The Star Online: Business
The Star Online: Business |
- Network services provider OCK in expansion mode
- KLCI starts September on cautious note
- Asia shares, Aussie dlr buoyed by China data, yen retreats
| Network services provider OCK in expansion mode Posted: PUCHONG: After setting up a subsidiary in Myanmar in July, followed by the incorporation of a unit in Cambodia last month, OCK Group Bhd is looking at Thailand and Indonesia for more potential business opportunities. Managing director Sam Ooi said the telco network services provider has been studying and researching about venturing into some of the South-East Asian markets since the end of last year. "In this globalised era, there is no business border and we see opportunities in our neighbouring countries where there is a need for network improvement," he told StarBiz in an interview. In Myanmar, it is submitting bids for projects alongside vendors to Norway-based telecommunication giant Telenor Group and Qatar-based Qtel Group, which had received the telco licence from the Myanmar Government. "The two telco operators will have a huge roll-out and they might plan for 4,000 to 5,000 sites within two years. "As we have already set up a company there, we will bid for the jobs," he said, adding that there could be a "substantial" source of income should it successfully secure some of the contracts. About two weeks ago, it announced the establishment of its Cambodian unit, Phnom Penh Pte Ltd under its wholly-owned subsidiary OCK International Sdn Bhd, an investment holding company for its regional and international businesses and subsidiaries and the provision of telecommunication network services and trading of related products and materials. Due to the consolidation in the telco industry in Cambodia, particularly when Axiata Group Bhd's Hello merged with Smart, there will be some consolidating work required. As OCK has worked with Axiata's local arm, Celcom Axiata Bhd, it stands a chance of winning contracts in Cambodia, he added. On top of that, it also sees some opportunities in building and maintaining towers in that country. Recently, it studied the feasibility of setting up a subsidiary in Bangkok for a potential green technology business. "It is not easy to set up a 100%-owned company in Thailand compared with Myanmar, so we are still studying the process," he said. At the same time, the long-term evolution (LTE) roll-out in Indonesia has also attracted Ooi's attention as it meant a huge business opportunity for OCK. "We have intentions of penetrating the market due to the attractive growth potential there," he said. Back at home, he said the telco sector was still growing steadily as the LTE roll-out in Malaysia was still at the initial stage. "I believe LTE licence holders will continue to roll out 4G services more aggressively next year," he said, adding that telco players would have to deploy twice the number of existing stations for full coverage nationwide. This is due to the shorter distance of between towers are built to enable high frequency transmission. He said the LTE activities in the domestic telco industry would keep it busy for another three to four years. Some operators may also choose to lease towers from network facility providers (NFP) like OCK, which owns about 60 towers currently, to reduce their capital expenditure, he said. It aimed to increase the number to 300 sites by end-2014. The licence it obtained in July from the Malaysian Communication and Multimedia Commission allowed it to lay fibre and lease it to operators, which is an additional scope for the services it provides. According to Ooi, it has also secured a 10 megawatt-solar farm contract at a site in Kuala Lumpur International Airport, Sepang. In July, it acquired Milab Marketing Sdn Bhd, which had received a development order for a solar farm project in Kelantan that could generate power of one megawatt, he said. Going forward, it aims to grow the solar farm business, he added. Based on its expansion plan, he estimated recurring income from its network facility provision and solar concession business to contribute some 5% to 10% to its topline. Commenting on how the weaker ringgit would impact its business, he said it would be felt within its trading division which could see its profit dip by 2% to 3%. Nonetheless, the segment only contributed 8% to its income for its financial year ended December 31, 2012. |
| KLCI starts September on cautious note Posted: KUALA LUMPUR: Malaysia's blue chips kicked off September on a cautious note, with the FBM KLCI down in early Monday trade, weighed by small losses in banks and Sime Darby. At 9.02am, the KLCI was down 4.21 points to 1,723.37. Turnover was 36.62 million shares valued at RM12.07mil. There were 64 gainers, 83 losers and 104 counters unchanged. Tan Chong fell the most, down 68 sen to RM6.30 while MABH gave up 30 sento RM6.68 and Lafarge 23 sen to RM9.23. Public Bank foreign fell 16 sen to RM17 with 100 shares done, RHB Cap 10 sen lower at RM7.38 and Public Bank six sen to RM17. Sime Darby shed none sen to RM9.30. Datasonic was the top gainer, up 19 sen to RM3.49 while Aeon Credit added eight sen to RM15.98 while Apollo added seven sen to RM4.21. |
| Asia shares, Aussie dlr buoyed by China data, yen retreats Posted: TOKYO: Asian shares, the Australian dollar and copper prices rose on Monday while the yen fell as hopes grew that China may have halted a sharp economic slowdown after factory activity data expanded at the fastest pace in more than a year in August. A delay to U.S. military action against Syria, as U.S. President Barack Obama seeks Congressional support, also helped boost short-term risk appetite. Steven Englander, Citi's global head of G10 FX strategy, recommended investors short the yen on the back of the Chinese figures, the Syrian news and a panel supporting Japanese sales tax increase. China's official purchasing managers' index (PMI) rose to the highest level since last April and topped market expectations. A separate manufacturing PMI report from HSBC is due at 0200 GMT. "This will reinforce views of China stabilisation. It is a risk positive, if only because it removes some of the short-term risk that the China slowdown could spiral further downwards," Englander said. Stock markets in the region got off to a positive start as the China PMI, and the recent data from the U.S. and Europe, raised hopes the global economy was on a firmer footing. MSCI's broadest index of Asia-Pacific shares outside Japan added 0.3 percent after rising 2.1 percent in the previous two sessions. Japan's benchmark Nikkei gained 0.8 percent. The yen had risen recently on heightened geopolitical tensions and as investors dumped emerging market currencies as they positioned for the U.S. Federal Reserve to begin reducing stimulus, perhaps as early as later this month. On Monday, the yen slipped 0.4 percent to 98.455 yen to the dollar, pulling well away from last week's low of 96.81, and eased 0.3 percent to 130.00 to the euro. The Australian dollar, which is seen as a proxy for Chinese growth because of the two countries' close trade ties, rose 0.3 percent to $0.8936. Against a basket of major currencies, the U.S. dollar held steady at a four-week high. Trading activity was likely to be light with the U.S. markets closed for the Labor Day holiday. Buoyed by the factory activity data from top consumer China, copper prices rose 0.6 percent and were on track to snap a four-day losing run. But oil and gold prices fell as investors unwound their positions as the U.S. delayed military strike against the Syrian government, blamed for using chemical weapons against civilian. Brent crude prices dropped 1.8 percent to around $112.3 a barrel after falling for a second day in a row on Friday, while gold shed 1.1 percent to around $1,308 an ounce. - Reuters |
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