FBMKLCI 1508.99 DJ+29.97 CRUDE OIL 89.09 RM 3.011

Most emerging equity markets in Asia have been experiencing sell-downs in recent weeks with foreign funds shifting their money to the more matured markets even as inflation in the region becomes more of a concern. Extreme weather conditions in most parts of food-producing countries such as Russia, Latin America, Australia and China have kept food grain prices at historical high levels globally, pushing inflation levels up. And emerging markets especially those in Asia, where grains are consumed the most, have been most affected.

Favelle Favco secured RM123.20 million in contracts to supply eight cranes which would be delivered to eight buyers from early this year to 2012. The crane builder said it expected the contracts to contribute positively to the earnings and net assets for the financial year ending Dec 31, 2011 and beyond.

MBM Resources' net profit for the fourth quarter (4Q) ended Dec 31, 2010 rose 36.2% to RM28.2 million from RM20.7 million a year ago, driven by the overall strong total industry (TIV) volume in the automotive sector. Revenue for the quarter rose to RM389.88 million from RM292.46 million in 2009. Earnings per share was 11.64 sen, while net assets per share was RM4.19.  It declared a special second tax-exempt interim dividend of five sen per share totaling RM12.13 million, and a special tax-exempt dividend of three sen per share totaling RM7.28 million. For the financial year ended Dec 31, MBM's net profit surged to RM141.24 million from RM66.53 million a year earlier, on the back of revenue RM1.55 billion.

Wah Seong’s earnings fell 28.9% to RM24.76 million in the fourth quarter ended Dec 31, 2010 from RM34.84 million a year ago due to the lower number of projects and unfavourable effect of foreign exchange fluctuations. Revenue fell 12.7% to RM397.23 million from RM455.07 million while earnings per share were 3.2 sen compared with 4.5 sen. It proposed dividend of 2.5 sen per share. For the financial year ended Dec 31, 2010, the net profit fell 53.8% to RM55.98 million from RM121.32 million in FY09. Revenue fell 21.9% to RM1.523 billion from RM1.950 billion.

Daibochi declared a fourth interim dividend of 3.50 sen, tax exempt, to be paid on March 30.

SBC Corp Bhd posted net profit of RM6.81 million in the third quarter ended Dec 31, 2010 when compared with RM2.02 million a year following higher revenue from its CONSTRUCTION [] projects.

Revenue climbed 95% to RM54.80 million from RM28.03 million while earnings per share were 8.26 sen versus 2.45 sen a year ago.

FBMKLCI 1506.30 DJ+61.52 CRUDE OIL 88.15 RM 3.022

Petronas Dagangan Bhd net profit rose 26% to RM236.2mil in the third quarter ended Dec 31, 2010 from RM187.2mil in the same period last year on lower operating expenditures.

 

AirAsia may get new A320s only after 2016
PETALING JAYA: Low-cost carrier AirAsia Bhd will likely only take delivery of new, more fuel-efficient Airbus 320 planes after 2016, according to analysts, commenting on news reports from Paris that it was in talks with aircraft manufacturer Airbus SAS to buy upgraded A320 planes.

 

IOI Corp Bhd’s net profit rose 12.8% to RM520.2mil in the second quarter ended Dec 31, 2010 compared with RM461.2mil in the previous corresponding period mainly on higher contribution from its plantation and property divisions. Revenue was RM3.97 billion compared to RM3.06 billion in 2009, while earnings per share was 8.15 sen. Net assets per share was RM1.73. IOI Corp declared an interim single tier tax-exempt dividend of 80% or 8.0 sen per ordinary share of 10 sen each in respect of the financial year ending June 30, 2011. In the 2Q ended Dec 31, 2010, total fair value losses on derivative contracts recognised were about RM73 million. For the six months ended Dec 31, IOI Corp net profit rose to RM1.02 billion from RM939.59 million, on the back of revenue RM7.49 billion. IOI Corp’s plantation segment reported a 14% increase in operating profit to RM363.7 million for 2QFY2011 as compared to RM319.9 million a year ago.

Dialog’s earnings rose 25.7% to RM35.99 million in the second quarter ended Dec 31, 2010 from RM28.63 million a year ago, due mainly to higher contribution from its engineering and CONSTRUCTION [] and plant maintenance activities in Malaysia and Singapore. Revenue slipped 2.5% to RM268.53 million from RM275.57 million in 2009. Earnings per share were 1.84 sen while net assets per share were 26.3 sen.

For the six months, earnings rose 24.3% to RM69.09 million from RM55.56 million. Revenue declined 8.9% to RM532.33 million from RM584.42 million.

Amway’s net profit rose 12.5% to RM18.32 million in the fourth quarter ended Dec 31, 2010 from RM16.28 million a year ago, year mainly due to the increase in sales revenue. Revenue rose to RM184.1 million from RM171.89 million mainly due to an increase in the distributors’ productivity after implementing the sales and marketing programme, effort index adjustment and the distributor price increase implemented in first half of the year. Earnings per share were 11.14 sen while net asset per share was RM1.28. It declared a fourth interim single tier dividend of 9.0 sen net per share. For the financial year ended Dec 31, 2010, it posted net profit RM78.32 million on the back of revenue RM719.41 million.

Green Packet Bhd posted net loss of RM77.68 million in the fourth quarter ended Dec 31, 2010, which was lower compared with the RM100.71 million a year ago. Revenue rose 58% to RM116.25 million from RM73.54 million, loss per share was 11.8 sen compared with 15.3 sen. However, the loss from continuing operations were RM100.11 million compared with RM103.82 million a year ago. For FY10, it managed to reduce its net loss to RM134.97 million from RM182.64 million in FY09, while revenue increased 80.8% to RM393.97 million from RM217.81 million. Loss from continuing operations increased to RM209.67 million from RM187.41 million in FY09. Green Packet’s total group accumulated losses increased to RM274.67 million as at Dec 31, 2010 from RM196.53 million as at Sept 30, 2010.

Airports operator Malaysia Airports Holding Bhd’s net profit fell 29% to RM100.04 million for the fourth quarter ended Dec 31, 2010 from RM140.97 million a year ago. MAHB said the decline was mainly due to the adoption of FRS 139 resulting in the higher share of losses in an associate company. However, the concession payable by the associate company was recognised at fair value and subsequently at amortised cost. Gains and losses arising from the changes in the fair value were recognised in the income statement.

Its 4Q revenue rose to RM494.37 million from RM476.84 million a year ago, while earnings per share were 9.15 sen. Net assets per share was RM2.99.

ZELAN BHD  recorded negative revenue from its continuing operations in Indonesia totaling RM39.2 million in the third quarter ended Dec 31, 2010 and warned of more losses in the current fourth quarter.

Explaining the negative revenue, Zelan said this was due to a reversal made on the revenue recognised earlier as a result of additional foreseeable losses for the Indonesian project. It said net losses for the 3Q were RM41.29 million compared with RM60.38 million. Loss per share was 7.33 sen versus 10.72 sen.

“The group recorded a loss after tax from continuing operations of RM40.5 million as compared to RM64.4 million losses in the preceding year’s quarter,” it said.

Tambun Indah had proposed to acquire three companies for RM11.6 million, which would increase the group’s GDV by RM245 million to RM1.4 billion to last till 2016. “The group expects contributions of RM38.7 million in pre-tax profits over development period from FY2011 to FY2014,” it said.

FBMKLCI 1505.33 DJ-41.55 CRUDE OIL 87.87 RM 3.087

IGB Corp Bhd posted RM53.09 million in net profit for the fourth quarter ended Dec 31, 2010 compared with RM31.14 million a year ago while revenue was RM215 million compared with RM166.31 million. For FY10, the earnings rose to RM174.32 million from RM158.98 million while revenue was also higher at RM720 million versus RM642.44 million. IGB Corp Bhd's move to dispose of Mid Valley City Gardens Sdn Bhd (MVCG) to its 75%-owned KrisAssets Holdings Bhd is not entirely a surprise move as IGB has made its intention known for a while.

MPHB has temporarily shelved its preliminary plans to relist Magnum Holdings Bhd after making a RM1.66 billion offer to buy the 49% stake in the latter. It said the proposal has been on hold for the time being. Credit Suisse Research said in a recent report the transaction (if successful) would be earnings accretive for MPHB as it would control 100% of Magnum, compared to 51% currently. “According to reported 9M10 results of MPHB, its gaming division (Magnum) generated pre-tax profits of RM275 million compared to RM185 million in 9MFY09, an increase of 49% on-year. Annualising this suggests full-year pre-tax profits of RM360 million and net profits of RM270 million, implying a 2010 P/E of 12.4 times. If Magnum grows in line with the Malaysian economy, which is in line with our assumption for BToto, net profits could be as much as RM284 million in FY11E,” it said. Credit Suisse said the deal values Magnum at 12.4 times 2010 PE and 11.8 times 2011E PE, compared to BToto's calendarised 2011E PE of 17.3 times.

Ramunia, a recent filing showed Ramunia Energy & Marine Corp Sdn Bhd disposing of eight million shares on Feb 9 in a direct deal, reducing its direct stake to 69.62 million shares or 10.5%.

Supermax Corp Bhd saw its earnings decline by 24.8% from RM43.54 million to RM32.72 million in the fourth quarter ended Dec 31, 2010 due to the continuous high latex prices and unfavourable exchange rates. Its revenue rose 18.4% from RM196.42 million to RM232.67 million. Its earnings per share were 9.62 sen versus 16.22 sen

The Malaysian Rubber Board (MRB) expects the natural rubber (NR) market to continue to chart new highs, at least in the first half of this year, on continued strong demand from China and India as well as declining output from major rubber-producing countries. On Monday, tyre-grade SMR 20 posted a new high of RM17.27 per kg while latex-in-bulk hit RM10.66 per kg. Director-general Datuk Dr Salmiah Ahmad told StarBiz that the challenge for 2011 would still be tackling a consumption-exceeding-supply situation. This is followed by the still sluggish US economy, continuing worries over sovereign risk in the euro-area and uncertainty over the Chinese government's measures to cool inflation and the economy. Export earnings from the rubber sector continued to expand by 34.8% to RM33.7bil in 2010 from RM25bil in 2009, thanks to the favourable economic growth primarily driven by the emerging and developing economies. Of the total value exported, RM12.3bil was contributed by the export of rubber products while raw rubber, other rubbers and heveawood products provided RM9.5bil, RM4.3bil and RM7.6bil respectively. “The rubber sector in fact contributed about 5% to the country's export earnings,” Salmiah said. “The contribution of the industry is much higher if we consider its spin-offs and multiplier effects on the Malaysian economy.

FBMKLCI 1494.52 DJ+43.97 CRUDE OIL 89.20 RM 3.01

Rimbunan Sawit Bhd’s subsidiary, R.H. Plantation Sdn Bhd is buying 4,857 hectares of oil palm plantation in Niah for RM118 million.  It had entered into a memorandum of understanding with Sheba Resources Sdn Bhd to purchase the land. Sheba Resources is the registered owner of the land which has been charged to Agro Bank Malaysia Bhd for RM145.69 million.

Latexx Partners Bhd, Lembaga Tabung Haji acquired 2.69 million sahres on Feb 7 to 9, raising its shareholding to 6.97% or 15.38 million shares.

AIRASIA BHD [] has signed an agreement with Airbus S.A.S to revise the delivery dates of 10 Airbus A320 aircraft from 2012 to 2015. The move was to allow some flexibility to switch from its current order of the classic A320 to a new generation A320 aircraft which is more fuel efficient when such aircraft come into production in the near future. With the deferment, the delivery of 24 aircraft in 2012 would be reduced to 14 aircraft, while the number of deliveries in 2015 will be increased from nine aircraft to 19 aircraft, it said.

FBMKLCI 1503.99 DJ-10.60 CRUDE OIL 87.61 RM 3.07

Dayang Enterprise Holdings Bhd’s (DEHB) wholly owned subsidiary Dayang Enterprise Sdn Bhd (DESB) has received a contract worth RM802mil from Petronas Carigali Sdn Bhd.

MTD Capital Bhd's shares staged a rally after a consortium of firms announced that it has raised its takeover offer for the company to RM11 per share from RM9.50 previously. The counter closed 42 sen higher at RM10.94 to become the second biggest gainer of the day. Its intra-day high of RM10.96 was also its all-time high. Year-to-date, the stock has gained more than 13%.

Contrary to wide market expectations, Multi-Purpose Holdings Bhd (MPHB)'s plan to relist its numbers forecast operator (NFO) Magnum Corp Bhd has been put on hold, as the company shifts its focus to reformatting its business structure. “There is no plan to relist Magnum for the time being,” MPHB managing director Datuk Surin Upatkoon said in reply to a StarBiz query. MPHB shares resumed trading yesterday after being suspended since Monday. The counter ended the day at RM2.67, a tad lower than its previous close of RM2.68.

Integrax  is selling the entire 70.31% stake in its Indonesian subsidiary PT Indoexchange Tbk to Equatorex Sdn Bhd, a company controlled by Integrax's chairman and joint CEO Harun Halim Rasip.

EPIC reported earnings of RM14.87 million in the fourth quarter ended Dec 31, 2011, a 55.4% increase from the RM9.56 million a year ago underpinned by an increase in port operations and oil and gas activities. Revenue rose 7.6% to RM53.31 million from RM49.54 million a year ago. Earnings per share were 8.77 sen compared with 5.65 sen a year ago. For the financial year ended Dec 31, 2010, EPIC’s earnings rose 25% to RM52.84 million from RM42.14 million while revenue climbed 28% to RM235.136 million from RM183.46 million. It has cash of RM98.58 million as at Dec 31, 2010 but its trade and other receivables were RM57.56 million.

FBMKLCI 1536.07 DJ+6.74 CRUDE OIL 86.80 RM 3.003

Multi-Purpose Holdings Bhd (MPHB) is a step closer to the possible relisting of Magnum Corp Bhd on Bursa Malaysia, following a deal that would give it full ownership of the gaming outfit. In an announcement to Bursa Malaysia yesterday, MPHB said it had entered into a memorandum of understanding (MoU) with several parties to acquire the balance 49% stake it did not already own in Magnum Holdings Sdn Bhd, the investment holding firm whose subsidiaries are principally involved in the operation of four-digit numbers forecast betting games.

Green Packet Bhd has signed an agreement with Time Warner Cable, the second largest cable operator in the United States, to provide its next generation connection management solutions. Time Warner Cable would use customised versions of Green Packet's Intouch connection manager, Intouch reporting server and Intouch update server for its Windows and Mac platforms, it said in a statement.

MRCB’s earnings surged 230% to RM41.50 million for the fourth quarter ended Dec 31, 2010 from RM12.41 million a year ago, boosted by improved profit margin and property development projects. Revenue rose 53.7% to RM433.12 million from RM281.67 million. It proposed a dividend of 1.5 sen per share. For the financial year ended Dec 31, 2010, its earnings jumped 94% to RM67.27 million from RM34.62 million. Revenue rose to RM1.967 billion from RM921.62 million. Its cash and cash equivalents rose to RM487.27 million from RM232.57 million.

MTD Capital’s subsidiary MTD Manila Expressways Inc can proceed with the implementation of its 290% toll rate hike along the South Luzon Expressway in the Philippines after a motion seeking to restrain the hike was rejected by the Philippines Supreme Court. Its subsidiary’s legal counsel had on received a resolution dated January 11 from the Court which denied a petition for the issuance of a temporary restraining order (TRO) and/or status quo to restrain the implementation of the toll rate hike of 3.024 pesos or 22 sen per km initial toll rate hike.

Coastal Contracts’ units have secured contracts for the sale of 12 vessels for an aggregate value of RM268 million, increasing its total sales to RM760 million up to 2012.The contracts were for the sale of seven offshore support vessels (OSV), three tugboats and two oil barges for an aggregate value of approximately RM268 million. Including the new contracts, Coastal Group now has about RM760 million worth of vessel sales orders awaiting delivery to customers up to 2012.

Genting Bhd saw RM1.26 billion erased from its market capitalisation on Wednesday, Feb 9, extending its three-day losses on concerns of a decline in VIP customers to Resorts World Sentosa integrated resorts. Genting fell 34 sen to RM10.40, the lowest since Dec 20, with 11.98 million shares done.

Tanco Holdings Bhd said it was unaware of any development that has led to the high daily trading volume of its shares except for an ongoing negotiations with Lehman Brothers Commercial Corp Asia Ltd. On Jan 17, a local daily reported that Tanco had proposed a debt settlement agreement with Lehman.

In a reply to Bursa Malaysia query on the unusual market activity, Tanco said it was unable to disclose the significance of the agreement. “However, should we reach an agreement with Lehman, we will make the appropriate announcement to Bursa.”

FBMKLCI 1539.55 DJ+71.52 CRUDE OIL 87.48 RM 3.003

Multi-Purpose Holdings Bhd (MPHB) will be announcing a major acquisition today, reliable sources said, although speculation is rife that the company could also be announcing the re-listing of its gaming subsidiary Magnum Corp Sdn Bhd. 

Tabung Haji, Mara in medical ventureIt is understood that Lembaga Tabung Haji and Majlis Amanah Rakyat (Mara) are expected to end up with a total of 45% equity stake in the newly-established Academic Medical Centre Sdn Bhd (AMC) that has a tie-up with world renowned Johns Hopkins Medicine International and Royal College of Surgeons (RCSI) in Ireland to offer courses at the soon to be set up RM2bil Perdana University Graduate School. Tabung Haji is likely to end up with 30% stake while Mara 15% in AMC. The remaining 55% equity will be held jointly by two companies controlled by businessman Tan Sri Dr Mohan Swami (pic). The two companies are Turiya Bhd and Chase Perdana Sdn Bhd.

On Tuesday, HWGB and its warrants, which fell in active trade after surging on Monday, accounted for more than 115 million units transacted. HWGB fell 15.5 sen to 77.5 sen and HWGB-WB lost 15.5 sen to 74 sen as traders sold on news about its proposed tin mining operations.

PJI secured a RM55.89-million sub-contract from IJM CONSTRUCTION [] Sdn Bhd for a college in Kedah. PJI said its unit P.J. Indah Sdn Bhd had received the letter of award from IJM for the mechanical and electrical services of Kolej Universiti Insaniah’s permanent campus.

KENCANA PETROLEUM BHD []’s 166.69 million new shares were placed out at RM2.38 each and raised gross proceeds of RM396.7 million. The issue price of RM2.38 was a discount of about 1.65% to the closing market price of RM2.42 on Jan 25.

FBMKLCI 1540.62 DJ+69.48 CRUDE OIL 87.47 RM 3.009

Fraser & Neave Holdings Bhd posted a jump in net profit to RM107mil in its first quarter ended Dec 31, 2010 from RM77.7mil a year ago, on account of higher revenue and tax incentives enjoyed by its dairy plant in Rojana, Thailand.

The world’s largest synthetic glove manufacturer Hartalega Holdings Bhd posted slightly higher net profit of RM49.2mil for the third quarter ended Dec 31, 2010 from RM37.2mil a year ago, while its revenue rose to RM188.1mil from RM148.6mil.

Maxbiz Corp Bhd will hold an EGM in Kuala Lumpur on Feb 23 on the proposed removal of its auditors Gomez & Co with immediate effect and proposed appointment of STYL Associates as auditors for the financial year (FY) ended Dec 31, 2010, it told Bursa Malaysia yesterday.

Iris Corp is venturing into industrialised building system (IBS) via a joint venture with a joint venture with Koto Malaysia Sdn Bhd and Ambitech Sdn Bhd. Iris said it planned to develop the Koto IBS for mass building projects in Peninsular Malaysia. “Koto IBS is an alternative way to mass manufacture energy efficient housing, commercial buildings, high-rises and affordable housing.

Ireka secured a RM27.58-million contract to build the structure for the proposed City International Hospital in Ho Chi Minh City, Vietnam. It was awarded the contract by Hoa Lam-Shangri-La Healthcare Ltd Liability Co. The contract works are expected to be completed by Sept 30, 2011.“The contract is expected to contribute positively to the earnings of the Ireka group for the financial year ending March 31, 2012,” it said.

KENCANA PETROLEUM BHD  plans to finance the US$200 million required to jointly develop and operate the Berantai oil and gas field through an equity/debt fund raising exercise. “The detailed breakdown between the various sources of funding has yet to be determined at this juncture, pending completion of the company’s proposed fund raising exercises in its entirety,” it said on Monday, Feb 7, in response to a query by Bursa Malaysia.

SAPURACREST PETROLEUM BHD informed the stock exchange that it was in discussions with a leading local bank to secure the necessary funding to part-finance its unit, Sapura Energy Venture’s contribution to the cost of development of the Berantai field.

FBMKLCI 1521.89 DJ-166.13 CRUDE OIL 90.30 RM 3.02

New stock listing

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

1.      5195                  CENSOF            0.93                         0.63                  4.65

 

 

Century Software issued 23 million new shares of 10 sen each at an offer price of 93 sen each. Kenanga Research has a target price of RM1.43. Kenanga Investment Bank Research said following a recent meeting with Century Software, it is convinced that the group is set for greater growth. “We have upgraded our FY10, FY11 and FY12 earnings estimates to RM10.9 million, RM19.1 million and RM25.3 million, respectively. We value Century Software at 12.9 times PER to its FY11 EPS of 11.1 sen, hence we pegged our 12-month target price at RM1.43,” it said.

DiGi.com posted earnings of RM332.02 million in the fourth quarter ended Dec 31, 2010 compared with RM246.5 million a year ago. The earnings growth was underpinned by increased usage from an enlarged subscription base, inclusion of handset bundles plus rising revenue contributions from data services. 

FBMKLCI 1526.96 DJ+4.39 CRUDE OIL 85.29 RM 3.02

Taliworks Corp Bhd will seek a new partner for a RM374.7mil waste-water treatment project in Yinchuan City, China, after its original partner allegedly defaulted on its obligation. Taliworks said it had, on Tuesday, received a letter from the Yinchuan City Waste Water Treatment Co Committee indicating that both Taliworks and Beijing Puresino-Boda Environmental Engineering Co Ltd (BODA) had yet to formalise the joint-venture (JV) company, in which Taliworks would have a 70% stake, to undertake the project.

Integrax Bhd and its unit Pelabuhan Lumut Sdn Bhd (plaintiffs) have filed a legal suit against Integrax executive director Amin Halim Rasip, alleging that he had breached his fiduciary duties and demanding that he pay for damages arising from the alleged breach. The port operator told Bursa Malaysia yesterday it was also seeking an order that Amin be restrained and an injunction be granted, restraining him from acting or in any way whatsoever holding himself out as director and/or co-chief executive officer of the plaintiffs. The company is also seeking an order that Amin be restrained and an injunction be granted, restraining him from interfering in any way whatsoever in the management of Integrax and Pelabuhan Lumut.

oil and gas players after Petronas, for the first time ever, announced its decision to  develop marginal oilfields to boost Malaysia's oil production. The development of the initial four clusters will be via service contracts and not the normal production sharing contracts (PSCs). The Edge FinancialDaily reports interest in oil and gas stocks may spill over to the sector’s laggards which have yet to catch up with the rally in the broader industry and which observers say could somehow benefit when the flow of investments accelerates in the sector.

 

Benalec is acquiring two handysize bulkcarriers for US$6.8 million (RM20.75 million) to expand its fleet to transport sand for land reclamation activities. It said the acquisitions are to facilitate the expansion of Benalec group’s fleet of vessels, in particular vessels for transporting of sand for land reclamation activities.

Perisai has proposed to acquire a 51% stake in Intan Offshore Sdn Bhd for RM45.23 million via new shares. With the acquisition, Perisai Group will enhance its ability to compete in the vessel supply and chartering business while gaining access to new revenue streams around the region.

FBMKLCI 1520.00 DJ+8.25 CRUDE OIL 87.55 RM3.02

Kencana Petroleum Bhd's private placement of 166.7 million shares of 10 sen each via its book-building exercise has been completed. The issue price that has been fixed at RM2.38 each would result in gross proceeds of about RM397.6mil. The issue price represented about 1.65% discount to the closing price of Kencana shares on Jan 25 of RM2.42. It is believed that the shares were oversubscribed by 3.5 times.

Infrastructure builders Muhibbah Engineering (M) Bhd in consortium with Perunding Ranhill Worley Sdn Bhd has been awarded a RM1.07bil contract by Petronas Gas Bhd for works under its LNG regasification project. Muhibbah told Bursa Malaysia yesterday that the consortium received the contract for the engineering, procurement, construction, installation and commissioning alliance for the LNG regasification unit, island berth and subsea pipeline of the LNG regasification project.

SapuraCrest Petroleum Bhd, an integrated oil and gas service provider, said its wholly-owned unit received a letter of award for works valued at US$31.5mil from Petronas' subsidiary PC Myanmar (Hong Kong) Ltd.

The company told Bursa Malaysia yesterday that its unit TL Offshore Sdn Bhd received an award letter dated Jan 19 for the provision of transportation and installation of offshore facilities for PC Myanmar's Yetagun Phase 4 development at the Andaman Sea.

C.I. Holdings Bhd net profit for the second quarter ended Dec 31, 2010 rose 43% to RM11.27mil from a year ago mainly due to further economies of scale and prudent cost management.

Fraser & Neave Holdings Bhd's (F&N) foray into property development paid off well when it recently sold the second phase of Fraser Business Park in Pudu for RM63 million, which netted the group a gain of RM29.6 million.

The Edge FinancialDaily also reports the recent sharp rise in cocoa prices has brought a windfall for GUAN CHONG BHD [], which had earlier stocked up on the soft commodity at substantially lower prices. The company's profit margin has already widened substantially to 6.7 pct for the nine-month period ended Sept 30, 2010, from 1.8 pct in the previous corresponding period.

FBMKLCI 1526.43 DJ-3.33 CRUDE OIL 86.44 RM 3.03

THE stock market's main benchmark suffered its second double-digit drop in four trading days, wiping out all of its gains so far this year. The FTSE Bursa Malaysia KLCI fell 16.54 points to 1526.43 points. Yesterday's close was 0.46 per cent lower than the new year's first day close of 1533.42 points. The benchmark index closed at a record of 1574.49 points last Monday. Maybank Investment Bank Bhd's head of retail research Lee Cheng Hooi said the blue chip index could fall to as low as 1525 points. "The market is sluggish, and some funds are getting out a bit," said Lee, adding traditionally buying interest will come back after the Chinese New Year (CNY) holidays. The market will still have to breach the 1576 level to sustain a rise. Lee said the research house has a year end 1710 target.

Ann Joo Resources Bhd has entered into a share sale agreement to acquire a 38% stake in Anshin Steel Processor Sdn Bhd, at a cash consideration of RM2.10 per share worth RM11.970mil.

Berjaya Food Bhd’s admission to the stock exchange has been approved by Bursa Securities in the “trading/services” sector of the Main Market. A filing by AmInvestment Bank Bhd on behalf of Berjaya Corp Bhd’s board said the stock exchange regulator had, vide a letter dated Jan 24, approved the admission of Berjaya Food together with the listing of and quotation for the entire enlarged issued and paid-up share capital of the company of RM70.67mil comprising 141.34 million 50 sen shares.

South Korea’s Honam Petrochemical Corp has invoked Section 222 of the Capital Markets & Services Act, 2007 (CMSA) to compulsorily acquire all the remaining 7,185,762 shares of Titan Chemicals Corp Bhd for which acceptances have not been received. “To this end, a notice pursuant to Section 222(1) of the CMSA in relation to the compulsory acquisition has been sent by Honam to all the holders of the remaining offer shares,” Titan said in a note to Bursa yesterday.

Public Bank Bhd has reported a record net profit of RM846.19mil, or 24.16 sen per share, for its fourth quarter ended Dec 31, 2010.

Perusahaan Otomobil Kedua Sdn Bhd (Perodua), which has been adamant against merging with rival Proton Holdings Bhd, would have let off a sigh of relief after news broke that the Government will not force the two national car companies to merge. Minister of International Trade and Industry Datuk Seri Mustapa Mohamed said yesterday the Government will not force through a merger of both car companies and any solution or proposal needs to be agreed to by both stakeholders. “We cannot force them to make a decision as there is a long spectrum. At one end is loose cooperation and at the other, a merger, which has yet to be decided,”

Oilcorp Bhd, via its 51%-owned indirect subsidiary Oilfab Sdn Bhd, has accepted an offer from Ramunia Holdings Bhd to acquire the Pulau Indah Integrated Fabrication Yard for RM83.8mil.

Major shareholders of port operator Integrax Bhd have called for the removal of the company’s executive director Harun Halim Rasip and director Datuk Onn Hamzah.

MALAYSIAN PACIFIC INDUSTRIES Bhd (MPI) posted marginally lower earnings of RM25.29 million in the second quarter ended Dec 31, 2010 when compared with RM25.71 million a year ago. Its revenue increased 6% to RM367.59 million versus RM345.57 million.  Its earnings per share were 13.05 sen compared with 13.19 sen a year ago. MPI said the pretax profit of RM34.84 million against RM33.06 million a year ago, despite the higher revenue was mainly due to the strengthening ringgit against the US dollar.

FBMKLCI 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 1574.49 CRUDEOIL 90.87 RM 3.03

New stock listing

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

1.    5191               TAMBUN           0.70                             0.40                3.50

 

 

Tambun Indah’s  IPO consists of a public issue of 32 million new ordinary shares and an offer-for-sale of 22.1 million vendor shares at 70 sen each. BIMB Securities Research derived a fair value of 81 per share after pegging a 30% discount to its peers' three-year average price-to-earnings ratio of 9.8 times to FY11 EPS of 11.8 sen.

PLUS Expressways Bhd's board of directors, save for the interested directors, has deemed the UEM Group Bhd-Employees Provident Fund's (EPF) RM23bil takeover offer as a “confirmed offer.” It told Bursa Malaysia yesterday that the board had decided to proceed with the adjourned EGM for its non-interested shareholders to consider the disposal of its entire business and undertaking to UEM-EPF, and the proposed distribution of the cash proceeds to all entitled shareholders via a proposed special dividend and selective capital repayment.

 

The steel sector is poised for a re-rating as it will benefit from the massive construction of the mass rapid transit (MRT) system but rising material costs remains a huge risk to the sector. Hwang DBS issued a report on the sector yesterday saying all steel companies would benefit as a result of the MRT project, which is estimated to cost more than RM36bil, making it one of the largest construction projects undertaken in the country. “Construction work for the MRT, which is targeted to start in July, should spark demand momentum and improve steel prices,” HwangDBS said in the report.
Amin Halim Rasip has filed an originating summons for his brother Harun Halim Rasip to perform a settlement agreement in relation to a shareholding split in Integrax Bhd, which would result in 51.51 million Integrax shares transferred to Amin. According to the court document filed by Amin and Nor'aini Hashim this month, it is claimed that Harun and his wife Rozia Hanis Tun Hussein have breached the settlement agreement by failing or refusing to complete and effect the transfer of 51.51 million shares in Integrax held by Halim Rasip Holdings, Jurukapal Marine and/or Lekir Group to Amin and Nor'aini. It is learnt that the shareholding split based on the settlement agreement would result in Amin owning an 18% stake.

Everest Hectare Sdn Bhd acquired 50.02% stake in apparel retailer Hing Yiap Group Bhd for RM31.3mil or RM1.50 per share in cash yesterday and subsequently launched a unconditional takeover offer to buy the remaining shares it did not already own. Hing Yiap in its filing to Bursa Malaysia yesterday said Everest Hectare had acquired about 20.9 million shares of RM1.50 each in Hing Yiap via an unconditional share sale agreement entered into with Chi Kuei Yung Sdn Bhd, Chi Oi Meng, Khoo Henn Kuan and Khoo Henn Kiew.

In IOI Corp Bhd, the PLANTATION [] heavyweight had redeemed the US$440.77 million of the outstanding US$444.87 million bonds. The balance of bonds outstanding is US$4.10 million.

FBMKLCI 1571.56 DJ-23.54 CRUDE OIL90.92 RM 3.03

Suria Capital Holdings Bhd's wholly owned subsidiary SCHB Engineering Services Sdn Bhd and its consortium partners have been awarded a RM1bil engineering, procurement, construction and commissioning (EPCC) contract for a power plant project in Sabah. The contract from Kimanis Power Sdn Bhd involves the construction of a 300MW combined-cycle gas turbine gas-fired power plant project in Kimanis, Sabah, Suria Capital told Bursa Malaysia yesterday. The construction period is three years. SCHB's consortium partners include CTCI Corp, CTCI Overseas Corp Ltd, CTCI Malaysia Sdn Bhd and Steamline (M) Sdn Bhd.

Johor Corp Bhd (JCorp) says it will focus on enhancing its core businesses and resolving its debt of RM3.6bil this year. “Our primary focus now is to enhance our core businesses. JCorp's majority owned public-listed companies are spearheading the palm oils, foods and restaurant, and healthcare divisions while JCorp directly manages property development and hospitality divisions.” “The immediate task now is to resolve the debt of RM3.6bil that comes due mid-next year and we have identified the means of achieving this,” it said in a statement yesterday. JCorp said it would be assisted by Maybank and CIMB Bank.

The Selangor government had in December promised to allow the federal government to build the Langat 2 water treatment plant, which is part of the Pahang-Selangor Interstate Water Transfer Project. Energy, Green Technology and Water Minister Datuk Seri Peter Chin Fah Kui said his ministry, however, was still waiting for the approval in writing from the state government, which was expected to be received this month. “Although we are seven months late, the state government's latest decision means that we can proceed. And we are going ahead with the tender this month or by February. The approval means the last hurdle has been removed,” he said after meeting with the ministry's officers and staff, here yesterday.

 

Sime Darby, through Sime Darby Property, will be launching 15 projects across 10 townships in the first half of this year. Its head of marketing development, Henri Young said, the townships include Putra Heights and USJ Heights in Subang Jaya, Denai Alam (Shah Alam) and Bandar Bukit Raja (Klang). "There is still strong demand for landed and residential properties in Malaysia," he said yesterday. He said the company's previous projects in Denai Alam, Bandar Bukit Raja and the USJ Heights townships were sold out within two months.

Hubline’s core business is the provision of container and dry-bulk shipping services as well as vessel chartering. RAM Ratings said the revision in outlook is premised on our concerns that the group’s financial performance may remain depressed by weak freight rates (for both its container and dry-bulk shipping segments) and poor dry-bulk cargo volumes. “Large incoming supply of newbuilds will further pressure freight rates which have yet to stage a meaningful recovery. At the same time, uncertainties in economic recoveries of advanced economies may further dampen market outlook,” said the ratings agency.

SEG INTERNATIONAL BHD declared a special dividend of 14 sen per share which will go ex on Jan 27 while its entitlement date is Jan 31.

The Perak state government is considering setting up its own low-cost carrier terminal (LCCT) in the northern part of the state. "We have had a few discussions with AirAsia on the matter and we have proposed several locations in Perak, and they have stated their preference for one particular location," Menteri Besar Datuk Seri Zambry Abd Kadir said yesterday. The site is expected to be in the vicinity of Parit Buntar and Taiping, which is in the area of the Northern Corridor Economic Region. Zambry explained that the state government was waiting for the right time to bring it up to the federal government to decide on the suitability and viability of the project.

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.