Monday 31 March 2014 StarBiz NEWS  aman Central ready by mid-2015 Parkson and GSC among anchor tenants of the new lifestyle mall in

By KiatiSaK CHUa [email protected]

GEorGE toWn: Aman Central, the biggest and iconic lifestyle mall in Alor Setar, is scheduled for completion by the end of the second quarter of 2015. Owned and developed by Great Realty Sdn Bhd of the Belleview group, the mall is 25% completed where construction has reached structure works on the basement and ground floor level. Group managing director Datuk Sonny Ho said the premier shopping mall would breath a new lease of life into the Alor Setar township. “The project development cost of approximately RM458.5mil will be financed via a mix of both debt and Ho: ‘This will really change and equity funding where the debt fund- lift to the lifestyle of those not ing includes a RM135mil bank loan,” only in Kedah but the northern said Ho in an interview with StarBiz. region.’ There is also a proposed medium term notes programme of up to respect of such outstanding MTN. RM170mil in nominal value and it is “We have received approval from backed by an unconditional and the Securities Commission for the an artist’s impression of the aman Central project. Located in the city centre opposite the landmark irrevocable guarantee from fund-raising exercise,” he said. , the mall is poised to be a regional one-stop shopping destination. Danajamin Nasional Bhd. Strategically located in the heart Danajamin via a Financial of Alor Setar’s city centre, just oppo- Ho added that people from south- screens) and Brewball Sports retail spaces by the end of this Guarantee Insurance facility granted site the landmark Alor Setar Tower, ern Thailand are also expected to Amusement Cafe. year.” to GRSB pursuant to which Aman Central is poised to be a shop in the mall. “We also have several fashion, Comprising eight-storey of shop- Danajamin shall provide an uncon- regional one-stop shopping destina- As to date, approximately 50% of food and beverages as well as elec- ping levels with a two-level base- ditional and irrevocable financial tion and an ideal getaway for the the mall’s net lettable area has been trical and information technology ment car park, the total built-up area guarantee insurance policy to the entire family. leased out. retailers who have confirmed their of thr mall is approximately two holders of the MTN in respect of the “This will really change and lift to Among the anchor tenants and tenancies including Giordano, The million sq ft and the net lettable area aggregate nominal value of all out- the lifestyle of those not only in junior anchor tenants are the Parkson Body Shop, Hush Puppies, Secret is approximately 800,000 sq ft. standing MTN and one coupon pay- Kedah but the northern region of Retail Group, Golden Screen Cinemas Recipe and many more. It will boast a total of 330 retail ment obligation of the issuer in .” (that will be operating 10-digital “We expect to leased out all the lots with 1,700 parking bays. cocoaland’s earnings likely to remain stable and resilient

noon that it has signed a memoran- Analyst Reports Cocoaland Muhibbah Prestariang dum of understanding with the Engineering state’s Johor Education Foundation (JEF) to set up a 3.00 COCOALAND HOLDINGS BHD 2.50 March28 4.00 Petroleum Academy Malaysia (PAM) By AmResearch RM2.06 March28 in Johor. Buy (maintained) 3.00 This will be a 70:30 joint ven- RM

2.30 RM RM3.78 Fair Value: RM2.60 2.00 RM ture with JEF, to provide skill and upskill training to youths aged 17 March28 2.00 WE reaffirm our “buy” recommen- 2.20 to 25 entering the oil and gas dation on Cocoaland Holdings with RM2.88 industry. 1.00 an unchanged fair value of RM2.60 2 1.00 This is to meet expected demand per share, based on our discounted 20 for skilled workers, particularly for il) 10 il) cash flow valuation. Following our il) the proposed Refinery and (m 1 (m 10 (m recent meeting with management, 5 Petrochemicals Integrated VOL VOL we remain upbeat over Cocoaland’s 0 0 VOL 0 Development (Rapid) project in business prospects. March'13 March'14 March'13 March'14 March'13 March'14 Pengerang Johor. While consumer spending is This development is not unex- expected to be weaker, we believe sation) with no further plans for RM2.1bil with the infrastructure being constructed in its shipyard at pected, as the company indicat- that the group’s earnings would capacity expansion. construction division making up 47% any one time. ed during its analysts’ briefing at remain stable and resilient, buoyed One of the factors that affected its of the orderbook. The crane manu- Thus we expect the utilisation rate the end of last month that it by resilient demand as its products margins last year was higher start- facturing division accounts for to average at 50% throughout 2014 hoped to sign a deal with the are less price sensitive given its tar- up costs from the new fruit gummy another 49% and the rest comes and 2015. We opine the concession state government sometime this get market (children and young- production line – will no longer drag from its shipbuilding and repair division will grow even more signifi- month. sters); earnings that are supported earnings. We are cognisant about services division. cant in the mid-term. If all goes to plan, the school will by capacity expansion and exports, the underlying issue (higher operat- We believe this orderbook is set The Sihanoukville Airport current- start operations at end-2014, if not particularly for fruit gummy; and ing costs) which may affect to receive an approximately RM3bil ly serves domestic routes only but earlier. favourable raw material prices. Cocoaland’s margins. boost between 2014 and 2015, may eventually open up for interna- We remain bullish. If Petronas’ Going into 2014, we expect the In any case, the group is able to stemming from its participation in tional routes. RM60bil Rapid project takes off, group to register higher sales pass on cost to customers adjusting the refinery and petrochemicals It is located strategically near the Rapid alone will need at least 50,000 growth of 10% driven by fruit product sizes. Thus, we expect an integrated development (Rapid) Gulf of Thailand and is the closest new skilled workers and Prestariang gummy as the key revenue driver earnings before interest and tax project and the growing oil and gas airport to the country’s offshore oil will only be able to serve a small part (35% of revenue). This in line with margin of 11.5% in 2014. industry in Cambodia as well as deposits. Contributions are expected of this demand. its capacity expansion (+160%) and Cambodian government efforts to to pick up due to increase in traffic We have assumed in our forecasts healthy margins. The new line is MUHIBBAH ENGINEERING (M) spruce up the country’s civil infra- flow. that it will start training 3,000 stu- expected to last the group for the BHD structure. dents annually from 2015 onwards. next four to five years. Current uti- By RHB Research Institute Buoyant drilling rig demand is PRESTARIANG BHD Investors should remain invested in lisation rate is 40%. Buy expected to sustain Muhibbah’s By CIMB Research this stock. Beverage contribution (second Target Price: RM3.35 crane manufacturing division, as the Add If all goes well for its Johor train- largest revenue contributor at 32%) current orderbook offers earnings Target price: RM4.45 ing school, we believe the company is unlikely to outstrip fruit gummy MUHIBBAH’S current total order- visibility up to 2016. We conserva- may expand to other states in the given the current capacity (95% utili- book amounts to approximately tively assume only three vessels PRESTARIANG announced this after- country.