FBMKLCI 1570.02 DJ+145.13 CRUDE OIL92.69 RM3.0210

MAA Holdings Bhd says it is not urgently seeking to sell its overseas units now that its debt obligations of RM140mil which are due for repayment soon, can be paid off following the sale of its insurance business for RM344mil cash. Instead, the group was now looking to “build up” its insurance businesses in Indonesia and the Philippines, chief executive officer and group managing director Muhamad Umar Swift said after the company’s shareholders’ meeting here yesterday. “Our business in the Philippines is doing well. Indonesia has been slower than expected. We are looking at partnerships that can leverage that particular asset,” he said without elaborating.

Packet One Networks (M) Sdn Bhd (P1), a subsidiary of Green Packet Bhd, has sealed a technology cooperation agreement with China Mobile Ltd to spearhead the time division-long term evolution (TD-LTE) technology in Malaysia and South-East Asia. TD-LTE technology is a 4G telecommunications evolutionary path for the future of mobile broadband.

The coming together of Khazanah Nasional Bhd and Temasek Holdings to develop RM30bil worth of real estate projects in Singapore and Iskandar Malaysia will help UEM Land Holdings Bhd make a great leap forward, both financially and in terms of branding, say analysts. UEM is among the top landowners in Iskandar Malaysia, with 1,300 acres of development land in the southern economic corridor. Among the several economic corridors spearheaded by the Government, Iskandar Malaysia remains the most upbeat and vibrant. In many ways, according to analysts, the alliance of the two government investment holding companies is expected to be a win-win proposition for both sides.

Eastern & Oriental Bhd (E&O) has entered into a shareholders' agreement with Pulau Indah Ventures Sdn Bhd to develop a wellness township Nusajaya. E&O (via wholly-owned subsidiary Galaxy Prestige Sdn Bhd) and Pulau Indah have agreed to establish a 50:50 joint venture (JV) company named Nuri Merdu Sdn Bhd.

Pulau Indah is a 50:50 JV between Khazanah Nasional Bhd and Temasek Holdings. This will be E&O's maiden foray into Johor. The 210-acre freehold land for the proposed development is 15 minutes away from the Tuas Second Link to Singapore, and is owned by Iskandar Investment Bhd, a 60% subsidiary of Khazanah.

Cypark Resources Bhd posted net profit of RM6.22 million in the second quarter ended April 30, 2011 on the back of RM40.98 million in revenue. Earnings per share were 4.0 sen. The second quarter revenue was about RM1.6 million lower than in the first quarter. It said the second quarter revenue was generated mainly from the second phase of the national landfill restoration projects and foundation works for the leachate treatment plans.

Muhibbah said it believes it will not have to write down RM300 million in outstanding payments due from its major client Asia Petroleum Hub (APH), which was reported to be in receivership. Muhibbah managing director Mac Ngan Boon said APH was actively speaking to potential investors and hoped for a resolution "soonest". He added: "We do not believe there will be a write down. We believe there are other solutions.” To recap, APH is the developer and operator of the APH oil terminal in Johor and had awarded Muhibbah the marine piling and jetty works worth RM820 million.

Ingress reported net profit for the first quarter ended April 30, 2011 fell 34% to RM6.94 million from RM10.47 million a year earlier, due to a one time gain on disposal of shares totaling RM7.6 million included in 1Q 2010 net profit. Revenue for the quarter slipped to RM175.07 million from RM180.41 million in 2010. Earnings per share were 9 sen, while net assets per share was RM2.08. It expects its automotive division to further improve during the financial year.

SIG Gases Bhd inked an MoU with Japan-based Iwatani Corporation Bhd (IC) to establish a partnership to set up a helium refilling plant in Southern Industrial Gas plant in Senai, Johor.

IRIS CORPORATION BHD [] expects to raise gross proceeds of RM25.52 million from a proposed private placement exercise of up to 10% of its paid-up share capital. It plans to use RM25.37 million of the proceeds as working capital and the remaining RM150,000 as estimated expenses relating to the proposed private placement. Iris said the RM25.52 million in proceeds would be based on an indicative issue price of 15 sen per placement share.

FBMKLCI 1515.74 DJ-79.85 CRUDE OIL 104.99 RM 2.99

New stock listing

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

1.    5196                BJFOOD            0.51                         0.21                 2.55

Local airlines, along with other carriers worldwide, will see higher fuel costs eat into their first-quarter profits, as political unrest in Libya continues to push oil prices to new highs not seen in over two years.

Crude for April delivery was quoted at US$106.45 a barrel in electronic trading on the New York Mercantile Exchange yesterday, with the jet fuel price hitting close to US$130 per barrel.

DRB-HICOM Bhd’s wholly-owned subsidiary DRB-Hicom Defence Technologies Sdn Bhd (Deftech) has received a contract worth RM7.55bil from the Malaysian Government to supply armoured-wheeled vehicles (AWV). DRB-HICOM told Bursa Malaysia yesterday that Deftech had accepted a letter of award from the Government to design, develop, manufacture, commission, supply and deliver 257 units of 12 variants of the 8x8 AWVs . The contract is for a period of seven years beginning 2011.

Trading in the shares of Berjaya Retail Bhd was suspended yesterday pending a material announcement.

The company yesterday requested for a suspension of trading of its securities for three market days, from 9am on Monday until 5pm tomorrow.

Multi Sports Holdings Ltd plans to sponsor a Taiwan depository receipt programme (TDR) that would represent up to 67.50 million new shares of 5 US cents each or 15% of its current paid-up share capital.

The company told Bursa Malaysia yesterday that it would issue up to 67.50 million new shares at an issue price to be determined later, which would be the underlying shares for the programme.

Malaysian Merchant Marine Bhd (MMM) is facing a possible de-listing after failing to submit its regularisation plan to the Securities Commission or Bursa Malaysia Securities for approval within the stipulated timeframe.

Sunway Holdings Bhd’s unit Sunway Construction Sdn Bhd (SunCon) has secured a contract worth RM74.1mil from Bio-XCell Sdn Bhd to undertake the engineering, procurement, construction and commissioning of a central utilities facility at Biotechnological Park Bio-XCell in Nusajaya, Johor.

The Edge FinancialDaily reports that while investors may have turned sceptical towards loss-making WiMAX player Packet One Networks Sdn Bhd (P1) (which is under Green Packet Bhd), its new strategic partner SK Telecom (SKT) believes there is much value in P1's wireless business as a launchpad for SKT's aspiration to expand regionally in Southeast Asia.

SEGI International Bhd (SEGi) group managing director Datuk Clement Hii Chii Kok has emerged as the second largest shareholder of the company after he acquired 30.3 million shares on Monday, raising his stake to 20.61%.

FBMKLCI 1536.07 DJ+6.74 CRUDE OIL 86.80 RM 3.003

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

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

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

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

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

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

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

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

FBMKLCI 1566.49 DJ+83.56 CRUDE OIL 92.08 RM 3.03

Faber Group Bhd subsidiary Faber Ltd Liability Co (FLLC) has received a letter from the Department of Municipal Affairs, Western Region Municipality, Abu Dhabi, for the non-renewal of three contracts with an estimated annual total contract worth RM184mil. The contracts are for the provisions of civil, mechanical and electrical maintenance services for low-cost houses at Madinat Zayed and Liwa in Abu Dhabi. The services of FLLC for the contracts will cease with effect from April 3 and June 1. The non-renewal of the contracts shall have an effect to the group's earnings and the net assets per share of approximately 4 sen for the financial year ending Dec 31, 2011.

Tenaga Nasional Bhd (TNB) has signed two agreements worth some RM2.15bil for its Ulu Jelai hydroelectric project. The company said the first agreement was with SMEC International Pty Ltd and SMEC (M) Sdn Bhd consortium, which would provide detailed engineering design for the main civil works, engineering design review for electrical and mechanical works, project management and site supervision.

The contract value was A$22.1mil and RM31.1mil, which was equivalent to RM99.6mil at the prevailing exchange rates, it told Bursa Malaysia yesterday.

The second agreement is with Tindakan Mewah Sdn Bhd and Salini Costruttori SpA consortium. Under this contract, the consortium will be responsible for the main civil, electrical and mechanical works.

The main civil works consist of the construction of a dam, two water-transfer tunnels and an underground power house. It said the value of the second contract was 307 million euros and RM818.1mil, which was equivalent to RM2.05bil at the prevailing exchange rates.

Affin’s share price rose its 10-year high on Wednesday at RM3.59, despite its management dispelling rumours of a takeover by CIMB Group Holdings Bhd. Later, CIMB stated it is not involved in any discussions relating to a possible acquisition or merger with Affin Bank or any of its related companies. Its shares may see some selling pressure.

Naim Holdings moved a further step ahead for the Sabah Oil and Gas project after signing a memorandum of understanding (MoU) on the relevant works involving oil and gas facilities. Its unit Naim Engineering Sdn Bhd had signed the MoU with Sabah Oil & Gas Contractor Association (SOGCA) and Dewan Perniagaan Melayu Malaysia Negeri Sabah. The MoU was to record certain basic understanding reached between the parties to participate in the relevant works of the O&G facilities under the contract secured recently for the engineering, procurement, CONSTRUCTION and commissioning of the project.

Green Packet plans to invest RM250 million in 2011 to expand its sites from 1,000 now to 1,600. Each site has about three base stations.  Group managing director CC Puan said this would increase its coverage to about 52% of the population of West Malaysia by the end of this year, from about 45% of the population at present.

Property developer SP Setia Bhd (8664)has emerged as the leading contender to build the Penang International Convention Centre (PICC) on the grounds of the Penang International Sports Arena (Pisa). According to sources, SP Setia is likely to get a 30-year concession to build and operate the convention centre, which will include other components like a hotel and retail outlets. "The proposed project is likely to cost over RM200 million," one source told Business Times yesterday. Another source said SP Setia is one of four companies which had responded to a request for proposal from the Penang state government. The Penang Island Municipal Council had closed the tender in September last year.  

AN ambitious RM6.5 billion plan to develop an integrated resort in Karambunai near Kota Kinabalu has received support from the Sabah government. The state cabinet gave its nod after a delegation led by Karambunai Corp Bhd president Tan Sri Dr Tsen Lip Keong provided a briefing on the project yesterday. Chief Minister Datuk Seri Musa Aman said the development could strengthen Sabah's position as a tourism hub in the region and provide employment opportunities. "According to the briefing, 20,000 to 50,000 jobs will be made available in the next 10 years.

Tejari Technologies is confident of growing its revenue by 20% this year with the expandion of its retail and wholesale businesses in information and communication technology (ICT products. The recent acquisition of PC3 Technology SV and Essential Action SV have helped boost the group;s revenue for nine month period ended Aug 31.  

Malaysia Airports is set to receive four new airlines flying into KL International (KLIA) in sepang this year. MAHB marketing manager Mohamed Sallauddin Mohamed Shah said these airlines from the Middle East, India, South Afgrica have expressed strong interest to fly into KLIA and some indicated plans to commence services dyibng rge summer and witer period.

Perodua, Malaysia’s number one car seller in 2010, has set aside RM614.2mil for capital expenditure (capex) this year. Of this amount, between RM250mil and RM300mil will be utilised for the development of a new model, which is expected to further boost overall sales. “New models are needed in this business and we will also work towards increasing the local content. At present, the Alza has the highest local content of 90% while for other models, such as the Viva and Myvi, it is above 80%,” managing director Datuk Aminar Rashid Salleh told a press conference after unveiling the company’s sales figures for 2010 yesterday. He also said the new model would be a small compact car, but declined to say if it would be a completely new model or replacement of units of the current models in Perodua, as the Myvi has been in the market for five years.