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AWARDS
Three-AResourcespropelledthefoodingredientsmanufacturerfrom source.“Ithinkitworkedoutwellintheendwiththepurchaseof
obscurityintothepubliceye. CarlsbergSingapore.Ithinkdividendswilleventuallybepushedbackup.”
Marketsourcessaythatthecompanyhaslongflownundertheradar
ofmostinvestors,despiteconsistentlyperformingandgrowingsteadily.
Itproducesvariousproducts,includingcaramelcolour,glucosesyrup LARGE-CAPCORPORATEOFTHEYEAR
andsoyaproteinsauce. CIMBGroup
Three-A’sprofitabilityisonemeasureofhowwellithasdone.Inthe
firstninemonthsofthisyear,netprofitcametoRM13.5million(US$4
million),a48%year-on-yearrise. Malaysia’sbestlarge-capcompanywasabattlebetweentwobanks:CIMB
Thecompanyhasexpandedprudentlyovertheyears,slowlyadding GroupandPublicBank.
newproductstomeetmarketdemand.In2007,Three-Aseizedonthe PublicBankwonthisawardfrom Asiamoneyin2007and2008.It
growingdemandforinstantcoffeeandintroducedmaltodextrine, remainsananalystfavouriteforitsconservativenaturethathashelpedit
whichisoneoftheproduct’skeyingredients. toweatherthedownturnverywell.ButAsiamoneybelievesthatCIMB
“It’sascalablebusinessandthat’swhatinvestorslike,”saidaheadof Groupdeservestheplauditsthisyear.
researchinKualaLumpur. ThisisnotthefirstAsiamoneyawardthatCIMBhaswonin2009.In
AlleyesarenowonhowtheWilmarfactorwilldrivethecompany. June,itwasnamedthebestdomesticbankinMalaysiaandalsobestlocal
ThecommoditiesfirminvestedRM46.20milliontotakea16.67%stake equityanddebthouse.Nootherdomesticbankinggroupmadeaclean
inThree-AResources. sweepofallthreeawardsthisyear.
ItsstampofapprovalhasbeenencouragingforThree-A,sayana- MarketinsiderscreditCIMBfortakingfulladvantageofthedislocated
lysts.“It’sagreatpartnership,”saidanindustrysource.“Three-Ais markets,whichillustratesitssavvyunderstandingofmarketmovements.
knowntobeconservative,soWilmarwillpushthemtobemoreaggres- IthelpedanumberoflargeMalaysiancorporatestotapthecapitalmar-
sive.Togethertheywillbewellrunandaggressive,andthatisallthe ketssmartlyandalsorapidlygrewinregionalmarketssuchasIndonesia
better.” andThailand.
TheacquisitionisjustthefirststepforThree-A.Thecompanyhas Thebankhasservedupstrongnumbersthisyearasaresult.Ithita
saiditislookingforwardtofurtherpartnershipsthatcouldincludejoint recordthird-quarterprofitthisyear,jumping62%year-on-yearto
overseasacquisitions.Andwhileithasnotpubliclyofferedanymore RM726.83million.
detailontheseplans,analystssaythatWilmarcouldtapitslargedistri- “Theregionalexpansioniscontributingtothebottomlinequitenicely
butionnetworkinChinatodistributeThree-A’sproducts. andthenumbershavesurprisedontheupside,”saidaheadofresearchat
Givensuchexplosivepotential,investorsarekeepingacloseeyeon aninternationalfirm.“Thishasledtoare-ratingofthestock,whichwe
Three-A,anditsstockpricereflectsthis:itsoared341%toRM1.41in believewillcontinue.”
theyeartoDecember4. CIMB’sregionalexpansionhasbeengoingonforyearsandthebankis
nowreapingtheresults.“Theyhavebeenputtinginplacealltheplat-
formsandthequestionnowiswhethertheycandeliver.I’mquiteconfi-
MEDIUM-CAPCORPORATEOFTHEYEAR dentthattheyhaveit,”asenioranalystatarivalbanksaid.
CarlsbergBreweryMalaysia Theoutlookfor2010looksbright.Analystsbelievethatcapitalmar-
ketsactivitywillstaybuoyantinAsia.AndasMalaysia’sbestinvestment
bank,CIMBissettobenefit.
Therehasn’tbeenaclearstand-outinMalaysia’smid-capcorporate
arenaoverthepastyear.Intheend,Asiamoneydecidedtogivethenod
toCarlsbergBreweryMalaysia. BESTEXECUTIVE
Intruth,thecompanyGuinnessAnchorwasalsoastrongcontender NazirRazak,chiefexecutive,CIMBGroup
forthisaward,butonefactorabovealltipsthebalanceinCarlsberg’s
favour.
ThisyeartheMalaysianunitofCarlsbergboughtCarlsberg “Icouldn’tsupportNazirRazakmore,”gushedaheadofresearchinKuala
SingaporeforRM370million.Itisanacquisitionthatpromisestodiver- Lumpur,whenaskedifthechiefexecutiveofCIMBGroupwasMalaysia’s
sifyitsearnings. bestexecutivein2009.
“Theacquisitionisexpectedtocreatesynergisticbenefitsamounting Conversationswithothermarketsourcesinvariablyendinsimilar
toRM20toRM25millionperannum,”findsanOSKreportpublishedin compliments,underscoringtherespectthatRazakhasgeneratedamong
lateAugust. analystsandinvestorsforhisachievementsoverthepastyear.
Althoughwellmanaged,CarlsbergBreweryMalaysiahascome “Youdon’thavetogoveryfar.Itshowsupinthefinancialawards,the
underpressurefromthinningmarginsandasaturatedhomemarket. profitsandnumbersandthegrowingsizeofthebank,”addedanother
MuslimsarenotpermittedtoconsumeliquorinMalaysia,whichmeans seniorsource.
thatitsmaincustomersareIndianandChineseresidents,aswellas UnderRazak’sleadership,CIMBhasmorphedintooneofMalaysia’s
tourists. mostrespectedinstitutions.Itsinvestmentbankingprowessisunmatched
ButtheacquisitionofCarlsbergSingaporeopensupsizeablenew domestically,whileitcouldbecomethebestbankinggroupandinvest-
markettothecompany.Analystsbelievethisisashrewdmove. mentbankacrosssouth-eastAsia.Singapore’sDBSisitsonlyrealrival.
“Carlsberg’sacquisitioniswellreceivedandthathasboosteditshare MarketinsiderscreditRazakforCIMB’sachievements.“Sincehetook
prices.Thisoffersthemagoodgrowthopportunityandshouldmean overCIMBinvestmentbankinginthe1990s,thetransformationhasbeen
earningsboost,”saidoneheadofresearchataninternationalfirm. solid.Icanconfidentlysaythattheywillbeevenmorepowerfulinthe
SomeobserverscriticiseCarlsbergBreweryMalaysiaforhaving nextfiveyears,”saidtheseniorsource.
reduceddividendyieldsearlierthisyear,althoughthestockisgenerally SomeliketosaythatRazak’sX-factorispartlydowntothefactheisthe
recognisedforofferingattractivedividends.Whilethismovecouldhave youngerbrotherofNajibRazak,Malaysia’sprimeminister.Butotherssay
alienatedshareholders,themanagementpushedaheadandithassince hehasestablishedhimselfasacapableleaderandmanagerinhisownright.
delivered. “AlotofcriticssaythatNaziriswhereheistodaybecauseofhisbroth-
“Whentheyheldbackondividendstherewereconcernsthatthat er,butlet’sbefair,hehasabsolutelyprovenhimself,”saidtheheadof
theymaynotbeabletofindsomethinggreat,”saidanothersenior research.
54 DEC2009/JAN2010 ASIAMONEY
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