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: 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 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: 1499.81 DJ: -90.52 CRUDE OIL: 85.73 RM: 3.067

Maybank's 1Q earnings at RM1b
Malayan Banking Bhd's earnings were RM1.028 billion in the first quarter ended Sept 30, 2010, up 16.6pct from RM881.80 million a year ago. It said on Friday, Nov 12 revenue rose to RM5 billion from RM4.56 billion. Earnings per share were 14.53 sen versus 12.46 sen.

AMMB earnings up 38.6pct to RM332.8m
AMMB Holdings Bhd's earnings rose 38.6pct to RM332.87 million in the second quarter ended Sept 30 (2QFY11), from RM240.15 million a year ago, boosted by an increase in interest income. It said on Friday, Nov 12, revenue rose 11.9pct to RM1.77 billion from RM1.584 billion. Earnings per share were 11.09 sen compared with 8.29 sen. It declared an interim dividend of six sen per share.  

BNM keeps OPR unch 2.75pct, vigilant of volatile capital flows
Bank Negara Malaysia maintained the overnight policy rate (OPR) at 2.75pct and said monetary policy would continue to remain accommodative and supportive of economic growth. However, it remained vigilant of large, volatile capital flows.

BRDB, a commercial and residential developer, is planning a RM652m joint development in Seri Kembangan, Selangor, with Country Heights Land SB. The project, with an estimated gross development profit of RM170m, would comprise 310 units of semi-detached houses and 13 units of bungalows sprawled over 192,561 sq m within the so-called Bluwater Estate. The construction for the proposed development is expected to commence in the last quarter of 2011 and completed within five years. Under the JV Bandar Raya and Country Heights Land will take up 75% and 25% stake respectively in an SPV purpose vehicle to undertake the development.   (Malaysian Reserve) 

TCHONG last Friday announced it will invest RM285m to build cars in Sabah after it received an approval letter from the International Trade and Industry Ministry for its application of a licence to manufacture and assemble luxury passenger vehicles and commercial vehicles. Tan Chong said the approval letter was on condition that the manufacturing and assembly activities would be for luxury passenger cars with 1,800cc and above and costing no less than RM150,000. The licence is for Tan Chong to conduct manufacturing of vehicles at the Kota Kinabalu Industrial Park (KKIP), Sabah, which was built to establish Sabah as the gateway to the Brunei-Indonesia-Malaysia-Philippines-East ASEAN Growth Area (BIMP-EAGA). (StarBiz) 

Kencana and its technical partner London-based Petrofac Ltd have emerged as front runners to bag a USD250m (RM780m) engineering, procurement, construction and commissioning (EPC)job at Block PM313, the Sepat oil field. The Sepat oil field is a marginal field in offshore of Terengganu under the purview of the National oil company Petroliam Nasional Bhd (Petrogas). According to industry players, Sepat has large oil reserves that have yet to be fully recovered. With the high crude oil prices and increasing difficulties in exploring new oilfields, Petronas intends to improve oil recovery in the brown fields. Apart from Kencana and Petrofac, there were two other JV companies vying for the job, namely (MMHE) together with its partner, France-based Technip SA, as well as Australian company Roc Oil forming a partnership with local player Griffin Energy Ltd. (Financial Daily)

Petronas Chemicals Group Bhd has fixed the price of its initial public offering (IPO) at RM5.04 a share for the portion reserved for retail investors and at RM5.20 apiece for shares to be sold to institutional investors. The IPO would raise RM12.8bn, of which RM9.2bn was to be accrued to parent company Petroliam Nasional Bhd (Petronas), the company said in a statement yesterday. Based on the institutional price, Petronas Chemicals’ market value will be RM41.6bn, making it one of the largest petrochemical producers in South-East Asia. (StarBiz)