FBMKLCI 1541.03 DJ-93.28 CRUDE OIL 99.53 RM 2.9870

BURSA Malaysia is likely to be lower this week with the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) expected to drift between 1,530 and 1,540-point level. Affin Investment Bank head of retail research, Dr Nazri Khan, said rising inflation, the start of interest rates upcycle, the unexpected commodity bubble burst and the uninspiring overnight session on Wall Street were likely to be important forces to influence the broad market's direction. The economic situation also remains uncertain for the Group of 3 (US, Europe and Japan) following the untimely resignation of International Monetary Fund chief last week. However, he said, the local market was likely to find footing from stable ringgit, oil and gold price. Nazri said the local market was also likely to get support from the potential listing of Felda Sugar, the launching of Financial Sector Master Plan and the start of the third round of banking consolidation next month. Further, the news that the local giant construction MMC Corp planned to list its energy and port units, with an estimated market capitalisation of up to RM14bil, would also create some excitement, he said.

Mah Sing Group Bhd will launch RM2.5bil to RM3bil worth of projects in the Klang Valley, Penang and Johor this year to meet its sales target of RM2bil for the current financial year ending Dec 31. Group managing director and chief executive Tan Sri Leong Hoy Kum said the projects would comprise an array of commercial, residential and industrial properties.

Analysts still bearish on sector due to weak global chip sales

PETALING JAYA: Research analysts are still bearish on the semiconductor sector in the country.

Last month, analysts downgraded their calls on Malaysian Pacific Industries Bhd (MPI) and Unisem (M) Bhd following weaker-than-expected financial numbers for the first quarter of this year. Research houses said the earnings of both semiconductor companies were impacted due to inventory adjustment among clients following a supply pile-up in the second half of 2010. TA Securities Research recently downgraded the semiconductor sector from “neutral” to “underweight”. “We foresee global chip sales remaining weak in the second quarter of this year as many semi-device makers are moderating production after the earthquake in Japan,” said the report. The continuous strengthening of the ringgit against the US dollar will be tough for local semiconductor manufacturers as revenue is denominated in the US dollar, according to the report.

Melati Ehsan was awarded a RM148.63 million project from the Public Works Department to build a road stretching from Gua Musang in Kelantanf to Kampung Relong in Pahang. Melati’s unit Pembinaan Kery Sdn Bhd accepted a letter of award from the PWD for the road CONSTRUCTION [] project which starts on June 15 this year until Dec 10, 2013.

TSH Resources has allocated RM100 million or more per year as PLANTATION [] development capital expenditure (capex) for new planting of oil palm trees, the bulk of which will in Kalimantan, Indonesia. Bulk of the RM100 million capex would be for new planting in Kalimantan where it has about 58,000 ha of land which is still unplanted. The Indonesian operations, with the trees maturing by next year, would underpin TSH’s fresh fruit bunches output, productivity and revenue.

KPJ Healthcare reported a set of unimpressive earnings at RM27.51 million in the first quarter ended March 31, 2011 (1QFY2011) compared with RM27.24 million a year ago. Revenue rose 16.4% to RM437.75 million from RM376.04 million a year ago while earnings per share were 5.09 sen compared with 5.19 sen. It declared 2.4 sen dividend per share. However, KPJ expected the group’s performance would continue to improve in line with increasing demand, hospital capacity and activities.

MK Land Holdings Bhd’s net profit rose more than two-fold to RM7.22 million in the third quarter ended March 31 versus RM2.02 million a year ago, underpinned by its strong property performance. Revenue rose to RM165.15 million from RM94.74 million. Net asset per share was 87 sen.

Can-One Bhd has taken court action KIAN JOO CAN FACTORY BHD [] over the latter’s proposed one-for-two bonus issue and the proposed renounceable rights issue of 166.56 million 2five-year warrants 2011/2016 on the basis of one warrant for every four KJCF shares held after the proposed bonus. Can-One claimed the proposals breached the rights of Can-One under the shares sales agreement dated March 13, 2009 and in breach of the Order of the Court of Appeal dated Aug 25, 2010 and the order of the Federal Court dated Feb 21, 2011.

The Edge weekly reports that crane manufacturer Handal Resources has been on an expansion trail since it was listed two years ago, and the strategy has borne fruit.

FBMKLCI 1541.27 DJ+80.60 CRUDE OIL 99.96 RM 3.009

TSH reported its 1Q2011 earnings surged 105% to RM23.95 million from RM11.26 million a year ago boosted by its Indonesian palm oil operation where fresh fruit bunches (FFB) production grew by 48%. Revenue rose 5.04% to RM252.59 million from RM240.47 million while earnings per share were 5.84 sen compared with 2.75 sen.

Tan Chong Motor Holdings Bhd’s net profit rose 14.5% to RM74.08 million in the first quarter ended March 31, 2011 from RM64.67 million a year ago, boosted by the sale of its Nissan Teana. Revenue increased by 29.8% to a record high of RM1.13 billion from RM870.36 million. Earnings per share were 11.35 sen from 9.91 sen a year ago.

Encorp Bhd swung into the red in the first quarter ended March 31, 2011 with net losses of RM378,000  compared with net profit of RM246,000 a year ago. The losses were despite a 33% increase in revenue to RM63.35 million from RM47.63 million. Loss per share was 0.17 sen compared with earnings per share of 0.12 sen.

DUTCH LADY MILK INDUSTRIES BHD []’s net profit for the first quarter ended March 31, 2011 rose 36.2% to RM28.34 million from RM20.81 million a year earlier, due mainly to higher sales, favourable sales mix and cheaper carry-over stocks. Revenue for the quarter rose to RM196.64 million from RM170.45 million in 2010. Earnings per share were 44.28 sen while net assets per share was RM3.53. It declared a special gross interim dividend of 30 sen per share in respect of the financial year ending Dec 31, 2011 to be paid on July 1.

Hard disk drive manufacturer JCY International Bhd’s net profit for the second quarter ended March 31, 2011 slumped 81% to RM12.46 million from RM65.88 million a year ago. The decline in earnings were due mainly to increase in the cost of production resulting from increase in the cost of raw materials like aluminium and stainless steel and also increase in labour cost. JCY’s revenue for the quarter fell 27.7% to RM397.43 million from RM549.69 million. Earnings per share were 0.61 sen while net assets per share was 43.08 sen.

For the six months ended March 31, JCY’s net profit tumbled to RM19.97 million from RM143.36 million, while revenue fell to RM836.34 million from RM1.08 billion in 2010.

Deleum Bhd which provides a diverse range of supporting specialised products and services for the oil and gas industry, has submitted tenders for contracts worth RM200mil. Group managing director Nan Yusri Nan Rahimy said the value of its current contracts stood at about RM1bil and they would end anywhere from the end of this year until 2016. The new contracts, meanwhile, were scattered between now and the middle of next year, he told reporters after the company's AGM here yesterday.

PJI Holdings Bhd, a Malaysian engineering services group, fell to a two-week low in Kuala Lumpur trading after its third-quarter net loss widened to RM6.15 million from a year earlier.  The stock slid 5.1 per cent to 18.5 sen at 9:41 a.m. local time, set for its lowest close since May 4.

Dutch Lady Milk Industries Bhd, a Malaysian dairy products maker, rose to a five-month high in Kuala Lumpur trading after announcing a 36 per cent jump in quarterly profit and plans for a special interim dividend. The stock climbed 1.1 per cent to RM17.76 at 9:08 a.m. local time, set for its highest close since Dec. 22

Latexx Partners Bhd, a Malaysian rubber-glove maker, rose in Kuala Lumpur trading after receiving an offer to merge with rival YTY Industry Holdings Sdn Bhd in a transaction valued at RM1.37 billion. The stock advanced 1.6 per cent to RM2.55 at 9:11 a.m. local time, extending yesterday’s 4.6 per cent gain. Latexx will buy four units of YTY by paying RM409.5 million in cash and the balance RM955.5 million in new stock at RM2.50 a share, the company said in a statement in Kuala Lumpur late yesterday.  Latexx will deliberate on the offer, which will remain open for 21 days, it said.

FBMKLCI 1511.11 DJ- 107.01 CRUDE OIL 98.90 RM 3.02

It may not be the time for bargain hunting yet as there is more downside to the local stock market due to negative external factors. Investors appeared to be staying at the sidelines yesterday with only 1.7 billion shares being traded compared to the average daily volume of more than 2 billion at the start of the year. The local benchmark FTSE Bursa Malaysia KLCI had yesterday shed more than 10 points in intra-day trading before finishing at 1,511.11, 2.52 points or 0.17% lower, dragged down mostly by plantation stocks affected by lower crude palm oil prices.

PLUS Expressway Bhd, the country's biggest toll road operator, obtained its shareholders' approval yesterday for the RM23 billion takeover bid by its major shareholders UEM Group Bhd and the Employees Provident Fund (EPF), despite over 100 minority shareholders claiming the EGM was "illegal" and walking out halfway.

Telecommunications service provider Axiata Group Bhd posted a net loss of RM367mil for the fourth quarter (Q4) ended Dec 31, 2010, due to impairment loss on its investment in an India-based associate. This compared with a net profit of RM558mil for the corresponding period last year.

Multi-Purpose Holdings Bhd (MPHB), which has businesses from gaming to stockbroking, recorded improved results in the continuing operations of the company despite the lower net profit for the fourth quarter ended Dec 31, 2010.

Plantation firm TSH Resources Bhd’s net profit for the fourth quarter ended Dec 31, 2010, surged 115.98% to RM44.22mil compared with the previous corresponding quarter mainly due to higher contributions from Indonesian operations.

Star Publications (M) Bhd’s net profit for the financial year ended Dec 31, 2010 (FY10) rose 27.80% to RM184.94mil on revenue that gained 9.01% to RM1.06bil.

Hong Leong Bank Bhd’s (HLB) net profit for the second quarter ended Dec 31, 2010 rose to RM291.43mil from RM224.75mil a year ago while revenue increased to RM603.96mil from RM519.40mil previously.

Transmile Group Bhd faces suspension and delisting from March 3 and March 7 respectively for failing to submit a regularisation plan to the Securities Commission or Bursa Malaysia for approval by Feb 22.

PETRA ENERGY BHD [] is likely to post losses for the fourth quarter of 2010 even with crude oil prices around US$100 again.

Genting Bhd’s net profit surged 89.6% to RM465.43 million in the fourth quarter ended Dec 31, 2010 from RM245.4 million a year ago. Revenue rose 76% to RM4.086 billion from RM2.320 billion. Earnings per share were 12.57 sen compared with 6.64 sen while it proposed a final dividend of 4.5 sen. It said the higher revenue was mainly from the leisure and hospitality division with the commencement of operations of Resorts World Sentosa in Singapore, during the first quarter of 2010. As for FY10, its earnings rose 110.9% to RM2.202 billion from RM1.044 billion while revenue surged 71% to RM15.194 billion from RM8.893

billion. Group revenue rose by 71% to record a new high of RM15.19 billion in FY2010 (FY2009: RM8.89 billion), while group profit before tax rose by 74% to post a new high of RM4.39 billion in FY2010 (FY2009: RM2.53 billion).

IJM Corp’s earnings rose 58% to RM132.19m in the third quarter ended Dec 31, 2010 from RM83.64 million a year ago, boosted by its property and PLANTATION []s sector. Revenue dipped 3.7% to RM901.34 million from RM936.31 million. Earnings per share were 9.78 sen compared with 6.32 sen. IJM said the lower revenue was mainly due to mainly to the CONSTRUCTION [] and property divisions.

Kossan’s net profit for the fourth quarter ended Dec 31, 2010 rose 21.4% to RM29.45 million from RM24.25 million a year ago, driven by the expansion in the company’s gloves division with better product mix and margin. Revenue rose 11% to RM252.97 million from RM227.75 million. Earnings per share were 9.18 sen while net assets per share was RM1.40. For the financial year ended Dec 31, 2010, Kossan’s net profit recorded an increase of 76.1% to RM118.59 million from RM67.33 million a year ago. Revenue rose 24.6% to RM1.05 billion from RM842.14 million.

Tan Chong’s net profit for the fourth quarter ended Dec 31, 2010 rose 21.8% to RM52.07 million from RM42.73 million a year earlier, boosted by across the board price discounting to clear 2010 inventories ahead of new model introductions in 2011. Revenue for the quarter rose 16% to RM835.36 million from RM720.19 million a year ago. Earnings per share were 7.98 sen, while net assets per share was RM2.57.