SC says received a total of 19 corporate proposals in Q1 2012

KUALA LUMPUR (April 30); The Securities Commission Malaysia (SC) received a total of 19 corporate proposals in Q1 2012 as compared to 41 proposals in Q4 2011.

In a statement Monday, the SC said this was in line with the trend of increasing preference for fund-raising through issuance of corporate bonds and sukuk, the majority (79%) of the proposals were for issuance of private debt securities (PDS).

The SC said that out of the 19 corporate proposals, 15 were for PDS while the remaining four (i.e. 21%) were equity applications.

“Out of the four equity applications, two were for IPO, as compared to one in Q4 2011,” it said.

The SC said approved ringgit-denominated sukuk issuances in Q1 2012 stood at RM11 billion, which reflected an increase from the RM7.7 billion registered in the same quarter last year.

“The SC has also approved one IPO in Q1 2012, which is expected to raise RM20.4 million from the capital market, with a potential market capitalisation of RM82.0 million.

“Total amount of funds to be raised from the IPO and private debt securities approved in Q1 2012 is RM21.9 billion, compared to RM49 billion in Q4 2011,” it said.

For collective investment schemes, the SC said it approved 14 applications to establish new funds in Q1, as compared to 33 in Q4 last year.

“Out of the total applications for new funds, five were for the establishment of new unit trust funds; nine were for wholesale funds,” it said.



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Pantech 4Q net profit surges 90% to RM10.68m

KUALA LUMPUR (April 30): PANTECH GROUP HOLDINGS BHD [] Net profit for the fourth quarter ended Feb 29, 2012 surged 90% to RM10.68 million from RM5.11 million a year earlier, due mainly to an increase in revenue.

The company said on Monday that its revenue for the quarter jumped 76.2% to RM128.45 million from RM72.9 million in 2011 due to improved sales demand from oil and gas sector with the on-going new projects.

Earnings per share rose to 2.37 sen from 1.14 sen, whiel net assets per share was 75 sen.

Pantech proposed a final single tier dividend of 1.3 sen per share 20 sen each amounting to RM5.84 million for the financial year ended Feb 29, 2012, subject to shareholders' approval.

For the financial year ended Feb 29, Pantech’s net profit rose 19% to RM34.5 million from RM28.99 million in 2011, while revenue rose to RM437.03 million from RM335.78 million.

Reviewing its performance, Pantech said the higher profit and revenue was due mainly to higher sales from both manufacturing and trading division, and the contribution of margin from sale of carbon steel niche products.

On its prospects, Pantech said it would continue to focus and expand on its existing revenue generating businesses and seek opportunities to grow its businesses, both locally and overseas, by expanding its capacity as the major pipes, fittings and flow controls solutions provider to the oil and gas industries and related upstream and downstream industries.

“The recent oil and gas discoveries offshore Malaysia and the on-going oil and gas investment under Economic Transformation Programme (ETP) announced by the Government of Malaysia is expected to intensify capital investment in this sector.

“The Group is of the view that the long term outlook of the oil and gas industries continues to be positive and barring any unforeseen circumstances, the Group expects its overall performance for the next financial year to remain satisfactory,” it said.



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Sozo Global proposes first and final net tax exempt dividend of 3.8 sen

KUALA LUMPUR (April 30): Sozo Global Ltd has proposed a first and final tax exempt dividend of 3.8 sen per share for the financial year ended Dec 31, 2011.

In a filing to Bursa Malaysia Securities Bhd on Monday, the company said the dividend was subject to the shareholders’ approval at its the forthcoming Annual General Meeting.



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Spritzer 3Q net profit jumps 69.4% to RM3.66m

KUALA LUMPUR (April 30): SPRITZER BHD [] net profit for the third quarter ended Feb 29, 2012 jumped 69.4% to RM3.66 million from RM2.16 million a year earlier, due mainly to higher sales of more profitable carbonated and flavoured drinks and natural mineral water products.

The company said on Monday that its revenue for the quarter rose 33% to RM45.22 million from RM34.09 million in 2011 on higher sales volume.

Earnings per share increased to 2.18 sen from 1.65 sen, while net assets per share was RM1.13.

For the nine months ended Sept 29, Spritzer posted net profit RM8.57 million compared to RM7.84 million a year earlier, on the back of revenue RM131.53 million from RM104.73 million in 2011.

On its prospects, the company said that whilst the domestic economic outlook had remained positive, the global economic outlook was highly uncertain mainly due to the ongoing European sovereign debt crisis.

It said the persistent high raw material prices also posed a greater challenge to the group.

The company said it would continue to focus on achieving greater economies of scale and improving its productivity and operational efficiency so as to remain competitive.

“In line with our expansion plan and higher installed capacity, the Group will seek to further broaden its product range, including the recent introduction of the larger-pack-size bottled water suitable for the use of water dispensers, to cater to the needs of the various market segments.

“With the resilient domestic market and our continuous efforts to improve our export sales, we remain confident that the volumes and earnings of our various bottled water products will be further strengthened,” it said.



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Kencana unit gets EPCC contract from Petronas Gas worth RM35m

KUALA LUMPUR (April 30): KENCANA PETROLEUM BHD []’s wholly owned subsidiary, Kencana HL Sdn. Bhd. ("Kencana HL") in consortium with Shinryo (M) Sdn Bhd has secured an engineering, procurement, CONSTRUCTION [] and commissioning (“EPCC”) from PETRONAS GAS BHD [].

Kencana said on Monday that the contract was for the EPCC of two cogeneration plants, having combined capacity of 50MW of electrical power and steam capacity of 120 ton per hour.

The company said the portion of the contract value for Kencana HL was estimated at RM35 million.

“The Contract is expected to be fully completed by first quarter of calendar year 2014,” it said.

Kencana said the contract was expected to contribute positively to its earnings for the duration of the contract.



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KLCI falls 25.72 points in April

KUALA LUMPUR (April 30): The FBM KLCI closed higher on Monday but fell some 25.72 points in April, as investor sentiment took a beating given rising external and domestic uncertainties.

The FBM KLCI rose 2.81 points to close at 1,570.61 on Monday.

Gainers trailed losers by 297 to 388, while 318 counters traded unchanged. Volume was 945.42 million shares valued at RM1.38 billion.

Asian shares were mixed on Monday as weaker-than-expected U.S. growth data left open the possibility for more monetary stimulus from the Federal Reserve, but trading was subdued with Japanese and Chinese markets closed, according to Reuters.

At the regional markets, Hong Kong’s Hang Seng Index rose 1.7% to 21,094.21, South Korea added 0.34% to 1,981.99, Taiwan’s Taiex was up 0.28% to 7,601.72 while Singapore’s Straits Times Index shed 0.26% to 2,973.91.

ON Bursa Malaysia, BAT was the top gainer and rose 74 sen to RM55.54, Aeon Credit added 64 sen to RM10.70, Shell rose 36 sen to RM10.28, Petronas Dagangan 30 sen to RM19.36, Nestle and Panasonic gained 20 sen each to RM55.30 and RM22.70, OSK 15 sen to RM1.71, Tradewinds and Knusford added 14 sen each to RM9.78 and RM1.94, while Toyo Ink gained 12 sen to RM1.53.

Ariantec was the most actively traded counter with 399.1 million shares done. The stock fell one sen to 24.5 sen.

Other actives included Utopia, Metronic, CSL, Astral Supreme, Focus, DRB-Hicom, Bumi Armada and BIMB warrants.

Decliners on Monday included SAM Engineering, Dutch Lady, Petronas Gas, MMHE, Kluang, Dayang Enterprise, Subur Tiasa. UAC and Bumi Armada.



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Prudential Assurance surpasses RM1 billion mark for second year running

KUALA LUMPUR (April 30): Prudential Assurance Malaysia Berhad (PAMB) surpassed the RM1 billion mark for the second year in a row after closing RM1.107 billion in total new business Annual Premium Equivalent (APE) sales which comprised both life insurance and Takaful contributions for the financial year 2011, posting an 8% increase from its performance of RM1.021 billion in 2010.

In a statement Monday, its chief executive officer Charlie Oropeza, attributed the continued success to the high productivity of PAMB’s agency force, an expanding Bancassurance business, strong business mix, continuous product innovation, and service and operational excellence.

He said that 91% of the business was contributed by its agency force, while Bancassurance accounted for 9%.

Oropeza said that PAMB had over 14,000 agents nationwide with Bumiputra agents making up 39% of its total agency force.

Last year, the insurer recruited more than 4,500 new agents, its highest recruitment number in the last 5 years, he said.

Oropeza said PAMB was the fourth largest life insurance business for Prudential in Asia, accounting for 13% of total new business APE sales in Asia for 2011.



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RAM Ratings reaffirms ratings of Al-‘Aqar Capital’s RM300 million sukuk

KUALA LUMPUR (April 30): RAM Ratings has reaffirmed the respective AAA, AA2, AAA(bg) and P1 ratings of Al-‘Aqar Capital Sdn Bhd’s (Al-‘Aqar Capital) Class A Islamic Medium-Term Notes (IMTN), Class B IMTN, Class C IMTN and Islamic Commercial Papers (ICP) under its RM300 million Sukuk Ijarah Programme;

In a statement Monday, RAM Ratings said all the long-term ratings had a stable outlook.

Al-‘Aqar Capital is a special-purpose vehicle incorporated solely for the acquisition of 11 hospitals (the Hospitals) leased to Al-‘Aqar Healthcare Real Estate Investment Trust and operated by KPJ HEALTHCARE BHD [] (KPJ Group or the Group).

RASM Ratings said the reaffirmation of the respective AAA, AA2 and P1 ratings of the Class A IMTN, Class B IMTN and ICP was premised on the debt service coverage as well as loan-to-value ratios that commensurate with the respective ratings, the transaction’s features and the sturdy cashflow generated by the hospital operators.

“Meanwhile, the reaffirmation of the Class C IMTN reflects the enhancement from a bank guarantee provided by Public Bank Berhad, whose AAA/stable/P1 financial institution ratings were reaffirmed by RAM Ratings on June 15, 2011,” it said.

The rating agency said that rental income derived from the Hospitals increased 3.7% year-on-year (y-o-y) to RM48.8 million in FYE 31 December 2011 (FY Dec 2011), i.e. above its stressed lease levels for the respective ratings.

“We note that rental revision takes place every 3 years, and is a function of the yields of 10-year Malaysian government securities and the market values of the Hospitals.

“Nevertheless, we derive comfort from the minimum lease payments under the lease terms which, collectively, are sufficient to cover the semi-annual profit payments to the Sukuk holders,” it said.



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KNM proposes fund raising exercise involving rights issuance of RM200 million

KUALA LUMPUR (April 30): KNM GROUP BHD [] (KNM) has proposed to undertake a fund raising exercise involving a Rights Issuance of RM200 million.

In a filing to Bursa Malaysia Securities Bhd on Monday, KNM said the definitive terms for the Rights Issue would be determined by the Board of the Company subject to the advice of the Company’s Corporate Advisors to be appointed in due course.

“The Company will be seeking its shareholders' approval for the Proposed Rights Issue at a general meeting to be convened at an appropriate date once the definitive terms of the Proposed Rights Issue has been approved by the Board and the relevant authorities,” it said.

KNM said further announcement(s) on the corporate proposal in respect of the proposed rights issue would be made in due course.



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REDTone Mobile appoints new CEO

KUALA LUMPUR (April 30): Mobile virtual network operator REDtone Mobile Sdn Bhd has appointed a new chief executive officer, Farid Yunus.

In a statement Monday, REDTone said Farid is part of Celcom Axiata Bhd's senior management team, and was seconded to the company to help in the MVNO's next phase of growth.

“Prior to his secondment to REDtone Mobile, Farid was Celcom Axiata’s Chief Strategy and Business Transformation Officer, responsible for TECHNOLOGY [] and market strategies and business planning,” it said.

REDTone said Farid was an industry analyst with the Yankee Group in London, focusing on mobile markets and carriers in Europe, Middle East and Africa before he joined Celcom Axiata.

He has 14 years of experience in the mobile industry, and holds a Masters degree from the University of Leeds, and a Bachelor of Science in Telecommunications from Ohio University, it said.



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LBS Bina proposes first & final gross dividend of 2.5 sen

KUALA LUMPUR (April 30): LBS BINA GROUP BHD [] has proposed a gross first and final dividend of 2.5 sen per ordinary share of RM1.00 for the financial year ended Dec 31, 2011

In a filing to Bursa Malaysia Securities Bhd on Monday, the company said the dividend was subject to the shareholders’ approval at its the forthcoming Twelfth Annual General Meeting.



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KLCI up at mid-day break, moves above 1,570-level

KUALA LUMPUR (April 30): The FBM KLCI brushed off the concerns arising from last weekend’s Bersih 3.0 rally that turned ugly and inched higher on Monday, in line with the gains at most regional markets, lifted by select blue chips in early trade.

The FBM KLCI was up 4.01 points to 1,571.81 at the mid-day break.

Gainers trailed losers by 229 to 285, while 299 counters traded unchanged. Volume was 398.95 million shares valued at RM422 million.

Asian shares rose on Monday as weaker-than-expected U.S. growth data left open the possibility for more monetary stimulus from the Federal Reserve, but trading was subdued with Japanese and Chinese markets closed, according to Reuters.

At the regional markets, Hong Kong’s Hang Seng Index rose 1.12% to 20,974.40, south Korea’s added 0.14% to 1,978.20, while Singapore’s Straits Times Index fell 0.20% to 2,975.62 and Taiwan’s Taiex shed 0.09% to 7,473.49.

MIDF Research in its weekly fund flow analysis said Malaysian stocks continued to attract foreign money last week.

It said foreign investors bought on net basis, Malaysian-listed shares amounted to RM356.1 million compared with RM408.8 million the week before. Foreign investors have now been net buyers of Malaysian stocks for 11 consecutive weeks now.

“We cross over to May this week.

“The adage “Sell in May and go away” is certainly not uncorroborated — the KLCI had recorded negative return for the month in six out of the last 10 years, averaging -3.2%. We therefore begin the month with a historical obstacle to surmount,” it said on Monday.

On Bursa Malaysia, Petronas Dagangan was the top gainer and added 24 sen to RM19.30, Aeon Credit and Nestle gained 20 sen each to RM10.26 and RM55.30, Tasek and Takaful was up 15 sen each to RM8.70 and RM4, Tradewinds PLANTATION []s up 14 sen to RM5.84, Toyo Ink and Carlsberg added 12 sen each to RM1.53 and RM11.60.

Meanwhile, RHB Capital and OSK Holdings rose on gaining the ministry of finance nod for a merger. RHB Capital rose 11 sen to RM7.36 whiel OSK was up 13 sen to RM1.69.

Ariantec was the most actively traded counter with 201.62 million shares done. The stock fell half a sen to 25 sen.

Other actives included Utopia, DRB-Hicom, CSL, Focus, Daya Materials, Bumi Armada and YTL Corp.

Decliners at mid-day included Dutch Lady, Jaya Tiasa, PacificMas, UAC, Amway, Bumi Armada and MMHE.



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Carlsberg up at noon on plans to hike prices

KUALA LUMPUR (APRIL 30): CARLSBERG BREWERY MALAYSIA BHD [] shares advanced at noon on Monday after the company last week said it would introduce a 3% general increase in price effective May 1, 2012.

At 12pm, Carlsberg was up 12 sen to RM11.60 with 238,900 shares done.

“The adjustment is not a dramatic one and is in line with inflation levels,” said its managing director, Soren Ravn after the group’s AGM last Thursday.

Ravn said the recent introduction of premium labels Asahi and Kronenbourg currently hold 16% to 17% market share in the premium segment while good growth is expected to continue.

Carlsberg’s premium brands currently contribute just under 10% to the group’s total revenue of RM1.5 billion for FY11. A 100% profit distribution has also been declared, at a total gross dividend of 72.5sen, he said.



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Bumi Armada shares retreat at mid-morning

KUALA LUMPUR (APRIL 30): Bumi Armada Bhd shares retreated on Monday after some shareholders holding 293 million shares, representing almost 10% of the company, disposed their interest via a book building exercise last Thursday. The exercise was reportedly done at an average price of RM3.95.

At 10.30am, Bumi Armada, a company that is controlled by low profile T. Ananda Krishnan, was down six sen to RM4 with 2.63 million shares traded.

Ananda himself did not dispose any of his interest in Bumi Armada, indicating that there is still much upside for the company.

Bumi Armada Bhd in response to news reports that Ananda was paring down his stake said that enquiries with its major shareholders and directors, it clarified that Ombak Damai Sdn Bhd, Wijaya Sinar Sdn Bhd and Karisma Mesra Sdn Bhd had participated in a book-building exercise conducted by CIMB Investment Bank Bhd, accounting for a total of 293 million Bumi Armada shares.

The Edge Financial Daily last Friday reported that Ananda and his bumiputera partners will sell roughly 15% of offshore services provider Bumi Armada Bhd in private placements to local and foreign institutional investors in a deal that will raise close to RM2 billion.



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RHB Capital, OSK up on getting nod for merger

KUALA LUMPUR (APRIL 30): Shares of RHB CAPITAL BHD [] and OSK HOLDINGS BHD [] advanced on Monday after they obtained the finance ministry's approval to merge RHB's banking group with OSK's investment bank, according to filings to the local bourse.

At 10.30am, RHB Capital added 12 sen to RM7.37 with 831,900 shares done while OSK gained five sen to RM1.61 with 1.11 million shares traded.

"Further details on the possible merger will be announced upon the execution of a conditional share purchase agreement between OSK and RHB," both RHB and OSK said in separate filings to Bursa Malaysis Securities Bhd last Friday.



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KLCI inches higher at mid-morning, brushes off concerns after Bersih rally

KUALA LUMPUR (April 30): The FBM KLCI brushed off events over last weekend arising from the Bersih 3.0 rally and inched higher on Monday, in line with the gains at most regional markets, lifted by select blue chips in early trade.

At 10am, the FBM KLCI was up 3.64 points to 1,571.44.

Gainers led losers by 184 to 151, while 202 counters traded unchanged. Volume was 183.93 million shares valued at RM115.43 million.

Asian shares inched higher on Monday as weaker-than-expected U.S. growth data left open the possibility for more monetary stimulus from the Federal Reserve, but trading will likely be subdued with Japanese and Chinese markets closed, according to Reuters.

Global stocks ended higher on Friday on strong earnings reports, while the dollar dipped as data showed growth in the U.S. economy cooled in the first quarter to a 2.2% annual growth rate, below a 2.5% forecast, feeding views that the Fed could ease policy further to boost growth, it said.

At the regional markets, Hong Kong’s Hang Seng Index rose 1.12% to 20,973.80, South Korea’s Kospi added 0.44% to 1,984.09, while Singapore’s Straits Times index fell 0.20% to 2,975.60 and Taiwan’s Taiex shed 0.27% to 7,460.38.

Maybank Investment Bank Bhd in a market strategy note Monday maintained its Neutral stance on the FBM KLCI and said it expects the market to continue pricing in political concerns ahead of the 13th General Elections (13GE).

It said last Saturday's Bersih 3.0 rally had thrown up the possibility of the 13GE being deferred.

“On the external front, renewed concerns over the Eurozone imply heightened volatility again for equity markets.

“Against such a backdrop, we expect domestic equities to stay range bound ahead of the 13GE, and advise investors to stay selective in their picks,” it said.

BIMB Securities Research said on Monday that in the US solid corporate earnings, improving economic growth and employment had kept investors upbeat on equities hence the higher closing for the Dow Jones Industrial Average at 13,228 (+24 points).

Meanwhile European bourses all closed higher possible on a rebound after an eventful week, it said.

“We believe this as a lull before the storm as the situation in Spain is ripe for traders to manufacture more volatility ahead.

“To recap, the country recently was downgraded by the S&P and recently reported its unemployment rate of 24.4% for 1Q12 should become as a main target to derail sentiments, it said.

The research house said Asian markets were weaker possibly spooked by the situation in Spain amid profit taking activities.

“Locally, the FBM KLCI fell almost 12 points to 1,567 ahead of the Bersih 3.0 Rally as investors continue to pare down their holdings.

“We believe outlook for the local bourse has deteriorated for the 2Q12 unless corporate earnings for the 1Q excel. Next support is seen at 1,560,” it said.

Among the gainers on Bursa Malaysia at mid-morning, Chin Teck added 29 sen to RM9.30, Aeon Credit and Petronas Dagangan up 22 sen each to RM10.38 and RM19.28, Tasek 21 sen to RM8.76, UMW and Carlsberg 14 sen each to RM7.97 and RM11.62, Genting PLANTATION []s 13 sen to RM9.52, Toyo Ink and KLK 12 sen each to RM1.53 and RM23.82, while Petra Energy added 11 sen to RM1.27.

Utopia was the most actively traded counter with 178.28 million shares done. The stock was unchanged at 8.5 sen.

Other actives included DRB-Hicom, XDL, CSL, Berjaya Corp. Daya Materials, Metronic and Oversea.

Decliners included PacificMas, Bumi armada, Dutch Lady, IJM Plantations, Sarawak Plantations, Batu Kawan, GAB and Gadang.



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KLCI inches higher in early trade

KUALA LUMPUR (April 30): The FBM KLCI inched higher on Monday, in line with the gains at most regional markets, lifted by select blue chips in early trade.

At 9am, the FBM KLCI was up 2.66 points to 1,570.46.

Gainers led losers by 66 to 27, while 82 counters traded unchanged. Volume was 15.14 million shares valued at RM6.98 million.

Asian shares inched higher on Monday as weaker-than-expected U.S. growth data left open the possibility for more monetary stimulus from the Federal Reserve, but trading will likely be subdued with Japanese and Chinese markets closed, according to Reuters.

Global stocks ended higher on Friday on strong earnings reports, while the dollar dipped as data showed growth in the U.S. economy cooled in the first quarter to a 2.2% annual growth rate, below a 2.5% forecast, feeding views that the Fed could ease policy further to boost growth, it said.

Among the early gainers on Bursa Malaysia on Monday were Petronas Dagangan, UMW, KLK, CM, Boustead, RHB Capital, OSK, Genting and Sime Darby.



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MIDF Research starts coverage on Affin with Buy rating, target price RM3.50

KUALA LUMPUR (April 30): MIDF Research has initiated coverage on AFFIN HOLDINGS BHD [] at RM3.05 with a target price of RM3.50 and said Affin’s net profit had been gradually improving with higher operating income and lower loan loss provisions.

It said in a note Monday that the group achieved a CAGR for net profit after tax and minority interest (PATAMI) of 15.1% for the period of FY07-FY11.

ROE has improved from 6.5% in FY07 to 9.4% in FY11. We expect the ROEs for both FY12 & FY13 to be in the high single digit of 8.9%, it said.

“Our fair value for the stock of is based on a PBVR of 0.9x on FY12 BVPS which equates to a PER of 10x . Valuation is undemanding as it is currently trading at less than 1.0x of its book value as at end of Dec’11 and a discount to the average PBVR of the sector.

“We believe that concerns of liquidity of the stock, lower ROE compared to peers, the lack of regional exposure with the bulk on loans on hire purchase (29.3% of total loans) and mortgages (27.2% of total loans) which are expected to be challenging moving forward have been priced in by market,” said MIDF Research.



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Stocks to watch WZ Steel, Pensonic, Bumi Armada, Chin Teck

KUALA LUMPUR (APRIL 28): The FBM KLCI is expected to trend lower next week in response to rising solvency risk and borrowing cost in Europe (Spain & Italy) and rising local political uncertainties.

On the local scene, the outcome of the Bersiih 3.0 rally, and how the ruling Barisan Nasonal government handles the issue will also play heavily on investor sentiment.

U.S. stocks advanced on Friday and posted their best weekly gains in a month as stronger-than-expected earnings from Amazon.com and Expedia Inc reinforced confidence in corporate performance, according to Reuters.

Wall Street managed a fourth day of gains as the strong earnings season outweighed a surprisingly weak reading on first-quarter economic growth, it said.

Next week's release of a slew of economic data on the U.S. labor market and the beginning of the latter half of corporate earnings will be keenly watched to see if they are enough to allow stocks to break above the recent trading range, it said.

Affin Investment Bank Bhd vice president and head of retail research Dr Nazri Khan said he expects the FBM KLCI to trend lower in response to rising solvency risk and borrowing cost in Europe (Spain & Italy) and rising local political uncertainties.

“Despite positive comments from the USA Fed on possible monetary stimulus, a weaker than expected read on April Euro zone sentiment and rising European bond yield seemed to bring struggling European growth and debt concerns back into focus.

“Following Standard & Poor's downgrade of Spain's long-term sovereign credit rating by two notches (from A to BBB+ with a negative outlook), we expect more selling to weigh on European equities and increase the risk-off appetite for German Bunds and USA Treasuries,” he said.

Among the stocks that could be in focus are WZ Steel Bhd, PENSONIC HOLDINGS BHD [], Bumi Armada Bh and CHIN TECK PLANTATION []S BHD [].

WZ Steel Bhd is acquiring an industrial land in Indonesia’s West Java province for IDR 14.58 billion (RM5.02 million) to build a new factory in the neighbouring country.

In a statement Friday, WZ Steel said it is buying the leasehold tract within the Delta Silicon industrial area in the Lippo Cikarang enclave, from Indonesia-based property developer PT Lippo Cikarang Tbk.

Pensonic Holdings Bhd posted a third quarter net loss on higher as higher revenue failed to mitigate the impact of rising operating cost for the electrical and electronic appliances manufacturer.

Pensonic said net loss came to RM1.14 million in the quarter ended February 29, 2012 against RM896,000 a year earlier. Revenue grew 7% to RM85.08 million from RM79.65 million.

“The decrease was mainly due to lower margin recorded as a result of active promotional activities carried out and also the increases in administration, selling and distribution expenses in current quarter for future expansion,” it said.Bumi Armada Bhd in response to news reports that Ananda was paring down his stake said that enquiries with its major shareholders and directors, it clarified that Ombak Damai Sdn Bhd, Wijaya Sinar Sdn Bhd and Karisma Mesra Sdn Bhd had participated in a book-building exercise conducted by CIMB Investment Bank Bhd .

It said Ombak Damai had participated with 9 million, while Ombak Damai and Karisma Mesra with a joint 284 million shares respectively, accounting for a total of 293 million Bumi Armada shares.

The Edge Financial Daily on Friday reported that Tycoon Ananda Krishnan and his bumiputera partners will sell roughly 15% of offshore services provider Bumi Armada Bhd in private placements to local and foreign institutional investors in a deal that will raise close to RM2 billion.

Financial executives involved in the placement told The Edge Financial Daily that the sale of roughly 440 million shares in Bumi Armada would cut the joint holdings of Ananda and his bumiputera partners to 55% in the company.

Chin Teck net profit for the second quarter ended Feb 29 2012 fell 33.58% to RM9.19 million from RM13.83 million a year earlier due mainly to substantial decrease in profit contribution from its associates.

The company said on Friday that its revenue for the quarter fell 2.44% to RM28.22 million from RM28.93 million in 2011 due to lower average selling prices of FFB, crude palm oil and palm kernel.

For the six moths ended Feb 29, Chin Teck’s net profit fell to RM24.48 million from RM2998 million on the back of revenue of RM60.69 million.



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Chin Teck 2Q net profit falls 33.58% to 9.19m

KUALA LUMPUR (April 28): CHIN TECK PLANTATION []S BHD [] net profit for the second quarter ended Feb 29 2012 fell 33.58% to RM9.19 million from RM13.83 million a year earlier due mainly to substantial decrease in profit contribution from its associates.

The company said on Friday that its revenue for the quarter fell 2.44% to RM28.22 million from RM28.93 million in 2011 due to lower average selling prices of FFB, crude palm oil and palm kernel.

Earnings per share fell to 10.05 sen from 15.14 sen, while net assets per share was RM6.62.

For the six moths ended Feb 29, Chin Teck’s net profit fell to RM24.48 million from RM2998 million on the back of revenue of RM60.69 million,.



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Bumi Armada clears air on reports Ananda Krishnan paring down stake

KUALA LUMPUR (April 28): Bumi Armada Bhd in response to news reports that Ananda was paring down his stake said that enquiries with its major shareholders and directors, it clarified that Ombak Damai Sdn Bhd, Wijaya Sinar Sdn Bhd and Karisma Mesra Sdn Bhd had participated in abook-building exercise conducted by CIMB Investment Bank Bhd .

It said Ombak Damai had participated with 9 million, while Ombak Damai and Karisma Mesra with a joint 284 million shares respectively, accounting for a total of 293 million Bumi Armada shares.

The Edge Financial Daily on Friday reported that Tycoon Ananda Krishnan and his bumiputera partners will sell roughly 15% of offshore services provider Bumi Armada Bhd in private placements to local and foreign institutional investors in a deal that will raise close to RM2 billion.

Financial executives involved in the placement told The Edge Financial Daily that the sale of roughly 440 million shares in Bumi Armada would cut the joint holdings of Ananda and his bumiputera partners to 55% in the company.



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WZ Steel buys industrial tract in Indonesia

KUALA LUMPUR (April 27) : WZ Steel Bhd is acquiring an industrial land in Indonesia’s West Java province for IDR 14.58 billion (RM5.02 million) to build a new factory in the neighbouring country.

In a statement to the Bursa Malaysia, WZ Steel said it is buying the leasehold tract within the Delta Silicon industrial area in the Lippo Cikarang enclave, from Indonesia-based property developer PT Lippo Cikarang Tbk.

“The proposed acquisition is part of WZ Steel’s expansion plan to set up a factory in Indonesia. The total estimated investment costs for this new factory in Indonesia would be approximately RM16 million including land acquisition and CONSTRUCTION [] of manufacturing facilities.

“The market for the cold‐drawn steel products in Indonesia has seen considerable growth in the past few years. The setting up of production facilities in Indonesia will enable the group to be closer to its customers and tap the potential of the growing market there,” WZ Steel said.

It said it will finance the land acquisition and construction of its factory with internal funds and bank loans.



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Pensonic posts 3Q net loss on higher operating cost

KUALA LUMPUR (April 27) : PENSONIC HOLDINGS BHD [] posted a third quarter net loss on higher as higher revenue failed to mitigate the impact of rising operating cost for the electrical and electronic appliances manufacturer.

In a statement to the exchange, Pensonic said net loss came to RM1.14 million in the quarter ended February 29, 2012 against RM896,000 a year earlier. Revenue grew 7% to RM85.08 million from RM79.65 million.

“The decrease was mainly due to lower margin recorded as a result of active promotional activities carried out and also the increases in administration, selling and distribution expenses in current quarter for future expansion,” Pensonic said.

Cumulative nine-month net profit fell 54% to RM2.24 million from RM4.86 million a year earlier although revenue rose 12% to RM258.37 million from RM230.27 million. Pensonic said it will focus on its core business to achieve stronger profit growth for the final quarter of the current financial year.



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KLCI finishes in red on pre-election sentiment

KUALA LUMPUR (April 27) : The FBM KLCI stayed in the red till the market closed on Friday as pre-election sentiment gets an upper hand in dictating the direction of local equities. This comes ahead of the much-anticipated Bersih 3.0 rally on Saturday.

The less-optimistic sentiment across the local bourse was despite a stronger overnight close across US markets as global investors responded positively to improving US real estate and corporate earnings updates.

At 5pm, the FBM KLCI fell 11.89 points to close at 1,567.8. Across the exchange, 1.3 billion shares worth RM1.4 billion were traded, leading to 286 gainers versus 409 decliners.

Among top gainers, NCB HOLDINGS BHD [] was up 49 sen to RM4.39, while MALAYAN BANKING BHD [] added 12 sen to RM8.64.

Decliners include NESTLE (M) BHD [] which fell 80 sen to RM55.10 while BRITISH AMERICAN TOBACCO (M) [] Bhd was down 70 sen to RM54.80.

Most active was Ariantec Global Bhd which gained two sen to 25.5 sen with some 300 million shares done.



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CIMB Research maintains Outperform AirAsia, target price RM5

KUALA LUMPUR (April 27): CIMB Research has maintained its Outperform rating on AIRASIA BHD [] at RM3.38 with a target price of RM5 and said the low cost carrier’s 1Q12 operating statistics indicated an exceptionally strong Thai, consistently good Malaysian but unfortunately, weaker Indonesian performance.

In a note Friday, CIMB Research said the figures suggested that AirAsia as a whole should continue to do well in 2012 relative to its airline peers.

“We maintain our Outperform rating and target price based on 9x P/E.

“We believe that Thai AirAsia’s strong operating performance will contribute to the success of its impending listing and could help catalyse AirAsia’s share price,” it said.



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NCB at 15-year high on dividends

KUALA LUMPUR (April 27) : NCB HOLDINGS BHD [] rose as much as 14% to its highest in almost 15 years on the port operator’s dividends.

The top gainer across the exchange added 53 sen to RM4.43, the highest since June 1997, before being transacted lower at RM4.40 at 2.43pm with some 405,000 shares traded.

NCB told the exchange on Thursday it plans to reward shareholders with a single-tier special interim dividend of 56 sen a share for financial year ending December 31, 2012. The ex and entitlement dates fall on May 16 and 18 respectively, NCB said.



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MPI up 1% on dividends, OSK cuts earnings forecast and TP

KUALA LUMPUR (April 27) : MALAYSIAN PACIFIC INDUSTRIES [] Bhd (MPI) rose as much as 1% as investors bought the stock to capitalise on its dividends.

MPI shares added three sen to RM3 before trading lower at RM2.99 at lunch break with about 52,000 shares changing hands. The stock had risen despite a downward revision to the company’s earnings forecast and share price.

In a note, OSK Research Sdn Bhd said it has revised downwards its earnings forecast for MPI by RM30.2 million and RM1.2 million for financial years ending June 30, 2012 (FY12) and 2013 respectively. This takes into account MPI’s latest quarterly financials.

The earnings forecast revision has prompted OSK to lower its target price for MPI shares by 1.6% or six sen from RM3.70 to RM3.64 while maintaining its “trading buy” call for the stock.

MPI posted a net loss of RM7.43 million in the third quarter ended March 31, 2012 against a net profit of RM5.05 million a year earlier as revenue fell18% to RM275.76 million from RM334.82 million. The company said revenue fell as it registered lower sales in major markets including European and Asian countries apart from the US.

Cumulative nine-month net loss came to RM33.26 million against a net profit of RM56.18 million previously while revenue fell 19% to RM870.6 million from RM1.07 billion.MPI said it plans to reward shareholders with a second interim tax-exempt dividend of five sen a share for FY12.



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KLCI in red till noon, focus on general election concerns

KUALA LUMPUR (April 27) : The FBM KLCI stayed in the red till lunch break on Friday as the local market takes the cue from domestic concerns ahead of the coming general election. Crucial highlights include the much-anticipated Bersih 3.0 rally on Saturday.

The less-optimistic sentiment across the local bourse was despite a stronger overnight close across US markets as global investors responded positively to improving US real estate and corporate earnings updates.

At 12.30pm, the FBM KLCI fell 8.01 points to 1,571.68.Across the exchange, some 759 million shares worth RM543 million were traded, leading to 216 gainers versus 356 decliners.

Top gainers NCB HOLDINGS BHD [] was up 46 sen to RM4.36 while COUNTRY VIEW BHD [] added 19 sen to 85 sen.

Among decliners, Sam Engineering & Equipment Bhd fell 37 sen to RM3 while United PLANTATION []s Bhd was down 24 sen to RM25.70.

Most active was Ariantec Global Bhd which gained 1.5 sen to 25 sen with some 267 million shares done.

Across Asia, Japan’s Nikkei 225 rose 0.12% to 9,573.64, Australia’s S&P/ASX 200 fell 0.05% to 4,373.2, while South Korea’s Kospi was up 0.48% to 1,973.55.



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Maybank among top gainers, trades ex-dividend

KUALA LUMPUR (April 27) : MALAYAN BANKING BHD [] (Maybank) rose as much as 1% as investors chased the stock to capitalise on its dividends. The stock trades ex-dividend on Friday and the final lodgement date falls on this Wednesday.

Shares of Maybank added nine sen to RM8.61 before trading lower at RM8.60 at 10.52am with some 1.5 million shares changing hands.

Maybank plans to reward shareholders with a final cash dividend of 36 sen a share less 25% tax for the six-months ended December 31, 2011. Note that Maybank had changed its financial year end from June 30 to December 31 in July last year.



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Bumi Armada down 5% on stake sale

KUALA LUMPUR (April 27) : Shares of Bumi Armada Bhd fell as much as 5% on updates that tycoon T. Ananda Krishnan is disposing of US$825 million (RM2.52 billion) worth of shares in the oil and gas support services provider.

The stock declined 23 sen to RM3.99 before trading higher at RM4 at 10.28am with some three million shares done.



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Malaysian stocks weighed down by pre-election sentiment

KUALA LUMPUR (April 27) : Malaysian stocks traded in negative territory on Friday morning as domestic pre-election sentiment gains an upper hand in dictating the direction of the FBM KLCI.

The local market may take the cue from domestic concerns ahead of the coming general election as investors assess the impact of the much-anticipated Bersih 3.0 rally on Saturday. Analysts said while US equities registered a stronger close in overnight trade, Asian stock markets could trade in an opposite direction on Friday.

“This is because sentiment will likely be affected by the negative vibes arising from S&P’s downgrade of Spain’s sovereign credit rating yesterday.

“Reflecting investors’ adverse reaction, the DJIA June futures contract tumbled this morning to hover at a 91-point discount to the spot rate,” HwangDBS Vickers Research Sdn Bhd wrote in a note.

At 9.59am, the FBM KLCI fell 9.28 points to 1,570.41. Across the exchange, some 455 million shares worth RM195 million were traded, leading to 163 gainers versus 208 decliners.

Top gainers NCB HOLDINGS BHD [] was up 45 sen to RM4.35 while PARKSON HOLDINGS BHD [] gained seven sen to RM5.29.

Among decliners, BRITISH AMERICAN TOBACCO (M) [] Bhd lost 76 sen to RM54.74, while Bumi Armada Bhd fell 18 sen to RM4.04.

Among actively-traded stocks, Ariantec Global Bhd gained two sen to RM25.5 sen with some 222 million shares done.

Across Asia, Japan’s Nikkei 225 rose 0.15% to 9,575.82, Australia’s S&P/ASX 200 climbed 0.08% to 4,378.8, while South Korea’s Kospi was up 0.78% to 1,979.43.



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CIMB Research maintains Outperform on Daibochi, target price RM3.25

KUALA LUMPUR (April 27): CIMB Research has maintained its Outperform rating on Daibochi Plastic & Packaging Industry Bhd with a target price of RM3.25 and said Daibochi’s 1Q12 results were within expectations.

The research house said on Friday that it expects Daibochi to secure maiden major orders from an Australian F&B player sometime this year.

“This could be the much-needed catalyst for the stock. Meanwhile, investors can get 6% return from dividends.

“Even though annualised 1Q12 net profit was 82% of our FY12 forecast, we consider this line with our and market expectations as we expect stronger earnings in the remaining quarters. We maintain our Outperform call and target price basis of 9x CY13 P/E, a 30% discount to our target market P/E,” it said.



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Petra Energy shares up on Perdana Petroleum soliciting bids for stake

KUALA LUMPUR (April 27): PETRA ENERGY BHD [] shares advanced on Friday after Perdana Petroleum Bhd, formerly known as PETRA PERDANA BHD [] said it was soliciting bids for its entire 26.9% stake in Petra Energy.

At 9.38am, Petra Energy rose four sen to RM1.18 with 155,100 shares done.

In a statement to the exchange on Thursday, Perdana Petroluem said it had appointed CIMB Investment Bank Bhd to undertake a restricted tender for its 57.7 million Petra Energy shares.



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Maybank IB Research maintains Buy on MAHB, target price RM7.10

KUALA LUMPUR (April 27): Maybank Investment Bank Bhd Research has maintained its Buy rating on Malaysia Airports Holdings Bhd with a target price of RM7.10 and said the company’s 1Q12 core net profit of MYR116.6m (+3.4% YoY, +26.7% QoQ), which was within its expectations, underpinned MAHB's resilience in the face of adversity.

“Despite Malaysian Airlines cutting capacity by over 10% in the quarter, MAHB managed to deliver 6.5% traffic growth YoY which is within its guidance for 6%-7% traffic growth in 2012,” the research house said in a note Friday.

‘We look forward to a promising 2012 as air travel momentum remains healthy in the region and MAHB's high utilization rates will boost profit and profit margin expansion. Maintain Buy, with an unchanged target price of RM7.10/share DCF-based,” it said.



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KLCI edges up in early trade on positive US data, but gains limited

KUALA LUMPUR (April 27): The FBM KLCI edged up in early trade on Friday in line with the overnight gains at Wall Street and higher opening at regional markets.

However gains were limited as the positive US data was overshadowed by after Standard & Poor's downgrade of Spain's rating, as well as investors staying on the sidelines ahead of this weekend’s planned Bersih 3.0 rally.

At 9.00am, the FBM KLCI rose 0.49 of point to 1,580.18, lifted by gains at select blue chips.

Gainers led losers by 26 to 9, while 25 counters traded unchanged. Volume was 4.73 million shares valued at RM7.7 million.

Asian shares inched up on Friday, tracking U.S. stocks which jumped overnight on strong U.S. housing data and earnings, but concerns over the health of European banks weighed on investor risk appetite after Standard & Poor's downgraded Spain's rating, according to Reuters.

Standard & Poor's on Thursday cut its credit rating on Spain to BBB-plus from A , a two-notch downgrade, citing its expectation the government's budget deficit will deteriorate even more than previously thought due to economic contraction.

On Bursa Malaysia, the gainers in early trade included NCB, Aeon, KP Healthcare, Petronas Chemicals, UMW, Genting, Maxis,Sime Darby, Tenaga and RHB Capital.



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Stocks to Watch MAHB, TA Global, Maybank, Aliran Ihsan, MPI

KUALA LUMPUR (April 26): The Malaysian stock market may take the cue from domestic concerns ahead of the coming general election, as investors assess the impact of the much-anticipated Bersih 3.0 rally on Saturday.

Analysts said these local factors could have the upper hand in dictating the direction of the FBM KLCI, despite more optimistic sentiment from the global backdrop.

Trading on the local bourse was volatile on Thursday, as the benchmark erased gains to sink into the red before closing up with a 0.34-point gain to 1,579.69. That could be indicative of trading dynamics on Friday.

Stocks to watch on Friday are Malaysia Airports Holdings Bhd (MAHB), TA Global Bhd, MALAYAN BANKING BHD [] (Maybank), ALIRAN IHSAN RESOURCES BHD [], and MALAYSIAN PACIFIC INDUSTRIES [] Bhd (MPI).

Airport operator MAHB said first quarter (1Q) net profit rose 7% from a year earlier, as revenue growth mitigated the impact of higher operating expenses. MAHB said net profit came to RM102.73 million in the quarter ended March 31, 2012, against RM96.09 million previously. Revenue grew 6% to RM657.71 million from RM617.77 million.

TA Global, a property developer and investor, is acquiring the Movenpick Karon Beach Resort in Thailand from Saudi Arabia-based Kingdom Holding Co for US$90.21 million (RM276.94 million), a move which will see the acquirer making its initial venture into Thailand's hotel industry. TA Global said it is purchasing the entire stake in two wholly-owned units of Kingdom Holding — namely, Kingdom 5-KR-194 Ltd and Kingdom 5-KR-195 Ltd, under which the hospitality assets are held.

Maybank and water-treatment specialist Aliran Ihsan shares will trade ex-dividend on Friday. Maybank plans to reward shareholders with a final cash dividend of 36 sen a share, less 25% tax for the six-months ended Dec 31, 2011. Note that Maybank had changed its financial year end from June 30 to Dec 31 in July last year.

Aliran Ihsan plans to pay a single-tier first interim dividend of 8.5 sen a share for financial year ending Dec 31, 2012.

Semiconductor manufacturer MPI said it posted a net loss of RM7.43 million in the third quarter (3Q) ended March 31, 2012 against a net profit of RM5.05 million a year earlier, as revenue fell 18% to RM275.76 million from RM334.82 million. The company said revenue fell as the group registered lower sales in major markets — including European and Asian countries — apart from the US. MPI said it plans to reward shareholders with a second interim tax-exempt dividend of five sen a share for financial year ending June 30, 2012.



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Perdana Petroleum solicits bids for Petra Energy stake

KUALA LUMPUR (April 26): Perdana Petroleum Bhd, formerly known as PETRA PERDANA BHD [], is soliciting bids for its entire 26.9% stake in PETRA ENERGY BHD [].

In a statement to the exchange on Thursday, the oil-and-gas support services firm said it has appointed CIMB Investment Bank Bhd to undertake a restricted tender for its 57.7 million Petra Energy shares.

"Perdana Petroleum will make the necessary announcements in accordance with the main market listing requirements of Bursa Malaysia Securities Bhd, once the terms for the divestment of the said Petra Energy shares has been agreed and a definitive agreement has been executed," it said.



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MPI posts net loss RM7.43 million in 3Q

KUALA LUMPUR (APRIL 26): MALAYSIAN PACIFIC INDUSTRIES [] Bhd (MPI) posted a net loss of RM7.43 million for the third quarter ended March 31, 2012 compared to net profit RM5.05 million a year earlier, due mainly to drop in revenue.

The company said on Thursday that its revenue for the quarter fell 17.63% to RM275.76 million from RM334.82 million in 2011, attributing the drop to overall weak demand.

Loss per share was 3.83 sen compared to earnings per share of 2.61 sen a year earlier.

The company declared a second interim dividend of five sen per share tax exempt

For the nine months ended March, MPI posted nest loss RM33.26 million compared to net profit RM56.18 million in 2011, while revenue fell to RM870.60 million from RM1.07 billion.

Reviewing its performance, MPI said revenue by segments saw the European sector fell the most by 31% followed by Asia, down 13% and the US by 9%.

On its outlook, MPI said the business prospects would remain challenging across all segments for the financial year ending June 31, 2012.

“However, despite the uncertain macor-economic outlook, there are positive signs that demand is inceasing and that the industry is starting to recover,” it said.



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KLCI claws back to close higher

KUALA LUMPUR (APRIL 26): The FBM KLCI clawed back to reverse its losses and close higher on Thursday in line with the advance at most key regional markets, on the back of the firmer overnight close at Wall Street and encouraging statements on policy from the US Federal Reserve.

The FBM KLCI rose 0.34 of a point to 1,579.69 at 5pm, clawing back from its intra-day low of 1,577.71.

Market breadth remained weak with 453 losers, 253 gainers and 321 counters trading unchanged. Volume was 1.45 billion shares valued at RM1.46 billion.

Asian shares rose on Thursday, retaining positive momentum as the Federal Reserve reassured markets it would keep its very accommodative stance to support growth, while optimism grew over strong quarterly corporate earnings.

Investor confidence was also boosted by a rally in Apple Inc shares as it reported quarterly profits nearly doubling on the back of soaring iPhone sales in China, lifting tech-heavy Asian markets such as Taiwan and South Korea earlier in the day.

There was scepticism Asian markets would climb as much as their global counterparts did overnight, however, as concerns remain over European banks, with Spain's Santander reporting its first-quarter results later in the session, it said.

At the regional markets, the Hong Kong’s hang Seng Index gained 0.79% to 20,809.71, Japan’s Nikkei 225 edged up 0.01% to 9,561.83, south Korea’s Kospi rose 0.10% to 1,964.04 and Singapore’s Straits Times Index

Meanwhile, Taiwan’s taiex fell 0.55% to 7,521.35 and the Shanghai Composite Index shed 0.09% to 2,40470.

On Bursa Malaysia, United PLANTATION []s led the gainers and was up 44 sen to RM25.94, Panasonic added 40 sen to RM23, BAT up 38 sen to RM55.50, Dutch Lady added 20 sen to RM33.90. Milux 15 sen to RM1.35, KrisAssets and Tradewinds Plantations up 14 sen each to RM6.90 and RM5.70, while Takaful and KPJ Healthcare rose 13 sen each to RM3.80 and RM5.56.

Utopia was the most actively traded counter with 194.51 million shares done. The stock fell half a sen to 9 sen.

Other actives included Ariantec, Metronic, Focus, Naim Indah Corp, SCL, Astral Supreme and ManagePay.

Decliners included Country View, Jaya Tiasa, HLFG, SapuraCrest, Petronas Dagangan, Genting, Kencana, SEGi and Sunway.



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Globetronics up 12% at 20-month high

KUALA LUMPUR (April 26) : GLOBETRONICS TECHNOLOGY [] BHD [] rose as much as 12% to a 20- month high, possibly, due to investors chasing the stock to capitalise on the electronics component manufacturer’s proposed final dividends.

Shares of Globetronics added 14 sen to RM1.34, its highest since August 2010, before trading lower at RM1.32 at 4.52pm with some 6.2 million shares done. The stock was among the top gainers across the exchange.

The company plans to pay a single-tier final dividend of 4% which translates into two sen a share for financial year ended December 31, 2011. The ex and entitlement dates fall on June 27, and 29 respectively.

The company’s directors had acquired the stock in recent days. Filings to the exchange show that Ng Kweng Chong and Ng Kok Khuan had bought a collective 240,000 shares in Globetronics on Monday and Tuesday from the open market. The purchase, accounting for less than 1% of the firm’s issued base, was done via their private entity Glencare Sdn Bhd.

Globetronics said on Tuesday first quarter net profit fell 4% from a year earlier as it registered lower revenue and higher operating cost. It said net profit came to RM6.2 million in the quarter to March 31, 2012 against RM6.43 million previously. Revenue fell 15% to RM56.79 million from RM67.09 million.



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Karambunai active, down on lawsuit report

KUALA LUMPUR (April 26): Shares of KARAMBUNAI CORP BHD [] were actively traded in the afternoon session on Thursday following a report that a group of people were preparing to take legal action the company, claiming it is nearly one year in arrears on "lease back" rental payments due to them.

At 4.37pm, Karambunai was down half a sen to 16.5 sen with 6.08 million shares done.

The South China Morning Post (SCMP) reported on Wednesday that the action was being proposed by about 100 owners of villas in the Nexus Residence development in Kota Kinabalu.

The group of owners, 49 of whom are from Hong Kong, plan to file their complaint against Karambunai Corp Bhd with the Malaysian Board of Arbitration, it said.

SCMP said that Matt Burden, one of the owners seeking back-payment, bought a 1,500 sq ft villa in the development off plan in 2007 for HK$4 million (RM1.58 million). The deal included a "lease back" component guaranteeing buyers an annual return of 7% of their purchase price for five years.

The daily said Karambunai came to Hong Kong in 2006 to market the first phase of the beachfront luxury residential project at the Mandarin Oriental Hotel.

The project was eventually completed in 2009 and all 243 villas have been sold, it said.

The buyers who opted for the "lease back" arrangement agreed to allow the project's management firm, Nexus Bay Resort Karambunai (NBRK), to rent out their villas to tourists, mostly from Europe, Burden said, according to SCMP.

Under the agreement, owners were also entitled to occupy their PROPERTIES [] for 20 days per year at no charge, it said.



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Carlsberg to raise beer prices from May 1

SUBANG JAYA (April): CARLSBERG BREWERY MALAYSIA BHD [] will introduce a 3% general increase in price effective May 1, 2012.

“The adjustment is not a dramatic one and is in line with inflation levels,” said its managing director, Soren Ravn after the group’s AGM on Thursday.

Ravn said the recent introduction of premium labels Asahi and Kronenbourg currently hold 16% to 17% market share in the premium segment while good growth is expected to continue.

Carlsberg’s premium brands currently contribute just under 10% to the group’s total revenue of RM1.5 billion for FY11. A 100% profit distribution has also been declared, at a total gross dividend of 72.5sen, he said.



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MAHB 1Q profit up 7% year-on-year

KUALA LUMPUR (April 26) : Malaysia Airports Holdings Bhd’s (MAHB) first quarter net profit rose 7% from a year earlier as revenue growth mitigated the impact of higher operating expenses.

In a statement to the exchange on Thursday, MAHB said net profit came to RM102.73 million in the quarter ended March 31, 2012 against RM96.09 million previously. Revenue grew 6% to RM657.71 million from RM617.77 million.

Revenue growth was, mainly, helped by airport operations income which includes revenue from airport CONSTRUCTION [], aviation-service charges, and retail operations, according to MAHB. The company said passenger movements across its facilities during the quarter rose 6.5% from a year earlier.

“The group’s overall passenger traffic growth of 6.5% achieved in the first quarter 2012 was in tandem with the positive growth trend of the Asia Pacific region and globally.

“There is some concern on route cuts announced by our domestic airlines but the gap seemed to have been continuously replaced by foreign carriers,” MAHB said. Based on historical trends and the performance in the first quarter, the firm said it expects to achieve its targeted passenger- traffic growth of 6% to 7% for 2012.



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Nestle to maintain prices for key products over next few months, says MD

KUALA LUMPUR (April 26): NESTLE (M) BHD [] will not increase prices for its key products, Milo and Maggi, in the next few months, said its managing director Peter R. Vogt.

Close to the second half of last year, the company increased the price of its Milo products by about 4%-6%.

Speaking after the company's AGM on Thursday, Vogt said that raw material prices such as cocoa beans and cocoa powder are relatively high at the moment and will probably stay high.

He said Nestle is taking cost control measures to offset the impact from the high commodity prices



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DKSH expands collaboration with Germany-based Henkel

KUALA LUMPUR (April 26); DKSH Holdings Bhd is expanding its collaboration with Germany-based Henkel to provide sales, distribution, and logistics services to the latter in the South East Asia market.

Henkel is known for its cosmetics brands such as Schwarzkopf, Fa, Taft, and Igora as well as consumer and industrial businesses with well-known brands such as Persil, Schwarzkopf, and Loctite

In a statement Thursday, DKSH said that for many years, it had provided Henkel with market expansion solutions in Thailand, Hong Kong, and Vietnam.

“Building on the successful collaboration between both companies, DKSH and Henkel initiated discussions and have decided to extend the existing partnership to Malaysia,” it said.

DKSH said it would support Henkel for the launch of Henkel’s wellknown brands of Schwarzkopf Extra Care, Freshlight, Palette, and got2b across all sales channels and territories in Malaysia.

DKSH global head for business unit consumer goods Somboon Prasitjutrakul said the company’s partnership with Henkel was an excellent example of how we leverage our extensive network in Asia to provide our clients with solutions across multiple countries.

“In addition, we are pleased to leverage our comprehensive portfolio of integrated services along the entire value chain to support Henkel to further grow its business in Asia,” said Somboon.

Meanwhile, DKSH executive director for consumer goods Lian Teng Hai said the extension of the partnership to Malaysia would enrich the range of products for DKSH’s customers, and at the same time the consumers will benefit from improved access to these products.

“We are looking to a long and successful cooperation with Henkel in Malaysia as well,” said Lian.



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TA Global buys Movenpick hotel assets in Thailand for RM227 million

KUALA LUMPUR (April 26) : TA Global Bhd is acquiring the Movenpick Karon Beach Resort in Thailand from Saudi Arabia-based Kingdom Holding Co for US$90.21 million (RM276.94 million), a move which will see the acquirer making an initial venture in Thailand’s hotel industry.

In a statement to Bursa Malaysia on Thursday, TA Global, a property developer and investor, said it will purchase the entire stake in two wholly-owned units of Kingdom Holding, namely, Kingdom 5-KR-194 Ltd and Kingdom 5-KR-195 Ltd, under which, the hospitality assets are parked under.

“The proposed acquisition will further enhance TA Global’s hospitality operations in major cities around the world and expand its existing portfolio of hospitality PROPERTIES [] into Thailand.

“In addition to that, TA Global believes that the proposed acquisition will provide steady revenue stream and enhance the revenue contribution from its hospitality division to the group,” said the acquirer which will finance the exercise with internal funds and borrowings.



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Ekuinas posted RM165.7m in portfolio gains in 2011

KUALA LUMPUR (April 26): National private equity firm, Ekuiti Nasional Bhd (Ekuinas) posted RM165.7 million in total portfolio gains with an annualised net internal rate of return (IRR) of 20.6%, surpassing its minimum target of 12% and aspirational target of 20%, in its second year of operations.

"We are pleased to report that RM96.6 million or 58.3% of the total portfolio gain was derived from realised dividend income received from the portfolio companies. Furthermore, our portfolio companies now collectively generated more than RM1.0 billion revenue and RM231.9 million in earnings before interest, tax, depreciation and ammortisation (ebitda)," said CEO Datuk Abdul Rahman Ahmad when announcing its 2011 results on Thursday.

Rahman added that subject to the availability of funds, Ekuinas has been allocated some RM600 million with which to invest this year.

For 2012, it had already announced a RM250 million investment in Tanjung Kapal Sdn Bhd, an offshore vessel service provider, to facilitate the de-merger exercise of TANJUNG OFFSHORE BHD [], a listed oil and gas company which it holds a 24% stake.

Its Malaysia Growth Opportunities Fund 1, managed by Navis Capital Partners under Ekuinas' Outsource Programme, had also recently undertaken two minority co-investments in MCAT Box Office Sdn Bhd (MBO) and SEG INTERNATIONAL BHD [] for RM15 million and RM57.5 million respectively.

To date, since its establishment in 2009, Ekuinas has 12 investments under its portfolio with a total committed investment of nearly RM1.2 billion.



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Local uncertainties keep investors at bay

KUALA LUMPUR (APRIL 26): The FBM KLCI was unable to sustain its earlier gains and slipped at the mid-day break on Thursday as while most regional markets improved on US data and policy, local investors remained edgy ahead of this weekend’s planned Bersih 3.0 protests.

The FBM KLCI shed 0.69 of a point to 1,578.66 at 12.30pm, weighed by losses including at BAT, PPB, Petronas Dagangan and Hong Leong Bank.

Losers led gainers by 375 to 198, while 312 counters traded unchanged. Volume was 839.42 million shares valued at RM563.21 million.

Te ringgit strengthened 0.13% to 3.0560 versus the greenback, crude palm oil futures for the third month delivery fell RM32 per tonne to RM3,479, crude oil slipped six cents per barrel to US$104.06 while gold rose US$3.48 an ounce to US$1,647.10.

Meanwhile, Asian shares mostly rose on Thursday, retaining positive momentum as the Federal Reserve reassured markets that it will keep its very accommodative stance to support growth, while optimism grew over strong quarterly corporate earnings, according to Reuters.

Along with the Fed's assurance that its very easy monetary policy will be kept in place as long as needed, U.S. stocks rallied on Wednesday after Apple Inc reported quarterly profits nearly doubled, it said.

At the regional markets, Hong kong’s Hang Seng Index gained 0.51% to 20,752.20 and South Korea’s Kospi was up 0.19% to 1,965.61.

However, Japan’s Nikkei 225 shed 0.06% to 9,554.94, the Shanghai Composite Index lost 0.21% to 2,401.83, Taiwan’s Taiex fell 0.50% to 7,525.33 and Singapore’s Straits Times Index was down 0.17% to 2,974.74.

On Bursa Malaysia, BAT fell 82 sen to RM54.30, PPB down 14 sen to RM16.66, Petronas Dagangan and HLFG down 12 sen each to RM19.08 and RM12.08, Jaya Tiasa and Petronas Gas fell 10 sen each to RM9.48 and RM16.48, Warisan nine sen to RM2.25, while Hong Leong bank and SEGi fell eight sen each to RM12.22 and RM1.73.

Utopia was the most actively traded counter in the morning session with 134.96 million shares done. The stock was unchanged at 9.5 sen.

Other actives included Ariantec, Focus, Metronic, CSL, RGB, Naim Indah Corp and Winsun.

Gainers included Aeon, Panasonic, Aeon Credit, KrisAssets, Takaful, Tradewinds, Globetronics and Dutch Lady.



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Country View up 6% on higher profits

KUALA LUMPUR (April 26) : COUNTRY VIEW BHD [] rose as much as 6% following updates that the property developer’s first quarter net profit rose almost eight-fold from a year earlier on higher property sales.

The stock climbed five sen to 95 sen from its last closing price of 90 sen last Friday.

In a statement to the exchange on Wednesday, Country View said net profit came to RM5.95 million in the quarter to February 29, 2012 versus RM761,000 previously as revenue almost tripled to RM37.87 million from RM14.2 million.



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SEG down 5% on takeover offer

KUALA LUMPUR (April 26) : SEG INTERNATIONAL BHD [] fell as much as 5% on updates that its major shareholders made a takeover offer for the remaining shares in the higher-education provider.

Shares of SEG declined nine sen to RM1.72 before trading higher at RM1.74 at 11.45am with some 900,000 shares done.

Private equity firm Navis Capital has made a takeover offer for the remaining shares it does not own in SEG. This follows a shareholders’ agreement between Navis and SEG managing director Datuk Seri Clement Hii Chii Kok, who is also the single-largest shareholder in the education entity.

This has, in turn, triggered a mandatory general offer obligation for the remaining stake in SEG. Navis which already owns 27.84% in SEG is offering RM 1.714 for each share and RM1.214 for each warrant in the higher education firm.



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KLCI gains on US policy, corporate updates

KUALA LUMPUR (April 26) : Malaysian shares erased gains, albeit, still in positive territory in tandem with gains across Asian bourses on Thursday morning. This follows a stronger overnight close across US equities.

Global markets found support from US lawmakers’ commitment to maintain accommodative policies to sustain growth, besides improving corporate earnings from the world’s largest economy.

At 10am, the FBM KLCI added 1.31 points to 1,580.66. Across the exchange, some 343 million shares worth RM160 million were traded, leading to 167 gainers versus 182 decliners.

Top gainers Panasonic Manufacturing Malaysia Bhd was up 40 sen to RM23 while DUTCH LADY MILK INDUSTRIES BHD [] gained 24 sen to RM33.94.

Among decliners, KUALA LUMPUR KEPONG BHD [] fell 14 sen to RM23.68 while SEG INTERNATIONAL BHD [] was down eight sen to RM1.73.

Among actively-traded stocks, Ariantec Global Bhd fell 1.5 sen to RM24.5 sen with some 21 million shares done.



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CIMB Research maintains Neutral on rubber glove sector

KUALA LUMPUR (April 126): CIMB Research has maintained its Neutral rating on the rubber glove sector and said the expected implementation of a minimum wage policy by end-Apr would reduce its core EPS forecasts by 2.0-8.9% assuming a floor monthly wage of RM1,000.

In a note Thursday, CIMB Research said this was an opportunity for efficient glovemakers to gain share when smaller competitors fail.

“Our earnings estimates and target prices are unchanged as details are unknown. Key variables include the i) wage level, ii) treatment of foreign workers, iii) classification of ex-gratia payments and iv) timeline.

“We remain Neutral on the sector, with Hartalega being our top pick and Top Glove our top sell,” it said.



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Privasia edges up on Malacca fibre optic contract

KUALA LUMPUR (April 25): Privasia TECHNOLOGY [] Bhd shares edged up on Thursday after its subsidiary Privanet Sdn Bhd (Privanet) secured a contract worth RM12.8 million from the Malacca state government to install and maintain fibre optic network in that state.

At 9.15am, Privasia added one sen to 10.5 sen with 370,000 shares traded.

In a statement Wednesday, the company said Privanet had received a letter of tender acceptance from the Malacca state government to install a complete fibre optic network in the state by the third quarter of 2012.

Privasia said the project was awarded by Melaka ICT Holdings Sdn Bhd (MICTH), a state-owned enterprise that provides ICT services, solutions and products to assist the state government in empowering Malacca as a key centre of excellence in the ICT sector.

The project is expected to be completed by September 2012, it said.



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DiGi advances on interim dividend, capital distribution plans

KUALA LUMPUR (April 26): Shares of DIGI.COM BHD [] advanced on Thursday after the company declared its first interim dividend for the year as well as a capital distribution exercise.

At 9.07m, DiGi rose three sen to RM3.99 with 116,400 shares traded.

In a statement Wednesday, DiGi said revenue first quarter ended March 3, 2012 grew 9.7% to 1.57 billion from RM1.43 billion in 2011, due mainly to data revenue which accounted for close to 31% of total revenue.

Earnings per share was 4.12 sen compared to 4.26 sen a year earlier.

DiGi will pay a first interim tax exempt dividend of 5.9 sen per ordinary share for the financial year ended Dec 31, 2012 on June 8 June this year.

In a separate announcement, DiGi said its wholly owned unit DiGi Telecommunications Sdn Bhd (DiGiTel) will undertake a capital distribution of about RM495 million to DiGi on the basis of cash repayment of 99 sen for every one existing share of RM1 each in DiGiTel.

“Upon receipt of the cash proceeds from DiGiTel, DiGi expects to distribute approximately RM495 million (less expenses) representing 64 sen per share to its shareholders,” it said.

MIDF Research has maintained its Buy rating on Digi with a target price of RM4.35 and said the company’s 1Q12 earnings were within expectations.

“Digi’s 1Q12 earnings came in within ours and consensus’ expectations at 24.1% and 24.0% of respective full year estimates,” it said in a note Thursday.

The research house said DiGi’s data revenue would continue to be robust in FY12, adding that the data demand would continue apace and Digi will be a main beneficiary.

It said DiGi expects data revenue will continue to be robust especially as it aims to acquire higher small and medium screen subscribers, which gives better margin.

“It maintains its guidance of a mid to single high digit revenue growth for FY12, and about 46% EBITDA margins,” it said.

“We maintain our FY12 and FY13 earnings estimate for Digi given its performance was within our expectation. We continue to like Digi for its continuing commitment to reward its shareholders. We opine that the growth in data will continue to be robust especially with the adoption of LTE.

“We maintain our BUY recommendation as the expected total return is only marginally below our 15% threshold. Our TP is based on the Discounted Dividend Model, with an estimated long-term dividend payout ratio of 100% and a WACC of 9.04%,” it said.



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KLCI snaps losing streak in early trade

KUALA LUMPUR (April 26): The FBM KLCI snapped its losing streak in early trade on Thursday and advanced in line with the overnight gains at Wall Street and that of its regional peers.

At 9.01am, the FBM KLCI rose 2.55 points to 1,581.90, lifted by gains including at Gamuda, RHB Capital and Tenaga.

Gainers led losers by 68 to 30, while 72 counters traded unchanged. Volume was 31.2 million shares valued at RM14.16 million.

Asian shares gained on Thursday, retaining positive momentum as the Federal Reserve reassured markets that it will keep its very accommodative stance to support growth, and optimism grew over strong corporate earnings after Apple Inc's robust results, according to Reuters.

Fed Chairman Ben Bernanke on Wednesday said US monetary policy was "more or less in the right place" even though the central bank would not hesitate to launch another round of bond purchases if the economy were to weaken, it said.

Among the gainers on Bursa Malaysia in early trade were Berjaya Corp warrants, Top Glove, Tradewinds, Gamuda, RHB Capital, Tenaga, Maxis and DiGi.



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Maybank IB Research maintains Buy on Sunway REIT, target price RM1.40

KUALA LUMPUR (April 26): Maybank Investment Bank Bhd Research has maintained Buy on Sunway REIT with a target price of RM1.40 and said Sunway REIT’s 9MFY6/12 core net profit of MYR142.5 million accounted for 75-77% of its own and consensus full-year estimates.

Sunway REIT declared 1.9 sen dividend per unit (DPU) for 3Q (YTD: 5.6 sen) was also in line.

“No change in our earnings forecasts and MYR1.40 TP. Potential surprises could come from new asset injections (e.g. colleges) which gear towards providing a stable income stream,” the research house said on Thursday.



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MIDF Research maintains Buy on DiGi, target price RM4.35

MIDF Research has maintained its Buy rating on Digi with a target price of RM4.35 and said the company’s 1Q12 earnings were within expectations.

“Digi’s 1Q12 earnings came in within ours and consensus’ expectations at 24.1% and 24.0% of respective full year estimates,” it said in a note Thursday.

The research house said DiGi’s data revenue would continue to be robust in FY12, adding that the data demand would continue apace and Digi will be a main beneficiary.

It said DiGi expects data revenue will continue to be robust especially as it aims to acquire higher small and medium screen subscribers, which gives better margin.

“It maintains its guidance of a mid to single high digit revenue growth for FY12, and about 46% EBITDA margins,” it said.

“We maintain our FY12 and FY13 earnings estimate for Digi given its performance was within our expectation. We continue to like Digi for its continuing commitment to reward its shareholders. We opine that the growth in data will continue to be robust especially with the adoption of LTE.

“We maintain our BUY recommendation as the expected total return is only marginally below our 15% threshold. Our TP is based on the Discounted Dividend Model, with an estimated long-term dividend payout ratio of 100% and a WACC of 9.04%,” it said.



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