FBMKLCI 1556.19 DJ-178.84 CRUDE OIL 95.80 RM 2.9970

Tenaga Nasional Bhd (TNB) has bought more than 200,000 tonnes of fuel oil, for delivery between April and August, in addition to buying electricity from Singapore utility PowerSeraya, industry sources said yesterday. The fuel oil volumes were the largest TNB has purchased in at least five years, traders said, and were linked to natural gas supply disruptions that resulted from the maintenance shutdown of gas production platforms owned by state oil company Petronas. The first 15,000 tonnes is for Aug 1–3 delivery to the Sultan Iskandar Power Station in Pasir Gudang. Two more lots of 20,000 and 30,000 tonnes are for delivery to Kapar in Selangor in August

Integrated steel contractor Eversendai Corp Bhd plans to double its order book this year to RM3bil, on expectations of new projects in the United Arab Emirates (UAE), Qatar, Saudi Arabia and India.  Group managing director Datuk A.K. Nathan said the group was already in serious negotiations for some of the jobs related to infrastucture, power plants and high rise buildings. “We are pursuing quite a fair amount of jobs this year and I think we should not have any problem to secure about RM1bil to RM1.5bil worth of new jobs based on our good track record all this while,” he told reporters yesterday at a media briefing after the official launch of the group's initial public offering (IPO) prospectus.

Alam Maritim Resources Bhd is bidding for RM400mil to RM500mil worth of contracts in offshore installation and construction (OIC) as well as offshore support vessel (OSV) services sector, said managing director and chief executive officer Azmi Ahmad. However, Azmi said the success rate was quite difficult to predict under the prevailing market environment although the company's historical success rate was at 10% to 22%.

Gamuda Bhd and MMC Corp Bhd have entered into a joint venture (JV) for the pre-qualifying and tendering works in relation to the underground work package for the Klang Valley Mass Rapid Transit project. In separate announcements to Bursa Malaysia yesterday, both companies said they would each have a 50% stake in the JV. “The breakdown of the total capital, investment outlay and the eventual issued and paid-up capital of the JV will be according to the proportion of interest of each party and could only be determined when the JV is successfully awarded the underground work package of the project,” they said.

Both companies said they planned to finance their respective portions of investments via their own funds and/or borrowings.

HPI Resources Bhd has received a takeover offer from Japan's Oji Paper Co Ltd to acquire all of the former's 58.528 million shares for RM257.52mil or RM4.40 per share. In a filing with Bursa Malaysia yesterday, the corrugated packaging manufacturer said it had received the notice of the conditional take-over offer from RHB Investment Bank on behalf of Oji Paper's wholly-owned subsidiary, Oji Paper Asia Sdn Bhd. “The board has deliberated on the offer and does not intend to seek an alternate person to make a take-over for the offer shares,” the company said. The offer price of RM4.40 represents a premium of 47 sen or 12% over its last traded price of RM3.93.

Trading of shares in ACE Market-listed Ecofuture Bhd will be suspended from June 23 as it failed to appoint a replacement sponsor by designated June 10 deadline. The Guidance Note 3 company could also potentially be delisted on June 27 unless an appeal is submitted to Bursa Malaysia by June 22. Ecofuture was unable to appoint a replacement sponsor within three months after its then sponsor ECM Libra Investment Bank Bhd tendered its resignation on March 10.

Equine Capital, which had fallen from the radar screen in recent years, is trying to make a company through its property venture. It is launching a mixed commercial and residential freehold development project -- da:mén -- or “Great Door) in USJ, Subang Jaya which is near the Summit shopping mall and hotel. It promises to offer a distinctively unique retail and dining experience with lifestyle pleasures for the urbanites. The company has also returned to the black in the financial year ended March 31, 2011. In the fourth quarter ended March 31, it reported net profit of RM2.25 million compared with net loss of RM25.57 million a year ago. For the 12-months, its net profit was RM6.37 million compared with net loss of RM36.43 million a year ago. However, its cashflow was enhanced following proceeds from disposal of investment property totaling for RM28 million. Its cash and cash equivalents at end of the financial year was only RM6.4 million

Unisem expects the current financial year ending Dec 31, 2011 to be lacklustre due to tough economic environment in major markets. Group managing director John Chia said Unisem’s financial results in FY 2011 was unlikely to be better than the previous year's numbers due to a tougher economic environment in the US, Europe, Japan and China, apart from the weakening of the US dollar. "Our capital expenditure this year will be less than FY10 capex of some RM380 million" Chia said at Unisem's shareholders meeting.

FBMKLCI 1551.10 DJ-21.87 CRUDE OIL101.42 RM2.964

Petronas reported net profit attributable to shareholders of US$17.46 billion in the financial year ended March 31, 2011 (FY11), which was a 50% increase from the US$11.64 billion in FY10.Revenue increased to US$76.82 billion, up 26.1% from US$60.92 billion. President and CEO  Datuk Shamsul Azhar Abbas said Petronas will be spending RM300 billion in capital expenditure for the next five years, this was an upward revision from the RM250 billion mentioned a few months ago. For the fourth quarter, its earnings increased 49.8% to US$3.49 billion from US$2.33 billion the year before on the back of higher realised prices for petroleum products, crude oil and condensates, as well as other energy commodities.  Its revenue increased 22.8% to US$21.45 billion from US$17.47 billion.

Latexx Partners  accepted a lower offer of RM1.25 billion from the YTY Group of companies in a proposed merger instead of RM1.365 billion earlier. The glove maker said 30% of the purchase consideration or RM375 million would be in cash. The balance of RM875 million would be in the form of 350 million new shares at an issue price of RM2.50 per share.

MAA Holdings has obtained the Minister of Finance’s (MoF) approval to dispose of its 100% stake in Malaysian Assurance Alliance Bhd (MAAB) for RM344 million to Zurich Insurance Company Ltd.

Tenaga Nasional Bhd (TNB) is buying power from Singapore-based PowerSeraya Ltd, a unit of YTL Power International Bhd, as a shutdown of Petroliam Nasional Bhd-owned gas production platforms for maintenance work made worse a dwindling gas supply situation. Chief executive officer Datuk Seri Che Khalib Mohd Noh said in a reply to a StarBiz query that the purchase was made to ensure supply security. “We're buying 180MW only, which represents 1.5% of total demand,” Che Khalib said. The report said the purchase was made following an approach by TNB in April to Singapore's Energy Market Authority and the generating companies for electricity supply needed to tide over capacity shortages “for a few months”. This was caused by natural gas feedstock shortages faced by TNB's power stations due to the maintenance shutdowns, which could further reduce by 30% in the May to June period.

The “very substantial transaction” that United U-Li Corp Bhd (Ulicorp) is expected to announce tomorrow is likely to be the signing of a deal with a foreign party. The management has remained tight-lipped about the details, but observers believe that the agreement will be for a major joint venture. In addition, sources close to the company have ruled out the possibility of the company being taken private. The proposed joint venture is primarily to open doors for business expansion, and not so much about funding, because the company's balance sheet is fairly sturdy.”

UOA Development Bhd closed at RM2.59, one sen lower than its reference price of RM2.60 per share, after the stock made its debut on the Main Market of Bursa Malaysia yesterday.chief operating officer (development division) David Khor said UOA would work towards integrating more green building components in its commercial development. On its recent acquisition of a RM50mil land in Sri Petaling, Khor said the company planned to build high-end condominiums there but the details had yet to be finalised. “The company has about RM8.6bil worth of properties to be launched over the next seven to 10 years,” he said. Khor said about 70% of the properties developed by UOA were for commercial purposes while the rest were residentials. “We hope the ratio will change in two years, with residential projects contributing more (to the volume),” he said.

With the emergence of Malaysia’s pilgrim fund board Lembaga Tabung Haji (LTH) as one of major shareholders of Faber Group Bhd, chances of the latter securing renewal of crucial contracts and new projects, especially in the local and the United Arab Emirates (UAE) markets, will seem brighter now. According to analysts, investors over the past few months have been particularly concerned about the uncertainty of Faber’s 15-year concession in providing health support services to government hospitals in Malaysia being renewed. “But with LTH backing now, the prospects of the concession being renewed have certainly improved, and this would certainly enhance investor confidence in the integrated facilities management and property solutions company,” MIDF Amanah Investment Bank Bhd analyst Belford Chang told StarBiz.

FBMKLCI 1558.29 DJ+128.21 CRUDE OIL102.85 RM 2.9735

the biggest takeover battle in Malaysia's corporate history, banking heavyweights Malayan Banking Bhd and CIMB Group Holdings Bhd have declared their interest to wrest control of RHB Capital Bhd, which could cost over RM20bil. This development confirmed heated speculation in recent weeks that the country's largest and second largest banks, Maybank and CIMB respectively, were vying to take over RHB Cap, which is the fifth largest banking group. Sources said due to the rife market talk and “leaks”, Maybank and CIMB were directed by the central bank to disclose their interest to bid for RHB Cap to curb further speculation. Alongside this major takeover bid, is the sale of Abu Dhabi Commercial Bank's (ADCB) 25% stake in RHB Cap.

Investor sentiment towards Tenaga Nasional Bhd (TNB)'s stock immediately turned positive, following Monday's announcement of a long-awaited power tariff hike, as evident in the rise of the company's share price yesterday. The counter gained 59 sen, or 9%, to close at RM7.11 yesterday. It also topped the list of most actively traded stock on Bursa Malaysia, with 89 million shares changing hands. TA Research in its report explained that the impact on TNB's FY11 earnings would slightly be negative as the higher tariff would only have two months' impact on revenue, that is, for July and August, since June bill would still be reflecting usage in May, in which the previous tariff still applied. The higher gas price, on the other hand, will have three months' impact, that is between June and August. In addition, the revised tariff was still based on coal price of US$85 per tonne, and Tenaga still had to absorb the differential to actual market rate of around US$120 per tonne.

Hydropower from the 2,400-megawatt Bakun Dam project is likely to be sold, on an escalating basis, at 6.25 sen per kilowatt (KwH) to Sarawak Energy Bhd, the state utility arm. Sources told StarBiz this represented the cheapest tariff in Asian history but would be escalating at 1.5% per annum for 30 years. “The tariff is expected to be sufficient to pay off all Federal Government debts in 15 years,'' said a source, adding that in total, the valuation came close to RM8bil. The power purchase agreement (PPA) signing between the Federal and Sarawak state governments is expected to take place today.

Maxis Bhd saw its first quarter net profit decline slightly by some 2% to RM539mil compared with RM552mil made a year ago due to higher borrowing costs. For the three-months ended March 31, Maxis made a revenue of RM2.13bil, or less by 1%, compared with RM2.15bil made a year ago. Revenue declined due to lower voice, interconnect and hubbing revenue. the company said the drop in interconnect revenue was due to reduction in mobile and fixed termination rates since July last year. Meanwhile, the decline in hubbing revenue was in line with the planned scale down in its hubbing business. Maxis declared a first interim single-tier tax exempt dividend of 8 sen per share in respect of the financial year ending Dec 31, 2011, to be paid on June 30, 2011.

Malaysia Airports Holdings Bhd (MAHB) recorded a 20% jump in net profit to RM88mil for the first quarter ended March 31, led by strong demand for air travel. This was despite uncertainties in the aviation sector due to political tensions in the Middle East and earthquake and tsunami in Japan. Revenue rose 22%, or RM118mil, to RM610mil from RM498mil a year ago. However, the airport operator's earnings before interest, tax, depreciation and amortisation (EBITDA) was marginally lower at RM189mil from RM190mil a year earlier.

Axiata Group Bhd reported a 40.5% year-on-year drop in net profit to RM548.4mil for the first quarter ended March 31. The lower net profit was attributed mainly to a 97.7% year-on-year dip in the group’s other operating income to RM7.5mil in the quarter under review. This was because there was a one-off gain from the disposal of shares in Indonesian unit PT XL Axiata Tbk of RM307.5mil recorded in the same period last year.

MMC CORPORATION BHD []’s net profit for the first quarter ended March 31, 2011 rose 29.5% to RM43.04 million from RM33.23 million a year earlier, due mainly to higher contributions from most of its divisions. Revenue for the quarter increased to RM2.23 billion from RM2.06 billion in 2010. Earnings per share was 1.41 sen while net assets per share was RM2.19.

Ajinomoto (Malaysia) Bhd net profit for the fourth quarter ended March 31, 2011 rose to RM5.39 million from RM1.48 million a year earlier, due mainly to lower sales and marketing expenses. Ajinomoto proposed dividend of 20 sen per share in respect of the FY ended Mrch 31, 2011 comprising a first and final gross dividend of nine sen; a nine sen tax-exempt dividend as well as special gross dividend of two sen per share. For the financial year ended March 31, Ajinomoto’s net profit rose to RM25.73 million from RM23.94 million, on the back of revenue RM316.17 million.

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 1535.30 DJ+72.35 CRUDE OIL 112.43 RM 2.9340

Tenaga Nasional Bhd (TNB) has jumped 159 spots to rank as the 550th biggest company in the world, according to this year’s list of Forbes Global 2000. Of the 20 Malaysian companies on the list, TNB was placed third with sales of US$9.6bil (RM28.4bil), assets of US$23.6bil (RM70bil) and market value of US$11.1bil (RM32.9bil).

The suit by Primus Pacific Partners Ltd's Malaysian unit against certain shareholders and directors of EON Capital Bhd (EON Cap) over the proposed sale of the latter to Hong Leong Bank Bhd (HLB) has been dismissed with costs. In his 100-page decision which took about one-and-a-half hours to deliver, Judicial Commissioner Varghese George Varughese held that petitioner Primus (M) Sdn Bhd had failed to prove the so-called complaints that formed the foundation of the petition against nine board members of EON Cap and three entities controlled by Rin Kei Mei and Tan Sri Tiong Hiew King, who are the shareholders in the banking group.

Sabah-based plywood, veneer and laminated veneer lumber (LVL) manufacturer Focus Lumber Bhd, which made its debut on the Main Market of Bursa Malaysia yesterday, was the most actively traded stock and closed with a 97% premium at RM1.18.

Transmile Group Bhd told Bursa Malaysia yesterday that it had to change the way its accounts were prepared for the quarter ended Dec 31 last year due to a material deviation of more than 10% of its financial results. It said that its unaudited financial results released on Feb 22 was prepared on a going-concern basis as it had been optimistic that the lenders would support its debt-restructuring scheme. However, after a dialogue, “the lenders were still uncompromising on their demands for full repayment and disagreed to waive their rights to the corporate guarantee given by Trasmile to the lenders.”

SEGi net profit for the first quarter ended March 31, 2011 surged 90.5% to RM18.12 million from RM9.51 million a year ago due to the increase in student enrolments at its institutions. Revenue for the quarter rose to RM68.47 million from RM52.29 million in 2010. Earnings per share were 7.35 sen, while net asset per share was 77.2 sen.

Malaysia Airports Holdings Bhd (MAHB) is revising its passenger traffic volume target to 72 million for 2014, from 60 million earlier under its five-year plan. Managing director Tan Sri Bashir Ahmad Abdul Majid said passenger growth at KLIA has been very promising and it should be able to hit its initial 60 million passengers target by 2011. “The growth so far as been good as indicated by the traffic in the first three months of the year. We are definitely on track,” he said. Under the five-year plan, MAHB is also targeting to achieve an earnings before interest, tax, depreciation and amortisation and returns on equity of RM1 billion and 10% respectively under its five-year plan that expires in 2014.

 

FBMKLCI 1526.33 DJ+52.45 CRUDE OIL112.33 RM 2.9805

Shares of information technology company Tricubes Bhd advanced by 15.5 sen, or 103%, to 31.5 sen yesterday, the highest in more than six years, on news that it will be collaborating with Microsoft to develop the 1Malaysia email project.

The RM1.1bil China-based company that has been approved to list by the Securities Commission (SC) is China Stationery Ltd from Putian, Fujian Province, according to reliable sources. This listing is significantly bigger than the other China companies listed in Malaysia

TNB’s earnings fell 36.9% to RM630.30 million in the second quarter ended Feb 28, 2011 from RM1 billion a year ago as it was impacted by higher coal prices. Forecasting a challenging year ahead, TNB said its revenue was a marginal 1.5% higher at RM7.503 billion from RM7.389 billion a year ago. Its earnings per share were 14.2 sen compared with 23.05 sen while it declared a lower dividend of 4.5 sen per share.

British American Tobacco’s net profit for the first quarter ended March 31, 2011 fell 6.95% to RM178.56 million from RM191.89 million a year earlier, on the back of lower volumes and a decline in profit from operations. Revenue for the quarter declined to RM992.15 million from RM1.02 billion in 2010. Earnings per share was 62.50 sen while net assets per share was RM1.72. BAT declared a first interim dividend of 60 sen per share, tax exempt under the single-tier tax system amounting to RM171.32 million for the financial year ending Dec 31, 2011.

PLUS Expressways Bhd is considering paying out dividends earlier than the norm and may announce this at its upcoming AGM, sources said.

JT International Bhd (JTI) will consider paying a special dividend this year, according to chairman Datuk Seri Mohd Nadzmi Mohd Salleh. “We are looking into various business opportunities. If we do not need the money, we will consider that (paying a special dividend),” he said after the company AGM yesterday.As at Dec 31, 2010 (FY10), JTI has a cash and cash equivalents of RM189.2mil. For the full year, JTI posted a net profit of RM133.8mil on revenue of RM1.2 billion.

After hiving off its core insurance business in Malaysia, cash-rich Jerneh Asia has now set its sights on acquiring. Sabah-based property developer Sagajuta Sabah SB, whose flagship project is the massive 1 Borneo mixed development in Kota Kinabalu. Jerneh Asia announced to Bursa Malaysia yesterday that it had signed a memorandum of understanding (MoU) with Sagajuta’s 60% shareholder, Generasi Cipta SB, to start exclusive discussions for the proposed acquisition. If the talks bear fruit, it will be a backdoor listing of Generasi Cipta, whose main assets include the 1 Borneo project that has a gross development value of RM1.2bn, encompassing a 1.5m sq ft shopping mall, four hotels and four condominium towers.

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 1570.04 DJ+50.55 CRUDE OIL 93.28 RM 3.03

New stock listing

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

1.      5192                        KSSC                   0.57                      0.27                           2.85

K. Seng Seng will make its debut on the Main Market of Bursa Malaysia on Wednesday, Jan 19. The supplier of secondary stainless steel products, offered 20.12 million new shares of 50 sen each, priced at 57 sen a share.

Khazanah Nasional Bhd, the government's investment arm, will invite bids this week through its advisor CIMB Investment Bank Bhd for the divestment of its 32.21% stake in Pos Malaysia Bhd. Khazanah managing director Tan Sri Azman Mokhtar reiterated that Pos Malaysia's stake divestment would be a two-stage process, with the first stage addressing regulatory aspects such as the increase in postage tariff rates and rise in salaries and allowances for most of Pos Malaysia's staff. 

Maxbiz Corp Bhd has triggered the criteria pursuant to Practice Note No 17 (PN17) of the Main Market Listing Requirements of Bursa Securities. In a filing with Bursa Malaysia yesterday, Maxbiz said its auditors Messrs Gomez & Co had on Jan 17 submitted its assessment report to Bursa Malaysia Securities Bhd. Messrs Gomez had indicated that the shareholders' equity reported as at June 30, 2010 was RM36.89mil after taking into consideration the additional losses of RM1.33mil as per its assessment report dated Dec 3, 2010 and further losses as above of RM1.22mil.

DiGi.Com Bhd and Axiata Group Bhd expect cash savings of about RM2.2 billion combined over 10 years from the long-term collaboration on network infrastructure sharing in Malaysia. Both parties expect to see incremental savings as early as 2012 and gradually ramping up to an average annual savings of RM150 million to RM250 million combined after 2015.

Tenaga Nasional will announce first quarter results. RHB Research Institute said with higher electricity unit sales growth and largely stable coal prices in 1Q, it estimated core net profit could come in at around RM700 million to RM800 million (4QFY10: RM414 million, 1QFY10: RM751 million).

KPJ HEALTHCARE BHD [] has proposed to acquire Sibu Specialist Medical Centre for RM26.90 million cash to expand into markets where private healthcare is in demand. KPJ would acquire the 100% stake in Sibu Medical Centre Corporation Sdn Bhd (SMCC), comprising 6.62 million shares, from 14 individuals for RM26.90 million cash. SMCC owns and operates private specialist hospital Sibu Specialist Medical Centre at Brooke Drive in Sibu. KPJ Healthcare said the vendors were practising as specialists at the medical centre.

FBMKLCI 1566.49 DJ+83.56 CRUDE OIL 92.08 RM 3.03

Faber Group Bhd subsidiary Faber Ltd Liability Co (FLLC) has received a letter from the Department of Municipal Affairs, Western Region Municipality, Abu Dhabi, for the non-renewal of three contracts with an estimated annual total contract worth RM184mil. The contracts are for the provisions of civil, mechanical and electrical maintenance services for low-cost houses at Madinat Zayed and Liwa in Abu Dhabi. The services of FLLC for the contracts will cease with effect from April 3 and June 1. The non-renewal of the contracts shall have an effect to the group's earnings and the net assets per share of approximately 4 sen for the financial year ending Dec 31, 2011.

Tenaga Nasional Bhd (TNB) has signed two agreements worth some RM2.15bil for its Ulu Jelai hydroelectric project. The company said the first agreement was with SMEC International Pty Ltd and SMEC (M) Sdn Bhd consortium, which would provide detailed engineering design for the main civil works, engineering design review for electrical and mechanical works, project management and site supervision.

The contract value was A$22.1mil and RM31.1mil, which was equivalent to RM99.6mil at the prevailing exchange rates, it told Bursa Malaysia yesterday.

The second agreement is with Tindakan Mewah Sdn Bhd and Salini Costruttori SpA consortium. Under this contract, the consortium will be responsible for the main civil, electrical and mechanical works.

The main civil works consist of the construction of a dam, two water-transfer tunnels and an underground power house. It said the value of the second contract was 307 million euros and RM818.1mil, which was equivalent to RM2.05bil at the prevailing exchange rates.

Affin’s share price rose its 10-year high on Wednesday at RM3.59, despite its management dispelling rumours of a takeover by CIMB Group Holdings Bhd. Later, CIMB stated it is not involved in any discussions relating to a possible acquisition or merger with Affin Bank or any of its related companies. Its shares may see some selling pressure.

Naim Holdings moved a further step ahead for the Sabah Oil and Gas project after signing a memorandum of understanding (MoU) on the relevant works involving oil and gas facilities. Its unit Naim Engineering Sdn Bhd had signed the MoU with Sabah Oil & Gas Contractor Association (SOGCA) and Dewan Perniagaan Melayu Malaysia Negeri Sabah. The MoU was to record certain basic understanding reached between the parties to participate in the relevant works of the O&G facilities under the contract secured recently for the engineering, procurement, CONSTRUCTION and commissioning of the project.

Green Packet plans to invest RM250 million in 2011 to expand its sites from 1,000 now to 1,600. Each site has about three base stations.  Group managing director CC Puan said this would increase its coverage to about 52% of the population of West Malaysia by the end of this year, from about 45% of the population at present.

Property developer SP Setia Bhd (8664)has emerged as the leading contender to build the Penang International Convention Centre (PICC) on the grounds of the Penang International Sports Arena (Pisa). According to sources, SP Setia is likely to get a 30-year concession to build and operate the convention centre, which will include other components like a hotel and retail outlets. "The proposed project is likely to cost over RM200 million," one source told Business Times yesterday. Another source said SP Setia is one of four companies which had responded to a request for proposal from the Penang state government. The Penang Island Municipal Council had closed the tender in September last year.  

AN ambitious RM6.5 billion plan to develop an integrated resort in Karambunai near Kota Kinabalu has received support from the Sabah government. The state cabinet gave its nod after a delegation led by Karambunai Corp Bhd president Tan Sri Dr Tsen Lip Keong provided a briefing on the project yesterday. Chief Minister Datuk Seri Musa Aman said the development could strengthen Sabah's position as a tourism hub in the region and provide employment opportunities. "According to the briefing, 20,000 to 50,000 jobs will be made available in the next 10 years.

Tejari Technologies is confident of growing its revenue by 20% this year with the expandion of its retail and wholesale businesses in information and communication technology (ICT products. The recent acquisition of PC3 Technology SV and Essential Action SV have helped boost the group;s revenue for nine month period ended Aug 31.  

Malaysia Airports is set to receive four new airlines flying into KL International (KLIA) in sepang this year. MAHB marketing manager Mohamed Sallauddin Mohamed Shah said these airlines from the Middle East, India, South Afgrica have expressed strong interest to fly into KLIA and some indicated plans to commence services dyibng rge summer and witer period.

Perodua, Malaysia’s number one car seller in 2010, has set aside RM614.2mil for capital expenditure (capex) this year. Of this amount, between RM250mil and RM300mil will be utilised for the development of a new model, which is expected to further boost overall sales. “New models are needed in this business and we will also work towards increasing the local content. At present, the Alza has the highest local content of 90% while for other models, such as the Viva and Myvi, it is above 80%,” managing director Datuk Aminar Rashid Salleh told a press conference after unveiling the company’s sales figures for 2010 yesterday. He also said the new model would be a small compact car, but declined to say if it would be a completely new model or replacement of units of the current models in Perodua, as the Myvi has been in the market for five years.