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 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 1514.13 DJ-30.88 CRUDE OIL107.43 RM 2.994

CIMB Bank and CIMB Islamic Bank will maintain their base lending rate and base financing rate at 6.3%. The two banks backtracked on their decisions in less than 24 hours after having announced a rise of five basis points on lending rates on Wednesday.

TIME DOTCOM BHD [] is teaming up with Measat Broadcast Network Systems Sdn Bhd (MBNS) to provide IPTV and broadband services across the Klang Valley and Penang., TT dotCom Sdn Bhd (TTdC) had signed a collaboration agreement with MBNS, which takes effect from Dec 20, 2010 and continue for 10 years from April 1. The collaboration agreement supersedes and replaces the principal terms of collaboration signed by the parties on Dec 20, 2010.

Glomac’s net profit for the third quarter ended Jan 31, 2011 rose 55.2% to RM16.52 million from RM10.65 million a year earlier, mainly due to stronger contribution from higher margin projects such as Glomac Tower, Glomac Damansara and Glomac Cyberjaya. Revenue for the quarter surged 124% to RM176.53 million from RM78.76 million in 2010. Earnings per share were 5.65 sen, while net assets per share was RM2.01. Glomac proposed an interim dividend of 4.5 sen per share. For the nine months ended Jan 31, Glomac’s net profit rose to RM47.96 million from RM28.29 million a year ago, on the back of revenue RM443.74 million.

There has been no indication from the Employees Provident Fund (EPF) that it will pare down its stake in MBSB, said its CEO Datuk Ahmad Zaini Othman. MBSB targets to grow its personal loans to account for 50% of its overall loan portfolio from about 30% presently and this should translate to an additional RM5 billion in fresh disbursements.

Perisai revealed that if it acquired Garuda Energy, it would assume a debt of RM120mil of the latter. Analysts had earlier said it was difficult to ascertain if Perisai was paying a fair price for Garuda Energy, considering there were no details on the latter's debt levels. Perisai also said its total borrowings would balloon from RM251.2mil as at Dec 21, 2009 to RM600.4mil post-acquisition of Garuda Energy. Aside from the RM150mil debt at Garuda Energy, Perisai said it may raise another RM150mil via external borrowings to fund the cash consideration needed for buying Garuda Energy. The projected total borrowings also include a consolidation of borrowings of RM91.4mil from its January 2011 acquisition of another company, Intan Offshore Group

SAM Engineering & Equipment (M) Bhd has proposed to acquire an engine casing manufacturing division from Singapore Aerospace Manufacturing Pte Ltd for RM135mil and restricted issue of irredeemable convertible unsecured loan stocks (ICULS) of up to 33.75 million ICULS to minority shareholders of SAM.

Nam Fatt Corp Bhd, a Practice Note 17 (PN17) status company, has entered into a heads of agreement with Tan Sri Ta Kin Yan to undertake a series of proposals with the ultimate aim of regularising the financial condition of the company. “Ta will participate in the proposed regularisation of Nam Fatt subject to the terms and conditions of the heads of agreement and the terms and conditions of a definitive agreement to be agreed and executed between the company and Ta,” it said. Nam Fatt also appealed to Bursa Malaysia not to de-list its securities and to allow the company to submit its regularisation plan.

Handal Resources Bhd’s rights issue of 60 million ordinary shares together with 60 million free warrants have been oversubscribed by 76.26%. At the close of acceptance and payment of the rights issue and free warrants on March 25, applications were received for 105.76 million new rights shares together with warrants, an excess of 45.76 million shares, Handal said in a statement yesterday. The rights issue of 60 million ordinary shares priced at 52 sen per share was offered together with 60 million new free detachable warrants on the basis of two rights shares and two free warrants for every three existing Handal shares. Together with the rights issue, Handal also made a bonus issue of 10 million shares on the basis of one bonus share for every six right shares subscribed.

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 1495.88 DJ-13.78 CRUDE OIL 89.25 RM 3.12

New RM26bil offer for PLUS highway. A competing bid to buy the assets and liabilities of PLUS Expressways Bhd has been presented to the latter’s board at an offer price that works out to RM5.20 per PLUS share, 13% higher than the existing offer by UEM Group and the Employees Provident Fund (EPF).

Bina Puri Holdings Bhd's unit Bina Puri (B) Sdn Bhd has secured a sub-contract worth RM158.36mil in Brunei. Bina Puri (B) had entered into a sub-contract agreement with to undertake the infrastructure works for a housing project for a contract sum of RM158.36mil, the company said in a filing with Chuon Tzu Construction Co Sdn BhdBursa Malaysia yesterday. The project is expected to be completed in 36 months. With the award, the group's current order book stands at RM3.31bil to date. It secured projects worth RM2.62bil in 2010. The sub-contract is expected to contribute positively to the earnings of the Bina Puri group for the financial year ending Dec 31, 2011.

MTD Capital received a buyout offer from its major shareholders Nikvest Sdn Bhd, Alloy Consolidated Sdn Bhd, Alloy Concrete Engineering Sdn Bhd and Alloy Capital Sdn Bhd (joint offerors) to acquire the remaining shares they do not already hold (excluding 27.49 million treasury shares) at RM9.50 apiece. The joint offerors hold 131.48 million shares of RM1 each in MTD, representing 53.13%. The joint offers have also made a downstream, take-over offer for the existing and paid-up shares of RM1 each in MTD ACPI ENGINEERING BHD not already held by MTD for a cash offer price of 53 sen per share. Trading MTD and MTD ACPI would resume at 9am on Tuesday, Dec 21. The two companies had requested for a trading halt from 9am on Dec 20 pending the announcement.

Time Dotcom's wholly-owned subsidiary TT dotCom Sdn Bhd has entered into principal terms of collaboration with MEASAT Broadcast Network Systems Sdn Bhd (Astro) for the provision of IPTV and Broadband services across the Klang Valley and Penang.

The lower net profit was attributed to the lower profit contribution from the gaming business operated by BERJAYA SPORTS TOTO BHD's principal subsidiary company Sports Toto (Malaysia) Sdn Bhd. It said Sports Toto registered a lower pre-tax profit in the quarter under review due to the increase in Pool Betting Duty from 6% to 8% (effective June 1, 2010) coupled with higher prize payout.

FBMKLCI 1510.58 DJ+47.98 CRUDE OIL 88.77 RM 3.101

Kencana Petroleum Bhd, with current order book of RM2 billion, plans to bid for contracts valued at four times more next year, said its group CEO Datuk Mokhzani Mahathir. 

KNM Group Bhd has on Dec 13 entered into a joint venture agreement with Petrosab Logistik Sdn Bhd to form a 51:49 joint-venture company known as KNM Petrosab Sdn Bhd (KNMP) to target oil and gas projects in Sabah.

Maybank yesterday announced that 88.6% of the total amount of shares that would have been issued under its dividend reinvestment plan will be issued to shareholders.

Proton Holdings Bhd's capital expenditure (capex) for Group Lotus plc's business turnaround plan of about £480 million (RM2.37 billion) over a five-year period was higher than expected, CIMB Investment Bank said in a research report.

YTL Power International Bhd is investing in oil shale projects in Jordan with the acquisition of a 30% stake in Eesti Energia’s Jordanian oil shale projects.

DRB-HICOM eyes firm deal with Russian truck maker. DRB-HICOM has inked a MOU on the possibility of manufacturing Kamaz trucks in Malaysia for the local market as well as in Asean. 

Digi.Com Bhd has entered into a 10-year wavelength purchase agreement and a maintenance and support deal collectively worth RM139mil with Time dotCom Bhd as a follow-up to the bandwidth service agreement signed between the two companies in April 2008.

FBMKLCI 1485.42 DJ +249.76 CRUDE OIL 86.57 RM 3.13

Time dotCom Bhd (TdC) has extended its high-speed fibre connection to another 30,000 premises in a bid to expand its existing broadband subscription base of around 10,000 in the corporate and retail segment.

KNM Group Bhd’s wholly-owned subsidiary, KNM International Sdn Bhd, has entered into a shareholders agreement with Aveng (Africa) Ltd set up a joint-venture company in South Africa.49.9%:50.1% basis.

Perodua remains unconvinced a merger with rival Proton Holdings Bhd would be in its best interest after a study of a possible merger of both national car companies was completed. Managing director Datuk Aminar Rashid Salleh, who said Perodua had not been briefed on the findings of the study undertaken by Frost & Sullivan, reiterated the stance of the company it's not keen to pursue a merger.

Petronas Gas has signed a heads of agreement with its parent company Petronas to develop liquefied natural gas (LNG) re-gasification facilities and supply LNG to the latter. In an announcement to Bursa Malaysia yesterday, PGas said the re-gasification facility would be located in the vicinity of Sungai Udang Port in Melaka encompasses two floating storage unit (FSU) to receive and store LNG, an island jetty and re-gasification units and subsea and onshore pipelines to pipe the gas to the Peninsular Gas Utilisation (PGU) pipeline network.


Cahya Mata Sarawak, through 51%-owned subsidiary CMS Land SB, has signed a joint-venture agreement to build, own and manage a four-star hotel and service apartments at the Kuching Isthmus in Sarawak. The building, comprising 381 hotel rooms and 96 service apartments, will cost about RM380m, including outfitting, furniture, fittings and equipment, but excluding financing costs and contingencies.

 

Dialog Group is acquiring a 90% stake in Fitzroy Engineering Group (FEGL), one of New Zealand’s largest heavy fabrication and multi-disciplined engineering companies, for RM31.7m (NZD13.5m) cash. The company said yesterday that its wholly-owned subsidiary, Dialog System (Asia) (DSAPL), had entered into a conditional sale and purchase agreement with Peter Clayton White-Robinson to acquire a 90% stake representing 2.38m shares.

 

FBMKLCI: 1501.56 DJ: +9.39 CRUDE OIL: 84.87

KENCANA subsidiary Kencana Hl has secured project from Sarawak Shell for the fabrication of compression modules and tie-in modifications -worth RM275m.

TimeCom plans to buy Global Transit Communications (GTC) for RM106m, Global Transit Ltd (GTL) for RM105m and AIMS Group for RM128m. All three are profitable and are expected to enhance TdC's earnings immediately upon purchase. GTC -wholesale Internet service and backhaul provider, GTL -owns 10% in the much-coveted trans-Pacific submarine cable, Unity North Cable System. AIMS Group -owns one of the region's leading network-neutral data centres. 

P&O insurance business is believed to still be on the radar of other foreign parties despite Prudential Holdings Ltd dropping out of the acquisition talks for the local general insurer.

GPacket posted net losses of RM13.71 million in the third quarter ended Sept 30, 2010, a decline from the net loss of RM31.84 million a year ago. Revenue rose 60% to RM100.89 million from RM63.03 million. Loss per share was 2.1 sen versus eight sen. Green Packet’s total borrowings as at Sept 30 totalled RM237.01 million. Its total turnover was the nine-month period was RM277.71 million compared with RM160.99 million while loss per share was RM56.82 million compared with RM81.93 million.

Amway (Malaysia) Holdings Bhd net profit for the third quarter ended Sept 30, 2010 rose marginally to RM21.51 million from RM20.48 million a year ago due to increase in sales revenue.Amway declared a third interim single tier dividend of 9 sen net per share and special interim single tier dividend of 30 sen net per share for the financial year ending Dec 31, 2010.

Mas expects its newly launched Eastern hub in Kota Kinabalu to contribute between RM60m and RM100m to net profit by June 2011. The hub will be developed over three stages from 15 November 2010 to 3 June 2011. A total of six aircraft, two new B737-800 and four B737-400 as well as 150 pilots and 250 cabin crew will be based in Kota Kinabalu by June 2011.

Scomien  has  struck a deal with Engineering Projects (India)  Ltd  to  jointly  venture  into  monorail  projects  in fast-urbanising Indian cities and in South Asia region.