FBMKLCI 1542.84 CRUDE OIL 100.67 RM 2.9910

After several rounds of deferment and a long wait, Tenaga Nasional Bhd (TNB) has finally gotten the green light to implement new electricity tariff rates which will help it mitigate the effects of higher gas prices. “As a result of the gas price increase, TNB's gas bill will increase by about RM1.5bil per year. “Due to the gas price increase, TNB will have to increase the electricity tariff to cover for the additional cost,” TNB president and CEO Datuk Seri Che Khalib Mohd Nor said at a briefing yesterday. Tenaga has been allowed by the government to increase its base tariff by 2%. As a result, average tariff will increase by 7.12%; industrial consumers and commercial users will see an average hike of 8.3%, but Tenaga said there would be no increase to about 75% of households.

Boustead Heavy Industries Corp Bhd (BHIC) signed a joint-venture deal with Prokhas Managers Sdn Bhd (PMSB) yesterday to supply artillery propellants to the Malaysian Armed Forces. Under the joint venture, a new company, namely Pyrotechnical Ordnance Malaysia Sdn Bhd, will produce double base artillery propellants at a plant located on a 21-acre site in Bentong, Pahang. The plant is due to begin production in the third quarter of next year.

Analysts are confident that Sime Darby Bhd is making progress with the portfolio review and divestment of non-core assets after suffering massive losses in the oil and gas division a year ago. The share price has also moved up especially since the announcement of the non-binding memoranda of agreement to sell the Teluk Ramunia fabrication yard to Petroliam Nasional Bhd for RM296mil and the Pasir Gudang fabrication yard to Malaysia Marine and Heavy Engineering Holdings Bhd for RM399mil. The conglomerate posted a net profit of RM820.1mil for the third quarter ended March 31 after suffering a loss of RM308.6mil in the same corresponding period last year on higher contribution from plantation, motors, industrial, and energy and utilities divisions. Revenue for the period under review also rose to RM10.6bil from RM7.6bil previously.

Oldtown Bhd is pricing its issue/offer price at RM1.25 per share for its initial public offering (IPO) of 96.4 million shares of RM1 each,  The company, which owns and operates the Oldtown White Coffee chain, aims to list on Bursa Malaysia's Main Market on July 11. According to its prospectus draft, the company is offering 63.4 million new ordinary shares for application by the Malaysian public, directors, eligible employees and business associates of Oldtown and its subsidiaries.

Malayan Flour Mills Bhd (MFM) has proposed a share split of every one existing ordinary share of RM1 each in the company into two new ordinary shares of 50 sen each. Based on the issued and paid-up capital of MFM of RM107.6mil comprising 107.6 million shares as at May 27, the share split would result in an issued and paid-up capital of RM107.6mil comprising 215.3 million shares. 

CIMB Group's first quarter results came in slightly below expectations but the second half will likely be boosted by stronger capital market activities, higher domestic net interest margin (NIM) and impact from various economic transformation projects. CIMB reported net earnings of RM917mil, representing an increase of 9.3% for the first quarter (Q1) of financial year (FY) 2011.

PLUS Expressways Bhd’s net profit for its first quarter ended March 31 rose by 75.3% to RM495.1mil as it received RM364mil of compensation in accordance with the terms in the current concession agreements.

PLUS said RM364mil of compensation was included in the current quarter under review.

TIME dotCom Bhd net profit for the first quarter ended March 31 surged 21.8% to RM22.9mil from a year ago due to higher revenue and improved margins. Revenue for the quarter increased 7.7% from the same quarter last year to RM70mil as a result of higher data earnings within its wholesale and corporate segments. TIME’s data business posted a 16% growth to contribute RM51.1mil in revenue. Earnings per share for the quarter also increase to 90 sen from 74 sen a year ago.

Proton unit Group Lotus plc has won the right to use the name “Lotus” within Formula 1, and entitled to race in its historic black and gold livery. Proton said the Chancery Division of the English High Court had on last Friday, May 27 had also ruled that 1MRT was in breach of the Licence granted to them by Group Lotus to race in Formula 1 under the name Lotus Racing and had awarded Group Lotus damages in respect of that breach.

Brem Holding Bhd net profit for the fourth quarter ended March 31, 2011 surged to RM26.72 million from RM2.12 million a year earlier, due mainly to the reversal of allowance for impairment of RM21.5 million.

The company proposed a gross dividend of five sen per share for the financial year ended March 31.

FBMKLCI 1533.57 DJ+38.45 CRUDE OIL 101.73 RM 3.0190

Malaysian Airline System Bhd (MAS) posted a net loss despite recording strong revenue and traffic growth for the first quarter ended March 31, 2011 as high jet fuel price and a stronger ringgit impacted earnings. The airline posted a net loss of RM242.33mil for the quarter under review from a net profit of RM310.04mil in the previous corresponding quarter after taking into account Airbus' compensation for late delivery. Revenue was 3.26% lower at RM3.19bil as fuel cost surged by 32% or RM321mil.

CIMB Group Holdings Bhd's net profit for first quarter ended March 31 was 9.4% higher year-on-year at RM917mil as credit losses dropped sharply. The net profit was equivalent to net earnings per share of 12.3 sen from 11.86 sen a year ago. This was achieved despite a 1.3% decrease in revenue to RM2.75bil for the quarter under review. The annualised net return on equity (ROE) for the quarter was 15.7%.

Telekom Malaysia Bhd's (TM) net profit for its first quarter ended March 31 (Q1FY11) was down 32.8% to RM163.3mil from a year ago mainly due to lower unrealised exchange gains on translation of foreign currency borrowings. But the revenue for the quarter under review recorded a 1.1% growth to RM2.15bil year-on-year (y-o-y), mainly attributed to higher revenue from data, Internet and multimedia services, which when combined contributed 57% of the group's total revenue for the quarter. Earnings per share was down to 4.6 sen for the quarter from 6.9 sen a year ago.

Mah Sing Group Bhd's net profit jumped 47.6% to RM41.1mil for the first quarter ended March 31 due to progressive recognition of development revenue and contribution from its property projects in the Klang Valley, Penang and Johor Bahru. The company said in a statement yesterday that revenue for the quarter rose to RM311.7mil against RM238.3mil a year ago. Earnings per share stood at 4.95 sen. Mah Sing said projects that contributed to the group's profit and revenue included Perdana Residence 2 in Selayang, Garden Residence in Cyberjaya as well as Hijauan Residence and One Legenda in Cheras.

Proton Holdings Bhd posted a higher net profit of RM61.6mil for the fourth quarter ended March 31 compared with a net profit of RM2.64mil in the previous corresponding quarter. In a filing with Bursa Malaysia yesterday, the company attributed the positive results to higher vehicle sales for Proton and Lotus Group International Ltd. Proton vehicle sales for the fourth quarter was driven by demand for its Persona, Saga, Exora and Inspira models. However, for its full financial year ended March 31 (FY2011), Proton's net profit dropped by 30.5% year-on-year to RM152mil against a net profit of RM218.9mil previously.

Revenue for FY2011 grew to RM8.98bil compared with RM8.2bil in the previous year.

Property developer Ibraco Bhd, which has exited the Practice Note 17 (PN17) list, will embark on a new residential project in Stutong here. The company also plans to extend its property development activities to other major towns in Sarawak and venture into construction business. Chief executive officer Chew Chiaw Han said Ibraco would launch the proposed Stutong housing project, comprising 77 single-storey terraced and semi-detached houses, in July. “The project will have a gross development value (GDV) of about RM15mil,” he told StarBiz.

Property developer UEM Land Holdings Bhd's net profit and revenue for the first quarter ended March 31 soared compared with the same quarter a year ago on realisation of earnings from its own projects in Nusajaya, Johor, and from subsidiary Sunrise Bhd. The company said net profit jumped 460.34% to RM17.60mil on revenue that advanced 372.77% to RM187.68mil. 

Muhibbah secured a contract worth RM101 million in Australia for the Gorgon liquefied natural gas (LNG) jetty and marine structure project.

KUALA LUMPUR KEPONG BHD (KLK) posted a strong set of earnings in the first quarter, with net profit at RM373.85 million, up 73% than the RM215.93 million a year ago. Revenue also showed an increase, rising 24.6% to RM2.368 billion from RM1.90 billion a year ago.

Alliance Financial Group Bhd’s fourth quarter earnings rose 10% to RM84.93 million from RM77.25 million a year ago due to higher net income, lower overheads and lower impairment charge. Revenue was RM270.53 million compared with RM277.56 million, earnings per share were 5.5 sen compared with 5.0 sen.

FBMKLCI 1521.94 DJ+56.68 CRUDE OIL 110.22 RM 2.9890

Proton’s unit Lotus Cars Ltd secured £270m million (RM1.33 billion) in loans from six financial institutions over a six-year period to turn around the loss-making company. Proton group managing director Datuk Seri Syed Zainal Abidin Syed Mohamed Tahir said he expected Lotus to break even by 2014.

Press Metal proposed a rights issue to raise between RM316.7 million and RM323.7 million to finance the Samalaju aluminium smelting project in Sarawak. The rights issue involved RM323.73 million nominal value of redeemable convertible secured loan stocks (RCSLS) at 100% of its nominal value with up to 147.15 million warrants.

Johor Menteri Besar Datuk Abdul Ghani Othman has approved the proposed RM1.23 billion intra-city commuter train service in Iskandar Malaysia which would involve a100km rail network.

The project would be undertaken by Metropolitan Commuter Network Sdn Bhd - a joint venture between KUB Malaysia Bhd and Malaysia Steel Works (KL) Bhd.

FAR EAST HOLDINGS BHD [] is recommending a final single tier dividend of 20 sen for the financial year ended Dec 31, 2010.

FBMKLCI 1530.67 DJ+14.16 CRUDE OIL109.19  RM 2.9955

SP Setia Bhd is making its maiden venture into Singapore. The developer has proposed the purchase of 27 strata units in Leong Bee Court for S$65 million (RM159 million) with the plan to redevelop the property, currently comprising flats, into residential apartments.

 

Proton Holdings Bhd’s unit Lotus Cars Ltd will sign an agreement on syndicated financing with CIMB Bank, Maybank, OCBC, EON Bank, Exim Bank and Affin Bank on Friday.

SEG International Bhd is teaming up with Chung Cheong University in South Korea to train and place nurses and allied health professionals in the US, Canada and Europe. SEGi said the academic collaboration was expected to contribute an increase in earnings of approximately 4% to the group for FY ending Dec 31, 2011.

IJM Land Bhd’s additional 229.88 million new shares will be granted listing and quotation with effect from 9am on Monday, April 18. The new shares arose from the conversion of RM400 million nominal value of 10 year 3% coupon redeemable convertible unsecured loan stocks (RCULS)by IJM Corp Bhd.

NAIM HOLDINGS BHD disposed of two million shares in DAYANG ENTERPRISE HOLDINGS BHD on April 13, reducing its stake to 34.17% or 187.94 million shares.

YTL Corp is on an acquisition trail which could see it buying back its own subsidiaries, if no other attractive opportunities emerge. Managing director Tan Sri Francis Yeoh said its current balance sheet position and promise of higher dividends from its subsidiaries has put it in a position to be able to look at mergers and acquisitions efficiently. He expects subsidiaries such as YTL Power International and YTL Cement to announce some RM1bn dividends to its parent for the financial year ending 30 June, 2011. YTL Land & Development is expected to start paying dividends next year after wiping out its losses.

National carrier Malaysia Airlines (MAS) is expected to fork out some USD2.4bn (RM7.3bn) over the next four years for the purchase of 15 new A330-300 airplanes, in line with its fleet renewal exercise as well as its effort to trim down operational cost. With a list price of USD16m per aircraft, managing director and chief executive officer Tengku Datuk Seri Azmil Zahruddin said the new and improved A330-300 is expected to reduce fuel consumption and lower its operational costs by 15% through efficient management of fuel consumption and maintenance programmes, incorporating Airbus’ latest technology and design.

 

Water bondholders are not accepting any haircut in the potential Government buyback of the financially-troubled bonds, according to sources. Against the point that bondholders had, in the first place, undertaken a risky investment that had not performed, the counter argument is that bondholders had played their part in the privatisation and socio-economic development of the country. Hence, the subtle message might be that they expected the Federal Government to honour the payments in full, especially if they were to continue to support further privatisation projects, analysts said. If Pengurusan Aset Air (PAAB), the Government's water asset management company with large coffers, stepped in to buy over the bonds, there might not be a need for a haircut, they added. A haircut occurs if the face value of the bonds decreases. So far, the outstanding water bonds that are rated, excluding the ones issued by PAAB, amount to RM6.7bn out of the total issued of RM9.02bn.

 

FBMKLCI 1499.28 DJ+8.78 CRUDE OIL 102.74 RM 3.08

Asian markets retreated yesterday following gains in crude oil price as unrest in the Arab world triggered fresh protests in Iran. Nymex crude oil, which settled at US$99.63 a barrel on Tuesday, rose above US$100 per barrel early yesterday following reports of clashes between Iranian security forces and supporters of opposition leaders Mir Hossein Mousavi and Mehdi Karroubi, who were arrested last week together with their wives.

Kencana and Dialog but AirAsia and MAS could see downside pressure due to the crude oil price and following the International Air Transport Association’s (IATA) move to downgrade its airline industry outlook for 2011 to US$8.6 billion from the US$9.1 billion projected in December 2010.

Petroliam Nasional Bhd (Petronas) posted a RM10.1bil jump in net profit for its third quarter to RM23.7bil owing largely to proceeds from the listing of two subsidiaries on Bursa Malaysia but indicated high annual dividends to the Government will need to be cut in the future.

MMC Corp Bhd and Gamuda Bhd have entered into a shareholders agreement to regulate their rights and liabilities as shareholders of a company that will act as the project delivery partner for the Klang Valley Mass Rapid Transit (MRT) project.

Evermaster Group Bhd’s removal from the official list of Bursa Malaysia Securities Bhd will be deferred until further notice by Bursa Malaysia.

Transmile Group Bhd has submitted an application to Bursa Malaysia to appeal against the latter's decision to delist the company, and to seek an extension of time to submit its regularisation plan. Meanwhile, the trading of Transmile shares will be suspended effective from March 2011 but the removal of the securities from the official list of Bursa Securities on March 7 will be deferred, pending the decision on the appeal.

Property developer SP Setia Bhd has bought 108.5ha of prime freehold land in Cyberjaya’s flagship zone for RM420.4mil from Setia Haruman Sdn Bhd.

Palm-to-property conglomerate Sime Darby Bhd said yesterday it has not entered into any agreement to invest in Cameroon oil palm plantations. The company was responding to a media report which said it was considering a US$2.5bil plantation expansion deal in the African nation.

Proton Holdings Bhd's endeavour to incorporate select technologies and manufacturing expertise from Nissan Motor Co could lead to potential cost savings in capital expenditure (capex) and research and development (R&D) for the national carmaker. OSK Research said the memorandum of understanding (MoU) signed on Tuesday between Proton and Nissan to conduct feasibility studies to use the latter's platform and power train for upcoming Proton models would augur well for the national car company. “We believe that using Nissan's versatile platform and power train for Proton's upcoming global compact car will lighten the national carmaker's capex burden, given that such an endeavour can be costly (at least US$150mil to US$200mil),” OSK said in a report yesterday.

Axiata could be in focus after Celcom posted net profit after tax and minority interests of RM1.9 billion for the financial year ended Dec 31, 2010, which was an increase of 23% on-year. Its revenue rose 8.3% to RM6.85 billion. Celcom had allocated RM1 billion as capital expenditure to enhance network coverage capacity and quality of which 60% is for data and 40% for voice.

FBMKLCI 1502.24 DJ- 168.32 CRUDE OIL 100.28 RM 3.083

Guan Chong Bhd is allocating about RM120 million to build its cocoa-grinding plant in Batam, Indonesia. The plant, with an annual capacity of 120,000 tonnes, will more than double the company's grinding capacity to 200,000 tonnes from 80,000 tonnes.

Alam Maritim Resources Bhd has been awarded an extension of contract to provide one accommodation work barge for about RM70.52 million. The contract extension is for 21 months from April 12, 2011 to January 2013, with a further option to extend for an additional year. Alam Maritim said the contract sum of about RM70.52 million included costs of catering, lodging and crane hire.

Mulpha International Bhd, which reported a 10-fold increase in its net profits for its financial year ended Dec 31, 2010 (FY10), will likely be paring down its debts by at least RM300mil this year, according to executive chairman Lee Seng Huang. He says Mulpha will also be continuing with share buybacks. Its latest financial results show that Mulpha has a cash and bank balance of some RM372.6mil. In addition, Mulpha will be receiving RM327mil by end-March from the sale of its Hilton Melbourne Airport Hotel, potentially raising the company's cash levels to around RM700mil or 56% of its total debt levels of RM1.24bil.

Cypark Resources Bhd, whose shares rallied on Tuesday, could see continued trading interest as investors ride on its solid waste management prospects. Cypark, had in its fourth quarter ended Oct 30, 2010 reported net profit of RM5.38 million while for the financial year, its earnings were RM20.42 million. The company had said in December, 2010 that it expected its revenue to increase as the government emphasised on solid waste management under the National Strategic Plan for Waste Management and related regulations/ initiatives.

Proton Holdings Bhd shares have fallen over the past two trading days after reporting losses due to its involvement to restructure Lotus Group International and higher branding costs. Proton adviser and former prime minister Tun Dr Mahathir Mohamad says the national car maker has enough funds to inject into Lotus if necessary.mon Tuesday, Proton had signed a Memorandum of Understanding with Nissan Motor Co. Ltd to pave the way for feasibility studies to be conducted on specific areas of cooperation between the Parties including the potential use of Nissan's platform and powertrain.

FBMKLCI 1491.25 DJ+95.89 CRUDE OIL 96.59 RM 3.023

The price of crude oil which hit US$100 per barrel recently - its first time in more than two years - is an upside risk for Malaysia as a net exporter. Some economists are raising concerns on how high oil prices, which is up on political tensions in North Africa and the Middle East, could spark a worldwide derailment of global economic growth, eroding consumers' purchasing power as prices of goods and services increase in tandem with the commodity. RAM Holdings Bhd chief economist Dr Yeah Kim Leng said at current levels of about US$100 per barrel, global growth momentum remained intact. “I think US$150 per barrel is a level when economies and companies like airlines should start worrying,” Yeah said.

Pos Malaysia Bhd’s net profit for the fourth quarter ended Dec 31, 2010 fell 59% to RM6.08mil from RM14.93mil in the previous corresponding period due to provisions for its investment in Transmile Group Bhd and a one-off impairment provision relating to capital expenditure of RM22.3mil incurred for its postal counter system.

Shares of Proton Holdings Bhd fell 23 sen to a 14-month low of RM3.86 yesterday, its lowest since Dec 22, 2009, after the national carmaker posted losses in its third quarter ended Dec 31, 2010.

KNM Group Bhd expects the company's debt levels to fall further as unit Borsig GmbH is doing better now.

KNM chief executive officer and executive chairman Lee Swee Eng said the company's overall debt levels (at RM1bil) were coming down now as Borsig was doing well. The company's plans to use Berlin-based Borsig, which was acquired in early 2008 for RM1.7bil, to expand business was somewhat derailed following the global economic recession, which saw oil prices drop as low as US$33 a barrel from over US$147.

Maxis Bhd posted net profit of RM610 million in the fourth quarter ended Dec 31, 2010, up 21.2% from RM503 million a year ago, boosted by its non-voice segment. Its revenue rose 4.4% to RM2.31 billion from RM2.21 billion while earnings per share were 8.10 sen compared with 6.70 sen. It proposed dividend of eight sen a share to be paid on March 30. The entitlement date for the dividend payment is March 15. For the financial year ended Dec 31, 2010, it posted net profit of RM2.295 billion compared with RM1.578 billion in FY09. Maxis said its revenue for FY10 increased by 3% or RM258 million from RM8.611 billion to RM8.869 billion.

Tanjung Offshore Bhd posted net loss of RM116,000 in the fourth quarter ended Dec 31, 2010 compared with net profit of RM614,000 a year ago mainly due to the provision for impairment of trade receivables deemed difficult to be recovered and bad debt written off. Its revenue was RM139.85 million versus RM136.25 million while loss per share was 0.04 sen compared with earnings per share of 0.25 sen. When compared with the third quarter ended Sept 30, 2010, it said the group’s total revenue for the current quarter of RM139.86 million was higher than the RM137.25 million in 3Q.

Time dotCom posted consolidated profit before tax of RM26.2 million, down 16.5% from RM31.4 million a year ago mainly due to lower dividend income received in the current quarter from its available-for-sale financial asset. Excluding investment income, the group’s profit from operations was RM838,000 or 8.3% higher in 4Q than a year ago. Its net profit rose 41% to RM44.37 from RM31.38 million a year ago, aided by deferred tax assets. Its revenue rose 13.7% to RM85.25 million from RM74.97 million while earnings per share were 1.75 sen.

Alam Maritim Resources swung into the red with net loss of RM49.62 million in the fourth quarter ended Dec 31, 2010 and also losses of RM8.24 million in FY10. Revenue fell 56.6% to RM51.97 million from RM120.04 million a year ago while it posted net loss of RM49.62 million, a contrast from the net profit of RM36.41 million a year ago. It posted loss per share of 6.0 sen compared with earnings per share of 7.20 sen. The losses in 4Q “was mainly due to higher other operating expenses as a result of provision for doubtful debts, lower contribution margin from underwater services and the offshore installation and CONSTRUCTION [] (OIC) segment and lower share of profit of jointly controlled entities”.

Petra Perdana posted net loss of RM18.34 million in the fourth quarter ended Dec 31, 2010 from net profit of RM4.05 million a year ago due to the increase in lease rental and lower charter rates. It said its revenue fell 36.6% to RM75.69 million from RM119.42 million a year ago. It recorded loss per share of 4.43 sen compared with 1.36 sen.

FBMKLCI 1489.27 DJ+61.95 CRUDE OIL 99.55 RM 3.024

Bina Puri Holdings Bhd's subsidiary, Bina Puri (B) Sdn Bhd has secured a total of RM1.1bil worth of projects in Brunei. Bina Puri (B) Sdn Bhd chairman Datuk Ali Abdullah in a Q&A session in Kuala Belait, Brunei on Friday said the company had an unbilled portion totalling RM265mil until 2013. He said it planned to secure another RM600mil worth of projects in the Sultanate this year.

TM proposed a capital distribution of about RM1.037 billion or 29 sen for each share held. TM said the proposed capital distribution will be funded through its existing cash balances, which stands at RM3.488 billion as at Dec 31, 2010. TM also announced its earnings rose 135%to RM400.63 million in the fourth quarter ended Dec 31, 2010 from RM170.25 million a year ago. Revenue was marginally higher by2.1% at RM2.32 billion from RM2.27 billion. Earnings per share were 11.2 sen compared with 4.8 sen. It proposed a final dividend of 13.1 sen per share. For FY10, TM’s earnings surged 87.6% to RM1.20 billion from RM643.02 million. Its revenue rose 2.1% to RM8.79 billion from RM8.61 billion.

CIMB Group posted a record net profit of RM3.52 billion in the financial year ended Dec 31, 2010. For the fourth quarter, earnings were RM877.62 million, boosted by its Indonesian operations. The 4Q net profit was 9.3% higher from the RM802.89 million a year ago. Revenue rose 16% to RM3.168 billion from RM2.731 billion. Earnings per share were 11.83 sen compared with 11.37 sen.

MAS posted net profit of RM225.92 million in the fourth quarter ended Dec 31, 2010, down 64.7% from RM640.12 million a year ago, on lower derivative gains and higher finance costs. Its managing director and chief executive officer Tengku Datuk Seri Azmil Zahruddin was quoted saying MAs had operationally, done well in the quarter where traffic volumes rose 10% and yields were up 5%. However, it was also weighed down by higher cost of fuel despite that it carried more passengers. Its fuel bill was 13% higher at RM1.2 billion in 4Q compared witrh RM1.06 billion due to higher fuel prices and consumption. Its revenue rose 8.2% to RM3.67 billion from RM3.39 billion a year ago. Earnings per share were 6.76 sen compared with 31.17 sen.

Proton swung into the red with net loss of RM60.1 million in the third quarter ended Dec 31, 2010 compared to net profit of RM79.68 million a year ago, due mainly to higher branding costs as well as the restructuring expenses incurred by Lotus Group International Ltd. Revenue for the quarter fell by 8.96% to RM1.83 billion from RM2.01 billion last year. Loss per share was 10.90 sen compared to earnings per share 14.50 sen previously. Net assets per share was RM9.73. For the nine months ended Dec 31, 2010 Proton’s net profit fell 58.1% to RM90.5 million from RM216.29 million, although revenue rose to RM6.36 billion from RM5.97 billion. Proton said as part of the transformation plans to turn around LGIL, it had started investing in rationalisation of dealers network, and branding activities to deliver the five-year business plans. Proton also said that during 3Q, it had experienced lower domestic sales volume, as well as increased promotional and marketing spending by a principal subsidiary.

UEM Land Bhd recorded a 37.3% increase in its earnings to RM135.36 million in the fourth quarter ended Dec 31, 2010, boosted by higher revenue and higher margin achieved for one-off transactions from strategic land sales.

AZRB posted net loss of RM83.06 million in the fourth quarter ended Dec 31, 2010 compared with net profit of RM5.13 million a year ago following the termination of the Alfaisal University Campus project in Riyadh, Saudi Arabia. Revenue shrank to RM52.62 million compared with RM105.56 million a year ago. Loss per share was 30.03 sen compared with earnings per share of 1.86 sen. For the financial year ended Dec 31, 2010 its net loss was RM61.28 million compared with net profit of RM20.76 million in FY09. Its revenue was RM431.34 million compared with RM459.40 million.

Faber Group saw its net profit shrink to RM2.91 million in the fourth quarter ended Dec 31, 2010 from RM42.57 million a year ago. Revenue declined to RM203.95 million from RM303.93 million. Earnings per share were 0.8 sen only compared with 11.73 sen. It proposed dividend of eight sen per share compared with six sen. For the financial year ended Dec 31, 2010 net profit was RM78.78 million compared with RM82.68 million in FY09.

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 1563.52 DJ-37.31 CRUDE OIL 89.37 RM 3.04

Jelas Unggul Sdn Bhd has failed to meet the deadline for placing the RM50mil deposit required by PLUS Expressways Bhd in its bid to undertake the latter's businesses, effectively leaving only one formal offer, that is by UEM Group Bhd (UEM) and the Employees Provident Fund (EPF), on the table. Following Jelas Unggul's failure to pay the deposit, the only formal offer left on the table is a joint offer by UEM and EPF at RM4.60 per share which works out to RM23bil made on Oct 15.

Oil and gas firm SAAG Consolidated (M) saw its share price soar 28.5% amidst news its unit has secured a RM239.5m contract to design and build a 40km train tramway in Melaka. The company announced yesterday to Bursa Malaysia that its unit, OGS Asiapac Ltd, has secured a US$75m (RM239.5m) design, engineering, procurement, construction and commissioning (EPCC) contract from Mrails Tram (Melaka) SB on 23Dec.

Maybank Investment Bank Bhd and SapuraCrest Petroleum Bhd, via its wholly-owned subsidiary Aurabayu Sdn Bhd, have completed the signing of Aurabayu's syndicated Islamic financing facilities of up to RM750mil comprising ringgit Malaysia and US dollar denominated tranches. Maybank Investment acted as the mandated lead arranger and bookrunner. “The syndication received strong demand from both domestic and international banks, and closed with a total of six participating financiers,” the bank said in a statement yesterday.

Sapura Crest Petroleum and Kencana Petroleum are in the running to bag major oil and gas contracts for the development of marginal oil fields, expected to be announced by Prime Minister Datuk Seri Najib Razak at thebriefing on the progress of Economic Transformation Programme (ETP) today.

Ancom Logistic Bhd will resume trading from 9am  following the completion of its regularisation plan. The company's additional 209.50 million new shares issued following the acquisition of the entire stake in Synergy Translinik Sdn Bhd would be listed on Tuesday.

Transmile is selling four of its aircraft to Federal Express Corporation for US$68 million (RM208.8 million) which would enable it to reduce its debts by 39% to about RM320.1 million.The company said it had has signed a sale and purchase agreement with FedEx to sell four MD-11F aircraft for US$17 million (RM52.2 million) each to be satisfied entirely in cash.

Kumpulan Perangsang Selangor (KPS) has received the conditional offer by Menteri Besar Selangor Inc (MBI) to acquire all the voting shares in Konsortium Abass SB (Abass) and Syarikat Pengeluar Air Sungai Selangor SB (Splash) for RM9.39 per share and RM5.95 per share. Abass is 100%-owned by Titian Modal SB, which in turn is 55%-owned by KPS, while Splash is 30%-owned by KPS, with the remainder owned by Gamuda (40%)
and TSWA (30%).

Malaysian Resources Corp Bhd (MRCB) and Ekovest said they have not received any letter of award yet from the Government for a portion of the clean-up job for Klang River. Both companies said they will make the appropriate and timely announcements to Bursa Malaysia, with MRCB adding that the company constantly seeks new opportunities.

Proton Holdings has not ruled out the possibility that it is in talks with Indian automobile manufacturer Hindustan Motors to assemble its vehicles for the Indian market. “We are in talks with several parties in India. Right now, it's still too early to comment,” group managing director Datuk Syed Zainal Abidin Syed Mohamed Tahir told StarBiz yesterday. He was responding to a report by The Times of India that Proton was close to tying up with Hindustan Motors for a contract manufacturing agreement to assemble its cars for the Indian market. When asked if Hindustan Motors was one of the parties that Proton was in talks with, Syed Zainal said: “I think that can be implied.” Hindustan Motors is known for its Ambassador car that is widely used as a taxi and government limousine.

FBMKLCI 1514.48 DJ+14.00 CRUDE OIL 91.51 RM 3.09

The independent directors of PLUS Expressways Bhd (PLUS) extended the period for new offers to buy the group’s business to Jan 10, 2011 from the earlier announced deadline of 5pm yesterday.

Sime Darby Bhd has filed a civil suit against its former chief Datuk Seri Ahmad Zubir Murshid and four other former senior personnel for restitution in the sum of at least RM338mil plus general and aggravated damages and other relief. in relation to the Qatar Petroleum Project (QP), the Maersk Oil Qatar Project (MOQ Project) and the project relating to the CONSTRUCTION [] of marine vessels known as the Marine Project.

Axiata Group Bhd has sold its entire 18.9% stake in Thai telecommunications group Samart Corp pcl for US$34.8mil (RM108.4mil) cash to the latter’s existing shareholder and founder, the Vilailuck family.

UEM Land and UMLand are to jointly develop the second mixed development project in Puteri Harbour with an estimated gross development value of RM670 million, and gross development profit of RM160 million. UEM Land, the master developer of Nusajaya, on Thursday signed a sale and purchase agreement (SPA) valued at RM49.6 million with Nusajaya Consolidated Sdn Bhd (NCSB), a 50:50 joint venture company of UEM Land and UMLand to acquire the parcel of land, Parcel Commercial South 3 (Parcel CS3) at Puteri Harbour.

Rubber glove manufacturer Adventa hit limit up yesterday on speculation that it could be a potential acquisition target by a US healthcare firm for the upstream of the integration of its healthcare business. It was also rumored earlier that the US firm had previously been preliminary talks with Top Glove but had decided Top Glove was too big a manufacturer which would be too expensive.  

Proton Holdings plans to produce a two-seater sports car in two years. Proton corporate planning general manager Badrulhisham Mohd Ghazali said the vehicle would not be a hatch-back type like Satria Neo but would look like the legendary Lotus.

Berjaya Sports Toto (BjToto) has had preliminary discussions internally on a possible corporate exercise which may result in the entry of a strategic investor, it told Bursa Malaysia yesterday. It said that while there had been initial contact with several potential strategic investors, no negotiation had been conducted with any strategic investor at this juncture, as internal discussions and planning were still ongoing.