Stocks In Focus MY (GD Express Carrier, Glomac, Kulim) – 04/12/14
GDEX (0078), GLOMAC (5020), KULIM (2003)
GD Express Seeks Partners And M&A
Logistics service provider GD Express Carrier is looking for more partners and potential mergers and acquisitions (M&A) to expand regionally, according to group chief executive officer Teong Teck Lean.
Teong shared that plans for expansion in Asean has been ongoing for quite some time now, and after opening a representative office in Indonesia two months ago, the firm wants to open up more regional offices and has been eyeing Thailand.
In Malaysia, the company is also expanding its hub capacity from 80,000 packages per day to 150,000 packages per day, on the back of higher demand for its services especially from e-commerce, as wellas increase the utilisation rate of its warehouse by having 24-hour packing in three shifts.
Significance: With RM40 million cash and approval for a shares placement exercise that could raise close to RM200 million, the group is exploring ways to raise additional capital, whether through borrowings or other instruments, to ensure that it can speed up the regional expansion.
Glomac 2Q15 Earnings Fall 66%
For the second quarter ended 30 September, Glomac reported a 66.4% decline in net profit to RM13.2 million, in tandem with a 44.6% fall in revenue to RM86.3 million.
The lower revenue was mainly due to the completion of Damansara Residences and tail-end projects in Bandar Saujana Utama, but the group recorded improvements in gross margin for the quarter, from 28.9% to 41.2%.
Group executive chairman Tan Sri FD Mansor said the company expects its sales momentum to pick up in the second half of its financial year ending 30 April 2015 (FY15), where it has targeted RM824 million new launches.
Significance: Mansor said that Glomac is well-placed to resume its growth track, with a robust product pipeline and estimated gross development value of more than RM7 billion for future launches. Despite the challenging environment, the group is also hopeful of a satisfactory performance for FY15.
Kulim Aims To Be Major O&G Player
After announcing that it will accept the RM2.8 billion offer for its stake in New Britain Palm Oil, Kulim (Malaysia) plans to use the RM680 million of proceeds from the disposal to finance its expansion into oil and gas (O&G) activities.
According to group managing director Ahamad Mohamad, the firm will leverage on the joint operating agreement signed with its local partners in Indonesia to explore downstream and upstream O&G activities, saying that Indonesia offer good prospects following the government’s decision to liberalise its O&G sector.
Ahamad also shared that the company would either conduct explorations in new O&G fields in Sumatra or work in concession fields previously awarded to other oil companies which had ceased exploration activities.
Significance: Going forward, Ahamad said the group aims to be one of the major players in the O&G sector within the next 10 years and have the sector contribute 50 percent of total revenue, adding that having no experience in the sector was not a setback.
http://www.sharesinv.com
GDEX (0078), GLOMAC (5020), KULIM (2003)
GD Express Seeks Partners And M&A
Logistics service provider GD Express Carrier is looking for more partners and potential mergers and acquisitions (M&A) to expand regionally, according to group chief executive officer Teong Teck Lean.
Teong shared that plans for expansion in Asean has been ongoing for quite some time now, and after opening a representative office in Indonesia two months ago, the firm wants to open up more regional offices and has been eyeing Thailand.
In Malaysia, the company is also expanding its hub capacity from 80,000 packages per day to 150,000 packages per day, on the back of higher demand for its services especially from e-commerce, as wellas increase the utilisation rate of its warehouse by having 24-hour packing in three shifts.
Significance: With RM40 million cash and approval for a shares placement exercise that could raise close to RM200 million, the group is exploring ways to raise additional capital, whether through borrowings or other instruments, to ensure that it can speed up the regional expansion.
Glomac 2Q15 Earnings Fall 66%
For the second quarter ended 30 September, Glomac reported a 66.4% decline in net profit to RM13.2 million, in tandem with a 44.6% fall in revenue to RM86.3 million.
The lower revenue was mainly due to the completion of Damansara Residences and tail-end projects in Bandar Saujana Utama, but the group recorded improvements in gross margin for the quarter, from 28.9% to 41.2%.
Group executive chairman Tan Sri FD Mansor said the company expects its sales momentum to pick up in the second half of its financial year ending 30 April 2015 (FY15), where it has targeted RM824 million new launches.
Significance: Mansor said that Glomac is well-placed to resume its growth track, with a robust product pipeline and estimated gross development value of more than RM7 billion for future launches. Despite the challenging environment, the group is also hopeful of a satisfactory performance for FY15.
Kulim Aims To Be Major O&G Player
After announcing that it will accept the RM2.8 billion offer for its stake in New Britain Palm Oil, Kulim (Malaysia) plans to use the RM680 million of proceeds from the disposal to finance its expansion into oil and gas (O&G) activities.
According to group managing director Ahamad Mohamad, the firm will leverage on the joint operating agreement signed with its local partners in Indonesia to explore downstream and upstream O&G activities, saying that Indonesia offer good prospects following the government’s decision to liberalise its O&G sector.
Ahamad also shared that the company would either conduct explorations in new O&G fields in Sumatra or work in concession fields previously awarded to other oil companies which had ceased exploration activities.
Significance: Going forward, Ahamad said the group aims to be one of the major players in the O&G sector within the next 10 years and have the sector contribute 50 percent of total revenue, adding that having no experience in the sector was not a setback.
http://www.sharesinv.com
