Company Financial Result

WCT  reported  its  3Q10  earnings  of  RM30.56mn,  which represents a 9.5% decline in earnings sequentially. Consequently, 9M10 earnings decreased YoY by  13.3%  to  RM99.3mn.

IOI Corp reported 1Q FY11 results yesterday, -2.6%yoy to RM408mn, accounting for 19% of our FY forecast.  Results included forex translation gain on US$ debt and impact of FRS 139 accounting.

TSH Resources   9M10 net profit.  Earnings dragged by lower ASP of Indonesian CPO , lower yields from newly matured trees and higher tax expenses.  FY10F earnings cut by 12% 

CB Industrial Product 3Q10 net profit exceeded expectations

3Q10 was lifted by improved operating efficiencies and higher earnings from associates and JVs.  FY10F-12F earnings increased by 5-12%

Kossan Rubber Industries.  3Q10 net profit of RM28.6m (-5% q-o-q) and 9M10 of RM88.9m. Operating margins were lower at 14.4% due to cost pressures

XOX awaiting call

XOX Bhd is planning to raise about RM40 million in its initial public offering in a test of investors' appetite for MVNOs XOX Bhd is planning to raise about RM40 million in its initial public offering (IPO), making it Malaysia's first full-fledged mobile virtual network operator (MVNO) to be listed on the local stock exchange.

The IPO, which is awaiting the Securities Commission's (SC) final approval


Read more: XOX awaiting call http://www.btimes.com.my/Current_News/BTIMES/articles/xox15/Article/index_html#ixzz15gsaWBpQ

FBMKLCI: 1496.65 DJ: +173.35 CRUDE OIL: 82.84 RM: 3.113

KNM 100% subsidiaries, KnmPS won the bid for the supply of technical documentation, equipment and services for the development of gas condensate fields i.e. Adamtash, Gumbulak and Djarkuduk Yangi Kizilcha in the Republic of Uzbekistan amounting to about USD216 million (RM680m) for a duration of 2 years from Lukoil Uzbekistan Operating Company, starting now.

AirAsia X, will start flying to Paris from next Valentine's Day, more than a year after getting the rights to do so. The carrier will start four times weekly direct flights from 14 February 2011, between Paris-Orly International Airport and Kuala Lumpur International Airport's low cost carrier terminal. Yesterday, the airline announced that it would launch the route with an all-in-fare from RM499 one way. It is available for booking online from 22-24 Nov 2010. This will be the carrier's second European destination after London. The new route will be serviced by the Airbus A340 aircraft with 327 passenger capacity including 18 premium seats.

LHH has received an offer from Emerging Glory s/b to acquire the company's entire business, including all assets and liabilities, for RM318.6mil. Based on the issued and paid-up capital of Leong Hup as at Nov 18, the purchase consideration worked out to RM1.80 per share, Leong Hup told Bursa Malaysia yesterday. According to Emerging Glory's offer letter, it planned to pay RM169.7mil in cash while RM148.9mil would be considered as debt due to Leong Hup. In a separate filing with Bursa, Emivest Bhd has also received similar takeover offer from Emerging Glory for RM108mil which is inter-conditional with the Leong Hup's offer.

Shares of MRCB and IJM Land perked up amid a weak broader market yesterday after a popular finance blog speculated on a possible merger. The rise comes as retail investors have become more active in the market recently. Last month, they accounted for almost half of the volume traded. IJM securities, namely the mother share and the warrants, were among the top 10 most-actively traded securities yesterday. Meanwhile, MRCB, the master developer for the KL Sentral development in Brickfields, ended the day 9 sen higher at RM2.10 with more than 11m shares traded. The Malaysia-Finance Blogspot, under a post headlined "Does a MRCB-IJM Land merger make sense?” noted that "the word had switched from an IJM Land privatization to a merger with MRCB. Something along the lines of a UEM Land-Sunrise deal it seems". Early this month, UEM Land Holdings launched a RM1.4bn conditional takeover offer for Sunrise.

Buy Media Prima: OSK, ECM

OSK Research and ECM Libra have maintained a "buy" call on Media Prima Bhd following the company's better than expected nine-month financial performance.

"The company registered a core net profit of RM110 million for its nine-month financial period, which was above our expectation and accounted for 83 per cent of our net profit forecast for financial year 2010," said OSK Research in a research note today.

"Without consolidating the revenue from NSTP and Kurnia Outdoor, Media Prima reported a 22 per cent year-on-year increase in revenue supported by revenue growth from all of its other media platforms such as television, radio and outdoor media," it said.

OSK Research has revised the company's financial year 2010 and 2011 earnings forecast by 18 per cent and 12.9 per cent respectively, with a higher target price of RM3.30.

Meanwhile, ECM Libra mentioned in a research note, that Media Prima had revised its dividend policy and going forward, paying twice a year.

"Assuming a 75 per cent net dividend payout ratio (DPR), investors can expect another six sen net dividend per share (DPS) or three per cent dividend yield at year. -- Bernama

Read more: Buy Media Prima: OSK, ECM http://www.btimes.com.my/Current_News/BTIMES/articles/20101118122728/Article/index_html#ixzz15cLStcDa

ECONOMIC HIGHLIGHTS

Malaysia: Slower 2Q GDP growth see

China: Yuan’s Hong Kong premium shrinks 77% on HKMA swap

China: May impose temporary price controls as inflation surges

Australia: Wage growth accelerates by most in almost two years

UK: Jobless claims unexpectedly fell in October

EU: Crisis causes retreat from dollar bonds: credit markets

US: Economy prices cool, backing fed inflation view

The cost of living rose less than forecast in October and housing starts dropped, validating Federal Reserve Chairman Ben S. Bernanke’s decision to give the US economy another dose of monetary stimulus. Consumer prices excluding food and fuel, the gauge followed by central bankers, increased 0.6% from October 2009, the smallest gain in y-o-y data going back to 1958, the Labor Department said. Builders began work last month on the fewest homes since a record low reached in April 2009, according to figures from the Commerce Department.

US: Consumer prices in US probably rose in October on gasolin
The cost of living in the US probably rose for a fourth month in October, led by higher gasoline and food pricesthat aren’t filtering through to other goods and services, economists said. The consumer-price index increased 0.3% after a 0.1% gain the prior month, according to the median forecast of economists surveyed by Bloomberg News before the Labor Department report. Excluding food and fuel, so-called core costs may have increased 0.7% from October 2009, matching a record low. Another report may show housing starts last month fell to the lowest level since July. 

FBMKLCI: 1503.54 DJ: -15.52 CRUDE OIL: 81.49 RM: 3.116

YTL Communications is seeing “dramatic” demand for its WiMAX service in Malaysia, with pre-registrations for the product exceeding expectations three times, said executive chairman Tan Sri Francis Yeoh. Yeoh declined
to give a specific target for the “yes” wireless Internet and voice service.

 

MEDIA, the country's leading newspaper publisher and broadcaster, broke the RM1 billion sales barrier for the first time in its history, posting RM1.13 billion in sales for the nine months ended September 2010. Media Prima plans to pay an interim single-tier dividend of 4 sen per share to shareholders before year-end to reflect the significant rise in earnings and profits, as well as an acknowledgment of shareholders' support.

Carrefour has suspended the sale of its Malaysian and Singapore stores after bidders, including Japan's Aeon Co Ltd, offered too little to persuade the French retailer to part with the operations, two sources said. Carrefour rejected offers in a second round of bidding that closed on 5 Nov and informed the potential buyers that the sale process has been put on hold, according to sources.

Proton, which is set to take a 25% stake in Renault Formula One team, is seeking to expand its relationship with the Renault-Nissan alliance into passenger cars and potentially as a strategic partner to the national auto
company. Plans are afoot to have Renault-Nissan involved in the Proton global car, named Emas, which is slotted for production by 2012.

17 Nov 2010: Public Holiday - Malaysia, Singapore & Indonesia

Tomorrow (17 Nov 2010) is public holiday for Malaysia, Singapore and Indonesia for celebrating Hari Raya Aidiladha. Market will be resume on 18 Nov 2010, Thursday. Selamat Hari Raya for all Muslims.

ECONOMIC HIGHLIGHTS 

Singapore: Singapore’s retail sales excluding motor vehicles rose at a slower pace in September after the economy contracted last quarter. The index measuring purchases excluding automobiles climbed 5.3% y-o-y after gaining a revised 6.4% in August. Including vehicles, which are sold subject to government caps, total retail sales rose 0.3%, less than the median forecast for a 1.5% increase. Adjusted for seasonal factors, overall retail sales fell 2.4% m-o-m. 

Japan: Economy grew 3.9% in third quarter  

India: Inflation slowed to nine-month low in October  

EU: Greece’s budget deficit largest in EU 

Jakarta: stocks loss 9.4 points or 0.3%, closed at 3,656.5 on Monday, led by loss in Bank Rakyat Indonesia, Bank Central Asia, and Astra International. Today, we expect JCI to be traded in range of 3,653.31 – 3,691.00.

US: Retail sales increased 1.2% in October  
US: Inventories increase 0.9% in September, more than forecast as companies stocked shelves ahead of the holiday season. sales rose 0.5 percent, led by retailers. Companies had enough goods on hand to supply 1.27 month's worth of sales at Sep's pace, the same in the prior month.

FBMKLCI: 1501.56 DJ: +9.39 CRUDE OIL: 84.87

KENCANA subsidiary Kencana Hl has secured project from Sarawak Shell for the fabrication of compression modules and tie-in modifications -worth RM275m.

TimeCom plans to buy Global Transit Communications (GTC) for RM106m, Global Transit Ltd (GTL) for RM105m and AIMS Group for RM128m. All three are profitable and are expected to enhance TdC's earnings immediately upon purchase. GTC -wholesale Internet service and backhaul provider, GTL -owns 10% in the much-coveted trans-Pacific submarine cable, Unity North Cable System. AIMS Group -owns one of the region's leading network-neutral data centres. 

P&O insurance business is believed to still be on the radar of other foreign parties despite Prudential Holdings Ltd dropping out of the acquisition talks for the local general insurer.

GPacket posted net losses of RM13.71 million in the third quarter ended Sept 30, 2010, a decline from the net loss of RM31.84 million a year ago. Revenue rose 60% to RM100.89 million from RM63.03 million. Loss per share was 2.1 sen versus eight sen. Green Packet’s total borrowings as at Sept 30 totalled RM237.01 million. Its total turnover was the nine-month period was RM277.71 million compared with RM160.99 million while loss per share was RM56.82 million compared with RM81.93 million.

Amway (Malaysia) Holdings Bhd net profit for the third quarter ended Sept 30, 2010 rose marginally to RM21.51 million from RM20.48 million a year ago due to increase in sales revenue.Amway declared a third interim single tier dividend of 9 sen net per share and special interim single tier dividend of 30 sen net per share for the financial year ending Dec 31, 2010.

Mas expects its newly launched Eastern hub in Kota Kinabalu to contribute between RM60m and RM100m to net profit by June 2011. The hub will be developed over three stages from 15 November 2010 to 3 June 2011. A total of six aircraft, two new B737-800 and four B737-400 as well as 150 pilots and 250 cabin crew will be based in Kota Kinabalu by June 2011.

Scomien  has  struck a deal with Engineering Projects (India)  Ltd  to  jointly  venture  into  monorail  projects  in fast-urbanising Indian cities and in South Asia region.

FBMKLCI: 1499.81 DJ: -90.52 CRUDE OIL: 85.73 RM: 3.067

Maybank's 1Q earnings at RM1b
Malayan Banking Bhd's earnings were RM1.028 billion in the first quarter ended Sept 30, 2010, up 16.6pct from RM881.80 million a year ago. It said on Friday, Nov 12 revenue rose to RM5 billion from RM4.56 billion. Earnings per share were 14.53 sen versus 12.46 sen.

AMMB earnings up 38.6pct to RM332.8m
AMMB Holdings Bhd's earnings rose 38.6pct to RM332.87 million in the second quarter ended Sept 30 (2QFY11), from RM240.15 million a year ago, boosted by an increase in interest income. It said on Friday, Nov 12, revenue rose 11.9pct to RM1.77 billion from RM1.584 billion. Earnings per share were 11.09 sen compared with 8.29 sen. It declared an interim dividend of six sen per share.  

BNM keeps OPR unch 2.75pct, vigilant of volatile capital flows
Bank Negara Malaysia maintained the overnight policy rate (OPR) at 2.75pct and said monetary policy would continue to remain accommodative and supportive of economic growth. However, it remained vigilant of large, volatile capital flows.

BRDB, a commercial and residential developer, is planning a RM652m joint development in Seri Kembangan, Selangor, with Country Heights Land SB. The project, with an estimated gross development profit of RM170m, would comprise 310 units of semi-detached houses and 13 units of bungalows sprawled over 192,561 sq m within the so-called Bluwater Estate. The construction for the proposed development is expected to commence in the last quarter of 2011 and completed within five years. Under the JV Bandar Raya and Country Heights Land will take up 75% and 25% stake respectively in an SPV purpose vehicle to undertake the development.   (Malaysian Reserve) 

TCHONG last Friday announced it will invest RM285m to build cars in Sabah after it received an approval letter from the International Trade and Industry Ministry for its application of a licence to manufacture and assemble luxury passenger vehicles and commercial vehicles. Tan Chong said the approval letter was on condition that the manufacturing and assembly activities would be for luxury passenger cars with 1,800cc and above and costing no less than RM150,000. The licence is for Tan Chong to conduct manufacturing of vehicles at the Kota Kinabalu Industrial Park (KKIP), Sabah, which was built to establish Sabah as the gateway to the Brunei-Indonesia-Malaysia-Philippines-East ASEAN Growth Area (BIMP-EAGA). (StarBiz) 

Kencana and its technical partner London-based Petrofac Ltd have emerged as front runners to bag a USD250m (RM780m) engineering, procurement, construction and commissioning (EPC)job at Block PM313, the Sepat oil field. The Sepat oil field is a marginal field in offshore of Terengganu under the purview of the National oil company Petroliam Nasional Bhd (Petrogas). According to industry players, Sepat has large oil reserves that have yet to be fully recovered. With the high crude oil prices and increasing difficulties in exploring new oilfields, Petronas intends to improve oil recovery in the brown fields. Apart from Kencana and Petrofac, there were two other JV companies vying for the job, namely (MMHE) together with its partner, France-based Technip SA, as well as Australian company Roc Oil forming a partnership with local player Griffin Energy Ltd. (Financial Daily)

Petronas Chemicals Group Bhd has fixed the price of its initial public offering (IPO) at RM5.04 a share for the portion reserved for retail investors and at RM5.20 apiece for shares to be sold to institutional investors. The IPO would raise RM12.8bn, of which RM9.2bn was to be accrued to parent company Petroliam Nasional Bhd (Petronas), the company said in a statement yesterday. Based on the institutional price, Petronas Chemicals’ market value will be RM41.6bn, making it one of the largest petrochemical producers in South-East Asia. (StarBiz)