FBMKLCI 1505.33 DJ-41.55 CRUDE OIL 87.87 RM 3.087

IGB Corp Bhd posted RM53.09 million in net profit for the fourth quarter ended Dec 31, 2010 compared with RM31.14 million a year ago while revenue was RM215 million compared with RM166.31 million. For FY10, the earnings rose to RM174.32 million from RM158.98 million while revenue was also higher at RM720 million versus RM642.44 million. IGB Corp Bhd's move to dispose of Mid Valley City Gardens Sdn Bhd (MVCG) to its 75%-owned KrisAssets Holdings Bhd is not entirely a surprise move as IGB has made its intention known for a while.

MPHB has temporarily shelved its preliminary plans to relist Magnum Holdings Bhd after making a RM1.66 billion offer to buy the 49% stake in the latter. It said the proposal has been on hold for the time being. Credit Suisse Research said in a recent report the transaction (if successful) would be earnings accretive for MPHB as it would control 100% of Magnum, compared to 51% currently. “According to reported 9M10 results of MPHB, its gaming division (Magnum) generated pre-tax profits of RM275 million compared to RM185 million in 9MFY09, an increase of 49% on-year. Annualising this suggests full-year pre-tax profits of RM360 million and net profits of RM270 million, implying a 2010 P/E of 12.4 times. If Magnum grows in line with the Malaysian economy, which is in line with our assumption for BToto, net profits could be as much as RM284 million in FY11E,” it said. Credit Suisse said the deal values Magnum at 12.4 times 2010 PE and 11.8 times 2011E PE, compared to BToto's calendarised 2011E PE of 17.3 times.

Ramunia, a recent filing showed Ramunia Energy & Marine Corp Sdn Bhd disposing of eight million shares on Feb 9 in a direct deal, reducing its direct stake to 69.62 million shares or 10.5%.

Supermax Corp Bhd saw its earnings decline by 24.8% from RM43.54 million to RM32.72 million in the fourth quarter ended Dec 31, 2010 due to the continuous high latex prices and unfavourable exchange rates. Its revenue rose 18.4% from RM196.42 million to RM232.67 million. Its earnings per share were 9.62 sen versus 16.22 sen

The Malaysian Rubber Board (MRB) expects the natural rubber (NR) market to continue to chart new highs, at least in the first half of this year, on continued strong demand from China and India as well as declining output from major rubber-producing countries. On Monday, tyre-grade SMR 20 posted a new high of RM17.27 per kg while latex-in-bulk hit RM10.66 per kg. Director-general Datuk Dr Salmiah Ahmad told StarBiz that the challenge for 2011 would still be tackling a consumption-exceeding-supply situation. This is followed by the still sluggish US economy, continuing worries over sovereign risk in the euro-area and uncertainty over the Chinese government's measures to cool inflation and the economy. Export earnings from the rubber sector continued to expand by 34.8% to RM33.7bil in 2010 from RM25bil in 2009, thanks to the favourable economic growth primarily driven by the emerging and developing economies. Of the total value exported, RM12.3bil was contributed by the export of rubber products while raw rubber, other rubbers and heveawood products provided RM9.5bil, RM4.3bil and RM7.6bil respectively. “The rubber sector in fact contributed about 5% to the country's export earnings,” Salmiah said. “The contribution of the industry is much higher if we consider its spin-offs and multiplier effects on the Malaysian economy.