Stocks In Focus MY (Bina Darulaman, Maybank, Sunway) – 10/04/15
Bina Darulaman Eyes RM1.6b Airport Project
Kedah-based property developer, Bina Darulaman, has expressed interest in participating in the construction of the RM1.6 billion Kulim International Airport (KIA). The group noted that any project in Kedah is within its purview, including KIA.
At the moment, Kedah has two airports. The additional of a new regional airport in the area is expected to transform the property outlook for the firm, whose properties are in Kedah. Typically, capital appreciation from property in Kedah is extremely slow, as buyers are typically first-time owners.
The company had previously participated in the construction of the Langkawi International Airport and Alor Setar Airport, and hence believes that it has the credentials to participate in the KIA project.
Significance: Besides eyeing at KIA project, the group has planned projects with a total gross development value of RM350 million for 2015, matching that in 2014. The firm plans to focus on its existing landbank, and launch three mixed development projects, namely in Jitra, Sungai Petani and Kuala Ketil.
A3 Rating Assigned By Moody’s For US$50m Notes By Maybank
An A3 rating has been assigned by Moody’s Investors Service (Moody’s) on the long-term foreign currency senior unsecured debt rating to Malayan Banking (Maybank).
The notes will bear a fixed rate coupon of 1.85 percent per annum and will mature on 10 April, 2017.
The notes will constitute an unconditional, unsubordinated and unsecured obligation of Maybank, and will rank pari passu with the bank’s other senior unsecured obligations.
Significance: Moodys revealed that a potential upgrade of the Malaysian A3 sovereign rating would likely lead to an upgrade of Maybank’s A3 foreign currency deposit and senior debt ratings. This is assuming that the bank’s standalone credit metrics remain robust.
Sunway To Buy Winstar Trading
Sunway via its subsidiary, Sunway Holdings, agreed to fully acquire both Winstar Trading and Singapore-based PND Hardware & Testing for RM131 million and $2.6 million (approximately RM6.9 million).
The company views the move as beneficial due to the synergies created that involve the cross-selling of products across the customer base of Sunway, Winstar and PND, thereby achieving potential cost savings in warehouse facilities due to the economies of scale.
In addition, the company mentioned that the two target companies could supply to Sunway’s property and construction projects in the future.
Significance: Although the deals are not subjected to shareholders’ approval, however, each of the vendors of the target companies have provided some forms of profit guarantees that are expected to last for three financial years between FY15 and FY17.
http://www.sharesinv.com
Bina Darulaman Eyes RM1.6b Airport Project
Kedah-based property developer, Bina Darulaman, has expressed interest in participating in the construction of the RM1.6 billion Kulim International Airport (KIA). The group noted that any project in Kedah is within its purview, including KIA.
At the moment, Kedah has two airports. The additional of a new regional airport in the area is expected to transform the property outlook for the firm, whose properties are in Kedah. Typically, capital appreciation from property in Kedah is extremely slow, as buyers are typically first-time owners.
The company had previously participated in the construction of the Langkawi International Airport and Alor Setar Airport, and hence believes that it has the credentials to participate in the KIA project.
Significance: Besides eyeing at KIA project, the group has planned projects with a total gross development value of RM350 million for 2015, matching that in 2014. The firm plans to focus on its existing landbank, and launch three mixed development projects, namely in Jitra, Sungai Petani and Kuala Ketil.
A3 Rating Assigned By Moody’s For US$50m Notes By Maybank
An A3 rating has been assigned by Moody’s Investors Service (Moody’s) on the long-term foreign currency senior unsecured debt rating to Malayan Banking (Maybank).
The notes will bear a fixed rate coupon of 1.85 percent per annum and will mature on 10 April, 2017.
The notes will constitute an unconditional, unsubordinated and unsecured obligation of Maybank, and will rank pari passu with the bank’s other senior unsecured obligations.
Significance: Moodys revealed that a potential upgrade of the Malaysian A3 sovereign rating would likely lead to an upgrade of Maybank’s A3 foreign currency deposit and senior debt ratings. This is assuming that the bank’s standalone credit metrics remain robust.
Sunway To Buy Winstar Trading
Sunway via its subsidiary, Sunway Holdings, agreed to fully acquire both Winstar Trading and Singapore-based PND Hardware & Testing for RM131 million and $2.6 million (approximately RM6.9 million).
The company views the move as beneficial due to the synergies created that involve the cross-selling of products across the customer base of Sunway, Winstar and PND, thereby achieving potential cost savings in warehouse facilities due to the economies of scale.
In addition, the company mentioned that the two target companies could supply to Sunway’s property and construction projects in the future.
Significance: Although the deals are not subjected to shareholders’ approval, however, each of the vendors of the target companies have provided some forms of profit guarantees that are expected to last for three financial years between FY15 and FY17.
http://www.sharesinv.com
