FBMKLCI 1521.18 DJ-140.32 CRUDE OIL100.27 RM 2.9570

Markets could continue to see cautious trade on Friday, May 6, with focus on banks after Bank Negara Malaysia raised the overnight policy rate (OPR) and statutory reserve requirement (SRR). After market close, Bank Negara Malaysia raised the OPR by 25 basis points to 3% during its Monetary Policy Committee (MPC) meeting on Thursday. The central bank said the floor and ceiling rates of the corridor for the OPR were correspondingly raised to 2.75% and 3.25% respectively. 

Fraser & Neave posted net profit of RM131.98 million in the second quarter ended March 31, 2011 versus RM85.23 million a year ago, boosted by the sale of a college building.

Revenue was RM1 billion compared with RM872.09 million. Earnings per share were 36.80 sen versus 23.90 sen. It declared a special interim single tier dividend of 15 sen per share and an interim single tier dividend of 20 sen per share.

Pos Malaysia has viewed TRICUBES BHD []’s venture to send government notices via email as a threat and it would explore ways how it could participate in the project. “We know that this will be a significant threat to the physical mail business,” said Pos Malaysia CEO and group managing director Datuk Syed Faiusal Albar. He said that government mail amounted to RM20 million of its annual revenue.

Daibochi posted net profit of RM4.6 million in the first quarter ended March 31, 2011, down 7.4% from RM5 million a year ago as raw material prices rose.

FBMKLCI 1528.43 DJ-83.93 CRUDE OIL108.62 RM2.9450

New stock listing

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

1.    0168                BOILERM          0.33                          0.03                  1.65

Boilermech designs and manufactures biomass boilers. Its offer price is 33 sen while OSK Research has fair value of 45 sen.

Fitters, whose share price fell after it faced the threat of suspension on May 10, said it had set Friday as the deadline to submit the audited financial statement to avoid suspension.

Ingenuity, which was queried over unusual market activity, will sign an MoU on Thursday, to submit an integrated hospital information system to the Health Ministry. The system is to interlink hospitals and clinics in Malaysia to the ministry

Pos Malaysia holds its shareholders meeting late Thursday morning. There are expectations of strong response from minority shareholders over the acquisition of Khazanah Nasional’s stake in the national postal company by DRB-Hicom.

Seven companies have been shortlisted for the first phase of the US$2.5 billion (RM7.45 billion) infrastructure of Brazil’s Vale International project. Among them are MUHIBBAH ENGINEERING (M) BHD [], Gadang Bhd and Sunway CONSTRUCTION [] Bhd.

Bursa Securities has rejected construction firm Golden Plus Holdings Bhd’s application for an extension of two weeks for the submission of the company’s audited financial statements for the financial year ended Dec 31, 2010.

 

Lion buys stake in S’pore steel firm.
Lion Industries Corp Bhd (LICB) will be acquiring a 50% stake in Angkasa Hong Leong Pte Ltd, from Hong Leong Asia Ltd for S$15.3mil (RM36.6mil) as it looks to expand into the downstream steel operations business.
Property developer Mutiara Goodyear Development Bhd is acquiring 40% stake in Palmington Sdn Bhd, a unit of Tambun Indah Land Bhd, for RM2.34mil cash in a move to jointly develop 527 acres in Seberang Perai.

FBMKLCI 1535.59 DJ+7.41 CRUDE OIL 108.00 RM 2.9960

MAHB is expecting to see 12% year-on-year growth in passengers for the first three months of the year, compared with the earlier forecast of 7%.

MAMEE-DOUBLE Decker (M) Bhd has been in the limelight recently due to a privatisation proposal by major shareholders in a selective capital reduction (SCR) and repayment exercise under Section 64 of the Companies Act, 1965. This is a privatisation route that has been used successfully by several other companies.

Plantation group KL Kepong Bhd has estimated its capital expenditure for the current financial year ending Sept 30, 2011 at RM600mil. It said the expenditure consisted of new oil palm plantings in Indonesia and supporting infrastructures such as palm oil mills. “Oleochemicals capital expenditure consist of adding new capacities at Westport, Europe and China,” KL Kepong said in its corporate presentation at the Invest Malaysia 2011 conference yesterday. Between financial year 2007 and 2010, about 95% of KL Kepong’s capital expenditure was invested in plantation and oleochemicals. The company also said that it would continue to focus on land acquisition in Indonesia and Malaysia.

Alam Maritim Resources Bhd’s unit has secured RM24.24 million contracts to supply two vessels to an independent oil and gas exploration and production company. Its unit Alam Maritim (M) Sdn Bhd would provide one anchor handling tug supply vessel and one fast multipurpose supply vessel.

MEGB, its group CEO and PT Sejahteraraya Anugrahjaya Tbk (PTSA) are teaming up to look into the setting up of a university in Indonesia. They will form a joint venture company in Indonesia with proposed paid-up capital of US$10 million wherein. MEGB and its CEO will each hold a 30% stake and the remaining 60% by PTSA. PTSA is listed on the Stock Exchange of Indonesia and is the owner of Mayapada Hospital in Indonesia.

DRB-Hicom Bhd’s unit Puspakom Sdn Bhd has signed an MoU with the government to undertake the hire purchase inspection services for all vehicles. DRB-Hicom said the inspection services would be undertaken following the implementation of the newly amended Hire-Purchase Act 1967 (Amended 2010).

MALAYSIAN AIRLINE SYSTEM BHD []’s (MAS) earnings in the first quarter ended March 31, 2011 were impacted by the higher fuel prices, said its managing director and chief executive officer Tengku Datuk Azmil Zahruddin said. He said the high fuel price is “definitely making a negative impact on us”. Tengku Azmil said about 25% of the airline’s jet fuel for 2011 was hedged at US$90 per barrel but the price was now about US$140. On April 1, it was US$136.40.

Khazanah Nasional Bhd, the government's investment arm, has decided on the potential buyer for its 32.21 per cent stake in postal service provider, POS MALAYSIA BHD. "We already have a winner in mind," said Khazanah managing director Tan Sri Azman Mokhtar. However, he declined to narrow the identity of the "winner" but said the names would be submitted to the board later this month. The three shortlisted bidders are speculated to be DRB-Hicom, NATIONWIDE EXPRESS COURIER SER vices and a Amanah REIT-Malaysia Pacific Corp joint venture, wit offers ranging between RM3.38 and RM4.62 per share. The other two bidders were Scomi Bhd and TRICUBES BHD.

Guocoland Bhd posted net loss of RM3.64 million in the third quarter ended March 31, 2011, which was narrower compared with net losses of RM5.65 million a year ago. It reported revenue of RM23.95 million, down from RM42.42 million a year ago. Loss per share was 0.54 sen compared with 0.84 sen. For the nine-months, its net loss was RM2.38 million compared with net profit of RM2.49 million in the previous corresponding period. Revenue was RM84.29 million versus RM130.49 million a year ago. Its net asset per share was RM1.12. According to the notes to the accounts, it had short-term and long-term borrowings of RM786 million as at March 31, 2011.

FBMKLCI 1520.09  DJ+81.13 CRUDE OIL104.50 RM 2.996

ECM Libra’s earnings surged 250% to RM45.84 million in the fourth quarter ended Jan 31, 2011 from RM13.12 million a year ago, boosted by higher brokerage and fee income and also from trading and investment securities. Revenue doubled to RM105.84 million from RM46.79 million a year ago  while earnings per share were 5.61 sen. It proposed dividend of 4.25 sen per share. For the financial year ended Jan 31, 2011, net profit rose 59.7% to RM65.21 million from RM40.81million in the previous financial year. Revenue rose 60.2% to RM214.64 million from RM133.96 million.

Khazanah Nasional Bhd and its advisers yesterday shortlisted three companies for the sale of its 32.21% stake in Pos Malaysia Bhd. According to sources, the three companies are DRB-HICOM (M) Bhd, Nationwide Express Courier Services Bhd and Scomi Group Bhd.

Ekovest Bhd has signed a joint-venture and shareholders’ agreement with Malaysian Resources Corp Bhd (MRCB) and KL Bund Sdn Bhd in relation to the River of Life project.

Kencana Petroleum Bhd has secured a RM216 million contract from Petrofac Malaysia Ltd for the CONSTRUCTION [] of well head platforms for the Cendor oil field off the coast of Terengganu.

PETRA PERDANA BHD [], Koh Pho Wat ceased to be a substantial shareholder after disposing of one million shares on Monday at 94.5 sen a share. His direct stake was reduced to 4.78% or 21.517 million shares.

In RHB CAPITAL BHD [], the Employees Provident Fund board disposed of three million shares on March 24, reducing its stake to 959.96 million shares or 44.58%.

FBMKLCI 1491.25 DJ+95.89 CRUDE OIL 96.59 RM 3.023

The price of crude oil which hit US$100 per barrel recently - its first time in more than two years - is an upside risk for Malaysia as a net exporter. Some economists are raising concerns on how high oil prices, which is up on political tensions in North Africa and the Middle East, could spark a worldwide derailment of global economic growth, eroding consumers' purchasing power as prices of goods and services increase in tandem with the commodity. RAM Holdings Bhd chief economist Dr Yeah Kim Leng said at current levels of about US$100 per barrel, global growth momentum remained intact. “I think US$150 per barrel is a level when economies and companies like airlines should start worrying,” Yeah said.

Pos Malaysia Bhd’s net profit for the fourth quarter ended Dec 31, 2010 fell 59% to RM6.08mil from RM14.93mil in the previous corresponding period due to provisions for its investment in Transmile Group Bhd and a one-off impairment provision relating to capital expenditure of RM22.3mil incurred for its postal counter system.

Shares of Proton Holdings Bhd fell 23 sen to a 14-month low of RM3.86 yesterday, its lowest since Dec 22, 2009, after the national carmaker posted losses in its third quarter ended Dec 31, 2010.

KNM Group Bhd expects the company's debt levels to fall further as unit Borsig GmbH is doing better now.

KNM chief executive officer and executive chairman Lee Swee Eng said the company's overall debt levels (at RM1bil) were coming down now as Borsig was doing well. The company's plans to use Berlin-based Borsig, which was acquired in early 2008 for RM1.7bil, to expand business was somewhat derailed following the global economic recession, which saw oil prices drop as low as US$33 a barrel from over US$147.

Maxis Bhd posted net profit of RM610 million in the fourth quarter ended Dec 31, 2010, up 21.2% from RM503 million a year ago, boosted by its non-voice segment. Its revenue rose 4.4% to RM2.31 billion from RM2.21 billion while earnings per share were 8.10 sen compared with 6.70 sen. It proposed dividend of eight sen a share to be paid on March 30. The entitlement date for the dividend payment is March 15. For the financial year ended Dec 31, 2010, it posted net profit of RM2.295 billion compared with RM1.578 billion in FY09. Maxis said its revenue for FY10 increased by 3% or RM258 million from RM8.611 billion to RM8.869 billion.

Tanjung Offshore Bhd posted net loss of RM116,000 in the fourth quarter ended Dec 31, 2010 compared with net profit of RM614,000 a year ago mainly due to the provision for impairment of trade receivables deemed difficult to be recovered and bad debt written off. Its revenue was RM139.85 million versus RM136.25 million while loss per share was 0.04 sen compared with earnings per share of 0.25 sen. When compared with the third quarter ended Sept 30, 2010, it said the group’s total revenue for the current quarter of RM139.86 million was higher than the RM137.25 million in 3Q.

Time dotCom posted consolidated profit before tax of RM26.2 million, down 16.5% from RM31.4 million a year ago mainly due to lower dividend income received in the current quarter from its available-for-sale financial asset. Excluding investment income, the group’s profit from operations was RM838,000 or 8.3% higher in 4Q than a year ago. Its net profit rose 41% to RM44.37 from RM31.38 million a year ago, aided by deferred tax assets. Its revenue rose 13.7% to RM85.25 million from RM74.97 million while earnings per share were 1.75 sen.

Alam Maritim Resources swung into the red with net loss of RM49.62 million in the fourth quarter ended Dec 31, 2010 and also losses of RM8.24 million in FY10. Revenue fell 56.6% to RM51.97 million from RM120.04 million a year ago while it posted net loss of RM49.62 million, a contrast from the net profit of RM36.41 million a year ago. It posted loss per share of 6.0 sen compared with earnings per share of 7.20 sen. The losses in 4Q “was mainly due to higher other operating expenses as a result of provision for doubtful debts, lower contribution margin from underwater services and the offshore installation and CONSTRUCTION [] (OIC) segment and lower share of profit of jointly controlled entities”.

Petra Perdana posted net loss of RM18.34 million in the fourth quarter ended Dec 31, 2010 from net profit of RM4.05 million a year ago due to the increase in lease rental and lower charter rates. It said its revenue fell 36.6% to RM75.69 million from RM119.42 million a year ago. It recorded loss per share of 4.43 sen compared with 1.36 sen.

FBMKLCI 1519.13 DJ+73.11 CRUDE OIL 91.50 RM 3.074

Johor Corp will sell a parcel of land it owns in Johor as part payment for the RM3.6bil debt that is due in July 2012, says president and chief executive officer Kamaruzzaman Abu Kassim. He also said the land had a market value of more than RM2bil.

Kencana Petroleum Bhd hopes to start recouping its portion of investment, estimated at US$200mil, in the Berantai marginal oil field development within two years, says chief executive officer Datuk Mokhzani Mahathir. Kencana is part of a consortium, which includes SapuraCrest Petroleum Bhd and Petrofac Energy Developments Sdn Bhd to develop and operate an oil and gas field in Berantai, Terengganu estimated to cost a total of US$800mil.

Khazanah Nasional Bhd said yesterday that all bidders for its 32.21% stake in Pos Malaysia Bhd will be given an equal opportunity and that its divestment will undergo “a fair and transparent process”.The bidders will be considered based on their strategy and business plan, followed by the offer price. The name of the shortlisted bidders will be revealed to the panel after the shortlisting process is completed. These shortlisted bidders will then be invited to submit their revised strategy and business plan as well as their final offer.”

For the nine months ended Dec 31, AMMB’s net profit rose 34% to RM1.03 billion from RM766.87 million, on the back of revenue RM5.3 billion, up from RM4.87 billion a year earlier.

Tasek’s earnings in the fourth  quarter surged 325% to RM69.1 million from RM16.25 million. The much improved group results apart from the RM43.6 million gain from disposal of PLANTATION [] and other

property, was mainly in line with the increase in group's total revenue compounded by better local cement sales margin. Tasek said revenue rose 15% to RM133.67 million from RM116.08 million. Earnings per share were 43.3 sen compared with 8.77 sen. It proposed a bumper dividend, comprising of preference dividend of 6%, ordinary dividend 30% and special dividend 50%.

Mudajaya’s net profit for the fourth quarter ended Dec 31, 2010 rose 39% to RM57.09 million from RM41.05 million a year earlier, driven by the increased level of activities. Revenue rose to RM230.29 million from RM211.76 million a year ago. Earnings per share were 13.96 sen while net assets per share rose to RM1.75 from RM1. Mudajaya proposed a final dividend of 3.0 sen per ordinary share of 20 sen each under the single tier system for FY10. For the 12 months in 2010, Mudajaya’s net profit surged 75% to RM208.45 million from RM119.18 million a year ago, on the back of revenue RM869.43 million.

Hap Seng Consolidated’s net profit for the fourth quarter ended Dec 31, 2010 surged to RM103.13 million from RM7.69 million a year earlier, driven by improvement in revenue in all divisions except for fertilisers trading which was affected by lower average selling prices. Revenue rose 19.3% to RM810.88 million from RM679.6 million. Earnings per share were 18.30 sen while net assets per share was RM4.59. For the financial year ended Dec 31, 2010, Hap Seng’s net profit rose 222% to RM323.16 million from RM100.24 million a year ago. Hap Seng proposed to pay out as final dividend about 50% of its net profit tax and minority interest totalalling RM123.98 million or 22 sen per share.

RAMUNIA HOLDINGS BHD is eyeing some RM300 million worth of fabrication jobs this year as projects up for grabs start pouring into the market again, underpinned by the surge in crude oil prices. Chief executive officer Nor Badli Munawir Mohamad said on Friday that while Ramunia's existing order book was negligible, he expected it to grow this year after Petroliam Nasional Bhd  committed to opening more marginal oilfields and issue more oil and gas contracts this year.

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 1494.78 DJ -39.51 CRUDE OIL 85.76 RM 3.133

In a twist of events, two rival offers on the table in the proposed takeover of QSR Brands Bhd have been rejected. This follows Kulim (Malaysia) Bhd's announcement yesterday that it had turned down the offer by Carlyle Investment Advisors Ltd to acquire an equity interest in QSR for RM1.94 billion or RM6.70 per share. Kulim has a 57.8% stake in QSR. 

Port operator Integrax Bhd may consider selling its stake in Lumut Maritime Terminal Sdn Bhd (LMT) for a price tag of no less than RM125 million.

  

RHBCap) net profit for 3QFY10 ended Sept 30 rose 5% to RM351.4 million, underpinned by higher net interest income and fee income.  

 

Pos Malaysia’s earnings rose 44.7% to RM31.3 million in the third quarter ended Sept 30, 2010 fromRM21.63 million ago on higher operating profit, revenue, and the tariff increase effective from July 1. Revenue rose 3.5% to RM227.4 million from RM219.7 million. Earnings per share were 5.83 sen compared with four sen. The group 3Q profit from operations was RM38.1 million, higher than the RM18.3 million a year ago.

MUIIND  posted net profit of RM33.04 million in its third quarter ended Sept 30, 2010, compared with RM4.51 million a year ago. There was a reserval of impairment in an associate amounting to RM17.98 million. Revenue was 2.7% lower at RM238.45 compared with RM245.09 million a year ago, Earnings per share were 1.63 sen compared with 0.23 sen.

KLK posted a 27% increase in earnings to RM311.04 million from RM243.73 million a year ago, boosted by its plantationss sector though there was a decline in its manufacturing operations. Revenue increased by 11.9% to RM2.014 billion from RM1.799 billion while earnings per share were 29.21 sen compared with 22.89 sen. It declared dividends of 45 sen per share, an increase from 30 sen a year ago.

Three companies - Petra Energy, Carimin SB and Shapadu Corp SB - are understood to have emerged as the front runners to bag retro-fitting, hook-up and commissioning jobs for oilfields located in Peninsular and East Malaysia from Petroliam Nasional (PETRONAS), industry sources said. According to sources, the contracts are valued at RM1.2bn in total and could be evenly broken down to three parcels of RM400m between Sabah, Sarawak and Peninsular Malaysia. Petra Energy is understood to have almost secured the Sarawak portion, while Carimin is close to bagging the Sabah job. Shapadu, meanwhile, is said to be the front runner to get the retrofitting, hook-up and commissioning jobs for Peninsular Malaysia.

A study on a possible merger between the country's top two national car companies has been completed, International Trade and Industry Minister (Miti) Datuk Seri Mustapa Mohamed said. Miti is setting a date by the year-end to discuss a third-party's research findings on the possible merger between Proton Holdings and Perusahaan Otomobil Kedua SB. The study was carried out by Frost & Sullivan