Scomi Marine losses decline to RM116m

KUALA LUMPUR (Feb 29): SCOMI MARINE BHD [] posted a lower pre-tax loss of RM116.47 million for the financial year (FY) ended Dec 31, 2011, from RM206.186 million previously.

Revenue fell to RM390.82 million from RM409.029 million a year ago.

Scomi Marine said it remains cautiously optimistic on the outlook for the oil and gas industry amid challenges in the economic environment globally.

"There are signs of steady improvement from the emerging economies that will provide support for longer term energy demands.

"The group expects the maritime industry to benefit from increasing global demand of offshore activities in the region," the company said in a filing to Bursa Malaysia here.

The fundamentals driving the offshore support activities remain intact with more explorations expected in order to meet the increasing demand for energy.

This will augur well for the demand of offshore supply vessels and seaborne coal logistic solutions, it added.

The company said it is committed to continue to improve the productivity of its Indonesian coal transportation operations to derive better results for the group. - Bernama



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MMC Corp FY11 pre-tax profit jumps to RM1bn

KUALA LUMPUR (Feb 29): MMC Corp Bhd chalked up RM1.002 billion in pre-tax profit for the financial year ended Dec 31, 2011 from RM555.7 million registered in 2010.

Revenue increased to RM9.337 billion compared with RM8.564 billion recorded previously.

For 4Q2011, MMC Corp posted a higher pre-tax profit of RM376.72 million against RM46.86 million a year ago. Revenue increased to RM2.412 billion, from RM2.18 billion.

MMC Corp said the better results were driven by the energy and utilities segment. The group declared a four sen per share dividend for the just-ended financial year. - Bernama



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PPB Group's pre-tax profits dips to RM1bn

KUALA LUMPUR (Feb 29): PPB GROUP BHD []'s pre-tax profit for the financial year ended Dec 31, 2011 fell to RM1.01 billion from RM1.13 billion in 2010.

Its revenue, however, rose to RM2.71 billion from RM2.27 billion previously, it said in a filing to Bursa Malaysia on Wednesday.

For the fourth quarter ended Dec 31, 2011, PPB's pre-tax profit rose to RM226.05 million from RM185.91 million in the corresponding quarter in 2010. Revenue increased to RM744.20 million from RM614.78 million.

PPB said the group's management was actively monitoring the global economic challenges in order to implement appropriate measures to facilitate growth and continuation of the company's businesses.

"The group's operations are mainly located in the Asean countries and in China, and it is anticipated that the domestic consumption in these countries would remain robust in 2012.

"The group is optimistic it would be able to generate a satisfactory set of results in 2012," it said. - Bernama



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Sime Darby mulls listing of some entities

KUALA LUMPUR (Feb 29): Conglomerate SIME DARBY BHD [] is looking at listing some of its entities next year.

Group chief executive officer Datuk Mohd Bakke Salleh said the group is currently working on a few initiatives in sync with its plan for the listing of these entities.

“The game plan is to do it in phases and to look at listable entities in our portfolio. PLANTATION [] or even PROPERTIES [], auto and industrial would be ready for that but it’s a matter of timing,” he said at a media briefing when announcing Sime Darby's financial performance for its second quarter and first half ended Dec 31, 2011.

Mohd Bakke said the listing is also an exercise that has to consider the optimisation of value.

“Next year would be the preferred year for any kind of listing exercise. We have to be very cautious,” he said.

According to Mohd Bakke, the group would consider acquisitions, mergers or any form of corporate exercises within the scope of its existing core activities.

“It could be plantation. We have the opportunity to expand our landbank or even take over any company that is involved in this business. Definitely, we would not announce any new core business at least for the next five or four years,” he said.

On the price of crude palm oil (CPO), Mohd Bakke expects it to be around the current level of RM3,300 per tonne.

“Whenever there is a meeting of the experts on CPO to take place, the price will firm up one or two weeks before the event. We know that there is an event on March 6. My guess is that it will stay at this level. I think that’s more or less expected,” he said.

Mohd Bakke also said that Sime Darby’s plantation business in Liberia is progressing well. The group has planted up to 1,200 ha of the 4,000 ha that it has opened up.

“We hope to touch planted area of around 2,000 to 3,000 ha for this financial year. We will do it slowly taking into consideration all the challenges.

“It’s a new development and we are the only large-scale oil palm developer in Liberia. Non-governmental organisations (NGOs) are looking at our development. So, we need to be mindful of local sensitivity and ensure that our development is in full compliance with RSPO (Roundtable on Sustainable Palm Oil)," he said.

Mohd Bakke said Sime Darby would carry out its plantation development in Liberia in a very systematic but measured manner.

Sime Darby Plantation through its fully-owned subsidiary Sime Darby Plantation (Liberia) Inc has a concession area of 220,000 ha of land, spread across the Grand Capt Mount, Bomi, Bong and Gbarpolu counties in Liberia, to be developed into oil palm and rubber plantations. - Bernama



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Naim Indah posts RM1.1m net profit in 4Q

KUALA LUMPUR (Feb 29): Timber extractor and property developer, Naim Indah Holdings posted RM1.10 million in profit for its fourth quarter ended Dec 31, 2011, compared to a loss of RM14.27 million a year ago, due to improved contributions from its timber logging and property development activities.

It said on Wednesday, revenue was RM5.15 million compared with RM2.92 million. Earnings per share were 0.16 sen compared to -2.03 sen a year ago.

For its financial year ended Dec 31, 2011, revenue was up 18.8% to RM14.88 million from RM12.52 million. However, the group were still in the red, posting losses of RM730,000 compared to a RM18.36 million losses a year ago.

The group attributed its improved performance to increased revenue from its timber and property arms which contributed RM6.36 million and RM3.20 million respectively.

However, its bottom line was mitigated by a fall of RM7.18 million due to a joint venture project held under its investment holding arm.



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BLD Plantations 4Q earnings up 9.6% to RM25.1m

KUALA LUMPUR (Feb 29): PLANTATION [] company, BLD Plantations Bhd recorded an increase of 9.6% to RM25.13 million for its fourth quarter ended Dec 31, 2011, from RM22.93 million a year ago, on the back of increased sales and higher selling prices.

It said on Wednesday, revenue increased by 19.4% to RM489.56 million from RM409.93 million. Earnings per share were 29.57 sen compared to 26.98 sen.

BLD Plantations said the increased sales under its refinery and kernel crushing arm and higher average selling prices of its products help boost revenue.

For its financial year ended Dec 31, 2011, revenue was up 44.26% to RM1.897 billion from RM1.315 billion. Profit jumped 67.2% to RM101.33 million from RM60.61 million.



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Ekovest 2Q earnings surge to RM11.3m

KUALA LUMPUR (Feb 29): EKOVEST BHD []'s earnings soared 615.82% to RM11.31 million for its second quarter ended Dec 31, 2011, from RM1.58 million a year ago, due to increased revenue from its CONSTRUCTION [] arm.

The company, which specialises in civil engineering works and construction, said on Wednesday, that revenue increased 13.8% to RM46.96 million from RM41.26 million. Earnings per share improved to 6.33 sen compared to 0.92 sen a year ago.

The group attributed its improved performance to its construction arm which contributed RM78.69 million to total revenue.

For the six months ended Dec 31, 2011, revenue rose 26% to RM78.82 million from RM62.52 million, while profit jumped 590% to RM17.82 million from RM2.58 million.



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Silver Bird to probe into accounts, MD, 2 key execs suspended

KUALA LUMPUR (Feb 29): SILVER BIRD GROUP BHD [] has suspended its group managing director, Datuk Tan Han Kook and two other key executives effective Feb 24 as it undertakes an internal inquiry into allegations of irregularities in the company’s accounts.

The company said on Wednesday the other two suspended were executive director Ching Siew Cheong and the general manager for accounts and finance Lai Poh Mei. All three were suspended with full pay and benefits.

“Their suspension is to facilitate the conduct of an internal inquiry into allegations of, amongst others, irregularities in the company’s accounts which were recently brought to the attention of the board of directors when the auditors expressed concerns over the validity and recording of certain transactions for which the auditors were not able to obtain the relevant supporting evidence and satisfactory explanations from the management of the company,” Silver Bird Group said in a statement to Bursa Malaysia.

The announcement confirmed The Edge Financial Daily report on Wednesday that three key executives were suspended pending the outcome of an internal investigation into what is alleged to be financial irregularities.

Silver Bird also said the board of directors had resolved to maintain its financial year end at Oct 31, 2011.

"Hence, the company will issue its AAA (audited annual accounts) for the financial year ended Oct 31, 2011 by Feb 29, 2012,” it said.

Silver Bird said among the main concerns expressed by the auditors, were the contract for the design, renovation or refurbishment to an existing warehouse and factory with a contract sum of RM10.6 million.

There were also concerns about payments made to an equipment supplier of RM69.0 million for up to Oct 31, 2011; the sweetened creamers business segment which recorded a revenue of RM31.9 million for the FYE 2011 and audit trail of all sales transactions.

Silver Bird said a special committee comprising of five non-executive directors had been set up to oversee the operations of the group.

“At this stage, the board of directors is not able to ascertain the extent of the financial and operational impact of the alleged irregularities, although, based on the issues highlighted by the auditors, the maximum exposure faced by the group arising from the alleged irregularities may amount to approximately RM111.5 million,” it said.

Silver Bird also said in order to ascertain the financial position of the group, the company had on Feb 26, appointed PKF Advisory Sdn Bhd as the forensic accountants to conduct a forensic review into the affairs of the company.

The board of directors had appointed Messrs Wong Kian Kheong on Feb 25, 2012 as legal advisors for the company and intends to form an inquiry committee to look into the investigation on the group’s accounts.

“The forensic accountants and the inquiry committee shall be required to complete their investigations within three months from the date of this announcement,” it said.

The board has lodged a police report in relation to the alleged financial irregularities on Feb 26 and reported the matter to the Securities Commission, Bursa Malaysia Securities Bhd and the Companies Commission of Malaysia on Feb 27.

“Given that the auditors have expressed a disclaimer opinion on the company’s latest audited accounts for the financial year ended Oct 31, 2011, the shareholders and investors are advised to trade cautiously with regard to the company’s securities,” it said.

Trading resumes on Thursday.



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KLCI closes at highest since July 2011

KUALA LUMPUR: Fund buying of GENTING BHD [] and Sime Darby following their strong earnings and positive developments in the Eurozone pushed the FBM KLCI to its highest level in six months.

At the close, the FBM KLCI was up 12.92 points or 0.83% to close at 1,569.65, its highest since July 2011. Turnover was 1.94 billion shares valued at RM2.694 billion. Gainers beat losers 535 to 297, while 300 counters traded unchanged.

Regionally, markets closed on a positive note except for Shanghai's Composite Index which fell 0.95% to 2,428.49. Japan's Nikkei 225 closed up 0.01% to 9,723.24, South Korea's Kospi 1.33% to 2,030.25, Taiwan's Taiex 2.04% to 8,121.44, Hong Kong's Hang Seng Index 0.52% to 21,680.08 and Singapore's Straits Index 0.57% to 2,986.65.

Genting rose 22 sen to RM10.76, Sime Darby 12 sen to RM9.69 and Tenaga Nasional 13 sen to RM6.33 which helped push the KLCI by 5.28 points.

Sime Darby announced a 42% increase in net profit of RM2.2 billion for the six months ended Dec 31, 2011, on the back of higher crude palm oil (CPO) prices which boosted its PLANTATION [] division's profit. Genting reported its earnings jumped 66% to RM772.9 million in its fourth quarter compared to RM465.4 million a year ago.

While TNB said its second quarter would perform better after it received the RM2 billion compensation from Petroliam Nasional Bhd and the government as part of the the fuel cost sharing mechanism.

However, gains on the KLCI may be short-lived as Reuters reported that the European markets were supported by news of the European Central Bank's latest cheap loan offer on Wednesday, Feb 29.

It said that the markets are expecting a large number of banks to borrow around 500 billion euros ($671 billion) of the three-year money, and that a lot of this liquidity will find its way into riskier assets as well as easing pressure on bank balance sheets.

On Bursa Malaysia, consumer stocks were among top gainers after stocks such as Dutch Lady Industries Bhd rose RM1.00 to RM29.98, Nestle was up 90 sen to RM55.80 and AEON Credit Services was up 63 sen to RM8.82.

YTL Bhd rose 17 sen to RM1.75, with 109.77 million shares traded in, making it the most active stock on the bourse.

Meanwhile, top losers included Tawin down 25 sen to 30 sen, Tradewinds 21 sen to RM9.89 and Shell down 20 sen to RM9.70.



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Proton posts 3Q net loss of RM88.2m

KUALA LUMPUR (Feb 29): PROTON HOLDINGS BHD [] posted heavier net losses of RM88.20 million in the third quarter ended Dec 31, 2011 compared with the net loss of RM60.10 million a year ago due to a decline in year-end sales.

It said on Wednesday that total sales volume was lower when compared to the immediate preceding quarter due to the expected slowdown in buying trend as customers opted to wait until after the new year to purchase a new vehicle in order to capitalise on better future resale value.

“Customer demand over the period also showed an unfavourable volume mix of Proton models, which further affected the profit margin. Consequently, the lower sales volume also resulted in the group having had to adjust production numbers to better manage cost,” it said.

Proton said its 3Q revenue was lower at RM1.432 billion compared with RM1.833 billion a year ago. Loss per share was 16.10 sen compared with loss per share of 10.90 sen a year ago.

For the nine-month period, its registered net loss of RM68.09 million compared with net profit of RM90.50 million a year ago. Its revenue was lower at RM5.928 billion compared with RM6.363 billion a year ago.

Proton group chairman Datuk Seri Mohd Nadzmi Mohd Salleh said the lower profit was largely due to lower revenue from domestic sales.

“However, the unfavourable impact from the lower revenue was cushioned by a decrease in manufacturing overheads and lower administrative expenses incurred in the same financial period. Additionally, the result was also affected by lower volume sale of Lotus cars in Europe in the past quarter,” he said.

Nadzmi said the one-month delay of the launch of Proton’s latest model, the Exora Bold, a turbocharged variant of its popular-selling people carrier had also affected projected sales.

However, he added the delay was necessary to ensure that all issues were addressed and that the customers would get the best from the car.



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MAS posts 4Q net loss RM1.27bn, FY11 net loss RM2.52bn

KUALA LUMPUR (Feb 29): MALAYSIAN AIRLINE SYSTEM BHD [] (MAS) posted net losses totaling RM1.277 billion in the fourth quarter ended Dec 31, 2011 versus net profit of RM225.92 million a year ago as it severly affected by high fuel costs and non-fuel expenses.

It said on Wednesday that its revenue was RM3.678 billion, almost unchanged from the RM3.669 billion a year ago. Loss per share was 38.22 sen compared with earnings per share of 6.76 sen.

For the financial year ended Dec 31, 2011, MAS posted net loss of RM2.524 billion compared with net profit of RM234.47 million a year ago. Its revenue was 2% higher at RM13.901 billion compared with RM13.585 billion a year ago.

“The group’s full year performance was severely impacted by a 21% increase in expenditure over the previous year (2011: RM16.20 billion versus 2010: RM13.41 billion) attributed to a 33% year-on-year increase in fuel cost (2011: RM5.85 billion versus 2010: RM4.38 billion) and a 15% increase in non-fuel expenses (2011: RM10.43 billion versus 2010: RM9.03 billion).

MAS chief executive officer Ahmad Jauhari Yahya said the bottomline group losses for 2011 underscored the imperative need for MAS to immediately adopt strong measures to stop the bleeding.

“These include staff redeployment, increasing productivity and efficiency, relentless cost control and making further route reviews. We are also implementing an aggressive sales and marketing strategy,” he said.



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Market Commentary

The FBM KLCI index gained 12.92 points or 0.83% on Wednesday. The Finance Index increased 0.69% to 14017.35 points, the Properties Index up 1.22% to 1052.71 points and the Plantation Index rose 0.34% to 8651.77 points. The market traded within a range of 16.25 points between an intra-day high of 1573.75 and a low of 1557.50 during the session.

Actively traded stocks include YTL, CSL, IFCAMSC, KEYWEST, ECOFIRS, COMPUGT, MUIPROP, NICORP, DBE and TIGER. Trading volume increased to 1942.34 mil shares worth RM2693.55 mil as compared to Tuesday’s 1727.59 mil shares worth RM1588.57 mil.

Leading Movers were YTL (+17 sen to RM1.75), SIME (+12 sen to RM9.69), AXIATA (+7 sen to RM5.17), TENAGA (+8 sen to RM6.28) and GENM (+11 sen to RM3.91). Lagging Movers were PETCHEM (-10 sen to RM6.70) and BAT (-10 sen to RM52.20). Market breadth was positive with 535 gainers as compared to 297 losers. -- JF Apex Securities Bhd



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Sime Darby advances after strong 2Q net profit

KUALA LUMPUR (Feb 29): SIME DARBY BHD []’s share price rose in afternoon trade on Wednesday after it reported net profit of RM1.10 billion in the second quarter ended Dec 31, 2011.

At 4pm, it was up 12 sen to RM9.69 with 15.88 million shares done.

Sime Darby’s 2Q earnings were 25.5% above the RM877.06 million a year ago. Its revenue increased by 13.9% to RM11.39 billion from RM9.993 billion.

For the first half, it reported a 42% increase in net profit to RM2.175 billion from RM1.531 billion in the previous corresponding period. Its revenue increased 20.2% to RM22.45 billion from RM18.668 billion.



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Teo Seng’s earnings up at RM7m on higher egg prices

KUALA LUMPUR (Feb 29): Poultry-based TEO SENG CAPITAL BHD [] posted a 12.95% increase in its profits to RM7.15 million for the third quarter ended Dec 31, 2011, from RM6.33 million a year ago, underpinned by larger sales of eggs and better prices.

It said on Wednesday, revenue rose 33.11% to RM74.06 million from RM55.64 million. Earnings per share were 3.58 sen as compared to 3.17 sen a year ago.

The group attributed its performance to increased sales of eggs and higher selling prices of eggs.

For the nine months ended Dec 31, 2011, revenue increased 36.1% to RM201.67 million from RM148.19 million a year ago. However, its net profits fell 12.1% to RM15.35 million from RM17.46 million.



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Masteel posts 4Q net loss of RM13.33m

KUALA LUMPUR (Feb 29): Malaysia Steel Works (KL) Bhd posted net losses of RM13.33 million in the fourth quarter ended Dec 31, 2011 compared with net profit of RM8.99 million a year ago.

It said on Wednesday its revenue increased 15.3% to RM336.65 million from RM291.97 million. Loss per share was 6.33 sen compared with earnings per share of 4.35 sen.

For the financial year ended Dec 31, 2011, it was still profitable, with net profit of RM24.53 million, or down 12.6% to RM24.53 million from RM28.09 million in FY10.

Revenue was higher by 24.7% at RM1.253 billion compared with RM1 billion in FY10.



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Mah Sing buys 157 acres of land in Gombak, plans projects with RM650 GDV

KUALA LUMPUR (Feb 29): MAH SING GROUP BHD [] expanded its land bank with the latest acquisition of 157 acres (63.4 ha) in Bandar Kundang, Gombak for RM40.94 million about RM6 per sq ft.

It said on Wednesday the land was one km south of the group’s project, M Residence@Rawang -- a 226 acre township development acquired in October last year.

Mah Sing proposed to build a self-contained, secured lifestyle township named M Residence 2@Rawang with a gross development value of about RM650 million.

“Based on preliminary plans, the township shall comprise mainly linked semi-detached homes to capture the spillover demands for such products from M Residence. The group intends to replicate the success of Aman Perdana township in Meru-Shah Alam by offering semi-detachedhomes at link house pricing,” it said.

Mah Sing said its units Major Land Development Sdn Bhd and Elite Park Development Sdn Bhd had on Wednesday signed separate sale and purchase agreements with Vibrant Domain Sdn Bhd and Topaz Best Sdn Bhd to acquire the adjacent parcels of land.



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KLCI rallies nearly 12pts at midday

KUALA LUMPUR (Feb 29): Share prices on Bursa Malaysia rallied strongly at midday to send the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) surging 11.87 points to 1,568.60, dealers said.

The FBM KLCI's level was also the highest since July 18.

The market was rejuvenated from yesterday's losses as advances in regional bourses and a sharp decline in oil prices bolstered sentiment, the dealers said.

The Finance Index rose 100.36 points to 14,021.33 and the INDUSTRIAL INDEX gained 33.58 points to 2,890.80, while the PLANTATION Index increased 17.061 points to 8,639.66.

The FBM Emas Index gained 70.359 points to 10,852.26 and the FBM 70 Index increased 30.20 points to 12,242.53, with the FBM Ace Index increasing 19.13 points to 4,708.34.

Gainers led losers 432 to 243 while 309 counters were unchanged, 511 untraded and 33 others suspended. Turnover stood at 973.507 million shares worth RM1.012 billion.

For the actives, China Stationery was flat at RM1.39,IFCA MSC decreased half-a-sen to 13 sen, Compugates Holdings rose one sen to 11 sen and YTL Corporation improved five sen to RM1.63.

Among heavyweights, Maybank rose one sen to RM8.75, Sime Darby increased nine sen to RM9.66, and CIMB gained five sen to RM7.18, but Petronas Chemicals slipped 10 sen to RM6.70



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Sime Darby 2Q earnings up 25.5% to RM1.1bn

KUALA LUMPUR (Feb 29): SIME DARBY BHD [] posted net profit of RM1.1 billion in the second quarter ended Dec 31, 2011, which was 25.5% above the RM877.06 million a year ago.

It said on Wednesday its revenue increased by 13.9% to RM11.39 billion from RM9.993 billion while earnings per share were 18.32 sen compared with 14.60 sen.

For the first half, it reported a 42% increase in net profit to RM2.175 billion from RM1.531 billion in the previous corresponding period. Its revenue showed a 20.2% increase to RM22.45 billion from RM18.668 billion.

As for its profit before tax, it recorded a 39.9% increase in profit before tax of RM3.089 billion as compared to the previous year’s profit of RM2.207 billion.

“This was achieved on the back of higher revenue which rose by 20.3% to RM22.5 billion from RM18.7 billion previously. All divisions recorded higher contributions with net earnings registering a 42.0% increase over the previous year,” said Sime Darby.

Commenting on the various segments of its businesses, it said the PLANTATION []s’ operating profit rose 38% to RM1.8 billion due to higher realised crude palm oil (CPO) prices and operational efficiency improvements.

The industrial division benefited from the robust activity in the mining, logging and CONSTRUCTION [] sectors in Australia and Malaysia, which saw its operating profit increase 38% to RM628 million.

As for the motors division, it said the Malaysia and China operations continued to be the main forces behind the unit’s resilient performance which saw its operating profit rising 11% from RM277 million to RM308 million.

The property division showed a significant increase of 46 percent in its operating profit to RM193 million.

The energy & utilities Division’s operating profit grew by 127 percent in the first half of the year due to the recognition of deferred revenue of RM99 million from the Malaysia power plant.

The healthcare division posted a higher operating profit of RM14 million, a 7% increase over the previous corresponding half.



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Kencana secures RM74m fabrication job from ExxonMobil

KUALA LUMPUR (Feb 29): KENCANA PETROLEUM BHD [] has secured a RM74 million contract from ExxonMobil Exploration and Production Malaysia (EMEPMI) to fabricate the substructure for a platform off Terengganu.

The company said on Wednesday its unit Kencana HL Sdn. Bhd was awarded the contract to fabricate the substructures which include jacket, piles and related components which formed part of Tapis R central processing platform for the Tapis re-development project off the coast of Terengganu.

“The total value of the contract is approximately RM74 million. It is a one-off EPC contract and is expected to be delivered to EMEPMI within the second quarter of calendar year 2013,” it said.



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Sozo to invest RM16m to boost halal food processing capacity

KUALA LUMPUR (Feb 28): Ready-to-serve food manufacturer Sozo Global Ltd is looking to invest RM16 million this year to boost its halal food processing capacity, which could see its setting up a plant in Negeri Sembilan.

Its chief executive officer Shen Hengbao said the group was looking to sign a memorandum of understanding with a local company next month.

"We are looking at spending RM8 million with regard to this,” he said on Wednesday.

Sozo Global, he said, was also looking to invest RM8 million to build a factory next to the site of the MoU partner’s factory.

He said the company which it would tie up with, recorded about RM12 million in revenue per year and it specialised in making roti prata and spring rolls.



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KUALA LUMPUR (Feb 29): The FBM KLCI rose more than 10 points in late morning trade on Wednesday, the most in recent weeks, with consumer-related count

KUALA LUMPUR (Feb 29): The FBM KLCI rose more than 10 points in late morning trade on Wednesday, the most in recent weeks, with consumer-related counters among the major gainers as sentiment perked up in line with the regional markets.

At 11.16am, the KLCI was up 10.32 points to 1,567.05. Turnover was 672.86 million shares valued at RM634.94 million. Advancing counters beat decliners 382 to 218 while 268 stocks were unchanged.

BAT rose RM1.14 to RM53.44m Dutch Lady 42 sen to RM29.40 and Carlsberg 16 sen to RM10.06.

HLFG rose 42 sen to RM12.24, Aeon 41 sen to RM8.60 and PetGas 32 sen to RM16.88 while PPB and CCM Dbio rose 30 sen each to RM17.30 and RM2.50.

Cypark again came under the radar screen, rising 13 sen to RM2.04.



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TSM Global shares climb on takeover offer

KUALA LUMPUR (Feb 29): Shares of TSM GLOBAL BHD [] advanced in early trade on Wednesday after the company received a takeover offer at RM1.25 a share.

At 10.02am, it was up eight sen to RM1.20 with 60,100 shares done.

The FBM KLCI rose 6.7 points to 1,563.43. Turnover was 406.92 million shares done valued at RM268.53 million. There were 269 gainers, 171 losers and 252 stocks unchanged.

TSM announced on Tuesday that several parties owning 28.07% of its shares, had offered to acquire all the business, including assets and liabilities, for RM159.24 million or RM1.25 per share

It had received the offer letter from West River Capital Sdn Bhd – a special purpose vehicle in which TSM directors Datuk Lim Kheng Yew and Lim Tze Thean own 60:40 of West River.



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RHB Research maintains Underperform on KNM Group, FV 68 sen

KUALA LUMPUR (Feb 29): RHB Research Institute is maintaining its Underperform on KNM GROUP BHD [] at 94 sen and accorded a fair value of 68 sen.

It said on Wednesday there could be more downside risks for earnings in the near term.

“As such, we continue to be cautious on the stock. Rerating catalysts will be when it starts to show sustainable earnings and operational improvement. We maintain our fair value estimate of 68 sen a share based on unchanged 0.4 times FY12 price-to-book value,” RHB Research said.

The research house said KNM Group’s FY2011’s loss before tax of RM147.5 million was better than its expectations of RM187.7 million, but worse than consensus full-year loss before tax estimate of RM93.6 million.

“The variance to our estimate was largely due to lower-than-expected interest costs. We have opted to look at the profit before tax of the company as it is a better measure of KNM’s operational earnings and excludes the effect of the tax incentive,” RHB Research said.



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Bintulu Port 4Q earnings double to nearly RM60m

KUALA LUMPUR (Feb 29): BINTULU PORT HOLDINGS BHD [] reported a 107% increase in earnings at RM59.94 million for the fourth quarter ended Dec 31, 2011 from RM28.87 million a year ago.

It said on Wednesday its profit before taxation of RM43.76 million was 22.1% higher compared to RM35.84 million a year ago. It proposed a final dividend of 7.50 sen a share.

Bintulu Port’s operating revenue increased by 6.2% to RM125.36 million from RM118.07 million a year ago.

“Revenue generated from port services is RM116.60 million with the revenue from the handling of LNG vessel calls and cargo contributing RM90.47 million (72.17%) towards the total operating revenue. Revenue from bulking services contributed RM8.76 million (6.99%) towards the total operating revenue,” it said.

For FY11, its net profit climbed 22.4% to RM170.77 million from RM139.44 million but its revenue fell 4.8% to RM490.13 million from RM514.83 million.

Trading in the shares was suspended from 9am to 10am.



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CIMB Research has technical buy on WCT at RM2.64

KUALA LUMPUR (Feb 29): CIMB Equities Research has a technical buy on WCT BHD [] at RM2.64 at which it is trading at a FY13 price-to-earnings of 9.8 times and price-to-book value of 1.5 times.

The research house said on Wednesday that WCT, which had broken out from its triangle pattern in February, the share price further pushed above its 200-day SMA before consolidating in a bullish flag pattern.

“Once this consolidation is over, we think the stock is poised for one more leg up,” it said.

CIMB Research said that the MACD signal line is losing pace but remains above the zero line. RSI is also trading above the 50pts mark.

“We see the possible likelihood of a stronger rebound soon. If the candles can hold firm above its 200-day SMA, the next upswing will likely push prices towards RM2.78 and RM2.92 next. Be quick to cut loss if the RM2.58 level is violated,” it said.



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CIMB Research has technical sell on China Ouhua Winery at 22 sen

KUALA LUMPUR (Feb 29): CIMB Equities Research has a technical sell on China Ouhua Winery Holdings at 22 sen at which it is trading at a price-to-book value of 0.6 times.

It said on Wednesday that China Ouhua violated its triangle support on Tuesday.

“We view this as a prelude to more downside ahead. If we are right, the next downleg is likely to drag prices back to its previous low of 19.5 sen again, before heading towards 16 sen next. There is a minor support at 20.5 sen,” it said.

CIMB Research said the technical indicators were showing signs of exhaustion. MACD signal line had staged a dead cross while RSI is below the 50 pts mark.

“Unless prices bounce back above its 30-day and 50-day SMAs soon (at 26 sen and 25.5 sen respectively), unload on strength looks like a good option here,” said the research house.



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CIMB Research has technical buy on Zelan at 50.5 sen

KUALA LUMPUR (Feb 29): CIMB Equities Research has a technical buy on Zelan at 50.5 sen at which it is trading at a price-to-book value of 1.9 times.

It said on Wednesday that Zelan broke out of its bullish flag pattern on Tuesday on high volume.

“We think it is due for another rebound. However, our strategy here would be to buy on weakness due to yesterday’s strong run-up,” it said.

CIMB Research said the technical reading was improving. MACD histogram bars were falling at a slower pace, suggesting that selling pressure was tapering off. RSI indicator had also hooked upward.

“The 30-day SMA looks like a good support here. We will only review our call if prices broke below this moving average, now at 45 sen. Resistance is seen at the 53 sen and 55 sen levels,” it said.



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HDBSVR sees chance for Malaysian equities to rally

KUALA LUMPUR (Feb 29): HwangDBS Vickers Research said there is a chance for the Malaysian bourse to leap forward on Wednesday.

HDBSVR said that in playing catch-up with its regional peers – which mostly ended higher on Tuesday – the benchmark index could pull away from the first support line of 1,555 ahead.

It said that overnight on Wall Street, main equity bellwethers rose between 0.2% and 0.7% amid hopes that the European Central Bank (ECB)’s long-term refinancing operation scheduled this afternoon would inject more liquidity into the monetary system, thus easing the banks’ funding strains.

At Bursa Malaysia, among the slew of financial result announcements that were releasedon Tuesday, UEM Land and Padini surprised on the upside but Masterskill came in below par.

Other corporate developments that may be of interest include: (a) TSM Global, after receiving a proposal to take over its businesses for RM1.25 per share (versus its last done price of RM1.12); and (b) CWorks, which is in advanced talks to take over a profitable IT company according to one media report.



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CIMB Research maintains Neutral on RHB Capital, TP RM7.50

KUALA LUMPUR (Feb 29): CIMB Equities Research said RHB CAPITAL BHD []’s FY11 net profit met its expectations as it accounted for 97% of its forecast and consensus.

It said on Wednesday that however, net profit growth at only 5.7% was slow, impacted by a margin squeeze that offset the positive effects of swift loan growth.

“We continue to peg the stock to our DDM value. Despite the undemanding valuation, we continue to rate RHB Capital a Neutral on concerns over slowing loan growth and suppressed net interest margins,” it said.

CIMB Research had a target price of RM7.50 for the stock.



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CIMB Research: UEM Land final results way ahead of expectations

KUALA LUMPUR (Feb 29): CIMB Equities Research said UEM Land’s final results were way ahead of expectations and its share price target was RM2.56.

It said on Wednesday the RM2.2 billion new sales notched up in FY11 were also impressive.

“The group has set the bar high for 2012 with headline KPIs of 50% revenue growth, 40% profit growth and 10% ROE. In view of the strong finals and high KPIs, we upgrade UEM Land from neutral to Trading Buy,” it said.

CIMB Research, which has a trading buy, also raised RNAV and EPS for the more ambitious KPIs and balance sheet adjustments.

“Our target price rises because of the higher RNAV and a halving of our RNAV discount to 5%,” it said.



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Stocks to watch: IPPs, Mah Sing, Genting, UEM Land

KUALA LUMPUR (Feb 29): With the current corporate results drawing to an end on Wednesday, investors’ focus would be on the companies with the stronger set of financial results and their prospects for the year ahead as the external and domestic economies slow down.

The important decision would be to pick companies which would be able to ride through slower growth, especially PLANTATION []s and banks with overseas operations.

Among the stocks to watch on Wednesday after independent power producers (IPPs), MAH SING GROUP BHD [], GENTING BHD [] and UEM Land Bhd.

The Energy Commission has invited the first generation of independent power producers to submit their plans to extend the power purchase agreements (PPAs).

These IPPs, whose PPAs were scheduled to end in three to four years, were invited to extend the agreements on condition they would reduce the capacity payments.

Mah Sing Group Bhd posted net profit of RM41.03 million in the fourth quarter ended Dec 31, 2011, up 30.8% from RM31.35 million a year ago, boosted by the property segment.

Its revenue increased by 41% to RM422.12 million from RM299.28 million. Earnings per share were 4.93 sen compared with 3.77 sen. It announced dividend of 11 sen a share.

For FY11, its earnings rose 42.7% to RM168.55 million from RM118.07 million in FY10.

Genting Bhd reported net profit of RM772.91 million in the fourth quarter ended Dec 31, 2011, up 66% from RM465.43 million a year ago.

Its revenue increased by 23.9% to RM5.06 billion from RM4.08 billion. Its earnings per share were 20.94 sen compared with 12.57 sen while it proposed a dividend of 4.5 sen a share.

Group profit before tax was RM1.802 billion, compared with RM1.182 billion a year ago as it included a reversal of RM308.6 million in respect of previously recognised impairment loss relating to the UK casino licenses and a net fair value gain of RM64.4 million on derivative financial instruments.

UEM LAND HOLDINGS BHD [] posted a 3.84% increase in earnings to RM140.56 million for the fourth quarter ended Dec 31, 2011, from RM135.36 million, due to improved performance from the group's various development activities.

It said the board was confident of the group’s prospects in the coming financial year as the on-going projects had unbilled sales of RM1.85 billion as at Dec 31, 2011.

Shareholders of TSM GLOBAL BHD [], who own 28.07% of the paid-up share shares, have offered to acquire all the business, including assets and liabilities, for RM159.24 million or RM1.25 per share.

Property developer, Dijaya Corp Bhd's earnings rose 12.8% to RM39.02 million for the fourth quarter ended Dec 31, 2011, from RM34.59 million a year ago, due to better sales performance and recognition of progress billings from its project launches in 2011.

Revenue was up 53.2% to RM156.19 million from RM101.91 million. Earnings per share were 8.53 sen compared to 7.60 sen a year ago.

KFC Holdings Bhd (KFCH) saw its fourth quarter earnings decline 21.9% to RM38 million from RM48.67 million a year ago.

It said KFC India and KFCH International College continued to incur high initial start-up costs in the current quarter during the gestation period.

QSR BRANDS BHD [] reported net profit of RM38.69 million in the fourth quarter ended Dec 31, 2011, up 9.7% from the RM35.25 million a year ago due to better profits from Pizza Hut Malaysia.

Cafe chain operator Oldtown Bhd recorded RM11.66 million in profits for the fourth quarter ended Dec 31, 2011 as it benefited from an increase in exports of its beverage products and higher selling prices.

Steel contractor Eversendai Corporation Bhd recorded profits of RM36.42 million for the fourth quarter ended Dec 31, 2011, due to higher revenue from current on-going projects. Its revenue was RM313.29 million while earnings per share were 5.41 sen.

For the financial year ended Dec 31, 2011, revenue was RM1.03 billion, while profits were RM119.45 million.

Benalec Holdings Bhd, posted a 52.51% increase in earnings to RM28.84 million for the second quarter ended Dec 31, 2011, from RM18.91 million due to net gain on sale of land in the current quarter.

Its revenue was 40.54% lower to RM26.89 million from RM45.22 million mainly due to certain projects located in Melaka had already reached the completion stage.

RHB CAPITAL BHD [] posted an 8.09% fall in profits to RM348.39 million for the fourth quarter ended Dec 31, 2011, from RM380.15 million due to increased competition among banks.



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UEM Land records RM140.5m in 4Q earnings, unbilled sales of RM1.85b

KUALA LUMPUR (Feb 28): UEM LAND HOLDINGS BHD [] posted a 3.84% increase in earnings to RM140.56 million for the fourth quarter ended Dec 31, 2011, from RM135.36 million, due to improved performance from the group's various development activities.

It said on Tuesday, that the board was confident of the group’s prospects in the coming financial year as the on-going projects had unbilled sales of RM1.85 billion as at Dec 31, 2011.

“The profits from these future billings will be recognised substantially over the next two financial years. The group will also be launching several residential and commercial projects in the Klang Valley, Cyberjaya and Nusajaya in 2012. These projects will ensure the groups’ profitability is sustainable in the near future,” it said.

UEM Land’s 4Q11 revenue soared 115.22% to RM597.80 million from RM277.76 million. Earnings per share were 3.25 sen compared to 3.72 sen a year ago.

The higher contributions were attributed to improved performance to the group's activities in SiLC, East Ledang, Nusa Idaman, Nusa Bayu and Symphony Hills. The quarter also saw the consolidation of results from SUNRISE BHD [], as a factor to its increased earnings.

For the financial year ended Dec 31, 2011, revenue rose 261.7% to RM1.70 billion compared to RM471.14 million the previous year, while profits were up 55.1% to RM301.71 million from RM194.54 million.



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RHB Cap 4Q earnings dip to RM348m on stiffer competition

KUALA LUMPUR (Feb 28): RHB CAPITAL BHD [] posted an 8.09% fall in profits to RM348.39 million for the fourth quarter ended Dec 31, 2011, from RM380.15 million due to increased competition among banks.

It said on Tuesday its revenue increased 10.5% to RM1.89 billion to RM1.71 billion. Earnings per share were 15.80 sen compared with 17.70 sen a year ago.

The lower margins were attributed to stiffer competition in both loans and deposits, as well as a relatively lower yielding credit risk-free public sector loans and financing on book.

RHB Cap said the increase in the overnight policy rate (OPR) in May 2011, coupled with several increases in the statutory reserve requirement (SRR) contributed to the lower net interest income.

For the financial year ended Dec 31, 2011, revenue was up 15.12% to RM7.08 billion from RM6.15 billion. Meanwhile, profit rose 5.63% to RM1.50 billion from RM1.42 billion.

“In line with our commitment to consistently provide value to our shareholders, a final dividend of 11.82% less 25% tax and single tier dividend of 5.59% totaling RM318.7 million has been proposed.

"Together with the interim dividend of 8.00% less tax, the total gross dividend for 2011 would amount to 25.41% per share. This is in line with the group’s stated dividend policy of 30% payout ratio”, said RHB Capital chairman Datuk Mohamed Khadar Merican.

The improvement in performance was attributable to higher net interest income, other operating income, income from its Islamic banking arm as well as lower loan loss provisions and impairment losses on other assets. However, this was partly offset by other operating expenses.



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Dijaya records 12.8% rise in 4Q earnings to RM39m

KUALA LUMPUR: Property developer, Dijaya Corp Bhd's earnings rose 12.8% to RM39.02 million for the fourth quarter ended Dec 31, 2011, from RM34.59 million a year ago, due to better sales performance and recognition of progress billings from its project launches in 2011.

It said on Tuesday, Feb 28, that revenue was up 53.2% to RM156.19 million from RM101.91 million. Earnings per share were 8.53 sen compared to 7.60 sen a year ago.

Both revenue and profits were boosted by contributions from the Tropicana Grande and Casa Tropicana developments at Tropicana Golf & Country Resort, as well as the Grand Villa, Pool Villas and Link Villas at Tropicana Indah Resort Homes.

"The group now has its footprints in Klang Valley, Penang and Johor, which are the major property development areas. With all these projects in the pipeline, the group is poised for growth and expansion in the market share to achieve market capitalisation of above RM1 billion," said Dijaya chief executive officer Tan Sri Danny Tan.

For the financial year ended Dec 31, 2011, revenue increased by 27.8% to RM373.72 million from RM292.26 million in FY10. Net profits rose 50.4% to RM65.07 million from RM43.25 million.



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Benalec 2Q earnings up 52% to RM28.8m, boost from land sale

KUALA LUMPUR (Feb 28): Benalec Holdings Bhd, posted a 52.51% increase in earnings to RM28.84 million for the second quarter ended Dec 31, 2011, from RM18.91 million due to net gain on sale of land in the current quarter.

It said on Tuesday, revenue was 40.54% lower to RM26.89 million from RM45.22 million mainly due to certain projects located in Melaka had already reached the completion stage. Earnings per share were 3.90 sen compared to 3.00 a year ago.

For the first six months ended Dec 31, 2011, revenue was up 4.15% to RM101.47 million from RM97.43 million. Net profits were also up 18.2% to RM57.77 million from RM48.87 million.

"The increase in the revenue was mainly due to the increased activities in reclamation works being undertaken in Melaka and Port Klang," it said, adding the small increase in profit was due to the sale of land valued at RM15.5 million.

However, higher operating expenses, increased finance costs and a lower contribution from its marine CONSTRUCTION [] arm mitigated the gains.



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TSM shareholders in RM159m takeover deal

KUALA LUMPUR (Feb 28): Shareholders of TSM GLOBAL BHD [], who own 28.07% of the paid-up share shares, have offered to acquire all the business, including assets and liabilities, for RM159.24 million or RM1.25 per share.

TSM said it had received the offer letter from West River Capital Sdn Bhd – a special purpose vehicle in which TSM directors Datuk Lim Kheng Yew and Lim Tze Thean own 60:40 of West River.

The RM159.24 million would be RM1.25 cash per TSM share held by the remaining entitled shareholders and a deferred amount of RM1.25 per TSM share for all the shares held by identified parties as an amount remaining due and owing by the offeror.

TSM said the cash portion would amount to RM114.54 million and the deferred amount was RM44.70 million.

The parties involved would not reduce their stake to below the current 28.07% throughout the offer period and might raise their shareholdings.



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Genting 4Q earnings up 66% to RM772.9m, FY11 RM2.86b

KUALA LUMPUR (Feb 28): GENTING BHD []’s reported net profit of RM772.91 million in the fourth quarter ended Dec 31, 2011 was 66% higher compared with RM465.43 million a year ago.

It said on Tuesday its revenue increased by 23.9% to RM5.06 billion from RM4.08 billion. Its earnings per share were 20.94 sen compared with 12.57 sen while it proposed a dividend of 4.5 sen a share.

Group profit before tax was RM1.802 billion, compared with RM1.182 billion a year ago.

“The group’s profit before tax for 4Q11 included a reversal of RM308.6 million in respect of previously recognised impairment loss which relates to the UK casino licenses and a net fair value gain of RM64.4 million on derivative financial instruments,” it said.

Genting Bhd added that the profit before tax in 4Q10 had included a loss on discontinuance of cash flow hedge accounting using interest rate swaps of RM145.4 million arising from settlement of interest rate swaps.

“The increase in the revenue of the leisure & hospitality division was contributed by the leisure and hospitality businesses in Singapore, Malaysia, the UK and the US,” it said.

Genting said revenue and earnings before interest, tax, depreciation and amortisation (EBITDA) improved from that of 4Q10 as the just ended quarter benefited mainly due to overall higher volume of business despite a lower hold percentage in the premium players business.

The higher revenue and EBITDA from the UK operations were due mainly by its London casino operations.

For FY11, its earnings increased by 30.1% to RM2.867 billion from RM2.202 billion while revenue increased by 28.7% to RM19.56 billion from RM15.19 billion.



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Eversendai records net profit of RM36m in 4Q

KUALA LUMPUR (Feb 28): Steel contractor Eversendai Corporation Bhd recorded profits of RM36.42 million for the fourth quarter ended Dec 31, 2011, due to higher revenue from current on-going projects.

It said on Tuesday its revenue was RM313.29 million while earnings per share were 5.41 sen.

Eversendai attributed higher project revenue recognition in the quarter from current on-going projects as the reason for its performance.

Current projects include the New Doha International Airport and Doha Convention Center and Tower in Qatar, as well as, the King Abdullah Petroleum Studies & Research Center and CMA TOwer in Saudi Arabia.

Eversendai group MD and executive chairman Datuk AK Nathan said the company was optimistic about its prospects based on the order book in excess of RM1 billion in hand.

“It is evident that with the diverse and strong order book, the Group is looking towards performing well in FY 2012 and going forward. The group is also not solely dependent on any specific sector and or client with its wide geographical spread, number of projects, repeat clients and large client base of the current order book," he said.

The group derives 86.3% of its revenue from its Middle East operations in the United Arab Emirates, Saudi Arabia and Qatar, while its India and Malaysia operations contributed 6.3% and 7.4% respectively.

“With a solid performance for FY2011 under our belt, we are optimistic the group is on target for another strong financial year in FY2012. Riding on our strong track record and proven execution capabilities, we are well positioned to capitalise on the increased business opportunities," Nathan added.

For the financial year ended Dec 31, 2011, revenue was RM1.03 billion, while profits were RM119.45 million.



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Higher exports, prices see Oldtown 4Q net profit at RM11.6m

KUALA LUMPUR (Feb 28): Cafe chain operator Oldtown Bhd recorded RM11.66 million in profits for the fourth quarter ended Dec 31, 2011 as it benefited from an increase in exports of its beverage products and higher selling prices.

It said on Tuesday its revenue was RM80.40 million while earnings per share were 5.85 sen. Oldtown proposed an interim single tier dividend of 2.5 sen per share, with a proposed final dividend of 4.0 sen per share.

The group attributed higher exports and selling prices of its beverages and cafe chain operation to its financial performance.

It also cited a gain on disposal of investment in associated companies and of property, plant and equipment amounting RM8.4 million as other reasons for its performance.

For the financial year ended Dec 31, 2011, its revenue was RM285.49 million and profit was RM40.17 million.



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KLCI struggles, key regional markets advance

KUALA LUMPUR (Feb 28): Blue chips closed lower on Tuesday, weighed down by losses in Petronas Chemicals, Axiata and Tenaga, as the FBM KLCI struggled to breach the 1,560 level, in contrast with the firmer key regional markets.

The 30-stock KLCI closed down 2.31 points or 0.15% lower at 1,556.73 from a high of 1,562.42. Turnover was 1.73 billion shares valued at RM1.589 billion. Losers beat gainers 511 to 309, while 309 counters were traded unchanged.

The performance of the local stock market was a contrast to the positive sentiment at the key regional markets.

Shanghai's Composite Index rose 0.20% to 2,451.86, Hong Kong's Hang Seng 1.65% to 21,568.73, Japan's Nikkei 225 up 0.92% to 9,722.52, Singapore's Straits Index 0.73% to 2,968.27, South Korea's Kospi 0.63% to 2,003.69 and Taiwan’s Taiex 0.28% to 7,959.34.

Reuters reported that the European Central Bank's upcoming cash boost for banks supported the euro and shares but some investors are worried the benefits of the cheap money will be short lived.

At Bursa Malaysia, Petronas Chemicals fell 10 sen to RM6.80, dragging the KLCI down 1.01 points and Axiata shed five sen to RM5.10, pushing the KLCI down by one point. Losses in TNB, where the power giant’s share price fell five sen to RM6.30, shaved 0.64 of a point of the index.

Tenaga president and CEO Datuk Seri Che Khalib Mohamad Noh said he expected the power giant to perform better in the second quarter ended Feb 29, 2012 as it would receive RM2 billion in compensation from Petroliam Nasional Bhd and the government under a fuel cost-sharing mechanism.

Losers included JTI, down 25 sen to RM6.91 as investors were disappointed over the absence of a dividend payout. Sarawak Oil Palm fell 17 sen to RM6.

China Stationery Limited continued its strong performance post-IPO to be one of the most active and among top gainers after closing up 16 sen to RM1.39, with 84.98 million shares traded in.

Dutch Lady rose RM1.48 to RM28.98, Atlan 32 sen to RM3.47, Hong Leong Industries up 21 sen to RM4.20 while Hong Leong Bank and Carlsberg added 20 sen to RM11.90 and RM9.90 respectively.



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Market Commentary

The FBM KLCI index lost 2.31 points or 0.15% on Tuesday. The Finance Index increased 0.06% to 13920.97 points, the Properties Index up 0.15% to 1040.06 points and the Plantation Index rose 0.12% to 8622.6 points. The market traded within a range of 9.80 points between an intra-day high of 1562.42 and a low of 1552.62 during the session.

Actively traded stocks include IFCAMSC, CSL, IFCAMSC-WA, NICORP, TMS, SNTORIA, COMPUGT, WINSUN, GOCEAN and ZELAN. Trading volume increased to 1727.59 mil shares worth RM1588.57 mil as compared to Monday’s 1642.24 mil shares worth RM1633.98 mil.

Leading Movers were GENTING (+10 sen to RM10.54), YTL (+4 sen to RM1.58), HLBANK (+20 sen to RM11.90), PETGAS (+4 sen to RM16.56) and HLFG (+6 sen to RM11.82). Lagging Movers were PETCHEM (-10 sen to RM6.80), AXIATA (-5 sen to RM5.10), TENAGA (-5 sen to RM6.20), MAXIS (-9 sen to RM5.89) and YTLPOWR (-3 sen to RM1.85). Market breadth was negative with 309 gainers as compared to 511 losers. -- JF Apex Securities Bhd



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Malaysian O&G output to see upswing in 5 yrs, says Idris Jala

KUALA LUMPUR (Feb 28): The Malaysian oil and gas (O&G) output is likely to see an upswing within the next five years and continue to contribute significantly, together with the services sector, to gross domestic product (GDP).

Minister in the Prime Minister's Department, Datuk Seri Idris Jala, said last year, the sector declined by 5.7 per cent and the lower oil output had affected economic growth.

Idris, who is also Performance Management & Delivery Unit (Pemandu) chief executive officer, said this when asked whether Malaysia was over-dependent on the O&G sector at a media briefing with International Trade and Industry Minister Datuk Seri Mustapa Mohamed.

Earlier, both ministers met the foreign missions and business councils here.

He said the Malaysian economy, despite the contraction, managed to record a 5.1 per cent growth last year which indicated that the services sector was really growing.

"I think in the past we have relied quite a lot on the O&G sector to grow, no doubt about it and we are taking all the necessary measures to make the services sector grow.

"By 2020, with all the focus on the tourism, education, financial services, wholesale and retail and healthcare sectors, we will see a major shift in our economy moving more into the services sector," he said.

Idris said the O&G was still Malaysia's single largest sector and "if we had no decline, the GDP growth last year could have been more than six per cent or maybe 6.5 per cent".

The decline was mainly due to the maintenance works in Peninsular Malaysia and the drop in production of the Murphy Oil's Kikeh field, Malaysia's first deep-water oil field, was due to sand in the oil and would take about or more than two years to solve, he said.

Thus, he said, with the committed huge investments of about RM132 billion by the O&G industry players coming in, it is possible to arrest the decline in the sector as well as enable the services sector to grow more prominently in contributing to the country's GDP.

"I do not think we will see immediate reduction in the decline as it will take some time. I would say with all the other things we are doing in other areas to increase production coupled with investments, it would appear in the next couple of years (less than five years), you will see an upswing in production," he said.

Meanwhile, Mustapa said, the session with the foreign missions and business council were very much focused on halal and visa matters.

He said the government would continue to engage with them to work out the matters and welcomes more sessions to work together as well as to continuously update on the Malaysian progress. - Bernama



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Tenaga to perform better in 2Q with RM2bn compensation

KUALA LUMPUR (Feb 28): TENAGA NASIONAL BHD [] expects to perform better in the second quarter ended Feb 29, 2012 as it would receive RM2 billion compensation from Petroliam Nasional Bhd and the government as part of a fuel cost sharing mechanism.

Its president and CEO Datuk Seri Che Khalib Mohamad Noh added that the gas supply has improved compared to a year earlier.

"The gas supply is better now thanks to Petronas. They have been giving us an average of 1,100 mmscfd. However we still need to burn distillates from time to time," he said on Tuesday.

The RM2 billion compensation is part of a fuel cost sharing mechanism equally shared by TNB, Petronas and the government to bear the RM3.07 billion cost to burn distillates as an alternative fuel from Jan 1, 2010 to Oct 31, 2011. TNB had to burn distillates to generate electricity due to shortage of gas supply from Petronas.

Che Khalib said TNB had to incur losses of RM400 million every month to burn distillates during the period.

"We still had to burn distillates in November and Dec. We will discuss with the government on what we want to do with that," he said.



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BIMB earnings for 4Q at RM73.88m, boost from Bank Islam, takaful

KUALA LUMPUR: BIMB HOLDINGS BHD [] posted RM73.88 million in net profit for the fourth quarter ended Dec 31, 2011, on the back of improved asset quality by Bank Islam and better underwriting results by Takaful Malaysia.

It said on Tuesday, Feb 29, revenue was RM568.74 million, while earnings per share were 6.93 sen.

BIMB attributed the higher income to higher fund and non-fund based income, improved asset quality by Bank Islam as well as better underwriting results by Takaful Malaysia.

It also cited higher realised gains on disposal of investment and the release of contingent special reserves as causes of its strong performance.

For FY ended Dec 31, 2011, its recorded net profit of RM204.41 million on the back of RM2.036 billion in revenue.



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Celcom Axiata posts net profit of RM2.1b in FY11

KUALA LUMPUR (Feb 28): Telecommunications provider, Celcom Axiata Bhd, has registered a net profit of RM2.1 billion for the financial year ended Dec 31, 2011.

The figure is 11 per cent higher when compared to the RM1.89 billion recorded in 2010.

Revenue rose six per cent to RM7.23 billion from the RM6.85 billion posted in 2010, driven mainly by higher subscribers on the back of an attractive product offering of bundled packages.

Its Chief Executive Officer Datuk Seri Shazalli Ramly said the current revenue growth was the strongest since the last fourth quarter in 2009.

"Celcom closed the year with 12 million subscribers, adding 542,000 more in the last quarter, promising greater opportunities for the company this year in respect of achieving consistent and strong traction in both revenue and profitability.

"We have evidently proven ourselves in meeting consumer demands at any cost while maintaining our top position," he told a media briefing here.0

Celcom is expected to continue to prioritise non-voice services, emphasising data access and innovative content offerings, while at the same time resuscitating voice usage.

Shazalli said Celcom has allocated RM1 billion for capital expenditure this year, to be largely spent on information TECHNOLOGY [] development.

"We will continue to deliver a comprehensive suite of access mediums, including mobile and high speed broadband, with the aim of having more WiFi hotspots in the country," he added. - Bernama



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QSR Brands 4Q net profit up 9.7% to RM38.7m, FY11 RM113m

KUALA LUMPUR (Feb 28): QSR BRANDS BHD [] reported net profit of RM38.69 million in the fourth quarter ended Dec 31, 2011, up 9.7% from the RM35.25 million a year ago due to better profits from Pizza Hut Malaysia.

It said on Tuesday its revenue rose 11% to RM923.11 million from RM831.40 million. Earnings per share were 13.78 sen compared with 12.81 sen.

QSR said profit before tax increased by 5.5% to RM82 million from RM77.7 million a year ago. Profit before tax in 2010 included a revaluation surplus of RM 6.7 million and if measured on a comparable basis, the profit before tax in 4Q11 improved by RM 11.1 million or 15.6%.

It said he group achieved higher sales and earnings in the current quarter albeit a challenging economic environment. KFC India and KFCH International College continued to incur high initial start-up costs in the current quarter during the gestation period.

“The improved results was also attributed to better profits from Pizza Hut Malaysia due to higher same store sales growth achieved and reduced cost of certain food items. KFC Cambodia recorded higher loss during the quarter due to fixed asset impairment on 4 non performing restaurants,” it said.

QSR also reported an improvement in revenue and pre-tax profit principally due to the year end school holidays and festive celebrations during the current quarter of the financial year.

For the financial year ended Dec 31, 2011, its net profit increased by 2.6% to RM113.10 million friom RM110.17 million. The revenue rose 10.3% to RM3.349 billion from RM3.035 billion.



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KFCH 4Q net profit dn 21.9% to RM38m, FY11 RM144m

KUALA LUMPUR (Feb 28): KFC Holdings Bhd (KFCH) saw its fourth quarter earnings decline 21.9% to RM38 million from RM48.67 million a year ago.

It said on Tuesday that KFC India and KFCH International College continued to incur high initial start-up costs in the current quarter during the gestation period.

As for revenue, it said there was a 12.1% increased to RM766.64 million from RM683.92 million. Earnings per share were 4.80 sen compared with 6.14 sen.

KFCH said profit before tax declined by 3.8% to RM61.0 million from RM 63.4 million a year ago when there was a revaluation surplus of RM 6.7 million.

“If measured on a comparable basis, the profit before tax in the current quarter improved by RM 4.3 million or 7.6%,” it said.

For FY11, KFCH’s earnings fell 8.2% to RM144 million from RM156.85 million in FY10 while revenue increased by 10.9% to RM2.798 billion from RM2.522 billion.

The higher revenue in the Malaysian operations were due to the network expansion of 24 new restaurants during the year bringing the total units to 539 restaurants as at end December 2011.

KFCH also attributed the increase in revenue due to the introduction of innovative new products supported by effective execution of marketing promotions to encourage new trials and repeat visits.



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Hock Seng Lee 4Q net profit RM26m, FY11 RM87.26m

KUALA LUMPUR (Feb 28): Sarawak-based infrastructure company HOCK SENG LEE BHD [] recorded net profit of RM26.14 million in the fourth quarter ended Dec 31, 2011, up 20.8% from the RM21.62 million a year ago, boosted by the strong performance of its marine and civil engineering businesses.

It said on Tuesday its revenue increased by 5.5% to RM158.58 million from RM150.26 million. Earnings per share were 4.76 sen compared with 3.97 sen.

For FY11, its net profit rose 18.8% to RM87.26 million from RM73.43 million a year ago while revenue increased by 19.1% to RM581.51 million from RM488.27 million.

“HSL Group’s net annual profit before tax for the financial year ended Dec 31, 2011 breached the RM100 million mark when it rose to RM116.60 million up 18% from 2010’s year-end figure of RM98.42 million,” it said.

Managing director Datuk Paul Yu announced that for FY11, the board recommended a final ordinary dividend of 9% and a special dividend of 3%.



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Mah Sing Group 4Q earnings up 30.8% to RM41m, record FY11

KUALA LUMPUR (Feb 28): MAH SING GROUP BHD [] posted net profit of RM41.03 million in the fourth quarter ended Dec 31, 2011, up 30.8% from RM31.35 million a year ago, boosted by the property segment.

It announced on Tuesday that its revenue increased by 41% to RM422.12 million from RM299.28 million. Earnings per share were 4.93 sen compared with 3.77 sen. It announced dividend of 11 sen a share.

For FY11, its earnings rose 42.7% to RM168.55 million from RM118.07 million in FY10 while revenue increased by 41.5% to RM1.570 billion from RM1.110 billion.

“The group delivered a solid performance in 2011 with new record highs for revenue, profit and sales. Revenue at RM1.6 billion and net profit at RM168.6 million represents 41% and 43% y-o-y growth compared to the previous year. Property sales were robust in 2011 at RM2.26 billion, more than a 46% improvement from the RM1.5 billion achieved in 2010,” it said.

Mah Sing also said despite expanded operations, balance sheets remain strong, with high cash pile at RM665.7 million and net gearing at a low of 0.29 as at Dec 31, 2011. It added the return on equity (ROE) at 16% and asset turnover at 55% were at their highest annual levels since 2007.

“It said that revenue from property segment improved 48% on-year to RM1.4 billion. The group's property sales exceeded internal target of RM2 billion to end at RM2.26 billion. Well located projects coupled with a reputation for delivering high quality PROPERTIES [] that meet contemporary demand helped boost sales,” it said.



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JTI slumps in absence of special dividend

KUALA LUMPUR (Feb 28): Shares of JT International were the top loser on Tuesday as investors were disappointed the cigarette manufacturer and distributor did not declare any special dividends.

At 9.53am, JTI was down 24 sen to RM6.92. There were 51,800 shares done.

The FBM KLCI shed 0.66 of a point to 1,558.38. Turnover was 316.56 million shares done valued at RM209.70 million. There were 200 gainers, 240 losers and 241 stocks unchanged.

CIMB Equities Research said it was disappointed with the absence of a special dividend as JTI’s cash continued to build up, rising 37% on-quarter to RM260 million, close to the RM265 million to RM290 million level when it last paid a special dividend amounting to 103 sen

In its analysis, the research house said a jump in marketing cost and other operating costs stubbed out JTI’s ability to meet FY11 forecasts. It has a Neutral outlook on JTI with a target price of RM7.50.



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KLCI in the red in early trade, PetChem, Tenaga weigh

KUALA LUMPUR (Feb 28): Blue chips slipped in early trade on Tuesday, weighed down by losses in Petronas Chemicals (PetChem) and TENAGA NASIONAL BHD [].

At 9.31am, the FBM KLCI was down 0.08 of a point to 1,558.96. Turnover was 187.10 million shares valued at RM140 million. Losers led gainers 164 to 171 with 218 counters unchanged.

Reuters reported that regional markets consolidated on Tuesday as investors remained wary of the impact from high oil prices on growth and hoped the European Central Bank's upcoming second liquidity injection will support sentiment and revive risk appetite.

CIMB Equities Research said in its technical outlook for the market said while prices edged up on Monday, t the buying momentum could not be sustained.

“Market breath continued to be weak as it has been for the whole of last week. The 1,566 high still stands and so is our bearish outlook. The 1,550 key support levels is still a level to keep watch as it would eliminate all bullish potential if it is breached.

“The wedge support is now at 1,542 and a break below would be detrimental for the medium and long term outlook. The upside is likely capped around the next resistance at 1,570-1,575 even if the 1,566 is taken out. The scale is tipping towards the bears,” said CIMB Research.

Among the decliners were JT International, down 21 sen to RM6.95, F&N 16 sen to RM17.80, Oriental Holdings 14 sen to RM6.10 and WCT six sen to RM2.65. PetChem fell nine sen to RM6.81 and Tenaga six sen lower at RM6.19.



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HDBSVR maintains hold on E&O, ups TP to RM1.80

KUALA LUMPUR (Feb 28): HwangDBS Vickers Research said Eastern & Oriental Bhd’s 3QFY12 net profit came in at RM15.4 million (up 106% on-year excluding exceptionals, up 11% on-quarter), bringing 9MFY12 core earnings to 60-86% of its and consensus expectations.

It said on Tuesday that E&O could still meet management’s profit target (RM250 million to RM300 million over FY11-12 RM150 million to RM200 million per annum thereafter).

HDBSVR said the factors would be on the back of record RM930 million unbilled sales and new launches.

The research house said E&O and Sime Darby have held their second monthly collaboration meeting and we expect more detailed plans to be unveiled by 1H12.

“Cut FY12-13F earnings by 6%-8% to push forward profit recognition for Andaman condos. Maintain Hold, raise TP to RM1.80 (from RM1.50) based on a lower 40% discount (from 50%) to RNAV of RM3.05 as STP continues to see strong demand amid a softer property market.

“We have assumed RM265psf for STP’s remaining landbank (including Phase 2), 10% premium to RM240psf Ivory PROPERTIES [] paid for Bayan Mutiara given STP’s more prime location (sea-facing),” said HDBSVR.



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HDBSVR maintains Hold call on CIMB, target price of RM7.60

KUALA LUMPUR (Feb 28): HwangDBS Vickers Research said CIMB Group Holdings Bhd’s 4Q11 earnings were in line.

It said on Tuesday the higher provisions on-quarter were offset by one-off recoveries (RM100 million from CIMB Thai) and gain from de-consolidation of CIMB Aviva (RM250 million).

HDBSVR said the RM250 million gain was fully offset by additional provisions, including a change in default probability for its Malaysian retail business under FRS 139.

“Corporate investment banking profits fell in the absence of mega deals in 2011, but the pipeline is expected to be strong this year. NIM was stable on-quarter but weakened on-year because of higher funding costs,” it said.

HDBSVR said loans grew 4% on-quarter to take full year loan growth to 14%, but that was below management’s 18% target.

Deposits grew 11% largely driven by Malaysian and Singapore operations, while CASA to total deposits inched up to 35% (FY10: 33%). Costs were stable with reductions largely in establishment, marketing and general expenses. Asset quality continued to improve with absolute NPLs dropping by 5%, while gross NPL ratio fell to 5.1%. Capital ratios (group level) under Basel III would be as follows: 8.4% core Tier-1 CAR, 9% Tier-1 CAR, and 15% RWCAR.

“Lingering external headwinds dictates a still cautious outlook for CIMB. It has guided for 16% loan growth for 2012, led by Malaysian and Indonesian operations (high-teens growth). Corporate loans should be the main growth driver as key ETP projects kick-off. A rights issue at CIMB Thai is on the cards to fund growth, but there are no details.

“Maintain Hold and RM7.60 TP based on the Gordon Growth Model and 16.5% ROE, 6.5% growth, and 11% cost of equity. FY12/13F earnings are revised by 3%-4% after adjusting for FY11 result,” it said.



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CIMB Research has technical buy on BIMB at RM2.16

KUALA LUMPUR (Feb 28): CIMB Equities Research has a technical buy on BIMB Holdings at RM2.16 at which it is trading at a price-to-book value of 1.3 times.

It said on Tuesday that prices have broken out of its long term triangle pattern in January and have stayed above the triangle support.

“It appears to be forming a bullish flag pattern just above its moving averages. With its indicators in consolidation mode, the bullish flag pattern could continue for a while longer. Nevertheless, it provides traders time to get in,” it said.

CIMB Research said the stock was a buy with a stop loss placed below RM2.07. A breakout above the RM2.22 flag resistance would mean that prices are headed back to retest RM2.43 high.



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CIMB Research maintains technical sell on Sarawak Oil Palms at RM6.17

KUALA LUMPUR (Feb 28): CIMB Equities Research is maintaining its technical sell call on Sarawak Oil Palms at RM6.17 at which it is trading at a price-to-book value of 2.2 times.

It said on Tuesday that Sarawak Oil Palms did indeed form a bearish wedge pattern as suggested earlier on Jan 20 but the wedge pattern extended on the upside and ticked off its buy stop at RM6.16.

“We believe that another selling opportunity is at hand here. The bearish divergence on its MACD and RSI show that buying momentum has waned. RSI has also moved down from its overbought territory.

“A close below the key support at RM6.15 would confirm the reversal and prices could soon fall towards RM5.34-RM5.55 next. Put a buy stop at above RM6.45, just in case,” CIMB Research said.



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