FBMKLCI 1531.63 DJ+71.60 CRUDE OIL 104.32 RM 2.994

Trading in Fotronics Corp Bhd on Bursa Malaysia will be suspended from April 7 as it has failed to submit its regularisation plan within the stipulated time.

Berjaya Corp Bhd posted a net profit of RM32.46mil in the third quarter ended Jan 31, 2011 compared with net loss of RM156.20mil a year ago on higher profit contribution from gaming, stock broking, direct selling, retail and distribution businesses.

CIMB Bank Bhd and CIMB Islamic Bank Bhd have announced an increase in their base lending rate (BLR) and base financing rate (BFR) by five basis points from 6.3% to 6.35%, effective from April 4.

Integrated Logistics Bhd expects to spend RM200mil in three years to expand its business in China and Dubai.Integrated Logistics (China) Co Ltd head of corporate finance and investment Eric Tay said the amount was for the expansion of its warehouse to 4 million sq ft from 1.8 million sq ft currently. “Of the total investment, 40% will come from loans and 60% internal funding,” he said after the company's AGM yesterday.  The company's warehouse in Dubai would be a 50:50 partnership with a local company there and was expected to contribute to group revenue next year.

Ireka Corp Bhd's wholly-owned subsidiary, Ireka Engineering & Construction Sdn Bhd (IECSB), has received a letter of award from Transmission Technology Sdn Bhd for a RM232.75mil contract. It told Bursa Malaysia that it was for architectural as well as mechanical and electrical works on the proposed offices and hotel development in Kuala Lumpur.

Tan Chong Motor Holdings Bhd has received approval from the Securities Commission to upsize its asset-backed medium term notes (MTN) programme to RM2bil from RM600mil. “The approval would enhance the group's ability to tap the capital markets for future funding needs,” it said in a statement yesterday. The group has completed four issuances and raised over RM788mil from the capital markets via Premium Commerce Bhd's MTN programme. Premium Commerce Bhd is an independent special purpose entity established to undertake a securitisation programme for the Tan Chong group.

DBE Gurney’s additional 593.33 million new shares and 200 million warrants will be listed on Thursday. The warrants were issued for free to the subscribers of the renounceable rights issue of 400 million rights shares on the basis of one free detachable warrants for every two rights shares subscribed for. The maturity date of the warrants is March 22, 2016 and the conversion price is 10 sen. The new shares of 10 sen were issued pursuant to the rights issue with warrants and capitalisation of amounts due to director and creditors settlement.

V. S. Industry has set a dividend policy of making out an annual payment of at least 40% of its net profit to shareholders as dividends, and plans to disburse payouts on a quarterly basis. The dividend policy is effective in the current financial year ending July 31, 2011 (FY11). VSI’s net profit in the second quarter ended Jan 31, 2011 surged 134.1% to RM10.1 million from RM4.4 million a year ago, due to higher revenue. The profit came mainly from the higher group sales as a result of the increased sales generated by its Malaysian and Indonesian operations.

Masterskill Education Group Bhd has recommended a final single tier dividend of 7.9 sen per 20 sen share for the financial year ended Dec 31, 2010. It said on Wednesday, March 30 the dividends would be payable on June 15. The group had on Oct 13, 2010, completed the distribution of an interim dividend of seven sen per share to the shareholders. The total of 14.9 sen per share dividend for 2010 will represent a total payout of 60% of its net profit, equivalent to RM61 million.

FBMKLCI 1511.97 DJ+67.39 CRUDE OIL 105.45 RM 3.002

US stocks closed higher Wednesday led by industrial and mining companies, as traders eyed the knock-on effects of higher metal and commodity demand and Japanese reconstruction.

Integrax Bhd co-chief executive Harun Halim Rasip has disposed of his entire equity interest in the port management company to TNB for RM106.46 million. TNB said the purchase price represented a premium of 13.5% to the five-day weighted average market price of Integrax shares up to and including March 18, of RM1.41. “TNB intends to fund the purchase consideration entirely through internally generated funds,” it said.

Hai-O’s earnings fell 65% to RM6.34 million for the third quarter ended Jan 31, 2011 from RM18 million a year ago as revenue shrank following lower sales from its multi-level marketing (MLM) division. Revenue fell to RM57.60 million from RM131.28 million a year ago due mainly due the poorer performance of the MLM division, which is its principal subsidiary.

Axiata Group Bhd has imposed a 12-month suspension on Alcatel-Lucent group (ALU) including its Malaysian operations which would bar it from any new bids for contracts, but it would continue all existing contracts. Axiata said on the suspension would include suspension of the ALU group from any invitations to submit any new tenders, entry into new contracts or continuing with any negotiations that are currently being undertaken with any group member.

FBMKLCI 1503.99 DJ-10.60 CRUDE OIL 87.61 RM 3.07

Dayang Enterprise Holdings Bhd’s (DEHB) wholly owned subsidiary Dayang Enterprise Sdn Bhd (DESB) has received a contract worth RM802mil from Petronas Carigali Sdn Bhd.

MTD Capital Bhd's shares staged a rally after a consortium of firms announced that it has raised its takeover offer for the company to RM11 per share from RM9.50 previously. The counter closed 42 sen higher at RM10.94 to become the second biggest gainer of the day. Its intra-day high of RM10.96 was also its all-time high. Year-to-date, the stock has gained more than 13%.

Contrary to wide market expectations, Multi-Purpose Holdings Bhd (MPHB)'s plan to relist its numbers forecast operator (NFO) Magnum Corp Bhd has been put on hold, as the company shifts its focus to reformatting its business structure. “There is no plan to relist Magnum for the time being,” MPHB managing director Datuk Surin Upatkoon said in reply to a StarBiz query. MPHB shares resumed trading yesterday after being suspended since Monday. The counter ended the day at RM2.67, a tad lower than its previous close of RM2.68.

Integrax  is selling the entire 70.31% stake in its Indonesian subsidiary PT Indoexchange Tbk to Equatorex Sdn Bhd, a company controlled by Integrax's chairman and joint CEO Harun Halim Rasip.

EPIC reported earnings of RM14.87 million in the fourth quarter ended Dec 31, 2011, a 55.4% increase from the RM9.56 million a year ago underpinned by an increase in port operations and oil and gas activities. Revenue rose 7.6% to RM53.31 million from RM49.54 million a year ago. Earnings per share were 8.77 sen compared with 5.65 sen a year ago. For the financial year ended Dec 31, 2010, EPIC’s earnings rose 25% to RM52.84 million from RM42.14 million while revenue climbed 28% to RM235.136 million from RM183.46 million. It has cash of RM98.58 million as at Dec 31, 2010 but its trade and other receivables were RM57.56 million.

FBMKLCI 1526.96 DJ+4.39 CRUDE OIL 85.29 RM 3.02

Taliworks Corp Bhd will seek a new partner for a RM374.7mil waste-water treatment project in Yinchuan City, China, after its original partner allegedly defaulted on its obligation. Taliworks said it had, on Tuesday, received a letter from the Yinchuan City Waste Water Treatment Co Committee indicating that both Taliworks and Beijing Puresino-Boda Environmental Engineering Co Ltd (BODA) had yet to formalise the joint-venture (JV) company, in which Taliworks would have a 70% stake, to undertake the project.

Integrax Bhd and its unit Pelabuhan Lumut Sdn Bhd (plaintiffs) have filed a legal suit against Integrax executive director Amin Halim Rasip, alleging that he had breached his fiduciary duties and demanding that he pay for damages arising from the alleged breach. The port operator told Bursa Malaysia yesterday it was also seeking an order that Amin be restrained and an injunction be granted, restraining him from acting or in any way whatsoever holding himself out as director and/or co-chief executive officer of the plaintiffs. The company is also seeking an order that Amin be restrained and an injunction be granted, restraining him from interfering in any way whatsoever in the management of Integrax and Pelabuhan Lumut.

oil and gas players after Petronas, for the first time ever, announced its decision to  develop marginal oilfields to boost Malaysia's oil production. The development of the initial four clusters will be via service contracts and not the normal production sharing contracts (PSCs). The Edge FinancialDaily reports interest in oil and gas stocks may spill over to the sector’s laggards which have yet to catch up with the rally in the broader industry and which observers say could somehow benefit when the flow of investments accelerates in the sector.

 

Benalec is acquiring two handysize bulkcarriers for US$6.8 million (RM20.75 million) to expand its fleet to transport sand for land reclamation activities. It said the acquisitions are to facilitate the expansion of Benalec group’s fleet of vessels, in particular vessels for transporting of sand for land reclamation activities.

Perisai has proposed to acquire a 51% stake in Intan Offshore Sdn Bhd for RM45.23 million via new shares. With the acquisition, Perisai Group will enhance its ability to compete in the vessel supply and chartering business while gaining access to new revenue streams around the region.

FBMKLCI 1526.43 DJ-3.33 CRUDE OIL 86.44 RM 3.03

THE stock market's main benchmark suffered its second double-digit drop in four trading days, wiping out all of its gains so far this year. The FTSE Bursa Malaysia KLCI fell 16.54 points to 1526.43 points. Yesterday's close was 0.46 per cent lower than the new year's first day close of 1533.42 points. The benchmark index closed at a record of 1574.49 points last Monday. Maybank Investment Bank Bhd's head of retail research Lee Cheng Hooi said the blue chip index could fall to as low as 1525 points. "The market is sluggish, and some funds are getting out a bit," said Lee, adding traditionally buying interest will come back after the Chinese New Year (CNY) holidays. The market will still have to breach the 1576 level to sustain a rise. Lee said the research house has a year end 1710 target.

Ann Joo Resources Bhd has entered into a share sale agreement to acquire a 38% stake in Anshin Steel Processor Sdn Bhd, at a cash consideration of RM2.10 per share worth RM11.970mil.

Berjaya Food Bhd’s admission to the stock exchange has been approved by Bursa Securities in the “trading/services” sector of the Main Market. A filing by AmInvestment Bank Bhd on behalf of Berjaya Corp Bhd’s board said the stock exchange regulator had, vide a letter dated Jan 24, approved the admission of Berjaya Food together with the listing of and quotation for the entire enlarged issued and paid-up share capital of the company of RM70.67mil comprising 141.34 million 50 sen shares.

South Korea’s Honam Petrochemical Corp has invoked Section 222 of the Capital Markets & Services Act, 2007 (CMSA) to compulsorily acquire all the remaining 7,185,762 shares of Titan Chemicals Corp Bhd for which acceptances have not been received. “To this end, a notice pursuant to Section 222(1) of the CMSA in relation to the compulsory acquisition has been sent by Honam to all the holders of the remaining offer shares,” Titan said in a note to Bursa yesterday.

Public Bank Bhd has reported a record net profit of RM846.19mil, or 24.16 sen per share, for its fourth quarter ended Dec 31, 2010.

Perusahaan Otomobil Kedua Sdn Bhd (Perodua), which has been adamant against merging with rival Proton Holdings Bhd, would have let off a sigh of relief after news broke that the Government will not force the two national car companies to merge. Minister of International Trade and Industry Datuk Seri Mustapa Mohamed said yesterday the Government will not force through a merger of both car companies and any solution or proposal needs to be agreed to by both stakeholders. “We cannot force them to make a decision as there is a long spectrum. At one end is loose cooperation and at the other, a merger, which has yet to be decided,”

Oilcorp Bhd, via its 51%-owned indirect subsidiary Oilfab Sdn Bhd, has accepted an offer from Ramunia Holdings Bhd to acquire the Pulau Indah Integrated Fabrication Yard for RM83.8mil.

Major shareholders of port operator Integrax Bhd have called for the removal of the company’s executive director Harun Halim Rasip and director Datuk Onn Hamzah.

MALAYSIAN PACIFIC INDUSTRIES Bhd (MPI) posted marginally lower earnings of RM25.29 million in the second quarter ended Dec 31, 2010 when compared with RM25.71 million a year ago. Its revenue increased 6% to RM367.59 million versus RM345.57 million.  Its earnings per share were 13.05 sen compared with 13.19 sen a year ago. MPI said the pretax profit of RM34.84 million against RM33.06 million a year ago, despite the higher revenue was mainly due to the strengthening ringgit against the US dollar.

FBMKLCI 1574.49 CRUDEOIL 90.87 RM 3.03

New stock listing

No.  Stock  Code    Stock Name     Reference Price      Lower Limit     Upper Limit

1.    5191               TAMBUN           0.70                             0.40                3.50

 

 

Tambun Indah’s  IPO consists of a public issue of 32 million new ordinary shares and an offer-for-sale of 22.1 million vendor shares at 70 sen each. BIMB Securities Research derived a fair value of 81 per share after pegging a 30% discount to its peers' three-year average price-to-earnings ratio of 9.8 times to FY11 EPS of 11.8 sen.

PLUS Expressways Bhd's board of directors, save for the interested directors, has deemed the UEM Group Bhd-Employees Provident Fund's (EPF) RM23bil takeover offer as a “confirmed offer.” It told Bursa Malaysia yesterday that the board had decided to proceed with the adjourned EGM for its non-interested shareholders to consider the disposal of its entire business and undertaking to UEM-EPF, and the proposed distribution of the cash proceeds to all entitled shareholders via a proposed special dividend and selective capital repayment.

 

The steel sector is poised for a re-rating as it will benefit from the massive construction of the mass rapid transit (MRT) system but rising material costs remains a huge risk to the sector. Hwang DBS issued a report on the sector yesterday saying all steel companies would benefit as a result of the MRT project, which is estimated to cost more than RM36bil, making it one of the largest construction projects undertaken in the country. “Construction work for the MRT, which is targeted to start in July, should spark demand momentum and improve steel prices,” HwangDBS said in the report.
Amin Halim Rasip has filed an originating summons for his brother Harun Halim Rasip to perform a settlement agreement in relation to a shareholding split in Integrax Bhd, which would result in 51.51 million Integrax shares transferred to Amin. According to the court document filed by Amin and Nor'aini Hashim this month, it is claimed that Harun and his wife Rozia Hanis Tun Hussein have breached the settlement agreement by failing or refusing to complete and effect the transfer of 51.51 million shares in Integrax held by Halim Rasip Holdings, Jurukapal Marine and/or Lekir Group to Amin and Nor'aini. It is learnt that the shareholding split based on the settlement agreement would result in Amin owning an 18% stake.

Everest Hectare Sdn Bhd acquired 50.02% stake in apparel retailer Hing Yiap Group Bhd for RM31.3mil or RM1.50 per share in cash yesterday and subsequently launched a unconditional takeover offer to buy the remaining shares it did not already own. Hing Yiap in its filing to Bursa Malaysia yesterday said Everest Hectare had acquired about 20.9 million shares of RM1.50 each in Hing Yiap via an unconditional share sale agreement entered into with Chi Kuei Yung Sdn Bhd, Chi Oi Meng, Khoo Henn Kuan and Khoo Henn Kiew.

In IOI Corp Bhd, the PLANTATION [] heavyweight had redeemed the US$440.77 million of the outstanding US$444.87 million bonds. The balance of bonds outstanding is US$4.10 million.

FBMKLCI 1551.64 DJ+20.43 CRUDE OIL 89.05 RM 3.04

Sime Darby Bhd is claiming that an indemnity agreement that was signed between unit Sime Darby Holdings Bhd and former head of the group's energy and utilities (E&U) division, Datuk Mohamad Shukri Baharom, is void. The conglomerate, which filed a civil suit last month against its former group chief executive officer, Datuk Seri Ahmad Zubir Murshid and two others (including Shukri), said in its statement of claim that it is seeking back a sum amounting to RM851,313 that was paid to Shukri under the indemnity agreement. “In consequence, the plaintiffs contend that the indemnity agreement is void, and Shukri is obliged to return the said sum of RM851,313 to Sime Holdings. According to the statement of claim, Sime Darby's board of directors had, by September 2009, become aware of the cost overruns that had taken place in four projects carried out by its E&U division, namely the Bakun Project, Qatar Petroleum Project, Maersk Oil Qatar Project and the Marine Project.

Tomei to sell KL land to Oasis. Jeweller Tomei Consolidated Bhd will dispose of six pieces of land in Kuala Lumpur to Oasis Properties Sdn Bhd for a total of RM4.6mil as part of its on-going cost optimisation and business streamlining strategy.

Integrax chairman quits. Integrax Bhd told Bursa Malaysia that its chairman Datuk Syed Tamim Ansari Syed Mohamed has resigned.  Plantations have surged in recent weeks, underpinned by the bullish crude palm oil (CPO) prices.

CPO prices hit a fresh 33-month high on Tuesday, as part of a weather-driven rally in global vegetable oil markets. Prospects of shrinking supplies come as top Asian buyers such as China need to build inventories for Lunar New Year holidays in early February, which run for about 10 days, according to Reuters.
The benchmark March 2011 CPO contract on rose 0.9% to RM3,888 per tonne, after earlier going as high as RM3,905 -- a level unseen since March 10, 2008.

FBMKLCI 1494.78 DJ -39.51 CRUDE OIL 85.76 RM 3.133

In a twist of events, two rival offers on the table in the proposed takeover of QSR Brands Bhd have been rejected. This follows Kulim (Malaysia) Bhd's announcement yesterday that it had turned down the offer by Carlyle Investment Advisors Ltd to acquire an equity interest in QSR for RM1.94 billion or RM6.70 per share. Kulim has a 57.8% stake in QSR. 

Port operator Integrax Bhd may consider selling its stake in Lumut Maritime Terminal Sdn Bhd (LMT) for a price tag of no less than RM125 million.

  

RHBCap) net profit for 3QFY10 ended Sept 30 rose 5% to RM351.4 million, underpinned by higher net interest income and fee income.  

 

Pos Malaysia’s earnings rose 44.7% to RM31.3 million in the third quarter ended Sept 30, 2010 fromRM21.63 million ago on higher operating profit, revenue, and the tariff increase effective from July 1. Revenue rose 3.5% to RM227.4 million from RM219.7 million. Earnings per share were 5.83 sen compared with four sen. The group 3Q profit from operations was RM38.1 million, higher than the RM18.3 million a year ago.

MUIIND  posted net profit of RM33.04 million in its third quarter ended Sept 30, 2010, compared with RM4.51 million a year ago. There was a reserval of impairment in an associate amounting to RM17.98 million. Revenue was 2.7% lower at RM238.45 compared with RM245.09 million a year ago, Earnings per share were 1.63 sen compared with 0.23 sen.

KLK posted a 27% increase in earnings to RM311.04 million from RM243.73 million a year ago, boosted by its plantationss sector though there was a decline in its manufacturing operations. Revenue increased by 11.9% to RM2.014 billion from RM1.799 billion while earnings per share were 29.21 sen compared with 22.89 sen. It declared dividends of 45 sen per share, an increase from 30 sen a year ago.

Three companies - Petra Energy, Carimin SB and Shapadu Corp SB - are understood to have emerged as the front runners to bag retro-fitting, hook-up and commissioning jobs for oilfields located in Peninsular and East Malaysia from Petroliam Nasional (PETRONAS), industry sources said. According to sources, the contracts are valued at RM1.2bn in total and could be evenly broken down to three parcels of RM400m between Sabah, Sarawak and Peninsular Malaysia. Petra Energy is understood to have almost secured the Sarawak portion, while Carimin is close to bagging the Sabah job. Shapadu, meanwhile, is said to be the front runner to get the retrofitting, hook-up and commissioning jobs for Peninsular Malaysia.

A study on a possible merger between the country's top two national car companies has been completed, International Trade and Industry Minister (Miti) Datuk Seri Mustapa Mohamed said. Miti is setting a date by the year-end to discuss a third-party's research findings on the possible merger between Proton Holdings and Perusahaan Otomobil Kedua SB. The study was carried out by Frost & Sullivan