Kurnia Asia posts pre-tax profit of RM61m

Kurnia Asia Bhd (KAB) registered a pre-tax profit of RM61.12 million for the financial year ended Dec 31, 2011, from RM29.63 million previously. Revenue rose to RM1.161 billion from RM 1.096 billion.

KAB's main subsidiary, Kurnia Insurans (Malaysia) Bhd (KIMB), contributed RM87.0 million to the Group's results for financial year 2011.

KIMB's overall gross premium grew by 3.8 per cent year-on-year as motor and non-motor portfolio expanded by 0.6 per cent and 18.7 per cent respectively. Its portfolio mix improved to 80:20 as KIMB strengthened its non-motor portfolio in the market.

Net asset value of the group as at Dec 31, 2011 improved to RM402.10 million, the increase being mainly due to the surplus on revolution of property amounting to RM 30.746 million as well as RM 48.554 million net profits recorded during the period.

To achieve such rapid growth, the group has embarked on the Information Technology platform to enhance operational efficiency and make it easier for business partners to conduct business with the companies.

KAB executive chairman Tan Sri Datuk Paduka Kua Sian Kooi said: "We are pleased that our commitment to grow the non-motor business has been fruitful and indirectly contributed positively to the improvement in our underwriting performance.

"Kurnia Asia is now on a stronger platform to deliver improved performance in the coming year given the positive growth of the Indonesia, Thailand and Malaysian economies." -- Bernama



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New Hoong Fatt posts lower pre-tax profit of RM1.87m

New Hoong Fatt Holdings Bhd recorded a lower pre-tax profit of RM1.868 million for the fourth quarter ended Dec 31, 2011, as against RM7.893 million in the corresponding quarter of 2010. Its revenue fell to RM51.772 million from RM55.309 million.

For the full year, its pre-tax profit was RM25.929 million, down from RM31.304 million in the previous year.

This was mainly due to higher goodwill impairment compared to 2010, and operating loss from the overseas operations in Indonesia and China which were newly set up in 2011, it said in a statement.

The revenue fell to RM215.570 million from RM222.473 million mainly due to the disposal of 60 per cent-owned subsidiary New Kean Tat Auto Parts Sdn Bhd in the third quarter of the financial year, resulting in the reduction of revenue contribution from this subsidiary.

This reduction was mitigated by the increase in revenue from exports by 26.1 per cent compared to 2010, it said, adding that revenue for the local market was largely maintained at 2010 levels.

New Hoong Fatt's Board of Directors has recommended a final single-tier dividend of eight sen per share plus a special final single-tier dividend of one sen per share, totalling RM6.764 million. It expects the operating conditions for 2012 to remain challenging.

The rise in the petroleum price will cause a rise in prices of raw materials and this could adversely affect profit margins, it said.

Key focus areas for the Group are the stabilisation in the performance of the new overseas subsidiaries and improvement in production capabilities and operational cost efficiencies, it said.

The Group is optimistic that it will continue its positive performance for 2012. -- Bernama



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Time Engr pre-tax profit jump to RM95.9m

Time Engineering Bhd saw its pre-tax profit for the year ended Dec 31, 2011, jump to RM95.90 million from the RM20.99 million posted in 2010 on disposal gains.

"The improved overall result in the current year was mainly attributable to the gain on disposal of investment and the reversal of RM5.8 million, being over-provision of the finance cost arising from the early full redemption of the Group's Redeemable Secured Loan Stocks," it said in a filing to Bursa today.

Revenue, however, slipped to RM65.34 million from RM87.693 million due to an unfavorable Information, Communication and Technology (ICT) market conditions as well as competitive pricing for awarded projects.

It also said that the lower revenue in the current year was affected by the completion of the Malaysian Administrative Modernisation and Management Planning Unit (MAMPU) project and supply of ICT Equipment for MIS Implementation in Vietnam.

On the outlook, it said the group is currently pursuing a number of significant projects both locally and overseas, by leveraging on its new flagship investment, Integrated Enterprise Centre (IEC) services.

"With the resources in hand, the group is also exploring and evaluating strategic investments to further enhance its current businesses and services," it added.

The group said it is confident of maintaining the revenue stream from the existing businesses. -- Bernama



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Buy DRB-Hicom shares: HwangDBS

DRB-Hicom Bhd fell one sen or 0.389 percent to RM2.56, as at 12.30 pm, after the conglomerate announced net profits fell 28 per cent to RM80 million in the third quarter ended Dec 31, 2011.

In a statement today, HwangDBS Vickers Research said the result was below forecast mainly due to lower automotive earnings from Honda as a result of the Thai floods and lower services earning as Alam Flora lost the Selangor concession.

However, it said these were merely temporary hiccups due to the Honda plant in Thailand which would resume operations end-March.

"Alam Flora is also slated to penetrate two new states and would charge higher tariff now after migrating to a concession structure," HwangDBS added.

It cut DRB-Hicom's financial year 2012-2014 forecast earnings by between three and 11 per cent after accounting for weaker Honda and Alam Flora earnings.

HwangDBS maintained its buy recommendation on DRB-Hicom with a target priceof RM3.45. -- Bernama


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Malayan Flour Mills posts lower profit of RM103.6m

Malayan Flour Mills Bhd has reported a lower profit before tax of RM103.611 million for the year ended Dec 31, 2011 from RM127.893 million previously.

Revenue for the period concerned increased to RM1.918 billion from RM1.55 billion previously, it said in filing to Bursa. The decline in profit was mainly due to a lower profit margin.

The flour segment recorded revenue of RM858.3 million in FY2011, an increase of 12 per cent compared to RM764.5 million in FY2010, mainly due to higher selling prices.

However, the operating profit of RM65.9 million in FY2011 was 40 per cent lower than RM109.1 million in FY2010, due to a higher increment in raw material cost, resulting in lower profit margin for its products. -- Bernama



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Cocoaland earnings up 103% to RM8.72m

KUALA LUMPUR: COCOALAND HOLDINGS BHD [] earnings soared 103.2% to RM8.72 million for the fourth quarter ended Dec 31, 2011, from RM4.29 million a year ago, due to an increased selling price and higher trading volume of its products.

It said on Monday, Feb 28, its revenue increased 33.8% to RM51.4 million from RM38.44 million. Earnings per share were 5.08 sen from 3.23 sen a year ago. The group also announced a second interim dividend of 6% per share.

Cocoaland attributed its better performance to the higher selling price and trading volume of its Fruit Gummy and beverages production lines.

However, the stronger ringgit during the year, partially negated the growth of the group's revenue.

For the financial year ended Dec 31, 2011, its revenue increased 22.3% to RM173.99 million from RM142.26 million. Its profits increased by 95.4% to RM19.19 million from RM9.82 million.



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Tanjung Offshore suffers net loss of RM55.4m

Integrated oil and gas services provider, Tanjung Offshore Berhad (TOB), suffered a net loss of RM55.395 million for the financial year ended Dec 31, 2011 (FY2011) compared with a net profit of RM6.813 million a year ago.Revenue for the year declined to RM459.045 million from RM541.807 million.

The losses are due to the cessation of group's subsidiary in the United Kingdom, Citech Energy Recovery Systems UK Ltd (Citech), which resulted in expenses amounting to and#163;6 million or about RM30 million, the company said in a statement today.

The losses were also due to impairment of receivables and high operating expenses at the engineering equipment division at Tanjung Offshore Services Sdn Bhd, Tanjung CSI Sdn Bhd and Tanjung PetroConsult Services Sdn Bhd, it added. -- Bernama



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Bursa reprimands Nam Fatt

Bursa Malaysia Securities Berhad (Bursa Securities) has publicly reprimanded Nam Fatt Corporation Berhad (NAMFATT) for failing to make an immediate announcement on several material litigations.

In a statement today, Bursa said it had also publicly reprimanded Nam Fatt for not complying with its directives of Oct 9 and Nov 5, 2008 to make an immediate announcement on litigations.

Bursa Securities has also publicly reprimanded and fined all of NAMFATT's seven directors a total of RM 250,000. -- Bernama



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TDM’s 4Q earnings up 44.5% to RM44m, boost from CPO

KUALA LUMPUR (Feb 28): TDM BHD []'s earnings jumped 44.5% to RM44.34 million in the fourth quarter ended Dec 31, 2011, from RM30.68 million a year ago, on the back of higher crude palm oil (CPO) production and CPO prices.

It said on Monday its revenue increased by 4.2% to RM135.42 million from RM129.97 million a year ago. Earnings per share were 18.69 sen from 13.59 sen a year ago.

The group also revalued its assets, which resulted in a surplus of RM287.6 million for the financial year.

For the financial year ended Dec 31, 2011, the group’s revenue increased by 27.6% to RM503.23 million from RM394.41 million while net profit rose 70.9% to RM156.85 million from RM91.74 million.



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Warisan TC Hldgs posts higher profit of RM22.6m

Warisan TC Holdings Bhd has reported a higher profit before tax of RM22.638 million for the year ended Dec 31, 2011 from RM20.039 million previously.

Revenue for the period concerned was higher at RM470.423 million from RM363.816 million previously, it said in its filing to Bursa today.

Higher profitability was contributed mainly by machinery, travel and car rental as well as automotive divisions.

As for the quarter ended Dec 31, 2011, profit before tax increased to RM5.605 million from RM4.568 million previously. -- Bernama



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Cocoaland pre-tax profit surges to RM21.7m

Cocoaland Holdings Bhd's pre-tax profit for the financial year ended Dec 31, 2011, surged to RM21.659 million from RM8.303 million previously. Revenue rose to RM173.994 million compared with RM142.259 million a year ago.

For the fourth quarter to Dec 31 2011, pre-tax profit rose to RM9.836 million from RM1.582 million in the same period in 2010, while revenue increased to RM51.401 million from RM38.445 million before.

The company said the better performance was mainly due to higher demand especially for Fruit Gummy and beverages products.

"The significant increase in pre-tax profit was mainly due to higher margin sales mix and improvement in cost effectiveness in our beverages production lines," it said in a filing to Bursa Malaysia today.

The company is optimistic of achieving satisfactory results in 2012 fiscal year. -- Bernama



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Malaysia Airports: Passenger traffic up 11pc

Malaysia Airports Holdings Bhd (MAHB) said today that the January passenger volume at its airports grew 11 per cent compared with January last year.

International passenger movements increased by eight per cent while domestic passenger movement was up 13.9 per cent, MAHB said in a filing to Bursa Malaysia.

Apart from the economic and political fundamentals, growth was also partly driven by Chinese New Year festive season.

Apart from Lion Air of Indonesia recommencing its operations at KLIA, AirAsia, Firefly and a number of foreign airlines increased their frequencies at the airports operated by the group.

"The largest growth in international passengers at KLIA was recorded by foreign carriers, which grew 19.8 per cent year-on-year," it said.

Most of airports operated by the group recorded double-digit growth in domestic and international movements.

Cargo movements, on the other hand, continued to decline in tandem with global and regional trade. The unpredictable economic condition in Europe and the United States will continue to be a challenge for the cargo sector, it said.

Total aircraft movements at MAHB's airports increased by 5.2 per cent. International and domestic aircraft rose by 4.1 per cent and 5.8 per cent, respectively, it added. -- Bernama



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E&O 3Q net profit up 385% to RM15.3m on yr, 9-month RM81m

KUALA LUMPUR (Feb 27): Eastern & Oriental Bhd posted a strong set of results for the third quarter ended Dec 31, 2011 with earnings up 385% to RM15.36 million from RM3.16 million a year ago boosted by stronger property’s sales.

It said on Monday its revenue jumped 221% to RM123.12 million from RM41.08 million. Earnings per share were 1.4 sen compared with 0.3 sen.

E&O said the revenue of RM123.12 million and a profit before tax of RM27.67 million for the quarter ended Dec 31, 2011 was higher when compared with the immediate preceding quarter ended Sept 30, where group revenue was RM82.60 million and profit before tax of RM18.202 million.

The group attributed the higher revenue and profits to its PROPERTIES [] segment, which had a higher percentage recognition from current locked-in sales and the steady development progress of its projects.

Sales from its newly launched Seri Tanjung Pinang also contributed to the increased performance.

For the nine-months ended Dec 31, 2011, the net profit jumped 338% to RM81.09 million from RM18.47 million while the revenue increased by 83.8% to RM281.60 million from RM153.21 million.

“The increase in revenue was mainly from properties segment which registered an increase of RM118.38 million.The hospitality and restaurants segment also shown an increase of RM10.058 million, whereas the investment holding and others segment shown a slight decrease,” it said.



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Hong Leong hopes to maintain growth in 2012

Hong Leong Bank expects to maintain a double-digit growth in loans for 2012 fiscal year, driven by domestic demand from business banking sector as well as fee-based income.

Group managing director/chief executive, Yvonne Chia, said the growth, although projected to be lower than last year's 12.8 per cent, was still encouraging given the current global economic situation.

"In the last two months, the drawdown of banking loans has been more from the business segment. So we expect that momentum to go on," she told reporters at a briefing to announce the bank's second quarter results here today. To date, loans growth was at 10 per cent.

Chia said the bank is also eyeing to tap into new segments such as the growing Islamic segment, the tech-savvy younger generation segment as well as the bigger opportunity offered by the growing intra-trade between Asean and China.

The bank is also focusing on integrating its information technology (IT) platforms, internet and mobility to add more applications that could enhance its services.

"The IT infrastructure is in place...We just need to further add value to it," she said.

Asked on the impact of the tighter regulation for new loans implemented by Bank Negara Malaysia, she said the new rule is not expected to affect the bank's loans growth.

She said loan consumption in Malaysia was still considered strong, despite the recent drop in loans which was seen as seasonal due to festive celebration.

"We just have to continue to run the business like we used to do. At the end of the day, it is about how well we know our customers," Chia said.

She also added that the bank is striving towards higher contribution from business banking compared to the current situation, where consumer banking accounts for some 70 per cent of its loan applications.

Meanwhile, on return on equity, she said the bank is on track to achieve its 17 per cent target.

She also said the bank would need to enhance its fee-based income by leveraging on the merged Hong Leong Bank-EON Bank Group's distribution and enlarged customers base, improving customer flow for transaction and remittance businesses, foreign exchange flow, trade finance as well as adding more regional asset. -- Bernama



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Genting Plant pre-tax profit up 37%

Genting Plantations Bhd's pre-tax profit for the year ended Dec 31, 2011 hit a record RM601.3 million, up 37 per cent from a year earlier. Revenue was 35 per cent higher year-on-year at RM1.34 billion in 2011, while earnings per share increased 36 per cent to 58.25 sen.

In its filing to Bursa Malaysia, the group said its strong performance in 2011 was underpinned primarily by higher palm product prices and higher production of fresh fruit bunches (FFB).

The group achieved average selling prices for crude palm oil and palm kernel of RM3,240 per metric tonne and RM2,235 per metric tonne respectively in 2011, an increase of 18 per cent and 27 per cent respectively over the previous year.

Moving ahead, the group said its performance will be influenced by, among others, the direction of palm products prices, which in turn would be mainly determined by factors such as global economic prospects, changes in weather patterns, the regulatory environment in major consuming countries and the supply of competing crops.

On the production front, growth in the group's FFB output will be underpinned mainly by the Indonesia operations, with more areas planted in previous years progressively reaching maturity over the course of the year. -- Bernama




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Tricubes posts Q3 pre-tax losses

Tricubes Bhd, the enabler of the 1Malaysia email account, saw its nine-month pre-tax loss widened to RM2.94 million as at Dec 31, 2011 from RM225,000 pre-tax loss in the same period in 2010.

Its revenue also declined to RM8.08 million from RM11.629 million previously, it said in a filing to Bursa Malaysia today.

Tricubes said the 1Malaysia email project and the appointment by the Royal Malaysian Police as the collection agent of traffic summons via automated teller machines and enquiry of summons through SMS, were expected to have a positive impact to the results in 2012 and subsequent years. -- Bernama



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Kimlun awarded RM72m job

Kimlun Corporation Bhd's unit, Kimlun Sdn Bhd, has secured a RM71.991 million contract from Tanah Sutera Development Sdn Bhd to undertake the construction of an extension building, ancillary building and alteration of an existing shopping mall in Johor Bahru.

In a filing to Bursa Malaysia today, the company said the project was expected to be completed by end-November and contribute positively to the earnings and net assets of the group for this year.

With the award, the group's estimated outstanding order book stood at approximately RM1.45 billion. -- Bernama



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Petronas Chemicals 3Q net profit RM735m, 9-month RM2.6 bn

KUALA LUMPUR (Feb 27): Petronas Chemicals Bhd posted total comprehensive income of RM735 million in the third quarter ended Dec 31, 2011, down 17.4% from RM890 million a year ago.

It said on Monday that profit for the quarter was lower by RM172 million or 17% at RM826 million.

“This follows lower contribution from our associates and jointly controlled entity as a result of lower production and full utilisation of tax benefits in one of the associate companies in the previous year,” it said.

Petronas Chemicals said it recorded higher production with improved plant utilisation driven by the fertilizer and methanol business segment. However, the olefins and derivatives business segment recorded lower production after a strong performance in the corresponding quarter.

Group revenue was RM3.904 billion, up RM9 million or 0.2% from RM3.895 billion a year ago due to higher product prices and strengthening US dollar, which offset lower sales volumes in the quarter. Earnings per share were nine sen.

The directors proposed a single tier final dividend of 8.0 sen per ordinary share amounting to RM640 million.

For the nine-month period, its net profit was RM2.62 billion while revenue was RM11.88 billion due to higher prices for olefins and derivatives and fertilisers and methanol.

“The group achieved higher average prices by 29% overall. This more than compensated the effect of lower sales volume by 7% and exchange rate movements during the period,” it said.

Petronas Chemicals said the group’s share of profits from associates and jointly controlled entity declined by 50% to RM273 million as a result of lower production and full utilisation of tax benefits in one of the associate company.

Petronas Chemicals had on March 2, 2011 announced the change of financial year end from March 31, to Dec 31, beginning from April 2011.



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High oil prices rein in equities markets

KUALA LUMPUR: High oil prices reined in the regional markets and curb investors’ appetite for equities on concerns of the adverse impact on weaker economies, particularly in Europe.

Another nagging concern was whether Germany's parliament would support the Greek bailout.

At the close, the FBM KLCI managed to eke out a 0.27of a point gain to 1,559.04. Turnover was 1.64 billion shares valued at RM1.63 billion. Losers beat gainers 327 to 455, while 341 counters traded unchanged.

Japan's Nikkei 225 fell 0.14% to 9,633.93, Singapore's Straits Index 1.05% lower at 2,946.78, South Korea's Kospi 1.42% to 1,991.16 and Hong Kong's Hang Seng Index 0.88% to 21,217.86.

However, Shanghai’s Composite Index managed to close up 0.30% to 2,447.06 and Taiwan's Taiex 0.28% to 7,959.34.

Reuters reported Brent crude slipped below US$125 on Monday, flagging after five days of gains pushed oil to 10-month highs on worries tension over Iran's disputed nuclear programme could lead to a disruption in Middle East supplies.

Brent has risen 16% this year, after a 13.3 percent gain in 2011, helping weaken recent strong correlations with stock markets.

Meanwhile, the world's 20 leading economies, the G20, piled pressure on Germany at the weekend to drop its opposition to a bigger European bailout fund, telling Europe it must put up extra money if it wanted more help from other countries.

At Bursa Malaysia, penny stocks were among the most active. Naim Indah Corp added one sen to 52.5 sen while Envair also inched up one sen to 30.5 sen.

Harvest Court rose 18 sen to RM1.23 and the warrants 15 sen to 98 sen as speculative interest return to the stock.

Consumer stocks were top gainers, with Dutch Lady up RM1.70 to RM27.5, Carlsberg 25 sen to RM9.70, Panasonic Malaysia and Guinness Anchor, both up by 20 sen to RM21.20 and RM12.94 respectively.

Among the losers were Hong Leong Industries, down 22 sen to RM3.99, Malpac fell 20 sen to RM1.50. Latexx-WA fell 14 sen to RM1.14 and Latexx 13 sen to RM1.55.

However, consumer heavyweight Nestle fell 28 sen to RM54.92,

CIMB Equities Research said earlier on Monday it was maintaining its Underperform call on Nestle at RM55.20 with a target price of RM48.30.

“While we like Nestle’s defensive earnings and huge consumer base, its 27 times FY12 P/E is pricey. We reiterate our Underperform call (DCF-based target price), with the main potential derating catalyst being volatile commodity prices,” it said.



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Time Engineering posts net loss RM1.8m in 4Q

KUALA LUMPUR (Feb 27): TIME ENGINEERING BHD [] posted net loss of RM1.81 million in the fourth quarter ended Dec 31, 2011 compared with net profit of RM528,000 a year ago as revenue declined due to unfavorable ICT market conditions as well as competitive pricing for the awarded projects.

It said on Monday its revenue fell 26.9% to RM16.01 million from RM21.91 million. Its loss per share was 0.23 sen compared with earnings per share of 0.07 sen.

For FY2011, its earnings were RM87.49 million compared with RM8.19 million a year ago as it recorded a gain of RM91.93 million on disposal of investment.

Its revenue fell RM25.4% to RM65.34 million from RM87.69 million.

“Other than unfavorable ICT market conditions as well as competitive pricing for the awarded projects, the lower revenue in the current year was affected by the completion of the MAMPU project and supply of ICT Equipment for MIS Implementation in Vietnam,” it said.



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Kimlun’s order book at RM1.45 bn with RM72m Johor mall project

KUALA LUMPUR (Feb 27): Kimlun Corporation Bhd’s order book has increased to RM1.45 billion with the latest contract to build an extension to a shopping mall in Johor Baru for RM71.99 million.

It said on Monday its unit Kimlun Sdn Bhd had accepted the letter of award from Taman Sutera Development Sdn Bhd to construct the extension building and ancillary building and alter the existing building. Work is expected to be completed by end November 2012.

“With the award, the group’s estimated outstanding book order is approximately RM1.45 billion,” said Kimlun.



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CIMB 4Q net profit up 29.8% to RM1.133 bn, FY11 RM4 bn

KUALA LUMPUR (Feb 27): CIMB Group Holdings Bhd posted net profit of RM1.132 billion in the fourth quarter ended Dec 31, 2011, up 29.8% from RM872.61 million a year ago.

It said on Monday the 4QFY11 earnings were also 12% higher than the 3Q earnings. CIMB said its revenue was 6.1% higher at RM3.381 billion compared with RM3.185 billion. Its earnings per share were 15.24 sen compared with 11.76 sen.

CIMB Group also announced a second interim dividend of 10.0 sen amounting to a net payment of RM743 million. This brings the total FY11 dividends to RM1.635 billion or 22.0 sen, translating to a dividend payout ratio of 40.6% of FY11 profits.

For FY11, it posted a record net profit of RM4.031 billion for 2011, or up 15.1% when compared with RM3.500 billion in FY10. The FY11 net return on equity (ROE) was also a record high 16.4%, but below the group’s full-year target of 17%. Its revenue for FY11 was RM12.122 billion, up 2.05% from the RM11.878 billion in FY10.

Datuk Seri Nazir Razak, the group chief executive of CIMB Group said: "We delivered record profits and returns on equity in a year when revenue growth was subdued due to the high 2010 non-interest income base, compressing interest margins and our more cautious approach to asset growth.

“We managed costs well and drove down credit charges. I am therefore very pleased with our operating results and especially proud of the efforts and sacrifices made by most of our staff across the region this year. Our primary disappointment was our share price which significantly underperformed benchmarks,” he said.



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Petronas Chemicals profit falls to RM735m

Petronas Chemicals Group Bhd said quarterly net income fell to RM735 million from a re-stated RM873 million a year earlier, the Kuala Lumpur-based company said in an exchange filing today.

Revenue was little changed at RM3.9 billion in the three months to Dec. 31, it said. -- Bloomberg



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UMW renews partnership with Mercy Malaysia

UMW Holdings Bhd today renewed its partnership with Mercy Malaysia, providing the non-profit organisation over RM1.8 million in funds and more than 3,000 hours in manpower support.

The group also launched the new Employee Payroll-Deduction Scheme in benefit of Mercy Malaysia during a signing ceremony between UMW Holdings President/Group Chief Executive Officer Datuk Syed Hisham Syed Wazir and Mercy Malaysia President Datuk Dr Ahmad Faizal Mohd Perdaus here.

"More than 11,000 people have benefited from programmes implemented under the UMW-Mercy Malaysia partnership since it was formalised in December 2008," Syed Hisham said.

The programmes include mobile clinic missions which provide free basic medical screening, pap smear tests, dental treatment, eye examination and free reading glasses for those living in remote areas.

Fire safety and flood relief efforts, as well as intervention groups for alcohol misuse are also conducted as part of partnership agreement.

"From 2009 to 2011, UMW provided Mercy with approximately RM1.2 million in financial support for its Sabah and Sarawak chapter activities, which included Toyota vehicles and this year, UMW will offer financial support for Mercy Johor activities and Disaster Risk Reduction programmes for people with disabilities
in Selangor," he said.

Syed Hisham said UMW will be handing over two new Toyota vehicles (Hilux and Innova) to Mercy, bringing to a total of five vehicles for the purpose of carrying out Mercy Malaysia's community health programmes which will now will cover Sabah,Sarawak, Johor, Selangor and Kuala Lumpur.

Meanwhile, Dr Ahmad said the Labour Department had approved the Employee Payroll-Deduction Scheme and the non-profit organisation could apply the same template with other interested corporations as well. -- Bernama



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Market Commentary

The FBM KLCI index gained 0.27 points or 0.02% on Monday. The Finance Index increased 0.37% to 13913.15 points, the Properties Index dropped 0.18% to 1038.48 points and the Plantation Index down 0.22% to 8612.06 points. The market traded within a range of 7.58 points between an intra-day high of 1565.87 and a low of 1558.29 during the session.

Actively traded stocks include NICORP, CSL, FOCUS-WB, HARVEST-WA, ENVAIR, ASIAEP, IFCAMSC, HARVEST, PDZ and GOCEAN. Trading volume decreased to 1642.24 mil shares worth RM1633.98 mil as compared to Friday’s 1695.08 mil shares worth RM1941.07 mil.

Leading Movers were CIMB (+8 sen to RM7.14), YTL (+4 sen to RM1.54), TM (+7 sen to RM5.15), AMMB (+8 sen to RM6.11) and RHBCAP (+20 sen to RM7.86). Lagging Movers were GENM (-6 sen to RM3.81), IOICORP (-3 sen to RM5.40), PBBANK (-4 sen to RM13.62), SIME (-3 sen to RM9.57) and MAYBANK (-2 sen to RM8.75). Market breadth was negative with 327 gainers as compared to 455 losers. -- JF Apex Securities Bhd



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Carlsberg yet to decide on new pricing

Carlsberg Brewery Malaysia Bhd, anticipating a 20 per cent increase in raw material prices and inflation at around three per cent this year, is expected to increase the price of its beer this year but has yet to decide on the quantum.

"The price will be increased, but it is certainly not in double digit. We will never jump to something as dramatic as double digit (percentage rise)," said its Managing Director, Soren Ravn, at a media briefing on the company's financial performance today.

"I don't think it will be possible for us to compensate the expected increase in raw material prices this year," he said.

Carlsberg Malaysia, which is estimated to capture around 41 per cent share of the beer market in Malaysia, last increased the price by three per cent in April 2011.

Ravn said the company will be investing more in advertising and promotion this year with the UEFA Euro 2012 football championship to be held in June as a key catalyst. The Carlsberg Group is the beer sponsor for UEFA Euro 2012.

On the beer market in Malaysia, Ravn said he expected it to grow this year but at a couple of per cent.

Singapore meanwhile will be growing at twice the rate of Malaysia because of its large expatriate population and no import duties, he added.

The growth will therefore come from selling more premium beer and more channel mix, he said, adding that the rate of the market growth here was more similar to Europe rather than China and India as both were growing at double digit.

He said Carlsberg Malaysia also aimed to produce more premium beer locally, starting with the Asahi Super Dry at the end of 2011 and the Kronenbourg in three to six months.

Ravn also expected Carlsberg to increase its market share in the premium beer segment up to 20 per cent this year from around 16 per cent currently with the key contributor being Asahi Super Dry beer.

He also said there were other Asian markets which had indicated that they were keen to source premium beer from Malaysia.

Carlsberg Malaysia aims to be the regional hub for their beer in the Asian market, he said, adding that it would start with Singapore, later Hong Kong or China.

Carlsberg Malaysia's profit after tax for the financial year ended Dec 31, 2011 rose 24.8 per cent to RM167.4 million. -- Bernama



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UMW expects higher revenue, profit

UMW Holdings Bhd expects its revenue and profit to increase by five per cent to eight per cent this year bolstered by higher contribution from its automotive segment.

President and group chief executive officer, Datuk Syed Hisham Syed Wazir, said the group planned to launch new and facelift models this year and they were expected to boost demand.

"We just launched the new Toyota Avanza, Prius and Prius C. We will launch the new Camry in June and facelift Vios soon," he told Bernama after a parnership signing ceremony between UMW Holdings and Mercy Malaysia here today.

UMW Group is an international conglomerate that develops industries, manages partnerships and facilitates growth in automotive, equipment, manufacturing and oil and gas sector.

Meanwhile, in a statement, UMW Holdings said it expected UMW Toyota and Perodua to sell a total of 281,000 cars this year, a 3.9 per cent increase, or 10,560 cars, compared with last year.

The group also expected the revenue of the oil and gas segment to improve this year and it was currently in discussion with few parties pertaining to collaboration in oil and gas, manufacturing, engineering and equipment, it said.

It said operating profit of the oil and gas segment was expected to improve this year in consideration of a full-year contribution from Naga 3 as well as higher day-rates for its land righs, Ghazal 3 and 4 as well as a full-year contribution from Ghazal 5.

Profits would also improve further with the installation and commissioning of equipment and facilities for the Garraf Power Plant in Iraq which was expected to substantially completed this year, it said.

UMW Holdings' pre-tax profit for financial year ended Dec 31, 2011 rose by 5.2 per cent to RM1.381 billion from RM1.313 billion in the same period the previous year.

Revenue increased by 5.7 per cent to RM13.556 billion from RM12.280 billion previously. -- Bernama



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KL shares close marginally higher

Shares of the following companies had unusual moves in Malaysia trading. Stock symbols are in parentheses and prices are as of the close in Kuala Lumpur. The FTSE Bursa Malaysia KLCI Index rose 0.27 point, or less than 0.1 per cent, to 1,559.04.

DRB-Hicom Bhd, an automotive, construction and property group, dropped 2 per cent to RM2.52, its lowest close since Jan. 26. Third-quarter net income slipped 28 per cent from a year earlier to RM79.6 million, the company said in a stock-exchange filing.

Dutch Lady Milk Industries Bhd, a dairy-products maker, jumped 6.6 per cent to RM27.50, a record close. The company declared a dividend of 50 sen per share and a special dividend of 80 sen after fourth-quarter profit more than doubled to RM28.4 million from RM10.8 million a year earlier, according to an exchange filing.

KLCC Property Holdings Bhd, the owner of Kuala Lumpur’s Petronas Twin Towers, gained 3.7 per cent to RM3.40, its highest close since July 22. Its third-quarter profit jumped to RM518.7 million from RM67.8 million a year earlier, the company said in a statement.

Latexx Partners Bhd, a rubber-glove maker, slid 7.7 per cent to RM1.55, its largest loss since July 25. Its fourth-quarter profit slumped to RM926,000 from RM5.6 million a year earlier, according to an exchange filing.

Oriental Holdings Bhd, a vehicle assembler, advanced 2.8 per cent to RM6.24, its highest close since Feb. 23. The company may be bought out by its single-largest shareholder, the Star newspaper reported, citing a person it didn’t name. Robert Wong and Lim Su Tong, managing directors at Oriental, weren’t immediately available for comments when contacted at their office.

Silk Holdings Bhd gained 2.5 per cent to 40.5 sen, its highest close since Feb. 22. PLUS Expressways Bhd is interested in buying the highway toll concessions of Silk and Lingkaran Trans Kota Holdings Bhd, the Edge newspaper reported, citing people it didn’t name. Lingkaran added 0.8 per cent to RM4.03, its highest close since Dec. 6, 2007.

Silk Executive Chairman Mohammed Azlan Hashim didn’t immediately reply to an e-mail by Bloomberg News seeking comments. Lingkaran Executive Director Yusoff Daud wasn’t in the office when phoned. -- Bloomberg



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CIMB, Royal Bank of Scotland in talks

CIMB Group Holdings Bhd Chief Executive Officer Nazir Razak said the Malaysian bank is in talks to buy part of the Asian investment banking operations of Royal Bank of Scotland Group Plc.

Nazir spoke to reporters in Kuala Lumpur today. -- Bloomberg



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CIMB Q4 net profit rises to RM1.13b

CIMB Group Holdings Bhd, Malaysia’s second-biggest bank, said fourth-quarter net income rose to RM1.13 billion from RM872.6 million a year earlier, it said in a statement today. -- Bloomberg



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Boustead reports RM831m pre-tax profit

Boustead Holdings Bhd has registered a pre-tax profit of RM831 million for the financial year ended Dec 31, 2011, a 14per cent jump from RM726.2 million the previous year.

Revenue rose to RM8.555 billion from RM6.181 billion.

In a filing to Bursa Malaysia today, the company said the hike in revenue and profit was mainly due to higher sales volume from its business segments,including 31 per cent increase in revenue for the manufacturing and trading division.

The plantation division's revenue increased by 28 per cent, mainly on stronger palm product prices and better fresh fruit bunches crop. - Bernama



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HLFG 2Q net profit dn 70.3% to RM234m on-yr on one-off items booked yr ago

KUALA LUMPUR (Feb 27): HONG LEONG FINANCIAL GROUP BHD [] reported its net profit in the second quarter ended Dec 31, 2011 fell 70.3% to RM234.10 million from RM788.46 million mainly due to several one-off items being booked a year ago.

It said on Monday that its revenue fell 19.7% to RM1.043 billion from RM1.30 billion. Earnings per share were 22.60 sen compared with 76.10 sen.

For the first half, its net profit fell 56.2% to RM486.30 million from RM1.11 billion in the previous corresponding period while revenue was 5.3% lower at RM1.963 billion from RM2.073 billion.

Elaborating on the financial performance in 1H ended Dec 31, 2011, it said the decrease was mainly due to several one-off items being booked last year (1HFY11), namely a RM175 million one-off life insurance surplus transfer and a gain on the transfer of Hong Leong Assurance Berhad’s (HLA) general insurance business of RM619 million.

“Excluding these non-recurring one-off items, the ‘normalised’ profit before tax recorded a growth of 37.6% y-o-y in 1HFY12, driven positively by the results of HONG LEONG BANK BHD [],” it said.

It said that its commercial banking division, Hong Leong Bank achieved a growth in profit before tax of 48.7% on-year for 1HFY12.

“This was due to higher earnings from the enlarged banking group segments, lower allowances for impaired loans (decreased RM60.9 million on-year) and a higher share of earnings from 20%-owned associate Bank of Chengdu Co., Ltd (profit after taxation up 18.7% on-year),” it said.

HLFG said the growth was achieved despite one-time costs of RM115 million being booked for the recently concluded voluntary separation scheme exercise in December.



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Market mixed midday, concerns over high oil price

KUALA LUMPUR (Feb 27): Blue chips were higher at midday on Monday, buoyed by CIMB and Telekom but the broader market was mixed as investors’ sentiment was cautious about the impact of higher oil prices on the global economy.

The FBM KLCI rose 2.66 points to 1,561.43. Turnover was 851.34 million shares valued at RM730.13 million. There were 340 gainers, 330 losers and 310 stocks unchanged.

Brent crude eased slightly but stayed around 10-month highs above US$125 per barrel amid escalating tension over Iran's disputed nuclear programme, according to Reuters. Investors concerns were whether it could break through US$130.

US light crude oil fell 40 cents to US$109.37. Crude palm oil prices for third-month delivery rose RM20 to RM3,296 per tonne. The ringgit weakened against the US dollar to 3.0162.

Key regional markets which fell included Japan’s Nikkei 225, South Korea’s Kospi and Singapore’s Straits Times – three countries which are heavily dependent on imported crude oil.

At Bursa Malaysia, Dutch Lady rose RM1.70 to RM27.50 and Carlsberg 35 sen to RM9.80 while Guinness Anchor added 16 sen to RM9.10. Among PLANTATION []s, Batu Kawan added 24 sen to RM18.80 and Chin Tek 15 sen to RM9.10.

CIMB added eight sen to RM7.14, pushing up the KLCI by 1.41 points, Telekom added seven sen to RM5.15, nudging the KLCI up 0.59 of a point while AMMB’s six sen gain to RM6.09 pushed the index up by 0.42 of a point. RHB Capital rose 22 sen to RM7.88.

Naim Indah Corp was the most active with 99.48 million shares done, It added 3.5 sen to 55 sen. China Stationery rose 10 sen to RM1.20.

MBM Resources was the top loser, down 20 sen to RM4.42 on profit taking and also concerns about earnings per share dilution from its proposed rights issue.

BAT, SOP and MAHB lost 10 sen each to RM52.46, RM6.15 and RM5.70 respectively. Latexx fell 12 sen to RM1.56 and the warrants 10 sen to RM1.18.



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Boustead Holdings 4Q earnings dn 8.6% to RM192.30m

KUALA LUMPUR (Feb 27): BOUSTEAD HOLDINGS BHD []’s net profit fell 8.6% to RM192.30 million in the fourth quarter ended Dec 31, 2011 from RM208.90 million a year ago.

It announced on Monday its revenue jumped 51% to RM2.554 billion from RM1.689 billion. Earnings per share were 18.59 sen compared with 20.20 sen. It proposed dividend of 9.0 sen.

For FY11, its earnings rose 13.6% to RM610.60 million from RM537.50 million in FY10. Its revenue increased 38.4% to RM8.55 billion from RM6.18 billion.

Boustead said for FY11, the PLANTATION [] division delivered RM299 million in profit compared with RM183 million in FY10.

“In addition, the division also benefitted from a gain from the disposal of plantations amounting to RM95 million. The average CPO price realised was RM3,272 per tonne, an increase of 25% over last year’s average of RM2,622 per tonne,” it said.

As for the property division, it registered a 52% increase in profit to RM211 million compared with RM139 million a year ago.

“Fair value gain and increased rental income were the key factors which contributed to the division’s earnings,” it said.

Boustead said its trading and manufacturing division recorded a profit of RM113 million, up 20% from RM94 million in 2010.

“The division performed well this financial year due to strong earnings derived from Boustead Petroleum Marketing Sdn Bhd mainly due to increased volumes from all product lines, stronger operating margins that were achieved through cost optimisation and improved operational efficiencies,” it said.

As for the pharmaceutical division, it registered profit of RM68 million, of which RM40 million was from Idaman Pharma Manufacturing Sdn Bhd for the year under review.

However, the finance and investment division registered a profit of RM45 million during the year under review compared with RM144 million in the previous financial year.

In FY10, the profit included gains from the disposal of BH Insurance Bhd amounting to RM75 million. AFFIN HOLDINGS BHD [] contributed a record profit of RM106 million to the Boustead Group.

As for the heavy industries division, it reported a break-even result compared with last year’s profit of RM146 million due to higher finance charges and the turbulent global economic climate that impacted the division.

Boustead was positive on the outlook as it expected the division to perform well given that the CONSTRUCTION [] of the second generation patrol vessels would be undertaken in the coming financial year.



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Bumi Armada 4Q net profit up 13% to RM124.76m, FY11 RM359m

KUALA LUMPUR (Feb 27): Bumi Armada Bhd’s net profit rose 13% to RM124.76 million in the fourth quarter ended Dec 31, 2011 from RM110.37 million.

The international offshore oilfield services provider announced on Monday that its revenue was flat at RM370.85 million from RM371.16 million. Earnings per share were 4.26 sen compared with 5.55 sen. It proposed a dividend of 2.5 sen per share.

For FY11, its earnings were just 2.4% higher at RM359.67 million from RM350.745 million. Its revenue increased by 24.3% RM1.543 billion from RM1.241 billion, driven by higher activity across all business segments.

Its operating EBITDA increased 26% (RM185.5 million) to RM 899.6 million in the same period.Its executive director and chief executive officer Hassan Basma said the group managed to secure two floating production storage and offloading (FPSO) contracts last year from the six it tendered.

"This is impressive considering that only nine FPSO contracts were tendered last year," he said at a media briefing.

He added that utilisation of its OSV fleet increased to over 90% in the second half of last year and full operations of new vessels also contributed to the growth.

Moving forward, Hassan said the group is looking to secure two FPSO contracts this year.

"We are also looking at increasing our FPSO fleet and is anticipating capital expenditure of US$800 million (for this purpose) this year," he said. The group currently has five FPSOs.

He added that it is looking to increase its OSV fleet to between 80 and 100 units in the next four to five years. It currently owns over 40 OSVs.



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Hong Leong Bank 2Q net profit up 30.8% to RM381m

KUALA LUMPUR (Feb 27): HONG LEONG BANK BHD []’s earnings rose 30.8% to RM381.37 million in the second quarter ended Dec 31, 2011 from RM291.43 million.

It said on Monday its revenue surged 66.1% to RM1.003 billion from RM603.96 million. Its earnings per share were 24.22 sen compared with 20.07 sen. It declared an interim dividend of 11 sen compared with nine sen.

HL Bank group managing director and chief executive, Datuk Yvonne Chia, said “Our second quarter performance continues to deliver the value of the merger to our customers, staff shareholders and wider community.”

Chia said the bank’s focus on delivering merger synergies saw Hong Leong achieve annualised synergies of RM191 million in the first six months of vesting, well ahead of the first full year target of RM180 million annualised savings.

HL Bank said total shareholder equity increased to RM10.6 billion from RM7.5 billion as at June 30, 2011.

As for customer loans, financing and securities, they totalled RM 114.8 billion, representing an annualised growth of 26% from 30 June 2011 levels.

Customer deposits were at RM119.2 billion, an annualised growth of 7.6% from June 30, 2011 levels

For the first half, its earnings rose 43.7% to RM788.48 million from RM548.63 million in the previous corresponding period. Its revenue increased by 67.8% to RM1.920 billion from RM1.143 billion.



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HwangDBS keeps 'buy' call on TM

Telekom Malaysia Bhd (TM) gained nine sen or 1.77 per cent to RM5.17 as at 11am today, buoyed by the better-than-expected financial results reported by the utility company last year.

HwangDBS Vickers Research said the telco player recorded a strong finish for2011 where its fourth quarter 2011 earnings were 49 per cent higher,year-on-year, due to tax incentive from last mile broadband investment and higher turnover.

"We believe Unifi will continue to drive TM's financial year 2012 forecast topline through steady increases in net adds, where 24 per cent of 1.1 million premises passed are Unifi subscriptions," it said in a statement today.

The research firm did not foresee much competition for the year as Maxis Home Broadband's full services would only be launched at the beginning of the second half of the year.

HwangDBS put the price target for TM at RM5.30 and maintained its buy recommendation, backed by its current supremacy in high-speed broadband packages and sustainable earnings momentum.

"However, further tax incentives, which are due to expire in September 2012,have yet to be priced in," it said. -- Bernama



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MBM Resources down on rights issue plan, EPS dilution concerns

KUALA LUMPUR (Feb 27): Shares of MBM Resources were the top loser on Monday on investors’ concerns of earnings per share (EPS) dilution after it proposed a renounceable rights issue of 73.65 million.

At 12.30pm, it was down 20 sen to RM4.42 with 1.20 million shares done. It fell to an intra-morning low of RM4.37.

The FBM KLCI was up 2.66 points to 1,561.43. Turnover was 851.34 million shares valued at RM730.13 million. There were 340 gainers, 330 losers and 310 stocks unchanged.

However, the decline in the share price would also be due to profit taking since the share price had risen from RM3.69 on Jan 27. It reached an intra-day high of RM4.96 last Friday before closing at RM4.62.

Last Friday, MBM Resources had proposed a bonus issue of up to 73.65 million new shares on the basis of three bonus shares for every 10 existing shares held.

It also proposed the rights issue of up to 73.65 million new rights shares together with up to 73.65 million new free detachable warrants on the basis of three rights shares with three free warrants for every 10 existing shares.

OSK Research said MBM Resources’s FY11 earnings were within estimates.

“Given the group’s aggressive expansion, it has announced a rights issue with detachable warrants to fund its plans, as well as a bonus issue to reward shareholders and boost liquidity in its stock,” it said.

The research house said while the enlarged share base and potential 38% dilution to EPS were cause for concern, “we think there is potential price upside as MBM’s total consolidated earnings (including that from newly-acquired Hirotako), could surge by some 50% in FY12”.

“With the stock’s better liquidity and dominance in the auto industry, our SOP-based FV is RM5.34. Hence, we upgrade MBM from SELL to BUY,” said OSK Research.



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MARC suspends rating on Trinity Corp’s debt notes

KUALA LUMPUR (Feb 27): Malaysian Rating Corp (MARC) has suspended its B+ID rating on Trinity Corporation Bhd's (formerly TALAM CORPORATION BHD []) settlement Bithaman Ajil Islamic Debt Securities.

The rating agency said on Monday Trinity had failed to provide important information for the rating agency to carry out its rating surveillance. The outstanding amount of the settlement BaIDS was RM98.2 million as of Feb 24, 2012.

“MARC is unable to carry out its rating surveillance in the absence of Trinity’s business plans, in particular its asset divestment plans, proceeds from which are expected to fund its payment obligations for the settlement BaIDS.

“The rating agency may reinstate the suspended rating if the information required becomes available. Alternatively, MARC will likely withdraw the rating within the next 90 days if the requested information is not forthcoming,” MARC said.



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Envair sees 5.6% stake crossed off-market

KUALA LUMPUR (Feb 27): Envair Holdings Bhd’s 6.70 million shares or 5.65% stake were transacted in an off-market deal on Monday at an average price of 20 sen each, which was 32.2% below Friday’s closing price of 29.5 sen.

The stake is believed to have been disposed of by an executive director Datuk Seri Ung Eng Huat.

Ung had on Feb 16 announced his intention to deal in the shares. His shareholding was 6.70 million shares.

At 11.46am, Envair share price was up 0.5 sen to 30 sen.

Envair’s core business includes providing clean room facilities for the semiconductor industry and pharmaceutical sector and it is also involved in industrial water treatment systems.



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China Stationery rises on active trade

Integrated plastic stationery manufacturer China Stationery Ltd (CSL) that made its debut on the Main Market of Bursa Malaysia on Friday, continued to gain in active trade today.

At 11am, it jumped 11 sen or 10 per cent to RM1.21 with 558,704 lots traded.

The seventh Chinese company on the Bursa Malaysia, had on Friday opened at 98 sen, three sen higher than its issue price. -- Bernama



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KLCC rises on Q3 profit jump

KLCC Property Holdings Bhd, the owner of Kuala Lumpur’s Petronas Twin Towers, gained 3.7 per cent to RM3.40, on course for its highest close since July 22.

Its third-quarter profit jumped to RM518.7 million from RM67.8 million a year earlier, the company said in a statement. - Bloomberg




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MARC revises DRB-Hicom ratings outlook to negative

KUALA LUMPUR (Feb 27): Malaysian Rating Corp Bhd (MARC)has has revised the outlook on DRB-HICOM BHD []'s (DRB-Hicom) AA-IS sukuk rating on its RM1.8 billion Islamic Medium Term Notes (IMTN) programme to negative from stable.

It said on Monday the outlook revision recognises the potential weakening of DRB-HICOM's near-to-intermediate term financial profile due to its debt-funded acquisition of Proton Holdings Berhad (Proton).

DRB-HICOM is acquiring a 42.74% stake in the national automaker from Khazanah Nasional Bhd for a cash consideration of RM1.29 billion.

The total purchase price of Proton is estimated to be RM3.02 billion including the earlier purchase of 7.27% equity via open market and the cost of the remaining 49.99% stake to be acquired pursuant to a mandatory general offer (MGO).

Below is the statement issued by MARC:

A key rating issue for DRB-HICOM in the context of the Proton acquisition is the more challenging debt maturity profile that would result from acquisition-related interim financing decisions and the execution risk associated with plans to deleverage post-acquisition.

DRB-HICOM is in the midst of obtaining sukukholders approval to revise the proposed utilisation of proceeds from sukuk issued under the rated IMTN programme.

The sukuk proceeds will be used to part fund the acquisition of Proton as opposed to the pay-down of its bridging loan for DRB-HICOM's earlier acquisition of Pos Malaysia Berhad and other growth-related investments.

The repayment of the aforementioned RM622.8 million bridging loan will be extended by a year, and DRB-HICOM will incur additional short-to-medium term debt to finance the MGO.

MARC notes the heavy concentration of debt maturities in FY2014/15 that will occur as a result of the financing decisions, and significantly diminished financial flexibility on the part of DRB-HICOM.

DRB-HICOM's debt-to-equity is expected to increase to 0.64 times on a pro-forma basis respectively following the completion of the transaction, which is weak for the current rating.

DRB-HICOM's consolidated cash flow protection measures would foreseeably come under pressure without a commensurate increase in cash flow generation.

MARC's preliminary assessment of DRB-HICOM's post-acquisition cash flow metrics indicates a weakening of coverages to levels that are no longer consistent with the current rating.

While MARC understands that the holding company plans to place its financial profile on a more sustainable footing by undertaking asset disposals, in particular the divestment of a 30% stake in Bank Muamalat Berhad and insurer Uni Asia Capital Sdn Bhd, execution risks are noted given the general uncertainty around the timing of the targeted asset disposals.

Apart from the integration risks in absorbing the operations of Proton, MARC is also concerned that the lacklustre operating performance of the national automaker could pose a drag on the group's overall profitability. Integration difficulties, capex pressure at Proton and/or weaker-than-expected operating performance would exert pressure on DRB-HICOM's consolidated credit metrics.

MARC expects to resolve the negative outlook within the next six months after the closing of the acquisition. The rating agency expects to have greater clarity with respect to the strategic merits of the acquisition including potential synergies to be derived, and Proton's expected future level of cash flow generation and profitability by such time.

MARC's review will also consider the challenges associated with integrating Proton's operations into DRB-HICOM's automotive operations and the expected timeline to realise meaningful synergies.

The rating could be lowered if DRB-HICOM is unable to substantially reduce its debt in order to stabilise the rating outlook. Alternatively, the outlook could revert to stable if the group's post-acquisition earnings and cash flow generation measures suggest there is no material deterioration in the group's business and financial risk profiles, and DRB-HICOM successfully deleverages within the communicated timeline.



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Latexx slides on Q4 earnings slump

Latexx Partners Bhd, a rubber-glove maker, slid 3 per cent to RM1.63, headed for its lowest close since Oct 21.

Its fourth-quarter earnings slumped to RM926,000 from RM5.6 million a year earlier, according to an exchange filing. - Bloomberg



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Oriental advances on buyout report

Oriental Holdings Bhd, a vehicle assembler, advanced 3.5 per cent to RM6.28, set for its highest close since Febuary 23.

The company may be bought out by its single-largest shareholder, a local newspaper reported, citing a person it didn't identify.

Robert Wong, one of Oriental's two managing directors, couldn't immediately comment. - Bloomberg



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Dutch Lady jumps on dividends plan

Dutch Lady Milk Industries Bhd, a dairy-products maker, jumped 6.6 per cent to RM27.50, set for a record close.

The company declared a dividend of 50 sen per share and a special dividend of 80 sen after fourth-quarter profit more than doubled to RM28.4 million from RM10.8 million ringgit a year earlier, according to an exchange filing. - Bloomberg



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Multi-Purpose up on higher Q4 income

Multi-Purpose Holdings Bhd, a property and gaming group, added 1.8 per cent to RM2.85, bound for its biggest gain since Jan 31.

Fourth-quarter net income surged to RM260.1 million from RM85.2 million a year earlier, it said in an exchange filing. - Bloomberg



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Bandar Raya gains on Q4 net boost

Bandar Raya Developments Bhd climbed 3 per cent to RM2.37, headed for its steepest increase since January 19.

The property developer's fourth-quarter net income grew 50 per cent from a year earlier to RM38.6 million (US$13 million), it said in a stock-exchange filing. - Bloomberg



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RHB Research upgrades Telekom Malaysia to Outperform, FV unch RM5.85

KUALA LUMPUR (Feb 27): RHB Research Institute has upgraded Telekom Malaysia to Outperform but retained the fair value of RM5.85.

It said on Monday that TM’s 4Q core net profit of RM240 million (up 0.7% on-year; up 74.9% on-quarter) was above its but below consensus expectations.

“The key variance was lower-than-expected depreciation (-5.3% on-year; -7.7% on-quarter) due to extension of useful life on certain assets in line with industry practices,” it said.

RHB Research said as expected, TM declared a final single-tier dividend per share of 9.8 sen, bring FY11 DPS to 19.6 sen.

In addition, TM proposed a widely-anticipated 30 sen/share capital distribution (similar to FY10) payable in 3Q12.

“Fair value remains unchanged at RM5.85 based on 3.5% net yield assumption, and includes our assumption of another 30 sen capital distribution for FY12,” it said.



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China Stationery extends gains in early trade

KUALA LUMPUR (Feb 27): Shares of China Stationery Ltd (CSL) extended their gains on Monday in active trade as investors sentiment in the stock remained firm after the strong close on its trading debut last Friday.

At 9.29am, CSL was up 10 sen to RM1.20 with 21.90 million shares done.

The FBM KLCI rose 3.59 points to 1,562.36. Turnover was 259.59 million shares valued at RM149.26 million. There were 248 gainers, 135 losers and 192 stocks unchanged.

The stationery manufacturer's initial public offering, priced at 95 sen per share, raised RM85.50 million from its public issue of 90 million new shares.



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HDBSVR maintains Buy on Coastal Contracts, target price RM3.25

KUALA LUMPUR (Feb 27): HwangDBS Vickers Research (HDBSVR) is maintaining its Buy recommendation on Coastal Contracts with a target price of RM3.25.

It said on Monday that the 4Q11 net profit shrunk 7% on-year but up 41% on-quarter due to higher sales of lower-end vessels, which fetch lower margins (24% EBIT margin vs 4Q10’s 27%). Revenue was 8% higher on higher vessel sales recorded (13 units versus seven units in 4Q10).

As for the FY11 earnings, they were in line with market expectations at RM191 million.

“Besides its RM610 million outstanding order book as at January 2012 (which will last till end-2012), we expect further upside from additional sales through its business model of building ahead of demand,” it said.

HDBSVR said further, demand for offshore support vessels (OSVs) should be sustainable through strong replacement demand, as indicated by the divergence in utilisation rates of old fleets compared to new fleets.

“We believe Petronas’ increase in investment in the region will also benefit Coastal, given its solid track record and ability to supply new vessels within short lead times,” it said.



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Consumer stocks lead blue chips higher in early trade

KUALA LUMPUR (Feb 27): Consumer stocks led blue chips higher in early trade on Monday, with Dutch Lady and Nestle among the top gainers but in relatively thin trade.

At 9.04am, the FBM KLCI was up 6.86 points to 1,565.63. Turnover was 88.31 million shares valued at RM48.58 million. There were 146 gainers, 66 losers and 121 stocks unchanged.

Dutch Lady was the top gainer, up RM2.20 to RM28 while Nestle added 78 sen to RM55.98 and Carlsberg 43 sen to RM9.88.

Among PLANTATION []s, KLK jumped RM1.22 to RM24.70 and PPB 10 sen to RM17.20.

Other gainers were Oriental Holdings 19 sen to RM6.26, KLCCP 12 sen tp RM3.40 and AEON 10 sen to RM8.10.

Harvest Court Industries was up 13 sen to RM1.18 with 3.19 million shares done.



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HDBSVR sees marginal positive bias for equities

KUALA LUMPUR (Feb 27): Hwang DBS Vickers Research (HDBSVR) said in spite of a flattish Wall Street performance last Friday, the Malaysian stock market could show a marginal positive bias on Monday.

HDBSVR said the benchmark FBM KLCI may be eager to pull away further from the immediate support level of 1,555 ahead.

In terms of corporate developments, the focus will probably be on the slew of financial result announcements that were out last Friday evening.

On the positive side, Maxis rang up a pleasant surprise. But DRB-Hicom and Multi-Purpose Holdings posted below par earnings performances.

Meanwhile, investors could also be attracted by the following counters: (a) Litrak, after a business weekly reported that PLUS is eyeing to take over the highway assets of the toll concessionaire; and (b) MBM Resources, in response to a media report speculating that it is looking to expand into the auto assembly business.



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CIMB Research has technical sell on Aeon Co. at RM8

KUALA LUMPUR (Feb 27): CIMB Research has technical sell on Aeon Co (M) at RM8 at which it is trading at a price-to-book value of 2.3 times.

It said on Monday the breakout run from the triangle pattern in December is likely at its tail-end as the rally seems to be losing momentum. Prices could still push higher into the RM8.10-8.40 levels in the near term but the upside is likely capped.

“Technical weakness is starting to set in, calling for a more cautious approach. The potential upside compared to the downside risk is not favourable,” it said.

CIMB Research said it prefered to be more cautious and take some money off the table now, adding that the uptrend could be over if prices fall below RM7.68 and the next downside target is RM6.80-RM7.00.



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CIMB Research has technical sell on Hong Leong Bank at RM11.70

KUALA LUMPUR (Feb 27): CIMB Equities Research has a technical sell on Hong Leong Bank at RM11.70 at FY13P/E of 11.3 times and price to book value of 2.2 times.

It said on Monday the rebound from its September low has taken prices back up to above its 62% Fibonacci retracement levels. Thursday’s bearish engulfing pattern could potentially be the top of this rebound rally.

“Coupled with the bearish divergence on both its MACD and RSI, there is a good chance that this rebound has ended. Even if there is still upside, it would likely be capped around RM12.00-12.30, where the latter is its 78.6% FR levels.

“The stock is a sell on further rallies with a buy stop placed above RM12.30. One should also sell if prices close below the uptrend channel support at RM11.10. The next possible stop would be RM10.22,” CIMB Research said.



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CIMB Research maintains trading buy on Gamuda, target price RM4.45

KUALA LUMPUR (Feb 27): CIMB Equities Research is maintaining its trading buy recommendation on GAMUDA BHD [] at RM3.70 with a target price of RM4.45.

It said on Monday that PLUS Expressways Bhd is reportedly looking into taking over Gamuda’s Litrak, which would be good news for Gamuda if the price is right.

“Such a move would make sense but is unlikely to materialise soon. We retain our target price basis of 10% RNAV discount. A takeover move on Litrak would not have a big impact on RNAV but the proceeds could be used to bump up dividends.

“Maintain Trading Buy with project wins as catalysts. Gamuda remains one of our top sector picks,” CIMB Research said.



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CIMB Research maintains Underperform on Nestle, TP RM48.30

KUALA LUMPUR (Feb 27): CIMB Equities Research is maintaining its Underperform call on Nestle Malaysia at RM55.20 with a target price of RM48.30.

It said on Monday that Nestle’s 4Q11 briefing revealed a surprise 5%-6% increase in Milo’s price.

“But we do not expect fatter margins from this as Nestle has to contend with higher raw material prices and a possible increase in advertising and promotion costs for its 100th anniversary.

“While we like Nestle’s defensive earnings and huge consumer base, its 27 times FY12 P/E is pricey. We reiterate our Underperform call (DCF-based target price), with the main potential derating catalyst being volatile commodity prices,” it said.



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CIMB Research retains Outperform on Petronas Dagangan at RM18

KUALA LUMPUR (Feb 27): CIMB Equities Research is maintaining its Outperform call on Petronas Dagangan at RM18 and a target price of RM21.10.

It said on Monday a RM40 million special bonus for unionised non-executive staff is behind PetDag’s 8% earnings shortfall for the nine-month financial period ended Dec 31, 2011.

“We remain pumped over the retailer’s local and regional expansion plans,” it said.

CIMB Research said a third interim DPS and a special DPS totalling 50 sen took FY11 DPS to 80 sen.

“We continue to value PetDag at 17.6 times CY13 P/E, 40% premium over our target market P/E. The stock remains an Outperform and our big-cap oil & gas top pick,” it said.



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Stocks to watch: TM, Maxis, DRB-Hicom, SOP, MPHB

KUALA LUMPUR (Feb 25): Oil and gas and PLANTATION []s stocks could remain in focus following the high oil prices, providing some support for the local stock market and there could be some dividend-driven investors’ interest in stocks like Telekom Malaysia and Maxis Bhd.

The FBM KLCI, which had trailed its regional peers, saw analysts divided on the outlook for the week ahead.

A senior analyst with a bank-backed research house said the Malaysian stock market was expected to trade sideways with downside bias in the week ahead as the local performance pales in comparison with the regional markets.

He did not see any big surprises in the current October-December quarterly corporate results.

Among the companies to announce their results are PROTON HOLDINGS BHD [], MALAYSIAN AIRLINE SYSTEM BHD [] and SIME DARBY BHD [].

However, the head of retail research at Affin Investment Bank Dr Nazri Khan was a tad more upbeat for the local market.

“Going forward next week, we believe FBMKLCI is likely to have an upside bias on local market relative strength (holding up well despite the volatile February results season),” he said.

He cited external factors such as strong Germany resilience following the painful Greece’s bail-out deal, strong US equities, improved commodities price (crude palm oil, soybean, wheat, corn, gold start to track equities) and rising risk appetite in the global forex market (strong gains in emerging market currency including ringgit).

On Wall Street, the S&P 500 had on Friday closed at the highest level since before the collapse of Lehman Brothers in 2008, continuing a pattern of steady gains on signs of US economic recovery.

However, the continued high oil prices had also cast a pall of gloom over the flagging Euro zone economies with a recession seemed imminent for some weaker economies.

At Bursa Malaysia, Telekom Malaysia and Maxis Bhd would be among the top two stocks to watch on Monday after they announced dividends payouts last Friday while other stocks to watch include DRB-HICOM BHD [], SARAWAK OIL PALMS BHD [] and MULTI-PURPOSE HOLDINGS BHD [] (MPHB).

In a pleasant surprise, TM proposed a capital repayment to its shareholders of about RM1.073 billion or 30 sen per share and a final single tier dividend of 9.8 sen per share.

In terms of earnings, TM’s 49% increase to RM598.30 million in the fourth quarter ended Dec 31, 2011 was largely due to the recognition of deferred tax income on unutilised tax incentives in the current year quarter.

Maxis declared a fourth interim single-tier tax exempt dividend of 8.0 sen per share and also proposed a final single-tier tax exempt dividend of 8.0 sen per share for FY11. Its earnings increased 47.5% to RM900 million in the fourth quarter ended Dec 31, 2011 from RM610 million a year ago.

For FY11, it recorded 10% growth in net profit of RM2.527 billion versus RM2.295 billion in FY10. However, its revenue dipped to RM8.800 billion versus RM8.869 billion in FY10.

DRB-Hicom saw its earnings falling 27.6% for the third quarter ended Dec 31, 2011, to RM79.57 million from RM110.10 million as its automotive division was impacted by the severe floods in Thailand. Its revenue rose 5.6% to RM1.69 billion from RM1.60 billion a year ago.

Sarawak Oil Palms Bhd recorded a 60.35% increase in earnings to RM242.95 million in the financial year ended Dec 31, 2011 from RM151.51 million last year, boosted by higher sales and production of crude palm oil (CPO) and palm kernel. It said FY11 revenue increased by 60.7% to RM1.17 billion from RM728.16 million a year ago.

MPHB’s earnings more than doubled jumped to RM260.14 million in the fourth quarter ended Dec 31, 2011 (4Q2011) from RM85.21 million a year ago, boosted by an exceptional gain derived from the sale of PROPERTIES [] within the group. However, its revenue increased by 2.1% to RM913.91 million from RM894.45 million.



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Silverbird to face Bursa, SC

The company needs to explain delay in submission of audited statements

PETALING JAYA: It is a glaring anomaly when a listed company is late in producing its audited accounts.

Therefore, it will be no surprise to see senior executives of Silver Bird Group Bhd and representatives of its external auditors at the Bursa Malaysia and Securities Commission (SC) buildings this week following the company's announcement on Friday that it could not meet the Feb 29 deadline for the issuance of its audited financial statements for the year ended Oct 31, 2011.

“It's a given that we (the Silver Bird management and auditors Crowe Horwath) will have to engage with the authorities over the next few days to explain the circumstances behind the delay,” says a source close to the matter.

“They will surely provide Bursa Malaysia and the SC with more information than the explanation given in the Friday announcement to the exchange.

“The reason for failing to issue the outstanding financial statements within the relevant timeframe is due to the company needing more time to resolve audit queries raised by the auditors on Feb 22.”

Group managing director Datuk Jackson Tan Han Kook, declined to comment when contacted by StarBiz yesterday evening, saying he was in a meeting.

Silver Bird, which makes bread and confectionery, is required to issue its audited accounts within four months from its financial year-end. In the announcement, the company said it expected to issue the audited financial statements by May 31, adding that it was in the process of compiling the required details.

Under the listing rules, if Silver Bird fails to issue the audited accounts by March 7, trading in its securities will be suspended the day after.

Lembaga Tabung Haji is the company's largest shareholder, with 23.34%. Tan and Koperasi Permodalan Felda Malaysia Bhd are the other substantial shareholders, with 13.71% and 13.36% respectively.

According to its unaudited results for the fourth quarter ended October last year, Silver Bird recorded a profit of RM4.9mil for financial year 2011, a 35% jump from the previous year whereas revenue increased by only 3%.



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