NEW YORK: The Dubai debt crisis roiled world markets again Friday as fears of debt defaults sparked concern that a recovery from global recession could stall.
“Dubai’s request late Wednesday to delay debt payments rattled markets around the world and raised concerns that defaults may stall a global recovery,” said Scott Marcouiller of Wells Fargo Advisors.
On Wall Street, the Dow Jones Industrial Average fell 154.48 points (1.48 per cent) to 10,309.92 as the market reopened from Thursday’s Thanksgiving holiday.
All 30 Dow components ended in the red; the blue-chip index had closed Wednesday at its highest level since October 2008.
“The news has been rattling world markets since Wednesday night, and US equities fell victim to the spreading panic first thing this morning,” said Elizabeth Harrow of Schaeffer’s Investment Research.
The tech-heavy Nasdaq composite slid 37.61 points (1.73 per cent) to 2,138.44 and the broad-market Standard & Poor’s 500 retreated 19.14 points (1.72 per cent) to 1,091.49.
The Dow pared sharp opening losses of more than 200 points as investors digested news that Dubai World, the city state’s flagship conglomerate, is seeking a six-month moratorium on repayment of US$59 billion in debts.
“Dubai World, the de facto sovereign fund for the desert nation, has essentially defaulted on a large part of its debt,” said Douglas McIntyre of 24/7 WallSt.com.
The announcement “is sparking concerns about the financial health of the emerging markets and the impact on developed nations’ exposure to the debt of Dubai, which surged as the region has gone through a massive construction boom in the past few years,” Charles Schwab & Co analysts said in a client note.
The Dubai grenade rocked Asian markets for a second day, with Hong Kong slumping almost five per cent by the close. Tokyo dived 3.22 per cent, hit also by the yen gaining against the dollar which hurts Japanese exporters.
European markets rebounded from sharp opening losses. London’s FTSE 100 index closed 0.99 per cent higher at 5,245.73 points after losing more than three per cent on Thursday along with Frankfurt and Paris.
Frankfurt’s DAX rose 1.27 per cent to 5,685.61 points and the Paris CAC 40 gained 1.15 per cent at 3,721.45.
The dollar struck a 14-year low against the yen but was broadly higher against other currencies amid a flight from risk.
Wall Street volumes were light as many traders were absent for the holiday-shortened session. No economic reports were released.
The two foreign banks with the heaviest exposure to Dubai — HSBC and Standard Chartered — saw their shares fall sharply in Hong Kong before recovering in London.
HSBC closed 0.10 per cent higher and Standard Chartered gained 0.40 per cent.
Earlier in Hong Kong HSBC dropped 7.6 per cent and Standard Chartered fell 8.6 per cent.
Sunday, November 29, 2009
Tuesday, November 24, 2009
IJM Corp 2Q net profit falls 24% y-o-y
KUALA LUMPUR : IJM Corp Bhd's second quarter (2Q) net profit declined at a yearly pace of 23.7% to RM67.06 million from RM87.92 million as the diversified entity raked in less income from its oil palm PLANTATION [] unit and sold less building materials.
Revenue during the quarter fell 9.5% to RM1.05 billion from RM1.16 billion, the company told the exchange today.
The cumulative first-half net profit dipped 23.1% to RM137.89 million from RM179.24 million, while revenue was down 7.1% to RM2.21 billion from RM2.38 billion.
"The business environment for the group’s activities will remain challenging in a volatile market where input costs continue to fluctuate amid global uncertainties.
"Despite such a challenging environment, the performance of the group’s CONSTRUCTION [] division is expected to improve as legacy projects with low margins will near completion and new projects are expected to contribute positively towards margins," said IJM, which also develops PROPERTIES [].
Looking ahead, the company expects its building material sales to increase as the construction sector recovers. This is in tandem with the implementation of various public infrastructure projects that have been delayed by the global economic downturn.
Meanwhile its plantation unit is anticipated to perform better in the coming financial year with the expectations of higher oil palm outputs, and better prices for the commodity.
Revenue during the quarter fell 9.5% to RM1.05 billion from RM1.16 billion, the company told the exchange today.
The cumulative first-half net profit dipped 23.1% to RM137.89 million from RM179.24 million, while revenue was down 7.1% to RM2.21 billion from RM2.38 billion.
"The business environment for the group’s activities will remain challenging in a volatile market where input costs continue to fluctuate amid global uncertainties.
"Despite such a challenging environment, the performance of the group’s CONSTRUCTION [] division is expected to improve as legacy projects with low margins will near completion and new projects are expected to contribute positively towards margins," said IJM, which also develops PROPERTIES [].
Looking ahead, the company expects its building material sales to increase as the construction sector recovers. This is in tandem with the implementation of various public infrastructure projects that have been delayed by the global economic downturn.
Meanwhile its plantation unit is anticipated to perform better in the coming financial year with the expectations of higher oil palm outputs, and better prices for the commodity.
Malaysia central bank holds rates, sees ‘modest’ inflation
KUALA LUMPUR, Nov 24 — Malaysia’s central bank held interest rates steady at 2.0 per cent today for a sixth straight time, as expected, and said inflation was expected to remain modest in 2010 even as the economy revives.
Analysts said that the central bank appeared in no hurry to hike rates, in sharp contrast with some other central banks in region, and the bank said current monetary policy was “appropriate” and would continue to support economic activity.
The decision comes as Asia’s third-most trade dependent economy is recovering from an economic slump triggered by the global financial crisis. A pick-up in domestic demand helped the economy to contract less-than-expected 1.2 per cent in the third quarter.
“If there are any rate hikes, we think it will be in the second half of next year in the small magnitude of 25 to 50 basis points,” said Julia Goh, an economist with CIMB in Kuala Lumpur.
The Malaysian government kicked in with a RM67 billion ringgit stimulus package to cushion the impact of global slowdown, which the central bank said was helping the recovery.
The central bank noted that the private consumption and public sector spending would lend support to the economic growth going forward. While that was expected to turn inflation positive in the coming months, the central bank was not alarmed about price pressures building up in the economy.
“In the absence of further unanticipated price adjustments and external influences, inflation is expected to remain modest in 2010,” the central bank said in a statement.
The central bank said it would only hold six rate setting meetings from 2010 onwards, down from eight up until now, in accordance with a new act.
“As price pressures and inflation expectations are expected to remain contained going forward, the assessment is that the current monetary policy stance is appropriate and will continue to provide support for economic activity,” the statement added.
A Reuters poll showed 15 economists saying rates would be held at 2 per cent with the earliest sign of a hike coming after the first half of next year.
The central bank has cut the benchmark OPR by a total of 150 basis points since November in an attempt to reduce the impact of the global downturn on the local economy.
It stopped easing in April and has repeatedly said that rates are “appropriate” and that rate cuts had been “frontloaded”.
Inflation is not a worry as consumer prices have turned negative. It was a negative 2 per cent in September and inflation is not expected to return until the fourth quarter. — Reuters
Analysts said that the central bank appeared in no hurry to hike rates, in sharp contrast with some other central banks in region, and the bank said current monetary policy was “appropriate” and would continue to support economic activity.
The decision comes as Asia’s third-most trade dependent economy is recovering from an economic slump triggered by the global financial crisis. A pick-up in domestic demand helped the economy to contract less-than-expected 1.2 per cent in the third quarter.
“If there are any rate hikes, we think it will be in the second half of next year in the small magnitude of 25 to 50 basis points,” said Julia Goh, an economist with CIMB in Kuala Lumpur.
The Malaysian government kicked in with a RM67 billion ringgit stimulus package to cushion the impact of global slowdown, which the central bank said was helping the recovery.
The central bank noted that the private consumption and public sector spending would lend support to the economic growth going forward. While that was expected to turn inflation positive in the coming months, the central bank was not alarmed about price pressures building up in the economy.
“In the absence of further unanticipated price adjustments and external influences, inflation is expected to remain modest in 2010,” the central bank said in a statement.
The central bank said it would only hold six rate setting meetings from 2010 onwards, down from eight up until now, in accordance with a new act.
“As price pressures and inflation expectations are expected to remain contained going forward, the assessment is that the current monetary policy stance is appropriate and will continue to provide support for economic activity,” the statement added.
A Reuters poll showed 15 economists saying rates would be held at 2 per cent with the earliest sign of a hike coming after the first half of next year.
The central bank has cut the benchmark OPR by a total of 150 basis points since November in an attempt to reduce the impact of the global downturn on the local economy.
It stopped easing in April and has repeatedly said that rates are “appropriate” and that rate cuts had been “frontloaded”.
Inflation is not a worry as consumer prices have turned negative. It was a negative 2 per cent in September and inflation is not expected to return until the fourth quarter. — Reuters
Wednesday, November 18, 2009
Axiata, Huawei in strategic partnership
KUALA LUMPUR: Axiata Group Bhd and China's next-generation telecommunication solutions providers Huawei Technologies Co. Ltd are teaming up to search for optimal and mutually beneficial solutions.
Axiata said on Wednesday, Nov 18 an MoU was signed for the proposed collaboration to exploring innovative solutions in TECHNOLOGY [], financing and procurement.
It said the MoU with Huawei, which is a large supplier of telecommunications equipment to Axiata Group, was to improve Axiata's revenue stream in the longer term.
This would be by using more network traffic simulation and faster time-to-market, while reducing costs for the Axiata Group through significant savings in terms of capital and operating expenditures.
"The Axiata-Huawei strategic cooperation will also have the added benefit of realising business efficiencies and competitive advantage through cash flow improvement, risk sharing and timely purchasing.
"In addition, the collaboration with Huawei, particularly on the financing facilities, would enable Axiata to gain a competitive advantage from having access to financing facilities of lower financing cost, innovative financing structures and flexible financing tenure," it added.
Axiata said the emphasis would be to streamline Axiata's procurement process by using global frame agreements between Huawei and the Axiata group which will govern the supply of products and services by Huawei.
It added the MoU was also to look into arranging financing options such as export credit agency backed facility, vendor financing facility, fixed term non-cancellable lease structure and direct loan facility at favourable financing terms for procurement of equipment by Axiata Group from Huawei.
Axiata said the non-binding MOU is valid for a period of two years from the abovementioned date unless mutually terminated.
Axiata said on Wednesday, Nov 18 an MoU was signed for the proposed collaboration to exploring innovative solutions in TECHNOLOGY [], financing and procurement.
It said the MoU with Huawei, which is a large supplier of telecommunications equipment to Axiata Group, was to improve Axiata's revenue stream in the longer term.
This would be by using more network traffic simulation and faster time-to-market, while reducing costs for the Axiata Group through significant savings in terms of capital and operating expenditures.
"The Axiata-Huawei strategic cooperation will also have the added benefit of realising business efficiencies and competitive advantage through cash flow improvement, risk sharing and timely purchasing.
"In addition, the collaboration with Huawei, particularly on the financing facilities, would enable Axiata to gain a competitive advantage from having access to financing facilities of lower financing cost, innovative financing structures and flexible financing tenure," it added.
Axiata said the emphasis would be to streamline Axiata's procurement process by using global frame agreements between Huawei and the Axiata group which will govern the supply of products and services by Huawei.
It added the MoU was also to look into arranging financing options such as export credit agency backed facility, vendor financing facility, fixed term non-cancellable lease structure and direct loan facility at favourable financing terms for procurement of equipment by Axiata Group from Huawei.
Axiata said the non-binding MOU is valid for a period of two years from the abovementioned date unless mutually terminated.
Sunday, November 15, 2009
Affin, Hong Leong group, Boustead in focus
KUALA LUMPUR: Shares of Affin Holdings, Boustead and companies in the Hong Leong group rose in early trade on Monday, Nov 16 on market talk of a merger between Hong Leong Bank and Affin Bank.
At 10am, the FBM KLCI rose 4.31 points to 1,275.25. Turnover was 228.04 million shares valued at RM161.05 million. There were 202 gainers, 141 losers and 146 stocks unchanged.
Among key regional markets, Hong Kong's Hang Seng Index opened 1% higher at 22,776.92 while Shanghai's Composite Index added 1.37% to 3,231.39 while Japan's Nikkei 225 rose 0.13% to 9,782.69. Singapore's Straits Times Index added 1.01% to 2,754.66.
Light crude oil rose 74 cents to US$77.09 while US spot gold added US$4.90 to US$1,123.59.
Hwang DBS Vickers Research said the local stock market may overcome the prevailing profit-taking pressures to rise further, albeit in a slow and steady fashion.
"If that is the case, then its benchmark FBM KLCI is expected to test the immediate resistance barrier of 1,280 anytime soon. And the mood on the futures exchange has turned a bit more positive again.
"The spot month FBM KLCI contract has reversed from a discount to a premium position currently, treading 2.0 points above the underlying index level," it said.
HwangDBS Vickers Research said there would be a raft of corporate financial result announcements in the coming week, starting off with retail operator - Parkson Holdings and property investment company - KLCC Property this evening.
Affin jumped 24 sen to RM2.58 with 5.75 million shares done while Affin-WC added 18.5 sen to 33.5 sen with 66.9 million units. Boustead, which is the major shareholder in Affin, added 11 sen to RM3.53. Hong Leong Financial Group added 15 sen to RM6.85 with 200,700 units done.
IJM Plantations jumped 30 sen to 61.5 sen with 898,800 units done. Other gainers were DiGi, up 30 sen to RM22.10 with 100 shares done, KPJ and CIMB gained 18 sen to RM5.12 and RM13.10.
CFM was the top decliner, down 12 sen to 52 sen with 2,000 shares. Nestle fell 10 sen to RM32.70 while Tanjong gave up six sen to RM16.34 and Genting shed four sen to RM7.11
At 10am, the FBM KLCI rose 4.31 points to 1,275.25. Turnover was 228.04 million shares valued at RM161.05 million. There were 202 gainers, 141 losers and 146 stocks unchanged.
Among key regional markets, Hong Kong's Hang Seng Index opened 1% higher at 22,776.92 while Shanghai's Composite Index added 1.37% to 3,231.39 while Japan's Nikkei 225 rose 0.13% to 9,782.69. Singapore's Straits Times Index added 1.01% to 2,754.66.
Light crude oil rose 74 cents to US$77.09 while US spot gold added US$4.90 to US$1,123.59.
Hwang DBS Vickers Research said the local stock market may overcome the prevailing profit-taking pressures to rise further, albeit in a slow and steady fashion.
"If that is the case, then its benchmark FBM KLCI is expected to test the immediate resistance barrier of 1,280 anytime soon. And the mood on the futures exchange has turned a bit more positive again.
"The spot month FBM KLCI contract has reversed from a discount to a premium position currently, treading 2.0 points above the underlying index level," it said.
HwangDBS Vickers Research said there would be a raft of corporate financial result announcements in the coming week, starting off with retail operator - Parkson Holdings and property investment company - KLCC Property this evening.
Affin jumped 24 sen to RM2.58 with 5.75 million shares done while Affin-WC added 18.5 sen to 33.5 sen with 66.9 million units. Boustead, which is the major shareholder in Affin, added 11 sen to RM3.53. Hong Leong Financial Group added 15 sen to RM6.85 with 200,700 units done.
IJM Plantations jumped 30 sen to 61.5 sen with 898,800 units done. Other gainers were DiGi, up 30 sen to RM22.10 with 100 shares done, KPJ and CIMB gained 18 sen to RM5.12 and RM13.10.
CFM was the top decliner, down 12 sen to 52 sen with 2,000 shares. Nestle fell 10 sen to RM32.70 while Tanjong gave up six sen to RM16.34 and Genting shed four sen to RM7.11
Perisai eyes first contract for Mopsu
KUALA LUMPUR: PERISAI PETROLEUM TEKNOLOGI [] Bhd is in talks with parties in Australia, Indonesia and India to secure the first contract for its award-winning mobile offshore production and storage unit (Mopsu).
Perisai group chief financial officer Yeo Pek Chin said it looked forward to securing its first contract, which would keep it busy for “a few” years. He was not able to share any earnings or revenue projection from these contracts.
“Mopsu is in line with Perisai’s strategy to grow in niche areas,” he told The Edge Financial Daily in a recent interview.
He said the Mopsu TECHNOLOGY [], known for its cost efficiency and mobility versus typical drilling platforms, was suitable for shallow water and marginal fields. Perisai was recently awarded the “Excellence in Innovation” award by Frost&Sullivan for using Mopsu.
Yeo said the Mopsu, with a life span of about 25 years, had the capability to operate water depths of 80 to 120 metres, depending on its variant or type. It costs about US$70 million (RM235.9 million) to US$80 million to fabricate a Mopsu.
To fund the deployment of the first Mopsu, Perisai recently raised funds via a US$10 million redeemable convertible bonds (RCB), which were fully taken up by a private equity fund in Singapore.
Noteworthy is that the RCBs are the first US dollar-denominated bonds issued and cleared in Malaysia, paving way for more of these issuances to come.
Yeo said Perisai opted for the RCB given its effort to diversify its investor base. Furthermore, he said, as its revenue from the Mopsu business would be quoted largely in the greenback, the RCB also provided a natural hedge against foreign exchange movement.
Also, Perisai, as an issuer, would not have the obligation to make periodic interest payments that may disrupt cash flow, he added.
Perisai has tied up with Gryphon Energy (Asia Pacific) Sdn Bhd, the exclusive licensee of Mopsu, to establish a new company to market Mopsu in the Asia-Pacific region and will have the option to take up to 90% stake in each of the Mopsu units as well as the right of refusal on value-added services.
Perisai will hold a 49% stake in the new company and the rest by Gryphon. Mopsu’s intellectual property is owned by Kingtime International Ltd.
Yeo expects the demand for Mopsu to be “encouraging” due to its nature of cost efficiency, early production system, scalability and flexibility. It is understood that the Mopsu can help oil giants save up to US$100 million on a typical field development.
As it takes 18 months to fabricate a Mopsu, it is safe to assume that Perisai may only see earnings in the venture to trickle in from next year onwards. Nonetheless, Perisai has projected a full-year net profit of RM61.1 million for the year ending Dec 31, 2009 (FY09) and RM74 million for FY10.
The company’s earnings would come from its vessels and corrosive control services.
The group’s net profit rose nearly ninefold to RM33.15 million in its first half ended June 30, 2009 from RM3.74 million a year earlier, while revenue rose 143% to RM66.96 million from RM27.64 million. Basic earnings per share rose to 9.02 sen from 1.80 sen.
Perisai attributed the increase in revenue and net profit to the execution of the existing bareboat charter contract for the Derrick Lay Barge and the lease of a portable saturation diving system.
In notes accompanying second-quarter results, Perisai said the group’s successful track record and its proprietary technology put it in the forefront for securing potential new contracts in the region as oil companies ventured into marginal fields, deepwater and remote environments.
It said the international patent-pending Mopsu was a breakthrough, a “game changer” in the oil and gas sector.
Perisai said unlike other systems, which relied on drilling rigs, wellhead platforms, pipelines or a floating storage and offloading vessel, Mopsu used modular drilling units, integrated storage and a detachable drilling template, with almost the entire system fully recoverable and reusable.
The company had said an immediate contract award was contemplated to a reputable shipyard once an end-user contract had been signed or financing secured to build the first unit. Perisai shares ended one sen higher at 59.5 sen last Friday.
Perisai group chief financial officer Yeo Pek Chin said it looked forward to securing its first contract, which would keep it busy for “a few” years. He was not able to share any earnings or revenue projection from these contracts.
“Mopsu is in line with Perisai’s strategy to grow in niche areas,” he told The Edge Financial Daily in a recent interview.
He said the Mopsu TECHNOLOGY [], known for its cost efficiency and mobility versus typical drilling platforms, was suitable for shallow water and marginal fields. Perisai was recently awarded the “Excellence in Innovation” award by Frost&Sullivan for using Mopsu.
Yeo said the Mopsu, with a life span of about 25 years, had the capability to operate water depths of 80 to 120 metres, depending on its variant or type. It costs about US$70 million (RM235.9 million) to US$80 million to fabricate a Mopsu.
To fund the deployment of the first Mopsu, Perisai recently raised funds via a US$10 million redeemable convertible bonds (RCB), which were fully taken up by a private equity fund in Singapore.
Noteworthy is that the RCBs are the first US dollar-denominated bonds issued and cleared in Malaysia, paving way for more of these issuances to come.
Yeo said Perisai opted for the RCB given its effort to diversify its investor base. Furthermore, he said, as its revenue from the Mopsu business would be quoted largely in the greenback, the RCB also provided a natural hedge against foreign exchange movement.
Also, Perisai, as an issuer, would not have the obligation to make periodic interest payments that may disrupt cash flow, he added.
Perisai has tied up with Gryphon Energy (Asia Pacific) Sdn Bhd, the exclusive licensee of Mopsu, to establish a new company to market Mopsu in the Asia-Pacific region and will have the option to take up to 90% stake in each of the Mopsu units as well as the right of refusal on value-added services.
Perisai will hold a 49% stake in the new company and the rest by Gryphon. Mopsu’s intellectual property is owned by Kingtime International Ltd.
Yeo expects the demand for Mopsu to be “encouraging” due to its nature of cost efficiency, early production system, scalability and flexibility. It is understood that the Mopsu can help oil giants save up to US$100 million on a typical field development.
As it takes 18 months to fabricate a Mopsu, it is safe to assume that Perisai may only see earnings in the venture to trickle in from next year onwards. Nonetheless, Perisai has projected a full-year net profit of RM61.1 million for the year ending Dec 31, 2009 (FY09) and RM74 million for FY10.
The company’s earnings would come from its vessels and corrosive control services.
The group’s net profit rose nearly ninefold to RM33.15 million in its first half ended June 30, 2009 from RM3.74 million a year earlier, while revenue rose 143% to RM66.96 million from RM27.64 million. Basic earnings per share rose to 9.02 sen from 1.80 sen.
Perisai attributed the increase in revenue and net profit to the execution of the existing bareboat charter contract for the Derrick Lay Barge and the lease of a portable saturation diving system.
In notes accompanying second-quarter results, Perisai said the group’s successful track record and its proprietary technology put it in the forefront for securing potential new contracts in the region as oil companies ventured into marginal fields, deepwater and remote environments.
It said the international patent-pending Mopsu was a breakthrough, a “game changer” in the oil and gas sector.
Perisai said unlike other systems, which relied on drilling rigs, wellhead platforms, pipelines or a floating storage and offloading vessel, Mopsu used modular drilling units, integrated storage and a detachable drilling template, with almost the entire system fully recoverable and reusable.
The company had said an immediate contract award was contemplated to a reputable shipyard once an end-user contract had been signed or financing secured to build the first unit. Perisai shares ended one sen higher at 59.5 sen last Friday.
Affin surges 9pc on bid talk
SHARES of Affin Holdings surged 9.4 per cent to RM2.56.
Stock could be takeover or merger target, dealers said.
“It is story that is linked to East Asia, everyone is scrambling to buy,” said a dealer at a Malaysian investment bank.
Last week Bank of East Asia stock surged on reports it could be a takeover target. - Reuters
Stock could be takeover or merger target, dealers said.
“It is story that is linked to East Asia, everyone is scrambling to buy,” said a dealer at a Malaysian investment bank.
Last week Bank of East Asia stock surged on reports it could be a takeover target. - Reuters
Stocks to watch Maxis in focus this week
KUALA LUMPUR: Maxis Bhd makes its debut on Bursa Malaysia on Thursday, Nov 19 and it will be on the investors' radar screen this week.
The telco raised RM11.2 billion, with the final selling price at RM5 per share for institutions and RM4.75 for retail investors.
On the external front, US stocks rose in light volume on Friday to achieve a second straight week of gains as upbeat retail news reinforced hopes for strong sales in the key holiday season.
The Dow Jones industrial average added 0.72% to end at 10,270.47. The Standard & Poor's 500 Index rose 0.57% to 1,093.48. The Nasdaq Composite Index rose 0.88%, to close 2,167.88. For the week, the Dow rose 2.5%, while the S&P 500 advanced 2.3%, and the Nasdaq gained 2.6%.
Investors would also look for directions following the release of the latest batch of earnings from local corporations and also fresh news.
Stocks to watch include MEDIA PRIMA BHD [], The New Straits Times Press (M) Bhd, KUMPULAN JETSON BHD [], BIMB HOLDINGS BHD [], HUBLINE BHD [], Sino-Hua An International Bhd, THREE-A RESOURCES BHD [] and WCT BHD [].
Media Prima raised it stakes in the outdoor advertising business with the acquisition of Kurnia Outdoor Sdn Bhd -- the country's second largest outdoor advertising company -- for RM46.37 million. The acquisition will enable it to increase its total market share in the outdoor advertising business to increase from 33% to 42%.
The integrated media company, which had on Thursday sweetened the deal for its takeover of NSTP, projected revenue from outdoor acquisition to exceed more than RM100 million from the Kurnia acquisition.
The Minority Shareholders Watchdog Group said Media Prima's revised offer for NSTP was positive. It said the revised offer of RM2.90 per share was 7% above adjusted NSTP's net tangible assets per share of RM2.70 (excluding the printing plant and machinery of about RM419 million). NSTP shares rallied when it resumed trading last Friday.
Kumpulan Jetson Bhd's shares has rallied in recent weeks, fuelled by speculation about its involvement in a multi-billion project to be undertaken by common shareholders in Naza Group. The company has come under the scrutiny of the regulators following the surge in the share price and volume.
BIMB clarified its 65.2% subsidiary SYARIKAT TAKAFUL MALAYSIA BHD [] would not make any announcement of a new equity partner by the end of the month. Interest in the companies perked up last Friday on speculation of the new partner.
NFC Shipping Fund A LLC, which is registered in Marshall Islands, has increased its stake in Hubline to 123.9 million shares or 6.64% pursuant to the 1:2 rights issue of shares and warrants.
In Sino-Hua An International Bhd, Lembaga Tabung Haji upped its stake to 6.5% or 72.938 million shares after the recent acquisition of 5.52 million shares.
Wilmar International Ltd now owns 61.6 million shares or 16.66% in Three-A Resources, after subscribing for the 20 sen shares at 75 sen each via a private placement.
Kumpulan Wang Persaraan has ceased to a substantial shareholder in WCT after disposing of 3.5 million shares, reducing its stake to 4.76% or 37 million shares.
Investors, however, should heed the caution from RAM Ratings. It said despite more upbeat signs of recovery in the credit market, 16% of RAM Ratings issuers are still on negative rating outlook.
It cautioned certain credits remained weak links where corporates – particularly those in the export and property-related sectors – were not completely out of the woods yet.
RAM Ratings said the replenishment of order books may be protracted and the external sector is unlikely to recover to any large extent in the near term because the G3 countries have yet to fully recuperate.
The telco raised RM11.2 billion, with the final selling price at RM5 per share for institutions and RM4.75 for retail investors.
On the external front, US stocks rose in light volume on Friday to achieve a second straight week of gains as upbeat retail news reinforced hopes for strong sales in the key holiday season.
The Dow Jones industrial average added 0.72% to end at 10,270.47. The Standard & Poor's 500 Index rose 0.57% to 1,093.48. The Nasdaq Composite Index rose 0.88%, to close 2,167.88. For the week, the Dow rose 2.5%, while the S&P 500 advanced 2.3%, and the Nasdaq gained 2.6%.
Investors would also look for directions following the release of the latest batch of earnings from local corporations and also fresh news.
Stocks to watch include MEDIA PRIMA BHD [], The New Straits Times Press (M) Bhd, KUMPULAN JETSON BHD [], BIMB HOLDINGS BHD [], HUBLINE BHD [], Sino-Hua An International Bhd, THREE-A RESOURCES BHD [] and WCT BHD [].
Media Prima raised it stakes in the outdoor advertising business with the acquisition of Kurnia Outdoor Sdn Bhd -- the country's second largest outdoor advertising company -- for RM46.37 million. The acquisition will enable it to increase its total market share in the outdoor advertising business to increase from 33% to 42%.
The integrated media company, which had on Thursday sweetened the deal for its takeover of NSTP, projected revenue from outdoor acquisition to exceed more than RM100 million from the Kurnia acquisition.
The Minority Shareholders Watchdog Group said Media Prima's revised offer for NSTP was positive. It said the revised offer of RM2.90 per share was 7% above adjusted NSTP's net tangible assets per share of RM2.70 (excluding the printing plant and machinery of about RM419 million). NSTP shares rallied when it resumed trading last Friday.
Kumpulan Jetson Bhd's shares has rallied in recent weeks, fuelled by speculation about its involvement in a multi-billion project to be undertaken by common shareholders in Naza Group. The company has come under the scrutiny of the regulators following the surge in the share price and volume.
BIMB clarified its 65.2% subsidiary SYARIKAT TAKAFUL MALAYSIA BHD [] would not make any announcement of a new equity partner by the end of the month. Interest in the companies perked up last Friday on speculation of the new partner.
NFC Shipping Fund A LLC, which is registered in Marshall Islands, has increased its stake in Hubline to 123.9 million shares or 6.64% pursuant to the 1:2 rights issue of shares and warrants.
In Sino-Hua An International Bhd, Lembaga Tabung Haji upped its stake to 6.5% or 72.938 million shares after the recent acquisition of 5.52 million shares.
Wilmar International Ltd now owns 61.6 million shares or 16.66% in Three-A Resources, after subscribing for the 20 sen shares at 75 sen each via a private placement.
Kumpulan Wang Persaraan has ceased to a substantial shareholder in WCT after disposing of 3.5 million shares, reducing its stake to 4.76% or 37 million shares.
Investors, however, should heed the caution from RAM Ratings. It said despite more upbeat signs of recovery in the credit market, 16% of RAM Ratings issuers are still on negative rating outlook.
It cautioned certain credits remained weak links where corporates – particularly those in the export and property-related sectors – were not completely out of the woods yet.
RAM Ratings said the replenishment of order books may be protracted and the external sector is unlikely to recover to any large extent in the near term because the G3 countries have yet to fully recuperate.
Thursday, November 12, 2009
Sony unveils VAIO L all-in-one PC
Sony Malaysia has unveiled its new VAIO L series, a 24-inch all-in-one PC with an intuitive touch panel and access to HD entertainment that requires only 19mm of depth.
The VAIO L series is the first VAIO to be equipped with a multi-touch optical sensor display for a touch panel operation. One push of the VAIO button activates the software Media Gallery and providing access to photos, veidos and music. You can also flip through images, zoom and rotate with just a few touches.
Meanwhile, the WebCam Message Board provides a way for users to communicate with family and friends. the feature allows users to take photos with the built-in camera, customise them with hand-written messages and tehn post them onto the screen or send them off as e-mail.
On the other hand, the 24-inch, Full HD 1920 x 1080 pixel display can be used to watch the latest Blu-ray Discs and DVDs. It also comes with an integrated 5.5W + 5.5W speakers and S Master Digital Amplifier technology.
The VAIO L is powered by Windows 7 home Premium 64-bit, which also supports touch panel operation for drag-and-drop as well as special touch-compatible Windows 7 software. It also comes with an Intel Core 2 Duo Processor E7500 and 4GB pre-installed memory, which is upgradeable to 12Gb.
To enhance picture performance for games and videos, the VAIO L comes with the NVIDIA GeForce G210M graphics accelerator.
Spec
24-inch Full HD 1920 x 1080 pixel TFT multi-touch display
Optical sensored multi-touch screen
Intel Core2 Duo Processor E7500 (2.93 GHz)
Windows 7 Home Premium (64-bit)
4GB DDR2 SDRAM Memory (upgradeable up to 12 GB)
500 GB (Serial ATA, 7200rpm) hard drive
Blu-ray Disc Combo Drive
NVIDIA GeForce G210M graphics processing unit
Digital (DVB-T)/Analogue Hybrid Tuner
Integrated Wireless LAN IEEE 802.11b/g/n
Bluetooth standard Ver. 2.1+EDR
Integrated camera (640 x 480 effective pixels)
Includes Wireless keyboard, Wireless Optical Mouse and Remote Commander
582.4 x 429 x 190 mm (Minimum Tilt) , 582.4 x 385.8 x 300 mm (Maximum Tilt)
12.5kg
Wednesday, November 11, 2009
Mudajaya 3Q net profit up 336% to RM35m
KUALA LUMPUR: MUDAJAYA GROUP BHD []'s posted a stellar set of results, with earnings in the third quarter ended Sept 30, surging 336% to RM35.32 million from RM8.08 million a year ago following an increase in the activities.
It said today, revenue rose 78% to RM20.1 million from RM112.47 million, while earnings per share were 9.48 sen compared with 2.17 sen a year ago.
Its pretax profit of RM50.15 million was also 36.4% higher from the second quarter's RM36.8 million
It said today, revenue rose 78% to RM20.1 million from RM112.47 million, while earnings per share were 9.48 sen compared with 2.17 sen a year ago.
Its pretax profit of RM50.15 million was also 36.4% higher from the second quarter's RM36.8 million
Tuesday, November 10, 2009
Hartalega’s 2Q net profit rises 80% to RM33m
KUALA LUMPUR: HARTALEGA HOLDINGS BHD [] posted an 80% rise in net profit to RM33.11 million in its second quarter (2Q) ended Sept 30, 2009 from RM18.37 million a year earlier on the back of expansion in production capacity, higher nitrile sales mix, improvement in production process, lower synthetic and natural latex prices, and favourable exchange rate.
Revenue rose 20.7% to RM134.6 million from RM111.5 million, while basic earnings per share (EPS) increased to 13.66 sen from 7.58 sen. It declared a first interim single-tier dividend of five sen per share, totalling about RM12.12 million, which represents about 20.4% of its net profit for the period to Sept 30.
For the six months to Sept 30, net profit climbed 90% to RM59.48 million from RM31.26 million a year earlier, while revenue rose 30% to RM259.91 million from RM199.33 million. EPS rose to 24.55 sen from 12.9 sen.
"Our second-quarter results reflect our active efforts to increase production capacity, namely via improvements to our production lines. In addition, we expect two new advanced high capacity production lines from Plant 5 to come onstream before the end of this financial year. This will have an immediate positive impact on our earnings growth," Hartalega managing director Kuan Kam Hon said in a statement.
He said Plant 5's expansion would add another eight advanced high capacity production lines by early 2011, while 10 old lines at Plant 1 would be decommissioned and replaced with six high capacity lines.
Kuan said the measures would bring its current annual capacity of 6.2 billion pieces to 10 billion pieces by the second quarter of its 2012 financial year.
"Our commitment to provide investors with positive returns is evident from our profitability track record and dividend payout. Coupled with this fact, we are heartened by investors' trust in our abilities given the capital appreciation reflected in our current stock price," Kuan said.
Revenue rose 20.7% to RM134.6 million from RM111.5 million, while basic earnings per share (EPS) increased to 13.66 sen from 7.58 sen. It declared a first interim single-tier dividend of five sen per share, totalling about RM12.12 million, which represents about 20.4% of its net profit for the period to Sept 30.
For the six months to Sept 30, net profit climbed 90% to RM59.48 million from RM31.26 million a year earlier, while revenue rose 30% to RM259.91 million from RM199.33 million. EPS rose to 24.55 sen from 12.9 sen.
"Our second-quarter results reflect our active efforts to increase production capacity, namely via improvements to our production lines. In addition, we expect two new advanced high capacity production lines from Plant 5 to come onstream before the end of this financial year. This will have an immediate positive impact on our earnings growth," Hartalega managing director Kuan Kam Hon said in a statement.
He said Plant 5's expansion would add another eight advanced high capacity production lines by early 2011, while 10 old lines at Plant 1 would be decommissioned and replaced with six high capacity lines.
Kuan said the measures would bring its current annual capacity of 6.2 billion pieces to 10 billion pieces by the second quarter of its 2012 financial year.
"Our commitment to provide investors with positive returns is evident from our profitability track record and dividend payout. Coupled with this fact, we are heartened by investors' trust in our abilities given the capital appreciation reflected in our current stock price," Kuan said.
Monday, November 9, 2009
Adding an S to the D300
Nikon updates its semi-pro D300S DSLR with video and some welcome tweaks.
With HD video recording suddenly becoming the feature to have in DSLRs, Nikon has been busy updating their DSLR line with new models featuring 720p video recording.
While the first Nikon DSLRs to gain HD video recording were the consumer models like the D90 and the D5000, the company has just started updating its semi-pro and professional models with video recording, starting with the D300S and now the D3S.
Similar but different
Since the D300S has many similar features carried over from the D300, we won’t repeat them in this review. If you want an extensive rundown of the features, check out our D300 review.
Externally, the D300S really does look practically identical to the D300 — even the image sensor has the same 12.21-megapixel count as its predecessor and the 51-point autofocus system is also carried over.
There are differences in the sensor, of course, but we’ll deal with that a little later.
The only thing we’ll say here is that 12-megapixels is definitely more than enough for all but advertising photographers or people who need to make larger than A3 enlargements.
SLIGHTLY DIFFERENT: On the back, the D300S has a few slight differences, most notably a direction pad with a separate middle button like on the D3.
However, physical and the basic feature set are where the similarities end between the D300 and the D300S.
In addition to all this, Nikon has tweaked a number of features and added some new features into the D300S to make an already good camera even better.
The most obvious new feature, of course, is the addition of 720p video recording.
Even here, Nikon has tweaked the way video recording works in the D300S compared with the D90 — most notably, you can now autofocus during video recording, although, like all cameras that do so the sound of the autofocus motor can be heard when focusing.
This brings me to the next new feature — the D300S has a port that accepts a standard external stereo microphone which means you not only get stereo audio recording, but since the microphone is external, it won’t record the autofocus motor sounds when recording video.
As far as video recording goes, the D300S does a pretty good job recording 720p videos, offering a much better level of detail than, say, the Olympus E-P1’s 720p video.
Of course, we’d like to see Nikon start introducing 1080p video recording into their cameras, if only because the company’s nearest competitor is already starting to integrate that into most of their cameras.
As it is, 720p video recording is fine — while we would use video on a DSLR occasionally, if we really wanted to shoot more professional videos, a camcorder is preferable.
Capturing stills
The addition of video isn’t where the major tweaks have been made to the D300S, however — still image capture is where the camera features most of its major enhancements.
We’ll start with the minor, easier to explain tweaks first, the D300S now comes with 7fps (frames per second) continuous shooting speed, slightly up from the 6fps of the D300. No big change here.
One less obvious but welcome change is that this switch to the faster shutter mechanism also results in a much smoother, less clunky shutter. The shutter trips without much vibration at all and viewfinder blackout is also extremely short now.
Unfortunately, in my tests, I discovered that switching to 14-bit NEF RAW recording still slows down the continuous shooting speed though, to about 1.5fps.
This is fine for shooters who don’t use continuous shooting, but might be a problem for sports and action photographers.
One welcome addition is the excellent Virtual Horizon display that was in the D3 has now made into the D300S and you can overlay the Virtual Horizon over an image by pressing the Info button a few times in Live View mode.
Autofocus is practically unchanged — you still get Tripod mode which allows you to autofocus while in Live View mode using contrast detect, while Handheld mode autofocus will have the camera flip the mirror up and use the dedicated phase-detect sensors in the mirror box to focus, blacking out the Live View image for a second or two.
The only major change in autofocus is the ability to do so during video recording.
QUIET MODE: Nestled amongst the usual drive modes is the Q setting, which is meant to lower the decibel level of the shutter and mirror mechanism for use in quiet environments.
Oh yes, if you turn the drive mode dial, you’ll find a Q shooting mode nestled amongst the usual single shot and continuous shooting modes.
This is a relatively new addition to Nikon digital cameras, but anyone who’s owned a Nikon F4S for example, will probably be familiar with this mode, which stands for Quiet mode.
As the name suggests, the Quiet shooting mode attempts to lower the decibel level of the D300S’ shutter and mirror mechanism so that you can use the camera less obtrusively in quiet environments.
In our tests, Quiet shooting mode does indeed reduce the sharpness of the sound of the mirror returning to its down position, although the sound is still pretty noticeable to people sitting next to you.
However, you can delay the mirror return by holding down the shutter release button — while the shutter will trip and take a photo, the mirror won’t flip down till you let the shutter release button go, which I suppose makes sense in a concert where you can delay the louder sound of the mirror and wait for a period when the concert is louder to release the mirror.
Battery life is pretty good on the D300S and it lasted me several days of casual shooting and at least two days of heavy shooting with some video recording before the battery ran down. No complaints there.
Image quality
As far as metering and shooting goes, the D300S seems to perform similarly to the D300 and we’d say there’s no real difference there — if you’re familiar with Nikon’s metering choices, the D300S is not going to surprise you.
In terms of picture quality, Nikon seems to have tweaked the sensor design or noise reduction a bit on the D300S, and it seems to offer slightly better noise performance than the D300.
From our tests, the D300S is practically noiseless at ISO 200 and only some noise is visible at ISO 400.
However, NR kicks in a bit harder at normal settings above ISO 400 and noise actually goes down a bit at ISO 800 and ISO 1600, although at the expense of a bit of detail.
Overall, though we were pretty satisfied with the noise performance of the D300S and would not hesitate to use it all the way up to ISO 1600.
Sharpness was excellent at lower ISO settings and still looked good even at ISO 1600 with the NR taking away most of the chroma noise (colour noise) without smoothing out the detail too much.
Noise was still well-controlled at ISO 3200 but sharpness falls quite significantly at this point and we’d use this setting only when there are no other option.
The D300S has a Hi-1 setting which is equivalent to ISO 6400 but it’s distinctly soft and there’s already a significant colour shift.
If you want to gauge high ISO noise for yourself, you can download our 100% crop comparison shots from
bit.ly/12uSUp.
Najib: 6% GDP annual growth to become developed nation by 2020
PUTRAJAYA: The government needs to redouble its efforts, identify new growth areas and ensure the nation maintains a 6% annual gross domestic product (GDP) growth in order to achieve developed status in 11 years, Datuk Seri Najib Razak said here today.
The prime minister said measures to redouble its efforts and identify new growth areas would be spelt out in the new economic model, expected to be launched at year-end.
"The new economic model would provide a clear guideline on what needs to be done and obviously information and communications technology (ICT) would play a greater role in this," he told reporters after chairing the 21st Multimedia Super Corridor (MSC) Malaysia Implementation Council Meeting.
It was the first meeting to be chaired by Najib since becoming prime minister.
On the GDP growth rate, Najib, who is also finance minister, said the government would have to be realistic in its projections.
It would be difficult to maintain the high growth rate at a time when the world was facing an economic crisis, he said.
"Realistically, we can achieve the 6% growth when the global economy recovers. We still have not recovered from the global recession. We export goods and therefore we need the West to buy these goods. When there is recovery in the West, then we can achieve the growth," he added.
On MSC Malaysia, Najib said the corridor was progressing as expected with over 2,000 MSC-status companies and almost 4,000 intellectual property rights registered.
In 2008, MSC-status companies generated RM21.8 billion in revenue with local companies contributing 69% of the total, representing a growth of 27% from 2007.
"MSC Malaysia-status companies made a contribution of RM7.09 billion in exports in 2008 and this is a reflection of our ICT industry. The number of jobs created in MSC Malaysia has also increased in tandem with the increase in companies," Najib said.
"There are now over 92,000 high skilled jobs in MSC Malaysia. I expect that we would be on track in meeting the goal of 100,000 jobs by the end of 2010."
Najib, however, said Malaysia needed to work fast in creating an abundant supply of well-trained and multi-skilled ICT workers who were on par with the best in the world.
On the meeting today, the prime minister said he had emphasised that more government ministries and agencies should adopt local ICT solutions provided these solutions and services were cost competitive and of high quality.
"I also feel that the government should utilise electronic means of outreach such as email, SMS (short messaging service) and social networks to connect with the rakyat. For example, SMS can be used to notify the people of floods and potential landslides.
"On the same note, I would also like to see a higher utilisation of MyKad to provide more conveniences to the people. This demonstrates that while ICT can be a complex subject, at the end of the day, the people can benefit from it by using a tool like MyKad," said Najib.
The prime minister said he was also pleased with the progress made by the agriculture flagship in the MSC, which was crucial in ensuring national food security and improving the income of farmers by leveraging on innovation and ICT.
"I would like to reiterate and as we discussed in the meeting earlier, MSC Malaysia has certainly moved in the right direction. MSC Malaysia is not an MDeC (Multimedia Development Corporation), it is not a Mosti (Science, Technology and Innovation Ministry) initiative, it is not even a government initiative. MSC Malaysia is the national ICT initiative for the people of Malaysia," he added. — Bernama
The prime minister said measures to redouble its efforts and identify new growth areas would be spelt out in the new economic model, expected to be launched at year-end.
"The new economic model would provide a clear guideline on what needs to be done and obviously information and communications technology (ICT) would play a greater role in this," he told reporters after chairing the 21st Multimedia Super Corridor (MSC) Malaysia Implementation Council Meeting.
It was the first meeting to be chaired by Najib since becoming prime minister.
On the GDP growth rate, Najib, who is also finance minister, said the government would have to be realistic in its projections.
It would be difficult to maintain the high growth rate at a time when the world was facing an economic crisis, he said.
"Realistically, we can achieve the 6% growth when the global economy recovers. We still have not recovered from the global recession. We export goods and therefore we need the West to buy these goods. When there is recovery in the West, then we can achieve the growth," he added.
On MSC Malaysia, Najib said the corridor was progressing as expected with over 2,000 MSC-status companies and almost 4,000 intellectual property rights registered.
In 2008, MSC-status companies generated RM21.8 billion in revenue with local companies contributing 69% of the total, representing a growth of 27% from 2007.
"MSC Malaysia-status companies made a contribution of RM7.09 billion in exports in 2008 and this is a reflection of our ICT industry. The number of jobs created in MSC Malaysia has also increased in tandem with the increase in companies," Najib said.
"There are now over 92,000 high skilled jobs in MSC Malaysia. I expect that we would be on track in meeting the goal of 100,000 jobs by the end of 2010."
Najib, however, said Malaysia needed to work fast in creating an abundant supply of well-trained and multi-skilled ICT workers who were on par with the best in the world.
On the meeting today, the prime minister said he had emphasised that more government ministries and agencies should adopt local ICT solutions provided these solutions and services were cost competitive and of high quality.
"I also feel that the government should utilise electronic means of outreach such as email, SMS (short messaging service) and social networks to connect with the rakyat. For example, SMS can be used to notify the people of floods and potential landslides.
"On the same note, I would also like to see a higher utilisation of MyKad to provide more conveniences to the people. This demonstrates that while ICT can be a complex subject, at the end of the day, the people can benefit from it by using a tool like MyKad," said Najib.
The prime minister said he was also pleased with the progress made by the agriculture flagship in the MSC, which was crucial in ensuring national food security and improving the income of farmers by leveraging on innovation and ICT.
"I would like to reiterate and as we discussed in the meeting earlier, MSC Malaysia has certainly moved in the right direction. MSC Malaysia is not an MDeC (Multimedia Development Corporation), it is not a Mosti (Science, Technology and Innovation Ministry) initiative, it is not even a government initiative. MSC Malaysia is the national ICT initiative for the people of Malaysia," he added. — Bernama
F&N 4Q net profit up 75% to RM61m
KUALA LUMPUR: Fraser & Neave Holdings Bhd net profit rose 75% to RM61.08 million in the fourth quarter ended Sept 30, 2009 from RM34.74 million a year ago due to recognition of deferred tax assets of RM12 million.
F&N said on Nov 9 that revenue slipped 1% to RM908.3 million from RM921 million. Earnings per share were 17.1 sen versus 9.8 sen.
It proposed a bonus tax exempt dividend of five sen per share and a final dividend of 24 sen.
For the full year, net profit rose 34.5% to RM224.43 million from RM166.84 million due to the strong performance of the dairies and soft drinks divisions. Revenue was slightly higher at RM3.737 million versus RM3.674 million.
The dairies division's operating profit improved by 59% to RM140 million which was on par with the soft drinks as key contributor to the group profits.
The soft drinks division saw its revenue rose 10.5 %to Rm1.31 billion from RM1.18 billion, underpinned by higher sales and better product mix. Operating profits rose 11.1% to Rm137 million from RM123 million.
F&N said on Nov 9 that revenue slipped 1% to RM908.3 million from RM921 million. Earnings per share were 17.1 sen versus 9.8 sen.
It proposed a bonus tax exempt dividend of five sen per share and a final dividend of 24 sen.
For the full year, net profit rose 34.5% to RM224.43 million from RM166.84 million due to the strong performance of the dairies and soft drinks divisions. Revenue was slightly higher at RM3.737 million versus RM3.674 million.
The dairies division's operating profit improved by 59% to RM140 million which was on par with the soft drinks as key contributor to the group profits.
The soft drinks division saw its revenue rose 10.5 %to Rm1.31 billion from RM1.18 billion, underpinned by higher sales and better product mix. Operating profits rose 11.1% to Rm137 million from RM123 million.
EON Cap 3Q net profit up 9.3% to RM75.35m
KUALA LUMPUR: EON CAPITAL BHD []'s net profit rose 9.3% to RM73.35 million in the third quarter ended Sept 30 from RM68.95 million a year ago, due to net interest income and from its Islamic banking operations.
It said on Monday, Nov 9 that net profit fell to RM598.87 billion from RM611.04 billion a year ago. Earnings per share were 10.87 sen compared with 9.95 sen.
However, when compared with the second quarter, the earnings showed a decline due to higher allowances for losses on loans, advances and financing, other operating expenses and impairment losses on securities.
It said on Monday, Nov 9 that net profit fell to RM598.87 billion from RM611.04 billion a year ago. Earnings per share were 10.87 sen compared with 9.95 sen.
However, when compared with the second quarter, the earnings showed a decline due to higher allowances for losses on loans, advances and financing, other operating expenses and impairment losses on securities.
Sunday, November 8, 2009
Sime Darby unit eyes more estates in Africa
The expansion is part of a long-term strategy to double planted areas to one million hectares and be nearer to the growing markets of Europe and the US
Sime Darby Bhd (4197), which owns 220,000ha of oil palm estates in Liberia, plans to strengthen its presence on the African continent and is eyeing more land in Cameroon, Congo and South Africa.
Sime Darby Plantation Sdn Bhd managing director Datuk Azhar Abdul Hamid said the conglomerate's plantation arm had received many invitations to Africa.
"But nothing has been formalised and we are still at the early stage. In Liberia, we already have a team on the ground," Azhar told Business Times in an interview.
Sime Darby is one of Malaysia's top five plantation firms, with a total of 530,000ha in Malaysia and Indonesia contributing up to 70 per cent of its annual revenue.
The group also develops properties, sells cars and heavy equipment, and does engineering work for the oil and gas industry, such as fabricating oil rigs.
Azhar said the expansion is part of a long-term strategy to double planted areas to one million hectares and be nearer to the growing markets of Europe and the US.
The group is on track for this. On top of the 530,000ha it already owns, it is looking at more than 300,000ha in Sarawak, while in Indonesia it has another 40,000ha to develop.
"Later on, when the opportunity arises, we may open estates in Brazil or in any South American country near the equator where oil palm grows well."
Azhar said concerns of civil war in Liberia had eased with the presence of the United Nations peacekeeping forces there until 2011.
"Besides, China and the United States are investing in Liberia in a big way to set up resorts and build infrastructure. We cannot wait until everything is perfect and then decide to invest. By then it will be too late."
Sime Darby plans to develop its business in Liberia gradually.
"Liberia, and Africa as a whole, is a good place to grow oil palm. Liberia, for example, can produce up to four million tonnes of crude palm oil, which is enough to feed its own people as well as serve the uropean Union market of six million tonnes.
Apart from palm oil's traditional growth areas in Europe and Asia, demand is also rising in the US where states, such as California, are seeing an increasing Asian population, resulting in changing lifestyles and dietary preferences.
Sime Darby is also open to joint ventures with small plantation firms that are looking to reap the benefits of economies of scale.
"We have received a lot of proposals and are filtering them out. The approach and venture must be beneficial to our growth as a global commodity player," said Azhar.
Sime Darby Bhd (4197), which owns 220,000ha of oil palm estates in Liberia, plans to strengthen its presence on the African continent and is eyeing more land in Cameroon, Congo and South Africa.
Sime Darby Plantation Sdn Bhd managing director Datuk Azhar Abdul Hamid said the conglomerate's plantation arm had received many invitations to Africa.
"But nothing has been formalised and we are still at the early stage. In Liberia, we already have a team on the ground," Azhar told Business Times in an interview.
Sime Darby is one of Malaysia's top five plantation firms, with a total of 530,000ha in Malaysia and Indonesia contributing up to 70 per cent of its annual revenue.
The group also develops properties, sells cars and heavy equipment, and does engineering work for the oil and gas industry, such as fabricating oil rigs.
Azhar said the expansion is part of a long-term strategy to double planted areas to one million hectares and be nearer to the growing markets of Europe and the US.
The group is on track for this. On top of the 530,000ha it already owns, it is looking at more than 300,000ha in Sarawak, while in Indonesia it has another 40,000ha to develop.
"Later on, when the opportunity arises, we may open estates in Brazil or in any South American country near the equator where oil palm grows well."
Azhar said concerns of civil war in Liberia had eased with the presence of the United Nations peacekeeping forces there until 2011.
"Besides, China and the United States are investing in Liberia in a big way to set up resorts and build infrastructure. We cannot wait until everything is perfect and then decide to invest. By then it will be too late."
Sime Darby plans to develop its business in Liberia gradually.
"Liberia, and Africa as a whole, is a good place to grow oil palm. Liberia, for example, can produce up to four million tonnes of crude palm oil, which is enough to feed its own people as well as serve the uropean Union market of six million tonnes.
Apart from palm oil's traditional growth areas in Europe and Asia, demand is also rising in the US where states, such as California, are seeing an increasing Asian population, resulting in changing lifestyles and dietary preferences.
Sime Darby is also open to joint ventures with small plantation firms that are looking to reap the benefits of economies of scale.
"We have received a lot of proposals and are filtering them out. The approach and venture must be beneficial to our growth as a global commodity player," said Azhar.
AIG posts profit for second straight quarter
NEW YORK: American International Group Inc (AIG) the insurer bailed out by the US government, posted its second straight quarterly profit yesterday, helped by recovery in the value of its investments.
Net profit was US$455 million, (US$1 = RM3.41) compared with a loss of US$24.47 billion,in the year-earlier quarter.
The results included US$1.95 billion in special gains, including from improvement in the value of securities held by AIG Financial Products.
Adjusted profit, excluding realised gains and losses, was US$1.9 billion — Reuters
Net profit was US$455 million, (US$1 = RM3.41) compared with a loss of US$24.47 billion,in the year-earlier quarter.
The results included US$1.95 billion in special gains, including from improvement in the value of securities held by AIG Financial Products.
Adjusted profit, excluding realised gains and losses, was US$1.9 billion — Reuters
Saturday, November 7, 2009
Warren Buffett's company 3Q profit triples to US$3.2bil
OMAHA, Nebraska: Warren Buffett's company said Friday that its third-quarter profit tripled as the improving economy and stock market boosted the value of Berkshire Hathaway Inc.'s derivative contracts.
Berkshire said it generated $3.2 billion, or $2,087 per share, in net income. That's up significantly from last year's $1.1 billion, or $682 per share.
Most of the swing in earnings is related to an unrealized $1.7 billion gain on Berkshire's derivatives, some of which are tied to credit defaults and some of which are tied to equity markets.
That compares to a $1.3 billion loss on Berkshire's derivatives in last year's third quarter.
Excluding the investment and derivative gains, Berkshire's operating earnings were nearly flat at $2.06 billion, or $1,325 per share.
Last year, Berkshire reported operating earnings of $2.07 billion, or $1,335 per share.
The four analysts surveyed by Thomson Reuters expected Berkshire to report earnings per share of $1,308.25.
On Tuesday, Berkshire announced its biggest deal ever with a plan to acquire Burlington Northern Santa Fe Corp. for $26.3 billion in cash and stock.
Berkshire already owns a 22 percent stake in Burlington Northern and would buy up the rest under the deal, which did not affect the third-quarter results.
Berkshire executives typically do not comment on quarterly earnings reports, and they did not immediately respond to an interview request on Friday.
Berkshire's insurance companies performed well in the quarter, but its other operating companies, which include a number of businesses tied to consumer spending, struggled.
Operating profit in Berkshire's insurance underwriting business, which includes Geico and General Reinsurance, soared to $363 million from $81 million a year ago thanks partly to this year's relatively quiet hurricane season.
Berkshire's insurance units also reported better investment income of $976 million in the quarter, up from $809 million a year ago.
Berkshire's non-insurance companies, which includes Shaw carpet, Acme Brick, Nebraska Furniture Mart and NetJets, generated an operating profit of $774 million in the quarter, down from $1.1 billion a year ago.
NetJets said Thursday that it planned to lay off up to 495 pilots nationwide in January because of reduced demand for its jet service.
Berkshire generated $29.9 billion revenue in the quarter, up from $27.9 billion a year ago.
Berkshire owns more than 60 subsidiaries and it has major investments in such companies as Coca-Cola Co. and Wells Fargo & Co. - AP
Berkshire said it generated $3.2 billion, or $2,087 per share, in net income. That's up significantly from last year's $1.1 billion, or $682 per share.
Most of the swing in earnings is related to an unrealized $1.7 billion gain on Berkshire's derivatives, some of which are tied to credit defaults and some of which are tied to equity markets.
That compares to a $1.3 billion loss on Berkshire's derivatives in last year's third quarter.
Excluding the investment and derivative gains, Berkshire's operating earnings were nearly flat at $2.06 billion, or $1,325 per share.
Last year, Berkshire reported operating earnings of $2.07 billion, or $1,335 per share.
The four analysts surveyed by Thomson Reuters expected Berkshire to report earnings per share of $1,308.25.
On Tuesday, Berkshire announced its biggest deal ever with a plan to acquire Burlington Northern Santa Fe Corp. for $26.3 billion in cash and stock.
Berkshire already owns a 22 percent stake in Burlington Northern and would buy up the rest under the deal, which did not affect the third-quarter results.
Berkshire executives typically do not comment on quarterly earnings reports, and they did not immediately respond to an interview request on Friday.
Berkshire's insurance companies performed well in the quarter, but its other operating companies, which include a number of businesses tied to consumer spending, struggled.
Operating profit in Berkshire's insurance underwriting business, which includes Geico and General Reinsurance, soared to $363 million from $81 million a year ago thanks partly to this year's relatively quiet hurricane season.
Berkshire's insurance units also reported better investment income of $976 million in the quarter, up from $809 million a year ago.
Berkshire's non-insurance companies, which includes Shaw carpet, Acme Brick, Nebraska Furniture Mart and NetJets, generated an operating profit of $774 million in the quarter, down from $1.1 billion a year ago.
NetJets said Thursday that it planned to lay off up to 495 pilots nationwide in January because of reduced demand for its jet service.
Berkshire generated $29.9 billion revenue in the quarter, up from $27.9 billion a year ago.
Berkshire owns more than 60 subsidiaries and it has major investments in such companies as Coca-Cola Co. and Wells Fargo & Co. - AP
Thursday, November 5, 2009
Update MRCB proposes rights issue to raise RM566m
KUALA LUMPUR: MALAYSIAN RESOURCES CORP [] Bhd plans to undertake a renounceable rights issue to raise up to RM566 million, of which RM380 million would be used as capital expenditure for future expansion.
The company said on Thursday, Nov 5 the issue price would be RM1.172 per rights share, a discount of about 9.8% to the theoretical ex-rights price of MRCB shares of RM1.30,based on the three-month weighted average market price of about RM1.36.
"The basis for the proposed rights issue is one rights share for every two existing MRCB shares held at the entitlement date," it said. The corporate exercise is expected to be completed in 1Q next year.
MRCB said the RM380 million would be for future business investments and expansion of its core activities mainly acquiring prime land for development, investment opportunities in strategic property development, expansion in environmental engineering and infrastructure business opportunities.
It said there may be further capital requirements subsequent to the announcement and prior to the company receiving the proceeds from the proposed rights issue.
"The company will meet such capital requirements via internally generated funds and/or bank borrowings and reimburse from the amount allocated for this purpose," it said.
MRCB said RM85 million of the RM566 million would be used equity investments in its 51% owned Nu Sentral Sdn Bhd -- a joint-venture company between MRCB and Pelaburan Hartanah Bhd.
Nu Sentral was set up to acquire and manage Nu Sentral - a seven-storey retail mall within the Kuala Lumpur Sentral development - currently under development and covering a gross floor area of about 1.2 million square feet. It is targeted to be completed by 2012.
The total investment for the retail mall of about RM800 million will be funded via a combination of equity contributions and bank borrowings. So far, MRCB has invested about RM38.0 million in Nu Sentral which was funded via working capital and bank borrowings.
The remaining funds would be used for working capital and listing expenses.
The company said on Thursday, Nov 5 the issue price would be RM1.172 per rights share, a discount of about 9.8% to the theoretical ex-rights price of MRCB shares of RM1.30,based on the three-month weighted average market price of about RM1.36.
"The basis for the proposed rights issue is one rights share for every two existing MRCB shares held at the entitlement date," it said. The corporate exercise is expected to be completed in 1Q next year.
MRCB said the RM380 million would be for future business investments and expansion of its core activities mainly acquiring prime land for development, investment opportunities in strategic property development, expansion in environmental engineering and infrastructure business opportunities.
It said there may be further capital requirements subsequent to the announcement and prior to the company receiving the proceeds from the proposed rights issue.
"The company will meet such capital requirements via internally generated funds and/or bank borrowings and reimburse from the amount allocated for this purpose," it said.
MRCB said RM85 million of the RM566 million would be used equity investments in its 51% owned Nu Sentral Sdn Bhd -- a joint-venture company between MRCB and Pelaburan Hartanah Bhd.
Nu Sentral was set up to acquire and manage Nu Sentral - a seven-storey retail mall within the Kuala Lumpur Sentral development - currently under development and covering a gross floor area of about 1.2 million square feet. It is targeted to be completed by 2012.
The total investment for the retail mall of about RM800 million will be funded via a combination of equity contributions and bank borrowings. So far, MRCB has invested about RM38.0 million in Nu Sentral which was funded via working capital and bank borrowings.
The remaining funds would be used for working capital and listing expenses.
Wednesday, November 4, 2009
Stocks up, dollar down ahead of Fed report
LONDON, Nov 4 — World stocks rose from the previous day’s four-week low today while the dollar slipped ahead of a policy decision by the Federal Reserve, expected to affirm its commitment to ultra-low interest rates.
Wall Street looked set for a positive start.
A survey showed the euro zone’s dominant service sector expanded for the second consecutive month and at its fastest pace in 22 months, adding to encouraging economic signs, though Germany’s expanded at its slowest rate in three months.
The Fed is expected to pledge to hold benchmark interest rates exceptionally low for “an extended period” while acknowledging some positive economic development.
“The Fed is unlikely to offer any hints into the timing of an exit strategy and eventual rate rises, which may help stocks to rise and consequently boost (the euro),” said Antje Praefcke, currency strategist at Commerzbank in Frankfurt. The MSCI world equity index rose 0.7 per cent while the FTSEurofirst 300 index gained 1 per cent.
“The macro data flow has been very positive over the last couple of days and I think the markets can go a bit higher from here,” said Klaus Wiener, research head at Generali Investments.
Markit’s final euro zone services purchasing managers’ index of around 2,000 companies rose in October to 52.6, its highest reading since December 2007, up from 50.9 in September.
That was revised up from forecasts and a flash reading of 52.3.
Emerging stocks rose 1.6 per cent.
Yesterday’s news that Warren Buffett’s Berkshire Hathaway agreed to buy Burlington Northern Santa Fed Corp in a deal that values the railroad company at US$34 billion (RM115 billion) was seen as a sign corporate merger and acquisition activity is picking up, given low valuations.
More takeover deals would encourage investors to buy companies seen as potential targets in aid of benefitting from the eventual deal. It may also signal buyers are more optimistic about the economy and financing.
US crude oil rose 0.7 per cent to US$80.30 a barrel. Spot gold hit record high of US$1,091.60 an ounce, helped by a weaker dollar and news that the Reserve Bank of India bought 200 tonnes of gold from the IMF for US$6.7 billion.
This fuelled speculation that other governments — including China — may be ready to diversify their reserves even at near-record gold prices, helping soak up IMF supply that the fund may otherwise be forced to sell on the open market.
The December bund futures was down 33 ticks as riskier assets advanced.
The dollar fell 0.3 per cent against a basket of major currencies while the euro rose 0.2 per cent to US$1.4763.
“Conversely a more hawkish message by the Fed would present the dollar with some potentially strong tailwinds, and would make euro/dollar vulnerable to a pullback below US$1.46,” Lloyds TSB said in a note to clients. — Reuters
Wall Street looked set for a positive start.
A survey showed the euro zone’s dominant service sector expanded for the second consecutive month and at its fastest pace in 22 months, adding to encouraging economic signs, though Germany’s expanded at its slowest rate in three months.
The Fed is expected to pledge to hold benchmark interest rates exceptionally low for “an extended period” while acknowledging some positive economic development.
“The Fed is unlikely to offer any hints into the timing of an exit strategy and eventual rate rises, which may help stocks to rise and consequently boost (the euro),” said Antje Praefcke, currency strategist at Commerzbank in Frankfurt. The MSCI world equity index rose 0.7 per cent while the FTSEurofirst 300 index gained 1 per cent.
“The macro data flow has been very positive over the last couple of days and I think the markets can go a bit higher from here,” said Klaus Wiener, research head at Generali Investments.
Markit’s final euro zone services purchasing managers’ index of around 2,000 companies rose in October to 52.6, its highest reading since December 2007, up from 50.9 in September.
That was revised up from forecasts and a flash reading of 52.3.
Emerging stocks rose 1.6 per cent.
Yesterday’s news that Warren Buffett’s Berkshire Hathaway agreed to buy Burlington Northern Santa Fed Corp in a deal that values the railroad company at US$34 billion (RM115 billion) was seen as a sign corporate merger and acquisition activity is picking up, given low valuations.
More takeover deals would encourage investors to buy companies seen as potential targets in aid of benefitting from the eventual deal. It may also signal buyers are more optimistic about the economy and financing.
US crude oil rose 0.7 per cent to US$80.30 a barrel. Spot gold hit record high of US$1,091.60 an ounce, helped by a weaker dollar and news that the Reserve Bank of India bought 200 tonnes of gold from the IMF for US$6.7 billion.
This fuelled speculation that other governments — including China — may be ready to diversify their reserves even at near-record gold prices, helping soak up IMF supply that the fund may otherwise be forced to sell on the open market.
The December bund futures was down 33 ticks as riskier assets advanced.
The dollar fell 0.3 per cent against a basket of major currencies while the euro rose 0.2 per cent to US$1.4763.
“Conversely a more hawkish message by the Fed would present the dollar with some potentially strong tailwinds, and would make euro/dollar vulnerable to a pullback below US$1.46,” Lloyds TSB said in a note to clients. — Reuters
Monday, November 2, 2009
Proton to set up plant, design centre in India
CHENNAI: Proton Holdings Bhd plans to set up an assembly plant and a Lotus Engineering design centre in India soon.
Managing director Syed Zainal Abidin Syed Mohamed Tahir told StarBiz that Proton was currently identifying a suitable partner to undertake the joint-venture assembly plant project.
“We will finalise the partner early next year. Subsequently, it will take 12 to 14 months to start operations at the assembly plant.
“The location of the plant has yet to be decided. It could be in Mumbai or Chennai,” he said after a dialogue session between International Trade and Industry Minister Datuk Mustapa Mohamed and Indian businessmen in Chennai.
Syed Zainal is part of an trade and investment mission to India led by Mustapa.
The joint-venture assembly plant in India would save about 30% in operation costs, as it could source automotive components locally within India, compared with importing automotive parts from Malaysia, Syed Zainal said.
He said Proton also planned to set up a Lotus Engineering design centre in Chennai or Mumbai early next year.
“We are talking to automotive consulting companies now. The design centre will do computer-aided design and computer-aided engineering work.
“Setting up such a centre in India allows us to do high-end engineering work cost effectively,” he said.
Besides Malaysia, there are also Lotus Engineering design centres in Britain, the US and China.
Managing director Syed Zainal Abidin Syed Mohamed Tahir told StarBiz that Proton was currently identifying a suitable partner to undertake the joint-venture assembly plant project.
“We will finalise the partner early next year. Subsequently, it will take 12 to 14 months to start operations at the assembly plant.
“The location of the plant has yet to be decided. It could be in Mumbai or Chennai,” he said after a dialogue session between International Trade and Industry Minister Datuk Mustapa Mohamed and Indian businessmen in Chennai.
Syed Zainal is part of an trade and investment mission to India led by Mustapa.
The joint-venture assembly plant in India would save about 30% in operation costs, as it could source automotive components locally within India, compared with importing automotive parts from Malaysia, Syed Zainal said.
He said Proton also planned to set up a Lotus Engineering design centre in Chennai or Mumbai early next year.
“We are talking to automotive consulting companies now. The design centre will do computer-aided design and computer-aided engineering work.
“Setting up such a centre in India allows us to do high-end engineering work cost effectively,” he said.
Besides Malaysia, there are also Lotus Engineering design centres in Britain, the US and China.
Penang property sector improving
GEORGE TOWN: The property sector in Penang has seen an improvement in the second quarter of 2009 compared to the sluggish 2008 in the aftermath of the global economic meltdown.
Real Estate and Housing Developers Association (Rehda Penang chapter) chairman Datuk Jerry Chan said this year, new project launches by several top-notch developers had boosted the local property market, especially on the island.
Speaking to The Edge Financial Daily, Chan said new projects by developers including IJM, E&O PROPERTIES [] and S P Setia had set new benchmarks in the industry. Landed property and condominiums had been well-received by buyers and investors, he added.
Chan said for most developers, 2009 had been good in terms of overall property outlook and market sentiment.
“Many of us thought that the global economic downturn would adversely affect the property sector here and it would be long drawn and result in deep recession, but it has not been the case. The property outlook for 2010 seems positive overall especially with various sectors, namely manufacturing, tourism and services sectors improving,” he said.
However, Chan voiced concern that property prices may run ahead of buyers’ expectations and affordability.
“There is a concern that property prices, especially on the island, may exceed what people earn. If one is buying a property as an investment and rent it out, will the rental and yields from the property pick up in tandem with the prices?” said Chan, adding that the present scenario was ideal with low interest rates and good financial packages being offered.
He said residential properties on the island had reached new heights with most priced above RM500,000 and rising.
“There is a gap in the number of launches priced below RM400,000 and this is worrying. Hence, the state government’s move to relook the plot ratio for high rise developments is most welcome as it is timely and long overdue,” he added.
The state government announced recently that it would relook the plot ratio and may limit development in certain parts of the island.
The density guideline limits the developers’ options in building low-medium cost units, super condominiums or very high-end landed houses. Rehda has proposed flexibility for developers to configure the mix, the number of rooms per unit, and different unit built-up areas of each type.
This, Chan said, would allow developers to be creative and build a variety of units with differing sizes in a housing scheme to cater for a wider group of buyers.
“We need this mix just like what is being done in Singapore and KL, which have much higher plot ratio than what we have on the island. Developers are facing high land costs which have increased tenfold over the last 20 years while CONSTRUCTION [] costs have gone up by more than five times,” he said.
He also called on the government to relook the policy of “one size fits all” for the low-medium cost housing.
“Not everyone needs three bedrooms, especially smaller families who are just starting off. They should be able to take up lower priced and smaller units, which will more catered for their budget,” he added.
He noted that the Penang state government had been responsive to issues raised by the housing industry and related professional bodies.
Real Estate and Housing Developers Association (Rehda Penang chapter) chairman Datuk Jerry Chan said this year, new project launches by several top-notch developers had boosted the local property market, especially on the island.
Speaking to The Edge Financial Daily, Chan said new projects by developers including IJM, E&O PROPERTIES [] and S P Setia had set new benchmarks in the industry. Landed property and condominiums had been well-received by buyers and investors, he added.
Chan said for most developers, 2009 had been good in terms of overall property outlook and market sentiment.
“Many of us thought that the global economic downturn would adversely affect the property sector here and it would be long drawn and result in deep recession, but it has not been the case. The property outlook for 2010 seems positive overall especially with various sectors, namely manufacturing, tourism and services sectors improving,” he said.
However, Chan voiced concern that property prices may run ahead of buyers’ expectations and affordability.
“There is a concern that property prices, especially on the island, may exceed what people earn. If one is buying a property as an investment and rent it out, will the rental and yields from the property pick up in tandem with the prices?” said Chan, adding that the present scenario was ideal with low interest rates and good financial packages being offered.
He said residential properties on the island had reached new heights with most priced above RM500,000 and rising.
“There is a gap in the number of launches priced below RM400,000 and this is worrying. Hence, the state government’s move to relook the plot ratio for high rise developments is most welcome as it is timely and long overdue,” he added.
The state government announced recently that it would relook the plot ratio and may limit development in certain parts of the island.
The density guideline limits the developers’ options in building low-medium cost units, super condominiums or very high-end landed houses. Rehda has proposed flexibility for developers to configure the mix, the number of rooms per unit, and different unit built-up areas of each type.
This, Chan said, would allow developers to be creative and build a variety of units with differing sizes in a housing scheme to cater for a wider group of buyers.
“We need this mix just like what is being done in Singapore and KL, which have much higher plot ratio than what we have on the island. Developers are facing high land costs which have increased tenfold over the last 20 years while CONSTRUCTION [] costs have gone up by more than five times,” he said.
He also called on the government to relook the policy of “one size fits all” for the low-medium cost housing.
“Not everyone needs three bedrooms, especially smaller families who are just starting off. They should be able to take up lower priced and smaller units, which will more catered for their budget,” he added.
He noted that the Penang state government had been responsive to issues raised by the housing industry and related professional bodies.
Sunday, November 1, 2009
New lottery games, including toto, coming up
I think gaming sector have some potiential .. Which one to pick BTOTO or MPHB ....thinking...hihi
PETALING JAYA: The introduction of new products by number forecast operators (NFOs) is intended to draw consumers away from illegal operators and expand the legal market.
Magnum Corp Sdn Bhd, a 51% subsidiary of Multi-Purpose Holdings Bhd, and Berjaya Sports Toto Bhd (BToto) were given the green light by the Government in the middle of this year to introduce new games – the first since the Government froze approvals in 1992.
In September, Magnum launched the 4D Jackpot while BToto is expected to release a new lotto variant, Power Toto 6/55, by year-end to replace its existing lotto games, Toto 6/42.
BToto’s new game was expected to have a much larger matrix of numbers for punters to select and a minimum guaranteed upfront jackpot of RM3mil, the highest minimum jackpot size currently, a research house said.
The approvals given to the two companies, coupled with the authorities’ generous allocation of special draws, had turned the operating environment in favour of legal NFOs, said a bank-backed brokerage in a report.
“It may not be overly optimistic to expect the legal market to grow beyond the low single-digit level with the latest expansion of product offerings,” it said.
It noted that the sector had high single-digit growth from 2003 to 2005, partly due to the extension of product offerings to the permutation variant.
Sales of NFOs had grown at a compounded average growth rate of 2.5% in the past 10 years, it said.
In an e-mail reply to StarBiz, the management of Magnum indicated that the sector remained resilient despite the difficult economic conditions.
“Sales have improved in the last few years albeit in the single-digit range and this is likely to sustain. Every business is not spared from the recession but it also depends on how severe the impact is.
“We believe everyone wants to nurture a little hope in his life and, for some lucky ones, this comes true with Magnum,” it said.
Another industry player, who declined to be named, said the NFO was a small-ticket item, hence the affordability for consumers even in a downturn.
The performance of NFO companies in the last 12 months was also an indication of the sector’s resilience.
“Whether upturn or downturn, punters will continue to punt,” he said.
PETALING JAYA: The introduction of new products by number forecast operators (NFOs) is intended to draw consumers away from illegal operators and expand the legal market.
Magnum Corp Sdn Bhd, a 51% subsidiary of Multi-Purpose Holdings Bhd, and Berjaya Sports Toto Bhd (BToto) were given the green light by the Government in the middle of this year to introduce new games – the first since the Government froze approvals in 1992.
In September, Magnum launched the 4D Jackpot while BToto is expected to release a new lotto variant, Power Toto 6/55, by year-end to replace its existing lotto games, Toto 6/42.
BToto’s new game was expected to have a much larger matrix of numbers for punters to select and a minimum guaranteed upfront jackpot of RM3mil, the highest minimum jackpot size currently, a research house said.
The approvals given to the two companies, coupled with the authorities’ generous allocation of special draws, had turned the operating environment in favour of legal NFOs, said a bank-backed brokerage in a report.
“It may not be overly optimistic to expect the legal market to grow beyond the low single-digit level with the latest expansion of product offerings,” it said.
It noted that the sector had high single-digit growth from 2003 to 2005, partly due to the extension of product offerings to the permutation variant.
Sales of NFOs had grown at a compounded average growth rate of 2.5% in the past 10 years, it said.
In an e-mail reply to StarBiz, the management of Magnum indicated that the sector remained resilient despite the difficult economic conditions.
“Sales have improved in the last few years albeit in the single-digit range and this is likely to sustain. Every business is not spared from the recession but it also depends on how severe the impact is.
“We believe everyone wants to nurture a little hope in his life and, for some lucky ones, this comes true with Magnum,” it said.
Another industry player, who declined to be named, said the NFO was a small-ticket item, hence the affordability for consumers even in a downturn.
The performance of NFO companies in the last 12 months was also an indication of the sector’s resilience.
“Whether upturn or downturn, punters will continue to punt,” he said.
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