JCY posts 4Q losses of RM22.55m

KUALA LUMPUR: Hard-disk drive manufacturer JCY International Bhd posted net losses of RM22.55 million in the fourth quarter ended Sept 30, 2010 following a decline in the average selling price (ASP) and adverse foreign exchange losses.

It said on Tuesday, Nov 30 revenue declined 3% to RM485.97 million from RM501.21 million a year ago while loss per share was 1.1 sen compared with earnings per share of 3.59 sen.

Explaining the losses, JCY said the forex losses were due to the depreciation of the US dollar against the ringgit.

"In addition, the cost of production increased due to higher raw material cost and labour cost resulting from shortage of workers in Malaysia," it added.

However, for the financial year ended Sept 30, 2010, it still made a net profit of RM176.38 million, a decline of 14.9% from RM207.28 million a year ago. Revenue was higher at RM2.04 billion compared with RM1.758 billion in the previous corresponding financial year.

JCY, in its outlook, said consumer spending in the US and Europe was still weak and the on-going debt crisis of some of the European countries had continued to affect the recovery of the demand for HDD products.

"The group has started supplying HDD components to Korean and Japanese customers. The group will continue to focus on its core business and continue to intensify its efforts to increase its revenue and will focus on improving operational efficiency and cost management," it said.

Keck Seng proposes 1-for-2 bonus issue

KECK Seng (M) Bhd has proposed a 1-for-2 bonus issue to reward shareholders and to improve the liquidity of its shares in the market.

In a filing to Bursa Malaysia today, Keck Seng said the bonus, involving RM119.709 million, would be wholly-capitalised from its retained earnings.

The retained earnings stood at RM678.264 million according to the company's latest audited financial statements as Dec 31, 2009
As at Nov 30, 2010, its issued and paid-up capital stood at RM241.4 million. (including 1.974 million shares held as treasury shares)

It said the actual number of the new bonus shares that may be issued would be determined later at the entitlement date. -- BERNAMA

Kurnia Asia posts lower pretax profit

KURNIA Asia Bhd posted RM2.38 million in losses for its third quarter ended Sept 30, 2010, from a pre-tax profit of RM32.62 million recorded in the same quarter last year.

However, revenue rose to RM300.6 million from RM254.96 million.

In a filing to Bursa Malaysia today, it said the group was on track to achieve strong non-motor growth for the remaining fiscal year, and will continue its efforts to improve its overall financial performance and position.

For its cumulative nine-month period ended Sept 30, it recorded a lower pre-tax profit of RM38.63 million, compared with RM83.65 million recorded in the previous corresponding period.

Meanwhile, revenue rose to RM865 million from RM800 million previously.

BERNAMA

KPJ Health Q3 pretax profit rises to RM43m

KPJ Health Bhd's pre-tax profit in the third quarter ended Sept 30, 2010 rose by 16 per cent to RM43.1 million from RM37 million in the corresponding quarter last year.

Revenue increased by 21 per cent to RM436.5 million from RM361.5 million previously amid better showing by its hospitals.

In a statement today, managing director Datin Paduka Siti Sa'adiah Sheikh Bakir said KPJ hospitals continued to perform better this quarter.

'This is due to strong support from loyal customers, improved services and the confidence of new customers in our services,' she said.

Looking ahead, she said, the health industry's outlook remained positive and with the improving economy, KPJ Health was confident its financial year ending Dec 31, 2010 would be encouraging.

KPJ Health, she said, would continue with its initiatives to expand its network of hospitals by adding at least one or two new hospitals through acquisition and greenfield developments.

'We are on track with our plans to complete the new Bandar Baru Klang Specialist Hospital and Muar Specialist Hospital next year,' she said.

She said KPJ Health also planned to open new hospitals in Pasir Gudang and Kuantan in 2012.

'It is also constantly undergoing refurbishment and expansion exercise on its existing hospitals to increase its capacity and services,' she said. -- BERNAMA

Tradewinds Q3 pretax rises to RM233.7m

Tradewinds (M) Bhd's pre-tax profit for the third quarter ended Sept 30, 2010 rose to RM233.7 million from RM67.7 million in the same period last year.

Revenue increased to RM1.39 billion from RM455.9 million previously, it said in a filing to Bursa Malaysia today.

For the nine-month period, its pre-tax profit rose to RM525.9 million from RM97.3 million in the same period of 2009.

Revenue rose to RM3.98 billion from RM1.22 billion previously.

Tradewinds said the increase in revenue was contributed mainly by the inclusion of revenue from the rice division in the current quarter coupled with the favourable performance of the sugar and plantation division.

It said the rice division was expected to continue its good performance for the remaining period of the current financial year, riding on the current stability of international rice prices and supply.

Tradewinds said its sugar division would continue to focus on controlling production cost and maintaining high product quality.

It said the results of the plantation division for the remaining period of the current financial year was expected to be better than the current reporting quarter with the prevailing prices of palm products. -- BERNAMA

ALAM - Weak results at Alam Maritim, but pipelay barge could re-rate stock

Stock Name: ALAM
Company Name: ALAM MARITIM RESOURCES BHD
Research House: AMMB

Alam Maritim Resources Bhd
(Nov 29, RM1.09)
Maintain buy at RM1.09 with revised fair value of RM1.31: We reaffirm our 'buy' rating on Alam Maritim, but with a lower fair value of RM1.31, pegging its FY11F earnings to a PER of 15 times its three-year historical average.

Alam's 3QFY10 earnings came in at RM9 million, bringing its 9MFY10 earnings to RM47 million ' a decline of 39% year-on-year (y-o-y) on the back of a 21% drop in revenue.

The main reason for the underperformance is non-renewal of its underwater services order book. Alam is recognising current contracts which are at the tail end.

The focus now will be on consolidating this unit with a recently launched pipelay barge ' a JV with Swiber. Alam has three or four idle vessels awaiting new tenders.

We are cutting our estimates for FY10F/12F by 42% to 45% to RM61 million to RM79 million due to a weaker contribution from both the underwater services and vessel chartering divisions.

Demand for vessels in our waters will be anchored by the 21 vessels Petronas Carigali will require. Recall, 14 vessels needed next year are for deepwater works, boding well for Alam which expects delivery of two DP2 deepwater anchor handling vessels by end-this year.

Apart from Petronas Carigali's requirements, there are few others in the market: (i) rejuvenation works for Petroliam Nasional Bhd (Petronas); (ii) enhanced oil recovery services and so on; and (iii) demand from other PSCs such as Shell and ExxonMobil

With the pipelay barge ready, Alam's target is to be involved in shallow-water pipelaying works in Malaysia ' part of SapuraCrest Petroleum Bhd's 'umbrella contract'.

We believe there is a strong chance for Alam to get some slices of the available jobs because: (i) favourable demand/supply dynamics of this vessel; and (ii) the availability of the underwater unit is an added advantage over competitors.

Concerns over vessel ownership issues have been abated with the recent release of its two vessels ' Setia Ulung and Setia Aman.
Management believes the incidents were one-off and will not recur.

Alam is currently trading at a PER of 13 ' a 13% discount to its historical average of 15 times.

We believe this can be explained by: (i) concerns over litigation issues which saw its two vessels impounded but since released; and (ii) lack of news flow on new contracts. ' AmResearch, Nov 29

ANNJOO - Domestic demand emerging at Ann Joo

Stock Name: ANNJOO
Company Name: ANN JOO RESOURCES BHD
Research House: MAYBANK

Ann Joo Resources Bhd
(Nov 29, RM2.79)
Maintain buy at RM2.86 with target price of RM3.05: Ann Joo Resources' 9MFY10 net profit of RM123 million made up 69% of our and consensus' full-year forecast.

We consider this to be within our expectations as Ann Joo is likely to report a rebound in earnings in 4QFY10 on higher sales volume and better average selling prices (ASPs).

We remain positive on Ann Joo given our expectation of a domestic demand rebound in 2011/12. We maintain 'buy', with an unchanged RM3.05 target price (11 times fully diluted 2011 PER).

Key takeaways from 3QFY10 results: (i) Net profit fell to RM10 million (-77% year-on-year, -85% quarter-on-quarter) on lower manufacturing sales volume of 126,000 tonnes (-21% y-o-y, -45% q-o-q) as management held back sales to the export market in view of weak ASPs. Export sales tonnage fell substantially by 86% q-o-q and only accounted for 13% of total sales volume (2Q10: 50%); (ii) Group earnings before interest and tax (Ebit) margin dropped to 5.7% (-8.2 percentage points y-o-y, -8 percentage points q-o-q) on weak steel ASPs of estimated US$560 per tonne (-10% q-o-q) and higher scrap inventory; and (iii) Net gearing increased to 1.2 times (June 2010: 1 time) due to higher utilisation of trade facilities as inventory level rose to RM1.2 billion (+21% q-o-q).

We understand that domestic steel demand is edging up slowly, driven by the recently awarded KLIA2 project.

Ann Joo has also resumed exports since October, with 20,000 tonnes transacted, and is in the processof concluding another 20,000 tonnes of sales (against 16,000 tonnes in 3QFY10).

We are also encouraged that steel demand in China remains firm, as evident from the rising steel ASPs of US$680 per tonne in China (around 6% premium to our local steel ASPs).

We anticipate earnings to rebound in 4QFY10 owing to restocking activities and better ASPs.

Additionally, Ann Joo's mini blast furnace (+30% billet capacity by January 2011), in the final stage of construction of the auxiliary facilities (underground pipe-laying), will help the company to save costs (lower energy and scrap usage) and catch the domestic steel recovery in 2011/12.

We maintain our earnings forecasts, rating and target price. ' Maybank IB Research, Nov 29


This article appeared in The Edge Financial Daily, November 30, 2010.

SIME - A noteworthy recovery at Sime Darby

Stock Name: SIME
Company Name: SIME DARBY BHD
Research House: HWANGDBS

Sime Darby Bhd
(Nov 29, RMxx)
Upgrade to buy with revised target price RM10.20 (from RM9): Sime Darby reported 1QFY11 earnings of RM654.7 million (-4% year-on-year; reversing from 4QFY10 loss) ' in line with our forecast on an annualised basis. Top line grew 14% to RM8.78 billion, driven by the motor, property, industrial, and utilities segments, thanks to robust demand for the group's products.

However, earnings before intrest and tax (Ebit) was affected by weaker plantations performance (due to lower volumes) and losses in engineering (due to a lack of new projects). We understand that Sime is currently bidding for three new fabrication projects. No dividends were declared for 1QFY11.

The group's oil palm harvesting in Indonesia suffered a one-off setback in 1QFY11 due to flooding in South Kalimantan, which has since receded.

Fresh fruit bunch (FFB) harvesting in Indonesia is on track to recover in subsequent quarters. However, Malaysian FFB yield will fall behind our initial expectations as the lagged impact brought on by the drought in early CY10 is worse than expected.

We reduce FY11F/13F plantations Ebit by 8% to 15% on cuts in overall yields. However, the motor segment Ebit contribution is raised by 65% to 67%, industrial (8% to 9%) and property (7%). Hence, CY11F/13F earnings are raised by 2% to 6% and target price lifted by 13% to RM10.20 (based on sum-of-parts).

Recovery in most of the group's businesses has exceeded our expectations.

We believe Sime deserves a second look as the current earnings growth momentum still has legs and the shares offer a 17% potential upside to our RM10.20 target price. ' HwangDBS-Vickers Research, Nov 29


This article appeared in The Edge Financial Daily, November 30, 2010.

TM - TM books maiden contribution from Unifi in 3QFY10

Stock Name: TM
Company Name: TELEKOM MALAYSIA BHD
Research House: ECMLIBRA

Telekom Malaysia Bhd
(Nov 29, RM3.39)
Maintain hold at RM3.35 with target price of RM3.54: Telekom Malaysia's 9MFY10 core net profit of RM324.5 million is in line with our expectations but below consensus, making up of 76.8% and 59.7% of full-year estimates respectively.

Despite launching Unifi in March, TM only started to bill its early customers in July, which explains the quarter-on-quarter (q-o-q) improvements in earnings before interest, tax, depreciation and amortisation (Ebitda) margins from 32% to 33.8%. TM also benefitted from lower outpayment cost from paying out lower interconnect rate of 5.0 sen/minute (from 8.5 sen per minute previously), although this was offset by content costs from its IPTV business.

Currently, TM has 21,000 Unifi subscribers, with another 8,000 firm orders. Positively, 30% of these subscribers are new TM customers, which is quite a high percentage. Management guided that as Unifi's coverage area improves, the take-up rate will also increase accordingly. It expects a 20% to 30% Unifi subscriber compound annual growth rate (CAGR) over the next two years. The year 2011 will be a ramp-up year for Unifi, while 2012 will see significant revenue contribution from Unifi.

For now, TM plans to stick to its dividend policy of paying RM700 million or 90% of net profit, whichever is higher. Any changes in its dividend policy will only be considered after the announcement of its last quarter results. During the quarter, TM received RM252.1 million in proceeds and booked RM141.7 million of gain from the disposal of its 60 million shares in Measat. This has helped to boost its cash pile to RM3.80 billion (from RM3.60 billion in 2QFY10). Net gearing has fallen to 0.34 time, from 0.40 time in 2QFY10. It still has 193 million Axiata shares which it has yet to monetise.

We maintain our 'hold' call with target price of RM3.54 using an unchanged dividend discount model (LT growth rate: 1.5%, WACC: 7%). ' ECM Libra Investment Research Nov 29


This article appeared in The Edge Financial Daily, November 30, 2010.

Petronas Chems revenue up 21.3pc

Petronas Chemicals Group Bhd's (PCG) revenue for the six-month period ended Sept 30, 2010 increased by 21.3 per cent to RM6.3 billion, primarily driven by higher realised prices and sales volume.

In a statement today, PCG said operating profit increased to RM1.44 billion.

'This was mainly due to the inclusion of one-off negative goodwill of RM175 million on acquisition of OPTIMAL Glycols (M) Sdn Bhd in the corresponding period's results and higher amortisation expense in the current period,' it said.

Profit for the period showed a healthy double-digit growth at 12.2 per cent to RM1.3 billion, it said.

'This was also supported by the strong results from PCG's associates and jointly controlled entity,' it said.

On quarter-to-quarter comparison, PCG recorded a 10 per cent increase in revenue, driven by higher realised prices in improving market condition.

Overall, profit for the current quarter at RM572 million was lower compared to RM658 million for the same quarter last year principally due to one-off negative goodwill expense.

BERNAMA

Kulim 3Q net profit jumps five-fold to RM284.66m

KUALA LUMPUR: Kulim (Malaysia) Bhd net profit for the third quarter ended Sept 30, 2010 surged five-fold to RM284.66 million from RM43.71 million a year ago mainly due to discontinuation gain of RM151.61 million net of tax from the disposal of its OleoChemicals group completed during the quarter.

Revenue for the quarter fell to RM871.11 million from RM1.44 billion a year ago. Earnings per share was 91.13 sen while net assets per share was RM11.46.

For the nine months ended Sept 30, Kulim's net profit jumped to RM564.6 million from RM263.86 million, on the back of revenue RM4.06 billion.

Reviewing its performance year-to-date, Kulim said its PLANTATION [] sector recorded significant revenue increase of 36.9% compared to the corresponding quarters in 2009.

The foods and restaurants business contributed 9.9% higher revenue compared to the corresponding quarters in 2009, it said.

On its current year prospects, Kulim said palm products prices strengthened significantly since the last report date and currently traded at above RM3,300 per mt.

This would have positive impact on plantation operation result for the final quarter of the year and into early quarters of 2011, it said.

The disposal proceeds received from the disposal of Natural Oleochimicals Sdn Bhd would contribute to significant savings on its borrowing costs, said Kulim.

It said the food and restaurants group was optimistic of sustaining the group's current performance for the full financial year 2010.

Kulim said it would continue to implement its plan of increasing revenue and profitability and developing better cost efficiencies and improving productivity at all its restaurants and manufacturing facilities.

It said under the Intrapreneur Venture Business (IV), the shipping operations under EA Technique and its newly acquired associate company, Orkim Sdn Bhd were expected to contribute positively to the Group's bottom line with the delivery on staggered basis beginning the first quarter of 2010 of all their 10 newly constructed vessels.

All of these vessels, scheduled to be fully delivered by the end of 2010, have secured long term charter contracts, it said.

"Based on the above generally positive outlook, the Board is confident of a better result for the final quarter 2010," said Kulim.

Kurnia Asia swings into losses in 3Q

KUALA LUMPUR: KURNIA ASIA BHD [] swung into the red with net losses of RM3.74 million in the quarter ended Sept 30, 2010 as it was impacted by higher management expenses while there was an underwriting deficit.

The insurer said on Tuesday, Nov 30 the net losses were in contrast of RM32.21 million net profit in the previous corresponding period. Revenue was RM300.61 million compared with RM254.96 million. Loss per share was 0.25 sen versus earnings per share of 2.16 sen.

Kurnia Asia said there was larger management expense of RM45.46 million compared with RM41.97 million a year ago.

There was an underwriting deficit of RM29.47 million compared with an underwriting surplus of RM3.68 million a year ago.

KINSTEL - Kinsteel's target price cut by OSK

Stock Name: KINSTEL
Company Name: KINSTEEL BHD
Research House: OSK



OSK says the surprise loss at Kinsteel's downstream operations and worse than expected loss from 37 per cent -owned Perwaja again let them down.

The loss was mainly attributed to the wide mismatch between higher raw materials costs vis-���-vis lower selling prices of steel products, OSK added.

As OSK expect the quantum of improvement anticipated for fourth quarter to be rather limited

It thus cuts estimates by 65.5 per cent for financial year 2010 and 13.2 per cent for financial year 2011. This translate into a lower target price of RM0.83 - Reuters

BSTEAD - HDBSVR: High conviction Buy on Boustead

Stock Name: BSTEAD
Company Name: BOUSTEAD HOLDINGS BHD
Research House: HWANGDBS

KUALA LUMPUR: Hwang DBS Vickers Research has a high conviction Buy on BOUSTEAD HOLDINGS BHD [] as the major rerating catalyst is in property.

The research house said on Tuesday, Nov 30 that Lembaga Tabung Angkatan Tentera (LTAT) is finalising two lucrative government land deals ' (i) 60 acres of Jalan Cochrane land, and (ii) 245-acre Batu Cantonment army base in Jalan Ipoh.

'We estimate these projects could add RM2.05/share, raising our SOP value to RM10.35. This excludes its recent rights to reclaim valuable land in Penang.

'The recent RM1bn MTN program suggests these land deals are imminent. Valuations remain a bargain at 8x FY11F PE and 1.1x P/NTA, coupled with 6.0% yield,' it said.

LITRAK - OSK keeps 'buy' call on Litrak

Stock Name: LITRAK
Company Name: LINGKARAN TRANS KOTA HOLDINGS
Research House: OSK



According to OSK, Litrak's first half earnings of RM57 million made up 56 per cent of the full-year estimates and this is in line given expectations of higher losses at SPRINT in the second against the first half.

Although no dividend was declared, OSK expects a full year amount of 18 sen, thus implying a 5.1 per cent yield.

OSK maintains a 'buy' call on the company with a higher target price of RM4.22, given the possibility of investors switching from PLUS to Litrak, as the former may soon be privatised. - Reuters

KLK - KL Kepong downgraded to 'hold'

Stock Name: KLK
Company Name: KUALA LUMPUR KEPONG BHD
Research House: HWANGDBS



Kuala Lumpur Kepong Bhd, a Malaysian palm oil producer, was downgraded to 'hold' from 'buy' at HwangDBS Vickers Research Sdn Bhd on the stock's limited upside.

The share price estimate was unchanged at RM21.00, HwangDBS wrote in a report today.

Kuala Lumpur Kepong Bhd, a Malaysian palm oil producer, rose the most in three weeks in Kuala Lumpur trading after announcing a 28 per cent gain in fourth-quarter net income.

Its shares climbed 1.1 per cent to RM20.20 at 9:05 a.m. local time, set for their biggest gain since Nov. 8. -- Bloomberg

RHBCAP - RHBCap a 'buy', says HwangDBS

Stock Name: RHBCAP
Company Name: RHB CAPITAL BHD
Research House: HWANGDBS



RHB Capital's (RHBCap) 15 per cent loan growth as at September 10 has met HwangDBS' financial year 2010 forecast.

Given the solid loan growth and lower provisions, it raised financial year 2010-2011(forecast) loan growth to 15-18 per cent from 12-15 per cent, HwangDBS said.

Our target price of RM10 assumes 5 per cent long term growth rate, 10.5 per cent cost of equity, and 16 per cent return on equity.

RHB Cap remains one of the cheapest large cap banks in Malaysia. - Reuters

PCHEM - OSK Research downgrades Petronas Chemicals to Neutral

Stock Name: PCHEM
Company Name: PETRONAS CHEMICALS GROUP BHD
Research House: OSK

KUALA LUMPUR: OSK Research said Petronas Chemicals Group Bhd's 1HFY11 results were within expectations.

It said on Tuesday, Nov 30 that overall, the numbers showed a year-to-date improvement, attributed to higher realised prices on increasing demand and higher volume sold following an improvement in plant utilisation.

'Nevertheless, we are downgrading our call from Subscribe to Neutral given that the share price has rallied and is nearing our target price of RM5.51, from its IPO price of RM5.20,' it said.

The institutional price was RM5.20 and for retailers, it was RM5.04.

PERWAJA - OSK Research slashes estimates for Perwaja after losses

Stock Name: PERWAJA
Company Name: PERWAJA HOLDINGS BERHAD
Research House: OSK

KUALA LUMPUR: OSK Research said it was once again disappointed with Perwaja's deeper than expected losses in 3Q due to the mismatch between expensive iron ore pellets and lower selling prices of billets and Direct Reduced Iron (DRI).

It said on Tuesday, Nov 30 that although it could see a ray of light in 4Q, it still expect limited profit as the prolonged high premium on pellets may squeeze the margins of DRI and indirectly, billets.

'We are slashing our estimates for the next two years by a hefty 96.7% for FY10 and 34% for FY11. The new earnings translate into a lower target price of 97 sen, which implies limited downside. We remain NEUTRAL on Perwaja,' it said.

QSR - CIMB Research downgrades QSR to Neutral

Stock Name: QSR
Company Name: QSR BRANDS BHD
Research House: CIMB

KUALA LUMPUR: CIMB Equities Research has downgraded QSR Brands to NEUTRAL.

The research house said on Tuesday, Nov 30, it likes QSR even without the takeover angle. As at end-September, the same-store sales growth was encouraging at 5% for Pizza Hut and 3% for KFC.

Also, average ticket prices remained at all-time highs of RM40 for Pizza Hut and RM20 for KFC for the second consecutive quarter in 2Q.

'However, the takeover offers have whipped up investor interest, sending QSR's share price to a record RM6.29 on Monday, which offers limited upside to our target price. We, therefore, downgrade our recommendation from outperform to NEUTRAL,' it said.

CIMB Research said this was its first downgrade since it became the first research house to initiate coverage on QSR at RM3.30 on Nov 20, 2007.

'Our EPS forecasts and target price of RM6.50, which factors in a 10% discount to the average valuation of bigger F&B producers, are intact. YTD, the share prices of QSR and KFCH have soared 89% and 113%, outperforming the FBM KLCI by 72% and 95%, respectively.

'Our top F&B pick is now CI Holdings, which is the exclusive franchise holder for Pepsi in Malaysia,' it said.

Petronas Chems cut to 'neutral' by OSK

Petronas Chemicals Group Bhd first half 2011 results were within expectations. Overall, the numbers showed a year to date improvement, attributed to higher realised prices on increasing demand and higher volume sold following an improvement in plant utilisation.

Nevertheless, OSK is downgrading its call from 'subscribe' to 'neutral' given that the share price has rallied and is nearing the target price of RM5.51, from its IPO price of RM5.20. - Bernama

OSK Research: Near term market still bullish

KUALA LUMPUR: OSK Research said the FBM KLCI rebounded from as much as an 18.03-point loss at the day-low to close Monday, Nov 29 with a 3.90-point gain.

"It was a 21.93-point rebound that will go down in history as one of the most impressive rebounds for the 2009/2010 bull market," said the research house in its technical outlook on Tuesday, Nov 30.

OSK Research said as a result, the market ended the day at above the key recent low of 1,488 points. Monday's price action once again proves the importance of the 1,488-level. Nevertheless, the benchmark is still stuck within the potential downtrend channel.

"Remember the downtrend channel will guide us as to when the consolidation phase will end. There is still a possibility of the key index retracing towards uptrend line 1 as long as it remains stuck within the potential downtrend channel.

"Note that a break below the 1,488 pt-level will likely invite strong selling pressure and confirm the breakdown from uptrend line 2. However, the market can still avoid from falling further by maintaining a posture at above the 1,488 pt-level and stage a breakout from the downtrend channel," it said.

The research house said its view towards the near-term market has been the same, that is, its technical landscape will remain bullish as long as the index is still trading at above uptrend line 1.

OSK Research added it  was still eyeing the 1,500-level as the next resistance, followed by the 1,512-1,514 area. Immediate support is now seen at the 1,488 level, followed by the 1,479 level.

RHB Capital posts higher pre-tax profit

RHB CAPITAL Group reported a higher pre-tax profit of RM453.2 million in the third quarter ended Sept 30, 2010, as compared to RM447.9 million achieved in the preceding quarter.

The profit was achieved on a higher revenue of RM1,616.6 million from RM1,338.9 million previously.

For the nine-month period, the group recorded a pre-tax profit of RM1,375.3 million compared to RM1,161.3 million in the previous year, on revenues of RM4,470.6 million and RM4,034.6 million respectively.

RHB Capital in a statement today said the higher profit was mainly attributed by the higher net interest income and lower impairment losses on other assets, partially offset by higher allowance for impairment on loans, advances and financing and higher other operating expenses.

For the year's prospect, the group said the introduction of EASY by RHB has progressed well, with over 100 outlets opened to date and enabled the Group to successfully further penetrate the retail market and gaining traction in its domestic market position.

It added, the retail and capital market activities will continue to be active for the rest of the year, and with the infrastructure being put in place over the past 18 months, the group is well-poised to reap the benefits of the continued economic growth in the country. - BERNAMA

Lafarge sees lower Q3 pre-tax profit

LAFARGE'S Malayan Cement Bhd's pre-tax profit for the third quarter ended Sept 30, 2010 fell to RM102.142 million from RM126.472 million in the corresponding quarter in 2009.

In a filing with Bursa Malaysia, Lafarge said the weaker performance was due to lower export contribution, higher fuel costs and losses from its operations in ready-mixed concrete and in Singapore.

The lower pre-tax profit is also due to lower kiln performance in one of our plants which resulted in lower production, lower export volume and higher production costs, it said.

Its revenue fell eight per cent to RM568.091 million from RM618.319 million in the corresponding quarter in the previous financial year.

This was mainly due to lower export volume and prices coupled with weaker US dollar and lower sales in Singapore mitigated by slightly higher domestic selling price, it said.

In the nine-month period ended Sept 30, 2010, its pre-tax profit fell to RM250.603 million from RM317.931 million in the corresponding period in the previous year.

Its revenue fell RM1.708 billion from RM1.859 billion.

Lafarge said taking into consideration the year-to-date results and the current market condition, the group's financial results for the remaining quarter of the year were not expected to improve significantly. -- BERNAMA

K Kenanga records pre-tax loss

KandN KENANGA Holdings Bhd recorded a pre-tax loss of RM 22.7 million for its nine-month period ended Sept 30, 2010 compared to a pre-tax profit of RM16.7 million in same period a year ago.

Revenue, however, rose to RM205.2 million from RM180.9 million previously, it said in a statement today.

For the third quarter ended Sept 30, 2010, KandN Kenanga posted a pre-tax loss of RM11.99 million versus a pre-tax profit of RM12.7 million previously.

Revenue fell to RM66.8 million from RM81.3 million previously.
The group said its operating profits (GOP) increased to RM40.39 million for the first three quarters of 2010, compared with RM26.9 million for the same corresponding period in 2009.

Going forward, it said, Kenanga Investment would continue to assess its loan portfolio and investments, and where necessary put through the impairments by the end of the financial year. - BERNAMA

Leong Hup sees higher pre-tax profit

LEONG Hup Holdings Bhd pre-tax profit rose to RM38.3 million in the second quarter ended Sept 30, 2010, from RM29.8 million in the same period last year.

The profit was achieved on a higher revenue of RM334.5 million compared to RM302.8 million previously.

For the nine-month period, the company recorded a slightly higher pre-tax profit of RM59.6 million compared to RM56.1 million in the previous year, on revenues of RM629.3 million and RM583.4 million, respectively.

In a filing to Bursa Malaysia today, Leong Hup said the increase in profit and revenue was due to higher demand for the poultry products coupled with better selling price.

For the current year prospect, it said the board of directors believe that the remaining six months period until March 31, 2011, is still challenging.

'Despite the recent stable selling price of broiler chickens, day-old chicks and eggs, the upcoming months is still challenging due to the volatile fluctuation of commodity raw material price,' it said. - BERNAMA

Mah Sing records higher pre-tax profit

MAH Sing Group Bhd recorded a higher pre-tax profit of RM48.9 million in the third quarter ended Sept 30, 2010, compared to RM32.3 million in the same period last year.

The profit was achieved on a higher revenue of RM283.4 million against RM135.1 million previously.

For the nine-month period, the group pre-tax profit rose to RM138.6 million from RM95.7 million in the previous year, on revenues of RM810.8 million and RM452.6 million respectively.

Group Managing Director cum Group Chief Executive Tan Sri Leong Hoy Kum said the improved revenue and profit for the financial period was attributable to progressive recognition of development revenue and profit contribution from the property development activities.

He added, the plastic division also recorded improved revenue and profit over the corresponding period in the previous year.

For the prospects and property industry outlook, Leong said the group was confident that it would be able to achieve satisfactory results for 2010 in view of the strong sales already locked in as well as good response to project previews.

'The property market is sustainable and the current buying pattern is backed by fundamentals of the economy and purchasers,' he said in a statement today. - BERNAMA

BPURI - Bina Puri's earnings forecast revised up

Stock Name: BPURI
Company Name: BINA PURI HOLDINGS BHD
Research House: KENANGA



KENANGA Research has revised upward the earnings forecast of Bina Puri Holdings by five per cent for the financial year 2011 after imputing the amount of contract to be recognised.

Kenanga Research in a statement Monday said it has maintained a "buy" recommendation on the company's shares but placed a higher target price of RM1.92 from RM1.79 previously.

The research company also forecast Bina Puri to record a RM33 million net profit for the financial year 2012, reflective of a higher recognition of two significant projects, the Low Cost Carrier Terminal (LCCT) and Light Rail Transit (LRT) contracts with a two per cent net margin assumption.

It added, media reports of a joint venture company between Bina Puri and Tim Sekata Sdn Bhd having been appointed the contractor for phase one of the LRT Ampang extension from Sri Petaling to Putra Heights, bodes well for the company's earnings for financial year 2011.

It also added, the RM635 million LRT project as well as a RM68 million contract to fabricate and deliver the segmental box girder, will add some earnings visibility for the next two and a half years.

This Kenanga Research explained, will contribute to the bottomline, mainly in financial year 2011 and 2012. - BERNAMA

Pos Malaysia 3Q earning up 44.7% to RM31.3m

KUALA LUMPUR: POS MALAYSIA BHD []'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.

It said on Monday, Nov 29 that 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.

"The significant increase in profit from operations was due to the higher revenue achieved by RM57.7 million but was partially offset by the higher operating expenses incurred by RM37.9 million," it said.

Profit before taxation increased nearly 64% or  RM17.5 million due to higher operating profit and higher write back of impairment in value of RM4 million. The increase was moderated by the decrease in other income by RM4.2 million.

Bina Puri confident of securing more jobs

BINA Puri Holdings Bhd is confident of securing more construction jobs both locally and overseas, says its Group Managing Director, Senator Tan Sri Datuk Tee Hock Seng.

'To date, this year alone, we have secured new projects amounting to RM2.4 billion. This is the highest value of new projects secured in a year.

'It augurs well for our financial performance in future. Moving forward, we are confident of our prospects in securing more construction jobs to be rolled out locally and overseas,' he added.

The Bina Puri Holdings Bhd-Tim Sekata joint venture has secured two contracts for the construction of the Ampang Light Rail Transit (LRT) line extension project amounting to RM702.3 million.

In addition to being appointed the main facilities contractor which carries a contract value of RM634.6 million, the Bina Puri-Tim Sekata JV was also appointed a nominated sub-contractor for the fabrication and delivery of segmental box girders for RM67.7 million.

Both contracts were awarded by Syarikat Prasarana Negara Berhad and are expected to be completed within 27 months.

Bina Puri and Tim Sekata in a 70:30 joint venture arrangement, have a long established working relationship, and have undertaken multiple construction jobs together previously.

The contracts are expected to contribute positively to Bina Puri's financial performance for the financial years ending Dec 31, 2011, 2012 and 2013. - BERNAMA

QSR spurns revised takeover bid

QSR Brands Bhd, a Malaysian fast-food chain operator, rejected a revised joint takeover offer made by a company led by Halim Saad, KUB Malaysia Bhd and a unit of London-based buyout firm CVC Capital Partners Ltd.

'The board has decided to reject the proposal,' QSR said in an exchange filing in Kuala Lumpur today, without providing a reason.

The three companies offered RM6.70 a share to take over QSR, according to a separate statement by KUB. That matched a RM1.94 billion made bid by Washington-based private equity firm Carlyle Group on Nov. 25. Idaman Saga Sdn Bhd, a company part-owned by businessman Halim Saad, made an earlier offer of RM5.60 per share on Nov. 22.

A takeover would give QSR's new owner control of KFC Holdings (Malaysia) Bhd, the nation's biggest fast-food operator, as well as the Pizza Hut chain of restaurants in Malaysia and Singapore. KUB owns the franchise for AandW outlets in Malaysia and Thailand while CVC is affiliated to CVC Capital Partners, a private equity firm.

Shares of KUB, QSR, Kulim and KFC were suspended until further notice, the companies said in separate statements today. Shares of QSR have surged 89 per cent this year, outpacing the benchmark FTSE Bursa Malaysia KLCI Index's 17 per cent gain.

KUB worked in collaboration with Idaman and CVC on the revised bid for all the business and undertakings of QSR, according to its statement.

Listed in April 2004, QSR operates more than 530 KFC restaurants in Malaysia, Singapore, Brunei and Cambodia, and about 230 Pizza Hut outlets in Malaysia and Singapore, according to its website. - Bloomberg

SUNRISE - ECM revises Sunrise rating to 'hold'

Stock Name: SUNRISE
Company Name: SUNRISE BHD
Research House: ECMLIBRA



ECM Libra has revised Sunrise Bhd recommendation to "hold" from "buy" but maintained the target price at RM2.80 per share following UEM Land Holdings' takeover offer to acquire all the company's equity last week.

It said UEM Land offer price of RM2.80 has increased the company's share price by 8.3 per cent to RM2.73, close to the offer price.

While Sunrise's revised net asset value is estimated to be at RM3.46 per share, near term upside is expected to be capped by the offer price, it said in a research note.

Prior to the acquisition, ECM Libra said UEM land did not intend to maintain the listing status of Sunrise if the company did not fulfil the minimum public shareholding spread as a result of the takeover offer. - Bernama

TM - ECM keeps 'hold' call on TM

Stock Name: TM
Company Name: TELEKOM MALAYSIA BHD
Research House: ECMLIBRA



ECM Libra Investment Research is maintaining its "hold" call on Telekom Malaysia (TM) with an unchanged target price of RM3.54.

In its research note here today, it said TM's nine-month financial year 2010 core net profit of RM324.5 million, was in-line with its expectations but below consensus expectation.

The research house projected TM's Unifi subscribers growth at 20-30 per cent Compound Annual Growth Rate (CAGR)over the next two years.

"2011 will be a ramp-up year for Unifi, while 2012 will see significant revenue contribution from Unifi," it added.

ECM said, TM plans to stick to its dividend policy of paying RM700 million or 90 per cent of net profits, whichever is higher.

"Any changes in its dividend policy will only be considered after the announcement of its last quarter result," it added.

Meanwhile, AmResearch said it is maintaining a "buy" call on TM with a fair value of RM3.90.

The research house said, TM made RM446.6 million in the third quarter financial year 2010, against RM497 million of its full-year estimate.

"We were hoping that the second half 2010 would be able to register a better performance due to the festive season," it added.

It said, against the last quarter, there was an expected reduction in revenue from voice business, by 2.2 per cent, which may have been caused by the bundle packages.

"The implication of which is, as more subscribers upgrade to bundle packages, the contribution from voice business would decline in tandem," it added. -- Bernama

EONCAP - 'EONCap takeover likely to proceed'

Stock Name: EONCAP
Company Name: EON CAPITAL BHD
Research House: AMMB



AmResearch Sdn Bhd is maintaining its view that the EON Capital Bhd (EONCap) takeover by Hong Leong Bank Bhd (HLBB) will likely proceed.

The fair value for EON Cap remains at RM7.30 per share, it said in its research note today.

HLBB and EON Cap have announced that HLBB had extended the deadline for EON Cap to accept its offer to acquire the latter's entire assets and liabilities to April 30 next year from Nov 30, 2010.

AmResearch said, there is no surprise, as it had been widely expected following news that the High Court had provided further dates for the hearing of Primus (M) Sdn Bhd''s first petition, which stretches to March next year.

This is in relation to the petition filed by Primus, EON Cap's major shareholder, essentially on grounds that selected directors had neither performed their fiduciary duties nor acted in the best interest of the company.

Primus also felt the proposed takeover is not structured in the best interest of shareholders.

"We still think that EON Cap's acceptance is pending, only on one main condition, which is the outcome of the lawsuit.

"This is because we consider EON Cap to have fulfilled most of the conditions set by HLBB in order to comply with the latter's Nov 30, 2010 timeline," AmResearch said. -- Bernama

SUNWAY - ECM maintains 'buy' call on Sunway

Stock Name: SUNWAY
Company Name: SUNWAY HOLDINGS BHD
Research House: ECMLIBRA



The earnings estimate of Sunway Holdings Bhd has been revised upward by 1.1 per cent for the financial year 2012, taking into account the contributions to be generated by the Tampines development, says ECM Libra Investment Research.

Last week, Sunway Holdings in filing with Bursa Malaysia said the Housing and Development Board of Singapore had awarded the tender for a parcel of land in Tampines Avenue 8 on a 99-year lease term at S$187.59 million or about RM450 million.

The tender was jointly submitted by Hoi Hup Realty Pte Lt, SC Wong Holdings Pte Ltd and Sunway Developments Pte Ltd, a wholly-owned subsidiary of the group.

"We are positive about the project as the group has significant experience in the Singaporean property market, having launched three projects since 2008.

"Another private housing development located in Yishun is slated for launch in the second half of next year," ECM Libra said in a research note today.

The research firm said the group's Singaporean projects have thus far registered strong sales.

ECM Libra said Sunway remains its top "buy" for the construction sector.

This is premised on a strong earnings growth of 86.5 per cent in this financial year, more landbank acquisitions in the pipeline and strength in securing overseas construction contracts, the research firm said. -- Bernama

ANNJOO - AmResearch cuts Ann Joo's fair value

Stock Name: ANNJOO
Company Name: ANN JOO RESOURCES BHD
Research House: AMMB



AmResearch Sdn Bhd is projecting Ann Joo Resources Bhd's net profit for the financial year 2011 to expand by 59 per cent year-on-year to RM244 million.

This is largely backed by maiden contributions from its new blast furnace amid an imminent steel price upcycle, it said in its research note today.

AmResearch has maintained a "buy" call on Ann Joo with a lower fair value of RM4.02 per share from RM4.20 previously.

Ann Joo recorded a nine months financial year 2010 net profit of RM123 million against RM9 million a year earlier.

"While we expect a better performance in the fourth quarter financial year 2010, we have clipped the financial year 2010 net profit forecast by 13 per cent to RM154 million to account for some slight hiccups in the roll-out of its new blast furnace.

"But, hot commissioning works, are still on track to kick off by end of this year. More than 90 per cent of the plants' equipment/structures have been installed," AmResearch said.

Ann Joo is seeing an imminent upswing in steel prices in the fourth quarter financial year 2010 given low global inventories. It also revealed that export enquiries have resumed since two weeks ago.

With its steel-making unit running at full capacity, AmResearch said Ann Joo is also well positioned to benefit from a revitalisation of domestic steel demand in fourth quarter financial year 2010. -- Bernama

ANNJOO - OSK Research ups Ann Joo TP to RM2.76

Stock Name: ANNJOO
Company Name: ANN JOO RESOURCES BHD
Research House: OSK

KUALA LUMPUR: OSK Research said Ann Joo's 3Q net profit plummeted to RM10.4 million but this was well within its estimates.

In its research note issued on Monday, Nov 29, it said the poor numbers were attributed to lower steel prices and demand, which were further worsened by escalating material costs.

'While we see an improvement in 4Q, we think the recovery may be limited. Compounded by another delay in commissioning its blast furnace and the lack of major earnings surprises, the stock's expensive valuation versus its peers warrant no change in our NEUTRAL recommendation, with its target price revised up slightly to RM2.76 on rolling over its valuation to FY11,' it said.

OSK Research pervious target price was RM2.64 while the last traded price was RM2.86.

TM - OSK Research keeps Telekom target price unch at RM3.28

Stock Name: TM
Company Name: TELEKOM MALAYSIA BHD
Research House: OSK

KUALA LUMPUR: OSK Research said Telekom Malaysia's annualised 9MFY10 core earnings were in line with its but below consensus estimates.

The research house on Monday, Nov 29 there were no surprises in that its fixed line (DEL) business continued to languish with the internet and data segments providing the silver lining.

'We make no change to our forecast noting that Unifi will be dilutive to earnings over the medium term. TM is expensive on PER terms and lacks share price catalysts," it said.

OSK Research said however TM's decent dividend yield of 7.8% should mitigate any share price downside. Our TP is unchanged at RM3.28.

'We prefer DiGi for dividend exposure,' it said.

SIME - AmResearch maintains Buy on Sime Darby, FV RM9.90

Stock Name: SIME
Company Name: SIME DARBY BHD
Research House: AMMB

KUALA LUMPUR: AmResearch reiterates its BUY call on SIME DARBY BHD [] but lowered its earnings expectations.

The research house said on Monday, Nov 29 it had reduced its fair value from RM10.45 a share to RM9.90 a share, pegged to an unchanged 10% discount to its sum-of-parts value of RM10.98 a share.

'Our fair value implies a CY11F PE of 17 times'' - at parity to its three-year average. The group's 1QFY11 net profit of RM655 million (-4% YoY) came in below expectations, accounting for 19% of our earlier FY11F earnings of RM3.4billion and 21% of street estimate's RM3.1 billion,' it said.

AmResearch said this largely stemmed from the lower-than-expected earnings rebound from higher crude palm oil prices. The stock currently trades at an attractive CY11F PE of 15 times, below its three-year average of 17 times.

SIME - Sime upgraded to 'buy' at HwangDBS

Stock Name: SIME
Company Name: SIME DARBY BHD
Research House: HWANGDBS



Sime Darby Bhd, the world's biggest publicly traded palm oil producer, was upgraded to "buy" from "hold" at HwangDBS Vickers Research Sdn Bhd, after recovery in most of the group's businesses exceeded expectations.

"We believe Sime deserves a second look as current earnings growth momentum still has legs," HwangDBS said in a report today.

The share price estimate was raised to RM10.20 from RM9.00. - Bloomberg

TRC, Bina Puri win rail extension jobs

Trans Resources Corp, a unit of TRC Synergy Bhd., won a RM950 million (US$300 million) contract to build the Kelana Jaya railway extension in Malaysia, Syarikat Prasarana Negara Bhd said in a statement on its website.

Bina Puri Holdings Bhd's joint venture won a RM634.7 million contract to build a 17.7 kilometer light-rail extension on the Ampang line, the nation's public transport operator said.

TRC Synergy rose to a 13-month high and Bina Puri Holdings Bhd climbed in Kuala Lumpur trading after the two Malaysian builders won railway extension contracts.

TRC gained 3.5 per cent to RM1.47 at 9:04 a.m. local time, set for its highest close since Oct. 20, 2009. Bina Puri climbed 5.4 per cent to RM1.37t, headed for its steepest gain since Sept. 17. -- Bloomberg

Alam Maritim down on Q3 earnings drop

Alam Maritim Resources Bhd, a Malaysian oil and gas services group, fell to a one-month low in Kuala Lumpur trading after announcing a drop in third-quarter earnings.

Its shares dropped 2.7 per cent to RM1.09 at 9:08 a.m. local time, set for their lowest close since Oct. 22. -- Bloomberg

KFC targets 38 new outlets by year-end

KFC Holdings (M) Bhd, which recorded an income of more than RM1.83 billion in the first nine months of this year, hopes to open 38 KFC restaurants at an investment of RM45 million in Malaysia by year-end.

Its chairman Tan Sri Muhammad Ali Hashim said since January, 34 KFC restaurants had been built.

He also said that for next year, the company has targeted to open 25 restaurants throughout the country at an investment of about RM60 million and of this number, 15 will have the drive-in facility.

'The comfort of customers is important. From the feedback received, the drive-in counters are well received as it makes it easy for customers,' he told reporters after officiating the Carnival Chiky KFC 2010 at the Melaka
International Trade Centre (MITC) today.

Muhammad Ali also said KFC Holdings spent about RM3 million to build a KFC drive-in restaurant compared to RM1 million for a normal one.

He said the company at present had 511 restaurants throughout the country and more than 69 in Singapure, Brunei and India with more than 18,000 workers.

'Apart from operating the KFC restaurants, the company is involved in retail activities through the supply network of chicken-based products under the Ayamas brand, the Ayamas Shop and Restaurant RasaMas.

'We are also involved in the breeding, processing and hatching of chicken eggs, apart from additional business such as a bakery and sauce production,' he explained.

On the Carnival Chiky KFC, he explained that, it is a way for the company to get closer to the community and contribute to community development in the country.

He also highlighted that the event may be extended to Sabah and Sarawak.

At the event today, Muhammad Ali presented contributions totalling RM21,000 to five welfare homes from all over the country.-- Bernama

MISC ramps up Indian operations

MISC Berhad is gearing to refocus its liner business in Asia next year, with India as its priority, largely spurred by significant growth of the sector.

By increasing more ports of call in India and the South Asia region, MISC is looking to position itself as the preferred carrier in the intra-Asia and Oceania region.

'We are expanding in key strategic markets and will focus more on intra-Asian trade, India and China.

'Freight is growing in this region. We will be looking more to the Indian sub-continent as well,' Baharuddin Arbak, MISC vice-president (Liner Business) said in Delhi.

Earlier this year, MISC signed a joint venture agreement with Crescent Shipping Agency India Ltd, its third party agent, to form MISC Agencies India Pvt Ltd, to spearhead its Indian operations.

In October, MISC added another milestone when the carrier connected the two major growing economies -- China and India -- with its Halal Express Service 2.

Its first vessel arrived in Chennai Port in late October.

'This service offers the fastest transit to China from the east coast of India, in nine days to Shanghai, as against the other lines offering 13 days.

'This revised halal service loops two promises to be a mega success,' said Capt. B. Mahapatra, general manager of MISC Agencies India.

On Friday MISC India opened its new office in Delhi, the second after its Mumbai headquarters.

Besides India, the Malaysia-based carroer, plans to intensify its existing services in Bangladesh, Pakistan and Sri Lanka next year.--Bernama

Kim Eng to buy 70pc of Interpac Sec

Kim Eng Holdings Ltd said it has agreed to buy 70 per cent of Interpac Securities Group, a stockbroking unit of Malaysia's Berjaya Corp.

The business is valued at RM142 million, Kim Eng said in a statement to the Singapore stock exchange late yesterday. It did not say how much it is paying for the Interpac stake. -- Bloomberg

OSK 9-month pre-tax jumps to RM139.5m

OSK Holdings Bhd's pre-tax profit for the third quarter ended Sept 30, 2010 slipped to RM57.49 million from RM60.5 million during the same quarter previously.

Its turnover, however, rose to RM255.35 million from RM227.66 million.

As for the cumulative nine months, its pre-tax profit jumped to RM139.582 million from RM131.8 million previously, on the back of a higher turnover of RM710.2 million as compared with RM582.28 million previously.

On outlook, OSK said in a filing to Bursa that the board is optimistic that the regional market will continue to sustain its recovery path.

'While domestic demand is expected to be the main impetus for growth, the appropriate management of short-term capital flows has become an increasingly crucial development for the regional economy,' it said.

Hence, the board expects the group to perform well for the rest of 2010. -- Bernama

BIMB makes RM474m in pre-tax profit

BIMB Holdings Bhd recorded a RM96.072 million pre-tax profit and RM451.350 million revenue for the three months ended Sept 30, 2010.

In a filing to Bursa Malaysia today, the group said for the 15-month period ended Sept 30, 2010, the company registered RM473.727 million in pre-tax profit.

Bank Islam and Syarikat Takaful Malaysia Bhd (STMB) achieved a pre-tax profit of RM400.2 million and RM78.8 million respectively.

The group also recorded RM2.074 billion in revenue.

Building on its performance as the winner of the Top SMI Supporter Award 2009, Bank Islam will focus its effort on financing viable small medium enterprises across the economic sector and also continued its corporate financing activities.

Bank Islam will also continue to diversify its revenue stream by increasing fee-based activities.

The Islamic bank also plans to increase its branches to 115 and its pawn-broking outlets to five by the end of this year.

Meanwhile, STMB Bhd is gearing for growth in the current financial year with the introduction of new products and a new retail distribution network. -- Bernama

Muhibbah sees profit rise to RM21m in Q3

Muhibbah Engineering (M) Bhd posted a higher pre-tax profit of RM21.3 million for its third quarter ended Sept 30,2010 compared to RM5 million in the previous corresponding quarter.

Despite an increase in profit, revenue fell to RM289.13 million from the RM610.94 million recorded previously.

In a filing to Bursa Malaysia today, the group said its shipyard and cranes division continues to be the main earnings contributor to the group.

It currently has a total outstanding secured order book of RM2.78 billion which can last until 2013.

For its nine-month period ended Sept 30, 2010, it achieved a lower pre-tax profit of RM49.57 million, compared to RM53.01 million recorded previously.

Revenue declined to RM1.162 billion from RM1.572 billion previously.

The group expects to achieve a satisfactory performance for its current fiscal year on the back of an improving sentiment in the global oil and gas industries.-- Bernama

Leader pre-tax profit dips in Q3

Leader Universal Holdings Bhd achieved a marginally lower pre-tax profit of RM19.31 million for its third quarter ended Sept 30, 2010 compared to the RM20.16 million recorded in the previous corresponding quarter.

Revenue climbed to RM645 million from RM509.77 million recorded previously.

In a filing to Bursa Malaysia today, the company said its decline in profit was due to a lower share of profit from its associated companies, while the increase in revenue is attributed to an increase in sales quantity and surge in metal prices.

For its nine-month period ended Sept 30, its pre-tax profit declined to RM59.68 million from RM62.2 million recorded in the previous corresponding period.

However, revenue rose to RM1.86 billion from RM1.42 billion recorded previously.-- Bernama

Ann Joo records lower Q3 profit of RM13.5m

Ann Joo Resources Bhd posted a lower pre-tax profit of RM13.52 million for its third quarter ended Sept 30, 2010, a 37 per cent decrease from RM48.86 million in the previous corresponding quarter.

Revenue declined to RM333.93 million from RM382.18 million previously.

In a filing to Bursa Malaysia today, it said the decline is attributable to the higher cost of sales arising from higher raw material costs despite a continuous improvement in operational efficiency.

However, for its nine-month period ended Sept 30, the company's cumulative pre-tax profit shot up to RM137.41 million from the RM10.4 million recorded in the previous corresponding period.

Revenue rose to RM1.4 billion from RM1.02 billion previously.

The company said its performance will remain satisfactory for the rest of the fiscal year, and is confident of achieving a better 2011 performance, riding on an improved outlook in both the domestic and international markets. -- Bernama

Sime Darby back to profitability in Q1

Malaysian plantations-to-property company Sime Darby swung back to the black after two consecutive quarters of losses and posted a 4.4 per cent fall in first-quarter profit.

Sime, the world's top palm oil producer by land ownership, earned RM654.7 million (US$209 million) during the quarter, compared with RM684.6 million a year ago.

The company was plagued by write-downs and loss provisions in its last fiscal year, leading to the company's first ever quarterly net loss.

Sime subsequently shook up its senior management, placing its then chief executive Ahmad Zubir on leave and appointing Datuk Mohd Bakke Salleh as acting CEO.

Sime also said it targets to earn RM2.5 billion in profit after tax and minority interests for FY 2011 and achieve 11.5 per cent return on average shareholders' funds. - Reuters

Telekom Malaysia 3Q net profit up 140% to RM446m

KUALA LUMPUR: TELEKOM MALAYSIA BHD [] reported a 140% surge in its third quarter earnings to RM446.6 million from RM185.7 million due to higher operating revenue, disposal of investments and higher unrealised exchange gain.

It said on Friday, Nov 26 revenue rose 4.4% to RM2.19 billion from RM2.10 billion. Earnings per share were 12.3 sen compared with 5.1 sen.

Group profit after tax and minority interests increased by 144.8% to RM438.5 million as compared to RM179.1 million in the corresponding quarter in 2009.

"This was mainly attributed to higher operating revenue, gain on disposal of investments and higher unrealised exchange gain on translation of foreign currency borrowings," it said.

TM said operating profit before finance cost of RM396.5 million increased by 86.8% compared to RM212.3 million recorded in the same quarter last year primarily due to higher operating revenue and higher gain on disposal of investments in Measat.

The higher group revenue at RM2.19 billion was mainly due to higher revenue from data and other telecommunications related services, which mitigated the impact of lower revenue from voice and non-telecommunications services.

Data revenue increased by 24.6% in third quarter to RM440.9 million compared to RM353.9 million in the same quarter 2009 arising from demand for higher bandwidth services.

Other telecommunications related services revenue increased by 34.2% in third quarter to RM320.7 million compared to RM238.9 million in the third quarter last year mainly due to higher revenue from customers' projects such as MERS 999 and income from high speed broadband grant.

Internet and multimedia registered higher revenue by 1.4% to RM411.1 million in the current quarter arising from increased in broadband customers to 1.60 million in the current quarter from 1.40 million a year ago.

Petronas Chemicals, largest IPO in Southeast Asia, bullish on outlook

KUALA LUMPUR: Petronas Chemicals Group Bhd, the biggest initial public offering (IPO) in Southeast Asia, sees more upside for the prices of petrochemicals which would benefit the low-cost producer.

Petronas Chemicals chairman Datuk Wan Zulkiflee Wan Ariffin said the coming calendar year would see the upcycle in petrochemical prices.

"We are very bullish about the outlook going forward. As for Petronas Chemicals, we are a low cost producer and we have got very integrated operations with diversified products," he said at a press conference on Friday, Nov 26 after its listing on Bursa Malaysia.

The integrated petrochemicals producer made its debut at RM5.71 which is about a 10% or 51 sen above its institutional offering price of RM5.20. Its retail price was RM5.04. The IPO of RM41.6 billion is the largest in Malaysia and Southeast Asia based on the institutional price.

Petronas Chemicals president and chief executive officer Datuk Tengku Mahamad Tengku Mahamut said that the debut price was "excellent" and that he was very satisfied with the price.

He said its listing exercise received significant interest from Malaysian retail and global institutional investors. It was expected to raise about RM12.8 billion, making it the largest ever IPO and equity offering to be completed in Malaysia.

The retail offering attracted applications with a value of RM3.7 billion for 729 million shares, representing a subscription rate of 2.5 times. This was the highest amount ever applied for under a retail offering in Malaysia thus far.

"The institutional offering (excluding the offering to cornerstone and bumiputera investors approved by MITI) attracted orders amounting to a staggering RM92.6 billion.

"The positive response received for the offering is a clear reflection of the strong foreign and local investor community's trust and confidence in PetChem in particular and in the Malaysian capital market and Bursa Malaysia in general," he said.

Tengku Mahamad said looking ahead; the newly-listed Petronas Chemicals would be well equipped with additional funding, strong management expertise and steady supply of raw materials, integrated production facilities and a skilled workforce to meet the growing local and regional demand for its products.

Petronas Chemicals is the national oil company's integrated petrochemicals producer and is also one of the largest petrochemicals producers in South East Asia which primarily manufactures, markets and sells a range of petrochemical products such as olefins, polymers, fertilisers, methanol and other basic chemicals and derivative products.

Post-listing, Petronas Chemicals will consolidate its petrochemical activities and maximise efficiency as well as strengthening its marketing and sales network. While over the medium to longer term, it plans to expand its product portfolio and production capacity and will also consider potential acquisitions for growth.

PROTON - OSK maintains 'buy' call for Proton

Stock Name: PROTON
Company Name: PROTON HOLDINGS BHD
Research House: OSK



OSK Research maintains "buy" recommendation for Proton Holdings as the results were in line with its estimates.

"Proton continued to display another commendable set of results for its third quarter financial year 2011, fuelled by resilient domestic vehicle sales, which is anticipated to progress into the next year.

This is following the recent launch of the Proton Inspira and Persona, OSK said in a research note today.

"With the results being in line with our consensus estimates, we make no changes in our target price of RM6.18 and retain our Buy," said the research house.

As the margins appear healthy, it continues to see profits being sustained at this level, taking the cue from the higher revenue Proton could potentially fetch from the recently launched Inspira given its low capital expenditure costs. -- Bernama

PUNCAK - OSK Research maintains Buy on Puncak, TP RM3.85

Stock Name: PUNCAK
Company Name: PUNCAK NIAGA HOLDINGS BHD
Research House: OSK

KUALA LUMPUR: OSK Research said Puncak Niaga's earnings came within its and consensus expectations.

The research house said on Friday, Nov 26 that in view of low water consumption growth c.3% in the Selangor state, revenue for Puncak came flat on a quarter-on-quarter basis.

'We note that as part of its 2010 YTD revenues, Puncak booked in RM309.6 million being a sum payable by the Selangor State Government in respect to a delay in the water tariff rate hike by 37% initially scheduled to be implemented in January 2009,' it said.

GENM - OSK Research maintains Neutral on Genting Malaysia, higher TP RM3.24

Stock Name: GENM
Company Name: GENTING MALAYSIA BERHAD
Research House: OSK

KUALA LUMPUR: OSK Research said Genting Malaysia Bhd reported 9MFY10 earnings that were largely in line with its full-year estimates.

'We are maintaining our NEUTRAL recommendation but confer a higher TP of RM3.24 as we roll forward our valuations to FY11, although pegging the same 8x EV/EBITDA to its domestic casino business,' it said on Friday, Nov 26.

OSK Research said its fair value imputed a 10% discount on RNAV. The group's relatively attractive valuations of 6x EV/EBITDA vs the regional average of 10x will help to anchor its share price.

'Nonetheless, we continue to prefer its parent company, GENTING BHD [], as a proxy to Genting Singapore's more compelling growth story,' it said.

HDBSVR: FBM KLCI to test 1,500

KUALA LUMPUR: Hwang DBS Vickers Research said the FBM KLCI, after taking the first step of recovery – by overcoming the resistance hurdle of 1,495 – it may follow up with the next step to cross the psychological barrier of 1,500 ahead.

In its outlook report for Friday, Nov 26, it expected a busy day on Bursa Malaysia. Counters that could attract a lot of action would include:

(a) Petronas Chemicals Group, an integrated petrochemical manufacturer with a market capitalization of RM41.6b based on an institutional offer price of RM5.20, which is making its debut listing;

(b) Kulim, which has received a new offer to buy over its entire stake in QSR at an indicative price of RM6.70 per QSR share. QSR, in turn, is the parent company of KFC Holdings;

(c) CONSTRUCTION [] companies like Bina Puri and TRC after a media report said they are in the running to bag LRT extension jobs which would be awarded soon; and

(d) AirAsia and Genting Malaysia following the release of their buoyant set of financial results Thursday evening.

MSPORTS - Multi Sports Holdings sees normalised sales from new capacity

Stock Name: MSPORTS
Company Name: MULTI SPORTS HOLDINGS LTD
Research House: OSK

Multi Sports Holdings Bhd
(Nov 24, 51 sen)
Maintain buy at 49.5 sen with lower target price of 87 sen (from 93 sen): While Multi Sports reported strong 9MFY10 revenue and core net profit ' revenue increased by 40.7% year-on-year (y-o-y) to RM203.4 million and 30% y-o-y to RM49.2 million ' its annualised full-year earnings of RM65.6 million, came in below our full-year estimate of RM75.7 million as we overestimated the production volume from new capacity on an annualised basis.

Compared with the strong sales growth of 57.5% (net profit +49.5%) y-o-y in 2QFY10, the group recorded a slower 17% top line y-o-y growth (net profit +3.2% y-o-y) in 3QFY10 as the group has added in extra capacity in 3QFY09, hence the 17% y-o-y growth in the current quarter is a normalised growth.

Multi Sports added five production lines for EVA MD in 3QFY09. Production volume continued to increase by 34% to 23.4 million in 9MFY10 (3QFY10: +14%) while the average selling price improved by 4.4% to RM18.9 (3QFY10: +2.2% y-o-y), mainly driven by the higher demand for EVA MD products.

9MFY10 earnings before interest and tax (Ebit) margin was lower at 28.3% against 33.7% in the previous year due to higher labour costs as the group revised wages upwards, administrative expenses and foreign exchange loss on fundraising from rights share issue which are recognised in the current quarter. The slower core earnings growth compared with top line growth was further explained by the higher interest expense incurred during this quarter on additional short-term loan drawdown.

We trim our FY10 and FY11 earnings forecast by 6.8% to 15% to factor in the lower production volume from new capacity on an annualised basis. We forecast the group will register flat profit in the next quarter due to capacity constraints. We are also expecting Multi Sports to register flat net profit in FY11 given the higher depreciation expense incurred for the new plant and higher effective tax rate of 25% against 12.5% currently. Our target price is reduced to 87 sen, based on 5.5 times FY11 EPS instead of FY10. The construction of its new plant on Xibin Land was completed in November and the group is targeting to move in completely by next month. ' OSK Investment Research, Nov 24


This article appeared in The Edge Financial Daily, November 25, 2010.

IJMPLNT - IJM Plantations 2QFY11 a super prime year

Stock Name: IJMPLNT
Company Name: IJM PLANTATIONS BHD
Research House: ECMLIBRA

IJM Plantations Bhd
(Nov 24, RM2.92)
Maintain buy at RM2.89 with revised target price of RM3.99 (from RM3.65): IJM Plantations (IJMP) reported strong 1HFY11 results, which made up 9% of our full-year estimates and 61% of consensus estimates. The group recorded its strongest quarter in 2QFY11 since 1QFY09 which recorded RM44 million in profits on crude palm oil (CPO) average selling price (ASP) of RM3,306 per tonne. Earnings have beaten our estimates because of stronger yields rather than higher than expected CPO ASP. Net profit in 2QFY11 was up 73% quarter-on-quarter (q-o-q) and 173% year-on-year (y-o-y). Its 1HFY11 results beat 1HFY10 numbers by 196%. For the quarter, the group achieved a CPO ASP of RM2,592 per tonne compared to the MPOB average of RM2,639 per tonne. Year-to-date, 1HFY11 CPO ASP now stands at RM2,540 per tonne compared with RM2,207 per tonne in 1HFY10.

This year, IJMP's estates are at an average age of 12 years, which is typically the peak production period of an oil palm tree life. As such, the group has bucked the industry trend and reported 26.5% improvement in fresh fruit bunches (FFB) production on a q-o-q basis and 15.8% on a y-o-y basis. We were initially of the view that the group would be impacted by lower yields in Sabah, similar to the rest of the industry, due to unfavourable weather conditions this year. However, good estate management coupled with a prime age profile has given a surge to IJMP's earnings. We view that its yields this year could'' clock in at 26 to 28 tonnes per hectare, above our estimates of 25 tonnes per ha. As such, we are revising our estimates up to reflect the stronger yields. We raise our FFB yield expectations for FY11 to 27 per tonne per ha (EPS +9.1%). We also raise FY12 yields to 26 tonnes per ha from 25 tonnes per ha (EPS +4.1%) and similarly for FY13 (EPS +4.2%).

We continue to rate IJMP a "buy". Our target price of RM3.65, following the earnings upgrade, is raised to RM3.99. This represents FY11 EPS pegging a PER of 24.3 times. We have derived this PER target based on +1 time standard deviation above IJMP's historical average one-year rolling forward PER. This methodology is supported by past observation ' when CPO prices breached RM3,000 per tonne level in 2008, IJMP managed to trade close to its +1 time standard deviation PER of 24.3 times. In comparison, the stock is currently trading at a forward PER of 17.6 times based on FY11 EPS. As such, we view there is room for more upside, given current fundamentals supporting strong CPO prices. ' ECM Libra Investment Research, Nov 24


This article appeared in The Edge Financial Daily, November 25, 2010.

NOTION - Fortunes change, risk abates at Notion

Stock Name: NOTION
Company Name: NOTION VTEC BHD
Research House: MAYBANK

Notion Vtec Bhd
(Nov 24, RM1.64)
Upgrade to buy from sell at RM1.63 with target price of RM1.95: Results in 4Q were better than expected, with net profit rising 2.8-fold quarter-on-quarter (q-o-q) and earnings before interest, tax, depreciation and amortisation (Ebitda) margin expanding by 10.2 percentage points q-o-q. We upgrade Notion to a 'buy' (non-consensus) with an unchanged RM1.95 target price. On balance, we believe the negatives have been priced in after a 37% fall in share price following the disastrous 3Q results. Valuations are inexpensive, with a four to six times FY11/12 PER and improving business outlook.

4QFY10 net profit of RM8 million (+183% q-o-q; -37% y-o-y) took FY10 earnings to RM37 million (+4% y-o-y), ahead of our expectations but in line with consensus. This better performance was due to: (i) production turnaround (lower R&D costs, improved material yields, low incidence of rework and quality issue of its 2.5' base plate resolved); and (ii) improved product mix. The camera segment led sales in 4Q, followed by hard disk drive (HDD) and auto with a 48:35:17 mix (3Q: 38:46:16).

We are keeping our earnings unchanged, which implies a two-year net profit compounded average growth rate (CAGR) of 27%. We expect the camera segment to drive growth in FY11/12, fuelled by Nikon's increased orders. HDD will take a back seat. Capacity ramp-up will be moderate until issues pertaining to Samsung's 2.5' base plate production are fully resolved. With improving operations, it seems unlikely that Notion will drop the Samsung project now. Notion expects camera: HDD: auto segments to contribute a 54:32:14 sales mix in FY11.

Our RM1.95 target price is based on four times FY11 EV/Ebitda, which implies six times PER, reflecting regional (ex- Japan) HDD component makers valuations. Our upgraded 'buy' call is non-consensus ' we believe the management can sustain this turnaround, and demand for its products is at an early stage of business recovery. Notion declared an interim dividend per share of 4.5 sen in 4Q (-10% y-o-y; goes ex on Dec 29). ' Maybank IB Research, Nov 24


This article appeared in The Edge Financial Daily, November 25, 2010.

MAYBULK - Maybulk outperforms in 3QFY10

Stock Name: MAYBULK
Company Name: MALAYSIAN BULK CARRIERS BHD
Research House: AMMB

Malaysian Bulk Carriers Bhd
(Nov 24, RM2.91)
Maintain buy at RM2.87 with higher fair value of RM3.70: We reiterate our 'buy' rating on Malaysian Bulk Carriers Bhd (Maybulk), with a higher fair value of RM3.70 following an upward revision to our earnings projection. Our valuation continues to peg Maybulk at 14 times FY11F earnings, on par with peers' average.

Maybulk reported a core net profit of RM75 million for its 3QFY10, which brought 9MFY10 earnings to RM170 million. This came in well ahead of our expectation as well as consensus.

While rates were lower (down 8% to 20% quarter-on-quarter), the positive surprise was that margins expanded significantly ' particularly considering that the weaker US dollar is a net negative given that revenue is recognised in the greenback. This was partly driven by better fleet utilisation and lower operating cost (-5% q-o-q).

Utilisation rate increased tremendously, driven by more hire days (+34% q-o-q). Given the high operating leverage nature of shipping operators, this translated into much better gross margins (+8.9 percentage points q-o-q).

Additionally, fuel cost was 4% lower q-o-q, reflected in the average bunker cost of US$462 (RM1,451) per tonne in 2QFY10 to US$444 per tonne in 3QFY10.

We have revised upwards our projections by 20% to 25% over FY10F/12F to reflect more hire days (+10%) and lower than expected bunker fuel cost. Year-to-date, bunker fuel averaged at US$461 per tonne, 4% lower than our earlier estimate of US$480 per tonne. Implied core net margin for our FY10 projection rises from 46% to 55%.

According to Clarksons Research Services, the global dry bulk fleet growth rate will peak in 2010 at +16% to 534 million dead-weight tonnes (dwt), and should start to see a slowdown in 2011, with just a 12% growth. This should provide some positives for the sector as we head into FY11F.

Valuation-wise, Maybulk is trading at a 20% discount to peers' average of 14 times FY11F earnings. We expect catalysts to materialise in the form of: (i) Maybulk's capacity buildup via acquisitions; (ii) improving industry core fundamentals from gradually slowing global fleet growth; and (iii) seasonally stronger 4Q as the winter season drives coal demand. ' AmResearch, Nov 24


This article appeared in The Edge Financial Daily, November 25, 2010.

'Naim's construction unit to improve'

Naim Holdings Bhd's construction division is set to improve in the coming quarters as it begins to enjoy recognitions from a few newly secured projects, says AmResearch.

This would include the RM165 million Bengoh Dam resettlement and RM2.4 billion Sabah oil and gas terminal project, it said in a note today.

It said Naim's results for the first nine months were above expectations -- third quarter earnings surged 52 per cent year-on-year to RM37 million, bringing profits for the nine-month period to RM75 million (26 per cent increase year-on-year).

'This constitutes 84-87 per cent of both consensus and our full year estimates, respectively,' it said.

AmResarch said the positive deviation mainly came from Naim's property operations.

'While property billings only rose seven per cent in the nine-month period, the division''s earnings jumped 90 per cent year-on-year to RM57 million. This resulted from a significant expansion in property margins to 44 per cent from 25 per cent a year earlier.'

Associate profits from oil and gas unit Dayang Holdings Bhd also showed a marked improvement -- growing from RM5 million in the second quarter to RM13 million in the third quarter.

On the other hand, the performance of its construction division remained somewhat choppy in the near-term. Construction earnings fell 33 per cent year-on-year to RM11 million despite a strong 84 per cent quarter-on-quarter increase in billings.

Construction margins in the third quarter dropped to 6.3 per cent from 17.3 per cent in the second quarter, partly mitigated by the recognition of variation orders and cost savings from certain projects.

'We maintain our earnings forecast and fair value of RM5.09 per share for now pending further updates from management -- with an upward bias.

'We continue to like Naim for exposure to a re-acceleration of infrastructure spending ahead of the Sarawak state elections (due in July 2011' -- with value added oil and gas kickers coming from Dayang,' the research house said. -- Bernama

'Petronas Chem share worth RM6.64-RM6.70'

Maybank IB Research believes the share prices for Petronas Chemicals Group Bhd (PCG), worth between RM6.64 and RM6.70 per share, using discounted cash flow and price earning ratio (PER) valuation metrics.

PCG enroute for listing tomorrow is Southeast Asia''s biggest initial public offering (IPO), set to outshine that of other big-capitalised firms on Bursa Malaysia Securities.

The company's retail IPO price of RM5.04 is very attractive with deep discounts compared with global peers: one year forward PER and enterprise value/earnings before interest, taxes, depreciation, and amortisation is 24 per cent and 53 per cent lower.

The research house said the listing was a new big show and a golden opportunity not to be missed.

It said the petrochemical industry is in the recovery stage of a cyclical uptrend; 2009 was the last trough, the next boom would be in three to five years.

'Product volume growth to GDP correlation is 1.0 to 2.0 times, positive for PCG as its customers are in the high growth Asia-Pacific region,' it said.

Maybank IB Research also said in the next upcoming cyclical peak, within the next five years, PCG is likely to surpass its previous net income record of RM3.9 billion achieved in financial year 2008. - Bernama

MAS swings back to profitability in Q3

Malaysia Airlines says that it has swung back to profitability for the third quarter ending 30 September 2010, posting a net profit of RM233 million, on the back of a 15 per cent increase in revenue.

The national carrier reported a RM123 million operating profit, rebounding from an operating loss of RM77 million in 3Q09.

The airline said it recorded its highest seat factor in 15 years at 78.6 per cent in 3Q10 with 3.3 million passengers compared to 76.7 per cent in 3Q09.

It says balance sheet remains healthy with cash and negotiable deposits of some RM2.26 billion as at 30 September 2010.

Managing Director Tengku Azmil Zahruddin says that moving forward to 2011, the airline is positioning itself for profitable growth by taking delivery of new aircraft, identifying new growth areas and maximising revenues through aggressive sales and marketing.

Says it took delivery of two new B737-800 aircraft earlier this month and will have one more aircraft by end 2010. Funding for all incoming aircraft in 2011 has also been lined up.

'We are in a challenging and unpredictable industry and have to be mindful of the many things - economic fluctuations, rising fuel prices, even volcanic eruptions - that can quickly have an impact on our business,' Azmil said. - Reuters

Results: Proton 6-month profit at RM186m

Proton Holdings Bhd pre-tax profit for the six months ended September 30, 2010 increased to RM186 million from RM165 million in same period OF 2009.

Goodway Integrated Industries Bhd, an integrated rubber compounder and tyre retreading services provider, posted a pre-tax profit of RM2.195 million for the third quarter ended September 30, 2010 from RM1.720 million in the same quarter last year.

Hock Seng Lee Bhd posted a higher pre-tax profit of RM27.28 million for its third quarter ended September 30, a 32 per cent increase from the RM20.67 million previously.

Puncak Niaga Holdings Bhd third quarter pre-tax profit ended September 30, 2010, dropped to RM85.4 million from RM98.3 million in the same quarter a year ago.

Taliworks Corporation Bhd recorded a higher pre-tax profit of RM25.2 million for its third quarter ended September 30, 2010 compared with RM14.13 million achieved in the previous corresponding quarter.

DKSH Holdings (Malaysia) Bhd recorded a higher pre-tax profit of RM14.695 million for the third quarter ended September 30, 2010 compared with RM9.698 million in the same period last year.

Bintulu Port Holdings Bhd posted a higher pre-tax profit of RM48.65 million for its third quarter ended September 30, 2010 compared with RM33.34 million in the previous corresponding quarter.

DRB-Hicom Bhd has chalked up an impressive pre-tax profit of RM186.2 million for the second-quarter ended September 30, 2010, up 142.8 per cent, compared with RM76.7 million, posted in the same quarter last year.

Syarikat Takaful Malaysia Bhd recorded a pre-tax profit of RM11.933 million for the three-month period ended Sept 30, 2010

Time dotCom Bhd pre-tax profit rose 75 per cent to RM20.9 million for the third-quarter ended September 30, 2010 from RM11.9 million recorded in the corresponding quarter last year.- Bernama

Carlyle made RM1.9b takeover bid for KFC

Carlyle Group made a RM1.9 billion (US$620 million) takeover offer for Southeast Asian fast-food chain operator QSR Brands Bhd, topping an earlier bid led by Malaysian businessman Halim Saad.

Carlyle, a Washington-based private equity firm, offered to pay RM6.70 per share for all of QSR, 19.4 per cent more than the last closing price, according to a statement to the Kuala Lumpur stock exchange today by Kulim (Malaysia) Bhd, QSR's parent.

That's higher than an indicative bid of RM5.60 per share made on November 22 by Idaman Saga Sdn, part-owned by former Renong Bhd chairman Halim.

A QSR takeover would give the new owner control of KFC Holdings (Malaysia) Bhd, the Southeast Asian nation's biggest fast-food operator with more than 540 outlets in Malaysia, Singapore and Brunei. Listed in April 2004, QSR also owns the Pizza Hut chain of restaurants in Malaysia and Singapore.

'With this new bid, it's more juicy and palatable for Kulim to accept the offer,' said Pankaj Kumar, who oversees US$560 million as chief investment officer of Kurnia Insurans Malaysia Bhd near Kuala Lumpur. 'QSR has the KFC and Pizza Hut franchises which are jewels and cash cows.'

Kulim owns 55.2 per cent of QSR's shares, which in turn holds 50.6 per cent of KFC, according to data compiled by Bloomberg. Kulim, QSR and KFC shares were suspended for this announcement. -- Bloomberg

YTL Corp 1Q earnings up 34.4% to RM278.9m

KUALA LUMPUR: 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.

It said on Thursday, Nov 25 that revenue rose 12% to RM4.4 billion from RM3.93 billion a year ago. Profit before taxation increased by 24.0% to RM623.8 million from RM503.2 million.

YTL POWER INTERNATIONAL BHD [] saw its earnings rise by 18.1% to RM272.9 million from RM231.1 million. Its revenue reported an 8.8% increase to RM3.48 billion mainly due to the better performance of its merchant multi-utility businesses. It declared a 7.5% interim single tier dividend.

YTL CEMENT BHD [] earnings rose 4.8% to RM72.6 million from RM69.3 million. Revenue rose 3.4% to RM463.0 million from RM447.6 million.  It declared a 7.5% single tier first interim dividend.

"The improvements in financial performance were due mainly to consolidation of the Batu Tiga Quarry group of companies that YTL Cement acquired during the 2010 financial year," it said.

However, YTL Land & Development Bhd reported a decline in revenue and profits for the first quarter ended Sept 30. Net profit decline to RM3.2 million from RM7/3 million while revenue fell to RM14 million from RM97.2 million.

"The decline was due to lower revenue and profit recognition from the property development and CONSTRUCTION [] segments," it said.