Wednesday, 16 April 2014

(BUSINESS TIMES) RHB likes Aeon for its solid performance

RHB Research Institute continues to like Aeon Co (M) Bhd for its valuable brand name, good fundamentals and robust expansion in the next two years.

The firm, however, noted that since Aeon is trading at the higher end of its historical price-to-earnings (P/E), it has downgraded the stock to “neutral” from “buy”.

“Although we like Aeon for its solid performance and aggressive expansion, valuations appear fair.

“The stock is currently trading on par with its historical P/E of 23 times, which has appreciated by about 16 per cent since our upgrade on February 28,” said RHB Research.

The firm revised its discounted cash flow-based fair value to RM15.60 from RM15.80 previously, after revisiting its financial years 2014 and 2015 numbers.

In FY14, Aeon will open two new malls measuring 600,000 sq ft of net lettable area (NLA) in Bukit Mertajam, Penang, and 440,000 sq ft of NLA in Taiping, Perak. The Seberang Prai City shopping centre will be closed and relocated to the new Bukit Mertajam mall.

This year, Aeon will also be launching a new store in the Quill City Mall, Kuala Lumpur, as well as one MaxValu outlet in Gamuda Walk, Shah Alam.

Currently, the group has 27 Aeon outlets and four MaxValu stores.

(BUSINESS TIMES) I-Berhad plans Shah Alam towers

NEW LANDMARKS: Developer plans RM1.2b project next to its CentralPlaza@i-City venture with Thai firm in Shah Alam

I-BERHAD, the developer of I-City, yesterday announced a four-tower development in Shah Alam located next to its joint-venture shopping mall project with Central Pattana Pcl of Thailand.

The Central Tower, with gross development value (GDV) of RM1.2 billion, will comprise two residential suite towers, a hotel tower and an office tower.

With a total gross floor area of 1.6 million sq ft, it will be built adjacent to the CentralPlaza@i-City mall, which has an estimated GDV of RM600 million.

The two projects are to be developed on a 7.51ha site.

The tower development will be integrated with the shopping mall via pedestrian linkages at different levels. The food and beverage section of the shopping mall will be strategically located to tap residential and office traffic coming from the Central Tower development.

Architecturally, both CentralPlaza@i-City and the central tower development will share a common theme.

“We will roll out the first phase of the tower development and the shopping mall later this year,” said I-Berhad chief executive officer Datuk Eu Hong Chew.

He added that the tower project is slated for completion in 2019, while the mall development is expected to be completed and opened to public in 2017.

To facilitate the completion of the project, I-Berhad had on April 1 announced that it will dispose of development rights over the mall land in favour of the joint-venture collaboration. 

The immediate benefit of this disposal is a gain of RM20 million, derived from the difference between the land price and I-Berhad’s original cost of securing the development rights.

“The integrated development has positive implications on both our property development via the residential enclave, as well as property investment via the mall.

“In this manner, we are not only sustaining our growth story but greatly enhancing the value of the land,” Eu said.

I-Berhad’s net profit more than doubled to RM43.97 million in the year ended December 31 2013, from RM16.66 million previously, driven by ongoing property development projects, and fair value gains of RM13 million from the revaluation of investment properties.

Revenue rose 128 per cent to RM152.1 million, mainly due to higher sales from ongoing projects and growth in the leisure division, partly from new attractions at i-City, such as Red Carpet@i-City and House of Horror.

Moving forward, Eu said I-Berhad expects its property development segment to continue to be the company’s main revenue driver, with a steady revenue of between RM500 million and RM600 million by 2017, from RM95 million last year.

“Our launches are getting bigger. This shows that our property development division is growing and that its contribution will be higher. We will also have a bigger recurring income stream,” he said.

(BUSINESS TIMES) LBS Bina goes a notch higher with new project

CAMERON HIGHLANDS: LBS Bina Group Bhd is embarking on its first premium development with the launch of Barrington Homes, here.

The group also launched its sales gallery at Brinchang Square.

LBS Bina managing director Datuk Seri Lim Hock San said the new project and sales gallery reinforced the group’s long-term commitment here.

He said the new project would also boost the appeal of other properties on the hill resort.

The project has a gross development value (GDV) of RM5 billion over the next 10 years, which makes up 25 per cent of the group’s total GDV.

The project here is expected to contribute 30 per cent to its total revenue by 2017. LBS Bina has a 89.2ha landbank here.

LBS Bina executive director Datuk Seri Daniel Lim Hock Sing said the group hoped to spice up the appeal of Cameron Highlands to holidaymakers by adding entertainment elements to its future projects. He even hinted at the possibility of a mini theme park.

The group is targeting RM1 billion in total sales this year, with RM300 million sales from its project here.

(BUSINESS TIMES) Besraya: Highway extensionwill boost revenue

KUALA LUMPUR: Highway concessionaire Besraya (M) Sdn Bhd expects Besraya Eastern Exten-sion (BEE) to contribute posi-tively to the company’s reve-nue for financial year ending March 31 2015 from RM60 million previously.

Chief operating officer Wan Salwani Wan Yusoff said the target was possible due to the estimated average daily traffic volume of 40,000 vehicles per day.

“We hope that with the ope-ning of BEE today, Besraya’s contribution to the toll division willalso increase,” she said af-ter the opening of BEE, here, yesterday.

Last year, the division recorded an annual profit of RM274 million.

The RM700 million 12.34km BEE links Putrajaya in the south and Serdang to the east via the Middle Ring Road 2.

Wan Salwani said motorists would enjoy a one-month toll-free use of the BEE from yesterday until May 14.

Meanwhile, on the targeted percentage of BEE’s contribution to its parent company, IJM Corp Bhd, Salwani said it was still too early to forecast.

“It’s too early for us to say. However, we expect the numbers to be slightly higher,” she said. Bernama

(BUSINESS TIMES) Lahad Datu POIC drawsRM2.2b investments

ATTRACTIVE DEALS: Land lots offered to investors under Phase One and Two sold out

The Palm Oil Industrial Cluster (POIC) in Lahad Datu has generated total investments of about RM2.21 billion to date.

Sabah Deputy Chief Minister Datuk Raymond Tan Shu Kiah said up till last month, 42 companies had invested in the industrial area under its first two phases, covering 196.22ha, in various industries, especially biodiesel, palm oil refinery, oleochemicals, bio-pellet, biomass-based power generation, logistics and fertiliser manufacturing.

“The land lots offered to investors under POIC Lahad Datu Phase One and Two have all been sold. Hence, POIC is now focusing on Phase Three,” he said in reply to a question from Dr Hiew King Cheu (Bebas-Luyang) at the state legislative assembly, here, yesterday.

Tan, who is also Minister of Industrial Development, said infrastructure such as roads, drainage, sewerage, telecommunications, power and water supply, liquid cargo jetty, bulk cargo jetty and container port have made POIC a complete and attractive industrial location for investors.

Meanwhile, on the progress of Kota Kinabalu Industrial Park (KKIP), he said 354.71ha (51 per cent) of the allocated 700.94ha had been developed for industrial use.

He said the developed area accommodated 261 factories and entities, created 7,049 jobs and generated RM2.52 billion in investments.

“A total of 217.76ha (31 per cent) are in the various stages of development, such as the preparation of building plans and completion of building and infrastructure works,” he said.

On the issue of giving land for free to investors, Tan said it did not arise as the investors never asked for free land in either POIC or KKIP.

Regarding tax exemption, he said the state government had offered various investment incentives to encourage the inflow of investments into the country.

For instance, many investors in POIC or KKIP received tax-exempt status offered by the Malaysian Investment Development Authority, encompassing a wide range of industries.

On the issue of reducing red tape, Tan said all federal and state government agencies acted as development catalysts or industrial facilitators and they served as a team to assist investors in their business undertakings.

“Until now, we have facilitated investors’ dealings and we are ready to accept their constructive criticisms,” he said. Bernama

(BUSINESS TIMES) Cypark in deal to build Fairview JB campus

KUALA LUMPUR: Cypark Resources Bhd and Fairview International School have entered into an agreement to establish the latter’s new RM80 million International Baccalaureate (IB) World School in Johor Baru.

The project will be developed over three years, with the first two phases to be undertaken by Cypark at a cost of RM18 million.

Together with land and other related costs, the two phases will cost at least RM40 million.

Fairview International School chairman Prof Emeritus Datuk Dr Mohd Sham Mohd Sani said the new campus is expected to attract Singaporeans, expatriates and locals.

“This new campus signifies the beginning of the establishment of a centre of excellence for IB education in the southern corridor,” he said after a briefing on the Fairview Johor Baru campus project, here, yesterday.

The new campus can house 1,250 students.

It will receive its pioneer batch of students in August. Bernama

(BUSINESS TIMES) KEN all set for condo launch

KUALA LUMPUR: KEN Holdings Bhd is all geared up to launch its KEN Rimba Condominium 1, which is part of Phase Five of its KEN Rimba Township development, by the second quarter of the year.

Group managing director Sam Tan Chek Siong said the project comprises three blocks of 653 condominium units and 26 units of pool villas.

He said the units, from 1,076 sq ft to 1,119 sq ft, are priced from RM399,000.

“We have not officially launched Phase Five but the first block is almost sold out,” he said after KEN Holdings’ 30th annual general meeting, here, yesterday.

KEN Rimba Condominium 1 is expected to be completed by 2018. Next will be the launch of KEN Rimba Condominium 2, by year-end or early next year.

KEN Rimba Township comprises eight phases of development on 60ha. It is touted as the first green township in Malaysia.

The first two phases, KEN Rimba Legian Residences and KEN Rimba Commercial Centre, were launched in 2010. They consist of 328 terraced houses and 109 units of shoplots.

The third phase is KEN Rimba Jimbaran Residences, which consists of 168 two-storey terraced houses, launched last year. The project is due to be completed by year-end.

The entire township is expected to be completed in five years. Phases six, seven and eight are dedicated to a hotel and serviced suites to be built later.

At the meeting, KEN Holdings announced a proposed share split of its ordinary shares that will involve the subdivision of 50 sen each.

Group executive chairman Datuk Kenny Tan Boon Kang said the proposal has been approved by the company’s shareholders and it will make an announcement in due time.

Upon completion, the issued and paid-up share capital of KEN Holdings will be 191,720,000 split shares (including 12,317,400 split shares held as treasury shares).

(The Star) I-Bhd plans the Reit move

Lim and Eu during the press conference to unveil I-Bhd's new landmark development, the Central Plaza.

PETALING JAYA: I-Bhd plans to set up its own real estate investment trust (Reit) as the property developer strives to unlock more value and derive at least half of its earnings from recurring income in five years’ time.

Signs of this move can be seen in its latest exercise, whereby I-Bhd is divesting its development rights and land (related to the construction of its mall in iCity) to Central Plaza i-City Real Estate Sdn Bhd. This is the joint venture company between I-Bhdand Thailand’s Central Patana plc (CPN) which is constructing the RM580mil CentralPlaza @ i-City mall.

I-Bhd will reap RM20mil from this deal over the next 24 months.

“In a Reit, not only do you have recurring income, but you are able to unlock value. The RM20mil is small, but it shows that we are moving in the Reit direction.

“Why are we aiming to double the contribution from our leisure segment over the next three years? By doing so, this increases the value of our property investments,” saidI-Bhd deputy chairman Datuk Eu Hong Chew.

The shopping mall will be developed on a 11.12 acre land.

“Ultimately we are moving towards the direction where recurring income makes up 50% of our earnings.

“In five years’ time we aim to have property investments worth RM1bil and property development to contribute some RM500mil to RM600mil,” said I-Bhd chairman Tan Sri Lim Kim Hong.

Lim estimated that the investment properties would yield some 5% to 6% and at a value of RM1bil, this would translate to earnings of some RM50mil to RM60mil.

Lim added that from now, the company would have new developments taking place every month until year-end.

“These announcements will pertain to our three segments of growth be it in the leisure segment, investment properties or property development,” said Lim.

Currently the property investment portion is still small at RM50mil and I-Bhd is undertaking three key developments to achieve the RM1bil target.

Apart from the mall, it is also constructing 6,500 car parks under its i-SOHO project and is working with Best Western International to operate a RM50mil 216-room hotel.

Another significant development is that I-Bhd has obtained the approvals to subdivide part of iCity’s site meant for the mall construction, to construct its “Central Tower” development.

I-Bhd’s Central Tower development has a GDV of RM1.2bil and an area of 1.6 million sq ft. I-Bhd expects to recognise profit margins of 25% for the tower.

The first phase of Central Tower development comprises two residential towers slated for completion in 2019.

The remainder two towers will comprise a hotel and offices.

Last year, I-Bhd unveiled a corporate exercise which will see the company raise up to RM702.3mil, which would give it a significant war chest.

For its fourth quarter to Dec 31, 2013, I-Bhd’s net profit surged over 200% to RM29.58mil from RM9.08mil in the previous corresponding period. Revenue increased 81.07% to RM55.66mil.

This surge in profit was mainly due to higher profit from ongoing projects in its property development division, as well as fair value gains of RM13mil arising from the revaluation of investment properties held by the group.

For the financial year ended Dec 31, 2013, net profit rose 161.41% to RM43.97mil from RM16.82mil previously. Revenue jumped to RM152.15mil from RM66.66mil previously.

(The Star) Cypark, Fairview to build new school

KUALA LUMPUR: Cypark Resources Bhd and Fairview International School have entered into an agreement to collaborate and establish the latter’s new RM80mil International Baccalaureate (IB) World School in Johor Baru.

This project will be developed in phases over three years, with the first two phases undertaken by Cypark at a cost of RM18mil. Together with land and other related costs, the two phases will collectively cost at least RM40mil. – Bernama

(NST) Danga Avenue One food hub launched

LOTS OF CHOICES: There are more than 15 tenants offering local and international food

JOHOR BARU: DANGA Avenue One, at Country Garden Danga Bay (CGDB), was launched last Saturday.

There are more than 15 tenants at the commercial street, including Kenny Steam Disher Restaurant, 'M' Espresso Sporting Club, Food Channel, Tsim Sha Tsui, Restoran Madam Jean Pan Mee, Matterhon @ Danga, I Love Yoo!, Juice Baby, Tea Garden Restaurant, Kani Palace, Taang Shifu, Dining Room and Cheers Up.

Customers have a choice of snacks, Chinese food, Japanese food, steamboat and barbecue-style food, fried rice, nasi ayam penyet and other food.

The tropical concept landscape provides for a lovely setting for alfresco dining.

Country Garden Malaysia senior marketing executive Karen Thay said: "The first phase of construction for CGDB includes the commercial street which was completed in July last year.

"The whole CGDB commercial area will span an area of 6ha."

Thay said two other commercial streets would be launched after Danga Avenue One.

"More tenants will be moving into Danga Avenue One too. It will be a food sanctuary for locals and Singaporeans," she said.

Thay said the tenants, who included local and Singaporean industry players started operating last month.

The food and beverage outlets are opened daily between 10am and 10pm. Outlets that provided alcoholic drinks operate between 10am and midnight. CGDB is in Jalan Skudai.

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