Even as it lacks a long-term growth story, investors are not likely to bypass Maxis Bhd's share sale, which seeks to raise about RM11.7 billion in the country's largest initial public offering (IPO) ever.
The company is valued at RM39 billion based on its indicative share price of RM5.20 each, and could potentially be the fifth largest component of the FTSE Bursa Malaysia KLCI.
Coupled with its strong liquidity, Maxis is expected to be a favourite among the Malaysian-centric funds and those that are benchmarked against the local index.
"It's a stock that fund managers can't afford not to have," OSK Investment Bank's head of equity capital markets Gan Kim Khoon remarked.
"Contrary to widely held perception, there's still growth and this will come from the penetration into the untapped east coast and Sabah and Sarawak," Gan said. Mobile broadband, which is still at nascent stage in Malaysia, will be another source of growth.
The strong cashflow is another reason investors should buy Maxis shares, Gan said.
The research arm of OSK has advised investors to subscribe to the IPO, based on the company's solid fundamental execution, superior margin and robust dividend.
OSK puts the stock's fair value at between RM5.30 and RM5.80, derived from a projected 2010 price earnings multiple of 14.8 to 16.2 times.
Still, fund managers like Choong Khuat Hock at Kumpulan Sentiasa Cemerlang are not so convinced. He believes the indicative IPO price of RM5.20 makes Maxis expensive, leaving the stock with limited upside.
"Many have painted a very rosy growth picture for Maxis, but I believe a lot will depend on whether it is investing enough to boost its 3G and data services," said Choong, a director of research at the asset manager.
"Maxis has not been focusing on its 3G rollout in the past. With the surge of interest in broadband, it may lose out to Celcom," he added.
Choong said his fund will buy some of Maxis shares as a core holding, but will not invest in a big way.
And there are those whose confidence lies in the management's track record.
"Really what you are buying is the growth. It is not a cheap stock, yes, but it is also not an insignificant telco player," K&N Kenanga head of equities broking James Lau said.
Although consumers have complained about Maxis' poor 3G and data service connection, Lau is convinced that the situation will improve.
"Moving forward, it is not going to be status quo. If you look at parentage, the philosophy behind the Ananda Krishnan group, I think the strategic plans and vision of this company is unquestionable," Lau said
Friday, October 30, 2009
Maxis IPO .. Should I buy?
Submitting Merchant Bank : CIMB INVESTMENT BANK BERHAD
Company Name : MAXIS BERHAD
Stock Name :
Date Announced : 28/10/2009
Opening of application : 28/10/2009
Closing of application : 05/11/2009
Balloting of applications : 09/11/2009
Allotment of IPO shares to successful applicants : 17/11/2009
Tentative listing date : 19/11/2009
Remarks :
All defined terms used in this Announcement shall have the same meaning as those defined in the Prospectus issued by Maxis Berhad dated 28 October 2009.
Applications for the Offer Shares offered under the Retail Offering will close at 5.00 p.m. on 5 November 2009 or such other date or dates as the Directors, the Selling Shareholder and the Majority Joint Managing Underwriters in their absolute discretion may decide. The Institutional Offering commenced on 23 October 2009 and will close on 9 November 2009 or such other date or dates as the Directors, the Selling Shareholder and the Joint Global Co-ordinators in their absolute discretion may decide.
In the event that the closing date and time of either the Institutional Offering or the Retail Offering is extended, the Price Determination Date and dates for the balloting, transfer of the Offer Shares and the Listing may be extended accordingly. Any extension will be announced in a widely circulated Bahasa Malaysia and English daily newspaper within Malaysia.
Company Name : MAXIS BERHAD
Stock Name :
Date Announced : 28/10/2009
Opening of application : 28/10/2009
Closing of application : 05/11/2009
Balloting of applications : 09/11/2009
Allotment of IPO shares to successful applicants : 17/11/2009
Tentative listing date : 19/11/2009
Remarks :
All defined terms used in this Announcement shall have the same meaning as those defined in the Prospectus issued by Maxis Berhad dated 28 October 2009.
Applications for the Offer Shares offered under the Retail Offering will close at 5.00 p.m. on 5 November 2009 or such other date or dates as the Directors, the Selling Shareholder and the Majority Joint Managing Underwriters in their absolute discretion may decide. The Institutional Offering commenced on 23 October 2009 and will close on 9 November 2009 or such other date or dates as the Directors, the Selling Shareholder and the Joint Global Co-ordinators in their absolute discretion may decide.
In the event that the closing date and time of either the Institutional Offering or the Retail Offering is extended, the Price Determination Date and dates for the balloting, transfer of the Offer Shares and the Listing may be extended accordingly. Any extension will be announced in a widely circulated Bahasa Malaysia and English daily newspaper within Malaysia.
Nine US banks seized in largest one-day haul
LOS ANGELES, Oct 31 — US authorities seized nine failed banks yesterday, the most in a single day since the financial crisis began and the latest stark sign that substantial parts of the nation’s banking industry are being crippled by bad loans.
The move brought the total number of failed banks in 2009 to 115 — their highest annual level since 1992 — with analysts expecting more to come. Among the lenders seized yesterday was Los Angeles-based California National Bank, in what was the fourth-largest US bank failure this year.
The largest institution to fail in the current financial crisis was Washington Mutual, which boasted US$307 billion (1,044 billion) in assets when it was shuttered in September 2008.
US Bancorp yesterday acquired the nine banks that had been held by FBOP Corp, picking up US$18.4 billion in assets and US$15.4 billion of deposits.
Visibly worried employees lined up to file into Cal National’s head offices in the heart of a deserted downtown Los Angeles on a chilly Friday evening, where they had their employers’ fate explained to them, regulators said.
“We’re getting ready to turn everything over to US Bank,” said Roberta Valdez, a spokeswoman for the Federal Deposit Insurance Corp, which helped supervise the transfer of FBOP’s assets. “They will continue to operate as normal in the interim,” she added, referring to lenders acquired from FBOP.
US Bancorp — which has been buying up distressed assets this year — is picking up the lenders once owned by FBOP, a private Illinois group with over US$18 billion in assets that owned banks in Texas, Illinois, Arizona and California.
Cal National is FBOP’s largest bank by branches. Others that will now go under the US Bancorp umbrella included BankUSA, Citizens National Bank, Madisonville State Bank, North Houston Bank, Pacific National Bank, Park National Bank, San Diego National Bank, and the Community Bank of Lemont.
“This transaction is consistent with the growth strategy that we have outlined many times in the past, which includes enhancing our existing franchise through low-risk, in-market acquisitions,” said Rick Hartnack, vice chairman of consumer banking for US Bancorp.
“This transaction adds scale to our current California, Illinois and Arizona footprints.”
In the “near future”, all nine lenders’ branches will be re-branded US Bank, which is the California-focused unit of US Bancorp’s that operates a network of more than 770 branches across Illinois, Arizona and California.
US Bancorp did not specify what would happen to the new employees it inherits.
Cal National operates 68 branches across Southern California with more than US$7 billion in assets. As of June 30, the lender maintained five times as much foreclosed property on its books and twice as many non-current loans as it had a year earlier, according to the Los Angeles Times, which first reported news of its evening takeover yesterday.
Cal National lost about US$500 million on heavy investments in Fannie Mae and Freddie Mac preferred shares, the newspaper added, referring to securities rendered nearly worthless by the government takeover of the mortgage firms last year.
According to FDIC data, Cal National was the fourth biggest bank failure this year in terms of assets, just edging out Corus Bank, seized Sept 11 with a flat US$7 billion of assets.
A bank official who answered the main number at Cal National’s headquarters said they could not talk at the time.
Banks are still cleaning up their balance sheets from the recent credit boom that fuelled banks’ appetite to extend loans, many with poor underwriting and triggers that caused borrowers’ payments to spike to unaffordable levels.
More lenders are expected to go under this year as the industry tries to get a handle on commercial real estate loans that will continue to worsen, as more strip malls go vacant and residential developments stall.
Banks held about US$1.7 trillion in commercial real estate loans at the end of September, according to Federal Reserve data, or about 15 per cent of their total assets. But to the extent these loans weaken, small banks are likely to be hit the hardest because larger banks were better diversified.
Banks that analysts say could risk big losses include Salt Lake City’s Zions Bancorp, Columbus, Georgia’s Synovus Financial Corp and Dallas-based Comerica Inc.
Before FBOP, US Bancorp bought Downey Savings of Newport Beach and PFF Bank & Trust of Pomona when those thrifts failed last November, the newspaper said. Just this month, US Bancorp bought 20 Nevada branches from BB&T Corp, which had acquired them as part of its deal to buy Colonial BancGroup Inc, it added. — Reuters
The move brought the total number of failed banks in 2009 to 115 — their highest annual level since 1992 — with analysts expecting more to come. Among the lenders seized yesterday was Los Angeles-based California National Bank, in what was the fourth-largest US bank failure this year.
The largest institution to fail in the current financial crisis was Washington Mutual, which boasted US$307 billion (1,044 billion) in assets when it was shuttered in September 2008.
US Bancorp yesterday acquired the nine banks that had been held by FBOP Corp, picking up US$18.4 billion in assets and US$15.4 billion of deposits.
Visibly worried employees lined up to file into Cal National’s head offices in the heart of a deserted downtown Los Angeles on a chilly Friday evening, where they had their employers’ fate explained to them, regulators said.
“We’re getting ready to turn everything over to US Bank,” said Roberta Valdez, a spokeswoman for the Federal Deposit Insurance Corp, which helped supervise the transfer of FBOP’s assets. “They will continue to operate as normal in the interim,” she added, referring to lenders acquired from FBOP.
US Bancorp — which has been buying up distressed assets this year — is picking up the lenders once owned by FBOP, a private Illinois group with over US$18 billion in assets that owned banks in Texas, Illinois, Arizona and California.
Cal National is FBOP’s largest bank by branches. Others that will now go under the US Bancorp umbrella included BankUSA, Citizens National Bank, Madisonville State Bank, North Houston Bank, Pacific National Bank, Park National Bank, San Diego National Bank, and the Community Bank of Lemont.
“This transaction is consistent with the growth strategy that we have outlined many times in the past, which includes enhancing our existing franchise through low-risk, in-market acquisitions,” said Rick Hartnack, vice chairman of consumer banking for US Bancorp.
“This transaction adds scale to our current California, Illinois and Arizona footprints.”
In the “near future”, all nine lenders’ branches will be re-branded US Bank, which is the California-focused unit of US Bancorp’s that operates a network of more than 770 branches across Illinois, Arizona and California.
US Bancorp did not specify what would happen to the new employees it inherits.
Cal National operates 68 branches across Southern California with more than US$7 billion in assets. As of June 30, the lender maintained five times as much foreclosed property on its books and twice as many non-current loans as it had a year earlier, according to the Los Angeles Times, which first reported news of its evening takeover yesterday.
Cal National lost about US$500 million on heavy investments in Fannie Mae and Freddie Mac preferred shares, the newspaper added, referring to securities rendered nearly worthless by the government takeover of the mortgage firms last year.
According to FDIC data, Cal National was the fourth biggest bank failure this year in terms of assets, just edging out Corus Bank, seized Sept 11 with a flat US$7 billion of assets.
A bank official who answered the main number at Cal National’s headquarters said they could not talk at the time.
Banks are still cleaning up their balance sheets from the recent credit boom that fuelled banks’ appetite to extend loans, many with poor underwriting and triggers that caused borrowers’ payments to spike to unaffordable levels.
More lenders are expected to go under this year as the industry tries to get a handle on commercial real estate loans that will continue to worsen, as more strip malls go vacant and residential developments stall.
Banks held about US$1.7 trillion in commercial real estate loans at the end of September, according to Federal Reserve data, or about 15 per cent of their total assets. But to the extent these loans weaken, small banks are likely to be hit the hardest because larger banks were better diversified.
Banks that analysts say could risk big losses include Salt Lake City’s Zions Bancorp, Columbus, Georgia’s Synovus Financial Corp and Dallas-based Comerica Inc.
Before FBOP, US Bancorp bought Downey Savings of Newport Beach and PFF Bank & Trust of Pomona when those thrifts failed last November, the newspaper said. Just this month, US Bancorp bought 20 Nevada branches from BB&T Corp, which had acquired them as part of its deal to buy Colonial BancGroup Inc, it added. — Reuters
Thursday, October 29, 2009
RHB 30/10/2009
Top Story : Oil & Gas – Stronger contract flows ahead Overweight
Sector Update
- While we now expect 4Q 2009 crude oil price to be range bound at US$70-80/barrel (vs. US$60-70 previously) capped by still weak demand from US and Europe, we have revised up our 2010-11 crude oil projections to US$80-100 and US$100-120 respectively (from US$60-80 and US$80-100 previously) given higher energy demand stemming from the recovery of economic activity in US and Europe as well as supply shortages.
- With crude oil price hovering around US$70-80 and likely to trend higher in 2010, we believe more greenfield upstream and deepwater projects would begin to flow again. We gathered that inquiries for jack-ups in the Gulf of Mexico have increased since mid-Sep given higher E&P activities.
- With E&P spending thus likely to pick-up momentum, we believe local players with the right assets (pipelay barges and seismic vessel for SapuraCrest), proven track record (Dialog and Kencana) as well as strong market position (Wah Seong) are well positioned to benefit from the early cycle of fresh contract awards.
- Hence, we have upgraded Wah Seong, Kencana and SapuraCrest to our top-tier premium stocks (vs. only Dialog previously) given improved longer-term earnings visibility supported by current orderbook and potential higher earnings growth driven by stronger contract flows going forward. Accordingly, we have raised FY10 target PER for these stocks to 16x (from 13x previously).
- Thus, we maintain our Overweight stance on the sector. Our top pick is Wah Seong.
Sector Update
- While we now expect 4Q 2009 crude oil price to be range bound at US$70-80/barrel (vs. US$60-70 previously) capped by still weak demand from US and Europe, we have revised up our 2010-11 crude oil projections to US$80-100 and US$100-120 respectively (from US$60-80 and US$80-100 previously) given higher energy demand stemming from the recovery of economic activity in US and Europe as well as supply shortages.
- With crude oil price hovering around US$70-80 and likely to trend higher in 2010, we believe more greenfield upstream and deepwater projects would begin to flow again. We gathered that inquiries for jack-ups in the Gulf of Mexico have increased since mid-Sep given higher E&P activities.
- With E&P spending thus likely to pick-up momentum, we believe local players with the right assets (pipelay barges and seismic vessel for SapuraCrest), proven track record (Dialog and Kencana) as well as strong market position (Wah Seong) are well positioned to benefit from the early cycle of fresh contract awards.
- Hence, we have upgraded Wah Seong, Kencana and SapuraCrest to our top-tier premium stocks (vs. only Dialog previously) given improved longer-term earnings visibility supported by current orderbook and potential higher earnings growth driven by stronger contract flows going forward. Accordingly, we have raised FY10 target PER for these stocks to 16x (from 13x previously).
- Thus, we maintain our Overweight stance on the sector. Our top pick is Wah Seong.
Wednesday, October 28, 2009
Istanbul venture raises MAHB's stature
MALAYSIA Airports Holdings Bhd (MAHB) is on the right track towards scaling new heights in emerging as an international class airport operator, with its latest venture in Istanbul’s Sabiha Gocken International Airport (ISGIA).
After having notched up commendable success from the Astana International Airport in Kazakhstan, the new Rajiv Gandhi International Airport in Hyderabad and Indira Gandhi International Airport in Delhi, MAHB’s expansion in Istanbul certainly enhances its stature as an international airport operator and manager.
The new terminal at the ISGIA, with MAHB as part of the consortium behind the project, will be officially opened this Saturday.
The opening ceremony for the new terminal will be graced by Turkey''s Prime Minister, Recep Tayyip Erdogan.
MAHB has joined hands with GMR Infrastructure Limited of India and Limak Group, a Turkish company, to develop, manage and operate ISGIA.
The facility, on the Asian side of the bicontinental city, is named after Sabiha Gokcen, the first female combat pilot in the world.
ISGIA, a greenfield airport, built from scratch in a new location, chalked up the highest passenger growth rate between 2002 and 2007.
Passenger traffic is expected to reach 25 million passenger by 2023.
MAHB has a 20 per cent equity in the consortium involved in building the new terminal which is estimated to cost 343 million euros and will cater for 10 million passengers annually.
Besides being a shareholder in the consortium, MAHB is also involved in the provision of advisory and consulting services in the airport master plan and detailed design study, especially in the operational readiness and airport transfer exercise.
MAHB currently manages and operates 39 airports in Malaysia -- five international, 16 domestic and 18 short take-off and landing ports.
The completion of the new terminal by 2010, will bring MAHB even closer to achieving its targets.
For one thing, developing the ISGIA and placing it among the leading airports in the world, will contribute tremendously to the travel and tourism industry of Turkey.
"Besides this, the terminal will open a new chapter for Malaysia Airports in its overseas endeavors and further reinforce our status as one of the most sought-after service providers in the field of airport operations," Tan Sri Dr Aris Othman, the chairman of Malaysia Airports was quoted as saying after the ground breaking ceremony for the new terminal last year.
MAHB has assigned a number of its experienced personnel to ISGIA to assist in the operations, technical and financial matters of the airport.
Second Finance Minister Datuk Seri Ahmad Husni Hanadzlah, who made a visit to the new terminal early this month, was reported as saying that the project served as an international acknowledgement of Malaysia''s expertise in airport development and management.
He said it was also "a good example of how government-linked companies like MAHB can succeed abroad, on their way to becoming global icons".
Meanwhile, its managing director Tan Sri Bashir Ahmad said MAHB was always looking for new opportunities in countries closer to home like India, China and the Middle East.
He also revealed that discussions have been ongoing with two parties in the Middle East and Africa on the possible management of airports with expectations that talks might hopefully be concluded by the first quarter of next year.
On MAHB''s airport management venture with JSC International Airport Astana (Astana), both have agreed on the mutual termination of the Trust Management Agreement for it effective June 4, this year.
MAHB said the decision was made in view that the expertise, knowledge and experience garnered by Astana from working with MAHB had enabled it to manage and operate the airport independently.
"During the two years under the Trust Management Agreement (TMA), Astana, the second largest international airport in Kazakhstan, had significantly improved its performance," the company said.
Astana also won the Best Airport of Commonwealth of Independent States in 2007, for the category of passenger traffic of more than one million passengers per year.
This increase in passenger traffic and the award received by Astana International Airport is further evidence that MAHB had met the objectives of the TMA.
MAHB’s involvement in ISGIA officially began on March 19, 2008 when the Implementation Agreement for the realisation of the ISGIA Terminal Building and its Complementaries through a Build-Operate-Transfer (BOT) Model, was signed between the Government of Turkey and the consortium.
The BOT project involved the construction of a new international airport terminal building with a passenger capacity of 25 million in 18 months, besides managing the existing domestic and international terminals.
MAHB''s role was to provide expertise in the area of operation and management of the Airport.
SGIA is the second airport in Istanbul with two terminals, covering an area of 3,300 acres.
After completion of the new terminal, the current international terminal will be converted to an all domestic terminal subsequent to construction of new terminal.
The development of the ISGIA comprised the construction of a new terminal buliding with a total area of 180,000 sq m. The development work also included a four-storey car park building with 4,718 parking lots and a six-storey hotel with 128 rooms.
As an airport operator, MAHB took a minimum equity stake of 20 per cent in the joint venture.
The total concession fee is 1.93 billion euro (about RM9.7 billion) and is structured over a 20-year concession period, with no concession fees payable in first three years. - Bernama
After having notched up commendable success from the Astana International Airport in Kazakhstan, the new Rajiv Gandhi International Airport in Hyderabad and Indira Gandhi International Airport in Delhi, MAHB’s expansion in Istanbul certainly enhances its stature as an international airport operator and manager.
The new terminal at the ISGIA, with MAHB as part of the consortium behind the project, will be officially opened this Saturday.
The opening ceremony for the new terminal will be graced by Turkey''s Prime Minister, Recep Tayyip Erdogan.
MAHB has joined hands with GMR Infrastructure Limited of India and Limak Group, a Turkish company, to develop, manage and operate ISGIA.
The facility, on the Asian side of the bicontinental city, is named after Sabiha Gokcen, the first female combat pilot in the world.
ISGIA, a greenfield airport, built from scratch in a new location, chalked up the highest passenger growth rate between 2002 and 2007.
Passenger traffic is expected to reach 25 million passenger by 2023.
MAHB has a 20 per cent equity in the consortium involved in building the new terminal which is estimated to cost 343 million euros and will cater for 10 million passengers annually.
Besides being a shareholder in the consortium, MAHB is also involved in the provision of advisory and consulting services in the airport master plan and detailed design study, especially in the operational readiness and airport transfer exercise.
MAHB currently manages and operates 39 airports in Malaysia -- five international, 16 domestic and 18 short take-off and landing ports.
The completion of the new terminal by 2010, will bring MAHB even closer to achieving its targets.
For one thing, developing the ISGIA and placing it among the leading airports in the world, will contribute tremendously to the travel and tourism industry of Turkey.
"Besides this, the terminal will open a new chapter for Malaysia Airports in its overseas endeavors and further reinforce our status as one of the most sought-after service providers in the field of airport operations," Tan Sri Dr Aris Othman, the chairman of Malaysia Airports was quoted as saying after the ground breaking ceremony for the new terminal last year.
MAHB has assigned a number of its experienced personnel to ISGIA to assist in the operations, technical and financial matters of the airport.
Second Finance Minister Datuk Seri Ahmad Husni Hanadzlah, who made a visit to the new terminal early this month, was reported as saying that the project served as an international acknowledgement of Malaysia''s expertise in airport development and management.
He said it was also "a good example of how government-linked companies like MAHB can succeed abroad, on their way to becoming global icons".
Meanwhile, its managing director Tan Sri Bashir Ahmad said MAHB was always looking for new opportunities in countries closer to home like India, China and the Middle East.
He also revealed that discussions have been ongoing with two parties in the Middle East and Africa on the possible management of airports with expectations that talks might hopefully be concluded by the first quarter of next year.
On MAHB''s airport management venture with JSC International Airport Astana (Astana), both have agreed on the mutual termination of the Trust Management Agreement for it effective June 4, this year.
MAHB said the decision was made in view that the expertise, knowledge and experience garnered by Astana from working with MAHB had enabled it to manage and operate the airport independently.
"During the two years under the Trust Management Agreement (TMA), Astana, the second largest international airport in Kazakhstan, had significantly improved its performance," the company said.
Astana also won the Best Airport of Commonwealth of Independent States in 2007, for the category of passenger traffic of more than one million passengers per year.
This increase in passenger traffic and the award received by Astana International Airport is further evidence that MAHB had met the objectives of the TMA.
MAHB’s involvement in ISGIA officially began on March 19, 2008 when the Implementation Agreement for the realisation of the ISGIA Terminal Building and its Complementaries through a Build-Operate-Transfer (BOT) Model, was signed between the Government of Turkey and the consortium.
The BOT project involved the construction of a new international airport terminal building with a passenger capacity of 25 million in 18 months, besides managing the existing domestic and international terminals.
MAHB''s role was to provide expertise in the area of operation and management of the Airport.
SGIA is the second airport in Istanbul with two terminals, covering an area of 3,300 acres.
After completion of the new terminal, the current international terminal will be converted to an all domestic terminal subsequent to construction of new terminal.
The development of the ISGIA comprised the construction of a new terminal buliding with a total area of 180,000 sq m. The development work also included a four-storey car park building with 4,718 parking lots and a six-storey hotel with 128 rooms.
As an airport operator, MAHB took a minimum equity stake of 20 per cent in the joint venture.
The total concession fee is 1.93 billion euro (about RM9.7 billion) and is structured over a 20-year concession period, with no concession fees payable in first three years. - Bernama
Tuesday, October 27, 2009
Miti unveils review of National Automotive Policy Wednesday
PETALING JAYA: Ministry of International Trade and Industry (Miti) will release details on the long-awaited review of the National Automotive Policy (NAP) at 10am Wednesday, according to press invites it sent out on Tuesday.
Miti’s review of the NAP would probably include fresh measures and incentives aimed at making the local automotive industry more competitive regionally and in the international market as a whole.
The NAP was introduced in 2006 with the intention of turning Malaysia into a regional, if not a global, automotive hub.
Three years later, the local industry is still lagging behind despite being the largest market in terms of sales volume in the region.
The ministry said in August that the review would focus on ensuring orderly development of the local automotive industry, not only to attract new investments but also encourage expansion on existing operations.
Research and development could be one of the areas to be given top priority, with emphasis on new automotive technology like low-emission vehicles.
The review may also include refining existing automotive policies to bring the industry up-to-date with global standards.
A more rigorous vehicle-testing standards could be in the works, while the domestic fuel quality sold at local pumps may be improved. A new scrapping policy could also be introduced. The Government may also announced a timetable to phase out the current approved permit (AP) system.
In tabling Budget 2010 in Parliament last Friday, Prime Minister Datuk Seri Najib Tun Razak said the Government would charge RM10,000 for every open AP from next year.
A portion of the money will be channelled into the Bumiputera Development Fund in the sector.
Analysts, however, are not expecting changes in the existing tariff structure under the review.
“We are not expecting big changes in terms of car pricing,’’ OSK Research analyst Ahmad Maghfur Usman said when contacted by StarBiz yesterday.
However, changes in the country’s automotive policy will have an impact on Proton Holdings Bhd, its close rival Perusahaan Otomobil Kedua Sdn Bhd, their vendors as well as other players in the assembly, parts manufacturing and distribution sectors.
Miti’s review of the NAP would probably include fresh measures and incentives aimed at making the local automotive industry more competitive regionally and in the international market as a whole.
The NAP was introduced in 2006 with the intention of turning Malaysia into a regional, if not a global, automotive hub.
Three years later, the local industry is still lagging behind despite being the largest market in terms of sales volume in the region.
The ministry said in August that the review would focus on ensuring orderly development of the local automotive industry, not only to attract new investments but also encourage expansion on existing operations.
Research and development could be one of the areas to be given top priority, with emphasis on new automotive technology like low-emission vehicles.
The review may also include refining existing automotive policies to bring the industry up-to-date with global standards.
A more rigorous vehicle-testing standards could be in the works, while the domestic fuel quality sold at local pumps may be improved. A new scrapping policy could also be introduced. The Government may also announced a timetable to phase out the current approved permit (AP) system.
In tabling Budget 2010 in Parliament last Friday, Prime Minister Datuk Seri Najib Tun Razak said the Government would charge RM10,000 for every open AP from next year.
A portion of the money will be channelled into the Bumiputera Development Fund in the sector.
Analysts, however, are not expecting changes in the existing tariff structure under the review.
“We are not expecting big changes in terms of car pricing,’’ OSK Research analyst Ahmad Maghfur Usman said when contacted by StarBiz yesterday.
However, changes in the country’s automotive policy will have an impact on Proton Holdings Bhd, its close rival Perusahaan Otomobil Kedua Sdn Bhd, their vendors as well as other players in the assembly, parts manufacturing and distribution sectors.
Myvi tops compact car category in quality study
Perodua, Honda, Isuzu and Toyota vehicles achieved the best mark in the study, JD Power said in a statement yesterday.
The study, now in its seventh year, examines new vehicles' quality in the first two to six months of ownership covering more than 200 problematic symptoms.
Perodua Myvi ranked highest in the compact car segment for three straight years with 127 PP100 (problems reported per 100 vehicles).
Honda City topped the entry midsize segment with 76 PP100, Toyota Vios came second at 103 PP100 and Proton Saga was third with 158 PP100.
In the midsize segment, Toyota Corolla Altis ranked highest with 80 PP100, followed by Honda Civic (103 PP100) and Nissan Sylphy (109 PP100).
Toyota Innova was ahead of others in the MPV/van segment with 85 PP100. This was followed by Nissan Grand Livina (89 PP100) and Toyota Avanza (100 PP100).
Overall initial quality in Malaysia averaged 136 PP100.
The study, now in its seventh year, examines new vehicles' quality in the first two to six months of ownership covering more than 200 problematic symptoms.
Perodua Myvi ranked highest in the compact car segment for three straight years with 127 PP100 (problems reported per 100 vehicles).
Honda City topped the entry midsize segment with 76 PP100, Toyota Vios came second at 103 PP100 and Proton Saga was third with 158 PP100.
In the midsize segment, Toyota Corolla Altis ranked highest with 80 PP100, followed by Honda Civic (103 PP100) and Nissan Sylphy (109 PP100).
Toyota Innova was ahead of others in the MPV/van segment with 85 PP100. This was followed by Nissan Grand Livina (89 PP100) and Toyota Avanza (100 PP100).
Overall initial quality in Malaysia averaged 136 PP100.
Sunday, October 25, 2009
Scomi wins RM15.3m contract in Venezuela
SCOMI Group Bhd (7158), an oil services company, has won a RM15.3 million contract to provide drilling fluids in south Venezuela.
The six-month deal is its first contract in south Venezuela. Work started early this month.
The contract is with Petróleos de Venezuela, S.A. (PDVSA), the Venezuelan state-owned petroleum company. Scomi has been working closely with PDVSA for the last 13 years.
Under the contract, Scomi will provide its own formulated oil-based drilling fluids, Confi-Drill as well a specially-licensed water-based drilling fluid.
“This is a much anticipated breakthrough for us. Leveraging on our existing drilling waste management business, we have been promoting and supplying our drilling fluids in the country since 2008,” said Steve Bracker, president of Scomi Oiltools, a unit of Scomi.
Scomi Oiltools has been providing drilling waste management and machine shop services in Venezuela since 1997 from four locations.
The six-month deal is its first contract in south Venezuela. Work started early this month.
The contract is with Petróleos de Venezuela, S.A. (PDVSA), the Venezuelan state-owned petroleum company. Scomi has been working closely with PDVSA for the last 13 years.
Under the contract, Scomi will provide its own formulated oil-based drilling fluids, Confi-Drill as well a specially-licensed water-based drilling fluid.
“This is a much anticipated breakthrough for us. Leveraging on our existing drilling waste management business, we have been promoting and supplying our drilling fluids in the country since 2008,” said Steve Bracker, president of Scomi Oiltools, a unit of Scomi.
Scomi Oiltools has been providing drilling waste management and machine shop services in Venezuela since 1997 from four locations.
Understanding tax exemptions
Q. I have been issued a credit card and I subsequently decide to cancel the credit card six months later, will I be able to claim the service tax paid?
A. The service tax law does not contain provisions for a refund of service tax under these circumstances.
If I have been issued a credit card free for life, how does the change in law affect me?
Service tax will be collected on the completion of each year after Jan 1, 2010. A principal cardholder will have to pay RM50 per card and RM25 for every supplementary card.
Will I still be paying service tax when I have meals at restaurants after GST is implemented?
GST will replace the current service tax. The Minister of Finance indicated that the rate of GST will be lower than the current rate of service tax. The current service tax rate is 5%.
With the reintroduction of real property gains tax we do hope that which is of lesser burden to the Rakyat would apply, says the Second Finance Minister
My company is considering purchasing a new building. We are looking at a building incorporated with “green technology”.
I understand there will be an exemption from stamp duty on the purchase of such buildings?
Stamp duty exemption would be available for buyers of buildings and residential properties that have been issued a Green Building Index (GBI) certificate.
The GBI is a rating index for environmentally-friendly buildings.
The stamp duty exemption would only apply to buildings or residential properties bought directly from real property developers and the exemption is only given once to the first owner of the building.
It may not apply to existing buildings that have subsequently been granted the GBI certificate.
The amount of the stamp duty exemption is given only on the additional cost incurred by the property developer to obtain the GBI certificate, and not on the full value of the building.
The exemption will apply for sales and purchases agreements executed from Oct 24 2009 until Dec 31, 2014.
I heard that there will be a tax of 5% to be imposed on gains from the disposal of real property from Jan 1, 2010.
It is proposed that real property gains tax will apply to disposals of real properties effective from Jan 1, 2010.
To date there has been a prevailing exemption on real property gains tax on such disposals since April 1, 2007.
Generally, the exemption would still apply to sale and purchase agreements executed by Dec 31, 2009.
Based on the Finance Bill, the rate of tax applicable will depend on the period the property has been held since it was acquired.
Previously, there was no tax for disposals by individuals from the sixth year onwards.
However, in the current proposal this has been removed. Therefore, both companies and individuals would be taxed at the scale rates that were applicable in the past.
The Second Finance Minister has recently clarified that the tax rate on such disposals of real property would be 5% irrespective of the period of ownership.
Therefore with the reintroduction of real property gains tax we do hope that which is of lesser burden to the Rakyat would apply.
I intend to sell my house next year. With real property gains tax applicable, will I need to file a return?
Does this mean 5% will be retained from money due to me from the sale of the property?
You would need to file a real property gains tax return within 60 days of the date of the disposal. This proposal increases the previous 30 day deadline to submit a return.
The proposed mechanism for payment of real property gains tax from Jan 1, 2010, the acquirer would be required to retain an amount not exceeding 2% of the total value of the consideration for the property.
The acquirer would then be required to pay that amount directly to the Inland Revenue Board within 60 days of the date of the disposal.
The IRB will apply this amount received from the acquirer against the amount of real property gains tax you would need to pay on the disposal of your house.
I am a Malaysian citizen currently lecturing at a local university in Selangor.
I am planning to apply for a full time 2-year teaching position at a tertiary organisation in the Iskandar region. Do I get any special incentive if I accept the offer?
Your employment offer in the Iskandar region would fall under one of the qualifying activities categorised as ‘educational services’.
If you apply and commence your employment in Iskandar Malaysia between Oct 24, 2009 and Dec 31, 2015, provided that you qualify as a Malaysian tax resident, your employment income will be taxed at the flat rate of 15%.
This could be substantially lower compared to the effective tax rate of a Malaysian tax resident.
A. The service tax law does not contain provisions for a refund of service tax under these circumstances.
If I have been issued a credit card free for life, how does the change in law affect me?
Service tax will be collected on the completion of each year after Jan 1, 2010. A principal cardholder will have to pay RM50 per card and RM25 for every supplementary card.
Will I still be paying service tax when I have meals at restaurants after GST is implemented?
GST will replace the current service tax. The Minister of Finance indicated that the rate of GST will be lower than the current rate of service tax. The current service tax rate is 5%.
With the reintroduction of real property gains tax we do hope that which is of lesser burden to the Rakyat would apply, says the Second Finance Minister
My company is considering purchasing a new building. We are looking at a building incorporated with “green technology”.
I understand there will be an exemption from stamp duty on the purchase of such buildings?
Stamp duty exemption would be available for buyers of buildings and residential properties that have been issued a Green Building Index (GBI) certificate.
The GBI is a rating index for environmentally-friendly buildings.
The stamp duty exemption would only apply to buildings or residential properties bought directly from real property developers and the exemption is only given once to the first owner of the building.
It may not apply to existing buildings that have subsequently been granted the GBI certificate.
The amount of the stamp duty exemption is given only on the additional cost incurred by the property developer to obtain the GBI certificate, and not on the full value of the building.
The exemption will apply for sales and purchases agreements executed from Oct 24 2009 until Dec 31, 2014.
I heard that there will be a tax of 5% to be imposed on gains from the disposal of real property from Jan 1, 2010.
It is proposed that real property gains tax will apply to disposals of real properties effective from Jan 1, 2010.
To date there has been a prevailing exemption on real property gains tax on such disposals since April 1, 2007.
Generally, the exemption would still apply to sale and purchase agreements executed by Dec 31, 2009.
Based on the Finance Bill, the rate of tax applicable will depend on the period the property has been held since it was acquired.
Previously, there was no tax for disposals by individuals from the sixth year onwards.
However, in the current proposal this has been removed. Therefore, both companies and individuals would be taxed at the scale rates that were applicable in the past.
The Second Finance Minister has recently clarified that the tax rate on such disposals of real property would be 5% irrespective of the period of ownership.
Therefore with the reintroduction of real property gains tax we do hope that which is of lesser burden to the Rakyat would apply.
I intend to sell my house next year. With real property gains tax applicable, will I need to file a return?
Does this mean 5% will be retained from money due to me from the sale of the property?
You would need to file a real property gains tax return within 60 days of the date of the disposal. This proposal increases the previous 30 day deadline to submit a return.
The proposed mechanism for payment of real property gains tax from Jan 1, 2010, the acquirer would be required to retain an amount not exceeding 2% of the total value of the consideration for the property.
The acquirer would then be required to pay that amount directly to the Inland Revenue Board within 60 days of the date of the disposal.
The IRB will apply this amount received from the acquirer against the amount of real property gains tax you would need to pay on the disposal of your house.
I am a Malaysian citizen currently lecturing at a local university in Selangor.
I am planning to apply for a full time 2-year teaching position at a tertiary organisation in the Iskandar region. Do I get any special incentive if I accept the offer?
Your employment offer in the Iskandar region would fall under one of the qualifying activities categorised as ‘educational services’.
If you apply and commence your employment in Iskandar Malaysia between Oct 24, 2009 and Dec 31, 2015, provided that you qualify as a Malaysian tax resident, your employment income will be taxed at the flat rate of 15%.
This could be substantially lower compared to the effective tax rate of a Malaysian tax resident.
Naza TTDI set to bag RM14b job
The property arm of the Naza Group is set to bag the job to build Malaysia's largest international conference and exhibition centre for heavy industries
NAZA TTDI, the property arm of the Naza Group, is set to clinch a RM14 billion property development project on a 24.2ha parcel of land near the Malaysia External Trade Development Corp (Matrade) headquarters in Kuala Lumpur.
Sources said the flagship project will be the construction of Malaysia's largest international conference and exhibition centre.
It will specifically cater to heavy industries like shipping, machinery, trains as well as high technology industries such as aerospace.
"The expo centre is part of the government's vison to elevate Malaysia as a regional hub at par with South Korea, China and Japan as well as bolster innovation among Malaysians," said a source.
The project will also include residential units such as condominiums as well as commercial buildings and may take at least five years to complete.
It is understood that the project will be signed between the government and the Naza Group as early as the end of this month (October 2009).
"The expo centre will offer something different because traditionally people always go to the Putra World Trade Centre, Kuala Lumpur Convention Centre and Matrade headquarters for small- and medium-scale events, furniture fairs, export-import fairs or auto shows.
"This massive expo centre will offer something never done before, which are heavy industries such as ships and airplane components and even aerospace," said the source.
Sources said the Naza Group is currently seeking financial partners and is willing to do the project on a joint-venture basis.
It has approached banks like CIMB Group Holdings Bhd, the AmBank Group as well as government-owned funds like the Employees Provident Fund and Permodalan Nasional Bhd.
Neither Naza TTDI managing director SM Faliq SM Nasimuddin nor other Naza officials responded to questions sent by Business Times.
The Naza Group, traditionally known for its automotive operations, also aims to gain equal prominence in its property business as it targets to become among Malaysia's top three developers in five years.
The group is sitting on 180.59ha of land in the Klang Valley with a potential RM7.6 billion gross development value (GDV).
Naza TTDI raked in a net profit of RM86 million on revenue of RM239 million last year.
It has secured orders of RM1.8 billion from projects like the Platinum Park near the Kuala Lumpur City Centre, of which RM1.5 billion has yet to be billed.
NAZA TTDI, the property arm of the Naza Group, is set to clinch a RM14 billion property development project on a 24.2ha parcel of land near the Malaysia External Trade Development Corp (Matrade) headquarters in Kuala Lumpur.
Sources said the flagship project will be the construction of Malaysia's largest international conference and exhibition centre.
It will specifically cater to heavy industries like shipping, machinery, trains as well as high technology industries such as aerospace.
"The expo centre is part of the government's vison to elevate Malaysia as a regional hub at par with South Korea, China and Japan as well as bolster innovation among Malaysians," said a source.
The project will also include residential units such as condominiums as well as commercial buildings and may take at least five years to complete.
It is understood that the project will be signed between the government and the Naza Group as early as the end of this month (October 2009).
"The expo centre will offer something different because traditionally people always go to the Putra World Trade Centre, Kuala Lumpur Convention Centre and Matrade headquarters for small- and medium-scale events, furniture fairs, export-import fairs or auto shows.
"This massive expo centre will offer something never done before, which are heavy industries such as ships and airplane components and even aerospace," said the source.
Sources said the Naza Group is currently seeking financial partners and is willing to do the project on a joint-venture basis.
It has approached banks like CIMB Group Holdings Bhd, the AmBank Group as well as government-owned funds like the Employees Provident Fund and Permodalan Nasional Bhd.
Neither Naza TTDI managing director SM Faliq SM Nasimuddin nor other Naza officials responded to questions sent by Business Times.
The Naza Group, traditionally known for its automotive operations, also aims to gain equal prominence in its property business as it targets to become among Malaysia's top three developers in five years.
The group is sitting on 180.59ha of land in the Klang Valley with a potential RM7.6 billion gross development value (GDV).
Naza TTDI raked in a net profit of RM86 million on revenue of RM239 million last year.
It has secured orders of RM1.8 billion from projects like the Platinum Park near the Kuala Lumpur City Centre, of which RM1.5 billion has yet to be billed.
Saturday, October 24, 2009
Maxis sets indicative price for IPO shares, eyes US$3.7b
Malaysia's biggest mobile service provider, Maxis Bhd, aims to raise as much as US$3.65 billion (RM12.34 billion) in the country's biggest IPO, despite a cooling off in demand for Asian listings following China's flurry of offerings.
Maxis, which will sell 30 per cent of its existing share capital in the IPO, has set an indicative price range of RM4.80 to RM5.50 a share, according to a term sheet obtained by Reuters yesterday.
The deal comes to market at a time when demand for IPOs has soured slightly.
South Korea's POSCO Engineering & Construction this week cancelled its planned US$926 million offering, citing disappointing bookbuilding.
In Hong Kong, Guangzhou-based developer Evergrande dramatically slashed its fundraising target to just US$828 million from US$2.1 billion.
Maxis' share offer comprises an institutional tranche of 2.037 billion shares, more than 90 per cent of the total and a retail portion of 212.3 million shares. The mobile phone operator kicked off its institutional book-building for the IPO yesterday.
The term sheet showed Maxis will set aside about a third of the offering for cornerstone investors who will be subjected to a six-month lock-up period.
The IPO offers "limited upside" in terms of share price gain, said Kevin Low, analyst at Kuala Lumpur-based Affin Investment Bank.
"Positioned as a matured yield play, we expect an active capital management theme to be the primary investment thesis for the stock," he said.
Malaysia is a fully saturated market in terms of mobile phone penetration. Mobile phone companies in Malaysia are trading at a steep premium to their regional peers.
Fidelity, the world's biggest mutual fund firm, was one of four cornerstone investors who have committed to take up the shares, a source familiar with the matter said yesterday.
Another source directly involved in the deal told Reuters earlier this week the Employees Provident Fund, Malaysia's biggest pension fund, was one of the domestic funds that had agreed to pay a maximum price of RM5.20 a share for the cornerstone tranche.
The listing of Maxis comes just two years after reclusive Malaysian billionaire T. Ananda Krishnan took the company private in a RM40 billion deal.
The re-listing is a stripped-down version because it will house just the Malaysian business, leaving the fast-growing Indian and Indonesian operations with its unlisted parent Maxis Communications Bhd.
Ananda, ranked by Forbes magazine as Malaysia's second-richest man earlier this year, owns a 45 per cent stake in Maxis Communications while Saudi Telecom owns a 25 per cent stake. The rest is held by various domestic funds in Malaysia.
IPO proceeds will be used to reduce Maxis Communications' debt and to meet funding requirements of its investments in India and Indonesia.
Maxis said in its draft prospectus it would pay out 75 per cent of its earnings as dividends.
The listing will "enable the company to access the equity capital market as it pursues growth opportunities". - Reuters
Maxis, which will sell 30 per cent of its existing share capital in the IPO, has set an indicative price range of RM4.80 to RM5.50 a share, according to a term sheet obtained by Reuters yesterday.
The deal comes to market at a time when demand for IPOs has soured slightly.
South Korea's POSCO Engineering & Construction this week cancelled its planned US$926 million offering, citing disappointing bookbuilding.
In Hong Kong, Guangzhou-based developer Evergrande dramatically slashed its fundraising target to just US$828 million from US$2.1 billion.
Maxis' share offer comprises an institutional tranche of 2.037 billion shares, more than 90 per cent of the total and a retail portion of 212.3 million shares. The mobile phone operator kicked off its institutional book-building for the IPO yesterday.
The term sheet showed Maxis will set aside about a third of the offering for cornerstone investors who will be subjected to a six-month lock-up period.
The IPO offers "limited upside" in terms of share price gain, said Kevin Low, analyst at Kuala Lumpur-based Affin Investment Bank.
"Positioned as a matured yield play, we expect an active capital management theme to be the primary investment thesis for the stock," he said.
Malaysia is a fully saturated market in terms of mobile phone penetration. Mobile phone companies in Malaysia are trading at a steep premium to their regional peers.
Fidelity, the world's biggest mutual fund firm, was one of four cornerstone investors who have committed to take up the shares, a source familiar with the matter said yesterday.
Another source directly involved in the deal told Reuters earlier this week the Employees Provident Fund, Malaysia's biggest pension fund, was one of the domestic funds that had agreed to pay a maximum price of RM5.20 a share for the cornerstone tranche.
The listing of Maxis comes just two years after reclusive Malaysian billionaire T. Ananda Krishnan took the company private in a RM40 billion deal.
The re-listing is a stripped-down version because it will house just the Malaysian business, leaving the fast-growing Indian and Indonesian operations with its unlisted parent Maxis Communications Bhd.
Ananda, ranked by Forbes magazine as Malaysia's second-richest man earlier this year, owns a 45 per cent stake in Maxis Communications while Saudi Telecom owns a 25 per cent stake. The rest is held by various domestic funds in Malaysia.
IPO proceeds will be used to reduce Maxis Communications' debt and to meet funding requirements of its investments in India and Indonesia.
Maxis said in its draft prospectus it would pay out 75 per cent of its earnings as dividends.
The listing will "enable the company to access the equity capital market as it pursues growth opportunities". - Reuters
Wednesday, October 21, 2009
OSK Research maintains Buy on Genting Malaysia
KUALA LUPUR: OSK Investment Research is maintaining its Buy on Genting Malaysia (formerly Resorts World) with a target price of RM3.25 (10% discount to realized net asset value of RM3.60).
On Wednesday, its unit Resorts World Ltd, had subscribed to Wynn Las Vegas LLC and Wynn Las Vegas Capital Corp mortgage notes
amounting to US$15 million (RM50.5 million). The notes yield an annual return of 7.9% and mature in 2017. The Notes are secured on substantially all of the existing and future assets of the issuer.
OSK Research said the acquisition represented a minute 1.1% of the group's net cash balance of RM4.6 billion and only 3% of the total subscription offering of US$500 million by Wynn.
"We believe that the market may start questioning the strategic reasons for investments of such small scale despite its potential to generate higher returns than the risk-free 2% that the group currently earns on its cash hoard," it said.
The incremental impact on group earnings from the RM50.5 million investment would amount to approximately RM2.9 million, or less than 0.2% of the group's FY09 earnings.
Given that Resorts remains the key cash flow generating company within the group coupled with its net cash hoard of RM4.5 billion, OSK Research said it continued to believe that it will remain the group's preferred casino M&A vehicle.
In relation to potential acquisition opportunities in Macau, Singapore's strict casino licensing oversight may pose a hindrance to Genting Singapore.
The stock's current undemanding valuations of 5.7 times FY10 enterprise value/ earnings before interest, taxation, depreciation and amortisation (EV/EBITDA) versus its historical average of 7 times and the regional peer average of 7 times to 10 times, indicates that the potential competitive risk emanating from the Singapore integrated resort has largely been priced in.
"Stripping out its net cash/share of 90 sen, the stock trades at 8.9x FY10 PER. Maintain BUY with a target price of RM3.25 (10% discount to RNAV of RM3.60)."
On Wednesday, its unit Resorts World Ltd, had subscribed to Wynn Las Vegas LLC and Wynn Las Vegas Capital Corp mortgage notes
amounting to US$15 million (RM50.5 million). The notes yield an annual return of 7.9% and mature in 2017. The Notes are secured on substantially all of the existing and future assets of the issuer.
OSK Research said the acquisition represented a minute 1.1% of the group's net cash balance of RM4.6 billion and only 3% of the total subscription offering of US$500 million by Wynn.
"We believe that the market may start questioning the strategic reasons for investments of such small scale despite its potential to generate higher returns than the risk-free 2% that the group currently earns on its cash hoard," it said.
The incremental impact on group earnings from the RM50.5 million investment would amount to approximately RM2.9 million, or less than 0.2% of the group's FY09 earnings.
Given that Resorts remains the key cash flow generating company within the group coupled with its net cash hoard of RM4.5 billion, OSK Research said it continued to believe that it will remain the group's preferred casino M&A vehicle.
In relation to potential acquisition opportunities in Macau, Singapore's strict casino licensing oversight may pose a hindrance to Genting Singapore.
The stock's current undemanding valuations of 5.7 times FY10 enterprise value/ earnings before interest, taxation, depreciation and amortisation (EV/EBITDA) versus its historical average of 7 times and the regional peer average of 7 times to 10 times, indicates that the potential competitive risk emanating from the Singapore integrated resort has largely been priced in.
"Stripping out its net cash/share of 90 sen, the stock trades at 8.9x FY10 PER. Maintain BUY with a target price of RM3.25 (10% discount to RNAV of RM3.60)."
Oil surges towards US$82
NEW YORK: Oil jumped more than 3 percent toward US$82 a barrel on Wednesday, Oct 21 its highest level in a year, due to a drawdown in U.S. refined oil inventories and as a rise in U.S. equities showed optimism about the economy and a potential rebound in energy demand, according to Reuters.
Weekly data from the Energy Information Administration revealed a larger-than-expected 2.3-million-barrel draw in gasoline stocks in the world's largest energy consumer last week, while crude inventories rose 1.3 million barrels, less than the expected 1.8 million-barrel rise.
U.S. crude for December rose US$2.72 to US$81.84 a barrel by 2:03 p.m. EDT (1803 GMT). Brent crude added US$2.90 to US$80.14.
"The gasoline draw was bullish, and the same for distillates, with refinery rates nearly unchanged," said Mike Zarembski, senior commodities analyst for OptionsXpress in Chicago.
However, traders had their eyes on the weakness of the dollar and stronger equities as price drivers, rather than oil's fundamentals of demand and supply.
"As long as the dollar is down and stocks are up, traders want to buy energies. Everyone is watching the dollar now and that is what's driving crude prices. There is nothing in this report to change that," Zarembski added.
The dollar sank against a basket of other currencies as expectations that U.S. interest rates will remain very low weighed on the greenback. The euro rose above US$1.50 for the first time since August 2008.
A falling dollar makes oil relatively cheap to holders of other currencies.
The weak dollar and anticipation of future economic recovery have been the main drivers of the oil price rally for the past few months.
This year, front-month crude on the New York Mercantile Exchange has risen around 120 percent from the December 31 2008 low of $36.94 to the current session high on Wednesday to above $81.
China's State Council voiced confidence that China's economy has recovered from the global financial crisis, performing better than expected in the first nine months of the year.
The International Energy Agency, which represents 28 industrialized countries, has warned that the fast rise in prices could pose a risk to global economic recovery.
But Nigeria's oil minister, Rilwanu Lukman, said US$80 was a fair price for oil and one that should encourage investment in new supplies. - Reuters
Weekly data from the Energy Information Administration revealed a larger-than-expected 2.3-million-barrel draw in gasoline stocks in the world's largest energy consumer last week, while crude inventories rose 1.3 million barrels, less than the expected 1.8 million-barrel rise.
U.S. crude for December rose US$2.72 to US$81.84 a barrel by 2:03 p.m. EDT (1803 GMT). Brent crude added US$2.90 to US$80.14.
"The gasoline draw was bullish, and the same for distillates, with refinery rates nearly unchanged," said Mike Zarembski, senior commodities analyst for OptionsXpress in Chicago.
However, traders had their eyes on the weakness of the dollar and stronger equities as price drivers, rather than oil's fundamentals of demand and supply.
"As long as the dollar is down and stocks are up, traders want to buy energies. Everyone is watching the dollar now and that is what's driving crude prices. There is nothing in this report to change that," Zarembski added.
The dollar sank against a basket of other currencies as expectations that U.S. interest rates will remain very low weighed on the greenback. The euro rose above US$1.50 for the first time since August 2008.
A falling dollar makes oil relatively cheap to holders of other currencies.
The weak dollar and anticipation of future economic recovery have been the main drivers of the oil price rally for the past few months.
This year, front-month crude on the New York Mercantile Exchange has risen around 120 percent from the December 31 2008 low of $36.94 to the current session high on Wednesday to above $81.
China's State Council voiced confidence that China's economy has recovered from the global financial crisis, performing better than expected in the first nine months of the year.
The International Energy Agency, which represents 28 industrialized countries, has warned that the fast rise in prices could pose a risk to global economic recovery.
But Nigeria's oil minister, Rilwanu Lukman, said US$80 was a fair price for oil and one that should encourage investment in new supplies. - Reuters
MAHB by Hwang-dbs
Malaysia Airports (RM3.53; Buy; Price Target: RM4.50;
MAHB MK)
MAHB revises passenger volume growth forecast
The media reported that MAHB had revised its passenger
growth forecast this year to 3-4% due to the better-thanexpected
increase in tourist arrivals YTD-09. This is higher
than earlier forecast of 0% to -5%.
YTD Aug 09 passenger traffic grew by 6.2% y-o-y, higher
than our forecast of 1% decline for the full year of FY09.
We look to review our traffic volume assumptions. A 1 ppt
increase in FY09 passenger volume growth raises our FY09F-
10F earnings by 1.3%.
Meanwhile, the construction of the new LCCT is believed to
be on track to complete by Sep 2011. The call for tenders to
build the LCCT was launched on the 19th Oct 09 and will
close on the 9th Nov 09.
Maintain Buy with our SOP-derived PT of RM4.50. Our PT
implies 15x CY10F EPS and 1.4x CY10F BV. We believe
MAHB’s recent restructuring enhances long-term earnings
visibility and improves ROE with its increasing benchmark
PSC formula and variable costs mechanism.
MAHB MK)
MAHB revises passenger volume growth forecast
The media reported that MAHB had revised its passenger
growth forecast this year to 3-4% due to the better-thanexpected
increase in tourist arrivals YTD-09. This is higher
than earlier forecast of 0% to -5%.
YTD Aug 09 passenger traffic grew by 6.2% y-o-y, higher
than our forecast of 1% decline for the full year of FY09.
We look to review our traffic volume assumptions. A 1 ppt
increase in FY09 passenger volume growth raises our FY09F-
10F earnings by 1.3%.
Meanwhile, the construction of the new LCCT is believed to
be on track to complete by Sep 2011. The call for tenders to
build the LCCT was launched on the 19th Oct 09 and will
close on the 9th Nov 09.
Maintain Buy with our SOP-derived PT of RM4.50. Our PT
implies 15x CY10F EPS and 1.4x CY10F BV. We believe
MAHB’s recent restructuring enhances long-term earnings
visibility and improves ROE with its increasing benchmark
PSC formula and variable costs mechanism.
Hwang-dbs 21/10/2009
Highlights
Steel Sector
Stronger steel demand ahead
• Steel demand is currently being supported by restocking
activities. And in FY10-11, steel producers will
benefit from pump-priming activities kicking off. The
sector is a beneficiary of the weakening USD.
• Expect 3Q09 earnings to improve q-o-q.
• Upgrade Southern Steel (TP RM2.40) and Kinsteel (TP
RM1.30) to Buy.
Axis REIT (RM1.85; Buy; Price Target: RM2.15; AXRB MK)
More acquisitions soon
• 3Q09 result was within our and market expectations.
• Recently completed placement and higher gearing
could lead to new acquisitions of RM150m.
• Maintain Buy for attractive 7% net yield and potential
growth from new acquisitions.
Steel Sector
Stronger steel demand ahead
• Steel demand is currently being supported by restocking
activities. And in FY10-11, steel producers will
benefit from pump-priming activities kicking off. The
sector is a beneficiary of the weakening USD.
• Expect 3Q09 earnings to improve q-o-q.
• Upgrade Southern Steel (TP RM2.40) and Kinsteel (TP
RM1.30) to Buy.
Axis REIT (RM1.85; Buy; Price Target: RM2.15; AXRB MK)
More acquisitions soon
• 3Q09 result was within our and market expectations.
• Recently completed placement and higher gearing
could lead to new acquisitions of RM150m.
• Maintain Buy for attractive 7% net yield and potential
growth from new acquisitions.
Monday, October 19, 2009
Najib: Budget deficit unavoidable in the short term
I do argee in some extent that deficit is unavoidable in short term.. due to huge stimulus plan by goverment..
Hartalega rectifies dividend due to insufficient tax credits
KUALA LUMPUR: HARTALEGA HOLDINGS BHD [] has decided to rectify its first interim dividend payment for the financial year ended March 31, 2009 to two sen per share single tier and two sen per share tax exempt from its previously declared franked dividend, as it did not have sufficient tax credits to frank the dividend from its 108 account.
In a statement yesterday, the company said due to a change in tax legislation, it was ascertained that the franked dividend of two sen per share less 25% tax and two sen per share tax exempt, which had been paid to it by its subsidiary company on Dec 29, 2008, could not be credited into its 108 account.
“Therefore, Hartalega did not have sufficient tax credits to frank the dividend from its 108 account. To rectify this situation, there has been a recommendation to replace the franked dividend with a tax-exempt dividend,” it said.
The company would also pay the difference of 0.5 sen per share to all its shareholders as appeared in the shareholders’ first dividend entitlement listing on Dec 15, with the differences to be paid on Nov 6, 2009.
The company also advised entitled shareholders of the first interim dividend not to claim the Section 110 credit from the initial dividend received as the original dividend tax voucher was now void.
“If any shareholders were to claim credit using the old tax voucher, the shareholders will be penalised under Section 113(2) of the Income Tax Act, 1967. A letter advising on such matter accompanying the payout would be sent to all entitled shareholders of the company as at Dec 15, 2008,” it said.
In a statement yesterday, the company said due to a change in tax legislation, it was ascertained that the franked dividend of two sen per share less 25% tax and two sen per share tax exempt, which had been paid to it by its subsidiary company on Dec 29, 2008, could not be credited into its 108 account.
“Therefore, Hartalega did not have sufficient tax credits to frank the dividend from its 108 account. To rectify this situation, there has been a recommendation to replace the franked dividend with a tax-exempt dividend,” it said.
The company would also pay the difference of 0.5 sen per share to all its shareholders as appeared in the shareholders’ first dividend entitlement listing on Dec 15, with the differences to be paid on Nov 6, 2009.
The company also advised entitled shareholders of the first interim dividend not to claim the Section 110 credit from the initial dividend received as the original dividend tax voucher was now void.
“If any shareholders were to claim credit using the old tax voucher, the shareholders will be penalised under Section 113(2) of the Income Tax Act, 1967. A letter advising on such matter accompanying the payout would be sent to all entitled shareholders of the company as at Dec 15, 2008,” it said.
CIMB Bank to grow customer base by 25pc
CIMB Bank is targeting a 25 per cent growth in customer base by next year from 5.3 million customers currently in Malaysia, said its head of retail banking Peter England.
More than 900,000 of the customers are active Internet users, he said.
To attract a wider number of Internet users, CIMB Bank today launched the CIMB Clicks Application for iPhone in collaboration with Maxis Communications Bhd.
"The iPhone application enables users to check their CIMB bank account balances in an instant without having to login to CIMB Clicks, CIMB Bank's Internet banking portal," England said during the launch today.
He said that CIMB Bank was the first bank in Malaysia to offer customers the mobility and convenience of checking their bank account balances via an iPhone application.
Other features that customers could enjoy from downloading the application into their iPhone were the CIMB Bank Branch & Automated Teller Machine (ATM) locator, currency converter and home loan calculator, England said.
"It also includes one-click shortcut to the CIMB Clicks website, and CIMB Contact Us, which enables users to call or e-mail the CIMB call centre directly from their iPhone," he said. -- BERNAMA
More than 900,000 of the customers are active Internet users, he said.
To attract a wider number of Internet users, CIMB Bank today launched the CIMB Clicks Application for iPhone in collaboration with Maxis Communications Bhd.
"The iPhone application enables users to check their CIMB bank account balances in an instant without having to login to CIMB Clicks, CIMB Bank's Internet banking portal," England said during the launch today.
He said that CIMB Bank was the first bank in Malaysia to offer customers the mobility and convenience of checking their bank account balances via an iPhone application.
Other features that customers could enjoy from downloading the application into their iPhone were the CIMB Bank Branch & Automated Teller Machine (ATM) locator, currency converter and home loan calculator, England said.
"It also includes one-click shortcut to the CIMB Clicks website, and CIMB Contact Us, which enables users to call or e-mail the CIMB call centre directly from their iPhone," he said. -- BERNAMA
Oil up above US$79, record high for 2009, in Asia Monday
SINGAPORE: Oil prices jumped above $79 a barrel to a 2009 high Monday in Asia as investors looked to the corporate earnings of big U.S. retailers this week for signs the consumer may be regaining confidence.
Benchmark crude for November delivery rose as much as 52 cents to $79.05 a barrel but later fell back and was up 24 cents at $78.77 by midday Singapore time in electronic trading on the New York Mercantile Exchange.
The contract added 95 cents to settle at $78.53 on Friday.
Last week, crude broke out of a five-month trading range between $65 and $75 a barrel on a weakening U.S. dollar and expectations that oil demand will eventually recover as the global economy grows next year.
Investors will be eyeing third quarter results from retailers this week for clues about the strength of the U.S. consumer.
Apple Inc., McDonald's Corp., appliance maker Whirlpool Corp. and toy maker Hasbro Inc. are among those reporting this week.
In other Nymex trading, heating oil rose 0.62 cent to $2.03 a gallon.
Gasoline for November delivery slipped 0.48 cent to $1.97 a gallon.
Natural gas for November delivery jumped 6.2 cents to $4.84 per 1,000 cubic feet.
In London, Brent crude for December delivery rose 13 cents to $77.12 on the ICE Futures. exchange. - AP
Benchmark crude for November delivery rose as much as 52 cents to $79.05 a barrel but later fell back and was up 24 cents at $78.77 by midday Singapore time in electronic trading on the New York Mercantile Exchange.
The contract added 95 cents to settle at $78.53 on Friday.
Last week, crude broke out of a five-month trading range between $65 and $75 a barrel on a weakening U.S. dollar and expectations that oil demand will eventually recover as the global economy grows next year.
Investors will be eyeing third quarter results from retailers this week for clues about the strength of the U.S. consumer.
Apple Inc., McDonald's Corp., appliance maker Whirlpool Corp. and toy maker Hasbro Inc. are among those reporting this week.
In other Nymex trading, heating oil rose 0.62 cent to $2.03 a gallon.
Gasoline for November delivery slipped 0.48 cent to $1.97 a gallon.
Natural gas for November delivery jumped 6.2 cents to $4.84 per 1,000 cubic feet.
In London, Brent crude for December delivery rose 13 cents to $77.12 on the ICE Futures. exchange. - AP
Sunday, October 18, 2009
Bandar Raya Developments OSK
Our recent meeting with the management reaffirms our belief that BRDB is wellpositioned
to ride on the next upcycle in 2011. In the near term, however, FY10
earnings are likely to fall sharply from a year ago as its high unbilled sales will be
largely exhausted by end-2009. The upside earnings surprises for FY10 are the
launches of its remaining projects in CapSquare and its >RM400m Hartamas II
condos project. Since we upgraded BRDB to a ‘buy’ in our 26 Aug 2009 sector report,
its share price has appreciated by as much as 18%. Given the limited further upside,
we are downgrading BRDB to a NEUTRAL for now.
to ride on the next upcycle in 2011. In the near term, however, FY10
earnings are likely to fall sharply from a year ago as its high unbilled sales will be
largely exhausted by end-2009. The upside earnings surprises for FY10 are the
launches of its remaining projects in CapSquare and its >RM400m Hartamas II
condos project. Since we upgraded BRDB to a ‘buy’ in our 26 Aug 2009 sector report,
its share price has appreciated by as much as 18%. Given the limited further upside,
we are downgrading BRDB to a NEUTRAL for now.
Saturday, October 17, 2009
RHB 16/10/2009
Corporate Highlights
Public Bank : Earnings growth momentum building up Outperform
3QFY09 Results
- 3QFY09 results in line but above consensus. Third consecutive quarter of earnings expansion, suggesting earnings momentum is building up.
- Strong loan growth and higher NIM sequentially.
- Sustained non-interest income at an elevated level.
- LLP slightly lower qoq, breaking three consecutive quarter of rising trend.
- Asset quality remain stable although there was a slight increase in gross NPLs, gross and net NPL ratios (only by 2bps each) as well as lower LLC. But LLC remains above the 170% level and all ratios still significantly stronger (double) than industry average.
- Capital ratios also remain strong.
- Maintain Outperform. Fair value of RM12.57 is based on 16x (sector and market benchmark) FY10 EPS.
Public Bank : Earnings growth momentum building up Outperform
3QFY09 Results
- 3QFY09 results in line but above consensus. Third consecutive quarter of earnings expansion, suggesting earnings momentum is building up.
- Strong loan growth and higher NIM sequentially.
- Sustained non-interest income at an elevated level.
- LLP slightly lower qoq, breaking three consecutive quarter of rising trend.
- Asset quality remain stable although there was a slight increase in gross NPLs, gross and net NPL ratios (only by 2bps each) as well as lower LLC. But LLC remains above the 170% level and all ratios still significantly stronger (double) than industry average.
- Capital ratios also remain strong.
- Maintain Outperform. Fair value of RM12.57 is based on 16x (sector and market benchmark) FY10 EPS.
Friday, October 16, 2009
Malaysia’s RHB to buy Indonesian bank stake
KUALA LUMPUR, Oct 16 — Malaysia’s fourth-biggest lender, RHB Capital, will buy a controlling stake in a small Indonesian bank, a source familiar with the issue said today, as it chases rivals who have moved into Southeast Asia’s largest economy.
Trading in RHB Capital shares was suspended today. A company spokeswoman said RHB Capital would make an announcement on Monday, but declined to elaborate.
RHB will buy into an Indonesian lender operating in the consumer segment of the market, said the source, who asked not to be identified because of the sensitivity of the matter.
“It’s a smallish bank and it’s probably a niche market,” said the source. “The group wants to expand. Indonesia has a population of 250 million and is the largest market in Southeast Asia.”
RHB would tap the market for funds to finance the deal, the source added.
Alibaba.com - Fast & easy sourcing right from your computer
RHB, controlled by the Employees Provident Fund, has lagged its rivals in entering Indonesia.
Last year, top lender Maybank paid US$2.7 billion (RM9.18 billion) for sixth-ranked Bank Internasional Indonesia, as growth at home slows with rising competition in a nation of 27 million people.
Malaysia’s second-ranked CIMB controls Jakarta-listed Bank CIMB Niaga, which was formed from a 2008 merger of Bank Niaga and Bank Lippo.
RHB Capital shares last traded up 4.6 per cent at RM5.69. The stock has gained 46 per cent this year, lagging the sector index’s 56 per cent rise. — Reuters
Happy Deepavali 2009 to all my reader
Happy Deepavali 2009 to all my reader. May you all have a wonderfully holiday beside family and friend.....
Crude rallies again
Boy and girl, crude oil have start to move...... I think the O&G stock will follow soon... I have load 40% of my porfolio into O&G stock ...as i say in my previous posting...Good luck to you all ha.....
NEW YORK (AP): Oil prices finished above $78 per barrel for the first time in a year, marking the largest weekly percentage increase in the cost of crude since the height of the U.S. summer driving season.
Benchmark crude added 95 cents to settle at $78.53 a barrel on the New York Mercantile Exchange. In London, Brent crude for December delivery climbed 76 cents to settle at $76.99 on the ICE Futures exchange.
An Energy Department report sent a ripple through the markets midweek when it revealed a huge and unexpected drawdown in gasoline supplies. Energy prices surged Friday, even though the country continues to sit on an enormous supply of petroleum.
"I think this rally is based more on hope than reality," said Michael Lynch, president of Strategic Energy & Economic Research. "There's so much oil out there that people are going to start using it for their pancakes."
Gasoline futures rose as well as the run-up over the past seven days on Nymex began to spill over into the retail market and push pump prices higher.
Demand for gasoline edged higher, more than 5 percent in the last month, but there are enormous supplies, too. The amount of gasoline in storage is still well above average for this time of year.
All one needs to do is look at oil refiners to see where the industry stands. U.S. refiners are shutting down facilities and production has thinned to levels that are usually seen only after a hurricane tears up the Gulf Coast energy complex.
Americans, as a whole, are not traveling like they used to, either because of a lost job or concern over losing one. Demand for jet fuel is down 3.5 percent over the past four weeks, according to the Energy Information Administration.
The rise in energy prices is all about the dollar, which hit a 14-month low on Thursday. Crude is bought and sold in the dollar, so it gets cheap for investors when the U.S. currency falls.
Oil prices jumped more than 9 percent during the past week as the dollar floundered. The last time crude futures rose so fast was the week of Aug. 24, when tourists crammed the highways during what's typically the busiest travel period of the year.
In other Nymex trading, heating oil added 1.16 cents to settle at $2.0297 a gallon, while gasoline for November delivery added 3.44 cents to settle at $1.9793 a gallon. Natural gas for November delivery rose 29.9 cents to settle at $4.781 per 1,000 cubic feet.
NEW YORK (AP): Oil prices finished above $78 per barrel for the first time in a year, marking the largest weekly percentage increase in the cost of crude since the height of the U.S. summer driving season.
Benchmark crude added 95 cents to settle at $78.53 a barrel on the New York Mercantile Exchange. In London, Brent crude for December delivery climbed 76 cents to settle at $76.99 on the ICE Futures exchange.
An Energy Department report sent a ripple through the markets midweek when it revealed a huge and unexpected drawdown in gasoline supplies. Energy prices surged Friday, even though the country continues to sit on an enormous supply of petroleum.
"I think this rally is based more on hope than reality," said Michael Lynch, president of Strategic Energy & Economic Research. "There's so much oil out there that people are going to start using it for their pancakes."
Gasoline futures rose as well as the run-up over the past seven days on Nymex began to spill over into the retail market and push pump prices higher.
Demand for gasoline edged higher, more than 5 percent in the last month, but there are enormous supplies, too. The amount of gasoline in storage is still well above average for this time of year.
All one needs to do is look at oil refiners to see where the industry stands. U.S. refiners are shutting down facilities and production has thinned to levels that are usually seen only after a hurricane tears up the Gulf Coast energy complex.
Americans, as a whole, are not traveling like they used to, either because of a lost job or concern over losing one. Demand for jet fuel is down 3.5 percent over the past four weeks, according to the Energy Information Administration.
The rise in energy prices is all about the dollar, which hit a 14-month low on Thursday. Crude is bought and sold in the dollar, so it gets cheap for investors when the U.S. currency falls.
Oil prices jumped more than 9 percent during the past week as the dollar floundered. The last time crude futures rose so fast was the week of Aug. 24, when tourists crammed the highways during what's typically the busiest travel period of the year.
In other Nymex trading, heating oil added 1.16 cents to settle at $2.0297 a gallon, while gasoline for November delivery added 3.44 cents to settle at $1.9793 a gallon. Natural gas for November delivery rose 29.9 cents to settle at $4.781 per 1,000 cubic feet.
Thursday, October 15, 2009
Flash Supermax's 3Q net profit soars to RM40m
KUALA LUMPUR: SUPERMAX CORPORATION BHD [] posted an impressive set of results for the third quarter ended Sept 30, 2009, with net profit at RM40.15 million, up 24% from the RM15.77 million a year ago, boosted by higher margin products.
It said on Oct 15 that revenue was RM237.56 million compared with RM244.25 million a year ago due to the higher selling prices then. Earnings per share were 15.14 sen compared with 5.95 sen. It declared a dividend of 2.5 sen per share.
"The group recorded RM237.6 million in sales revenue during the current quarter on the back of sustained high demand for rubber gloves.
"Global glove demand has continued to grow strongly and it has also received a substantial boost from the H1N1 pandemic which surfaced in March this year," it said.
However, revenue in the corresponding quarter last year, however, was slightly higher owing to substantial upward revisions in selling prices to pass on to consumers raw material and energy costs which had risen to historical highs.
Supermax also said unlike in the corresponding quarter last year, the current 3Q09 quarter's high sales revenue was not accompanied by high operating costs.
In addition, the management has focused on producing high margin products resulting in higher manufacturing profits contribution for the 3Q09 quarter.
It said on Oct 15 that revenue was RM237.56 million compared with RM244.25 million a year ago due to the higher selling prices then. Earnings per share were 15.14 sen compared with 5.95 sen. It declared a dividend of 2.5 sen per share.
"The group recorded RM237.6 million in sales revenue during the current quarter on the back of sustained high demand for rubber gloves.
"Global glove demand has continued to grow strongly and it has also received a substantial boost from the H1N1 pandemic which surfaced in March this year," it said.
However, revenue in the corresponding quarter last year, however, was slightly higher owing to substantial upward revisions in selling prices to pass on to consumers raw material and energy costs which had risen to historical highs.
Supermax also said unlike in the corresponding quarter last year, the current 3Q09 quarter's high sales revenue was not accompanied by high operating costs.
In addition, the management has focused on producing high margin products resulting in higher manufacturing profits contribution for the 3Q09 quarter.
Iskandar Investment showcases retail mall in Singapore
KUALA LUMPUR: Iskandar Investment Bhd is showcasing its one million sq. ft. lifestyle retail mall -- Medini North -- at the International Council of Shopping Centers Asia Expo in Singapore.
At the three-day expo which started on Wednesday, Oct 14, it said the move to showcase the mall was to attract potential partners and retailers.
Iskandar Investment, which is developing Iskandar Malaysia, said the mall development, was expected to attract about US$100 million annual retail spend with a catchment of 23 million residents and tourists around the mall.
The shopping centre would be easily accessible as it would be near the new coastal highway, when completed in 2012, would link Medini to the city centre of Johor in the east and the second Johor Bahru-Singapore Link to the west. The new mall will also have public transport service, including the planned light rail service.
As a key player in building Iskandar Malaysia, Iskandar Investment is responsible for developing projects which will create further economic and business spin-offs throughout the region.
"Medini North will come alive in 2012, showcasing to the world Iskandar Malaysia's strong and compelling value proposition," said Iskandar Investment president and CEO Arlida Ariff.
This first shopping mall in Medini North will seamlessly connect to the LEGOLAND Malaysia theme park, hotels and commercial developments which will fulfill Iskandar Investment's vision to develop Medini as the definitive lifestyle and leisure zone in Iskandar Malaysia.
The retail mall will include entertainment components, food and beverage options and a variety of specialty retail outlets.
Medini North, the shopping centre will incorporate natural open-air landscapes and water features, making it an ideal venue for not just shopping and dining, but also to relax and enjoy contemporary art exhibitions, live performances and international festivals in an alfresco environment.
To date, Iskandar Malaysia has more than US$13 billion in committed funds from government bodies and international investors. Iskandar Investment expects an additional US$2 billion in investments over the next two years, including the expected US$300 million in retail investments it hopes to announce over the next few months.
At the three-day expo which started on Wednesday, Oct 14, it said the move to showcase the mall was to attract potential partners and retailers.
Iskandar Investment, which is developing Iskandar Malaysia, said the mall development, was expected to attract about US$100 million annual retail spend with a catchment of 23 million residents and tourists around the mall.
The shopping centre would be easily accessible as it would be near the new coastal highway, when completed in 2012, would link Medini to the city centre of Johor in the east and the second Johor Bahru-Singapore Link to the west. The new mall will also have public transport service, including the planned light rail service.
As a key player in building Iskandar Malaysia, Iskandar Investment is responsible for developing projects which will create further economic and business spin-offs throughout the region.
"Medini North will come alive in 2012, showcasing to the world Iskandar Malaysia's strong and compelling value proposition," said Iskandar Investment president and CEO Arlida Ariff.
This first shopping mall in Medini North will seamlessly connect to the LEGOLAND Malaysia theme park, hotels and commercial developments which will fulfill Iskandar Investment's vision to develop Medini as the definitive lifestyle and leisure zone in Iskandar Malaysia.
The retail mall will include entertainment components, food and beverage options and a variety of specialty retail outlets.
Medini North, the shopping centre will incorporate natural open-air landscapes and water features, making it an ideal venue for not just shopping and dining, but also to relax and enjoy contemporary art exhibitions, live performances and international festivals in an alfresco environment.
To date, Iskandar Malaysia has more than US$13 billion in committed funds from government bodies and international investors. Iskandar Investment expects an additional US$2 billion in investments over the next two years, including the expected US$300 million in retail investments it hopes to announce over the next few months.
Wednesday, October 14, 2009
Uncle Sam on action this few week
Uncle Sam this few week have recommaned 3 stock..... This stock a Low PE stock... But we need to be patient because this stock is not the KLSE theme play now...Need to be patient...... Good luck guysss
Gold at another all time high, commodities rally
HI Guys.look like the comodity will on uptrend.... I have boot some O&G in to my portfolio recently.... I think the O&G will start to move after this.... stay tune guys.......
NEW YORK: Commodities rose broadly Wednesday as the dollar tumbled to a fresh 14-month low against other major currencies.
Gold prices soared to a new record high of US$1,072 an ounce in early trading, before giving up 30 cents to settle at $1,064.70 an ounce on the New York Mercantile Exchange on some profit-taking.
Oil prices, meanwhile, rose above $75 a barrel for the first time in a year.
The gains came as the ICE Futures U.S. dollar index, a widely used benchmark of the dollar's movement against other major currencies, tumbled to its lowest point since August 2008.
A weak dollar makes commodities cheaper for foreign buyers.
The dollar has fallen steadily since March as investors become more confident about the economy's prospects for a solid recovery.
Their growing optimism has led them to dump safe-haven assets that have lower returns, like the dollar, in favor of risker investments like stocks and commodities.
Rising commodity prices helped buoy stocks, as did upbeat earnings reports from Intel Corp. and JPMorgan Chase & Co.
The Dow Jones industrials surged more than 150 points in afternoon trading, passing the 10,000 mark for the first time in a year.
Other metals also marked fresh highs. December silver gained 6.8 cents to $17.908 an ounce. Earlier in the session, prices rose to a new 13-month high of $18.175 an ounce.
October platinum added $5.80 to $1,358.60 an ounce after earlier rising to a contract high of $1,359.60.
Among industrial metals, December copper futures rose 5 cents to $2.8445 a pound.
Elsewhere on the Nymex, light, sweet crude for November delivery added $1.03 to settle at $75.18 on the New York Mercantile Exchange.
The last time crude finished above $75 a barrel was exactly one year ago.
Gasoline for November delivery climbed 2.57 cents to settle at $1.8575 a gallon, and heating oil for November delivery added 1.93 cents to settle at $1.9427 a gallon.
Grain prices inched higher on the Chicago Board of Trade. December wheat futures rose 1.75 cents to $5.13 a bushel, while December corn added 1.25 cents to $3.83 a bushel.
November soybeans gained a penny to $9.94 a bushel.
In other trading, cotton, coffee and cocoa prices rose. Sugar and orange juice fell. - AP
Gold futures trading on the NY Merc Wednesday: (100 troy oz.; dollars per troy oz.)
Open High Low Settle Change
Oct 1064.00 1070.20 1057.60 1063.90 Down .30
Nov 1066.40 1070.50 1056.90 1064.10 Down .40
Dec 1064.20 1072.00 1056.50 1064.70 Down .30
Feb 1067.60 1072.60 1058.30 1066.00 Down .30
Apr 1066.70 1073.30 1060.00 1067.10 Down .40
Jun 1069.60 1075.00 1062.50 1068.30 Down .40
Aug 1072.10 1076.10 1064.10 1069.90 Down .40
Oct 1071.90 Down .40
Dec 1075.10 1080.90 1068.00 1074.20 Down .40
Feb 1077.10 Down .30
Apr 1080.20 Down .20
Jun 1083.50 1083.70 1083.50 1083.70 Down .10
Aug 1087.60 unch
Dec 1096.20 unch
Jun 1111.50 Up .20
Dec 1129.20 Up .50
Jun 1148.40 Up .70
Dec 1168.00 1169.20 1168.00 1169.20 Up .90
Jun 1200.00 1200.00 1190.10 1190.10 Up .90 - AP
NEW YORK: Commodities rose broadly Wednesday as the dollar tumbled to a fresh 14-month low against other major currencies.
Gold prices soared to a new record high of US$1,072 an ounce in early trading, before giving up 30 cents to settle at $1,064.70 an ounce on the New York Mercantile Exchange on some profit-taking.
Oil prices, meanwhile, rose above $75 a barrel for the first time in a year.
The gains came as the ICE Futures U.S. dollar index, a widely used benchmark of the dollar's movement against other major currencies, tumbled to its lowest point since August 2008.
A weak dollar makes commodities cheaper for foreign buyers.
The dollar has fallen steadily since March as investors become more confident about the economy's prospects for a solid recovery.
Their growing optimism has led them to dump safe-haven assets that have lower returns, like the dollar, in favor of risker investments like stocks and commodities.
Rising commodity prices helped buoy stocks, as did upbeat earnings reports from Intel Corp. and JPMorgan Chase & Co.
The Dow Jones industrials surged more than 150 points in afternoon trading, passing the 10,000 mark for the first time in a year.
Other metals also marked fresh highs. December silver gained 6.8 cents to $17.908 an ounce. Earlier in the session, prices rose to a new 13-month high of $18.175 an ounce.
October platinum added $5.80 to $1,358.60 an ounce after earlier rising to a contract high of $1,359.60.
Among industrial metals, December copper futures rose 5 cents to $2.8445 a pound.
Elsewhere on the Nymex, light, sweet crude for November delivery added $1.03 to settle at $75.18 on the New York Mercantile Exchange.
The last time crude finished above $75 a barrel was exactly one year ago.
Gasoline for November delivery climbed 2.57 cents to settle at $1.8575 a gallon, and heating oil for November delivery added 1.93 cents to settle at $1.9427 a gallon.
Grain prices inched higher on the Chicago Board of Trade. December wheat futures rose 1.75 cents to $5.13 a bushel, while December corn added 1.25 cents to $3.83 a bushel.
November soybeans gained a penny to $9.94 a bushel.
In other trading, cotton, coffee and cocoa prices rose. Sugar and orange juice fell. - AP
Gold futures trading on the NY Merc Wednesday: (100 troy oz.; dollars per troy oz.)
Open High Low Settle Change
Oct 1064.00 1070.20 1057.60 1063.90 Down .30
Nov 1066.40 1070.50 1056.90 1064.10 Down .40
Dec 1064.20 1072.00 1056.50 1064.70 Down .30
Feb 1067.60 1072.60 1058.30 1066.00 Down .30
Apr 1066.70 1073.30 1060.00 1067.10 Down .40
Jun 1069.60 1075.00 1062.50 1068.30 Down .40
Aug 1072.10 1076.10 1064.10 1069.90 Down .40
Oct 1071.90 Down .40
Dec 1075.10 1080.90 1068.00 1074.20 Down .40
Feb 1077.10 Down .30
Apr 1080.20 Down .20
Jun 1083.50 1083.70 1083.50 1083.70 Down .10
Aug 1087.60 unch
Dec 1096.20 unch
Jun 1111.50 Up .20
Dec 1129.20 Up .50
Jun 1148.40 Up .70
Dec 1168.00 1169.20 1168.00 1169.20 Up .90
Jun 1200.00 1200.00 1190.10 1190.10 Up .90 - AP
Kossan stock upgraded to 'buy'
Kossan up lioa... but i sold too early..aiyooo
TWO Malaysian rubber glove makers Wednesday saw significant increases to their share prices.
Kossan Rubber Industries Bhd advanced 3.4 per cent to RM4.94, on course for the highest level since Sep 3, 2007.
The stock was upgraded to “buy” from “hold” at AmResearch Sdn Bhd to reflect improving earnings this year and strong demand growth.
Meanwhile, Supermax Corp climbed 0.9 per cent to RM3.23, set for a record.
OSK Research Sdn Bhd said third-quarter earnings likely exceeded the research house’s estimates on rising demand and an increase in selling prices.
Earnings are due Oct. 15, it said in a report today. - Bloomberg
TWO Malaysian rubber glove makers Wednesday saw significant increases to their share prices.
Kossan Rubber Industries Bhd advanced 3.4 per cent to RM4.94, on course for the highest level since Sep 3, 2007.
The stock was upgraded to “buy” from “hold” at AmResearch Sdn Bhd to reflect improving earnings this year and strong demand growth.
Meanwhile, Supermax Corp climbed 0.9 per cent to RM3.23, set for a record.
OSK Research Sdn Bhd said third-quarter earnings likely exceeded the research house’s estimates on rising demand and an increase in selling prices.
Earnings are due Oct. 15, it said in a report today. - Bloomberg
Tuesday, October 13, 2009
RHB on Construction
♦ SCORE road projects to get off the ground? There has been
speculation that the Government will soon award out two key road
projects of the Sarawak Corridor of Renewable Energy (SCORE), namely:
(1) The Murum access road worth about RM900m; and (2) The Nanga
Merit access road worth about RM1.2bn.
♦ Bridging the gap. The award of the Murum access road project, if it
really happens soon, will bridge the gap between the award of the first
two large-scale local projects recently (in mid-2009), and the subsequent
ones (only from 2010 onwards), helping to sustain interest and the
current high valuations of construction stocks.
♦ “Liberalisation” of the construction market in East Malaysia? The
SCORE road projects will be awarded out on an open tender basis, with
no “special consideration” or exclusivity to be given to East Malaysiabased
contractors. This “liberalisation” that promotes competition and
brings down project costs is another tell-tale sign that low margins are
beginning to look like a new fact of life to local contractors.
♦ Risks to our views. These include: (1) New orderbooks secured by
construction companies exceed our assumptions; and (2) Steep falls in
commodity prices, boosting construction margins.
♦ Valuations have built in too much expectation, too little risks. On
the big picture, a more sustained flow of large-scale projects going
forward will help to replenish or even grow orderbooks of key construction
players, putting their earnings back on the growth path again. We
believe this is the expectation and it has already been built into share
prices of key construction stocks, based on their high valuations at
present. However, we believe this expected “happy ending” is still far
from being a foregone conclusion. We believe the market has underappreciated
(or chosen to conveniently ignore) two real key risks,
namely: (1) Delays in implementation; and (2) Sub-par margins due to
stiff competition. Maintain Underweight.
speculation that the Government will soon award out two key road
projects of the Sarawak Corridor of Renewable Energy (SCORE), namely:
(1) The Murum access road worth about RM900m; and (2) The Nanga
Merit access road worth about RM1.2bn.
♦ Bridging the gap. The award of the Murum access road project, if it
really happens soon, will bridge the gap between the award of the first
two large-scale local projects recently (in mid-2009), and the subsequent
ones (only from 2010 onwards), helping to sustain interest and the
current high valuations of construction stocks.
♦ “Liberalisation” of the construction market in East Malaysia? The
SCORE road projects will be awarded out on an open tender basis, with
no “special consideration” or exclusivity to be given to East Malaysiabased
contractors. This “liberalisation” that promotes competition and
brings down project costs is another tell-tale sign that low margins are
beginning to look like a new fact of life to local contractors.
♦ Risks to our views. These include: (1) New orderbooks secured by
construction companies exceed our assumptions; and (2) Steep falls in
commodity prices, boosting construction margins.
♦ Valuations have built in too much expectation, too little risks. On
the big picture, a more sustained flow of large-scale projects going
forward will help to replenish or even grow orderbooks of key construction
players, putting their earnings back on the growth path again. We
believe this is the expectation and it has already been built into share
prices of key construction stocks, based on their high valuations at
present. However, we believe this expected “happy ending” is still far
from being a foregone conclusion. We believe the market has underappreciated
(or chosen to conveniently ignore) two real key risks,
namely: (1) Delays in implementation; and (2) Sub-par margins due to
stiff competition. Maintain Underweight.
Maxis IPO could turn off investors
With the blessings of the prime minister himself, the relisting of Malaysia’s top telecom firm Maxis Bhd next month was destined to be a blockbuster, but tepid response from domestic funds so far suggests otherwise.
Reclusive Malaysian billionaire Ananda Krishnan took Maxis private two years ago in a deal that valued the company at about RM40 billion (US$11.78 billion). Maxis, which also owns telco assets in India and Indonesia, was once one of the most widely owned stocks by foreign investors in Malaysia.
Prime Minister Datuk Seri Najib Razak, who wants to boost the country’s sluggish stock market, had asked Ananda to relist Maxis, a call that was heeded, but only in part, because Ananda plans to float just the Malaysian operations in the IPO.
Some fund managers have said they will likely underweight Maxis, whose listing is expected to squeeze a few stocks out of the benchmark stock index due to its size, as valuations seem lofty and growth prospects uninspiring.
“You really have to struggle to find where is growth going to come from,” said Abdul Jalil Rasheed, who helps manage about US$2 billion at the Malaysian unit of Aberdeen Asset Management.
"This is just the Malaysian business, not the fast growing Indian or Indonesian business.”
The Indian and Indonesian businesses were together valued at around RM7 billion when Ananda took the company private two years ago, but analysts feel the current IPO risks overvaluing the mature Malaysian arm by excluding the lucrative overseas operations.
Sources have said Ananda and his partner, Saudi Telecom, are looking to cash in more than US$2 billion through the IPO, making it Southeast Asia’s biggest since 1995.
An indicative price could be announced this week, while CIMB Research said the company could be valued at US$11-US$12 billion.
“Maxis could be looking to raise around US$2.5 billion from this,” a source familiar with the deal said.
Maxis, controlled by Ananda, Saudi Telecom and some domestic trust funds via unlisted Binariang GSM, will sell 2.25 billion shares, or 30 per cent, of its existing share capital in the IPO.
BANKERS GALORE
Given the mega size of the offering, every bank is salivating for a slice of the pie.
Maxis has hired CIMB, Credit Suisse and Goldman Sachs N$> as joint-bookrunners for the IP0. UBS, JPMorgan and Nomura are co-bookrunners and CLSA, Bank of America’s Merrill Lynch, HSBC and Standard Chartered are among the co-lead managers, sources said.
Institutional bookbuilding for the IPO is expected to take place by November 9 and the listing by November 16.
But at a fund manager briefing by CIMB in Kuala Lumpur last week, investors questioned why Maxis, stripped of its prized assets in India and Indonesia, deserved to be valued at the figure of two years ago. Malaysia is a fully saturated market in terms of SIM penetration.
“People have talked about 14 to 16 times (price to earnings ratio),” said Aberdeen’s Jalil. “I think at the lower end of the range it does look OK but if it’s in a late teen or something, it might put off certain people.”
Rival Axiata, a regional player with a presence in Indonesia, India and Sri Lanka, currently trades at 15.9 times 2010 earnings, Thomson Reuters data showed. DiGi, the smallest mobile player in the country, with no regional presence, trades at 14.9 times.
These ratios compared to the 11.7 times fetched by Singapore Telecom, which also operates in a fully saturated market with some regional presence.
Maxis, which earned RM1.14 billion in the first half of 2009, said it plans to pay out 75 per cent of its net profit as dividend. CIMB Research said Maxis had a dividend yield of between 5.3 per cent and 5.9 per cent in 2010, compared to the 4.6 per cent yield of the FTSE Bursa Malaysia KLCI.
But investors were not impressed.
“If I want to buy for yields, I may as well buy a bond, that way I am not subjected to the ups and downs in the market,” said the CIO of a fund management firm. -- Reuters
Reclusive Malaysian billionaire Ananda Krishnan took Maxis private two years ago in a deal that valued the company at about RM40 billion (US$11.78 billion). Maxis, which also owns telco assets in India and Indonesia, was once one of the most widely owned stocks by foreign investors in Malaysia.
Prime Minister Datuk Seri Najib Razak, who wants to boost the country’s sluggish stock market, had asked Ananda to relist Maxis, a call that was heeded, but only in part, because Ananda plans to float just the Malaysian operations in the IPO.
Some fund managers have said they will likely underweight Maxis, whose listing is expected to squeeze a few stocks out of the benchmark stock index due to its size, as valuations seem lofty and growth prospects uninspiring.
“You really have to struggle to find where is growth going to come from,” said Abdul Jalil Rasheed, who helps manage about US$2 billion at the Malaysian unit of Aberdeen Asset Management.
"This is just the Malaysian business, not the fast growing Indian or Indonesian business.”
The Indian and Indonesian businesses were together valued at around RM7 billion when Ananda took the company private two years ago, but analysts feel the current IPO risks overvaluing the mature Malaysian arm by excluding the lucrative overseas operations.
Sources have said Ananda and his partner, Saudi Telecom, are looking to cash in more than US$2 billion through the IPO, making it Southeast Asia’s biggest since 1995.
An indicative price could be announced this week, while CIMB Research said the company could be valued at US$11-US$12 billion.
“Maxis could be looking to raise around US$2.5 billion from this,” a source familiar with the deal said.
Maxis, controlled by Ananda, Saudi Telecom and some domestic trust funds via unlisted Binariang GSM, will sell 2.25 billion shares, or 30 per cent, of its existing share capital in the IPO.
BANKERS GALORE
Given the mega size of the offering, every bank is salivating for a slice of the pie.
Maxis has hired CIMB, Credit Suisse and Goldman Sachs N$> as joint-bookrunners for the IP0. UBS, JPMorgan and Nomura are co-bookrunners and CLSA, Bank of America’s Merrill Lynch, HSBC and Standard Chartered are among the co-lead managers, sources said.
Institutional bookbuilding for the IPO is expected to take place by November 9 and the listing by November 16.
But at a fund manager briefing by CIMB in Kuala Lumpur last week, investors questioned why Maxis, stripped of its prized assets in India and Indonesia, deserved to be valued at the figure of two years ago. Malaysia is a fully saturated market in terms of SIM penetration.
“People have talked about 14 to 16 times (price to earnings ratio),” said Aberdeen’s Jalil. “I think at the lower end of the range it does look OK but if it’s in a late teen or something, it might put off certain people.”
Rival Axiata, a regional player with a presence in Indonesia, India and Sri Lanka, currently trades at 15.9 times 2010 earnings, Thomson Reuters data showed. DiGi, the smallest mobile player in the country, with no regional presence, trades at 14.9 times.
These ratios compared to the 11.7 times fetched by Singapore Telecom, which also operates in a fully saturated market with some regional presence.
Maxis, which earned RM1.14 billion in the first half of 2009, said it plans to pay out 75 per cent of its net profit as dividend. CIMB Research said Maxis had a dividend yield of between 5.3 per cent and 5.9 per cent in 2010, compared to the 4.6 per cent yield of the FTSE Bursa Malaysia KLCI.
But investors were not impressed.
“If I want to buy for yields, I may as well buy a bond, that way I am not subjected to the ups and downs in the market,” said the CIO of a fund management firm. -- Reuters
Monday, October 12, 2009
Oil, fuel prices up as US$, temperatures fall
NEW YORK: Energy prices rose Monday as an October chill across much of the United States sent thermometers plummeting along with the weakening U.S. currency.
"The early blast of winter is giving oil a bit of a boost," said PFGBest analyst Phil Flynn.
Benchmark crude for November delivery gained $1.50 to settle at $73.27 on the New York Mercantile Exchange.
The last time crude closed above $73 was in late August with the U.S. driving season in full swing.
Heating oil rose 4.16 cents to settle at $1.8944 a gallon and natural gas jumped 11 cents to settle at $4.88 per 1,000 cubic feet.
Even though there are enormous supplies of all three due to the recession and there is little chance of a shortage in the near term, crude prices have risen 5 percent in three trading days.
It is the weakened U.S. currency that continues to lure global investors who can buy oil for a bargain because it is priced in the dollar.
There are billions of dollars entering energy markets despite huge surpluses, especially in natural gas.
The U.S. dollar index, which tracks the dollar against other major currencies, is down 14 percent since early March, and crude has jumped by about $20 per barrel in the same time.
There are also hopes that energy demand will rise as the economy recovers.
Early quarterly reports from major corporations supported that optimism somewhat.
Aluminum maker Alcoa Inc. last week opened the earnings season with a surprisingly strong profit report. Top banks JPMorgan Chase & Co., Goldman Sachs Group Inc., Citigroup Inc. and Bank of America Corp. report this week along with Google Inc., Southwest Airlines Co., Intel Corp., IBM Corp., General Electric Co., and Johnson & Johnson.
In other Nymex trading, gasoline for November delivery gained 3.1 cents to finish at $1.799 a gallon.
In London, Brent crude rose $1.36 to settle at $71.36. on the ICE Futures exchange. - AP
"The early blast of winter is giving oil a bit of a boost," said PFGBest analyst Phil Flynn.
Benchmark crude for November delivery gained $1.50 to settle at $73.27 on the New York Mercantile Exchange.
The last time crude closed above $73 was in late August with the U.S. driving season in full swing.
Heating oil rose 4.16 cents to settle at $1.8944 a gallon and natural gas jumped 11 cents to settle at $4.88 per 1,000 cubic feet.
Even though there are enormous supplies of all three due to the recession and there is little chance of a shortage in the near term, crude prices have risen 5 percent in three trading days.
It is the weakened U.S. currency that continues to lure global investors who can buy oil for a bargain because it is priced in the dollar.
There are billions of dollars entering energy markets despite huge surpluses, especially in natural gas.
The U.S. dollar index, which tracks the dollar against other major currencies, is down 14 percent since early March, and crude has jumped by about $20 per barrel in the same time.
There are also hopes that energy demand will rise as the economy recovers.
Early quarterly reports from major corporations supported that optimism somewhat.
Aluminum maker Alcoa Inc. last week opened the earnings season with a surprisingly strong profit report. Top banks JPMorgan Chase & Co., Goldman Sachs Group Inc., Citigroup Inc. and Bank of America Corp. report this week along with Google Inc., Southwest Airlines Co., Intel Corp., IBM Corp., General Electric Co., and Johnson & Johnson.
In other Nymex trading, gasoline for November delivery gained 3.1 cents to finish at $1.799 a gallon.
In London, Brent crude rose $1.36 to settle at $71.36. on the ICE Futures exchange. - AP
Sunday, October 11, 2009
Oil rises above US$72 Monday in Asia
Some news that i think will help O&G sector to become hotter in few week time..I have position myself with Tanjung Offshore and XXX company for O&G.. just need to be patient.. Hope for the best....
SINGAPORE: Oil prices rose above US$72 a barrel Monday in Asia as investors looked to a slew of U.S. corporate earnings reports this week for signs of economic recovery.
Benchmark crude for November delivery was up 44 cents at $72.21 by midday Singapore time in electronic trading on the New York Mercantile Exchange.
The contract rose 8 cents to $71.77 on Friday.
Crude investors will be eyeing third quarter company results and forecasts for the rest of the year for clues about the strength of the U.S. economy.
Top banks JPMorgan Chase & Co., Goldman Sachs Group Inc., Citigroup Inc. and Bank of America Corp. report this week along with Google Inc., Southwest Airlines Co., Intel Corp., IBM Corp., General Electric Co., and Johnson & Johnson.
A more optimistic crude demand forecast by the International Energy Agency on Friday helped boost trader confidence.
The Paris-based IEA, which advises oil-consuming countries, said demand will likely reach 86.1 million barrels a day in 2010, up 1.7 percent from this year.
On Sunday, Kuwaiti oil minister Sheik Ahmed Al Abdullah Al Sabah told the state news agency that an oil price range between $60 to $80 a barrel is acceptable - echoing earlier remarks by Saudi Arabia.
The two Middle Eastern countries are members of the Organization for Petroleum Exporting Countries, which accounts for about a third of the world's oil production. In other Nymex trading, heating oil rose 1.71 cents to $1.87 a gallon.
Gasoline for November delivery gained 1.11 cents to $1.78 a gallon.
Natural gas for November delivery jumped 5.2 cents to $4.82 per 1,000 cubic feet.
In London, Brent crude rose 48 cents to $70.48 on the ICE Futures exchange. - AP
SINGAPORE: Oil prices rose above US$72 a barrel Monday in Asia as investors looked to a slew of U.S. corporate earnings reports this week for signs of economic recovery.
Benchmark crude for November delivery was up 44 cents at $72.21 by midday Singapore time in electronic trading on the New York Mercantile Exchange.
The contract rose 8 cents to $71.77 on Friday.
Crude investors will be eyeing third quarter company results and forecasts for the rest of the year for clues about the strength of the U.S. economy.
Top banks JPMorgan Chase & Co., Goldman Sachs Group Inc., Citigroup Inc. and Bank of America Corp. report this week along with Google Inc., Southwest Airlines Co., Intel Corp., IBM Corp., General Electric Co., and Johnson & Johnson.
A more optimistic crude demand forecast by the International Energy Agency on Friday helped boost trader confidence.
The Paris-based IEA, which advises oil-consuming countries, said demand will likely reach 86.1 million barrels a day in 2010, up 1.7 percent from this year.
On Sunday, Kuwaiti oil minister Sheik Ahmed Al Abdullah Al Sabah told the state news agency that an oil price range between $60 to $80 a barrel is acceptable - echoing earlier remarks by Saudi Arabia.
The two Middle Eastern countries are members of the Organization for Petroleum Exporting Countries, which accounts for about a third of the world's oil production. In other Nymex trading, heating oil rose 1.71 cents to $1.87 a gallon.
Gasoline for November delivery gained 1.11 cents to $1.78 a gallon.
Natural gas for November delivery jumped 5.2 cents to $4.82 per 1,000 cubic feet.
In London, Brent crude rose 48 cents to $70.48 on the ICE Futures exchange. - AP
Bargain buy for Tanjung Offshore-WA today
Today I manage to catch Tanjung Offshore-WA at 0.88. I bot 6000 share... I have used the money from BDRA-WA .... Hopefully i made the right choice.... O&G have cool down for past few month... I think they will start to move...lioa..... Happy investing guys...
Saturday, October 10, 2009
Sime Darby to expand palm oil processing ops in China
WAGENINGEN (The Netherlands): Sime Darby Bhd (4197) aims to rapidly expand its palm oil processing operations in China to meet rising demand for cookies, ice-cream and instant noodles from the country's growing middle class, its chairman said on Thursday.
Tun Musa Hitam said the global economic crisis had not affected the rising demand trend for palm oil and, while the European market was stable, demand in China, India and the Middle East was still increasing sharply.
The conglomerate is developing palm oil processing for cooking oil in China, but Musa said it was already talking about increasing the scope of its downstream operations in that country to include more vegetable oil-based food ingredients.
"The bigger the middle class that exists in a country, the more they consume palm oil," he said.
"The essential needs were just ordinary oil for cooking and frying. As the middle class grows, they come to be interested in cookies, ice-cream, or noodles," he told a food conference in the Netherlands.
Musa said it was not unlikely that Malaysia's annual palm oil exports to China could double in the next decade, from a level of around four million tonnes at present. He also expects growing Chinese investments in palm oil in countries such as Malaysia.
Alibaba.com - The largest database of products & suppliers from China
"The Chinese are interested in two things: security of supply of energy and food. The beauty of palm oil is that it can be considered food and energy," he added. - Reuters
Tun Musa Hitam said the global economic crisis had not affected the rising demand trend for palm oil and, while the European market was stable, demand in China, India and the Middle East was still increasing sharply.
The conglomerate is developing palm oil processing for cooking oil in China, but Musa said it was already talking about increasing the scope of its downstream operations in that country to include more vegetable oil-based food ingredients.
"The bigger the middle class that exists in a country, the more they consume palm oil," he said.
"The essential needs were just ordinary oil for cooking and frying. As the middle class grows, they come to be interested in cookies, ice-cream, or noodles," he told a food conference in the Netherlands.
Musa said it was not unlikely that Malaysia's annual palm oil exports to China could double in the next decade, from a level of around four million tonnes at present. He also expects growing Chinese investments in palm oil in countries such as Malaysia.
Alibaba.com - The largest database of products & suppliers from China
"The Chinese are interested in two things: security of supply of energy and food. The beauty of palm oil is that it can be considered food and energy," he added. - Reuters
Thursday, October 8, 2009
I have sold all my BDRA-WA with 28.92% gain
Today i have sold 7500 share of BDRA-WA with 28.92% gain... I sold it at 0.695 .... hai... today it shoot up more then this price....alamak. But never mind..at least i have gain some pocket money....... I will post up about Kossan share later in the evening.. This share get goreng as i aspected... will give more info to you guy....How you guy fare during the upside of the market now?....Good luck
RHB 8/10/2009 on Dialog
Dialog : Proposed special share dividend Outperform
News Update
- Dialog proposed a special share dividend for FY06/09 on the basis of one treasury share for every 50
shares (with approximately 27.7m treasury shares to be distributed). Together with interim and final
dividend of 36 sen, total FY06/09 DPS rises to 57.6 sens or yield of 4.6% (vs. 2.7% in FY06/08).
- Going forward we believe it can sustain yields of 4-7% given its strong operating cash flow and net cash
pile of RM0.09/share.
- Medium term, we highlight potential stronger earnings growth in FY10-11 arising from EPCC jobs (i.e. T2
expansion and Pengerang Terminal) as well as sizeable catalyst handling projects. Reiterate Outperform
and fair value of RM1.58/share.
News Update
- Dialog proposed a special share dividend for FY06/09 on the basis of one treasury share for every 50
shares (with approximately 27.7m treasury shares to be distributed). Together with interim and final
dividend of 36 sen, total FY06/09 DPS rises to 57.6 sens or yield of 4.6% (vs. 2.7% in FY06/08).
- Going forward we believe it can sustain yields of 4-7% given its strong operating cash flow and net cash
pile of RM0.09/share.
- Medium term, we highlight potential stronger earnings growth in FY10-11 arising from EPCC jobs (i.e. T2
expansion and Pengerang Terminal) as well as sizeable catalyst handling projects. Reiterate Outperform
and fair value of RM1.58/share.
Hai-O Energy eyes power generation
HAI-O Energy Sdn Bhd, the technology unit of Hai-O Group, is looking at the potential of power generation business with its latest finding on heat transfer technology.
Its managing director Ng Lip Yong said to further develop the finding, the firm has teamed up with China's Institute of Engineering Thermophysics (IET) from the Chinese Academy of Sciences.
The two parties will establish a Joint Laboratory on Innovative High Intensity Heat Transfer Technology, he said.
"We will be contributing RMB800,000 annually. It's a small sum but we are depending on them to create the theory for us," Ng said.
"We are also working with the IET to develop new applications from this and have identified several projects," he said after a signing ceremony between Hai-O Energy and IET in Kuala Lumpur today.
Present at the event were Minister in the Prime Minister's Department, Tan Sri Koh Tsu Koon, and former science, technology and environment minister, Datuk Seri Law Hieng Ding.
Ng said Hai-O Energy's technical director Suvit Lee had discovered the fourth phenomenon of heat transfer, which could ultimately be used for solar heating and air-conditioning systems, LED (light-emitting diode) streetlights and other applications.
"This is suitable for small areas which have high intensity heat such as laptops and air-conditioners," he said.
The other three conventional methods of heat transfer are through convection, conduction and radiation.
Ng said Hai-O Energy had initially invested RM2.8 million as a start-up to set up the technology unit but hoped to get the government's support in developing this area.
"Hai-O as a group has been doing well financially. So we are looking to diversify from health products and we see the potential in this," he said.
Its managing director Ng Lip Yong said to further develop the finding, the firm has teamed up with China's Institute of Engineering Thermophysics (IET) from the Chinese Academy of Sciences.
The two parties will establish a Joint Laboratory on Innovative High Intensity Heat Transfer Technology, he said.
"We will be contributing RMB800,000 annually. It's a small sum but we are depending on them to create the theory for us," Ng said.
"We are also working with the IET to develop new applications from this and have identified several projects," he said after a signing ceremony between Hai-O Energy and IET in Kuala Lumpur today.
Present at the event were Minister in the Prime Minister's Department, Tan Sri Koh Tsu Koon, and former science, technology and environment minister, Datuk Seri Law Hieng Ding.
Ng said Hai-O Energy's technical director Suvit Lee had discovered the fourth phenomenon of heat transfer, which could ultimately be used for solar heating and air-conditioning systems, LED (light-emitting diode) streetlights and other applications.
"This is suitable for small areas which have high intensity heat such as laptops and air-conditioners," he said.
The other three conventional methods of heat transfer are through convection, conduction and radiation.
Ng said Hai-O Energy had initially invested RM2.8 million as a start-up to set up the technology unit but hoped to get the government's support in developing this area.
"Hai-O as a group has been doing well financially. So we are looking to diversify from health products and we see the potential in this," he said.
New mobile phone coming up
SEATTLE: Dell Inc. is working on a "smart" phone for AT&T that runs Google Inc.'s Android phone operating system, according to a newspaper report Wednesday.
The touch-screen phone could be ready early next year, The Wall Street Journal reported.
Representatives for Dell, AT&T Inc. and Google all declined to comment.
In the year since the economic meltdown, businesses and consumers have sharply cut back spending on Dell's main products - computers and servers.
Research groups IDC and Gartner Inc. have both predicted a year-over-year decline in PC shipments in 2009, which would be the first such drop since 2001.
Mobile is one area where Dell sees a chance to expand and diversify.
Dell hired Ron Garriques, a Motorola cell-phone division executive, to lead its consumer technology group in 2007.
That sparked rumors that the PC maker was readying a smart phone.
Garriques told analysts at a meeting in July that wireless carriers want a consumer "solution" from Dell, but didn't give any specific details about design, hardware or software plans.
In August, Dell showed off what appeared to be a smart phone at a Beijing event hosted by China's biggest cell phone carrier, China Mobile.
The Round Rock, Texas-based PC maker said it was a "proof of concept mobile device prototype."
Android, which is free for phone makers to use and modify, is increasingly making its way onto higher-end phones as a potential rival to Apple's Inc.'s iPhone.
AT&T is the iPhone's exclusive carrier in the U.S., but AT&T has not shied away from offering competing units, such as BlackBerry devices and phones that run Microsoft Corp.'s Windows Mobile software. - AP
The touch-screen phone could be ready early next year, The Wall Street Journal reported.
Representatives for Dell, AT&T Inc. and Google all declined to comment.
In the year since the economic meltdown, businesses and consumers have sharply cut back spending on Dell's main products - computers and servers.
Research groups IDC and Gartner Inc. have both predicted a year-over-year decline in PC shipments in 2009, which would be the first such drop since 2001.
Mobile is one area where Dell sees a chance to expand and diversify.
Dell hired Ron Garriques, a Motorola cell-phone division executive, to lead its consumer technology group in 2007.
That sparked rumors that the PC maker was readying a smart phone.
Garriques told analysts at a meeting in July that wireless carriers want a consumer "solution" from Dell, but didn't give any specific details about design, hardware or software plans.
In August, Dell showed off what appeared to be a smart phone at a Beijing event hosted by China's biggest cell phone carrier, China Mobile.
The Round Rock, Texas-based PC maker said it was a "proof of concept mobile device prototype."
Android, which is free for phone makers to use and modify, is increasingly making its way onto higher-end phones as a potential rival to Apple's Inc.'s iPhone.
AT&T is the iPhone's exclusive carrier in the U.S., but AT&T has not shied away from offering competing units, such as BlackBerry devices and phones that run Microsoft Corp.'s Windows Mobile software. - AP
RHB 8/10/2009 on Top Glove
Top Glove : Medi-Flex still in the red Outperform
Company Update
- Medi-Flex (60% owned by Top Glove), reported yesterday full-year FY09 core net loss of RM4.6m as
compared to a net loss of RM5.8m in FY08.
- The improvement in earnings was largely due to: 1) lower latex cost; 2) favourable exchange rate
movements; and 3) improvement in cost as the factory was relocated to Banting from a rented factory in
Klang during the year.
- HoH, revenue rose by 34.3% on the back of higher utilisation rates. 2H09's net loss, however, fell to
RM6.0m (1H09 net loss of RM2.5m) as a result of a RM4.0m write-off in inventory and property, plant and
equipment, mitigated by lower finance cost (-83.9% hoh) and lower associate losses (-48.4% hoh).
- Management did not provide any turnaround target for Medi-flex this time round but expects losses to
narrow further in 1H10.
- No change to our forecasts for Top Glove and fair value of RM8.80 (based on target CY10 PER of 15x).
Company Update
- Medi-Flex (60% owned by Top Glove), reported yesterday full-year FY09 core net loss of RM4.6m as
compared to a net loss of RM5.8m in FY08.
- The improvement in earnings was largely due to: 1) lower latex cost; 2) favourable exchange rate
movements; and 3) improvement in cost as the factory was relocated to Banting from a rented factory in
Klang during the year.
- HoH, revenue rose by 34.3% on the back of higher utilisation rates. 2H09's net loss, however, fell to
RM6.0m (1H09 net loss of RM2.5m) as a result of a RM4.0m write-off in inventory and property, plant and
equipment, mitigated by lower finance cost (-83.9% hoh) and lower associate losses (-48.4% hoh).
- Management did not provide any turnaround target for Medi-flex this time round but expects losses to
narrow further in 1H10.
- No change to our forecasts for Top Glove and fair value of RM8.80 (based on target CY10 PER of 15x).
Top Glove 4Q09 net profit surges to RM56.8m
UALA LUMPUR: TOP GLOVE CORPORATION BHD [] net profit for fourth quarter ended Aug 31, 2009 more than doubled to RM56.83 million from RM25.11 million a year ago due to better cost control, glove quality improvement and also stronger demand due to the Influenza A(H1N1) pandemic.
For the full year, its net profit surged to RM169.15 million on back revenue of RM1.53 billion, compared to net profit RM110.06 million on revenue RM1.38 billion last year.
Top Glove has proposed a final dividend of 9 sen per share and a special dividend of 6 sen.
Reviewing its performance, the glove maker said the continuing strong profit growth for FY09 showed that it was efficient and had adapted well to the challenging business environment and resulting from cost saving measures implemented at all factories, improvements in product quality, productivity, as well as aggressive marketing strategies to sustain its market leader position.
"With the group achieving strong profit growth for the financial year 2009, it will continue to be optimistic of its future outlook despite ongoing global economic challenges.
"With a large customer base spread over more than 180 countries worldwide and with a diversified range of good quality products, coupled with a team of dedicated employees, the group is confident of continuous growth and good profitable performance in next financial year," it said.
On its prospects and targets, Top Glove said it currently has 19 factories, 355 production lines with production capacity of 31.5 billion pieces of gloves per annum and 9,100 employees.
The company said it has more than 850 customers worldwide and exports to more than 180 countries.
The Group's Factory 19, which is located in Klang, started operation in early June 2009 and currently is in full operation to meet the increase in global demand and greater awareness in health care, it said.
It said Factory 20, which is located in Klang as well, has commenced the installation of 16 new and advanced glove production lines and is targeted to be completed by February 2010.
"In addition, the Group has planned CONSTRUCTION [] of Factory 21 which is also located in Klang. It will house 16 new and advanced glove production lines, with targeted completion by July 2010.
"In order to meet the increase demand of latex concentrate for its glove production, the group is in the process of installing additional nine latex concentrate centrifuge machines in Thailand, Factory 16L, with targeted completion by December 2009," it said.
For the full year, its net profit surged to RM169.15 million on back revenue of RM1.53 billion, compared to net profit RM110.06 million on revenue RM1.38 billion last year.
Top Glove has proposed a final dividend of 9 sen per share and a special dividend of 6 sen.
Reviewing its performance, the glove maker said the continuing strong profit growth for FY09 showed that it was efficient and had adapted well to the challenging business environment and resulting from cost saving measures implemented at all factories, improvements in product quality, productivity, as well as aggressive marketing strategies to sustain its market leader position.
"With the group achieving strong profit growth for the financial year 2009, it will continue to be optimistic of its future outlook despite ongoing global economic challenges.
"With a large customer base spread over more than 180 countries worldwide and with a diversified range of good quality products, coupled with a team of dedicated employees, the group is confident of continuous growth and good profitable performance in next financial year," it said.
On its prospects and targets, Top Glove said it currently has 19 factories, 355 production lines with production capacity of 31.5 billion pieces of gloves per annum and 9,100 employees.
The company said it has more than 850 customers worldwide and exports to more than 180 countries.
The Group's Factory 19, which is located in Klang, started operation in early June 2009 and currently is in full operation to meet the increase in global demand and greater awareness in health care, it said.
It said Factory 20, which is located in Klang as well, has commenced the installation of 16 new and advanced glove production lines and is targeted to be completed by February 2010.
"In addition, the Group has planned CONSTRUCTION [] of Factory 21 which is also located in Klang. It will house 16 new and advanced glove production lines, with targeted completion by July 2010.
"In order to meet the increase demand of latex concentrate for its glove production, the group is in the process of installing additional nine latex concentrate centrifuge machines in Thailand, Factory 16L, with targeted completion by December 2009," it said.
Wednesday, October 7, 2009
Uncle Sam.. chicken run lioa
Recently Uncle Sam got one share run chicken lioa the XXXX.. so sad la ...i also see it run... Damn next time i will be more focus... this year three time i run chicken....ayyoyoyo
Monday, October 5, 2009
Glove makers outperform market
KUALA LUMPUR: Glove manufacturers outperformed the market at midday on Tuesday, Sept 6, supported by strong gains in Top Glove as analysts see more upside for the sector.
However, the 30-stock FBM KLCI eased 1.71 points to 1,214.72 following the keen-jerk decline to KL Kepong, a component of the index. Turnover was 315.74 million shares valued at RM474.11 million. There were 265 gainers, 240 losers and 223 stocks unchanged.
Light crude oil fell just one cent to US$70.46 while crude palm oil futures lost RM24 to RM2,019.
At midday, Singapore's Straits Times Index rose 1.3% to 2,616.25, Hong Kong's Hang Seng Index edged up 0.7% to 20,568.77 and Japan's Nikkei 225 inched up 0.08% to 9,682.16.
Top Glove rose 36 sen to RM7/82, making it the top gainer. AmResearch reiterated its BUY call on the companywith higher fair value of RM8.45 per share, based on PE of 14 times CY10F earnings (previously RM8.30/share).
"Management guided that 4Q09F earnings are expected to outperform 3QFY09's RM42 million, during our discussion," said AmResearch.
Hartalega added 17 sen to RM5.33, Latexx 12 sen to RM2.22 and Latexx-WA 13 sen to RM1.72.
BAT, which raised its cigarette prices, rose 20 sen to RM45.10.
KLK was the top loser, down RM3.02 to RM13.98, giving up almost all its "erroneous" gains in the late trade the previous day. However, PPB which also has interests in PLANTATION []s and flour milling, added 14 sen to RM15.40.
However, the 30-stock FBM KLCI eased 1.71 points to 1,214.72 following the keen-jerk decline to KL Kepong, a component of the index. Turnover was 315.74 million shares valued at RM474.11 million. There were 265 gainers, 240 losers and 223 stocks unchanged.
Light crude oil fell just one cent to US$70.46 while crude palm oil futures lost RM24 to RM2,019.
At midday, Singapore's Straits Times Index rose 1.3% to 2,616.25, Hong Kong's Hang Seng Index edged up 0.7% to 20,568.77 and Japan's Nikkei 225 inched up 0.08% to 9,682.16.
Top Glove rose 36 sen to RM7/82, making it the top gainer. AmResearch reiterated its BUY call on the companywith higher fair value of RM8.45 per share, based on PE of 14 times CY10F earnings (previously RM8.30/share).
"Management guided that 4Q09F earnings are expected to outperform 3QFY09's RM42 million, during our discussion," said AmResearch.
Hartalega added 17 sen to RM5.33, Latexx 12 sen to RM2.22 and Latexx-WA 13 sen to RM1.72.
BAT, which raised its cigarette prices, rose 20 sen to RM45.10.
KLK was the top loser, down RM3.02 to RM13.98, giving up almost all its "erroneous" gains in the late trade the previous day. However, PPB which also has interests in PLANTATION []s and flour milling, added 14 sen to RM15.40.
BAT revises cigarette prices
For all smoker out there.. Please beware.. health is priceless.. Love ourselves and your family.. By the way the price for cigarette up already.....
KUALA LUMPUR: British American Tobacco (Malaysia) Bhd has revised the prices of its cigarettes after the government increased the excise duty on cigarettes by one sen per stick.
BAT said on Oct 5 the government had last week announced the higher excise duty and this had caused the company to also revise the prices. The prices came into effect on Monday, Oct 5.
A box of Dunhill Fine Cut 20s range will now cost RM10.00; Dunhill 20s range RM9.30; Dunhill 14s range RM6.90; Kent 20s range RM9.30; Kent 14s range RM6.90.
Pall Mall Plain 20s RM9.70; Pall Mall 20s range RM7.80; Pall Mall 18s range RM7.00; Pall Mall 14s range RM5.80; Pall Mall 25s range RM9.70; Benson & Hedges 20s RM9.30 and Benson & Hedges 14s RM6.90
KUALA LUMPUR: British American Tobacco (Malaysia) Bhd has revised the prices of its cigarettes after the government increased the excise duty on cigarettes by one sen per stick.
BAT said on Oct 5 the government had last week announced the higher excise duty and this had caused the company to also revise the prices. The prices came into effect on Monday, Oct 5.
A box of Dunhill Fine Cut 20s range will now cost RM10.00; Dunhill 20s range RM9.30; Dunhill 14s range RM6.90; Kent 20s range RM9.30; Kent 14s range RM6.90.
Pall Mall Plain 20s RM9.70; Pall Mall 20s range RM7.80; Pall Mall 18s range RM7.00; Pall Mall 14s range RM5.80; Pall Mall 25s range RM9.70; Benson & Hedges 20s RM9.30 and Benson & Hedges 14s RM6.90
Hwang-db 5/10/2009
Highlights
British American Tobacco (RM44.94; Hold; Price Target:
RM44.60; ROTH MK)
Early excise tax hike a surprise
• Mild 5.6% excise tax hike is “good news” to legal
players; immaterial impact on FY09-11F earnings
• But combating illicit cigarette players remains a
challenge
• Maintain Hold with lower TP of RM44.60. Still a good
dividend stock with 5-6% net yield.
Top Glove Corporation (RM7.16; Buy; Price Target:
RM8.50; TOPG MK)
Expect a solid 4Q09
• Rubber gloves demand remains resilient; capacity
utilization raised to 90% (3Q09: 80%)
• ASP raised by 7-10% to reflect higher latex costs; 4Q09
EBITDA margin should hold up at 19%
• Maintain Buy; TP raised to RM8.50.
British American Tobacco (RM44.94; Hold; Price Target:
RM44.60; ROTH MK)
Early excise tax hike a surprise
• Mild 5.6% excise tax hike is “good news” to legal
players; immaterial impact on FY09-11F earnings
• But combating illicit cigarette players remains a
challenge
• Maintain Hold with lower TP of RM44.60. Still a good
dividend stock with 5-6% net yield.
Top Glove Corporation (RM7.16; Buy; Price Target:
RM8.50; TOPG MK)
Expect a solid 4Q09
• Rubber gloves demand remains resilient; capacity
utilization raised to 90% (3Q09: 80%)
• ASP raised by 7-10% to reflect higher latex costs; 4Q09
EBITDA margin should hold up at 19%
• Maintain Buy; TP raised to RM8.50.
Bursa removes pre-closing and trading-at last from morning session
KUALA LUMPUR: Bursa Malaysia's two features -- pre-closing and trading-at-last -- will be removed from the morning session with effect from Oct 26.
The stock exchange operator said on Monday, Oct 5 the removal of the two features would result in additional 15 minutes of continuous trading. These changes will take effect on Oct 26.
It said this was part of the enhancements of its trading phases for the morning session, from 8:30am to 12:30pm.
However, Bursa Malaysia said the features will be retained for the afternoon trading session.
The pre-closing phase is intended to mitigate price manipulation and is especially suited for the end of a trading day.
The Trading-At-Last feature, which consists of the last 10 minutes of a trading day, will provide traders with the opportunity to trade at the closing price of a stock.
Bursa Malaysia chief executive officer, Datuk Yusli Mohamed Yusoff said: "This improvement is made in consultation with the market participants who echoed their support in making trading experience seamless and opportunities continuous for investors. Our priority is to facilitate a trading platform that gives accessibility in trading while maintaining price transparency and efficiency."
The stock exchange operator said on Monday, Oct 5 the removal of the two features would result in additional 15 minutes of continuous trading. These changes will take effect on Oct 26.
It said this was part of the enhancements of its trading phases for the morning session, from 8:30am to 12:30pm.
However, Bursa Malaysia said the features will be retained for the afternoon trading session.
The pre-closing phase is intended to mitigate price manipulation and is especially suited for the end of a trading day.
The Trading-At-Last feature, which consists of the last 10 minutes of a trading day, will provide traders with the opportunity to trade at the closing price of a stock.
Bursa Malaysia chief executive officer, Datuk Yusli Mohamed Yusoff said: "This improvement is made in consultation with the market participants who echoed their support in making trading experience seamless and opportunities continuous for investors. Our priority is to facilitate a trading platform that gives accessibility in trading while maintaining price transparency and efficiency."
Saturday, October 3, 2009
Stocks to watch: Jetson, tobacco, HeveaBoard, MAS
KUALA LUMPUR: Investors will have to brace for a volatile session on Monday, Oct 5 following the weak closing on Wall Street as weak jobs data showed the US economic recovery would be less robust than expected.
Key regional markets are expected to be lacklustre after the Dow Jones industrial average fell 0.23 percent, to close at 9,487.67. The S&P 500 Index dropped 0.45% to 1,025.21. The Nasdaq Composite Index lost 0.46% to 2,048.11.
Stocks to watch on Monday include KUMPULAN JETSON BHD [], tobacco companies, SALCON BHD [], MALAYSIAN AIRLINE SYSTEM BHD [] (MAS) and Hock Lok Siew Corp.
The securities of Jetson fell on Friday after shareholders rejected the conditional takeover bid by S M Nasarudin and S M Faliq. The minority shareholders viewed their RM1 per share offer price for the remaining shares in the company as too low. Both are sons of Naza group founder, the late Tan Sri Nasimuddin SM Amin.
However, both brothers should be unfazed by the rejection, as the fall in the prices provide them an opportunity to pick up more shares from the open market. They are also already in control of the company and they have more plans in store for for Jetson.
Tobacco stocks should see some trading interest after the excise duty for tobacco was increased by one sen per stick or 5.6% to 19 sen per stick, which came into effect on Thursday.
AmResearch said it was surprised as to the timing of increase, particularly given that Budget 2010 proposals were set to be tabled on Oct 23.
"Though both tobacco manufacturers BAT and JTI have not raised selling prices at this juncture, we reckon a revised pricing structure could be implemented by end of next week. Based on previous excise duty hikes, there is a two to three day lag.
"While this development is negative, our concern lies in the quantum of hike in regards to a possible further increase in excise duty during Budget. We are keeping our estimates at this juncture, pending further details on manufacturers' reaction to the hike," said AmResearch.
Meanwhile, HEVEABOARD BHD [] has proposed a renounceable rights issue of up to 42.66 million new warrants and a restricted issue of up to 12.53 million new warrants to the holders of unexercised 2004/2009 warrants on Dec 31, 2009 on the basis of one new warrant for every three unexercised 2004/2009 Warrants held on the expiry Date.
The corporate exercise will only enable the company to raise up to RM426,667 but this would not incur interest cost, as compared to bank borrowings and to improve the gearing of the group.
HeveaBoard said the proposed rights issue would enable shareholders increase their equity participation in the company while the proposed restricted issue will allow the entitled warrants holders, whose existing warrants are currently out-of-the-money, with an opportunity to further participate in the equity of the company.
Malaysian Airline System Bhd (MAS) hopes to return to operating profit by 2010 depending on the carriers turnaround plan and global economic conditions, says its CEO, Tengku Datuk Azmil Zahruddin.
MAS will continue its cost reduction programme, which has managed to save RM2 billion in the last three years and targets saving another RM700 million for 2009, said Azmil.
Bursa Malaysia Securities Bhd queried Hock Lok Siew Corp Bhd (HLS Corp) over the high daily of shares traded recently. The shares closed four sen higher to 32 sen with 14.5 million shares done.
However, the loudspeaker manufacturer, replied that to the best of its knowledge,it was unaware of any factors that may have contributed to the unusual market activity. HLS Corp is also attracting interest as it invests RM2.6 million in quoted securities.
Key regional markets are expected to be lacklustre after the Dow Jones industrial average fell 0.23 percent, to close at 9,487.67. The S&P 500 Index dropped 0.45% to 1,025.21. The Nasdaq Composite Index lost 0.46% to 2,048.11.
Stocks to watch on Monday include KUMPULAN JETSON BHD [], tobacco companies, SALCON BHD [], MALAYSIAN AIRLINE SYSTEM BHD [] (MAS) and Hock Lok Siew Corp.
The securities of Jetson fell on Friday after shareholders rejected the conditional takeover bid by S M Nasarudin and S M Faliq. The minority shareholders viewed their RM1 per share offer price for the remaining shares in the company as too low. Both are sons of Naza group founder, the late Tan Sri Nasimuddin SM Amin.
However, both brothers should be unfazed by the rejection, as the fall in the prices provide them an opportunity to pick up more shares from the open market. They are also already in control of the company and they have more plans in store for for Jetson.
Tobacco stocks should see some trading interest after the excise duty for tobacco was increased by one sen per stick or 5.6% to 19 sen per stick, which came into effect on Thursday.
AmResearch said it was surprised as to the timing of increase, particularly given that Budget 2010 proposals were set to be tabled on Oct 23.
"Though both tobacco manufacturers BAT and JTI have not raised selling prices at this juncture, we reckon a revised pricing structure could be implemented by end of next week. Based on previous excise duty hikes, there is a two to three day lag.
"While this development is negative, our concern lies in the quantum of hike in regards to a possible further increase in excise duty during Budget. We are keeping our estimates at this juncture, pending further details on manufacturers' reaction to the hike," said AmResearch.
Meanwhile, HEVEABOARD BHD [] has proposed a renounceable rights issue of up to 42.66 million new warrants and a restricted issue of up to 12.53 million new warrants to the holders of unexercised 2004/2009 warrants on Dec 31, 2009 on the basis of one new warrant for every three unexercised 2004/2009 Warrants held on the expiry Date.
The corporate exercise will only enable the company to raise up to RM426,667 but this would not incur interest cost, as compared to bank borrowings and to improve the gearing of the group.
HeveaBoard said the proposed rights issue would enable shareholders increase their equity participation in the company while the proposed restricted issue will allow the entitled warrants holders, whose existing warrants are currently out-of-the-money, with an opportunity to further participate in the equity of the company.
Malaysian Airline System Bhd (MAS) hopes to return to operating profit by 2010 depending on the carriers turnaround plan and global economic conditions, says its CEO, Tengku Datuk Azmil Zahruddin.
MAS will continue its cost reduction programme, which has managed to save RM2 billion in the last three years and targets saving another RM700 million for 2009, said Azmil.
Bursa Malaysia Securities Bhd queried Hock Lok Siew Corp Bhd (HLS Corp) over the high daily of shares traded recently. The shares closed four sen higher to 32 sen with 14.5 million shares done.
However, the loudspeaker manufacturer, replied that to the best of its knowledge,it was unaware of any factors that may have contributed to the unusual market activity. HLS Corp is also attracting interest as it invests RM2.6 million in quoted securities.
SapuraAcergy bags US$170m Aussie deal
APURAACERGY Sdn Bhd (SASB) has been awarded a US$170 million (RM600 million) contract to transport and install offshore facilities in Australia.
SASB is a joint-venture company equally owned by SapuraCrest Petroleum Bhd and Acergy S.A. The contract was awarded by Apache Energy Ltd.
The contract involving works in the Devil Creek Development Project (DCDP) entails transportation and installation of approximately 91km of 16-inch rigid pipeline including a shallow water beach approach, subsea tie-ins and stabilisation works together with a wellhead platform of 1,700-tonne four leg jacket and a 450 tonne topside processing module.
It would be undertaken in water depths of approximately 60 metres.
"This contract award is significant as it establishes SASB's presence in the promising Australian oil and gas market," SapuraCrest executive vice-chairman and chairman of SASB Datuk Shahril Shamsuddin said in Perth after signing of the contract award yesterday.
The DCDP has been initiated to recover and process the gas reserves from the Reindeer gas field located 80km northwest of the port of Dampier, a major industrial port in the north-west of Western Australia.
Engineering and project preparations will commence immediately and offshore installation is scheduled to commence in late 2010 using the Sapura 3000, SASB's state of the art dynamic positioning heavy lift and pipelay vessel and project specific third party support vessels. The job is scheduled for completion by early 2011.
Shahril said the group was making good progress in securing international projects and that the new contract has boosted SapuraCrest's order book to RM7 billion.
SASB is a joint-venture company equally owned by SapuraCrest Petroleum Bhd and Acergy S.A. The contract was awarded by Apache Energy Ltd.
The contract involving works in the Devil Creek Development Project (DCDP) entails transportation and installation of approximately 91km of 16-inch rigid pipeline including a shallow water beach approach, subsea tie-ins and stabilisation works together with a wellhead platform of 1,700-tonne four leg jacket and a 450 tonne topside processing module.
It would be undertaken in water depths of approximately 60 metres.
"This contract award is significant as it establishes SASB's presence in the promising Australian oil and gas market," SapuraCrest executive vice-chairman and chairman of SASB Datuk Shahril Shamsuddin said in Perth after signing of the contract award yesterday.
The DCDP has been initiated to recover and process the gas reserves from the Reindeer gas field located 80km northwest of the port of Dampier, a major industrial port in the north-west of Western Australia.
Engineering and project preparations will commence immediately and offshore installation is scheduled to commence in late 2010 using the Sapura 3000, SASB's state of the art dynamic positioning heavy lift and pipelay vessel and project specific third party support vessels. The job is scheduled for completion by early 2011.
Shahril said the group was making good progress in securing international projects and that the new contract has boosted SapuraCrest's order book to RM7 billion.
Friday, October 2, 2009
Maxis IPO overview by KAF
The sole shareholder of Maxis Bhd is offering for sale 30% stake in
an IPO to investors. Maxis Bhd will consist of just the domestic
cellular operation. Given the stable and mature state of the cellular
industry, the key investment proposition of Maxis Bhd will be a
dividend yield play with its 75% payout policy.
ISSUES TO CONSIDER
�� Maxis Communications Bhd (MCB) first became a public listed
company in July 2002 but through a voluntary general offer by its
major shareholder, turned private again in June 2007.
�� MCB is re-listing Maxis Bhd through an IPO, offering 2.25bn shares
with 92% of this for institutional investors with the balance for retail.
�� We have done a peer comparison in valuation to estimate a suitable
pricing range for Maxis Bhd’s IPO. In the exercise we use PER,
EV/EBITDA and dividend yield as the valuation matrix. The peers
are DiGi and Telekom as we believe both are the most suitable
comparisons for Maxis Bhd given that all three companies are
operating in the domestic domain.
�� We find that DiGi gives a tighter and more suitable range of RM3.90
to RM4.66 for Maxis Bhd while Telekom is larger at RM2.19 to
RM5.17.
ACTIONABLE IDEAS
�� The IPO offer price will be done through a book building exercise. A
suitable range is RM3.90 to RM5.17.
KEY CATALYSTS
�� Dividend payout policy increases from the 75% commitment.
KEY RISKS
�� Disruption in industry stability by new entrants or by incumbents
trying to win market share through aggressive price undercutting.
PRELIMINARY VALUATION
Given that Maxis Bhd will be a sole domestic operator, peer comparisons with DiGi.Com
Bhd and Telekom Malaysia Bhd are appropriate. From an operational perspective, DiGi
is a better match with Maxis Bhd given that both are cellular operators. There are two key
valuation multiple for peer comparison, namely PER and EV/EBITDA. The latter is
applicable given that all three companies do not have significant associates or JVs
contributions.
We believe Axiata is not as suitable for peer valuation comparison as it has significant
overseas influences. Its Indonesian operating company, XL, is a large contributor to
Axiata and distorts the profile of Axiata through additional country risk. It also has
operating exposures in Bangladesh, Sri Lanka, Thailand, Cambodia and Singapore.
PER
On PER, Telekom and DiGi trade between 15x and 17x 2009 earnings. In 1H2009, Maxis
Bhd registers RM1.14bn in PAT, which translates to an EPS of 15.2 sen. On an
annualized basis, this translates to a pricing range of RM4.56 to RM5.17 for Maxis Bhd.
EV/EBITDA
On EV/EBITDA, Telekom and DiGi provide a 5x to 8x range. Again annualizing Maxis
Bhd’s RM2.15bn 1H2009 EBITDA, this gives an equity value of RM2.19 to RM3.90, after
subtracting net debt of more than RM5bn.
DIVIDEND YIELD AS A GAUGE
Maxis Bhd has committed to a 75% dividend payout policy after listing. Keeping in mind
that the cellular industry is reaching maturity and it is not difficult to expect Maxis Bhd to
be a dividend yield play. The profile is very similar to DiGi where cash flows and earnings
are stable hence further strengthening the dividend appeal.
As such, we believe that looking at peer comparison from a dividend yield perspective is
also suitable. For instance, Telekom, which is seeing contraction in earnings but has
committed to a minimum dividend policy, continues to see a stable share price despite
deteriorating fundamentals.
Base on the same 75% dividend payout policy, DiGi gives 4.9% net yield in 2009.
Meanwhile, Telekom gives an 6.3% net yield base on its fixed RM700m payout. Applying
these to Maxis Bhd gives a price range of RM3.62 to RM4.66.
FINAL WORDS
In all cases, the implied pricing range for Maxis Bhd taking DiGi’s valuations give a tighter
range of RM3.90 to RM4.66 while Telekom’s range is larger at RM2.19 to RM5.17.
Ignoring the out lying RM2.19, a suitable range for the Maxis Bhd pricing could be
RM3.90 to RM5.17. Of course, these have to be cross checked with a DCF valuation,
which is the most suitable valuation methodology for cellular companies. This will be
done when our financial forecasts are up for Maxis Bhd.
an IPO to investors. Maxis Bhd will consist of just the domestic
cellular operation. Given the stable and mature state of the cellular
industry, the key investment proposition of Maxis Bhd will be a
dividend yield play with its 75% payout policy.
ISSUES TO CONSIDER
�� Maxis Communications Bhd (MCB) first became a public listed
company in July 2002 but through a voluntary general offer by its
major shareholder, turned private again in June 2007.
�� MCB is re-listing Maxis Bhd through an IPO, offering 2.25bn shares
with 92% of this for institutional investors with the balance for retail.
�� We have done a peer comparison in valuation to estimate a suitable
pricing range for Maxis Bhd’s IPO. In the exercise we use PER,
EV/EBITDA and dividend yield as the valuation matrix. The peers
are DiGi and Telekom as we believe both are the most suitable
comparisons for Maxis Bhd given that all three companies are
operating in the domestic domain.
�� We find that DiGi gives a tighter and more suitable range of RM3.90
to RM4.66 for Maxis Bhd while Telekom is larger at RM2.19 to
RM5.17.
ACTIONABLE IDEAS
�� The IPO offer price will be done through a book building exercise. A
suitable range is RM3.90 to RM5.17.
KEY CATALYSTS
�� Dividend payout policy increases from the 75% commitment.
KEY RISKS
�� Disruption in industry stability by new entrants or by incumbents
trying to win market share through aggressive price undercutting.
PRELIMINARY VALUATION
Given that Maxis Bhd will be a sole domestic operator, peer comparisons with DiGi.Com
Bhd and Telekom Malaysia Bhd are appropriate. From an operational perspective, DiGi
is a better match with Maxis Bhd given that both are cellular operators. There are two key
valuation multiple for peer comparison, namely PER and EV/EBITDA. The latter is
applicable given that all three companies do not have significant associates or JVs
contributions.
We believe Axiata is not as suitable for peer valuation comparison as it has significant
overseas influences. Its Indonesian operating company, XL, is a large contributor to
Axiata and distorts the profile of Axiata through additional country risk. It also has
operating exposures in Bangladesh, Sri Lanka, Thailand, Cambodia and Singapore.
PER
On PER, Telekom and DiGi trade between 15x and 17x 2009 earnings. In 1H2009, Maxis
Bhd registers RM1.14bn in PAT, which translates to an EPS of 15.2 sen. On an
annualized basis, this translates to a pricing range of RM4.56 to RM5.17 for Maxis Bhd.
EV/EBITDA
On EV/EBITDA, Telekom and DiGi provide a 5x to 8x range. Again annualizing Maxis
Bhd’s RM2.15bn 1H2009 EBITDA, this gives an equity value of RM2.19 to RM3.90, after
subtracting net debt of more than RM5bn.
DIVIDEND YIELD AS A GAUGE
Maxis Bhd has committed to a 75% dividend payout policy after listing. Keeping in mind
that the cellular industry is reaching maturity and it is not difficult to expect Maxis Bhd to
be a dividend yield play. The profile is very similar to DiGi where cash flows and earnings
are stable hence further strengthening the dividend appeal.
As such, we believe that looking at peer comparison from a dividend yield perspective is
also suitable. For instance, Telekom, which is seeing contraction in earnings but has
committed to a minimum dividend policy, continues to see a stable share price despite
deteriorating fundamentals.
Base on the same 75% dividend payout policy, DiGi gives 4.9% net yield in 2009.
Meanwhile, Telekom gives an 6.3% net yield base on its fixed RM700m payout. Applying
these to Maxis Bhd gives a price range of RM3.62 to RM4.66.
FINAL WORDS
In all cases, the implied pricing range for Maxis Bhd taking DiGi’s valuations give a tighter
range of RM3.90 to RM4.66 while Telekom’s range is larger at RM2.19 to RM5.17.
Ignoring the out lying RM2.19, a suitable range for the Maxis Bhd pricing could be
RM3.90 to RM5.17. Of course, these have to be cross checked with a DCF valuation,
which is the most suitable valuation methodology for cellular companies. This will be
done when our financial forecasts are up for Maxis Bhd.
Malaysia’s broadband quality is below par, says Oxford study By Leslie Lau
You are damn right...I do agree Malaysia Broadband is still lack behind in term of quality and speed...
KUALA LUMPUR, Oct 2 – Malaysia was ranked a poor 48 out of 66 countries for Internet broadband quality in a study conducted by Oxford University and sponsored by Cisco.
The global study on broadband quality conducted by Oxford’s Said Business School listed Malaysia among countries which had Internet speeds which were “below today’s applications threshold.”
Malaysia is listed in the same category but above countries like the United Arab Emirates, Philippines, Pakistan, Morocco, Vietnam and Indonesia. China, Malta, Brazil and Thailand are among countries just ahead of Malaysia in broadband quality but still in the same low category.
Countries like Singapore, Britain, Australia, Spain, Turkey and the Ukraine were listed above Malaysia as having Internet speeds “meeting needs of today’s applications.”
Switzerland, the United States, Russia, Taiwan and Hong Kong “comfortably enjoy today’s applications. Crucially, Korea, Japan, Sweden, Lithuania, Bulgaria, Latvia, Netherlands, Denmark and Romania were identified as countries with broadband speeds that were “ready for tomorrow.”
The study was conducted between May and July this year and Broadband Quality Scores (BQS) were awarded based on 24 million records sourced from speed tests.
A similar study conducted last year established that download speeds of 3.75 Mbps and upload of 1 Mbps was the quality requirement needed for today’s applications such as social networking, video steaming, video chatting and file sharing.
For what was classified as “tomorrow’s requirements” speeds of 11.25 Mbps for downloads and 5 Mbps for uploads was needed for visual networking, HD video streaming, consumer telepresence, large file sharing and HD IPTV applications.
According to the study, the research team had found that broadband quality was linked to social and economic benefits and that countries with high broadband quality have broadband on their national agenda.
In a statement earlier today, the DAP’s Lim Kit Siang described the study as confirmation of Malaysia’s unchecked plunge in international IT competitiveness.
“Internationally, broadband quality has moved from one of penetration, i.e. who had broadband connection and who did not, to broadband speed but Malaysia is till bogged down in the initial stage.
“Some six months ago, when Datuk Dr Rais Yatim was also appointed Communications Minister apart from his other portfolios of Information, Culture and Arts, I had called on him to give top priority to turn Malaysia into a broadband power, both in broadband penetration rate as well as in broadband speed if Malaysia is to enhance its competitiveness to take its rightful place in the global arena.
“I had asked what Malaysia’s national average broadband speed was, because nobody was talking about 2Mbps – we are lucky if we get 512 or 256kbps without disruption!”
Malaysians in selected areas will get access to high-speed broadband only by the first quarter of next year.
Residents of Taman Tun Dr Ismail, Bangsar, both in Kuala Lumpur, Subang Jaya and Shah Alam have been promised broadband speeds of 10 Mbps and above under the High-Speed Broadband (HSBB) project.
Residents in high-worth economic zones such as the rest of the Klang Valley and Iskandar Malaysia are expected to get the service later with 1.3 million households expected to have access by 2012.
The HSBB project is a public-private partnership between Telekom Malaysia and the government. Telekom is expected to invest RM8.9 billion of its own funds while the government will put in RM2.4 billion.
Telekom has so far claimed RM290 million from the government for work done.
Malaysia currently lags behind advanced countries in terms of quality and affordability of its broadband offerings, which has been confirmed by the Oxford University study.
While some countries such as Japan, Hong Kong, South Korea, Sweden and Finland have been enjoying speeds up to 100 Mbps for several years now, most Malaysian still make do with speeds of 1 Mbps or less.
Recently, Singapore, China and Australia have also upped the stakes in this strategic sector and announced massive initiatives to wire up their countries with fibre optics.
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