Some story from Brunei that could open up more opportunity to SCable if it materialises.
OBG sees big potential for Brunei in BIMP-EAGA region
DEBBIE TOO BANDAR SERI BEGAWAN Saturday, April 12, 2014
WITH the latest issue of the Oxford Business Group Report for Brunei currently underway, one of the focus the analytical team sees for the nation is Brunei’s role in the BIMP-EAGA (Brunei Darussalam-Indonesia-Malaysia-Philippines East Asian Growth Area) region.
In an interview with Paulius Kuncinas, regional editor for the OBG, he said that the OBG has noticed “a lot of activity” in places like Sarawak, Sabah, Kalimantan and Mindanao.
Kuncinas said that the growth trends being noticed is that capital cities in Southeast Asia - such as Manila, Jakarta and Kuala Lumpur - are increasingly being saturated in their consumer markets, and urban area growth are slowing down.
“What is happening in the secondary cities (such as BIMP-EAGA), is that the region is booming, and that’s a fact,” said Kuncinas citing growth numbers between seven to 10 per cent, compared to urban area growth which has been dropping to as low as three per cent.
The advantage for Brunei is that it is the only sovereign state that is close to these areas, which will allow the Sultanate the opportunity to provide connectivity, in terms of banking, and providing services such as business conferences or meetings.
“It can become a real gateway, or hub, so there is a lot of opportunity we think, in that theme, and also Brunei participating in these projects as one of their business,” said Kuncinas.
The OBG regional editor explained that traditionally, these highly fragmented areas are difficult to reach, and Brunei will be able to provide value in “connecting the dots” in the region.
“They have traditionally been underdeveloped, and that offers opportunity, I think, because they are where Malaysia and Indonesia were 10 years ago, so the growth potential is much higher and therefore more profitable,” he said, adding that Brunei is in close proximity to these activities.
Kuncinas said that Brunei could potentially be a broker for these areas, and help to put together some of the deals that are currently being done.
One example he cited was Sarawak’s hydro power plant development, which has huge access of electricity available for exports. “The main problem is that Mindanao is not connected to the (country’s) main grid, so the island is constantly suffering from chronic outages and blackouts, and is underpowered,” he said.
Kuncinas explained that Mindanao is unable to service its own residential demands, let alone supply enough power for industrial purposes.
“When you have this cheap electricity available in Sarawak which is ready for export, the one thing that is missing is an undersea cable which is expensive and tricky, and I think this is one tangible area where Brunei can step in and say that they want to share in this deal.”
Kuncinas further explained that Brunei would be able to free up some of its LNG (liquefied natural gas) for exports and purchase cheap hydro electricity because it would be more profitable to sell gas abroad than to consume it locally.
“It can also get a share of royalties and transit costs onto the sea cable to connect Sarawak and Mindanao, so it co-invests and becomes a transit city,” said Kuncinas, adding that Brunei could be a transit country for certain key high value products.
The Brunei Times
If they need more cables works, SCable will be in the position to help!
Coming to 900k volume now n steady at 1.55. Come to 1 million. Something brewing..... If can makan 1.56 and 1.58, it shows willingness of buyers. See how now.
SCABLE - NOTICE OF BOOK CLOSURE LISTING'S CIRCULAR NO. L/Q : 70395 OF 2014 A First and Final Single Tier Dividend of 1.5 sen per ordinary share of RM0.50 each. Kindly be advised of the following : 1) The above Company's securities will be traded and quoted [ "Ex - Dividend" ] as from : [ 2 July 2014 ] 2) The last date of lodgement : [ 4 July 2014 ] 3) Date Payable : [ 25 July 2014 ] MANAGER, SEC. MARKET
RM1.9 million pre-tax profit for Sarawak Cable in 4QFY13, with strong prospects ahead Posted on March 1, 2014, Saturday
KUCHING: Sarawak Cable Bhd (Sarawak Cable) recorded RM1.9 million profit before tax (PBT) for the fourth quarter of the financial year 2013 (4QFY13).
In its 4QFY13 results announcement, the company said other income in the corresponding quarter of 2012 is higher than that of 2013 primarily due to recovery of bad debts amounting to RM 3.1 million.
Finance costs has also increased by 193 per cent compared to 4Q12 principally due to borrowings for working capital requirements and to finance an acquisition of a subsidiary in 2012.
The sale of power cables and conductors contributed 36 per cent of group revenue, making it the main contributor to the group’s operating profit in 2013 with most of its operations concentrated in East Malaysia.
Meanwhile, the sale of galvanised steel products and transmission tower contributed 14 per cent of the revenue of the group via its subsidiary whose sales and services are in this segment, concentrates mainly in East Malaysia.
The contract revenue segment is one of the group’s main source of revenue, contributing 49 per cent of the revenue of the group and is the main contributor to the group’s revenue in 2013.
Segment results for 4Q13 have declined mainly due to slow progress of current on-going contracts in the cumulative 4Q13 and partly due to amortisation of intangible assets (construction contracts) of RM4.1 million, it noted.
Despite the mediocre FY13 results, the group remains positive its prospects driven by the rapid infrastructural and utilities developments in Sarawak, spurred by Sarawak Corridor of Renewable Energy.
“With the government’s increased focus on development of rural areas in Malaysia, particularly in Sarawak, under the Government Transformation Programme coupled with the development of heavy industries under SCORE, there is an urgent need to enhance the electricity generation and power distribution capacity in the state to facilitate infrastructural and industrial developments in the years ahead.
“This will translate into a continuous and strong demand for power cables and conductors, steel products, transmission lines and towers. This augurs well for our group which has a long track record, capability and capacity to undertake various projects in the power transmission and distribution business,” it said.
Sarawak Cable added, “While some of our operations may not have met the group’s target, we believe that our strategy for our future prospects and growth bodes well with the government’s focus on development of the rural areas in the State of Sarawak.
“Overall, the group’s strategy remains focused on growing its power cables, steel products and contract revenue segments, with a view to achieve improving performance in the financial year ending December 31, 2014.”
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
zoomboom
2,168 posts
Posted by zoomboom > 2014-04-07 23:05 | Report Abuse
Thx cherry tomato. When will election start?