Berjaya Corp swings to RM33m profit

Berjaya Corp, a Malaysian property, insurance and gaming group, reported a RM32.5 million profit for its fiscal quarter, compared with a RM156.2 million a loss a year earlier.

Earnings were boosted by higher contributions from its gaming, stockbroking, retail and distribution businesses, the company said in a statement.

The year-earlier loss was due to the dilution of its stake in Berjaya Land Bhd in 2009, it said. -- Bloomberg

Jaya Tiasa, Ta Ann cut to 'hold'

Jaya Tiasa Holdings Bhd and Ta Ann Holdings Bhd, two Malaysian timber producers, were cut to 'hold' from 'buy' at AmResearch Sdn Bhd because the recent surge in their share prices has 'stretched valuations.' -- Bloomberg

IJM close to winning RM5b jobs: Credit Suisse

IJM Corp, a Malaysian builder, is in advanced stages of securing more than RM5 billion of new construction contracts, which may double its existing orderbook to a record RM10 billion, according to Credit Suisse Group AG.

The contracts include the West Coast Highway project, hospital and rail projects, Danny Goh, an analyst at Credit Suisse, wrote in a report today. -- Bloomberg

Perisai to acquire Garuda for US$70m

Perisai Petroleum Teknologi Bhd has proposed to acquire the entire equity interest in Garuda Energy (L) Ltd for
US$70 million (RM210 million).

The purchase consideration will be satisfied by way of US$50 million (RM150 million) cash and the issuance of new ordinary shares of Perisai at an issue price of 65 sen per share for the remaining US$20 million (RM60 million).

In a filing to Bursa Malaysia today, Perisai said it entered into a term sheet which contains the material terms of the proposed acquisition with the vendor, Nagendran Nadarajah, today.

Garuda Energy currently owns a jack-up rig, namely Rubicone. Rubicone is currently being converted into a Mobile Offshore Production Unit (MOPU) at Jurong Shipyard in Singapore and is expected to be completed by May 2011.

Perisai said Garuda Energy would enter into a bareboat charter agreement with Gryphon Energy (M) Sdn Bhd (GEM) -- which was recently awarded a contract by a major oil and gas company to lease, operate and maintain a MOPU for a period of 2+1+1 years -- for the supply of the MOPU.

'A bare boat charter arrangement of the MOPU with GEM is expected to be generating revenue of approximately US$25 million per annum,' it said. -- Bernama

ECM Libra profit swells to RM86m

ECM Libra Financial Group Bhd's pre-tax profit for financial year ended Jan 31, 2011 rose to RM86.7 million from RM45.6
million in the same period last year.

Its revenue increased to RM214.64 million from RM133.96 million previously, it said in an announcement to Bursa Malaysia today.

Group chairman, Datuk Mohd Ali Abd Samad, said the bank has made substantial progress in re-defining its retail broking and wealth management business.

He said both sectors were expected to contribute meaningfully to operating profits in the coming years.

It posted a two-fold increase in operating profit to RM96 million for the financial year ended Jan 31, 2011 compared with RM49 million a year ago. -- Bernama

Poh Kong Q2 pre-tax profit grows to RM14m

Poh Kong Holdings Bhd recorded a higher pre-tax profit of RM14.2 million for the second quarter ended Jan 31, 2011 from RM11.3 million in the corresponding period of last year.

Its revenue rose to RM170.5 million from RM144.2 million previously due to a higher sales volume, it said in an announcement to Bursa Malaysia today.

For the current financial year, Poh Kong would continue its drive to build market share by enhancing and differentiating product offerings to its targeted segments. -- Bernama

Kencana awarded RM216m Petrofac job

Kencana Petroleum Bhd has announced that wholly-owned Kencana HL Sdn Bhd (KHL), has secured a RM216 million contract from Petrofac (Malaysia-PM304) Ltd (Petrofac), for the engineering, procurement and construction (EPC) of well head platforms for the Cendor oil field.

In its filing to Bursa Malaysia, the company said KHL is to undertake the EPC of two units of wellhead platforms for the Cendor Phase 2 Development Project, located off the coast of Terengganu.

It said the one-off construction contract is expected to be completed within the second quarter of 2012.

Meanwhile, the contract is expected to contribute positively to the earnings and net assets per share of Kencana Petroleum Group for the financial years ending July 31, 2011 and 2012. -- Bernama

Sapuracrest post higher pre-tax profit

Sapuracrest Petroleum Bhd's profit before tax for the financial year ended Jan 31, 2011 increased to RM424.062 million from RM363.999 million.

Revenue was lower at RM3.193 billion from RM3.257 billion previously, the company said in a statement today.

It said revenue decreased marginally mainly due to lower activities in the marine services and drilling divisions while the higher pre-tax profit was
mainly due to favourable results in the installation of pipeline and facilities
(IPF) division including higher contribution from IPF joint ventures and reduced losses in the marine services division. -- Bernama

Jaya Tiasa posts higher Q3 pre-tax profit

Jaya Tiasa Holdings Bhd achieved a higher pre-tax profit of RM58.27 million in the third quarter ended Jan 31, 2011,compared to the RM18.36 million recorded in the previous corresponding
period.

Revenue rose to RM237.65 million from RM209.69 million previously, said the
company in a filing to Bursa Malaysia today. -- Bernama

SILK's Q2 profit improves 5.2pc

SILK Holdings Bhd's revenue for the second quarter ended Jan 31,2011, improved by 5.2 per cent to RM60.6 million from the RM57.6 million recorded in same period last year.

Earnings before interest, tax, depreciation and amortisation (EBITDA) declined to RM30.7 million from RM36.9 million previously while loss after tax and minority interest stood at RM3.2 million compared to a profit after tax of
RM0.97 million recorded in the previous year corresponding quarter.

SILK in a statement today said the loss was primarily due to significant
higher depreciation and amortisation cost amounting to RM10.7 million posted in the current quarter compared to the RM7.1 million incurred in the previous
corresponding quarter.

'This resulted from the adoption of the new IC Interpretation 12 in compliance with accounting standards, which applies to all service concessions,' it said.

For the highway infrastructure division, revenue jumped to RM16.7 million
from RM10.7 million previously while the oil and gas support services division's revenue slipped to RM43.9 million from RM46.9 million posted in the previous year corresponding quarter, SILK said. -- Bernama

ECS up on getting iPad distribution rights

ECS ICT Bhd, a Malaysian distributor of computer-related products, rose to a record in Kuala Lumpur trading after it was awarded distribution rights for Apple Inc.'s IPad in the Southeast Asian nation.

The share climbed 2 per cent to RM1.57 at 9:07 a.m. local time, set for its highest close since the company was listed in April 2010. -- Bloomberg

Hwang-DBS Q2 pre-tax profit rises to RM33m

Hwang-DBS (Malaysia) Bhd's pre-tax profit for the second quarter ended Jan 31, 2011 rose to RM32.78 million from RM24.496 million in the same quarter of 2010. Its revenue increased to RM109.608 million from RM86.377 million previously.

The company's pre-tax profit for the first six months of its financial period, recorded an increase of 32 per cent to RM62.853 million from RM47.625 million previously, while revenue increased 19 per cent to RM205.974 million from RM173.366 million in the same period last year.

In a filing to Bursa Malaysia, Hwang-DBS said its revenue was largely contributed by an increase in interest income derived from treasury and stockbroking activities.

Going forward, the Group will strive to tap into the growing economy in Cambodia and expand the loan portfolio and deposit base of its commercial banking business.

It said the company expects the Group to turn in satisfactory results in the second half of the financial year ending July 31, 2011. -- Bernama

HELP Q1 pre-tax profit up 10pc

HELP International Corp Bhd posted a higher pre-tax profit of RM4.1 million for the first quarter ended Jan 1, 2011, up 10 per cent, compared with RM3.8 million in the same quarter last year.

Its revenue rose 3.3 per cent to RM24.3 million from RM23.5 million previously.

In an announcement to Bursa Malaysia, Help said it remained confident that its financial performance for this year, would be satisfactory.

It also said that it is constantly on the lookout to further expand its presence in the Indonesian market and build more partnerships in the Asean region. -- Bernama

TA Ent records higher Q4 pre-tax profit

TA Enterprise Bhd achieved a higher pre-tax profit of RM50.41 million in its fourth quarter ended Jan 31, 2011, compared to the RM39.84 million recorded in the previous corresponding period.

Revenue rose to RM167.74 million from RM124.45 million previously.

In a filing to Bursa Malaysia today, the group said its improved performance was mainly due to higher contribution from its stockbroking division and TA Global Group.

As the local economy has been growing steadily and there is ample liquidity in the financial system, it is expected that the FBM KLCI will rise for the coming year.

The stockbroking division should benefit from such favourable circumstances, it added.

However, for its financial year ended Jan 31, 2011, it recorded a lower pre-tax profit of RM136.1 million, compared to RM144.99 million achieved in the previous corresponding year.

Revenue rose to RM606.93 million from the RM437.28 million recorded previously.-- BERNAMA

OSK bullish on Malaysia glovemakers

Rubber glove manufacturers, Top Glove Corp Bhd, Supermax Corp Bhd and Kossan Rubber Industries Bhd continue to remain OSK Research's top picks, given the stocks resilience despite declining latex prices.

Top Glove and Supermax will be the biggest beneficiaries of lower latex prices while Kossan, which has a balanced product mix of about 60 per cent natural rubber and 40 per cent nitrile glove, was always being liked for being the most resilient stock in the industry.

'We maintain an overweight, with our top picks being Top Glove, Supermax and Kossan, which we expect their share prices to recover, once latex prices begin on a downtrend and the US dollar strengthens against the ringgit,' it said in a research note today. - Bernama

Hai-O Q3 pre-tax profit shrinks to RM9m

Hai-O Enterprise Bhd's pre-tax profit for the third quarter ended Jan 31, 2011 declined to RM9 million from RM25.2 million in the same quarter last year.

Revenue fell to RM57.6 million from RM131.3 million previously.

In a filing to Bursa Malaysia, Hai-O said the drop in revenue and pre-tax profit was mainly due to lower contributions by its principal subsidiary, the multi-level marketing division. -- Bernama

Tenaga takes 22pc stake in Integrax

UTILITY giant Tenaga Nasional Bhd has acquired 66.538 million shares or 22.12 per cent of port operator and marineservice provider, Integrax Bhd, for RM106.46 million.

Integrax is an investment holding compny while its subsidiaries are principally involved in port operations, marine services, industrial property and mining.

'The strategic acquisition will enable Tenaga to secure the coal handling services for its power plant and enhance the efficiency and operations ofits power station,' said Tenaga in a filing to Bursa Malaysia today.

Tenaga intends to fund the purchase consideration entirely through internally generated funds, it said.

The acquisition will not have any material effect on Tenaga's net assets per share, earnings per share, gearing, share capital and substantial shareholders' shareholding of Tenaga Nasional. - BERNAMA

Ingress Corp rakes in higher pre-tax profit

INGRESS Corp Bhd posted a higher pre-tax profit of RM31.6 million for the financial year ended Jan 31, 2011, from RM19.6 million recorded in the same period last year.

Company revenue rose to RM761.5 million, from RM650.6 million previously, and earning per share increased to 22.31 sen, from 14.08 sen earlier, it said in an announcement to Bursa Malaysia today.

For the fourth quarter ended Jan 31, 2011, pre-tax profit declined toRM4.1 million, from RM4.4 million chalked up in the same quarter last year.

However, revenue increased to RM189.4 million, from RM162.8 million previously, while earning per share decreased to 2.74 sen from 3.35 sen.

The company expects the automotive division to improve further in the coming years.

'We also expect the power engineering and project division to improve given the existing and recently awarded projects and the government's initiative under the transformation programme,' it said. - BERNAMA

Sarawak stocks jump ahead of state election

Sarawak-based construction companies, led by Encorp Bhd, rallied in Kuala Lumpur trading ahead of elections in Malaysia's eastern state.

Encorp jumped 11.7 per cent to 90.5 sen at 3:40 p.m. local time, set for its biggest gain since October 2009. Zecon Bhd rose 8.7 per cent to 50 sen, Hock Seng Lee Bhd increased 2.8 per cent to RM1.82, Naim Holdings Bhd climbed 4.6 per cent to RM3.22, and Cahya Mata Sarawak Bhd rose 3.9 per cent to RM2.69.

Investors should use the Sarawak polls to accumulate shares of construction companies in the state as some major contracts may be awarded in coming weeks, Wong Chew Hann, an analyst at Maybank Investment Bank Bhd. said in a report today, citing Hock Seng Lee as his top pick. -- Bloomberg

KL stocks expected to rally in Q2: CIMB

Stocks on Bursa Malaysia are expected to rally in the second quarter of 2011 despite global uncertainty stemming from political turmoils in the Middle East and North Africa as well as Japan's devastating earthquake and tsunami.

CIMB Investment Bank Bhd's senior analyst Nigel Foo Chek Keng said the local market had its own cycle and was not affected by the events.

After peaking in January and a period of consolidation thereafter, the bourse would likely bottom out by end of this month, he said.

'The market discounts everything six months to one year ahead.

'At the peak of the economy, the market starts to grow and at the worse of economy, the market starts to rally,' he told reporters after delivering a talk on 'Market Outlook for Second Quarter 2011 and Beyond' at the Bursa Malaysia's Market Chat 2010/11 in Kuala Lumpur today.

Going forward, Foo said buying interest would continue to focus on rubber glove, timber and oil and gas stocks.

He said this year's FTSE Bursa Malaysia KLCI target was 1,700 points.

Market Chat 2010/11 is part of a retail investment programme by Bursa Malaysia to encourage greater retail participation in the capital market. -- Bernama

Pharmaniaga MTO shares priced at RM5.75

Boustead Holdings Bhd today announced a mandatory takeover offer (MTO) of all remaining shares in Pharmaniaga Bhd not already owned by the company, for a cash offer price of RM5.75 per share.

In a filing to Bursa Malaysia, it said the sale and purchase agreement (SPA) with regard to the proposed acquisition of equity in Pharmaniaga has become unconditional and as a result, it now owned 92.868 million Pharmaniaga shares representing 86.81 per cent of its issued and paid-up share capital.

Boustead had entered into the SPA last June with the intention of holding a controlling interest in Pharmaniaga as it was optimistic of the latter's potential.

The company also intends to retain the listing status of Pharmaniaga. -- Bernama

Results: Kencana's Q2 profit climbs

Kencana Petroleum Bhd pre-tax profit for the second quarter ended January 31, 2011 rose by 49 per cent to RM61.99 million from RM41.73 million in the same quarter last year.


SP Setia Bhd pre-tax profit for the first quarter ended Jan 31, 2011 rose to RM87.40 million from RM52.35 million in the same quarter last year. - Bernama

AmResearch stays 'neutral' on telco sector

The telecommunication sector's performance will be sustained by the lack of decent yielding big capitalised stocks on Bursa Malaysia following the privatisation of Plus Expressways Bhd.

Against this backdrop, Amresearch remained neutral on the sector.

'We propose a switch of focus to our top pick in the sector, Axiata, from Telekom which we dowgraded recently,' it said in a research note today. -- Bernama

AmResearch 'overweight' on timber sector

Ta Ann Holdings Bhd led timber stocks higher in Kuala Lumpur trading after AmResearch Sdn Bhd reported that as much as 40 per cent of Japan's plywood production was destroyed or signficantly damaged in last week's earthquake and tsunami.

This will increase demand for imports from Malaysia as Japan rebuilds, AmResearch said in a report today.

Ta Ann climbed 6.4 per cent to RM5.30 at 11:32 a.m., set for its biggest gain since June 2009.

WTK Holdings Bhd rose 2.6 per cent to RM1.58 and Jaya Tiasa Holdings Bhd increased 3.9 per cent to RM5.30.-- Bloomberg

Malaysia set to grow 5.3pc this year: MIDF

Malaysia is poised to grow at 5.3 per cent this year even as the economic picture for Japan following the recent earthquake remains less clear, says MIDF Research today.

Although it is premature to sum-up the total disaster, MIDF said it believes that any impact on Malaysia would be no more than a 'blip'.

MIDF said the Japanese government is expected to announce an additional budget that could exceed the 3.0 trillion yen for the Kobe earthquake by tapping into the special reserves of 203.8 billion yen in the FY2010 budget for the near-term reconstruction work.

The Japanese economy is also expected to rebound in the second half of this year as a result of the reconstruction work, which will likely commence then.

'Malaysia is poised to benefit from exports when the reconstruction work commences and this will augur well for the timber sector in particular,' the research house said.

During the Kobe earthquake, MIDF said Malaysia's exports to Japan surged 31.6 per cent year-on-year in 1995 and 3.5 per cent year-on-year in 1996, which is much higher than the total exports growth of 20.2 per cent in 1995 and -1.2 per cent in 1996.

'We expect Malaysia's exports to improve when the reconstruction work starts. Hence, at this stage, we have decided to reiterate our GDP forecast of 5.3 per cent and the policy rate to increase by 50 basis points to 3.25 per cent by year-end,' it added. -- Bernama

CIMB keeps FBMKLCI target at 1,700

A one per cent decline in Japan's Gross Domestic Product (GDP) could shave 0.2 percentage points off Malaysia's growth, but this can be compensated by other trading partners and the internal growth engine, according to CIMB Research.

It, however, said Malaysia may benefit from the diversion of production facilities from Japan as part of global supply chain risk management.

However, CIMB Research warned that a full meltdown of the nuclear plants in Japan would reduce Malaysia's GDP growth estimate of 5.5 per cent for this year between 0.5 and 1.0 per cent via both direct and indirect trade and income effects.

More of the impact is expected to be felt in the second and third quarters although full-year growth is anticipated to be in the positive trajectory.

As for the local stock market, CIMB Research said timber and rubber glove sectors would be the biggest winners.

In contrast, the aviation, gaming and power sector would be the worst hit.

'We maintain our end-2011 KLCI target of 1,700 points and view selling pressure from the convergence of negative developments as a buying opportunities,' it added. - Bernama

Celcom Axiata to triple network capacity

Celcom Axiata Bhd will triple its network capacity by adopting an advanced seamless network mobility initiative under one network platform.

To facilitate the move, Celcom today appointed Erisson and Huawei to supply the latest and Best Radio Access Equipment.
The initiative to build a new world-class mobile network in Malaysia will greatly enhance customers' experience by providing them advanced seamless network mobility, said Chief Executive Officer Datuk Shazalli Ramly.

Speaking at the signing ceremony today, he said the network modernisation exercise, which is Long Term Evolution ready would accommodate the rise in data demand in anticipation of smartphones growth.

Upon the full rollout of the three year project, it will triple Celcom''s network capacity, provide the best service with enhanced data speed of 42 MegaBits per second, superior high definition quality voice service and, wider and more stable coverage.

Celcom, which has set aside an allocation RM1 billion for capital expenditure this year, will spend 60 per cent of that on this network modernisation exercise.

The mobile network service provider has prioritised its national 2G and 3G radio access network modernisation project at all base stations, nationwide.

'As part of Celcom's initiative to upgrade its mobile network, the company will modernise all its existing radio equipment at more than 9,000 2G and 3G base station sites,' Shazalli said adding that, it would deploy about 2,000 new sites utilising the Single RAN solution.

The modernised Celcom network is expected to go live in several phases from mid-year and serve a current customer base of 11 million. -- Bernama

Maybank may revise target for FBM KLCI

Malayan Banking Bhd (Maybank) may revise downwards its forecast of FTSE Bursa Malaysia Kuala Lumpur Composite Index (FBM KLCI) ending 2011 at 1,710 points if the oil price were to touch US$150 per barrel, said Maybank Investment Bank chief executive officer, Tengku Datuk Zafrul Tengku Abdul Aziz.

He said the bank would obviously be looking at what was happening in the market, as well as both in Japan and the Middle East along with developments in this region and if the oil price were to touch US$150, Maybank would definitely have to revise the target downwards.

'With the unrest in the Middle East and North Africa, coupled with the recent earthquake in Japan, sentiment-wise it is quite bad, but for the moment we are still positive about the market.
'We are still overweight on three sectors -- oil and gas, construction and property sectors,' he told reporters after the briefing on Invest Malaysia 2011 here today.

He said the problems at Japan's nuclear power plants following the earthquake would definitely have an impact on oil prices in terms of energy demand from the country because it was one of the largest importers of oil.

'However, it is still too early to calculate the exact amount. We believe oil prices. The quantum is still too early to say, as it depends on the market,' he said.

He said what was happening in Japan would not affect the Malaysian exchange in terms of Japanese investors pulling out from the market, as the Malaysian investor base was broad. -- Bernama

AirAsia, MAS fall on stock downgrades

AirAsia Bhd. and Malaysian Airline System Bhd dropped in Kuala Lumpur trading after their stock ratings were downgraded by HwangDBS Vickers Research Sdn Bhd, which said higher fuel prices will hurt earnings.

Shares of AirAsia, Southeast Asia's largest budget carrier, fell 1.2 percent to RM2.51 at 9:24 a.m. local time. Malaysian Airline lost 1.1 percent to RM1.84. --Bloomberg

MIDF favours plantation stocks

MIDF Research favours plantation stocks such as that of Sime Darby Bhd, IOI Corp Bhd and Kuala Lumpur Kepong Bhd as their sizeable plantation areas would provide a higher potential earnings growth.

MIDF research has also upgraded its recommendation for Kulim (Malaysia) Bhd and Sarawak Oil Palm Bhd from neutral to buy as the fundamentals of these companies remain strong.

Our buy recommendations for all plantation stocks under coverage remain driven by an improvement in yield, as more trees reach maturity and increase in fresh fruit bunches production, with the weather expected to recover in the second half of 2011, it said in a research note today.

The research house has maintained a positive call on plantation stocks and reiterated that the average CPO price for 2011 is forecast at RM3,400 per metric tonne. -- Bernama

WTK leads timber stocks higher

WTK Holdings Bhd led gains among Malaysian timber stocks on speculation they will increase shipments to Japan after an earthquake and tsunami.

WTK Holdings jumped 6.4 per cent to RM1.34, the most in 11 months, in Kuala Lumpur trading at 11:56 a.m., while Ta Ann Holdings Bhd climbed 2.7 per cent to RM4.89 after RHB Research Institute Sdn Bhd said the lumber companies may gain from increased demand for their plywood as Japan rebuilds.

The Southeast Asian nation is the largest exporter of plywood to Japan, which was struck by an 8.9-magnitude temblor and subsequent tsunami on March 11. Bank of Japan Governor Masaaki Shirakawa pledged massive liquidity while the government prepares plans for reconstruction after the quake that may have killed 10,000 people.

Malaysian timber companies will benefit from the expected surge in demand from Japan, RHB analyst Toh Woo Kim wrote in the report. We understand from Japan Lumber Report that the plywood inventory level in Japan is currently low and their domestic plywood production has been curtailed since the second half of 2010 owing to a shortage of log supply.

Japan imported nearly 1.2 million cubic meters of panel products worth RM1.7 billion (US$559 million) in the 11 months ended November last year, representing almost half of Sarawak's total exports, AmResearch Sdn Bhd wrote in a report on March 11.

Japan was the second-largest overall importer of Malaysian goods in January and third-largest exporter to the Southeast Asian nation, Maybank Investment Bank Bhd said in a separate report today.

Malaysia may gain from Japan's higher demand for fuel and rebuilding efforts with Japan being a major buy of Malaysia's liquefied natural gas, crude oil, palm oil and timber, Wong Chew Hann, a Maybank analyst, said in the report. -- Bloomberg

OCBC expects 15pc growth in 2011

OCBC Bank (Malaysia) Bhd is targeting a 15 per cent increase in net profit this year from the RM706 million achieved in 2010.

Chief Executive Officer Jeffrey Chew Sun Teong said the bank was confident of achieving the target following the positive outlook for the country's banking sector.

Domestic consumption and demand are quite healthy, he said when announcing the bank's financial results here today.

OCBC reported a 17 per cent rise in pre-tax profit of RM952 million for the financial year-ended Dec 31, 2010, on the back of a nine per cent increase in revenue to RM1.7 billion.

This performance was underpinned by a strong credit underwriting framework and prudent risk management strategies.

Going forward, Chew said the company would make an aggressive move to increase revenue, from the consumer and treasury segments.

We are working towards a more balanced ratio, ideally 40 per cent of business banking, 40 per cent consumer and 20 per cent treasury, he added.

Currently, the ratios are 57 per cent business banking, 27 per cent consumer and 17 per cent treasury.

Chew said that the company will be investing up to RM54 million to open nine new branches, including five Islamic branches this year. -- Bernama

Foreign investors selling down shares: MIDF

Bursa Malaysia's total market capitalisation held by foreign investors, is estimated to be about 21.5 per cent currently, assuming a net foreign selldown of about RM4 billion since the beginning of the year.

The percentage of its total market capitalisation held by foreign investors was 21.9 per cent at the end of December, MIDF Research said in a note today.

It said foreign investors have been selling down local shares since January, after a bullish start to the year.

Local institutions continued to prop up the market while retailers were still relatively heavy net sellers, MIDF said, adding, gross purchase by local institutions amounted to RM4.5 billion last week, similar to that of the previous week.

'Risk aversion is creeping back into the market. There is too much uncertainty in the world currently for equity investors to be even remotely aggressive,' it said. 'Locally, the market's volatility appears to be increasing by the day,' it added. -- Bernama

Timber companies to benefit from quake: RHB

Malaysian timber companies are likely to benefit from a surge in demand from Japan as the country rebuilds after last week's earthquake and tsunami, RHB Research Institute Sdn Bhd said in a report today.

WTK Holdings Bhd and Ta Ann Holdings Bhd may gain the most as both companies mainly focus on the Japanese market, RHB analyst Toh Woo Kim wrote in the report. Jaya Tiasa Holdings Bhd may also see increased demand, said Toh, maintaining an 'overweight' rating on the sector. -- Bloomberg

George Kent rises on quarterly profit gain

George Kent (Malaysia) Bhd, a water treatment company and supplier of water tanks, rose in Kuala Lumpur trading after profit in the fourth quarter ended January 31 climbed 30 per cent from a year earlier.

The stock advanced 1.7 per cent to RM1.18 at 9:17 a.m. local time. -- Bloomberg

George Kent records higher pretax profit

George Kent (Malaysia) Bhd recorded a higher pre-tax profit of RM11.8 million in the fourth quarter ended Jan 31, 2011, compared to RM8.97 million in the same period last year.

Revenue rose to RM47.92 million from RM41.25 million previously due to higher sales achieved for project related works, it said in a statement today.

For the whole year, the company's pre-tax profit jumped to RM32.75 million, from the RM26.09 million recorded last year.

Revenue surged to RM165.03 million from RM125.06 million previously due to higher sale of meters, original equipment manufacturer products and project related works.

On prospects, it said the company would capitalise on the opportunities arising from the bold initiatives taken by the Malaysian Government to stimulate the economy, which would benefit the private sector.--BERNAMA

IOI Corp leads slide in plantation stocks

IOI Corp fell the most in a month, leading a slide in Malaysian plantation stocks after OSK Research Sdn BHd said palm oil prices are now in a 'downcycle' that will last six to nine months.

The stock dropped 2.5 per cent to RM5.57 at 9:05 a.m. in Kuala Lumpur trading, set for its steepest decline since Feb. 10.

Kuala Lumpur Kepong Bhd lost 1.3 per cent to RM20.60 and Sime Darby Bhd fell 0.8 per cent to RM9.03. -- Bloomberg

Construction stocks downgraded at RHB

Malaysian construction stocks were downgraded to 'neutral' from 'overweight' at RHB Research Institute Sdn Bhd, blaming higher costs and frustration over a lack of progress on proposed national infrastructure projects including new rail lines.

The next round of stocks re-rating will not take place until the market is more sure about the exact timing for contracts to be awarded, particularly a mass rail extension in Kuala Lumpur, Joshua Ng, an analyst at RHB, wrote in a report today.

Construction companies also face increased earnings risk as oil prices climb, Ng said. -- Bloomberg

New Hoong Fatt to expand ops in Indonesia

New Hoong Fatt Holdings Bhd (NHF), the leading automotive replacement parts maker, plans to expand its operations in Indonesia.

In a statement today, NHF said it has identified Indonesia as part of its growth strategy.

NHF is encouraged by the significant growth and developments within the car industry in Indonesia which includes the launch of new vehicle models and a growing commercial vehicle segment, it said.

It said the recent set-up of PT NHF Auto Supplies Indonesia was another step to bring the company closer to its customers. PT NHF Auto Supplies would focus on marketing, distribution and trading of NHF's extensive range of products, it said.

According to the Indonesian Automotive Industry Association (Gaikindo), 2010 vehicle sales in Indonesia surged 65 per cent to 764,710 units from 464,816 units in 2009.

Gaikindo is forecasting the total industry volume for this year to reach between 780,000 and 830,000 units. -- Bernama

MTD Capital accepts takeover offer

MTD Capital Bhd has accepted the unconditional takeover offer by four companies to acquire all the remaining shares in the company.

In a statement today, MTD said Nikvest Sdn Bhd, Alloy Consolidated Sdn Bhd, Alloy Concrete Engineering Sdn Bhd and Alloy Capital Sdn Bhd had offered to acquire the remaining shares that were not already owned for RM11 each in cash.

'The offerors would procure MTD to take the necessary procedures to withdraw its listing status from the official list of Bursa Malaysia.

'In addition, the offerors would within two months beginning today, proceed to invoke Section 222 of the Capital Markets and Services Act 2007 to compulsorily acquire any outstanding offer shares for which valid acceptances have not been received,' it said. -- Bernama

AZRB to complete highway works

Ahmad Zaki Resources Bhd (AZRB) has received the Letter of Acceptance from Public Works Department (JKR) Malaysia to complete the remaining works on the East Coast Highway Project, Phase 2, Terengganu, worth RM145.38 million.

AZRB in statement today said the work is expected to be completed on Aug 26, 2012.

It is expected to contribute positively to the company's earnings and net tangible assets for the financial years ending 2011 and 2012. -- Bernama

Research houses still optimistic on Maxis

Research houses are still optimistic on the outlook of the country's leading integrated communications services provider, Maxis Bhd.

TA Securities, in its research note, has tweaked Maxis'' earnings estimates upwards by five to seven per cent for financial years 2011 and 2012 respectively on positive telecommunications sector outlook and expected data and Internet to drive growth.

Maxis'' net profit for financial year 2010 was within ours and consensus'' estimates, it said.

For the fourth quarter ended Dec 31, 2010, Maxis'' net profit rose 21.3 per cent to RM610 million from RM503 million in the same quarter of 2009 on higher contributions from the non-voice segment and a bigger subscriber base.

Its revenue rose to RM2.31 billion versus RM2.21 billion previously.

Credit Suisse analyst, Foong Wai Loke, said the research house has maintained its ''outperform'' call on the company.

We believe its low-beta and high-yield characteristics make it a good hiding place during times of market uncertainty, he said.

MIDF Research told Bernama it has a ''neutral'' call on Maxis as it did not foresee any earnings surprises in financial year 2011 given that it was operating in an already saturated market.

We understand that the mobile penetration rate in Malaysia currently stands approximately 117 per cent.

We believe that the mobile domestic market will become more competitive, as evident in the decline of average revenue per user, it said.

However, MIDF Research believed that an area for growth for Maxis would be in non-voice revenue, or specifically in data and mobile Internet, especially with the popularity of smartphones.

The research houses expected Maxis price to range from RM4.60 and RM6.10. -- Bernama

DiGi looking to work with new retail partners

DiGi Telecommunications Sdn Bhd is looking to team up with new retail partners in its efforts to expand its newly available permission-based mobile advertising service called DiGi iDeal.

This is done through its partnership with Out There Media, the global leader in mobile advertising whose multi-channel mobile advertising marketplace programme, Mobucks(TM) forms the technological platform for DiGi iDeal.

"We are very excited to be announcing our partnership with DiGi, which further underlines our faith in the Malaysian market," said chief executive officer of Out There Media, Kerstin Trikalitis, in a statement today.

DiGi iDeal is designed to empower customers to opt in for specific retail information of interest at zero cost.

This simple and convenient mobile advertising service allows customers to pick and choose the type of advertising they wish to receive on their mobile phones according to their preference, interests and needs.--Bernama

Mudajaya shares see bright outlook

SHARES of construction company, Mudajaya Group Bhd, opened 10 sen higher at RM4.80 following its proposed corporate exercises involving a 1-for-3 bonus issue and employees share option scheme.

At 12.30pm, its share rose 17 sen to RM4.87.

OSK Research said it expected Mudajaya share price to run up today following the announcement of the bonus issue.

It maintained its "buy" call on Mudajaya with a target price of RM7.44.

In a research note today, OSK said the company remained one of its top sector picks.

"The immediate term catalyst would be the award of the RM5 billion Janamanjung engineering, procurement, construction and commissioning contract," it said.

Mudajaya was expected to participate in the civil portion potentially worth RM800 million to RM1,000 million. -- BERNAMA

Maxis Q4 profit climbs 21pc

Maxis Bhd, the country's largest mobile operator, ended its financial year with a bang, by posting its best-ever quarterly revenue and earnings before interest, tax, depreciation and amortisation (Ebitda).

For the fourth quarter ended December 31, 2010, the company posted RM610 million in net profit, RM2.3 billion in revenue and RM1.17 billion in Ebitda. It also maintained its Ebitda margin at the 50 per cent level.

During the quarter, it added 429,000 new customers to end the year with 13.95 million customers, which included more than 10 million prepaid subscribers.

The company said it is hopeful to see revenue growing mid-single digit this year, and subscriber base to expand by high-single digit.

Maxis, which spent RM1.4 billion in capital expenditure (capex) in 2010, is also expected to spend RM1.4 billion on capex this year. Most of the capex will be used for expansion of 3G network and fixed-line infrastructure.

Results: EONCap Q4 net rises

EON Capital Bhd fourth-quarter net income jumped to RM100.9 million from RM61.6 million a year earlier.

Atis Corporation Bhd chalked up a pre-tax profit of RM31.51 million for the fourth quarter ended December 31, 2010, up from RM31.23 million registered the same period in 2009.

Xidelang Holdings Ltd recorded a higher pre-tax profit of RM107.06 million for the financial year ended December 31, 2010 compared with RM94.85 million chalked up in 2009.

Salcon Bhd reported a higher pre-tax profit of RM37.224 million for the financial period ended December 31, 2010 from RM33.458 million previously.

Mulpha International Bhd chalked up a lower pre-tax profit of RM55.126 million for the fourth quarter ended December 31, 2010 from RM61.371 million registered in the same quarter of 2009.

KandN Kenanga Holdings Bhd recorded a pre-tax loss of RM27.88 million for the fourth quarter ended December 31, 2010, compared to a pre-tax profit of RM14.54 million in the previous corresponding quarter.

JCY International Bhd pre-tax profit fell to RM7.555 million for its first quarter ended December 31, 2010 compared with RM77.788 million in the same quarter in 2009.

Multi Sports Holdings Ltd pre-tax profit for its financial year ended Decemver 31, 2010 rose to RM77.583 million from RM61.531 million in the same period of 2009.

Bina Puri Holdings Bhd chalked-up a pre-tax profit of RM14.6 million for the financial year ended December 31, 2010 from RM11.5 million recorded in 2009.

Bandar Raya Developments Bhd raked in a pre-tax profit of RM150.8 million for the financial year ended December 31, 2010, down three per cent from RM155.7 million chalked up in 2009.

United Malayan Land Bhd pre-tax profit for its financial year ended December 31, 2010 rose to RM74.33 million from RM62.91 million in the same period of 2009

Time dotCom Bhd recorded its strongest financial performance to date by posting a profit before tax of RM88.9 million for the year ended December 31, 2010 from RM33.1 million in 2009.

POS Malaysia Bhd recorded a decrease in pre-tax profit for the year ended December 31, 2010, taking into account two major impairment provisions.

United Malayan Land Bhd pre-tax profit for its financial year ended December 31, 2010 rose to RM74.33 million from RM62.91 million in the same period of 2009. -- Bloomberg/Bernama