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

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

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

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

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

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

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



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RHB Cap 4Q earnings dip to RM348m on stiffer competition

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

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

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

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

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

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

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

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



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Dijaya records 12.8% rise in 4Q earnings to RM39m

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

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

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

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

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



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

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

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

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

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

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



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TSM shareholders in RM159m takeover deal

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

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

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

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

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



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

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

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

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

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

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

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

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

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

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



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Eversendai records net profit of RM36m in 4Q

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

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

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

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

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

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

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

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

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



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

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

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

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

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

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



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KLCI struggles, key regional markets advance

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

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

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

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

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

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

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

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

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

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



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Market Commentary

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

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

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



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

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

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

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

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

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

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

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

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

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

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

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

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

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



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Tenaga to perform better in 2Q with RM2bn compensation

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

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

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

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

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

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



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

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

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

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

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

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



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

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

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

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

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

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

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

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

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

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



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

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

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

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

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

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

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

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



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

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

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

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

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

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

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

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

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



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

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

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

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

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

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



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

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

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

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

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

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

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



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JTI slumps in absence of special dividend

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

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

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

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

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



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

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

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

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

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

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

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

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



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

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

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

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

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

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

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



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

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

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

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

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

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

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

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

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



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CIMB Research has technical buy on BIMB at RM2.16

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

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

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

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



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

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

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

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

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



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CIMB Research maintains technical sell on Masterskill Education Group at RM1.04

KUALA LUMPUR (Feb 28): CIMB Equities Research is maintaining its technical sell call on Masterskill Education Group Bhd (MEGB) at RM1.04 at which it is trading at a FY13 price-to-earnings of 6.9 times and price-to-book value of 0.8 times.

It said on Tuesday that since its Sell call on Feb 10, prices have now fallen below the RM1.08 support. The breakdown of its triangle last week suggests that the next leg of selling is already underway.

“There is no change in its technical outlook for the near term as the near term trend remains down. Both its indicators also support the bearish near term trend. Nevertheless, there is potential for a bullish divergence forming but we will write on these pages if the longer term trend has changed,” it said.

CIMB Research said for now, the stock remains a sell targeting 90 sen to 95 sen, where a cluster of Fibonacci targets lie. A break above the apex of the triangle at RM1.15 would likely suggest that the longer term trend is about to change.



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CIMB Research maintains Hold on Boustead Holdings, lower TP of RM5.24

KUALA LUMPUR (Feb 28): CIMB Equities Research said BOUSTEAD HOLDINGS BHD []’s FY11 core net profit, which excluded RM247 million one-offs, was below expectations at only 87% of its forecast and 85% of consensus numbers.

It said on Tuesday that a weaker-than-expected heavy industries division weighed down group earnings.

“Despite factoring in higher CPO prices and a lower tax rate, we reduce our ex-bonus FY12-13 core EPS by 6.4%-6.6% due to slower progress billings for heavy industries and a lower contribution from Pharmaniaga which is now 67.2% owned instead of 98%m,” it said.

CIMB Research said it made several key changes to its RNAV computation 1) update for the current value of listed assets, 2) raise its PLANTATION [] valuation and 3) update Boustead’s stake in Pharmaniaga.

“The net effect is a rise in our RNAV value. But we pare down our RNAV-based target price from RM5.47 to RM5.24 as we now apply a 10% RNAV discount in view of its volatile earnings. We continue to rate Boustead a Hold as there are no immediate catalysts,” it said.



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Stocks to watch: CIMB, Cocoaland, TDM, Kimlun

KUALA LUMPUR (Feb 27): Market sentiment is expected to stay cautious on Tuesday as global equities pull back on concerns of strong oil prices’ weighing down already fragile economies in Europe.

At Bursa Malaysia, the corporate results should provide leads for investors as the reporting season draws almost to a close.

Among the stocks to watch are CIMB Group Holdings Bhd, COCOALAND HOLDINGS BHD [], TDM BHD [], Kimlun Corporation Bhd, Eastern & Oriental Bhd (E&O), Petronas Chemicals Bhd, HONG LEONG BANK BHD [], DRB-HICOM BHD [] and BOUSTEAD HOLDINGS BHD [].

CIMB 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. Its revenue was 6.1% higher at RM3.381 billion compared with RM3.185 billion. It announced a second interim dividend of 10.0 sen amounting to a net payment of RM743 million.

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%.

Cocoaland’s 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 announced a second interim dividend of 6% per share.

TDM'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.

Kimlun’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. Its unit accepted the letter of award from Taman Sutera Development Sdn Bhd for the project.

E&O 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. Its revenue jumped 221% to RM123.12 million from RM41.08 million.

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. Profit for the quarter was lower by RM172 million or 17% at RM826 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.

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. 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.

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 BHD [] (Proton).

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.

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.



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