FBMKLCI 1521.18 DJ-140.32 CRUDE OIL100.27 RM 2.9570

Markets could continue to see cautious trade on Friday, May 6, with focus on banks after Bank Negara Malaysia raised the overnight policy rate (OPR) and statutory reserve requirement (SRR). After market close, Bank Negara Malaysia raised the OPR by 25 basis points to 3% during its Monetary Policy Committee (MPC) meeting on Thursday. The central bank said the floor and ceiling rates of the corridor for the OPR were correspondingly raised to 2.75% and 3.25% respectively. 

Fraser & Neave posted net profit of RM131.98 million in the second quarter ended March 31, 2011 versus RM85.23 million a year ago, boosted by the sale of a college building.

Revenue was RM1 billion compared with RM872.09 million. Earnings per share were 36.80 sen versus 23.90 sen. It declared a special interim single tier dividend of 15 sen per share and an interim single tier dividend of 20 sen per share.

Pos Malaysia has viewed TRICUBES BHD []’s venture to send government notices via email as a threat and it would explore ways how it could participate in the project. “We know that this will be a significant threat to the physical mail business,” said Pos Malaysia CEO and group managing director Datuk Syed Faiusal Albar. He said that government mail amounted to RM20 million of its annual revenue.

Daibochi posted net profit of RM4.6 million in the first quarter ended March 31, 2011, down 7.4% from RM5 million a year ago as raw material prices rose.

FBMKLCI 1528.43 DJ-83.93 CRUDE OIL108.62 RM2.9450

New stock listing

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

1.    0168                BOILERM          0.33                          0.03                  1.65

Boilermech designs and manufactures biomass boilers. Its offer price is 33 sen while OSK Research has fair value of 45 sen.

Fitters, whose share price fell after it faced the threat of suspension on May 10, said it had set Friday as the deadline to submit the audited financial statement to avoid suspension.

Ingenuity, which was queried over unusual market activity, will sign an MoU on Thursday, to submit an integrated hospital information system to the Health Ministry. The system is to interlink hospitals and clinics in Malaysia to the ministry

Pos Malaysia holds its shareholders meeting late Thursday morning. There are expectations of strong response from minority shareholders over the acquisition of Khazanah Nasional’s stake in the national postal company by DRB-Hicom.

Seven companies have been shortlisted for the first phase of the US$2.5 billion (RM7.45 billion) infrastructure of Brazil’s Vale International project. Among them are MUHIBBAH ENGINEERING (M) BHD [], Gadang Bhd and Sunway CONSTRUCTION [] Bhd.

Bursa Securities has rejected construction firm Golden Plus Holdings Bhd’s application for an extension of two weeks for the submission of the company’s audited financial statements for the financial year ended Dec 31, 2010.

 

Lion buys stake in S’pore steel firm.
Lion Industries Corp Bhd (LICB) will be acquiring a 50% stake in Angkasa Hong Leong Pte Ltd, from Hong Leong Asia Ltd for S$15.3mil (RM36.6mil) as it looks to expand into the downstream steel operations business.
Property developer Mutiara Goodyear Development Bhd is acquiring 40% stake in Palmington Sdn Bhd, a unit of Tambun Indah Land Bhd, for RM2.34mil cash in a move to jointly develop 527 acres in Seberang Perai.

FBMKLCI 1531.47 DJ+0.15 CRUDE OIL110.78 RM2.9380

Five companies yesterday announced that trading in their securities will be suspended on May 10 until further notice due to failure to submit their annual audited financial statements on time. The companies are Atis Corp Bhd, Fitters Diversified Bhd, Mobif Bhd, Ecofuture Bhd, and H-Displays (MSC) Bhd.

Sumatec Resources Bhd has triggered the criteria pursuant to Practice Note No. 17 (PN17) of the Main Market Listing Requirements while biotechnology-based Equator Life Sciences Bhd has triggered the criteria pursuant to Guidance Note 3 (GN3) of the ACE Market Listing Requirements, Bursa Malaysia Securities announced yesterday.

Sunway Real Estate Investment Trust (SunREIT) posted a net profit of RM43.7mil for the third quarter ended March 31. SunREIT has declared a third interim income distribution of 1.70 sen per unit for the third quarter ended 31 March. For the first nine months, SunREIT's income before taxation was RM399.6mil comprising realised net income of RM126.2mil and unrealised income of RM273.4mil .

MClean Technologies Bhd’s initial public offering of 2.7 million new shares has been oversubscribed 100.49 times. In a statement yesterday, the Malaysian Issuing House Sdn Bhd (MIH) said a total of 8,947 applications for 274.02 million shares were received from the public. In addition, 75,000 new shares, initially set aside for business associates of the group, were made available to the public.

Ramunia has proposed a capital reCONSTRUCTION [] and rights issue to uplift from the Practice Note 17 status. The proposed share premium reduction will give rise to a credit of between RM98.31 million and RM100.69 million whilst the reduction of 25 sen in par value from each existing share of 50 sen each will give rise to a credit between RM185.32 million and RM244.65 million.

Commerce TECHNOLOGY [] Ventures Sdn. Bhd has ceased to be a substantial shareholder of Tricubes Bhd after it disposed of 14.5 million shares from April 24 to 27. Filings to Bursa Malaysia showed it sold 1.165 million shares on April 25 and 5.0 million shares on April 26. It sold 8.335 million shares on April 27.

The recent transactions reduced its stake to 6.20 million shares.

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 1529.91 DJ+95.59 CRUDE OIL 113.57 RM2.95

KFC Holdings (M) Bhd (KFCH) will invest RM45mil to open 25 new KFC outlets nationwide this year.

AmBank (M) Bhd is issuing four new European-style cash-settled call warrants (CWs) to meet investor demand for trading opportunities and alternative investments for current market conditions over the ordinary shares of BIMB Holdings Bhd, IGB Corp Bhd, Petronas Chemicals Group Bhd (PChem) and TSH Resources Bhd.

Gateway Benefit Sdn Bhd, a wholly-owned subsidiary of Berjaya Land Bhd, had disposed 4.665 million shares in Berjaya Sport Toto Bhd for RM19.6mil.

Unisem (M) Bhd has posted a lower group net profit of RM5.4mil for the first quarter ended March 31, 2011, compared with RM41.3mil in the same period last year.

One of the factors that is being considered by Bank Negara in reviewing the application by China Construction Bank Corp (CCB) to buy into EON Capital Bhd (EON Cap) is the fact that another state-owned bank from China, the Industrial and Commercial Bank of China (ICBC), already has a banking licence in Malaysia, industry sources said. Under Malaysia's Banking and Financial Institutions Act (Bafia), no single party is supposed to own more than one banking licence.

Tanjung Offshore Bhd’s wholly-owned subsidiary, Tanjung Maintenance Services Sdn B hd, had on March 25 been awarded an RM15mil contract for the provision of valve repair and maintenance services for Murphy Sarawak Oil Co Ltd. But comments by Maybank IB Research could weigh down the share price. The research house said it expected Tanjung Offshore’s 1Q 2011 earnings to likely miss street expectations again. “Cost management strategies and operating prospects remain the key concerns. An equity cash-call could ensue should the cash situation worsen. “Tanjung Offshore will also suffer an RM8 million penalty cost for early bonds redemption. Valuations are expensive and consensus forecasts are aggressive. Nonetheless, Ekuinas’ next move remains a wild card,” it said.

EUPE expects pre-tax profit of more than RM30 million from a residential property project with a gross development value (GDV) in excess of RM130 million. EUPE unit EUPE Kemajuan Sdn.Bhd was buying 17.15 acres of land in Petaling district for RM37.35 million from Desaminium Jaya Sdn Bhd.

“The land is purchased for the purpose of residential development targeting about 150 units of terrace and semi detached homes with a GDV in excess of RM130 million and profit before tax estimated above RM30.0 million

TH PLANTATIONS BHD [] targets to increase its land bank to 50,000 hectares from 39,113 ha by 2012, a company official said. TH Plantations plans to acquire the first "substantial parcel" by the end of June and are looking at Sumatera and Kalimantan where land prices are said to be lower compared to Sabah and Sarawak. A total of RM150 million has been allocated this year to build a palm oil mill in Sarawak and the company's replanting programme. The company said revenue for FY2011 could rise 14.8% to RM420 million from RM365.97 million last year if the price of crude palm oil averages between RM3,400 and RM3,500 for 2011.

Masterskill Education Group Bhd (MEGB) is venturing into the provision of undergraduate business programmes in a tie-up with The University of Newcastle. MEGB said on Wednesday, April 27 the proposal covered the bachelor of business and bachelor of commerce programmes.

FBM 1527.23 KLCI DJ+115.49 CRUDE OIL112.31 RM 2.9661

CIMB Group Holdings Bhd’s 97.9% (indirectly held) subsidiary, PT Bank CIMB Niaga Tbk (CIMB Niaga), reported a consolidated net profit (unaudited) of 727.53 billion rupiah in the first quarter ended March 3 1, which was 39% higher than the same period last year.

Yeo Hiap Seng (M) Bhd’s net profit for its quarter ended March 31 was up 35.7% to RM7.6mil year-on-year supported by higher sales from Yeo’s core products.

Seacera Tiles Bhd has proposed to dispose of four parcels of freehold land of 59,053 sq m together with a factory to Suong Sdn Bhd for RM62mil and lease back the property.

Kencana secured a RM208 million contract for the fabrication of a substructure for the Kebabangan northern hub development project off the coast of Sabah from Kebabangan Petroleum Operating Company (KPOC). Under the contract, it would build and commission the substructure for the Kebabangan northern hub.

MPI reported an 81% decline in its third quarter earnings to RM5.05 million from RM27.14 million a year ago due to the strengthening of the ringgit against the US dollar and rising commodities prices. Revenue fell 5.3% to RM334.82 million from RM353.68 million while earnings per share were 2.61 sen compared with 13.92 sen. It proposed dividend of 10 sen a share.

Tricubes Bhd is going to make a cash call to fund the controversial myemail project that will require a RM50 million investment over 10 years.

Sealink International Bhd has recommended a final single tier tax exempt dividend of 2.7 sen per share totalling RM13.50 million for the financial year ended Dec 31, 2010. The dividend entitlement date is Sept 12 and payment date Sept 28.

FBMKLCI 1524.05 DJ-26.11 CRUDE OIL 111.36 RM 2.9685

Bernas, which is the largest rice miller in Malaysia, has received a 10-year extension from Jan 11, 2011 to Jan 10, 2021 from the federal government. Bernas had received a letter dated April 20 from the Public Private Partnership Unit under the Prime Minister’s Department on the extension of the Bernas agreement dated Jan 12, 1996. It currently controls about 24% of the padi market and 45% of the local rice demand.

CB Industrial Product Bhd’s unit has secured a RM38.35 million contract from the Ministry of Health to supply 100 ambulances inclusive medical equipment to the ministry. Its subsidiary AVP Engineering (M) Sdn Bhd had accepted the letter of award from the Ministry of Health.

Alam Maritim Resources Bhd’s unit has entered into two charter party agreements for a total sum of RM24.75 million.

Berjaya Land Bhd’s units disposed of 22.76 million BERJAYA SPORTS TOTO BHD [] (BToto) shares for RM101.821 million or at an average selling price of RM4.47. It said on Monday, April 25 the shares were disposed of by Immediate Capital Sdn Bhd and Gateway Benefit Sdn Bhd in the open market from May 3, 2010 to April 25, 2011. “The disposals resulted in a net loss of about RM6.07 million at the BLand group level,” it said. The disposed shares represented 1.70% equity interests in BToto.

DRB-HICOM Bhd will be using three of its main businesses involving banking, cargo handling and insurance to generate value from its 32.21% stake in Pos Malaysia Bhd. Those three companies are expected to feature heavily in the execution of the business plan for Pos Malaysia which in turn will also benefit DRB-HICOM as reinvigorating Pos Malaysia would lead to the expansion of the businesses involving Bank Muamalat Malaysia Bhd, KL Airport Services Sdn Bhd (KLAS) and Uni.Asia (life and general insurance businesses). DRB-HICOM won the bid last week to buy the controlling stake in Pos Malaysia at RM3.60 per share or RM622.79mil.

China Construction Bank Corp (CCB), the country's No 2 lender, is eyeing a stake in EON Capital, and has approached the Malaysian Finance Ministry for permission to speak to EON's major shareholders, a source with direct knowledge said. “This is still at a very early stage. We've informed the Malaysian Finance Ministry,” said the source, adding that CCB had not yet received a response. The source declined to be identified because of the sensitivity of the deal.

Software provider Infortech Alliance Bhd has proposed to acquire the entire interest in Jaring Metal Industries Sdn Bhd for RM64.8mil, which will see it gaining new controlling shareholders via the issuance of Infortech shares. Infortech told Bursa Malaysia yesterday that the total purchase would be satisfied by the issuance of 462.86 million new 10 sen shares in Infortech at 14 sen each. Infortech is also proposing a renounceable restricted issue of up to 181.5 million Infortech shares together with up to 108.9 million free detachable warrants on the basis of five shares with three free warrants for every two existing Infortech shares held by the entitled shareholders of Infortech other than the vendors and the parties acting in concert (PACs) with the vendors.

Sime Darby Bhd’s unit, Sime Darby Engineering Sdn Bhd, has been awarded a RM1.15bn contract to fabricate KBB Topsides for the Kebabangan northern hub development project by Kebabangan Petroleum Operating Company Sdn Bhd. The contract will be undertaken over 29 months effective from April 22 this year, Sime Darby said in a filing to Bursa Malaysia yesterday.

KFC Holdings (Malaysia) Bhd's Vice President, KFC Division, Lim Teck Huak said the company invested more than RM1mn in advertising and promotion for the new menu which would be initially available at the 144 outlets. One hundred and forty-four KFC restaurants throughout Malaysia, including Sabah and Sarawak, will see sales increase by 10% after the introduction of its redesigned breakfast menu.

 

WCT Bhd announced a final dividend of 5sen per share which makes the total dividend declared for FYE2010 10sen per share. This final dividend will be paid on 6 June 2011.

FBMKLCI 1522.75 DJ no market CRUDE OIL112.77  RM 2.9738

Khazanah Nasional Bhd has divested its strategic 32.21% stake in Pos Malaysia to DRB-Hicom Bhd at RM3.60 per share or RM622.79 million, deemed a landmark divestment by the government’s investment arm of its entire stake in a major government-linked company. Pos Malaysia said based on the audited results for the financial year ended Dec 31, 2010, its audited consolidated net profit was RM67.11 million and audited consolidated net assets RM828.59 million.

Iris Corp has secured a US$149.96 million(RM451.61 million) contract from the government of Tanzania to supply 25 million identification cards based on the Smartcard TECHNOLOGY []. Iris Corp said the contract was for five years, comprising 36 months for implementation and 24 months for maintenance and support. The scope of work and deliverables were 25 million smart cards which shall be used as the National ID cards of Tanzania

HPI Resources’ net profit for the third quarter ended Feb 28, 2011 soared 121.5% to RM6.94 million from RM3.13 million a year earlier, driven by higher demand. Revenue for the quarter rose by 11.6% to RM105.43 million from RM94.46 million in 2010, while earnings per share was 12.43 sen. HPI said the strong performance was primarily the result of both its paper milling and corrugated packaging divisions demonstrating double-digit expansion in revenues and operating profits.

Ranhill Bhd’s unit Ranhill Power Sdn Bhd has received the Securities Commission’s approval to issue up to RM800 million of debt notes which will have a tenure up to 15 years. The proceeds from the issue will be on-lent to Ranhill to finance in full the redemption of the US$220 million guaranteed notes issued by Ranhill (L) Ltd. The funds would also be to finance the service reserve account requirement, the first guarantee fees payable and the expenses/ costs incurred in relation to the establishment of the Sukuk, and to on-lend to Ranhill to reimburse advances made by Ranhill to Ranhill Engineers and Constructors Sdn Bhd to complete the CONSTRUCTION [] of Senai-Desaru Expressway.

FBMKLCI 1526.33 DJ+52.45 CRUDE OIL112.33 RM 2.9805

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

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

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

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

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

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

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

FBMKLCI 1531.02 DJ+186.79 CRUDE OIL 111.95 RM 2.9890

 

TENAGA NASIONAL BHD could also see trading activity ahead of the release of its financial results for the second quarter ended Feb 28, 2011 after market close. In the first quarter, it posted net profit of RM712.90 million. AmResearch reiterated its Hold call on TNB but with a lower discounted-cashflow derived fair value of RM6.90 a share on lower earnings expectations for FY11 ending Aug 30, 2011. AmResearch had downgraded FY11F earnings by 17% to RM2.4 billion as it raised its coal assumption by US$10 a tonne to US$110 a tonne in the absence of any off-setting tariff rate increase. TNB’s associate Integrax has declared a special interim dividend of 16% less income tax at 25% for the financial year ending Dec 31, 2011. The dividend will go ex on May 6 and the payment date is May 10.

TRC Synergy’s CONSTRUCTION unit Trans Resources Corporation Sdn Bhd has secured a contract to undertake the construction of two types of public housing at Precinct 8 (Phase 1), Putrajaya worth RM43.8 million. TRC said the contract was scheduled to be completed within 20 months. The project involved the construction of 40 units of three-storey semi-detached and four two-and a half-storey semi detached public housing in Putrajaya. Including this contract, TRC has an order book close to RM1.3 billion, which will keep the company busy for the next three years. TRC had also submitted numerous tenders for the SCORE projects worth more than RM1 billion.

DRB-Hicom Bhd clarified it has not received any notification from Khazanah Nasional Bhd that it had won the 32.21% POS MALAYSIA BHD stake.

Nestle (Malaysia) Bhd’s net profit for the first quarter ended March 31, 2011 rose 10% to RM152.69 million from RM138.79 million a year earlier on the back of a double digit growth in revenue driven by both domestic and export sales. Revenue for the quarter rose to RM1.18 billion from RM1.02 billion. Earnings per share were 65.11 sen while net asset per share was RM3.28. Nestle said on Wednesday, April 20 the operating profit stood at RM196 million, an improvement of 11.5% over the same period last year.

FBMKLCI 1521.53 DJ+65.16 CRUDE OIL 108.27 RM 3.0020

KARAMBUNAI CORP BHD and PETALING TIN BHD shares rose in active trade after the government announced the multi-billion ringgit Karambunai Integrated Resort City (KIRC) as a premier world-class ecotourism destination. A consortium consisting of Prism Crystal Enterprises Ltd and Tan Sri Dr Chen Lip Keong & group of companies together with the landowner Karambunai and Petaling Tin will invest RM9.6 billion by 2020 to develop the resort city.

EMAS KIARA INDUSTRIES BHD has declared a special tax exempt interim dividend of 12 sen per 50 sen for the financial year ending Dec 31, 2011. The dividend was equivalent to 24% per share and it would go ex on May 19. In November last year, Emas Kiara announced it was disposing of its business and subsidiaries for RM100 million to Tencate Geosynthetics Asia Sdn Bhd.

BERJAYA CORPORATION BHD’s unit has appointed Ken Whittingham and Atle Crowe-Maxwell of PKF Australia Ltd receivers and managers of its self-service carwash company --  Carlovers Carwash Ltd (CCL) -- based in Australia. BCorp said  it would appoint the two as receivers and manager for CCL’s three units -- Carlovers Carwash (Aust) Pty Ltd, The Carwash Kings Pty Ltd and Carlovers (Maroochydore) Pty Ltd, to preserve its interest as a secured creditor of the CCL Group. BCorp group’s unaudited carrying amount/net book value of the CCL Group as at Jan 31, 2011 is about RM400,000 whilst its original cost of investment in the CCL Group is about RM46.1 million. The amount has been substantially written down and impaired over the years,” it said.

Tricubes Bhd will invest RM50 million in the next 10 years in the 1Malaysia email project.

Steel products player Starshine Holdings Bhd (SHB), which is planning a listing on Bursa Malaysia’s Ace Market by the third quarter of the year, will invest RM32mil in a new plant in Klang and new machinery to broaden its product offering.

Aeon Credit Service (M) Bhd’s net profit for its fourth quarter ended Feb 20, 2011 rose to RM19.40mil from RM14.31mil in the previous corresponding period mainly due to growth in trade receivables on the back of increased financing transaction volume.

CIMB Bank Bhd’s 93.15% subsidiary, CIMB Thai Bank Public Company Ltd and its subsidiaries registered a total operating income of 1.5 billion baht (RM163mil) with the net profit of 282 million baht (RM30.6mil) for its unreviewed operating results for the first quarter ended March 31.

Bursa Malaysia Bhd registered profit after tax and minority interest of RM40.5mil for the first quarter ended March 31, 44% higher than the RM28.1mil in the previous corresponding quarter.

FBMKLCI 1518.64 DJ-140.24 CRUDE OIL 107.78 RM 2.9930

Public Bank Bhd’s net profit rose 21% to RM828 million in the first quarter ended March 31, 2011 from RM685 million a year ago, underpinned by strong growth in net interest and finance income.

Maybank has received the Securities Commission’s approval to undertake a multi-currency medium term notes (MTN) programme totaling US$2 billion.

The MTN programme would enable it to issue senior and/or subordinated notes in currencies other than in ringgit at any time, provided the aggregate amount of outstanding notes does not exceed US$2 billion in nominal value.

Costume jewellery and consumer products manufacturer Zhulian Corp Bhd’s earnings fell 14.2% to RM21.30 million in the first quarter ended Nov 30, 2010 from RM24.84 million a year ago. Revenue was flat at RM86.22 million compared with RM86.33 million a year ago. Earnings per share were 4.78 sen compared with 5.42 sen.

The company reported cash and cash equivalents of RM133.14 million as at Nov 30, 2010.

UNITED MALAYAN LAND BHD []’s unit Seri Alam PROPERTIES [] Sdn Bhd is teaming up with Singapore’s Raffles Campus Pte Ltd to undertake a RM35 million campus in Iskandar Malaysia.

The MoU is to form a joint venture company to build the Raffles International School in Bandar Seri Alam. It will be managed and operated by Raffles as its first campus in Malaysia.

Bursa Malaysia depository Sdn Bhd, a subsidiary of Bursa Malaysia Bhd, is extending its administration fee waive of RM10 for the registration of eDividend until April 18, 2012.

FBMKLCI 1521.94 DJ+56.68 CRUDE OIL 110.22 RM 2.9890

Proton’s unit Lotus Cars Ltd secured £270m million (RM1.33 billion) in loans from six financial institutions over a six-year period to turn around the loss-making company. Proton group managing director Datuk Seri Syed Zainal Abidin Syed Mohamed Tahir said he expected Lotus to break even by 2014.

Press Metal proposed a rights issue to raise between RM316.7 million and RM323.7 million to finance the Samalaju aluminium smelting project in Sarawak. The rights issue involved RM323.73 million nominal value of redeemable convertible secured loan stocks (RCSLS) at 100% of its nominal value with up to 147.15 million warrants.

Johor Menteri Besar Datuk Abdul Ghani Othman has approved the proposed RM1.23 billion intra-city commuter train service in Iskandar Malaysia which would involve a100km rail network.

The project would be undertaken by Metropolitan Commuter Network Sdn Bhd - a joint venture between KUB Malaysia Bhd and Malaysia Steel Works (KL) Bhd.

FAR EAST HOLDINGS BHD [] is recommending a final single tier dividend of 20 sen for the financial year ended Dec 31, 2010.

FBMKLCI 1530.67 DJ+14.16 CRUDE OIL109.19  RM 2.9955

SP Setia Bhd is making its maiden venture into Singapore. The developer has proposed the purchase of 27 strata units in Leong Bee Court for S$65 million (RM159 million) with the plan to redevelop the property, currently comprising flats, into residential apartments.

 

Proton Holdings Bhd’s unit Lotus Cars Ltd will sign an agreement on syndicated financing with CIMB Bank, Maybank, OCBC, EON Bank, Exim Bank and Affin Bank on Friday.

SEG International Bhd is teaming up with Chung Cheong University in South Korea to train and place nurses and allied health professionals in the US, Canada and Europe. SEGi said the academic collaboration was expected to contribute an increase in earnings of approximately 4% to the group for FY ending Dec 31, 2011.

IJM Land Bhd’s additional 229.88 million new shares will be granted listing and quotation with effect from 9am on Monday, April 18. The new shares arose from the conversion of RM400 million nominal value of 10 year 3% coupon redeemable convertible unsecured loan stocks (RCULS)by IJM Corp Bhd.

NAIM HOLDINGS BHD disposed of two million shares in DAYANG ENTERPRISE HOLDINGS BHD on April 13, reducing its stake to 34.17% or 187.94 million shares.

YTL Corp is on an acquisition trail which could see it buying back its own subsidiaries, if no other attractive opportunities emerge. Managing director Tan Sri Francis Yeoh said its current balance sheet position and promise of higher dividends from its subsidiaries has put it in a position to be able to look at mergers and acquisitions efficiently. He expects subsidiaries such as YTL Power International and YTL Cement to announce some RM1bn dividends to its parent for the financial year ending 30 June, 2011. YTL Land & Development is expected to start paying dividends next year after wiping out its losses.

National carrier Malaysia Airlines (MAS) is expected to fork out some USD2.4bn (RM7.3bn) over the next four years for the purchase of 15 new A330-300 airplanes, in line with its fleet renewal exercise as well as its effort to trim down operational cost. With a list price of USD16m per aircraft, managing director and chief executive officer Tengku Datuk Seri Azmil Zahruddin said the new and improved A330-300 is expected to reduce fuel consumption and lower its operational costs by 15% through efficient management of fuel consumption and maintenance programmes, incorporating Airbus’ latest technology and design.

 

Water bondholders are not accepting any haircut in the potential Government buyback of the financially-troubled bonds, according to sources. Against the point that bondholders had, in the first place, undertaken a risky investment that had not performed, the counter argument is that bondholders had played their part in the privatisation and socio-economic development of the country. Hence, the subtle message might be that they expected the Federal Government to honour the payments in full, especially if they were to continue to support further privatisation projects, analysts said. If Pengurusan Aset Air (PAAB), the Government's water asset management company with large coffers, stepped in to buy over the bonds, there might not be a need for a haircut, they added. A haircut occurs if the face value of the bonds decreases. So far, the outstanding water bonds that are rated, excluding the ones issued by PAAB, amount to RM6.7bn out of the total issued of RM9.02bn.

 

FBMKLCI 1535.59 DJ+7.41 CRUDE OIL 108.00 RM 2.9960

MAHB is expecting to see 12% year-on-year growth in passengers for the first three months of the year, compared with the earlier forecast of 7%.

MAMEE-DOUBLE Decker (M) Bhd has been in the limelight recently due to a privatisation proposal by major shareholders in a selective capital reduction (SCR) and repayment exercise under Section 64 of the Companies Act, 1965. This is a privatisation route that has been used successfully by several other companies.

Plantation group KL Kepong Bhd has estimated its capital expenditure for the current financial year ending Sept 30, 2011 at RM600mil. It said the expenditure consisted of new oil palm plantings in Indonesia and supporting infrastructures such as palm oil mills. “Oleochemicals capital expenditure consist of adding new capacities at Westport, Europe and China,” KL Kepong said in its corporate presentation at the Invest Malaysia 2011 conference yesterday. Between financial year 2007 and 2010, about 95% of KL Kepong’s capital expenditure was invested in plantation and oleochemicals. The company also said that it would continue to focus on land acquisition in Indonesia and Malaysia.

Alam Maritim Resources Bhd’s unit has secured RM24.24 million contracts to supply two vessels to an independent oil and gas exploration and production company. Its unit Alam Maritim (M) Sdn Bhd would provide one anchor handling tug supply vessel and one fast multipurpose supply vessel.

MEGB, its group CEO and PT Sejahteraraya Anugrahjaya Tbk (PTSA) are teaming up to look into the setting up of a university in Indonesia. They will form a joint venture company in Indonesia with proposed paid-up capital of US$10 million wherein. MEGB and its CEO will each hold a 30% stake and the remaining 60% by PTSA. PTSA is listed on the Stock Exchange of Indonesia and is the owner of Mayapada Hospital in Indonesia.

DRB-Hicom Bhd’s unit Puspakom Sdn Bhd has signed an MoU with the government to undertake the hire purchase inspection services for all vehicles. DRB-Hicom said the inspection services would be undertaken following the implementation of the newly amended Hire-Purchase Act 1967 (Amended 2010).

MALAYSIAN AIRLINE SYSTEM BHD []’s (MAS) earnings in the first quarter ended March 31, 2011 were impacted by the higher fuel prices, said its managing director and chief executive officer Tengku Datuk Azmil Zahruddin said. He said the high fuel price is “definitely making a negative impact on us”. Tengku Azmil said about 25% of the airline’s jet fuel for 2011 was hedged at US$90 per barrel but the price was now about US$140. On April 1, it was US$136.40.

Khazanah Nasional Bhd, the government's investment arm, has decided on the potential buyer for its 32.21 per cent stake in postal service provider, POS MALAYSIA BHD. "We already have a winner in mind," said Khazanah managing director Tan Sri Azman Mokhtar. However, he declined to narrow the identity of the "winner" but said the names would be submitted to the board later this month. The three shortlisted bidders are speculated to be DRB-Hicom, NATIONWIDE EXPRESS COURIER SER vices and a Amanah REIT-Malaysia Pacific Corp joint venture, wit offers ranging between RM3.38 and RM4.62 per share. The other two bidders were Scomi Bhd and TRICUBES BHD.

Guocoland Bhd posted net loss of RM3.64 million in the third quarter ended March 31, 2011, which was narrower compared with net losses of RM5.65 million a year ago. It reported revenue of RM23.95 million, down from RM42.42 million a year ago. Loss per share was 0.54 sen compared with 0.84 sen. For the nine-months, its net loss was RM2.38 million compared with net profit of RM2.49 million in the previous corresponding period. Revenue was RM84.29 million versus RM130.49 million a year ago. Its net asset per share was RM1.12. According to the notes to the accounts, it had short-term and long-term borrowings of RM786 million as at March 31, 2011.

FBMKLCI 1525.92 DJ-117.53 CRUDE OIL 105.93 RM 2.99

Land & General Bhd’s EGM will be at the Sri Damansara Club, KL at 10am. The company proposes to acquire 10 parcels of land with 27-hole golf course and clubhouse and several plots of vacant land in Seremban for RM25 million. MSWG said the proposed acquisition is a related party transaction involving at least four directors on the board and major shareholders.

OSK HOLDINGS BHD [] AGM will be at Plaza OSK, KL at 2.30pm. MSWG to raise questions about the reasons for the allowances of impairments losses on investments classified under Securities HTM of RM7.6 million and Securities AFS of RM38.7 million as disclosed in Note 37 on page 152 of the annual report. MSWG to also ask as the group loans and financing segment was the third biggest contributor, accounting for 23% of the group's pre-tax profit. In 2010, OSK loans and financing segment achieved pre-tax profit growth of 40% to RM45.5 million. What are OSK's plans to expand this segment, especially since the group was able to amass substantial deposit base of RM4.5 billion?

The Edge FinancialDaily reports the gaming sector is in the spotlight once again, with the focus on Berjaya Sports Toto Bhd (BToto).According to a Reuters report, tycoon Tan Sri Vincent Tan was mulling the sale of a 49% stake in BToto's unlisted numbers forecast operator (NFO) for about US$1 billion (RM3.03 billion).

ExxonMobil Exploration and Production Malaysia Inc has extended Handal Resources Bhd’s contract to provide crane services for a further one year, from May 1 to April 30, 2012.

Its unit Handal Offshore Services Sdn Bhd had received an extension of contract which it said would contribute to the group’s earnings for the financial year ending Dec 31, 2011. The contract was initially awarded to Handal Offshore in May 2006 for a five-year term expiring in April 2011.

Eastern & Oriental Bhd has received the Penang Government’s in-principle approval for its master plan to undertake a mixed integrated project on a proposed reclaimed site on the island. The company said the approval was for the development on the site, which is to be reclaimed under phase two of its Seri Tanjung Pinang in Tanjong Tokong, Penang.

Favelle Favco Bhd’s units have secured contracts worth a combined RM89.5 million for the supply of four offshore cranes. Favelle Favco Cranes Pte Ltd was to supply Keppel Fels Ltd with an offshore crane, which was expected to be delivered from end 2011 to early of 2012.

MAH SING GROUP BHD [] is buying nine parcels of land in Tanjung Kupang, Johor Bahru measuring 205.72 acres for RM54.7 million for an industrial park. The land was acquired at about RM6.10 per sq ft and it plans to develop into an integrated industrial and business park named Mah Sing i-Parc. “Based on preliminary plans, Mah Sing i-Parc will comprise semi-detached factories, detached factories and shop offices with an estimated gross development value of approximately RM610 million,” it said.

Press Metal Bhd and three foreign companies, which together plan to invest some RM9.5bil in energy-intensive industries in Samalaju Industrial Park, Bintulu, have signed separate power purchase agreement (PPA) term sheet with Sarawak Energy Bhd (SEB). SEB,Asia Minerals Ltd and Tokuyama Corp – would require a long-term supply of 1,300MW to power their plants. The electricity will be supplied by the 2,400MW Bakun hydroelectric dam, which is expected to produce its first 300MW in three months.

FBMKLCI 1544  DJ+1.06 CRUDE OIL 108.40 RM 2.9885

In the US, stocks mostly fell on Monday as energy shares sold off on lower oil prices, and as the earnings season onset was clouded by concern company outlooks may fall short of expectations. Worries that increased raw material costs and the effects from Japan's earthquake may affect coming quarters will put companies' forward-looking statements under increased scrutiny.

While minority shareholders have the right to reject the offer to privatise Mamee-Double Decker (M) Bhd, analysts contacted by StarBiz say the capital repayment offer of RM4.39 per share is a fair deal.

Axiata Group Bhd is seeking the approval from its shareholders to buy back its own shares of up to 10% of its issued and paid-up share capital at the forthcoming AGM.

AmBank (M) Bhd will issue five new European style cash-settled call warrants (CWs) on the shares of Gamuda Bhd, Mah Sing Group Bhd, YTL Land & Development Bhd, Malaysian Airline System Bhd and Mudajaya Group Bhd.

MAA Holdings submitted an application to Bank Negara Malaysia to get its approval to dispose of its insurance unit to Zurich Insurance Company Ltd. It said it had submitted the application to the central bank for the approval of the Minister of Finance to enter into an agreement with Zurich.

 

Coastal Contracts Bhd’s two units have secured contracts for the sale of 11 tugboats for about RM61 million to a company based in Central America. Including the new contracts, Coastal Group to date has about RM665 million worth of vessel sales orders awaiting delivery to customers up to 2012. 

FBMKLCI 1557.49 DJ-29.44 CRUDE OIL 113.13 RM 2.99

THE local stock market is expected to take a temporary breather this week after the recent solid uptrend. Head of Retail Research, Affin Investment Bank, Dr Nazri Khan said in the near-term, despite the strength shown by the broad market, the FTSE Bursa Malaysia KLCI (FBM KLCI) consolidated between 1,550 and 1,560, given the super gains made by the local and regional markets over the last three weeks.
“We believe the Malaysian equity market has reached an overbought situation after a solid uptrend. A number of sentiment indicators suggest the market is apt for correction,” he told Bernama today.

Major shareholders of Mamee-Double Decker (M) Bhd have proposed to privatise the company from Bursa Malaysia by undergoing a capital reduction and repayment exercise under Section 64 of the Companies Act, 1965. Under the plan, major shareholders of Mamee who control the company would repay RM179.8m or RM4.39 a share to minority shareholders. The controlling shareholders would waive their entitlement from
receiving cash under the capital reduction and repayment exercise. Shares of Mamee are suspended but last traded at RM3.60 a share. The company said in a statement to Bursa Malaysia the proposal for the exercise
was from Tanah Subor SB, which represented the controlling shareholders of the company having 71.9% of the company's shares.

IOI Corp is investing SGD114.77m in a Singapore property company which will develop premium office space, luxury hotel, high-end retail outlets and prestigious city residences along Beach Road in the island republic. IOI Corp said on Friday, 8 April the land, measuring 376,295 sq ft (8.64 acres), had a leasehold tenure of 99 years. IOI Corp said the investment would be via its unit, IOI Consolidated (Singapore) Pte Ltd, which had subscribed for a 49% stake in Singapore’s Scottsdale Properties Pte Ltd for cash consideration of SGD114.77m.

Malaysia Airports Holdings (MAHB) is “seriously” on the lookout to build and manage overseas airports in line with its aspiration to become a global leader in airport investment and management. In its financial year ended 31 Dec 2010 annual report released last week, MAHB chairman Tan Sri Aris Othman said the group was seriously looking at new, yet viable opportunities globally, particularly in Asia.

FBMKLCI 1561.93 DJ-17.26 CRUDE OIL 110.30 RM 2.993

MRCB expects to reap about RM300 million from a proposed mixed development project in Setapak, Kuala Lumpur. It proposed to acquire a company, 59 iNC Sdn Bhd, which has the rights to develop 27.41 acres of land in Setapak here, from RM110 million. It planned to undertake a mixed development project, comprising commercial and residential PROPERTIES [], with a gross development value (GDV) of RM1.5 billion. “At a total development cost of approximately RM1.2 billion, the expected profits to be derived from the said development amount to about RM300 million representing 20% of the GDV,” MRCB said.

The Edge FinancialDaily reports Nippon Steel Corp, the world's fourth largest steelmaker, says it intends to raise its stake in Tatt Giap subsidiary Nippon EGalv Steel Sdn Bhd, which manufactures electro-galvanised steel.

Boustead Holdings has set aside RM1 billion in capital expenditure this year to expand the businesses it recently acquired, PHARMANIAGA BHD [] and MHS Aviation Bhd, to boost group earnings.

Lion Corp is seeking the approval from the lenders to defer the repayment of its bonds and the coupon on loan stocks from April 30 to July 31. The deferment involved the redemption of the outstanding nominal value of the Lion Corp B(a) bonds, class B (b) bonds amounting to RM54.35 million; repayment of the outstanding nominal value of the B debts amounting to US$100,000.

Sozo Global Limited has entered into a memorandum of understanding (MoU) with Halal Industry Development Corporation Sdn Bhd (HDC) to co-operate towards promoting and developing the Halal market.

FBMKLCI 1514.13 DJ-30.88 CRUDE OIL107.43 RM 2.994

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

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

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

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

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

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

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

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