FBMKLCI DJ-115.42 CRUDE OIL90.63 RM 3.002

Worries about the Greek debt issue and the slide on Wall Street will weigh on investors’ sentiment in the week ahead, starting Monday, June 27, and maybe investors may give up the hope of window dressing as the first half draws to an end.

Malaysia Airports Holdings Bhd (MAHB) hopes the result of its bid for the expansion of the Prince Mohammed Bin Abdulaziz Airport in Madinah will come out by year-end. “We’ve already submitted our bid. The work is through a consortium to build a new terminal and runway,” MAHB managing director Tan Sri Bashir Ahmad said on Friday at the inaugural GLC Open Day 2011 organised by Khazanah Nasional Bhd. MAHB had prequalified to bid for the work based on its experience and also strong technical knowledge, he said.

CRUDE palm oil (CPO) futures on Bursa Malaysia Derivatives are likely to see continued bearish sentiment.

Jim Teh, Interband Group of Companies' senior trader, said technical correction could drive the market with CPO prices hovering between RM2,800 and RM3,000 per tonne. “Buyers will not actively enter the market this week due to the current high prices,” he told Bernama.

TALAM Corp Bhd, once the country's largest builder of low- and medium- cost houses, has unfortunately been making headlines for the wrong reasons. Recently, the company reported a net loss of RM25.97mil for its first quarter ended April 30, 2011 versus a net profit of RM1.57mil in the previous corresponding period, mainly attributable to lower progress billings generated from the development projects during the quarter under review. Revenue for the period plunged 43% to RM13.18mil from RM23.26mil a year earlier.

LNG Resources Bhd is upbeat on the prospects for the connector industry as many new innovative products required connectors in their settings and assemblies. Managing director Low Chee Thean quoting a Bishop & Associates' research said 2010 was a comeback year for the connector industry following improvement in the global connector sales. He said global connector sales last year was estimated at US$44.2bil, an increase of 28.4% after a sharp decline of 21.8% in 2009 oneconomic recessions in Europe and the United States.

Kencana’s earnings rose 81% to RM56.42 million in the third quarter ended April 30, 2011 from RM31.17 million a year ago underpinned by the progress achieved for the contracts. Revenue rose 34.7% to RM377.83 million from RM280.37 million. Earnings per share were 3.08 sen versus 1.92 sen a year ago.

When compared with a year ago, where revenue and pre-tax profit came in at RM280.37 million and RM36.5 million, this was an improvement of 35% and 91% respectively in the current quarter.

Muhibbah was awarded a RM338 million contract from Northport (Malaysia) Bhd to build a multipurpose wharf and the associated facilities. Hopefully, this could inject some positive news into the stock which was battered by its exposure to the Asian petroleum hub debacle.

Muhibbah said the wharf would be an extension to the existing wharf eight and upgrading of wharf 16. The contract is scheduled to start in July and completed in March 2014.

Subur Tiasa’s  net profit in the third quarter ended April 30, 2011 fell 19.5% to RM8.40 million from RM10.44 million a year ago but it expects the outlook to be positive on firm demand overseas. “The market outlook for timber and timber products in the coming quarter remain positive with the continued firm demand for timber in India and China,” it said. The company’s financial performance was impacted by higher operational costs due to the increase in raw material, fuel and adhesive costs. Revenue declined 11.8% to RM144.66m from RM164.12 million. Earnings per share were 4.62 sen compared with 5.55 sen. Subur Tiasa said for the nine-month period, net profit was flat at RM23.838 million while revenue declined 4.8% to RM486.22 million from RM510.79 million.

Tambun Indah has several ongoing projects on mainland Penang with total GDV of RM1.6 billion, which is enough to last until 2016.

FBMKLCI 1506.30 DJ+61.52 CRUDE OIL 88.15 RM 3.022

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

 

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

 

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

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

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

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

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

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

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

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

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

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

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

FBMKLCI 1574.49 CRUDEOIL 90.87 RM 3.03

New stock listing

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

1.    5191               TAMBUN           0.70                             0.40                3.50

 

 

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

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

 

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

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

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