FBMKLCI  1508.88 DJ-228.48 CRUDE OIL 102.82 RM 3.00

Uncertainty in the economic recovery and higher fuel hedging entry cost are some of the reasons why Malaysia Airlines (MAS) drastically reduced its fuel hedging levels this year to 25% from 60% last year. “The hedging range in the airline industry has been lower since 2008 due to the uncertainty in economic recovery, fuel price volatility and the higher fuel hedging entry cost,” MAS chief financial officer Mohd Azha Abdul Jalil told StarBiz in an email response.

Ahmad Zaki Resources Bhd has received a letter of award from the Public Works Department to complete the remaining works of the second phase of the East Coast Expressway.

KNM Group Bhd has set an internal target of potential earnings before interest, tax, depreciation and amortisation (EBITDA) of RM363 million for FY11 against expected total revenue of RM2.4 billion. It said the potential EBITDA for FY12 was RM564 million on the back of an expected revenue of RM3.4 billion.

HONG LEONG BANK BHD [] has received approval for its proposed issue of up to US$300 million senior unsecured bonds from the Securities Commission. “The proceeds from the issuance of the senior bonds will be used for working capital and general banking purposes,” it said.

GEFUNG HOLDINGS BHD [] is making its foray into Indonesia and is planning to undertake a mixed development property project in east of Jakarta. Gefung said on Thursday, March 10 it had signed an MoU with PT Greenworld Development to undertake the project totaling 50.74 acres east of Jakarta.

FBMKLCI 1489.27 DJ+61.95 CRUDE OIL 99.55 RM 3.024

Bina Puri Holdings Bhd's subsidiary, Bina Puri (B) Sdn Bhd has secured a total of RM1.1bil worth of projects in Brunei. Bina Puri (B) Sdn Bhd chairman Datuk Ali Abdullah in a Q&A session in Kuala Belait, Brunei on Friday said the company had an unbilled portion totalling RM265mil until 2013. He said it planned to secure another RM600mil worth of projects in the Sultanate this year.

TM proposed a capital distribution of about RM1.037 billion or 29 sen for each share held. TM said the proposed capital distribution will be funded through its existing cash balances, which stands at RM3.488 billion as at Dec 31, 2010. TM also announced its earnings rose 135%to RM400.63 million in the fourth quarter ended Dec 31, 2010 from RM170.25 million a year ago. Revenue was marginally higher by2.1% at RM2.32 billion from RM2.27 billion. Earnings per share were 11.2 sen compared with 4.8 sen. It proposed a final dividend of 13.1 sen per share. For FY10, TM’s earnings surged 87.6% to RM1.20 billion from RM643.02 million. Its revenue rose 2.1% to RM8.79 billion from RM8.61 billion.

CIMB Group posted a record net profit of RM3.52 billion in the financial year ended Dec 31, 2010. For the fourth quarter, earnings were RM877.62 million, boosted by its Indonesian operations. The 4Q net profit was 9.3% higher from the RM802.89 million a year ago. Revenue rose 16% to RM3.168 billion from RM2.731 billion. Earnings per share were 11.83 sen compared with 11.37 sen.

MAS posted net profit of RM225.92 million in the fourth quarter ended Dec 31, 2010, down 64.7% from RM640.12 million a year ago, on lower derivative gains and higher finance costs. Its managing director and chief executive officer Tengku Datuk Seri Azmil Zahruddin was quoted saying MAs had operationally, done well in the quarter where traffic volumes rose 10% and yields were up 5%. However, it was also weighed down by higher cost of fuel despite that it carried more passengers. Its fuel bill was 13% higher at RM1.2 billion in 4Q compared witrh RM1.06 billion due to higher fuel prices and consumption. Its revenue rose 8.2% to RM3.67 billion from RM3.39 billion a year ago. Earnings per share were 6.76 sen compared with 31.17 sen.

Proton swung into the red with net loss of RM60.1 million in the third quarter ended Dec 31, 2010 compared to net profit of RM79.68 million a year ago, due mainly to higher branding costs as well as the restructuring expenses incurred by Lotus Group International Ltd. Revenue for the quarter fell by 8.96% to RM1.83 billion from RM2.01 billion last year. Loss per share was 10.90 sen compared to earnings per share 14.50 sen previously. Net assets per share was RM9.73. For the nine months ended Dec 31, 2010 Proton’s net profit fell 58.1% to RM90.5 million from RM216.29 million, although revenue rose to RM6.36 billion from RM5.97 billion. Proton said as part of the transformation plans to turn around LGIL, it had started investing in rationalisation of dealers network, and branding activities to deliver the five-year business plans. Proton also said that during 3Q, it had experienced lower domestic sales volume, as well as increased promotional and marketing spending by a principal subsidiary.

UEM Land Bhd recorded a 37.3% increase in its earnings to RM135.36 million in the fourth quarter ended Dec 31, 2010, boosted by higher revenue and higher margin achieved for one-off transactions from strategic land sales.

AZRB posted net loss of RM83.06 million in the fourth quarter ended Dec 31, 2010 compared with net profit of RM5.13 million a year ago following the termination of the Alfaisal University Campus project in Riyadh, Saudi Arabia. Revenue shrank to RM52.62 million compared with RM105.56 million a year ago. Loss per share was 30.03 sen compared with earnings per share of 1.86 sen. For the financial year ended Dec 31, 2010 its net loss was RM61.28 million compared with net profit of RM20.76 million in FY09. Its revenue was RM431.34 million compared with RM459.40 million.

Faber Group saw its net profit shrink to RM2.91 million in the fourth quarter ended Dec 31, 2010 from RM42.57 million a year ago. Revenue declined to RM203.95 million from RM303.93 million. Earnings per share were 0.8 sen only compared with 11.73 sen. It proposed dividend of eight sen per share compared with six sen. For the financial year ended Dec 31, 2010 net profit was RM78.78 million compared with RM82.68 million in FY09.

Today's Company Notes; fbm klci 1519.84

· F&N's 4QFY10 earnings surged to RM462.3mn from RM61.08mn  a year ago and it announced a final single tier dividend of 38 sen per share and a special interim dividend of RM1.10 per share.

·  AZRB is disposing 21.26% equity interest in Eastern Pacific Industrial Corporation Berhad to Lembaga Tabung Amanah Warisan Negeri Terengganu for a total cash consideration of RM111.5mn.

·  Dayang proposed  bonus  issue  and renounceable  rights issues on the basis of 1-for-4 Dayang shares held and after the proposed bonus issue respectively.

·  Uemland has no plans to raise its bid for Sunrise Bhd after the latter's share price jumped above the offer price yesterday. 

·  Mas's  unit  will  introduce jet aircraft operations  with  a  fleet of Boeing 737-800 aircraft operating out of the  Main  Terminal  Building of Kuala Lumpur International Airport in 2011.

·  HWGB  is  proposing  a private placement of up to 41.36mn  new ordinary shares of RM0.20 each to independent third party investor(s)  to  be  identified later at an issue price which is to be determined later.

·  Lonbisc  has served a notice to voluntarily buy all the remaining 54.4mn shares in TPC Plus Bhd it does not already own for 30sen a share.

·  Malaysia's GDP may expand 4.8% next year, slowing from a 7.4% gain in 2010  following  last  year's  recession,  the  World Bank said in its Malaysia Economic Monitor report.

·  More  U.S.  executives  than  ever  are increasing earnings forecasts compared  with  those  lowering  them, helped by almost $2 trillion of Federal Reserve spending and a recovery in the global economy.