FBMKLCI 1529.91 DJ+95.59 CRUDE OIL 113.57 RM2.95

KFC Holdings (M) Bhd (KFCH) will invest RM45mil to open 25 new KFC outlets nationwide this year.

AmBank (M) Bhd is issuing four new European-style cash-settled call warrants (CWs) to meet investor demand for trading opportunities and alternative investments for current market conditions over the ordinary shares of BIMB Holdings Bhd, IGB Corp Bhd, Petronas Chemicals Group Bhd (PChem) and TSH Resources Bhd.

Gateway Benefit Sdn Bhd, a wholly-owned subsidiary of Berjaya Land Bhd, had disposed 4.665 million shares in Berjaya Sport Toto Bhd for RM19.6mil.

Unisem (M) Bhd has posted a lower group net profit of RM5.4mil for the first quarter ended March 31, 2011, compared with RM41.3mil in the same period last year.

One of the factors that is being considered by Bank Negara in reviewing the application by China Construction Bank Corp (CCB) to buy into EON Capital Bhd (EON Cap) is the fact that another state-owned bank from China, the Industrial and Commercial Bank of China (ICBC), already has a banking licence in Malaysia, industry sources said. Under Malaysia's Banking and Financial Institutions Act (Bafia), no single party is supposed to own more than one banking licence.

Tanjung Offshore Bhd’s wholly-owned subsidiary, Tanjung Maintenance Services Sdn B hd, had on March 25 been awarded an RM15mil contract for the provision of valve repair and maintenance services for Murphy Sarawak Oil Co Ltd. But comments by Maybank IB Research could weigh down the share price. The research house said it expected Tanjung Offshore’s 1Q 2011 earnings to likely miss street expectations again. “Cost management strategies and operating prospects remain the key concerns. An equity cash-call could ensue should the cash situation worsen. “Tanjung Offshore will also suffer an RM8 million penalty cost for early bonds redemption. Valuations are expensive and consensus forecasts are aggressive. Nonetheless, Ekuinas’ next move remains a wild card,” it said.

EUPE expects pre-tax profit of more than RM30 million from a residential property project with a gross development value (GDV) in excess of RM130 million. EUPE unit EUPE Kemajuan Sdn.Bhd was buying 17.15 acres of land in Petaling district for RM37.35 million from Desaminium Jaya Sdn Bhd.

“The land is purchased for the purpose of residential development targeting about 150 units of terrace and semi detached homes with a GDV in excess of RM130 million and profit before tax estimated above RM30.0 million

TH PLANTATIONS BHD [] targets to increase its land bank to 50,000 hectares from 39,113 ha by 2012, a company official said. TH Plantations plans to acquire the first "substantial parcel" by the end of June and are looking at Sumatera and Kalimantan where land prices are said to be lower compared to Sabah and Sarawak. A total of RM150 million has been allocated this year to build a palm oil mill in Sarawak and the company's replanting programme. The company said revenue for FY2011 could rise 14.8% to RM420 million from RM365.97 million last year if the price of crude palm oil averages between RM3,400 and RM3,500 for 2011.

Masterskill Education Group Bhd (MEGB) is venturing into the provision of undergraduate business programmes in a tie-up with The University of Newcastle. MEGB said on Wednesday, April 27 the proposal covered the bachelor of business and bachelor of commerce programmes.

FBMKLCI 1524.05 DJ-26.11 CRUDE OIL 111.36 RM 2.9685

Bernas, which is the largest rice miller in Malaysia, has received a 10-year extension from Jan 11, 2011 to Jan 10, 2021 from the federal government. Bernas had received a letter dated April 20 from the Public Private Partnership Unit under the Prime Minister’s Department on the extension of the Bernas agreement dated Jan 12, 1996. It currently controls about 24% of the padi market and 45% of the local rice demand.

CB Industrial Product Bhd’s unit has secured a RM38.35 million contract from the Ministry of Health to supply 100 ambulances inclusive medical equipment to the ministry. Its subsidiary AVP Engineering (M) Sdn Bhd had accepted the letter of award from the Ministry of Health.

Alam Maritim Resources Bhd’s unit has entered into two charter party agreements for a total sum of RM24.75 million.

Berjaya Land Bhd’s units disposed of 22.76 million BERJAYA SPORTS TOTO BHD [] (BToto) shares for RM101.821 million or at an average selling price of RM4.47. It said on Monday, April 25 the shares were disposed of by Immediate Capital Sdn Bhd and Gateway Benefit Sdn Bhd in the open market from May 3, 2010 to April 25, 2011. “The disposals resulted in a net loss of about RM6.07 million at the BLand group level,” it said. The disposed shares represented 1.70% equity interests in BToto.

DRB-HICOM Bhd will be using three of its main businesses involving banking, cargo handling and insurance to generate value from its 32.21% stake in Pos Malaysia Bhd. Those three companies are expected to feature heavily in the execution of the business plan for Pos Malaysia which in turn will also benefit DRB-HICOM as reinvigorating Pos Malaysia would lead to the expansion of the businesses involving Bank Muamalat Malaysia Bhd, KL Airport Services Sdn Bhd (KLAS) and Uni.Asia (life and general insurance businesses). DRB-HICOM won the bid last week to buy the controlling stake in Pos Malaysia at RM3.60 per share or RM622.79mil.

China Construction Bank Corp (CCB), the country's No 2 lender, is eyeing a stake in EON Capital, and has approached the Malaysian Finance Ministry for permission to speak to EON's major shareholders, a source with direct knowledge said. “This is still at a very early stage. We've informed the Malaysian Finance Ministry,” said the source, adding that CCB had not yet received a response. The source declined to be identified because of the sensitivity of the deal.

Software provider Infortech Alliance Bhd has proposed to acquire the entire interest in Jaring Metal Industries Sdn Bhd for RM64.8mil, which will see it gaining new controlling shareholders via the issuance of Infortech shares. Infortech told Bursa Malaysia yesterday that the total purchase would be satisfied by the issuance of 462.86 million new 10 sen shares in Infortech at 14 sen each. Infortech is also proposing a renounceable restricted issue of up to 181.5 million Infortech shares together with up to 108.9 million free detachable warrants on the basis of five shares with three free warrants for every two existing Infortech shares held by the entitled shareholders of Infortech other than the vendors and the parties acting in concert (PACs) with the vendors.

Sime Darby Bhd’s unit, Sime Darby Engineering Sdn Bhd, has been awarded a RM1.15bn contract to fabricate KBB Topsides for the Kebabangan northern hub development project by Kebabangan Petroleum Operating Company Sdn Bhd. The contract will be undertaken over 29 months effective from April 22 this year, Sime Darby said in a filing to Bursa Malaysia yesterday.

KFC Holdings (Malaysia) Bhd's Vice President, KFC Division, Lim Teck Huak said the company invested more than RM1mn in advertising and promotion for the new menu which would be initially available at the 144 outlets. One hundred and forty-four KFC restaurants throughout Malaysia, including Sabah and Sarawak, will see sales increase by 10% after the introduction of its redesigned breakfast menu.

 

WCT Bhd announced a final dividend of 5sen per share which makes the total dividend declared for FYE2010 10sen per share. This final dividend will be paid on 6 June 2011.

FBMKLCI 1572.21 DJ-22.55 CRUDE OIL 89.47 RM 3.04

Hap Seng plans to raise up to RM1.46 billion from a corporate exercise which includes RM808.21 million from a private placement and another RM654.54 million from a rights issue. The move would also build its war chest to undertake acquisitions. It had proposed to place out up to 124.53 million new shares at an issue price of RM6.49 per placement share which would raise RM808.21 million. It would also undertake a renounceable rights issue of up to 448.31 million new shares together with up to 448.31 million new free detachable warrants to raise RM654.54 million.

The locations of the 35 stations of the first mass rapid transit (MRT) line from Sg Buloh to Kajang are expected to be finalised between April and May, says Land Public Transport Commission (SPAD) CEO, Mohd Nur Ismal Kamal. The line, with about 9.5km underground, will run through Sg Buloh, Kota Damansara, Kuala Lumpur, Cheras to Kajang. However, it was previously reported the alignment of the MRT may differ from what it was first proposed by MMC-Gamuda JV SB, the project delivery partner, as some highly busy hubs like Klang, Petaling Jaya and Shah Alam were not included in the initial MRT alignment.  

Guan Chong plans to raise up to RM120 million from the expected exercise price of RM2 for the 60 million free warrants. It had fixed the exercise price for the warrants at RM2, which was 9.29% or 17 sen over the theoretical ex-price after the proposed bonus issue of RM1.83 per share, based on the five-day volume weighted average price of RM2.44. Of the RM120 million, the proceeds would be used  for the day-to-day working capital requirements of the group.

KFC Holdings (Malaysia) Bhd (KFCH) plans to invest RM25 million to open 25 new outlets nationwide this year. Managing director Jamaludin Md Ali said out of the 15 of the KFC fast food restaurants will be drive-through outlets to provide more convenience to customers, he said. Currently, there were 520 KFC outlets including 40 drive-through outlets.

Johor Corp is considering selling various assets including some landbank, properties and plantation assets to partly repay its current RM3.6bn debt which is due for repayment in July next year. The state investment arm first plans to bring down the debt level of RM3.6bn to a “sustainable level” of between RM1bn and RM1.5bn following a debt restructuring exercise, its newly appointed president and chief executive Kamaruzzaman Abu Kassim said. That would mean that it needs to raise at least RM2.1bn by 2012. “About 70% (source of funding) for the RM2.1bn needed has already been identified and this includes selling some of our assets,” he said at a meeting with the media last Friday

FBMKLCI 1511.72 DJ-18.46 CRUDE OIL 91.08 RM 3.11

Speculation about Johor Corp Bhd's (JCorp) plan to divest its stakes in QSR Brands Bhd and KFC Holdings (M) Bhd was put to rest yesterday after the state investment company reiterated it has no plans to sell those prized assets. “QSR and KFC are not for sale,” JCorp president and chief executive Kamaruzzaman Abu Kassim said in a statement, adding that it did not make sense for the company to sell its “core business”.

Malaysia Airports Holdings Bhd (MAHB) has highlighted that achieving earnings before interest, tax, depreciation and amortisation of RM773.4mil; a return on equity of 10.73% and a top 5 worldwide ranking for KL International Airport as its headline key performance indicators (KPIs) in 2011.

MAHB told Bursa Malaysia yesterday that the headline KPIs were set based on its strategic plans and long-term targets that were developed under its five-year (2010-2014) business direction planning initiative.

The Employees Provident Fund (EPF) raked in RM5.75bil in investment income for the third quarter ended Sept 30, a 5.12% increase from RM5.47bil registered in the same quarter last year. In a statement yesterday, it said equities investment was the largest contributor with RM2.4bil, representing a 2.56% increase compared with RM2.34bil recorded in the previous corresponding period.

DRB-Hicom is exploring the possibility of divesting its interests in insurers Uni.Asia Life Assurance and Uni.Asia General Insurance, say sources. There has been an interest in DRB’s insurance units but the potential buyer is still studying the numbers. It has not reached the decision stage yet. DRB’s major shareholder, Tan Sri Syed Mokhtar Al Bukhary, declined to comment. DRB has a 51% stake in Uni.Asia Life and 34.73% stake in Uni.Asia General. Its current equity partner in the two units is Singapore’s UOB.

FBMKLCI 1509.79 DJ+18.24 CRUDE OIL 89.06 RM 3.10

KYM Holdings has been awarded a contract valued at RM585,911 by Vale International SA for the provision of consultancy services for the acquisition of land and development order approval. KYM said in an announcement to Bursa Malaysia yesterday that Vale had instructed it to acquire the land for the construction of a 2.5km-long jetty and for the construction of temporary site office facilities for their proposed iron ore distribution centre and pellet plant in Teluk Rubiah, Perak.

Johor Corp (JCorp) will not be selling any of its assets to repay bondholders’ RM3.6bil when the papers are due on July 31, 2012. JCorp’s newly-appointed chief executive officer Kamaruzzaman Abu Kassim said the plan was to refinance the debt.

The board of Olympia Industries Bhd has clarified that the company has expressed interest to acquire all the equity shares in Pan Malaysian Pools Sdn Bhd from Tanjong plc, a company which has been taken private by T. Ananda Krishnan.

Proton will spend £480m on Group Lotus plc to turnaround the company and the financing will be secured via internally generated and externally secured funding during the turnaround period. Proton also confirmed its unit Group Lotus plc is teaming up with Renault F1 Team Ltd for the title sponsorship of the Renault F1 Team which will take part in the Formula One World Racing Championship season beginning 2011 onwards.

Kencana Petroleum posted net profit of RM52.35 million in the first quarter ended Oct 31, 2010, up 70% from RM30.82 million a year ago and was upbeat for the current financial year on rising demand for its engineering and fabrication of oil and gas production facilities. Revenue rose 20% to RM336.96 million from RM281 million a year ago while pretax profit increased by 63% to RM68.10 million from RM41.80 million. Earnings per share were 3.16 sen compared with 3.41 sen.

The Naza brothers Sheikh Mohd Nasarudin SM Nasimuddin and Sheikh Mohd Faliq SM Nasimuddin have resigned as directors of Kumpulan Jetson. The group told Bursa Malaysia yesterday that the resignations of Nasarudin, 27, and Faliq, 25, came into effect the same day. The brothers were deemed interested by virtue of their interest in Superior Pavillion, which owns 13.12 million Jetson shares. Jetson also announced yesterday that the brothers had disposed of 4.37 million Jetson shares, or 7.22% stake, for RM1.05 each on 8 Dec. They were believed to initially have big plans for the company but lost interest after disagreements with other shareholders, stemming from unsettled financial issues within Jetson.

KFC Holdings (M) Bhd, which holds the franchise to operate KFC and Pizza Hut restaurants in Malaysia, Singapore and two cities in India from Yum! Brands Inc, has acquired Kernel Foods Pte Ltd, a Mumbai-based restaurant operator for RM83,565.

FBMKLCI 1510.06 DJ +13.32 CRUDE OIL 88.74 RM 3.113

The federal Cabinet has agreed in principle to a revision of electricity tariff but has not decided when it should take place. Energy, Green Technology and Water Minister Datuk Seri Peter Chin Fah Kui said an electricity tariff revision was on the cards but the Government had not decided when. He said there were many issues that the Government needed to address before a time could be set for the revision.

Dayang Enterprise Holdings Bhd is disposing of its 40% stake in Syarikat Borcos Shipping Sdn Bhd to AWH Equity Holdings Sdn Bhd for RM135mil.

Tan Sri Syed Mokhtar Al Bukhary is believed to be considering taking auto and banking group DRB-HICOM private, people familiar with the plan said yesterday. It is further believed that the tycoon is being advised by Maybank Investment Bank on the plan, which could cost him close to RM2bn. Sources said the offer will be comparable to DRB-HICOM's NTA value, which stood at RM2.50 as at end of September this year. As at July this year, Syed Mokhtar held a controlling 55.9% of DRB-HICOM, via privately held Etika Strategi SB.

Paramount Corp Bhd announced yesterday a special dividend of 40 sen per share, less tax at 25%, for the year ending Dec 31, 2010.

Alam Maritim Resources has seen its share price plummet on potential debt write-offs owed by Vastalux SB, a debt-ridden subsidiary of another O&G firm, Vastalux Energy. It is mulling a provision for the total debt owed by Vastalux this fiscal year and may even consider liquidating Vastalux given the remote chance of the former recovering its debt.

KFC India, a subsidiary of Kuala Lumpur-based KFC Malaysia, has been operating in India since a year, and has already opened six stores in the state of Maharashtra - four in Mumbai, one in Pune and one in Aurangabad. It has plans to increase its number of stores to 17 next year, says Hezal Ahmad, CEO of KFC
India.

Proton’s subsidiary Group Lotus plc will buy a major equity stake in the Renault F1 team, which will be renamed Lotus-Renault GP team, from the start of the 2011 Formula 1 season onwards. Group Lotus will buy a 25% stake from Luxembourg-based investment group Genii Capital. The price tag was not mentioned.

Bina Puri Holdings Bhd has won a Stormwater pipeline project worth 23.99 million riyal, or about RM19.91mil, from the Saudi Arabia’s City Council of Northern Border (Turaif), through its associate company, Bina Puri Saudi Co Ltd.

Hartalega Holdings has clarified that its factory in Ijok, Kuala Selangor, has never been ordered to close, suspended, nor issued serious warnings of any kind. In a statement issued yesterday, its executive director Kuan Mun Leong categorically denied the allegations reported to have been made by Deputy Minister at the Prime Minister's Department Datuk T. Murugiah and some residents of Taman Suria.