FBMKLCI 1581.85 DJ-12.90 CRUDE OIL 97.15 RM 2.9740

MRCB’s subsidiary will undertake a RM128.7 million contract to upgrade Little India in Brickfields and build government quarters. MRCB’s 70% owned Country Annexe Sdn Bhd had signed a privatisation agreement with the government and Syarikat Tanah dan Harta Sdn Bhd (Hartanah). The agreement will see Country Annexe upgrading and beautifying Jalan Tun Sambanthan, Brickfields; develop the Pines Bazaar and build 212 government Class F quarters near Jalan Ang Seng. In return, Country Annexe will receive two pieces of land.

Hap Seng Consolidated fixed the issue price of the rights shares with warrants at RM1.05. The exercise price of the new free detachable warrants was fixed at RM1.65.

Genetec’s outstanding orderbook grew to RM98.8 million after it secured new orders worth RM45.4 million from its existing and new clients in the hard disk drive, hazardous material containment and other industries.

It said the orders for the hard disk drive (HDD) industry were RM26.8 million and hazardous material containment was RM14.1 million.

Ramunia Holdings Bhd’s unit has inked two MoUs with India’s SEW Infrastructure Ltd to take part in the bid to develop an oil and gas project. Ramunia Fabricators Sdn Bhd had on Tuesday, July 5 signed the MoU to bid for the development of WO-16 cluster and SB-14 well head platforms project. In a separate statement, Ramunia Fabricators had also signed an MoU with SEW to participate in the bid for the cluster 7 well platforms project.

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 1561.93 DJ-17.26 CRUDE OIL 110.30 RM 2.993

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

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

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

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

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

FBMKLCI 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 1563.52 DJ-37.31 CRUDE OIL 89.37 RM 3.04

Jelas Unggul Sdn Bhd has failed to meet the deadline for placing the RM50mil deposit required by PLUS Expressways Bhd in its bid to undertake the latter's businesses, effectively leaving only one formal offer, that is by UEM Group Bhd (UEM) and the Employees Provident Fund (EPF), on the table. Following Jelas Unggul's failure to pay the deposit, the only formal offer left on the table is a joint offer by UEM and EPF at RM4.60 per share which works out to RM23bil made on Oct 15.

Oil and gas firm SAAG Consolidated (M) saw its share price soar 28.5% amidst news its unit has secured a RM239.5m contract to design and build a 40km train tramway in Melaka. The company announced yesterday to Bursa Malaysia that its unit, OGS Asiapac Ltd, has secured a US$75m (RM239.5m) design, engineering, procurement, construction and commissioning (EPCC) contract from Mrails Tram (Melaka) SB on 23Dec.

Maybank Investment Bank Bhd and SapuraCrest Petroleum Bhd, via its wholly-owned subsidiary Aurabayu Sdn Bhd, have completed the signing of Aurabayu's syndicated Islamic financing facilities of up to RM750mil comprising ringgit Malaysia and US dollar denominated tranches. Maybank Investment acted as the mandated lead arranger and bookrunner. “The syndication received strong demand from both domestic and international banks, and closed with a total of six participating financiers,” the bank said in a statement yesterday.

Sapura Crest Petroleum and Kencana Petroleum are in the running to bag major oil and gas contracts for the development of marginal oil fields, expected to be announced by Prime Minister Datuk Seri Najib Razak at thebriefing on the progress of Economic Transformation Programme (ETP) today.

Ancom Logistic Bhd will resume trading from 9am  following the completion of its regularisation plan. The company's additional 209.50 million new shares issued following the acquisition of the entire stake in Synergy Translinik Sdn Bhd would be listed on Tuesday.

Transmile is selling four of its aircraft to Federal Express Corporation for US$68 million (RM208.8 million) which would enable it to reduce its debts by 39% to about RM320.1 million.The company said it had has signed a sale and purchase agreement with FedEx to sell four MD-11F aircraft for US$17 million (RM52.2 million) each to be satisfied entirely in cash.

Kumpulan Perangsang Selangor (KPS) has received the conditional offer by Menteri Besar Selangor Inc (MBI) to acquire all the voting shares in Konsortium Abass SB (Abass) and Syarikat Pengeluar Air Sungai Selangor SB (Splash) for RM9.39 per share and RM5.95 per share. Abass is 100%-owned by Titian Modal SB, which in turn is 55%-owned by KPS, while Splash is 30%-owned by KPS, with the remainder owned by Gamuda (40%)
and TSWA (30%).

Malaysian Resources Corp Bhd (MRCB) and Ekovest said they have not received any letter of award yet from the Government for a portion of the clean-up job for Klang River. Both companies said they will make the appropriate and timely announcements to Bursa Malaysia, with MRCB adding that the company constantly seeks new opportunities.

Proton Holdings has not ruled out the possibility that it is in talks with Indian automobile manufacturer Hindustan Motors to assemble its vehicles for the Indian market. “We are in talks with several parties in India. Right now, it's still too early to comment,” group managing director Datuk Syed Zainal Abidin Syed Mohamed Tahir told StarBiz yesterday. He was responding to a report by The Times of India that Proton was close to tying up with Hindustan Motors for a contract manufacturing agreement to assemble its cars for the Indian market. When asked if Hindustan Motors was one of the parties that Proton was in talks with, Syed Zainal said: “I think that can be implied.” Hindustan Motors is known for its Ambassador car that is widely used as a taxi and government limousine.

FBMKLCI 1533.42 DJ+93.24 CRUDE OIL 91.60 RM 3.04

Petra Energy is close to bagging a RM100m contract from Murphy Oil for hook-up and commissioning works,sources say. It is learnt that Petra Energy could make an announcement to the local bourse soon after ironing out a few minor issues. The job from Murphy is said to be at the same rates as the one offered by Petronas Carigali.

MRCB-IJM Land merger aborted ‘over CEO choice’

The inability of Malaysian Resources Corp Bhd (MRCB) and IJM Land Bhd to come to an agreement over who will lead the new entity is the cause of the merger between the two property firms being called off. 

A source confirmed this to StarBiz yesterday following both companies' announcements to Bursa Malaysia last Thursday that the merger was aborted as they were unable to reach an agreement on the definitive terms and conditions of the proposed merger, following a series of discussions. “The breakdown in talks is purely management related essentialy on the leadership of the new entity,” the source said. He said there was a difference in opinion on whether MRCB chief executive officer (CEO) Mohamed Razeek Hussain or IJM Land CEO-cum-managing director Datuk Soam Heng Choon should lead the new entity.

Sunway Holdings Bhd has secured two contracts totalling RM218.82mil for the expansion of a Universiti Teknologi Mara campus and a proposed link bridge in the city centre. The proposed projects are expected to contribute positively to the earnings of Sunway Group for the financial year ending Dec 31 onwards, it said in a statement to Bursa Malaysia.

MK Land Holdings Bhd is selling two plots of leasehold land in Sungai Buloh, Selangor, to Foster Estate Sdn Bhd for RM130mil cash. It told Bursa Malaysia yesterday that it had entered into sale-and-purchase agreements with Foster Estate on Dec 30, 2010 to dispose of 18.54 acres for RM100.78mil and another 8.32 acres for RM29.21mil. MK Land said it was disposing of the two plots to unlock their value which it had no immediate plans to develop and the proposals were expected to be completed by the end of 2011.

 

Maxbiz resumes trading on Tuesday. Bursa Malaysia Securities Bhs has directed the company make an immediate announcement in accordance with Paragraph 4.0 of PN 17 that it has triggered the prescribed criterion under paragraph 2.1(f) of PN 17. Bursa Securities had granted an extension until Dec 27, 2010 for Messrs. Gomez & Co to complete and submit its PN 17 assessment report to Bursa but the said report was not submitted to Bursa Securities by the due date. Hence, Bursa Securities deemed the company had failed to comply with the requirements and obligations as stated in the Bursa Securities' letters dated Nov 10, Dec 9 and Dec 24,  2010 respectively.

Parkson is expanding into Cambodia after it received a certificate of commercial registration from the government there to set up Parkson Cambodia Holdings Co., Ltd Parkson Cambodia will operate department stores in Cambodia.

FBMKLCI 1518.91 DJ +7.80 CRUDE OIL 91.33 RM 3.06

RHB Banking Group, in a collaborative effort with Pos Malaysia Bhd, is launching today the Pos Malaysia-RHB Shared Banking Services to enable banking services for its customers at selected Pos Malaysia outlets nationwide. The appointment of Pos Malaysia as the shared banking provider will also result in the opening of Easy by RHB kiosks at selected Pos Malaysia outlets that are involved in the marketing and processing of retail financial products, targeting the mass-market segment that is currently underserved, especially in the rural areas.

Property firms IJM Land Bhd and Malaysian Resources Corp Bhd (MRCB), which announced their plan last month to merge and potentially become the second largest property player, have aborted the plan. MRCB and IJM Land announced to Bursa Malaysia last Friday that the merger was aborted as both companies were not able to reach an agreement on the definitive terms and conditions of the proposed merger, following a series of discussions. They also announced that trading in the shares of both companies was suspended and would only resume on Monday. MRCB and IJM Land officials declined to comment when contacted by StarBiz. It is believed that the much anticipated merger between the two firms, announced on Nov 23, was called off due to issues over management and shareholding structure of the new entity post-merger.

The Malaysia Oil Palm Dealers Association (MOPDA) has expressed concern over the move by the Malaysian Palm Oil Board (MPOB) to bar dealers from buying and selling oil palm fresh fruit bunches (FFB). MOPDA president Datuk Abdul Fattah Abdullah said the new ruling was not beneficial to stakeholders, particularly dealers and the industry as a whole. The buying and selling of FFB among dealers was the norm and if small dealers were not allowed to trade among themselves, this would result in loss of employment, income and the eventual folding of the enterprises, he said. The MPOB ruling, said to take effect from today, was to give the opportunity for estates, smallholders and dealers to sell directly to millers, prevent small dealers from being monopolised by big dealers, and enhance the quality of oil palm fruits so that the oil extraction rate would exceed 25%.

FBMKLCI 1509.1 DJ-19.07 CRUDE OIL 88.25 RM 3.13

PN17 company LCL Corp Bhd could be delisted by Dec 27 for failing to submit its regularisation plan to the Securities Commission or Bursa Malaysia.

MRCB and IJM Land Bhd have extended the validity of their memorandum of understanding to merge and create the country’s second-largest property company to Dec 29 from Dec 14 previously.

Menang's unit wins RM1.5b contract to build 5 UiTM campuses nationwide for more than RM1.5 billion over 23 years. IMSB will build the Seremban campus, designed to cater for 5,000 students, over three years. Upon completion, the campus will be leased to the government/UiTM for 20 years. The company will maintain the facilities and infrastructure of the campus during the 20-year lease period. 

RHB Capital’s wholly owned subsidiary, RHB Bank, has entered into a MoU with Sumitomo Mitsui Banking Corp (SMBC), in line with its objective of becoming a major player in the banking industry. “RHB sees this MoU as one of the many proactive steps it is taking in enhancing its local and global strategic economic network,” it said in a statement yesterday. “The alliance will assist RHB, together with its respective subsidiaries and related companies, in strengthening its position in the Japanese business segment and also in establishing a stronger foothold in the international arena as part of the RHB banking group’s strategy for business expansion with ever deepening economic ties between Japan and Malaysia.”

DRB-HICOM Bhd has signed a MoU with the Kamaz Group, the largest automobile corporation of the Russian Federation, to look into the possibility of manufacturing and assembling selected Kamaz heavy duty trucks for the Malaysian and Asean markets. “This MoU will pave the way for the feasibility and a detailed costing study as well as the models of Kamaz truck suitable for this region,” said DRB-HICOM group managing director Datuk Seri Khamil Jamil in a statement yesterday.

FBMKLCI: 1496.49 

New stock listing

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

1.    5183                PCHEM           5.200                         3.640               26.000

AirAsia Bhd posted a record net profit of RM327.29 million in 3QFY10 ended Sept 30, up 140% from RM136.26 million the previous corresponding quarter as it flew more passengers. 

Genting Bhd's 3QFY10 ended Sept 30 net profit grew 3.62% to RM765.92 million from RM739.17 million in the previous quarter with a deceleration of contribution from its Singapore and Malaysia leisure and hospitality operations.

JohorCorp (JCorp), the ultimate major shareholder of QSR Brands Bhd, has poured cold water on Tan Sri Halim Saad's bid for Malaysia's biggest fast food group on the same day that a much higher offer was made. Earlier yesterday, US private equity group Carlyle Group offered RM6.70 a share for QSR, its parent Kulim (M) Bhd told Bursa Malaysia. But JCorp's evening announcement provided a late twist to the tale and raised more questions as it did not comment on Carlyle's bid

DRB-HICOM Bhd  said net profit for the second quarter to September 30 grew 185.5 per cent to RM155 million, from RM54.3 million in the same period last year. Consequently, net profit for the six months was at RM355.2 million against RM114.8 million in the first half of last year.

The government is expected to award the jobs for the long-awaited light rail transit (LRT) extension project soon, and successful bidders have been short listed. Sources said. According to a source familiar with the matter, parties that had lobbied for the LRT extension jobs for the Ampang and Kelana Jaya lines include UEM Group, IJM Corp, Bina Puri and TRC Synergies. The contracts to be awarded will be building of LRT stations, laying groundwork and alignment before constructing the railway. The total extension length of the Kelana Jaya line is 17km and for the Ampang line 17.7km. Both extensions will see an additional 13 stations.

Construction work on the Penang Sentral Integrated Transport Hub in Butterworth is expected to begin next month, according to developer Malaysian Resources Corp (MRCB). MRCB executive director, Datuk Ahmad Zaki Zahid, said the company has solved all the land issues and the project could proceed as usual. "The first phase of the project is expected to be completed before 2013," he told a media briefing yesterday The hub, a component project of the Northern Corridor Economic Region, would be undertaken by a joint-venture between MRCB and Pelaburan Hartanah Bumiputra .  It was earlier reported that the first phase would be delayed due to some land issues.  Ahmad Zaki said the actual cost of the project was expected to increase to RM2.7bn

MAS posted operating profit of RM122.7 million for the third quarter ended Sept 30 (3Q2010) compared with an operating loss of RM77.4 million a year ago, which lifted the nine-month financial period solidly into the black. For the 3Q2010, the significant improvement was mainly due to higher operating revenue and improvement in its yield.

PROTON saw its earnings decline 19.6% to RM65.92 million in the second quarter ended Sept 30, 2010 from RM82.06 million a year ago, due to  one-off provision for stock obsolescence and branding cost. It said on Thursday, Nov 25 revenue was 6.6% higher at RM2.24 billion compared with RM2.10 billion. Earnings per share were 12 sen compared with 14.9 sen. Its net asset per share was RM9.83. Group profit before tax was RM81.26 million, a decline of 19% from RM100.65 million a year ago.

YTL Corp Bhd reported a 34.3% increase in its earnings at RM278.9 million for the first quarter ended Sept 30 from RM207.5 million a year ago, boosted by the strong performance in its major operating companies.

 

FBMKLCI 1487.53 DJ -142.21 CRUDE OIL: 81.23 RM: 3.081

Stocks fell Tuesday as a flare-up of tensions between North and South Korea combined with downbeat news on the economy gave investors plenty of reasons to sell ahead of the Thanksgiving holiday. The dollar and gold rose as investors sought safe places to park money. 

  

MRCB and IJM Land Bhd yesterday announced their proposed merger exercise, which will create the country's second largest property player after the enlarged UEM Land Holdings Bhd, with a market capitalisation exceeding RM7 billion and a land bank of over 9,000 acres. 

Market observers are speculating that a “marriage” of sorts is on the cards for SunCity and Sunway Holdings Bhd, after both companies had their shares suspended from trading for two days from yesterday, pending a material announcement on a corporate exercise. 

Gadang Holdings Bhd is bidding for several engineering and construction projects totalling more than RM2 billion and the company anticipates stronger earnings for the financial year 2011 ended May 31.

LionInd’ 1QFY11 net loss of RM18.8m. The poor results were mainly attributed to the arrival of expensive feed material, namely iron ore and scrap metal, which were mismatched with weakening selling prices.

Parkson Holdings announced that it is selling its 100% equity interest in Shantou Parkson to its 51.5% owned subsidiary - Parkson Retail (PRG).

Msports 9MFY10 earnings of RM49.2m. Production volume increased by 34% to 23.4m in 9MFY10 while average selling price improved by 4.4% to RMB18.9 per pair, mainly driven by the higher demand for EVA MD products.

MPHB posted net profit of RM86.49 million in the third quarter ended Sept 30, up 70% from RM50.73 million a year, boosted by its gaming and stockbroking operations. Revenue was 4.6% higher at RM850.7 million compared with RM813.24 million a year ago.

MUDAJAYA GROUP BHD net profit rose 31.8% to RM46.55 million for the third quarter ended Sept 30, 2010 from RM35.32 million a year ago, mainly due increased level of activities.

FBMKLCI 1503.20 DJ -24.97 CRUDE OIL 81.75 RM 3.078

Key Asian markets including Bursa Malaysia are expected to start on a softer note on Tuesday, Nov 23, weighed down by the weaker overnight close on Wall Street due to the debt crisis in Europe and the FBI’s probe into insider trading.
Reuters reported risk aversion kicked in as stocks followed the euro's fall against the U.S. dollar after turmoil in Ireland's fragile coalition government overshadowed an agreed-on bailout of the country. Investors fear the crisis will spread throughout Europe, raising the spectre of losses by exposed U.S. banks.

PPB Group Bhd saw its 3QFY10 ended Sept 30 net profit plunge 51.6% year-on-year, or RM307.1 million, to RM288 million due to weaker contributions from 18.35%-owned associate Wilmar International Ltd.

The jury is still out on the preliminary offer made by Tan Sri Halim Saad to acquire the entire business and undertakings of QSR Brands Bhd, with analysts saying details are still too scant to judge whether the offer is fair. 

MRCB-IJM Land suspended, they are to announce potential corporate exercise today. Another GLC-private sector property merger appears to be on the cards, this time between Malaysian Resources Corporation Bhd (MRCB) and IJM Land Bhd, as has been speculated since last week. 

FTSE Group and Bursa Malaysia Bhd announced yesterday that Petronas Chemicals Group Bhd would replace Berjaya Sports Toto Bhd (BToto) in the FTSE Bursa Malaysia KL Composite Index (FBM KLCI).

Javace Sdn Bhd has extended the takeover offer for UBG Bhd shares to 5pm on Dec 17 from 5pm tomorrow, UBG Bhd told Bursa Malaysia yesterday.

Salcon Bhd has proposed to sell a 40% stake in its wholly-owned subsidiary Salcon Asia to Challenger Emerging Market Infrastructure Fund Pte Ltd (EMIF) for 238 million renminbi or RM112.26mil cash.


CIMB Group Holdings Bhd posted a 26% increase in net profit to RM916mil in the third quarter ended Sept 30 versus RM726.8mil in the same period a year ago. 

BHIC posted a slightly higher net profit of RM26.9mil for the third quarter ended Sept 30 versus RM24.75mil a year ago.

FBMKLCI: 1506.05 DJ +22.32 CRUDE OIL: 82.35 RM: 3.087

Dr M cautious about hot money, rising KLCI
Tun Dr Mahathir Mohamad has expressed caution over the rapid increases in the FBM Kuala Lumpur Composite Index and the entry of "hot" foreign money into the equities. He said just as increases in investments push up share prices and the KLCI, rapid or massive divestments will push down the share prices and index.

Zelan sinks deeper into red
Zelan Bhd sank deeper into the red with losses of RM35.1 million, surpassing its revenue of RM30.70 million in the second quarter ended Sept 30, 2010 following cost overruns at its overseas projects.

Tan Chong 3Q net profit up 43% to RM49.34m
Tan Chong Motor Holdings Bhd recorded a 43.3% increase in net profit of RM49.34 million for the third quarter ended Sept 30, 2010 from RM34.43 million a year ago but it was more cautious in the remaining part of the year.

MRCB said it is currently considering various corporate proposals, responding to a Business Times report the property developer may merge with IJM Land Bhd.Further announcements will be made in due course, the company said in a statement to the Kuala Lumpur stock exchange on Nov. 19. The company didn’t elaborate.
 

Kimlun  posted net profit RM8.39 million for the third quarter ended Sept 30, 2010 on the back of revenue RM119.41 million mainly due to a higher contribution from the CONSTRUCTION segment.

QSR reported net profit of RM26.20 million in the second quarter ended June 30.  It has cash and cash equivalent of RM121 million while receivables and deposits are RM173.86 million. QSR is a subsidiary of Kulim.

Sinotop posted net loss RM6.46 million in the third quarter ended Sept 30, 2010 mainly due to impairments and unrealised loss on foreign exchange.

 

FBMKLCI: 1496.65 DJ: +173.35 CRUDE OIL: 82.84 RM: 3.113

KNM 100% subsidiaries, KnmPS won the bid for the supply of technical documentation, equipment and services for the development of gas condensate fields i.e. Adamtash, Gumbulak and Djarkuduk Yangi Kizilcha in the Republic of Uzbekistan amounting to about USD216 million (RM680m) for a duration of 2 years from Lukoil Uzbekistan Operating Company, starting now.

AirAsia X, will start flying to Paris from next Valentine's Day, more than a year after getting the rights to do so. The carrier will start four times weekly direct flights from 14 February 2011, between Paris-Orly International Airport and Kuala Lumpur International Airport's low cost carrier terminal. Yesterday, the airline announced that it would launch the route with an all-in-fare from RM499 one way. It is available for booking online from 22-24 Nov 2010. This will be the carrier's second European destination after London. The new route will be serviced by the Airbus A340 aircraft with 327 passenger capacity including 18 premium seats.

LHH has received an offer from Emerging Glory s/b to acquire the company's entire business, including all assets and liabilities, for RM318.6mil. Based on the issued and paid-up capital of Leong Hup as at Nov 18, the purchase consideration worked out to RM1.80 per share, Leong Hup told Bursa Malaysia yesterday. According to Emerging Glory's offer letter, it planned to pay RM169.7mil in cash while RM148.9mil would be considered as debt due to Leong Hup. In a separate filing with Bursa, Emivest Bhd has also received similar takeover offer from Emerging Glory for RM108mil which is inter-conditional with the Leong Hup's offer.

Shares of MRCB and IJM Land perked up amid a weak broader market yesterday after a popular finance blog speculated on a possible merger. The rise comes as retail investors have become more active in the market recently. Last month, they accounted for almost half of the volume traded. IJM securities, namely the mother share and the warrants, were among the top 10 most-actively traded securities yesterday. Meanwhile, MRCB, the master developer for the KL Sentral development in Brickfields, ended the day 9 sen higher at RM2.10 with more than 11m shares traded. The Malaysia-Finance Blogspot, under a post headlined "Does a MRCB-IJM Land merger make sense?” noted that "the word had switched from an IJM Land privatization to a merger with MRCB. Something along the lines of a UEM Land-Sunrise deal it seems". Early this month, UEM Land Holdings launched a RM1.4bn conditional takeover offer for Sunrise.