Thursday 23 February 2012

Time dotCom's FY11 pre-tax at RM119m

KUALA LUMPUR (Feb 23): TIME DOTCOM BHD []'s pre-tax profit for the financial year ended Dec 31, 2011 rose to RM119.02 million vis-a-vis RM88.906million in the same period in 2010. Revenue, however, dwindled to RM313.872 million from RM321.083 million.

TIME dotCom said its profit from core operations improved 35 per cent to RM48.9 million from RM36.1 million in 2010 on the back of 34 per cent hike to
RM119 million in net pre-tax profit.

Chief Executive Officer Afzal Abdul Rahim attributed the better performance to increased focus on higher margin business driven by a healthier product mix.

This year, the company would further monetise its network and build on expanding its coverage in key market segments, he said.

TIME dotCom said its proposed plan to position itself as a regional wholesale player by acquiring a group of companies has been approved.

This would allow the company to offer complete network solutions to regional providers, it said in a filing to Bursa Malaysia. - Bernama



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Plenitude's 2Q pre-tax profit slightly higher at RM34.24m

KUALA LUMPUR (Feb 23): PLENITUDE BHD [] registered a higher pre-tax profit of RM34.244 million for the second quarter ended Dec 31, 2011, compared with RM33.993 million in the corresponding period in 2010.

Revenue, however, decreased to RM74.116 million from RM86.817 million, Plenitude said in a filing to Bursa Malaysia on Thursday.

"The lower revenue was due to the reduction in property development contribution, mainly attributable to lower progressive income recognised on PROPERTIES [] sold, completed and handed over of certain projects for Taman Desa Tebrau in Johor, Taman Putra Prima in Selangor, Bayu Ferringhi in Penang and Bandar Perdana and Lot 88 in Kedah," it said.

Looking forward, the company expects to continue to draw buyers for its properties in good locations, with the Board fairly optimistic that the Group would continue to achieve satisfactory results for the financial year ending June 30, 2012. - Bernama



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Mudajaya FY11 pre-tax at RM293m

KUALA LUMPUR (Feb 23): MUDAJAYA GROUP BHD []'s pre-tax profit for the financial year ended Dec 31, 2011 increased to RM293.948 million from RM278.386 million in the same period last year. Revenue rose to RM1.347 billion from RM870.428 million previously.

Group managing director/chief executive officer, Anto Joseph, said on Thursday the strong results were driven by its CONSTRUCTION [] division on the back of higher recognition of revenue and profits on work done.

"As at end-2011, the company's outstanding order book amounted to RM4.2 billion and this will continue to anchor current year earnings.

"We will also continue to explore opportunities in investments in infrastructure projects to enhance our long-term recurring income base," he said. - Bernama



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Higher pre-tax profit for Century Logistics

KUALA LUMPUR (Feb 23): CENTURY LOGISTICS HOLDINGS BHD []'s pre-tax profit for the financial year ended Dec 31, 2011 increased to RM36.222 million from RM35.971 million in the previous year.

Its revenue increased to RM281.654 million from RM270.444 million previously.

In a statement on Thursday, Century said 86 per cent of the revenue was derived from Total Logistics Services and Oil and Gas Logistics while Procurement Logistics Services contributed the balance.

In the fourth quarter, Century posted a lower pre-tax profit of RM6.106 million as compared with RM8.977 million in the previous corresponding period while its revenue dropped to RM61.174 million from RM63.738 million.

Century said it intended to declare a final single-tier dividend of 7.0 sen per share, pending shareholders’ approval at the forthcoming annual general meeting.

Century had earlier paid interim single-tier dividend of 5.0 sen, bringing the total single-tier dividend for 2011 to 12.0 sen per share, the highest quantum of dividend declared since listing its in 2001.

Century is exploring the possibility of improving its dividend payout. - Bernama



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Green Packet to invest RM300m as capex

KUALA LUMPUR (Feb 23): GREEN PACKET BHD [] plans to invest RM300 million in capital expenditure this year to sustain its continuing growth.

Group Chief Executive Officer Puan Chan Cheong said this year the company aims to widen its 4G coverage in populated areas in Peninsular Malaysia to 65 per cent from 50 per cent currently.

Its 4G operator and service provider arm, P1, would also expand to Sabah and Sarawak by June, he said.

"Plans to enter Sabah and Sarawak would be implemented phase by phase, starting with Kota Kinabalu. Investment for Kota Kinabalu alone is about RM30,000," said Puan, who is also group managing director, told a press conference.

P1 aims to achieve a subscriber base of more than 500,000 this year by managing its subscriber acquisition activities in line with its network capacity expansion. To date, its subscriber base stands at 380,000.

P1 is currently the fastest-growing broadband provider with 36 per cent market share of new broadband subscribers in areas with P1 network coverage.

On its solutions and TECHNOLOGY [] business, Puan said Green Packet aims to touch 850,000 software licences and 900,000 Wimax CPE shipments this year.

Last year, the company's software licences stood at 742,000 and shipped 803,000 devices.

"We scored a number of wins with major telco players globally, delivering for Telefonica, Spain's largest telco operator, Time Warner Cable, Smart
Communication Inc Philippines, Wateen Telecom Pakistan and Wi-Tribe Group.

"We plan to position ourselves as a leading expert in Wi-Fi data off-loading and transitioning our device portfolio to include long-term evolution technology is on track," Puan said, adding that the company was doing intensive tests and trials for its solutions and devices.

On consolidation talks in the telecommunications space, P1 chief executive officer Michael Lai said the company would always be on the look-out for what was best for its consumers and stakeholders.

"At this point of time, nothing is concrete. As a responsible company, we'll always keep our options open. We'll compete when required and cooperate where necessary," he added. - Bernama



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BHIC earning down 67% to RM3.74m on weaker heavy engineering biz

KUALA LUMPUR (Feb 23): BOUSTEAD HEAVY INDUSTRIES CORP []oration Bhd’s earnings fell 67.5% to RM3.74 million in the fourth quarter ended Dec 31,2011, from RM11.4 million a year ago, weighed down by its heavy engineering segment.

It said on Thursday that revenue decreased 31.6% to RM156.66 million from RM229.20 million. Earnings per share were 1.51 sen compared to 4.60 sen last year.

BHIC said the lower revenue was due to the weaker performance of its heavy engineering segment, specifically relating to maintenance, repair and overhaul (MPO) jobs which form the bulk of the subsidiaries' activities.

It also cited the segments’ smaller turnover, commercial shipbuilding losses, higher finance charges and a lower share of profit from its associates, as causes for the lower earnings.

For the financial year ended Dec 31, 2011, net profit fell 81.7% to RM12.78 million from RM69.80 million. Revenue decreased by 16.3% to RM544.13 million from RM649.79 million.



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Petronas ups gas supply to Gas Malaysia under new deal

KUALA LUMPUR (Feb 23): Petroliam Nasional Bhd will increase the natural gas supply to Gas Malaysia Bhd to 534,143 Gigajoule (492 million standard cubic feet per day (MMScfd) ).

The agreement, which was signed on Thursday, is for 10 years from Jan 1, 2013 has an option for it to be extended by another five years.

“The new gas supply agreement will replace the existing gas supply agreement which will expire on Dec 31, 2012 for a total gas supply of 382 MMScfd.

“The contract is aimed at providing a long term supply security of natural gas to Gas Malaysia’s existing customers, while the additional 110 MMScfd will enable Gas Malaysia to expand its supply to new customers,” said Gas Malaysia.

The agreement was signed by Petronas vice president, infrastructure and utilities Pramod Kumar Karunakaran and Gas Malaysia chairman Datuk Hamzah Bakar.



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YTL Corp 2Q net profit up 44.5%, boost from multi-utilities segments

KUALA LUMPUR: YTL Corp Bhd's net profit rose 44.5% to RM237.38 million in the second quarter ended Dec 31, 2011 from RM164.18 million a year ago mainly attributable to better performance in the multi-utilities segments.

It said on Thursday that its revenue rose 18.3% to RM5.325 billion from RM4.499 billion. Earnings per share were 2.63 sen compared with 1.83 sen.

“The group profit before taxation for the current financial quarter was RM610.1 million, an increase of 26.9% as compared to RM480.9 million recorded in the preceding year corresponding quarter,” it said.

For the first half, its net profit rose 10.4% to RM489.21 million from RM44.08 million in the previous corresponding period. Its revenue rose 10.8% to RM9.868 billion from RM8.904 billion. Group profit before taxation was RM1.140 billion, up 3.2% from RM1.104 billion.

YTL Corp group managing director Tan Sri Francis Yeoh said the group continued to perform well.

“Revenue topped RM9.8 billion, due mainly to the ongoing resilience of our multi-utility businesses in Malaysia, the UK and Singapore. Overall, our cement and multi-utility operations, which are the group’s major contributors, continued to register sound performance,” he said.

YTL Corp said its ‘Yes’ mobile broadband operations registered a loss mainly due to the upfront implementations costs to build the 4G infrastructure. Its mobile broadband network segment registered a loss before tax of RM197.04 million on the back of RM30.6 million in revenue.



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Tambun Indah to launch RM570m projects in 2012

KUALA LUMPUR (Feb 23): Tambun Indah Land Bhd plans to launch RM570 million worth of projects in 2012 both on Penang island and the mainland.

It said on Thursday that among the projects were the Straits Garden in Penang Island, and Pearl Residence, Pearl Indah, Carissa Villas and BM Residence on the mainland of Penang.

Tambun Indah said it recorded strong property sales in the financial year ended Dec 31, 2011.

It sold 912 units valued at RM347.3 million in FY11 compared to 396 units valued at RM137.1 million in FY10.

“The strong property sales in FY11 saw group revenue and profit before tax (PBT) increase 49.8% and 29.8% to RM191.8 million and RM46.9 million respectively, from proforma revenue of RM128.1 million and PBT of RM36.2 million a year ago,” it said.

Tambun Indah said net profit dipped 6.5% to RM23.6 million in FY11 from RM25.2 million in FY10 due to higher administrative expenses, which included a one-off RM2.67 million listing expenses incurred during the listing exercise on the Main Market.

Managing director Teh Kiak Seng said the group has a future gross development value of RM2.8 billion on its undeveloped land bank of 625.0 acres, which would sustain the group’s growth until 2020.

“With this in mind, we believe the group will continue to perform well in the next few years,” he said.



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Sentoria fails to excite investors

KUALA LUMPUR (Feb 23): Shares of Sentoria Group Bhd, the first initial public offering (IPO) of the year, fell 9.7% at the closing bell, failing to excite investors as fears of an economic slowdown brought on by possible high oil prices and the ongoing European debt saga.

Sentoria's share price closed at 78.5 sen, down 8.5 sen from its reference price of 87 sen, with 34.2 million shares traded in.

Meanwhile, the FBM KLCI on Thursday ended 3.86 points lower, or 0.25%, to close at 1,556.66, dragged down by banks — such as CIMB Group Holdings (down 8 sen to RM7.16), Hong Leong Bank (down 18 sen to RM11.66), and RHB Cap (down 17 sen to RM7.61) — to bring the index down 2.07 points.

A total of 1.95 billion shares were traded in, valued at RM2.11 billion. Losers led gainers 689 to 217, while 264 counters traded unchanged.

Regionally, markets closed on a weak note, as fears of a possible economic slowdown brought on by high oil prices and the ongoing European debt saga continues.

South Korea's Kospi was down 1.03% to 2,007.80, Taiwan's Taiex fell 0.80% to 7,937.30, Hong Kong's Hang Seng Index was lower by 0.78% to 21,380.99, and Singapore's Straits Index dropped 0.92% to 2,968.34.

However, Japan's Nikkei 225 (up 0.44% to 9,595.57) and Shanghai's Composite Index (up 0.25% to 2,409.55) bucked the trend.

On Bursa Malaysia, top gainers included United PLANTATION []s (up 76 sen to RM24.18), ORIENTAL HOLDINGS BHD [] (up 56 sen to RM6.34) and MBM RESOURCES BHD [] (up 41 sen to RM4.89).

Top losers included British American Tobacco (down 64 sen to RM52.12) and Batu Kawan Holdings (down 30 sen to RM18.50).

Most actively traded was Naim Indah Corporation, which was down 3.5 sen to close at 42 sen, with 68 million shares traded in.



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Market Commentary

The FBM KLCI index lost 3.86 points or 0.25% on Thursday. The Finance Index fell 0.59% to 13867.67 points, the Properties Index dropped 0.68% to 1037.17 points and the Plantation Index down 0.72% to 8603.91 points. The market traded within a range of 4.84 points between an intra-day high of 1561.50 and a low of 1556.66 during the session.

Actively traded stocks include NICORP, IFCAMSC, TIGER, SAAG, PDZ, DRBHCOM-CG, DRBHCOM-CF, GOCEAN, SNTORIA and TMS. Trading volume decreased to 1951.41 mil shares worth RM2109.15 mil as compared to Wednesday’s 2230.80 mil shares worth RM1937.12 mil.

Leading Movers were AXIATA (+8 sen to RM5.09), TENAGA (+8 sen to RM6.19), TM (+4 sen to RM5.07) and YTLPOWR (+1 sen to RM1.90). Lagging Movers were CIMB (-8 sen to RM7.16), GENTING (-12 sen to RM10.72), AIRASIA (-7 sen to RM3.58), YTL (-3 sen to RM1.42) and PPB (-20 sen to RM16.94). Market breadth was negative with 217 gainers as compared to 689 losers. -- JF Apex Securities Bhd



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Vincent Tan turns 60, announces retirement as Berjaya Corp chairman

KUALA LUMPUR (Feb 23): BERJAYA CORPORATION BHD []'s founder Tan Sri Vincent Tan Chee Yioun announced his retirement from active corporate role in the company on Thursday, which was his 60th birthday.

BCorp, which is the flagship of the Berjaya Group of companies, said Tan had relinquished his position of chairman after handing over the role of CEO to his eldest son, Datuk Robin Tan Yeong Ching, in January 2011.

"I turned 60 years old today, I founded the Berjaya Group in 1984 and have dedicated a good part of my working life to Berjaya. I personally feel a great sense of pride and accomplishment in having built up a reasonably significant group," he said in a statement.

The group said his son would hold the position of chairman and CEO until a suitable candidate has been identified.

"Although I am no longer chairman or a board member, I will nevertheless always be available to the management of the group for consultation and advice whenever needed," Tan added.



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Maybank targets 15% revenue growth for 2012, say CFO

KUALA LUMPUR (Feb 23): MALAYAN BANKING BHD [] (Maybank) is targetting 15% growth in revenue for 2012, fueled strong growth at its Indonesian subsidiary Bank Internasional Indonesia (BII).

Maybank group chief financial officer Datuk Kharussaleh Ramli said on Thursday that for 2012, he expects BII's revenue will continue to growing at 20%, supported by Indonesia's gross domestic product (GDP) growth of about 6.5%.

As at the six month period ended Dec 31, 2011, BII contribute 16% to Maybank's group revenue, according to Kharussaleh.

Khairussaleh said Maybank will continue to grow the revenue contribution from BII, and provide greater share of the group's profitability. Currently, BII's share of profit to the Maybank group was only 5%, he added.



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Kenanga nears pact to buy ECM Libra

K&N Kenanga Holdings Bhd, the Malaysian brokerage backed by Deutsche Bank AG, is close to an agreement to buy the investment banking and broking unit of ECM Libra Financial Group Bhd for about RM900 million, according to three people familiar with the matter.

Kenanga may pay in cash and stock, two of the people said today, declining to be identified as the information is private. The sale won’t include ECM Libra’s asset management operations, they said.

Malaysian banks and brokerages have been merging amid increased competition from foreign lenders including Bank of China Ltd and Sumitomo Mitsui Banking Corp. Hong Leong Bank Bhd acquired EON Capital Bhd for US$1.7 billion in May, while RHB Capital Bhd is seeking central bank approval to buy OSK Holdings Bhd's investment bank.

Kenanga’s head of group corporate affairs Siti Maslinda Sheikh Othman wasn’t immediately available to comment. ECM Libra spokeswoman Maureen Jeyasooriar declined to comment on the sale. Kenanga’s board is expected to meet later today to approve the deal, one person said.

The sale will help Azman Hashim, ECM Libra’s biggest shareholder, meet Malaysian licensing rules that bar a single individual from being a key owner of more than one investment bank. Azman, who owns 24 per cent of ECM Libra, also indirectly holds almost 17 per cent of AMMB Holdings Bhd, Malaysia’s fifth- biggest lender by market value, according to data compiled by Bloomberg. -- Bloomberg



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IOI Corp Q2 net income rises to RM577.7m

IOI Corp, Malaysia’s second-biggest palm oil planter by market value, said second-quarter profit gained 11 per cent on higher crude palm oil prices.

Net income advanced to RM577.7 million (US$191 million), or 9 sen a share, in the three months ended Dec 31, from RM520.2 million or 8 sen, a year earlier, the company said in a statement today. Sales increased 5 per cent to RM4.17 billion on higher contributions from the group’s core palm oil business.

IOI fetched an average RM3,032 a metric ton for its crude palm oil in the quarter, compared with RM2,800 a year ago, it said.

Palm futures gained 9.3 per cent in the quarter ended Dec 31. The May-delivery contract gained as much as 0.7 per cent to RM3,272 a ton on the Malaysia Derivatives Exchange today after reaching an 8-month high of RM3,294 ringgit.

Palm-oil exports from Malaysia, the second-largest producer, may climb as much as 10 per cent this year, expanding faster than local output and helping to drive down stockpiles and support prices, Lee Yeow Chor, IOI’s executive director and chairman of the Malaysian Palm Oil Council, said on Feb. 15. Prices may reach RM4,000 a ton by June, Dorab Mistry, a director of Godrej International Ltd., forecast in December.

IOI declined 0.2 per cent to RM5.33 at 3:40 p.m. local time compared with the 0.1 drop in the benchmark FTSE Bursa Malaysia KLCI Index.

“The plantation segment is expected to perform well for the current financial year on the back of strong crude palm oil prices and higher FFB productions,” IOI said.

IOI’s resource-based manufacturing segment reported a 22 per cent rise in profit to RM124.2 million on increased margins from oleochemicals and higher sales from specialty fats and refineries, according to the statement.

Property development earnings rose 16 per cent to RM146.1 million, it said. The group generates around 5.9 per cent of its revenue from real estate including investments, according to data compiled by Bloomberg.

The company declared an interim dividend of 7 sen per ordinary share for the financial year ending June 2012. -- Bloomberg



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KL shares remain in red at mid-afternoon

Share prices on Bursa Malaysia were lower at mid-afternoon today, weighed down by losses in finance and plantation counters due to lack of buying interest, dealers said.

At 3.01pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) fell 1.5 points to 1.559.02, after opening 1.39 points lower at 1,559.13, in line with bearish tone in regional bourses.

The Finance Index lost 35.931 points to 13,914.06, the Industrial Index eased 20.69 points to 2,871.35 and the Plantation Index fell 58.84 points to 8,607.36.

The FBM Ace Index declined 63.37 points to 4,741.87 ,the FBM Emas Index declined 17.479 points to 10,802.16 and the FBM70 Index fell 14.29 points to 12,250.31.

Losers outnumbered gainers by 574 to 208 with turnover at 1.113 billion units valued at RM1.018 billion.

Among actives, IFCA MSC lost 2.5 sen to 12 sen, Naim Indah lost two sen to 43.5 sen, Green Ocean added one sen to 31 sen and Tiger Synergy was unchanged at 14 sen.

Of the heavyweights, Maybank declined one sen to RM8.70, Petronas Chemicals and Sime Darby was unchanged at RM9.64 and RM6.95, respectively, while CIMB fell five sen to RM7.19. -- BERNAMA



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SP Setia confident of hitting sales target

SP Setia Bhd is still confident of achieving its sales target of RM4 billion in its financial year ending Oct 31, 2012 despite Bank Negara Malaysia's new guidelines for loan borrowers.

President and chief executive officer Tan Sri Liew Kee Sin who welcomed the ruling, said the move would ensure only genuine buyers who had no financial problems own a property.

"The whole idea of the central bank is to dampen property bubble or credit bubble which is going on.

"Though the ruling will definitely affect the property sector, but we in SP Setia is confident that we can still achieve RM4 billion sales, driven by both local and foreign property sales," he told a media conference after the company's annual general meeting in Shah Alam, Selangor today.

Under Bank Negara's new guidelines that took effect from Jan 1, a prospective loan borrower will be assessed based on net income basis (instead of gross income) after deducting statutory deductions for tax and EPF and all other debt obligations (eg. car loan, other housing loan, credit cards).

Liew said SP Setia had already locked in sales of RM933 million for the first quarter of its current financial year ended Jan 31, 2012.

This represented a 27 per cent increase over the sales achieved in the corresponding period of previous year of RM737 million.

Liew said sustained demand for properties in the group's existing projects in the Klang Valley, Johor Baru and Penang would continue to underpin the group's sales performance in the 2012 financial year.

"We have many exciting new projects to help us capture new markets and further diversify our product mix.

"Our strong balance sheet also gives us ample room to continue to aggressively pursue opportunities to acquire good landbank thereby locking in future growth," he said.

Meanwhile, Liew said the SP Setia group also was keen on the London and Vietnam markets and was looking at opportunities there.

"We are looking at acquiring land in downtown Hanoi and Ho Chi Min for our property projects which will be more customer-based.

"SP Setia is also looking at acquiring land for property projects in London city as we want to make London an important market for SP Setia," he said.

Elsewhere, he said the group was targeting at least 30 to 50 per cent sales of its projects in Singapore would be from Malaysian buyers despite the 10 per cent increase in stamp duty for foreign buyers in the republic.

In Singapore, he said, the group would launch its maiden project namely a high-rise condominium development called Woodsville. -- BERNAMA



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Vincent Tan quits as Berjaya chairman

Berjaya Corp said founder Vincent Tan has quit as chairman of the Malaysian gaming, property and insurance group as he seeks to retire from an active corporate role in the company.

Tan, who turned 60 today, remains committed as the company’s controlling shareholder and wants to focus on promoting more charitable and social programs, Berjaya said in a statement in Kuala Lumpur today. His eldest son, Robin Tan, will assume the chairmanship position until the board identifies a replacement, it said.

He founded the Berjaya Group in 1984, according to the statement. -- Bloomberg



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Maybank posts higher H1 pre-tax profit

Malayan Banking Bhd has posted RM3.563 billion in higher pre-tax profit in the first six months ended Dec 31, 2011 against RM2.966 billion in the same period in 2010. Revenue rose to RM12.884 billion from RM10.190 billion.

For the three-month period, the largest lender's pre-tax profit stood at RM1.803 billion, up from RM1.562 billion. Turnover increased to RM6.180 billion from RM5.188 billion.

The country's largest commercial bank had on July 11, 2011 announced the change of financial year to Dec 31 from June 30. The first new financial year will be on Dec 31, 2011 with a shorter six-month period from July 1, 2011 to Dec 31, 2011. -- Bernama



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Axiata Q4 net income rises to RM544.6m

Axiata Group Bhd reported fourth-quarter net income of RM544.6 million, compared with a RM367 million loss a year earlier.

Revenue climbed to RM4.3 billion in the three months ended December from RM4 billion a year ago, the company said in a statement to the Kuala Lumpur stock exchange. It proposed a higher dividend of 15 sen per share, up from 10 sen for the same period a year ago. -- Bloomberg



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Dr M: Proton's transfer of ownership to be completed by March

KUALA LUMPUR (Feb 23): PROTON HOLDINGS BHD []'s transfer of ownership from Khazanah Nasional Bhd to DRB-HICOM BHD [] will be completed by next month, says Tun Dr Mahathir Mohamad, adviser to the national automaker.

The former Prime Minister said by the given timeline, the new leadership will also be finalised. "As for now, the new management has not been decided. We (Proton) are still in the midst of the transfer process to the new company as there are certain takeover codes which have to be complied with.

"I think by March we should have completed the transfer of ownership to the new management," he told reporters after launching the Malaysia OSV Owners' Association (OSV Malaysia), here on Thursday.

Asked as to whether former Proton chief executive officer Tengku Tan Sri Mahaleel Tengku Ariff would make a comeback as the company's new chairman, Dr Mahathir said as far as he is concerned, "there is no confirmation".

Current chairman Datuk Seri Nadzmi Salleh had earlier also indicated to the local media his willingness to lend a helping hand to Proton's new owner.

On this, Mahathir said: "Whether he is to be retained is not for me to decide. It is for the new owners to make that decision."

Khazanah sold its 42.7% equity interest to DRB-Hicom, citing the company's capital base and experience in the automotive industry.

Nadzmi was one of the bidders for the stake. — Bernama



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Listing will bring Felda Global to greater heights, says Dr M

KUALA LUMPUR (Feb 23): The listing of Felda Global Ventures Holdings Bhd (FGVH) will bring the Felda commercial arm to greater heights with the expansion of its current business and diversification of its business segments, former prime minister Tun Dr Mahathir Mohamad said on Thursday.

He said the listing was a great way to inject more capital and investment for the company as well as to ensure the settlers benefit.

"The settlers themselves cannot afford to buy shares and expand the company. So listing is one way to inject more capital and investment.

"At the end, the settlers will be given the same level of dividend. So, there is nothing to lose," he told reporters after launching the Malaysia OSV Owners' Association (OSV Malaysia) here.

On Wednesday, Felda chairman Tan Sri Mohd Isa Abdul Samad announced a plan to set up a special-purpose vehicle to ensure the settlers benefit directly from FGVH's listing as well as all future profits from the listed business. — Bernama



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IOI Corp 2Q net profit up 11% to RM577m, 70% dividends

KUALA LUMPUR (Feb 23): IOI CORPORATION BHD []’s earnings rose 11% to RM577.67 million in the second quarter ended Dec 31, 2011 from RM520.24 million a year ago.

The company said on Thursday its revenue increased by 4.9% to RM4.165 billion from RM3.970 billion. Earnings per share were 8.99 sen compared with 8.15 sen.

IOI said the board of directors declared the first Interim single tier dividend of 70% or 7.0 sen per ordinary share of 10 sen each.

The group reported a pre-tax profit of RM1.191 billion, which is 12% lower than the profit of RM1.351 billion reported in the previous corresponding period.

“The decrease is due mainly to translation loss on foreign currency denominated borrowings of RM240.5 million (compared to a gain of gain of RM139.1 million a year ago). Segment results of the Group however recorded an increase of 15%, with higher contributions from both PLANTATION [] and resource-based manufacturing segments, offset by lower contributions from property segments,” it said.

For the first half, IOI’s earnings fell 17.9% to RM835.77 million from RM1.018 billion in the previous corresponding period. Its revenue rose 10.9% to RM8.313 billion from RM7.489 billion.



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Petronas wins LNG Train 9 job

Petronas, which is embarking on a new production train project at its Petronas LNG Complex in Bintulu, Sarawak, has awarded the contract for the Front End Engineering Design (FEED) for it to JGC Corporation and to a partnership of Chiyoda Corporation and Saipem S.p.A.

The contract, awarded under a dual FEED scheme, will see the two contractors compete in the FEED and in the Engineering, Procurement and Construction (EPC) price proposal for the project, known as Petronas LNG Train 9, it said.

The FEED is scheduled to be completed in December 2012, where the winner will be awarded the project’s Engineering, Procurement, Construction and Commissioning (EPCC) contract, it said in a statement today.

The new LNG train will add another 3.6 million tonnes per annum (mtpa) to the existing 24 mtpa production capacity of the Petronas LNG Complex and utilise the same liquefaction process technology as the complexs' existing eight
trains.

The required feed gas volume of up to 850 million standard cubic feet per day (mmscfd) will be supplied by the various fields offshore Sarawak.

The project is targeted to meet its Final Investment Decision (FID) by first quarter of 2013 with the Ready for Start-Up (RFSU) date being the fourth quarter of 2015.

Upon completion, the Petronas LNG Train 9 will include gas receiving facilities, acid gas removal unit, dehydration and mercury removal unit, fractionation and liquefaction unit, LNG rundown unit and all the associated utilities and facilities.

The LNG produced from the new train will be exported via the existing storage and loading facilities within the complex. A new company, Petronas LNG 9 Sdn Bhd, was incorporated on Jan 13, 2012 to manage the project. -- Bernama



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Proton ownership transfer to be completed in March: Dr M Read more: Proton ownership transfer to be completed in March: Dr M

Proton Holdings Bhd's transfer of ownership from Khazanah Nasional Bhd to DRB-Hicom Bhd will be completed by next month, says the adviser to the national automaker, Tun Dr Mahathir Mohamad.

The former Prime Minister said by the given timeline, the new leadership will also be finalised.

"As for now, the new management has not been decided. "We (Proton) are still in the midst of the transfer process to the new company as there are certain takeover codes which have to be complied with.

"I think by March we should have completed the transfer of ownership to the new management," he told reporters after launching the Malaysia OSV Owners' Association (OSV Malaysia), here today.

Asked as to whether former Proton chief executive officer, Tengku Tan Sri Mahaleel Tengku Ariff would make a comeback as the company's new chairman, Dr Mahathir said as far as he is concerned, "there is no confirmation."

The current chairman, Datuk Seri Nadzmi Salleh had earlier also indicated to the local media, his willingness to lend a helping hand to Proton's new owner.

On this, Mahathir said: "Whether he is to be retained, is not for me to decide. It is for the new owners to make that decision."

Khazanah sold its 42.7 per cent equity interest to DRB-Hicom, citing the company's capital base and experience in the automotive industry. Nadzmi was one of the bidders for the stake. -- Bernama



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Weak start for Bursa Malaysia’s first IPO of 2012

KUALA LUMPUR (Feb 23): Bursa Malaysia’s first initial public offer (IPO) for 2012, Sentoria Group Bhd, got off to a weak start, with the share price ending the morning session below its reference price of 87 sen.

The weak debut also reflected the cautious local and key regional markets as investors feared high oil prices would slow down global economic growth and also the continuing Euro zone debt crisis saga.

At 12.30pm, the FBM KLCI was down 1.08 points to 1,559.44. Turnover was 937.15 million shares valued at RM811.77 million. Declining stocks beat advancers 515 to 206 while 293 counters were unchanged.

All the key regional markets fell, with the exception of Japan where the Nikkei 225 rose 0.13% to 9,566.42.

Hong Kong’s Hang Seng Index fell 0.98% to 21.337.50, Shanghai’s Composite Index lost 0.05% to 2,402.30, Taiwan’s Taiex 0.71% to 7,945.15 and South Korea’s Kospi 1.12% to 2,006.01 while Singapore’s Straits Times Index shed 0.97% to 2,966.66.

At Bursa Malaysia, property developer Sentoria fell eight sen to 79 sen in active trade, with 21.62 million shares done. Its reference price was 87 sen, which was the placement price while the price offered to the public was 85 sen.

CIMB fell seven sen to RM7.17, dragging the KLCI down 1.23 points while HL Bank lost 12 sen to RM11.72 and Maybank one sen to RM8.70. Public Bank rose four sen to RM13.72.

AirAsia shed seven sen also to RM3.58, pushing the index down by 0.45 of a point. GENTING BHD [] lost four sen to RM10.80.

Among the PLANTATION []s, IOI’s decline of five sen, dragged the index down by 0.76 of a point. Batu Kawan fell 20 sen to RM18.60 and KLK 16 sen to RM23.48.

Lafarge fell 17 sen to RM7.20 and Boustead 16 sen to RM5.38 while SapuraCrest gave up 12 sen to RM4.88.

However, Axiata managed to support the index by 1.8 points when it rose nine sen to RM5.10. Tenaga added eight sen RM6.19, nuding the index by 1.02 points. United Plantations was the top gainer, up 54 sen to RM23.96, Hartalega 26 sen to RM8.23 and Oriental 25 sen to RM6.03.



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Axiata 4Q earnings at RM544m, FY11 at RM2.34 bn

KUALA LUMPUR (Feb 23): Axiata Group Bhd posted net profit of RM544.58 million in the fourth quarter ended Dec 31, 2011 compared with net loss of RM367.04 when it was affected by impairment charge on investment in India.

It said on Thursday that its revenue was RM4.264 billion, up 6.16% from the RM4.016 billion a year ago. Earnings per share were 6.0 sen compared with loss per share of 4.0 sen.

The board of directors recommended the payment of a final tax exempt dividend under the single tier system of 15 sen per share (2010: 10 sen).

Axiata said the group taxation decreased by 68.6% to RM73.4 million in 4Q2011 as compared to RM234.0 million in 4Q2010, mainly due to the utilisation of investment tax credit on LBTI enjoyed by Malaysia.

For FY11, its net profit rose 32.5% to RM2.345 billion from RM1.770 billion. Its revenue increased by 5.29% to RM16.447 billion from RM15.620 billion.

Commenting on the full year results, Axiata said that eggressive execution by all operating companies on strategies resulted in positive quarterly revenue trends.

“Revenue was impacted by the weakening currencies outside of Malaysia and would have been 7.5% at constant currency. The robust performance was on the back of higher data in key markets particularly Celcom, XL and Dialog,” it said.

The group's EBITDA (earnings before interest, tax, depreciation and amortisation) remained steady at 1% to RM7.1 billion, 3% at constant currency, due to the growth in data and broadband at Celcom and XL in particular.

Axiata added that margins dipped by 1.9 percentage points due to aggressive network roll-out at Celcom and XL to accommodate the growth in data.

Celcom’s profits increased by 11% to hit the RM2 billion mark.

As for its subscribers, Axiata reported the total base expanded to nearly to 200 million, up 25% from a year ago, an average of 3.3 million per month “making the group one of the largest telcos in the region”.

Axiata said it had RM6.6 billion in cash and while its balance sheet had significantly strengthened. Axiata’s gross debt to EBITDA ratio was 1.6 times.



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KL shares in red at mid-day

Losses in selective bluechips and finance counters like Sime Darby, Genting, Maybank, Hong Leong Bank and CIMB pulled the FBM KLCI to negative territory at midday today.

At 12.30pm, the benchmark index declined 1.08 points to 1,559.44 after opening 1.39 points lower at 1,559.13 in line with weaker movements in other regional markets.

Dealers said investors remained on the sidelines following the overnight weak performance on the US market as weak data on European business activity and China's manufacturing sector prompted fears on global economic prospects.

Hong Leong Investment Bank said overall, the rebound from Feb 16's low of 1,549 points continued to be weak as the broader market turned more cautious and trading volume shrank, suggesting that the rally was running out of steam.

"The KLCI is still below our envisaged resistance channels of 1,570-1,580 points with the support level falls to 1,554 points," it said in a statement.

The Finance Index declined 42.99 points to 13,907.0, the Industrial Index slipped 18.06 points to 2,873.98 and the Plantation Index dropped 60.84 points to 8,605.36.

The FBM Emas Index eased 9.279 points to 10,809.91, the FBM ACE Index slipped 42.0 points to 4,763.24 and the FBM Mid 70 Index inched down 3.09 to 12,261.51.

Losers led gainers 515 to 206 on Bursa Malaysia while turnover amounted to 937.154 million shares worth RM811.777 million. Among active counters, IFCA MSC fell 2.5 sen to 12 sen, Naim Indah lost two sen to 43.5 sen, Green Ocean rose 2.5 sen to 32.5 sen and SAAG Consolidated was up half a sen to 7.5 sen.

Maybank fell one sen to RM8.70, Sime Darby was unchanged at RM9.64, Petronas Chemicals rose one sen to RM6.96 while CIMB lost seven sen to RM7.17. -- Bernama



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Flash: Maybank 2Q earnings up 15.2% to RM1.296b

KUALA LUMPUR (Feb 23): MALAYAN BANKING BHD []’s earnings rose 15.2% to RM1.296 billion in the second quarter ended Dec 31, 2011 from RM1.125 billion a year ago.

It said on Thursday that revenue increased by 31.2% to RM6.810 billion from RM5.188 billion. Earnings per share were 17.22 sen compared with 15.72 sen.

“The board of directors had proposed a final dividend in respect of the 6 months financial period ended Dec 31, 2011 of 36 sen less 25% taxation for the shareholders’ approval,” it said.

For the six-months period, its net profit increased by 19.9% to RM2.583 billion from RM2.153 billion in the previous corresponding period. Its revenue rose 26.4% to RM12.884 billion from RM10.19 billion.



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Universal Trustee reduces stake in Faber Group

KUALA LUMPUR (Feb 23): Universal Trustee (Malaysia) Bhd has reduced its stake in FABER GROUP BHD [] after the recent disposal of eight million shares on Wednesday.

A filing with Bursa Malaysia showed the 2.2% stake was disposed of in the open market. The share price closed at RM1.70.

After the disposal, Universal Trustee’s shareholding was reduced to 10.11% or 36.68 million shares.



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Malaysia Airlines' top piority to stem losses, says group CEO

KUALA LUMPUR (Feb 23): The top priority for MALAYSIAN AIRLINE SYSTEM BHD [] (MAS) now is to stem its huge losses and a return to profitability soon, besides striving to regain its stature as a preferred premium airline with better services and newer aircraft, its Group Chief Executive Officer (CEO), Ahmad Jauhari Yahya, said on Thursday.

Its recent senior management shake-up and drastic route cuts are among the many strategies being taken to put the national airline back on track towards profitability from the 2013-14 financial year onwards, he said.

He also said it was imperative that solutions be found to address issues at the national carrier, as the Malaysia Airlines name, invoked much pride among Malaysians.

For the nine months ended Sept 30, 2011, MAS incurred RM1.209 billion in pre-tax losses as compared to a RM23.73 million profit for the same period in 2010. It is scheduled to release its full year financial result next week.

To avoid "rivers of red ink" for a considerable period if nothing drastic is done, major shareholders of Malaysia Airlines decided to undertake a top management change, as well as a landmark share swap deal late last year between MAS and its closest local rival, AIRASIA BHD [].

Under the deal, AirAsia's major shareholder, Tune Air Sdn Bhd, took a 20.5 per cent share in Malaysia Airlines while Khazanah Nasional Bhd got 10 per cent of the low-cost carrier.

As part of the revamp, Ahmad Jauhari, 57, an engineer by training and a corporate figure who had made his mark at MALAYSIAN RESOURCES CORP []oration Bhd and Malakoff Bhd, was appointed CEO last September.

"We have to stem losses first before moving forward. So, the first thing we did was to review all the "bleeding" routes, then on managing costs and finally, relooking our network," he told Bernama in an interview.

The company's new board of directors, he said, had also looked at how other factors could be improved, including, increasing frequencies on certain profitable routes such as to Manila, Jakarta, Shanghai and Beijing.

Although the move by MAS to cut off certain routes had caused lots of rumbling, including from employees, Ahmad Jauhari said such decisions were common in the aviation industry.

"It's a norm for airlines. You must get the volume. Japan Airlines slashed 40 per cent of the routes when it was in trouble," he said in citing an example.

But he said MAS may relook some routes that were cut if profitability could be ensured in future. Route cutting, he explained, would also help Malaysia Airlines to slash its maintenance and operating costs, as 36 aircraft in its fleet were at the end of their leases, and this meant it need not ground them as they would be returned to the lessors.

At the same time, MAS will be receiving 23 new aircraft, thus reducing its average fleet age to eight years from 14 years previously, and improving cost efficiency through newer and fuel-efficient engines.

In refuting claims that the route cuts had benefited its strategic partners, AirAsia and AirAsia X, he said: "Both airlines (Malaysia Airlines and AirAsia) actually act (separately) in terms of their own networks. Just as we cut and introduce new routes, they also do the same all the time."

Ahmad Jauhari said MAS withdrew from Cape Town and Johannesburg but neither AirAsia or AirAsia X were flying there.

Similarly, AirAsia X withdrew from London, Paris, New Delhi and Mumbai but these routes are still serviced by MAS, and when AirAsia X stopped flying to Abu Dhabi, Malaysia Airlines did the same with Dubai.

"So, it is completely an independent decision of both airlines. But whenever airlines cut routes, the incumbent get the traffic. That could be any airline," he pointed out.

On suggestions by some quarters that the partnership with Air Asia may eventually turn MAS into a low cost carrier over the long haul, Ahmad Jauhari said emphatically that it would always remain a full service carrier.

Commenting on plans to revitalise the airline as a preferred premium airline and attract more passengers, Ahmad Jauhari said it would embark on a major advertising and promotion campaign from mid-2012.

This would be just as MAS receives the first of its A380 jumbo aircraft, which would be deployed for the Kuala Lumpur-London sector from July 1. The campaign will be rolled out in stages, in South East Asia first, before going worldwide.

"The A380 will be our flagship aircraft to compete with other airlines. It is also a good opportunity to place Malaysia Airlines deservingly as a premium entity and help us win back customers," he said.

Asked why MAS had lost ground as a premium airline, Ahmad Jauhari said its competitors had been improving their services and offerings with newer aircraft.

"As such, regaining premium customers would not be on price alone, as Malaysia Airlines needs to put in more hard work, to entice them by offering better services and frills as they are now spoilt for choice," he said.

On the Kuala Lumpur-London sector, for example, carriers such as Etihad, Emirates and Singapore Airlines are also flying the same route.

"We can’t force customers to fly Malaysia Airlines. It's all about winning back customers by providing the better choice. These days you got to pamper customers.

"The mission is very clear. We basically have a large competition out there and the company needs to do this in order to survive. It is really about survival and winning back customers," he added.

As part of the campaign to capture more premium passengers, Ahmad Jauhari hoped that MAS' emergence as a member of the "One World" alliance in November this year would help, as it allowed access to almost 950 destinations in 150 countries, served by a combined fleet of 2,600 aircraft operating around 10,000 flights a day and carrying 358 million passengers.

Asked to elaborate on the introduction of new destinations, he said this would have to wait until the airline turned profitable.

"It takes at least a year to build-up traffic for a new route. For the first few months, you are going to lose some money. So, until we are financially sound, we can’t give that a try, and unless very certain of enough traffic," he added.

As to the possibility of Malaysia Airlines being forced to offer a voluntary employee separation scheme following the route cuts, Ahmad Jauhari said the management would look at seconding its skilled workforce to other airlines first, if there was a surplus.

"Secondment means these skilled workers would be gainfully employed until such time when the situation improves and Malaysia Airlines could then fully utilise them again," he added.

He said the highly trained cabin crew, pilots and technical personal of MAS were much sought after in the industry.

"If we have more than necessary, we can send them on secondment. This is also a norm in the industry. We helped start India’s Jet Airways (in that way), as they used our cabin crew, pilots and planes," he disclosed.

He stressed that the management would ensure that its work force would be "usefully employed."

Asked what he meant by "usefully employed", Ahmad Jauhari explained that they would have to undertake tasks to help boost the national airline's current turnaround and ensure future profitability. - Bernama



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US fund buys 6.5% stake in Sunway REIT

KUALA LUMPUR (Feb 23): US-based Capital Income Builder has emerged as a substantial shareholder in Sunway Real Estate Investment Trust (Sunway REIT) with 6.5% stake.

A filing with Bursa Malaysia showed the fund purchased the stake, comprising of 174.95 million units, up to Feb 2. The unit price closed at RM1.29 on that day.

Sunway REIT is the largest Malaysia REIT in terms of asset size, market capitalisation, average daily turnover volume and free float.

Its paid-up is 2.691 billion units and market capitalisation is at RM3.418 billion

The largest shareholder is Sunway Bhd with 36.83% or 991.49 million shares while the Employees Provident Fund Board owns 9.77% or 262.87 million shares.

Sunway REIT recorded a net realised income of RM50.76 million in its second quarter ended Dec 31, 2011, compared to RM45.23 million a year ago.



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Petronas awards design for Bintulu project to JGC Corp, Chiyoda-Saipem JV

KUALA LUMPUR (Feb 23): Petroliam Nasional Bhd has awarded the contract for the front-end engineering design (FEED) for its Bintulu LNG complex to JGC Corporation and Chiyoda Corporation-Saipem S.p.A. partnership.

“The contract, awarded under a dual FEED scheme, will see the two contractors compete in the FEED and in the engineering, procurement and CONSTRUCTION [] (EPC) price proposal for the project, known as Petronas LNG Train 9,” it said on Thursday.

The national oil corporation said the FEED was scheduled to be completed in December 2012, where the winner will be awarded the project’s engineering, procurement, construction and commissioning (EPCC) contract.

The project is targeted to meet its final investment decision (FID) by Q1 of 2013 while its ready for start-up (RFSU) date was the 4Q of 2015.

Petronas said the new LNG train would boost the existing 24 million ton per annum (mtpa) production capacity by another 3.6 mtpa.

It added the various fields offshore Sarawak would provide the required feed gas volume of up to 850 million standard cubic feet per day (mmscfd).

Upon completion, the Petronas LNG Train 9 would include gas receiving facilities, acid gas removal unit, dehydration and mercury removal unit, fractionation and liquefaction unit, LNG rundown unit and all the associated utilities and facilities.



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AirAsia falls on Q4 income slide

AirAsia Bhd, the region’s biggest budget carrier, dropped 1.9 per cent to RM3.58 as of 9:50 a.m. in Kuala Lumpur, bound for its lowest close since Jan. 31.

The airline’s fourth-quarter net income slid to RM135.7 million (US$44.8 million) from RM311.1 million a year earlier due to higher fuel costs, it said in a statement. -- Bloomberg



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MISC falls after 3Q net loss of RM1.74 bn, RHB Research has FV RM5.70

KUALA LUMPUR (Feb 23): Shares of MISC BHD [] fell to a low of RM5.68 on Thursday after it reported net loss of RM1.74 billion in the third quarter ended Dec 31, 2011.

At 10.15am, it was down 10 sen to RM5.70. There were 99,400 shares done.

The FBM KLCI was just 0.25 of a point down at 1,560.27. Turnover was 484.02 million shares valued at RM320.93 million. Losers beat gainers two to one with 345 declining stocks compared with 177 advancers.

On Wednesday, MISC attributed the losses in 3QFY11 due to recognition of one-off provisions totalling RM1.45 billion. This was in stark contrast to the net profit of RM1.38 billion a year ago

For the nine-month period, MISC recorded a net loss of RM1.481 billion due to the recognition of one-off provisions totalling RM1.452 billion following its recent decision to exit from the liner business.

RHB Research said the shipping sector that has yet to fully recover from the previous global economic downturn in 2008-2009 is staring at the possibility of another prolonged downturn.

The crux of the segment’s problem has always been over-investment in capacity during good times in the mid-2000s. Now with the growth in demand for shipping services coming to a halt, the research house expected rates to deteriorate further.

“However, to a certain extent, MISC’s earnings will be cushioned with recurring income from its LNG division, as well as high earnings growth at its offshore business and MMHE.

“Indicative fair value is cut by 7% from RM6.15 to RM5.70 based on ‘sum of parts’, having updated MISC’s cash balance and our indicative fair value for MMHE,” it said.



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WCT rises on RM331m Sabah job

WCT Bhd gained 1.1 per cent to RM2.68 as of 9:50 a.m. in Kuala Lumpur, set for its steepest increase since Feb. 9. The construction group won a RM331 million construction job in the eastern state of Sabah, it said in a statement. -- Bloomberg



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Sentoria slides to 82 sen in listing debut

Sentoria Group Bhd, a property developer and builder, slid 5.8 per cent to 82 sen as of 9:50 a.m. in Kuala Lumpur in its stock-exchange debut. -- Bloomberg



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Hartalega rises on Q3 profit

Hartalega Holdings Bhd, a glove maker, gained 2.6 per cent to RM8.18 as of 9:50 a.m. in Kuala Lumpur, set for its steepest increase since Feb. 8.

The company declared a dividend of 6 sen per share and proposed a one-for-one bonus issue and free warrants after reporting third-quarter profit of RM50.7 million, according to separate exchange filings. -- Bloomberg



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Favelle Favco rises on quarterly profit

Favelle Favco Bhd, a crane maker, advanced 6.4 per cent to RM1.33 as of 9:50 a.m. in Kuala Lumpur, on course for its biggest gain since Nov. 8.

The company proposed a dividend of 6 sen per share after its fourth-quarter profit doubled from a year earlier to RM20.2 million, according to a stock exchange filing. -- Bloomberg



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AirAsia slips in early trade on weaker 4Q earnings

KUALA LUMPUR (Feb 23): Shares of AIRASIA BHD [] slipped in early trade on Thursday after its earnings fell 56.3% to RM135.66 million in the fourth quarter ended Dec 31, 2011 due to high fuel expenses.

At 9.58am, it had fallen eight sen to RM3.57. There were 2.44 million shares done.

The FBM KLCI shed 0.70 of a point to 1,559.82. Turnover was 409.83 million shares valued at RM244.79 million. There were 180 gainers, 295 losers and 269 stocks unchanged.

AirAsia’s 4Q2011 earnings contrasted with the net profit of RM311.08 million a year ago as it was impacted by aircraft fuel expenses, which rose to RM475.07 million from RM292.44 million on-year.

It recorded foreign exchange losses of RM137.38 million compared with forex gain of RM44.29 million a year ago.

For the financial year ended Dec 31, 2011, its net profit fell 46.8% to RM564.14 million from RM1.06 billion in FY10.

RHB Research Institute said AirAsia Bhd’s FY11 core profit before tax exceeded its forecast by 20% but missed the market consensus by 7%.

“Fair value raised by 24% from RM2.99 to RM3.72. Upgrade to Market Perform,” it said.



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MISC slips on RM1.74b quarterly loss

MISC Bhd, an owner-operator of liquefied natural gas tankers, fell 1.7 per cent to RM5.70 as of 9:50 a.m. in Kuala Lumpur, headed for its lowest close since Jan. 3.

The company reported a quarterly loss of RM1.74 billion compared with a profit of RM1.38 billion a year earlier, due to provisions from its decision to exit the liner business, it said in an exchange filing. -- Bloomberg



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RHB Research upgrades AirAsia to market perform, FV RM3.72

KUALA LUMPUR (Feb 23): RHB Research Institute said AIRASIA BHD []’s FY11 core profit before tax exceeded its forecast by 20% but missed the market consensus by 7%.

It said on Thursday the low-cost carrier, being mindful of the sustained high crude oil prices, will continue with its four-pronged strategy to absorb the high fuel cost via: (1) Boosting sales; (2) Boosting anciliary income; (3) Raising fuel surcharge if need arises; and (4) Continued cost reduction initiatives.

“By putting more new aircraft in high-growth markets outside Malaysia but with long gestation periods, AirAsia may not be able to immediately squeeze or maximise earnings from new aircraft,” it said.

RHB Research said as far as the Japan venture is concerned, AirAsia believes that it is about “doing it right and well, rather than first (that is ahead of a competitor)”. AirAsia targets the maiden launch earliest in August.

“Fair value raised by 24% from RM2.99 to RM3.72. Upgrade to Market Perform,” it said.



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Market opens on cautious note, MISC, AirAsia down

KUALA LUMPUR (Feb 23): Blue chips opened weaker on Thursday, in line with the cautious regional markets as investors worried about a global economic slowdown due tohigh oil prices and that that the Euro zone could slip into a recession.

At 9.12am, the FBM KLCI was down 3.01 points to 1,557.51. Turnover was 144.99 million shares valued at RM62.78 million. There were 102 gainers, 141 losers and 216 stocks unchanged.

Sentoria, which made its debut on the Main Board, fell 2.5 sen to 82.5 sen. Its offer price to the public was 85 sen while it had placed out shares at 87 sen.

Among the decliners were KL Kepong, falling for the third day after its dividend went ex on Tuesday. It lost 52 sen to RM23.12.

BAT fell 28 sen to RM52.48, Genting PLANTATION []s 23 sen to RM9.02 while Public Banj and HLFG shed six sen each to RM13.62 and RM11.70.

MISC fell 12 sen to RM5.68 after it suffered net loss of RM1.74 billion in the third quarter ended Dec 31, 2011 compared with net profit of RM1.38 billion a year ago due to recognition of one-off provisions totalling RM1.45 billion.

AirAsia gave up six sen to RM3.59 after its fourth quarter earnings fell 56.3% to RM135.66 million when compared with RM311.08 million a year ago as it was impacted by aircraft fuel expenses, which rose to RM475.07 million from RM292.44 million on-year.



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Flat debut for Sentoria at 85 sen

KUALA LUMPUR (Feb 23): Property developer Sentoria Group Bhd made a lacklustre debut on the on the Main Board of Bursa Malaysia on Thursday, opening at at 84 sen or one sen below its offer price of 85 sen.

At the opening bell, there were 300,000 shares transacted.

The FBM KLCI was down 2.43 points to 1,558.09. Turnover was 44.52 million shares done valued at RM13.50 million. There were six gainers, 50 losers and 144 stocks unchanged.

The property developer is the first company to list in 2012.Its offer of 20 million new shares at an 85 sen each to the public was oversubscribed by 5.4 times.

The vendors had also placed out 30 million shares at 87 sen per share.

RHB Research Institute had accorded a fair value of 92 sen based on a 30% discount to its sum-of-parts valuation.



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HDBSVR maintains Lafarge Cement fully valued at TP of RM6

KUALA LUMPUR (Feb 23): Hwang DBS Vickers Research is maintaining its fully valued recommendation on Lafarge Malayan Cement with a target price of RM6 pegged to 15 times 2012F PE (10% discount to its CONSTRUCTION [] sector average).

It said on Thursday that the dividends are supported by stable operating cash flow, substantial net cash position (RM244 million) and minimal capex requirements.

On the fourth quarter results, HDBSVR said the net profit was RM117 million (+46% on-year, +65% on-quarter).

The main factors were due to lower coal prices (Newcastle coal fell 6% on-quarter) and higher plant efficiency through lower maintenance costs, resulting in a 27% EBITDA margin vs 1Q11-3Q11’s 18-21%, and a lower corporate tax rate (18% vs 1Q11-3Q11’s 26%) after reversal of deferred tax.

HDBSVR said topline grew 6% on-year on higher cement prices (+9% in May 2011) and improved demand from higher construction activity, but mitigated by volatile rebates by smaller players.

“FY11 net profit beat our and consensus’ estimate by 13%. A 10 sen interim DPS was declared, taking FY11 dividends to 34sen and implying 91% full year payout.

“FY12 should be challenging for Lafarge, given: (i) enforcement of the Competition Act 2010 that is effective since January 2011; (ii) greater indirect pricing pressure as smaller players offer larger rebates; and (iii) potentially late kick-start of major infrastructure projects (awards for MRT tunneling works are expected in April 12, with civil works likely to start a year later),” said HDBSVR.



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CIMB Research has technical sell on Rimbunan Sawit at RM1.16

KUALA LUMPUR (Feb 23): CIMB Equities Research has a technical sell on Rimbunan Sawit at RM1.16 at which it is trading at a price-to-book value of 1.0 times.

It said on Thursday that it is now the time to take profits following its earlier buy call.

CIMB Research said the stock formed a bearish engulfing pattern on Monday and prices have been drifting lower ever since. Prices could potentially nudge higher still but the upside could be capped at RM1.25.

“The bearish divergence on both the MACD and RSI signal that the uptrend is losing upward momentum. The overbought RSI also calls for bulls to be cautious,” it said.

CIMB Research said traders would be better off taking money off the table now. A break below RM1.07, the support trend line would confirm its suspicion that the uptrend is ending. A close below the support trend line would see prices decline further towards 86 sen next.



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CIMB Research has technical sell on SEGi at RM1.96

KUALA LUMPUR (Feb 23): CIMB Equities Research has a technical sell on SEG International at RM1.96 at which it is trading at a price-to-book value of 4.8 times.

It said on Thursday that SEGi is still on its uptrend but it believes that the uptrend is coming to an end soon.

“It appears to be forming a bearish wedge pattern following yesterday’s new 52-week intra-day high,” it said.

CIMB Research said both the MACD and RSI sports multiple bearish divergences, suggesting that the uptrend could be coming to its terminal point soon.

“The confirmation would come once prices take out the wedge support at RM1.83. This breakdown would send prices mean that prices could fall fast towards RM1.56-RM1.60 next. Resistance is around the RM2 to RM2.05 mark.

"Sell on further rallies or a break below RM1.83,” the research house said.



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CIMB Research has technical sell on MRCB at RM2.01

KUALA LUMPUR (Feb 23): CIMB Equities Research has a technical sell on MALAYSIAN RESOURCES CORP []oration Bhd (MRCB) at RM2.01 at which it is trading at a FY13 price-to-earnings of 21.1 times and price-to-book value of 2.1 times.

It said on Thursday that MRCB’s rally from the September low is most likely over following its breakdown of the bearish wedge pattern last week.

On Wednesday, prices fell sharply below its key moving averages. Its MACD has also fallen below zero while its RSI is below the neutral mark. Both indicators are trending lower in line with prices.

“Any rebounds should be capped by the trend line at RM2.18 while the moving averages around RM2.08-2.11 would also act as a resistance. As long as the RM2.27 high is intact, then prices are more likely to head lower to retest the RM1.87 level next,” said CIMB Research.



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Malaysia tycoon plans $2 bln power assets sale - sources

HONG KONG/SINGAPORE (Feb 22): Ananda Krishnan, ranked by Forbes as Malaysia's second-richest man, has put his entire power portfolio up for sale in a deal that could fetch more than $2 billion, three sources familiar with the matter told Reuters on Wednesday.

Standard Chartered Plc has been hired to run the sale of stakes in about a dozen power plants in Egypt, Malaysia, the Middle East and South Asia, with a net generating capacity of nearly 4,000 megawatts (MW), the sources said.

If the sale fetches more than $2 billion, it would be the biggest power deal in Southeast Asia since 2008, when Temasek Holdings [TEM.UL} sold its Singapore generation company PowerSeraya to Malaysia's YTL POWER INTERNATIONAL BHD [] for S$3.8 billion ($3.03 billion).

The sources asked not to be named as they are not authorised to speak to the media on the matter.

Krishnan, reckoned by Forbes to have assets of $9.5 billion last year, owns his power assets through Tanjong Energy Group, which, according to Tanjong's website, owns and operates eight power plants and has investments in five in Bangladesh, Egypt, Malaysia, Pakistan, Sri Lanka and the United Arab Emirates, with a total net generating capacity of 3,951 MW.

Tanjong Energy is wholly-owned by Tanjong Plc, which Krishnan took private in July 2010 in a deal valued at about $2.8 billion.

Standard Chartered and Tanjong declined to comment.

Krishnan maintains a low profile and little is known about his private life. It was not immediately clear why he was putting up the assets for sale.

His executives have launched a number of corporate deals in recent years, relisting part of his Maxis Bhd telecommunications services provider in what was Southeast Asia's biggest initial public offering in 2009. Last year, his team relisted Malaysian oil and gas services provider Bumi Armada Bhd.

Krishnan has also privatised Malaysian pay-TV monopoly ASTRO ALL ASIA NETWORKS PLC [] after a money-losing expansion into Indonesia and India weighed on the company's finances.

INTEREST

Tanjong Energy has three gas-fired power plants in Malaysia with combined capacity of 1,490 MW.

The sale of power assets could attract Malaysian power companies as well as regional power investment firms from the Middle East, the sources said.

They said most of the power plants being sold by Krishnan's Tanjong held long-term power purchase agreements (PPAs), which provided extended profit guarantees for the projects, and hence could attract buyers.

But the PPAs for its power plants in Malaysia are expiring in several years and face renewal with state utility TENAGA NASIONAL BHD [], which posted a third consecutive quarterly loss in January, one source said.

"Negotiations with Tenaga could be tough when the current contracts expire," a source said, adding the Egypt asset could also be a hard sell given the recent political turmoil in the North African country.

News of the possible asset sale comes a day after sources told Reuters that AES Corp, the first U.S. power producer to enter China about two decades ago, was looking to sell all or some of its assets there, hobbled by not being able to pass on higher coal costs in a state-regulated industry.

The sources said Arlington, Virginia-based AES, which has a market value of around $10.5 billion, had hired an investment bank to kick off the process. A sale or sales could potentially be worth $300-$400 million. - Reuters



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Stocks to watch: Sentoria, AirAsia, Hartalega, WCT, Kencana, TSH, MISC, KLK, Perisai

KUALA LUMPUR (Feb 23): Property developer Sentoria Group Bhd will be the stock to watch on Thursday, when it makes its debut on the Main Board of Bursa Malaysia.

The property developer is the first company to list in 2012.Its offer of 20 million new shares at an 85 sen each to the public was oversubscribed by 5.4 times.

RHB Research Institute had accorded a fair value of 92 sen based on a 30% discount to its sum-of-parts valuation.

Other stocks which could see trading interest following fresh corporate developments and financial results include AIRASIA BHD [], HARTALEGA HOLDINGS BHD [], WCT BHD [], KENCANA PETROLEUM BHD [], TSH RESOURCES BHD [], MISC BHD [], KUALA LUMPUR KEPONG BHD [] (KLK) and PERISAI PETROLEUM TEKNOLOGI [] Bhd and IJM CORPORATION BHD [].

AirAsia’searnings fell 56.3% to RM135.66 million in the fourth quarter ended Dec 31, 2011 when compared with RM311.08 million a year ago as it was impacted by aircraft fuel expenses, which rose to RM475.07 million from RM292.44 million on-year.

It recorded foreign exchange losses of RM137.38 million compared with forex gain of RM44.29 million a year ago.

For the financial year ended Dec 31, 2011, its net profit fell 46.8% to RM564.14 million from RM1.06 billion in FY10.

Nitrile latex glove maker Hartalega’s earnings rose 3% to RM50.70 million in the third quarter ended Dec 31, 2011 from RM49.20 million a year ago. For the nine months ended Dec 31, 2011, net profit increased 10% to RM151.60 million from RM137.76 million.

It proposed a bonus issue of up to 371.65 million 50 sen shares on a one-for-one basis and free warrants issue of up to 74.331 million free warrants on the basis of one free warrant for every five existing shares held on the entitlement date.

WCT secured a RM331 million contract for a mixed commercial project with a medical centre in Kota Kinabalu.

Kencana secured a RM101 million contract from Murphy Sarawak Oil Co. Ltd for two offshore platforms in Sarawak.

TSH Resources Bhd posted record net profit of RM120.54 million in the financial year ended Dec 31, 2011, an increase of 43% from the RM84.28 million a year ago and its expects the Indonesian oil palm estates to boost future earnings.

As for the fourth quarter ended Dec 31, 2011, net profit fell 39.8% to RM26.15 million from RM43.45 million. TSH said the reduction was primarily due to a foreign exchange loss of RM10.962 million and a RM7.291 million reduction in contributions from jointly controlled entities

MISC suffered net loss of RM1.74 billion in the third quarter ended Dec 31, 2011 compared with net profit of RM1.38 billion a year ago due to recognition of one-off provisions totalling RM1.45 billion.

For the nine-month period, MISC recorded a net loss of RM1.481 billion due to the recognition of one-off provisions totalling RM1.452 billion following its recent decision to exit from the liner business.

Kuala Lumpur Kepong recorded a 12.1% increase in earnings to RM340.98 million in the first quarter ended Dec 31, 2011, boosted mainly by its PLANTATION []s business, when compared with RM304.18 million a year ago.

Perisai’s net profits soared 106.8% to RM21.28 million for the financial year ended Dec 31, 2011 from RM10.25 million a year ago, boosted by profit contributed by the Intan Group, which it acquired in August last year. For the year ended Dec 31, 2011, its revenue was up 9.6% to RM82.41 million from RM75.21 million a year ago.

For the fourth quarter ended Dec 31, 2011, Perisai’s earnings 62.3% to RM11.21 million from RM6.93 million.

IJM Corporation’s earnings rose 5.7% to RM135.23 million in the third quarter ended Dec 31, 2011 from RM127.96 million a year ago. Its revenue chalked up 30.1% increase to RM1.172 billion from RM901.34 million. Earnings per share were 9.81 sen compared with 9.47 sen.

IJM Corp said for the nine-month period, its net profit was 1.1% higher at RM325.04 million from RM328.83 million. Its revenue rose at a stronger pace of 23.6% to RM3.303 billion from RM2.672 billion.



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