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Tag: Malaysia

  • Shell seeking new upstream growth

    Shell seeking new upstream growth

    Following the sale of its shares in Shell Refining Company (federation of Malaya) Bhd (SRC) to a Chinese company, Royal Dutch Shell plc is seeking new opportunities for further growth in its upstream portfolio in Malaysia and to reinforce its joint ventures here with Petroliam Nasional Bhd (Petronas), besides strengthening its position in the retail segment.

    In a press conference held in conjunction with the Offshore Technology Conference Asia 2016 yesterday, its upstream director Andy Brown reaffirmed the oil and gas (O&G) major’s commitment in growing in the exploration, development and production side of the industry in Malaysia.

    “If I look at Shell in Malaysia, over the last two years, we have made 11 gas discoveries. We are very focused on our upstream business in Malaysia, seeking new opportunities for further growth, but also reinforcing our joint ventures, like the Baram Delta Offshore that we have [with Petronas].

    “I think it is not the time to be spending a lot of money, but we are demonstrating that we are here to stay, that Malaysia is an important part of Shell’s upstream business,” said Brown. Shell is the second-largest oil and gas producer in Malaysia after state-owned Petronas.

    On Feb 1, Shell Overseas Holdings Ltd entered into a conditional sale and purchase agreement with Malaysia Hengyuan International Ltd for the disposal of its 51% stake in SRC for US$66.3 million (RM265.2 million).

    The disposal sparked rumours that Shell might look at selling off some of its stakes in its O&G fields in Malaysia. However, Shell dispelled any connection between the disposals of the refinery with its upstream business in Malaysia.

    In a press release dated Feb 17, Shell explained that the sale of the stake in SRC should be seen in context with the oil major’s global strategy and portfolio activities. It said a refinery of SRC’s scale is not a strategic fit for its portfolio and that it would find it difficult to compete for new capital.

    Yesterday, Shell Malaysia Ltd chairman Datuk Iain Lo said the sale of the refinery is actually to ensure the stability and continuation of fuel supply in the country, as there was a concern that the SRC is a weak link in the supply chain.

    “We were concerned, [that] perhaps this is a very weak link in the supply chain of fuel supply in Malaysia. That is why we decided to find somebody who is prepared to invest in it, because it is not strategic for Shell to invest in it,” said Lo.

    In the upstream sector, Shell has been pioneering deepwater field developments in Malaysia, through the Gumusut-Kakap and Malikai fields, both offshore Sabah, and the Central Luconia and Baram Delta projects off Sarawak.

    According to Brown, Gumusut-Kakap has a peak production capacity of 135,000 barrels of oil equivalent per day (boepd). About 20% of Malaysia’s average oil production of around 650,000 boepd, comes from Gumusut-Kakap. Malikai will also be coming online soon.

    “When it comes to Malaysia, we’ve been here over 100 years, starting with Miri in 1910, and we’ve grown from that position. Last year for instance, we produced half the gas in Malaysia.

    “We have built in Malaysia a business that has the key elements of integrated gas, deepwater, and our fundamental fuel retail and lubricants, which really kind of mirrors the key focus areas for Shell now and going forward. We continue to look at ways we can partner with Petronas to continue to build that position,” said Brown.

  • Esprit sales flat, as expected

    Esprit sales flat, as expected

    Largely in line with expectations, Esprit sales were flat, the fashion brand says in its interim report for the six months to December 31.

    While its overall turnover was down 0.4 per cent overall, retail turnover grew 6 per cent while wholesale turnover fell 11.4 per cent.

    The gross profit margin for Esprit Holdings was stable at 50.5 per cent, while the net loss of HK$238 million was in line with expectations. The group had a healthy net cash position of HK$4.2 billion with zero debt.

    Unfortunately, positive retail sales growth in Europe was offset by continued weakness in the wholesale channel, and negative development in the Asia Pacific region. Asia Pacific turnover declined 6 per cent year-on-year, mainly dragged down by China with its 11.6 per cent drop. China represents 46 per cent of the region’s turnover.

    In its breakdown of turnover in Asia Pacific, China led with HK$655 million, 7 per cent of group turnover. Then came Hong Kong (HK$185 million, 2 per cent, down 0.4 per cent), Australia and New Zealand (HK$162 million, 1.7 per cent, up 0.3 per cent), Singapore (HK$129 million, 1.4 per cent, down 4.7 per cent), Taiwan (HK$98 million, 1.1 per cent, up 6.5 per cent), Malaysia (HK$97 million, 1 per cent, down 2.7 per cent), Macau (HK$56 million, 0.6 per cent, down 12.7 per cent) and others (HK$43 million, 0.5 per cent, up 6.2 per cent).

    In the previous financial year, the group moved towards vertical integration which resulted in more cost-efficient product development and supply chain processes, allowing product improvements in terms of design, quality and value-for-money.

    To maximise the selling potential of its improved products, this past year the group started pursuing an Omnichannel business model. In its early stages, this has led to improvements in growing its loyal customer base “Esprit Friends” and fully integrating the commercial activities of all sales channels.

    In September, the group launched an intensive brand-marketing campaign to strengthen and rejuvenate its image.

    Performance during the first six months of this financial year (between July and December) indicated that the vertical and omnichannel model was an effective basis to turn around its business, the company said.

    In its report, the company paid tribute to its co-founder, Doug Tompkins, who died in December, describing him as a “conservationist, outdoorsman, philanthropist, agriculturist and businessman”. He and his then wife, Susie Buell, formed the company in 1968. Esprit’s collections are available in 40 countries, in about 870 directly managed retail stores and through more than 7500 wholesale sales points including franchise stores and department-store outlets. The Group markets its products under two brands, Esprit and EDC.

    Listed on the Hong Kong Stock Exchange since 1993, Esprit has headquarters in Germany and Hong Kong.

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  • Central Market and 11street Take 19th Century Malaysian Handicrafts Online

    Central Market and 11street Take 19th Century Malaysian Handicrafts Online

    Online marketplace 11street (www.11street.my) and Central Market, one of Kuala Lumpur’s oldest and most famous centres for Malaysian culture and handicrafts products, have signed a Memorandum of Understanding (MoU) to make the historic venue’s offerings available to customers online.

    Customers throughout the country can now browse and buy a huge variety of products from Central Market’s diverse mix of retailers, ranging from home & living, fashion, sports & leisure, electronics and even groceries. 

    “This strategic collaboration will enable a business, which began life in the 19th century to make its products available to consumers across the country through a state-of-the-art 21st century medium,” said Hoseok Kim, Chief Executive Officer of 11street during the signing ceremony.

    Central Market has a rich history that dates back nearly 130 years to 1888. It currently hosts a total of 300 tenants and has become a landmark for souvenir shopping as well as an iconic opportunity to sample some of the finest aspects of Malaysian culture.

    “Collaborating with 11street has been a fantastic development for us. One of the secrets of Central Market’s unbroken track record of success has been its location within the heart of Kuala Lumpur. Being close to a public transportation hub has also played a role in making it a major attraction for both tourists and Malaysians alike,” Cheong Wai Mun, Complex Manager of Central Market.

    “Now, with the brand new presence on 11street, Central Market has broken its reliance on geography. Retailers can focus on doing what they do best – offering an incredible range of artistic and exciting products as well as services at attractive prices – to a wider group of audience,” Cheong said.

    The move has been warmly welcomed by Central Market’s tenants. One of them is Gadis Manis Malaysia, a brand that promotes Malaysian’s cultural diversity, with products such as bags, t-shirts, tableware, stationary and aromatic oils inspired by Malaysia’s nature, architecture and cultures.

    “I founded Gadis Manis in 2008 after moving to Malaysia and falling in love with the cultures diversity. I’m confident that partnering with 11street will add a new dimension to the business. I look forward to introducing my unique creations to a hugely expanded online customer base,” said founder, Florence Lambert Lee.

    Staying under the same roof, Wau Tradisi, a traditional handicraft shop that sells homemade Wau, congkak, gasing, wayang kulit and many more takes part on welcoming the collaboration. Wau, a uniquely designed Malaysian kite is a tradition inherent to the culture of Eastern States of Malayan Peninsula residents, such as Kelantan and Terengganu. Whereas congkak, gasing and wayang kulit are the traditional Malay games that have a century of history. 

    Expressing the happiness, Sarimah, founder of Wau Tradisi said, “E-commerce is universal nowadays, I’m glad that both Central Market and 11street make the effort to promote Malaysia culture by having our traditional items sold at 11street. With the combination between traditional products and modern online marketplace, I believe we can continue to carry on and bring our culture to more people, and even the future generation.”

    Other than Gadis Manis and Wau Tradisi, the list of enthusiastic tenants also includes Borneo Pearl, which sells hand assembled jewellery pieces using pearls cultured in Sabah, and the Coconut Shop, which offers a wide range of products crafted from coconuts.

    “All of Central Market’s tenants will benefit from the solid marketing support that 11street offers to its customers in order to make their online businesses a success. That includes education and training programs which covering effective product listing, digital content strategy, integrated online marketing, and photography,” Kim added.

    In conjunction with the new launch, a series of Central Market’s promotional offers and discounts that are close to 40% will be available on 11street until 24 February 2017.

  • Inside Bonia Selangor

    Inside Bonia Selangor

    Malaysia-listed luxury fashion retailer Bonia has opened a new generation boutique in its home market.

    The new store is on the ground floor of the Aeon Seksyen 13 Shah Alam shopping complex in Selangor.

    Bonia - Aeon Shah Alam Selangor Malaysia 2

    As the accompanying images released by the brand on Facebook show, the store has a distinctly curved facade and something of a ‘maison’ feel. It is thus similar to the style used by luxury European brands, with stock clustered by category in precincts, but not quite rooms.

    Bonia - Aeon Shah Alam Selangor Malaysia 3

     

    Stock is sparsely laid out to make the core leather goods ranges the hero of the displays, augmented by the brand’s apparel offer.

    Bonia - Aeon Shah Alam Selangor Malaysia 4

    Bonia Group has more than 700 sales outlets and 70 boutiques across Asia specialising in leatherwear, footwear and accessories.

    Bonia - Aeon Shah Alam Selangor Malaysia 1

     

    Altogether it has a network of more than 1200 sales outlets and 170 standalone boutiques throughout the world, including countries such as Brunei, Cambodia, China, Indonesia, Japan, Malaysia, Myanmar, Singapore, Thailand, Taiwan and Vietnam.

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  • Maxis Q4 profit grows 7.2%

    Maxis Q4 profit grows 7.2%

    Malaysia’s Maxis has reported a 7.2% increase in net profit for the fourth quarter to 477 million ringgit ($115.8 million), on the back of solid revenue gains.

    Service revenue grew 3.2% year-on-year to 2.16 billion ringgit despite intense price-focused competition.

    For the full year, profit after tax grew 0.9% to 1.96 billion ringgit, with service revenue up 3.8% to 8.23 billion ringgit.

    Postpaid revenue was up 2.7% to 3.66 billion ringgit as a result of solid adoption of its MaxisONE plans, which helped compensate for declines in voice and SMS.

    Prepaid revenue meanwhile increased 6.2% year-on-year to 4.18 billion riggit on the back of rising data usage and market share gains in the migrant customer segment.

    During the year the company more than doubled its LTE coverage to span 71% of the population. The company accelerated its infrastructure spending to a total of 1.3 billion ringgit during 2015.

    Maxis CEO Morten Lundal commented that the company plans to push on with its transformation efforts in the year ahead.

    “The first phase of our transformation of becoming a high performing mobile company is more or less done. Now we have a strong foundation to push ahead with the second phase of our transformation of becoming the preferred choice for digital experience seekers,” he said.

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  • Digi to spend $217.6m on capex in 2016

    Digi to spend $217.6m on capex in 2016

    Malaysia’s Digi Telecommunications has allocated 904 million ringgit ($217.6 million) in capex for 2016, to pursue expansion projects including the rollout of VoLTE and VoWiFi.

    The operator has roughly maintained its capex budget at the same size as 2015.

    Digi is currently testing voice over LTE and Wi-Fi technologies and anticipates a commercial launch this year, according to chief marketing officer Christian Thrane.

    He said the operator’s LTE network currently covers around 72% of Malaysia’s populated areas and 150 major cities and towns.

    In response to growing data demand, Digi recently launched a postpaid plan starting at 28 ringgit per month that offers higher internet quota than previous plans, as well as the ability to roll over unused data. The operator will offer promotional discounts on the new plans until June 30.

    Digi has also introduced data roaming plans for frequent and budget travellers starting at 10 ringgit per day.

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  • Zizan Razak and Elizabeth Tan are the new faces of 11street!

    Zizan Razak and Elizabeth Tan are the new faces of 11street!

    Underlining its intent to localise and grow its business in Malaysia, 11street (www.11street.my), Malaysia’s most exciting e-mall, today announced Zizan Razak, prominent local actor-cum-entertainer and Elizabeth Tan, Malaysia’s YouTube sweetheart-turned-singer as its new Brand Ambassadors for 2016.

    “As we turn one in April, we felt it was necessary to have two youthful, engaging, and exciting Malaysians to better connect with our customers and community moving forward. Both Zizan and Elizabeth share these qualities and we are delighted to have them represent our brand in 2016,” said Hoseok Kim, CEO of 11street.

    They will both be officially unveiled and make their first appearance at 11street’s 1st Anniversary celebration, themed ‘11street’s Shocking Deals Come to Life’! The online marketplace invites all Malaysians to join the party – a fun-filled carnival with games, goodies and coupons to be given away.

    It will take place on April 11(Monday) from 11:00am to 7:30pm at NU Sentral Shopping Centre, Kuala Lumpur. Well-known celebrity influencers, such as Intan Ladyana and Atikah Suhaime will present to the jubilant birthday celebration. During the event, 11street will also be announcing its collaboration with Xpax, the main prepaid brand for youth under Celcom Axiata Berhad, to help people to save more in 2016.

    On the other hand, leading up to the anniversary, 11street is running various onsite promotions from 1st to 11th April 2016, where unlimited discount coupons will be given out to its loyal consumers.

    As a treat to both customers and fans, 11street is also announcing its “Fly High LIKE A STAR with 11street” contest. By just spending a minimum of RM11 on 11street mobile app and answering a simple question, participants will stand to win a breath-taking helicopter ride followed-by an intimate dinner session with Zizan and Elizabeth. For those who are interested, do participate the contest from 23rd March until 3rd April on 11street.

    11street will definitely ‘WOW’ you at it’s full of shock 1st year anniversary!

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  • Le Lumiere joins WDM Authorised Diamond Dealer programme

    Le Lumiere joins WDM Authorised Diamond Dealer programme

    Joining the list of retail jewellers who are part of the WDM Authorised Diamond Dealer programme is Le Lumiere owned by Tomei, a leading Malaysian retail jewellery chain. Le Lumiere has become the first Malaysian retail jewellery to be part of the program.

    An agreement to this effect was signed between Datuk Ng Yih Pyng, Managing Director at Le Lumiere’s parent company and WDM Chairman Alex Popov.

    Datuk Ng added appreciated Le Lumiere achieving the status of the pioneer retail jeweller in order to acquire the title of WDM Authorised Diamond Dealer in Malaysia. This furthers the company’s efforts to ‘sustain the retailer’s image, contribute to the improvement of consumer confidence in diamonds and diamond jewellery, and thereby increase sales of diamonds and diamond jewellery.’

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  • Samsung Galaxy S7 edge officially launched in Malaysia for RM3,099

    Samsung Galaxy S7 edge officially launched in Malaysia for RM3,099

    Korean famous variety show Running Man star, Lee Kwang Soo made a special appearance at the Galaxy S7 edge launch event yesterday to inform fellow Malaysian that he had found his lost phone and he came here to show his appreciation to the local fans. His appearance set the crowd off with double the thrill and excitement.

    The launch event held at KLCC was packed with hundreds of gadget enthusiasts and Galaxy fans as Samsung Malaysia Electronics officially launched its latest and highly anticipated device of the year, the Samsung Galaxy S7 edge.

    The Galaxy S7 edge introduces the first Dual Pixel camera on a smartphone, delivering brighter and sharper images. With a wider aperture F1.7 and bigger pixel, the camera has a faster shutter speed and a more accurate autofocus even in low-light conditions.

    Motion Panorama, a new camera mode, brings movement to traditional panoramic photos, giving the user a completely immersive visual experience.

    The 5.5-inch Quad HD Super AMOLED on Galaxy S7 edge is constructed with 3D glass and metal – all in a sleekdesign with durability and ergonomic curves for a comfortable grip.

    The enhanced edge screen allow users to access the Edge panel that brings favourite content and services with just a swipe of the thumb.

    The device’s new Always-On Display, gives users a simplified, zero touch experience where they do not need to worry about missing a call or important notification.

    Edge UX, the advanced edge experience available on Galaxy S7 edge, provides convenience and increased efficiency by creating easy shortcuts to users’ most loved functions such as email, selfie mode, panorama mode or third party applications.

    Galaxy S7 edge is equipped with IP68 capless dust and water resistance for up to 1.5m of water and up to 30 minutes.

    The Galaxy S7 edge has a bigger battery capacity (3,600mAh), an enhanced processor and the latest Android OS (Marshmallow) to ensure that the batteries are used to their full potential. Its big battery allow for a full day of high mobile usage, without users having to worry about re-charging.

    The Galaxy S7 edge is capable of slotting in a microSD card slot that can host up to 200GB of expandable storage.

    The improved microSD card slot also works as a hybrid SIM card tray. The days of annoying re-start of the phone just to swap between SIM cards are over thanks to this cleverly-designed hybrid tray.

    The new Game Launcher arranges all your games in one place automatically and the Game Tools allows users to manage battery consumption and minimize notifications. Paired with the Galaxy S7 edge, Vulkan API gives users the ability to play high-performance graphic games smoother, less lag and with lower battery consumption.

    Samsung also introduced its first ever Galaxy Butler Service – a personalized ownership service exclusive to the Galaxy S7 edge. Underlining the brand’s all-encompassing Galaxy experience, this unique service offers a 24/7 hotline, free pick-up and delivery service, priority express counters and 1-hour repairs service, remote management, smart switch and 7-points check-up – assuring a peace of mind to owners on their consumer journey. Users can now look forward to Samsung’s promise of a seamless and enjoyable ownership experience.

    The Galaxy S7 edge will be available in Malaysia starting March 18. Offered at the recommended retail price of RM3,099 (inclusive of 6% GST), the Galaxy s7 edge is available in three colour options – Black Onyx, Silver Titanium and Gold Platinum.

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  • DFI agrees 10% equity stake disposal to Heinemann ASPAC

    DFI agrees 10% equity stake disposal to Heinemann ASPAC

    Malaysian duty free retailing group Duty Free International (DFI) is primed to sell a minority stake of its business to Heinemann Asia Pacific.

    The sale and purchase agreement includes the disposal of a 10% equity interest plus one share – comprising an aggregate 20,996,384 shares – in wholly-owned subsidiary DFZ Capital Berhad (DFZ) to Heinemann Asia Pacific for a consideration of €19,700,000.

    Under the terms, Heinemann Asia Pacific are also entitled to purchase a second tranche of shares in DFZ Capital Berhad (DFZ) via a call option (€1 per share) in an 18-month period beginning on the date that the first tranche of sales are completed.

    A further option to purchase a third tranche of shares in a 12-month period will begin on the date of expiry of the second tranche call option period – taking the total share eligibility of Heinemann Asia Pacific to 25% in a potential overall transaction of €52.21 million.

    The completion of the sale and purchase of the first tranche of shares is expected to take place on 1 June.

    A DFI statement read: ‘The company views HAP as a strategic investor, and the proposed disposal is expected to enable the company to benefit from the resources and expertise of Gebr. Heinemann and HAP in the areas of product assortment and costing, retail store management, distribution and logistics management of DFZ products.’

    ‘HAP’s investment in DFZ will allow Malaysians and visitors to Malaysia an enhanced travel retail experience, one on par with the best available in the world. The proposed disposal is also expected to further strengthen the group’s financial strength, enabling the group to consider future business opportunities.’

    Heinemann Asia Pacific CEO Max Heinemann is confident the joint venture with DFZ will realise synergies and new growth opportunities in Malaysia.

    Gebr. Heinemann says the joint venture agreement will not only strengthen the presence of the company in Malaysia but will ‘realise gross margin and operational synergies for DFZ Capital Berhad’, with Heinemann Asia Pacific involved in day-to-day operations and overall decision making.

    Max Heinemann, CEO of Heinemann Asia Pacific said: “Looking at the similar business models and corporate cultures of both companies, Gebr. Heinemann and DFI believe this joint venture to be a great strategic fit for growth together in Malaysia.”

    Malaysia’s fast-growing retailing group has more than 30 years’ experience operating at airports, seaport, downtown, border towns and popular tourist destinations at entry and exit points on the peninsular.

    DFZ operates duty free retail, duty free wholesale and duty paid outlets throughout the region in areas such as Pedang, Besar, Langkawi, Bukit Kayu Hitam, Kuala Lumpur International Airport and Johor Bahru.

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  • Kose cosmetics reveals global ambition

    Kose cosmetics reveals global ambition

    Japan’s Kose cosmetics has unveiled a global marketing plan that aims to give it a strong international presence – including department store outlets in China, Malaysia and Singapore.

    The plan was revealed as it celebrated its 70th birthday, with a media event at Roppongi Hills in Tokyo, attended by actress Yui Aragaki.

    In response to the success of its flagship Sekkisei skincare line, Kose is giving it more prominence on retail floors, and has introduced a “Stand by You” concept.

    Sekkisei products feature Chinese and Japanese herbal ingredients. The brand has been growing for 30 years and is continually updated, says Kose Corporation president/CEO Kazutoshi Kobayashi. Its latest addition is Sekkisei Herbal Gel.

    A dedicated counter section has been designed by architect Kengo Kuma, in keeping with the store’s Japanese-motif interior design.

    “The counter uses a special material, high-density polyethylene non-woven fabric, and is lit from inside to represent the divine whiteness of Sekkisei,” says Kengo Kuma.

    The dedicated sections will launch inside department stores in Fukuoka, Osaka and Tokyo next month, and be added to a duty-free store location in Hawaii by the end of the year.

    Other locations are being established in department stores in China, Malaysia and Singapore, which will help Kose expand the Sekkisei network to seven countries within three years.

    According to the Nikkei Asian Review, Kose earns about 30 billion yen (US$266 million) in annual Sekkisei sales, and is looking to build this figure to as much as 60 billion yen by 2020.

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  • Index, One-stop shop for homeowners

    Index, One-stop shop for homeowners

    Index Living Mall aims to be every homeowner’s one-stop shop that can transform an ordinary living area into a space that is worth boasting. AFTER its debut in Malaysia two years ago at IOI City Mall Putrajaya, Index Living Mall is making headlines again with its latest store at AEON Mall Shah Alam.

    This is the second store in the country for the home furnishing and decorative retail brand from Thailand. Index Living Mall aims to be every homeowner’s one-stop shop that can transform an ordinary living area into a space worth boasting about.

    The new two-storey shop is larger than the first, spanning across more than 6,000sq m with a wide range of home decorative items and furniture to suit everyone’s preference.

    Leave it to Index Living Mall to think of everything, because it also displays living room and bedroom decorating ideas for studio and one-bedroom apartments. Its professional team of designer specialists offers complimentary three-dimensional (3D) room design service while its sleep specialists are there to help you get the best mattresses available for a good night’s rest.

    Besides assisting customers with furniture selection, the store at AEON Mall Shah Alam offers free delivery and assembly service, which stays true to the brand’s commitment of delivering the best to its customers. The launch of the store was made official by the Royal Thai Embassy minister and deputy chief of mission Sirintra Chantapan.

    AEON Index Living Mall Sdn Bhd director Nur Qamarina Chew expressed excitement over the opening of the second Index Living Mall in Malaysia.

    “Partnering with AEON, we look forward to expanding the home furnishing brand locally and continuously catering to homeowners’ growing demand for unique, world-class designs,” said Nur Qamarina. Index Living Mall prides itself in offering reasonable prices without compromising on quality, a stress-free assembly service, and unique products by leading international designers.

    As part of its 12-day opening special ending March 21, the first 150 shoppers with a minimum purchase of RM1,500 will receive a RM150 voucher. During the same period, shoppers can sign up for a free JOYCard membership and enjoy weekly offers that will be available until April 3.

    AEON Credit Service is further sweetening the deal by offering its credit card holders a 10% cash back of up to RM30 per person for a minimum spend of RM100.

    As part of its expansion plans, Index Living Mall will open in AEON Mall Kota Baru in the second quarter of the year.

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  • Teddy Group opens two stores in Asia

    Teddy Group opens two stores in Asia

    Italian fashion conglomerate Teddy Group has opened two stores in Asia, with another to follow by the end of this month.

    A Terranova outlet has just opened at Vivacity Megamall in Kuching, which is the administrative centre of the state of Sarawak and the fourth most-populated city of the Malaysian federation. The 850 sqm store displays the entire brand collection, including menswear, womenswear, childrenswear, underwear and accessories.

    Four Terranova stores are planned for Malaysia, with the brand launching in Kuala Lumpur in 2013.

    Meanwhile, in the same shopping centre in Kuching, the first Calliope store will open by the end of this month. The 500 sqm outlet will sell menswear and womenswear collections and accessories.

    A second Terranova outlet in Mongolia opened in the Nomin Allmart shopping centre in the capital city of Ulan Bator, last month. The 700 sqm store offers the entire brand collection.

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  • Chemist Warehouse to launch in Malaysia

    Chemist Warehouse to launch in Malaysia

    Australian based CW Retail Asia has entered into a joint venture in Malaysia to roll out a chain of pharmacies under the Chemist Warehouse brand.

    Chemist Warehouse Berjaya Asia will be run by Morning Charm, a company just acquired by Berjaya Corp (BCorp), in partnership with Melbourne-based CW Retail Asia.

    BCorp has taken an 80 per cent equity interest in the venture for RM80,000 (US$19,520).
    “The project will enable the BCorp Group to expand and strengthen its pharmacy distribution and retail businesses under the co-brand names, as well as making its foray into the pharmacy warehousing business sector,” says BCorp.

    In Australia, CW Retail supplies goods and services to pharmacies and operates pharmacy retail chains.

    The two partners in the venture say while the initial focus will be on the Malaysian market they may open stores in other Asian countries in due course, under the Chemist Warehouse brand or another.

    The new company will also supply goods and services to Cosway Pharmacies, which will be re-branded as Berjaya My Chemist pharmacies, and to Tigas Alliance pharmacies. Chemist Warehouse Berjaya Asia and Berjaya My Chemist pharmacies are members of Tigas Alliance, a pharmacy banner group in Malaysia.

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  • CIMB Research retains Add for Berjaya Food

    CIMB Research retains Add for Berjaya Food

    CIMB Equities Research is maintaining its Add for Berjaya Food with potential re-rating catalysts are stronger sales on the back of a recovery in consumer spending and new contribution from its fast moving consumer goods (FMCG) business in FY17.

    However, the research house had on Thursday reduced its target price from RM3.27 to RM2.35. This was based on an unchanged 23.7 times target price-to-earnings which is a 30% premium over its peer average.

    It said on Thursday that BFood’s 3QFY16 revenue rose 10.3% on-year to RM147.3mil but core net profit fell 14.4% on-year to RM7.4mil.

    This brought BFood’s 9MFY16 core earnings to RM19.7mil (+0.3% on-year), with revenue surging 67.1% on-year to RM415.1mil.

    “Nevertheless, this was below our and consensus expectations, making up only 48% and 57% of full-year estimates, mainly on the back of the weaker-than-expected performance from its Indonesian and Singaporean operations,” it said.

    CIMB Research said there was positive same store sales growth (SSSG) of 4.4% on-year for Starbucks in 9MFY16.

    BFood’s 9MFY16 revenue growth was mainly fuelled by: 1) the full consolidation impact from the remaining 50% of Berjaya Starbucks since September 2014, 2) stronger SSSG at Starbucks, and 3) new Starbucks stores (+13 stores on-year).

    While Malaysia’s revenue jumped 81.5% on-year mainly due to the consolidation of the Starbucks franchise, revenues from Indonesia and Singapore weakened by 6.3% and 2.3% on-year, respectively.

    Starbucks recorded SSSG of 4.4% on-year, while KRR Malaysia and Indonesia saw SSSG drop 16.5% and 9.5% on-year in 9MFY16, respectively.

    Meanwhile, Singapore’s Jollibean business also saw weak SSSG of -5.5% on-year.

    Indonesian operations remained in the red while its Singapore operations recorded a loss of RM500,0000 versus a profit of RM600,000 in 9MFY15.

    BFood also incurred higher financing costs of RM9.5mil (due to the acquisition of Starbucks) and higher effective tax rates, which led to flattish core earnings growth.

    “We cut our FY16-18 earnings forecasts by 34%-46% to reflect slower performance from KRR in Indonesia and Malaysia and to take into account the higher effective tax rates,” CIMB Research added.

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