FBMKLCI 1554.24 DJ+64.25 CRUDE OIL 95.57 RM 3.01

The sale of a 25% stake in RHB Capital Bhd (RHB Cap) by Abu Dhabi Commercial Bank Bhd (ADCB) at 2.25 times the book value of RHB Cap or RM10.80 per share, has set a relatively high pricing benchmark for the potential takeover of the bank by Malayan Banking Bhd (Maybank) and CIMB Group Holdings Bhd.

Muhibbah Engineering Bhd would continue to be actively traded after the sell-down on the stock following concerns that Asia Petroleum Hub (APH) -- which it undertook a project for -- faced receivership.
It saw RM152.11 million in market capitalisation wiped out on Thursday, as its shares fell 38 sen to close at RM1.52 – the lowest since mid-May. The market capitalisation was reduced from RM608.43 million to RM456.32 million. However, there could be some mild bargain hunting as some analysts viewed the selling as overdone and the worst-case scenario for Muhibbah was a write-down of the RM300 million due from APH, which would push Muhibbah into losses for FY11. APH, the developer and operator of the APH oil terminal in Johor, faced the prospects of receivership, news reports said. Muhibbah was awarded the marine piling and jetty works worth RM820 million. Cost escalation in 2008 led to funding issues for APH and the stalling of payments due to Muhibbah.

UEM Land Holdings Bhd has set an internal target for a 50% revenue growth in FY2011 and a 10% return on investment. Its managing director and CEO Datuk Wan Abdullah Wan Ibrahim said with the acquisition of SUNRISE BHD [], UEM Land was hoping to build its portfolio and surpass its competitors' revenue in the near future.

Mitrajaya has proposed to invest RM6 million cash for a 20% stake in Rawang Specialist Hospital Sdn Bhd (RSHSB). RSHSB is a private limited company incorporated in Malaysia to principally operate and manage a specialist hospital and to provide healthcare solutions under the name of Optimax Specialist Hospital (Rawang). On May 23, it awarded to Mitrajaya's unit, Pembinaan Mitrajaya Sdn Bhd, a RM46.41 million contract to build the eight-storey private hospital with 180 beds. The hospital is expected to commence operations in December 2013.

Merge Energy Bhd has secured RM38.1 million contract to undertake water treatment and associated projects in Kuantan. The contract was awarded by the East Coast Economic Region Development Council. It  involves the balancing reservoir, access road, treated water mains and associated works for the Panching water treatment.

Perusahaan Otomobil Kedua Sdn Bhd (Perodua) unveiled - the new MyVi -- an upgraded version of the best seller on Thursday night, June 16 and prices range from RM43,900 to RM57,400. The second national carmaker expects to sell about 8,500 units monthly. The price is from RM43,900 for the standard manual transmission and RM57,400 for the elegance automatic transmission on-the-road. Perodua plans to export the new MyVi units to Indonesia this month, starting with 500 cars, under the Daihatsu Sirion badge.

FBMKLCI 1556.19 DJ-178.84 CRUDE OIL 95.80 RM 2.9970

Tenaga Nasional Bhd (TNB) has bought more than 200,000 tonnes of fuel oil, for delivery between April and August, in addition to buying electricity from Singapore utility PowerSeraya, industry sources said yesterday. The fuel oil volumes were the largest TNB has purchased in at least five years, traders said, and were linked to natural gas supply disruptions that resulted from the maintenance shutdown of gas production platforms owned by state oil company Petronas. The first 15,000 tonnes is for Aug 1–3 delivery to the Sultan Iskandar Power Station in Pasir Gudang. Two more lots of 20,000 and 30,000 tonnes are for delivery to Kapar in Selangor in August

Integrated steel contractor Eversendai Corp Bhd plans to double its order book this year to RM3bil, on expectations of new projects in the United Arab Emirates (UAE), Qatar, Saudi Arabia and India.  Group managing director Datuk A.K. Nathan said the group was already in serious negotiations for some of the jobs related to infrastucture, power plants and high rise buildings. “We are pursuing quite a fair amount of jobs this year and I think we should not have any problem to secure about RM1bil to RM1.5bil worth of new jobs based on our good track record all this while,” he told reporters yesterday at a media briefing after the official launch of the group's initial public offering (IPO) prospectus.

Alam Maritim Resources Bhd is bidding for RM400mil to RM500mil worth of contracts in offshore installation and construction (OIC) as well as offshore support vessel (OSV) services sector, said managing director and chief executive officer Azmi Ahmad. However, Azmi said the success rate was quite difficult to predict under the prevailing market environment although the company's historical success rate was at 10% to 22%.

Gamuda Bhd and MMC Corp Bhd have entered into a joint venture (JV) for the pre-qualifying and tendering works in relation to the underground work package for the Klang Valley Mass Rapid Transit project. In separate announcements to Bursa Malaysia yesterday, both companies said they would each have a 50% stake in the JV. “The breakdown of the total capital, investment outlay and the eventual issued and paid-up capital of the JV will be according to the proportion of interest of each party and could only be determined when the JV is successfully awarded the underground work package of the project,” they said.

Both companies said they planned to finance their respective portions of investments via their own funds and/or borrowings.

HPI Resources Bhd has received a takeover offer from Japan's Oji Paper Co Ltd to acquire all of the former's 58.528 million shares for RM257.52mil or RM4.40 per share. In a filing with Bursa Malaysia yesterday, the corrugated packaging manufacturer said it had received the notice of the conditional take-over offer from RHB Investment Bank on behalf of Oji Paper's wholly-owned subsidiary, Oji Paper Asia Sdn Bhd. “The board has deliberated on the offer and does not intend to seek an alternate person to make a take-over for the offer shares,” the company said. The offer price of RM4.40 represents a premium of 47 sen or 12% over its last traded price of RM3.93.

Trading of shares in ACE Market-listed Ecofuture Bhd will be suspended from June 23 as it failed to appoint a replacement sponsor by designated June 10 deadline. The Guidance Note 3 company could also potentially be delisted on June 27 unless an appeal is submitted to Bursa Malaysia by June 22. Ecofuture was unable to appoint a replacement sponsor within three months after its then sponsor ECM Libra Investment Bank Bhd tendered its resignation on March 10.

Equine Capital, which had fallen from the radar screen in recent years, is trying to make a company through its property venture. It is launching a mixed commercial and residential freehold development project -- da:mén -- or “Great Door) in USJ, Subang Jaya which is near the Summit shopping mall and hotel. It promises to offer a distinctively unique retail and dining experience with lifestyle pleasures for the urbanites. The company has also returned to the black in the financial year ended March 31, 2011. In the fourth quarter ended March 31, it reported net profit of RM2.25 million compared with net loss of RM25.57 million a year ago. For the 12-months, its net profit was RM6.37 million compared with net loss of RM36.43 million a year ago. However, its cashflow was enhanced following proceeds from disposal of investment property totaling for RM28 million. Its cash and cash equivalents at end of the financial year was only RM6.4 million

Unisem expects the current financial year ending Dec 31, 2011 to be lacklustre due to tough economic environment in major markets. Group managing director John Chia said Unisem’s financial results in FY 2011 was unlikely to be better than the previous year's numbers due to a tougher economic environment in the US, Europe, Japan and China, apart from the weakening of the US dollar. "Our capital expenditure this year will be less than FY10 capex of some RM380 million" Chia said at Unisem's shareholders meeting.

FBMKLCI 1547.92 DJ+123.14 CRUDE OIL 99.31 RM 3.0080

Tenaga Nasional Bhd's (TNB) unit TNB Repair and Maintenance Sdn Bhd (TNB Remaco) has secured an operation and maintenance agreement worth US$14.1mil (RM43mil) from Pakistan's Laraib Energy Ltd.

TNB Remaco will be the operator of the 84MW New Bong Escape Hydroelectric Power Complex on the Jhelum River in Azad Jammu and Kashmir.

Furniture-maker Baswell Resources Bhd made a slight gain when it resumed trading yesterday after its shares trading was halted in the morning session. The counter rose 0.5 sen to 10 sen at 3.14pm doing 90,000 shares as investors ignored the winding-up petition that was served the company on June 10. Baswell said on Monday that the petitioner Oh Han Cheng had sought for the winding up of Baswell for defaulting a payment of RM3.31mil. The company said the repayment of the loan was deferred from Dec 16, 2010 to June 16, 2011 at the request of Baswell vide a letter dated Dec 20, 2010, and confirmed and accepted by the petitioner by a letter dated March 25. It also said the group had announced on March 30 its intention to dispose of BISB's land for RM19mil and would use the proceeds to repay RM693,000 of the RM3.31mil.

MSM Malaysia Holdings Bhd, the federal land authority’s sugar refining arm, has priced its initial public offering (IPO) at RM3.50 per share for institutional investors, a source with direct knowledge of the deal said yesterday. The price is at the top end of the RM3.30-RM3.50 range set earlier, valuing the IPO at about RM817mil. MSM is selling about 234 million shares in the IPO. The institutional portion would comprise about 206 million shares or 29.4% of the enlarged share capital. The retail portion would consist of about 28 million shares or 4% of the enlarged share capital.

United U-Li Corp Bhd will be in focus again on Wednesday, June 15 after the company said it was mulling distributing part of the RM200 million from the sale of its three units to entitled shareholders.

MBM Resources will invest some RM250 million over the next five years to transform the group into one of the key automotive players in Malaysia and the region. Managing director, Looi Kok Loon, said the capital expenditure would primarily be used to expand its manufacturing infrastructure and enhance its nationwide retail and service network. "The company is also investing in new manufacturing facilities to cater to product line extensions and equip itself with vehicle assembly capabilities," he said, adding MBM planned to expand the car parts business and vehicle assembly.  He said the company was actively seeking partners in vehicle assembly.

FBMKLCI 1545.88 DJ +1.06 CRUDE OIL 96.87 RM 2.9980

Malayan Banking Bhd (Maybank) will be making a proposal to acquire RHB Capital Bhd before the end of this month, according to Maybank chairman Tan Sri Megat Zaharuddin Megat Mohd Nor. He said Maybank would proceed with the acquisition only if it was earnings accretive. Megat Zaharuddin said a merger with RHB Capital Bhd would provide scale to Maybank. “For example, it would expand our reach in Thailand and Singapore. Scale is important, especially when you are trying to compete in a region which is becoming a lot more challenging. We have global players from other parts of the world which are focusing on this part of the world, and you need scale in order to compete,” he said after Maybank EGM yesterday.

Malaysian property developer SP Setia Bhd plans to increase its landbank in Australia, predominantly in popular cities such as Melbourne, Sydney and even Gold Coast, as it seeks to capture the growing opportunities from the population boom of these cities. Having made its first Australian investment last year, the developer is in the midst of scouting for more investment opportunities in Melbourne. “For the first few years, we are looking for investment opportunities and to take on projects that will provide quick turnaround and are easy sell. Subsequently, we will look at greenfield projects and (at building) townships,” Setia (Melbourne) Development Co Pty Ltd chief executive officer Choong Kai Wai told Malaysian reporters here last Friday.

Alam Maritim Resources Bhd (AMRB) has been awarded a contract valued at RM52mil from Samsung Engineering Malaysia Sdn Bhd. The contract, awarded to its wholly-owned subsidiary, Alam Maritim (M) Sdn Bhd, was for the purchase order from Samsung to supply engineering work, supply of materials, fabrication, load-out and commissioning of two units of single point mooring buoy for Sabah Oil and Gas Terminal project.

Silver Bird Group Bhd has proposed a private placement exercise of new ordinary shares of up to 10% of its issued and paid-up share capital. The actual proceeds to be raised from this would be dependent on the issue price and actual number of placements shares to be issued. The company, in its filing to Bursa Malaysia yesterday, said the said proceeds from the proposed private placement should be utilised for repayment of bank borrowings as well as to defray the expenses in respect of the proposed private placement.

The group's total outstanding borrowings stood at RM130mil as of June 6.

MMC Corp Bhd’s subsidiary Malakoff Corporation Bhd is set to build a 1,000MW coal-fired plant next to the current Tanjung Bin power plant. The company said it had accepted a conditional offer made by the government to develop the plant and the expected commercial operation date was March 1, 2016. Malakoff is MMC Corp’s 51%-owned subsidiary, whose unit Tanjung Bin Power Sdn Bhd owns the Tanjung Bin power plant. MMC Corp said among the conditions in the offer by the government via the Energy Commission were the finalisation of the terms of the agreements relating to the project; and the approval of the detailed environmental impact assessment from the Department of Environment Malaysia.

Sime Darby's healthcare division is investing RM280 million in two hospital projects in the Klang Valley as part of the government’s health tourism plan under the Economic Transformation Programme (ETP). The conglomerate said it would invest in a 220-bed Sime Darby Medical Centre Ara Damansara in Subang which will be operational by the third quarter of 2011. The 300-bed Sime Darby Medical Centre ParkCity will be operational by the second half of 2012.

KNM’s total book order rose to RM5.5 billion as at May this year, of which RM1.4 billion in orders were secured in 2010. Bulk of the orders was secured in the second half of last year, totaling RM3.10 billion. The remaining RM1 billion of orders were secured in the first half of 2010 and earlier. As at January this year it had tendered for RM16 billion of orders and based on a 20% success rate, that would translate into RM3.2 billion.

MWE has attracted attention after it disclosed that it bought RM98.12 million of quoted securities from Sept 2, 2010 to June 10 this year. It said the total cost represented 24.74% of MWE group's net assets as at Dec 31, 2010. As at June 10, the total cost of its acquisitions was RM121.08 million while the book value was RM203.84 million. This was an increase of RM82.76 million but MWE did not provide details of those quoted securities.

FBMKLCI 1550.89 DJ +75.42 CRUDE OIL 101.87 RM 2.9840

New stock listing

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

1.    0165                XOX                 0.80                             0.50                  4.00

 

 

XOX, the mobile virtual network operator reported net loss of RM1.66 million in the quarter ended March 31 mainly due to the selling and distribution expenses which were necessary in creating brand awareness for XOX’s services.

UOA Development Bhd continued its slide on Bursa Malaysia after making its debut on the stock exchange on Wednesday with the stock falling 2.7% to RM2.53 yesterday. OSK Research put a fair value of RM3.57 per share, which represented a 37.3% upside from its RM2.60 offer price, based on 1x its RNAV (revised net asset value) valuation. “There is nothing wrong. Maybe investors' perception was affected by the low par value against the share's offer price,” he said, adding that the local bourse was also flat over the last few days. Another analyst said perhaps investors did not like that a large portion of UOA Development's ongoing projects were in its 60-acre flagship Bangsar South City in Kampung Kerinchi, Kuala Lumpur.

SP Setia Bhd's net profit for the second quarter ended April 30 surged 80% to RM92.22mil from RM51.21mil a year earlier due to a gain arising from the disposal of an investment property. Revenue for the period increased to RM496.75mil from RM409.07mil a year earlier.

Haisan Resources Bhd said the suspension on the trading of its securities and the delisting of the company had been deferred pending the decision of Bursa Securities on its application for extension of time to submit the regularisation plan to the relevant authorities, it said in a filing with Bursa Malaysia.

Malaysia Marine and Heavy Engineering will replace Malaysia Airlines in the FTSE Bursa Malaysia KLCI following the semi-annual review of the FTSE Bursa Malaysia Index Series yesterday, FTSE Group and Bursa Malaysia Bhd said.

UEM Land Holdings Bhd, the real estate investment and development company of UEM Group, is collaborating with Iskandar Investment Bhd, the main property developer for Iskandar Malaysia, to develop retail and residential units in Nusajaya, Johor with a gross development value of RM850mil.

Favelle Favco received four contracts to supply cranes and spare parts totaling more than RM70.3 million. Three of the orders were to supply cranes and the fourth was to supply the spare parts.

Berjaya Food’s net profit slipped 14.2% to RM2.505 million in the fourth quarter ended April 30, 2011 compared with RM2.92 million a year ago due to higher advertising and promotional expenses. Revenue rose 9% to RM17.75 million from RM16.28 million. Earnings per share were 1.77 sen versus 2.07 sen a year ago. It proposed dividend of three sen a share. For the financial year ended April 30, 2011, its net profit rose 22% to RM10.59 million from RM8.68 million while its revenue increased by 19% to RM71.94 million from RM60.41 million.

FOCUS DYNAMICS TECHNOLOGIES [] Bhd’s new 144.58 million shares issued under the rights issue with warrants and 96.39 million warrants will be listed and quoted on Friday.

FBMKLCI 1551.10 DJ-21.87 CRUDE OIL101.42 RM2.964

Petronas reported net profit attributable to shareholders of US$17.46 billion in the financial year ended March 31, 2011 (FY11), which was a 50% increase from the US$11.64 billion in FY10.Revenue increased to US$76.82 billion, up 26.1% from US$60.92 billion. President and CEO  Datuk Shamsul Azhar Abbas said Petronas will be spending RM300 billion in capital expenditure for the next five years, this was an upward revision from the RM250 billion mentioned a few months ago. For the fourth quarter, its earnings increased 49.8% to US$3.49 billion from US$2.33 billion the year before on the back of higher realised prices for petroleum products, crude oil and condensates, as well as other energy commodities.  Its revenue increased 22.8% to US$21.45 billion from US$17.47 billion.

Latexx Partners  accepted a lower offer of RM1.25 billion from the YTY Group of companies in a proposed merger instead of RM1.365 billion earlier. The glove maker said 30% of the purchase consideration or RM375 million would be in cash. The balance of RM875 million would be in the form of 350 million new shares at an issue price of RM2.50 per share.

MAA Holdings has obtained the Minister of Finance’s (MoF) approval to dispose of its 100% stake in Malaysian Assurance Alliance Bhd (MAAB) for RM344 million to Zurich Insurance Company Ltd.

Tenaga Nasional Bhd (TNB) is buying power from Singapore-based PowerSeraya Ltd, a unit of YTL Power International Bhd, as a shutdown of Petroliam Nasional Bhd-owned gas production platforms for maintenance work made worse a dwindling gas supply situation. Chief executive officer Datuk Seri Che Khalib Mohd Noh said in a reply to a StarBiz query that the purchase was made to ensure supply security. “We're buying 180MW only, which represents 1.5% of total demand,” Che Khalib said. The report said the purchase was made following an approach by TNB in April to Singapore's Energy Market Authority and the generating companies for electricity supply needed to tide over capacity shortages “for a few months”. This was caused by natural gas feedstock shortages faced by TNB's power stations due to the maintenance shutdowns, which could further reduce by 30% in the May to June period.

The “very substantial transaction” that United U-Li Corp Bhd (Ulicorp) is expected to announce tomorrow is likely to be the signing of a deal with a foreign party. The management has remained tight-lipped about the details, but observers believe that the agreement will be for a major joint venture. In addition, sources close to the company have ruled out the possibility of the company being taken private. The proposed joint venture is primarily to open doors for business expansion, and not so much about funding, because the company's balance sheet is fairly sturdy.”

UOA Development Bhd closed at RM2.59, one sen lower than its reference price of RM2.60 per share, after the stock made its debut on the Main Market of Bursa Malaysia yesterday.chief operating officer (development division) David Khor said UOA would work towards integrating more green building components in its commercial development. On its recent acquisition of a RM50mil land in Sri Petaling, Khor said the company planned to build high-end condominiums there but the details had yet to be finalised. “The company has about RM8.6bil worth of properties to be launched over the next seven to 10 years,” he said. Khor said about 70% of the properties developed by UOA were for commercial purposes while the rest were residentials. “We hope the ratio will change in two years, with residential projects contributing more (to the volume),” he said.

With the emergence of Malaysia’s pilgrim fund board Lembaga Tabung Haji (LTH) as one of major shareholders of Faber Group Bhd, chances of the latter securing renewal of crucial contracts and new projects, especially in the local and the United Arab Emirates (UAE) markets, will seem brighter now. According to analysts, investors over the past few months have been particularly concerned about the uncertainty of Faber’s 15-year concession in providing health support services to government hospitals in Malaysia being renewed. “But with LTH backing now, the prospects of the concession being renewed have certainly improved, and this would certainly enhance investor confidence in the integrated facilities management and property solutions company,” MIDF Amanah Investment Bank Bhd analyst Belford Chang told StarBiz.

FBMKLCI 1551.89 DJ-19.15 CRUDE OIL 99.30 RM 2.9825

UOA’s institutional price has been fixed at RM2.60 and the final retail price at RM2.52. At RM2.52, this was below the indicative retail price of RM2.90.

Hap Seng Consolidated has allocated RM460 million as capital expenditure for its six divisions this year, said its group managing director, Datuk Edward Lee Ming Foo. The divisions are PLANTATION []s, property investment and development, credit financing, trading of fertilisers and automotive, as well as building materials and stone quarries. Bernama quoted Lee as saying the company planned to reduce its dependence on the plantation division as it hoped to grow other core businesses -- fertiliser trading, building materials, automotive and property holdings and development. He said the plantation division accounted for 50% to its profit.

Boustead Holdings Bhd, which holds a 97% stake in Pharmaniaga Bhd, will pare down its stake to 75% or below but will continue to be the pharmaceutical company's controlling shareholder. “Pharmaniaga will be maintained as a listed entity and we will have to fulfil the public shareholding spread,” Boustead deputy chairman and group managing director Tan Sri Lodin Wok Kamaruddin said after Pharmaniaga's AGM yesterday.

Zecon has received a letter of intent (LOI) from the Public Works Department to build the Petra Jaya Hospital in Kuching. Zecon said it had received the letter informing it that the company would be appointed to build the hospital by the Ministry of Finance by way of direct negotiation on the "design & build" basis.

In Faber Group Bhd, Lembaga Tabung Haji has emerged as a substantial shareholder with a 9.92% stake or 36 million shares. It acquired the shares in an off-market deal from Universal Trustee (M) Bhd on June 2.

Contrary to speculation, PLUS Expressways Bhd, the country’s largest toll operator, will not likely be paying out its dividends sooner than usual as the distribution of proceeds from the disposal of its assets will likely happen only in late September. It was previously reported that PLUS might be paying out a dividend sooner than the normal timeline to assuage shareholders who had a relatively long wait for the returns from the pending sale of the company’s assets and liabilities.

FBMKLCI 1552.14 DJ-61.30 CRUDE OIL 98.76 RM 2.9660

MBSB’s additional 506.42 million new ordinary shares of RM1 each issued pursuant to the rights issue with warrants will be listed on Tuesday. MBSB closed three sen lower at RM1.50 on Monday. MBSB’s 506.42 million warrants issued pursuant to the rights issue will also be listed on Tuesday.

Knusford is teaming up with Pembinaan Hamid Abd. Rahman Sdn Bhd to submit prequalification and/or tender for part of the multi-billion ringgit Mass Rapid Transit project in the Klang Valley, The portion would be the Sungai Buloh to Kajang stretch. Knusford will hold a 40% stake and  PHAR 60% in the joint venture company.

London Biscuits Bhd’s net profit fell sharply to RM804,000 in the third quarter ended March 31, 2011 from RM4.03 million a year ago and the company expected the year to be challenging. Revenue fell to RM65.10 million from RM50.92 million while earnings per share were 0.84 sen compared with 4.64 sen. “The group’s result is within management’s expectation in view of the impact of the strength of the ringgit and increase in raw material cost,” it said. For the nine-month period, net profit was RM6.22 million compared with RM11.65 million despite higher revenue at RM183.79 million versus RM152.14 million.

N2N Connect said it was acquiring an 11-storey office building in Bangsar South for RM36 million cash to be partly used as its office space, and to be let out to tenants.

The new Perodua Myvi, due to be launched on June 16, will boost passenger vehicle sales this year, according to automotive analysts. OSK Research said in a report yesterday that Perodua's revised sales forecast of 195,000 units (previously 171,750 units) this year was easily achievable due to the earlier-than-expected launch of the new Myvi. The research firm also upgraded its Malaysian automotive total industry volume (TIV) forecast for 2011 by 4% to 597,456 units, which was a year-on-year decline of 1.3% (TIV hit an all-time high of 605,156 units last year). OSK Research maintained its “sell” call, with a fair value of RM6.61 on UMW Holdings Bhd, which owns a 38% stake in Perodua. OSK Research also upgraded its call on MBM Resources Bhd, which has a 20% stake in Perodua, to “buy” with a fair value of RM3.80, and raised its earnings projection for the current financial year by 20.2%.

Main-board bound UOA Development Bhd posted a net profit of RM130mil for the first quarter ended March 31. Revenue for the period stood at RM145.7mil. The property developer which is expected to be listed tomorrow said its pre-tax profit of RM155.7mil for the three months period was achieved after spending RM21.9mil for administrative and general expenses and RM22.1mil for tax expense.

Time Engineering's shareholderes approved its proposal of a renounceable offer for sale of up to 626.18 million shares (or 24.74% stake) in TdC to Time Engineering shareholders. The offer price for the shares will be fixed by Time Engineering's board of directors at a later date to be announced, and will be priced with at least 20% discount of the five-day volume-weighted average price up to the day prior to the price-fixing date. It will not be less than 48 sen per offer share. The offer is on the basis of eight offer shares for every 10 shares held in Time Engineering.

In an unprecedented move, Sime Darby Plantation Sdn Bhd (SDP) has increased the salaries of 37,000 of its estate and mill workers throughout the country, with each of them expected to earn an extra RM200 in basic salary effective July 1st. SDP has allocated between RM120 mil and RM130mil per annum for this purpose including the increase in EPF and SOCSO contribution, said Sime Darby president and group CEO Datuk Mohd Bakke Salleh.

FBMKLCI 1560.40 DJ-41.59 CRUDE OIL100.73 RM 2.9955

Malakoff Corp Bhd, owned by MMC Corp Bhd, is expected to be awarded a contract to build a 1,000MW coal-fired power plant soon, said sources. According to sources, the plant will have a 15-year concession to sell the power at a rate of 25 sen per kwh to Tenaga Nasional Bhd (TNB).

Petroliam Nasional Bhd (Petronas), via its wholly-owned subsidiary Petronas International Corp Ltd (PICL), has signed an agreement with Canada-based Progress Energy Resources Corp to acquire 50% of the latter's interest in shale gas assets worth C$1.07bil (RM3.32bil). In a statement yesterday, Petronas said the agreement was signed to develop the Altares, Lily and Kahta shale gas assets in north-eastern British Columbia. “The assets included in the transaction cover approximately 150,000 gross working-interest acres of land with an estimated contingent gas resource of more than 15 trillion cu ft. The assets will be operated by Progress,” said Petronas.

MTD Construction Sdn Bhd (MTDC) has won its RM38.59mil suit against AXA Affin Assurance Bhd  involving a claim on a contractors’ All Risks Policy against the latter. In a note to Bursa Malaysia yesterday, MTD ACPI Engineering Bhd said the case was ruled in favour of MTDC on May 27, with the judge holding AXA Affin liable for the damages to be assessed before the Court Registrar.

The hike in electricity tariff and gas prices will impact the steel, cement and glove manufacturing sectors, according to research firms. HwangDBS Vickers Research said the full-year earnings projections of steel makers Southern Steel Bhd, Kinsteel Bhd and might be lower by between 17% and 25% while forecast earnings for glove manufacturers Top Glove Corp Bhd and Kossan Rubber Industries Bhd could drop by between 5% and 7%. CIMB Research said electricity accounted for 8% of total costs for steel maker Ann Joo Resources Bhd as well as 18% of those for cement producers Lafarge Malayan Cement Bhd and Tasek Corp Bhd.

Petra Energy Bhd’s wholly-owned subsidiary, Petra Resources Sdn Bhd (PRSB) has signed a memorandum of understanding (MoU) with Labuan Shipyard & Engineering Sdn Bhd (LSE) for the proposed utilisation of the latter’s shipyard facilities at Victoria Harbour, Labuan Island. Petra Energy told Bursa Malaysia yesterday that the MoU was for the purpose of PRSB’s fabrication activities.

Mobile virtual network operator XOX Bhd’s initial public offering (IPO) has been oversubscribed by 13.2 times. Its IPO atracted 6,652 applications for 106.5 million shares with a total value of RM85.2mil, for the public tranche of 7.5 million shares, the company, which slated for ACE market listing on June 10, said in a statement yesterday.

Genting Bhd could also be in focus given its overseas expansion plans in Miami, with expectations that the group would try to secure a gaming licence there.

FBMKLCI 1556.42 DJ-279.65 CRUDE OIL100.13 RM2.9770

The potential merger of either Malayan Banking Bhd (Maybank) or CIMB Group Holdings Bhd with RHB Capital Bhd would bring the new enlarged entity not too far behind some of the largest banks in the region. The top regional banks in Asean include three Singapore banks DBS Group Holdings Ltd, Oversea-Chinese Banking Corp Ltd (OCBC) and United Overseas Bank Ltd (UOB) with market capitalisation of US$27.7bil, US$25.7bil and US$24.5bil respectively. While in terms of asset size, the Singapore banks remain at the top, a Maybank-RHB Cap merger could overtake DBS Group in terms of combined market capitalisation with US$28.8bil. The potential merger of CIMB-RHB, on the other hand, would see a combined market capitalisation of US$27.3bil, just marginally below DBS but would overtake both OCBC and UOB. In terms of asset size, DBS, OCBC and UOB stand at US$238bil, US$198.4bil and US$178.8bil respectively.

Following the dismissal of Primus (M) Sdn Bhd's petition against the sale of EON Capital Bhd (EON Cap) to Hong Leong Bank Bhd (HLB), Primus now has to pay RM1.9mil in court costs. High Court Judicial Commissioner Varghese George Varughese ordered Primus to pay the sum to the 13 respondents in its suit EON Cap and nine of its board members, and three entities controlled by two of those board members.

Sarawak Energy Bhd (SEB), which will have the rights to the Bakun dam's power at a rate of 6.25 sen per kwh, has a firm utilisation rate of 50% from its four customers. The electricity from the Bakun dam which is priced at 6.25 sen/kwh with an annual hike of 1.5% under a power purchase agreement (PPA) between Sarawak Hidro Sdn Bhd and Syarikat Sesco Bhd confirmed a StarBiz report yesterday. StarBiz quoted sources saying the rate represented the cheapest tariff in Asian history but would be escalating at 1.5% per annum for 30 years.

SapuraCrest Petroleum Bhd (SapCrest) has signed an agreement with Real Mild Sdn Bhd and Labuan Shipyard and Engineering Sdn Bhd (LSE) for the subscription of 25 million new shares in LSE. The shares, according to SapCrest in a filing with Bursa Malaysia yesterday represented a 50% stake of the enlarged share capital of LSE.

Oil and gas services provider Dialog Group Bhd has entered into a joint-venture agreement with Vopak Terminal Pengerang BV, a unit of the Royal Vopak group, for the development of an independent deepwater petroleum terminal at Pengerang, Johor worth RM5bil. The company told Bursa Malaysia yesterday that both parties had set up a joint-venture company - Pengerang Terminals Sdn Bhd - in which Dialog would hold a 51% stake and Royal Vopak the remainder.

Water concessionaire Puncak Niaga Holdings Bhd is expected to register a loss this financial year following the adoption of a new accounting treatment that requires certain charges to be capitalised as intangible assets and amortised. Managing director Datuk Hashim Mahfar said in a statement yesterday that the IC Interpretation 12-Service Concession Arrangements, which were retrospective, had also resulted in a drop in shareholders' funds from RM1.5bil to RM35.6mil. However, Puncak Niaga has obtained a conditional waiver from being categorised a PN17 company until the announcement of its second-quarter results for the period ending June 30, 2012. (Under Bursa Malaysia rules, that would have been the case if a company's shareholders' funds fell below RM40mil).

Benalec expects to realise a net gain of RM34.93 million from the completion of separate agreements its units have entered for the disposal of land and joint venture for a mixed property development. Benalec on June 1 said its subsidiaries Sentosacove Development Sdn Bhd and Orientalcove Realty Sdn Bhd had entered into a sale and purchase agreement and joint venture agreement with Vista Selesa Development Sdn Bhd, respectively.

CBIP is selling its entire equity interests in Sachiew PLANTATION []s Sdn Bhd and Empressa (M) Sdn Bhd for a total of RM268.06 million. Sachiew is principally involved in the cultivation of oil palm and production of crude palm oil and palm kernel, while Empressa engages in the cultivation of oil palm and the operation of a palm oil mill. CBIP said the gross proceeds of RM268.06 million from the disposal would be utilised for its working capital including for financing receivables, inventories, and repayment of bank borrowings.

Bina Puri’s 80%-indirect owned subsidiary PT Megapower Makmur has received two contracts from PT PLN (PERSERO) to operate power plants in Indonesia.

FBMKLCI 1558.29 DJ+128.21 CRUDE OIL102.85 RM 2.9735

the biggest takeover battle in Malaysia's corporate history, banking heavyweights Malayan Banking Bhd and CIMB Group Holdings Bhd have declared their interest to wrest control of RHB Capital Bhd, which could cost over RM20bil. This development confirmed heated speculation in recent weeks that the country's largest and second largest banks, Maybank and CIMB respectively, were vying to take over RHB Cap, which is the fifth largest banking group. Sources said due to the rife market talk and “leaks”, Maybank and CIMB were directed by the central bank to disclose their interest to bid for RHB Cap to curb further speculation. Alongside this major takeover bid, is the sale of Abu Dhabi Commercial Bank's (ADCB) 25% stake in RHB Cap.

Investor sentiment towards Tenaga Nasional Bhd (TNB)'s stock immediately turned positive, following Monday's announcement of a long-awaited power tariff hike, as evident in the rise of the company's share price yesterday. The counter gained 59 sen, or 9%, to close at RM7.11 yesterday. It also topped the list of most actively traded stock on Bursa Malaysia, with 89 million shares changing hands. TA Research in its report explained that the impact on TNB's FY11 earnings would slightly be negative as the higher tariff would only have two months' impact on revenue, that is, for July and August, since June bill would still be reflecting usage in May, in which the previous tariff still applied. The higher gas price, on the other hand, will have three months' impact, that is between June and August. In addition, the revised tariff was still based on coal price of US$85 per tonne, and Tenaga still had to absorb the differential to actual market rate of around US$120 per tonne.

Hydropower from the 2,400-megawatt Bakun Dam project is likely to be sold, on an escalating basis, at 6.25 sen per kilowatt (KwH) to Sarawak Energy Bhd, the state utility arm. Sources told StarBiz this represented the cheapest tariff in Asian history but would be escalating at 1.5% per annum for 30 years. “The tariff is expected to be sufficient to pay off all Federal Government debts in 15 years,'' said a source, adding that in total, the valuation came close to RM8bil. The power purchase agreement (PPA) signing between the Federal and Sarawak state governments is expected to take place today.

Maxis Bhd saw its first quarter net profit decline slightly by some 2% to RM539mil compared with RM552mil made a year ago due to higher borrowing costs. For the three-months ended March 31, Maxis made a revenue of RM2.13bil, or less by 1%, compared with RM2.15bil made a year ago. Revenue declined due to lower voice, interconnect and hubbing revenue. the company said the drop in interconnect revenue was due to reduction in mobile and fixed termination rates since July last year. Meanwhile, the decline in hubbing revenue was in line with the planned scale down in its hubbing business. Maxis declared a first interim single-tier tax exempt dividend of 8 sen per share in respect of the financial year ending Dec 31, 2011, to be paid on June 30, 2011.

Malaysia Airports Holdings Bhd (MAHB) recorded a 20% jump in net profit to RM88mil for the first quarter ended March 31, led by strong demand for air travel. This was despite uncertainties in the aviation sector due to political tensions in the Middle East and earthquake and tsunami in Japan. Revenue rose 22%, or RM118mil, to RM610mil from RM498mil a year ago. However, the airport operator's earnings before interest, tax, depreciation and amortisation (EBITDA) was marginally lower at RM189mil from RM190mil a year earlier.

Axiata Group Bhd reported a 40.5% year-on-year drop in net profit to RM548.4mil for the first quarter ended March 31. The lower net profit was attributed mainly to a 97.7% year-on-year dip in the group’s other operating income to RM7.5mil in the quarter under review. This was because there was a one-off gain from the disposal of shares in Indonesian unit PT XL Axiata Tbk of RM307.5mil recorded in the same period last year.

MMC CORPORATION BHD []’s net profit for the first quarter ended March 31, 2011 rose 29.5% to RM43.04 million from RM33.23 million a year earlier, due mainly to higher contributions from most of its divisions. Revenue for the quarter increased to RM2.23 billion from RM2.06 billion in 2010. Earnings per share was 1.41 sen while net assets per share was RM2.19.

Ajinomoto (Malaysia) Bhd net profit for the fourth quarter ended March 31, 2011 rose to RM5.39 million from RM1.48 million a year earlier, due mainly to lower sales and marketing expenses. Ajinomoto proposed dividend of 20 sen per share in respect of the FY ended Mrch 31, 2011 comprising a first and final gross dividend of nine sen; a nine sen tax-exempt dividend as well as special gross dividend of two sen per share. For the financial year ended March 31, Ajinomoto’s net profit rose to RM25.73 million from RM23.94 million, on the back of revenue RM316.17 million.

FBMKLCI 1542.84 CRUDE OIL 100.67 RM 2.9910

After several rounds of deferment and a long wait, Tenaga Nasional Bhd (TNB) has finally gotten the green light to implement new electricity tariff rates which will help it mitigate the effects of higher gas prices. “As a result of the gas price increase, TNB's gas bill will increase by about RM1.5bil per year. “Due to the gas price increase, TNB will have to increase the electricity tariff to cover for the additional cost,” TNB president and CEO Datuk Seri Che Khalib Mohd Nor said at a briefing yesterday. Tenaga has been allowed by the government to increase its base tariff by 2%. As a result, average tariff will increase by 7.12%; industrial consumers and commercial users will see an average hike of 8.3%, but Tenaga said there would be no increase to about 75% of households.

Boustead Heavy Industries Corp Bhd (BHIC) signed a joint-venture deal with Prokhas Managers Sdn Bhd (PMSB) yesterday to supply artillery propellants to the Malaysian Armed Forces. Under the joint venture, a new company, namely Pyrotechnical Ordnance Malaysia Sdn Bhd, will produce double base artillery propellants at a plant located on a 21-acre site in Bentong, Pahang. The plant is due to begin production in the third quarter of next year.

Analysts are confident that Sime Darby Bhd is making progress with the portfolio review and divestment of non-core assets after suffering massive losses in the oil and gas division a year ago. The share price has also moved up especially since the announcement of the non-binding memoranda of agreement to sell the Teluk Ramunia fabrication yard to Petroliam Nasional Bhd for RM296mil and the Pasir Gudang fabrication yard to Malaysia Marine and Heavy Engineering Holdings Bhd for RM399mil. The conglomerate posted a net profit of RM820.1mil for the third quarter ended March 31 after suffering a loss of RM308.6mil in the same corresponding period last year on higher contribution from plantation, motors, industrial, and energy and utilities divisions. Revenue for the period under review also rose to RM10.6bil from RM7.6bil previously.

Oldtown Bhd is pricing its issue/offer price at RM1.25 per share for its initial public offering (IPO) of 96.4 million shares of RM1 each,  The company, which owns and operates the Oldtown White Coffee chain, aims to list on Bursa Malaysia's Main Market on July 11. According to its prospectus draft, the company is offering 63.4 million new ordinary shares for application by the Malaysian public, directors, eligible employees and business associates of Oldtown and its subsidiaries.

Malayan Flour Mills Bhd (MFM) has proposed a share split of every one existing ordinary share of RM1 each in the company into two new ordinary shares of 50 sen each. Based on the issued and paid-up capital of MFM of RM107.6mil comprising 107.6 million shares as at May 27, the share split would result in an issued and paid-up capital of RM107.6mil comprising 215.3 million shares. 

CIMB Group's first quarter results came in slightly below expectations but the second half will likely be boosted by stronger capital market activities, higher domestic net interest margin (NIM) and impact from various economic transformation projects. CIMB reported net earnings of RM917mil, representing an increase of 9.3% for the first quarter (Q1) of financial year (FY) 2011.

PLUS Expressways Bhd’s net profit for its first quarter ended March 31 rose by 75.3% to RM495.1mil as it received RM364mil of compensation in accordance with the terms in the current concession agreements.

PLUS said RM364mil of compensation was included in the current quarter under review.

TIME dotCom Bhd net profit for the first quarter ended March 31 surged 21.8% to RM22.9mil from a year ago due to higher revenue and improved margins. Revenue for the quarter increased 7.7% from the same quarter last year to RM70mil as a result of higher data earnings within its wholesale and corporate segments. TIME’s data business posted a 16% growth to contribute RM51.1mil in revenue. Earnings per share for the quarter also increase to 90 sen from 74 sen a year ago.

Proton unit Group Lotus plc has won the right to use the name “Lotus” within Formula 1, and entitled to race in its historic black and gold livery. Proton said the Chancery Division of the English High Court had on last Friday, May 27 had also ruled that 1MRT was in breach of the Licence granted to them by Group Lotus to race in Formula 1 under the name Lotus Racing and had awarded Group Lotus damages in respect of that breach.

Brem Holding Bhd net profit for the fourth quarter ended March 31, 2011 surged to RM26.72 million from RM2.12 million a year earlier, due mainly to the reversal of allowance for impairment of RM21.5 million.

The company proposed a gross dividend of five sen per share for the financial year ended March 31.

FBMKLCI 1548.69 DJ+38.82 CRUDE OIL100.46 RM2.9910

Sime Darby posted net profit of RM820.12 million in the third quarter ended March 31, 2011 compared with net loss of RM308.63 million a year ago. Revenue increased by 39.8pct to RM10.59 billion compared with RM7.57 billion. Earnings per share were 13.66 sen.

Land & General posted losses of RM3.22 million in the fourth quarter ended March 31, 2011 compared  with net profit of RM12.91 million a year ago mainly due to losses in quoted investments. “The loss for the current quarter arose mainly due to  fair value loss of RM3.5 million recognised on its quoted investments, net interest expenses of RM1.1 million recognised from FRS 139 implementation, and share of losses from its jointly controlled entities of RM1.7 million,” it said.

Alam Maritim posted net losses of RM7.38 million on weaker performance by it offshore support vessels segment. Net loss for 1Q ended March 31, 2011 was a stark contrast of RM20.51 million a year ago.

Revenue fell 48% to RM34.68 million from RM66.87 million. Loss per share was 0.9 sen compared with earnings per share of 4.0 sen.

Kulim’s earnings jumped 105% to RM127.10 million in the first quarter ended March 31, 2011 (1QFY11) from RM61.89 million a year ago. Its revenue climbed 34% to RM1.657 billion from RM1.234 billion while earnings per share were 10.12 sen compared with 16.40 sen a year ago.

IJM Corp swung into the red in the fourth quarter ended March 31, 2011 with net loss of RM20.19 million versus a net profit of RM111.04 million a year ago due to its overseas operations. The losses were expected by the market as it would have to make provisions and losses in its international operations. Its operating profit before tax fell by 53.9% to RM75 million compared to RM163 million a year ago “following the provision made against contractual claims, recovery of receivables and project losses in some of the group’s overseas projects”. Its revenue rose 20.9% to RM1.047 billion from RM866.46 million mainly due to the CONSTRUCTION [], property, industry and infrastructure divisions. It announced an interim dividend of 7.0 sen a share.

KUB Malaysia Bhd, a telecommunications services provider, fell to its lowest level in more than two months after posting a first-quarter loss of RM5.04 million. The stock slid 2.1 per cent to 69.5 sen at 9:09 a.m. local time in Kuala Lumpur trading, set for its lowest close since March 18.

Malayan Flour Mills Bhd proposed a share split and special dividend of 62 sen per share, according to a company statement in Kuala Lumpur today. The company also proposed to raise as much as RM200.2 million from a rights offer, it said.

FBMKLCI 1540.94 DJ+8.10 CRUDE OIL100.49 RM3.0155

Several analysts have downgraded Malaysia Airlines (MAS) after the national carrier posted a net loss of RM242.3mil in the first quarter ended March 31 on rising fuel prices and stronger ringgit. According to data compiled by Bloomberg, 12 of the 18 analysts covering the counter gave a “sell” call while five gave a “hold”. Only one analyst has a “buy” call on MAS. Research houses including CIMB Equities Research, AmResearch, Hong Leong Investment Bank and ECM Libra have downgraded the stock to either “sell”, “hold” or “underperform”. MAS posted a net loss of RM242.3mil in the first quarter against a net profit of RM310.04mil in the previous corresponding quarter after taking into account Airbus' compensation for late delivery. Revenue was 3.26% lower at RM3.19bil as fuel cost surged by 32% or RM321mil.

AirAsia Bhd has won three major awards at the Malaysian Investor Relations Association (Mira) Inaugural Malaysia Investor Relations Awards ceremony yesterday. Group chief executive officer Datuk Seri Dr. Tony Fernandes was named the Best CEO for Investor Relation-Mid Cap while the group’s investors relations manager Benyamin Ismail was named the Best Investor Relations Professional-Mid Cap. Datuk Seri Dr. Tony Fernandes AirAsia also won the Best Investors Relation Website award.

KNM Group Bhd said its wholly-owned unit KNM Process Systems Sdn Bhd won a RM217.76mil award for the development of documentation and equipment supply facility “booster compressor station” at the Khauzak site, Uzbekistan from Lukoil Uzbekistan Operating Co. It told Bursa Malaysia yesterday that the contract it won yesterday, was for two years from the date of contract commencement and the project would contribute to the group’s earnings for the financial years ending Dec 31 2011 and 2012.

KNM’s 1QFY11 net profit came in significantly below house and consensus expectations. Profit of RM19.4m made up less than 10% of full year estimates. “The reason for the poor showing is that the group is still going through their older orders, which were low margin orders secured over FY10 (excluding the turnkey projects). Management had earlier guided on softer results in 1H11 hence this comes as no surprise.

“On a positive note, revenue growth indicates increasing utilisation which we gauge should be at roughly 70% from 60%

Genting Bhd’s net profit surged 254% to RM824.17mil in the first quarter ended March 31, 2011 from RM232.43mil a year earlier when it was impacted by net impairment losses. Revenue for the quarter was higher at RM4.89bil against RM3.11bil while earnings per share improved to 22.25 sen versus 6.29 sen previously.

Petronas Chemicals Group Bhd reported net profit of RM932 million in the fourth quarter ended March 31, 2011, an increase of 5.7% from the RM881 million a year ago. Its revenue rose 8.9% to RM4.353 billion from RM3.996 billion while earnings per share were 12 sen. It proposed dividend of 19 sen per share totaling RM1.52 billion. For the financial year ended March 31, its net profit increased by 36.1% to RM2.994 billion from RM2.199 billion. Revenue rose 19.5% to RM14.586 billion from RM12.203 billion supported by higher prices and volume addition.

MRCB posted a 120% increase in its earnings to RM21.60 million in the first quarter ended March 31, from RM9.84 million a year ago, boosted by its on-going property development projects. MRCB was upbeat on its outlook for the next two years where it expected progressive completion of the on-going CONSTRUCTION [] projects and property development within KL Sentral which works had commenced since 2009. “Two major developments planned on strata sales at Kuala Lumpur Sentral comprising Q Sentral office block at Lot B and condominium residences at Lot D with combined gross development value in excess of RM2 billion will commence construction works in 2011,” it said.

DRB-Hicom’s earnings were 72% lower at RM72.39 million from RM259.36 million a year ago due to the absence of exceptional gains of RM211.43 million from the disposal of estates. Its revenue rose 25.1% to RM1.99 billion from RM1.59 billion a year ago. It proposed a final dividend of four sen per share.

MyEG recorded its best-performing quarter in 3Q11, boosted by the public’s growing adoption of e-Government services via its MyEG portal. Its revenue rose 20% on the back of an increased Highway Code test-tasking, increased online, increased online payment of traffic summonses an encouraging growth for online renewal of road tax and automobile insurance.

YTL Corp Bhd posted a lower net profit of RM312.06mil for its third quarter ended March 31, compared with RM330.59mil made a year earlier as the previous year’s pre-tax profit was inclusive of a one-off fee income. For the quarter that just ended, the group made a revenue of RM4.24bil against RM3.93bil from a year ago. For the nine-month period ended March 31, the group posted a net profit of RM755.14mil compared with RM754.33 previously. Revenue for the nine months grew 11.5% to RM13.15bil compared with RM11.79bil for the preceding corresponding nine months ended March 31, 2010.

FBMKLCI 1533.57 DJ+38.45 CRUDE OIL 101.73 RM 3.0190

Malaysian Airline System Bhd (MAS) posted a net loss despite recording strong revenue and traffic growth for the first quarter ended March 31, 2011 as high jet fuel price and a stronger ringgit impacted earnings. The airline posted a net loss of RM242.33mil for the quarter under review from a net profit of RM310.04mil in the previous corresponding quarter after taking into account Airbus' compensation for late delivery. Revenue was 3.26% lower at RM3.19bil as fuel cost surged by 32% or RM321mil.

CIMB Group Holdings Bhd's net profit for first quarter ended March 31 was 9.4% higher year-on-year at RM917mil as credit losses dropped sharply. The net profit was equivalent to net earnings per share of 12.3 sen from 11.86 sen a year ago. This was achieved despite a 1.3% decrease in revenue to RM2.75bil for the quarter under review. The annualised net return on equity (ROE) for the quarter was 15.7%.

Telekom Malaysia Bhd's (TM) net profit for its first quarter ended March 31 (Q1FY11) was down 32.8% to RM163.3mil from a year ago mainly due to lower unrealised exchange gains on translation of foreign currency borrowings. But the revenue for the quarter under review recorded a 1.1% growth to RM2.15bil year-on-year (y-o-y), mainly attributed to higher revenue from data, Internet and multimedia services, which when combined contributed 57% of the group's total revenue for the quarter. Earnings per share was down to 4.6 sen for the quarter from 6.9 sen a year ago.

Mah Sing Group Bhd's net profit jumped 47.6% to RM41.1mil for the first quarter ended March 31 due to progressive recognition of development revenue and contribution from its property projects in the Klang Valley, Penang and Johor Bahru. The company said in a statement yesterday that revenue for the quarter rose to RM311.7mil against RM238.3mil a year ago. Earnings per share stood at 4.95 sen. Mah Sing said projects that contributed to the group's profit and revenue included Perdana Residence 2 in Selayang, Garden Residence in Cyberjaya as well as Hijauan Residence and One Legenda in Cheras.

Proton Holdings Bhd posted a higher net profit of RM61.6mil for the fourth quarter ended March 31 compared with a net profit of RM2.64mil in the previous corresponding quarter. In a filing with Bursa Malaysia yesterday, the company attributed the positive results to higher vehicle sales for Proton and Lotus Group International Ltd. Proton vehicle sales for the fourth quarter was driven by demand for its Persona, Saga, Exora and Inspira models. However, for its full financial year ended March 31 (FY2011), Proton's net profit dropped by 30.5% year-on-year to RM152mil against a net profit of RM218.9mil previously.

Revenue for FY2011 grew to RM8.98bil compared with RM8.2bil in the previous year.

Property developer Ibraco Bhd, which has exited the Practice Note 17 (PN17) list, will embark on a new residential project in Stutong here. The company also plans to extend its property development activities to other major towns in Sarawak and venture into construction business. Chief executive officer Chew Chiaw Han said Ibraco would launch the proposed Stutong housing project, comprising 77 single-storey terraced and semi-detached houses, in July. “The project will have a gross development value (GDV) of about RM15mil,” he told StarBiz.

Property developer UEM Land Holdings Bhd's net profit and revenue for the first quarter ended March 31 soared compared with the same quarter a year ago on realisation of earnings from its own projects in Nusajaya, Johor, and from subsidiary Sunrise Bhd. The company said net profit jumped 460.34% to RM17.60mil on revenue that advanced 372.77% to RM187.68mil. 

Muhibbah secured a contract worth RM101 million in Australia for the Gorgon liquefied natural gas (LNG) jetty and marine structure project.

KUALA LUMPUR KEPONG BHD (KLK) posted a strong set of earnings in the first quarter, with net profit at RM373.85 million, up 73% than the RM215.93 million a year ago. Revenue also showed an increase, rising 24.6% to RM2.368 billion from RM1.90 billion a year ago.

Alliance Financial Group Bhd’s fourth quarter earnings rose 10% to RM84.93 million from RM77.25 million a year ago due to higher net income, lower overheads and lower impairment charge. Revenue was RM270.53 million compared with RM277.56 million, earnings per share were 5.5 sen compared with 5.0 sen.

FBMKLCI 1532.12 DJ-25.05 CRUDE OIL 99.17 RM 3.0250

AirAsia Bhd's net profit declined 23% to RM171.93mil for the first quarter ended March 31 from RM224.11mil posted in the same quarter last year, mainly due to lower unrealised foreign exchange gains. However, the airline recorded a revenue growth of 21% to RM1.05bil compared with RM870.61mil posted in the same quarter previously due to a 17% increase in passenger volume and higher ancillary income per passenger which rose year-on-year (yoy) by 31% to RM50 from RM38.

Petronas Chemicals Group Bhd will undoubtedly benefit from parent company Petroliam Nasional Bhd's (Petronas) plan to build a US$20bil integrated downstream oil and gas complex in Pengerang, Johor. CIMB Research said in a report yesterday that the plan would provide great growth potential for Petronas Chemicals, similar to what the latter had achieved at its largest facility at Kertih. “Although the management has not clearly stated whether it is expanding in Johor, this plan is likely to be an expansion of the new naphtha-based petrochemical complex that the company talked about previously,” CIMB Research said, adding that Petronas Chemicals could invest US$1.5bil to US$2bil in the project.

Petronas Dagangan Bhd’s net profit for the fourth quarter ended March 31 jumped 42% year-on-year to RM228.5mil due to lower operating expenditures.

Pos Malaysia posted net profit of RM38.26 million in the first quarter ended March 31, 2011, a significant increase from only RM1.62 million a year ago. The earnings growth was underpinned by the domestic tariff increase which came into effect on July 1, 2010. The group’s growth of almost 121% in profit from operations at RM50.86 million (2010: RM23.07 million) for the period ended March 31, 2011 was due to the tariff increase and benefits realised from transformation initiatives.

RHB Capital Bhd, the country’s fourth largest banking group by assets, posted a 9.26% rise in net profit to RM382.12mil for the first quarter ended March 31 compared with the corresponding quarter a year ago on higher net interest income and income from Islamic banking.

Nursing school operator Masterskill Education Group Bhd posted a 15.3% fall in net profit to RM22.58mil for the quarter ended March 31 compared with the same quarter a year ago due to lower enrolment of students and higher operating overheads.

Bandar Raya Developments Bhd’s earnings fell to RM4.25 million in the first quarter ended March 31, 2011 from RM22.15 million a year ago due to a decline in revenue. Revenue declined by 28% to RM137.18 million from RM189.80 million a year ago. Earnings per share were 0.9 sen compared with 4.7 sen. “With the completion of CapSquare Office Tower 2 and Troika in Kuala Lumpur as well as Phase 1 of Defence Raya Golf Resort in Lahore, Pakistan, revenue in the property division contracted by half to RM71.9 million from RM144.0 million in the same quarter a year ago,” it said.

PPB Group Bhd posted net profit of RM265.23 million in the first quarter compared with the RM1.125 billion a year ago which had included RM838.44 million from the sale of discontinued operations. Group revenue of RM579.84 million was 15% higher than the RM503.63 million a year ago. The increase was due mainly to higher flour revenue and increased grains trading volume recorded by the grains trading, flour and feed milling divisions

PETRA PERDANA BHD  posted net loss of RM8.4 million for its first quarter ended March 31, 2011 (1QFY11) due to higher operational costs with its increased new vessels. It said this was a contrast from a net profit of RM3.6 million from a year ago, when it also booked a one-off gain on vessel disposal of RM8.3 million. “Turnover jumped 32% to RM67.0 million in 1QFY11 from RM50.93 million a year earlier. The significant increase in turnover was mainly due to improvement in vessel utilisation and increased fleet size,” it said.

FBMKLCI 1525.28 DJ-130.78 CRUDE OIL 97.90 RM 2.9955

US stocks tumbled on Monday with European debt fears and easing Chinese growth giving investors jitters.
The Dow Jones Industrial Average of blue-chip stocks closed down 130.78 points (1.05 per cent) at 12,381.26. S&P's downgrade of Italian sovereign debt fed fears of a spreading eurozone crisis, while slowing Chinese manufacturing figures were a new sign of a slowdown in the world's number-two economy.
"Centre stage belonged to global uneasiness surrounding the euro-area debt crisis, after Standard & Poor's downgraded its outlook for Italy, Fitch lowered its outlook on Belgium, debt restructuring in Greece remained uncertain, and Spain's ruling party was trounced in regional elections over the weekend," said analysts at Charles Schwab.
 

Bursa Malaysia yesterday queried enterprise software solutions provider Ingenuity Solutions Bhd over the unusual market activity pertaining to the sharp fall of its share price and the high volume of its shares changing hands. The ACE Market-listed shares shed 4.5 sen yesterday to close at 13 sen yesterday, and topped the list of most actively traded shares with volume reaching 59.4 million shares.

Puncak Niaga Holdings Bhd, through its wholly-owned subsidiary Puncak Oil & Gas Sdn Bhd (POG), had entered into two separate sale and purchase agreements with Global International Vessels Ltd (GIVL) for the acquisition of equity interests in two of the latter’s subsidiaries. Puncak Niaga said the acquisition of the 40% equity interests in Global Offshore (Malaysia) Sdn Bhd (GOM) and KGL Ltd, respectively, would involve a total cash consideration of US$23.6mil (RM70.8mil). This would be made up of 300,000 GOM shares costing US$8.4mil and 80,000 KGL shares costing US$15.2mil.

PUNCAK NIAGA HOLDINGS BHD and its partner Quality Concrete Holdings Bhd signed a contract for a RM667.32 million rural water supply project in Sarawak. Puncak said the 40:60 Konsortium Puncak Niaga Holdings Bhd-Quality Concrete had signed the contract to supply rural water from 2010 to 2012. The completion period is Dec 31, 2012. PBA’s net profit surged 105% to RM11.03 million from RM5.37 million a year ago mainly due to the improved sale of water revenue from trade consumers. Its revenue rose 15.3% to RM56.31 million from RM48.85 million while earnings per share were 3.33 sen compared with 1.62 sen.

Bursa Malaysia Securities has uplifted Ibraco Bhd from the Practice Note 17 classification with effect from Tuesday, May 24. With the completion of the regularisation plan, the company has regularised its financial condition and no longer triggered any of the criteria under PN17 of the Main Market Listing Requirements

Bursa Securities had also approved Ibraco’s waiver application to comply with the requirement to record a net profit in two consecutive quarterly results immediately upon the implementation of the regularisation plan.

Crane manufacturer FAVELLE FAVCO BHD  reported a 13.5% increase in earnings to RM3.86 million in the first quarter ended March 31 from RM3.40 million a year ago mainly due to higher sales. Revenue rose 13.6% to RM85.18 million from RM74.95 million while earnings per share were 2.18 sen versus 1.97 sen. It had cash and cash equivalents of RM103.03 million as at March 31. As at May 19, 2011, outstanding order book of the group is RM496.4 million of which majority is from oil and gas cranes for the offshore oil and gas exploration and production activities.

MITRAJAYA HOLDINGS BHD  has secured a RM46.40 million contract to build an eight-story private hospital in Rawang. It accepted the letter of award from Rawang Specialist Hospital Sdn Bhd for the contract.

MAA Holdings Bhd, a Malaysian insurer, rose 1.6 per cent in Kuala Lumpur trading after saying its first-quarter profit more than tripled. The stock climbed to RM1.28 at 9:10 a.m. local time, set for its biggest gain since May 19.

FBMKLCI 1541.03 DJ-93.28 CRUDE OIL 99.53 RM 2.9870

BURSA Malaysia is likely to be lower this week with the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) expected to drift between 1,530 and 1,540-point level. Affin Investment Bank head of retail research, Dr Nazri Khan, said rising inflation, the start of interest rates upcycle, the unexpected commodity bubble burst and the uninspiring overnight session on Wall Street were likely to be important forces to influence the broad market's direction. The economic situation also remains uncertain for the Group of 3 (US, Europe and Japan) following the untimely resignation of International Monetary Fund chief last week. However, he said, the local market was likely to find footing from stable ringgit, oil and gold price. Nazri said the local market was also likely to get support from the potential listing of Felda Sugar, the launching of Financial Sector Master Plan and the start of the third round of banking consolidation next month. Further, the news that the local giant construction MMC Corp planned to list its energy and port units, with an estimated market capitalisation of up to RM14bil, would also create some excitement, he said.

Mah Sing Group Bhd will launch RM2.5bil to RM3bil worth of projects in the Klang Valley, Penang and Johor this year to meet its sales target of RM2bil for the current financial year ending Dec 31. Group managing director and chief executive Tan Sri Leong Hoy Kum said the projects would comprise an array of commercial, residential and industrial properties.

Analysts still bearish on sector due to weak global chip sales

PETALING JAYA: Research analysts are still bearish on the semiconductor sector in the country.

Last month, analysts downgraded their calls on Malaysian Pacific Industries Bhd (MPI) and Unisem (M) Bhd following weaker-than-expected financial numbers for the first quarter of this year. Research houses said the earnings of both semiconductor companies were impacted due to inventory adjustment among clients following a supply pile-up in the second half of 2010. TA Securities Research recently downgraded the semiconductor sector from “neutral” to “underweight”. “We foresee global chip sales remaining weak in the second quarter of this year as many semi-device makers are moderating production after the earthquake in Japan,” said the report. The continuous strengthening of the ringgit against the US dollar will be tough for local semiconductor manufacturers as revenue is denominated in the US dollar, according to the report.

Melati Ehsan was awarded a RM148.63 million project from the Public Works Department to build a road stretching from Gua Musang in Kelantanf to Kampung Relong in Pahang. Melati’s unit Pembinaan Kery Sdn Bhd accepted a letter of award from the PWD for the road CONSTRUCTION [] project which starts on June 15 this year until Dec 10, 2013.

TSH Resources has allocated RM100 million or more per year as PLANTATION [] development capital expenditure (capex) for new planting of oil palm trees, the bulk of which will in Kalimantan, Indonesia. Bulk of the RM100 million capex would be for new planting in Kalimantan where it has about 58,000 ha of land which is still unplanted. The Indonesian operations, with the trees maturing by next year, would underpin TSH’s fresh fruit bunches output, productivity and revenue.

KPJ Healthcare reported a set of unimpressive earnings at RM27.51 million in the first quarter ended March 31, 2011 (1QFY2011) compared with RM27.24 million a year ago. Revenue rose 16.4% to RM437.75 million from RM376.04 million a year ago while earnings per share were 5.09 sen compared with 5.19 sen. It declared 2.4 sen dividend per share. However, KPJ expected the group’s performance would continue to improve in line with increasing demand, hospital capacity and activities.

MK Land Holdings Bhd’s net profit rose more than two-fold to RM7.22 million in the third quarter ended March 31 versus RM2.02 million a year ago, underpinned by its strong property performance. Revenue rose to RM165.15 million from RM94.74 million. Net asset per share was 87 sen.

Can-One Bhd has taken court action KIAN JOO CAN FACTORY BHD [] over the latter’s proposed one-for-two bonus issue and the proposed renounceable rights issue of 166.56 million 2five-year warrants 2011/2016 on the basis of one warrant for every four KJCF shares held after the proposed bonus. Can-One claimed the proposals breached the rights of Can-One under the shares sales agreement dated March 13, 2009 and in breach of the Order of the Court of Appeal dated Aug 25, 2010 and the order of the Federal Court dated Feb 21, 2011.

The Edge weekly reports that crane manufacturer Handal Resources has been on an expansion trail since it was listed two years ago, and the strategy has borne fruit.

FBMKLCI 1544.02 DJ+45.14 CRUDE OIL 99.32 RM 2.9920 

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

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

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

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

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

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

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