FBMKLCI 1497.52 DJ+41.78 CRUDE OIL 88.79 RM 3.11

AirAsia Bhd, which has formed a 40:60 joint venture (JV) with three Philippine partners, is investing US$8mil for its 40% stake in AirAsia Philippines. We will be funding it internally via equity, group CEO Datuk Seri Tony Fernandes said after a signing ceremony between AirAsia and Antonio O. Cojuangco Jr, Dr Michael L. Romeo and Marianne B. Honours yesterday. He expects AirAsia Philippines to be profitable straight away and contribute to group revenue immediately as a lot of ground works had been done. The set-up cost is very low. There are already flights from Kuala Lumpur to the Philippines. Everything is there already, Fernandes said. AirAsia will hold 40% equity in AirAsia Inc, the JV company set up for AirAsia Philippines. The new airline is expected to begin operations in August 2011 with an initial working capital of US$25m. To a question, Fernandes said it was in the midst of getting approval from authorities for its airline operations in the Philippines.

Tenaga Nasional Bhd (TNB) has inked three agreements worth RM991.8mil for the Hulu Terengganu hydroelectric project involving the construction of two dams and the installation of two hydro turbines and generators in an underground power station with a total installed capacity of 250MW.

Four companies, namely construction firm Putrajaya Perdana, water infrastructure specialist Loh & Loh Corp, property developer General Corp and planter Kurnia Setia, will be delisted on 21 Dec. The companies made the announcements to Bursa Malaysia yesterday. Putrajaya Perdana and Loh & Loh were being taken private by Javace SB and Sheikh Tarek Essam Ahmad Obaid for a cash offer price of RM4.85 per share respectively. General Corp was being taken private by Consistent Record SB, which was acquiring all the company's assets and liabilities for RM505.01m while Kreatif Selaras SB was taking private Kurnia Setia.

MAA Holdings Bhd and AmG Insurance Bhd (a 51%-owned subsidiary of AMMB Holdings Bhd) have mutually agreed to discontinue discussions on the proposed disposal of Malaysian Assurance Alliance Bhd’s (a subsidiary of MAA) general insurance business for RM180mil.

Mulpha International Bhd will use the RM327mil proceeds from the sale of its Hilton Melbourne Airport Hotel to repay its debt levels unless new investment opportunities arise.

Proton Holdings is to replace its existing Persona model with a new version in 2012, said its group managing director Datuk Syed Zainal Abidin Syed Mohamed Tahir. However, he did not disclose which of the five Pahlawan concept cars shown at the recent KL International Motor Show would be replacing the Persona model. "Take a guess," Syed Zainal said, when asked by reporters to reveal more on the Persona replacement model. Industry talk has it that the Tuah concept, or code-named Espire, would be bound for production. It is learnt that the Tuah concept car shown to the public was not the final design approved as Proton is coming up with an improved version. Earlier, Syed Zainal witnessed the signing of a memorandum of understanding between AutoV Corporation Bhd with US-based ArvinMeritor Inc and Germany's Continental AG.

FBMKLCI 1509.1 DJ-19.07 CRUDE OIL 88.25 RM 3.13

PN17 company LCL Corp Bhd could be delisted by Dec 27 for failing to submit its regularisation plan to the Securities Commission or Bursa Malaysia.

MRCB and IJM Land Bhd have extended the validity of their memorandum of understanding to merge and create the country’s second-largest property company to Dec 29 from Dec 14 previously.

Menang's unit wins RM1.5b contract to build 5 UiTM campuses nationwide for more than RM1.5 billion over 23 years. IMSB will build the Seremban campus, designed to cater for 5,000 students, over three years. Upon completion, the campus will be leased to the government/UiTM for 20 years. The company will maintain the facilities and infrastructure of the campus during the 20-year lease period. 

RHB Capital’s wholly owned subsidiary, RHB Bank, has entered into a MoU with Sumitomo Mitsui Banking Corp (SMBC), in line with its objective of becoming a major player in the banking industry. “RHB sees this MoU as one of the many proactive steps it is taking in enhancing its local and global strategic economic network,” it said in a statement yesterday. “The alliance will assist RHB, together with its respective subsidiaries and related companies, in strengthening its position in the Japanese business segment and also in establishing a stronger foothold in the international arena as part of the RHB banking group’s strategy for business expansion with ever deepening economic ties between Japan and Malaysia.”

DRB-HICOM Bhd has signed a MoU with the Kamaz Group, the largest automobile corporation of the Russian Federation, to look into the possibility of manufacturing and assembling selected Kamaz heavy duty trucks for the Malaysian and Asean markets. “This MoU will pave the way for the feasibility and a detailed costing study as well as the models of Kamaz truck suitable for this region,” said DRB-HICOM group managing director Datuk Seri Khamil Jamil in a statement yesterday.

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 1509.79 DJ+18.24 CRUDE OIL 89.06 RM 3.10

KYM Holdings has been awarded a contract valued at RM585,911 by Vale International SA for the provision of consultancy services for the acquisition of land and development order approval. KYM said in an announcement to Bursa Malaysia yesterday that Vale had instructed it to acquire the land for the construction of a 2.5km-long jetty and for the construction of temporary site office facilities for their proposed iron ore distribution centre and pellet plant in Teluk Rubiah, Perak.

Johor Corp (JCorp) will not be selling any of its assets to repay bondholders’ RM3.6bil when the papers are due on July 31, 2012. JCorp’s newly-appointed chief executive officer Kamaruzzaman Abu Kassim said the plan was to refinance the debt.

The board of Olympia Industries Bhd has clarified that the company has expressed interest to acquire all the equity shares in Pan Malaysian Pools Sdn Bhd from Tanjong plc, a company which has been taken private by T. Ananda Krishnan.

Proton will spend £480m on Group Lotus plc to turnaround the company and the financing will be secured via internally generated and externally secured funding during the turnaround period. Proton also confirmed its unit Group Lotus plc is teaming up with Renault F1 Team Ltd for the title sponsorship of the Renault F1 Team which will take part in the Formula One World Racing Championship season beginning 2011 onwards.

Kencana Petroleum posted net profit of RM52.35 million in the first quarter ended Oct 31, 2010, up 70% from RM30.82 million a year ago and was upbeat for the current financial year on rising demand for its engineering and fabrication of oil and gas production facilities. Revenue rose 20% to RM336.96 million from RM281 million a year ago while pretax profit increased by 63% to RM68.10 million from RM41.80 million. Earnings per share were 3.16 sen compared with 3.41 sen.

The Naza brothers Sheikh Mohd Nasarudin SM Nasimuddin and Sheikh Mohd Faliq SM Nasimuddin have resigned as directors of Kumpulan Jetson. The group told Bursa Malaysia yesterday that the resignations of Nasarudin, 27, and Faliq, 25, came into effect the same day. The brothers were deemed interested by virtue of their interest in Superior Pavillion, which owns 13.12 million Jetson shares. Jetson also announced yesterday that the brothers had disposed of 4.37 million Jetson shares, or 7.22% stake, for RM1.05 each on 8 Dec. They were believed to initially have big plans for the company but lost interest after disagreements with other shareholders, stemming from unsettled financial issues within Jetson.

KFC Holdings (M) Bhd, which holds the franchise to operate KFC and Pizza Hut restaurants in Malaysia, Singapore and two cities in India from Yum! Brands Inc, has acquired Kernel Foods Pte Ltd, a Mumbai-based restaurant operator for RM83,565.

FBMKLCI 1507.28 DJ+40.26 CRUDE OIL 87.99 RM 3.109

Landmarks Bhd is expected to start its Bintan development called Treasure Bay Bintan (TBB) by the first quarter of 2011, sources familiar with the matter told The Edge Financial Daily. 

Ramunia Holdings Bhd’s wholly owned unit, Ramunia Fabricators SB, has been slapped with a RM15.9m suit by Ulti Resources SB for unlawful possession of land, according to a filing to the exchange last Friday. The plaintiff is seeking the amount and claims that Ramunia Fabricator had unlawfully entered and took possession of the lands in Kota Tinggi, Johor, in July 2008.

Benalec Holdings Bhd, the country’s second largest marine construction firm by market share, is set to list on the Main Market in the first quarter of next year. Having just received in the first week of December approval for the listing on the local bourse, the company expects to raise some RM100m from the IPO, said the group managing director Vincent Leaw Seng Hai. According to the MD, the proceeds raised are intended for the use of working capital.

FBMKLCI 1521.29 DJ -2.42 CRUDE OIL 88.50 RM 3.108

Construction and infrastructure giant Gamuda Bhd is eyeing Qatar's mass rail transit (MRT) project next year, ahead of the 2022 FIFA World Cup, said group managing director Datuk Lin Yun Ling.

TNB is confident it can maintain its profitability for FY11 ending Aug 31, unless coal prices continue to climb, breaching the US$110 (RM345) per tonne mark. 

Malayan Banking Bhd’s (Maybank) Indonesia unit, PT Bank Internasional Indonesia (BII), saw its shares jump to a 10-year high amid comments by the country’s regulator that Maybank “refloat a 20% stake in BII within six months.” 

SP Setia Bhd’s net profit rose 32.2% year-on-year to RM75.2mil in the fourth quarter ended Oct 31 due to higher sales and gain from the disposal of Tesco Hypermarket in Bukit Indah, Johor.

Peter Chin: No water bailout, but the Federal Government will help to ensure the people of Selangor, Kuala Lumpur and Putrajaya have a continuous supply of water. That was Energy, Green Technology and Water Minister Datuk Seri Peter Chin’s message in response to the ongoing water dispute between the Selangor and federal governments. Asked if there is a deadline, Chin said “as long as we cannot resolve the issue on a willing buyer, willing seller basis, how can we set a deadline?”.

Kamaruzzaman is new JCorp CEO. Kamaruzzaman Abu Kassim was appointed chief executive officer of Johor Corp (JCorp) at a board meeting chaired by Menteri Besar Datuk Abdul Ghani Othman yesterday.

FBMKLCI 1510.06 DJ +13.32 CRUDE OIL 88.74 RM 3.113

The federal Cabinet has agreed in principle to a revision of electricity tariff but has not decided when it should take place. Energy, Green Technology and Water Minister Datuk Seri Peter Chin Fah Kui said an electricity tariff revision was on the cards but the Government had not decided when. He said there were many issues that the Government needed to address before a time could be set for the revision.

Dayang Enterprise Holdings Bhd is disposing of its 40% stake in Syarikat Borcos Shipping Sdn Bhd to AWH Equity Holdings Sdn Bhd for RM135mil.

Tan Sri Syed Mokhtar Al Bukhary is believed to be considering taking auto and banking group DRB-HICOM private, people familiar with the plan said yesterday. It is further believed that the tycoon is being advised by Maybank Investment Bank on the plan, which could cost him close to RM2bn. Sources said the offer will be comparable to DRB-HICOM's NTA value, which stood at RM2.50 as at end of September this year. As at July this year, Syed Mokhtar held a controlling 55.9% of DRB-HICOM, via privately held Etika Strategi SB.

Paramount Corp Bhd announced yesterday a special dividend of 40 sen per share, less tax at 25%, for the year ending Dec 31, 2010.

Alam Maritim Resources has seen its share price plummet on potential debt write-offs owed by Vastalux SB, a debt-ridden subsidiary of another O&G firm, Vastalux Energy. It is mulling a provision for the total debt owed by Vastalux this fiscal year and may even consider liquidating Vastalux given the remote chance of the former recovering its debt.

KFC India, a subsidiary of Kuala Lumpur-based KFC Malaysia, has been operating in India since a year, and has already opened six stores in the state of Maharashtra - four in Mumbai, one in Pune and one in Aurangabad. It has plans to increase its number of stores to 17 next year, says Hezal Ahmad, CEO of KFC
India.

Proton’s subsidiary Group Lotus plc will buy a major equity stake in the Renault F1 team, which will be renamed Lotus-Renault GP team, from the start of the 2011 Formula 1 season onwards. Group Lotus will buy a 25% stake from Luxembourg-based investment group Genii Capital. The price tag was not mentioned.

Bina Puri Holdings Bhd has won a Stormwater pipeline project worth 23.99 million riyal, or about RM19.91mil, from the Saudi Arabia’s City Council of Northern Border (Turaif), through its associate company, Bina Puri Saudi Co Ltd.

Hartalega Holdings has clarified that its factory in Ijok, Kuala Selangor, has never been ordered to close, suspended, nor issued serious warnings of any kind. In a statement issued yesterday, its executive director Kuan Mun Leong categorically denied the allegations reported to have been made by Deputy Minister at the Prime Minister's Department Datuk T. Murugiah and some residents of Taman Suria.

FBMKLCI 1501.74 DJ -3.03 CRUDE OIL 88.23 RM 3.104

KNM finally held an analyst briefing after pausing for a few quarters as management believes the company’s operation is finally turning around and the outlook for its process equipment segment is getting brighter. Going forward, it will expand its services business and go into nuclear energy. KNM is still supported by strong orderbook of over RM2.0bn.

AirAsia Bhd, Southeast Asia’s biggest budget carrier, plans to form a Philippine unit by the first quarter of next year. Sepang, Malaysia-based AirAsia may expand into the Philippines as airlines including Cebu Air Inc increase their fleets and services to meet rising demand in the archipelago. The government has set a target to double tourism arrivals in six years to help spur economic growth.

Scomi Marine Bhd has entered into a memorandum of understanding (MoU) to form a framework of cooperation for the provision of maritime academic programmes in Malaysia. 

UEM Land Holdings Bhd said it planned to acquire two parcels of freehold agricultural land in Bangi for RM268.5mil from Inch Kenneth Kajang Rubber Public Ltd Co to develop the land into a comprehensive and integrated township. It told Bursa Malaysia yesterday that its wholly-owned unit UEM Land Bhd wanted to buy the land measuring 463.51 acres at RM13.30 per sq ft.   

Spritzer Bhd is in talks with potential joint venture partners in China and Australia on the possibility of producing bottled mineral or drinking water in these countries and expects to conclude these discussions sometime next year.  

Malaysian banks have extended their streak of sterling double-digit net earnings growth to a fifth straight quarter by posting a 20.1% year-on-year growth in the third quarter (Q3) of this year.

Analysts cautious on billionaire's hard-disk drive maker JCY International

WHEN news that low-key Malaysian billionaire Yong Yoon Kiong's company JCY International Bhd was to be listed on Bursa Malaysia first hit the market back in 2006, there was a lot of excitement.

Not only was the hard-disk drive maker going to be the largest technology firm ever listed on Bursa, it was also supposed to be the biggest initial public offering (IPO) for South-East Asia in many years.

The listing however did not materialise that year.

JCY, which is one of the world's major suppliers to the two global hard-disk drive giants, Western Digital and Seagate Technology Inc, finally made its long-awaited debut on the local bourse on Feb 25 this year. But if its share price performance thus far and latest financial results are anything to go by, it is quite safe to say that JCY has not lived up to market expectations.

The stock has shed close to 50% of its price since its listing to settle 78 sen on Friday, which was also the lowest. In contrast, the benchmark FTSE Bursa Malaysia KL Composite Index has put on more than 18 % in the same period.

Against its high of RM1.98 achieved on May 3, the stock is trading at a 60% discount. For its IPO, JCY had set the institutional offer price at RM1.60, while the retail portion was priced at RM1.52. For its latest quarter ended Sept 30, JCY incurred a net loss of RM22.56mil against a net profit of RM73.5mil made a year ago, largely on rising expenses and foreign exchange losses. Observers noted that there could be shareholders selling out and some could even be doing so below their IPO prices because of the lower entry cost.

JCY finance executive director James Wong was quick to point out that these issues should not be too much of a concern.

Malaysian investors do not understand tech stocks; you've got to be in for the long-haul, he told StarBiz.

When times in an industry like ours become challenging, we restructure, we adapt and we come off stronger.

The company is working on its labour issues where in the latest quarter, it had incurred an additional RM8mil in workers' salaries due to manpower shortage that resulted in some operations being outsourced and pay rise for the local workers.

We plan to shift some of our labour-intensive operations to China where labour is much cheaper, Wong said.

It currently has about 16,000 workers at its factories in Johor Baru and Penang. Wong said Western Digital had guided for a disappointing December quarter while the March quarter was traditionally a weak one for the industry.

But demand will come back, it always does. We've been in this business for a long time, we understand the cycles, he noted.

JCY has started supplying its components to South Korean and Japan customers to counter the weak demand from its Western customers that are still struggling to surface from the economically challenging times although the impact on bottomline is not expected to be felt so soon, according to Wong. Wong also noted that to his knowledge no major shareholders were selling their stakes in the firm. He added that Yong, the founder of the firm, still held close to 75% stake in JCY.

When the company was listed, some market observers pointed out that valuations were far too high. JCY's IPO was priced at a historical price-earnings (PE) multiple of 15 times when stocks in such an industry which is considered highly cyclical usually trade at PEs of less than 10 times.

Granted, JCY was priced before the acceleration of concerns of a double-dip in the United States, a major customer for the company.

Meanwhile, following the latest results of the firm, some analysts have turned cautious on JCY. In recent notes to clients, analysts said higher wages, shortage of workers, unfavourable foreign exchange rates and high raw material prices would continue to remain challenges for the firm for some time.

http://biz.thestar.com.my/news/story.asp?file=/2010/12/6/business/7553769&sec=business

FBMKLCI 1500.98 DJ +19.68 CRUDE OIL 89.28 RM 3.117

New stock listing

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

1.    0163                CAREPLS           0.023                         0.005             1.15

BSKL is expected to trade higher this week with the benchmark FTSE Bursa Malaysia Kuala Lumpur Composite Index (FBM KLCI) likely to move towards 1,530 with a strong upside momentum, dealers said. Affin Investment Bank head of retail research, Dr Nazri Khan, said despite profit-taking last week, the benchmark index was likely to get positive spillover from the improving US and Europe. We believe that global tensions have already been factored in by the correction seen last week. We can sense that the flip-flop hot money obviously is making a comeback with year-end bargain-hunting driving the local stocks higher, he said.

Kencana proposed to raise funds via:

1. a proposed issuance of up to 5-year RM350m nominal value Islamic          Securities with detachable warrants on a “bought deal” basiswith AmInvestment Bank as the primary subscriber;
2. a proposed offer for sale by the primary subscriber of the provisional rights to the allotment of the Kencana warrants at an issue price to be determined later.
3. a proposed 10% private placement of new ordinary shares of RM0.10 each in Kencana. In addition, Kencana also proposed to increase its authorised share capital from RM200m divided into 2bn ordinary shares of RM0.10 each to RM300m divided into 3bn shares.

Myagri Group of Companies, an agro-biotechnology outfit, plans to list its unit either on the local or a foreign bourse to raise RM30 million to finance its expansion plans. Myagri helps oil palm plantations convert their waste at the mill into organic matter, enriching it with bio fertiliser microbes. This produces organic fertilisers that are not just good for crops but also protects their health.

The former executive director of Johor Port, Abdul Khalid Khan Lal Khan, is set to lead a revamp of Tanjung Langsat Port (TLP), which will include the set-up of a free trade zone. According to sources, Abdul Khalid will take over the running of TLP to make it a full-fledged container port that will tap the demand in Pasir Gudang. Currently, TLP, now owned by Johor Corp, is operating as a private jetty. It was set up with the aim of making it the largest biodiesel hub in the world.

DiGi.Com announced that the domestic roaming agreement between its wholly-owned unit DiGi Telecommunications SB and U Mobile SB has been terminated yesterday. The agreement was in relation to giving U Mobile access to DiGi Telecommunications’ 2G GSM network for the provision of public telecommunications services in Malaysia.

Ramunia Holdings Bhd's unit O&G Works Sdn Bhd (OGW) is teaming up with Dongnam  Marine  Crane  Co Ltd (DMC) from South Korea to undertake the joint manufacturing of cranes.

FBMKLCI 1503.22 DJ+106.63 CRUDE OIL 87.87 RM 3.115

TM stands to gain RM444.7 million through the proposed sale of some 191.46 million shares it holds in Axiata Group Bhd, representing a 2.27% stake via private placement or in the open market.

Glomac’s 1HFY11 results stripping out the RM4.9m fair value gain on properties, its 1HFY11 turnover and core net profit improved significantly by 99% (+12% q-o-q) and 47% (+40% q-o-q) respectively on the back of higher progress billings from its high unbilled sales. Its latest unbilled sales stood at RM572m (1.8x FY10’s turnover).

IJM Corp and JAKS Resources’ 60:40 joint venture has secured a RM268.5m contract from the Ministry of
Energy, Green Technology and Water for the Pahang-Selangor Raw water transfer project. The project involves the construction of 3m nominal diameter mild steel pipes with a total length about 24km and two access roads of 1.9km and 1.5km long (including 80m long bridge).

EPF will raise up to RM765.5m from a planned sale of a block of RHB Capital shares, which will see its shareholding in the bank drop below the 50% mark. A term sheet detailing the placement exercise obtained by Reuters showed that the indicative pricing of the placement had been set at between RM7.50 and RM7.90 per share.

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.

 

New O&G tax incentives

New incentives  aimed  at  promoting  the  development  of  new  oil resources, facilitate  the  exploitation  of  harder-to-reach oil fields and stimulate domestic  explorations. These measures are expected to add more than RM50bn petroleum-generated  revenue  over  the  next  20 years and would involve  a notional  trade-off  of  about  RM8bn  in the form of revenue foregone  from investment  tax  allowances,  reduced  tax  and  the export duty waiver  for marginal fields. 

Most  oil  and  gas  service  providers  will benefit from the development, either  directly or indirectly, as it involves a wide-spectrum of services. As  a  word of caution, development of these fields are not without risk as any  significant  drop  in  crude  oil  prices  will  be detrimental to the financial standing of new players.

http://biz.thestar.com.my/news/story.asp?file=/2010/12/1/business/7529636&sec=business

FBMKLCI 1482.69 DJ -46.47 CRUDE OIL 84.14 RM 3.13

Kulim (Malaysia) Bhd net profit for 3QFY10 ended Sept 30 surged five-fold to RM284.66 million from RM43.71 million a year ago mainly due to after-tax gains of RM151.61 million from the sale of its oleochemical business during the quarter. 

Maxis Bhd posted a slight drop in net profit of 2.6% to RM1.69bil for the nine months ended Sept 30, compared with RM1.73bil in the previous corresponding period.

Petroliam Nasional Bhd’s (Petronas) net profit fell marginally to RM11.88bil in the second quarter ended Sept 30 from RM11.97bil a year ago due to higher taxation but the group is optimistic of its outlook.

Malaysia’s crude palm oil futures contracts reached an all-time high of 451,843 contracts in November, exceeding the previous record of 442,220 contracts in April 2009, Bursa Malaysia Derivatives Bhd said in a statement yesterday.

 

The Government has agreed to allocate an additional RM700m for rolling plans for Iskandar Malaysia over the next two years. Johor Mentri Besar Datuk Abdul Ghani Othman said the amount is an addition to the RM339m set aside to the southern Johor growth region during the recent tabling of Budget 2011. "Yesterday, Prime Minister Datuk Najib Razak agreed to add funds for rolling plans with another RM700m for Iskandar Malaysia programs," Sources said the funds may be for various infrastructure projects and new investments which have not been announced by the Government.

 

SapuraCrest Petroleum and its JV partner have landed a USD160m (RM504m) contract from PTTEP Australasia (Ashmore Cartier) Pty Ltd (PTTEPAAA) for the provision of offshore transportation and construction activities for PTEPAAA’s Monara development in Australia. The Montara project is located in the Southern Timor Sea approximately 650km west of Darwin. SapuraCrest informed Bursa Malaysia yesterday that SapuraAcergy SB (SASB) a JV company it equally owns with Acergy SA, had received a letter of award for the contract on 25 Nov.

MTD Capital Bhd, Malaysia’s second largest highway operator and owner, could rake in at least some RM150m in annual toll revenue from the South Luzon Expressway (SLEX) in the Philippines next year if higher toll rates are implemented in January 2011. The Philippines business paper BusinessWorld, quoting Julius G Corpuz, an official with the Philippines Toll Regulatory Board (TRB), reported that the implementation of higher toll rates could happen in the first week of January next year.

FBMKLCI 1494.78 DJ -39.51 CRUDE OIL 85.76 RM 3.133

In a twist of events, two rival offers on the table in the proposed takeover of QSR Brands Bhd have been rejected. This follows Kulim (Malaysia) Bhd's announcement yesterday that it had turned down the offer by Carlyle Investment Advisors Ltd to acquire an equity interest in QSR for RM1.94 billion or RM6.70 per share. Kulim has a 57.8% stake in QSR. 

Port operator Integrax Bhd may consider selling its stake in Lumut Maritime Terminal Sdn Bhd (LMT) for a price tag of no less than RM125 million.

  

RHBCap) net profit for 3QFY10 ended Sept 30 rose 5% to RM351.4 million, underpinned by higher net interest income and fee income.  

 

Pos Malaysia’s earnings rose 44.7% to RM31.3 million in the third quarter ended Sept 30, 2010 fromRM21.63 million ago on higher operating profit, revenue, and the tariff increase effective from July 1. Revenue rose 3.5% to RM227.4 million from RM219.7 million. Earnings per share were 5.83 sen compared with four sen. The group 3Q profit from operations was RM38.1 million, higher than the RM18.3 million a year ago.

MUIIND  posted net profit of RM33.04 million in its third quarter ended Sept 30, 2010, compared with RM4.51 million a year ago. There was a reserval of impairment in an associate amounting to RM17.98 million. Revenue was 2.7% lower at RM238.45 compared with RM245.09 million a year ago, Earnings per share were 1.63 sen compared with 0.23 sen.

KLK posted a 27% increase in earnings to RM311.04 million from RM243.73 million a year ago, boosted by its plantationss sector though there was a decline in its manufacturing operations. Revenue increased by 11.9% to RM2.014 billion from RM1.799 billion while earnings per share were 29.21 sen compared with 22.89 sen. It declared dividends of 45 sen per share, an increase from 30 sen a year ago.

Three companies - Petra Energy, Carimin SB and Shapadu Corp SB - are understood to have emerged as the front runners to bag retro-fitting, hook-up and commissioning jobs for oilfields located in Peninsular and East Malaysia from Petroliam Nasional (PETRONAS), industry sources said. According to sources, the contracts are valued at RM1.2bn in total and could be evenly broken down to three parcels of RM400m between Sabah, Sarawak and Peninsular Malaysia. Petra Energy is understood to have almost secured the Sarawak portion, while Carimin is close to bagging the Sabah job. Shapadu, meanwhile, is said to be the front runner to get the retrofitting, hook-up and commissioning jobs for Peninsular Malaysia.

A study on a possible merger between the country's top two national car companies has been completed, International Trade and Industry Minister (Miti) Datuk Seri Mustapa Mohamed said. Miti is setting a date by the year-end to discuss a third-party's research findings on the possible merger between Proton Holdings and Perusahaan Otomobil Kedua SB. The study was carried out by Frost & Sullivan

FBMKLCI: 1492.05 DJ-95.28 CRUDE OIL 84.08 RM 3.104

BjCorp last Friday clinched a deal to sell a 70% stake in its stockbroking arm, Inter-Pacific Securities Sdn Bhd, to Singapore-listed Kim Eng Holdings Ltd for RM142 million.

Independent power producer Jimah Energy Ventures Sdn Bhd is planning to go public in what could be one of the bigger initial public offerings (IPO) of 2011.
A merchant banker has been hired but there are many details yet to be finalised. "The listing is targeted for mid-2011 but there are details to be sorted out including the name the listed company will carry," its chairman Tunku Naquiyuddin Tuanku Ja'afar said. He expects Jimah to raise "hundreds of million ringgit" from the IPO.

Syarikat Prasarana Negara Bhd (SPNB) has awarded contracts worth RM1.7bn for the first phase (Package A) of the RM7bn light rail transit (LRT) extension project involving the Kelana Jaya and Ampang lines. Package A of the Kelana Jaya line, valued at RM950m, was awarded to TRC sinergy. The work will take 30 months to complete. UEM Builders Bhd and Intria Bina SB were jointly appointed the nominated sub-contractors for the fabrication and delivery of segmental box girder jobs worth RM93.16mil, which is expected to take 21 months to complete. Package A of the Kelana Jaya line will be a 9.2km extension from the Kelana Jaya station to Summit (Station 7). Package B will involve a 7.8km extension from Station 7 to the Putra Heights station.

FBMKLCI: 1496.49 

New stock listing

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

1.    5183                PCHEM           5.200                         3.640               26.000

AirAsia Bhd posted a record net profit of RM327.29 million in 3QFY10 ended Sept 30, up 140% from RM136.26 million the previous corresponding quarter as it flew more passengers. 

Genting Bhd's 3QFY10 ended Sept 30 net profit grew 3.62% to RM765.92 million from RM739.17 million in the previous quarter with a deceleration of contribution from its Singapore and Malaysia leisure and hospitality operations.

JohorCorp (JCorp), the ultimate major shareholder of QSR Brands Bhd, has poured cold water on Tan Sri Halim Saad's bid for Malaysia's biggest fast food group on the same day that a much higher offer was made. Earlier yesterday, US private equity group Carlyle Group offered RM6.70 a share for QSR, its parent Kulim (M) Bhd told Bursa Malaysia. But JCorp's evening announcement provided a late twist to the tale and raised more questions as it did not comment on Carlyle's bid

DRB-HICOM Bhd  said net profit for the second quarter to September 30 grew 185.5 per cent to RM155 million, from RM54.3 million in the same period last year. Consequently, net profit for the six months was at RM355.2 million against RM114.8 million in the first half of last year.

The government is expected to award the jobs for the long-awaited light rail transit (LRT) extension project soon, and successful bidders have been short listed. Sources said. According to a source familiar with the matter, parties that had lobbied for the LRT extension jobs for the Ampang and Kelana Jaya lines include UEM Group, IJM Corp, Bina Puri and TRC Synergies. The contracts to be awarded will be building of LRT stations, laying groundwork and alignment before constructing the railway. The total extension length of the Kelana Jaya line is 17km and for the Ampang line 17.7km. Both extensions will see an additional 13 stations.

Construction work on the Penang Sentral Integrated Transport Hub in Butterworth is expected to begin next month, according to developer Malaysian Resources Corp (MRCB). MRCB executive director, Datuk Ahmad Zaki Zahid, said the company has solved all the land issues and the project could proceed as usual. "The first phase of the project is expected to be completed before 2013," he told a media briefing yesterday The hub, a component project of the Northern Corridor Economic Region, would be undertaken by a joint-venture between MRCB and Pelaburan Hartanah Bumiputra .  It was earlier reported that the first phase would be delayed due to some land issues.  Ahmad Zaki said the actual cost of the project was expected to increase to RM2.7bn

MAS posted operating profit of RM122.7 million for the third quarter ended Sept 30 (3Q2010) compared with an operating loss of RM77.4 million a year ago, which lifted the nine-month financial period solidly into the black. For the 3Q2010, the significant improvement was mainly due to higher operating revenue and improvement in its yield.

PROTON saw its earnings decline 19.6% to RM65.92 million in the second quarter ended Sept 30, 2010 from RM82.06 million a year ago, due to  one-off provision for stock obsolescence and branding cost. It said on Thursday, Nov 25 revenue was 6.6% higher at RM2.24 billion compared with RM2.10 billion. Earnings per share were 12 sen compared with 14.9 sen. Its net asset per share was RM9.83. Group profit before tax was RM81.26 million, a decline of 19% from RM100.65 million a year ago.

YTL Corp Bhd reported a 34.3% increase in its earnings at RM278.9 million for the first quarter ended Sept 30 from RM207.5 million a year ago, boosted by the strong performance in its major operating companies.

 

FBMKCLI: 1488.54 DJ+150.91 CRUDE OIL 83.97 RM 3.103

Stocks ended Wednesday on a positive note after a batch of economic reports offered hope that the U.S. economy was improving. Incomes rose last month and consumer spending climbed for a fifth month. That raised hopes that shoppers will hit the malls in droves the day after Thanksgiving, the start of the holiday shopping season.

Masteel, the country's third largest steel bar maker by market share, may see revenue hitting the RM1 billion mark this year on the back of robust demand for steel billets and bars as well as firm selling prices, said its managing director cum CEO Datuk Sri Tai Hean Leng.

MISC Bhd posted a jump in net profit to RM369.4mil for the second quarter ended Sept 30, 2010 against RM82mil a year ago due to improved performance in the restructured liner business and increased profitability in the heavy engineering business.

MMC Corp Bhd’s net profit for the third quarter ended Sept 30 surged 32% to RM117.8mil from RM88.7mil a year ago due to better performance from some divisions.

Axiata Group Bhd posted a 27% increase in net profit to RM639.13mil for the third quarter ended Sept 30, 2010 from RM503.66mil a year ago, driven by positive net profit contribution from Dialog Axiata Plc and Robi Axiata Ltd.

Sunway Holdings and SunCity will be merged under a proposed exercise undertaken by Sunway Sdn Bhd, which is controlled by Tan Sri Jeffrey Cheah Fook Ling. This would involve  RM4.5 billion in cash and share swap. The exercise entails Newco offering RM2.60 per Sunway share, RM1.50 per Sunway warrant and RM5.10 per SunCity share and RM1.29 per SunCity warrant.  

Naim Holdings’ earnings jumped 72% to RM36.94 million in the quarter ended Sept 30, 2010 from RM21.39 million a year ago mainly due to higher sales of PROPERTIES and substantial completion of certain CONSTRUCTION projects.

KNM Group Bhd saw its third quarter bottomline improve by 75% to RM56.09 million from RM31.92 million a year ago. Pre-tax profit was RM41.03 million while there was also tax incentive of RM19.54 million.

Bina Puri Holdings is teaming up with a Chinese association to develop a two acre site in Jalan Pasar, which guarantees investment return of RM40.6 million in 14 years.

Bina Puri will be investing RM16.0 million which is the estimated construction cost.

PLUS Expressways Bhd’s net profit for the third quarter ended Sept 30 rose 12% to RM349.7mil from RM311.6mil a year ago. The increase was primarily due to higher toll revenue mitigated by higher finance costs as well as amortisation and depreciation charges.

FBMKLCI 1487.53 DJ -142.21 CRUDE OIL: 81.23 RM: 3.081

Stocks fell Tuesday as a flare-up of tensions between North and South Korea combined with downbeat news on the economy gave investors plenty of reasons to sell ahead of the Thanksgiving holiday. The dollar and gold rose as investors sought safe places to park money. 

  

MRCB and IJM Land Bhd yesterday announced their proposed merger exercise, which will create the country's second largest property player after the enlarged UEM Land Holdings Bhd, with a market capitalisation exceeding RM7 billion and a land bank of over 9,000 acres. 

Market observers are speculating that a “marriage” of sorts is on the cards for SunCity and Sunway Holdings Bhd, after both companies had their shares suspended from trading for two days from yesterday, pending a material announcement on a corporate exercise. 

Gadang Holdings Bhd is bidding for several engineering and construction projects totalling more than RM2 billion and the company anticipates stronger earnings for the financial year 2011 ended May 31.

LionInd’ 1QFY11 net loss of RM18.8m. The poor results were mainly attributed to the arrival of expensive feed material, namely iron ore and scrap metal, which were mismatched with weakening selling prices.

Parkson Holdings announced that it is selling its 100% equity interest in Shantou Parkson to its 51.5% owned subsidiary - Parkson Retail (PRG).

Msports 9MFY10 earnings of RM49.2m. Production volume increased by 34% to 23.4m in 9MFY10 while average selling price improved by 4.4% to RMB18.9 per pair, mainly driven by the higher demand for EVA MD products.

MPHB posted net profit of RM86.49 million in the third quarter ended Sept 30, up 70% from RM50.73 million a year, boosted by its gaming and stockbroking operations. Revenue was 4.6% higher at RM850.7 million compared with RM813.24 million a year ago.

MUDAJAYA GROUP BHD net profit rose 31.8% to RM46.55 million for the third quarter ended Sept 30, 2010 from RM35.32 million a year ago, mainly due increased level of activities.

South Korea scrambled fighter jets to North Korea

By Bomi Lim
    Nov. 23 (Bloomberg) -- South Korea scrambled fighter jets and returned fire after North Korea lobbed dozens of shells into its territory, injuring four soldiers, Yonhap News reported.
    A South Korean Defense Ministry official, who declined to be identified, confirmed the shelling, without giving any further details. The military has been put on high alert and will “respond strongly” to further provocation, he said.
    Tensions with nuclear-armed North Korea have risen this year following the sinking of a South Korean warship in March that the U.S. and its allies blamed on a torpedo attack. President Barack Obama dispatched his envoy on the country, Stephen Bosworth, to Asian capitals this week after reports by a U.S. scientist that North Korea had revealed to him a “stunning” new uranium-enrichment plant.
    The yen and Korean won weakened against the dollar, U.S. stock futures fell and Treasury futures rose as investors sought safe-haven investments following the report.
    South Korean President Lee Myoung Bak called an emergency meeting, his office said.

   The visit by to the nuclear plant this month by Stanford University professor Siegfried S. Hecker showcased technological advances that highlight the failure of sanctions to force Kim Jong Il’s regime back to disarmament talks.
    “The control room was astonishingly modern,” Stanford University professor Siegfried S. Hecker wrote in his Nov. 20 report of the visit eight days earlier to the main reactor site at Yongbyon. “We saw a modern, clean centrifuge plant of more than a thousand centrifuges,” he said, a reference to the high- speed spinning devices that enrich uranium.