FBMKLCI 1544.02 DJ+45.14 CRUDE OIL 99.32 RM 2.9920 

Bursa Malaysia Securities Bhd has dismissed Transmile’s appeal and the beleaguered air cargo transport company will be delisted on Tuesday, May 24. Bursa Securities said on Thursday, May 19 that it decided to dismiss the appeal after considering the facts and circumstances.

CBIP’s unit Modipalm Engineering Sdn Bhd has secured a RM32.28 million contract to build a palm oil mill in Sabah. CBIP secured a contract from Winsome Brantian Palm Oil Mill Sdn Bhd to build the mill with a capacity of 45 tonnes of fresh fruit bunches an hour.

FAVELLE FAVCO BHD [] has secured four contracts totaling RM50.30 million to build tower cranes for four clients. Its contract was to build an offshore crane for Keppel Fels Ltd and Cosco (Nantong) Shipyard Co., Ltd. The other two contracts were with Backam Engineering Corp and Form 700 Pty Ltd to supply a tower crane each.

Malton Bhd’s earnings surged 620% to RM26.28 million from RM3.64 million a year ago, underpinned by higher billings from the property development division. Its revenue increased by 79.4% to RM116.38 million from RM64.89 million while pre-tax profit increased by 512.7% to RM38.6 million from RM6.3 million. Earnings per share were 7.55 sen compared with 1.05 sen.

HUNZA PROPERTIES [] BHD [] reported net profit of RM11.13 million in the third quarter ended March31, 2011, a marginal increase from the RM11.07 million a year ago. Its revenue rose 13.3% to RM66.19 million from RM58.38 million while earnings per share were 5.92 sen compared with 6.94 sen.  It proposed a special interim single-tier dividend of 2.5 sen per share.

Berjaya Corp Bhd (BCorp) has commenced operations at the Sanshui District Bainikeng Sanitary landfill which will solve the waste disposal problems in Sanshui District. Through an open tender and negotiation processes, BCorp said it was awarded The Sanshui District Bainikeng Sanitary landfill build-operate-transfer (BOT) project by the Land, Urban Management & Water Bureau of Sanshui District, formerly known as Construction Bureau of Sanshui District (CBSD) in Foshan City, China. BCorp said it had been granted the rights to build, operate and maintain the landfill for a concession period of 28 years and thereafter transfer the same back to CBSD at no cost.

Jotech Holdings Bhd, a Malaysian precision tool maker, rose the most in two months in Kuala Lumpur trading after first-quarter profit surged fivefold from a year earlier. The stock gained 7.7 per cent to 14 sen at 9:10 a.m. local time, set for its biggest gain since March 16

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 1517.66 DJ +124.35 CRUDE OIL 104.62 RM 2.999

Malaysia has unveiled investments worth more than RM2bn across nine private projects spanning the energy, agriculture and electronics to healthcare sectors to boost income and create jobs. Among others, the Government announced a RM600m development of seaport and resort in Perak; construction of chemical
plants, facilities for advanced lightning and a renewable energy park; a RM1m integrated oil and gas hub; as well as public private partnership to cultivate fragrant rice. In addition, US giant General Electric is partnering Malaysian telecommunication provider Redtone International to invest in a teleradiology hub while QAV Technologies SB will develop a light emitting diode certification centre. FaberGroup has been roped in to spearhead the development of an energy-saving system.

Cypark Resources Bhd, a solid waste management company is investing RM94.29mil to build a renewable energy park (RE Park) with grid connection on a 26ha remediated landfill in Pajam, Nilai.

Mudajaya has proposed a corporate exercise involving a bonus issue of up to 137.08 million new shares and the setting up of an employees’ share option scheme (ESOS). The bonus issue would on the basis of one bonus share for every three shares held.

KESM net profit for the second quarter ended Jan 31, 2011 rose 27.3% to RM3.31 million from RM2.6 million a year earlier due to higher revenue arising from stronger demand for burn-in and testing services. Revenue for the quarter rose to RM63.66 million from RM55.89 million. Earnings per share was 7.70 sen while net assets per share was RM5.14. For the six months ended Jan 31, KESM’s net profit rose to RM10.34 million from RM5.47 million last year, while revenue increased from RM127.23 million from RM103.14 million.

The share price of Berjaya Food (BFood), which operates the Kenny Rogers Roasters (KRR) chain, fared well on its maiden trading day. The stock opened on a slight premium of 2.5 sen over its offer price of 51 sen and climbed steadily to a day’s high of 64.5 sen. It closed at 63.5 sen, 12.5 sen or nearly 25% higher, against its offer price. Some 35.865m shares were traded, making it the second most active counter on Bursa. BFood is among the best performing IPOs on debut day.

Financially distressed air cargo operator Transmile Group Bhd said yesterday it would continue to engage with lenders to, if possible, finalise a debt restructuring proposal, and to focus on the completion of the proposed disposal of its four MD-11F aircraft. This is expected to significantly pare down its outstanding debt obligations. Its shares had been suspended since last Thursday as it failed to submit a regularisation plan to Bursa Malaysia. As at Dec 31, 2010, Tranmile’s balance sheet showed that it had debts totalling RM531.5mil.

MUHIBBAH Engineering (M) Bhd’s earnings may at least double this year on rising construction orders, according to UOB-Kay Hian Holdings Ltd. The Malaysian builder has secured at least RM480 million of construction orders so far this year, exceeding 2010’s RM458 million worth of jobs clinched, Vincent Khoo, an analyst at UOB-Kay Hian, wrote in a report today.

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 1511.11 DJ- 107.01 CRUDE OIL 98.90 RM 3.02

It may not be the time for bargain hunting yet as there is more downside to the local stock market due to negative external factors. Investors appeared to be staying at the sidelines yesterday with only 1.7 billion shares being traded compared to the average daily volume of more than 2 billion at the start of the year. The local benchmark FTSE Bursa Malaysia KLCI had yesterday shed more than 10 points in intra-day trading before finishing at 1,511.11, 2.52 points or 0.17% lower, dragged down mostly by plantation stocks affected by lower crude palm oil prices.

PLUS Expressway Bhd, the country's biggest toll road operator, obtained its shareholders' approval yesterday for the RM23 billion takeover bid by its major shareholders UEM Group Bhd and the Employees Provident Fund (EPF), despite over 100 minority shareholders claiming the EGM was "illegal" and walking out halfway.

Telecommunications service provider Axiata Group Bhd posted a net loss of RM367mil for the fourth quarter (Q4) ended Dec 31, 2010, due to impairment loss on its investment in an India-based associate. This compared with a net profit of RM558mil for the corresponding period last year.

Multi-Purpose Holdings Bhd (MPHB), which has businesses from gaming to stockbroking, recorded improved results in the continuing operations of the company despite the lower net profit for the fourth quarter ended Dec 31, 2010.

Plantation firm TSH Resources Bhd’s net profit for the fourth quarter ended Dec 31, 2010, surged 115.98% to RM44.22mil compared with the previous corresponding quarter mainly due to higher contributions from Indonesian operations.

Star Publications (M) Bhd’s net profit for the financial year ended Dec 31, 2010 (FY10) rose 27.80% to RM184.94mil on revenue that gained 9.01% to RM1.06bil.

Hong Leong Bank Bhd’s (HLB) net profit for the second quarter ended Dec 31, 2010 rose to RM291.43mil from RM224.75mil a year ago while revenue increased to RM603.96mil from RM519.40mil previously.

Transmile Group Bhd faces suspension and delisting from March 3 and March 7 respectively for failing to submit a regularisation plan to the Securities Commission or Bursa Malaysia for approval by Feb 22.

PETRA ENERGY BHD [] is likely to post losses for the fourth quarter of 2010 even with crude oil prices around US$100 again.

Genting Bhd’s net profit surged 89.6% to RM465.43 million in the fourth quarter ended Dec 31, 2010 from RM245.4 million a year ago. Revenue rose 76% to RM4.086 billion from RM2.320 billion. Earnings per share were 12.57 sen compared with 6.64 sen while it proposed a final dividend of 4.5 sen. It said the higher revenue was mainly from the leisure and hospitality division with the commencement of operations of Resorts World Sentosa in Singapore, during the first quarter of 2010. As for FY10, its earnings rose 110.9% to RM2.202 billion from RM1.044 billion while revenue surged 71% to RM15.194 billion from RM8.893

billion. Group revenue rose by 71% to record a new high of RM15.19 billion in FY2010 (FY2009: RM8.89 billion), while group profit before tax rose by 74% to post a new high of RM4.39 billion in FY2010 (FY2009: RM2.53 billion).

IJM Corp’s earnings rose 58% to RM132.19m in the third quarter ended Dec 31, 2010 from RM83.64 million a year ago, boosted by its property and PLANTATION []s sector. Revenue dipped 3.7% to RM901.34 million from RM936.31 million. Earnings per share were 9.78 sen compared with 6.32 sen. IJM said the lower revenue was mainly due to mainly to the CONSTRUCTION [] and property divisions.

Kossan’s net profit for the fourth quarter ended Dec 31, 2010 rose 21.4% to RM29.45 million from RM24.25 million a year ago, driven by the expansion in the company’s gloves division with better product mix and margin. Revenue rose 11% to RM252.97 million from RM227.75 million. Earnings per share were 9.18 sen while net assets per share was RM1.40. For the financial year ended Dec 31, 2010, Kossan’s net profit recorded an increase of 76.1% to RM118.59 million from RM67.33 million a year ago. Revenue rose 24.6% to RM1.05 billion from RM842.14 million.

Tan Chong’s net profit for the fourth quarter ended Dec 31, 2010 rose 21.8% to RM52.07 million from RM42.73 million a year earlier, boosted by across the board price discounting to clear 2010 inventories ahead of new model introductions in 2011. Revenue for the quarter rose 16% to RM835.36 million from RM720.19 million a year ago. Earnings per share were 7.98 sen, while net assets per share was RM2.57.

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.