Malayan Banking Bhd (Maybank) and CIMB Group Holdings Bhd have ceased their separate negotiations with RHB Capital Bhd on a possible merger.
Analysts said the asking price could have been too high which could have led the country's top two banks to pull out of the race together.
Maybank, in a filing to Bursa Malaysia, said the decision was taken in the light of recent developments and following further deliberations.
CIMB Group Chief Executive Datuk Seri Nazir Razak, in a separate statement, said the bank believed that it would not be able arrive at a value creating merger based on its various discussions and assessment of the present expectations of key stakeholders.
'Merger negotiations are both resource consuming and distracting for staff and stakeholders. Therefore, we prefer no to prolong our discussions unnecessarily, allowing all parties to return to business as usual as soon as possible,' he said.
Neither mentioned anything about the price.
Meanwhile, RHB Capital is not seeking alternative merger partners at this time, Director Azlan Zainol said in a telephone interview.
Analysts contacted by Bernama said the twist started when Abu Dhabi Commercial Bank started to sell its 25 per cent stake to Abu Dhabi-based investment fund Aabar Investments at a relatively high price.
The fund paid RM10.80 per share for the stake when the fair value was said to be around RM10.50 per share, and this was said to have complicated the proposed takeover of RHB.
Market watchers are awaiting what Bank Negara would say about this as the deal was called off less than a month after approvals were given for the merger talks.
RHB Capital's merger with either bank could have created what might have been the biggest bank in Southeast Asia, overtaking Singapore's DBS Group.
At the close of trading on Bursa Malaysia, Maybank was down two sen to RM8.82 while CIMB dropped four sen to RM8.51. RHB, in turn, lost 57 sen to RM9.03. -- Bernama, Bloomberg
Thursday, June 23, 2011
Wednesday, June 22, 2011
Samsung aims to sell over 14m Galaxy S 2
KUALA LUMPUR: Samsung Malaysia Electronics Sdn Bhd expects to sell over 14 million of its new Samsung Galaxy S 2 handphones globally by next year, says Lee Jui Siang, Head of Mobile Phone Division, Samsung Malaysia Electronics.
He said the projection was based on Samsung's 26.7 per cent market share in Malaysia which was expected to grow higher next year.
In addition, the flagship Android-powered smart phones have beaten the sale of the best-selling Samsung Galaxy S which sold a record 14 million units globally since its debut last year.
The Samsung Galaxy S 2 features a 1.2GHz dual-core processor, HSPA+connectivity providing data transfer of up to 21Mbps and a Super AMOLED Plus touch-screen display.
Measuring only 8.49mm thin, the new smartphone is a powerful evolution of its predecessor, Samsung Galaxy S, in speed, screen and slim design.
Globally, the Samsung Galaxy S 2 has attracted three million pre-orders since its launch on April, he told a media conference after the launch.
In South Korea, over 100,000 units of Samsung Galaxy S 2 handphones were sold in the first three days after its launch, 200,000 units in eight days and 500,000 in 18 days and over a million units in less than a month, he said.
'We expect a overwhelming demand for the handphone in Malaysia,' he added.- Bernama
He said the projection was based on Samsung's 26.7 per cent market share in Malaysia which was expected to grow higher next year.
In addition, the flagship Android-powered smart phones have beaten the sale of the best-selling Samsung Galaxy S which sold a record 14 million units globally since its debut last year.
The Samsung Galaxy S 2 features a 1.2GHz dual-core processor, HSPA+connectivity providing data transfer of up to 21Mbps and a Super AMOLED Plus touch-screen display.
Measuring only 8.49mm thin, the new smartphone is a powerful evolution of its predecessor, Samsung Galaxy S, in speed, screen and slim design.
Globally, the Samsung Galaxy S 2 has attracted three million pre-orders since its launch on April, he told a media conference after the launch.
In South Korea, over 100,000 units of Samsung Galaxy S 2 handphones were sold in the first three days after its launch, 200,000 units in eight days and 500,000 in 18 days and over a million units in less than a month, he said.
'We expect a overwhelming demand for the handphone in Malaysia,' he added.- Bernama
OSK maintains 'neutral' call on auto sector
OSK Research has maintained its 'neutral' call on the automotive sector.
In a note today, OSK said its forecast of total industry volume (TIV) stood at 597,456, which implied a year-on-year contraction of 1.3 per cent for this year.
'While we expect TIV to have bottomed in May or by June at the latest, it is still early to turn bullish on the sector as the margins could undermine earnings in the second half on low plant utilisation which would lead to further earnings downgrade,' it said.
OSK said while production may catch up speed in the second half, there may be earnings disappointments, notably among carmakers, as margins could be squeezed in the second quarter. -- BERNAMA
In a note today, OSK said its forecast of total industry volume (TIV) stood at 597,456, which implied a year-on-year contraction of 1.3 per cent for this year.
'While we expect TIV to have bottomed in May or by June at the latest, it is still early to turn bullish on the sector as the margins could undermine earnings in the second half on low plant utilisation which would lead to further earnings downgrade,' it said.
OSK said while production may catch up speed in the second half, there may be earnings disappointments, notably among carmakers, as margins could be squeezed in the second quarter. -- BERNAMA
Tuesday, June 21, 2011
Kossan expects to fare better in H2
Kossan Rubber Industries Bhd expects to perform better in the second half of this year despite concerns over rising utility costs and fluctuating rubber prices in the international market.
Its group managing director, Datuk Lim Kuang Sia, said to overcome the concerns, Kossan would produce more synthetic rubber glove.
'At the moment 40 per cent of our production are synthetic gloves and 60 per cent latex gloves. So we would increase synthetic glove production to just below 50 per cent.
'This is one of the group's actions to face the abnormal natural rubber price, such as latex, now hovering at about RM9 per kg after shooting up to RM10.70 per kg two month ago from RM7 before that,' he told a media briefing after the company's annual general meeting in Shah Alam today.
Lim said Kossan's future would be bright once its twonew factories in Klang were completed next year.
'These factories were meant to cater to production of high-end rubber gloves that could be used in clean room industry like the semiconductor sector,' he said.
Fortunately, he said, the company has just acquired 51 per cent stake in CleanEra Pte Ltd this month.
'The Hong Kong-based company has factory in Dongguan, China, producing products for clean room applications like surgical masks and lint free wipers.
'This company will bring synergy to Kossan to penetrate China's huge market,' he said.
For the financial year ended Dec 31, 2010, the company's pre-tax profit increased to RM148.06 million from RM85.82 million in the previous year.
Revenue increased to RM1.047 billion from RM842.13 million previously. -- Bernama
Its group managing director, Datuk Lim Kuang Sia, said to overcome the concerns, Kossan would produce more synthetic rubber glove.
'At the moment 40 per cent of our production are synthetic gloves and 60 per cent latex gloves. So we would increase synthetic glove production to just below 50 per cent.
'This is one of the group's actions to face the abnormal natural rubber price, such as latex, now hovering at about RM9 per kg after shooting up to RM10.70 per kg two month ago from RM7 before that,' he told a media briefing after the company's annual general meeting in Shah Alam today.
Lim said Kossan's future would be bright once its twonew factories in Klang were completed next year.
'These factories were meant to cater to production of high-end rubber gloves that could be used in clean room industry like the semiconductor sector,' he said.
Fortunately, he said, the company has just acquired 51 per cent stake in CleanEra Pte Ltd this month.
'The Hong Kong-based company has factory in Dongguan, China, producing products for clean room applications like surgical masks and lint free wipers.
'This company will bring synergy to Kossan to penetrate China's huge market,' he said.
For the financial year ended Dec 31, 2010, the company's pre-tax profit increased to RM148.06 million from RM85.82 million in the previous year.
Revenue increased to RM1.047 billion from RM842.13 million previously. -- Bernama
Monday, June 20, 2011
BToto records lower pre-tax profit of RM506m
Berjaya Sports Toto Bhd's (BToto) pre-tax profit for financial year ended Apr 30, 2011 fell to RM505.91 million from RM548.19 million in the same period last year.
Its revenue, however, increased by 1.2 per cent to RM3.43 billion from
RM3.39 billion previously.
In a filing to Bursa Malaysia today, BToto said the lower pre-tax profit was
mainly due to lower pre-tax profit recorded by its principal subsidiary, Sports
Toto Malaysia Sdn Bhd, which saw a drop of 11 per cent due to the impact from the increase in pool betting duty.
However, the downtrend was mitigated by the increase in pre-tax profit
recorded by Berjaya Philippines Inc group, it said.
For the fourth quarter, pre-tax profit rose to RM148.08 million from
RM117.32 million in the same quarter last year, while revenue went up to
RM901.31 million from RM858.29 million previously.
BToto said the revenue growth was mainly attributed to strong sales from the
Supreme Toto 6/58 lotto game as well as higher number of draws in the quarter.
Going forward, the group said it was optimistic its performance for
financial year ending Apr 30, 2012 would be satisfactory, barring unforeseen
circumstances. -- Bernama
Its revenue, however, increased by 1.2 per cent to RM3.43 billion from
RM3.39 billion previously.
In a filing to Bursa Malaysia today, BToto said the lower pre-tax profit was
mainly due to lower pre-tax profit recorded by its principal subsidiary, Sports
Toto Malaysia Sdn Bhd, which saw a drop of 11 per cent due to the impact from the increase in pool betting duty.
However, the downtrend was mitigated by the increase in pre-tax profit
recorded by Berjaya Philippines Inc group, it said.
For the fourth quarter, pre-tax profit rose to RM148.08 million from
RM117.32 million in the same quarter last year, while revenue went up to
RM901.31 million from RM858.29 million previously.
BToto said the revenue growth was mainly attributed to strong sales from the
Supreme Toto 6/58 lotto game as well as higher number of draws in the quarter.
Going forward, the group said it was optimistic its performance for
financial year ending Apr 30, 2012 would be satisfactory, barring unforeseen
circumstances. -- Bernama
EONCap investors to get RM312m payout
EON Capital Bhd's shareholders will get a special tax-exempt dividend of RM5.16 per share tomorrow following the completion of the acquisition of its assets and liabilities by Hong Leong Bank Bhd (HLBB) for RM5.06 billion.
Chairman Gooi Hoe Soon said securing the interim dividend payment of RM312 million had been part of EONCap's negotiations, in addition to the offer price of RM5.06 billion to enhance the return on shareholders' investment.
'The balance of the cash proceeds of RM1.79 billion from the disposal would be distributed back to shareholders via a non-taxable capital repayment now pending a high court confirmation on July 18.
'The capital repayment is expected to be completed by year-end,' he told reporters after the company's annual general meeting today.
The acquisition of the assets and liabilities of EONCap by HLBB was completed on May 6, following the full remittance of the RM5.1 billion sale consideration to EONCap.
Gooi said EONCap was expected to be delisted by the end of the third quarter or early fourth quarter of this year.
He said over 5,800 EONCap staff would be absorbed into HLBB, following the integration of the systems and the transformation of EON Bank branches nationwide next month.
Meanwhile, director Sharif Lough said Rin Kei Mei, one of the largest shareholders of EONCap has decided not to seek for reappointment in the board.
'At present, the board remained intact with the exceptional of Rin Kei Mei, who has has decided not to seek reappointment and as we move forward, the board will review the number of members from time to time,' Lough said. -- Bernama
Chairman Gooi Hoe Soon said securing the interim dividend payment of RM312 million had been part of EONCap's negotiations, in addition to the offer price of RM5.06 billion to enhance the return on shareholders' investment.
'The balance of the cash proceeds of RM1.79 billion from the disposal would be distributed back to shareholders via a non-taxable capital repayment now pending a high court confirmation on July 18.
'The capital repayment is expected to be completed by year-end,' he told reporters after the company's annual general meeting today.
The acquisition of the assets and liabilities of EONCap by HLBB was completed on May 6, following the full remittance of the RM5.1 billion sale consideration to EONCap.
Gooi said EONCap was expected to be delisted by the end of the third quarter or early fourth quarter of this year.
He said over 5,800 EONCap staff would be absorbed into HLBB, following the integration of the systems and the transformation of EON Bank branches nationwide next month.
Meanwhile, director Sharif Lough said Rin Kei Mei, one of the largest shareholders of EONCap has decided not to seek for reappointment in the board.
'At present, the board remained intact with the exceptional of Rin Kei Mei, who has has decided not to seek reappointment and as we move forward, the board will review the number of members from time to time,' Lough said. -- Bernama
Friday, June 17, 2011
Top Glove net income tumbles in Q3
Top Glove Corp, the world's biggest rubber-glove maker, reported lower profits for a fourth successive quarter after being hurt by higher latex prices and a weaker dollar.
Net income tumbled 60 per cent to RM25.6 million (US$8.4 million), or 4.09 sen per share, from RM64.5 million, or an adjusted 10.51 sen, in the three months ended May 31, the Malaysian company said in an exchange filing today.
Revenue dropped 3.7 per cent to RM535.4 million.
The Selangor-based company paid an average 39 per cent more for latex used its gloves in its fiscal third quarter, compared with a year earlier, it said. Over the same period, the dollar was 7.4 per cent weaker. Top Glove prices its products in the US currency.
'Due to an oversupply situation in the glove industry, it is difficult for Top Glove to pass on the rise in costs to its customers in full,' Chairman Lim Wee Chai said in a separate statement. Latex prices have since 'stabilized,' so customers may resume buying, he said.
Rubber futures for November delivery have fallen 2.7 per cent since the end of Top Glove's fiscal third quarter. They fell 0.9 per cent to 379.80 yen a kilogram (US$4,710 a metric ton) on the Tokyo Commodity Exchange at 4:02 p.m. local time.
Latex prices may decline as rubber-producing countries increase production, the company said. In order to mitigate latex cost increases in future, Top Glove has started moving upstream by acquiring land to diversify into rubber plantations.
Its shares fell 1.9 per cent to RM5.25 at 3:02 p.m. in Kuala Lumpur trading after its earnings were released during the midday break, erasing gains over the past two days. The benchmark FTSE Bursa Malaysia KLCI Index rose 0.4 per cent.
The stock has fallen 18 per cent over the past year as demand for medical gloves slowed with fewer global health scares. -- Bloomberg
Net income tumbled 60 per cent to RM25.6 million (US$8.4 million), or 4.09 sen per share, from RM64.5 million, or an adjusted 10.51 sen, in the three months ended May 31, the Malaysian company said in an exchange filing today.
Revenue dropped 3.7 per cent to RM535.4 million.
The Selangor-based company paid an average 39 per cent more for latex used its gloves in its fiscal third quarter, compared with a year earlier, it said. Over the same period, the dollar was 7.4 per cent weaker. Top Glove prices its products in the US currency.
'Due to an oversupply situation in the glove industry, it is difficult for Top Glove to pass on the rise in costs to its customers in full,' Chairman Lim Wee Chai said in a separate statement. Latex prices have since 'stabilized,' so customers may resume buying, he said.
Rubber futures for November delivery have fallen 2.7 per cent since the end of Top Glove's fiscal third quarter. They fell 0.9 per cent to 379.80 yen a kilogram (US$4,710 a metric ton) on the Tokyo Commodity Exchange at 4:02 p.m. local time.
Latex prices may decline as rubber-producing countries increase production, the company said. In order to mitigate latex cost increases in future, Top Glove has started moving upstream by acquiring land to diversify into rubber plantations.
Its shares fell 1.9 per cent to RM5.25 at 3:02 p.m. in Kuala Lumpur trading after its earnings were released during the midday break, erasing gains over the past two days. The benchmark FTSE Bursa Malaysia KLCI Index rose 0.4 per cent.
The stock has fallen 18 per cent over the past year as demand for medical gloves slowed with fewer global health scares. -- Bloomberg
HLBB gets order to transfer EON biz
Hong Leong Bank Bhd (HLBB) has been granted a vesting order to transfer the entire business, including all assets and liabilities of EON Bank Bhd, to HLBB with effect from July 1, 2011.
Following the vesting, EON Bank Bhd will become a dormant company.
Group managing director/chief executive, Yvonne Chia, said the granting of the vesting order was a key step towards merging the operating businesses of both banks.
'While it is effective from July 1, it will continue to be business-as-usual for customers and business associates of both banks until further notice,' she said in a statement today.
HLBB said uninterrupted service and seamless continuity of its banking operations at both banks would continue.
'Like all bank mergers, the full integration process will take time before we can truly operate on a single platform.
'The merger is making solid progress at this stage and we have forged very good camaraderie between the two banks in a very short time.
'These are exciting times for all of us and the new senior leadership team is focused, passionate and committed to the success of this merger. This is a growth merger for all stakeholders,' she said. -- Bernama
Following the vesting, EON Bank Bhd will become a dormant company.
Group managing director/chief executive, Yvonne Chia, said the granting of the vesting order was a key step towards merging the operating businesses of both banks.
'While it is effective from July 1, it will continue to be business-as-usual for customers and business associates of both banks until further notice,' she said in a statement today.
HLBB said uninterrupted service and seamless continuity of its banking operations at both banks would continue.
'Like all bank mergers, the full integration process will take time before we can truly operate on a single platform.
'The merger is making solid progress at this stage and we have forged very good camaraderie between the two banks in a very short time.
'These are exciting times for all of us and the new senior leadership team is focused, passionate and committed to the success of this merger. This is a growth merger for all stakeholders,' she said. -- Bernama
Friday, June 10, 2011
ECM Libra Q1 pre-tax profit jumps
ECM Libra Financial Group Bhd's pre-tax profit for the first quarter ended April 30, 2011 jumped to RM19.1 million from
RM9.94 million in the same quarter last year.
Revenue for the quarter rose to RM46.59 million from RM34.78 million in 2010 while net profit surged to RM14.32 million from RM7.25 million previously.
In a filing to Bursa Malaysia today, ECM Libra said the increase in net profit was mainly contributed by net brokerage income of RM14.4 million, fee income of RM5.6 million, net gain from trading and investment securities of RM4.5 million as well as net interest income of RM9.7 million, partially offset by operating expenses of RM20.6 million.
On prospects, ECM Libra said its fundamentals and financial position remained strong and is expected to show satisfactory performance in the current financial year. -- Bernama
RM9.94 million in the same quarter last year.
Revenue for the quarter rose to RM46.59 million from RM34.78 million in 2010 while net profit surged to RM14.32 million from RM7.25 million previously.
In a filing to Bursa Malaysia today, ECM Libra said the increase in net profit was mainly contributed by net brokerage income of RM14.4 million, fee income of RM5.6 million, net gain from trading and investment securities of RM4.5 million as well as net interest income of RM9.7 million, partially offset by operating expenses of RM20.6 million.
On prospects, ECM Libra said its fundamentals and financial position remained strong and is expected to show satisfactory performance in the current financial year. -- Bernama
Thursday, June 9, 2011
MMHE replaces MAS in FBMKLCI
FTSE Group and Bursa Malaysia Bhd have announced that Malaysia Marine and Heavy Engineering (MMHE) will replace Malaysian Airline System in the FTSE Bursa Malaysia KLCI.
This follows the semi-annual review of the FTSE Bursa Malaysia Index Series, today.
The index series is reviewed semi-annually by the independent FTSE Bursa Malaysia Index Advisory Committee.
The committee is made up of leading market professionals who ensure the index review fully complies with a set of highly transparent and publicly available index rules. -- Bernama
This follows the semi-annual review of the FTSE Bursa Malaysia Index Series, today.
The index series is reviewed semi-annually by the independent FTSE Bursa Malaysia Index Advisory Committee.
The committee is made up of leading market professionals who ensure the index review fully complies with a set of highly transparent and publicly available index rules. -- Bernama
Petronas Gas: More revenue from terminal
Petronas Gas (PTG) will likely generate more revenue from its second liquefied natural gas re-gasification terminal in
Pengerang, Johor.
'We expect 500 million standard cubic feet per day (mmscfd) of gas to flow through Pengerang,' OSK research said in its research note today.
PTG confirmed it will proceed with a 3.6 tonne per annum LNG regasification terminal in Pengerang, to be completed by 2016, as part of its Refinery and Petrochemical Integrated Development (RAPID) project.
OSK Research said PTG would likely own the Pengerang LNG terminal.
It added that PTG was now more willing to restart gas field development since it longer had to bear an unnecessary social burden due to the reduction in gas subsidies. -- Bernama
Pengerang, Johor.
'We expect 500 million standard cubic feet per day (mmscfd) of gas to flow through Pengerang,' OSK research said in its research note today.
PTG confirmed it will proceed with a 3.6 tonne per annum LNG regasification terminal in Pengerang, to be completed by 2016, as part of its Refinery and Petrochemical Integrated Development (RAPID) project.
OSK Research said PTG would likely own the Pengerang LNG terminal.
It added that PTG was now more willing to restart gas field development since it longer had to bear an unnecessary social burden due to the reduction in gas subsidies. -- Bernama
Alam Maritim to win more jobs: HwangDBS
HwangDBS Vickers Research expects Alam Maritim to secure more contracts by year-end when vessel demand should have recovered significantly.
It also expects Alam Maritim to win more contracts from Petronas after delays in the first half of this year.
After rough patches in the last two quarters when utilisation rates were badly affected by a lack of jobs, we expect a better performance in the next few quarters, it said in a research note today,
Alam Maritim is expected to turn profitable in the second quarter of this year on the back of RM140 million worth of new contracts secured in March and April, HwangDBS said, adding, the company is set for a sharp recovery in the offshore supply vessel (OSV) segment.
The company is bidding for RM500 million worth of marine charter contracts currently, which should improve its fleet utilisation.
We are optimistic Alam Maritim's 41-vessel fleet will improve its chances of clinching more installation contracts with 1MAS-300, its first pipe-lay barge, HwangDBS added.
Meanwhile, it highlighted that the company's joint venture with state-owned Yayasan Sabah Shipping in April to provide offshore support vessels and construction services to the oil and gas industry in Sabah, would allow Alam Maritim to make inroads into the booming sector's activity.
This could be a precursor for Alam Maritim to bag the coveted US$50-US$60 million Sabah oil and gas terminal's pipeline installation contract, HwangDBS said. -- Bernama
It also expects Alam Maritim to win more contracts from Petronas after delays in the first half of this year.
After rough patches in the last two quarters when utilisation rates were badly affected by a lack of jobs, we expect a better performance in the next few quarters, it said in a research note today,
Alam Maritim is expected to turn profitable in the second quarter of this year on the back of RM140 million worth of new contracts secured in March and April, HwangDBS said, adding, the company is set for a sharp recovery in the offshore supply vessel (OSV) segment.
The company is bidding for RM500 million worth of marine charter contracts currently, which should improve its fleet utilisation.
We are optimistic Alam Maritim's 41-vessel fleet will improve its chances of clinching more installation contracts with 1MAS-300, its first pipe-lay barge, HwangDBS added.
Meanwhile, it highlighted that the company's joint venture with state-owned Yayasan Sabah Shipping in April to provide offshore support vessels and construction services to the oil and gas industry in Sabah, would allow Alam Maritim to make inroads into the booming sector's activity.
This could be a precursor for Alam Maritim to bag the coveted US$50-US$60 million Sabah oil and gas terminal's pipeline installation contract, HwangDBS said. -- Bernama
OSK 'overweight' on oil sector
Since oil demand from emerging economies, including China and India, are expected to grow, Malaysia's future oil and gas
trading hub in Johor will enjoy good demand as the country was situated along the trade route between the East and the West.
OSK Research said emerging economies in most parts of the world, except for United States, Europe and Japan, were thirsty for oil as demand was expected to grow by about six per cent, annually, compared with only two per cent in advanced economies.
We believe Malaysia will, in the future, enjoy good demand for its services in Pengerang, Johor, which will be developed as the region's oil and gas trading hub, OSK said in a review of the just-concluded Asia Oil and Gas Conference held in Kuala Lumpur.
It said oil prices were likely to hover around US$100 per barrel following supply fears due to the unrest in the Middle East and the fact that oil was still being used as a hedging instrument against the weakening dollar.
However, if oil price surpass US$100 per barrel and move above US$125 per barrel, economic growth in the region could potentially slow as each country would need to raise interest rates to battle rising inflation, it added.
While saying that 2011 would be a better year for the oil and gas industry, the company expected a ramp-up in capital expenditure (capex) spending in the coming months, noting that Petronas had planned a capex of US$300 billion. It maintained an overweight on the sector. -- Bernama
trading hub in Johor will enjoy good demand as the country was situated along the trade route between the East and the West.
OSK Research said emerging economies in most parts of the world, except for United States, Europe and Japan, were thirsty for oil as demand was expected to grow by about six per cent, annually, compared with only two per cent in advanced economies.
We believe Malaysia will, in the future, enjoy good demand for its services in Pengerang, Johor, which will be developed as the region's oil and gas trading hub, OSK said in a review of the just-concluded Asia Oil and Gas Conference held in Kuala Lumpur.
It said oil prices were likely to hover around US$100 per barrel following supply fears due to the unrest in the Middle East and the fact that oil was still being used as a hedging instrument against the weakening dollar.
However, if oil price surpass US$100 per barrel and move above US$125 per barrel, economic growth in the region could potentially slow as each country would need to raise interest rates to battle rising inflation, it added.
While saying that 2011 would be a better year for the oil and gas industry, the company expected a ramp-up in capital expenditure (capex) spending in the coming months, noting that Petronas had planned a capex of US$300 billion. It maintained an overweight on the sector. -- Bernama
Tuesday, June 7, 2011
AmResearch keeps 'neutral' call on auto sector
KUALA LUMPUR:Am Research is maintaining a neutral call on the automotive sector on expectation that the bulk of vehicles
launches and deliveries will pick up pace from August onwards, despite the earnings uncertainties due to supply chain crisis.
In a note today, the research firm said the call was maintained due to the early-than-expected new Perodua Myvi launch date and potential price discount towards the third and fourth quarter of this year.
Potential discount is possible as the sector's players will rush out to meet annual volume commitments to principals, it said in a statement today.
On Perusahaan Otomobil Kedua Sdn Bhd (Perodua), the firm said the early launch of the new Myvi version, despite inventory issues, was suspected to be a measure to lock in customers and minimize market share loss should buyers opt not to wait for the initial September launch date and switch to a competing model.
However, we do not rule out Perodua reaching its sales target of 8,500 units per month given the company can solve inventory shortage particularly in electronics parts and avoid a long waiting period after the booking for the new Perodua Myvi which may deter some buyers from honouring purchase bookings, it added. - Bernama
launches and deliveries will pick up pace from August onwards, despite the earnings uncertainties due to supply chain crisis.
In a note today, the research firm said the call was maintained due to the early-than-expected new Perodua Myvi launch date and potential price discount towards the third and fourth quarter of this year.
Potential discount is possible as the sector's players will rush out to meet annual volume commitments to principals, it said in a statement today.
On Perusahaan Otomobil Kedua Sdn Bhd (Perodua), the firm said the early launch of the new Myvi version, despite inventory issues, was suspected to be a measure to lock in customers and minimize market share loss should buyers opt not to wait for the initial September launch date and switch to a competing model.
However, we do not rule out Perodua reaching its sales target of 8,500 units per month given the company can solve inventory shortage particularly in electronics parts and avoid a long waiting period after the booking for the new Perodua Myvi which may deter some buyers from honouring purchase bookings, it added. - Bernama
Thursday, June 2, 2011
HwangDBS expects progress in rail projects
KUALA LUMPUR: HwangDBS Vickers Research expects progress in key domestic projects in the second half of this year, with the Mass Rapid Transit (MRT) groundbreaking on track for July while the winner of the Light Rail Transit (LRT) phase two project, is likely to be announced by end-June.
It said in a statement today, the recent subsidy cuts will allow
funds to be channeled towards public transportation projects such as the MRT.
However, HwangDBS said the rise in inflation and slower growth might continue to result in further weaknesses in the near term but Malaysia is likely to be better off relative to other markets.
'This is because of its defensive quality with relatively low foreign shareholdings and support from domestic funds as well as implementation of key catalyst projects.
'Yield stocks may also gain interest if the regional markets remain weak,' it said, while adding that for this year, the year-end KLCI target is expected to be at 1,730 points.
The top yield pick of HwangDBS includes Boustead Holdings Bhd, Axis-Reit Managers Bhd, Maxis Bhd and DiGi.com Bhd.
Meanwhile, OSK Research Sdn Bhd said aside from the consumer sector for which first quarter was strong due to festivities, others such as steel, construction and oil and gas tend to have a weak first quarter owing to the fewer number of working days.
The research house foresees earnings to pick up a little in the second quarter, although the auto and technology sectors may still remain weak due to supply problems in Japan.
It stated that the year-end target for the KLCI will be at 1,680 points and sees merger and acquisition excitement among banks as one of the catalysts to achieve it.
However, OSK sees the 1,600 points level as tough resistance prior to the month of October, when an election-friendly Budget 2012 may be announced. - Bernama
It said in a statement today, the recent subsidy cuts will allow
funds to be channeled towards public transportation projects such as the MRT.
However, HwangDBS said the rise in inflation and slower growth might continue to result in further weaknesses in the near term but Malaysia is likely to be better off relative to other markets.
'This is because of its defensive quality with relatively low foreign shareholdings and support from domestic funds as well as implementation of key catalyst projects.
'Yield stocks may also gain interest if the regional markets remain weak,' it said, while adding that for this year, the year-end KLCI target is expected to be at 1,730 points.
The top yield pick of HwangDBS includes Boustead Holdings Bhd, Axis-Reit Managers Bhd, Maxis Bhd and DiGi.com Bhd.
Meanwhile, OSK Research Sdn Bhd said aside from the consumer sector for which first quarter was strong due to festivities, others such as steel, construction and oil and gas tend to have a weak first quarter owing to the fewer number of working days.
The research house foresees earnings to pick up a little in the second quarter, although the auto and technology sectors may still remain weak due to supply problems in Japan.
It stated that the year-end target for the KLCI will be at 1,680 points and sees merger and acquisition excitement among banks as one of the catalysts to achieve it.
However, OSK sees the 1,600 points level as tough resistance prior to the month of October, when an election-friendly Budget 2012 may be announced. - Bernama
Wednesday, June 1, 2011
Petra Energy to use Labuan Shipyard
Integrated oil and gas brown field services provider Petra Energy Bhd plans to undertake minor fabrication works at the premise of Labuan Shipyard and Engineering Sdn Bhd.
Both parties will sign a memorandum of understanding (MOU) for the lease of the premise tomorrow in conjunction with the 13th Asian Oil, Gas and Petrochemical Engineering Exhibition (OGA 2011) held at Kuala Lumpur Convention Centre.
Petra Energy Executive Director and Chief Executive Officer Kamarul Baharin Albakri said the site was selected due to its strategic location and close proximity to the national oil and gas hubs and oil production facilities.
'Our new (minor fabrications) facility would be fully equipped with support capabilities and experienced workforce to enable us to undertake quick-turnaround of services for oil and gas majors,' he said in a statement today.
Deputy Prime Minister Tan Sri Muhyiddin Yassin is scheduled officiate the opening ceremony of OGA 2011 and witness the signing of the MOU.
The three-day OGA 2011 is the region's No.1 oil and gas show and is expected to attract over 22,000 oil and gas professionals and trade visitors. -- Bernama
Both parties will sign a memorandum of understanding (MOU) for the lease of the premise tomorrow in conjunction with the 13th Asian Oil, Gas and Petrochemical Engineering Exhibition (OGA 2011) held at Kuala Lumpur Convention Centre.
Petra Energy Executive Director and Chief Executive Officer Kamarul Baharin Albakri said the site was selected due to its strategic location and close proximity to the national oil and gas hubs and oil production facilities.
'Our new (minor fabrications) facility would be fully equipped with support capabilities and experienced workforce to enable us to undertake quick-turnaround of services for oil and gas majors,' he said in a statement today.
Deputy Prime Minister Tan Sri Muhyiddin Yassin is scheduled officiate the opening ceremony of OGA 2011 and witness the signing of the MOU.
The three-day OGA 2011 is the region's No.1 oil and gas show and is expected to attract over 22,000 oil and gas professionals and trade visitors. -- Bernama
RHBCap hits 14-year high on merger news
RHB Capital Bhd surged to a 14-year high after CIMB Group Holdings Bhd and Malayan Banking Bhd won central bank approval to begin separate merger talks, triggering a battle to potentially create Southeast Asia's biggest bank.
The Kuala Lumpur-based lender jumped 8.4 per cent to RM9.99 at 10:35 a.m. in Kuala Lumpur trading, set for its highest close since March 1997. With a market value of RM22.1 billion (US$7.3 billion), this would be the biggest banking deal in the Asia-Pacific region in the past three years, according to data compiled by Bloomberg.
Maybank, as the nation's largest lender is known, and CIMB, headed by the prime minister's brother, aim to cement their dominance as the central bank grants more licenses to overseas lenders including Bank of China Ltd Smaller rival Hong Leong Bank Bhd last month bought EON Capital Bhd, and ECM Libra Financial Group Bhd. is said to be seeking a buyer.
'In the past big players like Maybank thought that it didn't make much sense to acquire the bank next door because there'd be overlapping of customers,' Ang Kok Heng, who oversees US$292 million as chief investment officer at Phillip Capital Management Sdn Bhd, said in a telephone interview. 'The strategy now is different whereby they want to build up a bigger asset base, which will put them in a better position to compete for overseas financing mandates.'
Region's Biggest Lender
The combined capitalization of CIMB and RHB would be US$27.3 billion, based on yesterday's closing prices. Maybank could boost its market worth to US$28.8 billion, which would exceed the US$27.7 billion value for Singapore's DBS Group Holdings Ltd, the region's largest lender.
'Potentially, this could lead to a bidding war for RHB,' said Jason Chong, who helps manage about US$1 billion of assets as chief investment officer at Manulife Asset Management (Malaysia) Sdn Bhd in Kuala Lumpur. 'The merger of RHB and CIMB would make more sense because with Maybank, there will be a lot more duplication of assets in terms of branches.'
RHB was last month overtaken as Malaysia's fourth-biggest lender by assets following Hong Leong's takeover of EON. RHB has operations spanning all key areas of financial services, including a branch network, treasury, investment banking and Islamic finance.
Open to Offers
'RHB will consider all proposals that are beneficial to shareholders,' Azlan Zainol, chairman of RHB's banking unit, said in a phone interview yesterday. Azlan is also chief executive officer of the bank's biggest shareholder, state-run pension fund Employees Provident Fund, which holds a 45 per cent stake, according to data compiled by Bloomberg.
Abu Dhabi Commercial Bank PJSC has said it's seeking to sell its 25 per cent RHB interest. The United Arab Emirates's third-biggest bank by assets appointed Goldman Sachs Group Inc and Bank of America Corp's Merrill Lynch and Co to advise on an exit, Chief Executive Officer Ala'a Eraiqat said in April.
Abu Dhabi may sell its RHB stake to its sister company Abu Dhabi Investment Council, the Star reported today, citing an unidentified person. It identified three top bidders for the stake at a board meeting yesterday after receiving bids from Japan's Sumitomo Mitsui Financial Group Inc, an unidentified Chinese bank and several private equity firms including Carlyle Group, the report said. The bidders have offered between two and 2.5-times book value for its RHB stake, it said.
and#8216;Early Days'
'It is incumbent on us to engage on this opportunity to put forward a value-creating merger between the two banks and support the national banking consolidation agenda,' Nazir Razak, group chief executive officer at CIMB, said in a statement yesterday. 'It is, however, very early days as negotiations have not even commenced.'
While Maybank is currently the country's biggest lender by both assets, its international investment banking operations have lagged behind rival CIMB.
CIMB, whose chief executive is the Malaysian prime minister's brother, temporarily overtook Maybank as the country's biggest company by market value last year. Its shares have risen 179 per cent over the past year, compared with a 15 per cent increase in Maybank's stock.
To help maintain its lead, Maybank last month completed the S$798 million (US$648 million) acquisition of a 44.6 per cent stake in Kim Eng Holdings Ltd, a Singapore-based securities and investment-banking group, which has offices in countries including Hong Kong, Thailand, the Philippines and India.
An RHB merger 'would be consistent with Maybank's vision to become the regional financial services leader,' Maybank said in an e-mailed statement yesterday.
Maybank's shares fell 0.9 per cent to RM8.83 today, while CIMB dropped 0.1 per cent to RM8.36.
Malaysia is likely to see further consolidation in its banking industry, Second Finance Minister Ahmad Husni Mohamad Hanadzlah said on May 19. In future, there may be banks that serve domestic needs and others that grow into regional brands, he said. -- Bloomberg
The Kuala Lumpur-based lender jumped 8.4 per cent to RM9.99 at 10:35 a.m. in Kuala Lumpur trading, set for its highest close since March 1997. With a market value of RM22.1 billion (US$7.3 billion), this would be the biggest banking deal in the Asia-Pacific region in the past three years, according to data compiled by Bloomberg.
Maybank, as the nation's largest lender is known, and CIMB, headed by the prime minister's brother, aim to cement their dominance as the central bank grants more licenses to overseas lenders including Bank of China Ltd Smaller rival Hong Leong Bank Bhd last month bought EON Capital Bhd, and ECM Libra Financial Group Bhd. is said to be seeking a buyer.
'In the past big players like Maybank thought that it didn't make much sense to acquire the bank next door because there'd be overlapping of customers,' Ang Kok Heng, who oversees US$292 million as chief investment officer at Phillip Capital Management Sdn Bhd, said in a telephone interview. 'The strategy now is different whereby they want to build up a bigger asset base, which will put them in a better position to compete for overseas financing mandates.'
Region's Biggest Lender
The combined capitalization of CIMB and RHB would be US$27.3 billion, based on yesterday's closing prices. Maybank could boost its market worth to US$28.8 billion, which would exceed the US$27.7 billion value for Singapore's DBS Group Holdings Ltd, the region's largest lender.
'Potentially, this could lead to a bidding war for RHB,' said Jason Chong, who helps manage about US$1 billion of assets as chief investment officer at Manulife Asset Management (Malaysia) Sdn Bhd in Kuala Lumpur. 'The merger of RHB and CIMB would make more sense because with Maybank, there will be a lot more duplication of assets in terms of branches.'
RHB was last month overtaken as Malaysia's fourth-biggest lender by assets following Hong Leong's takeover of EON. RHB has operations spanning all key areas of financial services, including a branch network, treasury, investment banking and Islamic finance.
Open to Offers
'RHB will consider all proposals that are beneficial to shareholders,' Azlan Zainol, chairman of RHB's banking unit, said in a phone interview yesterday. Azlan is also chief executive officer of the bank's biggest shareholder, state-run pension fund Employees Provident Fund, which holds a 45 per cent stake, according to data compiled by Bloomberg.
Abu Dhabi Commercial Bank PJSC has said it's seeking to sell its 25 per cent RHB interest. The United Arab Emirates's third-biggest bank by assets appointed Goldman Sachs Group Inc and Bank of America Corp's Merrill Lynch and Co to advise on an exit, Chief Executive Officer Ala'a Eraiqat said in April.
Abu Dhabi may sell its RHB stake to its sister company Abu Dhabi Investment Council, the Star reported today, citing an unidentified person. It identified three top bidders for the stake at a board meeting yesterday after receiving bids from Japan's Sumitomo Mitsui Financial Group Inc, an unidentified Chinese bank and several private equity firms including Carlyle Group, the report said. The bidders have offered between two and 2.5-times book value for its RHB stake, it said.
and#8216;Early Days'
'It is incumbent on us to engage on this opportunity to put forward a value-creating merger between the two banks and support the national banking consolidation agenda,' Nazir Razak, group chief executive officer at CIMB, said in a statement yesterday. 'It is, however, very early days as negotiations have not even commenced.'
While Maybank is currently the country's biggest lender by both assets, its international investment banking operations have lagged behind rival CIMB.
CIMB, whose chief executive is the Malaysian prime minister's brother, temporarily overtook Maybank as the country's biggest company by market value last year. Its shares have risen 179 per cent over the past year, compared with a 15 per cent increase in Maybank's stock.
To help maintain its lead, Maybank last month completed the S$798 million (US$648 million) acquisition of a 44.6 per cent stake in Kim Eng Holdings Ltd, a Singapore-based securities and investment-banking group, which has offices in countries including Hong Kong, Thailand, the Philippines and India.
An RHB merger 'would be consistent with Maybank's vision to become the regional financial services leader,' Maybank said in an e-mailed statement yesterday.
Maybank's shares fell 0.9 per cent to RM8.83 today, while CIMB dropped 0.1 per cent to RM8.36.
Malaysia is likely to see further consolidation in its banking industry, Second Finance Minister Ahmad Husni Mohamad Hanadzlah said on May 19. In future, there may be banks that serve domestic needs and others that grow into regional brands, he said. -- Bloomberg
Karambunai slides on bigger Q4 net loss
Karambunai Corp, a Malaysian resort operator, fell the most in three months in Kuala Lumpur trading after its fourth-quarter net loss widened to RM316.8 million from RM15.5 million a year earlier.
The stock slid 7.3 per cent to 19 sen at 10:46 a.m. local time, set for its steepest drop since March 2. -- Bloomberg
The stock slid 7.3 per cent to 19 sen at 10:46 a.m. local time, set for its steepest drop since March 2. -- Bloomberg
RHB Cap to discuss talks with CIMB, Maybank
RHB Capital Bhd says it has been formally notified by CIMB Group Holdings Bhd and Malayan Banking Bhd (Maybank) that Bank Negara Malaysia has no objection in principle for them to commence talks with the group and its substantial shareholders for a possible merger of the businesses.
'The proposed negotiations will be deliberated by the Board and further announcement on the developments will be made in due course,' RHB Capital said in a filing to Bursa Malaysia today.
Yesterday, both CIMB and Maybank announced that the central bank had given the nod approval for the country's two biggest banking groups to commence negotiations on a possible merger with RHB Capital. The central bank approval is valid for three months.
RHB Capital is the fourth largest banking group in Malaysia. -- Bernama
'The proposed negotiations will be deliberated by the Board and further announcement on the developments will be made in due course,' RHB Capital said in a filing to Bursa Malaysia today.
Yesterday, both CIMB and Maybank announced that the central bank had given the nod approval for the country's two biggest banking groups to commence negotiations on a possible merger with RHB Capital. The central bank approval is valid for three months.
RHB Capital is the fourth largest banking group in Malaysia. -- Bernama
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