Friday 6 July 2012

News Highlights - AirAsia, Malaysian Airline System, Construction Sector, Property Sector


AirAsia Bhd (RM3.75/share)
F&B segment aims to boost revenue contribution
AirAsia Bhd’s regional head of catering and in-flight business Shireen Chia said its food and beverage (F&B) segment plans to contribute 7% to the company’s revenue next year. She said in a move to boost revenue contribution, the company is in talks to partner other food and beverage companies that want to have their products on board. The food and beverage segment contributed about 5% to AirAsia’s revenue last year. She added that currently they are in talks with four other companies.  – Business Times

Malaysian Airlines System Bhd (RM1.08/share)
Expects to double digital sales this year
Malaysian Airlines System Bhd (MAS), which earned RM2.0bil from digital sales last year, expects to double that in the current year, driven by ticket bookings made through mobile devices. The airline’s digital-based business include ticket bookings made via the website, which contributes a bulk of the sales. MAS senior vice president for marketing and promotions (commercial) Al-Ishsal Ishak said the tie-up with global online payment company PayPal will help the company achieve its target to double the growth in digital sales year-on-year. He added that MAS expects bookings made online to grow by more than 500% this year. – Business Times

Construction Sector
No reason for KLIA2 to cost RM5b
Suggestions that KL International Airport 2 (KLIA2), the new low-cost terminal at Sepang, will cost RM5.0bil due to cost overruns appear to be misguided, said sources close to the project. They said that costs could rise to RM5.0bil if certain parties dictated terms to Malaysia Airports Holdings Bhd to build additional facilities that were not in the current plan. One of the sources said that as of now, the cost of construction will remain at RM3.9bil. On claims that the airport would not be completed by its deadline of April 2013, the sources said construction was on schedule and it was not a question of whether the airport would be ready on time but whether the operators of low-cost airlines could get their act together by then. – StarBiz

Property Sector
EPF takes a stake in joint venture developing London site
Sime Darby Bhd, together with SP Setia Bhd, is teaming up with the Employees Provident Fund (EPF) to develop the 39.1-acre freehold Battersea power station site in London with a projected gross development value of £8bil (RM39.4bil) comprising a mix of residential and commercial properties. In separate announcements to the stock exchange early yesterday, conglomerate Sime Darby and property developer SP Setia said a joint-venture company in which the EPF would subscribe to a 20% stake would be set up - StarBiz

Source: AmeSecurities

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