Stocks In Focus MY (Ecofirst, Nestle, Public Bank) – 21/04/15
ECOFIRS (3557), NESTLE (4707), PBBANK (1295),
21 April 2015
Ecofirst Inks Option Agreement
Ecofirst Consolidated has signed an option agreement with IGB Corporation to buy a 35 acre freehold parcel in Gombak, Selangor for RM62.8 million.
According to the group, IGB’s land is situated beside the 62 acres that it was acquiring from Zurich Insurance for RM145 million and can hence complement the mixed project it has proposed for the Zurich land.
Ecofirst is paying a non-refundable RM6.3 million to IGB upon execution of the right, the remaining RM56.5 million is payable within 30 months of the execution date. The payment would be settled via a combination of its proceeds from private placements amounting to RM6.3 million and the remaining coming from internally generated funds.
Significance: Ecofirst will be required to obtain shareholders’ approval within four months from the execution date, with an automatic extension of two months from the expiry of the four months if requested by Ecofirst. The firm intends to construct an access road between the two parcels, which IGB had agreed. The planned project on the Gombak land that fronts the Ulu Kelang portion of the Middle Ring Road II would be Ecofirst’s biggest to date.
Nestle Ups 1Q15 Profit
Nestle (Malaysia) reported a net profit of RM187.8 million for the first quarter ended 31 March 2015, a 2.4 percent rise year-on-year, attributable to better sales, favourable input posts and timing of fixed expenses.
Sales for the period rose marginally by 0.4% to RM1.3 billion, as consumer sentiments remained subdued and the lower export sales to the affiliated companies had an impact on the overall turnover development.
During the quarter, the firm benefited from favourable commodity prices except for palm oil and coffee beans as opposed to the previous corresponding period, but the savings was partly offset by the weakening ringgit against the greenback.
Significance: FY15 is anticipated to be a challenging year with the implementation of goods and services tax in April expected to influence consumers’ buying behaviour that might need a period of adjustment in market demand. The group’s focus will remain on expanding top and bottom lines while continuing its long-term strategy of investing in manufacturing capacity to support growth.
Publick Bank 1Q15 Earnings Up 15%
Public Bank recorded a 15.2 percent increase in net profit to RM1.2 billion for its first quarter ended March 31 on the back of strong loan growth. Revenue came in 16.5% higher at RM4.6 billion.
The group registered a strong loan growth at an annualised rate of 13.1 percent. In tandem, its customer deposits also increased at an annualised rate of 12.8 percent. Asset quality remained resilient, with a low gross impaired loan ratio of 0.6 percent as at end-March 2015 versus the industry’s average of 1.7 percent.
It was noted that Publick Bank continues to remain the most cost-efficient bank in Malaysia, with its cost-to-income ratio of 31 percent in 1Q15 compared with the banking industry’s average of 45.5 percent.
Significance: Looking forward, the group would continue to focus on its core retail banking and financing business, while maintaining its prudent credit policies, as well as upholding strong corporate governance. Meanwhile, AllianceDBS Research has a ‘Buy’ rating on the stock with a target price of RM22.60, adding that sustainable growth trends support its premium valuation versus peers.
http://www.sharesinv.com
ECOFIRS (3557), NESTLE (4707), PBBANK (1295),
21 April 2015
Ecofirst Inks Option Agreement
Ecofirst Consolidated has signed an option agreement with IGB Corporation to buy a 35 acre freehold parcel in Gombak, Selangor for RM62.8 million.
According to the group, IGB’s land is situated beside the 62 acres that it was acquiring from Zurich Insurance for RM145 million and can hence complement the mixed project it has proposed for the Zurich land.
Ecofirst is paying a non-refundable RM6.3 million to IGB upon execution of the right, the remaining RM56.5 million is payable within 30 months of the execution date. The payment would be settled via a combination of its proceeds from private placements amounting to RM6.3 million and the remaining coming from internally generated funds.
Significance: Ecofirst will be required to obtain shareholders’ approval within four months from the execution date, with an automatic extension of two months from the expiry of the four months if requested by Ecofirst. The firm intends to construct an access road between the two parcels, which IGB had agreed. The planned project on the Gombak land that fronts the Ulu Kelang portion of the Middle Ring Road II would be Ecofirst’s biggest to date.
Nestle Ups 1Q15 Profit
Nestle (Malaysia) reported a net profit of RM187.8 million for the first quarter ended 31 March 2015, a 2.4 percent rise year-on-year, attributable to better sales, favourable input posts and timing of fixed expenses.
Sales for the period rose marginally by 0.4% to RM1.3 billion, as consumer sentiments remained subdued and the lower export sales to the affiliated companies had an impact on the overall turnover development.
During the quarter, the firm benefited from favourable commodity prices except for palm oil and coffee beans as opposed to the previous corresponding period, but the savings was partly offset by the weakening ringgit against the greenback.
Significance: FY15 is anticipated to be a challenging year with the implementation of goods and services tax in April expected to influence consumers’ buying behaviour that might need a period of adjustment in market demand. The group’s focus will remain on expanding top and bottom lines while continuing its long-term strategy of investing in manufacturing capacity to support growth.
Publick Bank 1Q15 Earnings Up 15%
Public Bank recorded a 15.2 percent increase in net profit to RM1.2 billion for its first quarter ended March 31 on the back of strong loan growth. Revenue came in 16.5% higher at RM4.6 billion.
The group registered a strong loan growth at an annualised rate of 13.1 percent. In tandem, its customer deposits also increased at an annualised rate of 12.8 percent. Asset quality remained resilient, with a low gross impaired loan ratio of 0.6 percent as at end-March 2015 versus the industry’s average of 1.7 percent.
It was noted that Publick Bank continues to remain the most cost-efficient bank in Malaysia, with its cost-to-income ratio of 31 percent in 1Q15 compared with the banking industry’s average of 45.5 percent.
Significance: Looking forward, the group would continue to focus on its core retail banking and financing business, while maintaining its prudent credit policies, as well as upholding strong corporate governance. Meanwhile, AllianceDBS Research has a ‘Buy’ rating on the stock with a target price of RM22.60, adding that sustainable growth trends support its premium valuation versus peers.
http://www.sharesinv.com
