Monday, August 31, 2009

Tanjung Offshore dragged by UK losses

TANJUNG Offshore posted weak results for the second quarter of 2009 (2QFYDec2009), falling short of expectations due to an unexpected loss at its UK-based subsidiary, Citech Energy Recovery Systems UK Ltd.

Citech reported a loss of £1.4 million, or about RM8.02 million, due to cost overruns and late delivery charges incurred in the manufacturing of waste heat recovery units. Tanjung had acquired the company in August 2008.

Due to these steep losses, Tanjung's pre-tax profit for 2Q09 halved year-on-year (y-o-y) to RM4.2 million, and fell some 63% from RM11.4 million in 1Q09. Excluding Citech's losses, profits for the quarter would have been flat and in line with our earlier expectations.


Revenue for the quarter doubled y-o-y to RM171.7 million, while net profit fell 64% y-o-y to RM2.8 million. For the first half of 2009 (1H09), revenue doubled to RM358.5 million, pre-tax profit rose 9.4% to RM15.6 million while net profit declined 3.9% to RM12.7 million.

The significant increase in revenue was due largely to the expansion of its marine vessel fleet — from seven to 11 vessels, with the delivery of MV Tanjung Puteri 1, MV Tanjung Puteri 2, MV Tanjung Gaya and MV Tanjung Gelang. There was also an increase in the supply of engineering equipment contracts. However, they could not offset the impact of Citech's losses.

Over the last quarter, Tanjung's net debt increased from RM398.5 million to RM448.7 million in June 2009 due to funding for its five new vessels, which will be delivered ahead of schedule. While gearing is high at 137%, they are manageable as the bulk of borrowings is long term and used to fund its vessels, which have matching cash flows from long-term charters.

Positive industry outlook
Crude oil prices have doubled from 4Q08's lows to around US$74 (RM261.22) per barrel. We expect crude oil prices to stay relatively high due to fears over inflation and the weakening US dollar, although this may be tempered by US regulatory proposals to limit commodities trading to curb speculation.

With crude oil prices significantly above the "breakeven" level of US$40 per barrel for viable oil and gas exploration activities — and expected to remain high — the outlook for oil and gas-related companies has also improved markedly.

Tanjung focuses on vessels and shallow water exploration-related services where breakeven levels are even lower and there is stronger demand. Its vessel charter rates have also remained stable at US$1.90-US$2 per bhp, despite the volatility in crude oil prices and other shipping rates.

But Citech will remain a drag
Unfortunately for Tanjung, losses at its UK arm Citech dragged earnings down sharply in 2Q09, and will likely continue to do so until 2Q10.

While Tanjung has beefed up vigilance and management efforts at Citech, whose plant is located in Hull, we understand the losses will continue for the next year due to variation orders, late delivery charges and cost overruns on existing orders, as well as other expenses.

We are factoring in losses of RM25 million from Citech for the full year (with approximately RM8.1 million already recorded in 2Q09) and a further RM15 million of losses in 2010.

toffshore2
Malaysian operations faring well
Notwithstanding the unexpected problems and losses at Citech, Tanjung's Malaysian operations continue to fare very well.

Tanjung currently has a fleet of 11 vessels, including MV Tanjung Gelang, which was delivered in May 2009. Its pipeline of five new vessels will be delivered well ahead of schedule.

The company is thus assured of locked-in earnings over the next few years, from the vessels as well as its maintenance order book, two oil rig contracts (SERF and THE 208) which are for a duration of 3.5 to five years, and a Mobile Offshore Production Unit (MOPU).

Out of the 11 existing vessels, 10 vessels are on long-term charters of typically three to four years (except for MV Tanjung Gelang which is for a year), while MV Tanjung Manis (leased to Exxon Mobil) remains on spot charter basis.

Tanjung has another five vessels on order, which will bring its fleet size to 16 by the end of this year. The five new vessels will be delivered well ahead of schedule — of up to a year.

Three of the new vessels — MV Tanjung Biru 1, MV Tanjung Dahan 1 and MV Tanjung Sari — will be delivered by end-October 2009. The remaining two — MV Tanjung Biru 2 and MV Tanjung Dahan 2 — will be delivered by end-November 2009, as compared with the earlier target of early 2011.

Earnings forecasts reduced
Despite the five vessels being commissioned well ahead of schedule, they will not be able to offset completely the losses at Citech. We expect net profit to decline to RM20.5 million in 2009, compared with RM32 million in 2008. For 2010, we expect net profit to improve to RM31 million.

We remain optimistic of Tanjung's longer-term growth prospects. However, continued losses at Citech could affect investor sentiment in the coming quarters until signs of a turnaround there are evident. At RM1.31, its shares are trading at price-to-earnings (P/E) of 15.8 and 10.4 times for 2009-10 and around its latest book value of RM1.34.

Intel ups Q3 revenue expectations on stronger than expected demand for MPUs, chipsets


In yet another sign that the electronics industry is returning to better economic times, Intel Corp this morning upped its Q3 revenue and gross margin expectations on "stronger than expected demand for microprocessors and chipsets."

The MPU kingpin now expects revenue for the September quarter to be $9 billion, plus or minus $200 million, as compared to the previous range of $8.5 billion, plus or minus $400 million. The better outlook bests Wall Street expectations calling for Intel Q3 revenue at a maximum of $8.55 billion.

In July, Intel reported Q2 revenue at $8 billion, then exceeding Wall Street estimates and showing sequential growth of $879 million. The quarter-over-quarter growth marked Intel's strongest Q1-to-Q2 sales increase since 1988.

Intel also said this morning that its Q3 gross margin percentage is expected to be in the upper half of the previous range of 53%, plus or minus two percentage points. All other expectations for Intel's current quarter remain unchanged.

News of the guidance revision set Intel's stock, INTC, up in early morning trading. As of 10:27 am eastern, INTC was trading at $20.34, up 4.47% from its Thursday close of $19.47. INTC's 52-week high is $23.71.

Intel's improved outlook is one of several recent signals that the electronics industry's economic situation is improving. Gartner on Wednesday reported that the semiconductor market preformed better than expected in Q2 when revenue increased 17% sequentially. On that, the market research company upped its 2009 revenue estimate, stating that the positive Q2 sequential revenue growth bodes well for the PC market, in which Intel plays heavily.

PC OEM Dell also issued a positive report on Thursday, recording improved sequential financial results for its fiscal Q2 2010. The company noted that shipments were up and that it expects seasonal demand improvements from the consumer and US federal government businesses in the current quarter. Dell also said it believes a PC refresh cycle in commercial accounts is likely to occur in 2010, with IT spending improving first in the US.

Intel is scheduled to report its Q3 financial results on October 13.

RON95 will be priced at the old RON97 price of RM1.80 per liter

Wha..Malaysia RON95 will be priced RM1.80 lioa....so expensive...hurt my pocket..is a affect of recently rally on crude oil...

Those who think that their fuel tank refills will cost less by RM0.05 per liter because they’ve switched to RON95 as their regular fuel have to wipe their smile off their faces – the government has announced that RON95 will be priced at the old RON97 price of RM1.80 per liter from midnight onwards.

As for RON97, we already know that a price hike is imminent – it will be priced at RM2.05 per liter. RON92 has been phased out. No news about Shell V-Power for now, as it is it’s been removed from a significant amount of stations. They are probably still trying to figure out the sweet spot for pricing and planning the logistics for supply to stations.

This is expected really, considering crude oil per barrel closed US$72.75 a barrel on Friday, which is up 20% from around US$60 in July. There are various factors for this but the most quoted reasons are an improving global economy and a declining US dollar – the lower USD’s values are, the more USD you will have to pay per barrel.

31/8/2009

Roubini Warns Of Double-Dip Slump



Roubini thinks that the global economy will bottom out later this year
Dr Doom Nouriel Roubini, a professor at New York University's Stern School of Business, said it appears the global economy will bottom out in the second half of this year, and that U.S. and western European economies will likely experience "anemic" and "below trend" growth for at least a couple of years.

Sunday, August 30, 2009

Property market on robust revival

Residential property powering sales in Asia

PETALING JAYA: Asia’s property market is making a strong comeback with renewed buying interest for residential property powering sales on expectation that the economic downtrend is bottoming out.

However, the commercial property market, including office and retail space, is still quite soft as easing demand has resulted in rental and occupancy rates sliding.

Bouncing back from the dampened sentiment brought on by the global financial crisis, the regional property market has shown more resilience this time around compared with the 1997 Asian financial crisis which took a heavier toll on the market.

There is increasing evidence that the US recession is bottoming out and this will stabilise the region’s economy and spur its recovery during the second half of the year.




The recovery is expected to provide a favourable basis for both residential sales and leasing markets in Asia, including Kuala Lumpur, Singapore, Hong Kong and Jakarta.

Industry observers are expecting a more robust revival in the region’s property market towards the end of the year, in tandem with a further pick-up in the global economy.

Home prices are forecast to see further upside, driven by huge liquidity in the economy as well as further rebounds in residential rents.

UOB Kay Hian in a recent regional market update said residential sales made a strong comeback in the second quarter of this year on expectations of an economic recovery and relative stability of the job market, despite a steep fall in gross domestic product growth rates, low mortgage rates and a lack of alternative high-yield investments.

“Price levels rebounded by 5% to 10% quarter-on-quarter in the second quarter after a 30% to 50% fall from the end of 2007 peak levels. As the economic recovery gains ground in the coming quarters, we expect sales momentum to pick up and price levels to firm up further on the back of improving liquidity conditions and easy financing options,” the research house added.

UOB Kay Hian said structural transformation had lent a high degree of sustainability to the current recovery.

Across the region, interest rates are drastically low and currencies are fairly stable in comparison to the situation during the Asian financial crisis.

“Household affordability levels are relatively high this time around due to the higher income levels, record low mortgage rates and stronger net household wealth. Corporate balance sheets are also a lot stronger. Furthermore, favourable migratory patterns to Asia due to its attractive long-term growth potential help support a sustainable recovery in the residential sector,” the research house explained in its report.

Market stabilisers

In the office property sector, stabilising economic conditions since June provided support to the prime office market and rentals in Asia for the rest of the year are unlikely to fall as drastically as in the first quarter 2009.

Knight Frank said on the flip side, a continued downward adjustment in occupancy costs could raise the competitiveness of doing business in most Asian cities, and provide more business opportunities for international firms and investors.

Although Kuala Lumpur still lags behind some regional cities like Singapore and Hong Kong, residential property sales have improved.

ECM Libra senior analyst Bernard Ching said the local residential market was more resilient than other regional cities and prices had not been much impacted. This compared with a price drop of about 30% to 40% in Singapore and Hong Kong, he added.

The affordable interest rate environment and lower entry cost for buyers supported property buying and investment activities during the period.

With the average mortgage base lending rate (at 5.5%) minus 2% at an all-time low, Ching said property investment was making a comeback as the preferred hedging tool against inflation.

According to Reapfield Properties Sdn Bhd president David Ong, clearer economic direction in both the global and local arenas had pushed property to regain its position as one of the leading investment instruments among Malaysians.

“Coupled with the more liberalising environment, the property market is in for stronger growth and sales performance going forward,” he noted.

Recent policy liberalisation measures to attract foreign direct investments to Malaysia’s real estate market and relaxation of rules on property purchases by foreigners have also resulted in positive effects on the property sector.

In Singapore, improved market sentiment and pent-up demand stirred private residential launch and sales activities in the first half of this year with a total 5,992 units launched.

Knight Frank said 7,374 residential units were sold during the period, exceeding the total sold in the whole of 2008 by 68%.

“With the take-up significantly exceeding the units launched, it suggested some projects which were launched before this year received strong buying interest and this allowed developers to move outstanding stock,” it noted.

UOB Kay Hian said the two upcoming integrated resorts (IR) in Singapore, which were slated to be ready by the year-end, would boost the city state’s long-term economic fundamentals.

The IR projects are expected to create 50,000 to 60,000 jobs and would directly contribute S$5.4bil to the Singapore economy, or 2.6% of GDP, by 2015.

The liquidity and openness of Singapore’s property market have contributed to attracting high net worth individuals and talented people to its shores.

This is a boon for the property market as it makes a sharp rebound from the meltdown of the past year.

Indicators are pointing to increasing possibilities of a sustained sales activity and price recovery.

These include stabilisation in the economy, which may be able to prolong homebuying sentiments for the second half of 2009.

Various findings by recruitment firms also showed that firms are more likely to hire than before.

Together with the current low interest interest rate environment, these may boost the confidence of buyers for mass-market homes who are concerned with affordability and financing issues.

“As such, homebuying sentiments may persist in the second half, although the number of new homes sold is likely to slightly decrease as the pent-up demand weaken and prices are also increasingly resisting downward corrections,” the research house added.

Meanwhile, Knight Frank said China’s property market was back on its feet following the government’s supportive measures as well as price discounts offered by developers that helped release the pent-up demand for residential properties in key cities.

Amid a lack of new residential supply in core districts, buyers are shifting to the secondary market, which saw strong rebounds in both transaction volumes and sales prices in the first half of 2009.

A more active office market is also expected in most Chinese cities in the coming 12 months with developers launching projects and acquiring land for future office developments amid a recovering market.

Its views are echoed by US research company Real Capital Analytics Inc that reported China’s commercial property transactions totalled US$31.2bil in the first six months this year following a surge in land sales after the government eased credit terms.

Capital inflow from mainland China into Hong Kong has contributed to a rebound in luxury home prices in the Special Administrative Region (SAR).

Compared with the market trough last December, Hong Kong’s housing prices have rebounded 27.2%.

According to CLSA Asia Pacific, capital continued to flow into Hong Kong, bringing the aggregate balance in the banking system to HK$211bil, as at Aug 21.

A number of local property veterans jumped on the bandwagon, engaging in batch acquisitions in The HarbourSide in Kowloon Station.

One acquired 12 units for about HK$100mil and another bought six units for HK$90mil.

In Indonesia, the disbursement of 2.5 trillion rupees in housing subsidies allocated in the 2009 budget and the finalisation of the government’s ruling on foreign ownership are expected to boost overall demand for property.

Thailand’s property prices have also recovered to its previous level due to the high liquidity in the system, low interest rates and property tax incentives.

Although high-end condominiums that cater to foreign buyers succumbed to about 30% price correction, they have since found support from wealthy domestic bargain hunters.

Marc Faber on Bloomberg 28 Aug 2009 about Japanese elections and equities

Marc Faber author publisher and editor of the Gloom, Boom and Doom Report, was on the phone this morning with Bloomberg Television commenting about the Japanese elections on the Japanese stock market , he also analyzes the global outlook for the Asian markets. Asia will become more Asian Centric said Marc Faber
Dr Marc Faber aka Dr Doom is one of the world's best known economists, author publisher and editor of the Gloom Boom and Doom report, and author of Tomorrow's Gold

Friday, August 28, 2009

Najib: Shares worth RM100m to be distributed to the urban poor

KUALA LUMPUR, Aug 28 — Prime Minister Datuk Seri Najib Razak today announced the offer of RM100 million in shares to urban poor.

According to Bernama, the prime minister made the announcement at the breaking of fast with city folks at Al Bukhari Mosque in Jalan Hang Tuah in Kuala Lumpur.

The Amanah Saham shares are targeted for the hardcore urban poor, as a means to alleviate their daily struggles.

Najib asked government bodies, businesses and private benefactors too look into helping the impoverished in the cities.

Protesters threaten bloodshed over Hindu temple

What a group of insensitive and selfish people.Who dont care about other people felling.How can Malaysia prosper with this kind of mentality.Hope that we all can think about it for Malaysia future..

By Shazwan Mustafa Kamal


SHAH ALAM, Aug 28 — A group of Malay-Muslim protesters claiming to be residents of Section 23 have threatened bloodshed unless the state government stopped the construction of a Hindu Temple.



Amid chants of "Allahuakbar," the group also left the severed head of a cow at the entrance of the State Secretariat here as a warning to Selangor Mentri Besar Tan Sri Khalid Ibrahim.

The "residents" said that the construction of a Hindu temple in a 90 per cent Malay- Muslim neighbourhood was insensitive because activities there would disrupt their lives.

They claimed that the "noise" from the temple would disturb their own praying, and that they would not be able to function properly as Muslims.

The group of 50 over protestors marched shortly after Friday prayers from the Shah Alam State mosque to the State Secretariat.

“I challenge YB Khalid, YB Rodziah and Xavier Jeyakumar to go on with the temple construction. I guarantee bloodshed and racial tension will happen if this goes on, and the state will be held responsible,” shouted Ibrahim Haji Sabri amid strong chants of “Allahu Akbar!”

Ibrahim identified himself as the Deputy Chairman of the Resident’s Committee against the building of the temple in S23 here, which is perceived by some as being a Muslim majority area.

He told the press that the state should move the temple to Section 22 as ‘originally planned’, and also labelled Khalid a “traitor to the Malay race and Islam”.

It is understood that the protest is an immediate reaction towards the Selangor MB’s visit to the Hindu temple site yesterday, an act seen by the "residents" as disrespectful to the Muslims of the community.

[A symbol of objection?... The cow's head being paraded by the protestors in their march. - Picture by Choo Choy May]

A symbol of objection?... The cow's head being paraded by the protestors in their march. - Picture by Choo Choy May
Mohd. Zurit Bin Ramli, who claims to be the secretary of the "Coalition of Malaysian NGOs" echoed Ibrahim’s stand on the matter, saying that it was irresponsible on the part of the state government to approve the construction as there was apparently a “90 per cent” majority Muslim population in Section 23.

“With a temple on our residential area, we cannot function properly as Muslims. The temple will disrupt our daily activities like prayers in the Surau. We cannot concentrate with the sounds coming from the temple,” stated Zurit.

When asked whether members of the protest were affiliated with any organisations or movements, Ibrahim claimed that the people present today were members of PAS, PKR as well as Umno who are “united in the name of Islam and the Malay spirit.”

The state government was also accused of lying to the people of Selangor.

The Chairman of the Residents Committee, Mahyuddin Manaf excitedly proclaimed that the committee would uncover “the lies” and find proof of the state’s misconduct.



“Khalid Ibrahim wears a mask of a Muslim, but in truth he is a liberal. PAS stands to lose out as a result. I voted for PAS as well as Khalid in the past elections,” Mahyuddin claimed.

The issue first cropped up when the Selangor government proposed that the Sri Mariamman temple be relocated from Section 19 to Section 23.

MARC FABER ON LATELINE BUSINESS INTERVIEW AUG 26, 2009



Excerpts:
"The economy near term can recover and maybe the recovery will be somewhat lengthier because the first stimulus package in the United States will be followed by a second one and money printing will lead to more money printing.

New Ferrari 458 Italia video




I’m sure there are some of you that wonder why the new Ferrari 458 Italia looks the way it does, especially those that don’t really like it. According to Ferrari, every design feature on the 458 Italia is driven by aerodynamics, and the video after the jump explains each grille’s function as well as how the deformable winglets at the grille area work. Watch the video after the jump.

Thursday, August 27, 2009

Malaysia Airports Holdings Bhd’s 2Q net profit slipped 7.5%

KUALA LUMPUR: Malaysia Airports Holdings Bhd’s (MAHB) net profit for the second quarter (2Q) ended June 30, 2009 slipped 7.5% to RM61.59 million from RM66.59 million a year earlier due to higher tax expenses.

Turnover increased 9% to RM392.86 million from RM360.29 million in the previous corresponding period because of a 12.2% growth in airport operations.

“The growth in airport operations was contributed mainly by an 18% growth in aeronautical revenue arising from the encouraging growth of 2.4% in international and 8.2% in domestic passenger movements,” MAHB said yesterday.

In a separate report, the airport operator said total passenger movements in July, including international and domestic passengers, grew 9.4% year-on-year but cargo movements dropped 6.9%. Its non-airport operations saw a 14.6% drop in revenue, mainly because the agriculture segment declined by 36.3% from lower total crop harvested and fresh fruit bunch (FFB) price.

For the six-month period, the group achieved earnings before interest, tax, depreciation, and amortisation (Ebitda) of RM298 million, representing 49% of its targeted headline key performance indicator (KPI) of RM613 million for the year. It is optimistic that the remaining 51% of the targeted Ebitda will be achieved in the second half of the year.

MAHB also recorded 4.8% return on equity (ROE) during the period. Its full-year targeted headline KPI is 10.2%.

MAHB expects the airport operations segment, which is highly dependent on passenger movements at the airports operated by the group, to continue contributing positively to its FY09 revenue.

The International Air Transport Association (IATA) recently announced a revised forecast for global passenger movement to decline by 8% in 2009.

“Initiatives have been taken by the group to grow its non-aeronautical revenue via a retail optimisation plan and the provision of more commercial space at the airports. The recent financial restructuring of the group is expected to further strengthen the future performance of the group,” MAHB said.

The airport operator said it had not seen a negative impact of the Influenza A(H1N1) pandemic on passenger movements in the first half of 2009. “The impact going forward is still uncertain at this stage,” it said.

Happy 52 Merdeka Day to Malaysia and to you all..:)



Malaysia independent is around the corner (Monday 31/8/2009). All of us is looking forward for that special day. Some of us eager to celebrate it our beloved Malaysia 52 independent day with family and friend .Some of us looking forward for that day because it is a holiday ..Yeah…ho….. No matter how we all celebrate the Malaysia independent day, I sincerely hope that we all will have a nice weekend to celebrate or go holiday with family and friends…Below are some picture of Malaysia accomplishment in 52 year…..
Happy 52 Merdeka Day to all my reader ..enjoy the holiday…






Genting Berhad and Genting Malaysia by Hwang-dbs 27/8/2009

Genting Berhad (RM6.60; Buy; Price Target: RM7.60 (prev
RM6.30); GENT MK)
Look forward to RWS opening
• 2Q09 result was below our and market expectations; all
segments saw weaker performance except power
• Look forward to possibly early-opening of Resorts
World at Sentosa (RWS) in Dec09
• Maintain Buy, but raised sum-of-parts TP to RM7.60
(from RM6.30)

Genting Malaysia (RM2.80; Buy; Price Target: RM3.40;
GENM MK)
2Q09 in line despite poor luck factor
• 2Q09 was within our and market expectations
• Weaker luck factor in VIP segment despite higher
volume of business, visitor arrivals were flat
• Risk of cash call by Star Cruises lower now, valuation
still attractive
• Maintain Buy and sum-of-parts TP of RM3.40

Windows 7 to roll out in Malaysia in October

Windows 7, the new version of Microsoft's operating system, is set to enter the Malaysian market in October 2009.

The software product is also expected be among the key revenue contributors to Microsoft (Malaysia) Sdn Bhd for its financial year ending June 30, 2010.

"It is one of our key products and a key contributor to revenue," chief marketing and operations officer Yasir Yousuff told reporters here today.

For the current financial year, he said that Microsoft was cautiously optimistic about prospects amid the current tough economic environment.
"This is due to our technological innovation commitment," Yasir said, adding that Microsoft allocated the highest investment in research and development (R&D) of US$9.5 billion (RM33 billion) globally in efforts to help customers realise greater cost savings and operational efficiencies.

"Innovation is more than just invention. It is about the enhancement of invention to save customers money while enjoying greater productivity and efficiencies," he said.

According to Yasir, technological innovation has always been a competitive advantage for Microsoft, helping the company to grow despite the current economic uncertainties.

In conjunction with the global launch of Windows 7, Microsoft will also launch the Windows Server 2008 R2 network operating system at the same time.

The two new products are targeted at individual users, small and medium businesses, and enterprises, and designed to enhance productivity and security as well as reduce costs.

Currently, the products are in the release-to-manufacture mode with Western Digital and AirAsia among the early adopters in this country.

Research firm International Data Corporation (IDC) has projected over 80 per cent of information technology (IT) professionals to move to Windows 7 within 30 months.

IDC also expects 50 per cent of enterprises to upgrade to Windows 7 upon availability, Yasir said.

He said with about 95 per cent market share of the local desktop operating system market, Microsoft expects the same momentum in Malaysia.

Marc Faber Interview with the Economic Times 20 Aug 2009



“We had a very powerful rally starting at the beginning of the year and after March many emerging markets have gone up over 100 per cent or so. So, a correction is nothing unusual at this stage of the cycle. Although the global economy has stabilized, we are not out yet of the woods and valuations have become somewhat stretched. Stocks didn’t go up necessarily because of improving fundamentals but because of liquidity injection and large stimulus package from all over the world,” said Dr Marc Faber speaking author editor and publisher of the Gloom Doom and Boom Report and investment guru in an exclusive interview with the economic Times ET Now speaking about the the global markets

Sime Darby’s pre-tax profit down 41pc to RM3.071b

KUALA LUMPUR, Aug 27 – Sime Darby Bhd’s pre-tax profit for the fourth quarter ended June 30, 2009 fell to RM1.108 billion from RM1.454 billion in the corresponding period of 2008.
Its revenue decreased to RM7.535 billion from RM9.121 billion previously. For the financial year ended June 30, 2009, Sime Darby said its pre-tax profit dropped 41 per cent to RM3.071 billion from RM5.206 billion as revenue fell nine per cent to RM31.014 billion from RM34.045 billion.
In a statement here, Sime Darby said its net profit of RM2.3 billion after tax and minority interest, exceeded by 20 per cent the group’s Key Performance Indicator (KPI) of RM1.9 billion.
The group recorded a Return on Average Shareholders’ Funds of 10.6 per cent versus its KPI of 8.8 per cent.
The Plantation Division, it registered a 56 per cent decline in operating profit to RM1.7 billion compared with the previous year.
This was principally driven by lower average CPO prices in the year as well as lower production as a result of biological tree stress and unfavourable weather conditions, it said.
Production however significantly improved after bottoming out during the third financial quarter period as yields in Malaysia and Indonesia recovered, it said.
The Industrial Division continued its sterling performance, reporting a 24 per cent increase in operating profit to RM862 million, driven mainly by its South East Asian and Australasian operations.
Despite the uncertain outlook for the property sector in the beginning of the year, the Property Division registered a four per cent growth year-on-year in operating profit to RM462 million.
Even in the face of a difficult environment for consumer related businesses, the Motors Division remained resilient and posted an increase of 13 per cent in operating profit at RM179 million for the year.
Commenting on the overall results, Sime Darby President and Group Chief Executive Datuk Seri Ahmad Zubir Murshid said he was pleased with the performance especially since the group was emerging from a very challenging business environment.
The group has proposed a final single tier dividend of 15.3 sen per share for the financial year ended June 30, 2009.
Including the interim dividend paid of five sen per share less Malaysian income tax at 25 per cent, total gross dividend for the year will be 20.3 sen per share. – Bernama

27/8/2009

Analysts speak on the future of the USD, Yuan, & British Pound



The dollar will continue to weaken this year as the global economy recovers from recession and investors seek currencies linked to growth, strategists said in a panel on Bloomberg Radio.

Multi-Purpose 2Q net profit rises 150%

KUALA LUMPUR: MULTI-PURPOSE HOLDINGS BHD [] (MPHB) saw its net profit for the second quarter (2Q) ended June 30, 2009 grow by 150.4% year-on-year to RM127.4 million, thanks to better results from all its divisions and income generated from investing opportunities.

In results announced to Bursa Malaysia yesterday, the company’s revenue rose by 6.6% to RM804 million during the quarter compared with RM754 million a year earlier.

According to the notes accompanying the announcement, MPHB’s gaming division saw higher profits for the three months ended June 30, with pretax profit increasing to RM101.29 million from RM42.68 million in the previous year’s corresponding period.

“The stockbrocking division achieved substantial brokerage income coupled with the writeback of provision for diminution in value of investments which have resulted in profit before tax of RM10.21 million, which is RM8.53 million higher than that in the previous corresponding quarter,” stated MPHB.

The company’s finance division saw year-on-year increase of 370% in terms of pretax profit from RM2.3 million to RM10.8 million, which was due to higher premium earned and lower claims incurred, according to MPHB.

MPHB also declared the distribution of one treasury share for every 10 existing ordinary shares. This will represent the first time that the company has distributed a dividend in specie instead of cash. For the financial year ended Dec 31, 2008, MPHB had paid out a total gross dividend of 10 sen per share.

On a half-year basis, MPHB saw its net profit increased by 74.3% to RM172.4 million from RM98.9 million. Revenue had likewise increased from RM98.9 million to RM172.4 million.

It should be noted that this is the first half-year earnings result since MPHB completed the privatisation of Magnum Corp Bhd in 2008 via a selective capital repayment scheme.

According to MPHB, the privatisation of Magnum has allowed MPHB to emerge as a pure gaming company and strengthen its balance sheet by repaying external debts. The company had also embarked on a share buyback as part of the exercise.

MPHB’s stock jumped following the results announcement, closing 6.2% up yesterday at RM2.07, its highest close in more than a year.

Axiata net profit up 44%




KUALA LUMPUR: Axiata Group Q209 net profit rose 44% to RM526.8mil from a year ago on higher contribution from units Celcom and Axiata (Bangladesh) Ltd.

Revenue for the period stood at RM3.16bil compared with RM2.9bil while earnings per share was 6 sen per share against 7 sen per share earlier.

The current quarter profit was positively impacted by pre-tax foreign exchange gains of RM532.1mil as opposed to RM11.5mil pre-tax foreign exchange losses reported in Q2’08.

For the first half year, Axiata made a net profit of RM590.7mil compared with RM769.3mil a year ago

27/8/2009

Wednesday, August 26, 2009

Datuk Seri Dr Chua Soi Lek sacked from MCA


KUALA LUMPUR: The MCA has sacked its deputy president Datuk Seri Dr Chua Soi Lek with immediate effect.




This followed the party’s presidential council decision last night to accept its disciplinary board’s recommendation that Dr Chua be sacked from the party.


Chua: Told the media that he had expected the worst.
MCA president Datuk Seri Ong Tee Keat said the council, which held the meeting for more than five hours, had made the decision with a heavy heart.

The party had given due consideration to the damage inflicted upon it by Dr Chua’s DVD sex scandal.

“This decision has been made in the best interest of the party,” Ong said, adding that the members of the council stood as one. “We shall collectively be responsible for this decision.”

“Out of respect to Prime Minister Datuk Seri Najib Tun Razak as chairman of the Barisan Nasional, the president will explain the decision of the council to him,” he said.

Under the party constitution, Ong said Dr Chua was allowed to appeal to the party’s central committee within 14 days from the date he received notice of the council’s decision.

Ong did not take any question from the media.

Of the 22 member comprising the presidential council, vice-presidents Datuk Seri Dr Ng Yen Yen and Tan Kok Hong as well as treasurer-general Tan Sri Tee Hock Seng were absent.

Dr Chua, who attended the council meeting, left before it ended.

He told a press conference that he had received a copy of the disciplinary board’s recommendation.

“As a loyal party man, I have to abide by the decision of the disciplinary board and the presidential council,” he said.

Asked if he would appeal against the decision, Dr Chua said he had not thought about it.

Dr Chua said for those who loved MCA, the work had just begun.

“Today is not about Chua Soi Lek. Neither is it about Ong Tee Keat,” he said.

He also questioned the MCA’s direction and purpose.

Before Dr Chua entered the meeting room at the MCA headquarters here at 7.15pm, he said he had expected the worst.

The disciplinary board investigations came about following a complaint by Simpang Renggam MCA division chief Eng Cheng Guan, who found a copy of Chua’s DVD in his post box.

Eng later withdrew the complaint but the board went ahead with the inquiry because the presidential council had adopted the complaint.

The DVD first made an appearance in late 2007 which resulted in Dr Chua resigning as MCA vice-president and Labis MP on Jan 1 last year.

He was elected deputy president at the party AGM last October.

The disciplinary board members were Ng Cheng Kiat, Datuk Jimmy Low Boon Hong, Datuk Ng Soon Por, Lai Kuan Fook and Ng Chih Siang.

Genting Bhd posted a 26.3% lower net profit

PETALING JAYA: Genting Bhd posted a 26.3% lower net profit of RM214.50mil for the second quarter ended June 30 against RM291.04mil for the previous corresponding period.

The company told Bursa Malaysia the lower profit was due to the share of loss in jointly-controlled entities and associates of RM30.6mil.

This arose mainly from the share of loss of jointly-controlled entity Genting Singapore Plc (GENS) of RM49.6mil as a result of the reduced value of a property owned by GENS in London, it said.

Its lower profit was also due to impairment loss incurred on the investment in Star Cruises Ltd (amounting to RM30.4mil) and the lower one-off gain of RM1.4mil compared with RM31.4mil net gain arising from the dilution of the company’s shareholding in GENS and Genting Malaysia Bhd (formerly Resorts World Bhd).

Its revenue fell 2.6% to RM2.10bil from RM2.16bil a year ago. Earnings per share (EPS) was at 5.8 sen versus 7.86 sen previously. It has declared a 3 sen dividend.

Genting said its performance in the second half may be impacted by the projected turnaround in the global economy, preparation for the opening of its integrated resort in Singapore and performance of its Meizhou Wan power plant that had been affected by lower-than-expected tariff increase.

Except for its power division, all its divisions – leisure and hospitality; plantation; property; and oil and gas – recorded lower revenue and profit, it said.

The improved profit in the power division was mainly because of higher revenue and lower operating costs incurred by the Meizhou Wan plant, primarily due to lower coal prices.

In the first six months, Genting reported a net profit of RM427.6mil on revenue of RM4.17bil, compared with RM730.5mil and RM4.32bil respectively in the previous corresponding period.

Genting Malaysia, in a separate statement, said its net profit fell 14% to RM330.5mil for the second quarter ended June 30 compared with RM384.3mil in the previous corresponding period as a result of weaker luck factor in the premium players business and lower interest income.

Its revenue dropped 3% to RM1.2bil from RM1.24bil while EPS stood at 5.78 sen against 6.69 sen previously. Genting Malaysia declared an interim dividend of 3 sen.

In the first six months, it posted a net profit of RM605.9mil, down 11% from RM681.6mil in the same period last year. Revenue was higher at RM2.38bil compared with RM2.33bil previously.

“With the forecast turnaround in the global economic outlook, the group is cautiously optimistic of its prospects and expects performance for the rest of the year to be satisfactory,” it said.

27/8/2009

PPB Group backs Wilmar’s China listing plan





KUALA LUMPUR: PPB Group Bhd supports its associate company Wilmar International Ltd’s proposed initial public offering (IPO) in China, said managing director Tan Gee Sooi (pic).

PPB, however, declined comment on whether it would take up shares offered by Wilmar for the Chinese IPO since the proposal was still under evaluation.

“We don’t even know the full structure of the IPO as it has not been approved,” Tan said yesterday after a press and analysts briefing on PPB’s financial results for the six months ended June 30.

In May, Singapore Exchange-listed Wilmar said it was planning to raise up to US$4bil by listing 20% to 30% of its China business on the Shanghai Stock Exchange or Hong Kong Stock Exchange.

Wilmar’s China business accounted for almost half of its US$14.3bil revenue and close to 40% of its net profit in 2008.

Last month, Wilmar confirmed that it had shortlisted BOC International, Goldman Sachs and Morgan Stanley to evaluate the feasibility of listing in Hong Kong.

On whether PPB intended to further increase its existing stakes in Wilmar, Tan said: “We are definitely interested but Wilmar shares, currently trading over S$6, is too high for us.”

PPB currently has 18.4% stake in Wilmar, which is the world’s largest palm oil trader, controlling 54% of global palm oil trade.

On another note, Tan said PPB Group spent about RM77mil of its total capital expenditure (capex) of RM293mil to set up new flour mills and feed mill warehouses, new cinemas as well as upgrade its sugar refineries in the first half of the year.

“Some RM27.5mil was spent on setting up new flour mills in Kota Kinabalu, Prai and Indonesia and also, new warehouses for our flour mills and feed mills, while RM28.7mil went to upgrading our storage, packaging and melting capacity in the sugar refineries.”

Tan said the remaining capex would be carried forward to 2010 for other projects development spending, mostly for the expansion of new flour mills regionally.

He said PPB’s joint-venture wheat flour mill at Cilegon, in the western part of Java Island which include silos, warehouses and other infrastructure facilities, had been commissioned. “We plan to push for the flour sale in Indonesia before the end of this month,” he added.

Earlier, on PPB’s latest results, Tan said the economic slowdown would continue to affect its performance in 2009 due to lower demand and margins for its goods and services.

He said fluctuations in prices of raw materials and ocean freight rates would persist as challenging factors affecting the group’s profitability.

“However, we are confident our performance for 2009 will remain satisfactory.”

PPB’s net profit for the quarter ended June 30 rose 19.3% to RM397.5mil from a year ago.

This was achieved on higher contributions from Wilmar and improved performance from the sugar refining, trading and cane plantation division.

Its revenue of RM833.95mil was marginally lower against the same quarter last year.

Net profit and revenue for the first half of 2009 were lower at RM669.4bil and RM1.6bil respectively, due to decreased contributions from the flour and feed milling, chemicals trading and manufacturing as well as property divisions.

Wilmar accounted for 79% of PPB’s first half 2009 net profit. An interim single-tier dividend of 5 sen per share has been recommended.

RHB positively cautious on auto industry



Sentiment in the automotive industry will recover because of better business conditions supported by the government’s stimulus packages and higher economic activities.

AmResearch downgrades Tanjung Offshore to Sell

AmResearch downgrades Tanjung Offshore to sell..I think the Tanjung Offshore warrant will be under pressure...then that will be the time we can accumulate when it pull back..stay tune..guy...

KUALA LUMPUR: AmResearch is downgrading its rating on Tanjung Offshore (Tanjung) to a Sell with a lower fair value of RM1.11 per share based on a price-to-earnings (PE) multiple of 10 times pegged to its FY10F earnings.

Tanjung's earnings for the second quarter ended June 30 were only RM3 million (down 73% on-quarter), bringing 1HFY09 earnings to a disappointing RM13 million.

In 1HFY09, earnings fell 4% despite posting excellent revenue growth (2.0 times on-year) to RM359 million, mainly driven by ongoing charter of 11 vessels against seven vessels last year and the supply of various engineering equipment.

Weak earnings for the quarter is attributable to 1.4 million pound sterling losses incurred by its British-based subsidiary Citech Ltd - due to costs overrun and late delivery charges. Tanjung does not intend to divest this business but is looking to turn the business around by middle of next year.

Tanjung bought 75% of Citech in August 2008 for RM11 million (since increased to 94%). Citech provides “waste heat recovery units” - used in offshore platforms to reclaim
heat from the exhaust of gas turbines, which provide the power required to operate the platform.

Its vessel chartering division will remain as the group's major contributor to earnings with an estimated contribution of 55%-60%.

"We are cutting our earnings estimates by 33%-49% for FY09F to FY11F to RM21 million to RM36 million, which translates to EPS of 8 sen to 14 sen from 18 sen to 23 sen. We have assumed lower EBITDA margins for FY09F-FY11F to 8% to 11% from 14% to 16%," it said.

AmResearch said the management was guiding for lower earnings of RM20 million to RM25 million for FY09F and RM35 million for FY10F given Citech’s operational issues.

Closing: China leads regional markets lower

Market breadth mixed, eye on IOI Corp

KUALA LUMPUR: The market breadth was mixed at midday on Aug 26 with some buying interest seen in small capitalised companies, but the 30-stock FBM KLCI fell below 1,170, weighed by losses in Maybank.

IOI Corp, Mudajaya and CI Holdings released their results during the midday break. IOI Corp's earnings for the fourth quarter ended June 30, 2009 (4Q09) fell 18.4% to RM487.07 million compared with RM597.28 milion a year ago after it was affected by an impairment loss of RM242.8 million recognised on a development property in Singapore.

Mudayaja reported net profit doubled to RM26.48 million in the second quarter ended June 30 from RM13.59 million.

At 12.30pm, the FBM KLCI fell 2.1 points to 1,168.99. Turnover was 306.51 million shares valued at RM386.08 million. There were 258 gainers, 259 gainers or 192 unchanged.
Light crude oil fell five cents to US$71.99 while crude palm oil futures were unchanged at RM2,355.

Japan's Nikkei 225 rose 1.44% to 10,648.81; Hong Kong's Hang Seng Index added 0.36% to 20,350.25, Shanghai's Composite Index 1.52% higher at 2,960.03 while Singapore's Straits Times Index added 0.17% to 2,623.15.

At Bursa Malaysia, Maybank fell seven sen to RM6.45 but off its earlier lows following the fourth quarter losses due to the one-off impairment losses for Bank Internasional Indonesia.

Huat Lai was the top loser, down 24 sen to 51 sen with 41,300 shares done while Panasonic Malaysia shed 14 sen to RM12 while BLD PLANTATION []s, Plenitude and Petra lost 11 sen each to RM3.45, RM2.55 and RM2.57.

Yun Kong-WA was the most active with 15.1 million shares done.

Dutch Lady was the top gainer, adding 30 sen to RM11.80 with 2,700 shares done. EON Cap added 12 sen to RM5.

MPHB saw active trade, rising 13 sen to RM2.08 while PLUS edged up one sen to RM3.38. Genting, which is due to release its results this evening, added five sen to RM6.85.

26/8/2009

Mudajaya 2Q net profit jumps 95% to RM26.5m

KUALA LUMPUR: MUDAJAYA GROUP BHD [] posted a strong 2Q earnings of RM26.48 million, a surge of 95% from RM13.59 million a year ago, as earnings from its CONSTRUCTION [] sector picked up.

It said on Aug 26 revenue rose to RM182.73 million from RM101.24 million. Earnings per share were 7.11 sen versus 3.64 sen.

For the first half, net profit was RM40.52 million compared with RM26.66 million. Revenue was RM308.1 million compared with RM181.68 million.

It said the group 1H profit before taxation rose 47% to RM56.5 million from RM38.4 million respectively a year ago. The growth in revenue and profit before taxation were mainly attributable to the increased level of activities.

Nokia following Booklet 3G with ARM-based smartbook in mid-2010?



Those semiconductor semi-gossipers at DigiTimes want you to know that Nokia's not stopping with the Booklet 3G and in fact has an ARM-based smartbook set for mass consumption in the middle of 2010. According to its sources, Espoo's in the process of settling with ODMs now, and the speculation is that it'll go to either Compal or Foxconn (a.k.a. Hon Hai Precision Industry). If all of this sounds familiar, that's because it is: we've heard multiple reports this year that suggested a smartbook / MID with either a multicore ARM Cortex A9 Sparrow chip or Qualcomm's Snapdragon processor. We're not discounting it, especially considering that netbook bit panned out, but mid-2010 is quite a ways off -- no telling when we'll be hearing anything else on the matter.

Tuesday, August 25, 2009

Kenanga sees strong car sales momentum

Kenanga Investment Bank has revised upwards its total industry volume (TIV) forecast for the automative industry this year by eight per cent to 500,000 units.

It attributed the improved projection to a strong sales momentum and anticipation of better sales with the line up of new models in the second half of the year and improved consumers' sentiment.

The new forecast is similar to what the Malaysian Automotive Association (MAA) has estimated for the year.

Difficulties in obtaining car loans could however pose a risk, Kenanga Investment said in its research paper released here today.
"We also expect the strong sales momentum to continue up to Hari Raya before coming off towards the year end," it added.

The TIV currently stands at about 60.6 per cent of the projected figure by MAA and Kenanga Investment.

Kenanga Investment said a positive re-rating of the automotive sector should happen next year with the faster and stronger-than-expected recovery of the economy and greater stability in the employment market.

"We expect automotive companies to report commendable earnings in the second half as we anticipate sustained sales momentum.

Less volatile currency movements and a stronger ringgit against the dollar and yen is also expected to lend some comfort to margins," said the bank.

On the revised National Automotive Policy (NAP), which is expected to be unveiled next month, the bank said it would most likely focus on consolidating sales network, development of the automotive parts and components and as well as on the approved permit issue. -- Bernama

Monday, August 24, 2009

Apple Inc.'s latest operating system software, Snow Leopard





CUPERTINO, California: Apple Inc.'s latest operating system software, Snow Leopard, will go on sale this Friday.

The Mac OS X version 10.6 software will debut at Apple's retail stores and authorized resellers nationwide.

Apple's online store is now taking pre-orders.

Snow Leopard's release comes days before its promised September launch.

It precedes by two months the launch of Microsoft Corp.'s next operating system, Windows 7.

Among Snow Leopard's improvements is built-in support for Microsoft's Exchange Server software, so Apple programs for e-mail, calendars and contacts could become more useful in corporate settings.

Apple said Snow Leopard is half the size of the previous version, freeing up to 7 gigabytes of storage space when installed.

It requires a minimum of 1 gigabyte of RAM and runs on Macs using an Intel processor.

Users of Mac OS X Leopard, or version 10.5, can upgrade to the latest version for $29 for single users and $49 for a family pack of five users.

For Apple owners using the Tiger operating system, or version 10.4, on an Intel-based Mac, switching to Snow Leopard costs $169 for single users and $229 for a family pack.

Consumers who buy a qualifying Mac from June 8 to Dec. 26 can purchase the Snow Leopard upgrade for $9.95.

Users must request an upgrade within 90 days of purchase or Dec. 26, whichever comes first. - AP

World stocks power to 10-month high

LONDON, Aug 24 — World stocks powered to a 10-month high today while the yen fell after firmer US and euro zone data and reassuring comments from the world’s key central bankers spurred buying of risky assets.

A survey three days ago showed sales of previously owned US homes jumped 7.2 per cent in July to mark the fastest pace in nearly two years. Monday’s data showing a bigger-than-expected rebound in euro zone industrial new orders also aided sentiment.

Bernanke and other central bankers said at the annual gathering in Jackson Hole on Friday the worst global recession in 70 years was nearing a close, although they warned it would be a long, slow climb back to normal growth.

They also said it was too soon to withdraw trillions of dollars in government and central bank support, which reassured investors that the cost of borrowing is not rising just yet.

“There was a concern about China, but that dissipated and US data, especially housing, was upbeat, and Bernanke was encouraging. Risk aversion is diminishing,” said Philip Lawlor, strategist at Nomura. MSCI world equity index rose 0.7 per cent to reach levels not seen since October. The FTSEurofirst 300 index rose half a per cent.

US stock futures were up 0.2 per cent, pointing to a firmer open on Wall Street later.

European credit default swap indexes fell sharply. The Markit iTraxx Crossover index, made up of 44 mostly “junk”-related credits, fell 21.75 points to 581.25 bps.

Tokyo stocks jumped 3.4 per cent, their biggest one-day gain in 3-1/2 months. However, trading was thin, with turnover volume on the Tokyo stock exchange’s first section at its lowest level since July 28.

Investors were also hesitant about taking heavy positions before the Aug. 30 general election where many expect the opposition Democratic Party to win.

Emerging stocks rose 1.75 per cent. Shanghai stocks rose 1.1 per cent.

The Shanghai index posted its third weekly loss last week on concerns that the country’s banking regulator may tighten capital rules. Jitters that the pace of growth might be slowing or authorities might tighten the relatively loose monetary policy also weighed on sentiment.

“China has been at the forefront of global recovery hopes... We believe China will likely continue to help global demand by running a much smaller trade deficit (in real terms) next year,” Goldman Sachs said in a note to clients.

The bank estimates that China alone is expected to contribute 1.7 percentage point of the 4 per cent global real GDP growth that we forecast currently in 2010.

“So any slight weakness in the China story will have important ramifications for the rest of the world and understandably raise concerns, as we have seen in recent weeks,” it said.

US crude oil rose 0.1 per cent to US$73.98 (RM260) a barrel.

The September bund futures fell 10 ticks.

The dollar rose 0.15 per cent against a basket of major currencies. Against the yen it rose 0.4 per cent to 94.77. — Reuters

Oil rises to near 10-month high

PERTH: Oil rose above US$74 a barrel today, trading near a 10-month high, amid increased optimism energy demand will rebound as the US economy heads for a recovery, while a storm off eastern Canada also lent support.

Oil rose US$6.38, or nearly 10 per cent, last week, thanks to a combination of positive economic data, a Wall Street rally and a weakened US dollar.

US crude for October delivery rose 38 cents to US$74.47 a barrel by 8.38 am Malaysian time. The contract settled up 98 cents at US$73.89 per barrel on Friday, the highest settlement since October 20.

London Brent crude gained 38 cents to US$74.57 a barrel.





“Oil is still drawing support from the positive data on Friday,” said David Moore, an analyst at the Commonwealth Bank of Australia.

“There aren’t too many economic indicators due today that will push oil prices much higher, but any damage to oil and gas facilities off Canada would add upside pressure.”

Oil’s Friday gains followed home sales data for July showing recovery in the US housing market, while Federal Reserve Chairman Ben Bernanke also said the global economy appeared to be recovering.

Asian stocks are set to rise on Monday, riding on the tails of the Wall Street bounce that sent the S&P 500 index to a 10-month intraday high, amid building optimism about an economic recovery.

On the weather front, Hurricane Bill brought rain and heavy winds to Nova Scotia in eastern Canada on Sunday, but the Category 1 storm caused little serious damage as it moved northeast to the region’s offshore oil and gas facilities.

However, threats to energy facilities have not yet passed.
Bill, the first hurricane of the 2009 season, is now heading towards Atlantic Canada — an energy producing region that exports oil, natural gas and refined products to the U.S.
Northeast and elsewhere.

Separately, analysts say renewed tensions in Nigeria could also add further support to oil, should investors’ continue their focus on a more bullish outlook.

Nigeria’s main rebel group said on Saturday it would resume attacks against Africa’s biggest energy industry next month, overshadowing the surrender of hundreds of arms by rebels in a federal amnesty programme.

Investors will watch this week’s new home sales and consumer data to see if the economy’s recovery is on track and whether U.S. stocks — now at their 2009 highs — will extend their rally.

Crude oil speculators on the New York Mercantile Exchange trimmed their net long positions in the week to August 18, according to data from the Commodity Futures Trading Commission released on Friday. - Reuters

Sunday, August 23, 2009

Funds flow drying up for Asia

KUALA LUMPUR: Asia ex-Japan saw a weekly net outflow of US$811 million (RM2.85 billion) in the week ended Aug 19, the largest redemption since March 2009, while global emerging markets saw an outflow of US$946 million, the largest redemption since December 2008, said Macquarie Research.

The research house said the data suggested risk appetite was moderating.

Citing EPFR Global, which provides global and emerging market fund data, Macquarie said China funds saw US$603 million of outflows that week, the largest redemption since January 2008.

"Concerns about policy-tightening were no doubt one factor behind the outflow," Macquarie said, adding that according to the Taiwan stock exchange, foreign investors withdrew US$386 million that week.

"Within Greater China, Hong Kong funds bucked the trend, seeing a modest net inflow of US$18.5 million," it said.

Macquarie said Singapore, Malaysia, Indonesia and India were all seeing much weaker inflows, while Thailand and the Philippines were experiencing outflows.

It said after 24 sessions of inflows from foreign investors, the Korean market saw outflows in the week ended Aug 19.

"Valuations are clearly excessive in Korea (in our view) and growing concern about the economic cycle is clearly weighing on foreign investor sentiment towards this highly cyclical market," Macquarie said.

Commenting on the outlook, it said weaker economic data recently had prompted market concerns about the strength of the cycle.

It said risk appetite was weakening as a result, something seen not only in fund outflows from emerging market equity markets, but also in debt markets where risk spreads had risen over the last couple of weeks.

"Asia's strong fundamentals — decent growth, low debt levels, healthy financial system — mean it is likely to remain relatively attractive to global investors for some time.

"However, it is important to bear in mind that liquidity in Asia is, to a certain extent, a function of the economic cycle," it said.

"If perceptions of the strength of the cycle now moderate (as we expected), liquidity will also become less of a tailwind for Asian equities than it was over 1H09."

Sinopec Q2 net beats forecasts

HONG KONG, Aug 23 — Sinopec Corp, the world's second-largest oil refiner after Exxon Mobil, posted record quarterly profits that widely exceeded expectations, buoyed by recent fuel price hikes and falling crude oil prices.

"Since 2009, (the) domestic oil product pricing mechanism reform has turned refining business from loss to profit," the company said in a statement.

"It is anticipated that the result of (the) first three quarters of 2009 will be over 50 per cent higher compared with the same period of last year," it said.

Two fuel price hikes in June, which were part of China's fuel pricing reforms, boosted second-quarter profits.

The results for Sinopec contrast sharply with western oil firms, including Exxon Mobil Corp and Royal Dutch Shell Plc, which have reported weaker second-quarter profits due to depressed refining margins and falling oil prices.

Sinopec's net profit totalled 22.0 billion yuan (RM11.3 billion) for April-June, based on a Reuters' calculation.

Five analysts surveyed by Reuters had expected profit of 16.1 billion yuan. The numbers compare to a net profit of 1.62 billion yuan in April-June last year.

The refiner — which engineered China's largest overseas buyout deal with its US$7.24 billion (RM25.3 billion) bid for Swiss oil explorer Addax Petroleum Corp in June — earned 33.25 billion yuan for the first half compared with 7.68 billion yuan the same period last year.

Sinopec said in a separate statement that it would acquire six research institutes from a subsidiary of China Petrochemical Corporation for 3.95 billion yuan to enhance its technical capabilities.

Sinopec aims to process 97.1 million tonnes of crude in the second half of this year. The company, China's second-largest oil producer after PetroChina, plans to produce 21.4 million tonnes of crude oil and 4.96 billion cubic metres of natural gas in the second half.

CNOOC and PetroChina report earnings on Wednesday and Friday respectively. — Reuters

Proton post profit before tax RM64 million for Q1 of the current financial year



Proton Holdings Bhd's (5304)top executives yesterday suggested that it will reverse the big loss recorded last year after being profitable in the first quarter to June 30 2009.

They also said the next Proton model after the Exora launched in April will only be rolled out in the second half of 2010. Until then, the national carmaker will only unveil variants or upgrades of its existing models.

Its top executives declined to reveal the new model but it is an open secret that the car is the replacement of the Waja. That 1.8-litre new car is a joint development with Japan's Mitsubishi Motors Corp.

Chief executive officer Datuk Syed Zainal Abidin Syed Mohamed Tahir said 2010 onwards will see more new Proton cars rolling out from its manufacturing plants.

This will help the company to enhance its revenue, Syed Zainal said after Proton's annual general meeting in Shah Alam, Selangor, yesterday.
Its chairman Datuk Mohd Nadzmi Mohd Salleh said Proton showed signs of improvement this year following a profitable first quarter.

It made a pre-tax profit of RM64.4 million during the period on a RM1.85 billion revenue. Sales volume improved to 39,257 units from 34,490 units in the preceding quarter.

Proton saw red in 2008 with a pre-tax loss of RM319.2 million on revenue of RM6.5 billion.

Nadzmi said the strong showing so far was pushed by the Exora as well as the Saga and Persona models.

The Exora has so far received bookings of over 18,000 units, while the Saga - launched in January 2008 - has now become the fastest-selling Proton model in history with bookings in excess of 136,000 units to date.

Syed Zainal said Proton will become more export-centric. Export volume accounts for about 15 per cent of its total sales.

Its local-assembly forays in China, Iran and India, while focusing on CBUs (completely built-up units) in Asean countries, will push its export volume.

Proton sold 18,428 cars abroad last year and has targeted 20,925 units for 2009.

Friday, August 21, 2009

Marc Faber My guess is that Chinese economy is growing between 0% and 3.5% despite the stimulus




Here is the Sifu Marc Faber view on Chinese and Japan economy..


The big question is when is the Chinese economy also implode " may be it will happen in 2010 , in China there is an investment bubble ...the total collapse is ahead of us and probably a world scale war...

Uncle Sam New Private Blog is up...




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Thursday, August 20, 2009

CRUDE palm oil (CPO) prices are expected to rise by a quarter and hit RM3,000 a tonne in the next six months, due to global demand outpacing dwindling

CRUDE palm oil (CPO) prices are expected to rise by a quarter and hit RM3,000 a tonne in the next six months, due to global demand outpacing dwindling supply and stockpile.

Other factors include a poor Argentinian soyabean harvest, limited edible oils in India and a lower national CPO production.

CPO is trading at around RM2,400 now.

Malaysian Palm Oil Council chief executive officer Tan Sri Dr Yusof Basiron said all signs point towards a firmer CPO price in the next six months. This includes a depleting national stockpile of 1.3 million tonnes from 2 million tonnes last year and the El Nino.

CRUDE palm oil (CPO) prices are expected to rise by a quarter and hit RM3,000 a tonne in the next six months, due to global demand outpacing dwindling supply and stockpile.

Other factors include a poor Argentinian soyabean harvest, limited edible oils in India and a lower national CPO production.

CPO is trading at around RM2,400 now.

Malaysian Palm Oil Council chief executive officer Tan Sri Dr Yusof Basiron said all signs point towards a firmer CPO price in the next six months. This includes a depleting national stockpile of 1.3 million tonnes from 2 million tonnes last year and the El Nino.

Naza duo offer to buy out K. Jetson for RM37m

Group CEO and group managing director of Naza TTDI are offering to buy Kumpulan Jetson shares at 70 sen apiece and the warrants at 6.5 sen each

Two top executives of the Naza group, the country's biggest privately-held carmaker, have made an offer to take full control of Kumpulan Jetson Bhd in a deal valued at about RM37 million.

The duo are SM Nasarudin SM Nasimuddin, group chief executive officer, and SM Faliq SM Nasimuddin, group managing director of Naza TTDI Sdn Bhd.

They are offering to buy Kumpulan Jetson shares at 70 sen apiece and the warrants at 6.5 sen each.

Kumpulan Jetson shares, which were traded for 43 seconds before being suspended yesterday, closed 2 sen higher at 73.5 sen. The warrants closed untraded at 12 sen

The 70 sen a share offer is a steep discount to Kumpulan Jetson's net tangible asset of RM1.54 a share as at June 30 this year.

The two brothers made the offer via Superior Pavillion Sdn Bhd, which emerged on Wednesday as a substantial shareholder in Kumpulan Jetson, owning some 33.15 per cent of the company.

The offer to take full control of Kumpulan Jetson is being done with the help of Odyssey Wealth Sdn Bhd, which is controlled by Soh Kim Hock.

The brothers later issued a statement to distance the Naza group from the deal.

"We wish to clarify that the said transaction is being undertaken in a purely personal capacity," Nasarudin and Faliq said.

The offer for Kumpulan Jetson comes after failed attempts over the past five years to take over DRB-HICOM Bhd and Proton Holdings Bhd.

Last year, the group also postponed a plan to sell shares in Naza TTDI to the public.

However, the Naza group might still proceed with the property listing and choose to inject its automotive assets into Kumpulan Jetson at a later date.

Although Kumpulan Jetson is commonly referred to as a construction outfit, its major revenue driver is its manufacturing business.

In the financial year ended December 31 2008, Kumpulan Jetson posted group sales of RM113.88 million. Out of this, RM92.82 million was contributed by its manufacturing unit.

Kumpulan Jetson's manufacturing unit is spearheaded by the 100 per cent-owned Kumpulan Jebco (M) Sdn Bhd, which registered sales of RM68.4 million, according to its annual report.

The polymers Kumpulan Jebco manufactures are high-performance rubber, plastic and polyurethane offering anti-vibration solution to the automotive, rail and agricultural sectors.

Kumpulan Jebco aims to have manufacturing facilities in India and China in addition to sales offices and warehouses in Europe and the US by next year, it said on its website.

Last week, Kumpulan Jebco entered into a US$3 million (RM10.6 million) joint venture with China-based Weihai Xin San Yuan Electronic Device Assemble Co Ltd (Sinsamwon) and Hong Kong-based Huge Jet Ltd to form a company called Sinn Jebco.

Sinn Jebco, in which Kumpulan Jebco has a 40 per cent stake, will make shock absorbers, rubber pads and parts for transport vehicles, among other things.

U.S. Inflation Expectations Increase - Bloomberg

Oil Price up $72...yeahh..


Wah.... Crude Oil up to $72.....my ONG Counter coming lioa.......Go go go ALAM and Sealink...
This is a Low PE Stock....which have up side potential...Good luck to all....

YTL Corp FY09 net profit up 12.1% to RM863m


KUALA LUMPUR: YTL CORPORATION BHD [] posted 12.1% increase in net profit of RM863.12 million from RM769.8 million in the previous financial year on the back of higher revenue and the inclusion of its wholly-owned PowerSeraya and acquisition of a 26.6% stake in Starhill Global REIT.

The group said on Aug 20 revenue rose 36.6% to RM8.946 billion from RM6.549 billion. Profit before taxation grew 26.1% to RM2.31 billion from RM1.83 billion last year.

However, for the fourth quarter, net profit fell to RM75.97 million from RM153.32 million a year ago. Revenue was sharply higher at RM3.59 billion from RM1.82 billion. Earnings per share was 4.67 sen compared with 10.25 sen.

YTL Corp recommended a single tier first and final dividend of 15% for FY ended June 30, 2009 and declared a share dividend distribution of one treasury share for every 50
shares held as at Sept 9.

The combined cash and share dividends result in a gross dividend yield of 3.0% for FY09 (based on the 5-day weighted average price of RM7.24 per share.

YTL Group managing director Tan Sri Francis Yeoh Sock Ping said despite tough economic conditions and ongoing volatility, both locally and internationally, the group achieved a strong set of results for FY09, with two significant acquisitions in Singapore bolstering its utilities and property investment divisions.

“The addition of wholly-owned PowerSeraya to our utilities division in March 2009 enabled us to consolidate four months’ results for the 2009 financial year.

"The acquisition of a 26.6% stake in Starhill Global REIT and 50% of the holding company of the REIT’s manager, resulted in an increase in profit due to the recognition of the fair value excess of the REIT’s identifiable assets and liabilities over the cost of the investment," he said.

Yeoh said the application of FRS 112 accounting standard arising from the abolition of industrial building allowances affecting its UK-based Wessex Water subsidiary resulted in a one-off deferred tax charge of RM442.5 million being recognised by its utilities division.

This resulted in a drop in net profit for the division but he did not expect it to have an immediate impact on cashflow. The group’s utilities operations were enhanced by the addition of PowerSeraya, Singapore’s 2nd largest generation company, with a licensed capacity of 3,100 MW and complementary multi-utility businesses.

20/8/2008

RHB says buy Public Bank, Carlsberg, Hai-O

INVESTORS should buy Public Bank Bhd and Carlsberg Brewery Malaysia Bhd and other Malaysian companies with “attractive” dividend yields to ride out the stock market’s volatility, RHB Research Institute Sdn said.

“Dividend yield plays are once again attractive,” RHB Research said in a report today.

“We recognise the market’s volatility as a sign that valuations on current earnings estimates have become stretched and a market correction would be an opportunity to buy the fundamentally more robust stocks.”

Investors should also add shares of Hai-O Enterprise Bhd, a seller of Chinese wines, herbs and medicines, Tanjong Plc and chipmaker Malaysian Pacific Industries Bhd, as an economic recovery in 2010 will make the companies’ earnings prospects “assured,” the report said.
The benchmark FTSE Bursa Malaysia KLCI Index, which has gained 32 per cent this year, has increased less than 0.1 per cent this month. A gauge of the index’s 30-day historical volatility advanced to 13.05 today, the highest level since July 28. The KLCI rose 0.5 per cent to 1,161.48 as of 11:27am.

Hai-O has a dividend yield of 7.8 per cent, the highest among RHB Research’s dividend stock picks, while Public Bank offers a 6.5 per cent return, and Carlsberg has a 5.7 per cent yield, according to the report. That’s higher than the 10-year Malaysian government securities’ 4.17 per cent yield, it said. The benchmark index offers a 3.7 per cent dividend return, according to data compiled by Bloomberg.

The government, which has forecast an economic contraction of as much as 5 per cent in 2009, expects the economy to return to growth in the fourth quarter. - Bloomberg

20/8/2009

Hwang Dbs on Pelikan International

Pelikan International (RM1.50; Fully Valued; Price Target:
RM1.35; PELI MK)
2Q09 within expectation
• 1H09 result was within our forecast but beat
consensus’
• Stronger net profit was driven by improved operating
margins and recovery in Europe demand
• Maintained Fully Valued and RM1.35 TP

20/8/2009

Hwang-dbs 20/8/2009

Alam Maritim (RM1.61; Buy; Price Target: RM2.00; AMRB
MK)
Tugging in another solid quarter
• 2QFY09 result was above expectation
• Earnings were underpinned by contribution from MV
Setia Sakti and the Underwater Services division
• Maintain Buy; target price raised to RM2.00

Billionaire Buffet urges US to stop 'printing' money and halt debt rise

WASHINGTON: Now that the worst of the economic crisis is past and recovery is slowly under way, Congress must halt the mounting increase in U.S. debt to avoid damage to long-term growth and destruction of the dollar, Warren Buffett is urging.

The plainspoken billionaire weighed in with his view in an Op-Ed piece published in The New York Times Wednesday, saying that once recovery is solidified, lawmakers need to exercise "extraordinary political will" and slow the printing of money to finance the spike in debt.

That huge spending for financial bailout and economic stimulus was sorely needed to rescue the economy in its greatest peril since the 1930s, Buffett said, but now "unchecked emissions" of dollars "will certainly cause the purchasing power of currency to melt" the way runaway carbon emissions will likely melt icebergs.

With government spending now nearly double what it is taking in, "truly major changes in both taxes and outlays will be required," Buffett wrote.

"A revived economy can't come close to bridging that sort of gap."

Buffett, one of the world's wealthiest men, enjoys opining on issues of the day.

And as the "Oracle of Omaha" and head of a successful investment firm, his views carry weight in the public arena.

He has gained a sharper political profile in recent years and has spoken out, for example, on the obligation of the privileged to help the poor.

Buffett was a top economic adviser to Republican Arnold Schwarzenegger's first campaign for California governor and advised Democrat John Kerry's presidential campaign in 2004.

Last September at the height of the financial turmoil, Buffett's firm, Berkshire Hathway Inc., rushed in with a $5 billion in investment in Wall Street powerhouse Goldman Sachs Group Inc., a move viewed as a vote of confidence for a survivor of a crisis that felled two of its investment banking peers.

The economy "is now out of the emergency room and appears to be on a slow path to recovery," Buffett wrote in the Op-Ed.

"But enormous dosages of monetary medicine continue to be administered and, before long, we will need to deal with their side effects. For now, most of those effects are invisible and could indeed remain latent for a long time. Still, their threat may be as ominous as that posed by the financial crisis itself."

Because of the deficit, the amount of U.S. debt that is publicly held likely will rise to around 56 percent of Gross Domestic Product this fiscal year ending Oct. 1, from 41 percent last year, Buffett noted.

The three ways of financing the rising debt - borrowing from other countries, borrowing from Americans or printing money - all carry problems, he said.

"The United States is spewing a potentially damaging substance into our economy - greenback emissions," Buffett wrote. - AP

20/8/2009