.71
Renovation of new head office and warehouse	4,000	9.14
Working capital	11,750	26.86
Listing expenses	4,000	9.14
Total gross proceeds	43,750	100.0

Targeted dividend policy: 30%
Estimated DY: 2.26%

Detail info: CARING IPO Prospectus

Berjaya Auto Berhad IPO

Company Name: Berjaya Auto Berhad
Main Business: Distribution and retailing of Mazda vehicles
Board: Main market
Stock Name: BJAUTO
Stock Code: 5248
IPO Price: RM 0.70
PAR: RM 0.50
Market Capital: 802,763,000 shares

Timetable for IPO

Date	Description
18-10-2013	Open application
01-11-2013	Close application
08-11-2013	Ballot result
14-11-2013	Allotment shares
18-11-2013	Listing

Total shares issue: 82,763,000 units (10.31% of total share capital)
   a. 41,449,000 issue shares for Malaysian institutional and selected investors. (5.16% of total share capital)
   b. 10,157,000 issue shares for MITI bumi investors. (1.27% of total share capital)
   c. 19,157,000 issue shares for entitled sharesholders of BCorporation. (2.39% of total share capital)
   d. 12,000,000 issue shares for pink form allocation. (1.49% of total share capital)
* There is no any allocation shares for public Malaysian.

Financial summary:

FYE	Apr 2010	Apr 2011	Apr 2012	Apr 2013
Revenue (RM '000)	286,829	592,603	663,581	1,064,349
Gross Profit (RM '000)	41,600	79,891	95,024	139,050
PAT (RM '000)	14,145	36,146	40,683	52,013
Basic EPS* (Cents)	2.0	5.0	5.7	7.1
Diluted EPS** (Cents)	1.7	4.3	4.8	6.0

* based on 720 mil shares.
** based on 842,901,150 shares (802,763,000 shares + 40,138,150 ESOS Options).

Utilisation of proceeds:

Purpose	Total raised (RM mil)	Total raised (%)
Working capital	41.7	72.0
Capex	7.5	12.9
Investment in Mazda Malaysia Sdn. Bhd.	4.5	7.8
Listing expenses	4.2	7.3
Total gross proceeds	57.9	100.0

Targeted dividend policy: 40%
Estimated DY: 3.42%

Detail info: BJAUTO IPO Prospectus