Kossan Rubber
Industries Bhd (RM3.13/share)
Eyes upstream move
Kossan Rubber Industries Bhd, the country’s fourth largest
rubber glove maker, will prioritise upstream expansion into rubber plantations
to manage the risk of fluctuating latex prices. Managing director Datuk Lim
Kuang Sia said upstream expansion has been given a high priority within the
group. It is looking for approximately 10,000ha of greenfield land to plant
rubber, either in Indonesia or Myanmar. Lim said that having steadily expanded
their capacity, they now need to look into risk management and raw material
supply management. He added that diversifying upstream will give them a natural
hedge against the volatility of rubber prices and ensure sufficient supply in
the event of a shortage. This follows in the footsteps of the world’s largest
glovemaker, Top Glove Corp Bhd, which acquired 30,000ha of greenfield rubber
plantation land in Indonesia last month.
– The Edge
AirAsia Bhd
(RM3.69/share)
AirAsia: Jakarta move
won’t lead to migration of ops
AirAsia Group chief executive officer has rubbished comments
that his move to Jakarta will lead to the eventual migration of its entire
operations to Asean’s most populous country. Tan Sri Tony Fernandes insisted
that his move to Jakarta is just a way to focus his energy on growing AirAsia’s
presence in Asean. AirAsia’s regional headquarters is currently manned by 20
people, 50% of whom are from its Malaysian office. Fernandes said that AirAsia
Asean, which was launched yesterday will
help ensure that their voice, concerns and appeals are heard much more clearly
in the corridors of power with Asean. On AirAsia’s planned acquisition of
Batavia Air, he said the airline will look at other options it is not able to
proceed with the deal. However, he is confident that the deal will go through.
– Business Times
UMW Holdings Bhd
(RM9.89/share)
Sees higher FY12
earnings
UMW Holdings Bhd, Malaysia’s biggest carmaker and assembler
by market value, expects full-year profit to increase as auto sales climb and
its oil and gas business rebounds from two years of losses. Chief executive
officer Datuk Syed Hisham Syed Wazir said the company’s oil and gas business
would be profitable this year as its drilling rigs and the trading of oilfield products
and services contributed to revenue. He added that the scenario is very buoyant
and opportunities are increasing. The profit gain may help extend its 42% rally
this year, the second-biggest gain among South-East Asian automakers and
assemblers and the most in the FTSE Bursa Malaysia KL Composite Index. The
improving outlook also drew foreign investors, who held 24% of the company in
the second quarter from 16% in the previous three months, according to data
compiled by UMW. - StarBiz
Source: AmeSecurities
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