FBMKLCI 1554.24 DJ+64.25 CRUDE OIL 95.57 RM 3.01

The sale of a 25% stake in RHB Capital Bhd (RHB Cap) by Abu Dhabi Commercial Bank Bhd (ADCB) at 2.25 times the book value of RHB Cap or RM10.80 per share, has set a relatively high pricing benchmark for the potential takeover of the bank by Malayan Banking Bhd (Maybank) and CIMB Group Holdings Bhd.

Muhibbah Engineering Bhd would continue to be actively traded after the sell-down on the stock following concerns that Asia Petroleum Hub (APH) -- which it undertook a project for -- faced receivership.
It saw RM152.11 million in market capitalisation wiped out on Thursday, as its shares fell 38 sen to close at RM1.52 – the lowest since mid-May. The market capitalisation was reduced from RM608.43 million to RM456.32 million. However, there could be some mild bargain hunting as some analysts viewed the selling as overdone and the worst-case scenario for Muhibbah was a write-down of the RM300 million due from APH, which would push Muhibbah into losses for FY11. APH, the developer and operator of the APH oil terminal in Johor, faced the prospects of receivership, news reports said. Muhibbah was awarded the marine piling and jetty works worth RM820 million. Cost escalation in 2008 led to funding issues for APH and the stalling of payments due to Muhibbah.

UEM Land Holdings Bhd has set an internal target for a 50% revenue growth in FY2011 and a 10% return on investment. Its managing director and CEO Datuk Wan Abdullah Wan Ibrahim said with the acquisition of SUNRISE BHD [], UEM Land was hoping to build its portfolio and surpass its competitors' revenue in the near future.

Mitrajaya has proposed to invest RM6 million cash for a 20% stake in Rawang Specialist Hospital Sdn Bhd (RSHSB). RSHSB is a private limited company incorporated in Malaysia to principally operate and manage a specialist hospital and to provide healthcare solutions under the name of Optimax Specialist Hospital (Rawang). On May 23, it awarded to Mitrajaya's unit, Pembinaan Mitrajaya Sdn Bhd, a RM46.41 million contract to build the eight-storey private hospital with 180 beds. The hospital is expected to commence operations in December 2013.

Merge Energy Bhd has secured RM38.1 million contract to undertake water treatment and associated projects in Kuantan. The contract was awarded by the East Coast Economic Region Development Council. It  involves the balancing reservoir, access road, treated water mains and associated works for the Panching water treatment.

Perusahaan Otomobil Kedua Sdn Bhd (Perodua) unveiled - the new MyVi -- an upgraded version of the best seller on Thursday night, June 16 and prices range from RM43,900 to RM57,400. The second national carmaker expects to sell about 8,500 units monthly. The price is from RM43,900 for the standard manual transmission and RM57,400 for the elegance automatic transmission on-the-road. Perodua plans to export the new MyVi units to Indonesia this month, starting with 500 cars, under the Daihatsu Sirion badge.

FBMKLCI 1552.14 DJ-61.30 CRUDE OIL 98.76 RM 2.9660

MBSB’s additional 506.42 million new ordinary shares of RM1 each issued pursuant to the rights issue with warrants will be listed on Tuesday. MBSB closed three sen lower at RM1.50 on Monday. MBSB’s 506.42 million warrants issued pursuant to the rights issue will also be listed on Tuesday.

Knusford is teaming up with Pembinaan Hamid Abd. Rahman Sdn Bhd to submit prequalification and/or tender for part of the multi-billion ringgit Mass Rapid Transit project in the Klang Valley, The portion would be the Sungai Buloh to Kajang stretch. Knusford will hold a 40% stake and  PHAR 60% in the joint venture company.

London Biscuits Bhd’s net profit fell sharply to RM804,000 in the third quarter ended March 31, 2011 from RM4.03 million a year ago and the company expected the year to be challenging. Revenue fell to RM65.10 million from RM50.92 million while earnings per share were 0.84 sen compared with 4.64 sen. “The group’s result is within management’s expectation in view of the impact of the strength of the ringgit and increase in raw material cost,” it said. For the nine-month period, net profit was RM6.22 million compared with RM11.65 million despite higher revenue at RM183.79 million versus RM152.14 million.

N2N Connect said it was acquiring an 11-storey office building in Bangsar South for RM36 million cash to be partly used as its office space, and to be let out to tenants.

The new Perodua Myvi, due to be launched on June 16, will boost passenger vehicle sales this year, according to automotive analysts. OSK Research said in a report yesterday that Perodua's revised sales forecast of 195,000 units (previously 171,750 units) this year was easily achievable due to the earlier-than-expected launch of the new Myvi. The research firm also upgraded its Malaysian automotive total industry volume (TIV) forecast for 2011 by 4% to 597,456 units, which was a year-on-year decline of 1.3% (TIV hit an all-time high of 605,156 units last year). OSK Research maintained its “sell” call, with a fair value of RM6.61 on UMW Holdings Bhd, which owns a 38% stake in Perodua. OSK Research also upgraded its call on MBM Resources Bhd, which has a 20% stake in Perodua, to “buy” with a fair value of RM3.80, and raised its earnings projection for the current financial year by 20.2%.

Main-board bound UOA Development Bhd posted a net profit of RM130mil for the first quarter ended March 31. Revenue for the period stood at RM145.7mil. The property developer which is expected to be listed tomorrow said its pre-tax profit of RM155.7mil for the three months period was achieved after spending RM21.9mil for administrative and general expenses and RM22.1mil for tax expense.

Time Engineering's shareholderes approved its proposal of a renounceable offer for sale of up to 626.18 million shares (or 24.74% stake) in TdC to Time Engineering shareholders. The offer price for the shares will be fixed by Time Engineering's board of directors at a later date to be announced, and will be priced with at least 20% discount of the five-day volume-weighted average price up to the day prior to the price-fixing date. It will not be less than 48 sen per offer share. The offer is on the basis of eight offer shares for every 10 shares held in Time Engineering.

In an unprecedented move, Sime Darby Plantation Sdn Bhd (SDP) has increased the salaries of 37,000 of its estate and mill workers throughout the country, with each of them expected to earn an extra RM200 in basic salary effective July 1st. SDP has allocated between RM120 mil and RM130mil per annum for this purpose including the increase in EPF and SOCSO contribution, said Sime Darby president and group CEO Datuk Mohd Bakke Salleh.

FBMKLCI 1508.99 DJ+29.97 CRUDE OIL 89.09 RM 3.011

Most emerging equity markets in Asia have been experiencing sell-downs in recent weeks with foreign funds shifting their money to the more matured markets even as inflation in the region becomes more of a concern. Extreme weather conditions in most parts of food-producing countries such as Russia, Latin America, Australia and China have kept food grain prices at historical high levels globally, pushing inflation levels up. And emerging markets especially those in Asia, where grains are consumed the most, have been most affected.

Favelle Favco secured RM123.20 million in contracts to supply eight cranes which would be delivered to eight buyers from early this year to 2012. The crane builder said it expected the contracts to contribute positively to the earnings and net assets for the financial year ending Dec 31, 2011 and beyond.

MBM Resources' net profit for the fourth quarter (4Q) ended Dec 31, 2010 rose 36.2% to RM28.2 million from RM20.7 million a year ago, driven by the overall strong total industry (TIV) volume in the automotive sector. Revenue for the quarter rose to RM389.88 million from RM292.46 million in 2009. Earnings per share was 11.64 sen, while net assets per share was RM4.19.  It declared a special second tax-exempt interim dividend of five sen per share totaling RM12.13 million, and a special tax-exempt dividend of three sen per share totaling RM7.28 million. For the financial year ended Dec 31, MBM's net profit surged to RM141.24 million from RM66.53 million a year earlier, on the back of revenue RM1.55 billion.

Wah Seong’s earnings fell 28.9% to RM24.76 million in the fourth quarter ended Dec 31, 2010 from RM34.84 million a year ago due to the lower number of projects and unfavourable effect of foreign exchange fluctuations. Revenue fell 12.7% to RM397.23 million from RM455.07 million while earnings per share were 3.2 sen compared with 4.5 sen. It proposed dividend of 2.5 sen per share. For the financial year ended Dec 31, 2010, the net profit fell 53.8% to RM55.98 million from RM121.32 million in FY09. Revenue fell 21.9% to RM1.523 billion from RM1.950 billion.

Daibochi declared a fourth interim dividend of 3.50 sen, tax exempt, to be paid on March 30.

SBC Corp Bhd posted net profit of RM6.81 million in the third quarter ended Dec 31, 2010 when compared with RM2.02 million a year following higher revenue from its CONSTRUCTION [] projects.

Revenue climbed 95% to RM54.80 million from RM28.03 million while earnings per share were 8.26 sen versus 2.45 sen a year ago.

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

FBMKLCI: 1513.70 DJ: -73.94 CRUDE OIL: 87.56

Khazanah Nasional has sold 6% of its shareholding in Malaysia Airports Holdings (MAHB) for RM396m. The exercise cuts Khazanah Nasional's holding in MAHB to 54%, maintaining its controlling stake. The statement did not identify the buyers of the placed out shares. HSBC and Nomura Singapore Ltd were agents of the deal too. MAHB's shares were sold for RM6 a piece, representing a 2.9% discount to the three-day volume weighted average price. (BT)

Proton offers Mitsubishi platform to widen tie-up. It is understood that the Japanese carmaker will then use the platform to build and sell cars for its export markets. While the Persona and Exora were among several models built from ground up by Proton, the national carmaker is developing a brand new car to replace the current Persona. Mitsubishi was the strategic foreign partner for Proton when the national car project was set up in the mid-1980s. (BT)

Boustead Holdings plans to sell for RM189.23m its Sabah’s Sutera estate, Taiping rubber plantation and Trong oil mill to Al-Hadharah Boustead REIT, and then lease back these assets. The move will result in a cash inflow for the group and its subsidiaries, which will be used to reduce bank borrowings by the group and potentially save RM9.5m interest expense per annum for the group. This exercise will expand the fund’s plantation assets by 3,580ha to 19,984ha with a gross asset value of more than RM1bn. (Starbiz)

MBMR earnings rose 52% to RM34.2 million from a year ago, underpinned by stronger vehicle sales. Revenue rose 30.3% to RM388.7 million on-year.