Stocks In Focus MY (Boustead Hldgs, Magna Prima, Mulpha Land) – 07/04/15
Boustead Registers RM533.3 Million Profit
Boustead Holdings registered a net profit of RM533.3 million on the back of RM10.6 billion revenue for its financial year ending 31 December 2014, attributable to profits from property, finance, investment and pharmaceutical divisions.
The company remained resilient despite tough market condiitons, leveraging on their strong fundamentals and diversified nature to ensure that the divisions contributed positively to the bottom line.
In FY14, the company strengthened organic growth with viable acquisitions to add value to the core businesses. Pursuing strategic plans, the company will capitalize on inherent opportunities in multiple sectors of the economy to drive performance.
Significance: The company is confident that momentum will be maintained and solid results will be delivered.
Magna Prima Open For Land Deal
No formal offers has been made to acquire Magna Prima‘s Lai Meng School property located along Jalan Ampang. However, Retirement Fund was believed to be eyeing the property, along with other interested parties.
Magna Prima is looking to divest the 1.6 hectare property located close to the iconic Petronas Twin Towers, which is regarded as a prime parcel. The Retirement Fund was bidding for the land, which would see the government-linked investment fund forking out at least RM376.6 million if it secured the bid.
Significance: Magna Prima had an ambitious plan to build 60-storey twin towers on the land, with a combined gross development value of RM1.8 billion. However, the project is said to be too big for the low-profile property developer to handle, as large funding is required.
Mulpha Land Offer Deemed “Unresonable”
Mainstreet Advisers, the adviser to property developer Mulpha Land’s (MLB) minority shareholders, has recommended a rejection of the takeover offer made by Teladan Kuasa at RM0.497 per share, saying that the offer was “not fair” and “not reasonable”.
The offer price represents a RM0.203 or 29 percent discount to realised net asset value per share of RM0.70, according to Mainstreet. Additionally, it was highlighted that there is uncertainty surrounding MLB’s listing status should the offerors manage to secure more than 75 percent stake and fall short of the public spread requirement.
The advisers noted that the group has confirmed projects worth RM1.2 billion in gross development value for that spans between 2015 and 2018. In terms of earnings, the company recorded revenue and profit after tax of RM45.1 million and RM9.6 million respectively for FY14.
Significance: Despite the softening property market outlook and sentiments, the group has expressed its optimism on its projects, located at strategic prime locations. Mainstreet added that shareholders who wish to sell their shares may wish to consider selling their offer shares in the open market if they are able to obtain a price higher than the offer price, net of related expenses.
Boustead Registers RM533.3 Million Profit
Boustead Holdings registered a net profit of RM533.3 million on the back of RM10.6 billion revenue for its financial year ending 31 December 2014, attributable to profits from property, finance, investment and pharmaceutical divisions.
The company remained resilient despite tough market condiitons, leveraging on their strong fundamentals and diversified nature to ensure that the divisions contributed positively to the bottom line.
In FY14, the company strengthened organic growth with viable acquisitions to add value to the core businesses. Pursuing strategic plans, the company will capitalize on inherent opportunities in multiple sectors of the economy to drive performance.
Significance: The company is confident that momentum will be maintained and solid results will be delivered.
Magna Prima Open For Land Deal
No formal offers has been made to acquire Magna Prima‘s Lai Meng School property located along Jalan Ampang. However, Retirement Fund was believed to be eyeing the property, along with other interested parties.
Magna Prima is looking to divest the 1.6 hectare property located close to the iconic Petronas Twin Towers, which is regarded as a prime parcel. The Retirement Fund was bidding for the land, which would see the government-linked investment fund forking out at least RM376.6 million if it secured the bid.
Significance: Magna Prima had an ambitious plan to build 60-storey twin towers on the land, with a combined gross development value of RM1.8 billion. However, the project is said to be too big for the low-profile property developer to handle, as large funding is required.
Mulpha Land Offer Deemed “Unresonable”
Mainstreet Advisers, the adviser to property developer Mulpha Land’s (MLB) minority shareholders, has recommended a rejection of the takeover offer made by Teladan Kuasa at RM0.497 per share, saying that the offer was “not fair” and “not reasonable”.
The offer price represents a RM0.203 or 29 percent discount to realised net asset value per share of RM0.70, according to Mainstreet. Additionally, it was highlighted that there is uncertainty surrounding MLB’s listing status should the offerors manage to secure more than 75 percent stake and fall short of the public spread requirement.
The advisers noted that the group has confirmed projects worth RM1.2 billion in gross development value for that spans between 2015 and 2018. In terms of earnings, the company recorded revenue and profit after tax of RM45.1 million and RM9.6 million respectively for FY14.
Significance: Despite the softening property market outlook and sentiments, the group has expressed its optimism on its projects, located at strategic prime locations. Mainstreet added that shareholders who wish to sell their shares may wish to consider selling their offer shares in the open market if they are able to obtain a price higher than the offer price, net of related expenses.
