Stocks In Focus MY (AWC, Talam Transform, Tiong Nam Logistics) – 15/12/14
AWC (7579), TALAMT (2259), TNLOGIS (8397)
AWC Mulls Acquisition
Facility management services provider, AWC, plans to embark into the telecommunication and healthcare industry, and may consider merger and acquisition (M&A) in the future, besides winning more private sector clients to boost its business.
The group plans to add more non-concession business to its facility management service segment through tenders, joint ventures or even through acquisition, to move away from relying on government concessions alone to ensure sustainability.
Notably, AWC’s facilities division made its cornerstone foray into the local healthcare sub-segment involving provision of biomedical and facilities engineering maintenance services in Hospital Rehabilitasi Cheras last year.
Significance: Looking ahead, AWC said it would take a cautious outlook on its environment division which provides design, supply, installation, testing and commissioning of automated pneumatic waste collection system, noting that the next two years will likely be challenging for this segment.
Talam Transform Turns The Corner For 3Q15
For the third quarter ended 31 October, Talam Transform recorded a net profit of RM3.6 million, compared with a net loss of RM13.1 million in 3Q14, mainly due to higher finance income.
Revenue for the quarter surged 158.7 percent to RM50 million, attributable to the disposal of development land by its property development and investment division, partially offset by a fall in income for its hotel and recreation division, due to the termination of tenancies by long-staying Japanese guests.
For the nine-month period, top line more than tripled to RM220.6 million while net loss narrowed 59.8 percent to RM8.2 million, mainly contributed by higher gross profits and improvement in finance income and cost, but mitigated by higher administrative and other expenses.
Significance: Going forward, the group said that it would continue to enter into joint ventures with reputable corporations to develop its land bank, and launch new development projects once approvals are obtained from the relevant authorities. However, the firm foresees a challenging financial year ahead due to tougher lending guidelines.
Tiong Nam Eyes Vietnam, Myanmar
Tiong Nam Logistics Holdings sees Vietnam and Myanmar as its new overseas venture to further grow its business, as the group shared that it is still in the midst of finding reliable partners, in its bid to become an Asean player, rather than just a Malaysian player.
Besides operations in Malaysia, the firm currently also has operations in Singapore and Thailand. Group executive director Victor Ong stressed that logistics will remain the group’s core business, even though its property segment, which focuses on industrial properties, contributed to one third of the firm’s turnover in FY13.
Tiong Nam is looking to build a cold chain hub in Shah Alam, as part of its focus on the cold chain business, which is seen to bring value to shareholders. Additionally, the group is looking to automate some of it warehouses to save space.
Significance: Ong also noted that Tiong Nam has always been looking at merger and acquisition opportunities to grow its business, but nothing has been concluded yet. With 50 warehouses nationwide, the group is looking to build or acquire more warehouses.
http://www.sharesinv.com
AWC (7579), TALAMT (2259), TNLOGIS (8397)
AWC Mulls Acquisition
Facility management services provider, AWC, plans to embark into the telecommunication and healthcare industry, and may consider merger and acquisition (M&A) in the future, besides winning more private sector clients to boost its business.
The group plans to add more non-concession business to its facility management service segment through tenders, joint ventures or even through acquisition, to move away from relying on government concessions alone to ensure sustainability.
Notably, AWC’s facilities division made its cornerstone foray into the local healthcare sub-segment involving provision of biomedical and facilities engineering maintenance services in Hospital Rehabilitasi Cheras last year.
Significance: Looking ahead, AWC said it would take a cautious outlook on its environment division which provides design, supply, installation, testing and commissioning of automated pneumatic waste collection system, noting that the next two years will likely be challenging for this segment.
Talam Transform Turns The Corner For 3Q15
For the third quarter ended 31 October, Talam Transform recorded a net profit of RM3.6 million, compared with a net loss of RM13.1 million in 3Q14, mainly due to higher finance income.
Revenue for the quarter surged 158.7 percent to RM50 million, attributable to the disposal of development land by its property development and investment division, partially offset by a fall in income for its hotel and recreation division, due to the termination of tenancies by long-staying Japanese guests.
For the nine-month period, top line more than tripled to RM220.6 million while net loss narrowed 59.8 percent to RM8.2 million, mainly contributed by higher gross profits and improvement in finance income and cost, but mitigated by higher administrative and other expenses.
Significance: Going forward, the group said that it would continue to enter into joint ventures with reputable corporations to develop its land bank, and launch new development projects once approvals are obtained from the relevant authorities. However, the firm foresees a challenging financial year ahead due to tougher lending guidelines.
Tiong Nam Eyes Vietnam, Myanmar
Tiong Nam Logistics Holdings sees Vietnam and Myanmar as its new overseas venture to further grow its business, as the group shared that it is still in the midst of finding reliable partners, in its bid to become an Asean player, rather than just a Malaysian player.
Besides operations in Malaysia, the firm currently also has operations in Singapore and Thailand. Group executive director Victor Ong stressed that logistics will remain the group’s core business, even though its property segment, which focuses on industrial properties, contributed to one third of the firm’s turnover in FY13.
Tiong Nam is looking to build a cold chain hub in Shah Alam, as part of its focus on the cold chain business, which is seen to bring value to shareholders. Additionally, the group is looking to automate some of it warehouses to save space.
Significance: Ong also noted that Tiong Nam has always been looking at merger and acquisition opportunities to grow its business, but nothing has been concluded yet. With 50 warehouses nationwide, the group is looking to build or acquire more warehouses.
http://www.sharesinv.com
