Sabah & Sarawak
Rebranding necessary for The Hills to diversify its offerings
The rebranding process of The Hills is a necessary step towards creating a workplace community and li festyle support whereby the local community can grow together. According to chief operating officer Lionel Ho, its official rebranding process announced earlier this month signified the group’s seriousness in revitalising the city centre.
Upside expected for Ta Ann following new certificate
Upside has been expected for Ta Ann Holdings Bhd’s (Ta Ann) timber and plantation divisions which will lead to growth in 2019-2020E earnings, analysts project. Af f in Hwang Investment Bank Bhd (AffinHwang Capital) expected Ta Ann’s future earnings to grow, underpinned by higher contributions from both the group’s plantation and timber divisions.
Cost structure still tough for palm oil players
The palm oil industry continues to experience a tough cost structure, analysts said, which may hamper the industry’s performance entering 2019. MIDF Amanah Investment Bank Bhd ( MIDF Research) said the existing crude palm oil ( CPO) cost structure experience by local industry player may reduce their competitiveness in the global market against Indonesia producer as well as other either oil industries, primarily soybean.
Mixed outlook for CPO prices next year
Analysts across the board have mixed opinions on the outlook for crude palm oil ( CPO) prices in 2019, citing unfavourable cost structures, an upcoming implementation of sustainability rules as well as inventories and production factors coming in to play. In a sector outlook, the research arm of Public Investment Bank Bhd ( Public Invest Research) believed a successful implementation of the biodiesel mandate in Malaysia ( B10) and Indonesia ( B20) could potentially flush out the excess palm oil supplies next year as current biodiesel margin becomes commercially viable even without subsidy.
New contract for HSL within analysts’ projections
Ana lysts are sl ight ly optimistic on Hock Seng Lee Bhd (HSL) following the group’s new contract award – under the Consortium with Larsen & Toubro Ltd and Larsen & Toubro ( East Asia) Sdn Bhd – by Sarawak Energy Bhd for the Matang 275/ 132/ 33/ kV Substat ion Project in Kuching. The contract, valued at RM91 million, is expected to provide RM41 million revenue contribution to HSL based on its 45 per cent equity in the consortium
Sarawak ‘the next place to be for construction’
The team at Hong Leong Investment Bank BHd ( HLIB Research) bel ieves that construction players are aiming for jobs in Sarawak as the state government has allocated circa RM9 billion for development expenditure under state budget 2019 which is the biggest in the history of the state. The research house said that “Sarawak is the next place to be” since job flows for industry players have slowed down “significantly” in Peninsular Malaysia following the change in federal government.