CIMB Research is bullish on the performance of the properties sector for 2011 after hitting a record transaction of RM107.44 billion last year.
It said the potential re-rating catalysts for the sector are newsflow on landbanking, strong sales from most developers and accelerating earning growth.
'We remain bullish on the property sector, especially the residential properties, as house prices are likely to trend higher and volumes should scale new highs,' it said in a research note today.
CIMB Research said the price direction was determined by major cycles and negative external events such as the Asian and global financial crisis.
It said the cycle was currently in the property sector's favour.
Hence, the research house maintained its 'overweight' call on the
sector for 2011, with Mah Sing Group Bhd topping its list as the best-performing property stock year-to-date. - Bernama
Friday, April 29, 2011
DiGi rings in RM331m Q1 net income
DiGi.Com Bhd, a Malaysian mobile- phone operator, said first-quarter net income rose to RM331.4 million, from RM278.3 million ringgit in the same period a year earlier.
Revenue climbed to RM1.43 billion in the three months ended March and the company will propose a dividend of 43 sen per share, according to a Kuala Lumpur stock exchange filing today. -- Bloomberg
Revenue climbed to RM1.43 billion in the three months ended March and the company will propose a dividend of 43 sen per share, according to a Kuala Lumpur stock exchange filing today. -- Bloomberg
Thursday, April 28, 2011
CSC Steel to expand Melaka factory
CSC Steel Holdings Bhd plans to expand its factory in Melaka to supplyhigher value steel and widen its product range.
We are currently studying to expand our factory here in line with the Economic Transformation Plan (ETP) by the goverment, but this will depend on the market, said Group Managing Director Liang Hsiu Chang.
He told this to Bernama after the visit by Deputy Minister of International Trade and Industry Datuk Jacob Dungau Sagan to the factory in Ayer Keroh today.
He, however, did not give details of the plan.
Liang said the company voiced several concerns over the Malaysian metal industry to Jacob and was pleased that the government was looking into the issues for the good of the industry.
The metal industry looks challenging this year with the unstable cost of raw materials like iron ore, so its difficult to target our revenue this year, but for the first quarter we made a profit, he added.
For the financial year ended Dec 31, 2010, CSC Steel posted pre-tax profit of RM94.775 million on a revenue of RM1.034 million compared to a pre-tax profit of RM116.562 million on a revenue of RM869.936 million in 2009. - Bernama
We are currently studying to expand our factory here in line with the Economic Transformation Plan (ETP) by the goverment, but this will depend on the market, said Group Managing Director Liang Hsiu Chang.
He told this to Bernama after the visit by Deputy Minister of International Trade and Industry Datuk Jacob Dungau Sagan to the factory in Ayer Keroh today.
He, however, did not give details of the plan.
Liang said the company voiced several concerns over the Malaysian metal industry to Jacob and was pleased that the government was looking into the issues for the good of the industry.
The metal industry looks challenging this year with the unstable cost of raw materials like iron ore, so its difficult to target our revenue this year, but for the first quarter we made a profit, he added.
For the financial year ended Dec 31, 2010, CSC Steel posted pre-tax profit of RM94.775 million on a revenue of RM1.034 million compared to a pre-tax profit of RM116.562 million on a revenue of RM869.936 million in 2009. - Bernama
MAHB to achieve RM1b earnings early
Malaysia Airports Holdings Bhd (MAHB) may achieve its earnings before interest, taxation, depreciation and amortisation (EBITDA) target of RM1 billion earlier than 2014.
'We hope so, and it depends on this year's performance and next year's,' managing director Tan Sri Bashir Ahmad Abdul Majid told reporters after the company's 12th annual general meeting today.
In MAHB's Annual Report 2010, he said commercial development would be the main driver to the group achieving its EBITDA target.
Under the plan, the company should have at least 60 per cent of its revenue come from commercial business through optimising current retail space and focusing on creating new commercial space to attract customers and drive sales.
The company would also provide incentives to attract new airlines to increase both aircraft and passenger related revenue in order to achieve RM3.2 billion in revenue by 2014, Bashir said.
Meanwhile, MAHB chairman Tan Sri Dr Aris Othman said the company was anticipating further changes in the industry landscape following the liberalisation of intra-ASEAN air services agreements and airlines' route expansion.
He said that with the growth of low cost airlines in the region, the company was already seeing increased flights in its airports to regional destinations in other countries.
'Therefore, our key challenge is to ensure that we provide adequate capacity at our airports to cater the expected growth in traffic,' he said.
MAHB now expected passenger traffic to grow to 72 million by 2014 as its earlier target of 60 million could be achieved this year, he added. - Bernama
'We hope so, and it depends on this year's performance and next year's,' managing director Tan Sri Bashir Ahmad Abdul Majid told reporters after the company's 12th annual general meeting today.
In MAHB's Annual Report 2010, he said commercial development would be the main driver to the group achieving its EBITDA target.
Under the plan, the company should have at least 60 per cent of its revenue come from commercial business through optimising current retail space and focusing on creating new commercial space to attract customers and drive sales.
The company would also provide incentives to attract new airlines to increase both aircraft and passenger related revenue in order to achieve RM3.2 billion in revenue by 2014, Bashir said.
Meanwhile, MAHB chairman Tan Sri Dr Aris Othman said the company was anticipating further changes in the industry landscape following the liberalisation of intra-ASEAN air services agreements and airlines' route expansion.
He said that with the growth of low cost airlines in the region, the company was already seeing increased flights in its airports to regional destinations in other countries.
'Therefore, our key challenge is to ensure that we provide adequate capacity at our airports to cater the expected growth in traffic,' he said.
MAHB now expected passenger traffic to grow to 72 million by 2014 as its earlier target of 60 million could be achieved this year, he added. - Bernama
Amway, Tenaga to gain from ringgit rise: RHB
Amway (Malaysia) Holdings Bhd, power utility Tenaga Nasional Bhd and media companies are among stocks that will gain as the strengthening ringgit lowers their dollar-denominated costs, according to RHB Research Institute Sdn Bhd.
The ringgit's strength is 'negative' for exporters such as Unisem Bhd. and oil and gas companies that are exposed to overseas contracts, Yap Huey Chiang, an analyst at RHB, wrote in a report today. -- Bloomberg
The ringgit's strength is 'negative' for exporters such as Unisem Bhd. and oil and gas companies that are exposed to overseas contracts, Yap Huey Chiang, an analyst at RHB, wrote in a report today. -- Bloomberg
AirAsia rises on maiden dividend plan
AirAsia Bhd, Southeast Asia's biggest budget airline, rose to its highest level in more than two months in Kuala Lumpur trading after saying it will pay an inaugural dividend of 3 sen per share.
The stock added 1.1 per cent to RM2.76 at 9:24 a.m. local time, set for its highest close since Feb. 21. -- Bloomberg
The stock added 1.1 per cent to RM2.76 at 9:24 a.m. local time, set for its highest close since Feb. 21. -- Bloomberg
Wednesday, April 27, 2011
TH Plantations sets aside RM150m for CAPEX
TH Plantations Bhd (THP), which is 67.9 per cent owned by Lembaga Tabung Haji, has set aside RM150 million in capital
expenditure (capex) for plantation development and to part finance the construction of a RM70 million palm oil mill in Sarawak.
Chief Executive Officer Datuk Zainal Azwar Zainal Aminuddin said the plantation development would include the planting and replanting of oil palm on its current hectarage. In 2007, THP acquired 10,000 hectares of land in Sarawak.
'Of the 10,000 hectares, 2,000 hectares will come into maturity this year and this would contribute towards achieving our targets.
'To cater for the requirement, we are constructing a 60 metric tonne palm oil mill which will be commissioned in 2012.
'About forty per cent of this year's capex would be set aside for the palm oil mill and that explains why this year's capex is on the high side.
'The remaining amount would come from next year's capex,' Zainal told Bernama after a press conference here today.
Currently, THP's total landbank stood at 39,113 hectares, of which, 96 per cent was planted with oil palm. It planned to increase the current land bank size to 50,000 hectares by 2012.
The company also managed Tabung Haji's 120,199 hectares of oil palm plantation.
Speaking at a press conference earlier, after the company's annual general meeting, Zainal said the company targeted to achieve 504,901 metric tonnes of fresh fruit bunches (FFB) this year compared with 463,949 metric tonnes produced last year.
It also aimed to increase yield to 22.03 metric tonnes per hectare compared with last year's output of 20.58 metric tonnes per hectare.
'We are not satisfied with the current yield, however, we are upbeat over the prospects of achieving higher yields this year,' he added.
On palm oil prices, Zainal said THP targeted a budgetted price of RM2,800 per tonne for the year.
'But as of today, the price is hovering around RM3,000 per tonne,' he said, adding that, hypothetically, revenue for the current financial year could reach RM420 million, from RM365.97 million, raked in last year if prices averaged around RM3,400 this year.
THP today declared its highest dividend payout of 12.5 sen per share, less tax, for the financial year ended Dec 31, 2010 against 8.5 sen per share declared previously.
It will pay out RM45.8 million to members, up from RM31.1 million paid out for 2009.
Zainal also said THP has shortlisted several parcels of land for acquisition in Sabah and Sarawak, Indonesia, Kalimantan and Sumatera.
'We hope to make an announcement by end-June,' said Zainal. -- Bernama
expenditure (capex) for plantation development and to part finance the construction of a RM70 million palm oil mill in Sarawak.
Chief Executive Officer Datuk Zainal Azwar Zainal Aminuddin said the plantation development would include the planting and replanting of oil palm on its current hectarage. In 2007, THP acquired 10,000 hectares of land in Sarawak.
'Of the 10,000 hectares, 2,000 hectares will come into maturity this year and this would contribute towards achieving our targets.
'To cater for the requirement, we are constructing a 60 metric tonne palm oil mill which will be commissioned in 2012.
'About forty per cent of this year's capex would be set aside for the palm oil mill and that explains why this year's capex is on the high side.
'The remaining amount would come from next year's capex,' Zainal told Bernama after a press conference here today.
Currently, THP's total landbank stood at 39,113 hectares, of which, 96 per cent was planted with oil palm. It planned to increase the current land bank size to 50,000 hectares by 2012.
The company also managed Tabung Haji's 120,199 hectares of oil palm plantation.
Speaking at a press conference earlier, after the company's annual general meeting, Zainal said the company targeted to achieve 504,901 metric tonnes of fresh fruit bunches (FFB) this year compared with 463,949 metric tonnes produced last year.
It also aimed to increase yield to 22.03 metric tonnes per hectare compared with last year's output of 20.58 metric tonnes per hectare.
'We are not satisfied with the current yield, however, we are upbeat over the prospects of achieving higher yields this year,' he added.
On palm oil prices, Zainal said THP targeted a budgetted price of RM2,800 per tonne for the year.
'But as of today, the price is hovering around RM3,000 per tonne,' he said, adding that, hypothetically, revenue for the current financial year could reach RM420 million, from RM365.97 million, raked in last year if prices averaged around RM3,400 this year.
THP today declared its highest dividend payout of 12.5 sen per share, less tax, for the financial year ended Dec 31, 2010 against 8.5 sen per share declared previously.
It will pay out RM45.8 million to members, up from RM31.1 million paid out for 2009.
Zainal also said THP has shortlisted several parcels of land for acquisition in Sabah and Sarawak, Indonesia, Kalimantan and Sumatera.
'We hope to make an announcement by end-June,' said Zainal. -- Bernama
Ancom Q3 profit rises to RM12m
Ancom Logistics Bhd's pre-tax profit for the third quarter financial period ended February, 28, 2011, rose to RM12
million from RM78,000 recorded in the previous corresponding quarter. Revenue fell to RM13.9 million from RM14 million previously.
In a statement today, Ancom said the increase in pre-tax profit was mainly due to the completion of its restructuring scheme, which resulted in a RM10.98 million one-off gain on sale of the group's property.
For the nine months period, Ancom's pre-tax profit rose to RM14.4 million from RM4.4 million while revenue jumped to RM45.5 million from RM43.8 million previously. -- Bernama
million from RM78,000 recorded in the previous corresponding quarter. Revenue fell to RM13.9 million from RM14 million previously.
In a statement today, Ancom said the increase in pre-tax profit was mainly due to the completion of its restructuring scheme, which resulted in a RM10.98 million one-off gain on sale of the group's property.
For the nine months period, Ancom's pre-tax profit rose to RM14.4 million from RM4.4 million while revenue jumped to RM45.5 million from RM43.8 million previously. -- Bernama
Nylex posts lower Q3 pre-tax of RM4.3m
Nylex (Malaysia) Bhd registered a lower pre-tax profit of RM4.351 million for third quarter ended Feb 28, 2011, compared to RM10.116 million in the same period last year.
Its revenue eased slightly to RM295.378 million from RM295.527 million previously.
'The lower earnings were due to an oversupply situation for some of our products and more intense competition in the regional markets,' Nylex said in a filing to Bursa Malaysia, today.
For the nine months ended Feb 28, 2011, the company recorded a lower revenue of RM834.7 million, down 9.8 per cent from RM925.4 million in the previous corresponding period.
The decrease in its revenue was mainly due to lower sales contribution from the Industrial Chemical division. -- Bernama
Its revenue eased slightly to RM295.378 million from RM295.527 million previously.
'The lower earnings were due to an oversupply situation for some of our products and more intense competition in the regional markets,' Nylex said in a filing to Bursa Malaysia, today.
For the nine months ended Feb 28, 2011, the company recorded a lower revenue of RM834.7 million, down 9.8 per cent from RM925.4 million in the previous corresponding period.
The decrease in its revenue was mainly due to lower sales contribution from the Industrial Chemical division. -- Bernama
KFC to open 25 outlets in 2011
KFC Holding (Malaysia) Bhd will open 25 new outlets in Malaysia by year-end at a cost of RM45 million.
Managing Director Jamaludin Md Ali said 10 out of the 25 outlets would have drive-thru service. KFC which operates 515 outlets now opened 40 new outlets last year.
'For Malaysia, we estimate each outlet to cost around RM1 million
while for the drive-thru outlet, it will cost between RM2 milion and RM3 million each,' he told reporters after the company's annual general meeting here today.
Meanwhile, Jamaludin said KFC was looking at adding nine outlets in India, which would bring the total number of KFC outlets operating there to 17 by December. -- Bernama
Managing Director Jamaludin Md Ali said 10 out of the 25 outlets would have drive-thru service. KFC which operates 515 outlets now opened 40 new outlets last year.
'For Malaysia, we estimate each outlet to cost around RM1 million
while for the drive-thru outlet, it will cost between RM2 milion and RM3 million each,' he told reporters after the company's annual general meeting here today.
Meanwhile, Jamaludin said KFC was looking at adding nine outlets in India, which would bring the total number of KFC outlets operating there to 17 by December. -- Bernama
TH Plantations declares 12.5 sen dividend
TH Plantations Bhd, 67.9 per cent owned by Lembaga Tabung Haji has declared a dividend of 12.5 sen per share less tax at 25 per cent for last year, up from the 8.5 sen per share less tax at 25 per cent declared previously.
It will pay out a total of RM45.8 million to members, an increase from the 2009 payout of RM31.1 million.
The group declared that the rate is the highest divident payout amount ever in the company's history. -- Bernama
It will pay out a total of RM45.8 million to members, an increase from the 2009 payout of RM31.1 million.
The group declared that the rate is the highest divident payout amount ever in the company's history. -- Bernama
Kencana gains on RM208m contract
Kencana Petroleum Bhd, a Malaysian oil and gas services provider, rose the most in three weeks in Kuala Lumpur trading after winning a RM208 million fabrication contract.
The stock added 1.5 per cent to RM2.72 at 9:02 a.m. local time, set for its steepest increase since April 4. -- Bloomberg
The stock added 1.5 per cent to RM2.72 at 9:02 a.m. local time, set for its steepest increase since April 4. -- Bloomberg
Tricubes surges on finances revival plan
Tricubes Bhd, a Malaysian developer of software products, jumped 23.5 per cent in Kuala Lumpur trading on plans to revive its finances.
The stock surged to 31.5 sen at 9:07 a.m. local time, set for its biggest gain since April 21. -- Bloomberg
The stock surged to 31.5 sen at 9:07 a.m. local time, set for its biggest gain since April 21. -- Bloomberg
Yeo Hiap Seng hits 9-month high
Yeo Hiap Seng (Malaysia) Bhd, the beverage maker, rose to a nine-month high in Kuala Lumpur trading after announcing a 36 per cent jump in quarterly profit.
The stock gained 2.4 per cent to RM1.69 at 9:11 a.m., set for its highest close since July 26. -- Bloomberg
The stock gained 2.4 per cent to RM1.69 at 9:11 a.m., set for its highest close since July 26. -- Bloomberg
TH Plantations to grow land bank by 2012
TH Plantations Bhd, a Malaysian palm oil producer, aims to expand its land bank to 50,000 hectares from 39,113 hectares by 2012, according to a company presentation in Kuala Lumpur today. -- Bloomberg
Tuesday, April 26, 2011
Malaysian Pacific's Q3 profit plunge 81pc
Malaysian Pacific Industries Bhd's net profit for the third quarter period ended March 31, 2011 plunged 81 per cent to RM5 million from RM21.1 million previously.
In a filing to Bursa Malaysia today, the company said the huge drop was mainly due to the strengthening ringgit versus the US dollar and rising commodities prices.
It also cited an unfavourable inventory adjustment in the industry.
Nevertheless, the group is confident to record satisfactory results in its financial year ending June 30, 2011, despite the speed of appreciation of the ringgit and the economic impact from the Japan earthquake.
In a filing to Bursa Malaysia today, the company said the huge drop was mainly due to the strengthening ringgit versus the US dollar and rising commodities prices.
It also cited an unfavourable inventory adjustment in the industry.
Nevertheless, the group is confident to record satisfactory results in its financial year ending June 30, 2011, despite the speed of appreciation of the ringgit and the economic impact from the Japan earthquake.
Proton eyes 40K Persona, 84K Saga sales
Proton Holdings Bhd aims to sell 40,000 units of Proton Persona and 84,000 units of the Saga model in the current financial year ending March 31, 2012.
Proton Edar Sdn Bhd general manager (Marketing Division) Sidik Abdul Hamid said the target was achievable as the demand for both models was quite strong.
'For Persona, we are targeting around 3,000 to 4,000 units per month while for Saga, we targeting around 7,000 units per month.
'Last year, Persona model sold about 37,000 units, almost reaching our last year target of 38,000. For the last three months, our sales for the model has improved, with more than 5,000 units sold in the last month alone,' he told reporters at the 'Persona-Better, Undoubtedly' campaign today.
Currently, the best seller model for Proton is Saga, with 72,000 units sold last year, followed by Persona.
On the new campaign, Sidik said Persona will sponsor an outreach programme aimed at inspiring self-confidence among Malaysians.
It has chosen two new ambassadors, namely deejays DJ Lin from Suria FM, Aanantha from THR Raaga apart from its current ambassador Jack Lim, also a radio host and actor, who would take on the role of mentors, sharing their life lessons to guide people from various backgrounds to face their own challenges.
Each of the ambassador will champion their own programmes, based on their life experiences and focus on three different markets for a five-month period. -- Bernama
Proton Edar Sdn Bhd general manager (Marketing Division) Sidik Abdul Hamid said the target was achievable as the demand for both models was quite strong.
'For Persona, we are targeting around 3,000 to 4,000 units per month while for Saga, we targeting around 7,000 units per month.
'Last year, Persona model sold about 37,000 units, almost reaching our last year target of 38,000. For the last three months, our sales for the model has improved, with more than 5,000 units sold in the last month alone,' he told reporters at the 'Persona-Better, Undoubtedly' campaign today.
Currently, the best seller model for Proton is Saga, with 72,000 units sold last year, followed by Persona.
On the new campaign, Sidik said Persona will sponsor an outreach programme aimed at inspiring self-confidence among Malaysians.
It has chosen two new ambassadors, namely deejays DJ Lin from Suria FM, Aanantha from THR Raaga apart from its current ambassador Jack Lim, also a radio host and actor, who would take on the role of mentors, sharing their life lessons to guide people from various backgrounds to face their own challenges.
Each of the ambassador will champion their own programmes, based on their life experiences and focus on three different markets for a five-month period. -- Bernama
Hong Leong opens 2nd Vietnam branch
Hong Leong Bank today launched its Hanoi branch, the second in Vietnam, after Ho Chi Minh in 2009.
The bank also unveiled its first Priority Banking Service in Vietnam, a privileged service designed exclusively for its more affluent customers, Hong Leong Bank said in a statement today.
Group Managing Director Yvonne Chia said the new branch, together with the Priority Banking Service, would enable the bank to appeal to and serve more customers, as well as deepen and strengthen its presence in Vietnam.
'Priority Banking is a big part of consumer banking and this key segment is growing rapidly.
'With our local knowledge and global expertise, we will provide Priority Banking customers a new level of banking experience to support their priorities, help them realise goals and in doing so, enhance lifestyle,' she added.
Hong Leong Bank is the first Southeast Asian bank that was granted a licence to incorporate and operate a 100 per cent wholly-owned commercial bank in Vietnam. - Bernama
The bank also unveiled its first Priority Banking Service in Vietnam, a privileged service designed exclusively for its more affluent customers, Hong Leong Bank said in a statement today.
Group Managing Director Yvonne Chia said the new branch, together with the Priority Banking Service, would enable the bank to appeal to and serve more customers, as well as deepen and strengthen its presence in Vietnam.
'Priority Banking is a big part of consumer banking and this key segment is growing rapidly.
'With our local knowledge and global expertise, we will provide Priority Banking customers a new level of banking experience to support their priorities, help them realise goals and in doing so, enhance lifestyle,' she added.
Hong Leong Bank is the first Southeast Asian bank that was granted a licence to incorporate and operate a 100 per cent wholly-owned commercial bank in Vietnam. - Bernama
Tricubes in talks with govt agencies
Tricubes Bhd, which has been appointed by the government to spearhead the myemail Entry Point Project, to be launched in July is negotiating with several government agencies to come on board as clients.
'As of today, no agencies have signed up. We are in discussions with a few, we are talking to one which is our existing customer and we hope to secure a few customers by year-end,' said Chief Executive Khairun Zainal Mokhtar.
The 1Malaysia Email Project, a private finance initiative, was announced by Prime Minister Datuk Seri Najib Tun Razak as one of the seven new projects under the Economic Transformation Programme (ETP).
The myemail, a voluntary basis sign-up, is for every Malaysian aged 18 and above to have access to a single secured communication channel to e-Government services including income tax assessment and summons notices.
The cost of the e-mail will be less than 50 sen each and it will be borne by the sender.
'If I was the post office, I've, already secured the mail and you will get it, but if you want additional security like encrypt the document, then there will be additional charges the user has to pay.
'However, it's a choice whether they want to get a regular confidential and secured mail with a 50 sen charge or they want it to be encrypted. Every single mail will be charged,' he said.
The mail delivery service, offered through the myemail project, will likely offer payment services over the progression of the project.
Replying to a question whether the government would ensure all government agencies would subscribe to the service since it was a government-initiated project, Khairun said: 'I think that question should be directed to the government agencies and I think we hold it to that.
'The government's role is clearly identified as a facilitator.'
Tricubes, which will be investing about RM50 million in the government-initiated project over the next 10 years, has secured RM5.3 million in initial funding from Malaysia Venture Capital Management Bhd (Mavcap) in the form of convertible securities.
'The balance will be funded through other means of financing; rights issuance; either equity; or debts.
'We have our sponsor MandA Securities Sdn Bhd and we also have a new corporate finance person who has put together a plan for that,' he said.
The GN3-status company has targeted 5.4 million subscribers for the myemail project by year-end and aims to achieve the target via advertising, marketing and other channels of creating awareness.
Tricubes has achieved its first milestone in its regularisation plan set by Bursa Malaysia with the appointment of its sponsor, MandA Securities, in January this year.-- Bernama
'As of today, no agencies have signed up. We are in discussions with a few, we are talking to one which is our existing customer and we hope to secure a few customers by year-end,' said Chief Executive Khairun Zainal Mokhtar.
The 1Malaysia Email Project, a private finance initiative, was announced by Prime Minister Datuk Seri Najib Tun Razak as one of the seven new projects under the Economic Transformation Programme (ETP).
The myemail, a voluntary basis sign-up, is for every Malaysian aged 18 and above to have access to a single secured communication channel to e-Government services including income tax assessment and summons notices.
The cost of the e-mail will be less than 50 sen each and it will be borne by the sender.
'If I was the post office, I've, already secured the mail and you will get it, but if you want additional security like encrypt the document, then there will be additional charges the user has to pay.
'However, it's a choice whether they want to get a regular confidential and secured mail with a 50 sen charge or they want it to be encrypted. Every single mail will be charged,' he said.
The mail delivery service, offered through the myemail project, will likely offer payment services over the progression of the project.
Replying to a question whether the government would ensure all government agencies would subscribe to the service since it was a government-initiated project, Khairun said: 'I think that question should be directed to the government agencies and I think we hold it to that.
'The government's role is clearly identified as a facilitator.'
Tricubes, which will be investing about RM50 million in the government-initiated project over the next 10 years, has secured RM5.3 million in initial funding from Malaysia Venture Capital Management Bhd (Mavcap) in the form of convertible securities.
'The balance will be funded through other means of financing; rights issuance; either equity; or debts.
'We have our sponsor MandA Securities Sdn Bhd and we also have a new corporate finance person who has put together a plan for that,' he said.
The GN3-status company has targeted 5.4 million subscribers for the myemail project by year-end and aims to achieve the target via advertising, marketing and other channels of creating awareness.
Tricubes has achieved its first milestone in its regularisation plan set by Bursa Malaysia with the appointment of its sponsor, MandA Securities, in January this year.-- Bernama
Kencana wins RM208m contract
Malaysia's Kencana Petroleum has won a RM208 million (US$70 million) contract for a substructure development project located off the coast of Sabah in East Malaysia.
Kencana said it will undertake various construction engineering, procurement, fabrication, testing and commissioning works for a substructure at the Kebabangan Northern Hub development project.
The company told the stock exchange on Tuesday that the contract is expected to start contributing positively to its bottomline starting this fiscal year.
The substructure is expected to be completed and delivered within the third quarter of 2012. - Reuters
Kencana said it will undertake various construction engineering, procurement, fabrication, testing and commissioning works for a substructure at the Kebabangan Northern Hub development project.
The company told the stock exchange on Tuesday that the contract is expected to start contributing positively to its bottomline starting this fiscal year.
The substructure is expected to be completed and delivered within the third quarter of 2012. - Reuters
Wah Seong to go into insulation biz
Wah Seong Corporation Bhd and Singapore-based Insituform Technologies Bhd has set up two joint venture companies, via their respective units, to venture into thermal insulation and
related businesses.
Firstly, Wah Seong's unit, Wasco Coating UK Ltd, will set up a joint company with Insituform EandM Holding Company, LLC, named Bayou Wasco Insulation Technologies, LLC, the company said in a filing to Bursa Malaysia today.
Bayou Wasco Insulation's intended business is the application of thermal insulation coating products to pipes or pipelines for projects located mainly in the United States, Gulf of Mexico, Central America and the Carribean Islands.
The second joint venture will be between Wah Seong's Wasco Coating UK Ltd and Insituform Technologies Netherlands BV to form WCU Corrosion Technologies Pte Ltd.
WCU Corrosion Technologies will line new and existing pipelines and passageway with corrosion and abrasion resistant polyethylene pipes.
It also intents to be involved in onshore corrosion protection services, including engineering services, construction, installation, inspection, monitoring and maintenance and related product sales, said the company.
It is eyeing projects located in Australia, Brunei, Cambodia, China, Indonesia, Laos, Malaysia, the Philippines, Singapore, Thailand and Vietnam and their respective territories and territorial waters.
WCU Corrosion Technologies is expected to immediately begin marketing its products and services, the statement added.
The joint ventures are expected to contribute positively to the company's future earnings. - Bernama
related businesses.
Firstly, Wah Seong's unit, Wasco Coating UK Ltd, will set up a joint company with Insituform EandM Holding Company, LLC, named Bayou Wasco Insulation Technologies, LLC, the company said in a filing to Bursa Malaysia today.
Bayou Wasco Insulation's intended business is the application of thermal insulation coating products to pipes or pipelines for projects located mainly in the United States, Gulf of Mexico, Central America and the Carribean Islands.
The second joint venture will be between Wah Seong's Wasco Coating UK Ltd and Insituform Technologies Netherlands BV to form WCU Corrosion Technologies Pte Ltd.
WCU Corrosion Technologies will line new and existing pipelines and passageway with corrosion and abrasion resistant polyethylene pipes.
It also intents to be involved in onshore corrosion protection services, including engineering services, construction, installation, inspection, monitoring and maintenance and related product sales, said the company.
It is eyeing projects located in Australia, Brunei, Cambodia, China, Indonesia, Laos, Malaysia, the Philippines, Singapore, Thailand and Vietnam and their respective territories and territorial waters.
WCU Corrosion Technologies is expected to immediately begin marketing its products and services, the statement added.
The joint ventures are expected to contribute positively to the company's future earnings. - Bernama
Small cap companies still relevant: OSK
Small capital companies are still relevant in the current Malaysian market condition, says Head of Research for
OSK Research, Chris Eng.
'Starting from January this year, except in March, the market condition has became more certain and currently is in the positive territory, where you find that the small capital companies have actually outperformed significantly against the general broader market.
'We expected the big capital companies to perform better at first, but the small capital companies have outperformed them for the first four months,' Eng told reporters during the launch of OSK's Top Malaysian Cap Book (50 Jewels) 2011 today.
Meanwhile, OSK Group's Regional Head of Research, Sam Chin, said small capital companies's shares tend to move more slowly in the market with liquidity flows coming in from abroad driven by foreign investors.
'Particularly in Malaysia, they will go for the large capital stocks first. But eventually, the large capital stocks get over-valued.
'The investors then will start to look at mid capital stocks, and then eventually the small capital stocks,' he said.
Chin also said the smaller stocks are also popular among retail investors as they have the so called 'higher beta' than the large capitals' stocks.
'Over a cycle, they tend to move up and down little more than the market movement. Retail investors have taken advantages of this,' he said, adding that they tend to make greater returns by timing their stock buying right.
'Institutional investors also participate in small capital stocks for a very specific reason, which is to out perform each other,' he added. - Bernama
OSK Research, Chris Eng.
'Starting from January this year, except in March, the market condition has became more certain and currently is in the positive territory, where you find that the small capital companies have actually outperformed significantly against the general broader market.
'We expected the big capital companies to perform better at first, but the small capital companies have outperformed them for the first four months,' Eng told reporters during the launch of OSK's Top Malaysian Cap Book (50 Jewels) 2011 today.
Meanwhile, OSK Group's Regional Head of Research, Sam Chin, said small capital companies's shares tend to move more slowly in the market with liquidity flows coming in from abroad driven by foreign investors.
'Particularly in Malaysia, they will go for the large capital stocks first. But eventually, the large capital stocks get over-valued.
'The investors then will start to look at mid capital stocks, and then eventually the small capital stocks,' he said.
Chin also said the smaller stocks are also popular among retail investors as they have the so called 'higher beta' than the large capitals' stocks.
'Over a cycle, they tend to move up and down little more than the market movement. Retail investors have taken advantages of this,' he said, adding that they tend to make greater returns by timing their stock buying right.
'Institutional investors also participate in small capital stocks for a very specific reason, which is to out perform each other,' he added. - Bernama
Trading in EONCap picks up
Trading in Eon Capital Bhd (EONCap) seems to have picked up steam the past four trading days on the main market of Bursa Malaysia.
The market was rife with speculation that the China Construction Bank (CCB) was keen to acquire a stake in the bank and this was supported by a foreign news agency report which quoted sources with direct knowledge of the possible acquisition.
As of 11.25am, EONCap shares were 0.28 per cent or two sen higher at RM7.09 with 431,000 shares exchanging hands.
On Monday, 2.657 million shares were traded and last Friday, 1.5 million shares exchanged hands, with the counter remaining unchanged at RM7.07 on both days.
OSK Research, on a bilateral perspective, said the acquisition would benefit local banks in gaining smoother regulatory approval and support to expand into China, hence further strengthening financial and economic integration with China.
It said there was a possibility Bank Negara Malaysia may consider CCB as a potential suitor for a stake in EONCap if it were to consider China's fast expanding economic links with the Asean region.
CCB is the second largest bank in China and the second largest by market capitalisation in the world with total assets, loans and deposits amounting to RM5.1 trillion, RM2.6 trillion and RM4.2 trillion, respectively.
Meanwhile, the Hong Leong Bank offer for Eon Cap has been pending for more than a year with the High Court decision expected soon.
'With CCB's interest only at a very preliminary stage, we think it is highly unlikely that BNM or any of the relevant parties involved would want to jeopardise the deal.
'We continue to believe that the merger of EONCap and Hong Leong Bank will certainly place the merged entity on a stronger footing to compete in a more liberalised domestic banking environment,' it said. -- Bernama
The market was rife with speculation that the China Construction Bank (CCB) was keen to acquire a stake in the bank and this was supported by a foreign news agency report which quoted sources with direct knowledge of the possible acquisition.
As of 11.25am, EONCap shares were 0.28 per cent or two sen higher at RM7.09 with 431,000 shares exchanging hands.
On Monday, 2.657 million shares were traded and last Friday, 1.5 million shares exchanged hands, with the counter remaining unchanged at RM7.07 on both days.
OSK Research, on a bilateral perspective, said the acquisition would benefit local banks in gaining smoother regulatory approval and support to expand into China, hence further strengthening financial and economic integration with China.
It said there was a possibility Bank Negara Malaysia may consider CCB as a potential suitor for a stake in EONCap if it were to consider China's fast expanding economic links with the Asean region.
CCB is the second largest bank in China and the second largest by market capitalisation in the world with total assets, loans and deposits amounting to RM5.1 trillion, RM2.6 trillion and RM4.2 trillion, respectively.
Meanwhile, the Hong Leong Bank offer for Eon Cap has been pending for more than a year with the High Court decision expected soon.
'With CCB's interest only at a very preliminary stage, we think it is highly unlikely that BNM or any of the relevant parties involved would want to jeopardise the deal.
'We continue to believe that the merger of EONCap and Hong Leong Bank will certainly place the merged entity on a stronger footing to compete in a more liberalised domestic banking environment,' it said. -- Bernama
Alam Maritim rises on RM25m workboat deal
Alam Maritim Resources Bhd, a Malaysian oil and gas services provider, rose the most in six days in Kuala Lumpur trading after winning contracts valued at RM24.8 million (US$8.3 million) to supply five workboats.
The stock climbed 1.8 per cent to 1.16 ringgit at 9:02 a.m. local time, set for its biggest gain since April 20. -- Bloomberg
The stock climbed 1.8 per cent to 1.16 ringgit at 9:02 a.m. local time, set for its biggest gain since April 20. -- Bloomberg
Vitrox proposes bonus share issue
Vitrox Corp proposed a one-for-two bonus share issue to increase the company's paid-up share capital, according to a Kuala Lumpur stock exchange filing late yesterday.
The exercise will increase the share capital to RM23.3 million from RM15.5 million, the statement said.
The rose to a record in Kuala Lumpur trading after announcing a bonus share issue, surging 9.6 per cent to RM2.29 at 9:26 a.m. local time. -- Bloomberg
The exercise will increase the share capital to RM23.3 million from RM15.5 million, the statement said.
The rose to a record in Kuala Lumpur trading after announcing a bonus share issue, surging 9.6 per cent to RM2.29 at 9:26 a.m. local time. -- Bloomberg
Ta Ann plans 1-for-5 bonus share issue
Ta Ann Holdings Bhd proposed a one-for-five bonus share issue, according to a Kuala Lumpur stock exchange filing late yesterday.
The issue will be implemented by capitalizing as much as 51.5 million ringgit from the company's share premium and retained earnings reserves, the statement said.
The issue will be implemented by capitalizing as much as 51.5 million ringgit from the company's share premium and retained earnings reserves, the statement said.
Tower REIT Q1 pre-tax profit rises to RM8.5m
Tower Real Estate Investment Trust's pre-tax profit for the first quarter ended March 31, 2011, improved to RM8.49 million from RM7.11 million recorded in the same period last year.
Revenue for the period rose to RM12.84 million from RM11.03 million previously following substantial increase in the average occupancy rate of Menara HLA, the company said in a filing to Bursa Malaysia today. -- Bernama
Revenue for the period rose to RM12.84 million from RM11.03 million previously following substantial increase in the average occupancy rate of Menara HLA, the company said in a filing to Bursa Malaysia today. -- Bernama
Monday, April 25, 2011
UMW to invest RM1b to boost production
UMW Toyota Motor Group will invest RM1 billion, over the next three years, to improve quality and production efficiency.
UMW Toyota Motor Sdn Bhd Chairman Tan Sri Asmat Kamaludin said the amount would also be used to further develop its manufacturing facility, Assembly Services Sdn Bhd (ASSB), expand network and build a new centralised stockyard in Bukit Raja.
'For the past five years, UMW Toyota Motor Group invested RM900 million and, out of that amount, RM460 million was utilised by ASSB to improve quality and production efficiency,' he said at ASSB's one millionth production line ceremony officiated by International Trade and Industry Minister Datuk Seri Mustapa Mohamed today.
Meanwhile, UMW Toyota Motor President Ismet Suki said the company would implement overtime cuts and a one-shift operation, beginning today until June 3, due to disruptions in parts supplies from Japan.
'Our commitment to our customers remains topmost in our priority. We are closely monitoring the parts supply situation in Japan on a daily basis and it will recover soon,' he said, adding that the UMW Toyota Motor still maintained a sales target of 90,000 vehicles this year.
UMW Toyota Motor Group is a joint venture between UMW Corporation Sdn Bhd and Japan's Toyota Motor Corporation and Toyota Tsusho Corporation. - Bernama
UMW Toyota Motor Sdn Bhd Chairman Tan Sri Asmat Kamaludin said the amount would also be used to further develop its manufacturing facility, Assembly Services Sdn Bhd (ASSB), expand network and build a new centralised stockyard in Bukit Raja.
'For the past five years, UMW Toyota Motor Group invested RM900 million and, out of that amount, RM460 million was utilised by ASSB to improve quality and production efficiency,' he said at ASSB's one millionth production line ceremony officiated by International Trade and Industry Minister Datuk Seri Mustapa Mohamed today.
Meanwhile, UMW Toyota Motor President Ismet Suki said the company would implement overtime cuts and a one-shift operation, beginning today until June 3, due to disruptions in parts supplies from Japan.
'Our commitment to our customers remains topmost in our priority. We are closely monitoring the parts supply situation in Japan on a daily basis and it will recover soon,' he said, adding that the UMW Toyota Motor still maintained a sales target of 90,000 vehicles this year.
UMW Toyota Motor Group is a joint venture between UMW Corporation Sdn Bhd and Japan's Toyota Motor Corporation and Toyota Tsusho Corporation. - Bernama
Pos to gain from DRB-Hicom: OSK
Pos Malaysia will see an enhanced business and growth following DRB-Hicom Bhd's recent successful bid for a 32.21 per cent stake in it, says OSK Research.
'We see DRB-Hicom, which owns a 70 per cent of Bank Muamalat, as a good fit for Pos Malaysia as the former can leverage on the latter's network to enhance both operations and growth to make it more complete,' it said in a research note today.
It also said that although the offer price was unattractive and not reflective of the value of Pos Malaysia's related land, it still adequately reflects the company's postal business at 14.5x financial year 2011 price earnings ratio.
'Given that we see DRB-Hicom aiming to redevelop Pos Malaysia's land, we maintain our sum of the parts (SOP) derived fair-value of RM4.12, which includes the value of the five land plots directly owned the latter,' said OSK Research.
The acquisition price reflects RM17.3 million that is refundable if Pos Malaysia cannot secure the government's consent for commercial use of land leased to it by Dec 31, 2011, it said.
'While the share price may suffer some selling pressure in the short term, we maintain our 'buy' call on a potential longer term upside, arising from DRB-Hicom unlocking the land value,' OSK Research added. -- Bernama
'We see DRB-Hicom, which owns a 70 per cent of Bank Muamalat, as a good fit for Pos Malaysia as the former can leverage on the latter's network to enhance both operations and growth to make it more complete,' it said in a research note today.
It also said that although the offer price was unattractive and not reflective of the value of Pos Malaysia's related land, it still adequately reflects the company's postal business at 14.5x financial year 2011 price earnings ratio.
'Given that we see DRB-Hicom aiming to redevelop Pos Malaysia's land, we maintain our sum of the parts (SOP) derived fair-value of RM4.12, which includes the value of the five land plots directly owned the latter,' said OSK Research.
The acquisition price reflects RM17.3 million that is refundable if Pos Malaysia cannot secure the government's consent for commercial use of land leased to it by Dec 31, 2011, it said.
'While the share price may suffer some selling pressure in the short term, we maintain our 'buy' call on a potential longer term upside, arising from DRB-Hicom unlocking the land value,' OSK Research added. -- Bernama
Friday, April 22, 2011
HPI Q3 net profits double to RM6.9m
HPI Resources Bhd (HPI) is on track for an outperformance for the financial year ended 31 May 2011 with net profits for its third quarter ended 28 February 2011 doubling to RM6.9 million from RM3.1 million in the previous corresponding quarter.
The leading corrugated packaging manufacturer saw 3Q11 revenues jump 11.6 per cent to RM105.4 million from RM94.5 million previously, in line with higher demand.
The Group's strong bottom line growth was also attributed to its efficient operating cost structure, resulting in group profits before tax growing 137.3 per cent to RM8.4 million from RM3.6 million previously.
The leading corrugated packaging manufacturer saw 3Q11 revenues jump 11.6 per cent to RM105.4 million from RM94.5 million previously, in line with higher demand.
The Group's strong bottom line growth was also attributed to its efficient operating cost structure, resulting in group profits before tax growing 137.3 per cent to RM8.4 million from RM3.6 million previously.
Power demand to grow 4.8pc: MIDF
Electricity demand is expected to firm up in the second half of this year, benefiting from the rollout of projects under the 10th Malaysia Plan and the Economic Transformation Programme (ETP), said MIDF Research.
The research firm said power demand growth is forecast at 4.8 per cent for this year.
In the first half of this year, MIDF said , Tenaga Nasional Bhd's electricity demand grew 3.5 per cent year-on-year in Peninsular Malaysia driven by the commercial and domestic sectors.
However, electricity demand in the second quarter was slower due to the festive season holidays such as Christmas and Chinese New Year, it said in a statement.
HwangDBS Vickers Research is retaining its five per cent demand growth forecast for this year which is in line with the gross domestic product (GDP) growth and management guidance. -- Bernama
The research firm said power demand growth is forecast at 4.8 per cent for this year.
In the first half of this year, MIDF said , Tenaga Nasional Bhd's electricity demand grew 3.5 per cent year-on-year in Peninsular Malaysia driven by the commercial and domestic sectors.
However, electricity demand in the second quarter was slower due to the festive season holidays such as Christmas and Chinese New Year, it said in a statement.
HwangDBS Vickers Research is retaining its five per cent demand growth forecast for this year which is in line with the gross domestic product (GDP) growth and management guidance. -- Bernama
Media sector to prosper this year: OSK
The media sector will continue to prosper in 2011, spurred by factors such as the potential of an early general election and resilient consumer spending, a research house says.
Nielsen Media Research said advertising expenditure (adex) for the first quarter of this year surged 13 per cent year-on-year to RM1.83 billion with spending on three core divisions -- newspapers, television and radio channels.
'The stellar Q111 numbers reinforce our conviction that adex growth may hit multiples of two times to three times of our 2011 GDP growth forecast of 5.8 per cent in view of the impending polls and improving consumer sentiments,' it said.
It maintained an overweight call on the sector thematic factors as the impending general election would be the key catalyst this year.
Newspapers remained the most popular advertising medium at 53.6 per cent adex share, OSK said in a research note today. -- Bernama
Nielsen Media Research said advertising expenditure (adex) for the first quarter of this year surged 13 per cent year-on-year to RM1.83 billion with spending on three core divisions -- newspapers, television and radio channels.
'The stellar Q111 numbers reinforce our conviction that adex growth may hit multiples of two times to three times of our 2011 GDP growth forecast of 5.8 per cent in view of the impending polls and improving consumer sentiments,' it said.
It maintained an overweight call on the sector thematic factors as the impending general election would be the key catalyst this year.
Newspapers remained the most popular advertising medium at 53.6 per cent adex share, OSK said in a research note today. -- Bernama
Thursday, April 21, 2011
TNB net profit down 37pc in Q2
Tenaga Nasional Bhd, the country's largest utility company, posted a net profit of RM631.5 million for the second quarter ended February 28 2011, a 37 per cent decline from the RM1 billion net profit same quarter last year.
The decline was mainly driven by the higher coal prices. For the fiscal second quarter, coal price, including freight cost, is averaged at US$103.8/ metric tonne. In contrast, coal prices for the fiscal first quarter was averaged at about US$80 per metric tonne.
The higher coal prices also hurt its earnings before interest, tax, depreciation and amortisation (Ebitda) margin significantly, from 30.8 per cent first half ended February 28 2010, to 24.8 per cent a year later.
The decline was mainly driven by the higher coal prices. For the fiscal second quarter, coal price, including freight cost, is averaged at US$103.8/ metric tonne. In contrast, coal prices for the fiscal first quarter was averaged at about US$80 per metric tonne.
The higher coal prices also hurt its earnings before interest, tax, depreciation and amortisation (Ebitda) margin significantly, from 30.8 per cent first half ended February 28 2010, to 24.8 per cent a year later.
JTI sees satisfactory performance in 2011
Tobacco manufacturer, JT International Bhd is confident of delivering a satisfactory performance this year, despite the challenges thrown in by a rising illicit cigarette trade.
Managing Director Shigeyuki Nakano said the increasing size of illicit trade will continue to provide negative pressure on the volume of legal cigarettes.
JTI Chairman Datuk Seri Mohd Nadzmi Mohd Salleh in the company's 2010 annual report said that despite the challenges, JTI was committed to strengthen its position in the retail trade and will continue to invest in resources behind its global flagship brands - Winston, Mild Seven, Camel and Salem.
JTI remains confident that with comprehensive and dynamic business strategies, the company is well-positioned to meet its 2011 overall objectives and deliver another credible performance, Mohd Nadzmi said in the report released here today.
JTI recorded a higher pre-tax profit of RM178.9 million in the 2010 financial year, a 24.6 per cent rise over the previous year's RM143.6 million.
Turnover increased to RM1.205 billion from RM1.158 billion.
The company maintained a gross dividend payout of 30 sen per share less 25 per cent tax, representing a gross dividend yield of five per cent. - Bernama
Managing Director Shigeyuki Nakano said the increasing size of illicit trade will continue to provide negative pressure on the volume of legal cigarettes.
JTI Chairman Datuk Seri Mohd Nadzmi Mohd Salleh in the company's 2010 annual report said that despite the challenges, JTI was committed to strengthen its position in the retail trade and will continue to invest in resources behind its global flagship brands - Winston, Mild Seven, Camel and Salem.
JTI remains confident that with comprehensive and dynamic business strategies, the company is well-positioned to meet its 2011 overall objectives and deliver another credible performance, Mohd Nadzmi said in the report released here today.
JTI recorded a higher pre-tax profit of RM178.9 million in the 2010 financial year, a 24.6 per cent rise over the previous year's RM143.6 million.
Turnover increased to RM1.205 billion from RM1.158 billion.
The company maintained a gross dividend payout of 30 sen per share less 25 per cent tax, representing a gross dividend yield of five per cent. - Bernama
Wednesday, April 20, 2011
Nestle records higher Q1 pre-tax profit
Nestle (Malaysia) Bhd registered a higher pre-tax profit of RM191.1 million for the first quarter ended March 31, 2011, from the RM170.62 million in the same quarter last year.
Revenue jumped 16.1 per cent to RM1.2 billion from the RM1.02 billion recorded previously.
In a statement today, Nestle said the robust double-digit growth was driven by both domestic and export sales.
'Exports sales also grew by a double-digit, sustaining the strong
performance achieved last year. The expanding economies of the neighbouring Asian countries played an important role in this encouraging performance,' it added. -- Bernama
Revenue jumped 16.1 per cent to RM1.2 billion from the RM1.02 billion recorded previously.
In a statement today, Nestle said the robust double-digit growth was driven by both domestic and export sales.
'Exports sales also grew by a double-digit, sustaining the strong
performance achieved last year. The expanding economies of the neighbouring Asian countries played an important role in this encouraging performance,' it added. -- Bernama
Alam Maritim a 'buy' says CIMB Research
CIMB Research has upgraded its 'sell' rating on Alam Maritim Resources Bhd to 'buy', saying that the tide has turned for this marine support player.
It said the company's plan to venture into pipe installation was coming to fruition with its 50:50 joint venture with Swiber set to clinch a US$50 million to US$60 million contract relating to Petronas' Sabah Oil and Gas Terminal (SOGT).
Alam Maritim was also teaming up with Sabah state agency Yayasan Sabah on oil and gas related works.
'We upgrade Alam Maritim from sell to buy with the potential catalyst being the announcement of the Petronas SOGT contract and more pipe installaition venture by the company,' the research house said in its research report today.
CIMB Research also raised its target price for Alam Maritim from RM1.03 to RM1.40. The stock rose 10 sen or 9.52 per cent to RM1.15 at 3.50pm today.
Alam Maritim is an investment holding company with subsidiaries mainly involved in the provision of transportation support services and offshore facilities construction and installation, and underwater services to the upstream activities in the oil and gas industry. -- Bernama
It said the company's plan to venture into pipe installation was coming to fruition with its 50:50 joint venture with Swiber set to clinch a US$50 million to US$60 million contract relating to Petronas' Sabah Oil and Gas Terminal (SOGT).
Alam Maritim was also teaming up with Sabah state agency Yayasan Sabah on oil and gas related works.
'We upgrade Alam Maritim from sell to buy with the potential catalyst being the announcement of the Petronas SOGT contract and more pipe installaition venture by the company,' the research house said in its research report today.
CIMB Research also raised its target price for Alam Maritim from RM1.03 to RM1.40. The stock rose 10 sen or 9.52 per cent to RM1.15 at 3.50pm today.
Alam Maritim is an investment holding company with subsidiaries mainly involved in the provision of transportation support services and offshore facilities construction and installation, and underwater services to the upstream activities in the oil and gas industry. -- Bernama
C.I. Hldgs posts RM42m pre-tax profit
C.I. Holdings Bhd's pre-tax profit for the nine months ended March 31, 2011 rose to RM41.513 million from RM35.286 million in the same period last year.
In a filing to Bursa Malaysia, the company said its revenue increased to RM440.329 million from RM375.984 million.
For the third quarter, the company registered a lower pre-tax profit of RM11.229 million, down 18 per cent from RM13.692 million.
Its revenue was higher at RM140.097 million from RM137.704 million. -- Bernama
In a filing to Bursa Malaysia, the company said its revenue increased to RM440.329 million from RM375.984 million.
For the third quarter, the company registered a lower pre-tax profit of RM11.229 million, down 18 per cent from RM13.692 million.
Its revenue was higher at RM140.097 million from RM137.704 million. -- Bernama
OSK keeps 'underweight' call on auto sector
OSK Research is maintaining an 'underweight' call on the automotive sector on expectations that bottlenecks in Japan, will lead to a shortage of vehicles in Malaysia, despite buoyant demand in the past quarter.
In a note today, the research firm said auto companies'' earnings are likely to be hit in the second and third quarters, as poor economic efficiency and spiraling raw material prices pinch margins.
'We expect vehicle sales in the upcoming months to decline gradually and bottom out in August or September, as vendors and assemblers are starting to hint of depleting inventory,' it said.
Although, Perodua remains in the top spot, its volume continues to languish as potential buyers hold back on purchases, ahead of the impending launch of the new Myvi replacement slated for the second half of the year.
It said Proton gained traction on higher sales of the Saga, Exora and Persona, thanks to aggressive promotional hire purchase rates and vehicle exchange rebate programme.
'We would not be surprised if the national car maker climbs back to the number one spot in the next few months,' it added.
Non-national leaders Toyota, Nissan and Honda continued to see intense competition from the smaller players, notably Naza.
OSK said its mid cap 'buy' in the sector is Proton, as it expects its fourth quarter numbers to spring a positive surprise. -- Bernama
In a note today, the research firm said auto companies'' earnings are likely to be hit in the second and third quarters, as poor economic efficiency and spiraling raw material prices pinch margins.
'We expect vehicle sales in the upcoming months to decline gradually and bottom out in August or September, as vendors and assemblers are starting to hint of depleting inventory,' it said.
Although, Perodua remains in the top spot, its volume continues to languish as potential buyers hold back on purchases, ahead of the impending launch of the new Myvi replacement slated for the second half of the year.
It said Proton gained traction on higher sales of the Saga, Exora and Persona, thanks to aggressive promotional hire purchase rates and vehicle exchange rebate programme.
'We would not be surprised if the national car maker climbs back to the number one spot in the next few months,' it added.
Non-national leaders Toyota, Nissan and Honda continued to see intense competition from the smaller players, notably Naza.
OSK said its mid cap 'buy' in the sector is Proton, as it expects its fourth quarter numbers to spring a positive surprise. -- Bernama
MIDF stays positive on plantation sector
MIDF Research has reiterated its positive call on the plantation sector while maintaining the mean crude palm oil (CPO) price at RM3,400 per metric tonne this year.
In a research statement today it said the earnings growth of all plantation stocks under its coverage, is underpinned by an increase in matured hectarage, and improved yield.
'The matured hectarage of all the companies under our coverage is estimated to increase by 9.4 per cent and 11.3 per cent in financial year 2011 and 2012 respectively,' it added in a research note today.
Imputing other factors, MIDF said this will translate into an earnings growth of 14.2 per cent and 9.2 per cent in financial year 2011 and 2012 respectively.
However, market expectation has revolved around recovering output and weakening export, which has led to many revising downward their average CPO price forecast for this year while downgrading their plantation sector recommendation.
'We believe that the recent retracement in the CPO price is mainly due to speculation rather than deteriorating fundamentals,' it said.
MIDF said based on the law of average, it is suggested that RM3,400 is not an unrealistic target.
The research house also expects for the rest of second quarter, the CPO price to be sustained by supply factors while demand remains stable.
'CPO output is unlikely to fully recover in the short-term due to the after effects of adverse weather condition,' it said.
However, MIDF said the pick-up output is expected to happen only in the second half 2011 as the La-Nina phenomena is expected to fizzle out and weather conditions normalise.
Meanwhile, its top pick up for the big cap plantations companies are Sime Darby Plantation Sdn Bhd and Kuala Lumpur Kepong Bhd, because of their sizeable plantation areas that would provide higher potential earnings growth.
For small cap plantation stocks, it continues to like TSH Resources Bhd because of the large immature areas and TH Plantations Bhd, due to the stable dividend payable.--Bernama
In a research statement today it said the earnings growth of all plantation stocks under its coverage, is underpinned by an increase in matured hectarage, and improved yield.
'The matured hectarage of all the companies under our coverage is estimated to increase by 9.4 per cent and 11.3 per cent in financial year 2011 and 2012 respectively,' it added in a research note today.
Imputing other factors, MIDF said this will translate into an earnings growth of 14.2 per cent and 9.2 per cent in financial year 2011 and 2012 respectively.
However, market expectation has revolved around recovering output and weakening export, which has led to many revising downward their average CPO price forecast for this year while downgrading their plantation sector recommendation.
'We believe that the recent retracement in the CPO price is mainly due to speculation rather than deteriorating fundamentals,' it said.
MIDF said based on the law of average, it is suggested that RM3,400 is not an unrealistic target.
The research house also expects for the rest of second quarter, the CPO price to be sustained by supply factors while demand remains stable.
'CPO output is unlikely to fully recover in the short-term due to the after effects of adverse weather condition,' it said.
However, MIDF said the pick-up output is expected to happen only in the second half 2011 as the La-Nina phenomena is expected to fizzle out and weather conditions normalise.
Meanwhile, its top pick up for the big cap plantations companies are Sime Darby Plantation Sdn Bhd and Kuala Lumpur Kepong Bhd, because of their sizeable plantation areas that would provide higher potential earnings growth.
For small cap plantation stocks, it continues to like TSH Resources Bhd because of the large immature areas and TH Plantations Bhd, due to the stable dividend payable.--Bernama
Malaysia Equity 'neutral' on telco sector
Malaysia Equity Investment Research has maintained a 'neutral' call on the telecommunications sector, as well as Telekom Malaysia Bhd (TM) and Maxis Bhd, with a future value of RM3.50 and RM5.20 respectively.
The research house expects TM's Internet Protocol television (IPTV) service, Unifi, to be profitable only in financial year 2012 while Maxis previously indicated that it saw the 'inflection point' of the service with 500,000 subscribers.
'We note that TM's Unifi has captured over 60,000 customers since March last year and is available in 80,000 homes,' Malaysia Equity said in a note today.
It said the IPTV battle became increasingly vigorous with Astro inking a 10- year contract with Timedotcom to rollout its IPTV, capitalising on the latter's fibre network, while Maxis recently launched its IPTV service on TM''s high speed broadband. -- Bernama
The research house expects TM's Internet Protocol television (IPTV) service, Unifi, to be profitable only in financial year 2012 while Maxis previously indicated that it saw the 'inflection point' of the service with 500,000 subscribers.
'We note that TM's Unifi has captured over 60,000 customers since March last year and is available in 80,000 homes,' Malaysia Equity said in a note today.
It said the IPTV battle became increasingly vigorous with Astro inking a 10- year contract with Timedotcom to rollout its IPTV, capitalising on the latter's fibre network, while Maxis recently launched its IPTV service on TM''s high speed broadband. -- Bernama
Tuesday, April 19, 2011
Aeon Credit profit up 17pc to RM63m
AEON Credit Service (M) Bhd's net profit for the financial year ended Feb 20, 2011 increased by 16.8 percent to RM63.43 million from the RM54.27 million recorded the previous year.
In a statement today, AEON Credit said revenue for the year stood at RM269.61 million, representing a growth of 8.5 percent over the previous year.
It attributed the uptrend to growth in transaction volume for credit card operations as well as easy payment financing schemes.
Total transaction and financing volume of RM1.176 billion for the year, represented a 24 per cent growth from the previous year, while total credit cards in circulation increased by 27 per cent to 143,000 as at February 2011.
Meanwhile, the non-performing loans ratio stood at 1.83 per cent as at February compared to 1.80 per cent recorded in the same period last year. - BERNAMA
In a statement today, AEON Credit said revenue for the year stood at RM269.61 million, representing a growth of 8.5 percent over the previous year.
It attributed the uptrend to growth in transaction volume for credit card operations as well as easy payment financing schemes.
Total transaction and financing volume of RM1.176 billion for the year, represented a 24 per cent growth from the previous year, while total credit cards in circulation increased by 27 per cent to 143,000 as at February 2011.
Meanwhile, the non-performing loans ratio stood at 1.83 per cent as at February compared to 1.80 per cent recorded in the same period last year. - BERNAMA
Malaysian Bulk Carriers expect revenue drop
Malaysian Bulk Carriers Bhd (MBC) expects to record a lower revenue this year amid the currently challenging market.
Its chief executive officer, Kuok Khoon Kuan said the shipping industry was very competitive and the company would need to spend more for growth and expansion in order to survive.
We expect growth in terms of asset size, which we have already started last year, he told reporters after the company's annual general meeting here today, adding that the company planned to acquire more ships this year as well as rebuild its fleet.
While he did not disclose the budget for their expansion, he said the company would not miss out on a good buy.
It is a matter of opportunity. You see a good ship, with a good price, you go in, he added.
For the financial year ended Dec 31, 2010, MBC's revenue grew 33 per cent to RM404.3 million from RM303.7 million in 2009.
The better performance was attributed to a firmer dry bulk market and increased hire days. - BERNAMA
Its chief executive officer, Kuok Khoon Kuan said the shipping industry was very competitive and the company would need to spend more for growth and expansion in order to survive.
We expect growth in terms of asset size, which we have already started last year, he told reporters after the company's annual general meeting here today, adding that the company planned to acquire more ships this year as well as rebuild its fleet.
While he did not disclose the budget for their expansion, he said the company would not miss out on a good buy.
It is a matter of opportunity. You see a good ship, with a good price, you go in, he added.
For the financial year ended Dec 31, 2010, MBC's revenue grew 33 per cent to RM404.3 million from RM303.7 million in 2009.
The better performance was attributed to a firmer dry bulk market and increased hire days. - BERNAMA
Bursa Q1 net profit rises to RM40.5m
Bursa Malaysia Bhd, the stock exchange operator, said first-quarter profit rose to RM40.5 million from RM28.1 million a year earlier.
Sales in the three months ended March 31 climbed to RM116.1 million from RM88.1 million, the Kuala Lumpur- based company said in a statement today. - Bloomberg
Sales in the three months ended March 31 climbed to RM116.1 million from RM88.1 million, the Kuala Lumpur- based company said in a statement today. - Bloomberg
Malaysia Steel, KUB get nod for rail project
Malaysia Steel Works (KL) Bhd and its partner KUB Malaysia Bhd have won approval from the Johor state government and the Iskandar Regional Development Authority to build and operate a rail transit network, according to a company statement.
Metropolitan Commuter Network Sdn Bhd, their joint venture, will build the intra-city commuter train network in the Iskandar region, Malaysia Steel Works said in a statement late yesterday. -- Bloomberg
Metropolitan Commuter Network Sdn Bhd, their joint venture, will build the intra-city commuter train network in the Iskandar region, Malaysia Steel Works said in a statement late yesterday. -- Bloomberg
Monday, April 18, 2011
Celcom Axiata inks pact with Sacofa
Celcom Axiata Bhd inked today a RM168 million fiberisation leasing agreement with Sarawak-based Sacofa Sdn Bhd.
Though with a 10 year commitment, the project is scheduled to be completed within the next two years.
It includes the fiberisation of 400 Celcom Node-B and base stations in Sarawak by Sacofa as well as the provision of trunk capacity throughout the state and cross ocean submarine capacity.
Sacofa is a 'one-stop centre' providing telecommunication
infrastructure to service providers in Sarawak and has currently around 500 towers with a coverage of 60-70 per cent of the state.
'With the completion of this project, Sarawakians will be able to enjoy enhanced services such as high definition voice and video plus high speed browsing with Celcom,' Celcom Chief Executive Officer, Datuk Seri Shazalli Ramly told the media after the signing ceremony here today. - Bernama
Though with a 10 year commitment, the project is scheduled to be completed within the next two years.
It includes the fiberisation of 400 Celcom Node-B and base stations in Sarawak by Sacofa as well as the provision of trunk capacity throughout the state and cross ocean submarine capacity.
Sacofa is a 'one-stop centre' providing telecommunication
infrastructure to service providers in Sarawak and has currently around 500 towers with a coverage of 60-70 per cent of the state.
'With the completion of this project, Sarawakians will be able to enjoy enhanced services such as high definition voice and video plus high speed browsing with Celcom,' Celcom Chief Executive Officer, Datuk Seri Shazalli Ramly told the media after the signing ceremony here today. - Bernama
Public Bank Q1 net rises to RM827.7m
Public Bank Bhd, Malaysia's third biggest lender, said first-quarter profit rose to RM827.7 million from RM685.3 million a year earlier.
Revenue climbed to RM2.99 billion in the three months ended March 31 from RM2.51 billion a year earlier, the bank said in a statement in Kuala Lumpur today. - Bernama
Revenue climbed to RM2.99 billion in the three months ended March 31 from RM2.51 billion a year earlier, the bank said in a statement in Kuala Lumpur today. - Bernama
CIMB cuts Malaysia auto sector to 'neutral'
Malaysia's automotive industry was downgraded at CIMB Investment Bank Bhd to reflect concerns that vehicle assemblers will be hurt by a supply shortage of components following Japan's earthquake and tsunami.
The auto sector was cut to 'neutral' from 'overweight,' Loke Wei Wern, an analyst at CIMB, wrote in a report today. UMW Holdings Bhd. was downgraded to 'neutral' from overweight,' the report said. - Bloomberg
The auto sector was cut to 'neutral' from 'overweight,' Loke Wei Wern, an analyst at CIMB, wrote in a report today. UMW Holdings Bhd. was downgraded to 'neutral' from overweight,' the report said. - Bloomberg
Cahya Mata leads Sarawak stocks higher
Cahya Mata Sarawak Bhd led gains by Sarawak state-based builders and oil and gas stocks after Malaysia's ruling coalition retained control in the state's election, spurring optimism development spending will continue.
There will be 'continuity in the state's development plan,' HwangDBS Vickers Research Sdn Bhd said in a report today.
Cahya Mata, controlled by the family of Sarawak Chief Minister Abdul Taib Mahmud, rose 5.8 per cent to RM2.39 at 9:08 a.m. local time, set for its steepest gain since Nov. 25.
Naim Holdings Bhd added 4.5 per cent to RM3.05, Dayang Enterprise Holdings Bhd gained 3.1 per cent to RM1.99. -- Bloomberg
There will be 'continuity in the state's development plan,' HwangDBS Vickers Research Sdn Bhd said in a report today.
Cahya Mata, controlled by the family of Sarawak Chief Minister Abdul Taib Mahmud, rose 5.8 per cent to RM2.39 at 9:08 a.m. local time, set for its steepest gain since Nov. 25.
Naim Holdings Bhd added 4.5 per cent to RM3.05, Dayang Enterprise Holdings Bhd gained 3.1 per cent to RM1.99. -- Bloomberg
OSK keeps KLCI 1,680 year-end target
OSK Research is maintaining the year-end KLCI target of 1,680 points as the ruling Barisan Nasional's (BN) two thirds majority victory in Sarawak was within expectations.
With the BN still firmly in power in Sarawak, OSK continued to expect a general election to be held by year-end, with the popular vote somewhat swinging back to the ruling coalition in the polls.
'This will be good for market sentiment as a whole. As such, we continue to see the government sustaining its efforts at stimulating the economy via the ETP and keep our year-end KLCI target,' it said in a research note today.
OSK also said that the Sarawak election panned out as it expected, with the BN keeping its two thirds majority but losing ground overall, in winning 55 seats out of 71 while the opposition increased its number to 15.
OSK has maintained the 'Top 10 Buy' calls, with the broad strategy still focused on 'Buy Big Caps on Rebounds' and 'Go Defensive on Mid/Small Caps'.
'With the market having already lost 2.56 per cent from its high in April from 1,561.9 to 1,521.9, we may see a limited downside this week.
'Any further drop in the market can be well contained and may see the KLCI rebound towards month-end,' the research house said.
-- Bernama
With the BN still firmly in power in Sarawak, OSK continued to expect a general election to be held by year-end, with the popular vote somewhat swinging back to the ruling coalition in the polls.
'This will be good for market sentiment as a whole. As such, we continue to see the government sustaining its efforts at stimulating the economy via the ETP and keep our year-end KLCI target,' it said in a research note today.
OSK also said that the Sarawak election panned out as it expected, with the BN keeping its two thirds majority but losing ground overall, in winning 55 seats out of 71 while the opposition increased its number to 15.
OSK has maintained the 'Top 10 Buy' calls, with the broad strategy still focused on 'Buy Big Caps on Rebounds' and 'Go Defensive on Mid/Small Caps'.
'With the market having already lost 2.56 per cent from its high in April from 1,561.9 to 1,521.9, we may see a limited downside this week.
'Any further drop in the market can be well contained and may see the KLCI rebound towards month-end,' the research house said.
-- Bernama
Friday, April 15, 2011
ETCM solve Nissan cars' fuel meter issue
Edaran Tan Chong Motor Sdn Bhd (ETCM) has initiated a service campaign to solve a fuel meter related issue faced by some owners of Nissan Grand Livina, Nissan Latio and Latio Sport.
In a statement today, it said it had recently received some cases in which the fuel meter may not show accurate lower reading position of fuel gauge.
'Upon investigation, it was found that such incidents may have been caused by electrochemical migration on the resistor-card in the fuel gauge being affected by a combination of environmental aspect and fuel variation.'
The service campaign is for 32,100 units of Nissan Grand Livina produced from December 2007 to June 2010 and 9,300 units of Nissan Latio and Latio Sport produced from May 2007 to June 2010 in Malaysia.
In the meantime to avoid inconvenience, it advised all affected Nissan car owners to constantly keep their vehicle's fuel level at half tank or more pending replacement of the parts.
'We initiated this service campaign to cover all the vehicles produced during the mentioned period even though not all the vehicles may be affected. All labour and replacement parts for this less than an hour exercise will be free-of-charge,' its executive director, Datuk Dr Ang Bon Beng said.
The affected Nissan car owners may contact the nearest Tan Chong Express Auto Service Centre or Customer Service Hotline at Toll FREE line: 1800-88-3838 for a service appointment. It can be also done during scheduled maintenance service.-- Bernama
In a statement today, it said it had recently received some cases in which the fuel meter may not show accurate lower reading position of fuel gauge.
'Upon investigation, it was found that such incidents may have been caused by electrochemical migration on the resistor-card in the fuel gauge being affected by a combination of environmental aspect and fuel variation.'
The service campaign is for 32,100 units of Nissan Grand Livina produced from December 2007 to June 2010 and 9,300 units of Nissan Latio and Latio Sport produced from May 2007 to June 2010 in Malaysia.
In the meantime to avoid inconvenience, it advised all affected Nissan car owners to constantly keep their vehicle's fuel level at half tank or more pending replacement of the parts.
'We initiated this service campaign to cover all the vehicles produced during the mentioned period even though not all the vehicles may be affected. All labour and replacement parts for this less than an hour exercise will be free-of-charge,' its executive director, Datuk Dr Ang Bon Beng said.
The affected Nissan car owners may contact the nearest Tan Chong Express Auto Service Centre or Customer Service Hotline at Toll FREE line: 1800-88-3838 for a service appointment. It can be also done during scheduled maintenance service.-- Bernama
Alam Maritim's unit inks pact with YSS
Alam Maritim (M) Sdn Bhd, a wholly-owned unit of Alam Maritim Resources Bhd, has signed a joint venture (JV) and shareholders' agreement with Yayasan Sabah Shipping Sdn Bhd (YSS) to participate in the economic and commercial activities in Sabah, particularly in the oil and gas industry.
Alam Maritim said the JV partners would incorporate a special-purpose vehicle, named YSS Alam Energy (M) Sdn Bhd, or any other name as approved by both parties and the Companies Commission of Malaysia.
'The proposed JV aimed to collaborate in the provision of maritime services and facilitate the localisation and transfer of oil and gas-related technology into Sabah,' it said in a filing to Bursa Malaysia today
It said the authorised share capital of the JV company would be RM100,000 divided into 100,000 ordinary shares of RM1.00 each.
Alam Maritim said capital outlays and projects undertaken by the JV company would be funded by equity injection by both parties and external borrowings from local financial institutions in equal proportion. -- BERNAMA
Alam Maritim said the JV partners would incorporate a special-purpose vehicle, named YSS Alam Energy (M) Sdn Bhd, or any other name as approved by both parties and the Companies Commission of Malaysia.
'The proposed JV aimed to collaborate in the provision of maritime services and facilitate the localisation and transfer of oil and gas-related technology into Sabah,' it said in a filing to Bursa Malaysia today
It said the authorised share capital of the JV company would be RM100,000 divided into 100,000 ordinary shares of RM1.00 each.
Alam Maritim said capital outlays and projects undertaken by the JV company would be funded by equity injection by both parties and external borrowings from local financial institutions in equal proportion. -- BERNAMA
Thursday, April 14, 2011
CIMB aims for 17pc retail deposits growth
CIMB Bank and CIMB Islamic are aiming to register a 17 per cent growth in retail deposits this year, said CIMB Head of Retail Financial Services, Peter England.
He said the target can be achieved as the banks retail deposit in the first quarter of the year has already registered a 6.8 per cent growth, through the banks'' second joint deposit drive campaign, '2 Good 2 Be True'.
'The campaign has boosted the banks retail deposit further by RM2.9 billion in the first quarter, bringing the banks' total Malaysian retail deposit base to approximately RM44.3 billion as of 31 March this year,' he said in a press conference after a prize presentation ceremony here today. - Bernama
He said the target can be achieved as the banks retail deposit in the first quarter of the year has already registered a 6.8 per cent growth, through the banks'' second joint deposit drive campaign, '2 Good 2 Be True'.
'The campaign has boosted the banks retail deposit further by RM2.9 billion in the first quarter, bringing the banks' total Malaysian retail deposit base to approximately RM44.3 billion as of 31 March this year,' he said in a press conference after a prize presentation ceremony here today. - Bernama
KPJ to gain from IHH listing buzz: MIDF
MIDF Research upgraded KPJ Healthcare Bhd to a trading 'buy' today, as it is expected to benefit from the potential relisting of Khazanah Nasional Bhd's healthcare unit, Integrated Healthcare Holdings (IHH).
This is more so if, it was to be listed, on Bursa Malaysia.
MIDF said it is positive over the potential corporate exercise, as it will provide a good opportunity for the investment community to tap into an attractive and growing healthcare sector.
'Based on our back-of-envelop estimates, post-listing, the entity will have a market capitalisation of at least RM14 billion, assuming a 25 per cent public inssuance of new shares, it said in a note today. - Bernama
This is more so if, it was to be listed, on Bursa Malaysia.
MIDF said it is positive over the potential corporate exercise, as it will provide a good opportunity for the investment community to tap into an attractive and growing healthcare sector.
'Based on our back-of-envelop estimates, post-listing, the entity will have a market capitalisation of at least RM14 billion, assuming a 25 per cent public inssuance of new shares, it said in a note today. - Bernama
Wednesday, April 13, 2011
OSK sees 15pc revenue rise in 2011
OSK Holdings Bhd expects its revenue to increase by 15 to 16 per cent to RM1.2 billion in 2011 from RM1.01 billion last year.
'We foresee investment banking would continue to be our main growth contributor followed by stock brokering,' director Ong Leong Huat told reporters after the company's annual general meeting here today.
'We also hope if the market can perform better, our initial public offering (IPO) activities will also increase as last year we did five IPOs and right now we think we''re still on the track,' he said.
Meanwhile, chief executive officer U Chen Hock said the company wanted to see its local and overseas businesses to contribute equally to revenue.
'Currently, our business in Malaysia contributes 70 per cent to total revenue while the rest come from overseas,' he said.
He said OSK planned to enhance its presence in countries where it already had operations, and was focusing on Thailand, Indonesia and Cambodia. -- Bernama
'We foresee investment banking would continue to be our main growth contributor followed by stock brokering,' director Ong Leong Huat told reporters after the company's annual general meeting here today.
'We also hope if the market can perform better, our initial public offering (IPO) activities will also increase as last year we did five IPOs and right now we think we''re still on the track,' he said.
Meanwhile, chief executive officer U Chen Hock said the company wanted to see its local and overseas businesses to contribute equally to revenue.
'Currently, our business in Malaysia contributes 70 per cent to total revenue while the rest come from overseas,' he said.
He said OSK planned to enhance its presence in countries where it already had operations, and was focusing on Thailand, Indonesia and Cambodia. -- Bernama
Alam Maritim gets RM24.24m job
Alam Maritim Resources Bhd's unit, Alam Maritim (M) Sdn Bhd, has received a RM24.24 million contract for the provision of one unit anchor-handling tug supply vessel and one unit fast multi-purpose supply vessel.
The contract was awarded by an independent oil and gas exploration and production company, it said in a filing to Bursa Malaysia today. - Bernama
The contract was awarded by an independent oil and gas exploration and production company, it said in a filing to Bursa Malaysia today. - Bernama
Public Bank has 23.54pc foreign shareholding
Public Bank Bhd (PBB) reported a 23.54 per cent foreign shareholding in the issued shares of the bank.
In a filing to Bursa Malaysia today, the company said the percentage was computed based on the total number of PBB shares in issue, excluding shares bought-back and retained as treasury shares, as at March 31. - Bernama
In a filing to Bursa Malaysia today, the company said the percentage was computed based on the total number of PBB shares in issue, excluding shares bought-back and retained as treasury shares, as at March 31. - Bernama
Tuesday, April 12, 2011
Mah Sing buys JB land for RM54.7m
Mah Sing Properties Sdn Bhd, a wholly-owned subsidiary of Mah Sing Group Bhd, has acquired 82.29 hectares of freehold land in Johor Baharu for RM54.7 million cash.
The land has been slated for the development of Mah Sing i-Parc, an integrated industrial and business park which can yield an estimated gross development value of RM610 million.
'We see enormous potential for Mah Sing i-Parc to be a centralised logistic hub as it is only one kilometre from the Port of Tanjung Pelepas and 23 kilometres from Jurong Industrial Estate in Singapore.
'The location is very prime, and this is one of, if not the last piece of sizeable freehold land in the area,' Mah Sing group managing director/chief executive officer Tan Sri Leong Hoy Kum said in a statement today.
Meanwhile, Mah Sing is confident of meeting the RM2 billion sales target for this year, says Leong
The company had achieved sales of RM738 million as at the second week of April, he said.
'The confluence of strong fundamentals, branding, locations, concept and products will make 2011 another good year for the company,' he told reporters on the sidelines of Invest Malaysia 2011. - Bernama
The land has been slated for the development of Mah Sing i-Parc, an integrated industrial and business park which can yield an estimated gross development value of RM610 million.
'We see enormous potential for Mah Sing i-Parc to be a centralised logistic hub as it is only one kilometre from the Port of Tanjung Pelepas and 23 kilometres from Jurong Industrial Estate in Singapore.
'The location is very prime, and this is one of, if not the last piece of sizeable freehold land in the area,' Mah Sing group managing director/chief executive officer Tan Sri Leong Hoy Kum said in a statement today.
Meanwhile, Mah Sing is confident of meeting the RM2 billion sales target for this year, says Leong
The company had achieved sales of RM738 million as at the second week of April, he said.
'The confluence of strong fundamentals, branding, locations, concept and products will make 2011 another good year for the company,' he told reporters on the sidelines of Invest Malaysia 2011. - Bernama
UEM Land to integrate with Sunrise
Property developer, UEM Land Holdings Bhd, is looking at integrating its businesses with Sunrise Bhd while retaining the latter's brand, said Managing Director/Chief Executive Officer Datuk Wan Abdullah Wan Ibrahim.
'We are now consolidating and looking into how to maximise and integrate as well as when to roll out our projects.
'People are talking about integration and our plan to integrate. There are two different skill sets,' he said on the sidelines of the on-going 'Invest Malaysia 2011' conference here today.
Wan Abdullah said the integration process of less complex areas would be completed quickly while the actual implementation would take some time.
He said the integration process might take between one and two years.
UEM Land acquired Sunrise Bhd, last year, for RM1.39 billion. - Bernama
'We are now consolidating and looking into how to maximise and integrate as well as when to roll out our projects.
'People are talking about integration and our plan to integrate. There are two different skill sets,' he said on the sidelines of the on-going 'Invest Malaysia 2011' conference here today.
Wan Abdullah said the integration process of less complex areas would be completed quickly while the actual implementation would take some time.
He said the integration process might take between one and two years.
UEM Land acquired Sunrise Bhd, last year, for RM1.39 billion. - Bernama
Kenanga projects Malaysia's 2011 GDP at 5.7pc
Kenanga Research has projected Malaysia's gross domestic product (GDP) this year to be at 5.7 per cent.
In a research note today, Kenanga said the projection was based on the expectation of the GDP picking up and expanding to 6.9 per cent in the second half, after shrinking in the first to 4.5 per cent from 9.4 per cent last year.
It said the expansion was due to the kick-off of the government-initiated mega infrastructure project under the Economic Transformation Programme (ETP), as well as, a cautiously optimistic outlook on the country's major trading
partners.
Meanwhile, AmResearch in a statement said the speedier implementation of the ETP and the 10th Malaysia Plan (10MP) in the second half, would drive a trend-wise growth of six per cent by the final quarter of this year.
Therefore, the research house has maintained the view that the GDP would likely grow at 5.5 per cent this year, with the growth momentum largely to be felt in the second half.
As for Malaysia's Industrial Production Index (IPI) which tracks overall industrial output, AmResearch said it contracted by 7.2 per cent month-on-month in February, mainly due to a lower output in the manufacturing sector (-6.1 per cent) and electricity (-9.2 per cent).
However, on a year-on-year basis, the index grew at five per cent in February, attributed to a faster growth in the manufacturing sector (7.9 per cent) and electricity (0.7 per cent). -- Bernama
In a research note today, Kenanga said the projection was based on the expectation of the GDP picking up and expanding to 6.9 per cent in the second half, after shrinking in the first to 4.5 per cent from 9.4 per cent last year.
It said the expansion was due to the kick-off of the government-initiated mega infrastructure project under the Economic Transformation Programme (ETP), as well as, a cautiously optimistic outlook on the country's major trading
partners.
Meanwhile, AmResearch in a statement said the speedier implementation of the ETP and the 10th Malaysia Plan (10MP) in the second half, would drive a trend-wise growth of six per cent by the final quarter of this year.
Therefore, the research house has maintained the view that the GDP would likely grow at 5.5 per cent this year, with the growth momentum largely to be felt in the second half.
As for Malaysia's Industrial Production Index (IPI) which tracks overall industrial output, AmResearch said it contracted by 7.2 per cent month-on-month in February, mainly due to a lower output in the manufacturing sector (-6.1 per cent) and electricity (-9.2 per cent).
However, on a year-on-year basis, the index grew at five per cent in February, attributed to a faster growth in the manufacturing sector (7.9 per cent) and electricity (0.7 per cent). -- Bernama
Notion VTEC rises to 8-month high
Notion VTEC Bhd, a Malaysian metal processor and tools maker, rose to an eight-month high after saying its controlling shareholders have been approached by a party who wants to acquire the entire business of the company.
The stock climbed 4.1 per cent to RM2.28 at 9:24 a.m. in Kuala Lumpur trading, bound for its highest close since Aug. 2. -- Bloomberg
The stock climbed 4.1 per cent to RM2.28 at 9:24 a.m. in Kuala Lumpur trading, bound for its highest close since Aug. 2. -- Bloomberg
Maybank Invt to do Kim Eng buy by May
Maybank Investment Bank Bhd aims to complete its purchase of Singapore's Kim Eng Holdings Ltd by the end of May, Tengku Zafrul Tengku Abdul Aziz, chief executive officer of the Malaysian lender said in a Bloomberg TV interview today. -- Bloomberg
MAA Holdings hits 38-month high
MAA Holdings Bhd rose to a 38-month high after the insurer applied for central bank approval to sign an agreement to sell its Malaysian Assurance Alliance Bhd unit and four other subsidiaries to Zurich Insurance Co.
The stock gained 4.4 per cent to RM1.42 at 9:16 a.m. local time in Kuala Lumpur trading, set for its highest close since Feb. 15, 2008. -- Bloomberg
The stock gained 4.4 per cent to RM1.42 at 9:16 a.m. local time in Kuala Lumpur trading, set for its highest close since Feb. 15, 2008. -- Bloomberg
Monday, April 11, 2011
Coastal gets vessel contract worth RM61m
Shipbuilder, Coastal Contracts Bhd's units, Thaumas Marine Ltd and Pleasant Engineering Sdn Bhd, have collectively secured contracts to sell 11 tugboats to a buyer based in Central America worth RM61 million.
Revenue from the 11 vessels is expected to contribute positively to the group's top and bottom line performance for the financial year ending December 31, 2011, said Coastal in a filing to Bursa Malaysia today. - Bernama
Revenue from the 11 vessels is expected to contribute positively to the group's top and bottom line performance for the financial year ending December 31, 2011, said Coastal in a filing to Bursa Malaysia today. - Bernama
Jerneh Asia gains on takeover target news
Jerneh Asia Bhd, a Malaysian insurer, rose to a seven-month high in Kuala Lumpur trading after the Business Times reported that it may be a reverse takeover target for an unidentified property developer.
The stock gained 3.5 per cent to RM3.23 at 9:06 a.m. local time, set for its highest close since Sept. 13. -- Bloomberg
The stock gained 3.5 per cent to RM3.23 at 9:06 a.m. local time, set for its highest close since Sept. 13. -- Bloomberg
Tenaga may post weaker Q2 profit: RHB
Tenaga Nasional Bhd may announce weaker profit in the second quarter ended Feb. 28 because of slower electricity sales growth and higher coal costs, according to RHB Research Institute Sdn Bhd.
Malaysia's biggest power producer is expected to announce its quarterly earnings on April 21, analyst Lim Tee Yang wrote in a report today. -- Bloomberg
Malaysia's biggest power producer is expected to announce its quarterly earnings on April 21, analyst Lim Tee Yang wrote in a report today. -- Bloomberg
Mamee surges on repayment plan
Mamee-Double Decker Bhd, a Malaysian food producer, jumped to a record in Kuala Lumpur trading after proposing a capital repayment of RM179.8 million to minority shareholders.
The stock surged 18 per cent to RM4.23 at 9:02 a.m. local time. -- Bloomberg
The stock surged 18 per cent to RM4.23 at 9:02 a.m. local time. -- Bloomberg
Tuesday, April 5, 2011
ECM Libra shareholders mull selling shares
ECM Libra Financial Group Bhd's biggest shareholders have appointed an adviser to find a buyer for the Malaysian securities firm and are considering three proposals, a person with knowledge of the matter said.
Azman Hashim, ECM Libra's biggest shareholder, Chairman Kalimullah Hassan and Managing Director Lim Kian Onn are seeking to either divest ECM Libra's investment banking unit or sell the entire company, said the person, who declined to be identified as the talks are private. The three own a combined 34.9 per cent of ECM Libra's shares, according to data compiled by Bloomberg.
Central bank licensing rules bar a single individual from being a key shareholder in two separate investment banks. Azman, who owns 21.66 per cent of ECM Libra, also indirectly holds 16.72 per cent of AMMB Holdings Bhd, Malaysia's fourth-biggest lender by market value, according to its 2010 annual report. AMMB has investment banking operations.
Bank Negara Malaysia, the Southeast Asian nation's central bank, gave Azman until January to sell one of the stakes and has granted him an extension, the person said. ECM Libra received an investment-banking license three years ago. Azman wasn't immediately available to comment, his assistant said.
ECM Libra's shares jumped 7.8 per cent to 97 sen in Kuala Lumpur trading today, the highest closing price since October 2007. The stock has risen 18 per cent since ECM Libra said March 29 that fourth-quarter profit more than tripled to RM45.8 million.
KandN Kenanga Holdings Bhd, a rival Malaysian securities firm, jumped 5.7 per cent today after the Edge Weekly reported it is considering a merger with ECM Libra, citing people it didn't identify. Lee Kok Khee, chief executive officer of KandN Kenanga, didn't immediately return a phone call seeking comment. ECM Libra spokeswoman Maureen Jeyasooriar didn't respond to an e- mail or a phone call seeking comment. -- Bloomberg
Azman Hashim, ECM Libra's biggest shareholder, Chairman Kalimullah Hassan and Managing Director Lim Kian Onn are seeking to either divest ECM Libra's investment banking unit or sell the entire company, said the person, who declined to be identified as the talks are private. The three own a combined 34.9 per cent of ECM Libra's shares, according to data compiled by Bloomberg.
Central bank licensing rules bar a single individual from being a key shareholder in two separate investment banks. Azman, who owns 21.66 per cent of ECM Libra, also indirectly holds 16.72 per cent of AMMB Holdings Bhd, Malaysia's fourth-biggest lender by market value, according to its 2010 annual report. AMMB has investment banking operations.
Bank Negara Malaysia, the Southeast Asian nation's central bank, gave Azman until January to sell one of the stakes and has granted him an extension, the person said. ECM Libra received an investment-banking license three years ago. Azman wasn't immediately available to comment, his assistant said.
ECM Libra's shares jumped 7.8 per cent to 97 sen in Kuala Lumpur trading today, the highest closing price since October 2007. The stock has risen 18 per cent since ECM Libra said March 29 that fourth-quarter profit more than tripled to RM45.8 million.
KandN Kenanga Holdings Bhd, a rival Malaysian securities firm, jumped 5.7 per cent today after the Edge Weekly reported it is considering a merger with ECM Libra, citing people it didn't identify. Lee Kok Khee, chief executive officer of KandN Kenanga, didn't immediately return a phone call seeking comment. ECM Libra spokeswoman Maureen Jeyasooriar didn't respond to an e- mail or a phone call seeking comment. -- Bloomberg
MRCB eyes RM150m pre-tax profit this year
Malaysian Resources Corporation Bhd (MRCB) aims to achieve RM150 million in pre-tax profit on a revenue of RM1.3 billion this year, backed by steady performance of its property and construction operations.
Its chief executive officer, Datuk Mohamed Razeek Hussain, said the company expected to launch property projects, comprising office buildings and condominiums, totalling over RM1.7 billion in gross development value.
Its order book for the property sector, now standing at RM1 billion, and RM600 million for the construction sector would sustain the company's growth for the next two to three years, he told reporters after MRCB's annual general meeting today.
For the financial year ended Dec 31, 2010, the company posted a higher pre-tax profit of RM97.58 million from RM46.49 million previously while its revenue rose to RM1.07 billion from RM921.62 million.
'The Economic Transformation Programme (ETP) projects are rolling out which is really helping the economy and boosting confidence. We hope MRCB will be a successful participant in these projects,' Mohamed Razeek said.
Under the ETP, he said, MRCB was undertaking the St Regis Hotel and Residences in Kuala Lumpur Sentral and the River of Live project which involves the clean-up and rehabilitation of Gombak river.
'At the moment, we are working with the government on the scope of works,' he said.
Mohamed Razeek said MRCB had also submitted tenders worth almost RM2 billion for general construction works including those related to the LRT extension projects.
The company was also one of the bidders to develop the former Pudu Jail site which is managed by UDA Holdings Bhd, he said.
Asked on the cancellation of its merger with IJM Land, he said: 'We could not agree on the definitive terms of agreement.'
The disagreement was on the issue of cash and share distribution, he added. -- Bernama
Its chief executive officer, Datuk Mohamed Razeek Hussain, said the company expected to launch property projects, comprising office buildings and condominiums, totalling over RM1.7 billion in gross development value.
Its order book for the property sector, now standing at RM1 billion, and RM600 million for the construction sector would sustain the company's growth for the next two to three years, he told reporters after MRCB's annual general meeting today.
For the financial year ended Dec 31, 2010, the company posted a higher pre-tax profit of RM97.58 million from RM46.49 million previously while its revenue rose to RM1.07 billion from RM921.62 million.
'The Economic Transformation Programme (ETP) projects are rolling out which is really helping the economy and boosting confidence. We hope MRCB will be a successful participant in these projects,' Mohamed Razeek said.
Under the ETP, he said, MRCB was undertaking the St Regis Hotel and Residences in Kuala Lumpur Sentral and the River of Live project which involves the clean-up and rehabilitation of Gombak river.
'At the moment, we are working with the government on the scope of works,' he said.
Mohamed Razeek said MRCB had also submitted tenders worth almost RM2 billion for general construction works including those related to the LRT extension projects.
The company was also one of the bidders to develop the former Pudu Jail site which is managed by UDA Holdings Bhd, he said.
Asked on the cancellation of its merger with IJM Land, he said: 'We could not agree on the definitive terms of agreement.'
The disagreement was on the issue of cash and share distribution, he added. -- Bernama
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