Financial Roundup: Mar 6, 2015

 Malaysia (petrol, currency, banking, property, equities, economy, etc); 1MDB; Inflation around the world; DiGi new CEO & strategic plan

Malaysia, Tanah Airku

malaysia-negaraku

Petrol: MY Increase

  • RON95/97/diesel: +25c/l
  • 1st time increase since float system (2014 Dec)
  • Cause: Higher average crude oil prices in Feb

Currency: MYR firmed

  • Firmed at RM3.60/USD (+0.9%)
  • YTD: -3.1%

Banking: Sustainable

  • Loans growth sustained at 8.6% (Y2014 8.7%)
  • Driver: Household sector (home loans)

Property: Slowdown

  • 2015: Klang valley expecting slowdown but unlikely decrease
  • Medium-priced housing in demand (still shortage)

Shares KLSE: Mixed reviews

  • Most analysts expect prices to weaken & Thursday evening losses to continue as investors turn increasingly negative
  • May be a good time to buy if good stocks drop to bargain prices!
  • However some analysts expect potential upside index reach immediate resistance level 1810

Economy

  • OPR: BNM maintain 3.25% (positive news)
  • OPR expect maintained entire 2015
  • GDP growth: 4.5-5.5%
  • Deflation: No threat yet

More reading

Fiasco: 1MDB

Arul-Kanda-Kandasamy-1MDB

  • Key Stats: Power & Property Fund; US$14b (RM51b) assets; New boss Arul Kanda Kandasamy (Formerly at Abu Dhabi Commercial Bank); 100% owned MoF
  • 2014: Losses; Almost missed loan repayment
  • Impact: Drove down MYR & govt bonds
  • Selling 18b debt to Edra Energy
  • Result: 1MDB into skeletal shell company
  • MoF Response: No comment
  • Scandal?: Previous allegations Jho Low tried to make off with 2.5b 1MDB money

More info

Economy: Inflation (Selected Countries)
Malaysia-Inflation

  • MY: -1.7% (Dec -0.3%; Feb went up to 2.18%)
  • USA: -0.1% due to lower energey prices (Dec: +0.8%)
  • HK: +4.1% as lower food & housing prices (Dec: +4.8%)
  • SG: -0.4% as lower food & housing prices (Dec: -0.1%)

Company: DiGi

albert-mury-digi

  • New CEO (former COO): Albern Murty (joined 2002; replacing Lars Ake Norling going to Thailand’s dtac)
  • Optimistic: Monetise strong demand of mobile data to boost earnings
  • Other Analysts: Warning competitive market with irrational pricing

Strategy: 3-year plan

  • To be #1 mobile internet provider for mass market
  • Enhancing customer experience
  • Expand & improve network coverage & quality via partners

Differentiation:

  • The way DiGi brings content to its users (?)
  • Affordable plans
  • Enhanced touch points with customers
  • Internet access to all

DiGi Selected Stats:

  • 2014: EBTDA: 45% (high margins!)
  • 2014: Almost 50% smartphone penetration
  • 2014 Q4: Data revenue = 40% of total group revenue

Mobile Prepaid Ranking Malaysia:

  1. Celcom
  2. DiGi
  3. Maxis

Mobile Postpaid Ranking Malaysia:

  1. Maxis
  2. Celcom
  3. DiGi

More Info:

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