JIT News - JCY/Dufu, MBF, KNM/Zecon, YTL Power, Airasia, Harvest

JCY/Dufu: Malaysian HDD component makers, which supply mainly to Seagate could well take pole position in the HDD industry after Western Digital was beaten out by the flooding in Thailand. And with a global HDD shortage looming, higher prices are likely to boost margins down the entire value chain, providing some relief for component suppliers hit by low prices and poor margins. JCY and Dufu could well become prime beneficiaries of having Seagate as client. Industry observers are seeing orders have been coming in as people are taking advantage of the higher prices they can fetch amid the potential shortage supply of HDDs in the next few months.

 

Prices of HDDs and components are expected to increase in view of the disrupted HDD supply chain that will in turn hit OEMs such as IBM, Dell and EMC in the coming months. For an industry where margins are thin, this could provide a boost to earnings, even if overall volume declines.

 

MBF Holdings: Rumors MBF will be taken private have begun to swirl again. Its largest shareholder and CEO Tan Sri Dr Ninian acquiring MBF shares and warrants on the open market. He had increased his shareholding in MBF to 84.55% as at Oct 21, 2011, just a few percentage of the 90% threshold to compulsory acquire the remaining shares and take the company private. He had also raised his warrants holdings in MBF to 73.13% stake on that date. On Oct 27, 2011, he sold 10 million warrants, paring his stake in warrants to 69.36%.

 

KNM and Zecon have yet to finalise the agreement and financing for the RM15 billion petroleum refinery and polypropylene unit projects in Teluk Ramunia, Johor, with Gulf Asian Petroleum Sdn Bhd.

 

YTL Power/YTL Comm: YTL Comms has submitted its business plan to Malaysian Communications and Multimedia Commission (MCMC) to secure spectrum licences to roll out its Yes 4G mobile internet-with-voice service in Sabah and Sarawak. The company was currently awaiting feedback from MCMC. MCMC will review the plan and give them the feedback.

 

Airasia: AirAsia Bhd's Thai unit remains on target to sell shares in the fourth quarter 2011 through an initial public offering as the plan hasn't been affected by the flooding.

 

Harvest has appointed two officials of Sagajuta group of companies, Datuk Raymond Chan Boon Siew and Mohd Nazifuddin Mohd.Najib to the board.