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https://theedgemalaysia.com/node/83857

Johan in talks to sell charge/credit cards business

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KUALA LUMPUR (April 19): Johan Holdings Bhd said it is in negotiations/discussion with a third party for to sell its charge and credit cards businesses in Malaysia and Singapore. However, no binding terms and conditions have been agreed upon, it added. “The proposed sale may or may not materialise,” the company said when responding to Bursa Malaysia’s querry on the unusual trading patterns of its shares today. Johan rose as much as 7.5 sen or 52% to 22 sen today to become the most-active stock before paring gains. At market close, Johan changed hands at 19 sen, up 4.5 sen or 31%, with some 67 million shares done. Exchange filings show that MUI had ceased to be substantial shareholder in Johan after the former sold 26.5 million shares in the latter on April 5 this year. Following the sale, MUI -- which is controlled by Tan Sri Khoo Kay Peng -- owns less than 1% in Johan compared to a 4.85% stake as at June last year.

https://theedgemalaysia.com/node/9128

Stricken OTs humming once more

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Last Updated: 7:05am, Feb 06, 2014 PETALING JAYA (Feb 6): The Sungai Buloh Hospital's operation theatres (OTs) reopened on Jan 22 after being shut down for repairs to its faulty air-conditioning facilities. Hospital director, Dr. Khalid Ibrahim said replacement works for 64 UPS (uninterrupted power supply) batteries were completed a day prior to the reopening and now all systems are back to normal. "Patients who had their operations rescheduled due to the closure have all been attended to. "None of their conditions worsened due to the delay as most were elective surgeries such as for hernia and thyroids. These are not urgent." Last month, 12 OTs were shut down after a fire broke out when internal circuitry was hit by a short circuit. As a result, the air conditioning system malfunctioned and the temperature was hovering at 28 degrees Celsius, which can make patients prone to clinical infections. It was believed that Radicare (M) Sdn Bhd crew members had accidentally snipped the wrong wires while carrying out maintenance work. However, Khalid did not confirm the cause and said that the hospital was still waiting for the Fire and Rescue Department to complete their investigations. "Last week we wrote to them again to ask for their forensic result but we have not heard anything from them till now. No word about when they'll send us the report." He also said that no new safety measures were drawn up following the incident as hospital staff managed to contain the fire as soon as it started. "Our safety measures are good enough, so we will maintain the existing precautions." Khalid denied that medical staff were quizzed for leaking facility failures to the press and said that staff, who were also civil servants, could continue to report any problem they faced in the hospitals via email or letters to the complaints department. "In case of facility malfunction, anyone can call the Radicare hotline to lodge a complaint and the company will act immediately to resolve it. We have staff working 24 hours and we too have our KPI (Key Performance Indicators) in terms of response time to adhere to." For more stories, go to www.fz.com, the website for freedom of expression and fairness in articulation.

https://theedgemalaysia.com/node/14522

Market Open: KLCI dips 0.38% in pre-holiday trade

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KUALA LUMPUR (Jan 30): The FBM KLCI dipped 0.38% in early trade on Thursday, ahead of the extended weekend for the  Chinese New Year holidays, in line with the steep overnight fall at Wall Street and overall retreat at most regional markets. At 9.05am, the FBM KLCI fell 6.79 points to 1,782.44. Bears returned with losers outpacing gainers by 161 to 37, while 89 counters traded unchanged. Volume was 47.51 million shares valued at RM25.13 million. The top losers included BAT, UMW, Gamuda, GAB, Coastal Contracts, Brahim’s, Maybank, United Plantations and RHB Capital. Hong Leong IB Research in a market preview Thursday said that ahead of the long Chinese New Year and Federal Territory Day holidays (closed on 2nd half 30 Jan until 3 Feb) coupled with the ongoing wild swings in global equities and currencies markets amid overnight slump on Dow, concerns over slowing China economy and its credit risks as well as persistent foreign liquidations on Q.E tapering sell-off, the FBM KLCI is likely to continue its consolidation mode in the near term. “Key supports are 1770-1780 whilst resistances are 1800-1820,” it said. Elsewhere, Asian shares were in retreat on Thursday as strains in emerging markets returned with a vengeance and the Federal Reserve further scaled back its stimulus - sending investors scurrying to safety in bonds and yen, according to Reuters. Japan's Nikkei shed 2.5 percent, so surrendering almost all of the previous day's gains. Australian stocks fell 1 percent, while MSCI's broadest index of Asia-Pacific shares outside Japan eased 0.3 percent, it said.

https://theedgemalaysia.com/node/38581

Zeti: Global sukuk market expands at rapid pace

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KUALA LUMPUR: The global sukuk market, which currently stands at US$130 billion (RM404.3 billion), is growing at an average rate of 40% annually, the most vibrant segment in Islamic finance. Speaking at the IMF-World Bank Annual Meetings in Washington, DC, Bank Negara Malaysia governor Tan Sri Dr Zeti Akhtar Aziz said Malaysia’s sukuk market had attracted international investors while the recent issuance of Malaysia’s US$1.25 billion sovereign sukuk in May was six times oversubscribed with a wide investor base from Asia, the Middle East, Europe, and the US, despite the prevailing volatile market conditions. “Having now become the most vibrant segment in Islamic finance, the sukuk market has evolved into a truly international market, generating significant cross-border flows as funds are being raised from beyond domestic financial markets,” she said, observing from the Malaysian experience sukuk had become the preferred financing and capital-raising option for the government and local corporations. In her luncheon speech Zeti noted that the importance of Islamic finance in strengthening financial linkages was evident in particular with the emergence of sukuk instruments to prominence as an attractive new asset class for investors and a competitive form of financing for businesses. The governor said the internationalisation of Islamic finance had allowed for further diversification of risks as well as facilitated more efficient allocation of funds across borders from centres with surplus funds to regions with investment opportunities. She added that the internationalisation of Islamic finance was shaping new global patterns of financial and trade flows. “It (internationalisation) is also facilitated by progressive liberalisation of emerging economies in this recent decade.  There is now increased presence of Islamic financial institutions beyond their domestic borders and increased foreign participation in Islamic domestic financial markets,” Zeti said.   The governor also stressed that Islamic finance had been able to respond to different requirements of consumers and businesses and remained competitive. This article appeared in The Edge Financial Daily, October 13, 2010.

https://theedgemalaysia.com/node/6440

Public Bank’s new fund to ride on Australian growth

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KUALA LUMPUR: Public Bank Bhd will launch a new fund, PB Australia Dynamic Balanced Fund (PBADBF), on May 12 to capitalise on the growth potential of the Australian market. It said on May 11 the fund would be managed by its unit Public Mutual. Public Mutual chairman Tan Sri Dr Teh Hong Piow said PBADBF would enable investors to capitalise on the growth potential of the Australian market. He said Australia’s long-term prospects were underpinned by a resilient services sector and rich natural resources. “Commodity exports in Australia are expected to benefit from a pick-up in demand from emerging economies such as China and India,” he said. He added following the correction in global equity markets, the Australian market’s valuations have created opportunities for accumulating undervalued blue chip stocks. The fund maintains a 60:40 ratio of equities and fixed income securities. Teh said PBADBF was for investors with conservative to moderate risk-reward temperaments who have a preference for receiving income and a respectable measure of capital growth. The fund is also suitable for investors to hedge their children’s future educational expenses. “Investing in Australian equities are expected to keep pace with the rising cost of Australia’s university education over the long term,” he said. During the offer period, a special promotional service charge of 5% of initial issue price per unit is extended to the purchase of units of PBADBF by investors. Investors who opt for direct debit instruction with PBADBF during the offer period would benefit from a special promotional service charge of 5.25% of net asset value per unit for as long as the direct debit is active. The minimum initial investment for the fund is RM1,000 and the minimum additional investment is RM100.

https://theedgemalaysia.com/node/31370

BCorp extends decline over uncertainty of sports licence

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KUALA LUMPUR: Berjaya Corp and its loan stocks extended their declines in late afternoon on Tuesday, June 8 following uncertainty over the sports betting licence for Ascot Sports Sdn Bhd. At 3.05pm, BCorp fell nine sen to RM1.37 with 10.6 million shares done while BCorp-LC lost 7.5 sen to 88.5 sen. The FBM KLCI rose 3.49 points to 1,289.76. Turnover was 247 million shares valued at RM377.46 million. There were 253 gainers, 243 losers and 221 stocks unchanged. The finance ministry has yet to issue a sports betting licence to Ascot Sports and is in the midst of discussing  the licence’s terms and conditions, Prime Minister and Finance Minister Datuk Seri Najib Razak told the Dewan Rakyat on Monday. Najib (Pekan-BN) said this in a written reply to questions on sports betting from four members of parliament (MPs). The government, he said, was still obtaining feedback from various quarters on the proposal to license sports betting in Malaysia “with the view of reducing and subsequently eradicating unlicensed betting in Malaysia”. It was earlier reported that Ascot Sports had obtained the licence to run a sports betting operation in Malaysia, prompting strong criticism from the opposition and certain quarters concerned about the social implications of legalised sports gambling. Ascot Sports is the private vehicle of BCorp chairman and CEO Tan Sri Vincent Tan, who owns a 70% stake in the private company. His eldest son, Datuk Robin Tan Yeong Ching, holds the remainder 30% stake in Ascot Sports.

https://theedgemalaysia.com/node/91627

TPPA talks in KK begin, to finalise by year end

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KUALA LUMPUR, (July 15): The Trans-Pacific Partnership Agreement (TPPA) negotiators from 12 countries have converged on Kota Kinabalu for the 18th round, with an eye on concluding negotiations by year-end. Japan makes its debut as the 12th TPPA member in Sabah, alongside Australia, Brunei, Canada, Chile, Malaysia, Mexico, New Zealand, Peru, Singapore, the United States and Vietnam. The negotiations, from today until July 25, are being held behind closed doors. There is no public session, except for the stakeholder session, on July 20. The objective of the programme is to allow stakeholders to present their views and concerns. More than 180 stakeholders, including 51 from Malaysia representing different interest groups have registered for this session. The TPPA, a free trade initiative, is expected to expand exports of participating countries into a large global market base and provide a cheaper product base for consumers. With the proposed elimination or reduction of duties in the TPPA, Malaysian products would be more competitive, particularly in the larger United States (US) market. Although it is a trade deal, it also impacts foreign investments, with Japan having been a major investor in Malaysia, along with the US and Asean countries. A media conference is scheduled on July 25, hosted by the TPPA chief negotiators to provide an opportunity to update the media on TPPA developments. Government officials say that as a trading nation, it makes economic sense for Kuala Lumpur to join the TPPA to gain greater access into the markets of its trading partners, especially the US, Japan and Asean. International Trade and Industry Minister Datuk Seri Mustapa Mohamed said at a recent dialogue that it was important for Malaysia to be part of the TPPA to reduce bureaucracy and improve the delivery system which wouldindirectly reduce corruption. He also said joining the TPPA would not necessarily increase foreign investments in the country, but would help make Malaysia a favourite investment destination among foreign investors. "With the TPPA in place, it will also protect the interest of government-linked conglomerates like Petronas and Sime Darby Bhd, which have invested heavily overseas," he was quoted as saying. Mustapa said although the negotiations are in the final stage, Malaysia would not compromise on any issue that would jeopardise the country's sovereignty and peoples' interest, in the pursuit to chase the planned year-end dateline. The Cabinet has to give the go-ahead to any agreement by Malaysia at the talks, before any deal is signed.

https://theedgemalaysia.com/node/25051

Beijing warned over inflation

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HONG KONG: Beijing needs to tighten its monetary policy to avoid a property bubble and runaway inflation, or face an economy growing at a superheated 16 per cent this year, a top government research institute warns, according to the South China Morning Post. The assessment, by economists He Fan and Yao Zhizhong of the Chinese Academy of Social Sciences, comes in the face of a promise by Premier Wen Jiabao two weeks ago to keep a "moderately loose" monetary regime this year. But sticking to a loose monetary policy could force up consumer prices and result in "serious economic overheating", the economists warn. Predicting property prices to remain high, they say the bigger the property bubble, the greater the risks to the economy. "If the loose monetary measures are withdrawn, the economy will grow at 7.7 per cent this year," He and Yao wrote in Monday's China Securities Journal. "If they remain the same, the economy is destined for serious overheating." An appropriate level of monetary stimulus would propel the economy ahead with 11.6 per cent growth this year, they added. Other leading state researchers, including Fan Gang, an adviser to the People's Bank of China, last month warned of bubbles in stock, real estate and commodity prices. At the weekend, Beijing ordered the central bank and China Banking Regulatory Commission to step up scrutiny of bank lending to prevent an illegal flow of funds and foreign "hot money" into the property market. He and Yao said loose monetary measures had added to new lending in the first 10 months of last year, with about six trillion yuan (HK$6.81 trillion), or two-thirds of a total of 8.9 trillion yuan, pouring into stock and property markets. The surge in new lending spilled into the first week of this month, with loans totalling 600 billion yuan, the Economic Information Daily, a newspaper affiliated to Xinhua, reported yesterday. In January last year, new loans skyrocketed to 1.62 trillion yuan after the government loosened lending to kick-start a slowing economy. He and Yao said a tougher monetary regime could cool the rapid growth in broad money supply, or M2, to about 20 per cent this year. M2 jumped 29.5 per cent between January and October last year. That would also keep inflation in consumer prices in check. Peter Wong Tung-shun, an executive director at HSBC's Asia-Pacific unit, said the mainland's import sector, which was driven by domestic demand, would grow faster than exports even though China had became the world's largest exporter. "The challenge for China is to strive for balanced growth, further stimulate domestic consumption and to build on an increasingly broad-based expansion," Wong said. Merrill Lynch-Bank of America economist Lu Ting said a sharper-than-expected rebound in exports, at 18 per cent growth, and imports, at 56 per cent growth, last month, set the stage for a faster economic recovery on the mainland. "China is on the eve of a monetary tightening," Lu said, forecasting economic growth of 10 per cent this year. "But, we are not there yet." UBS economist Wang Tao said he would not be surprised to see new loans surpassing 1 trillion yuan in the first three months of this year. - SCMP

https://theedgemalaysia.com/node/39789

Penang’s hysteria of 'development' in 2014

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Last Updated: 1:20pm, Jan 06, 2014 GEORGE TOWN (Jan 6): In a display of indignation on the morning of Jan 1, Teh Yee Cheu, the eccentric Penang state legislator known for his environmental activism, had his head shaved bald in front of the now infamous Bukit Relau. Since early last year, islanders have been riled up by the sight of the hill’s verdant summit and green slope having been illegally cleared into a monstrous dusty scab by a developer. Teh and two other colleagues who also went bald were protesting the abject failure to regenerate the vegetation and repair the damaged expanse till today. This despite the developer having been convicted and fined RM30,000 by the courts in July. "We are doing this as a reminder at the start of the year, that we don’t see any sincerity in rectifying this serious environmental degradation," he said. The stunt caught the attention of the media and public at large. For it struck a chord, and had far-reaching implications - more than what one would think. For the ugly blight on Bukit Relau is emblematic of the mounting upheaval affecting not only the natural environment, but also the social fabric of communities across the state. Drastic impact of Second Penang Bridge As though the scar on the hill is not distressing enough, on the mainland part of Penang, over the other side of the channel, one cannot miss the huge swathes of land clearings, particularly in the southern district. Acres upon acres of plantations, villages and fertile fields are being acquired and earmarked for projects. The trend is especially hastened in anticipation of the RM4.5 billion Second Penang Bridge, which connects the south-eastern part of the island to the southern part of Seberang Perai. The 24km structure, expected to open next month, will fling open traffic flow between the two sides in a manner never seen before. As it introduces this new passage across the Penang Channel, it is bringing about drastic changes to the occupancy of land areas close by. Large tracts of hitherto rural areas on the mainland as well as the island – like Batu Kawan, Nibong Tebal, Relau and even remote Balik Pulau - are being actively planned for new townships and other development projects. In effect, it will mark a pendulum shift in the lifestyle and economics of many communities, whether they be those uprooted from affected areas or those that are inseminated in. The state government has since 2008 touted the green line, having implemented a string of environmentally-friendly moves – the no-plastic bags campaign, the car-free days and the ban on polystyrene containers, among others. However, the sheer scale of new physical projects surging forward puts into question whether the abrupt incursions onto the local setting are compatible with truly sustainable practice. Why the torrent of development? The impact of such acute changes in the landscape and culture - the congestion, the increased density, the altered pace of life – can already be seen in Tanjung Bungah, the state constituency that Teh himself represents. High-rise condominiums, shopping malls and modern commercial outlets are sprouting up in unfamiliar terrains where there used to be shorelines, kampongs, open spaces and old shophouses. Like an interminable hysteria, the glitzy rushed promise of modern commercial construction is sweeping over traditional vistas and communities that have characterised the idyllic charm of Penang for generations. The irony of this is that Penang itself is home to a Unesco-listed World Heritage Site. However, immediately beyond the margins of this protected inner-city of George Town, there seems to be an almost free-for-all - at least for those with the financial muscle - for alien behemoth structures to be brusquely grafted over the local streetscapes. It is a phenomenon that is occurring in varying degrees all over the state. And the trend is not likely to slow down. Instead, it will hasten, at a brisker, some might even say wilder, pace as the year 2014 rolls along. One cannot help but wonder how much of this torrent of development is actually based on catering to the essential needs of our society. Or is it due more to pressures from corporate interests keen to expeditiously reap commercial profits? Ominous signs from Gurney Drive’s reclamation Nothing encapsulates this dilemma more ominously than the planned RM25 billion reclamation project off the coastline around the popular Gurney Drive. The gargantuan project will see some 891 acres of brand new land, with scores of new buildings and streets, being introduced onto Penang. It will also indelibly change the marine ecology and tidal patterns off the island. Uncannily enough, very nearby lies the 250-year old Kampung Tanjung Tokong, the oldest Malay settlement in the region, whose age-old residents are being evicted for a concrete crowded mesh of apartments and flats to take over the site. The travails that these residents undergo reflect the stinging effect of the so-called "progress" that many communities in Penang are being forced to go through. One also remembers the controversial eviction in 2009 of cowherd-villagers from the historic 19th century Indian settlement of Kampung Buah Pala, which has since been replaced by a towering condominium complex named ‘The Oasis’. For this year, the impact assessment of the Gurney Drive reclamation will be a very key focus. In the same vein, there is also much concern about the fate of Penang Hill, for which a special area plan drafted by the state will undergo scrutiny in the months to come. There are genuine worries that the plan will usher in the creeping in of "soft" commercialisation of the once quiet, ecologically-rich hill. Such concerns about this plan for Penang Hill only echo already prevalent anxieties over the fate of Penang’s natural environment in the next few years. Heavy price of unbridled 'progress' It may be argued that the huge tide of physical development that Penang is witnessing is a boon, what with all the additional modern amenities, new entertainment, business opportunities and economic returns that would come along. But it is also bound to come with a heavy price. For the transformation is escalating at such an unnervingly abrupt rate in some areas that existing public infrastructures are not able to fully accommodate. Meanwhile, the local folks’ purchasing powers and sensibilities are also unable to match and adapt. As it is, most Malaysians have begun to feel the distressing pinch of price hikes, of everything from food to electricity to general logistics. Property values are also surging upwards. Even with the new radical measures recently announced by the state to curb speculation and assert control over affordable and public housing, the spiralling prices of medium and high-cost houses are not likely to be contained. So much of the attention – and hope - in 2014 will fall on the actions of the current Pakatan Rakyat state government, which has touted its CAT (Competency, Accountability and Transparency) policy since 2008. While the state has shown political will to make tough but positive decisions on several matters, there are cases that leave room for disappointment. For example, the disputed changing of Tanjung Bungah’s status in the Penang Structure Plan - done without any public consultation under the previous state government - from that a "secondary corridor" to a "primary corridor" (which now allows high-density projects) has still not been addressed. And at the tail-end of 2013, the public saw reports of a leaked document that indicated the state’s failure to hold open competitive tender for a flood mitigation and drainage project following an alleged move by the chief minister and a state executive councillor to recommend a company. The populace at large is bracing for much uncertainty and a tough economic year ahead. With that, the conscience and assertiveness of the state government will come under highly intensified scrutiny, as it negotiates the fine line of governance, towards ensuring true sustainable development.

https://theedgemalaysia.com/node/63345

TSH posts record earnings of RM120.5m in FY11

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KUALA LUMPUR (Feb 22): TSH Resources Bhd posted record net profit of RM120.54 million in the financial year ended Dec 31, 2011, an increase of 43% from the RM84.28 million a year ago and its expects the Indonesian oil palm estates to boost future earnings. It said on Wednesday its pre-tax profit of RM162.36 million was a record and was an increase of 54% from RM105.32 million in 2010. Its turnover was RM1.148 billion, up 26.4% from RM908.42 million a year ago.   As for the fourth quarter ended Dec 31, 2011, net profit fell 39.8% to RM26.15 million from RM43.45 million. Turnover was 18.9% higher at RM292.94 million compared with RM246.21 million. Earnings per share were 3.20 sen compared with 10.61 sen. TSH proposed a first and final single tier dividend of 3.5 sen per share for FY2011. It said that despite a 27% increase in contribution from the oil palm segment, pre-tax profit for the current quarter at RM30.05 million was lower than the RM42.58 million a year ago. TSH said the reduction was primarily due to a foreign exchange loss of RM10.962 million and a RM7.291 million reduction in contributions from jointly controlled entities

https://theedgemalaysia.com/node/17203

RM2 billion federal water transfer project shelved, Penang feels the jitters

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Last Updated: 5:05pm, Feb 25, 2014 GEORGE TOWN (Feb 25): Penang’s water supply for its population in the near future has been hit with uncertainty following the federal government’s move to put on hold a RM2 billion project to artificially transfer water from Perak. Chief minister Lim Guan Eng today expressed concern that the Energy, Green Technology and Water Ministry has shelved the project despite the likelihood of more droughts such as the one being seen by the country now. He said the decision was made known to the state government in a letter late last year.     The Perak-Penang Water Basin Transfer project was approved by the ministry itself on June 30 last year. Lim stressed that the project, which would take close to a decade to complete, is needed to ensure adequate water in the next 10 to 15 years which is when the state projects a shortfall in supply to be felt. This scenario is especially acute in light if the current drought pattern and global climate change. “The ministry says there is no need to start the project now as there is enough water,” Lim, who is also Penang Water Supply Corporation (PBAPP) chairman, said. He added that there was no indication given of how long the project would remain deferred. The project entails pumping raw water from Sungai Perak in Perak via a new tunnel through Sungai Ijok and Sungai Kerian to be constructed across the highlands dividing the Sungai Perak-Sungai Kerian basin. The raw water would then be extracted from Sungai Kerian near an existing barrage in Penang for subsequent treatment at the proposed Kerian Water Treatment Plant in Nibong Tebal. Lim was speaking at a press conference after attending the PBAPP’s briefing on its ‘Aqua Save Programme’ for companies at a hotel here. Also present was PBAPP’s corporate affairs manager K Jeyabalan. Water use in Penang above national average In his speech, Lim pointed out that total water consumption in the state has increased tremendously since 1999. “Penangites used 302 litres of water per person per day at home in 2013, as compared to 215 litres in Malaysia’s national average, 155 litres in Singapore and 165 litres as recommended by the United Nations,” he said. In contrast, Penang’s non-revenue water (NRW), or water that is lost before it can reach consumers, is the lowest in the country at 17.6% compared to the national average which is about 34%. Its water tariff is also the lowest among the states in Malaysia, he added. Lim however lamented that the surcharge imposed by PBAPP on consumption of water has not had the intended effect in reducing usage. He said this was so despite education and awareness programmes by the state on the issue of excessive water usage. “Wait until this drought crisis is over, and see what we do to bring consumption down,” he said. Presently, 80% of Penangites’ daily water resources come from the Muda River which flows from Kedah to Seberang Perai. “We draw out water downstream. In the age of global climate change, we do not know when the next drought will be,” Lim said. Current supply in dams On the current supply situation in Penang, Lim said there will be no immediate rationing of water as the state has sufficient stock in storage at its three dams until April. However, as a precautionary measure, PBAPP will conduct a review if there is insufficient rainfall by March 31.   Meanwhile, the expansion of the Mengkuang Dam in Seberang Perai is now about 40% complete, and slated to be completed in two years. When the expanded dam is ready for use, it would be able to hold up to four months’ supply of water for the state without any rain. “If we reduce wastage of water we can increase the supply in the dam to up to six months,” Lim said. For more stories, go to www.fz.com, the website for freedom of expression and fairness in articulation.

https://theedgemalaysia.com/node/97422

#Flash* Hartalega to increase average capacity by 15% p.a. with new Sepang plant

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Flash: Hartalega to increase average capacity by 15% p.a. with new Sepang plant

https://theedgemalaysia.com/node/26896

OSK-UOB increases energy fund size to 600m units

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KUALA LUMPUR: OSK-UOB Unit Trust Management Bhd has increased the size of OSK-UOB Energy Fund to 600 million units on the back of strong and consistent demand for its units from investors. In a statement today, OSK-UOB Unit Trust said the initial units offered for subscription on the fund's launch in March 2009 were 400 million units. "Our investors' enthusiastic demand for the units of this fund has been good throughout the period and since its launch date. This exercise to increase its fund size is required to meet the steady and constant stream of applications for its units," said CEO of OSK-UOB Unit Trust CEO Ho Seng Yee. He said the fund was aimed at providing long term capital appreciation through an investment linked to the global energy sector. "Since its launch last March 2009 to year ended December 2009, the Energy Fund has given our investors a total return of 13.7% on the initial offer price of 50 sen per unit."

https://theedgemalaysia.com/node/51085

Red flags in Linear Corp’s special audit

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KUALA LUMPUR: Results of a special audit on financially distressed Linear Corp Bhd showed that the company’s previously announced King Dome project was among one of the components of a scheme designed to inflate the group’s profits for 2007 and 2008. The special audit report by PricewaterhouseCoopers (PwC) also pointed out that the Linear group’s financial statements from 1999 to 2008 may have been overstated. “In respect to the financial years ended Dec 31, 1999 to Dec 31, 2007, Linear group’s inventories may have been overstated by about RM8 million on an annual basis,” stated the report. The RM8 million was tied to the sale of cooling tower spare parts that involved non-existent stocks. It should be noted that only the executive summary portion of the report was made available on Bursa Malaysia’s website. Ultimately, PwC summarised, there had been breaches in Linear’s internal processes in relation not only to the King Dome project but also in the purported sale of solar panels and non-existent cooling tower spare parts. According to PwC, if the aforementioned sales are stripped out, Linear’s audited revenue for FY07 would decline from RM158.2 million to RM41.6 million. It would also mean the company registering a loss before tax of RM12.9 million compared with a pre-tax profit of RM6.7 million. It would be a similar story for FY08, where audited revenue would drop to RM17.8 million from RM52.7 million. Linear would be in the red to the tune of RM3 million compared with its stated pre-tax profit of RM4.9 million. Linear was thrust into the limelight in December 2009 when it announced that its subsidiary LCI Global had received a letter of award (LoA) from Seychelles-based Global Investment Group Inc for the design, construction, completion and commissioning of a 350,000 RT (refrigerated tonnes) district cooling plant in Manjung, Perak, for the King Dome project. Eyebrows were raised over the project’s RM1.67 billion price tag, which some had questioned as being extremely high for a cooling system. It was then announced that the project had been moved to Johor, but PwC said it had not been able to find evidence to support the existence of the project. Linear’s troubles have been well documented in the press. The company had to pay out its entire cash hoard of RM36 million, twice without board approval, in order to secure the project. But the cracks had already started to show even before the King Dome project came on the scene. In late September 2009, Linear was served a writ of summons by EON Bank Bhd for non-payment of interest of RM133,000 on an overdraft facility taken by subsidiary LCI Global Sdn Bhd. Then in December the same year, Linear was served another writ of summons by RHB Bank Bhd for a RM2 million banking facility taken out by 70%-owned subsidiary BAC Cooling Technology Sdn Bhd. Based on the truncated portions of the report made available on Bursa Malaysia, PwC named an individual “Alan” as one of the key individuals behind the troubles at Linear. Although his full name is not given, the Alan in question may be Linear’s former director Alan Rajendram Jeya Rajendram. On June 21, 2010, Linear announced it had received a statutory declaration and letter of indemnity dated June 17 from Rajendram in which he endeavoured to “deliver the project” or “indemnify” the company in the event of losses. Rajendram was charged by the Securities Commission on June 24 last year, ironically not for the saga at Linear, but for alleged securities fraud and eight other offences at LFE Corp Bhd, another public listed company in which he was a director. This article appeared in The Edge Financial Daily, June 29, 2011.

https://theedgemalaysia.com/node/44470

RHB Research maintains Outperform on Amway, fair value at RM10.23

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KUALA LUMPUR: RHB Research Institute said   Amway’s FY12/10 net profit of RM78.3 million (+7.9% on-year) was below expectations, accounting for 94% and 95% of its and consensus forecasts respectively. The research house said on Thursday, Feb 17 the main variance to its forecasts was the higher-than-expected selling and distribution expenses during the year, which was 14% higher than its estimates. Amway declared a fourth interim single tier dividend of 9.0 sen for the quarter, bringing its full-year FY10 dividends to 66 sen, 3 sen higher than the research house’s projected 63 sen, and 37.5% higher than FY09’s 48 sen. This translates to net payout of 130% for FY10 (FY09: 109%) and a yield of 7.6%. ‘We are maintaining our FY11-12 forecasts, pending Amway’s analysts’ briefing this 22 Feb. We also introduce our FY13 forecasts. Our fair value is maintained at RM10.23 based on unchanged WACC of 8.9%. Maintain Outperform,” said RHB Research.

https://theedgemalaysia.com/node/70276

Highlight: Ringgit to stay volatile, driven by US outlook, says HSBC

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KUALA LUMPUR (Nov 13): The Ringgit will remain relatively volatile as it will be driven by external factors, specifically the economic outlook in the US and Federal Reserve tapering, said HSBC Bank. Speaking at the HSBC Economic and FX Outlook 2014, Paul Mackel, who is the head of Foreign Exchange Research in the Asia Pacific, said his forecast for the USD/MYR rate at end-2014 would be RM3.30. But the market consensus for end-2014 is RM3.20. “We believe the ringgit will be on a bumpier ride going into next year. But it will not be as volatile as compared to the Rupee or Rupiah,” said Mackel. “We had the general election and the Budget 2014 tabled, so those are in the ‘rear view mirror’. Now, we have to consider drivers going forward and that is the external factors, especially the US,” he added. “So what we really want to stress is: it is not a USD-ringgit issue per say, but how the market will respond to the changing dynamics in the US growth outlook and also the Federal Reserve monetary policy.” Mackel stressed that the US dollar is moving towards more ‘solid ground’. He said the USD was slowly strengthening and would pull higher against many currencies. Drivers of the exchange rate would be heavily influenced by the external factors, instead of the domestic factor. “There are clear risks. If the US shutdown were to occur again, then markets will probably view the USD negatively again.” Mackel noted the Federal Reserve’s quantitative easing might have a 50% chance of tapering in December this year. Additionally, Mackel said the ringgit will not be an outperformer in Asia for some time due partly to Malaysia’s thinning current account surplus. He said the market had priced in these reasons in the middle of the year, noting the nation’s current account is not as big as it used to be. “Nevertheless, foreign investors are still heavily investing in the Malaysian market which is a good thing. We see commitment there as not much money has flowed out of the bond market,” said Mackel. “But there is a source of volatility in the exchange rate, should investors be hedging their underlying portfolio risks.”

https://theedgemalaysia.com/node/47809

FBM KLCI pares down gains

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KUALA LUMPUR: The FBM KLCI rebounded on Monday, April 18 and briefly surpassed the 1,530 point-level before paring down some of its gains. Regional markets mostly retreated on renewed nervousness ahead of quarterly earnings results and lingering worries about indebted euro zone countries. Sarawak-based companies were in focus today after the weekend state election that saw Barisan Nasional retain its two-thirds majority to continue governing the state. At 5pm, the benchmark index was up 5.98 points to 1,527.92, lifted by gains including at Genting, YTL Corp, CIMB and Gamuda. The index had earlier risen to its intra-day high of 1,533.18. Gainers led losers by 445 to 277, while 287 counters traded unchanged. Volume was 1.03 billion shares valued at RM1.49 billion. At the regional markets, Hong Kong’s Hang Seng Index fell 0.74% to 23,830.31, Japan’s Nikkei 225 lost 0.36% to 9,556.65, Singapore’s Straits Times Index was down 0.28% to 3,133.38, South Korea’s Kospi shed 0.13% to 2,137.72 and Taiwan’s Taiex edged down 0.04% to 8,714.48. Meanwhile, the Shanghai Composite Index gained 0.22% to 3,057.33. BIMB Securities Research said most of the key regional bourses ended lower today amid concern on tightening measures by key emerging countries which could potentially derailed the economic growth. “Meanwhile, the sentiment was also slightly affected by China’s increase its reserve requirement ratio by 0.5 percentage points, to cool off the country’s inflation. “Despite poor regional performance, the FBM KLCI rebounded today thanks to positive news flow in local market,” it said in a note April 18. On Bursa Malaysia, F&N was the top gainer today and rose 68 sen to RM16.96; Genting was up 34 sen to RM11.14, Tahps 33 sen to RM4.83, Hong Leong Bank 20 sen to RM10.50, Coastal Contracts 19 sen to RM3.44, YTL Corp 18 sen to RM7.90, Gamuda 14 sen to RM3.83 and CIMB seven sen to RM8.30. Among the Sarawak-based stocks, Ta Ann rose 22 sen to RM6.33, HSL 16 sen to RM1.79, CMSB 11 sen to RM2.37, Subur Tiasa and Naim Holdings seven sen each to RM3.20 and RM2.99, Jaya Tiasa six sen to RM6.35 and Encorp three sen to 85 sen. Radio frequency identification (RFID) solutions provider Smartag Solutions Bhd, which made its debut on Bursa Malaysia today, was the most actively traded counter this morning. The stock rose seven sen to 38 sen with 124.5 million shares done. Other actives included DBE Gurney, Karambunai, CIMB, Focus, Axiata, Ramunia and MAA. Decliners included Aeon, BAT, PPB, Shell, Warisan, MPI, UMW and IOI Corp.

https://theedgemalaysia.com/node/53347

Malaysian Pacific Industries 4Q hit by strong ringgit, rising prices

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KUALA LUMPUR: Malaysian Pacific Industries Bhd (MPI) net profit for the fourth quarter ended June 30, 2011 slumped to RM2.59 million from RM34.78 million a year earlier, due mainly to lower revenue and a stronger ringgit against the US dollar. The company said on Tuesday, Aug 16 that its revenue for the quarter fell to RM342.38 million from RM373.63 million in 2010. Earnings per share was 1.34 sen while net assets per share was RM3.86. For the financial year ended June 30, MPI’s net profit fell to RM58.77 million from RM105.41 million in 2010, despite posting an increase in revenue to RM1.42 billion from RM1.39 billion. Reviewing its performance, MPI said the appreciation of the ringgit against the US dollar and rising commodity prices continued to pose challenges to the company. “However, the group will continue to implement the necessary measures to ensure satisfactory performance for the financial year ending June 30, 2012,” it said.

https://theedgemalaysia.com/node/93547

Malaysia's economy set to expand in 2013 and 2014 says Najib

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KUALA LUMPUR, (Aug 1): The Malaysian economy is set to continue to expand in 2013 and 2014 albeit with a slight moderation in growth, said Prime Minister Datuk Seri Najib Tun Razak. He said domestic demand will continue to anchor growth amid the continued moderation in external demand, with the growth to be mainly driven by the private sector and supported by the public sector. "There are however risks to growth, especially from the external environment," he said in a press conference after attending Bank Negara Malaysia's (BNM) board briefing here today. Najib said global growth is expected to continue to remain modest as growth in the major advanced economies will still be affected by the ongoing structural adjustments and policy uncertainty. He said Malaysia could face increased volatility in the financial markets as these major economies are calibrating their policies. "Given this challenging environment, BNM has put forward a number of proposals to strengthen our economic resilience and to accelerate our economic transformation agenda to become a high value-added and high-income economy," he said. In addition, Najib said the government is committed to strengthening the country's macro and fiscal position. "We have put in place a fiscal committee, we are looking at some challenges and all these will be addressed shortly, particularly in the forthcoming budget," he said.

https://theedgemalaysia.com/node/3620

BMW Malaysia bids 5th generation 5 Series farewell

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KUALA LUMPUR: BMW Group Malaysia bid adieu to the fifth generation BMW 5 Series, a premium sedan that was touted as pivotal to the success of the brand here. The group observed the last of 6,732 units of the locally assembled model rollout of its semi-knocked down (SKD) plant that is shared with Sime Darby Bhd subsidiary Inokom Corporation Sdn Bhd in Kulim, Kedah. So far, the car had been a hit with 7,735 units sold, said group corporate communications manager Sashi Ambi in a statement on Thursday, April 22. "The fifth generation BMW 5 Series has been an old friend to many of us, especially to those of us at BMW Group Malaysia as the car has been present here for as long as the company itself!" he said. Having sold over a million units worldwide, the fifth generation BMW 5 series was recognised as the world's best-selling car in its segment from 2005 to 2008. BMW Malaysia production manager and plant representative Manfred Zink said: "BMW 5 Series is the first 5 series to be assembled in Malaysia and the car has been with us from the very start of our days at the Associated Motor Industries (AMI) plant in Shah Alam. "When we moved our new premises here at the Inokom Corp plant in August 2008, it was the first batch of cars we put into production.” Inokom Corp chief operating officer Zainal Osman said the setting up of BMW 5 Series assembly facilities in Kedah led to the introduction of key technologies into the local automotive industry as well as the creation of over 400 skilled and professional jobs for Malaysians. The fifth generation BMW 5 Series will make way for the sixth generation BMW 5 Series' entry into Malaysia next month. BMW Malaysia expects the new model to become a key contributor to its profitability going forward.

https://theedgemalaysia.com/node/60741

Lee Hwa Beng sets record straight on PKFZ

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PETALING JAYA: Public duty and wanting to set the record straight were the driving forces behind former Port Klang Authority (PKA) chairman Datuk Lee Hwa Beng’s book entitled PKFZ: A Nation’s Trust Betrayed. Lee said it had always been his mission when he took up the position in PKA to reveal all to the public on the Port Klang Free Zone (PKFZ) scandal, which dogged the headlines with a hefty RM12.5 billion price tag. “I have no intention to hurt anyone but I just want to tell the truth. In my mind, the truth will set me free,” he said. Lee’s book, which will be launched today, recounts events surrounding one of the biggest scandals in recent times where two former transport ministers have been charged in court. It also reintroduces the readers to the various individuals who were involved in the projects. He stressed that the aim of writing the book is to set the record straight as the scandal has spanned 12 years involving many personalities, including three prime ministers, four transport ministers and five PKA chairmen, including him. “People will remember two things about the PKFZ fiasco. (One) There was big money involved but they don’t know how much. Secondly, mostly MCA was involved… and they will know me as one of those MCA people, the chairman of PKA. “The current leadership of PKA and the Transport Ministry have undone certain things that I did during my time. I have to put the record straight,” he told The Edge Financial Daily in an interview. Despite his book covering the wrangling behind the scenes during his tenure at PKA, and the tackling of the PKFZ issue, Lee stressed that what he has written is merely the tip of the iceberg. “There are many things that I can’t tell. There are many things that I have no access to as the information is with the Transport Ministry, Finance Ministry, Cabinet and also those professionals involved such as bankers and bond arrangers. “Only the police and MACC can have access. There are a lot of stories there definitely,” he said, fully aware that he has to be mindful of the ongoing cases in court, and the Official Secret Act (OSA). Keeping his project under wraps, Lee began work on the book after he learnt that his tenure as PKA would not be renewed last March. On the potential lawsuits arising from his book, Lee said: “I am prepared for them… I owe it to the public to tell as much as I can, so I take this risk.” Lee devoted a couple of chapters to Wijaya Baru Sdn Bhd, formerly owned by Datuk Seri Tiong King Sing who also owns Kuala Dimensi Sdn Bhd, the turnkey contractor for PKFZ. He said that during his research, he found that the company was formerly known as Pacific Baru Sdn Bhd, which was related to the Bakun project. “Basically it is to tell the public the person he (Tiong) is or he was. Lee also denied having timed the publishing of the book to coincide with the general election. He is also undaunted that he has written a book while still being a party member of MCA. “This is a financial scandal that involved MCA leaders. It is better to tell the truth than to hide it. By telling the truth, the party can rise up again. Otherwise it will forever be clouded in this scandal. Interestingly, DAP’s Lim Kit Siang wrote the introduction in Lee’s book. “Nobody can deny the role played by DAP and its leaders in exposing this fiasco. I invited him (Lim) to recognise the role played by DAP and its leaders,” explained Lee. Lim has also been invited to his book launch. Lee has pledged to donate the entire royalty from the sale of the book to charity or an NGO. This article appeared in The Edge Financial Daily, April 17, 2012.

https://theedgemalaysia.com/node/31346

Analysts: Delay in CIMB Thai’s dual listing a non-issue

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BANGKOK: The listing of CIMB Group will be delayed for a few months from June, the Stock Exchange of Thailand (SET) said yesterday. “CIMB needs more time to study legal issues clearly,” Reuters cited SET chief marketing officer Vichet Tantiwanich as telling reporters. The Malaysian bank owns 93% of CIMB Thai Bank. In early May, CIMB said it would stick to its plan to seek a listing on the Thai bourse in July this year despite the current political crisis in Thailand. In Kuala Lumpur, Joyce Goh reported that banking analysts were unfazed by the delay in CIMB Group Holdings Bhd’s dual listing in Thailand and did not expect it to impact the local banking group. “Thailand contributes less than 1% to the banking group’s bottom line. Besides, the delay makes sense given the situation in Thailand at the moment,” a local banking analyst said. Another analyst with a foreign research house agrees and points out that it was still business as usual for the banking group. “It won’t make a difference with or without the dual listing in Thailand. It was for profiling purposes. What is important is that business for the banking group isn’t affected by this or the riots... and from what we understand, business is still going on as usual there,” the analyst said. In a written response, CIMB’s head of group corporate communications Effendy Hamid said: “There will always be legal issues as part of any listing process, and especially since two separate jurisdictions are involved, in this case. We had deferred the listing primarily to wait for a more conducive environment for us to achieve our main objective of enhancing brand recognition, as we have mentioned previously.” Analysts reckoned it was CIMB’s dual listing plans in Indonesia that would be more exciting than the one in Thailand. “The Indonesian market is a lot more appealing. Also, contributions from that market to CIMB is a lot more compared to Thailand,” said the local analyst. “The growth potential in Indonesia is there. To build CIMB’s profile in Indonesia through a dual listing would help it enhance momentum in that huge market,” he said. It was its Indonesian unit that had helped boost CIMB’s first quarter results ended March 31, 2010 (1QFY10). The second largest bank in the country saw its 1QFY10 net profit jumping 36.5% to RM838.1 million from RM613.9 million a year earlier, largely driven by contributions from its Indonesian bank and robust regional market performances. CIMB’s Indonesian unit, PT Bank CIMB Niaga Tbk (CIMB Niaga), saw its contribution to the banking group surging 264.7% year-on-year to RM423 million from RM116 million previously. This was attributed to the significant operational improvement and gains arising from the sale of bonds. CIMB Niaga was the largest contributor to group pre-tax profit at 37% versus 14% in the first quarter of 2009. Meanwhile, CIMB Thai registered a RM6 million pre-tax profit contribution in 1QFY10 against an RM18 million loss in 1QFY09. Interestingly, CIMB has started to tighten its grip in the Indonesian market. In an announcement to Bursa Malaysia on May 14, CIMB announced a proposal to acquire an additional 17.1% stake in CIMB Niaga from Khazanah Nasional Bhd for RM1.7 billion, to bring its stake in the Indonesian bank to 97.93% from 78.26%. Early last month, CIMB’s CEO Datuk Seri Nazir Razak said the banking group had informed the Indonesian authorities that it was interested in seeking a dual listing in Indonesia. “We have told Bapepam (the Indonesian Regulatory Authority for Indonesian Capital Market) and they like the idea. Right now, there is no rule for foreign companies to list. Once the rules are out, I will be the first one there. If the listing happens, it will be very exciting,” Nazir had said. Meeting with The Edge in March, Nazir had predicted that by 2015, the earnings contribution from CIMB’s foreign business would surpass that of the domestic operations, and its Indonesian business will become the biggest contributor for the group. For its financial year ended Dec 31, 2009 (FY2009), total non-Malaysian profit before tax contribution to the group was 26%, a clear jump from 11% a year before. CIMB’s shares closed three sen lower yesterday at RM6.89. This article appeared in The Edge Financial Daily, June 8, 2010.

https://theedgemalaysia.com/node/57478

Australian unemployment worst in a decade

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SYDNEY (Feb 13): Australia's unemployment rate in January jumped to 6.0 percent -- its worst in a decade -- with the economy shedding 3,700 jobs amid a turbulent transition away from mining, data showed Thursday. The Australian Bureau of Statistics said the jobless rate increased from 5.8 percent in December, with some 7,100 full-time positions lost, which were only partially offset by 3,400 extra part-time roles. The Australian dollar dived on the data, which compared with analyst predictions of a 5.9 percent headline rate and net gain of 15,000 jobs. It was at 89.52 US cents from 90.11 cents immediately prior to the jobs announcement. It is the highest unemployment has been since the global financial crisis, when it peaked at 5.8 percent, and its worst since July 2003. It also matches the government's forecast jobless peak for the year to June 30. Australia is undergoing a bumpy economic transition with its decade-long Asia-led mining investment boom reaching its peak and the ailing manufacturing sector in dire straits with the announced exit this week of Toyota, its last remaining automaker.

https://theedgemalaysia.com/node/73808

Hiap Huat debuts with a bang, maintains huge gains at mid-morning trades

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KUALA LUMPUR (Nov 26): The country’s only waste oil recycler Hiap Huat Holding Bhd (HHH) debuted on the ACE Market of Bursa Malaysia with a big bang and has maintained its strong performance at mid-morning trades. The stock opened at 32 sen, with a 60% gain above its IPO price of 20 sen per share, on trades of 15.06 million shares. At 10.29 am today, Hiap Huat was traded at 32.5 sen, up 62.5% above its IPO price of 20 sen, on volume of 114.21 million shares. The most actively traded stock and the top turnover had earlier traded at a high of 37 sen and a low of 29 sen. The opening price of 32 sen also exceeded the target price range of analysts at 20-30 sen per share and the company’s net value per share of 12 sen as at end-September 2012. At the listing ceremony today, HHH’s group managing director Chan Say Hwa said: “I am happy with the opening share price. The share performance was within our expectations.” “The share subscription of the company’s retail portion was over-subscribed by 136 times. This shows the market’s confidence in the company,” he added. HHH’s independent non-executive chairman Zulkifly bin Zakaria said at the listing ceremony: “Funds raised from the listing exercise will be used to finance the company’s expansion into developing countries that harbour potential for our recycled products like Indonesia, Vietnam, Myanmar and the Philippines.” Hiap Huat has raised RM17mil from its initial public offer (IPO). The group is estimated to have a market capitalisation of RM66.7 million upon listing, said the company in a statement. The IPO comprised 85 million new 10-sen shares, of which 80 million were placed out and the remaining five million units were offered to the public at 20 sen per share. In its prospectus, HHH said it would utilise RM8.2mil for working capital, RM4.5mil for capital expenditure, RM2.3mil to fund the listing process and the remaining RM2mil to repay bank borrowings. Last week, the company said it posted a net profit of RM2.24 million on the back a revenue of RM9.87 million for the quarter to end-Sept 2012. It net asset value per share was 12 sen. For the nine months to end-Sept 2012, its accumulative net profit was RM4.98 million, against revenue of RM28.15 million. The company is a used oil recycler. Its core activity is collecting, recycling, re-refining and producing recycled products. The group stores, treats and recycles waste oil collected from industrial and commercial companies and then formulates them into end products for end consumers. The group's products are sold under “AF1”, “Top Up”, “NEKKO”, “Cap Rumah” and “Flag” names.

https://theedgemalaysia.com/node/54700

TSH Resources is ripe for the picking

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TSH Resources Bhd(Sept 12, RM3.12)Maintain buy at RM3.21 with target price of RM4.35: We hosted TSH on a two-day non-deal road show in Singapore recently. TSH highlighted that its large immature estates in Indonesia will be its key earnings driver. In June 2011, 39% of its total planted areas were immature against 53% as at end-December 2010. As these mature progressively over the next five years, we expect fresh fruit bunches (FFB) volume to grow at a three-year compounded annual growth rate (CAGR) of 27%. To accommodate output from its 8,000ha maturing estates in East Kalimantan next year, a new 60 tonne per hour mill will be commissioned there by 1H12. New plantings in Indonesia were slow due to uncertainty over the deforestation moratorium in 1H11 (only 630ha planted as at June 2011), but we expect its expansion to pick up next year to 3,000ha. TSH continues to acquire greenfields to ensure it has enough landbank for expansion. We understand the group has also implemented the SAP system to ensure effective operations in Indonesia. TSH recently won approval to plant Malaysian Palm Oil Board (MPOB)-franchised Wakuba ramet (high quality clones) at its Indonesian estates. Initial harvest (as early as year two from planting) from its Sabah trials looks promising. It is planning large-scale planting of Wakuba ramet at its Indonesian estates next year. Under ideal conditions, this clone can achieve oil extraction rate (OER) of up to 26% (versus 21% for conventional seeds), according to MPOB. We estimate a 5% increase in OER could result in additional RM150 million to our FY18 earnings forecast (not imputed, pending actual results). Within our regional coverage, TSH has the second highest three-year CAGR for FFB output, after JA Wattie. It is a top pick, offering 36% upside to target price. The company bought back 2.4 million shares (0.6% of issued shares) during May and June 2011, signifying the management’s confidence in TSH’s prospects. — Hwang DBS Vickers Research, Sept 12 This article appeared in The Edge Financial Daily, September 13, 2011.

https://theedgemalaysia.com/node/54447

#Stocks to watch:* Telcos, Carlsberg, Pintaras Jaya, UOA Devt

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  KUALA LUMPUR: Trading on Bursa Malaysia could be range bound on Thursday, 8 in the absence of strong local corporate newsflow to attract investors interest into riskier equities but the late Wall Street bounce of more than 2 percent on Wednesday could help lift the sentiment. The gains on Wall Street reversed three days of losses after Germany's top court smoothed the way for Berlin's participation in bailouts that could ease Europe's debt crisis. But investor caution that there remains a long road to recovery was underscored by light trading and continued high volatility as shown in the CBOE VIX volatility index, Reuters reported. The Dow Jones industrial average gained 275.56 points, or 2.47 percent, to 11,414.86. The Standard & Poor's 500 Index rose 33.38 points, or 2.86 percent, to 1,198.62. The Nasdaq Composite Index added 75.11 points, or 3.04 percent, to 2,548.94. Notable events on Thursday include Prime Minister Datuk Seri Najib Tun Razak officiating at the Greentech & Eco Products Exhibition and Conference Malaysia at the KLCC. The theme of the conference is “A Green New Deal, The Next Frontier”, which could see the Premier announcing more details about the government’s drive into green technology. Najib is also scheduled to provide an update on the Economic Transformation Programme later in the morning, as the ETP sets the economy on a firmer footing via various projects ranging from the mass rapid transit (MRT) to the oil and gas sector. On the economic front, Bank Negara Malaysia will announce the conclusion of its monetary policy committee meeting. Economists said BNM is likely to keep the overnight policy rate at 3% up to mid-2012 amid uncertainties in the global economic outlook. At Bursa Malaysia on Wednesday, the FBM KLCI closed 10.24 point higher at 1,464.61. Trading volume shrunk to 650.39 million units. However, the broader market was positive with gainers beating losers 439 to 240. Telecommunication stocks could continue to see trading interest on the back of some mild local fund buying of Telekom Malaysia and Axiata. DiGi will be suspended for a corporate announcement. Stocks to watch include Carlsberg Brewery Malaysia Bhd,  Pintaras Jaya Bhd, UOA Development Bhd, Fututech Bhd and Unisem (M) Bhd. Carlsberg expects a challenging year in 2012 due to rising production costs and is looking at increasing its product prices next year. Its managing director Soren Ravn expected rising input costs for its products, particularly the prices of barley - a key material in brewing beer - which could be 35% to 40% higher next year Pintaras Jaya’s unit won a RM54.85 million contract for the substructure of a commercial and residential development in Ampang here. Its unit Pintaras Geotechnics Sdn Bhd had received a letter of award dated Aug 22 from Oasis Garden Development Sdn Bhd. UOA Development’s subsidiary Ceylon Hills Sdn Bhd has awarded a RM101.36 million construction job for a 27-storey hotel suites project off Bukit Ceylon in Kuala Lumpur to its unit Allied Engineering Construction Sdn Bhd. The project was for the construction of the main building and infrastructure of the One Bukit Ceylon Hotel Suites. Fututech’s executive chairman Tee Eng Ho and director Tee Eng Seng have launched a takeover offer for the remaining 49.01% shares in the company at 50 sen each. They had also offered to acquire the remaining 18.59 million warrants at nine sen each. However, the proposals are unlikely to excite investors. Fututech shares closed at 48.5 sen and the warrants untraded at 13 sen. Unisem is looking into testing a wide variety of integrated circuits (ICs) ranging from low-integration devices up to high-integration radio frequency (RF) devices, opening up new markets for its Europe and Asia factories. Palette Multimedia Bhd has proposed a renounceable rights issue of up to 154.51 million warrants at an indicative price of three sen each to raise up to RM4.63 million. The ACE Market company said on Wednesday, Sept 7 the warrants would be on the basis of one warrant for every two shares held. Under the minimum scenario, it would raise RM4.35 million of which RM3.45 million would be used for working capital. Under the maximum scenario, it would raise RM4.63 million of which RM3.73 million would be for working capital.

https://theedgemalaysia.com/node/57964

PPB Group 3Q earnings fall 20.3% to RM229m, Wilmar weighs

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KUALA LUMPUR (Nov 22): PPB Group Bhd’s earnings fell 20.3% to RM229.40 million in the third quarter ended Sept 30 from RM287.99 million a year mainly due to lower contribution from its associate, Wilmar International Ltd. It said on Tuesday the lower Wilmar contribution had weighed its earnings despite the better performance by the grains trading, flour and feed milling division. PPB’s revenue rose 23.6% to RM710.26 million from RM574.53 million while earnings per share were 19.35 sen from 24.29 sen. It said earnings in the nine months ended September fell 55.4% to RM710.20 million from  RM1.73 billion despite that revenue rose 18.5% to RM1.966 billion from RM1.659 billion. “The increase (in revenue) was due mainly to higher flour revenue and an increase in grains trading volume recorded by the grains trading, flour and feed milling division,” it said. PPB added the environmental engineering, film exhibition and distribution, chemicals trading and manufacturing, livestock farming as well as consumer product divisions also contributed higher revenue for the period under review.

https://theedgemalaysia.com/node/24194

#Today's Diary* What to expect on Dec 29, 2009

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1. PM Datuk Seri Najib Razak attends Sarawak Progressive Democratic Party's (SPDP) 7th Annual General Assembly at Suarah Kuching Hall, Sarawak at 10am 2. PM attends Parti Bersatu Rakyat Sabah (PBRS) 14th Annual Delegates Assembly at The Pacific Sutera Harbour, Kota Kinabalu at 2pm 3. PM attends Christmas Open House at Padang Merdeka, Kota Kinabalu at 4.30pm 4. Chief Secretary to the Government Tan Sri Mohd Sidek Hasan attends International Islamic University Malaysia (IIUM) staff appreciation ceremony 2009 at Renaissance Hotel at 8pm

https://theedgemalaysia.com/node/11702

Sunway wins RM88m Impiana KLCC extension project

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KUALA LUMPUR: Sunway Holdings Bhd subsidiary Sunway Construction Sdn Bhd has accepted a letter of award for an RM88 million contract from Heritage Lane Sdn Bhd for the construction of the proposed phase two of Impiana KLCC Development in Jalan Pinang here. In a statement yesterday, Sunway said the project was an extention to the existing hotel wings comprising an additional three-storey car park podium and 22-storey tower block above the existing four-storey car park podium. Heritage Lane is a wholly owned subsidiary of KLCC Holdings Sdn Bhd. It said it was targeted to be fully completed on Nov 2, 2011, with the completion of a link bridge within 43 weeks from the commencement date, and would contribute positively to its earnings from the financial year ending Dec 31, 2010 onwards.

https://theedgemalaysia.com/node/15896

Guan Eng urges Penangites to remain calm, amidst provocations

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GEORGE TOWN (Jan 27): Penang Chief Minister, Lim Guan Eng, today called on the people in the state to stay calm, and not succumb to the dictates of provocative actions by extremists bent on sowing discord. He said that the State Government viewed seriously, provocative acts carried out in the past few days, and was sure that they were done by those who wanted to raise the ire of Muslims. "Provocative banners, hung at several churches around the state, were not done by them; it could be the work of those wanting to rouse the anger of Muslims. "I want the people to be calm and not allow irresponsible parties to disrupt unity," he told reporters, after visiting a church in Farquhar Street, here. At 1.30am today, two molotov cocktails were lobbed into the compound of the church, but no serious damage was caused. The incident was said to be related to the banners put up with the message 'Allah is great, Jesus is the son of Allah', hung outside churches in Farquhar Street, Sungai Pinang, Pulau Tikus and Gelugor here. Meanwhile, Penang Umno Liaision Committee chairman, Datuk Zainal Abidin Osman said, the party condemned the action of throwing explosives at the church and hoped that the police would promptly investigate the case. "Penang Umno is confident, the issue on the word Allah can be peacefully solved, via consultations with all related parties. We also urge all to be calm, and not act impulsively," he said in a statement today. He stressed that inter-community unity and harmony must be preserved and defended, for the coming generations.

https://theedgemalaysia.com/node/20558

LCL-Sunway JV eyes Abu Dhabi projects

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According to their announcements via Bursa Malaysia yesterday, under a shareholders’ agreement, the two companies would procure a company known as Best Expertise Sdn Bhd, which would later change its name to Sunway-LCL Interiors Sdn Bhd, to bid for jobs there. SunCon through its subsidiaries is currently involved in two joint-venture projects in Abu Dhabi in the construction of buildings. LCL has recently completed some major IFO jobs in Dubai. “The experience gained from SunCon Group’s projects, coupled with LCL’s experience in IFO works in Dubai, would enable SunCon and LCL to tap on potential IFO jobs in Abu Dhabi,” said LCL. LCL and Sunway would fund its investment in the Sunway-LCL JV through internal funds. Sunway would hold 60% in the venture while LCL would own the remainder. The statements issued separately by LCL and Sunway noted that the economy of the capital emirate of the UAE, the world’s fifth largest oil exporter, should expand 54.4% over the five-year period. It said Abu Dhabi was investing windfall oil revenue from an almost six-fold rise in oil prices since 2002 into diversifying its economy away from a reliance on oil exports, channelling money into real estate and heavy industry. It also cited the Abu Dhabi government’s commitment to its target of a greater role of non-oil economic diversification to reach 45% of Abu Dhabi’s GDP in 2010 from 40% in 2005. This article appeared in The Edge Financial Daily, October 22, 2009.

https://theedgemalaysia.com/node/36976

CLSA raises target price for Genting S’pore to S$3

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KUALA LUMPUR: Genting Bhd group’s newly-opened casino in Singapore is deemed a growth story within a far-from-mature gaming industry in the island-nation, enabling Resorts World Sentosa (RWS) to rack up market share and build its earnings base. Analysts said the integrated resort (IR) undertaken by the Malaysian firm’s 52% subsidiary Genting Singapore Plc stood to benefit from a relatively untapped base of overseas visitors that would fuel earnings as RWS expanded its operations. This has prompted analysts to revise upwards their estimates for Genting Singapore. “Industry revenue growth will remain very high as the IRs are yet to ramp up — we expect robust demand from the local and tourist markets. The company is on track to generate high free cash flow, which will not be eroded by new supply. “Penetration for gaming is still low given it’s a new market,”  said CLSA Asia-Pacific Markets which recommends a buy on Genting Singapore with a 50% higher target price of S$3 from S$2 previously. CLSA said its latest stance for the stock was by virtue of the gaming company’s improving earnings and margins visibility which pointed to a potential upside in the company’s financials considering that it was still in the start-up phase. Estimates by the research house indicate that Genting Singapore, formerly known as Genting International Plc, could register an earnings before interest, taxes, depreciation and amortisation (Ebitda) compound annual growth rate of 18% between 2011 and 2015. CLSA has a long-term Ebitda margin assumption of 56% for the gaming firm. Shares of Genting Singapore fell eight sen or 4% to close at S$1.91 yesterday for a year-to-date gain of 46.92%. Parent company Genting Bhd saw its share climbing as much as 45 sen or 4.7% to RM10.02 in intraday trade, the highest in over nine years, before closing lower at RM9.99. CLSA said Genting Singapore’s capital structure was improving rapidly, lending credence to expectations that the company would be in net cash territory by 2012. The research house said there was room for early dividends because Genting Singapore did not have any pre-existing management fees with its parent company. Apart from phase two of RWS which will involve an additional S$600 million to S$700 million (RM1.39 billion to RM1.63 billion) in capital expenditure (capex), the company is  expected to fork out up to S$300 million annually for maintenance, according to CLSA. Casinos aimed at boosting tourism Singapore has legalised casino operations in recent years, in a move to boost its tourism industry against a backdrop of stiff competition from other regional destinations. Under the plan, lawmakers had in December 2004 solicited bids from global companies to undertake the development and operations of two proposed IRs — one each at Marina Bay and Sentosa. In May 2006, US-based Las Vegas Sands was selected to undertake the estimated S$5 billion Marina Bay Sands IR project. In December that year, the Genting International-Star Cruises consortium was selected to undertake the RWS which opened for business in January this year. The S$6.59 billion RWS on a 49ha tract on Sentosa Island comprises a casino, hotels, and other tourist attractions such as Universal Studios. Genting Singapore’s financials improved significantly in the second quarter ended last June. Net profit came to S$396.52 million, or 3.27 cents a share, versus a net loss of S$50.65 million a year earlier, helped by the launch of the RWS. Revenue rose more than eight times to S$979.26  million from S$120.14 milllion. Cumulative half-year net profit amounted to S$246,000 versus a net loss of S$82.52 million a year earlier while revenue climbed more than sixfold to S$1.44 billion from S$225.5 million. As at June 30 this year, Genting Singapore had S$4.16 billion worth of debt obligations against a cash pile of S$3.42 billion. This translates into a net debt position of S$740 million or a net gearing of 16 times based on the group’s equity of S$4.58 billion. Going forward, Genting Singapore’s growth story will be hard for the investment fraternity to ignore and it will be interesting to see how rising expectations of the stock translate into potential gains for shares of its parent company. This article appeared in The Edge Financial Daily, September 15, 2010.

https://theedgemalaysia.com/node/16213

EPFR Global: Record inflows for emerging funds in first week of February

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KUALA LUMPUR (Feb 11): Risk appetite for emerging funds accelerated in the first week of February, as investors stepped up their search for higher returns, according to EPFR Global. In its report released on Friday, it said Emerging Markets Bond Funds pulled in a record setting US$2.14 billion while Emerging Markets Equity Funds absorbed a 68 week high of US$5.8 billion. “That took their year-to-date totals up to US$3.8 billion and US$17 billion respectively versus inflows of US$2.7 billion and outflows of US$11.4 billion for the comparable period last year,” it said. EPFR Global also noted that other risk assets -- or assets perceived to be risky last year -- also attracted strong interest. It cited that High Yield Bond Funds posted their second highest weekly inflow on record, flows into EMEA Equity Funds climbed to a 41 week high and corporate bond funds attracted above average commitments. Europe Equity Funds had their best week in nearly six months and Municipal Bond Funds absorbed over US$1 billion for the second week in a row. “Overall, EPFR Global-tracked Equity Funds absorbed US$9.83 billion during the week ending Feb. 8, a 44 week high, while Bond Funds took in over US$6 billion for the fourth time in the past five weeks,” it said. It also said that Money Market Funds took in US$11.2 billion with over three-quarters of that total going into Europe Money Market Funds. EPFR Global pointed out that better than expected US employment numbers, the perception that Greece would toe the line when it came to meeting the requirements for its next round of bailout funding and the neutral to easing bias evident among most major central banks all bolstered the case for emerging markets in early February. “Investors favored diversified exposure, with Global Emerging Markets (GEM) Equity Funds taking in a record setting US$5.4 billion while Asia ex-Japan, Latin America and EMEA Equity Funds recorded net inflows ranging from US$50 million to US$245 million. “Flows into Asia ex-Japan Equity Funds were again bolstered by the renewed optimism about China’s growth prospects, with China Equity Funds absorbing another $341 million and extending their longest inflow streak since 4Q10. But outflows from Taiwan Equity Funds climbed to a 20 week high as investors booked recent gains and waited to see what slower growth in Europe and China mean for the island,” it said. As for dedicated BRIC (Brazil, Russia, India and China) Equity Funds, it said they recorded their biggest weekly inflow since late 4Q09. Funds coming under the CIVETS (Colombia, Indonesia, Vietnam, Egypt, Thailand and South Africa) theme extended their best run since 2Q11 while Frontier Markets Funds snapped a three week outflow streak.

https://theedgemalaysia.com/node/12863

DRB-Hicom names Pos CEO

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KUALA LUMPUR: Datuk Khalid Abdol Rahman, DRB-Hicom Bhd director for corporate planning, is Pos Malaysia Bhd CEO effective Jan 1, 2012, further etching DRB-Hicom’s influence over the company it gained control of in July this year. The announcement on Khalid’s appointment yesterday came five months after DRB-Hicom group managing director Datuk Seri Haji Mohd Khamil Jamil was named Pos Malaysia’s chairman. Pos Malaysia incumbent group managing director and CEO, Datuk Syed Faisal Albar, had been tapped to fill the CEO chair at Khazanah Nasional Bhd-controlled Malaysia Airports Holdings Bhd (MAHB), The Edge weekly reportedly over the weekend. This had yet been confirmed or denied at press time. MAHB managing director Tan Sri Bashir Ahmad Abdul Majid declined to comment on the report at a press conference on the new KLIA2 on Tuesday. Formerly a Khazanah-controlled entity, Pos Malaysia has had DRB-Hicom as its single largest shareholder since July 1 this year. DRB-Hicom paid RM622.8 million, or RM3.60 apiece, for the strategic 32.2% block in the deal announced on April 22 this year. The sale was part of Khazanah’s decision to sell its non-core holdings. The Employees Provident Fund Board has 11.76% stake in Pos Malaysia while Aberdeen Asset Management Sdn Bhd holds a 6.83% block. When reporting its earnings for the quarter ended Sept 30, Pos Malaysia said its financial year-end had been changed from Dec 31 to March 31. DRB-Hicom’s financial year ends on March 31. Khalid, 55, was appointed alternate director to DRB-Hicom group COO Datuk Lukman Ibrahim on Pos Malaysia’s board in July. Before joining DRB-Hicom as head of corporate planning in August 2006, Khalid was group general manager for corporate planning and business development at Tradewinds Corp Bhd. An accountant by training, Khalid’s earlier rounds in Corporate Malaysia include corporate finance stints with Perdana Merchant Bankers Bhd and Rakyat Merchant Bankers Bhd, according to a statement to Bursa Malaysia. Pos Malaysia, whose shares hit a high of RM3.65 on April 7, is down 24% year-to-date at its RM2.49-close yesterday. There are four “buy’”recommendations on the stock, with the most bullish being OSK Securities, which values Pos Malaysia at RM4.12. Credit Suisse is the only brokerage house with a neutral recommendation, valuing it at RM3.20, according to Bloomberg data. Meanwhile, DRB-Hicom ended at RM2.03 yesterday, up 4.6% year-to-date, but off its recent high of RM2.50 apiece on April 7. The counter has three “buys” versus two “holds”, according to Bloomberg data. At the time of writing, RHB Research Institute’s RM1.90 price target is the most bearish while CIMB Research values the stock at RM3.95. This article appeared in The Edge Financial Daily, December 1, 2011.

https://theedgemalaysia.com/node/90981

Stocks To Watch: Goldis, FFB, Astro, MAHB, Handal, IJM, CBIP.

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KUALA LUMPUR (July 3): Based on news flow and corporate announcements today, stocks that may attract attention tomorrow could include Goldis, FFB, Astro, MAHB, Handal, IJM and CBIP. Goldis Bhd today declared a distribution of three treasury shares for every 100 existing shares held by shareholders. It said the book closure date for the share dividend is July 18, 2013, and ex-date is July 16. Referring to an announcement on May 8 2013, Goldis said in another filing it has abandoned the proposal to distribute Goldis’ equity interest in IGB Corporation Bhd for shareholders’ approval. “The board has arrived at this decision after taking into consideration the negative feedback from shareholders of Goldis on the proposed distribution,” said Goldis. Favelle Favco Bhd’s (FFB) subsidiaries have secured orders for supply of offshore cranes, with the contracts having a total value of RM61.5 million. The company said its subsidiary Favelle Favco Cranes Pte Ltd had received a contract from DP Offshore Engineering Pte Ltd for the supply of offshore crane. The contract is expected to be delivered from end-2014 to early 2015. Another FFB subsidiary, Favelle Favco Cranes (M) Sdn Bhd had received orders from Essar Projects (India) Ltd and Cosco (Guangdong) Shipyard Co Ltd. The contracts are expected to be delivered by the first and third quarter of 2014, respectively. FFB said it expects the contracts to contribute positively to its earnings and net assets for the financial year ending December 31, 2013 and beyond. Astro Malaysia Holdings Bhd is planning to add 18 new transponders in the next three years to double their high-definition (HD) channels and raise revenue. “We have 37 HD channels and we want to double this in the next couple of years in order to add value and encourage our customers to take up our HD services, which will in turn contribute to the group's topline," Astro's CEO Datuk Rohana Rozhan told reporters after the group's AGM today. "We are currently operating on 18 transponders and we expect the additional 18 transponders to be delivered in three phases stating from next year," she said. Malaysia Airport Holdings Bhd (MAHB), a government-linked company, is in the limelight again after Tony Pua, DAP’s national publicity secretary, urged acting Transportation Minister Datuk Seri Hishamuddin Hussein to set up an independent committee to probe the delays in the completion of klia2. At a press conference in Parliament, Pua said the Transport Ministry has to be responsible towards “the klia2 scandal” in view of the fact that its secretary general Datuk Long See Wool sits on the board of directors of Malaysia Airports Holdings Bhd (MPHB). Pua was unhappy with Hishamuddin’s written reply to his questions filed in Parliament regarding the klia2 project. The written reply from the Minister read that MAHB would not suffer losses because there would be no impact on its business and profitability and also that the delay would not affect MAHB’s operations. “If the construction cost increases due to the delay, how would this not affect MAHB’s earnings... I must stress that the Minister has not given the assurance that the cost would not go beyond RM4 billion,” said Pua. Handal Resources Bhd is partnering with an Australian oil and gas (O&G) company in its bid to get the lucrative risk service contracts (RSC) from state-owned Petroliam Nasional Bhd (Petronas). In a filing with Bursa Malaysia, Handal Resources said it had signed a collaboration agreement with Australian-listed MEO Australia Ltd. to consolidate each party’s expertise in the area of marginal oil and gas field development to pursue a RSC agreement with Petronas. Petronas has allocated RM300 billion for its capital expenditure from 2011 to 2015. Handal Resources explained the collaboration is set to tap into MEO’s available expertise and to enhance its business opportunities in the related O&G ventures. IJM Corporation Bhd, the operator of Kuantan Port, will invest about RM2 billion to build a new deep water terminal for the berthing of vessels of up to 200,000 deadweight tonnage, Bernama reported. IJM Chief Executive Officer and Managing Director, Datuk Teh Kean Ming said construction of the new terminal is expected to commence in the first quarter of next year, with a 24-month completion period. Once ready, the new terminal will be able to handle 52 million freight tonnes of cargo, from current 26 million. "We are currently looking at the final design plan. Once our Chinese partner, Guangxi Beibu Gulf International Port Group Co Ltd, comes on board in October this year, we can decide on further specifications. "The proceeds from IJM's 40 per cent stake disposal in Kuantan Port to Guangxi will be used to fund the construction, together with a portion of internal funding," Teh told Bernama. The construction works will be mainly undertaken by IJM. The expansion of Kuantan Port is part of the Malaysia-China Kuantan Industrial Park (MCKIP), in which Guangxi will invest more than RM7 billion directly or via joint ventures with Malaysian companies. CB Industrial Product Holding Bhd (CBIP) announced its unit has secured a contract to build a palm oil mill for RM40.5million in Kunak, Sabah. It said Modipalm Engineering Sdn Bhd has been  awarded by Kemabong Sdn Bhd to build the continuous sterilisation palm oil mill project for its Sepang Palm Oil Mill in Kunak. The award is expected to contribute positively to the earnings of CBIP for the financial years ending Dec 31, 2013 and 2014.

https://theedgemalaysia.com/node/22595

Crest Builder's 3Q net profit up 42%

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PETALING JAYA: Crest Builder Holdings Bhd posted a 42% year-on-year (y-o-y) rise in net profit to RM3.06 million for its third quarter ended Sept 30, 2009 (3Q09). This was on the back of a 15% increase in revenue to RM88.22 million. For the nine-month period, the construction company saw net profit rise 9% to RM10.59 million while revenue was up 5% to RM223.34 million y-o-y.   In a statement to Bursa Malaysia today, the company noted that the improved results were mainly due to higher investment holding income and increased construction activities during the third quarter. “The group continues to bid actively and successfully for construction projects. Continuous effort is being taken to identify strategic measures for improving the group’s construction margin,” it said. As at Sept 30, 2009, the company's loans stood at RM85.3 million compared with RM43.2 million as at Dec 31, 2008. Over the same period, the value of its property, plant and equipment jumped to RM53.1 million from RM14.5 million while cash and bank balances dropped to RM8.5 million from RM18.1 million. The stock slipped one sen to 77 sen today.

https://theedgemalaysia.com/node/87480

#Opinion* Fz says - Bury racial politics or be left behind

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THE divisive outcome of the 13th general election has produced powerful forces on the national stage that will shape Malaysia’s future in unknown new ways. Old political institutions are losing their hold over the country’s imagination as demographic changes and evolving mindsets are pushing the people to adopt new ideas about national politics. As a nation, we must face the challenge of engaging with these developments so that this youthful energy is channelled in positive directions. Our goal should be to put Malaysia on the next stage of its evolution as a democratic nation, where different political movements compete for the people’s support on the strength of the policies they formulate to address specific socio-economic and political issues. For the race-based parties that form the backbone of the Barisan Nasional (BN) coalition, the results of the last two general elections unmistakably show that racial politics is going out of fashion. But before a new political culture that transcends race can be established, our political parties first need to break the mould that was created at the time of the country’s independence over five decades ago. That may be harder for the BN parties to do, since they have to move out of their comfort zone to embrace change. In comparison, the Pakatan Rakyat parties, which are riding on a popular mood for reform, would be more attuned to new approaches to mobilise support. So, for the BN to hold sway among the new generation of voters, it must do much better than to champion with increasing stridency the rights of the respective communities their member parties represent. Indeed, this may be their most urgent challenge if they hope to remain relevant to an electorate that is becoming impatient about the constant barrage of racial and religious rhetoric that is being cranked up by a political establishment that is under siege. The writing on the wall is that questions about the governance of national resources, equitable economic growth, corruption and abuse of power will not go away no matter how much noise is created by beating the racial drums. The national leadership must find the political will to plunge headlong into genuine reform as the 13th general election has proven that the changes which were introduced have not gone deep enough to sway a significant segment of voters. Plainly put, trial balloons about creating a single BN party to win the support of the youth and urban electorate do not articulate the core concerns about race-based institutions, political patronage and lack of accountability that have eroded public confidence in the establishment. The changing times require the powers-that-be to bury racial politics and begin anew, or risk being left by the wayside.

https://theedgemalaysia.com/node/66098

College a no show but refutes allegations

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Last Updated: 7:24pm, Nov 26, 2013 KUALA LUMPUR (Nov 26): Why did a reputable private college who claims that they fulfilled all their obligation towards students who accuse them of cheating and fraud, not turn up for a meeting to clear the air? Greencity International College and Tenaganita were supposed to meet this afternoon, so the former could shed light on allegations by a group of foreign students that they were cheated of over RM20,000 each for a diploma, internship programme and a guaranteed job placement. Tenaganita had yesterday also alleged that the Cruise Management course offered by Greencity International College was not accredited by the Malaysian Qualification Agency (MQA). They also alleged that such a course is not listed with the Ministry of Higher Education. "We call on the authorities to seal the college, arrest the directors for fraud and exploitation of the student visas and ensure all monies due are returned with the assistance of the Embassies," said Tenaganita Executive Director Irene Fernandez. Yesterday, it was revealed that Greencity was ordered by the Consumer Claims Tribunal to return RM19,250 to Indian national Faheem Khan, 24. Faheem, from New Delhi had claimed that he had only attended one class in a year. Faheem Khan also alleged that Greencity which also has students from Nepal, Bangladesh and Pakistan did not operate any classes for the Cruise Management module but they awarded him a certificate that shows he scored 95 percent for the course. Faheem said his student visa states he is here for a Business Management course. However, his offer letter says he is to attend a Cruise Ship Operation Management diploma course but the certificate awarded to him states he attended a “Cruise Ship Diploma”. He also received a Food and Beverages Services Certificate from the college. Greencity meanwhile claims they fulfilled all obligations towards Faheem but he could not cope with the course. "We train them and try to help them to get a placement opportunity to the cruise line but he could not cope with the process and he was not performing," said a college spokesperson, adding that around 80 students have successfully finished their course and are employed by established cruise ship companies. Greencity also refuted claims that they do not run any classes saying that they conduct classes everyday since 2004. On the Food Beverages Services Certificate awarded, the spokeperson says that it is part of the course. "F&B certificate is given to candidates because they will be expected to have F&B services knowledge and also cullinary skill," he said. He said they wanted to help Faheem but in the end he was not satisfied and filed a case. Greencity also contradicted claims by Tenaganita that the course is not approved by MQA. "In Malaysia for accreditation by MQA,the course needs to be a diploma or a course that is two years and above. “This is a skill course so it does not need any accreditation, only approval from the Ministry of Higher Education," said the spokesperson, without explaining why it snubbed Tenaganita today. MQA, when contacted confirmed this. “If it is a short-term course, MQA does not need to accreditate. Only the Education Ministry’ s approval is needed,” said a spokesperson. Greencity provided Fz.com with a certificate of approval by the then Higher Education Ministry. For more stories, go to www.fz.com, the website for freedom of expression and fairness in articulation.

https://theedgemalaysia.com/node/57667

Harvest Court securities continue to slide

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KUALA LUMPUR (Nov 17): Harvest Court Industries Bhd shares and warrants continued to fall sharply on Thursday, Nov 17 after Bursa Malaysia Securities had imposed trading sanctions on Monday. At 9.15am, Harvest fell 44 sen to RM1.05 with 489,500 shares done. The warrants fell 38 sen to 89 sen with 93,000 units done. Under the trading curbs, buyers have to pay upfront for the shares or warrants, hence effectively curbing speculative buying. The trading sanctions were the sternest warning to speculators who had chased up the stock in recent weeks despite that the regulator also issued unusual market activity queries to other penny stocks. Bursa Securities had then said its decision to designate the securities of Harvest and the warrants due to excessive speculation were in the interest of ensuring a fair and orderly market.

https://theedgemalaysia.com/node/55782

KLCI trims gains, sentiment remains cautious

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KUALA LUMPUR: The FBM KLCI trimmed its gains in thin trading volume at the mid-day break on Wednesday, Oct 5 in line with the retreat at the key regional markets. Asian stocks trimmed earlier gains on Wednesday as investors remained sceptical about whether European leaders are going far enough in their efforts to stop the region's sovereign debt woes from sparking a full-blown banking crisis, according to Reuters. Doubts also grew over the sustainability of a rise in U.S. stocks on Tuesday, which came after Federal Reserve Chairman Ben Bernanke eased concerns over the damage to the U.S. economy from a possible Greek default with a promise of more economic stimulus if needed, it said. The FBM KLCI was up 0.54% or 7.29 points to 1,368.67 at the mid-day break. The index had earlier risen to its intra-morning high of 1,374.64. Gainers edged losers by 284 to 219, while 271 counters traded unchanged. Volume was 310.41 million shares valued at RM412.86 million. The ringgit strengthened 0.39% to 3.1910 versus the US dollar; crude palm oil futures for the third month delivery rose RM9 per tonne to RM2,823, crude oil added US$2.10 per barrel to US$77.77 while gold gained US$4.18 an ounce to US$1,628.13. At the regional markets, Japan’s Nikkei 225 shed 0.79% to 8,389.15, Taiwan’s Taiex fell 0.40% to 7,019.54 and South Korea’s Kospi lost 2.17% to 1,669.12, while Singapore’s Straits Times Index edged up 0.11% to 2,533.88. On Bursa Malaysia, BAT was the top gainer this morning and was up 36 sen to RM43.78; DiGi gained 34 sen to RM30, Panasonic 32 sen to RM19.20, PPB 22 sen to RM16.28, Top Glove 20 sen to RM4.46, MMHE 18 sen to RM5.19, IJM Corp 13 sen to RM4.67, while QL Resources and JobStreet gained 12 sen each to RM2.72 and RM2.50. Focus was the most actively traded counter with 14.28 million shares done. The stock gained half a sen to 8.5 sen. Other actives included GPRO, IRCB, Takaso, Axiata, MAA, Palette, DVM, Latexx and Flonic. Meanwhile, decliners included United Plantations, BLD Plantations, KLK, Batu Kawan, Ipmuda, Sungei Bagan, SOP and Uzma.  

https://theedgemalaysia.com/node/95009

#Flash* Energy Comm awards 1,000MW power plant job to Tenaga

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Flash : Energy Comm awards 1,000MW power plant job to Tenaga

https://theedgemalaysia.com/node/47088

Coastal advances at mid-morning

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KUALA LUMPUR: Coastal Contracts Bhd shares advanced on Monday, April after the Edge Weekly reported that Coastal was eyeing a strategic shareholder to diversify into the fabrication business. At 10.30am, Coastal was up 13 sen to RM3.21 with 1.91 million shares done. OSK Research maintained its Buy call on Coastal with a fair value of RM4.85, and said the news was not only within its expectation, but in fact it had envisaged something even bigger for the company. “We believe Coastal could be a potential merger and acquisition target since its share price valuation is appealing and it owns a strategic asset in its 100-acre yard which sits tight in a strategic area, and which is currently being coveted by many O&G operators for conversion to facilitate fabrication or repair and maintenance jobs,” it said on April 4.

https://theedgemalaysia.com/node/29113

Weaker 4Q expected for Tanjong

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Tanjong plc (March 16, RM17.48)Maintain outperform at RM17.48, fair value at RM19.10: Tanjong is expected to report its 4Q results for the financial year ended January 2010 some time next week. Our full-year net profit estimate implies that 4Q net profit could be down by around 20% year-on-year (y-o-y) (ex-4QFY09 exceptionals) and 30% quarter-on-quarter (q-o-q). Both the power and gaming divisions are expected to post weaker earnings y-o-y and q-o-q while we expect a q-o-q drop in contribution from Tropical Island largely due to seasonal factors. For the power division, lumpy items such as business development and bidding costs as well as scheduled maintenance expenses were relatively minimal in 9MFY10 but could skew 4Q’s numbers. As an example, business and corporate development costs alone totalled RM42 million in 9MFY09. A weaker US dollar versus the ringgit (-4.8% y-o-y; -2.2% q-o-q) would also impact the division’s contribution slightly. As for the gaming segment, we expect weaker operating profit for the quarter largely on expectations of a higher prize payout for the number forecasting operation (NFO) division as the ratio normalises. 9M prize payout was low at an estimated 63.3%, as compared to our full-year assumption of 65%. We expect Tanjong to declare an interim gross dividend per share (DPS) of 17.5 sen (4QFY09: 17.5 sen) and a final gross DPS of 22 sen (FY09 final gross DPS: 20 sen). This will bring the total gross DPS for FY10 to 92 sen (FY09: 90 sen) and translates to a gross yield of 5.3%. In our view, growth for the power division would depend on acquisitions. Tanjong targets to double its power capacity to 8,000MW over the next four to five years. As liquidity begins to flow again, we believe there is greater possibility of a new acquisition. As for the gaming division, we believe it is just a matter of time before Tanjong introduces a new game. Assuming the new game brings in around RM1 million in sales per draw, we estimate our earnings projections could be raised by around 2%. There is no change to our forecast for now. We keep our sum-of-parts-derived fair value of RM19.10 and outperform call unchanged. Tanjong’s quarterly numbers have, thus far, reaffirmed our view that the stock is fundamentally solid, with decent gross dividend yields of 5% to 5.5% per annum. — RHB Research Institute, March 16 This article appeared in The Edge Financial Daily, March 17, 2010.

https://theedgemalaysia.com/node/4129

Rubber price close mixed, despite higher TOCOM

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KUALA LUMPUR (Feb 07): The Malaysian rubber market closed mixed, despite a better finish on the Tokyo Commodity Exchange (TOCOM), dealers said. The Tokyo Rubber Futures rebounded from a 18-month low, on the back of a rally in Japanese equities, which brought about positive sentiment for the soft commodity, said a dealer. Another dealer told Bernama that the recovery was a respite for local players, who were hoping for a China-led rebound to boost, post Lunar New Year buying. "The low price had somewhat attracted bargain hunting in the physical market," he said. Meanwhile, the International Rubber Consortium will meet in Singapore over the weekend, to discuss the commodity's near-term outlook against a backdrop of declining prices. At noon, the Malaysian Rubber Board official physical price for tyre-grade SMR 20, rose one sen to 609 sen a kg, while latex-in-bulk slipped 5.5 sen to 453 sen a kg. The unofficial sellers' closing price for tyre-grade SMR 20, increased 14 sen to 611 sen a kg, while latex-in-bulk inched up 3.5 sen to 455 sen a kg.

https://theedgemalaysia.com/node/94301

Bonus and rights issue to fund expansion plans

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KPJ Healthcare Bhd(July 30, RM6.73)Maintain sell at RM6.72 with a new fair value of RM7.14: On Monday, KPJ had announced a one-for-two bonus issue of up to 329,766,487 new ordinary shares of 50 sen each. The entitlement date, it said, will be determined later. It also announced a 1-for-15 rights issue of up to 43,968,866 KPJ shares at an indicative issue price of RM2.80 per rights share. This will include up to 87,937,732 free detachable warrants on the basis of two new warrants for every rights share subscribed. Yet to be determined, the illustrated price of the warrants is RM4.77. The bonus shares will not be entitled to participate in the proposed rights issue. The bulk of the proceeds will be utilised for the construction of the KPJ Bandar Dato’ Onn Specialist Hospital in Johor Baru. Construction work is expected to commence this year while completion is slated for 2016. Phase 1 of the hospital will have a bed capacity of 150 with a total development cost of approximately RM250 million. Meanwhile, RM35 million from the proposed issue will be used to repay part of total borrowings which stands at approximately RM627 million as at July 11, 2013. The remainder will be used to fund day-to-day operations. The proposed issue will provide KPJ with the funds necessary to continue with its existing expansion plans. KPJ has also been ordered to pay RM70.4 million to Hospital Penawar due to a breach in their joint venture agreement. We make the following changes to our model: (i) Impute changes resulting from bonus and rights issue. As of now, we will not account for the warrants as the exercise price has not been given; (ii) Change of target completion date for KPJ Bandar Dato’ Onn Specialist Hospital from 2014 financial year (FY14) to FY16. For this reason, we revise our estimated FY13, FY14 and FY15 reported net profit to RM61.8 million, RM123 million and RM127.4 million respectively from RM59.9 million, RM124.2 million and RM143.3 million respectively. Based on our estimates, there will be earnings dilution of 3.2% after incorporating the increase in interest income and outstanding shares post-rights issue. Following the proposed bonus and rights issue, along with adjustment to our earnings, our new target price for KPJ is RM7.14 (ex-all: RM4.65). This represents a total potential upside of 7.6%. That said, we maintain our “sell” recommendation on KPJ. Key buying/selling points include: (i) KPJ being the largest healthcare provider in Malaysia; (ii) expansion plan fuelled by Economic Transformation Programme projects over the next few years; and (iii) longer than expected gestation period. — TA Securities, July 30 This article first appeared in The Edge Financial Daily, on July 31, 2013.

https://theedgemalaysia.com/node/59569

Court frees Anwar from sodomy charge

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KUALA LUMPUR: After a highly charged trial spanning over two years, the Kuala Lumpur High Court acquitted Opposition Leader Datuk Seri Anwar Ibrahim yesterday of a charge of sodomising his former aide Mohd Saiful Bukhari Azlan in 2008. Delivering a terse two-minute verdict before a packed courtroom, Judge Datuk Mohamad Zabidin Mohd Diah said he was reluctant to convict Anwar based on Saiful’s testimony and without reliable DNA evidence to establish that the sodomy did indeed take place. “This court cannot with 100% certainty ascertain [that] the integrity of the container [holding the DNA evidence] was not compromised. Therefore, it is not safe to rely on the semen sample. “So this court is left with the testimony of the first witness [Saiful] but since this is a sexual crime, the court is reluctant to make a decision based on witness evidence. “As such, the accused is acquitted and discharged,” Zabidin said before quickly leaving the bench. Upon hearing the decision, Anwar and his family leapt to their feet,  embracing and weeping in relief. The PKR leader’s supporters similarly erupted into jubilant celebration. Prosecutors told reporters they would first consult with Attorney-General Tan Sri Abdul Gani Patail before deciding whether they would appeal the decision. The prosecution has 14 days to file a notice of appeal with the Court of Appeal. In an immediate reaction, Anwar said he has now been “vindicated from the scurrilous smearing of my character and my family”. As he left the courtroom, Anwar and his family were mobbed by reporters and supporters chanting “Hidup rakyat” (Long live the people) and “Reformasi” (Reform). Pakatan Rakyat supporters had gathered outside the gates of the Kuala Lumpur Court Complex since dawn yesterday to await the verdict on Anwar. Their numbers swelled to over 5,000 by 9am. Addressing the crowd, Anwar said, “This is not merely about one man’s freedom. Our task now is to free the rakyat!” The crowd reacted with loud cheers. Saiful and his father Azlan Mohd Lazim were conspicuously absent from the keenly awaited verdict given that the latter had consistently attended the hearing. Saiful, in a blog entry yesterday, said he respects the court’s decision and accepts it with a calm heart. “I will remain calm, pray, steadfast and patient. I will not succumb. If not in this world, then in the next it is a certainty. I surrender to Allah,” said Saiful, who briefly worked for Anwar during the general election in March 2008. Long and winding road in Anwar’s second sodomy trial The verdict brings Anwar’s 2½-year trial to a close after a prolonged legal battle which saw his legal team exhaust their legal options with various applications. Among other measures, Anwar’s lawyers had sought to obtain certain evidence and documents, made attempts to strike out the sodomy charge, disqualify the prosecution and recuse Zabidin. Anwar’s trial began in early 2010 after Zabidin said he could no longer allow the applications and appeal processes to further delay the trial. The prosecution then kicked off the trial with 26-year-old Saiful as its star witness. Saiful had accused the opposition leader of sodomising him at the Desa Damansara condominium in Bukit Damansara on June 26, 2008. Anwar pleaded not guilty when charged on Aug 7, 2008 under Section 377B of the Penal Code for committing carnal intercourse against the order of nature. He faced up to 20 years in jail if convicted. The former deputy prime minister has maintained that the charge was an attempt to end his political career. The prosecution’s case was built around purported DNA evidence, including semen found in Saiful’s rectum. Both the prosecution and defence brought in a slew of medical and DNA experts to testify. Deliberations included questions as to how the semen sample could have been extracted intact days after the alleged sodomy. Saiful had also testified that he had met several personalities, including Prime Minister Datuk Seri Najib Razak, before filing the police report against Anwar on June 28, 2008. Midway through the trial, the court was rocked by allegations that Saiful had an affair with a junior member of the prosecution team. During the defence case, Anwar spoke out in court from the dock, reading out a personal statement. This was Anwar’s second sodomy trial. He was first tried for sodomy and for corruption in 1999 after he was sacked as deputy prime minister and finance minister in September 1998. Although Anwar was initially convicted and sentenced to a nine-year jail term, four years later the Federal Court overturned the conviction and set aside the jail sentence. With the trial now over, all eyes remain on the general election which is expected to be called in the coming months, ahead of the 2013 deadline. This article appeared in The Edge Financial Daily, January 10, 2012.

https://theedgemalaysia.com/node/3320

AIBIM: Court decision lifts doubts over BBA, Bai Al Inah

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AIBIM president Datuk Zukri Samat said the court's ruling that the contracts were valid and binding would strengthen public confidence in BBA-based products. "Ultimately, it augurs positively for the continuous growth and development of the Islamic financial services industry," he said in a statement today. He said the ruling was particularly significant given that more than 58% of the total outstanding Islamic financing facilities in the country were based on this concept. Zukri said in a related appeal heard on Wednesday — which was brought by Bank Kerjasama Rakyat Malaysia Bhd — the Court of Appeal also unanimously set aside the previous High Court decision that the Bai Al Inah transaction contained the element of riba (paying of interest). The BBA concept is widely used to structure financing facilities ranging from home financing to bridging and project financing and letters of credit. Bank Islam had appealed against an earlier High Court decision that 10 of its BBA contracts were structurally faulty and that defaulters did not have to pay more than the original financing amount. In reversing the lower court ruling, the Court of Appeal allowed Bank Islam's appeal on the ground that the BBA contracts were valid and binding. The appellate judges said a BBA contract must not be compared to a conventional loan agreement since the former was a sale contract while the latter entailed a money lending transaction. They were also of the view that upon default by customers, a bank was entitled to claim the outstanding amount of the sale price under the property sale agreement.

https://theedgemalaysia.com/node/27338

Akriz moves up the value chain

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KUALA LUMPUR: Fourteen months of trial and error have finally paid off for the engineers at Akriz Sdn Bhd. The company made a technology breakthrough by creating a full-motion flight simulator technology based on the Eagle 150B light aircraft. Akriz managing director Kamil Kushairi told Netvalue2.0 that Virefly is the first of its kind to provide a six-axis motion platform, providing a more realistic recreation of actual flying conditions, aerodynamics and manoeuvrability. He added that other existing flight simulation technologies operate on a three-axis platform. “We are the first full motion light aircraft simulator in Malaysia. People told us that we were mad because we must have spent a lot of money on full motion and only for light aircraft. What’s the economic value of it? For us, it is not about the light aircraft; we want to build the full motion platform and put it on a light aircraft. The value is on six-axis. “Normally, full motion is done on a Boeing aircraft simulator, which is very expensive. Now, we are in the position to do this (for bigger aircraft) as well, but for only a fraction of the cost,” Kamil said. Akriz invested over RM2.4 million over 14 months in research and development and the prototype for Virefly. Kamil says it obtained RM2 million from the Ministry of Science, Technology & Innovation’s TechnoFund. Virefly was created by Akriz in collaboration with Composite Technology Resource Malaysia (CTRM). CTRM started it business operations with the assemblies and manufacturing of a two-seater composites light aircraft, Eagle 150B. Today, CTRM is part of the global supply chain composites aero structures for major commercial and military aircraft manufacturers in the world. Akriz is selling the flight simulator for about RM900,000 per unit versus international ones, which cost over RM1 million. “Those international simulators are not even full motion. They are all static,” Kamil said. So far, Akriz has entered into a memorandum of understanding with GGIFA Internal, which operates a flying school in Bintulu, for the rental of the flight simulator. Akriz will also be leveraging on CTRM’s network to sell the simulator. “Now, we are doing for Eagle 150B light aircraft, but we can do for other light aircraft such as Cessna and Piper. We can produce one simulator within six months,” he added. He explained that Virefly is a high-fidelity flight simulator that boasts near real-life simulation of any weather or landing conditions, and this significantly improves the effectiveness of pilot training. “Statistics show that most of the accidents occur not because of the aircraft. It is due to the pilot’s lack of skill to react to certain emergency conditions. They normally fly in good weather conditions or environment. So when there is any failure, there is only a split second for them to decide. If they are not trained again and again, then they may not react in the right manner. Hopefully with this technology, we can create better pilots and save more lives,” Kamil said. He said the flight simulator will also benefit the flying schools as it will give them economic savings in terms of fuel, instructor fees, maintenance and insurance. “We can also attract foreign trainees to come here for training because it’s shorter time, cheaper and training standards are higher. Once flying school has a simulator like ours, people will always perceive the schools as with higher standards,” Kamil added. Nevertheless, Akriz was not in the business of advanced technology when it was set up in 2004. It was thriving on government contracts as a systems integrator. It has secured more than RM18 million worth of contracts from the government, mainly as a reseller of HP, IBM, NEC and Samsung. However, Kamil realised that the business of providing IT services may not be as lucrative as before. “Now, the pie is getting smaller as more players enter the market. Margins for selling hardware is getting smaller,” he explained. “If we really want to survive in this slowing economy, we have to do something different. We decided to do flight simulator because we are talking about advance technology and innovation. “We are proud of this product because it is done by local engineers, we didn’t buy any technology from overseas. We created everything from scratch, except for some software platform where we had to buy. Most parts we buy from Germany and China, and we assemble them together. We have a team of about 20 people to put up the simulator within one year and two months,” he said. Kamil added that the company is looking at the spill over business from the simulator. “We can do training device for land and for ships.” He said Akriz is diversifying its business focus as he anticipates that government contracts for IT services will reduce in the next two years. Besides advance technology, which will be the main focus, Akriz is also looking at developing an aquaculture park in Perak via a joint venture with Perak Industrial Resources Sdn Bhd. Perhaps, Akriz’s Virefly is what the country needs to showcase on what it can offer. While sceptics do not think making a full motion six-axis flight simulator for light aircraft is a viable business, Akriz may just prove them wrong.     This article appeared in The Edge Financial Daily, February 17, 2010.

https://theedgemalaysia.com/node/44150

Suitors up offer for MTD Cap to RM11 a share

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KUALA LUMPUR: The major shareholders of MTD Capital Bhd (MTD Cap) that had proposed to take over the company for RM9.50 cash per share previously, have revised their offer to RM11 cash per share. In an announcement to Bursa Malaysia yesterday, MTD Cap said it had, on the same day, received notice of the revised offer from Maybank Investment Bank Bhd, the financial adviser to the joint offerors Nikvest Sdn Bhd, Alloy Consolidated Sdn Bhd, Alloy Concrete Engineering Sdn Bhd and Alloy Capital Sdn Bhd. The joint offerors, which are also the major shareholders of MTD Cap, are the private investment vehicles of Datuk Nik Hussain Abdul Rahman and Datuk Azmil Khalili, the group executive chairman and president, and CEO of MTD Cap, respectively. The revised offer values MTD Cap at RM3.03 billion, RM430 million higher than the previous valuation of RM2.6 billion. On Jan 28, Nik Hussain and Azmil had also offered RM3.5 billion to acquire the assets and liabilities of MTD Cap’s units that ownlocal toll road concessions. Yesterday, MTD Cap was suspended from trading during the morning session but resumed trading at 2.30pm. The counter closed 44 sen higher at RM10.96, with 245,000 shares changing hands. MTD Cap, via its units, owns the concessions for the Kuala Lumpur-Karak Highway, the East Coast Expressway Phase 1, the East-West Link Expressway and the Kuala Lumpur-Seremban Expressway. Industry observers said although the RM3.5 billion offer for the assets and liabilities of MTD Cap’sunits may be better, it also carried higher completion risk, since MTD Cap’s board had yet to table the offer to shareholders and obtain other required regulatory approvals. “Hence, the RM3.5 billion offer using the assets and liabilities route may take a longer time to materialise, or may not even happen, unlike this revised offer that is already on the table,” an industry observer said. Maybank IB said the revised offer of RM11 cash per share will remain open for acceptance up to 5pm on March 1. Shareholders who had accepted the previous offer of RM9.50 would be entitled to receive the revised consideration of RM11 per share. “The joint offerors will post the incremental consideration of RM1.50 per offer to the holders who have accepted the original offer prior to the date of this notice of revised offer within three days from the date of this notice of revised offer,” Maybank IB said. It added that the revised offer represents a premium of 4.56% compared with MTD Cap’s last traded price of RM10.52 on Feb 9, prior to the issuance of the notice of revised offer. Based on a five-day volume weighted average market price (VWAMP) of RM8.32 up to Dec 17, 2010, being the last full trading day for MTD Cap prior to the issuance of the notice, the RM11 cash per share represents a 32.2% premium. Compared with a one-month VWAMP of RM7.68, the revised offer gives a premium of 43.2%. When the original offer of RM9.50 cash per share first came about in December last year, AmInvestment Bank Bhd, being the independent adviser to the proposed deal, had recommended that shareholders reject the offer on grounds that it was too low. In a circular to shareholders in mid-January, AmInvestment had stated that its sum-of-parts (SOP) valuation on MTD Cap came up to about RM12.72 per share. It added that the MTD Cap’s toll assets, including the South Luzon Expressway in the Philippines, would be worth about RM3 billion. “However, in order to realise the full RM12.72, shareholders in MTD would have to maintain their shareholdings in MTD Cap for the entire duration of its concessions, with the assumption that MTD distributes all net cash flows derived from its businesses and realisation of all MTD Cap’s assets,” AmInvestment said. An industry observer says, with the revised offer, the gap between the original offer price and AmInvestment ‘s SOP valuation has been narrowed. Nevertheless, this still means that technically, the major shareholders of MTD Cap have put up two different offers with different prices for the same toll assets. Nik Hussain and Azmil’s Jan 28 offer had proposed to take over the assets and liabilities of MTD Prime Sdn Bhd and Metramac Corp Sdn Bhd, which hold the Malaysian highway concession assets, for RM3.5 billion. An industry observer says the offer via the assets and liabilities route could be the backup plan of MTD Cap’s major shareholders to take over the domestic toll road assets. The major shareholders now collectively own an 81.52% stake, up from the 53.1% stake when they first made the cash offer of RM9.50 per share for the remaining 46.9% stake they did not already own then. The major shareholders need at least 90% acceptance before they can take MTD Cap off the local bourse. However, under the assets and liabilities route, they only need 75% shareholding approval for the deal to go through. The 75% shareholding approval threshold for the asset and liabilities route was recently raised from an earlier simple majority of 50% plus one share. The RM3.5 billion offer came at a time when the government announced that two of the highway concessions that MTD Cap manages, the Kuala Lumpur-Karak Highway and the East Coast Expressway Phase 1, would not see a toll hike for five years. The concessions will also not be renewed and the government will not compensate for arrears in the toll review. Additionally, the toll concession for the East-West Link Expressway connecting Salak and Taman Connaught, KL, will be terminated effective May, ahead of the initial expiry date of May 31, 2018. Industry observers say the proposed privatisation of MTD Cap’s toll assets by its major shareholders would pave the way for the toll hike freeze to be implemented.

https://theedgemalaysia.com/node/88518

#The Edge Gallerie* Rare local masterpieces showcased at The Edge Gallerie

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KUALA LUMPUR: Some of Malaysia’s hidden artistic treasures from lawyer Zain Azahari’s personal collection will be on display at The Edge Gallerie in Solaris Mont Kiara for six weeks from today. Presented by The Edge, the exhibition titled Favourites from the Zain Azahari Collection will feature 40 artworks, including drawings and sculptures, collected by Zain for half a century. He selected the 40 pieces from his extensive collection of 400 artworks by the most important artists in Malaysia and Indonesia. The show’s highlights include one of the late Datuk Ibrahim Hussein’s acrylic on canvas paintings titled Farewell to New York, a painting never seen before by the public. Ibrahim created his masterpiece during his residential stint at Universiti Malaya. Another important exhibit is Malam Merah by Abdul Latiff Mohidin from his Pago-Pago series, which was featured at Christie’s inaugural Southeast Asian Art Auction in 1994. Prominent works from Indonesia include Hendra Gunawan’s 1976 Makan Durian. The 78-year-old Zain has been collecting artwork since the 1960s. His passion for art was ignited when he was a law student in London in the 1950s. Upon returning home, he began his collection with what little resources he had to purchase artwork that he found “appealing”. When asked which artworks on display was his favourite among favourites, Zain said all were his favourites but held one particular artwork close to his heart — Indonesian artist Rudolf Othman’s 1989 Just Go Home. “If you look at it closely, it’s nothing compared with Chang Fee Ming’s work. But this holds a special meaning in my heart. It brings me back to my boyhood days when my grandmother used to ask me to help feed the chickens in the morning before I went to school. So this artwork brings me back to those times.” Other Malaysian artists whose works are featured in the exhibition include Datuk Mohd Hoessein Enas, Cheong Soo Pieng, Patrick Ng, Datuk Chuah Thean Teng, Dzulkifli Buyong, Anthony Lau, Yusof Ghani, Ahmad Zakii Anwar, Jalaini Abu Hassan, Raja Shariman Raja Aziddin, Anuar Rashid and Anurendra Jegadeva. Works of Indonesian artists include those of Srihadi Soedarsono, Widayat, Popo Iskandar, S Sudjojono, I Wayan Sudjana Suklu, Rudolf Othman, Mangu Putra Gusti Agung, Stefan Buana and Budi Ubrux. Chang Fee Ming’s 1993 watercolour painting Mandalay will also be exhibited. Mandalay created a new record this year when it was sold at an auction in Singapore. The exhibition is also a display of Zain’s journey through the art world, and features the very first painting he bought — an oil on canvas completed by the late Syed Ahmad Jamal in 1961 titled: Batu Caves. Some of the prominent guests who attended a special preview of the exhibition yesterday evening were Singapore High Commissioner Ong Keng Yong, Netherlands Ambassador to Malaysia Harry Molenaar, French Embassy Co-operation and Cultural Affairs counsellor Jean-Pierre Galland, Mediharta executive director Datuk Sandra Wong, The Edge Communications executive chairman Datuk Tong Kooi Ong and The Edge Media Group publisher and group CEO Ho Kay Tat. To listen to the interview with Zain that was aired on BFM radio station on Oct 16, visit www.theedgegalerie.com This article first appeared in The Edge Financial Daily, on October 18, 2013.

https://theedgemalaysia.com/node/46442

OCBC sees potential in dual currency investment

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KUALA LUMPUR: OCBC Bank Malaysia Bhd sees a double-digit growth potential for dual currency investments (DCI) with its interest rates substantially higher than fixed deposits. OCBC’s head of wealth management Ong Shi Jie said in a statement yesterday: “With our projected double-digit growth, DCIs are poised to become a key driver for the bank’s wealth management efforts this year. “With tenures of between one week and a month, the DCI is a viable option for investors looking to make short-term investment,” she said. “The low interest rate environment in Malaysia during the subprime crisis in 2009 helped spur the hunt for alternatives and propel the popularity of DCI. As the equities markets recovered and interest rates normalised in the last 12 months, the growth of DCI moderated. Still, we continue to be in expansion mode for this business,” she added. DCI currently contributes to about 25% of OCBC wealth management fee income revenue. Speaking to The Edge Financial Daily recently, Ong said the demand for DCI is expected to pick up as the equities market continues to be volatile due to geopolitical concerns. She noted that there was a surge in DCI sales after the 2008 crisis as the equities market became a tough investment space and consumers began looking for alternatives to enhance yields. Ong added that OCBC’s DCI business had more than doubled over the last two years since 2008. A DCI is a foreign exchange-linked investment where the investor makes the investment in one currency in return for an option to be repaid in the principal sum with interest in another currency. This article appeared in The Edge Financial Daily, March 22, 2011.

https://theedgemalaysia.com/node/8317

OCBC on the lookout to expand presence in Malaysia

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KUALA LUMPUR: Singapore’s Oversea-Chinese Banking Corporation Ltd (OCBC) is on the lookout to expand its presence in Malaysia. “OCBC is always out looking for opportunities to grow our presence in this country. Definitely, with the recent liberalisation, the opportunities are even more interesting for OCBC as a foreigner,” said the banking group’s executive vice-president and head of group investment banking, George Lee. “Looking at the banking group, it has commercial banking operation, general insurance, life insurance, through PacificMas (Bhd) — asset management and leasing. The missing pieces that I can think of are stockbroking, investment banking and takaful,” he told reporters after PacificMas’ AGM here yesterday. Lee said OCBC could use PacificMas or other entities as a vehicle to implement its expansion plans. For its financial year ended Dec 31, 2008, its Malaysian businesses contributed 22% to the banking group’s core income of S$4.2 billion (RM9.94 billion). Last year, OCBC’s expansion in the country saw the establishment of its Islamic subsidiary, OCBC Al-Amin, with its first branch opening in Petaling Jaya. Earlier last year, OCBC’s unit OSPL Holdings Sdn Bhd launched a conditional takeover offer for PacificMas at RM4.30 a share, valuing the company at RM735.27 million.  OCBC has said that it intends to maintain PacificMas’ listing status and hopes to gain control of the company to develop greater business synergies between its financial services in Malaysia and the financial services business of PacificMas. The bank now has a 63.5% stake in PacificMas. Recently, AmFraser Singapore re-initiated coverage on OCBC with a buy rating. Pegging its fair value of the stock at S$8.60 implies an upside potential of 17.8% from its S$7.33 close yesterday. “OCBC is currently trading at 1.51 times FY09 P/BV and 1.36 times FY10 P/BV, which compare favourably against the average 12-month forward P/BV of 1.58 times over the last five years,” noted the Singaporean research house. “Our Gordon Growth-derived fair value assumes a sustainable return on equity of 13% and a terminal growth rate of 2%,” it added. OCBC has been operating in Malaysia for more than seven decades and has 29 branches in the country.     This article appeared in The Edge Financial Daily, June 11, 2009.

https://theedgemalaysia.com/node/20810

Octagon to sell technical documents for waste-to-energy plant for US$11.8m

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Octagon said on Monday, Oct 26 it had entered into a sale agreement with ORE to sell the documents relating to the drawings, design and engineering of a plant. ORE is a Sri Lankan company which recently obtained the Sri Lankan Government’s approval to implement the municipal waste to energy plant. The documents represent the technical documents commissioned by GET and forms part of the entire technical documents in relation to the plant. The sale agreement will enable ORE to complete further technical work on the plant.

https://theedgemalaysia.com/node/81835

Maybank: Gamuda's Kesas acquisition a strategic move

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KUALA LUMPUR (Nov 6): Maybank Investment Bank Bhd has maintained its "buy" call on Gamuda Bhd with an unchanged target price (TP) of RM5.30. The recommendation and TP follows Gamuda's proposed acquisition of the balance 70% stake in Kesas Holdings Bhd. In a note today, Maybank said the acquisition is a strategic move to boost Gamuda's recurring earnings base. Maybank said the acquisition could be a prelude to "something bigger" at Gamuda. This is in anticipation that Gamuda, a builder, may consolidate its toll assets with a view of listing them under a business trust. “Our earnings forecasts and target price (TP) of RM5.30 (16.5x 2014 PER) are unchanged for now. This will provide further upside to our TP. Assuming full acceptance to its acquisition offer, we expect 5% and 12% incremental net profit contribution from Kesas in FY7/14 and FY7/15. "Gamuda’s gross cash was RM1.23 billion as of end-Jul 2013. The acquisition would lift Gamuda’s net gearing to 46% from 24% as of end-Jul 2013, which we think is still manageable,” Maybank said. News reports indicate that Gamuda has proposed to acquire Perbadanan Kemajuan Negeri Selangor’s 30% stake in Kesas for RM375 million and Pemodalan Nasional Bhd’s and Amcorp Properties Bhd’s 20% stake respectively for RM250 million each. According to Maybank, the offer will translate into an equity value of RM1.25 billion for 100% of Kesas. This is 14% below the discounted cash flow valuation of RM1.45 billion for the concession. “The discount is due to Kesas being not listed and Litrak’s decent 3.8% dividend yield. In addition, Litrak’s highway concessions’ tenures (expiring in stages, until 2034) are longer compared to Kesas (2023),” said Maybank.

https://theedgemalaysia.com/node/20037

Bursa, CIMB advance, FBM KLCI above 1,250

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At 10am, the FBM KLCI rose 7.14 points to 1,253.98. Turnover was 439.1 million shares valued at RM371.46 million. There were 375 gainers, 110 losers and 201 counters unchanged. Among key regional markets, Hong Kong's Hang Seng Index opened 1.5% higher at 22,218.37; Shanghai's Composite Index advanced 1.2% to 3,003.12 while Japan's Nikkei 225 gained 2.11% to 10,272.62. Singapore's Straits Times Index added 0.8% to 2,730.17. Light crude oil rose 68 cents to US$75.86 while gold added US$1.28 to US$1,063.65. As for Bursa Malaysia, HwangDBS Vickers Research said after a surprisingly robust performance it reckoned the Malaysian bourse would want to sustain the upward momentum ahead. It added the FBM KLCI would be eyeing to overcome the resistance hurdle of 1,255 next. Investors across the region should also feel more confident today following Wall Street's surge overnight although the run-up in most Asian bourses yesterday suggests that the reaction in regional markets today would likely be less strong. "Public Bank is scheduled to announce its July - September quarter financial performance around lunch time today. Let's see if there will be any pleasant surprises to excite our local market in the afternoon session," it said. Bursa, which is scheduled to announce its results on Friday, rose 26 sen to RM8.45. CIMB extended its winning streak, rising 16 sen to RM12.48, Hong Leong Financial Group added 20 sen to RM6.04 while Hong Leong Bank added 14 sen to RM7.05. KL Kepong added 14 sen to RM14.34 while its major shareholder Batu Kawan rose 14 sen also to RM9.98 while SOP gave up 11 sen to RM2.68 with 400 shares done. KNM was the most active with 37.3 million shares done, rising 1.5 sen to 86 sen. HWGB fell one sen to 22 sen after announcing its share capital reduction plan. Kia Lim fell 15 sen to 10 sen with 2,000 shares done.  NSTP gave up some of yesterday's gains, slipping eight sen to RM2.43 and DiGi shed four sen to RM21.44.

https://theedgemalaysia.com/node/90858

Malaysians too stressed for holidays

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MALAYSIANS are either hard workers or they just don’t know when to take a break, according to results of a survey released today. The survey by Regus, a provider of flexible workspaces, found that professionals in Malaysia are working even harder on holiday than their counterparts in other countries. Regus recently asked more than 26,000 business people from 96 countries to reveal just how much of their holiday they planned to spend on work-related activities. In the true spirit of Malaysia Boleh!, 49% of local professionals reported that they would work one to three hours a day during their holidays, while 27% plan to devote more than three hours a day on professional tasks. This compares to 41% global average for professionals planning to work one to three hours a day during their holidays, and 17% who plan on working more than three hours a day. Meanwhile, 49% confirm that their attention to work while on holiday will equate to a slightly reduced ‘business as usual’ level, as opposed to the global average of 39%. This means Malaysians are losing out on precious holiday time to take care of business. Global expert, Professor Thomas Cox said that it was documented that giving workers some control over their work and the way they do it can help reduce work stress. “In particular by offering workers some freedom to manage how and when they work can help them achieve a better work: life balance ensuring that time devoted to family and relaxation is not riddled with work stress and activities. “Being able to connect from any location is great, but workers really need to carve out time to switch off,” said Cox. The research also found that men have the most difficulty switching off their work mode, with 42% of them globally turning their vacation into nothing more than business as usual by vowing to make calls, respond to emails, and attend to business during their vacation. Same goes to the ladies as a very significant proportion of professional women (34%) are committed to the same level of work. This gender trend is confirmed with 44% of professional men worldwide reporting that they will work between one and three hours a day, compared with 35% of women and 18% of men devoting over three hours daily to work versus 16% of women professionals. Regus APAC Regional Director, John Henderson believes that the dedication people worldwide are showing towards their jobs is admirable with a huge percentage of business professionals taking their work away with them. “However, this can also be interpreted as an indication that they feel overstretched or insecure in their jobs and are unable to properly switch off. “The effects of work place stress are well documented so it is important that workers carve out some personal time,” said Henderson. He also pointed out that technology, such as video communications and WIFI, has certainly made working from almost anywhere in the world a reality, on the other, this innovation should be channelled towards helping professionals work more flexibly and productively. “Allowing workers to reduce their commute or work closer to home can help professionals work more efficiently so they can really devote their holidays to relaxing,” he said.

https://theedgemalaysia.com/node/91581

PAS won't take advantage of spat within Umno

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KUALA BESUT: PAS said it will not capitalise on the perceived internal squabble between two Terengganu Umno leaders in its bid to win the Kuala Besut by-election. "We won't pit them against each other. That is their problem," PAS vice-president Salahuddin Ayub said referring to menteri besar Datuk Seri Ahmad Said and his predecessor Datuk Seri Idris Jusoh. Rumour that Ahmad and Idris are at loggerheads, creating a rift in the state Umno, has yet to be completely snuffed out since it began in 2008. The divide, which has been consistently denied by the two, was apparently created following a tussle for the top post after the 12th general election. The rift was brought up again when PAS Kuala Besut by-election director Datuk Husam Musa suggested that an opposition win would benefit Idris. At the party's daily press conference here yesterday, PAS leaders also commented on Ahmad's statement last Saturday which hinted at voters who rejected BN in the state despite benefiting from its various initiatives. Similar statements had been made on several occasions before. PAS central working committee member Dr Dzulkefly Ahmad said Ahmad should take a look at himself in the mirror before blaming voters for BN's performance in the state during the 13th general election. The increased seats obtained by PAS in GE13, the former Kuala Selangor MP said, is proof that “people were disappointed". He also said the claim that Terengganu would be unstable should PAS win Kuala Besut, leading to a hung state assembly, is an archaic political school of thought. The country and the state, he asserted, would remain stable should both BN and PAS have the same number of seats. — by Sean Augustin This article first appeared in The Edge Financial Daily, on July 15, 2013.

https://theedgemalaysia.com/node/31999

FBM KLCI extends gains for ninth day

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KUALA LUMPUR: The FBM KLCI extended its gains on Friday, June 18 for the ninth day running and stayed above 1,300 for a third day, lifted by advancing key blue chips. At the midday break, the benchmark index added 0.44% or 5.75 points to 1,310.22, boosted by gains including at Digi, Genting, Maybank, IOI Corp and Public Bank. Market breadth was positive with gainers beating losers 298 to 175, while 267 counters traded unchanged. Volume was 258.02 million shares valued at RM419.46 million. Crude palm oil for the third month delivery added RM5 to RM2,403 per tonne. Crude oil fell nine cents to US$76.70 per barrel while gold slipped 40 cents to US$1,244.75 per ounce. At Bursa Malaysia, DiGi added 44 sen to RM23.20, Tanjong 24 sen to RM17.76, Genting up 11 sen to RM7.26 while Maybank, IOI Corp and Public Bank rose four sen each to RM7.51, RM5.04 and RM11.66, respectively. MISC gained six sen to RM8.56, Sime Darby and Tenaga two sen each to RM7.93 and RM8.37, while Axiata added one sen to RM3.88. Among the decliners in morning trade, CIMB fell two sen to RM6.91, Berjaya Land eight sen to RM3.97 and LBI Capital seven sen to 62 sen. Other decliners included Khind, Tasek, Tahps, UAC, Kobay and SBC Corp. Talam was the most actively traded counter with 22.7 million shares done. The counter was unchanged at 12.5 sen. Other actives included Kenmark, CIMB, Linear and Hubline. Meanwhile at the regional markets, Japan's Nikkei 225 added 0.05% to 10,004.18, Hong Kong's Hang Seng Index up 0.75% to 20,290.31, South Korea's Kospi Index rose 0.05% to 1,709.13. However, the Shanghai Composite Index shed 0.54% to 2,546.53, Taiwan's TAIEX Index slipped 0.53% to 7,475.73 and Singapore's Straits Times Index lost 0.14% to 2,840.06.

https://theedgemalaysia.com/node/55267

#Tong Kooi Ong blogs* Where is Malaysia's Mandela?

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AS Nelson Rolihlahla Mandela is laid to rest and the world has paid its tributes, we ask the obvious question, where is Malaysia’s Mandela? Mandela has been described by other leaders as a giant of history who moved a nation towards justice and a light of the world. Madiba not only led but also made sacrifices. Words such as freedom, courage, reconciliation, forgiveness, inspiration, grace and compassion are closely associated with him. President Barack Obama made the following observation in his speech: “Emerging from prison, he would hold his country together when it threatened to break apart. He would erect a constitutional order to preserve freedom for future generations, a commitment to democracy and rule of law ratified not only by his election, but by his willingness to step down from power.” Mandela was no saint, as he himself admitted. “I am not a saint, unless you think of a saint as a sinner who keeps on trying.” But he was willing to make sacrifices and had the courage to do what was right. He lived by his idealism, taking risks through the power of action. It is worth noting a few examples of his sacrifices, simplicity and courage. Offered a release from prison in February 1985 if he rejected violence, he spurned the offer stating: “Only free men can negotiate.” He had the courage to safeguard the jobs of white civil servants, although this concession brought him fierce internal criticism. He was also chastised for granting amnesty to 3,500 members of the then hated police force. Elected president in 1994, Mandela allowed F W de Klerk to retain the presidential residence and instead settled into a nearby Westbrooke manor. And he lived a simple life, donating a third of his 552,000 rand annual income to the Nelson Mandela Children’s Fund and made his own bed, even as president. Malaysia needs a Mandela. Perhaps, there never will be one. But will there be leaders of the country who are able and willing to make his life’s work their own? Will we have such leaders who lead by sacrifice, courage, inspiration, grace, justice and moral authority? Who will lead us to greater freedom, and social and economic inclusion? Who will unify us racially, religiously and culturally? Our nation is deeply polarised, whether by politics, race, religion or income. The urban-rural divide is not just about income but also race and politics. Households are cash poor, running up high levels of debt. The cost of living is rising as the increase in income falls behind real inflation rates, and made worse by the weakening of our ringgit. Besides having to pay one of the highest car prices in the world, the removal of various subsidies and the introduction of the Goods and Services Tax in 2015 will compound the misery of the lower and middle-income groups. Meanwhile, the stock market and property prices are at an all-time high. We see capital outflows by the rich. The economy is increasingly in the stranglehold of fewer and fewer people. The top 1% has more income than the entire bottom 40%. Monopolistic and rent-seeking behaviour continues and, indeed, is perpetuated by the establishment. The anti-monopolistic law is toothless. We have leaders of people openly flaunting their power and authority, comforted by the knowledge that their abuses will not be brought to accountability. Bigots openly cast racial aspersions and perform offensive acts, knowing they are immune from prosecution. The same bigots and their supporters at the same time threaten others when opposing views are expressed. Moderation is seen as being liberal-minded. And all liberal views should be banned, as expressed by some delegates at a political convention of the dominant political party recently. Surely, now more than ever, we should pray for a Mandela? To quote Madiba, the greatest moral leader of our time: “What counts in life is not the mere fact that we have lived. It is what difference we have made to the lives of others that will determine the significance of the life we lead.” Tong Kooi Ong is executive chairman of The Edge Media Group. Feedback is welcomed at www.tongkooiong.com

https://theedgemalaysia.com/node/21973

Notion VTec’s 4Q profit up 47% to RM13m

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KLANG: Notion VTec Bhd’s net profit rose 47% to RM13.03 million in its fourth quarter (4Q) ended Sept 30, 2009 from RM8.88 million a year earlier on the back of improved business orders and cost-cutting programmes. Revenue rose 14% to RM54.34 million from RM47.67 million, while basic earnings per share (EPS) rose to 1.85 sen from 1.26 sen. It proposed a final tax-exempt dividend of 2.5 sen per 50-sen share. For the year ended Sept 30, 2009, net profit rose over 9% to RM35.97 million from RM32.92 million in the previous year, while revenue rose 18% to RM172.57 million from RM146.1 million. EPS rose to 5.11 sen from 4.68 sen. In a statement yesterday, its executive chairman Thoo Chow Fah said based on market feedback, visibility of orders and new projects, the management targeted FY2010 revenue to be in the RM220 million to RM240 million range, net profit of between RM49.5 million and RM54 million and earnings per share of between 35 sen and 38 sen. It is assumed that there will be no major changes to the US dollar and ringgit exchange rate of 3.40, and aluminium price of US$2,000 (RM6,780) per tonne. “The fourth quarter performance was another new profit record for the Notion group. Revenue from all three business segments further improved due to strong orders,” Thoo said. He said in 4QFY09, the single-lens reflex (SLR) camera/lens parts sales improved by 18% and industrial/automotive parts sales rose 58% compared to the June quarter while the hard disk drive (HDD) parts grew strongly by 14%. Thoo said the HDD world shipment in the quarter recorded 152 million units compared with the June quarter’s 132 million units shipped, representing a 15% growth quarter-on-quarter. He said the SLR camera segment continued to recover with sales mainly derived from Asia (more than 53%) while sales from Europe and the US were static as the auto industry in Europe had been recovering but at a slower pace. “Many European auto parts suppliers were badly affected, thus disrupting the important supply chain. Thus, we expect new orders from our auto customers in the coming quarters,” Thoo said. He said the business outlook for FY2010 was looking bright and the revenue and profitability of the group would be further enhanced. This article appeared in The Edge Financial Daily, November 11, 2009.

https://theedgemalaysia.com/node/36641

More jobs expected to flow from SOGT

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KUALA LUMPUR: More oil and gas companies are expected to benefit from the recent award of the Sabah Oil and Gas Terminal (SOGT) project that had earlier been put on hold for more than two years. Analysts expect more jobs to flow in after Petronas Carigali Sdn Bhd awarded the SOGT job worth US$766 million (RM2.41 billion) to the Naim Holdings Bhd and Samsung Engineering Co Ltd consortium earlier this month. It is understood that Naim and Samsung have beaten other bidders that included Kencana Petroleum Bhd and Dialog Group Bhd. The job, which entails the engineering, procurement, construction and commissioning (EPCC) works at SOGT, was secured via a competitive bidding put jointly by Naim and Samsung. Excluding the SOGT job, Naim’s current order book stands at RM1.85 billion. In a recent note, RHB Research said contract awards from the SOGT were expected to gain momentum going into the tail end of 2010. It is learnt that the SOGT project was initially expected to cost about RM1.5 billion, but changes in the engineering design and equipment specifications delayed the awards until now and possibly doubling the cost of the project.RHB said the next awards would likely be for brown field maintenance. It cited Kencana, Dayang Enterprise Holdings Bhd, SapuraCrest Petroleum Bhd and Petra Energy Bhd as possible contenders and beneficiaries of the SOGT’s future jobs. RHB said while the securing of contracts boded well for the sector, it expected the new wins to only impact companies’ earnings in FY2011. However, in the near term, it maintains its view that the direction of crude oil prices remains unconvincing, while trading sentiment may drive stocks. Therefore, the research firm maintained its neutral call on the oil and gas sector for now, with its top pick being Dialog. The SOGT comprises two components — an onshore gas terminal and a gas compression station. The terminal will be designed to receive dehydrated crude production from Gumusut, Kakap and Malikai. It will also receive gas from the Kinabalu and Kebabangan fields. The crude gas will be processed and further dehydrated at the terminal before it is stored for export. It will then be delivered to a liquefied natural gas plant via the Sabah-Sarawak Gas Pipeline (SSGP). It is worth noting that in 2008, Dialog clinched the RM1.6 billion EPCC job for the SSGP project while Wah Seong Corp Bhd won the pipe-coating portion of the project worth about RM390 million. According to recent OSK Research notes, although the SOGT was initially proposed in 2007, it was pulled back due to “technical reasons”. Located in Kimanis, the SOGT will serve as a hub for crude oil and natural gas from the offshore fields of Sabah and is tentatively scheduled for completion by 2013. The 250-acre SOGT will have capacity for 300,000 barrels of crude oil per day and one billion standard cubic feet of gas per day. Given the scale of the project, it is not surprising that analysts consider SOGT as one of the main catalysts for the oil and gas sector moving forward. According to a report by CIMB Research in July, apart from the SOGT, other major contracts up for grabs were the RM11 billion worth of jobs in the development of deepwater fields, US$2.1 billion (RM6.7 billion) in the rejuvenation of seven fields including Tapis, and RM1.5 billion in offshore maintenance works. This article appeared in The Edge Financial Daily, September 8 2010.

https://theedgemalaysia.com/node/98815

Hot Stock: Daya up 3.3% after contract win

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KUALA LUMPUR (Sept 5): Daya Materials Bhd saw its shares rise 3.3% in afternoon trades today, after securing a second charter agreement with Siem Offshore Rederi AS for the managing of a vessel for five years with an option to purchase. At 12.30 pm noon break, Daya was trading 1 sen or 3.3% higher at 31.5 sen after hitting a high of 32 sen, with 17.7 shares exchanging hands. It was the eighth most active counter. Yesterday, Daya announced that its subsidiary, Daya OCI (Labuan) Limited, had entered into a charter agreement with the Norway ship builder company. The delivery of the vessel is scheduled to be in Dec 2013 and to be named Siem Daya 2. In addition, Daya also announced a long-term three-year charter contract with Technip Norge AS in relation to the appointment of Daya OCI as the manager of the vessel. The contract is estimated to value between RM100 million to RM167 million. The company said its earnings will be positively impacted during the contract period. In a note today, Public Investment Bank said that this development is “positive” and in line with the strategic plans of the Daya group as it becomes more actively involved in upstream oil and gas industry. The research house is giving Daya an ‘outperform’ call with target price of 37 sen.

https://theedgemalaysia.com/node/55610

CIMB Research has technical sell on Maybank

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KUALA LUMPUR: CIMB Equities Research has a technical sell on Malayan Banking Bhd at RM8, as which it is trading at a FY12 price-to-earnings of 11 times and price-to-book value of 1.9 times. It said on Monday, Oct 3 that Maybank slipped to a low of RM7.35 recently before the bulls started to make a comeback. The countertrend rebound pushed the candles towards the support-turned-resistance trend line “but we are doubtful that prices can push above the RM8.20 level”. CIMB Research said the MACD signal line is hovering in the negative territory while RSI is also below the 50 points mark, suggesting that the bears are still in command. “We think this countertrend rebound is at its tail end. Hence, unload on strength looks like a good option here, especially near the RM8.11-RM8.20 resistances. Only a swing above RM8.35 would prompt us to review our call. “On the downside, support is seen at RM7.51, RM7.20 and RM6.94,” it said.

https://theedgemalaysia.com/node/27593

Mesdaq first 10: Where they are now?

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In our 2009 Bumper feature, we ran a short update on three of the first 10 firms to list on the Mesdaq Market. Below, we provide snapshots of the other seven companies. Supercomal TechnologiesSupercomal Technologies Bhd was the first company to be listed on Mesdaq on April 30, 1999. It started as a manufacturer of PVC compound, cables and wires for electronic devices and cable assemblies and data control switches. Post listing, the company profile was raised and banks became more willing to provide banking facilities.The company then embarked on a turnaround plan in 2006 by diversifying into manufacturing advanced high technology cables for the automotive and medical instrument sectors.It is still making losses, albeit reduced, and recorded a net loss of RM1.37 million for the nine months ended Sept 30, 2009. Intelligent Edge TechnologiesIntelligent Edge Technologies (IET) Bhd has had a couple of management changes since it started in October 1996. It was originally a software company providing products such as payroll, human resource, knowledge management, supply chain management and customer relationship.A new management team headed by CEO Anil Chet Karamsingh has been keeping a low profile. The company has since established itself as a specialist in mobile technology solutions after it obtained an application service provider licence in May 2007.Moving forward, it is gearing up to take advantage of partnerships it had established over the last three years.Anil says IET is hoping to secure new projects in India via partners there.It is also roping in an institutional investor as a strategic partner and to raise capital for company expansionThe company posted a net loss of RM445,000 for the nine months ended Sept 30, 2009, versus a net profit of RM28,000 a year ago. Palette MultimediaPalette Multimedia Bhd, which was founded in 1997, is a leading solutions provider of broadband, wireless and networking products and services. It provides the latest generation of network access control and management system for LAN (local area network) and WLAN (wide local area network) in the enterprise environment. It also provides subscriber management system to Internet service providers, telecommunication companies and network operators in the public network environment.Palette has offices in Singapore, Indonesia and Thailand.It posted a net loss of RM327,000 for the nine months ended Sept 30, 2009, compared with a net loss of RM342,000 a year earlier.Moving ahead, the company will continue its focus on R&D and overseas sales and marketing effort.  It expects to see continuous growth of wireless adoption in the Asean region, the Indian sub-continent and the Middle East countries over the next few years. DisccompDisccomp Bhd was set up on Dec 15, 2000, and was listed on Jan 31, 2002. Disccomp and its subsidiaries form the IT division of a larger conglomerate — the Chuan Huat Group.Disccomp distributes and retails major and inhouse brands of computer hardware, peripherals and accessories and manufactures and distributes compatible and remanufactured toners and ink-cartridges.Its subsidiary, SC-PNP Edaran Sdn Bhd, is a leading distributor of its inhouse brand as well as other popular brands of computer hardware, peripherals and accessories.Disccomp’s retail network includes Pineapple Computer Systems Sdn Bhd, Pineapple Computers & Accessories Sdn Bhd and Pine System Technology Sdn BhdFor the nine months ended Sept 30, 2009, Disccomp’s net profit fell to RM333,000 from RM380,000 a year earlier despite higher revenue of RM27.13 million versus RM24.36 million. YTL e -SolutionsYTL e-Solutions Bhd is a technology incubator and is part of YTL Corp Bhd. YTL e-Solutions was listed on Mesdaq in 2002.The company invests in young technology related businesses with products and services to commercialise. YTL e-Solutions holds a Worldwide Interoperability for Microwave Access (WiMAX) licence for the 2.3 GHz wireless broadband access spectrum, which was awarded by the Malaysian Communications and Multimedia Commission (MCMC) to roll out a nationwide WiMAX network in Peninsular Malaysia.For the three months ended Sept 30, 2009, its net profit rose to RM5.25 million from RM2.18 million while revenue increased to RM12.49 million from RM9.46 million.The company plans to roll out its wireless broadband service nationwide by December. Iris CorpIris Corp Bhd is a global solutions provider with core expertise in digital identity, business, farming and environmental solutions. The company was established in 1994 and was the first company in Asia to set up fully integrated manufacturing facilities for contact and contactless smart cards, contactless document inserts and assembled module in tapes and reels. It pioneered the world’s first electronic passport and national multi-application smart card with the implementation of the Malaysian electronic passport in March 1998 and MyKAD — the Malaysian Government Multi Purpose Card in April 2001. These technologies are deployed in many countries across Asia, the Middle East and Africa.For the nine months ended Sept 30, 2009, its net profit rose to RM12.56 million from RM8.83 million a year ago while revenue increased to RM199.18 million from RM193.94 million. Brite-TechBrite-Tech Bhd was incorporated on June 14, 2001, as a private limited company and was subsequently listed on Mesdaq on July 30, 2002. The company is an integrated water purification and wastewater treatment solutions provider. It also provides a broad range of treatment systems and equipment as well as consultation engineering study and design, custom-built systems and operating capabilities.For the nine months ended Sept 30, 2009, its net profit fell to RM819,000 from RM1.71 million a year earlier while revenue decreased to RM12.62 million from RM14.5 million. This article appeared in [email protected], the technology section of The Edge Malaysia, Issue 788 Jan 11 - 17 2010

https://theedgemalaysia.com/node/94012

Ringgit opens slightly higher versus US dollar

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KUALA LUMPUR,( August 1): The ringgit opened slightly higher versus the US dollar today on mild buying interest, dealers said. At 9.03 am today, the Malaysian ringgit was quoted at 3.2415/2435 to a US dollar from 3.2425/2455 registered at 5 pm on Wednesday. Against the Singapore dollar, the domestic currency was little changed at 2.5494/5525 from 2.5495/5529 yesterday but rose to 3.3100/3127 from 3.3185/3229 versus the yen on Wednesday. Against the British pound, the local note improved to 4.9199/9240 from 4.9322/9377 yesterday but was traded lower versus the euro at 4.3122/3152 from 4.3080/3126 previously.

https://theedgemalaysia.com/node/57296

Konsortium Transnasional’s 32m new shares to list Thursday

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KUALA LUMPUR (Nov 9): Konsortium Transnasional Bhd’s 32 million new shares will be listed on Thursday, Nov 10. A circular on Wednesday said the new shares resulted from the conversion of irredeemable convertible secured loan stocks (ICSLS). The tenure of 4% three-year loan stocks 2007/2010 were extended from June 26, 2010 to June 25, 2013. The conversion is 62.5 sen for one converted share.

https://theedgemalaysia.com/node/24794

Naza to lead Peugeot's regional expansion

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KUALA LUMPUR: The Naza Group will be spearheading Peugeot Automobiles' expansion within the region and will make Malaysia the regional hub for the French marque. "We are confident we can make Malaysia Peugeot's regional hub. For this year, we will launch four models locally and ramp up exports of our Peugeot vehicles manufactured at our plant in Gurun to other parts of the region," Naza group joint executive chairman SM Nasarudin SM Nasimuddin said in a statement today. Naza was chosen to head the regional expansion following the group's sales of Peugeot vehicles in 2009 totalling 3,766 units, which accounted for 86% of Peugeot sales in the Asean region. Excluding sales figures of the 206 Bestari which has been phased out, sales of Peugeot vehicles by the Naza Group in 2009 totalled 1,419, which was up sevenfold from 2008. Naza, through its unit Nasim Sdn Bhd, was appointed official distributor for the Peugeot brand in January 2008. For 2010, the group is targeting to sell 2,930 Peugeot cars, including an entry-level model codenamed T33, which will be produced in Gurun. As part of Peugeot's plans to expand its presence in the region, the company will soon expand its Asean regional office in Petaling Jaya to coordinate operations for the entire Asia-Pacific region, excluding China. Peugeot's Asean regional office in Malaysia also runs an Asean training centre and technical help desk for after-sales technicians in the Asia-Pacific region and the Middle East.

https://theedgemalaysia.com/node/81633

Hot Stock: Deleum jumps 6% on Petronas contract

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KUALA LUMPUR (Oct 25): Deleum Bhd rose as much as 6% after the firm said it has clinched a gas turbine- maintenance contract from Petroliam Nasional Bhd (Petronas). At 10.05am, Deleum was traded at RM4.30 with 164,200 shares done. The bourse's third-largest gainer had earlier risen as much as 24 sen to RM4.32. Deleum Bhd said under the Petronas contract, Deleum is offering after-market turbomachinery maintenance services for Solar Turbines Inc's gas turbines in Malaysia. The seven-year contract has been effective since September 16 this year, according to  Deleum. Petronas has the option to extend the deal for another three years. Analysts have anticipated Deleum will attract market interest today. "In terms of interesting corporate developments, there may be added interest today in Deleum, which has been awarded a contract (for an undisclosed value) by Petronas to provide aftermarket turbo machinery maintenance services for gas turbines in Malaysia," HwangDBS Vickers Research Sdn Bhd wrote in a note today. From a technical viewpoint, RHB Research Institute Sdn Bhd technical analyst Mohammad Ashraf Abu Bakar said the firm has a target prices of RM4.10 and RM4.50 for Deleum shares. "Buy on rally continuation above RM3.85,"  Mohammad Ashraf wrote in a note today.

https://theedgemalaysia.com/node/92972

The weekend in numbers 19.07.13 to 21.07.13

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2 black & white photography exhibitions48This exhibition is a result of an experiment in pressure photography, sleeplessness, creativity and having the tenacity to just keep shooting. Eight photographers and one mentor scoured the crowded streets and seedy back alleys surrounding Bukit Bintang for 48 hours straight. They unravelled tales of destitution, sometimes success, but mostly of lost opportunity and backward looks. The photographs on display give a glimpse of what life is like in this famous busy street, in the heart of the city. The exhibition is on until Aug 18 at The Print Room, 49, Lorong 16/9E, Section 16, PJ. Hours are 2pm to 7pm (Sat-Sun). For more information, call (012) 337 2903 or (03) 7931 2227. Earth, Water, SkyLandscape images spanning from 1975 to 1999 by eminent Malaysian photographer Eric Peris are on display. Peris has shot some of the best landscape images of Malaysia. His sensitive understanding of light and form, with the underlying message of poetry, spirituality and universality of the timeless beauty of nature, has resulted in truly classic and inimitable images. The exhibition is on until Aug 7 at Sutra Gallery, 12 Persiaran Titiwangsa 3, KL. Viewing hours are 9.30am to 6pm (Mon-Fri). Call (03) 4021 1092 for more information. 2 good deals to consider for your next holidayYTL Hotels' Refreshed Residents' PackageYTL Hotels is offering the Refreshed Residents' Package at both Pangkor Laut Resort and Gaya Island Resort for guests based in Malaysia, Brunei and Singapore. At Pangkor Laut Resort, choose either the signature over-water Sea Villas, or on land in the Hill and Garden Villas. The resort also offers a complimentary jungle walk traversing the southwest tip of the private island, accompanied by the experienced and informative resident naturalist and ending at Emerald Bay. Get pampered at the award-winning Spa Village, which has treatments inspired by the healing traditions of the region — guests can enjoy 30% off 80-minute treatments. The package includes daily breakfast, lunch and dinner, complimentary room upgrade to the next category and return scheduled speedboat transfers from Marina Island Pangkor. Meanwhile, the Gaya Island Resort off the city of Kota Kinabalu, Sabah has luxuriously appointed villas against the hillside along the coast of Malohom Bay, where guests are afforded stunning vistas of Mt Kinabalu on the horizon. Activities abound here — from snorkelling and kayaking to stand-up paddleboards, as well as guided nature walks through the forests of Gaya Island, or a trek to the private Tavajun Bay. Pure relaxation awaits at the Spa Village, where every treatment pays tribute to the healing cultures of the indigenous peoples of Borneo, and guests can enjoy 30% off 80-minute treatments. The package includes daily breakfast, lunch and dinner, complimentary room upgrade to the next category, and return scheduled speedboat transfers to Sutera Harbour Marina. The Refreshed Residents' Package at both hotels start from RM999 nett per room per night for a minimum stay of two nights at the resort. Booking period is until Aug 31 for stay from now until Sept 30. To book, email [email protected] or call (03) 2783 1000. 1 Italian indulgenceNerovivo Chef Michele Cuozzo's menu of the month at Nerovivo takes its inspiration from the cuisine of Naples. Dine on items such as Gnocchi del pastore (potato gnocchi, rocket sauce and pecarino cheese, RM38) or the Pasta e fagioli (pasta with beans, RM38). If you're hankering for lasagna, go for the Pasticcio di broccoli e pesce — which has broccoli, barramundi, breadcrumbs and lemon (RM42). Another to try is the Capitone in umidorm (eel stew with tomatoes and onion on toasted bread and served with grilled red chicory, RM68). If you're up for game, order the Coniglio fritto (fried rabbit, potato wedges and romaine lettuce, RM72). End your meal on a sweet note: take your pick of the Torta al limoncello (limoncello tart served with vanilla ice cream, RM30) or Torta caprese (almond chocolate tart served with tiramisu cream, RM30). 1 showcase of contemporary danceFragmentFragment is a testimony to James Kan's depth and vision as a choreographer. It is a beautiful piece highlighting the complex struggle between a fragmented soul and a complete outer body, balancing between illusion and reality. It is a journey of self-discovery to find the true and yet broken self. For this performance, he merges dance and multimedia to tell his story. 8.30pm tonight and tomorrow, and 3pm tomorrow and Sunday at Annexe Gallery, Central Market Annexe, Jalan Hang Kasturi, KL. Tickets are priced at RM35 or RM20 for students. Call (012) 990 1913 for more information. 4 musical splendoursMokhtar SambaMan of rhythm Mokhtar Samba has securely established himself over the years as one of the leading musicians in the multicultural music scene. Drummer and percussionist of Moroccan and Senegalese origin, Mokhtar has played alongside the most prestigious of musicians, including Joe Zawinul, Jaco Pastorius, Youssou N'Dour, Carlos Santana, Carlinhos Brown, Eddy Louis, Jean Luc Ponty, Manu Dibango and Richard Bona. Catch him tonight or tomorrow night at 10pm, No Black Tie, 17 Jalan Mesui, KL. Cover charge is RM60 or RM40 for students. Call (03) 2142 3737 for reservations. Sacred Music Festival 2013Two different concerts are happening that showcase important sacred works of music. Tonight, pieces by the father of sacred music, J S Bach, and his contemporary, Telemann, will be performed by 14 soloists, including outstanding baritone Caleb Woo and soprano Chia Yee Yean. They will be accompanied by a chamber orchestra. Tomorrow night, Joseph Haydn's oratorio The Creation will be performed by soloists Tan Sin Sim, Caleb Woo and Solomon Chong, together with the Yin Qi Choir and orchestra accompaniment. 8pm at the Luther Centre, 4 Jalan Utara, PJ. Tickets are priced at RM40. Call (03) 7982 1576 for more information. Poova Award-winning singer, songwriter and composer Poova — known for her powerful soulful voice, unassuming character and vibrant energy — brings her newest musical creations to the stage of Alexis. With her electronic band, Poova is set to deliver a fresh and innovative showcase of new sounds and styles, from her latest work in progress album which promises an international element to Malaysian music. Tonight and tomorrow night at 10pm, Alexis Bistro Ampang, Great Eastern Mall, KL. Free admission. For reservations, call (03) 4260 2288. Stereo & PopcornThis concert is by newly-formed home-grown vocal group Tapestry, who will be performing popular songs from television and film, Broadway and radio. The show is in support of the Deaf in Business Coffees of Hawaii (located in Damansara Perdana). Show is at 8.30pm tonight, Saturday and Sunday (there's a 3pm show on Sunday as well) at Black Box, Damansara Performing Arts Centre, Empire Damansara, Jalan PJU 8/8, Damansara Perdana, PJ. Tickets are priced at RM40 or RM30 for students. Call (03) 2054 0960 or visit www.dpac.com.my.

https://theedgemalaysia.com/node/42486

#Stocks to watch:* Maxwell, MTD Capital, Tenaga, banks

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KUALA LUMPUR: After three straight days of gains on Bursa Malaysia which sent the FBM KLCI surging to fresh record highs, investors could be taking some profit, especially it being settlement day on Thursday, Jan 5 after the huge increase in trading volume. However, the firmer overnight close on Wall Street and the strong foreign buying of banks and key blue chips on Bursa Malaysia could absorb the profit taking activities. The FBM KLCI displayed its resilience on Wednesday when it managed to snap out of the earlier losses to close at a fresh historic high of 1,566.17, up 14.28 points or 0.92%. The intra-day high was 1,571.85 On Wall Street, the creation of three times as many private-sector jobs as expected turned Wall Street's early losses into gains on Wednesday, Jan 5, extending a rally investors worried had come too far too fast. U.S. private employers added 297,000 jobs in December, a report by the ADP Employer Services showed, which was nearly three times what economists forecast and the biggest jump on record for ADP, which has data going back to 2000. The Dow Jones industrial average gained 31.71 points, or 0.27 percent, to 11,722.89. The Standard & Poor's 500 Index rose 6.36 points, or 0.50 percent, to 1,276.56. The Nasdaq Composite Index added 20.95 points, or 0.78 percent, to 2,702.20. Stocks to watch on Thursday include Maxwell International Holdings Bhd, MTD Capital Bhd, Tenaga Nasional Bhd and banks. The Edge FinancialDaily reports a meeting between the various investors who had parked their money with financially troubled SJ Asset Management Sdn Bhd (SJAM) is likely to be held in the afternoon. Maxwell International Holdings – a China-based sports footwear manufacturer – will be listed on Thursday. Its offer of 20 million new shares was undersubscribed, with applications for 18.015 million shares.  The IPO consisted of a public issue of 63.75 million new 40 sen shares at an offer price of 54 sen each. MTD Capital Bhd’s subsidiary MTD Manila Expressways Inc imposition of the 290% toll rate hike along the South Luzon Expressway in the Philippines faces a legal suit. MTD Manila Expressways had received a petition for the issuance of a temporary restraining order and/or status quo to restrain the implementation of the toll rate hike of 3.024 pesos or 22 sen per km initial toll rate hike. The suit was filed by Ernesto B. Francisco, Jr in the Supreme Court Philippines against the Toll Regulatory Board of Philippines, MTD Manila Expressways, Manila Toll Expressways System, Inc and the South Luzon Tollway Corp. The Edge FinancialDaily also reports that the severe flooding in Australia has resulted in a dip in Tenaga Nasional Bhd's (TNB) share price on the back of rising coal prices following a supply disruption, although this could represent an opportunity to accumulate shares in the national utility company, say some analysts. Banks including CIMB, Maybank and Public Bank could continue to be in focus after foreign funds snapped up their shares on expectations of a firm recovery of the economy and a stronger ringgit. Auto sales in Malaysia are forecast to inch up 4.1% to 623,000 units from a year ago, supported by the launch of new models and a stable economic outlook, said global consulting outfit Frost & Sullivan. Chuan Huat Resources Bhd’s rights issue of 41.79 million warrants was oversubscribed by 16.45 times. The total acceptances and excess applications received for the rights issue was for 729.26 million, or 1,745.10% of the 41.79 million warrants available.

https://theedgemalaysia.com/node/18552

Most key Asian markets in the red

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At 12.30pm, the 30-stock FBM KLCI fell 2.52 points to 1,216.28. Turnover was thin with 330.87 million units transacted at RM393 million. There were 189 gainers, 254 losers and 223 stocks unchanged. Japan's Nikkei 225 fell the most, down 1.48% to 10,359.11; Shanghai's Composite Index 1.09% lower sat 3,026.92; Hang Seng Index slipped 0.3% to 21,705.87 while Singapore's Straits Times Index was almost unchanged at 2,672.01. Crude palm oil futures rose RM20 to RM2,202 but light crude oil slipped 29 cents to US$72.19. On the technical outlook for Bursa Malaysia, Maybank Investment Research cautioned the FBM KLCI may hit its saturation zone of 1,237.25 to 1,248.34 very soon. "As such, potential rewards diminish significantly, whilst risks to the downside increase greatly. Remain in a 'selling' mode and stay vigilant," it said. Tanjong fell the most, down 30 sen to RM15.30 but with just 348,300 shares done while SP Setia lost 21 sen to RM4.39 on cautionary reports from analysts and Ta Ann gave up 18 sen to RM4.65. MISC-F fell 17 sen to RM8.78 and Tenaga showed a surprising decline of 13 sen to RM8.20. KNM was the most active with 27.3 million shares done, down 1.5 sen to 79 sen. Tamadam rose three sen to 55 sen and it was the third most active with 22.3 million shares done as interest was spurred by an off-market deal involving a 13.9% stake at RM1 per share the previous day. L&G rose 4.5 sen to 79 sen, Air Asia five sen to RNM1.45 and TA four sen to RM1.27.            Aeon Credit rose 20 sen to RM4.10 after a strong set of earnings while KESM added 17 sen to RM2.35. Bursa's latest corporate exercise saw its share price adding 15 sen to RM7.98 and Proton advanced 10 sen to RM4.40.

https://theedgemalaysia.com/node/36595

BOE policy makers united on policy as guidance threshold nears

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(Feb 19): The Bank of England’s nine policy makers were united this month on the need to keep the current policy stance as they prepared for the new phase of Governor Mark Carney’s forward guidance. “With unemployment remaining above the 7 percent threshold, the committee’s policy guidance therefore remained in place and no member thought it appropriate to tighten, or to loose, the stance of monetary policy,” the BOE said in the minutes of the Monetary Policy Committee’s Feb. 5-6 meeting. While unemployment had fallen, the MPC said there was “scope to absorb spare capacity further” before increasing the benchmark interest rate from a record-low 0.5 percent. The minutes also show the MPC didn’t hold a vote on the new phase of forward guidance Carney introduced this month. Under that program, the MPC will switch its focus from the unemployment rate to spare capacity and a range of other indicators. Carney said last week the BOE’s central measure of slack in the economy is about 1 percent to 1.5 percent of gross domestic product, and the minutes didn’t show any discussion of this assessment. The minutes showed the MPC voted 9-0 to keep the key rate unchanged and the asset-purchase program on hold. On the outlook for the economy, the BOE said there was momentum in the recovery and it expected this to continue over the coming quarters. “Reduced uncertainty, easier credit conditions and the stimulative stance of monetary policy should support continued firm economic growth,” the minutes said. “Abroad, there had been modest upside news about the euro-area economy and some amelioration of risks relating to the euro-area periphery.” The BOE also forecast that inflation will remain around its 2 percent target. Data yesterday showed consumer-price growth slowed to 1.9 percent in January. The MPC said there are “heightened concerns about the risks” relating to emerging markets and that this could put downside pressure on global energy and commodity prices.

https://theedgemalaysia.com/node/71456

#Splurge* Montblanc's Princesse Grace de Monaco

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HANDWRITTEN letters will never go out of style — and if you share the sentiment, perhaps you should indulge yourself in this beautiful fountain pen from Montblanc's Princesse Grace de Monaco collection. Embodying her timeless and iconic style, the pen is crafted from a majestic deep purple resin with champagne-toned gold fittings. There are also lovely intricate details, like a feminine "neckline" clip with a petal-shaped drop-cut pink topaz and a heart-shaped opening on the 18-carat gold nib. The regal fountain pen is now available at Montblanc boutiques at Pavilion KL, Suria KLCC and the Kuala Lumpur International Airport. It retails at RM3,020. This story appeared in The Edge on Oct 15, 2012.

https://theedgemalaysia.com/node/72690

Bina Darulaman 3Q profit falls to RM5.45m, despite higher turnover

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KUALA LUMPUR (Nov 6): Bina Darulaman Bhd (BDB) saw its net profit for the third quarter (3Q) ended Sept 30 decline 6.67% to RM5.45 million from RM5.84 million in the previous corresponding quarter, despite recording higher turnover for the period. Revenue for the quarter rose 21.5% to RM85.5 million from RM70.36 million last year as the group saw improved performances in its construction, property, road and quarrying divisions. "The construction division was the biggest contributor of revenue and profits through higher progress billings for the Kolej Universiti Insaniah (KUIN) and other ongoing projects," said BDB in a Bursa filing today (Tuesday). Meanwhile, for the nine month period ended Sept 30, BDB posted a 53.28% growth in net profit to RM18.7 million from RM12.2 million on the back of a 64.26% increase in revenue to RM234.07 million compared to RM142.5 million previously. Looking ahead, the group is expecting a respectable performance for the rest of the financial year encouraged by sustainable contributions from its road and quarry division, sufficient construction jobs as well as encouraging response for its property launches. "The group’s core businesses are expected to return respectable performance for the current year despite a host of circumstances surrounding the economy both local and international, " said BDB.

https://theedgemalaysia.com/node/87857

Supermax top line 5% under expectation

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Supermax Corp Bhd(May 31, RM2.06) Downgrade to add at RM2.02 with a revised target price of RM2.32 (from RM2.60): Supermax’s first quarter (1Q) top line revenue grew by 29% year-on-year (y-o-y) to RM320.5 million. This was mainly driven by higher volume sales from its expanded production lines, though negated by lower average selling prices (ASP), in tandem with the lower raw material costs. Notwithstanding the strong growth in revenue, Supermax’s earnings before interest and tax (Ebit) margin for the first quarter of the 2013 financial year ending December (FY13) was flat year-on-year (y-o-y) at 9.8%. It was held back by a sharp rise in operating cost (32.5% y-o-y to RM289 million), mainly due to the implementation of the minimum wage effective January 2013. Consequently, 1Q’s core net profit increased by a slower 13.6% y-o-y to RM31.8 million. Results were below both our and street expectations. Sequentially, Supermax’s top line revenue declined  by 0.5%. The key culprit was a lower ASP, as well as stiffer than expected price competition within the nitrile glove segment. Coupled with higher labour cost (5% quarter-on-quarter [q-o-q]), which offset the impact of the marginal growth in revenue, the group’s Ebit margin fell from 12.6% in 4QFY12 to 9.8%. The group’s core net earnings fell by a marginal 1% q-o-q, thanks to a lower effective tax expense (1QFY13 effective tax rate: 12.7% against 4QFY12’s 24.8%). We gather that the company’s Sungai Buloh surgical glove plant, which was partially commissioned in May 2012, is only 71% complete currently (five out of seven production lines are commissioned). Management indicates the remaining lines will continue to be commissioned in stages when the additional capacity of sterilisation facility is available. This is below our expectation, as we had earlier expected its surgical gloves plant to be fully commissioned by 1QFY13. Hence, we are trimming down our production capacity by 7.7% to 9.1% to 14.8 billion to 17.5 billion pieces for FY13 to FY15. We are also revising upward our effective tax rate assumption to 16% from 14% as management has clarified the group is close to have fully utilised its reinvestment allowance claims. Following our EPS downgrade and rolling over our valuation window to FY14 EPS, our target price is lowered to RM2.32, (RM2.60 previously) pegged to an unchanged price-earnings ratio of 10 times. We are downgrading the stock from “buy” to  “add”. The key risk to our view is a further delay in its manufacturing plant expansion. — Affin IB Research, May 31 This article first appeared in The Edge Financial Daily, on June 3, 2013.

https://theedgemalaysia.com/node/41204

A new strategy fgrowth or Penang

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KUALA LUMPUR: Penang has to reinvent its economy in line with new global trends because the old growth formula that turned it into a global manufacturing hub is not working any longer. To get out of the middle income trap, the state should adopt a multidimensional growth strategy which embraces three elements: cities, people and the economy, say the authors of a new book Cities, People and The Economy: A study on Positioning Penang was launched in George Town last Saturday. “At present, these elements are out of synch with each other in Penang. The urban cycle is just starting to enter a recovery phase, following the Unesco World Heritage Site listing. The people cycle is still in a recession, with new graduates choosing to leave the area. The economy is caught in a slump, with the boom years a thing of the past,” say Homi Kharas, Albert Zeufack and Hamdan Majeed in a statement. The book, a research project between Khazanah Nasional Bhd and the World Bank, identifies six focus areas as drivers of Penang’s economy — technology-based manufacturing, biotechnology/life sciences, business-process outsourcing (BPO), logistics, tourism and agribusiness. It was launched by Minister in the Prime Minister’s Department Tan Sri Nor Mohd Yakcop. Kharas, formerly the chief economist for East Asia for the World Bank, is currently at the Brookings Institution and a member of the National Economic Advisory Council. Zeufack is a Cameroon national, formerly with the World Bank and currently working for Khazanah Nasional while Hamdan heads its Penang office. This article appeared in The Edge Financial Daily, December 6, 2010.

https://theedgemalaysia.com/node/4134

Husni: First stimulus allocation to be fully disbursed by mid-year

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He said a total of RM5.9 billion had been disbursed to date. Under the RM60 billion second stimulus plan, Husni also said the RM5 billion operating expenditure would be disbursed in September, while the RM5 billion allocation for development expenditure had been channelled to the finance ministry on March 25 for disbursement. Speaking after the handover of duties by his predecessor Tan Sri Nor Mohamed Yakcop here today, Husni said the ministry would ensure that the total RM67 billion would be implemented to bring positive results to the economy. He added that the ministry would work closely with the Economic Planning Unit (EPU) and the Implementation Coordination Unit to see that the Ninth Malaysia Plan projects were on schedule. Husni also said demand from overseas markets was still weak as exports for February fell 15.9% year-on-year (y-o-y) versus a contraction of 27.8% y-o-y in January, while the Industrial Production Index (IPI) in February fell 14.7% y-o-y versus a decline of 19.8% y-o-y in the previous month. "My main goal as second finance minister is to ensure the restoration of the national economy back to the top of a steady growth rail," he said, adding that the government would take all necessary steps to boost investment and domestic consumption. He also said the finance ministry would continue to simplify procedures and speed up the approval process, especially in government procurement, the budget, and payments, noting it would continue to be transparent and accountable in all stakeholder activities. Asked whether there was a need to re-peg the ringgit to the US dollar, Husni said the government did not plan to peg the ringgit at the moment as the current managed float system was adequate to protect the local unit from fluctuations and had helped it appreciate against the greenback in recent years. Meanwhile, Nor Mohamed, who is now Minister in the Prime Minister's Department in charge of the EPU, said the government would continue to push for reforms to boost domestic demand. He said the export-driven economic model to tackle the Asian financial crisis was not appropriate this time around. "The model that we have used is no longer relevant in the next 50 years because it is a model based on low wages and heavily relied on exports to the United States," he said. Nor Mohamed said there must be a new economic model and supply chain for the medium to long term that substantially reduced our export dependence and relied more on domestic consumption.

https://theedgemalaysia.com/node/87998

Gerakan to hold state-level party elections this month

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GEORGE TOWN (June 4): Gerakan will hold state-level party elections this month, while the national elections will take place at its delegates' conference on Oct 26. With this, Gerakan will be the first party to hold elections after the 13th general election, said party national election supervisory committee chairman Tan Sri Dr Chin Fook Weng.

https://theedgemalaysia.com/node/41332

Corporate: Cheng family poised to clinch Pan Malaysia Pools

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The Cheng family is believed to be close to clinching the gaming arm of Tanjong plc for a price of not more than RM2 billion. It is learnt that Datuk Douglas Cheng had met T Ananda Krishnan’s right-hand man, Ralph Marshall, in recent weeks to firm up the details. The last discussion is understood to have taken place over the phone late last week. “The deal is on the table. Douglas is expected to put in a bid soon. It’s just that Tanjong is not able to sign anything until its privatisation exercise is completed,” says a source familiar with the transaction. Tanjong’s privatisation is expected to be wrapped up around Nov 24 and the agreement is likely to be signed after that. Industry observers point out that it wouldn’t be surprising for the Chengs to land the purchase of Pan Malaysia Pools Sdn Bhd (PMP). “It makes sense ... after all, they are already in gaming,” he observes. The Chengs are involved in the gaming slot machine business in the Klang Valley. PMP has been up for sale for some time and has no lack of suitors. It is the country’s smallest number forecast operator (NFO), but the gaming business is attractive as it provides steady cash flow. Parties said to be eyeing PMP include Datuk Yap Yong Seong, better known as Duta Yap, Tan Sri Tiong Hiew King’s investment vehicle Rimbunan Hijau, and Filipino tycoon Roberto Bobby Ongpin. Last week, online news portal The Malaysian Insider had speculated that the MCA could be interested in bidding for Tanjong’s gaming arm, but this was flatly denied by party president Datuk Seri Dr Chua Soi Lek. It was reported that opinion within the MCA on this matter was divided. According to the news portal, the MCA’s investment panel chief Tan Sri Dr Fong Chan Onn had met officials close to Ananda Krishnan. It is believed that Fong, with advice from a key corporate figure, had been keen on the acquisition of PMP. The MCA had appointed Fong and Chua’s son, Tee Yong, in May to assist in managing the party’s assets, estimated to be worth over RM2 billion.However, the possibility of the MCA going into gaming was quickly squashed by Chua, who said the MCA was open to making investments but had no intention of going into gaming. Be that as it may, it is not difficult to fathom why Tanjong’s gaming arm has attracted attention. According to AmResearch, cash from its NFO division is used to pay almost 75% to 85% of Tanjong’s dividends every year. From 2006 to 2010, Tanjong had been dishing out net dividend per share of 51.5 to 75 sen. Its dividend payout ratio for that period ranged between 59.6% and 78.3%.While Tanjong’s gaming business generates a lot of cash, it had expected to face challenges, in particular in its racing totalisator (RTO) segment. Totalisator expenditure has been escalating while the profit margins of the group’s NFO operations are expected to be compressed because of the increase in pool betting duty from 6% to 8% for NFO operators. The RTO business, which has been in the red for the past 10 years, has been a drag on the overall profit of Tanjong’s gaming segment. The RTO segment first slipped into an operational loss during Tanjong’s financial year ended Jan 31, 2000. Its latest audited operational loss of RM65.8 million for FY2010 was RM38.9 million more than the RM26.9 million loss recorded in the previous year. This was due primarily to escalating totalisator expenditures incurred and charged by the turf clubs. The gaming segment’s operating profit for FY2010 fell by RM41 million to RM169 million from RM210 million previously. Gaming analysts, however, point out that the NFO business commands a premium because licences are scarce. “The RM2 billion price is on the steep side, given that the RTO arm is bleeding. The price of RM2 billion, for a profit after tax for FY2011 of, say, RM82 million would result in a PER of 25 times … that is steep. But, the potential is there. Also, there are no more NFO licences available, so from that point of view, Tanjong’s gaming arm is attractive,” says ECM Libra Research’s gaming analyst Yin Shao Yang. “In terms of prospects, there is the possibility of new games. Revenue collection from Tanjong’s NFO has been stagnant for a long time. The trick is to bring in the new games. From Pan Malaysia’s perspective, it is the only one without a jackpot game, so there is potential there. The normal 4D payout is 65.5%, but for jackpot it is 55%. Obviously, the margin is higher for jackpot games,” he notes. He also notes that if there is a reduction in gaming duty, “the gaming business could see an addition of RM30 million to net profit per annum and that would translate the RM2 billion price tag into a PER of 18 times”. PMP is estimated to have a market share of 24% in NFO among the country’s three players. Tan Sri Vincent Tan’s Berjaya Sports Toto Bhd has 40% of the market, while Magnum Corp Bhd has 36%. According to Tanjong’s FY2010 annual report, the RTO business plans to increase the number of simulcast races from abroad, such as Australia, South Africa, Japan, Hong Kong and Macau. For FY2010, Tanjong’s NFO locked in an operating profit of RM234.9 million — a stark contrast to the RTO’s operating loss of RM65.8 million. Tanjong’s Ebitda for its NFO business was between RM173 million and RM244 million from 2006 to 2010. As at Jan 31, the Ebitda of its NFO segment stood at RM241 million.     This article appeared in Corporate page, The Edge Malaysia, Issue 832, Nov 15-21, 2010

https://theedgemalaysia.com/node/81678

KPJ: Short-term pain for long-term gains

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KPJ Healthcare Bhd’s (RM5.89) earnings results for the fourth quarter of 2012 (4Q12) and for the full year were right in line with our forecast — reflecting steady topline growth on rising demand for healthcare services although margins were hurt by start up costs. Turnover totalled RM2.11 billion for 2012, up 11% year-on-year (y-o-y). This was due to a combination of organic growth at its network of hospitals as well as contributions from the newly opened KPJ Klang Specialist Hospital in Bandar Baru Klang, which started operations in May 2012. Meanwhile, the hospitals in Indonesia almost doubled their revenue contributions last year on the back of higher patient numbers. Turnover was also bolstered by full-year contributions from the aged care facility in Australia, which was acquired in November 2011. However, net profit was down 3.2% to RM139.1 million. This was attributed, primarily, to lower asset revaluation gains at associate company, Al-Aqar Healthcare REIT, as well as start up costs at the newly opened hospitals. Al-Aqar reported fair value adjustments totalling some RM10.8 million in 2012, compared with RM38.7 million in the previous year. The investments in Indonesia and Australia also remained loss making. Its Rumah Sakit Bumi Serpong Damai in Indonesia only started operations in early 2010. The typical gestation period is three to five years. Aggressive expansion planWe expect margins for KPJ to remain under pressure over the coming quarters given its aggressive expansion plans. As mentioned earlier, a newly opened hospital usually has a gestation period of between three and five years. As a result, profit growth is expected to lag top line growth for the foreseeable future. Turnover growth for KPJ will come from two fronts — organic growth, including expansion of current facilities, and new greenfield projects as well as acquisition of brownfield projects. In the current year, we expect the company to complete the acquisition of Sri Manjung Specialist Centre in Perak for RM14.3 million. It has just finalised the purchase of an 80% stake in Rumah Sakit Medika Permata Hijau in Indoesia, which it had been managing for the past 15 years. Last year, KPJ acquired a 23.37% stake in Vejthani Hospital in Thailand for RM60.5 million. The new Sabah Specialist Hospital is expected to open in the next few months. KPJ completed the acquisition of the remaining 49% stake in that hospital in August 2012 for RM54.88 million. Other greenfield projects slated for completion this year include the Pasir Gudang Specialist Hospital and Maharani Specialist Hospital, both in Johor. Looking slightly ahead, KPJ has several other hospitals planned for commercial operations over 2014 and 2015, including one in Tanjung Lumpur, Pahang (under a 70:30 joint venture with Pasdec Corp Sdn Bhd); another in Perlis (under a 60:40 joint venture with the Yayasan Islam Perlis); and one more in Miri, Sarawak (under a 70:30 joint venture with Naim Land Sdn Bhd). KPJ recently completed the acquisition of a piece of land in Bandar Datuk Onn, Johor, for RM45 million for a hospital which is expected to be a sizeable one, with an estimated capacity of almost 400 beds. Its target market includes medical tourists, mainly those from neighbouring Singapore. Elsewhere, it acquired several plots of land, totalling 1.84ha, in Sazaen Business Park in Klang for some RM23.8 million in June 2012. The cost of developing the entire area  is estimated at RM110 million to RM120 million while the construction cost for a hospital building is estimated at RM80 million. KPJ has also inked an agreement to lease a hospital building in Penang from Aseania Development Sdn Bhd for a 10-year period. This new facility will be located on a plot of land beside the existing Penang Specialist Hospital. Aseania has the rights to develop a township in Seberang Prai, Penang and will build the medical facility according to KPJ’s specifications. KPJ’s aggressive expansion plans are based on expectations of continuing growth in the demand for healthcare services — on the back of factors such as an ageing population, rising affluence and an increase in lifestyle-related diseases. Additionally, some of the company’s existing facilities are slated for expansion. There are plans for a new six-storey building for the Puteri Specialist Hospital in Johor as well as additional beds at the Tawakkal Specialist Hospital in Kuala Lumpur and Damansara Specialist Hospital in Petaling Jaya. Shares reasonably valued relative to peersNet profit is estimated at roughly RM146.4 million this year, up by about 5% from the RM139.1 million in 2012 (excluding any additional fair value adjustment for Al-Aqar). KPJ’s shares rallied to a high of RM6.50 last July, bolstered by excitement surrounding the listing of IHH Healthcare Bhd but have since given back some of these gains. At current price, the stock looks to be reasonably valued at roughly 26.3 times and 24.8 times our earnings estimates for 2013 to 2014, respectively. This is lower than prevailing valuations for IHH as well as Singapore-listed Raffles Medical Group Ltd. The company lowered dividends marginally in 2012, to 11.5 sen per share from 12 sen per share in the previous year on account of a larger share base. Thus, payout ratio was in fact higher at 53% of net profit, up from 49% in 2011. Assuming a similar payout ratio, dividends are estimated to be 12 sen per share in 2013. This translates into a modest net yield of about 2% at the prevailing share price. A long-term growth storyClearly, KPJ remains very much a long-term growth story, especially once its string of planned hospitals mature. We expect the company to hive off some of its hospitals to Al-Aqar in the near future to keep its balance sheet asset-light while it focuses on the provision of healthcare services. Gearing stood at 35% at end-2012. The company has some 10.3 million warrants outstanding. These warrants can be converted into ordinary shares at anytime up to January 2015 at an exercise price of RM1.70. At the prevailing price of RM4.20, the warrants are trading at a very slight 1% discount. Assuming full conversion, KPJ’s total share capital will increase to 659.6 million shares, from 649.4 million currently. Note: This report is brought to you by Asia Analytica Sdn Bhd, a licensed investment adviser. Please exercise your own judgment or seek professional advice for your specific investment needs. We are not responsible for your investment decisions. Our shareholders, directors and employees may have positions in any of the stocks mentioned.

https://theedgemalaysia.com/node/39642

Masteel warrants surge, tops gainers list

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KUALA LUMPUR: Malaysia Steel Works (KL) Bhd’s warrants surged in early trade on Tuesday, Nov 2 on its first trading day. At 9.35am, it was up 17 sen to 38.5 sen with 128,500 shares done. The FBM KLCI slipped 0.94 of a point to 1,508.72. Turnover was 170.3 million shares done valued at RM254.32 million. There were 166 gainers, 122 losers and 232 stocks unchanged. The five-year warrants (Warrants 2010/2015) were issued on the basis of one warrant for every two shares held at an issue price of 18 sen per warrant.

https://theedgemalaysia.com/node/52330

Bursa Securities queries Sarawak Consolidated

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KUALA LUMPUR: Bursa Malaysia Securities Bhd has issued an Unusual Market Activity (UMA) query to Sarawak Consolidated Industries Bhd (SCIB) on Wednesday, July 27 due to the stock price hitting limit-up in the morning trading session today. SCIB rose 30 sen to 65 sen as at 2.37pm with 3.8 million shares done. Bursa said in accordance with the Listing Requirements, SCIB was to publicly confirm if there were any corporate developments or rumours concerning the business that may account for the UMA.

https://theedgemalaysia.com/node/34586

OSK Research: Immediate outlook of FBM KLCI bullish

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KUALA LUMPUR: OSK Research said the  immediate technical outlook of the FBM KLCI remains bullish. In its technical outlook issued on Tuesday, Aug 3 it said the FBM KLCI went up by slightly more than 8 points on Monday but ended the session with a gain of only 2.68 points. As a result, the index left behind a candlestick with a long upper shadow line, which could potentially turn out to be a bearish reversal pattern. Until it is proven so, the FBM KLCI’s current technical posture remains very healthy. Moreover, the broader market sentiment was positive and the futures index also went up by more than 10 points on Monday. “The immediate technical outlook of the FBM KLCI remains bullish. The fact that the key index could surpass the 1,350-level after the three previous failed attempts over the March-May period is a very positive technical development,” it said. OSK Research said the index’s daily RSI closed at the 71 point-level last Friday, which suggests that the room is still open for additional gains. The benchmark index usually reaches an overbought condition at above the 80 point-level. “From the current level, the next tough resistance lies at the 1,395-level while initial support is still seen at the 1,350-level, followed by the 1,332-level and the 1,326-level,” it said.

https://theedgemalaysia.com/node/59174

MARC assigns final rating of AAAIS to PLUS’s RM23.35b debt notes

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KUALA LUMPUR (Dec 30): Malaysian Rating Corp Bhd (MARC) has assigned a final rating of AAAIS with a stable outlook to Projek Lebuhraya Usahasama Berhad’s (PLUS Bhd) RM23.35 billion Sukuk Musharakah Programme. Upon MARC’s review of the final documentation for its forthcoming notes issuance, the rating agency said on Friday it was satisfied that the terms and conditions of the programme have not changed in any material way from the draft documents on which the earlier preliminary rating of AAAIS was based.

https://theedgemalaysia.com/node/92306

Stocks To Watch: Plantation firms, DRB-Hicom, Star, Boustead, Catcha Media, Perisai

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KUALA LUMPUR (July 12): Based on news flow and corporate announcements today, companies that may attract trading interest on Monday could include plantation firms, DRB-Hicom, Star Publications, Boustead, Catcha Media and Perisai Petroleum. Plantation companies may react to the plunge of  crude palm oil (CPO) prices today. Palm oil slumped the most in more than four months after the U.S. government increased estimates for the country’s soybean output and stockpiles before the next harvest, boosting the outlook for global oilseed supplies, Bloomberg reported. At market close today, local CPO futures fell across the board on the derivatives market. The contract for September delivery fell 72 ringgit or 3% to RM2,300 per tonne, while all other futures contracts fell by RM46-RM72 per tonne. Soybean reserves in the U.S., the biggest shipper, will total 295 million bushels (8 million tons) on Aug. 31, 2014, the US Department of Agriculture said in a report yesterday. That’s 11% more than the 265 million bushels forecast in June. Output will jump to an all-time high of 3.42 billion bushels, more than the 3.39 billion estimated last month, the USDA said.DRB-Hicom Bhd is buying a controlling 96.87% stake in aerospace component manufacturer Composites Technology Research Malaysia Sdn Bhd (CTRM) from the Minister of Finance Inc (MOF) for RM298.26 million cash in bid to diversify its business. In a statement to the exchange, DRB-Hicom said the proposed acquisition price comprises RM122.06 million for the stake and RM176.2 million worth of outstanding loan owed by CTRM to the  government. "The DRB-Hicom group's current core business includes the manufacture, supply, maintenance and marketing of land-based military vehicles. "It is the group's intention to diversify its revenue stream from land-based defence business to other areas of defence which also includes aerospace," DRB-Hicom said. DRB-Hicom said it has signed a share-sale agreement with the MOF today. The acquisition is due for completion by the first quarter of 2014. Star Publications Bhd’s share may come under scrutiny following a bomb hoax at its Penang office. Operations of the northern regional  headquarters of The Star Publications (Malaysia) Bhd was disrupted by a fake bomb threat earlier today, causing all staff to be evacuated for several hours. The telephonist at the company's complex in Bayan Lepas received a call at about 9.50 am, a source told fz.com. She then alerted the management, which then called the police. The police ended the search by noon and allowed all staff to return. Balik Pulau OCPD, Supt Mohd Hatta Mohd Zain, confirmed the incident to be a hoax. Boustead Holdings Bhd and Al-Hadharah Boustead REIT Bhd shares will be suspended from trading next Monday (July 15) pending a material announcement, according to Bursa Malaysia filings. Boustead has under its umbrella companies involved in properties, plantations, heavy industries, trading and industrial, investments and pharmaceuticals. At market close, Boustead was up two sen or 0.38% at RM5.26 with 94,600 shares done. Al-Hadharah shares closed one sen or 0.54% higher to settle at RM1.87 today. The counter had a trading volume of 326,100 units. The Armed Forces Fund has stakes in both companies. It owns 61.82% of Boustead and 12.7% of Al-Hadharah, Bloomberg data showed. Catcha Media Bhd announced it has inked an agreement to firm up a RM60 million merger to form one of the country’s largest digital advertising businesses. In a statement today, Catcha Media said the final agreements with Youth Asia Sdn Bhd to merge certain assets with Says Sdn Bhd, the owner of Says.com has been formally signed. It said the merger would result in one of the country’s largest digital advertising businesses by reach, clients and spend, and potentially revolutionise the way advertisers reach out to Malaysia’s populace. Catcha Media’s chief executive officer (CEO) Patrick Grove said the future of digital marketing in Malaysia is going to be enormous.Perisai Petroleum Teknologi Bhd said its unit’s contract with TL Offshore Sdn Bhd for the charter of  derrick lay barge has been extended. The notice received from TL Offshore extends the duration of the charter for a fixed term from 1 July 2013 to 15 August 2013, and thereafter on a daily charter basis subject to a notice period of 21 days to precede the end of the charter.   The daily charter rate for this extended term is US$60,000 a day. The company said the extension is expected to contribute positively to the group's financial position for the current financial year and the financial periods thereafter should the charter be extended further.

https://theedgemalaysia.com/node/82068

RHB Research: Banking stocks to play catch up when election overhang clears

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KUALA LUMPUR (April 1): RHB Research has maintained its Overweight stance on the Malaysian banking sector and said the stocks in the sector had been a laggard, as compared to regional peers. “However, we expect a catch up in share price performance once the election overhang clears,” it said. In a note Monday, the research house said February 2013 system loans expanded by 11.4% year-on-year (y-o-y), led by the household segment (+12.2% y-o-y) while loans to businesses expanded by a more moderate pace of +10.5% y-o-y. As it is still early days yet, we are keeping our 2013 system loan growth projection of 10-11% unchanged.    

https://theedgemalaysia.com/node/79510

Carlsberg declares 58 sen dividend

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KUALA LUMPUR: Carlsberg Malaysia Bhd said it posted a net profit of RM40.8 million for the fourth quarter ended December 2012 (4QFY12), a 7.9% increase over the same quarter a year ago. Revenue for 4Q came in at RM336.5 million, a 0.5% higher than a year ago, while earnings per share (EPS) for the quarter grew to 13.2 sen from 12.2 sen a year ago.The company announced a single-tier final and special dividend of 58 sen per share. In 2011, shareholders received 51.1 sen net of tax per share. Carlsberg said in a press statement that on a full-year basis, the group’s net profit was RM193.8 million, up by 15.8% over 2011. “The group’s profit after tax in 2011 comprised a one-off gain from reversal of over-provision of royalty expenses in the prior year amounting to RM12 million. If this was excluded, the group’s profit after tax would be 24.7% growth against 2011,” said the statement. The brewery’s annual revenue came in at RM1.6 billion, up 6.4% from RM1.5 billion achieved in 2011. EPS for the year grew to 62.7 sen per share, compared with 54.4 sen per share a year ago. Soren Ravn, managing director, commented: “We achieved double-digit growth in earnings and strong single-digit growth in revenue. “The group benefited from the successful 2012 Chinese New Year festive campaign and the well-executed UEFA Euro 2012 consumer campaign in 2Q.” For the 2013 outlook, the company said the domestic economy will continue to grow, and the Malaysian beer market is expected to grow moderately. This article first appeared in The Edge Financial Daily, on February 27, 2013.

https://theedgemalaysia.com/node/74345

Stocks to watch: MAS, Telekom, Masteel, Scomi, Protasco

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KUALA LUMPUR (Dec 1):  The FBM KLCI could trend higher on the first trading day of December after capping its worst November in nine years last week, during which it lost a massive 63.84 points month-on-month, erasing some RM47.83 billion off the market capitalisation. But the gains in early December could be limited, given still worrying external developments. US stocks ended last Friday flat as politicians remain at odds about how to avoid the so-called fiscal cliff, while credit ratings agency Moody's cut its rating for the euro zone rescue funds ESM and EFSF to Aa1 from Aaa following its downgrade of France earlier in November. However, Affin Investment Bank Bhd vice president and head of retail research Dr Nazri Khan said that going forward, he expects the FBM KLCI to be firmer on positive development surrounding USA fiscal cliff, supportive global economic data (above expectation USA third-quarter GDP revisions, USA weekly jobless numbers, USA home sales, Germany Unemployment Change & Japan Household spending) and bullish price reversal in the global equity market (Dow, S&P 500 and Nasdaq back above psycho level 13000, 1400 and 3000 respectively while Nikkei and Hang Seng broke above 9000 and 22000 respectively) He said that on the technical front, the FBM KLCI upside follow through above 1600 psychological resistance and the crucial 200 day moving average confirm a bullish breakout above the recent congestion since early November (after making 5.3% correction from 1,679 to 1,590). “We are currently pegging 1,630 and 1,620 as the next zone of resistance while support zone stands at 1600 and 1,580 levels. “As for weekly stock picks, our featured top five bluechips for retail are Public Bank, Hong Leong Bank, Petronas Dagangan, SapuraKencana Petroleum and WCT Bhd,” he said. Among the stocks that could be in focus next week are Malaysian Airline System Bhd (MAS), Telekom Malaysia Bhd, Malaysia Steel Works (KL) Bhd, Scomi Group Bhd and Protasco Bhd. The Edge weekly in its latest edition reported that MAS snapped consecutive six quarters  last week when it announced a return to profitability, a first clear sign that the management team led by managing director Ahmad Jauhari Yahya could deliver on the promise to turn around the embattled national carrier. It reported that the Ahmad Jauhari as saying that brickbats against the national carrier were misplaced on its planned RM1.3 billion rights issue. “We needed the capital to invest in new equipments to deliver our turnaround plan,” the Edge quoted him as saying. Telekom Malaysia Bhd (TM)’s third quarter earnings eased to RM301.4 million year-on-year despite the absence of a major one-time gain as it booked foreign exchange gains and saved on finance cost. Year-to-date net profits, however, jumped 52% to RM900.5 million on a taxation boost. No dividend was proposed for the quarter, the same as last year. Net profit for the third quarter ended Sept 30, 2012 (3Q2012) eased 0.3% to RM301.4 million from RM302.2 million in 3Q2011, despite the absence of the RM283.5 million one-time gains from selling its Axiata Group Bhd shares as it booked deferred tax income on unutilised tax incentives.  Numbers were also helped by a RM64.8 million unrealised foreign exchange (forex) translation gains on its non-Ringgit borrowings versus a RM122.5 million forex loss in the 2011 corresponding quarter. Integrated steel manufacturer Malaysia Steel Works (KL) Bhd (Masteel) saw its net profit for third quarter ended Sept 30, 2012 (3Q12) plunge 56.5% year-on-year (y-o-y) to RM7 million, despite a 4.2% rise in revenue to RM312.9 million. In a press release, Masteel indicated that higher production costs and weaker selling prices had affected its profitability. For the nine months to Sept 30, 2012, the steel maker posted a net profit of RM21.15 million, down 44% y-o-y, while revenue stood at RM996.98, down 8.8%. Scomi Group Bhd reported a net profit of RM25.47 million in the third quarter ended Sept 30 (3QFY12) against losses a year earlier as gains from the sale of its discontinued oil and gas (O&G) support services operations in Nigeria boosted its bottom line. Scomi told Bursa Malaysia on Friday its 3QFY12 net profit compares with a net loss of RM9.12 million a year earlier. Revenue fell 2% to RM343.48 million from RM351.27 million on lower income from its energy logistics unit, the company said. “This (discontinuing operations) comprises the results of the businesses which have either been or are in the process of being disposed,” Scomi said. Meanwhile, the Edge weekly also reported that a new major shareholder had emerged in Protasco, known for its concession to maintain 6,200km of federal roads in several states in the peninsula as well as Sarawak. It said businessman Tey Por Yee had emerged as the biggest shareholder with a 27.11% stake through his private company Kingdom Seekers Ventures Sdn Bhd. Tey is the founder, managing director and CEO of Netxnation Communications Bhd, in which he holds a 16% stake.

https://theedgemalaysia.com/node/50891

Kencana 3Q net profit jumps 81% to RM56.42m

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KUALA LUMPUR: Kencana Petroleum Bhd’s earnings rose 81% to RM56.42 million in the third quarter ended April 30, 2011 from RM31.17 million a year ago underpinned by the progress achieved for the oil and gas contracts. It said on Friday, June 24 that revenue rose 34.7% to RM377.83 million from RM280.37 million. Earnings per share were 3.08 sen versus 1.92 sen a year ago. “Compared to the corresponding quarter ended April 30, 2010 of RM280.37 million and RM36.5 million, revenue and profit before tax had increased by approximately 35% and 91% respectively in the current quarter. “This is mainly due to higher progress achieved for contracts in hand on the back of bigger order book and better management of relevant costs as well as contribution from drilling services,” it said. For the nine-months, earnings increased by 69% to RM159.38 million from RM94.3 million while revenue increased by 31.5% to RM 1.06 billion from RM811.51 million. Its cash and cash equivalents increased to RM809.50 million as at April 30 from RM222.39 million on July 31, 2010. Kencana was upbeat about its prospects following the Malaysian government’s strategy to intensify exploration activities in Malaysia to increase the oil and gas production as set out in the Economic Transformation Programme.

https://theedgemalaysia.com/node/44382

Chairman: Rising palm oil prices augur well for Batu Kawan outlook

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KUALA LUMPUR (Dec 30): Batu Kawan Bhd expects rising prices of palm oil to augur well for the diversified entity's financials in the current year ending September 30, 2014 (FY14). Chairman Tan Sri Lee Oi Hian said in Batu Kawan's latest annual report that "at the time of writing, palm oil prices have begun an upward move from previous lower levels and this is expected to continue, auguring well for the current year prospects". "However, your board remains mindful of the general slower growth expectations for both the regional and global economies," Lee said. Batu Kawan is the single-largest shareholder with a 47% stake in Kuala Lumpur Kepong Bhd (KLK), an oil palm plantation entity. KLK is the main associate of Batu Kawan, the other businesses of which, include real estate and chemicals. According to Lee, lower commodity prices in FY13 had resulted in KLK's weaker financials during the year. Weaker numbers in KLK had in turn resulted in Batu Kawan reporting a lower net profit at RM483.71 million compared to RM605.69 million a year earlier. Revenue however rose to RM362.03 million from RM336.54 million. Analysts polled by Bloomberg expect Batu Kawan to post an FY14 net profit of RM722 million on revenue of RM411 million. Bloomberg data show that Malaysian palm oil for February 2014 delivery has risen to RM2,627 a tonne today. This compares to RM2,274 seen on September 26 this year.

https://theedgemalaysia.com/node/99081

Highlight: Scientex continues aggressive expansion

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WITH the acquisition of GW Plastics Holdings Bhd earlier this year, Scientex Bhd has leapfrogged its way to become the third largest stretch film manufacturer in the world — just in time for its 45th anniversary. For the time being, the group is not letting up on its aggressive expansion plans, backed by the projected annual cash flow of about RM200 million from its manufacturing and property arms, including contributions from GW Plastics. “In the past 10 years, we have averaged a compound annual growth rate (CAGR) of 31% for profit after tax and minority interests and a CAGR of 16% for our revenue,” managing director Lim Peng Jin tells The Edge in an interview. “Now we are mapping out our plans for the next five years. Given our larger base, it will be hard to sustain the 30% growth rate, but we aim to maintain at least double digit growth,” Lim and his family controls about 60% of Scientex. The 46-year-old has been with the company founded by his father for the past 22 years, and played a key role in transforming Scientex from a small PVC leather cloth manufacturer into a packaging manufacturer and property developer with RM1 billion in market capitalisation today. According to Lim, the group currently has two expansion plans in the pipeline. By the end of the year, it will complete a RM45 million expansion of its stretch film capacity by 26% to 194,000 tonnes a year from 154,000 tonnes at its factory in Pulau Indah. This is on top of the additional 26% tonnage boost from the acquisition of GW Plastics. The expansion is to accommodate rising demand for the group’s stretch film products. More than 95% of its production is exported. Lim notes that both raw material costs and selling prices are denominated in US dollars, which means that the group has a natural hedge against the recent foreign exchange fluctuations. Operational costs, however, are still in ringgit, so the group should see a positive impact to its bottom line if the weak ringgit persists. In terms of revenue, stretch film contributed RM147.8 million in the third quarter ended April 30, or 43% of the group’s total revenue. Scientex has also announced a RM50 million expansion of its consumer packaging arm which contributed RM59.7 million or 17% of revenue in the third quarter. Under this segment, the group is the largest supplier of bread packaging in Asia. The first of the group’s five new blown film extrusion machines will arrive next month, says Lim. This should help ease the bottleneck at its consumer packaging division. In total, two small blowers and five large ones will be delivered by July next year, effectively increasing annual capacity by 50% to 51,000 tonnes. “The acquisition of GW was concluded in January and the businesses were consolidated in the first two months. By April, however, we realised that we needed to expand because we could not keep up with orders [for consumer packaging] and were falling behind delivery schedules,” says Lim. The reason for the expansion is because the current capacity is almost fully utilised, and the new capacity will be easily taken up, he says. Beyond this round of expansion, there are also plans to expand the capacity at its consumer packaging division by another 50% towards the end of next year, says Lim. The group already has 28 acres in Rawang near the existing factory that can be used to accommodate the expansion, he notes. Riding its strong operating cash flow, the group will be able to afford these expansion plans despite its 30% dividend policy and the fact that it had just spent RM283.2 million early this year to acquire GW Plastics, Lim says. “In the third quarter, including contribution from GW Plastics, we achieved an operating cash flow of RM50 million. This will be able to fund our expansion plans. Even after acquiring GW Plastics, our net gearing is only at 0.49 times or RM254 million in net borrowings. In simple terms, it means that we can pay off our borrowings in five quarters,” he explains. Meanwhile, on the property development front, Lim says, “We still have almost 1,000 acres to develop, so there is no urgency at the moment to acquire more land. Of course, we are still on the lookout for good opportunities if they arise,” he says. The group’s current landbank has an outstanding estimated gross development value (GDV) of RM4.6 billion. With developments worth RM500 million in GDV carried out each year, the landbank will last 10 years, he explains. “We are quite conservative, so we don’t chase high prices. We acquired the bulk of our landbank cheap during the Lehman crisis of 2008 and before the Johor property boom. During the crisis, we acquired land in Melaka, Skudai and Senai,” he says. In fact, none of the group’s land cost exceeds RM10 psf, he reveals, with its land in Kulai costing RM3.50 psf, Senai about RM6 psf, and Skudai about RM9 psf. Last year, the group launched 15 projects and plans to launch another 13 over the next year, with an estimated GDV of RM600 million. In Pasir Gudang and Kulai, the group has been successful in developing double-storey affordable housing with a nearly 100% occupancy rate, says Lim. The group’s flagship development will be in Skudai, where it has launched its maiden high-rise project, the Garden Residences in Taman Mutiara Mas. In Skudai alone, the group has ongoing and newly launched projects worth RM456 million in GDV. These projects have a 75% take-up rate, excluding the bumiputera units that are pending release. Over in Senai, the group is developing factories targeted for light industry and small medium enterprises. The project has a GDV of RM100 million. At its close last Thursday, Scientex was trading at RM4.73, valuing the group at 9.4 times forward earnings. In comparison, the group’s historic PER averaged 13.8 times in FY2012. This story first appeared in The Edge Malaysia Weekly Edition, on September 2 - September 8, 2013.

https://theedgemalaysia.com/node/50378

SingPost buys into Efficient E-Solutions

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KUALA LUMPUR: Singapore Post Ltd (SingPost) is buying into another Malaysian public listed company, Efficient E-Solutions Bhd, as part of its plan to pursue growth beyond its snail mail business and to expand beyond Singapore’s shores. The 26.01%-owned company of Temasek Holdings (Pte) Ltd yesterday said its wholly owned unit Singapore Post Enterprise Pte Ltd is subscribing to 50 million Efficient shares in a private placement for some RM9.75 million or 19.5 sen a share, according to an announcement to SGX yesterday. The transaction price of 19.5 sen, which valued Efficient at price to book value of 1.3 times, was at a discount over yesterday’s close of 22 sen. The share acquisition would raise SingPost’s stake in Efficient to 71.24 million shares or 10.06% equity stake from 21.24 million shares previously, which SingPost previously bought on the open market. It is understood that the deal is part of SingPost’s plans to make strategic investments to diversify its businesses portfolio in the region to reduce its dependency on the snail mail business. Prior to the latest share purchase, SingPost has bought into the courier service firm, GD Express Carrier Bhd (GDex), holding 27.08% currently. Efficient is involved in the outsourcing billing and document processing jobs from the banks in Malaysia. Its managing director Cheah Chee Kong is the largest shareholder, holding 17.85% equity stake, followed by Cheah Swee Sin Sdn Bhd (16.13%) and Beaufort International Equities Inc (10.92%). Holding an equity stake in Efficient would enable the postal group to tap onto the former’s data and document processing (DDP) and electronic bill presentment and payment (EBPP) capabilities to explore the banking sector in Indonesia. Besides the new share placement, SingPost had also entered into a non-binding memorandum of understanding (MoU) with Efficient concerning the proposed collaboration between the two companies in DDP business in Indonesia and other countries. Under the MoU, it is contemplated that Efficient and SingPost will jointly invest in setting up of DDP business operations in Indonesia. In addition, both companies will jointly identify business opportunities relating to data and document management in other countries as may be mutually agreed in writing between parties. SingPost and Efficient also may mutually agree to engage in discussions and negotiations with other potential investors or business partners in relation to the collaboration. “Following the signing of the MoU, Efficient and SingPost will discuss in good faith the signing of a definitive agreement on the proposed collaboration in due course,” Efficient said in an announcement to Bursa Malaysia yesterday. In terms of financials, Efficient doesn’t seem to stand out among the IT-based companies. The company’s net profit halved to RM2.16 million for 1Q ended March 31, from RM4.37 million a year ago. The sharp fall in profit was blamed on the significant lower revenue in services rendered for software application development, which carries a high profit margin, despite a higher revenue from services for DDP. Revenue fell to RM14.92 million for the quarter from RM15.43 milliion in the same period last year. Earnings per share halved to 33 sen from 66 sen. Net asset per share was at 15 sen as at March 31. For FY10 ended Dec 31, Efficient posted net profit of RM12.7 million or 1.93 sen per share on revenue of RM58.7 million. SingPost closed unchanged at S$1.16 (RM2.85) yesterday with 693,000 shares traded. SingPost has been building up its business in the Asia-Pacific region through a number of acquisitions recently, including buying equity stakes in cross-border mail and logistics firm Quantium Solutions and US technology company Postea Inc. Indeed, it is learnt that the postal group had initially wanted to take over the ACE Market-listed GDex, which is the former’s direct rival, but its major shareholders were reluctant to sell. The recent stake increase from 5% to 27.08%, which was mostly acquired from GD Holdings International Ltd, gave SingPost a board seat. GDex is competing with SingPost in the courier business in Singapore. According to analysts, SingPost could have been impressed with GDex’s business model and did not rule out the possibility of some form of tie-up with the former, which may involve regional ventures in Laos and Vietnam, for example. SingPost’s recent purchases of GDex shares were at 80 sen a share, which was based on a PER of 34.8 times FY10 ended Dec 31 earnings. Since the acquisition by SingPost, GDex’s share price has appreciated by 20%. There was no trading in GDex shares yesterday. The counter last traded at RM1.03 last Friday, giving it a market capitalisation of some RM264.9 million. GDex shares are trading at a historical PER of 41.37 times compared with its peer, Nationwide Express Courier Services Bhd at a PER of 31.34 times. GDex’s price-to-book value stood at six times while Nationwide’s was 0.6 times, 10 times lower than GDex’s. This article appeared in The Edge Financial Daily, June 14, 2011.

https://theedgemalaysia.com/node/34444

Ranhill-STS collaboration pre-qualified for power plant job

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KUALA LUMPUR: Ranhill Bhd announced that its collaboration with Bangladesh incorporated STS Educational Group Ltd for the development of a US$200 million (RM638 million) power plant project has been pre-qualified by the Bangladesh Power Development Board. In a filing to Bursa Malaysia yesterday, Ranhill said the collaboration had received pre-qualification for the development of a 150MW-225MW combined power plant project on a build-own-operate basis at Bhola, Bangladesh. It said the closing date for the bid was by the last quarter of 2010. This article appeared in The Edge Financial Daily, July 30, 2010.

https://theedgemalaysia.com/node/59591

November industrial output up 1.8% on-yr, down 4.6% on-month

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KUALA LUMPUR (Jan 10): Malaysia’s industrial production index (IPI) for November 2011 increased by 1.8% on-year, underpinned by increases in the manufacturing and electricity indices though mining showed a decline. The Statistics Department said on Tuesday the manufacturing index increased by 4.0% on-year and electricity rose by 2.9% but the mining index fell 4.2%. It also said the IPI in October was revised to 2.9% on-year. “The IPI fell 4.6% month-on-month in November 2011. Cumulatively, the index from January-November 2011 grew 1.2% as compared with January-November 2010,” it said in a statement. The department said while the manufacturing output showed an increase on-year, there was a marked decline on-month. Manufacturing output increased 4.0% in November from a year ago due to increases in petroleum, chemical, rubber and plastic products (2.3%); non-metallic mineral products, basic metal and fabricated metal products (12.4%); and food, beverages and tobacco (12.9%). “As compared with the previous month, the output for November 2011 declined 5.5%. For the first 11 months of 2011, manufacturing output was 4.6% higher compared to the same period last year,” it said. As for the electricity sector, the output rose 2.9% in Novermber 2011 on –year but declined 5.6% on-month. For the January-November period, it increased 1.9% from a year ago. The department said the mining sector continued to contract on-year and on-month. The output for the sector fell 4.2% in November 2011 on-year due to the decrease in crude oil index (6.2%). However, natural gas index increased marginally 0.03%. When compared to October 2011, the mining output decreased 1.8%. For the January-November period, the mining sector recorded a 7.4% decline from a year ago.

https://theedgemalaysia.com/node/35229

AirAsia 2Q results to beat expectations

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AirAsia Bhd(August 12, RM1.54)Maintain outperform at RM1.55 with higher fair value of RM2.08 (from RM1.88): We expect AirAsia’s 2QFY12/10 results, due out on Aug 18 to exceed our expectations. We expect its 2QFY12/10 core profit before tax (PBT) to come in at RM125 million to RM135 million, up 13% to 22% against RM111 million recorded in 1QFY12/10. Cumulatively, 1H core PBT of RM236 million to RM246 million will have accounted for 55% to 57% of our full-year forecast of RM432.1 million. (The full-year consensus PBT of RM600 million is not meaningful as it may have been inflated by exceptional gains.) The quarter-on-quarter (q-o-q) growth in 2QFY12/10 core PBT will have been driven largely by the 208,000 or 6% more passengers carried in 2Q against 1Q despite the relatively flat capacity growth, resulting in a 3%-point improvement in load factor from 73% to 77%. Assuming the same average fares of RM173 recorded in 1Q, this will have brought in RM36 million additional sales (208,000 x RM173). However, the higher sales will have been partially offset by higher fuel costs, taking the cue from the uptrend in Singapore Jet Kerosene during the period. We estimate that AirAsia’s jet fuel cost will have averaged at US$95/bbl (RM302.10/bbl) in 2Q against US$90/bbl in 1Q (AirAsia had only hedged forward 7% its fuel requirements in 2QFY12/10 at US$81.70/bbl jet). Based on AirAsia’s fuel consumption of about one million barrels per quarter, this will have added RM16 million to AirAsia’s total fuel bills in 2Q against 1Q (1 million x US$5 x RM3.20:US$1). We are raising FY12/10-12 net profit forecasts by 7% to 16%, largely to reflect higher yields and traffic, partially offset by a higher fuel cost. Risks to our view include: (i) Recovery in the air travel sector fails to sustain; (ii) Higher jet fuel cost; and (iii) Outbreaks of pandemic diseases. We believe the airline sector is poised for improved prospects over the medium term in line with the recovery in the global economy. AirAsia is an attractive proxy, particularly given that it has also finally done the right things such as: (i) To start delivering more consistent earnings; (ii) To adopt a more “disciplined” growth strategy (that is less aggressive fleet expansion) to ensure that its gearing level is in check; and (iii) To gradually take back the financial and non-financial support lent to associates Thai AirAsia, Indonesia AirAsia and AirAsia X (via debt raising in their own capacity or IPO). Indicative fair value is raised by 11% from RM1.88 to RM2.08 based on 11 times revised FY12/11 EPS (in line with Ryanair), adjusted for RM733.4 million owed to AirAsia by Thai AirAsia and Indonesia AirAsia that translates to 28 sen per AirAsia share. — RHB Research Institute Sdn Bhd This article appeared in The Edge Financial Daily, August 13, 2010.

https://theedgemalaysia.com/node/54546

Rubber gloves show signs of turnaround in 2Q

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Rubber gloves Maintain overweight: After four sequential quarters of earnings decline, rubber glove manufacturers posted their first quarter-on-quarter (q-o-q) growth in 2QCY11. Aggregate core net profit for Top Glove Corp Bhd, Supermax Corp Bhd, Kossan Rubber Industries Bhd and Hartalega Sdn Bhd grew by 2.2% q-o-q, on the back of a 7.9% q-o-q increase in revenue. Hartalega reported another strong quarter — core net profit grew by 4.5% q-o-q, attributed primarily to higher sales volume (9.3% q-o-q) and higher average selling prices (7.4% q-o-q). Excluding Hartalega, aggregate earnings of natural rubber glove manufacturers grew, albeit by a marginal 0.6% q-o-q. The 2QCY11 results for natural rubber glove manufacturers were largely characterised by: (i) lower latex prices. Average latex prices slid by 4.3% q-o-q in 2QCY11, easing cost pressure; (ii) improvement in earnings before interest and tax (Ebit) margins. Top Glove’s Ebit margin remained steady at 6.4% (1QCY11: 6.4%), while Supermax added 0.4 percentage points to 8% (1QCY11: 7.6%); and (iii) lower than usual utilisation rates, specifically for Kossan and Supermax, due to the closure of certain plants for upgrading and refurbishment. Utilisation rates should gradually revert back to normal by 4QCY11. As our earnings forecasts were up to 24% below consensus prior to the August 2011 reporting season, results were largely within our expectations though below consensus. Kossan, however, was below our expectation due to lower than expected utilisation rate. We made no changes to our earnings forecasts for Top Glove and Hartalega. For Kossan, taking into account the lower utilisation rate and lower than expected 2QCY11 results, our FY11 to FY13 net earnings forecasts were cut by between 5% and 14%. We make no change to our FY11 core net profit forecast of RM110 million for Supermax. After factoring in the delay of Glove City to FY14 and the addition of two new plants between FY12/FY13, our FY12/FY13 net earnings forecasts were lowered by 7% to 9%. With signs of recovery finally emerging, we maintain our “overweight” stance on the sector. We expect glove manufacturers’ sequential earnings to improve on the back of: (i) lower and less volatile latex prices; (ii) higher utilisation rates as well as increased production as additional capacity expansion comes onstream in 4QCY11, and; (iii) continued steady demand growth. Hartalega (“buy”, target price: RM7.33) is our top pick for the sector, for: (i) its high Ebit margin of above 30%; (ii) insulation from volatile latex prices, and; (iii) consistent earnings delivery and strong operational efficiency. We also maintain our “buy” recommendations for Supermax (TP: RM4.36) and Kossan (TP: RM4.18) on attractive valuations. Top Glove remains a “reduce” (TP: RM4.62). — Affin IB Research, Sept 8 This article appeared in The Edge Financial Daily, September 9, 2011.

https://theedgemalaysia.com/node/68199

CIMB Research maintains Neutral on KLCI, end-2102 target of 1,650 points

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KUALA LUMPUR (Sept 4):  CIMB Research has maintained its Neutral rating on the FBM KLCI and its end-2102 target of 1,650 points for the index, based on an unchanged 13.3 times CY 13 P/E. In a strategy note Tuesday, the research house said that the August results season was surprisingly weak, making it the ninth straight results season that disappointed. “The stronger-than-expected 2Q GDP growth of 5.4% failed to translate into better corporate performance. This resulted in a cut in EPS growth for 2012. “We introduce our end-2013 KLCI target of 1,730pts based on an unchanged 13.3x P/E. General election risks remain the key overhang, the timing of which appears likely to be later rather than sooner,” it said.

https://theedgemalaysia.com/node/53542

Genetec’s order book rises to RM74m on new orders

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KUALA LUMPUR: ACE Market-listed Genetec Technology Bhd’s order book rose to RM74 million after the company secured new orders worth RM14 million from its new and existing customers. The company said on Thursday, Aug 18 that the orders were expected to contribute positively to its earnings for the financial year ending March 31, 2012. Its executive chairman Ron Ortscheid also said the company’s revenue for the first quarter ended June 30, 2011 rose 51% to RM39.52 million from RM26.13 million a year earlier, due mainly to a strong demand for automation from existing and new customers. However, he said its net profit fell 60% to RM1.62 million from RM4.01 million a year earlier due to higher operating costs incurred upon consolidation of Genetec's newly acquired subsidiaries in the previous financial year ending 31 March 2011. Genetec acquired CLT Engineering Sdn Bhd, Systems South Inc. and IP Systems Inc, with a combined value of approximately RM38.2 million. Ortscheid said the company was experiencing strong demand in the segments in operated in as a result of its overseas expansion plan. “Our customer base is growing and orders from the non-HDD segment now contribute approximately 30% to our total orderbook.” “Moving forward, we are optimistic that the group will enjoy further benefits from these strategic acquisitions, which include larger orders, operational efficiency and cost savings. Hence, we remain confident of our future growth prospects,” he said in a statement. Genetec designs and builds customised factory automation equipment and integrated vision inspection systems

https://theedgemalaysia.com/node/44133

Dayang Enterprise secures RM802m maintenance contract from Petronas Carigali

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KUALA LUMPUR: Dayang Enterprise Holdings Bhd has secured a contract valued at RM802 million from Petronas Carigali Sdn Bhd to provide topside structural maintenance services. Dayang said on Thursday, Feb 10 it had received a letter of award to provide the services for Petronas Carigali’s operations in the country. “The contract shall be effective from Feb 2, 2011 until 1 February 2016,” it said, adding it estimated the total value of the contract to be about RM802 million over the duration. “However, the contract is a ‘call-up contract’ made up of work orders, which will be awarded at the discretion of Petronas Carigali during the duration of the contract and the values of the work orders are based on the contract schedule of rates,” it said.

https://theedgemalaysia.com/node/20672

Budget to boost domestic consumption

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The economist said lawmakers could initiate a personal income tax reduction, and raise civil servants’ salaries. “I only see possible reduction in personal tax. Maybe civil servants’ salaries will be adjusted upwards to give consumption a boost,” Manokaran told The Edge Financial Daily in an interview. Manokaran who drew examples from major emerging economies like China and India, said in times of economic  difficulties, these export-oriented countries had remained resilient because they had emphasised on  domestic demand to sustain their economies. In Malaysia, a total of RM207.9 billion was allocated under Budget 2009, up 5.1% from a year earlier. Of the RM207.9 billion, RM154.2 billion and RM53.7 billion were earmarked for operating and development expenditures, respectively. The country’s rising budget deficit will be closely watched. Manokaran said despite the government’s effort to trim expenditures, the deficit was expected to rise to 7.8% of gross domestic product (GDP) this year, surpassing policymakers’ projected figure of 7.6%. “I think they will have to slash the operational expenditures like subsidy,” said Manokaran, who feels that the  disbursement of stimulus package funds “can be faster”. For now, the general view is that the country will likely register its first GDP contraction this year since the regional financial crisis in 1998. This is in anticipation that GDP in the third quarter of 2009 will continue to shrink against the backdrop of a still-weak global platform, following two consecutive quarters of negative growth. The government initiated two economic stimulus packages with a combined value of RM67 billion to boost domestic demand against a landscape of falling exports. Of the RM67 billion, the initial portion of RM7 billion is understood to have been almost fully utilised, according to Manokaran. Of the RM15 billion worth of fiscal injections under the subsequent RM60 billion portion, it is estimated that up to RM4 billion have been disbursed so far. To reduce the cost of funds, Bank Negara Malaysia had slashed the overnight policy rate by a combined 150 basis  points since November last year, but has kept it at 2% at its four previous Monetary Policy Committee meetings in April, May, July and August this year. Meanwhile, Maybank Investment Bank Bhd said the Malaysian real estate investment trust (M-REIT) sector was worth noting. In a note to clients, its analyst Ong Chee Ting said fresh incentives for Islamic REITs were possible in line with the country’s intention to become a hub for Islamic capital markets. “After speaking to players in the property sector on their wish list for Budget 2010 and analysing them, we think the REIT sector, especially the Islamic REITs, is a potential beneficiary. “By extending similar tax incentives to corporate investors, KLCC Property Holdings Bhd, Sunway City Bhd and IGB Corporation Bhd may be enticed to list their crown jewels in Malaysia, adding depth, size and liquidity to the M-REIT sector,” Ong said. This article appeared in The Edge Financial Daily, October 23, 2009.