KUALA LUMPUR: Key Asian markets are expected to see cautious trading on Wednesday, Sept 1 on lingering concerns about the economic outlook despite firmer US consumer confidence.
US consumer confidence rose modestly in August and US home prices gained more than expected in June, easing some worries the economy is headed for another downturn soon, according to Reuters.
On Wall Street, US stocks ended little changed in choppy trading on Tuesday, closing out an August the bulls would like to forget
TECHNOLOGY [] stocks weighed on the broader market, dragging the Nasdaq lower and capping any efforts by the Dow and S&P 500 to move higher.
Broadcom Corp slumped 6.4 percent while the PHLX semiconductor index fell 1.9 percent to its lowest level in 10 months, as analysts picked that Intel Corp's revenue warning of last Friday would not be the last for the sector.
Reuters reported the Dow Jones industrial average edged up 4.99 points, or 0.05 percent, to 10,014.72. The Standard & Poor's 500 ticked up 0.41 point, or 0.04 percent, to 1,049.33. The Nasdaq Composite slipped 5.94 points, or 0.28 percent, to close at 2,114.03.
At Bursa Malaysia, stocks to watch include tech-related counters after the decline on Wall Street, Berjaya Corp Bhd, Maxis Bhd, MUDAJAYA GROUP BHD [] and oil and gas-related counters. Other companies which could see some trading interest are Muhibbah Engineering Bhd, ORIENTAL HOLDINGS BHD [] and KKB ENGINEERING BHD [].
Berjaya Corp and Kim Eng Holdings Ltd called off their discussions where the latter was to be a strategic investor in Inter-Pacific Securities Sdn Bhd.
Berjaya Corp said “both parties have mutually agreed to discontinue discussions on the possible partnership” where Kim Eng would emerge as a “strategic investor in the stockbroking business of Inter-Pacific Securities”.
Maxis posted net profit of RM532 million in the second quarter ended June 30, 2010 and it expects higher revenue growth momentum, underpinned by the encouraging demand for broadband and mobile Internet access.
Maxis’ operating profit was RM720 million while earnings per share were 7.10 sen. It declared an interim dividend of 8.0 sen per share.
Oil and gas related companies involved in the infrastructure could see some trading interest after Samsung Engineering Co., South Korea's largest industrial plant builder clinched a US$770 million order to build a petrochemical plant in Sabah.
Under the deal with Petronas Carigali Sdn Bhd, Samsung Engineering will complete the plant by December 2013.
Meanwhile, Mudajaya provided a detailed outlook on how it would finance its operations in India following several queries from Bursa Malaysia Securities.
Mudajaya said it would use cash surplus of RM295 million and its own funds, which may include profits generated by 80%-owned MIPP International Ltd (MIPP) to inject an additional RM631 million in RKM Powergen Private Ltd (RKM).
The RM631 million was the balance of its total investment obligation in RKM of RM871 million.
RKM is a special purpose vehicle set up to undertake a 4 x 360MW coal-based independent power plant (IPP) in Chhattisgarh, India. The RM631 million would be injected over the next two years.
Muhibbah Engineering secured a RM124.4 million contract for the proposed Offshore Marine Centre at Tuas South Avenue 8 in Singapore. The contract was awarded by Jurong Town Corporation and the project is scheduled to commence in September 2010.
Oriental Holdings was cautious about the outlook and said the performances of the PLANTATION [] subsidiaries may be impacted by the volatility of both crude palm oil (CPO) price and foreign exchange but the poor weather condition may affect the level of crop production.
It posted a 75% decline in its earnings at RM22.57 million for the second quarter ended June 30 compared with RM91. 23 million a year ago as it was impacted by a weaker plantation sector.
KKB Engineering’s subsidiary Harum Bidang Sdn Bhd has secured a RM114 million contract from CMS Infra Trading Sdn Bhd to supply steel pipes.
Harum Bidang was issued a letter of award by CMS Infra for the supply and delivery of various concrete line mild steel pipes and mechanical couplings.
Tuesday, August 31, 2010
Maxis Q2 profit hits RM532m
The quarterly net profit fell 10 per cent, mainly because of a one-off spending in its Fifa 2010 World Cup campaign and handset subsidies.
Maxis Bhd (6012), the country's largest mobile operator, registered a 10 per cent decline in its second quarter net profit, due mainly to a one-off spending in its Fifa 2010 World Cup campaign and handset subsidies.
It also announced a second interim dividend of 8 sen a share, or RM600 million in total, which is more than the company's net profit in the second quarter.
Maxis, controlled by tycoon T. Ananda Krishnan, posted a net profit of RM532 million for the quarter ended June 30 2010, against RM594 million in same quarter last year.
During the quarter, its earnings before interest, tax, depreciation and amortisation (Ebitda) margin fell to 46.9 per cent, from 50.6 per cent in the entire 2009.
However, chief executive officer Sandip Das was not worried as he said the steep decline in the margin was mainly driven by its World Cup sponsorship, which was a one-off event. Moving forward, he expects an uptake in the company's operating margin.
"Overall, I am very happy with the results. We posted a strong, all-rounder performance," said Sandip in a media briefing in Kuala Lumpur yesterday.
Maxis' quarterly revenue rose by more than 3 per cent to RM2.19 billion, from RM2.12 billion in the same period last year, due largely to its larger customer base in both voice and broadband segments.
For the quarter, the company added 280,000 new customers, against Celcom (Axiata) Bhd's and DiGi.Com Bhd's net additions of 215,000 and 157,000 respectively.
Although the company is still in second place in terms of mobile operators' overall broadband market share, Sandip remains confident that the broadband momentum is going strong and it is just a matter of time before it overtakes Celcom in the segment.
During the quarter, Maxis signed up 135,000 new mobile broadband customers to reach 448,000 customers. During the period, Celcom signed up just 72,000 mobile broadband customers to 707,000.
"We have a 53 per cent share of the broadband net adds share (among the top three mobile operators) during the quarter. It further signifies that our efforts in modernising the network and marketing are showing results," said Sandip.
The company also added that its mobile broadband growth story is on track and believes that by end-2012, half of its revenue will come from non-voice services.
Maxis' average revenue per user (Arpu), has remained stable. Its prepaid Arpu declined by about 2 per cent to RM36, while postpaid Arpu increased by 1 per cent to RM103.
Read more: Maxis Q2 profit hits RM532m http://www.btimes.com.my/Current_News/BTIMES/articles/maxisq210/Article/index_html#ixzz0yBg0B0NH
Maxis Bhd (6012), the country's largest mobile operator, registered a 10 per cent decline in its second quarter net profit, due mainly to a one-off spending in its Fifa 2010 World Cup campaign and handset subsidies.
It also announced a second interim dividend of 8 sen a share, or RM600 million in total, which is more than the company's net profit in the second quarter.
Maxis, controlled by tycoon T. Ananda Krishnan, posted a net profit of RM532 million for the quarter ended June 30 2010, against RM594 million in same quarter last year.
During the quarter, its earnings before interest, tax, depreciation and amortisation (Ebitda) margin fell to 46.9 per cent, from 50.6 per cent in the entire 2009.
However, chief executive officer Sandip Das was not worried as he said the steep decline in the margin was mainly driven by its World Cup sponsorship, which was a one-off event. Moving forward, he expects an uptake in the company's operating margin.
"Overall, I am very happy with the results. We posted a strong, all-rounder performance," said Sandip in a media briefing in Kuala Lumpur yesterday.
Maxis' quarterly revenue rose by more than 3 per cent to RM2.19 billion, from RM2.12 billion in the same period last year, due largely to its larger customer base in both voice and broadband segments.
For the quarter, the company added 280,000 new customers, against Celcom (Axiata) Bhd's and DiGi.Com Bhd's net additions of 215,000 and 157,000 respectively.
Although the company is still in second place in terms of mobile operators' overall broadband market share, Sandip remains confident that the broadband momentum is going strong and it is just a matter of time before it overtakes Celcom in the segment.
During the quarter, Maxis signed up 135,000 new mobile broadband customers to reach 448,000 customers. During the period, Celcom signed up just 72,000 mobile broadband customers to 707,000.
"We have a 53 per cent share of the broadband net adds share (among the top three mobile operators) during the quarter. It further signifies that our efforts in modernising the network and marketing are showing results," said Sandip.
The company also added that its mobile broadband growth story is on track and believes that by end-2012, half of its revenue will come from non-voice services.
Maxis' average revenue per user (Arpu), has remained stable. Its prepaid Arpu declined by about 2 per cent to RM36, while postpaid Arpu increased by 1 per cent to RM103.
Read more: Maxis Q2 profit hits RM532m http://www.btimes.com.my/Current_News/BTIMES/articles/maxisq210/Article/index_html#ixzz0yBg0B0NH
Friday, August 27, 2010
Thursday, August 26, 2010
Stocks to watch: Tenaga, CIMB, Genting, Sime Darby
KUALA LUMPUR: With the FBM KLCI managing to rebound to close sharply higher on Thursday, Aug 26, investors could see more follow-through buying interest on Friday for companies which posted strong set of earnings including CIMB Group and GENTING BHD [].
However, this would also hinge on external factors including Wall Street and concerns about a weakening economy.
With the weekend ahead, there could be some profit taking in the later part of Friday.
The FBM KLCI is again at a fresh 30 month high and year-to-date, it is up 10.62% when it closed at 1,408. It is the fourth best performing stock market, based on the 30-stock FBM KLCI, in Asia. Jakarta is the best performer, up 24.1%, Thailand 20.63% and the Philippines 17.78%. Singapore’s STI is just up 0.97%.
The worst performer is Shanghai’s Composite Index, down 20.56% while the Nikkei 225 is down 15.55% and Hong Kong’s Hang Seng Index 5.76%.
Stocks to watch include Tenaga Nasional which proposed a bonus issue of 1.119 billion bonus shares on a one-for-four basis and it also plans to double the authorised share capital to 10 billion shares.
CIMB Group Holdings Bhd posted a strong set of financial results for the second quarter ended June 30, 2010 with net profit of RM889.46 million, which was 34.1% above the RM663.15 million a year ago.
The stronger earnings were supported by a strong rebound in corporate and investment banking, surge in contribution from CIMB Niaga and drop in loan loss provisions.
Genting Bhd’s second quarter earnings surged 244% to RM739.17m from RM214.49m yr ago while revenue doubled to RM4.08 billion from RM2.1 billion. It declared dividend of 3.3 sen.
However, Genting Malaysia Bhd’s 2Q earnings fell 7.5% to RM305.69 million from RM330.48 million a year ago. Revenue was marginally higher at RM1.22 billion versus RM1.20 billion. It declared a dividend of 3.6 sen.
Meanwhile, Sime Darby could see some selling pressure after it posted net loss of RM77.35 million for the fourth quarter, stark a contrast from its net profit of RM984.04 million a year ago.
The losses followed additional provisions for the loss-making energy and utilities (E&U) division.
For the financial year ended June 30, it posted net profit of RM726.85 million compared with RM2.28 billion in net profit for FY09.
The E&U division reported an operating loss of RM.75 billion for FY2010 after making additional provisions of RM777.3 million for 4QFY2010.
“Including the RM1.308 billion provisions up to 3QFY2010, the total provisions for foreseeable losses and impairments for the full year amounted to RM2.085 billion,” it said.
However, this would also hinge on external factors including Wall Street and concerns about a weakening economy.
With the weekend ahead, there could be some profit taking in the later part of Friday.
The FBM KLCI is again at a fresh 30 month high and year-to-date, it is up 10.62% when it closed at 1,408. It is the fourth best performing stock market, based on the 30-stock FBM KLCI, in Asia. Jakarta is the best performer, up 24.1%, Thailand 20.63% and the Philippines 17.78%. Singapore’s STI is just up 0.97%.
The worst performer is Shanghai’s Composite Index, down 20.56% while the Nikkei 225 is down 15.55% and Hong Kong’s Hang Seng Index 5.76%.
Stocks to watch include Tenaga Nasional which proposed a bonus issue of 1.119 billion bonus shares on a one-for-four basis and it also plans to double the authorised share capital to 10 billion shares.
CIMB Group Holdings Bhd posted a strong set of financial results for the second quarter ended June 30, 2010 with net profit of RM889.46 million, which was 34.1% above the RM663.15 million a year ago.
The stronger earnings were supported by a strong rebound in corporate and investment banking, surge in contribution from CIMB Niaga and drop in loan loss provisions.
Genting Bhd’s second quarter earnings surged 244% to RM739.17m from RM214.49m yr ago while revenue doubled to RM4.08 billion from RM2.1 billion. It declared dividend of 3.3 sen.
However, Genting Malaysia Bhd’s 2Q earnings fell 7.5% to RM305.69 million from RM330.48 million a year ago. Revenue was marginally higher at RM1.22 billion versus RM1.20 billion. It declared a dividend of 3.6 sen.
Meanwhile, Sime Darby could see some selling pressure after it posted net loss of RM77.35 million for the fourth quarter, stark a contrast from its net profit of RM984.04 million a year ago.
The losses followed additional provisions for the loss-making energy and utilities (E&U) division.
For the financial year ended June 30, it posted net profit of RM726.85 million compared with RM2.28 billion in net profit for FY09.
The E&U division reported an operating loss of RM.75 billion for FY2010 after making additional provisions of RM777.3 million for 4QFY2010.
“Including the RM1.308 billion provisions up to 3QFY2010, the total provisions for foreseeable losses and impairments for the full year amounted to RM2.085 billion,” it said.
Top 10 Reason To Refinance Your Property
1. Save interest rate charged- Generally, a new financier will offer lower rates from existing financier, therefore borrower able to save interest.
2. Reduce monthly instalment- New financier offer lower interest rate, the monthly instalments will be reduced accordingly.
3. Shorten loan tenure- A borrowers initially may be applying loan tenure for 30 years, after he or she financially is more stable, he or she may decide to commit high monthly repayment which also directly will shorten the loan tenure e.g. 25 years or 20 years.
4. a Cash out home equity- Usually a property value will be appreciated through years, when the property value increase and the loan outstanding reduce, it will create an home equity for owner (borrower) . When owner (borrower) refinance the property the home equity will be cashed out.
5. e Debt consolidation- Understandably nowadays consumers are taking more than one borrowing , e.g. car loan, personal loan, credit card outstanding, term loan for business, study loan, over draft etc. Borrower may take opportunity to cash out the home equity and pay off the rest of loan or borrowing to consolidate the debt.
6. R Reduce home loan account- Borrower may have more than one home loan account, he or she can refinance to cash out one of the properties’ home equity to pay off the rest of the home loan account.
7. S Switching from variable rates to fixed rates or vice versa- Fixed rates and variable rates have very different features: variable rates are fluctuating according to BLR which is announced by Bank Negara Malaysia (BNM). Whereas fixed rate, the rates is constant even BLR is fluctuating. It is common that, fixed rates are much higher than the variable rates at the time a borrower sign acceptance of the offer.
8. S Switching from conventional loan to islamic loan or vice versa- Basically Islamic and conventional financing have no far differences. The major difference is the way or concept of Islamic financing is Syariah compliance. Some Muslim borrowers may change package to adhere to Islamic borrowing concepts.
9. S Change financier- Some borrowers may be experiencing unsatisfied quality of service provided by existing financier. So they refinance is to put their loan account to new financier.
10. Cancel MRTA- MRTA made it compulsory by most of the bank in the first time of borrowing of borrowers’ house. Borrower may refinance to other financier so that they allow to cancel the MRTA to get life insurance which is in long term provide better benefits and coverage.
Thanks and regards
2. Reduce monthly instalment- New financier offer lower interest rate, the monthly instalments will be reduced accordingly.
3. Shorten loan tenure- A borrowers initially may be applying loan tenure for 30 years, after he or she financially is more stable, he or she may decide to commit high monthly repayment which also directly will shorten the loan tenure e.g. 25 years or 20 years.
4. a Cash out home equity- Usually a property value will be appreciated through years, when the property value increase and the loan outstanding reduce, it will create an home equity for owner (borrower) . When owner (borrower) refinance the property the home equity will be cashed out.
5. e Debt consolidation- Understandably nowadays consumers are taking more than one borrowing , e.g. car loan, personal loan, credit card outstanding, term loan for business, study loan, over draft etc. Borrower may take opportunity to cash out the home equity and pay off the rest of loan or borrowing to consolidate the debt.
6. R Reduce home loan account- Borrower may have more than one home loan account, he or she can refinance to cash out one of the properties’ home equity to pay off the rest of the home loan account.
7. S Switching from variable rates to fixed rates or vice versa- Fixed rates and variable rates have very different features: variable rates are fluctuating according to BLR which is announced by Bank Negara Malaysia (BNM). Whereas fixed rate, the rates is constant even BLR is fluctuating. It is common that, fixed rates are much higher than the variable rates at the time a borrower sign acceptance of the offer.
8. S Switching from conventional loan to islamic loan or vice versa- Basically Islamic and conventional financing have no far differences. The major difference is the way or concept of Islamic financing is Syariah compliance. Some Muslim borrowers may change package to adhere to Islamic borrowing concepts.
9. S Change financier- Some borrowers may be experiencing unsatisfied quality of service provided by existing financier. So they refinance is to put their loan account to new financier.
10. Cancel MRTA- MRTA made it compulsory by most of the bank in the first time of borrowing of borrowers’ house. Borrower may refinance to other financier so that they allow to cancel the MRTA to get life insurance which is in long term provide better benefits and coverage.
Thanks and regards
Wednesday, August 25, 2010
Stocks to watch: PPB, Sime, IJM, Lion Industries
KUALA LUMPUR: Key markets may trade cautiously on Thursday, Aug 26 despite the marginal improvement on Wall Street overnight which saw some bargain hunting emerging for oversold stocks.
US stocks staged a comeback on bargain hunting after suffering steep early losses on disappointing economic data on Wednesday, while the yen pulled back from a 15-year high on mounting speculation Japanese authorities may intervene to stem the currency's rise.
The Dow Jones industrial average was up 19.61 points, or 0.20%, at 10,060.06. The Standard & Poor's 500 Index was up 3.46 points, or 0.33%, at 1,055.33. The Nasdaq Composite Index was up 17.78 points, or 0.84%, at 2,141.54.
Stocks to watch on Thursday include PPB GROUP BHD [], SIME DARBY BHD [], IJM Corp Bhd and Lion Industries Bhd.
PPB which released its earnings on Wednesday, announced a special single tier dividend of 65 sen per share and an interim single tier dividend of five sen per share for the financial year ending Dec 31, 2010. The ex-date is Sept 8.
Sime Darby will release its fourth quarter results and CIMB Research forecast net profit for FY ended June 30, 2010 to be RM2.616 billion and maintained Neutral recommendation and target price of RM8.15 in recent report. Its forecast assumed no more provisions in 4Q.
Meanwhile, The Edge FinancialDaily reports that IJM Corporation which already has an order book of RM3.6 billion is looking to add another RM2 billion worth of jobs into its stable in the current financial year ending March 31, 2011.
IJM Corp posted a 27% increase in earnings at RM90.05 million for the first quarter ended June 30, 2010 compared with net profit of RM70.82 million a year ago, despite lower earnings from the CONSTRUCTION [] division.
Operating revenues were RM986.08 million, down 15.1% from RM 1.16 billion a year ago. Earnings per share were 6.76 sen versus 5.39 sen.
Lion Industries Bhd staged a turnaround in its financial performance for the financial year ended June 30, 2010, recording net profit of RM363.45 million compared with net loss of RM278.29 million in FY09.
Revenue rose 17% to RM5.18 billion compared with RM4.42 billion. Net asset per share was RM3.78.
Axiata Group Bhd's net profit for the second quarter ended June 30, 2010 (2QFY10) rose 9.5% to RM576.81 million from RM526.83 million a year earlier driven by higher profit contribution from Celcom Axiata Bhd in Malaysia and Dialog Axiata PLC in Sri Lanka as well as a one-off gain on disposal of shares in PT XL Axiata Tbk (XL) in Indonesia.
The Edge FinancialDaily also reported that in yet another move that signals more mergers and acquisitions in the food industry, Fraser and Neave Holdings Bhd (F&N) will take up a 23.08% stake in COCOALAND HOLDINGS BHD [], sources say.
Cocoaland is Southeast Asia’s largest producer of fruit gummies and one of Malaysia’s leading manufacturers of snacks and chocolate products.
F&N and Cocoaland shares are suspended for the announcement.
Other companies which are due to release their earnings on Thursday include CIMB Group Holdings Bhd, Nestle, Mah Sing, SUNRISE BHD [], Bintulu Port and Cocoaland.
US stocks staged a comeback on bargain hunting after suffering steep early losses on disappointing economic data on Wednesday, while the yen pulled back from a 15-year high on mounting speculation Japanese authorities may intervene to stem the currency's rise.
The Dow Jones industrial average was up 19.61 points, or 0.20%, at 10,060.06. The Standard & Poor's 500 Index was up 3.46 points, or 0.33%, at 1,055.33. The Nasdaq Composite Index was up 17.78 points, or 0.84%, at 2,141.54.
Stocks to watch on Thursday include PPB GROUP BHD [], SIME DARBY BHD [], IJM Corp Bhd and Lion Industries Bhd.
PPB which released its earnings on Wednesday, announced a special single tier dividend of 65 sen per share and an interim single tier dividend of five sen per share for the financial year ending Dec 31, 2010. The ex-date is Sept 8.
Sime Darby will release its fourth quarter results and CIMB Research forecast net profit for FY ended June 30, 2010 to be RM2.616 billion and maintained Neutral recommendation and target price of RM8.15 in recent report. Its forecast assumed no more provisions in 4Q.
Meanwhile, The Edge FinancialDaily reports that IJM Corporation which already has an order book of RM3.6 billion is looking to add another RM2 billion worth of jobs into its stable in the current financial year ending March 31, 2011.
IJM Corp posted a 27% increase in earnings at RM90.05 million for the first quarter ended June 30, 2010 compared with net profit of RM70.82 million a year ago, despite lower earnings from the CONSTRUCTION [] division.
Operating revenues were RM986.08 million, down 15.1% from RM 1.16 billion a year ago. Earnings per share were 6.76 sen versus 5.39 sen.
Lion Industries Bhd staged a turnaround in its financial performance for the financial year ended June 30, 2010, recording net profit of RM363.45 million compared with net loss of RM278.29 million in FY09.
Revenue rose 17% to RM5.18 billion compared with RM4.42 billion. Net asset per share was RM3.78.
Axiata Group Bhd's net profit for the second quarter ended June 30, 2010 (2QFY10) rose 9.5% to RM576.81 million from RM526.83 million a year earlier driven by higher profit contribution from Celcom Axiata Bhd in Malaysia and Dialog Axiata PLC in Sri Lanka as well as a one-off gain on disposal of shares in PT XL Axiata Tbk (XL) in Indonesia.
The Edge FinancialDaily also reported that in yet another move that signals more mergers and acquisitions in the food industry, Fraser and Neave Holdings Bhd (F&N) will take up a 23.08% stake in COCOALAND HOLDINGS BHD [], sources say.
Cocoaland is Southeast Asia’s largest producer of fruit gummies and one of Malaysia’s leading manufacturers of snacks and chocolate products.
F&N and Cocoaland shares are suspended for the announcement.
Other companies which are due to release their earnings on Thursday include CIMB Group Holdings Bhd, Nestle, Mah Sing, SUNRISE BHD [], Bintulu Port and Cocoaland.
Tuesday, August 24, 2010
Stocks to watch: QL Resources, Tenaga, Genting Malaysia, MRCB
KUALA LUMPUR: Investors are expected to stay on the sidelines on Wednesday, Aug 25 after US markets fell for the fourth straight day on concerns the economic recovery is even weaker than had been feared.
The Dow and S&P 500 racked up their fourth day of losses in a row after an industry group reported that sales of U.S. existing homes in July fell to their slowest pace in 15 years.
The Dow Jones industrial average fell 133.96 points, or 1.32%, to 10,040.45. The Standard & Poor's 500 Index shed 15.49 points, or 1.45%, to 1,051.87. The Nasdaq Composite Index lost 35.87 points, or 1.66%, to 2,123.76.
The broad Russell 2000 index was down 1.2%at 595.59, but held above its July intraday low of 587.67.
At Bursa Malaysia, which saw the FBM KLCI extending to a fresh 30-month high, there could be some profit taking again. The broader market reflects the investors’ caution despite the late buying of Axiata which pushed the 30-stock index higher,
Investors will have a lot of corporate news to digest on Wednesday but yesterday’s batch of results were somewhat disappointing, including from MALAYSIAN RESOURCES CORP [] Bhd (MRCB).
Stocks to watch are QL RESOURCES BHD [], LONDON BISCUITS BHD [], TENAGA NASIONAL BHD [], Genting Malaysia Bhd, IOI Corp Bhd, MMC Corp Bhd and RHB CAPITAL BHD [].
The Edge FinancialDaily reports QL Resources is looking to more "egg-citing" times ahead. Having acquired a controlling stake in a local egg-producing rival, the spotlight now falls on QL Resources' overseas expansion as it pursues organic growth, and positions itself for potential acquisition opportunities.
The Edge FinancialDaily also reported that London Biscuits Bhd incurred a loss of RM230,000 when it disposed its entire stake of 23.86% in poultry player LAY HONG BHD [] to QL Resources Bhd for RM11.85 million.
The government has offered Tenaga Nasional to develop the first unit of 1,000MW coal-fired power plant on the power giant’s existing power plant site in Manjung, Perak. Tenaga said the main fuel would be coal and commercial operation date is March 1, 2015.
Genting Malaysia Bhd shareholders have approved a resolution to acquire Genting Singapore plc's operations in the UK for £340 million. At the EGM on Tuesday, the approval for the acquisition was 60.39%, or 1.177 billion shares.
MRCB reported a marginal 1.67% increase in earnings at RM12.24 million in the second quarter ended June 30, 2010 compared with RM12.04 million a year ago. Revenue shrank 24.5% to RM173.87 million from RM230.24 million.
MMC Corp Bhd posted profit of RM187.17 million for the second quarter ended June 30, 2010, which was 25.3% higher compared with RM149.35 million a year ago.
Profit attributable to owners of the company was RM88.12 million when compared with only RM5.85 million a year ago. However, profit attributable to minority interest declined to RM99.05 million from RM143.50 million.
RHB Capital’s earnings rose 12.4% to RM339.03 million in the second quarter ended June 30, 2010 from RM301.53 million a year ago.
Pre-tax profit was RM447.95 million, up 11.9% from RM400.06 million a year ago. Revenue was 8% higher at RM1.44 billion compared with RM1.34 billion.
The Dow and S&P 500 racked up their fourth day of losses in a row after an industry group reported that sales of U.S. existing homes in July fell to their slowest pace in 15 years.
The Dow Jones industrial average fell 133.96 points, or 1.32%, to 10,040.45. The Standard & Poor's 500 Index shed 15.49 points, or 1.45%, to 1,051.87. The Nasdaq Composite Index lost 35.87 points, or 1.66%, to 2,123.76.
The broad Russell 2000 index was down 1.2%at 595.59, but held above its July intraday low of 587.67.
At Bursa Malaysia, which saw the FBM KLCI extending to a fresh 30-month high, there could be some profit taking again. The broader market reflects the investors’ caution despite the late buying of Axiata which pushed the 30-stock index higher,
Investors will have a lot of corporate news to digest on Wednesday but yesterday’s batch of results were somewhat disappointing, including from MALAYSIAN RESOURCES CORP [] Bhd (MRCB).
Stocks to watch are QL RESOURCES BHD [], LONDON BISCUITS BHD [], TENAGA NASIONAL BHD [], Genting Malaysia Bhd, IOI Corp Bhd, MMC Corp Bhd and RHB CAPITAL BHD [].
The Edge FinancialDaily reports QL Resources is looking to more "egg-citing" times ahead. Having acquired a controlling stake in a local egg-producing rival, the spotlight now falls on QL Resources' overseas expansion as it pursues organic growth, and positions itself for potential acquisition opportunities.
The Edge FinancialDaily also reported that London Biscuits Bhd incurred a loss of RM230,000 when it disposed its entire stake of 23.86% in poultry player LAY HONG BHD [] to QL Resources Bhd for RM11.85 million.
The government has offered Tenaga Nasional to develop the first unit of 1,000MW coal-fired power plant on the power giant’s existing power plant site in Manjung, Perak. Tenaga said the main fuel would be coal and commercial operation date is March 1, 2015.
Genting Malaysia Bhd shareholders have approved a resolution to acquire Genting Singapore plc's operations in the UK for £340 million. At the EGM on Tuesday, the approval for the acquisition was 60.39%, or 1.177 billion shares.
MRCB reported a marginal 1.67% increase in earnings at RM12.24 million in the second quarter ended June 30, 2010 compared with RM12.04 million a year ago. Revenue shrank 24.5% to RM173.87 million from RM230.24 million.
MMC Corp Bhd posted profit of RM187.17 million for the second quarter ended June 30, 2010, which was 25.3% higher compared with RM149.35 million a year ago.
Profit attributable to owners of the company was RM88.12 million when compared with only RM5.85 million a year ago. However, profit attributable to minority interest declined to RM99.05 million from RM143.50 million.
RHB Capital’s earnings rose 12.4% to RM339.03 million in the second quarter ended June 30, 2010 from RM301.53 million a year ago.
Pre-tax profit was RM447.95 million, up 11.9% from RM400.06 million a year ago. Revenue was 8% higher at RM1.44 billion compared with RM1.34 billion.
YTL Comms’ WiMAX launch may not be on time
KUALA LUMPUR: YTL Communications Bhd’s (YTL Comms) November commercial launch date for its WiMAX service may not be met if it does not get the necessary network interconnection with the other four cellular players on time.
The interconnection agreements with the four cellular companies have been signed. A two-month period is needed for the execution.
“The only thing that could stop us from doing the November launch is the interconnection,’’ said YTL Comms executive director Datuk Yeoh Seok Hong.
Interconnection is vital since YTL Comms will offer data and voice connectivity, and the cellular prefix allotted to YTL Comms is 018. If all goes as planned, about 65% of the population in the country will be covered by YTL Comms’ WiMAX network at the point of the commercial launch.
Wing K. Lee
YTL Comms was supposed to launch the service in July but now the dateline has been pushed to November. But YTL Comms CEO Wing K. Lee (pic) claims that the July dateline was only for a soft launch and not a commercial launch and the latter will be in November.
“We have been testing our network for a while now and we are very much on track on our network built-up,’’ Lee told StarBiz recently.
Sadly, the service will not be available in east Malaysia for the licence that YTL Comms has is for Peninsular Malaysia and that does not allow it to roll out services in Sabah and Sarawak as well.
But YTL Comms is hoping it would land itself with the extension into east Malaysia. It is still holding talks with the regulator on the matter.
“It is part of the country and it needs to have good connectivity (as well),’’ Lee added.
He would not talk on pricing plans and on the speed of transmission, he would merely say “it will be five times better than 3G and it will come in multiple of megabits.’’
Converged services is what YTL Comms is working towards launching. That means you can have voice, video, data – all in one offering. The devices are being tested and by the time the service is available, the devices will be offered in the market place.
Whether or not the interconnection comes on time, YTL Comms would go ahead with its plans with an educational programme of what WiMAX can do and what to expect at the launch date.
YTL Comms is investing RM2.5bil to bring converged services to the market place. It is working with several partners such as Cisco, Samsung, Clearwire, CGT Semiconductors to bring the service. It also has a tie-up with Telekom Malaysia Bhd and Fiberail for backhaul operations.
The interconnection agreements with the four cellular companies have been signed. A two-month period is needed for the execution.
“The only thing that could stop us from doing the November launch is the interconnection,’’ said YTL Comms executive director Datuk Yeoh Seok Hong.
Interconnection is vital since YTL Comms will offer data and voice connectivity, and the cellular prefix allotted to YTL Comms is 018. If all goes as planned, about 65% of the population in the country will be covered by YTL Comms’ WiMAX network at the point of the commercial launch.
Wing K. Lee
YTL Comms was supposed to launch the service in July but now the dateline has been pushed to November. But YTL Comms CEO Wing K. Lee (pic) claims that the July dateline was only for a soft launch and not a commercial launch and the latter will be in November.
“We have been testing our network for a while now and we are very much on track on our network built-up,’’ Lee told StarBiz recently.
Sadly, the service will not be available in east Malaysia for the licence that YTL Comms has is for Peninsular Malaysia and that does not allow it to roll out services in Sabah and Sarawak as well.
But YTL Comms is hoping it would land itself with the extension into east Malaysia. It is still holding talks with the regulator on the matter.
“It is part of the country and it needs to have good connectivity (as well),’’ Lee added.
He would not talk on pricing plans and on the speed of transmission, he would merely say “it will be five times better than 3G and it will come in multiple of megabits.’’
Converged services is what YTL Comms is working towards launching. That means you can have voice, video, data – all in one offering. The devices are being tested and by the time the service is available, the devices will be offered in the market place.
Whether or not the interconnection comes on time, YTL Comms would go ahead with its plans with an educational programme of what WiMAX can do and what to expect at the launch date.
YTL Comms is investing RM2.5bil to bring converged services to the market place. It is working with several partners such as Cisco, Samsung, Clearwire, CGT Semiconductors to bring the service. It also has a tie-up with Telekom Malaysia Bhd and Fiberail for backhaul operations.
Monday, August 23, 2010
GentingM, QL Resources, TM, Proton
KUALA LUMPUR: Key regional markets could see some selling pressure on Tuesday, Aug 24 following the cautious overnight close on Wall Street as investors again worried about the health of the global economy.
On Wall Street, the dollar strengthened against major currencies, including the euro, which was further hurt by poor European economic data and prospects of loose monetary policy for a longer period in the region.
The Dow Jones industrial average finished down 39.21 points, or 0.38 percent, at 10,174.41, while The Standard & Poor's 500 Index lost 4.33 points, or 0.40 percent, to 1,067.36. The Nasdaq Composite Index fell 20.13 points, or 0.92 percent, to 2,159.63.
At Bursa Malaysia, investors would be watching whether the FBM KLCI could hold on to the 1,400 level, the first time in 30 months, as the broader market showed some signs of caution and profit taking.
Stocks to watch on Tuesday include Genting Malaysia Bhd, QL Resources Bhd, Telekom Malaysia Bhd and Proton Holdings Bhd.
Investors will also have to brace for the corporate earnings which are into the full swing. Companies which are expected to announce their results are Axiata Group Bhd, IOI Corporation Bhd, QSR Brands Bhd, Malaysian Resources Corp Bhd and Malaysian Bulk Carriers Bhd.
Genting Malaysia’s EGM on Tuesday is for shareholders to decide on its controversial decision to acquire the casino businesses in UK from Genting Singapore plc for 340 million pound sterling.
Meanwhile, in Tuesday’s The Edge FinancialDaily, it reports that the quiet poultry industry is seeing some "egg-citement" with new corporate developments.
QL Resources Bhd yesterday acquired 11 million shares or 23.29% of Lay Hong Bhd in an off-market transaction. The identity of the seller was not disclosed but it is believed to be London Biscuits Bhd.
Telekom Malaysia’s net profit was more than halved to RM124.4 million in its second quarter ended June 30, 2010 (2QFY10) from RM266 million a year earlier due to lower other operating income and lower unrealised forex translation gains on borrowings of RM18.1 million versus RM123.2 million previously.
Proton posted net profit of RM84.68 million for the 1Q ended June 30, 2010, up 55.2% from RM54.55 million a year ago, underpinned by higher sales volume and improved profit margins from better product mix.
Revenue rose to RM2.29 billion from RM1.85 billion in 2009, while earnings per share improved to 15.40 sen from 9.90 sen.
Proton said that in line with the improved market sentiments, its domestic sales volume grew by 17% arising from demands for its three core models, namely, Saga, Persona and Exora.
Boustead Holdings Bhd’s net profit for the second quarter (2Q) ended June 30, 2010 surged 212% to RM146.5 million from RM46.9 million a year ago, mainly due to stronger palm oil prices and higher sales volume.
As for Axiata, RHB Research Institute believes Axiata’s results are likely to come in stronger on a year-on-year basis, underpinned by strong performances at Excelcomindo and Dialog; and a low base effect.
On Wall Street, the dollar strengthened against major currencies, including the euro, which was further hurt by poor European economic data and prospects of loose monetary policy for a longer period in the region.
The Dow Jones industrial average finished down 39.21 points, or 0.38 percent, at 10,174.41, while The Standard & Poor's 500 Index lost 4.33 points, or 0.40 percent, to 1,067.36. The Nasdaq Composite Index fell 20.13 points, or 0.92 percent, to 2,159.63.
At Bursa Malaysia, investors would be watching whether the FBM KLCI could hold on to the 1,400 level, the first time in 30 months, as the broader market showed some signs of caution and profit taking.
Stocks to watch on Tuesday include Genting Malaysia Bhd, QL Resources Bhd, Telekom Malaysia Bhd and Proton Holdings Bhd.
Investors will also have to brace for the corporate earnings which are into the full swing. Companies which are expected to announce their results are Axiata Group Bhd, IOI Corporation Bhd, QSR Brands Bhd, Malaysian Resources Corp Bhd and Malaysian Bulk Carriers Bhd.
Genting Malaysia’s EGM on Tuesday is for shareholders to decide on its controversial decision to acquire the casino businesses in UK from Genting Singapore plc for 340 million pound sterling.
Meanwhile, in Tuesday’s The Edge FinancialDaily, it reports that the quiet poultry industry is seeing some "egg-citement" with new corporate developments.
QL Resources Bhd yesterday acquired 11 million shares or 23.29% of Lay Hong Bhd in an off-market transaction. The identity of the seller was not disclosed but it is believed to be London Biscuits Bhd.
Telekom Malaysia’s net profit was more than halved to RM124.4 million in its second quarter ended June 30, 2010 (2QFY10) from RM266 million a year earlier due to lower other operating income and lower unrealised forex translation gains on borrowings of RM18.1 million versus RM123.2 million previously.
Proton posted net profit of RM84.68 million for the 1Q ended June 30, 2010, up 55.2% from RM54.55 million a year ago, underpinned by higher sales volume and improved profit margins from better product mix.
Revenue rose to RM2.29 billion from RM1.85 billion in 2009, while earnings per share improved to 15.40 sen from 9.90 sen.
Proton said that in line with the improved market sentiments, its domestic sales volume grew by 17% arising from demands for its three core models, namely, Saga, Persona and Exora.
Boustead Holdings Bhd’s net profit for the second quarter (2Q) ended June 30, 2010 surged 212% to RM146.5 million from RM46.9 million a year ago, mainly due to stronger palm oil prices and higher sales volume.
As for Axiata, RHB Research Institute believes Axiata’s results are likely to come in stronger on a year-on-year basis, underpinned by strong performances at Excelcomindo and Dialog; and a low base effect.
SP-Setia
HI Guy
Sp-Setia, started to move last week. I will wait until it reach RM5 to sell.
Hope it able to climb up....
Sp-Setia, started to move last week. I will wait until it reach RM5 to sell.
Hope it able to climb up....
Scomi Marine nets RM55m Q2 profit
Scomi Marine Bhd's net profit for the second quarter ended June 30, 2010 increased to RM55.368 million from RM22.842 million in the same quarter of its 2009 financial year.
The increase in net profit was mainly due to gains from the disposal of an associate company, CH Offshore Ltd (CHO), which was completed on April 28, it said in a statement.
Its revenue for the quarter dwindled to RM101.013 million 0r 8.9 per cent lower compared to RM110.9 million recorded in the same quarter last year.
The lower revenue was mainly due to the translation loss as the US dollar weakened against the ringgit during the said period, it said.
Excluding the gains on disposal, net profit from the company’s operations was registered at RM6.5 million, 71 per cent lower as compared to the same quarter last year and was the result of lower margins from the marine logistics and offshore support sectors, it said. -- Bernama
Read more: Scomi Marine nets RM55m Q2 profit http://www.btimes.com.my/Current_News/BTIMES/articles/20100823213847/Article/index_html#ixzz0xRyhI55p
The increase in net profit was mainly due to gains from the disposal of an associate company, CH Offshore Ltd (CHO), which was completed on April 28, it said in a statement.
Its revenue for the quarter dwindled to RM101.013 million 0r 8.9 per cent lower compared to RM110.9 million recorded in the same quarter last year.
The lower revenue was mainly due to the translation loss as the US dollar weakened against the ringgit during the said period, it said.
Excluding the gains on disposal, net profit from the company’s operations was registered at RM6.5 million, 71 per cent lower as compared to the same quarter last year and was the result of lower margins from the marine logistics and offshore support sectors, it said. -- Bernama
Read more: Scomi Marine nets RM55m Q2 profit http://www.btimes.com.my/Current_News/BTIMES/articles/20100823213847/Article/index_html#ixzz0xRyhI55p
Sunday, August 22, 2010
AirAsia (RM1.71; Buy; Price Target: RM1.95; AIRA MK)
Dividend policy by end of this year?
The media highlighted AirAsia is looking to propose a
dividend policy by 3Q10 that is targeted to be in place by
end-FY10.
Although this is positive for AirAsia’s shareholders, we do
not expect yield to be attractive considering AirAsia’s huge
capital commitment as it is still at its expansion phase.
Maintain Buy with RM1.95 TP based on 9x CY11F EPS. We
think current valuation is unjustified with AirAsia being the
largest low cost carrier in the region. Additionally, AirAsia’s
ability to fund new aircraft purchases and repay loans
should no longer be a major concern, as operating cash
flows should strengthen on stronger earnings and limited
The media highlighted AirAsia is looking to propose a
dividend policy by 3Q10 that is targeted to be in place by
end-FY10.
Although this is positive for AirAsia’s shareholders, we do
not expect yield to be attractive considering AirAsia’s huge
capital commitment as it is still at its expansion phase.
Maintain Buy with RM1.95 TP based on 9x CY11F EPS. We
think current valuation is unjustified with AirAsia being the
largest low cost carrier in the region. Additionally, AirAsia’s
ability to fund new aircraft purchases and repay loans
should no longer be a major concern, as operating cash
flows should strengthen on stronger earnings and limited
Saturday, August 21, 2010
Stocks to watch: Focus Point, Maybank, SunCity, UMW
KUALA LUMPUR: The local market may trade in a tight range this coming week, starting Monday, Aug 23, with some downside due to concerns from a cautious Wall Street but this could be offset by the firm Malaysian corporate earnings including MALAYAN BANKING BHD [].
On Wall Street, US stocks slipped on Friday, Aug 20 and the S&P 500 and Dow fell for a second straight week on persistent concerns the recovery has tapered off. Even so, major indexes came off Friday's lows as some investors homed in on positive outlooks in the tech sector and used this week's M&A news as an excuse for late-day buying, according to Reuters.
The Dow Jones industrial average slipped 57.59 points, or 0.56 percent, to 10,213.62. The Standard & Poor's 500 Index was off 3.94 points, or 0.37 percent, to 1,071.69. The Nasdaq Composite Index added 0.81 points, or 0.04 percent, to 2,179.76.
At Bursa Malaysia, investors would also want to see whether there could be extended follow-through buying interest and push the FBM KLCI past the crucial 1,400 level. However, the weaker broader market late last week could see the 30-stock index giving up some gains.
Stocks to watch on Monday are Focus Point Holdings Bhd, Malayan Banking Bhd, SUNWAY CITY BHD [] and UMW HOLDINGS BHD [].
After an 11th hour pullout, Focus Point Holdings Bhd will finally be listed on the local exchange on Monday. To recap, Focus Point had deferred the listing following allegations made against the company that contact lenses prescribed and/or dispensed by personnel were not qualified to do so.
The listing exercise involved the public issue of 41.2 million new shares and offer for sale of up to 15.8 million existing shares at 20 sen each at an offer price of 39 sen.
The listing was derailed due to the emergence of a complaint made to the regulators on July 23 claiming, among other things, that contact lenses were prescribed or dispensed by personnel who were not qualified to do so.
Maybank reported net profit of RM912.47 million in the fourth quarter ended June 30, 2010 versus net loss of RM1.118 billion a year ago when it was affected by the RM1.97 billion impairment charge on its investment in Bank Internasional Indonesia (BII) and MCB Bank.
Revenue dipped to RM4.73 billion versus RM4.85 billion. Earnings per share were 12.89 sen versus loss per share of 17.62 sen. Its pre-tax profit was RM1.36 billion versus a pre-tax loss of RM821.67 million. Maybank proposed a final dividend of 44 sen per share.
In Sunway City, the property developer posted net profit of RM71.66 million in its second quarter ended June 30, 2010 (2Q2010) on the back of a revenue of RM262.29 million.
The strong financial performance was underpinned by the group's core businesses being the property development and property investment segments. It declared an interim dividend of 31 sen per share.
UMW reported RM211.69 million in net profit for the second quarter ended June 30, 2010 (2Q10). Earnings jumped 166.6% from RM79.43 million a year ago due to higher sales of Toyota and Perodua vehicles and favourable model mix.
The improved performance was driven by the equipment and manufacturing & engineering segments coupled with favourable foreign exchange rates, accounted for the significant improvement in profit for the current quarter.
UMW declared an interim single-tier dividend of 20% or 10 sen per share for the year ending Dec 31, 2010 – totaling net dividend payable of about RM114.5 million – to be paid on Oct 7.
On Wall Street, US stocks slipped on Friday, Aug 20 and the S&P 500 and Dow fell for a second straight week on persistent concerns the recovery has tapered off. Even so, major indexes came off Friday's lows as some investors homed in on positive outlooks in the tech sector and used this week's M&A news as an excuse for late-day buying, according to Reuters.
The Dow Jones industrial average slipped 57.59 points, or 0.56 percent, to 10,213.62. The Standard & Poor's 500 Index was off 3.94 points, or 0.37 percent, to 1,071.69. The Nasdaq Composite Index added 0.81 points, or 0.04 percent, to 2,179.76.
At Bursa Malaysia, investors would also want to see whether there could be extended follow-through buying interest and push the FBM KLCI past the crucial 1,400 level. However, the weaker broader market late last week could see the 30-stock index giving up some gains.
Stocks to watch on Monday are Focus Point Holdings Bhd, Malayan Banking Bhd, SUNWAY CITY BHD [] and UMW HOLDINGS BHD [].
After an 11th hour pullout, Focus Point Holdings Bhd will finally be listed on the local exchange on Monday. To recap, Focus Point had deferred the listing following allegations made against the company that contact lenses prescribed and/or dispensed by personnel were not qualified to do so.
The listing exercise involved the public issue of 41.2 million new shares and offer for sale of up to 15.8 million existing shares at 20 sen each at an offer price of 39 sen.
The listing was derailed due to the emergence of a complaint made to the regulators on July 23 claiming, among other things, that contact lenses were prescribed or dispensed by personnel who were not qualified to do so.
Maybank reported net profit of RM912.47 million in the fourth quarter ended June 30, 2010 versus net loss of RM1.118 billion a year ago when it was affected by the RM1.97 billion impairment charge on its investment in Bank Internasional Indonesia (BII) and MCB Bank.
Revenue dipped to RM4.73 billion versus RM4.85 billion. Earnings per share were 12.89 sen versus loss per share of 17.62 sen. Its pre-tax profit was RM1.36 billion versus a pre-tax loss of RM821.67 million. Maybank proposed a final dividend of 44 sen per share.
In Sunway City, the property developer posted net profit of RM71.66 million in its second quarter ended June 30, 2010 (2Q2010) on the back of a revenue of RM262.29 million.
The strong financial performance was underpinned by the group's core businesses being the property development and property investment segments. It declared an interim dividend of 31 sen per share.
UMW reported RM211.69 million in net profit for the second quarter ended June 30, 2010 (2Q10). Earnings jumped 166.6% from RM79.43 million a year ago due to higher sales of Toyota and Perodua vehicles and favourable model mix.
The improved performance was driven by the equipment and manufacturing & engineering segments coupled with favourable foreign exchange rates, accounted for the significant improvement in profit for the current quarter.
UMW declared an interim single-tier dividend of 20% or 10 sen per share for the year ending Dec 31, 2010 – totaling net dividend payable of about RM114.5 million – to be paid on Oct 7.
MISC (RM8.86; Buy; Price Target: RM9.10; MISC MK)
Smaller loss for container shipping
• 1QFY11 net profit jumped 126% q-o-q to RM428.0m,
beating expectations
• Earnings were driven by smaller-than-expected loss for
the container shipping segment, and possibly one-off
‘other income’
• Maintain Buy and SOP-derived RM9.10 TP
• 1QFY11 net profit jumped 126% q-o-q to RM428.0m,
beating expectations
• Earnings were driven by smaller-than-expected loss for
the container shipping segment, and possibly one-off
‘other income’
• Maintain Buy and SOP-derived RM9.10 TP
Friday, August 20, 2010
MCMC disavows involvement in 98.8FM axings
KUALA LUMPUR, Aug 20 — The Malaysian Communications and Multimedia Commission (MCMC) explained today that it was not responsible for the removal of several individuals from Mandarin radio station 98.8 FM and was merely investigating it for allegedly breaching licence conditions.
In a media statement this evening, the MCMC said its investigations had kicked off following complaints that the station had allegedly aired content that may “upset the sensibilities and sentiments of races in the country”.
“Following several complaints received by MCMC on the morning programme, the radio station, Star Rfm Sdn Bhd (98.8 FM) is being investigated for breach of licence conditions.
“MCMC has also informed the station regarding the complaints received,” the commission said.
It added that Star Rfm, a subsidiary belonging to The Star Publications (M) Bhd, holds the Content Applications Service Provider – Individual (CASP-I) which requires its compliance to licence conditions.
“This includes prohibition on providing content which may upset the sensibilities and sentiments of any race or religion in this country,” it said in the statement.
It also explained that the MCMC had received complaints against the content broadcasted by the station on August 13 this year, with claims that it had contained sensitive material.
“Accordingly, MCMC evaluated the complaint and proceeded to investigate the radio station. The purpose of the investigation is to establish whether there is an offence committed,” it said.
The statement did not specify when it would conclude its investigations but assured that once this was completed, it would hand over the matter to the Attorney-General’s Chambers for further action.
“Any decision with regards to this investigation will be communicated in due course, in accordance with the provision in the Communications and Multimedia Act 1998 or other relevant laws,” it said.
The commission also gave its assurance that its only concern in the matter was on the station’s compliance with the licence conditions and to ensure that there would not be any future breach.
It then stressed that staffing issues resulting from the investigation was purely the jurisdiction of the station’s management and not the MCMC’s.
“Issues relating to staffing of any licensee is an internal matter within the organisation. The MCMC is unable to comment.
“Any actions taken by the MCMC will be in accordance with the licence conditions for radio stations and provisions under any relevant laws,” it said.
Deejay Jamaluddin Ibrahim, who hosts the “Hello Malaysia” breakfast programme, was told by the station to take a leave of absence on Wednesday following a letter from the MCMC.
He was alleged to have touched on racially sensitive issues during the programme last week when popular columnist Oyoung Wen Feng was invited to speak on issues pertaining to racial discrimination.
Following his removal, Jamaluddin’s colleagues on the station caused a bigger stir yesterday when they wept openly on-air while discussing the issue.
They also turned the programme into a tribute to the popular host, the son of Malaysian freedom fighters the late Shamsiah Fakeh and Ibrahim Mohammed who both lived in exile in China due to their involvement in the Communist Party of Malaya.
Since then, the breakfast programme’s remaining three deejays have also been removed, while its chief executive officer Wong Lai Ngo and senior programme manager Tan Chia Yong were suspended.
It was speculated that the MCA was the silent hand behind Jamaluddin’s removal for the deejay was known to be supportive of the party president Datuk Seri Dr Chua Soi Lek’s predecessor, Datuk Seri Ong Tee Keat.
Dr Chua has, however, denied this.
In a media statement this evening, the MCMC said its investigations had kicked off following complaints that the station had allegedly aired content that may “upset the sensibilities and sentiments of races in the country”.
“Following several complaints received by MCMC on the morning programme, the radio station, Star Rfm Sdn Bhd (98.8 FM) is being investigated for breach of licence conditions.
“MCMC has also informed the station regarding the complaints received,” the commission said.
It added that Star Rfm, a subsidiary belonging to The Star Publications (M) Bhd, holds the Content Applications Service Provider – Individual (CASP-I) which requires its compliance to licence conditions.
“This includes prohibition on providing content which may upset the sensibilities and sentiments of any race or religion in this country,” it said in the statement.
It also explained that the MCMC had received complaints against the content broadcasted by the station on August 13 this year, with claims that it had contained sensitive material.
“Accordingly, MCMC evaluated the complaint and proceeded to investigate the radio station. The purpose of the investigation is to establish whether there is an offence committed,” it said.
The statement did not specify when it would conclude its investigations but assured that once this was completed, it would hand over the matter to the Attorney-General’s Chambers for further action.
“Any decision with regards to this investigation will be communicated in due course, in accordance with the provision in the Communications and Multimedia Act 1998 or other relevant laws,” it said.
The commission also gave its assurance that its only concern in the matter was on the station’s compliance with the licence conditions and to ensure that there would not be any future breach.
It then stressed that staffing issues resulting from the investigation was purely the jurisdiction of the station’s management and not the MCMC’s.
“Issues relating to staffing of any licensee is an internal matter within the organisation. The MCMC is unable to comment.
“Any actions taken by the MCMC will be in accordance with the licence conditions for radio stations and provisions under any relevant laws,” it said.
Deejay Jamaluddin Ibrahim, who hosts the “Hello Malaysia” breakfast programme, was told by the station to take a leave of absence on Wednesday following a letter from the MCMC.
He was alleged to have touched on racially sensitive issues during the programme last week when popular columnist Oyoung Wen Feng was invited to speak on issues pertaining to racial discrimination.
Following his removal, Jamaluddin’s colleagues on the station caused a bigger stir yesterday when they wept openly on-air while discussing the issue.
They also turned the programme into a tribute to the popular host, the son of Malaysian freedom fighters the late Shamsiah Fakeh and Ibrahim Mohammed who both lived in exile in China due to their involvement in the Communist Party of Malaya.
Since then, the breakfast programme’s remaining three deejays have also been removed, while its chief executive officer Wong Lai Ngo and senior programme manager Tan Chia Yong were suspended.
It was speculated that the MCA was the silent hand behind Jamaluddin’s removal for the deejay was known to be supportive of the party president Datuk Seri Dr Chua Soi Lek’s predecessor, Datuk Seri Ong Tee Keat.
Dr Chua has, however, denied this.
Maybank posts record profit in FY10
KUALA LUMPUR, Aug 20 — Malaysia’s largest lender Malayan Banking (Maybank) posted record full year profits, driven by robust loans growth and said it expects to achieve better earnings in 2011.
“It is indeed a year of achievement as we cross the regional milestone of US$100 billion in total assets and US$1 billion (RM3.2 billion) in profit after tax,” Datuk Seri Abdul Wahid Omar, Maybank’s chief executive, said.
The bank is seen as the best proxy to Malaysia’s strong economic recovery, given its diversified exposure to both business and consumer loans. It also has operations in Singapore and Indonesia.
Malaysian banks are expected to see strong earnings expansion this year helped by the country’s economic recovery with second quarter GDP growth at 8.9 per cent and a boost in corporate activity.
“Maybank’s results are relatively in line as it falls within five per cent of expectations. It was quite a positive surprise on dividends,” analyst Lim Sue Lin of HwangDBS said.
The company declared a final dividend of 44 sen per share, with the net dividend payment for the financial year totalling RM2.9 billion.
Full-year net profit rose to RM3.82 billion, surpassing its prior best ever full-year net profit of RM3.18 ringgit reported in fiscal 2007, and beating analyst expectations of RM3.7 billion.
Maybank, with a market value of US$18 billion, posted an April-June net profit of RM912.5 million compared with a loss of RM1.1 billion a year ago.
Loan loss provisions were significantly lower in the quarter at RM311.2 million compared with RM782.5 million in the year ago.
In July, Malaysia’s third-largest lender by assets, Public Bank, reported a 20 per cent rise in second quarter earnings boosted by strong domestic loans growth and and higher non-interest income.
In the same month Southeast Asia’s largest bank Singapore’s DBS posted a surprising quarterly loss, hurt by a writedown, though its core earnings beat market expectations.
Maybank said it has set two key performance indicators for 2011 — a growth in loans and debt securities of 12 per cent and return on equity of 14 per cent.
It expects demand for financing to remain strong, driven mainly by consumer finance in Malaysia as well as consumer and small and medium enterprises in Indonesia.
It is targeting a financing growth rate of 24 per cent in its Indonesian unit Bank Internasional Indonesia, 12 per cent in Malaysia and five per cent in Singapore.
The company, which had earlier in May said it was mulling a dual-listing in Indonesia, said it was hopeful that it could happen next year, after regulatory approvals.
Fourteen out of 22 analysts tracked by Thomson Reuters I/B/E/S have a “buy” or “strong buy” rating on Maybank, with five calling it a “hold”, two rating it an “underperform” and one other a “sell”.
Maybank shares have gained 17.6 per cent this year, outperforming the broader market’s 9.4 per cent rise, but lags Malaysia’s top deal maker CIMB’s 18.7 per cent gain. — Reuters
“It is indeed a year of achievement as we cross the regional milestone of US$100 billion in total assets and US$1 billion (RM3.2 billion) in profit after tax,” Datuk Seri Abdul Wahid Omar, Maybank’s chief executive, said.
The bank is seen as the best proxy to Malaysia’s strong economic recovery, given its diversified exposure to both business and consumer loans. It also has operations in Singapore and Indonesia.
Malaysian banks are expected to see strong earnings expansion this year helped by the country’s economic recovery with second quarter GDP growth at 8.9 per cent and a boost in corporate activity.
“Maybank’s results are relatively in line as it falls within five per cent of expectations. It was quite a positive surprise on dividends,” analyst Lim Sue Lin of HwangDBS said.
The company declared a final dividend of 44 sen per share, with the net dividend payment for the financial year totalling RM2.9 billion.
Full-year net profit rose to RM3.82 billion, surpassing its prior best ever full-year net profit of RM3.18 ringgit reported in fiscal 2007, and beating analyst expectations of RM3.7 billion.
Maybank, with a market value of US$18 billion, posted an April-June net profit of RM912.5 million compared with a loss of RM1.1 billion a year ago.
Loan loss provisions were significantly lower in the quarter at RM311.2 million compared with RM782.5 million in the year ago.
In July, Malaysia’s third-largest lender by assets, Public Bank, reported a 20 per cent rise in second quarter earnings boosted by strong domestic loans growth and and higher non-interest income.
In the same month Southeast Asia’s largest bank Singapore’s DBS posted a surprising quarterly loss, hurt by a writedown, though its core earnings beat market expectations.
Maybank said it has set two key performance indicators for 2011 — a growth in loans and debt securities of 12 per cent and return on equity of 14 per cent.
It expects demand for financing to remain strong, driven mainly by consumer finance in Malaysia as well as consumer and small and medium enterprises in Indonesia.
It is targeting a financing growth rate of 24 per cent in its Indonesian unit Bank Internasional Indonesia, 12 per cent in Malaysia and five per cent in Singapore.
The company, which had earlier in May said it was mulling a dual-listing in Indonesia, said it was hopeful that it could happen next year, after regulatory approvals.
Fourteen out of 22 analysts tracked by Thomson Reuters I/B/E/S have a “buy” or “strong buy” rating on Maybank, with five calling it a “hold”, two rating it an “underperform” and one other a “sell”.
Maybank shares have gained 17.6 per cent this year, outperforming the broader market’s 9.4 per cent rise, but lags Malaysia’s top deal maker CIMB’s 18.7 per cent gain. — Reuters
Thursday, August 19, 2010
Stocks to watch: Tech stocks, Maybank, HL Bank, Dialog
KUALA LUMPUR: The market may take a breather on Friday, Aug 20 after the run-up in recent days, pushing the FBM KLCI near the psychologically important 1,400 level.
Weighing on investors’ sentiment would be the weak overnight close on Wall Street, but the bright spot would be the TECHNOLOGY [] sector following positive data from the North America-based manufacturers of semiconductor equipment and also from giants, Dell and HP.
Intel’s US$7.7 billion acquisition for security software maker McAfee Inc would also spur interest in the tech industry.
The acquisition of McAfee is Intel’s largest-ever acquisition to bolster the appeal of its chips as it tries to expand from PCs into the burgeoning market for Web-connected gadgets.
On Wall Street, the Dow Jones industrial average was down 144.33 points, or 1.39 percent, at 10,271.21. The benchmark Standard & Poor's 500 Index was down 18.53 points, or 1.69 percent, at 1,075.63. The Nasdaq Composite Index was down 36.75 points, or 1.66 percent, at 2,178.95.
Reuters reported investors fled for the safety of U.S. Treasuries and gold, sending the yield on the 30-year Treasury bond to its lowest level since April 2009 and driving gold to a seven-week high in New York.
\New U.S. claims for first-time jobless benefits scaled a nine-month high last week, while the Federal Reserve Bank of Philadelphia reported an unexpected contraction in manufacturing in the Mid-Atlantic region.
At Bursa Malaysia, the FBM KLCI closed higher on Thursday as it hit a new 31-month high, boosted by gains in finance stocks. The 30-stock index closed at 1,392.56.
Stocks to watch on Friday include MPI and Unisem and related semiconductor companies like Eng Teknologi after the positive outlook for the sector.
Other stocks which could be in focus are MALAYAN BANKING BHD [], ahead of oits earnings aftwr market close, HONG LEONG BANK BHD [], PLUS EXPRESSWAYS BHD [], YTL Corporation Bhd, MISC BHD [] and DIALOG GROUP BHD []
Hong Leong Bank’s net profit for the fourth quarter ended June 30,2010 rose 51% to RM301.1 million from RM199.36 million a year ago, due mainly to domestic operations and profit from Chengdu Bank.
Revenue for the quarter rose to RM517.8 million from RM493.61 million last year, while earnings per share were 20.77 sen.
Hong Leong Bank proposed a final gross dividend of 15 sen per share.
PLUS’ net profit for2Q ended June 30, 2010 rose to RM319.56 million from RM281.39 million a year ago, due mainly to higher toll collection.
PLUS declared an interim single tier dividend of 7.5 sen per share for the financial year ending Dec 31, 2010
YTL Corp net profit for 4Q ended June 30, 2010 surged to RM118.25 million from RM47.32 million on the back of a 30.4% jump in revenue to RM4.62 billion.
For the financial year ended June 30, YTL’s net profit rose to RM872.56 million on the back of revenue RM16.41 billion.
The company proposed a first and final gross dividend of ten sen per share.
MISC’s net profit for1Q ended June 30,2010 rose to RM427.98 million from RM233.45 million a year ago, due mainly from improved performance in the restructured liner business and increased profitability in heavy engineering business.
Revenue for the quarter, however, was lower at RM3.27 billion from RM3.89 billion a year ago.
On its prospects for the current year, MISC said it continued to see improvements in freight rates which had translated into higher profitability for its shipping segments.
Dialog’s net profit for the FY ended June 30, 2010 rose more than 20% to RM116.11 million from RM91.94 million a year ago, while its revenue increased to RM1.14 billion from RM`1.1 billion last year.
The company proposed a final gross dividend of 1.8 sen per share.
Weighing on investors’ sentiment would be the weak overnight close on Wall Street, but the bright spot would be the TECHNOLOGY [] sector following positive data from the North America-based manufacturers of semiconductor equipment and also from giants, Dell and HP.
Intel’s US$7.7 billion acquisition for security software maker McAfee Inc would also spur interest in the tech industry.
The acquisition of McAfee is Intel’s largest-ever acquisition to bolster the appeal of its chips as it tries to expand from PCs into the burgeoning market for Web-connected gadgets.
On Wall Street, the Dow Jones industrial average was down 144.33 points, or 1.39 percent, at 10,271.21. The benchmark Standard & Poor's 500 Index was down 18.53 points, or 1.69 percent, at 1,075.63. The Nasdaq Composite Index was down 36.75 points, or 1.66 percent, at 2,178.95.
Reuters reported investors fled for the safety of U.S. Treasuries and gold, sending the yield on the 30-year Treasury bond to its lowest level since April 2009 and driving gold to a seven-week high in New York.
\New U.S. claims for first-time jobless benefits scaled a nine-month high last week, while the Federal Reserve Bank of Philadelphia reported an unexpected contraction in manufacturing in the Mid-Atlantic region.
At Bursa Malaysia, the FBM KLCI closed higher on Thursday as it hit a new 31-month high, boosted by gains in finance stocks. The 30-stock index closed at 1,392.56.
Stocks to watch on Friday include MPI and Unisem and related semiconductor companies like Eng Teknologi after the positive outlook for the sector.
Other stocks which could be in focus are MALAYAN BANKING BHD [], ahead of oits earnings aftwr market close, HONG LEONG BANK BHD [], PLUS EXPRESSWAYS BHD [], YTL Corporation Bhd, MISC BHD [] and DIALOG GROUP BHD []
Hong Leong Bank’s net profit for the fourth quarter ended June 30,2010 rose 51% to RM301.1 million from RM199.36 million a year ago, due mainly to domestic operations and profit from Chengdu Bank.
Revenue for the quarter rose to RM517.8 million from RM493.61 million last year, while earnings per share were 20.77 sen.
Hong Leong Bank proposed a final gross dividend of 15 sen per share.
PLUS’ net profit for2Q ended June 30, 2010 rose to RM319.56 million from RM281.39 million a year ago, due mainly to higher toll collection.
PLUS declared an interim single tier dividend of 7.5 sen per share for the financial year ending Dec 31, 2010
YTL Corp net profit for 4Q ended June 30, 2010 surged to RM118.25 million from RM47.32 million on the back of a 30.4% jump in revenue to RM4.62 billion.
For the financial year ended June 30, YTL’s net profit rose to RM872.56 million on the back of revenue RM16.41 billion.
The company proposed a first and final gross dividend of ten sen per share.
MISC’s net profit for1Q ended June 30,2010 rose to RM427.98 million from RM233.45 million a year ago, due mainly from improved performance in the restructured liner business and increased profitability in heavy engineering business.
Revenue for the quarter, however, was lower at RM3.27 billion from RM3.89 billion a year ago.
On its prospects for the current year, MISC said it continued to see improvements in freight rates which had translated into higher profitability for its shipping segments.
Dialog’s net profit for the FY ended June 30, 2010 rose more than 20% to RM116.11 million from RM91.94 million a year ago, while its revenue increased to RM1.14 billion from RM`1.1 billion last year.
The company proposed a final gross dividend of 1.8 sen per share.
Star RFM to probe why 988 radio host was taken off air
KUALA LUMPUR: Star RFM Sdn Bhd is conducting an investigation into events that led to 988 radio host Jamaluddin Ibrahim being taken off the air.
Why take Jamal off....
Apparently he’s been talking about too many sensitive issues lately in his morning show, hence MCMC has issued a warning letter. “The letter said that my comments have influenced the security of the country. (It also said) my comments on race relations were not acceptable,” DJ Jamal added.
Company chairman Datin Linda Ngiam said the investigations would also cover how the matter was handled by the staff in charge of the station.
"I can confirm the Malaysian Communications and Multimedia Commission (MCMC) had issued a letter dated Aug 18 to 988, regarding certain contents aired over the radio station that it deemed to be offensive.
"We consider this a serious matter and will take the appropriate action," she said Thursday.
The MCMC, in its letter, pointed out that announcers and panellists used "inappropriate language that the listeners found to be offensive."
The commission also claimed that the station also aired issues and comments which may affect race relations.
Wednesday, August 18, 2010
Stocks to watch: AirAsia, Tan Chong, KLK, Jetson, TMC
KUALA LUMPUR: As the flurry of Malaysian corporate earnings pick up pace amid slower economic growth ahead, stocks to watch on Thursday, Aug 19 include AIRASIA BHD [], TAN CHONG MOTOR HOLDINGS BHD [] and KUALA LUMPUR KEPONG BHD [].
Stocks with fresh corporate news include TMC LIFE SCIENCES BHD [], KUMPULAN JETSON BHD [] and ZELAN BHD [].
AirAsia’s net profit for 2Q ended June 30 rose 43% to RM198.93 million from RM139.17 million a year ago. Revenue rose 26% to RM940.65 million from RM748 million a year ago. Passenger growth rose 11% to 3.9 million passengers in 2Q while load factor increased to 77% from 75% a year ago.
Tan Chong’s net profit for 2Q ended June 30, 2010 doubled to RM63.65 million from RM34.59 million a year ago on the back of a 29.3% jump in revenue to RM927.92 million.Tan Chong declared a gross interim dividend of six sen per share.
Kumpulan Jetson's subsidiary Jetson CONSTRUCTION [] Sdn Bhd has terminated its joint venture agreement with China State Construction Engineering (Hong Kong) Ltd to build Platinum Park in Kuala Lumpur.
Kuala Lumpur Kepong posted net profit RM243.54 million in 3Q ended June 30,2010 from RM190.24 million a year earlier on improved commodity prices. Revenue for the quarter rose to RM1.83 billion compared with RM1.54 billion in 2009. Earnings per share were 22.87 sen.
Batu Kawan’s net profit for the third quarter ended June 30 jumped to RM201.12 million from RM101.83 million a year ago, mainly due to a RM84 million surplus on disposal of investment as well as higher contribution from associate company KL Kepong.
On its prospects for the current financial year, Batu Kawan said its profit was expected to be higher than in 2009 in view of the RM84 million surplus from disposal of an unquoted investment and the expected higher profit contribution from KLK.
TMC Life Sciences Bhd saw the emergence of Hong Kong-based Gilberta Investments Limited acquiring a 29.6% stake or 178.10 million shares on Tuesday. The company announced late Wednesday
Gilberta is connected to Peter Lim Eng Hock, long dubbed Singapore's "remisier king" and one of the island-republic's richest men, who acquired the stake following the exit of founder and managing director Datuk Dr Colin Lee Soon Soo.
TMC said Dr Lee’s disposal of 120.35 million shares “will not have any impact on the daily operations of the group, and it is business as usual for the Group’s various business segments”.
“Further, Dr Colin Lee remains on the board of directors of TMC Life Sciences as its managing director, and will continue to practise fertility treatment and obstetrics & gynaecology in Tropicana Medical Centre, the group’s flagship hospital,” it said.
In Zelan Bhd, US-based fund Grantham, Mayo, Van Otterloo & Co. LLC resumed its acquisition of shares in the company. It acquired 48,900 shares on Aug 16, raising its stake to 5.03% or 28.33 million shares.
Meanwhile, KUMPULAN EUROPLUS BHD [] disposed of 52.5 million shares of Talam Corp Bhd on Aug 11, reducing its stake to 20.09% or 569.08 million shares.
Stocks with fresh corporate news include TMC LIFE SCIENCES BHD [], KUMPULAN JETSON BHD [] and ZELAN BHD [].
AirAsia’s net profit for 2Q ended June 30 rose 43% to RM198.93 million from RM139.17 million a year ago. Revenue rose 26% to RM940.65 million from RM748 million a year ago. Passenger growth rose 11% to 3.9 million passengers in 2Q while load factor increased to 77% from 75% a year ago.
Tan Chong’s net profit for 2Q ended June 30, 2010 doubled to RM63.65 million from RM34.59 million a year ago on the back of a 29.3% jump in revenue to RM927.92 million.Tan Chong declared a gross interim dividend of six sen per share.
Kumpulan Jetson's subsidiary Jetson CONSTRUCTION [] Sdn Bhd has terminated its joint venture agreement with China State Construction Engineering (Hong Kong) Ltd to build Platinum Park in Kuala Lumpur.
Kuala Lumpur Kepong posted net profit RM243.54 million in 3Q ended June 30,2010 from RM190.24 million a year earlier on improved commodity prices. Revenue for the quarter rose to RM1.83 billion compared with RM1.54 billion in 2009. Earnings per share were 22.87 sen.
Batu Kawan’s net profit for the third quarter ended June 30 jumped to RM201.12 million from RM101.83 million a year ago, mainly due to a RM84 million surplus on disposal of investment as well as higher contribution from associate company KL Kepong.
On its prospects for the current financial year, Batu Kawan said its profit was expected to be higher than in 2009 in view of the RM84 million surplus from disposal of an unquoted investment and the expected higher profit contribution from KLK.
TMC Life Sciences Bhd saw the emergence of Hong Kong-based Gilberta Investments Limited acquiring a 29.6% stake or 178.10 million shares on Tuesday. The company announced late Wednesday
Gilberta is connected to Peter Lim Eng Hock, long dubbed Singapore's "remisier king" and one of the island-republic's richest men, who acquired the stake following the exit of founder and managing director Datuk Dr Colin Lee Soon Soo.
TMC said Dr Lee’s disposal of 120.35 million shares “will not have any impact on the daily operations of the group, and it is business as usual for the Group’s various business segments”.
“Further, Dr Colin Lee remains on the board of directors of TMC Life Sciences as its managing director, and will continue to practise fertility treatment and obstetrics & gynaecology in Tropicana Medical Centre, the group’s flagship hospital,” it said.
In Zelan Bhd, US-based fund Grantham, Mayo, Van Otterloo & Co. LLC resumed its acquisition of shares in the company. It acquired 48,900 shares on Aug 16, raising its stake to 5.03% or 28.33 million shares.
Meanwhile, KUMPULAN EUROPLUS BHD [] disposed of 52.5 million shares of Talam Corp Bhd on Aug 11, reducing its stake to 20.09% or 569.08 million shares.
China to start yuan-ringgit trading tomorrow
SHANGHAI, Aug 18 — China will begin trading in the yuan against the Malaysian ringgit from tomorrow, marking the latest step by Beijing to internationalise its currency.
The introduction of a sixth currency to trade against the yuan comes after the Chinese central bank said yesterday it would open the yuan bond market to funds accumulated overseas through trade settlement or central bank swaps.
The initiatives are part of a broader effort by Beijing to etch out a greater role for the yuan regionally, including stepping up its use in Hong Kong, leading to controlled, small openings of the capital account.
The step is meant to “promote bilateral trade between China and Malaysia, to facilitate the use of yuan in cross-border trade settlement and to reduce the costs of remittance to the economy,” the China Foreign Exchange Trading System (CFETS) said in a statement on its website.
China was Malaysia’s biggest trading partner in 2009 with total exchanges worth US$36.3 billion (RM116.2 billion). To allow exporters and importers to settle trade deals in ringgit and yuan, the two countries signed a currency swap agreement in February of that year.
CFETS, an interbank funding centre for banks, insurers, securities brokers and fund management firms, is responsible for managing the execution of forex trading. Its announcement today confirms what market sources told Reuters in July.
Yuan-ringgit rates will be set according to dealers’ bids, CFETS said. That stands in contrast to the euro, sterling, Japanese yen and Hong Kong dollar, which are quoted according to their dollar cross-rates.
The yuan will also have more leeway against the ringgit, being allowed to rise or fall by five per cent from a mid-point published each morning by the People’s Bank of China, the central bank.
The yuan may only rise or fall by 0.5 per cent a day against the dollar from the mid-point and three per cent against the other major currencies.
“It is a significant move because it means that the ringgit and yuan will have more convertibility into one another,” said Suresh Kumar Ramanathan, regional rates and FX strategist with CIMB Investment Bank in Kuala Lumpur.
“And since it will be based on dealers’ bids, it is more market driven, because generally Asian currencies have to convert to the dollar and then get converted into whatever currency you need.” — Reuters
AirAsia net profit up 43pc on strong regional business
KUALA LUMPUR, Aug 18 – Leading budget airline AirAsia reported RM199 million in profit for its second quarter today, up from RM139 million during the same period last year thanks to strong performance at its regional subsidiaries.
AirAsia’s 43 per cent rise in net profit contrasted with national carrier Malaysia Airlines which reported a second quarter net loss of RM535 million, partly due to RM217 million in derivative losses from fuel hedging.
AirAsia Thailand reported a net profit of THB49 million (RM4.89 million) as compared with a loss of THB80 million (RM7.97 million) during the same period last year while AirAsia Indonesia reported a net profit of IDR111 billion (RM38.95 million) in the second quarter as compared with a loss of IDR64 billion (RM22.46 million) last year.
AirAsia CEO Datuk Seri Tony Fernandes said that he expects the Thai and Indonesian operations to continue to grow strongly.
“I am confident of a strong second half performance in Thailand,” he told analysts and media in a briefing today. “Indonesia is going to go from strength to strength.”
AirAsia hedges 26 per cent of its fuel as opposed to Malaysia Airlines which hedged 60 per cent of its fuel requirement for 2010 and 40 per cent of its fuel requirement for 2011 at US$100 per barrel.
“We don’t try to bet where the market is going,” said Tony. “We just match forward sales with hedging.”
He added that he does not expect the new low cost carrier terminal (LCCT) to be ready by 2012 as originally projected by Malaysia Airports Holdings Berhad “but more like 2013”.
AirAsia enjoyed an 11 per cent increase in passengers during the quarter under review to 3.9 million while revenue rose 26 per cent from RM748 million last year to RM941 million.
Fernandes said that he expects the airline to perform strongly over the next two quarters due to “very good” forward bookings.
“The fourth quarter is traditionally our strongest quarter,” he said. “To head into our strongest season on the back of soaring first quarter and a record breaking second quarter puts us in a fantastic position.”
AirAsia’s 43 per cent rise in net profit contrasted with national carrier Malaysia Airlines which reported a second quarter net loss of RM535 million, partly due to RM217 million in derivative losses from fuel hedging.
AirAsia Thailand reported a net profit of THB49 million (RM4.89 million) as compared with a loss of THB80 million (RM7.97 million) during the same period last year while AirAsia Indonesia reported a net profit of IDR111 billion (RM38.95 million) in the second quarter as compared with a loss of IDR64 billion (RM22.46 million) last year.
AirAsia CEO Datuk Seri Tony Fernandes said that he expects the Thai and Indonesian operations to continue to grow strongly.
“I am confident of a strong second half performance in Thailand,” he told analysts and media in a briefing today. “Indonesia is going to go from strength to strength.”
AirAsia hedges 26 per cent of its fuel as opposed to Malaysia Airlines which hedged 60 per cent of its fuel requirement for 2010 and 40 per cent of its fuel requirement for 2011 at US$100 per barrel.
“We don’t try to bet where the market is going,” said Tony. “We just match forward sales with hedging.”
He added that he does not expect the new low cost carrier terminal (LCCT) to be ready by 2012 as originally projected by Malaysia Airports Holdings Berhad “but more like 2013”.
AirAsia enjoyed an 11 per cent increase in passengers during the quarter under review to 3.9 million while revenue rose 26 per cent from RM748 million last year to RM941 million.
Fernandes said that he expects the airline to perform strongly over the next two quarters due to “very good” forward bookings.
“The fourth quarter is traditionally our strongest quarter,” he said. “To head into our strongest season on the back of soaring first quarter and a record breaking second quarter puts us in a fantastic position.”
Tuesday, August 17, 2010
AmResearch reaffirms Buy on Tanjung Offshore
I have sold all my TGOFF-WA.. Maybe will by back when it retreat....
I have did't sold and buy back last year....hope..it will come agian
KUALA LUMPUR: AmResearch reaffirmed its BUY rating on Tanjung Offshore (Tanjung) and raised its fair value (FV) from RM1.67/share to RM2.60/share.
It said on Wednesday, Aug 18 the higher FV was based on higher forward fully diluted FY11F PE of 16x to reflect its greater conviction on the company after its visit.
“Our investment thesis centres around three themes: (1) Transformational growth from the entry of a 'well-connected' strategic investor - Ekuinas; (2) Restructuring of a loss making operation; and (3) Strong earnings upgrades from re-acceleration of domestic contracts,” it said.
AmResearch said backed by Ekuinas, Tanjung is set to further capitalise on Petronas' spending shift towards domestic capex and greater equipment localisation.
Thus far this year, Tanjung was awarded the largest offshore support vessel contracts vis-à-vis its peers.
“We are raising our estimates for FY10F-FY12F by 22% to 50% to RM44mil- RM74mil. This is to account for: (a) Expected extension to MOPU contract; (b) Order book replenishment of RM200mil-RM250mill a year for engineering equipment; and (c) Full year contributions from five new vessels delivered this year, bringing total vessels deployed to 16 in FY11F,” it said.
I have did't sold and buy back last year....hope..it will come agian
KUALA LUMPUR: AmResearch reaffirmed its BUY rating on Tanjung Offshore (Tanjung) and raised its fair value (FV) from RM1.67/share to RM2.60/share.
It said on Wednesday, Aug 18 the higher FV was based on higher forward fully diluted FY11F PE of 16x to reflect its greater conviction on the company after its visit.
“Our investment thesis centres around three themes: (1) Transformational growth from the entry of a 'well-connected' strategic investor - Ekuinas; (2) Restructuring of a loss making operation; and (3) Strong earnings upgrades from re-acceleration of domestic contracts,” it said.
AmResearch said backed by Ekuinas, Tanjung is set to further capitalise on Petronas' spending shift towards domestic capex and greater equipment localisation.
Thus far this year, Tanjung was awarded the largest offshore support vessel contracts vis-à-vis its peers.
“We are raising our estimates for FY10F-FY12F by 22% to 50% to RM44mil- RM74mil. This is to account for: (a) Expected extension to MOPU contract; (b) Order book replenishment of RM200mil-RM250mill a year for engineering equipment; and (c) Full year contributions from five new vessels delivered this year, bringing total vessels deployed to 16 in FY11F,” it said.
Maybank (RM7.97; Buy; Price Target: RM9.90; MAY MK) Expect positive surprises
• Malaysian operations may surprise, especially non-interest
income
• BII’s earnings disappointed in 2Q10, but loan growth was
exceptionally strong at 17% q-o-q
• Raised TP to RM9.90 (from RM9.10); Maybank remains
our high conviction stock pick
income
• BII’s earnings disappointed in 2Q10, but loan growth was
exceptionally strong at 17% q-o-q
• Raised TP to RM9.90 (from RM9.10); Maybank remains
our high conviction stock pick
MBM Resources (RM3.16; Buy; Price Target: RM4.80; MBM MK)
Earnings racing ahead
• MBM’s 2Q10 beat our and consensus expectations on
strong auto sales
• Raise FY10F-FY12F net profit by 12%-24%, and upgrade
TP to RM4.60
• Reiterate Buy with 45% upside. Expect market to re-rate
MBM as well.
• MBM’s 2Q10 beat our and consensus expectations on
strong auto sales
• Raise FY10F-FY12F net profit by 12%-24%, and upgrade
TP to RM4.60
• Reiterate Buy with 45% upside. Expect market to re-rate
MBM as well.
Tenaga Nasional (RM8.60; Buy; Price Target: RM10.80; TNB MK)
More than a tariff play
• Potential upside from stronger Ringgit and tariff hike
• Khazanah may unlock value when cost pass through
mechanism is in place
• Stronger GDP proxy with attractive valuation; maintain
Buy
• Potential upside from stronger Ringgit and tariff hike
• Khazanah may unlock value when cost pass through
mechanism is in place
• Stronger GDP proxy with attractive valuation; maintain
Buy
Survey: Genting Bhd directors highest paid
August 17, 2010
KUALA LUMPUR Aug 17 – Genting Bhd topped the list of Malaysian Business “Highest Paid Directors” survey for 2009, with a payout of RM92.11 million.
In a statement here today, Malaysian Business said Genting also had the highest remuneration band of RM87.6 million-RM87.65 million for a single director.
It said the company, however, did not name the director.
The top executive listed is its executive chairman and chief executive officer, Tan Sri Lim Kok Thay, it said.
The magazine said the other company with the highest remuneration band for a single director was Genting’s unit, Genting Malaysia Bhd, which paid out RM37.25 million and above to its top executive.
“These payouts, however, might have been paid to the same person taking into account the possibility of double counting,” it said.
It said in third place was IOI Corp Bhd, which paid out a remuneration band of RM25 million-RM30 million to its highest-ranking director.
“This is less than the RM41.10 million-RM41.150 million it paid out in 2008. We assume the recipient was IOI Corp director/founder, Tan Sri Lee Shin Cheng,” it said.
The survey revealed that the top ten companies in terms of total payouts forked out nearly RM300 million last year.
“Out of the more than 600 companies surveyed, close to 240 directors drew more than RM1 million in remuneration last year despite the cautious economic environment,” it said.
The Malaysian Business survey lists a total of 628 companies with a remuneration band of above RM300,000 as stated in the companys’ annual reports.
Of these, only about seven per cent of the companies were transparent in stating the exact remuneration of their top executive, it said.
“Interestingly, several companies with huge losses still reward their directors with huge payouts,” it said. – Bernama
Monday, August 16, 2010
Evergreen Fibreboard (RM1.55; Buy; Price Target: RM2.10; EVF MK) Another solid quarter
Another solid quarter
• 2Q10 earnings grew 10% q-o-q, in line with our recently
increased net profit forecast but above consensus
• Earnings were mainly driven by higher MDF sales volume
• Maintain Buy with RM2.10 TP based on 1.2x FY11F BV.
• 2Q10 earnings grew 10% q-o-q, in line with our recently
increased net profit forecast but above consensus
• Earnings were mainly driven by higher MDF sales volume
• Maintain Buy with RM2.10 TP based on 1.2x FY11F BV.
Genting shares soar to 34-month high
Genting shares soar to 34-month high
PETALING JAYA: Genting Bhd rose to its highest level in 34 months yesterday after Citigroup Inc raised its rating on the stock to “buy” from “hold”.
Asia’s second-biggest listed casino operator saw its stock close up 6.7% to RM8.72 yesterday, its highest since Oct 29, 2007.
Genting, which holds a 52% stake in Genting Singapore PLC, has been re-rated to a ‘’buy’’ or ‘’outperform’’ call by most analysts based on the latter’s second-quarter profit of S$396.5mil from a loss previously
PETALING JAYA: Genting Bhd rose to its highest level in 34 months yesterday after Citigroup Inc raised its rating on the stock to “buy” from “hold”.
Asia’s second-biggest listed casino operator saw its stock close up 6.7% to RM8.72 yesterday, its highest since Oct 29, 2007.
Genting, which holds a 52% stake in Genting Singapore PLC, has been re-rated to a ‘’buy’’ or ‘’outperform’’ call by most analysts based on the latter’s second-quarter profit of S$396.5mil from a loss previously
Bingo Sell TGOFF-WA today...
HI, today my Tgoff-wa bingo shoot up more then 17%...I have sold all my 65lot in Tgoff-wa.. I have sold at the highest price today 1.30 sen.......I bought it 0.88sen..
Untung around 3k++.. Gain 60% haha....Not bad not bad..I will swap to next potential stock..Stock on my radar....FAVCo....FAJAR....and SP-Setia....Stay tune guys..and Good Luck....
Sunday, August 15, 2010
Real concerns ahead?
I think the story below is true in penang...
Large percentage of property loans may be a problem if recession hits
The surge in property prices has created a fresh avenue for investors wanting to make big bucks, but it is also creating a huge future problem that if left unchecked, can spell trouble for households, banks and the overall economy.
The robust property market has seen the percentage of property loans to total loans in the banking system rising well beyond the levels seen during the 1997/98 Asian financial crisis.
The growth in house purchases is said to be among the largest contributors to the tremendous build-up in household debt over the past 10 years.
Those concerns, for now, are being overlooked as the sector has not yet showed signs of strain.
For those investing in property as a means of investments, it has yielded huge gains.
“I have made more money from property than from stocks,’’ says one retired analyst, who has been investing his nest egg over the past few years.
It’s not hard to see why that has been the case. Stock markets have been volatile over the past few years.
Although a bet on the right stock can lead to generous returns, the effort and thought that goes into picking a winning stock is far more tedious than buying a house.
In property, the general rule is that you cannot go wrong if you buy a house at the right location. And there are always a few hot areas where huge returns can be made.
However, the pressure for overall prices in the country to appreciate is growing beyond those so-called hot locations.
The Real Estate and Housing Developers’ Association Malaysia earlier in the week said prices of residential properties, notwithstanding the earlier big gains, was expected to rise 10% to 20% over the next six months.
Another boost to property investment is that money is plentiful right now.
Look at the banks’ advertisements and you can see how innovative loan schemes have become.
Housing loan repayment periods have gone from 30 years to up to 40 years, and home buyers can now take loans up to the age of 70, way past their retirement age.
This works on the premise that their retirement benefits, prior investments or their children’s incomes should be sufficient to pay the mortgages taken out on their homes.
Also, the innovative loan schemes that require smaller downpayments – 5% or even zero payment – has allowed buyers to make huge returns.
A 20% appreciation in property values between the time the house is bought on, say, a 5% downpayment, to the time the house is completed (which is normally a couple of years or so), would see speculators raking in a four-bagger from their small downpayment, even after paying real property gain tax.
The extension of loan periods, the low interest rate environment and the smaller margins banks are willing to take just to grow their market share of property loans, have also helped fuel demand for properties.
“The fate of the banking sector is tied to the property sector,’’ says ECM Libra head of research Bernard Ching.
With half of the loans growth for the banking sector to June (which is 13.3% on an annualised basis) coming from properties, the portion of residential loans on the banks’ books is estimated to be 27%.
The percentage just prior to the Asian Financial Crisis was said to be around 17%.
The low interest rate environment really began after that crisis and it has been maintained by the subsequent recessions that have hit the country.
This has contributed greatly to a rise in total household debt as a percentage of the economy.
Household debt as a percentage of GDP was 40% in 2000 and today, that figure is around 64%.
“It’s rising and that has been the trend,’’ says Maybank Investment Bank analyst Wong Chew Hann.
Although property loans form a big part of the financial system, analysts say such loans are not in danger of default as the non-performing loan (NPL) ratio is low, particularly for higher-end properties.
But the danger will come should Malaysia suffer a severe recession. Analysts say transport and consumption loans would be the first to signal a default, rather than property loans.
However, with the nature of each new recession different from the ones before, and with recessions becoming more frequent, some analysts point out that if left unchecked, the current situation may become a problem.
To address this, maybe Bank Negara, taking a cue from what China has done, will need to look at instituting more stringent requirements for housing loans.
One suggestion is to impose higher downpayments, based on percentages on a rising scale, for people buying second, third or more houses.
That way, the profit from their initial investments on the homes will shrink after paying off the real property gains tax, thus making it less attractive to punt on house values.
Maybe prudent limits on banks should to be considered, given the banks’ exposure to residential properties.
Whatever the case, its better to err on the side of caution.
A property market collapse always spells trouble for the economy. - By Jagdev Singh Sidhu (The Star)
Large percentage of property loans may be a problem if recession hits
The surge in property prices has created a fresh avenue for investors wanting to make big bucks, but it is also creating a huge future problem that if left unchecked, can spell trouble for households, banks and the overall economy.
The robust property market has seen the percentage of property loans to total loans in the banking system rising well beyond the levels seen during the 1997/98 Asian financial crisis.
The growth in house purchases is said to be among the largest contributors to the tremendous build-up in household debt over the past 10 years.
Those concerns, for now, are being overlooked as the sector has not yet showed signs of strain.
For those investing in property as a means of investments, it has yielded huge gains.
“I have made more money from property than from stocks,’’ says one retired analyst, who has been investing his nest egg over the past few years.
It’s not hard to see why that has been the case. Stock markets have been volatile over the past few years.
Although a bet on the right stock can lead to generous returns, the effort and thought that goes into picking a winning stock is far more tedious than buying a house.
In property, the general rule is that you cannot go wrong if you buy a house at the right location. And there are always a few hot areas where huge returns can be made.
However, the pressure for overall prices in the country to appreciate is growing beyond those so-called hot locations.
The Real Estate and Housing Developers’ Association Malaysia earlier in the week said prices of residential properties, notwithstanding the earlier big gains, was expected to rise 10% to 20% over the next six months.
Another boost to property investment is that money is plentiful right now.
Look at the banks’ advertisements and you can see how innovative loan schemes have become.
Housing loan repayment periods have gone from 30 years to up to 40 years, and home buyers can now take loans up to the age of 70, way past their retirement age.
This works on the premise that their retirement benefits, prior investments or their children’s incomes should be sufficient to pay the mortgages taken out on their homes.
Also, the innovative loan schemes that require smaller downpayments – 5% or even zero payment – has allowed buyers to make huge returns.
A 20% appreciation in property values between the time the house is bought on, say, a 5% downpayment, to the time the house is completed (which is normally a couple of years or so), would see speculators raking in a four-bagger from their small downpayment, even after paying real property gain tax.
The extension of loan periods, the low interest rate environment and the smaller margins banks are willing to take just to grow their market share of property loans, have also helped fuel demand for properties.
“The fate of the banking sector is tied to the property sector,’’ says ECM Libra head of research Bernard Ching.
With half of the loans growth for the banking sector to June (which is 13.3% on an annualised basis) coming from properties, the portion of residential loans on the banks’ books is estimated to be 27%.
The percentage just prior to the Asian Financial Crisis was said to be around 17%.
The low interest rate environment really began after that crisis and it has been maintained by the subsequent recessions that have hit the country.
This has contributed greatly to a rise in total household debt as a percentage of the economy.
Household debt as a percentage of GDP was 40% in 2000 and today, that figure is around 64%.
“It’s rising and that has been the trend,’’ says Maybank Investment Bank analyst Wong Chew Hann.
Although property loans form a big part of the financial system, analysts say such loans are not in danger of default as the non-performing loan (NPL) ratio is low, particularly for higher-end properties.
But the danger will come should Malaysia suffer a severe recession. Analysts say transport and consumption loans would be the first to signal a default, rather than property loans.
However, with the nature of each new recession different from the ones before, and with recessions becoming more frequent, some analysts point out that if left unchecked, the current situation may become a problem.
To address this, maybe Bank Negara, taking a cue from what China has done, will need to look at instituting more stringent requirements for housing loans.
One suggestion is to impose higher downpayments, based on percentages on a rising scale, for people buying second, third or more houses.
That way, the profit from their initial investments on the homes will shrink after paying off the real property gains tax, thus making it less attractive to punt on house values.
Maybe prudent limits on banks should to be considered, given the banks’ exposure to residential properties.
Whatever the case, its better to err on the side of caution.
A property market collapse always spells trouble for the economy. - By Jagdev Singh Sidhu (The Star)
Proton-Perodua merger move a tricky affair
Such a union boils down to the will of two key stakeholders: the Malaysian government and Toyota, the world's number one carmaker from Japan.
Let's just face it: there will be no merger between Proton Holdings Bhd (5304) and Perusahaan Otomobil Kedua Sdn Bhd (Perodua) this year or next. But other forms of alliances are probable.
It is not that such a union is too complex to deal with in terms of business culture or managing people integration. It boils down to the will of two key stakeholders: the Malaysian government and Toyota, the world's number one carmaker from Japan.
Also, Proton needs a global partner more than a local partner at this stage if it does not want to be just a "jaguh kampung" and aims to take itself up another level on the international stage (although a successful merger with Perodua will ultimately mean securing Toyota's help to move towards its international goal).
Proton's management can offer many reasons to support a merger, both for the two national carmakers and the domestic automotive industry. Perodua, on its part, can try to thwart the latest merger attempt by stressing (and it has already stressed) that it is not feasible and compatible.
But the management aren't the owners. Proton managing director Datuk Syed Zainal Abidin Syed Mohamed Tahir and his Perodua counterpart, Aminar Rashid Salleh, do not have the final say on a merger although they do have some powers in forming other kinds of consolidation.
As the parties with majority stakes in Proton and Perodua, the government and Toyota (via Daihatsu owns the controlling stakes in Perodua's two manufacturing arms) hold the push button to reinvent the automotive industry in the country.
Looking at things now, it is very unlikely that they will seriously make the push. For one, Proton and Perodua are government-linked companies, so they carry great political baggage.
Is the government willing to make every effort to ensure a merger will work by exorcising the ghost of the past? We are talking about the politically-linked vendors of Proton and Perodua.
Some quarters said the equity deal with Volkswagen AG talked about not so long ago failed because of, among other reasons, fears that many Proton vendors would go bust if the German carmaker took over. Volkswagen would probably cut down the number of vendors substantially or replace some with more credible ones to streamline and maximise Proton's production.
In the case of Toyota, there are strong push factors why it would want to merge its lucrative and virtually trouble-free Perodua business with Proton's.
Would the government, through Khazanah Nasional Bhd, be willing to offer Toyota a substantial stake in Proton to make the merger work? Would Toyota be happy if the government only gave it control over the manufacturing aspects and not the whole group?
The push from the government and Toyota aside, a Proton-Perodua merger may be good after all. The rhetoric of any merger has largely to do with cost-savings and synergies. This could happen to Proton and Perodua once they merge. But it still may not address Proton's spare capacity problem.
The two companies do not have much to offer each other. Perodua may offer the merged entity its work culture and quality control; and Proton, its more expansive research and development (R&D) and Lotus technical departments for parts and engineering.
The two may be able to save money and time on product R&D and assembly. In the long run, they can complement each other by producing models uniquely theirs. In other words, both can retain their existing identities. They can also keep their production, sales and distribution networks, which will help avert significant job cuts and closing of outlets
Read more: Proton-Perodua merger move a tricky affair http://www.btimes.com.my/Current_News/BTIMES/articles/mond15/Article/index_html#ixzz0wju9DMPy
Let's just face it: there will be no merger between Proton Holdings Bhd (5304) and Perusahaan Otomobil Kedua Sdn Bhd (Perodua) this year or next. But other forms of alliances are probable.
It is not that such a union is too complex to deal with in terms of business culture or managing people integration. It boils down to the will of two key stakeholders: the Malaysian government and Toyota, the world's number one carmaker from Japan.
Also, Proton needs a global partner more than a local partner at this stage if it does not want to be just a "jaguh kampung" and aims to take itself up another level on the international stage (although a successful merger with Perodua will ultimately mean securing Toyota's help to move towards its international goal).
Proton's management can offer many reasons to support a merger, both for the two national carmakers and the domestic automotive industry. Perodua, on its part, can try to thwart the latest merger attempt by stressing (and it has already stressed) that it is not feasible and compatible.
But the management aren't the owners. Proton managing director Datuk Syed Zainal Abidin Syed Mohamed Tahir and his Perodua counterpart, Aminar Rashid Salleh, do not have the final say on a merger although they do have some powers in forming other kinds of consolidation.
As the parties with majority stakes in Proton and Perodua, the government and Toyota (via Daihatsu owns the controlling stakes in Perodua's two manufacturing arms) hold the push button to reinvent the automotive industry in the country.
Looking at things now, it is very unlikely that they will seriously make the push. For one, Proton and Perodua are government-linked companies, so they carry great political baggage.
Is the government willing to make every effort to ensure a merger will work by exorcising the ghost of the past? We are talking about the politically-linked vendors of Proton and Perodua.
Some quarters said the equity deal with Volkswagen AG talked about not so long ago failed because of, among other reasons, fears that many Proton vendors would go bust if the German carmaker took over. Volkswagen would probably cut down the number of vendors substantially or replace some with more credible ones to streamline and maximise Proton's production.
In the case of Toyota, there are strong push factors why it would want to merge its lucrative and virtually trouble-free Perodua business with Proton's.
Would the government, through Khazanah Nasional Bhd, be willing to offer Toyota a substantial stake in Proton to make the merger work? Would Toyota be happy if the government only gave it control over the manufacturing aspects and not the whole group?
The push from the government and Toyota aside, a Proton-Perodua merger may be good after all. The rhetoric of any merger has largely to do with cost-savings and synergies. This could happen to Proton and Perodua once they merge. But it still may not address Proton's spare capacity problem.
The two companies do not have much to offer each other. Perodua may offer the merged entity its work culture and quality control; and Proton, its more expansive research and development (R&D) and Lotus technical departments for parts and engineering.
The two may be able to save money and time on product R&D and assembly. In the long run, they can complement each other by producing models uniquely theirs. In other words, both can retain their existing identities. They can also keep their production, sales and distribution networks, which will help avert significant job cuts and closing of outlets
Read more: Proton-Perodua merger move a tricky affair http://www.btimes.com.my/Current_News/BTIMES/articles/mond15/Article/index_html#ixzz0wju9DMPy
Hovid targets 1st overseas plant by 2013
August 15, 2010
KUALA LUMPUR, Aug 15 — Pharmaceutical company Hovid Bhd expects to build a new plant overseas by 2013 to cope with the strong demand for its products, said managing director David Ho.
Ho said Hovid, which has presence in over 50 countries, will have more options to consider (building a new plant) because the countries wanted the company to invest instead of being an exporter.
“We do see that if we have a plant, we will not just be an exporter but will have a local presence. That will boost our growth in those markets,” Ho told Bernama in an interview recently.
He said the plants were currently running at 100 per cent capacity and Hovid was waiting to see whether demand for its products was sustainable before increasing their capacities.
“If we really cannot ‘squeeze’ more out of the plants, then I think it would be realistic to set up a new plant,” he said.
Hovid, a Perak-based company, started off as the well-known Ho Yan Hor Herbal Tea in 1940s and was transformed into a pharmaceutical company in 1980s.
Hovid, which has two plants each in Ipoh and Chemor, is involved in the development and manufacturing of generic drugs, dietary supplements and consumer products.
Hovid is proud of its patented bio-enhanced delivery system and its continuous research and development to develop the technologies to improve bio-availability.
According to Ho, at a time when many African countries were also asking Hovid to set up a plant it was also considering Asian countries namely, the Philippines and Indonesia, as an option.
Ho said the company was also looking at China to enable it to have an immediate access to the Chinese market and export network to the world.
“The company has yet to have a presence in China because it is complex and importing pharmaceutical products from China is difficult,” he said, adding that the company was looking forward to working with the local partners.
He said Hovid may enter the Chinese market with its herbal tea products first because its brands were well-known in China, especially in the southern parts.
Ho said the company was also looking at Europe and was currently in discussions with a few companies.
“The company may enter the market with a health supplement products,” he said.
He said Hovid has a presence in India after it bought into an Indian-based company.
“The purpose is to use the capacity for export as well as to fill up some of the gaps that are tight in Malaysia. The Indian generic market is competitive.
“We are also looking to work with local partners where they have distribution networks. We will go into India’s over-the-counter healthcare market and so far we had discussions with a few companies,” he said.
On the performance for financial year ending June 30, 2011, Ho said the company has projected between 10 and 20 per cent revenue growth, driven by growing overseas demand.
For the third quarter ended March 31, 2010, Hovid’s pre-tax profit jumped to RM15.29 million from RM1.95 million in the same period last year, while revenue was higher at RM107.1 million from RM80.1 million previously.
The results for the full year ending June 30, 2010 will be released at the end of this month.
Ho said there was a dark cloud hanging over the palm biodiesel industry.
However, he said, subsidiary, Carotech Bhd, was turning around and expected a reasonable profit for this year and positive result for 2011.
“For the first nine months ended March 31, 2010, Carotech’s revenue rose to RM190 million from RM90.2 million in the same period previous year,” he said.
Carotech is the only good manufacturing practice-certified and largest producer of natural tocotrienol (Vitamin E from the palm oil) and mixed palm carotenoids (Pro-Vitamin A from the palm oil) in the world.— Bernama
KUALA LUMPUR, Aug 15 — Pharmaceutical company Hovid Bhd expects to build a new plant overseas by 2013 to cope with the strong demand for its products, said managing director David Ho.
Ho said Hovid, which has presence in over 50 countries, will have more options to consider (building a new plant) because the countries wanted the company to invest instead of being an exporter.
“We do see that if we have a plant, we will not just be an exporter but will have a local presence. That will boost our growth in those markets,” Ho told Bernama in an interview recently.
He said the plants were currently running at 100 per cent capacity and Hovid was waiting to see whether demand for its products was sustainable before increasing their capacities.
“If we really cannot ‘squeeze’ more out of the plants, then I think it would be realistic to set up a new plant,” he said.
Hovid, a Perak-based company, started off as the well-known Ho Yan Hor Herbal Tea in 1940s and was transformed into a pharmaceutical company in 1980s.
Hovid, which has two plants each in Ipoh and Chemor, is involved in the development and manufacturing of generic drugs, dietary supplements and consumer products.
Hovid is proud of its patented bio-enhanced delivery system and its continuous research and development to develop the technologies to improve bio-availability.
According to Ho, at a time when many African countries were also asking Hovid to set up a plant it was also considering Asian countries namely, the Philippines and Indonesia, as an option.
Ho said the company was also looking at China to enable it to have an immediate access to the Chinese market and export network to the world.
“The company has yet to have a presence in China because it is complex and importing pharmaceutical products from China is difficult,” he said, adding that the company was looking forward to working with the local partners.
He said Hovid may enter the Chinese market with its herbal tea products first because its brands were well-known in China, especially in the southern parts.
Ho said the company was also looking at Europe and was currently in discussions with a few companies.
“The company may enter the market with a health supplement products,” he said.
He said Hovid has a presence in India after it bought into an Indian-based company.
“The purpose is to use the capacity for export as well as to fill up some of the gaps that are tight in Malaysia. The Indian generic market is competitive.
“We are also looking to work with local partners where they have distribution networks. We will go into India’s over-the-counter healthcare market and so far we had discussions with a few companies,” he said.
On the performance for financial year ending June 30, 2011, Ho said the company has projected between 10 and 20 per cent revenue growth, driven by growing overseas demand.
For the third quarter ended March 31, 2010, Hovid’s pre-tax profit jumped to RM15.29 million from RM1.95 million in the same period last year, while revenue was higher at RM107.1 million from RM80.1 million previously.
The results for the full year ending June 30, 2010 will be released at the end of this month.
Ho said there was a dark cloud hanging over the palm biodiesel industry.
However, he said, subsidiary, Carotech Bhd, was turning around and expected a reasonable profit for this year and positive result for 2011.
“For the first nine months ended March 31, 2010, Carotech’s revenue rose to RM190 million from RM90.2 million in the same period previous year,” he said.
Carotech is the only good manufacturing practice-certified and largest producer of natural tocotrienol (Vitamin E from the palm oil) and mixed palm carotenoids (Pro-Vitamin A from the palm oil) in the world.— Bernama
icapital.biz to double assets in 5 years
Uncle Tan... one of malaysia share sifu
"If we don't deviate from value investing and invest in attractively priced stocks, the returns in the next four to five years would be pretty attractive," managing director Tan Teng Boo said today at the company's inaugural Investor Day.
"Previously when we first did our Initial Public Offering in 2005, we hoped to double our assets in four to five years, and we have surpassed our target," he said.
He added that the company had achieved a growth of more than 130 per cent since the company was listed.
Speaking about the Investor Day, he said the event was organised to educate individuals on investing.
"For individual investors, it would usually be difficult for them to get the right information.
"Today, we have leaders of companies that we invest in to provide talks to the public, so they can understand about the business and invest properly," he said.
He added that if individuals invest properly, there is no reason why they could not obtain profits.
The event features various exhibition booths, investing talks and investor presentations from the companies that the company has invested in.
icapital.biz is Malaysia's only listed closed-end fund.
For the last financial year ended May 31, the company recorded a pre-tax profit of RM37.644 million, an increase from RM7.489 million in the previous corresponding year while revenue increased to RM42.223 million from RM11.414 million. -- Bernama
Read more: icapital.biz to double assets in 5 years http://www.btimes.com.my/Current_News/BTIMES/articles/20100814222932/Article/index_html#ixzz0wghMwSto
"If we don't deviate from value investing and invest in attractively priced stocks, the returns in the next four to five years would be pretty attractive," managing director Tan Teng Boo said today at the company's inaugural Investor Day.
"Previously when we first did our Initial Public Offering in 2005, we hoped to double our assets in four to five years, and we have surpassed our target," he said.
He added that the company had achieved a growth of more than 130 per cent since the company was listed.
Speaking about the Investor Day, he said the event was organised to educate individuals on investing.
"For individual investors, it would usually be difficult for them to get the right information.
"Today, we have leaders of companies that we invest in to provide talks to the public, so they can understand about the business and invest properly," he said.
He added that if individuals invest properly, there is no reason why they could not obtain profits.
The event features various exhibition booths, investing talks and investor presentations from the companies that the company has invested in.
icapital.biz is Malaysia's only listed closed-end fund.
For the last financial year ended May 31, the company recorded a pre-tax profit of RM37.644 million, an increase from RM7.489 million in the previous corresponding year while revenue increased to RM42.223 million from RM11.414 million. -- Bernama
Read more: icapital.biz to double assets in 5 years http://www.btimes.com.my/Current_News/BTIMES/articles/20100814222932/Article/index_html#ixzz0wghMwSto
Saturday, August 14, 2010
EPF selling off some of the heavy weight
KUALA LUMPUR: The Employees Provident Fund (EPF) has been selling down its stakes in several companies in the first week of the month, with the more notable ones being the disposal of large blocks in IOI Corporation Bhd and Telekom Malaysia Bhd (TM).
It is unclear as to whether the transactions at more than 10 counters resulted in gains or losses, but it certainly was a sensible action by the provident fund to limit losses given the recent slump in equity markets.
“It (sell down) is seen as a prudent move as the provident fund is selling just as the markets start sliding,” said an analyst.
US stocks slumped on Wednesday as negative data from the US and China offered a bleak outlook on the global economic recovery. The Dow Jones Industrial Average dropped 265.42 points or 2.49% to end at 10,378.83, making it the worst drop in nearly a month.
On Wednesday, most Asian markets slumped as data showed Japan’s machinery orders were weaker-than-expected while the growth in Chinese investment slowed down.
The FBM KLCI yesterday lost four more points to settle at 1,349.3. Elsewhere in the region, the Straits Times Index shed 22 points to close at 2,927, The Shanghai SE Composite fell 32 points to settle at 2,575.5, the Hang Seng Index was down 188 points to 21,105.7 and the Nikkei 225 index declined 80 points to 9,212.6.
The EPF’s most notable disposal is the 25.5 million IOI Corp shares it sold between Aug 2 and Aug 5, 2010, bringing its current shareholding in the planter to 12.77%.
In fact, over the past seven trading days, since July 27, 2010, EPF has disposed of a total of 32.72 million shares, or a 0.5% stake, in the plantation heavyweight.
IOI Corp shares were trading between RM5.10 and RM5.13 during the seven-day period.
Yesterday, IOI Corp shares closed three sen lower at RM5.09, ahead of its 4Q FY June 30, 2010 results announcement, which are tentatively due to be released next Tuesday.
The provident fund’s move to shave off its interest in the company is understandable given its high valuations and the challenging outlook for plantation players, although crude palm oil prices have rallied recently on weather concerns.
OSK in a recent note maintained its neutral call on the sector given the crosswinds and threat of overwhelming supply from Indonesia.
It continues to believe the sector will not see a broad-based rally for some time. The house has a neutral call on Kuala Lumpur Kepong Bhd (KLK) and sell recommendations on Sime Darby Bhd and IOI Corp.
Notably also is that on Aug 2 and Aug 3, 2010, EPF had also sold 1.2 million shares of KLK and 5.06 million shares in the country’s largest listed planter Sime Darby Bhd. The provident fund’s current shareholding in KLK stands at 14.9%, and 15.3% at Sime.
The EPF had also disposed of almost 10 million shares or about 0.3% stake in TM between Aug 2 and Aug 6, 2010.
TM shares were trading between RM3.38 and RM3.39 during the five-day period.
Additionally, the provident fund has decreased its shareholding in national utility firm Tenaga Nasional Bhd via the disposal of almost nine million shares on Aug 2 and Aug 3, 2010. Tenaga shares were trading between RM8.59 and RM8.68 during the two-day period.
The EPF had also disposed of some of its interest in the nation’s two largest lenders in terms of asset. Between Aug 2 and Aug 5, 2010, the provident fund sold almost 10 million shares in CIMB Group Holdings Bhd and more than 14 million shares in Malayan Banking Bhd.
But the disposals are negligible given the large base of more than seven billion shares for the two banks respectively. The EPF’s selling spree appears to be across sectors as it had disposed of more than five million shares in builder IJM Corp Bhd and developer UEM Land Holdings Bhd.
Also worth noting is that the EPF had sold less than five million shares each of Gamuda Bhd, MISC Bhd, AMMB Holdings Bhd, Malaysia Airports Holdings Bhd, and DRB-Hicom Bhd between Aug 2 and Aug 5, 2010.
This article appeared in The Edge Financial Daily, August 13, 2010
It is unclear as to whether the transactions at more than 10 counters resulted in gains or losses, but it certainly was a sensible action by the provident fund to limit losses given the recent slump in equity markets.
“It (sell down) is seen as a prudent move as the provident fund is selling just as the markets start sliding,” said an analyst.
US stocks slumped on Wednesday as negative data from the US and China offered a bleak outlook on the global economic recovery. The Dow Jones Industrial Average dropped 265.42 points or 2.49% to end at 10,378.83, making it the worst drop in nearly a month.
On Wednesday, most Asian markets slumped as data showed Japan’s machinery orders were weaker-than-expected while the growth in Chinese investment slowed down.
The FBM KLCI yesterday lost four more points to settle at 1,349.3. Elsewhere in the region, the Straits Times Index shed 22 points to close at 2,927, The Shanghai SE Composite fell 32 points to settle at 2,575.5, the Hang Seng Index was down 188 points to 21,105.7 and the Nikkei 225 index declined 80 points to 9,212.6.
The EPF’s most notable disposal is the 25.5 million IOI Corp shares it sold between Aug 2 and Aug 5, 2010, bringing its current shareholding in the planter to 12.77%.
In fact, over the past seven trading days, since July 27, 2010, EPF has disposed of a total of 32.72 million shares, or a 0.5% stake, in the plantation heavyweight.
IOI Corp shares were trading between RM5.10 and RM5.13 during the seven-day period.
Yesterday, IOI Corp shares closed three sen lower at RM5.09, ahead of its 4Q FY June 30, 2010 results announcement, which are tentatively due to be released next Tuesday.
The provident fund’s move to shave off its interest in the company is understandable given its high valuations and the challenging outlook for plantation players, although crude palm oil prices have rallied recently on weather concerns.
OSK in a recent note maintained its neutral call on the sector given the crosswinds and threat of overwhelming supply from Indonesia.
It continues to believe the sector will not see a broad-based rally for some time. The house has a neutral call on Kuala Lumpur Kepong Bhd (KLK) and sell recommendations on Sime Darby Bhd and IOI Corp.
Notably also is that on Aug 2 and Aug 3, 2010, EPF had also sold 1.2 million shares of KLK and 5.06 million shares in the country’s largest listed planter Sime Darby Bhd. The provident fund’s current shareholding in KLK stands at 14.9%, and 15.3% at Sime.
The EPF had also disposed of almost 10 million shares or about 0.3% stake in TM between Aug 2 and Aug 6, 2010.
TM shares were trading between RM3.38 and RM3.39 during the five-day period.
Additionally, the provident fund has decreased its shareholding in national utility firm Tenaga Nasional Bhd via the disposal of almost nine million shares on Aug 2 and Aug 3, 2010. Tenaga shares were trading between RM8.59 and RM8.68 during the two-day period.
The EPF had also disposed of some of its interest in the nation’s two largest lenders in terms of asset. Between Aug 2 and Aug 5, 2010, the provident fund sold almost 10 million shares in CIMB Group Holdings Bhd and more than 14 million shares in Malayan Banking Bhd.
But the disposals are negligible given the large base of more than seven billion shares for the two banks respectively. The EPF’s selling spree appears to be across sectors as it had disposed of more than five million shares in builder IJM Corp Bhd and developer UEM Land Holdings Bhd.
Also worth noting is that the EPF had sold less than five million shares each of Gamuda Bhd, MISC Bhd, AMMB Holdings Bhd, Malaysia Airports Holdings Bhd, and DRB-Hicom Bhd between Aug 2 and Aug 5, 2010.
This article appeared in The Edge Financial Daily, August 13, 2010
Genting (RM7.70; Buy; Price Target: RM10.80; GENT MK) Genting Singapore’s stellar 2Q10 results
Genting Singapore announced strong 2Q10 net profit of
S$397m (2Q09: S$30m net loss; 1Q10: S$107m net profit,
ex-exceptionals), driven by RWS’ full quarter contribution
(adjusted EBITDA: S$504m vs 1Q10’s S$109m, based on
first 45 days). RWS’ still enjoyed 1 month of “monopoly”
prior to MBS’ opening, along with above average VIP win
percentage. EBITDA margin (on normalized win rate & net
revenue after rebates) is ~52% (1Q10: 48%, ex-preopening
cost), boosted by higher-margin direct VIPs.
RWS has raised table count to 410 currently, and is
targeting 450 tables and 1500-1600 slots (1200 currently)
by end-10. After chalking 3m visitor arrivals in 2Q10 (20-
30k daily to casino), RWS has raised its 2010 target to 15m
from 13m. Seasonally stronger 2H10 should be boosted by
the F-1 race and Youth Olympic Games.
We are raising GENS’ FY10-12F earnings further by 30-
70%, on faster ramp-up, higher VIP daily net win per table,
delay in entry of junket (to 2011), and stronger EBITDA
margins. Our TP is lifted to S$2.00 (from S$1.60), based on
sum-of-parts. Correspondingly, we increase Genting Bhd’s
FY10-12F earnings estimates by 15-21% and TP to
RM10.80 (from RM9.40), based on sum-of-parts. Maintain
BUY on both.
S$397m (2Q09: S$30m net loss; 1Q10: S$107m net profit,
ex-exceptionals), driven by RWS’ full quarter contribution
(adjusted EBITDA: S$504m vs 1Q10’s S$109m, based on
first 45 days). RWS’ still enjoyed 1 month of “monopoly”
prior to MBS’ opening, along with above average VIP win
percentage. EBITDA margin (on normalized win rate & net
revenue after rebates) is ~52% (1Q10: 48%, ex-preopening
cost), boosted by higher-margin direct VIPs.
RWS has raised table count to 410 currently, and is
targeting 450 tables and 1500-1600 slots (1200 currently)
by end-10. After chalking 3m visitor arrivals in 2Q10 (20-
30k daily to casino), RWS has raised its 2010 target to 15m
from 13m. Seasonally stronger 2H10 should be boosted by
the F-1 race and Youth Olympic Games.
We are raising GENS’ FY10-12F earnings further by 30-
70%, on faster ramp-up, higher VIP daily net win per table,
delay in entry of junket (to 2011), and stronger EBITDA
margins. Our TP is lifted to S$2.00 (from S$1.60), based on
sum-of-parts. Correspondingly, we increase Genting Bhd’s
FY10-12F earnings estimates by 15-21% and TP to
RM10.80 (from RM9.40), based on sum-of-parts. Maintain
BUY on both.
Wednesday, August 11, 2010
Top Story: Plantation
Top Story: Plantation
¨ Largely affected by external developments.
¨ Malaysia’s CPO production rose in Jul by 7.0% mom, while exports rose by a smaller 1.8% mom.
¨ No change to our forecasts. We maintain our Neutral stance on the plantation sector.
¨ We continue to have Outperform calls SGX-listed First Resources (FV = S$1.35), KLK (FV = RM20.70), IOIC (FV = RM6.65) and CBIP (FV = RM3.70)
¨ We maintain our Underperform call on Sime Darby (FV = RM8.00), Genting Plantation (FV = RM6.70) and IJMP (FV = RM2.30).
¨ Largely affected by external developments.
¨ Malaysia’s CPO production rose in Jul by 7.0% mom, while exports rose by a smaller 1.8% mom.
¨ No change to our forecasts. We maintain our Neutral stance on the plantation sector.
¨ We continue to have Outperform calls SGX-listed First Resources (FV = S$1.35), KLK (FV = RM20.70), IOIC (FV = RM6.65) and CBIP (FV = RM3.70)
¨ We maintain our Underperform call on Sime Darby (FV = RM8.00), Genting Plantation (FV = RM6.70) and IJMP (FV = RM2.30).
Tuesday, August 10, 2010
We have total of 3.2 million credit card holders nationwide last year. Did you know how many of them were failed to pay credit card debts and caused t
We have total of 3.2 million credit card holders nationwide last year. Did you know how many of them were failed to pay credit card debts and caused them bankrupt in 2009? Make a guess?
On average, the percentage of credit card holders declared bankrupt was only 0.04% out of the total number of principal credit card holders in the last five years, Deputy Finance Minister Datuk Donald Lim said.” Source: theSun
Surprisingly, there were only total of 405 credit card holders. I feel the figure is relatively small compare to my expectation in mind.
So far, the Department of Insolvency Malaysia (MDL) had restructured 80,348 bankruptcy cases from 2005 to May 2010 categorized as following:
* 31,950 cases – Malay
* 26,805 cases – Chinese
* 7,661 cases – Indians
* 13,932 cases – Others
Here are some of the cases involved in different type of loans that caused the bankruptcy:
* 19,380 cases for failing to settle hire purchase loans
* 9,464 cases for failing to settle personal loans
* 8,786 cases for failing to settle business loans
* 6,022 cases for failing to settle housing loans
* 4,417 cases for failing to settle credit card debts
* 4,291 cases for failing to settle corporate loans
* 3,726 stood as guarantors
Bear in mind, the collective number of bankruptcy cases have reached 218,561 nationwide as of June 2010. So, does the bankruptcy statistics help us in analyze property market trend in the country? Well, we will monitor and study about it.
For more information, please visit MDL official website
On average, the percentage of credit card holders declared bankrupt was only 0.04% out of the total number of principal credit card holders in the last five years, Deputy Finance Minister Datuk Donald Lim said.” Source: theSun
Surprisingly, there were only total of 405 credit card holders. I feel the figure is relatively small compare to my expectation in mind.
So far, the Department of Insolvency Malaysia (MDL) had restructured 80,348 bankruptcy cases from 2005 to May 2010 categorized as following:
* 31,950 cases – Malay
* 26,805 cases – Chinese
* 7,661 cases – Indians
* 13,932 cases – Others
Here are some of the cases involved in different type of loans that caused the bankruptcy:
* 19,380 cases for failing to settle hire purchase loans
* 9,464 cases for failing to settle personal loans
* 8,786 cases for failing to settle business loans
* 6,022 cases for failing to settle housing loans
* 4,417 cases for failing to settle credit card debts
* 4,291 cases for failing to settle corporate loans
* 3,726 stood as guarantors
Bear in mind, the collective number of bankruptcy cases have reached 218,561 nationwide as of June 2010. So, does the bankruptcy statistics help us in analyze property market trend in the country? Well, we will monitor and study about it.
For more information, please visit MDL official website
BDRB confirms talks with Chinese party
KUALA LUMPUR: BANDAR RAYA DEVELOPMENTS BHD [] (BDRB) on Tuesday, Aug 10 confirmed it is in talks with a Chinese party for a potential collaboration with its 56.76%-owned subsidiary MIECO CHIPBOARD BHD [].
In an announcement to Bursa Malaysia, BDRB said the collaboration could possibly involve equity participation in Mieco. The property developer said the discussion was preliminary and exploratory in nature at this stage.
The announcement was made in response to an article “Chinese party in talks with BRDB for Mieco” in The Edge weekly, which said BDRB may sell its equity stake in its chipboard-manufacturing unit.
If BDRB were successful in divesting all or part of its stake, the proceeds would enable it to pare down some borrowings or to help fund future projects.
As at March 31, BDRB had a net debt of RM657.58 million. Its cash and cash equivalents stood at RM144.36 million while borrowings amounted to RM801.9 million.
In an announcement to Bursa Malaysia, BDRB said the collaboration could possibly involve equity participation in Mieco. The property developer said the discussion was preliminary and exploratory in nature at this stage.
The announcement was made in response to an article “Chinese party in talks with BRDB for Mieco” in The Edge weekly, which said BDRB may sell its equity stake in its chipboard-manufacturing unit.
If BDRB were successful in divesting all or part of its stake, the proceeds would enable it to pare down some borrowings or to help fund future projects.
As at March 31, BDRB had a net debt of RM657.58 million. Its cash and cash equivalents stood at RM144.36 million while borrowings amounted to RM801.9 million.
Residential property prices on the rise
It is still a good time to buy property as the market is heading upwards, says Real Estate and Housing Developers' Association Malaysia
Prices of residential properties will rise 10-20 per cent over the next six months because of cost and inflationary pressures, says Real Estate and Housing Developers' Association Malaysia (Rehda) president Datuk Michael K.C. Yam.
"The current housing market is simmering. There is no boom or bust, but property prices will rise. The increase will be in high-rise and landed properties in all price categories across Malaysia," Yam said at a half-year property market briefing in Kuala Lumpur yesterday.
He said it was still a good time to buy property as the market was heading upwards, noting also the liquid banking sector and improvement in credit facilities for construction players.
According to Yam, developers are planning more launches in the second half and each project will comprise more than 150 units.
He also said that there was pent-up demand for semi-detached houses, bungalows and terraced houses priced more than RM800,000 each, especially in the Klang Valley and Penang.
"There are a lot of upgraders who want to move from a terraced house to a semi-D or bungalow because of security and to live in a green environment."
Yam said that key challenges for the sector would be higher interest rates, implementation of the Goods and Services Tax and removal of subsidies that would affect the lower-income group.
"We need government support and accommodative policies to ensure the market is simmering. The government should also be more firm in their policies to attract foreigners to buy properties here." - By Sharen Kaur (Business Times)
Prices of residential properties will rise 10-20 per cent over the next six months because of cost and inflationary pressures, says Real Estate and Housing Developers' Association Malaysia (Rehda) president Datuk Michael K.C. Yam.
"The current housing market is simmering. There is no boom or bust, but property prices will rise. The increase will be in high-rise and landed properties in all price categories across Malaysia," Yam said at a half-year property market briefing in Kuala Lumpur yesterday.
He said it was still a good time to buy property as the market was heading upwards, noting also the liquid banking sector and improvement in credit facilities for construction players.
According to Yam, developers are planning more launches in the second half and each project will comprise more than 150 units.
He also said that there was pent-up demand for semi-detached houses, bungalows and terraced houses priced more than RM800,000 each, especially in the Klang Valley and Penang.
"There are a lot of upgraders who want to move from a terraced house to a semi-D or bungalow because of security and to live in a green environment."
Yam said that key challenges for the sector would be higher interest rates, implementation of the Goods and Services Tax and removal of subsidies that would affect the lower-income group.
"We need government support and accommodative policies to ensure the market is simmering. The government should also be more firm in their policies to attract foreigners to buy properties here." - By Sharen Kaur (Business Times)
Monday, August 9, 2010
Stocks to watch: Glove makers, Baswell, MBM Resources, Mudajaya
Written by Joseph Chin
Tuesday, 10 August 2010 08:19
KUALA LUMPUR: Key regional markets are expected to start off on a firmer note on Tuesday, Aug 10 on hopes the U.S. Federal Reserve will signal this week it is ready to renew its stimulus efforts to prop up a weakening U.S. economy.
On Wall Street, the Dow Jones industrial average gained 45.19 points, or 0.42%, to close at 10,698.75. The Standard & Poor's 500 Index advanced 6.15 points, or 0.55%, to finish at 1,127.79. The Nasdaq Composite Index rose 17.22 points, or 0.75%, to close at 2,305.69, according to Reuters.
The Dow was weighed down by Hewlett-Packard Co, whose shares fell 8 percent to $42.60. The company said on Friday its chief executive quit after an investigation found he falsified expense reports to conceal a "close personal relationship" with a female contractor.
On Bursa Malaysia, stocks to watch include glove makers, BASWELL RESOURCES BHD [], MBM RESOURCES BHD [] and Mudajaya Corp Bhd.
Glove makers could see some selling pressure after Hwang DBS Vickers Research said demand could be normalising to lower levels as the flu outbreak is under control and customers are reducing inventory holding periods to one to two months.
The research house said demand could be normalising to lower levels as the flu outbreak is under control and customers are reducing inventory holding periods to 1-2 months (vs 3-4 months during the outbreak).
The research house said the US dollar had weakened against the ringgit by another 2.5% m-o-m in July to RM3.16/US dollar, a two-year low.
Meanwhile RAM Holdings chief economist Dr Yeah Kim Leng expects the ringgit to be trading at RM3 to the US$1 by year-end.
Furniture maker Baswell ceased its operations and has become a Practice Note 17 company. Its MoU with Hong Kong’s Metroplex Resources Ltd in January had also been terminated.
It was last traded at 19 sen on Monday. Its 52-week high was 84 sen and 52-week low was 11 sen.
MBM Resources’ 71%-owned Daihatsu (Malaysia) Sdn Bhd targets over RM1 billion in sales for the current fiscal year ending Dec 31,2010. The RM1 billion sales is RM200million or 25% increase from last year's revenue of about RM800 million.
About 50% of its sales this year will come from its Daihatsu commercial vehicles,40% from Perodua cars and 10% from Hino variants.
Mudajaya rebounded on Monday after CIMB Research said it was maintaining a Buy on Mudajaya Corp Bhd with a Target Price of RM7.94, which is pegged to an unchanged 20% discount to RNAV.
The research house said it views positively the management’s efforts to confront investors concerns last Friday.
Tuesday, 10 August 2010 08:19
KUALA LUMPUR: Key regional markets are expected to start off on a firmer note on Tuesday, Aug 10 on hopes the U.S. Federal Reserve will signal this week it is ready to renew its stimulus efforts to prop up a weakening U.S. economy.
On Wall Street, the Dow Jones industrial average gained 45.19 points, or 0.42%, to close at 10,698.75. The Standard & Poor's 500 Index advanced 6.15 points, or 0.55%, to finish at 1,127.79. The Nasdaq Composite Index rose 17.22 points, or 0.75%, to close at 2,305.69, according to Reuters.
The Dow was weighed down by Hewlett-Packard Co, whose shares fell 8 percent to $42.60. The company said on Friday its chief executive quit after an investigation found he falsified expense reports to conceal a "close personal relationship" with a female contractor.
On Bursa Malaysia, stocks to watch include glove makers, BASWELL RESOURCES BHD [], MBM RESOURCES BHD [] and Mudajaya Corp Bhd.
Glove makers could see some selling pressure after Hwang DBS Vickers Research said demand could be normalising to lower levels as the flu outbreak is under control and customers are reducing inventory holding periods to one to two months.
The research house said demand could be normalising to lower levels as the flu outbreak is under control and customers are reducing inventory holding periods to 1-2 months (vs 3-4 months during the outbreak).
The research house said the US dollar had weakened against the ringgit by another 2.5% m-o-m in July to RM3.16/US dollar, a two-year low.
Meanwhile RAM Holdings chief economist Dr Yeah Kim Leng expects the ringgit to be trading at RM3 to the US$1 by year-end.
Furniture maker Baswell ceased its operations and has become a Practice Note 17 company. Its MoU with Hong Kong’s Metroplex Resources Ltd in January had also been terminated.
It was last traded at 19 sen on Monday. Its 52-week high was 84 sen and 52-week low was 11 sen.
MBM Resources’ 71%-owned Daihatsu (Malaysia) Sdn Bhd targets over RM1 billion in sales for the current fiscal year ending Dec 31,2010. The RM1 billion sales is RM200million or 25% increase from last year's revenue of about RM800 million.
About 50% of its sales this year will come from its Daihatsu commercial vehicles,40% from Perodua cars and 10% from Hino variants.
Mudajaya rebounded on Monday after CIMB Research said it was maintaining a Buy on Mudajaya Corp Bhd with a Target Price of RM7.94, which is pegged to an unchanged 20% discount to RNAV.
The research house said it views positively the management’s efforts to confront investors concerns last Friday.
RHB Reseach:10th August 2010:
Top Story: AEON
¨ Slower-than-expected SSS growth in 1HFY12/10.
¨ Fair value reduces to RM5.28 (from RM6.30). Downgrade to Market Perform
Amway:
¨ 2H FY12/10 growth expected to remain at same level as 1H.
¨ Fair value remains unchanged at RM8.45. Maintain Market Perform.
¨ Slower-than-expected SSS growth in 1HFY12/10.
¨ Fair value reduces to RM5.28 (from RM6.30). Downgrade to Market Perform
Amway:
¨ 2H FY12/10 growth expected to remain at same level as 1H.
¨ Fair value remains unchanged at RM8.45. Maintain Market Perform.
Guinness Anchor (RM8.24; Not Rated; GUIN MK)
4QFY10 results review: 4QFY10 net profit surged 30.2% yo-
y to RM35.7m as revenue rose 11.7% y-o-y to
RM308.7m. This was boosted mainly by higher sales volume
driven by commercial activities in conjunction with the 2010
FIFA World Cup season. Meanwhile, operating margin
added 1.7ppt to 15.5% in 4QFY10 (vs 4QFY09: 13.8%),
attributed to higher on-trade sales – GAB’s on-trade sales
made up c.70% of total sales – which are more profitable,
given improved economies of scale.
For full-year FY10, net profit totalled RM152.7m (+7.5% yo-
y) while revenue increased 5.7% y-o-y to RM1.4b.
Operating margin inched up 0.3ppt to c.15% from 14.7%
in FY09. Guinness Anchor Bhd (GAB) is believed to have
gained more market share from its rivals on the backdrop of
a relatively stable industry volume estimated at c.1.50m HL
(hectolitre) in FY10 vs 1.45m HL in FY09. As of end-Mar10,
GAB had an estimated overall market share of 57.2%
(+0.1ppt from end-Jun09’s 57.1%).
FY11’s outlook: Going into FY11, GAB expects sales volume
to grow moderately and is optimistic that it would continue
to gain market share. It is of the view that the Malaysia
government would maintain excise tax at current levels
given its high excise tax rate compared to other countries
globally. Meanwhile, raw material cost should be relatively
stable compared to 2008-2009 as GAB has hedged raw
material required until Dec 2010 (or 1HFY11). GAB is
looking to increase overhead cost (by double-digit) and A&P
expenses (by single-digit) in FY11 to strengthen its
management and operation teams and continue to build
brand awareness. These are not expected to impact margins
as higher A&P expenses are expected to be compensated by
higher sales. In terms of capex, GAB has budgeted RM50m
in FY11 vs RM40m in FY10m. This would be spent mainly
on annual maintenance and machineries.
GAB declared a final tax exempt DPS of 35 sen, bringing full
year DPS to 45 sen (vs FY09’s 41 sen). This implies a yield of
5.5% for FY10. GAB currently trades at a CY11 PE of 14.9x
(vs Carlsberg’s CY11 PE of 12.2x). Based on consensus
estimates, GAB is expected to pay 47.9 sen DPS in FY11.
This translates into 5.8% yield.
y to RM35.7m as revenue rose 11.7% y-o-y to
RM308.7m. This was boosted mainly by higher sales volume
driven by commercial activities in conjunction with the 2010
FIFA World Cup season. Meanwhile, operating margin
added 1.7ppt to 15.5% in 4QFY10 (vs 4QFY09: 13.8%),
attributed to higher on-trade sales – GAB’s on-trade sales
made up c.70% of total sales – which are more profitable,
given improved economies of scale.
For full-year FY10, net profit totalled RM152.7m (+7.5% yo-
y) while revenue increased 5.7% y-o-y to RM1.4b.
Operating margin inched up 0.3ppt to c.15% from 14.7%
in FY09. Guinness Anchor Bhd (GAB) is believed to have
gained more market share from its rivals on the backdrop of
a relatively stable industry volume estimated at c.1.50m HL
(hectolitre) in FY10 vs 1.45m HL in FY09. As of end-Mar10,
GAB had an estimated overall market share of 57.2%
(+0.1ppt from end-Jun09’s 57.1%).
FY11’s outlook: Going into FY11, GAB expects sales volume
to grow moderately and is optimistic that it would continue
to gain market share. It is of the view that the Malaysia
government would maintain excise tax at current levels
given its high excise tax rate compared to other countries
globally. Meanwhile, raw material cost should be relatively
stable compared to 2008-2009 as GAB has hedged raw
material required until Dec 2010 (or 1HFY11). GAB is
looking to increase overhead cost (by double-digit) and A&P
expenses (by single-digit) in FY11 to strengthen its
management and operation teams and continue to build
brand awareness. These are not expected to impact margins
as higher A&P expenses are expected to be compensated by
higher sales. In terms of capex, GAB has budgeted RM50m
in FY11 vs RM40m in FY10m. This would be spent mainly
on annual maintenance and machineries.
GAB declared a final tax exempt DPS of 35 sen, bringing full
year DPS to 45 sen (vs FY09’s 41 sen). This implies a yield of
5.5% for FY10. GAB currently trades at a CY11 PE of 14.9x
(vs Carlsberg’s CY11 PE of 12.2x). Based on consensus
estimates, GAB is expected to pay 47.9 sen DPS in FY11.
This translates into 5.8% yield.
Sunday, August 8, 2010
Mudajaya in the spotlight, but for all the wrong reasons
PETALING JAYA: In the past week or so, Mudajaya Group Bhd has been in the limelight - but for all the wrong reasons.
The events were triggered by a letter to the Securities Commission (SC) alleging improprieties in relation to Mudajaya’s power plant project in India.
The SC had confirmed that it was looking into the matter.
Meanwhile the stock, which had been under selling pressure for most of the week, gained some ground in Friday’s trade.
Mudajaya started out as a construction company in the 1970s, founded by its current managing director Ng Ying Loong.
In 2004, Mudajaya was listed at an initial public offering price of RM1.28.
Mudajaya’s first foray into India was in early 2000 when it was involved in a road building project in Udaipur-Ratanpur-Gandhinagar in Gujarat, India for RM114mil.
But it was only in 2006, when it started making inroads into India’s power plant sector, that it became more well known.
Although it had its roots in construction, it was soon building its name as a full fledged independent power producer (IPP) in India.
Today, Mudajaya has built more than 10 power plants.
Its construction orderbook presently stands at RM5.6bil, and the company has mentioned that it is looking to add another RM1bil in 2010.
In its financial year ended Dec 31 2009, Mudajaya’s net profit increased 164% to RM119mil from the year before, thanks largely to locked-in contracts from India.
Of its orderbook of RM5.6bil, RM3.4bil worth of jobs come from India.
Mudajaya’s breakthrough in India happened in April 2006, when, together with its partner RKM Powergen Pvt Ltd, they signed an agreement with the authorities of Chhattisgarh, India, to build and operate a 1,200MW coal-fired plant.
The project was carried out by RKM Powergen Pvt Ltd, in which Mudajaya held 26% while RK Powergen held the rest.
The value of the first phase of the power plant was estimated at RM869 mil.
Then in May 2009, RKM Powergen signed a power purchase agreement for Phase 2.
It should be noted that SC’s review of Mudajaya’s Indian project stemmed from a poison pen letter and related to Mudajaya’s cost of investment in RKM Powergen Pvt Ltd and the returns on its engineering and procurement contracts.
Some analysts had also noted that the company enjoyed exceptionally high profit margins compared to its peers.
Mudajaya’s Ng has told the media that the high margins were due to incentives put in place by the government of China, where most of its equipment were procured.
Last Friday, the SC said it was still reviewing the affairs of Mudajaya but added that it aimed to conclude the review as soon as possible.
‘Surveillance’ stage
The SC also said it had engaged all the relevant parties, including the management of Mudajaya.
It is understood that SC’s review of Mudajaya is still at the “surveillance” stage and has not escalated into a full investigation.
Mudajaya has also made known its aspirations to widen its overseas reach.
The company is looking to break into the Indonesia, Indochina and the Middle East markets.
The projects the group is vying for include a RM400mil IPP in Laos and a RM300mil exploration and production concession contract (EPCC) in Indonesia.
On the home front, Mudajaya is one of the contractors shortlisted for the much-anticipated LRT extension project.
Its most recent local contracts involve building a hospital in Penang and a low cost hotel in Johor.
According to OSK Research, Phase 1 of the Indian contract hit 41.9% completion as of June versus 23.2% in January.
“We understand that deliveries for the key plant components are slightly delayed to August from June as scheduled earlier due to minor specification changes.
“Nonetheless, management reaffirms that the entire project is on track for completion by end-2012,” said OSK analyst Jeremy Goh.
Goh expects the bulk of the revenue recognition for Phase 1 to take effect this year.
There are also plans to expand capacity by another 2x360MW when the existing four plants near completion.
Meanwhile, the Indian government intends to set up nine Ultra Mega Power Plants (UMPPs), three of which have been awarded.
The next two up for grabs are located in Chhattisgarh and Orissa, for which the prequalification of tenders will be conducted by end-August.
Evaluation is expected to take two to three months before the final tenders are called, which could then take another six to seven months before the results are known.
Each UMPP will have a capacity of 4,000MW and cost about US$5bil.
Mudajaya plans to bid for both UMPPs via a consortium.
Tanjong Plc has said it intends to bid for the UMPPs together with Mudajaya.
Currently, the biggest shareholder in Mudajaya is Dataran Sentral (M) Sdn Bhd, with a 24.33% stake.
According to Mudajaya’s latest annual report, the Mulpha group holds a substantial stake of 21.37% in the company through Mulpha Infrastructure Holdings Sdn Bhd.
In a filing to Bursa Malaysia on Thursday, the company said it bought back a total of one million of its shares at prices from RM3.80 to RM4.55 worth RM4.29mil. After the purchase, Mudajaya has cumulative net outstanding treasury shares of 2.62 million.
Mudajaya had received the approval of shareholders during its EGM to buy back 10% of its shares for the year. As of March 31, its revenue jumped 90.91% to RM239.35mil while net profit tripled to RM50.6mil from RM14.04mil.
The events were triggered by a letter to the Securities Commission (SC) alleging improprieties in relation to Mudajaya’s power plant project in India.
The SC had confirmed that it was looking into the matter.
Meanwhile the stock, which had been under selling pressure for most of the week, gained some ground in Friday’s trade.
Mudajaya started out as a construction company in the 1970s, founded by its current managing director Ng Ying Loong.
In 2004, Mudajaya was listed at an initial public offering price of RM1.28.
Mudajaya’s first foray into India was in early 2000 when it was involved in a road building project in Udaipur-Ratanpur-Gandhinagar in Gujarat, India for RM114mil.
But it was only in 2006, when it started making inroads into India’s power plant sector, that it became more well known.
Although it had its roots in construction, it was soon building its name as a full fledged independent power producer (IPP) in India.
Today, Mudajaya has built more than 10 power plants.
Its construction orderbook presently stands at RM5.6bil, and the company has mentioned that it is looking to add another RM1bil in 2010.
In its financial year ended Dec 31 2009, Mudajaya’s net profit increased 164% to RM119mil from the year before, thanks largely to locked-in contracts from India.
Of its orderbook of RM5.6bil, RM3.4bil worth of jobs come from India.
Mudajaya’s breakthrough in India happened in April 2006, when, together with its partner RKM Powergen Pvt Ltd, they signed an agreement with the authorities of Chhattisgarh, India, to build and operate a 1,200MW coal-fired plant.
The project was carried out by RKM Powergen Pvt Ltd, in which Mudajaya held 26% while RK Powergen held the rest.
The value of the first phase of the power plant was estimated at RM869 mil.
Then in May 2009, RKM Powergen signed a power purchase agreement for Phase 2.
It should be noted that SC’s review of Mudajaya’s Indian project stemmed from a poison pen letter and related to Mudajaya’s cost of investment in RKM Powergen Pvt Ltd and the returns on its engineering and procurement contracts.
Some analysts had also noted that the company enjoyed exceptionally high profit margins compared to its peers.
Mudajaya’s Ng has told the media that the high margins were due to incentives put in place by the government of China, where most of its equipment were procured.
Last Friday, the SC said it was still reviewing the affairs of Mudajaya but added that it aimed to conclude the review as soon as possible.
‘Surveillance’ stage
The SC also said it had engaged all the relevant parties, including the management of Mudajaya.
It is understood that SC’s review of Mudajaya is still at the “surveillance” stage and has not escalated into a full investigation.
Mudajaya has also made known its aspirations to widen its overseas reach.
The company is looking to break into the Indonesia, Indochina and the Middle East markets.
The projects the group is vying for include a RM400mil IPP in Laos and a RM300mil exploration and production concession contract (EPCC) in Indonesia.
On the home front, Mudajaya is one of the contractors shortlisted for the much-anticipated LRT extension project.
Its most recent local contracts involve building a hospital in Penang and a low cost hotel in Johor.
According to OSK Research, Phase 1 of the Indian contract hit 41.9% completion as of June versus 23.2% in January.
“We understand that deliveries for the key plant components are slightly delayed to August from June as scheduled earlier due to minor specification changes.
“Nonetheless, management reaffirms that the entire project is on track for completion by end-2012,” said OSK analyst Jeremy Goh.
Goh expects the bulk of the revenue recognition for Phase 1 to take effect this year.
There are also plans to expand capacity by another 2x360MW when the existing four plants near completion.
Meanwhile, the Indian government intends to set up nine Ultra Mega Power Plants (UMPPs), three of which have been awarded.
The next two up for grabs are located in Chhattisgarh and Orissa, for which the prequalification of tenders will be conducted by end-August.
Evaluation is expected to take two to three months before the final tenders are called, which could then take another six to seven months before the results are known.
Each UMPP will have a capacity of 4,000MW and cost about US$5bil.
Mudajaya plans to bid for both UMPPs via a consortium.
Tanjong Plc has said it intends to bid for the UMPPs together with Mudajaya.
Currently, the biggest shareholder in Mudajaya is Dataran Sentral (M) Sdn Bhd, with a 24.33% stake.
According to Mudajaya’s latest annual report, the Mulpha group holds a substantial stake of 21.37% in the company through Mulpha Infrastructure Holdings Sdn Bhd.
In a filing to Bursa Malaysia on Thursday, the company said it bought back a total of one million of its shares at prices from RM3.80 to RM4.55 worth RM4.29mil. After the purchase, Mudajaya has cumulative net outstanding treasury shares of 2.62 million.
Mudajaya had received the approval of shareholders during its EGM to buy back 10% of its shares for the year. As of March 31, its revenue jumped 90.91% to RM239.35mil while net profit tripled to RM50.6mil from RM14.04mil.
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