CI Holdings reports earnings of RM650.39m for 2Q

KUALA LUMPUR (Feb 16): CI Holdings Bhd posted net profit of RM650.39 million in the second quarter ended Dec 31, 2011 from RM11.17 million a year ago, boosted by the disposal of its Permanis Group to Asahi for RM820.0 million cash.

It said on Thursday that its revenue declined slightly to RM11.35 million from RM11.96 million a year ago due to a slowdown in the CONSTRUCTION [] sector.

“The improvement in profit before tax can be attributed largely to income received from the investment of the proceeds of disposal and gain on the disposal group of RM688.43 million,” it said.

CI Holdings said its earnings per share were 458.02 sen compared with 7.87 sen. It declared a dividend of RM4.60 per share totaling RM653.20 million.

For the first half, its earnings were at RM657.74 million compared with RM22.84 million in the previous corresponding period while revenue slipped 10.9% to RM20.43 million from RM22.93 million.



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Tasek Corp earnings down 57% in 4Q on higher production costs

KUALA LUMPUR (Feb 16): TASEK CORPORATION BHD []'s earnings fell 57.1% to RM33.44 million in the fourth quarter ended Dec 31, 2011 from RM78.00 million a year ago, as a result of higher production costs.

However, despite the lower earnings, it declared dividends totaling 86%. They comprised of a special ordinary dividend of 50% less income tax of 25%; preference dividend of 6% single tier and final ordinary dividend of 30% single tier.

It said on Thursday, revenue rose 25.11% to RM167.24 million from RM133.67 million. Earnings per share were 26.98 sen compared to 48.88 sen.

Tasek Corp said the higher revenue was due to higher volume in local cement and ready-mix concrete sales which increased 22% and 21% respectively.

Higher average selling price in both segments also contributed to the higher revenue. However, the better margin from a higher average selling price was offset by higher production costs as a result of increasing coal and electricity costs.

For the 12 months ended Dec 31, 2011, net profit declined 33.10% to RM103.16 million from RM154.19 million a year ago. Revenue rose 3.5% to RM566.19 million from RM546.76 million.



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Tradewinds Plantations unit selling 45% of RI International

KUALA LUMPUR (Feb 16): Tradewinds PLANTATION []s Bhd’s indirect unit Mardec International Sdn. Bhd is selling its 45% stake in R1 International Pte Ltd for US$25.86 million.

It said on Thursday, that Mardec International and other shareholders of R1 has entered into a conditional share sale agreement with Hainan State Farms Investment Ltd and Hainan Rubber Group (Singapore) Pte. Ltd to dispose of their entire 90% stake for US$51.72 million cash.

Under the agreement, Mardec International would dispose of its 45% stake or 3.15 million shares in R1 for US$25.86 million.

“R1 is principally engaged in the trading of natural rubber, latex concentrate and synthetic rubber. R1 is a global rubber trading company specialising in rubber commodity which operates in Malaysia, Thailand, Japan, China and India,” said Tradewinds Plantations.

As at Dec 31, 2011, the R1 group’s unaudited net tangible assets (NTA) were US$34.67 million. The disposal price represents the price to book ratio of 1.6575.

“The disposal price is conditional upon R1 group’s audited NTA at Dec 31, 2011 being not less than US$34.67 million and will be adjusted in the event of lower audited NTA by using the same price to book ratio,” it said.



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Hibiscus Petroleum gets SC nod to buy 35% stake in Lime Petroleum

KUALA LUMPUR (Feb 16): Hibiscus Petroleum Bhd has received the Securities Commission’s approval for its qualifying acquisition of a 35% stake in Lime Petroleum Plc for US$55 million.

Hibiscus Petroleum’s Managing Director, Dr Kenneth Pereira, said the company would hold an EG to seek shareholders’ approval as soon as it has received the SC’s clearance to issued the finalised version of the EGM circular.

To recap, in October 2011, the company announced its proposed acquisition of Lime which has majority interests in companies with concession rights in three offshore oil and gas exploration assets located in the UAE and Oman.

“Out of the total consideration, US$50 million will be injected into Lime to primarily fund Lime’s activities whilst the balance of US$5 million is for the purchase of existing shares in Lime,” it said.



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Maxis proposes 10-yr RM2.45 bn Sukuk to refinance loans, capex

KUALA LUMPUR (Feb 16): Maxis Bhd has proposed to undertake a RM2.45 billion unrated Sukuk Musharakah programme with a 10-year maturity.

It said on Thursday that of the proceeds, RM1.45 billion would be used for refinancing of existing loans and RM1.0 billion for the capital expenditure and/or working capital and/or general funding requirements.

Maxis said CIMB Investment Bank Bhd was appointed as the sole principal adviser and sole lead arranger for the proposed Sukuk Musharakah.

CIMB and Maybank Investment Bank Bhd have been appointed as the joint lead managers for the first issuance.



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BAT 4Q earnings dn 1.1% to RM180.6m, FY11 RM719.6m

KUALA LUMPUR (Feb 16): British American Tobacco (Malaysia) Bhd’s earnings slipped 1.1% to RM180.65 million from RM187.72 million a year ago.

It said on Thursday that revenue rose 2.9% to RM987.26 million from RM959.16 million. Its earnings per share were 63.30 sen compared with 64 sen.

BAT declared a fourth interim dividend of 66 sen per share, tax exempt under the single tier exempt system for the financial year ended Dec 31, ember 2011.

For the financial year ended Dec 31, 2011 its earnings fell 1.5% to RM719.61 million from RM731.11 million in FY10, mainly due to a lower effective tax rate in 2010 than 2011. However, its revenue rose 4.1% to RM4.127 billion from RM3.965 billion.

“The group experienced a 1.3% decline in volumes as a result of decreased consumption and the still high levels of illegal cigarettes which stands at 36.1%,” it said.



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Tenaga, Public Bank weigh on KLCI, at lowest since Feb 2

KUALA LUMPUR (Feb 16): Shares of Tenaga Nasional and Public Bank weighed on the FBM KLCI on Thursday as investors became more cautious in line with the key regional markets, all of which were in the red.

Reuters reported that European shares fell and the euro eased to a three-week low on Thursday as a delay in a decision on a crucial bailout for Greece unnerved investors and prompted a halt in the rally for riskier assets like equities that has marked the start of 2012.

At 5pm, the KLCI was down 10.81 points or 0.69% to 1,550.49, the lowest since Feb 2. Turnover was 2.19 billion shares valued at RM1.97 billion.

The broader market showed more signs of weakness as the declining counters beat advancers 668 to 239, the largest margin in recent days, and putting a halt in the recent rally.

All key regional markets were in the red. Japan’s Nikkei 225 fell 0.24% to 9,238.10, Hong Kong’s Hang Seng Index 0.41% to 21,277.20, Shanghai’s Composite Index 0.42% to 2,356.86, Taiwan’s Taiex 1.69% to 7,869.70, South Korea’s Kospi 1.38% to 1,997.45 and Singapore’s Straits Times Index 1.14% to 2,977.20.

Light crude oil fell 69 cents to US$101.11. The ringgit weakened to 3.0592 against the US dollar.

At Bursa Malaysia, Tenaga fell 13 sen to RM6, pushing the KLCI down by 1.66 points.

Public Bank lost 12 sen to RM13.64, nudging the index down by 1.34 points, CIMB five sen to RM7.25 and Maybank three sen to RM8.50.

PLANTATION []s were also among the major decliners as crude palm oil third-month futures slipped RM8 to RM3,193 per tonne. KLK fell 58 sen to RM24.80, Batu Kawan 46 sen to RM19.52, Chin Tek and BLD Plantations 20 sen each to RM8.80 and RM10 while Sime Darby shed seven sen to RM9.54. However, United Plantations added 32 sen to RM22.66.

Among Petronas-related counters, Petronas Dagangan fell 40 sen to RM17.82 with volume seen picking up to 1.50 million shares done while Petronas Gas lost 28 sen to RM16.36.

Naim Indah Corp was the most active with 188.94 million shares done, up 3.5 sen to 55.5 sen. MUI PROPERTIES [] gained 7.5 sen to 22.5 sen and Compugates 0.5 sen to 11.5 sen.

Among the gainers were Dialog-WA, surging 31 sen to 65.5 sen while Cypark advanced 24 sen to RM1.87.



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Market Commentary

The FBM KLCI index lost 10.81 points or 0.69% on Thursday. The Finance Index fell 0.60% to 13771.94 points, the Properties Index dropped 0.78% to 1045.94 points and the Plantation Index down 0.77% to 8794.57 points. The market traded within a range of 9.74 points between an intra-day high of 1559.08 and a low of 1549.34 during the session.

Actively traded stocks include NICORP, MUIPROP, COMPUGT, TMS, WINSUN, TIGER, KBUNAI, HIBISCS-WA, MUIIND and TAKASO. Trading volume decreased to 2185.22 mil shares worth RM1972.18 mil as compared to Wednesday’s 2309.57 mil shares worth RM2145.93 mil.

Leading Movers were GENM (+1 sen to RM3.96), TM (+1 sen to RM4.84), MAXIS (+1 sen to RM5.77) and UMW (+1 sen to RM6.84). Lagging Movers were TENAGA (-13 sen to RM6.00), PBBANK (-12 sen to RM13.64), DIGI (-6 sen to RM4.10), SIME (-7 sen to RM9.54) and KLK (-58 sen to RM24.80). Market breadth was negative with 239 gainers as compared to 668 losers. -- JF Apex Securities Bhd



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Uzma lands RM350m Petronas Carigali contract for well testing

KUALA LUMPUR: UZMA BHD [] has secured a RM350 million contract from Petronas Carigali Sdn Bhd to provide well testing equipment and services for Petroliam Nasional Bhd’s drilling projects.

Uzma said on Thursday its unit Uzma Engineering Sdn Bhd won the contract to provide the services in the west region.

“The contract is for a period of five years effective from April 1, 2012 to March 31, 2017,” it said.



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Compugates submits RM2 bn solar projects in Sabah

KUALA LUMPUR (Feb 16): Shares of COMPUGATES HOLDINGS BHD [], which had seen very active trade recently, said on Thursday it had recently submitted proposals for various solar projects in Sabah valued at more than RM2 billion.

At midday, its share price was up 0.5 sen to 11.5 sen with 32.30 million shares done.

The FBM KLCI fell 11.39 points or 0.73% to 1,549.91. Turnover was 1.16 billion shares valued at RM802.26 million. The broader market was weaker with 590 losers to 164 gainers and 285 stocks unchanged.

Compugates stated the outcome of the proposals was not known yet “and there is no certainty that the company would be awarded those projects”.

It issued the statement after a news report stated the company was expected to clinch several solar-based projects in Sabah worth over RM2 billion, and driving Compugates’ growth for its green renewable energy solutions. The report also stated Compugates was targeting bigger projects in Sabah and would be setting up a plant soon for around RM30 million.

On the plant, Compugates said on Thursday the proposal would hinge on it securing the projects and subject to the conditions in the distributorship and licence and manufacturing agreement entered into with ETI Tech (M) Sdn. Bhd.

“The board of directors of the company has yet to make a decision on the setting up of the plant which is preliminary at this juncture,” it said.



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Cycle & Carriage 4Q earnings up 39.8% to RM6.33m

KUALA LUMPUR (Feb 16): Cycle & Carriage Bintang Bhd (CCB) earnings increased by 39.8% to RM6.33 million in the fourth quarter ended Dec 31, 2011 from RM4.52 million a year ago, underpinned by higher sales of vehicles but it expected 2012 to be a difficult year.

Its chairman Ben Keswick said on Thursday that vehicle sales rose 19% while earnings from Mercedes-Benz trading operations were stable

“While 2012 is expected to be a difficult year given the poor global economic climate and competition in the local market, the Group’s strong underlying business and sound balance sheet leaves it well-placed to face the challenges ahead,” he said.

CCB’s revenue for 4Q2011 rose 26.6% to RM158.96 million from RM125.54 million. Earnings per share were 6.28 sen compared with 4.49 sen. It proposed a final dividend of five sen per share.

For the financial year ended Dec 31, 2011, CCB’s earnings were marginally lower at RM26.62 million compared with RM26.77 million in FY10 as higher sales were offset by lower gross margins and reduced non-recurring income.

CCB said its revenue rose 15% to RM677.96 million from RM589.24 million.



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Tenaga, Sime, banks drag KLCI into the red as Greece woes persist

KUALA LUMPUR (Feb 16): Selling of Tenaga, Sime Darby and banking stocks dragged the FBM KLCI into the red at midday on Thursday, as investors turned cautious over the delay in the bailout for Greece.

At 12.30pm, the FBM KLCI fell 11.39 points or 0.73% to 1,549.91. Turnover was 1.16 billion shares valued at RM802.26 million. The broader market was weaker with 590 losers to 164 gainers and 285 stocks unchanged.

Reuters reported that another delay in cementing a crucial bailout for stricken Greece underscored how far Europe is from resolving a debt crisis that threatens the stability of the financial system.

A three-hour teleconference between euro zone finance ministers failed to resolve all the issues surrounding a second aid package for Athens, putting off any decision on the matter until Monday at the earliest.

Among the regional markets, Japan’s Nikkei 225 fell 1.4% to 9,258.94, Hong Kong’s Hang Seng Index 0.6% to 21,235.90, Shanghai’s Composite Index 0.18% to 2,362.46 while Taiwan’s Taiex lost 1.19% to 7,910.24 and South Korea’s Kospi 1.12% to 2,002.73. Singapore’s Straits Times shed 0.6% to 2,993.56.

The ringgit weakened against the US dollar to the lowest since Jan 31 at 3.0565 to the greenback. US light crude oil fell 28 cents to US$101.52.

Among the index-linked stocks, Tenaga fell 12 sen to RM6.01, dragging the KLCI down 1.54 points, Sime Darby 9.0 sen to RM9.52, pushing the index down by another 1.28 points.

Hong Leong Bank 14 sen to RM11.48, Public Bank fell 10 sen to RM13.66, CIMB six sen to RM7.24 and Maybank two sen to RM8.51.

Crude palm oil for third month futures fell RM19 to RM3,182 per tonne, which also weighed on PLANTATION []s, with KLK down 52 sen to RM24.86.

Petronas Dagangan lost 38 sen to RM17.84, Petronas Gas 34 sen to RM16.30 and MMHE 12 sen to RM5.45.

Naim Indah regained its footing to climb seven sen to 59 sen and it was the most active with 116.77 million shares done.

Dialog-WA jumped for the second day after it was listed, surging 30 sen to 64.5 sen. Cypark added seven sen to RM1.70. The company expects its solar farming segment to be the main contributor to its profit when its 80ha integrated renewable energy plant becomes operational next month.

Amway’s strong earnings and dividend plan sent the share price up 11 sen to RM9.91.



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KL shares bearish at midmorning

At 10.30 am today, there were 153 gainers, 434 losers and 268 counters traded unchanged on the Bursa Malaysia.

The FBM-KLCI was at 1,550.99 down 10.31 points, the FBMACE was at 4,687.34 down 51.35 points, and the FBMEmas was at 10,795.32 down 64.83 points.

Turnover was at 682.117 million shares valued at RM329.814 million. -- Bernama



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Can-One drops on stake sale impasse

Can-One Bhd, a maker of tin cans, dropped 5 per cent to RM1.70, headed for its lowest close since January 11.

See Teow Chuan, former managing director of Kian Joo Can Factory Bhd, and 13 others are seeking a review of the Federal Court’s ruling that allowed Can-One to buy a 32.9 per cent stake in Kian Joo, according to a stock-exchange filing.

Kian Joo fell 2.6 per cent to RM2.22. - Bloomberg



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Hup Seng rises on stronger Q4 net

Hup Seng Industries Bhd, a manufacturer of biscuits and confectionery, advanced 4.4 per cent to RM1.88, on course for its highest close since December 10, 2010.

Its fourth-quarter net income almost tripled from a year earlier to RM7.63 million, the company said in a filing to the exchange. - Bloomberg



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Denko up as Green boosts stake to 13pc

Denko Industrial Corp, a manufacturer of packing materials, climbed 5.1 per cent to 31 sen, bound for its highest close since January 30.

Singapore-based Green Power Resources Ltd bought an additional 9 million shares in Denko, raising its stake in the company to 13 per cent, according to a filing to the stock exchange. - Bloomberg



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Prestariang jumps on dividend plan

Prestariang Bhd, a communications software company, gained 2.2 per cent to 94 sen, set for a record close.

The company proposed a final dividend of 4 sen a share after reporting a fourth-quarter profit of RM10.6 million, according to an exchange filing. - Bloomberg



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RHB Research maintains underweight for steel sector

KUALA LUMPUR (Feb 16): RHB Research Institute is maintaining its Underweight outlook on the steel sector.

It said on Thursday that for the October-December 2011 quarter, most Malaysian steel producers were expected to report losses.

“We believe there is substantial downside risk to 2012 consensus earnings forecasts as well,” it said.

RHB Research said China’s end-demand for steel could turn out to be weaker than expected in the absence of policy easing in its real-estate sector.

It said this was evident in the recent decision by the local authority of a Chinese city to temporarily suspend its home subsidy policy on Feb 12, after introducing it just three days before.

The research house said the pace of consolidation in China’s steel industry has not really gathered momentum in the past few years, resulting in a still highly-fragmented industry with excess and outdated capacity, weighing down on industry margins.

“Decline in raw material costs, particularly iron ore, is likely to be milder than expected due to supply constraints in India (export duty hike), Australia and Brazil (weather disruptions),” it added.

“We have cut FY12-13 EPS forecasts for steel companies under our coverage by 15-23%, largely to reflect lower selling prices for steel products and higher raw material costs.

“We also rationalised our valuation method to PBV (using historical average for each company), for Ann Joo (FV raised to RM1.70, from RM1.40) and Lion Industries (FV raised to RM1.37, from RM1.19),” it said.



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OSK Research maintains Buy on Prestariang, higher FV of RM1.48

KUALA LUMPUR (Feb 16): OSK Research is maintaining a Buy on Prestariang at a higher fair value of RM1.48, based on an unchanged 8.0 times FY12 price-to-earnings ratio (PER).

It said on Thursday that Prestariang reported 4QFY11 core earnings of RM10.60 million and proposed a final DPS of 4.0 sen.

“FY11 net profit surged more than 100% on-year to a new high of RM33.6 million to match our estimates while FY11 DPS stands at 8.0sen, which translates into a lucrative yield 8.7% for the year,” it said.

OSK Research said its bullish view is reaffirmed by the strong numbers as well as the stock’s appealing forecast FY12 DPS of 9.2 sen, which translates into a dividend yield of 10%.

“We believe its stock will climb to new heights after closing at a record high of 92 sen yesterday, Hence, we maintain BUY, at a higher FV of RM1.48, based on an unchanged 8.0 times FY12 PER,” it said.



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CIMB Research has technical buy on MBF Holdings at 98 sen

KUALA LUMPUR (Feb 16): CIMB Equities Research has a technical buy on MBF Holdings at 98 sen at which it is trading at a price-to-book value of 0.6 times.

It said on Thursday that prices have traded in a tight band since hitting a high of RM1.14 back in December.

“The stock appears to be building a base above the 50-day SMA in what looks like a triangle pattern.

“MACD is also sitting comfortably near the zero line while its RSI is above the 40-50pts mark. Both indicators appear to be turning upwards very slowly,” it said.

CIMB Research said any pullback is an opportunity to accumulate. However, always place a stop at below 94.5 sen to limit downside exposure as a break below would eliminate the triangle pattern and hence also eliminate the bullish continuation view.



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CIMB Research has technical sell on Carlsberg Brewery at RM9.45

KUALA LUMPUR (Feb 16): CIMB Equities Research has a technical sell on Carlsberg Brewery at RM9.45 at which it is trading at a FY13 price-to-earnings of 17.2 times and price-to-book value of 4.8 times.

It said on Thursday that prices have been falling since hitting a high of RM9.74 last week.

CIMB Research said that it may be too early to call for a top for Carlsberg but there are signs that the rally is losing momentum.

“The bearish divergence on its MACD and RSI calls for bulls to be extra cautious. The overbought RSI also supports the view that there is a good chance for the stock to retrace from here,” it said.

The research house said that even if prices take out last week’s high of RM9.74, the upside could be capped around the RM9.90-RM10.00 levels.

“The stock is a sell now with prices targeting to fill up the RM9.05-RM9.16 gap followed by a test of the RM8.50 support,” said CIMB Research.



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CIMB Research has technical sell on Hibiscus Petroleum at RM1.78

KUALA LUMPUR (Feb 16): CIMB Equities Research has a technical sell on Hibiscus Petroleum at RM1.78.

It said on Thursday that Hibiscus’ rally from the August lows has been outstanding. The trend is still up but the uptrend could see some consolidation soon.

“Yesterday’s bearish harami pattern coupled with the bearish divergence on its MACD Histogram and RSI suggest that a pullback could be on the cards.

“Upside is likely capped by the RM2.00 psychological resistance. We expect prices to ease a tad towards RM1.60 and possibly even RM1.46.again. Use any rebound to sell on strength,” it said.



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HDBSVR expects Malaysian market to see resilience

KUALA LUMPUR (Feb 16): HwangDBS Vickers Research said as the consolidation drags on, the Malaysian stock market is expected to show a fair bit of resilience.

“On the chart, the benchmark FBM KLCI will probably tread above its immediate support level of 1,555 ahead,” it said on Thursday.

HDBSVR said major U.S. equity indices lost between 0.5% and 0.8% on Wednesday night amid concerns of possible delays for Greece to secure international bailout funds. This could dampen investors’ sentiment around the region when Asia resumes trading this morning.

The research house said that among the Malaysian stocks that may be actively traded today include:

(a) AirAsia following news report that said it is planning to set up a low-cost carrier to serve the Gulf region;

(b) Prestariang, which has just proposed a single-tier dividend of 4.0 sen per share (implying a yield of 4.3% based on its last done share price of 92 sen); and

(c) Compugates Holdings, as one local media reported that the company is expected to clinch several solar-based projects in Sabah worth over RM2 billion.



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Stocks to watch: Amway, Prestariang, Can-One, Mulpha Intl

KUALA LUMPUR (Feb 15): Stocks on Bursa Malaysia could see cautious trade after the FBM KLCI snapped its two-days of gains despite the firmer broader market.

However, lending support could come from the better-than-expected economic numbers where the fourth quarter 2011 GDP expanded at 5.2%. Economists had expected the 4Q2011 GDP to have expanded 4.5% on-year, driven by upbeat domestic demand.

Among the stocks to watch are Amway (Malaysia) Holdings Bhd, Prestariang Bhd, CAN-ONE BHD [] and Mulpha International following the latest corporate developments.

Amway’s net profit for the fourth quarter ended Dec 31, 2011 rose 36.1% to RM24.93 million from RM18.31 million a year earlier, due mainly to improved gross margin arising from the lower cost of products and lower operating expense.

Amway declared a fourth interim single tier dividend of nine sen net per share for the financial year ended Dec 31, 2011, to be paid on March 30, 2012. The company was adopting a dividend payout ratio of no less than 80% of the company’s current year net earnings from the financial year 2012.

For the financial year ended Dec 31, Amway’s net profit was up 14.9% to RM89.99 million from RM78.32 million in 2010, while revenue rose to RM735.81 million from RM719.41 million.

Prestariang posted net profit of RM10.55 million in the fourth quarter ended Dec 31, 2011, underpinned by strong demand for its information communications TECHNOLOGY [] (ICT) training. Its revenue was RM32.63 million. Its earnings per share were 4.80 sen. It proposed a final single-tier dividend of 4.0 sen per share.

For the financial year ended Dec 31, 2011, it reported net profit of RM33.61 million on the back of RM111.75 million in revenue.

The legal tussle between Can-One Bhd and Kian Joo Holdings Sdn Bhd resumed. The former managing director of KIAN JOO CAN FACTORY BHD [] (KJCF) Datuk See Teow Chuan and 13 others have filed an application seeking the review of the Federal Court ruling that gave the nod for Can-One to buy the 32.9 pct stake of KJCF.

Mulpha expects to record a one-off gain of about RM57.35 million from the sale of its 75% stake in Hong Kong listed Manta Holdings Company Ltd for HK$285 million (RM111.15 million).

Mulpha said its unit Jumbo Hill Group Ltd had on Tuesday entered into a sale and purchase agreement with Eagle Legend International Holdings Ltd to dispose of the stake, comprising of 150 million shares, at HK$1.90 a share.

Meanwhile, DENKO INDUSTRIAL CORPORATION [] Bhd saw Green Power Resources Ltd increasing its stake in the company. Green Power, which is based in Singapore, acquired 9.0 million shares in Denko on Feb 9 and increased its shareholding to 13.14% or 13.72 million shares. The shares were disposed of by Yong Boon Cheong at 30 sen each.

GD EXPRESS CARRIER BHD []'s net profit for the second quarter ended Dec 31, 2011 rose 30% to RM2.11 million from RM1.62 million a year earlier, due mainly to growth in customer base and increase in business from existing customers.



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