Scomi Marine losses decline to RM116m

KUALA LUMPUR (Feb 29): SCOMI MARINE BHD [] posted a lower pre-tax loss of RM116.47 million for the financial year (FY) ended Dec 31, 2011, from RM206.186 million previously.

Revenue fell to RM390.82 million from RM409.029 million a year ago.

Scomi Marine said it remains cautiously optimistic on the outlook for the oil and gas industry amid challenges in the economic environment globally.

"There are signs of steady improvement from the emerging economies that will provide support for longer term energy demands.

"The group expects the maritime industry to benefit from increasing global demand of offshore activities in the region," the company said in a filing to Bursa Malaysia here.

The fundamentals driving the offshore support activities remain intact with more explorations expected in order to meet the increasing demand for energy.

This will augur well for the demand of offshore supply vessels and seaborne coal logistic solutions, it added.

The company said it is committed to continue to improve the productivity of its Indonesian coal transportation operations to derive better results for the group. - Bernama



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MMC Corp FY11 pre-tax profit jumps to RM1bn

KUALA LUMPUR (Feb 29): MMC Corp Bhd chalked up RM1.002 billion in pre-tax profit for the financial year ended Dec 31, 2011 from RM555.7 million registered in 2010.

Revenue increased to RM9.337 billion compared with RM8.564 billion recorded previously.

For 4Q2011, MMC Corp posted a higher pre-tax profit of RM376.72 million against RM46.86 million a year ago. Revenue increased to RM2.412 billion, from RM2.18 billion.

MMC Corp said the better results were driven by the energy and utilities segment. The group declared a four sen per share dividend for the just-ended financial year. - Bernama



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PPB Group's pre-tax profits dips to RM1bn

KUALA LUMPUR (Feb 29): PPB GROUP BHD []'s pre-tax profit for the financial year ended Dec 31, 2011 fell to RM1.01 billion from RM1.13 billion in 2010.

Its revenue, however, rose to RM2.71 billion from RM2.27 billion previously, it said in a filing to Bursa Malaysia on Wednesday.

For the fourth quarter ended Dec 31, 2011, PPB's pre-tax profit rose to RM226.05 million from RM185.91 million in the corresponding quarter in 2010. Revenue increased to RM744.20 million from RM614.78 million.

PPB said the group's management was actively monitoring the global economic challenges in order to implement appropriate measures to facilitate growth and continuation of the company's businesses.

"The group's operations are mainly located in the Asean countries and in China, and it is anticipated that the domestic consumption in these countries would remain robust in 2012.

"The group is optimistic it would be able to generate a satisfactory set of results in 2012," it said. - Bernama



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Sime Darby mulls listing of some entities

KUALA LUMPUR (Feb 29): Conglomerate SIME DARBY BHD [] is looking at listing some of its entities next year.

Group chief executive officer Datuk Mohd Bakke Salleh said the group is currently working on a few initiatives in sync with its plan for the listing of these entities.

“The game plan is to do it in phases and to look at listable entities in our portfolio. PLANTATION [] or even PROPERTIES [], auto and industrial would be ready for that but it’s a matter of timing,” he said at a media briefing when announcing Sime Darby's financial performance for its second quarter and first half ended Dec 31, 2011.

Mohd Bakke said the listing is also an exercise that has to consider the optimisation of value.

“Next year would be the preferred year for any kind of listing exercise. We have to be very cautious,” he said.

According to Mohd Bakke, the group would consider acquisitions, mergers or any form of corporate exercises within the scope of its existing core activities.

“It could be plantation. We have the opportunity to expand our landbank or even take over any company that is involved in this business. Definitely, we would not announce any new core business at least for the next five or four years,” he said.

On the price of crude palm oil (CPO), Mohd Bakke expects it to be around the current level of RM3,300 per tonne.

“Whenever there is a meeting of the experts on CPO to take place, the price will firm up one or two weeks before the event. We know that there is an event on March 6. My guess is that it will stay at this level. I think that’s more or less expected,” he said.

Mohd Bakke also said that Sime Darby’s plantation business in Liberia is progressing well. The group has planted up to 1,200 ha of the 4,000 ha that it has opened up.

“We hope to touch planted area of around 2,000 to 3,000 ha for this financial year. We will do it slowly taking into consideration all the challenges.

“It’s a new development and we are the only large-scale oil palm developer in Liberia. Non-governmental organisations (NGOs) are looking at our development. So, we need to be mindful of local sensitivity and ensure that our development is in full compliance with RSPO (Roundtable on Sustainable Palm Oil)," he said.

Mohd Bakke said Sime Darby would carry out its plantation development in Liberia in a very systematic but measured manner.

Sime Darby Plantation through its fully-owned subsidiary Sime Darby Plantation (Liberia) Inc has a concession area of 220,000 ha of land, spread across the Grand Capt Mount, Bomi, Bong and Gbarpolu counties in Liberia, to be developed into oil palm and rubber plantations. - Bernama



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Naim Indah posts RM1.1m net profit in 4Q

KUALA LUMPUR (Feb 29): Timber extractor and property developer, Naim Indah Holdings posted RM1.10 million in profit for its fourth quarter ended Dec 31, 2011, compared to a loss of RM14.27 million a year ago, due to improved contributions from its timber logging and property development activities.

It said on Wednesday, revenue was RM5.15 million compared with RM2.92 million. Earnings per share were 0.16 sen compared to -2.03 sen a year ago.

For its financial year ended Dec 31, 2011, revenue was up 18.8% to RM14.88 million from RM12.52 million. However, the group were still in the red, posting losses of RM730,000 compared to a RM18.36 million losses a year ago.

The group attributed its improved performance to increased revenue from its timber and property arms which contributed RM6.36 million and RM3.20 million respectively.

However, its bottom line was mitigated by a fall of RM7.18 million due to a joint venture project held under its investment holding arm.



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BLD Plantations 4Q earnings up 9.6% to RM25.1m

KUALA LUMPUR (Feb 29): PLANTATION [] company, BLD Plantations Bhd recorded an increase of 9.6% to RM25.13 million for its fourth quarter ended Dec 31, 2011, from RM22.93 million a year ago, on the back of increased sales and higher selling prices.

It said on Wednesday, revenue increased by 19.4% to RM489.56 million from RM409.93 million. Earnings per share were 29.57 sen compared to 26.98 sen.

BLD Plantations said the increased sales under its refinery and kernel crushing arm and higher average selling prices of its products help boost revenue.

For its financial year ended Dec 31, 2011, revenue was up 44.26% to RM1.897 billion from RM1.315 billion. Profit jumped 67.2% to RM101.33 million from RM60.61 million.



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Ekovest 2Q earnings surge to RM11.3m

KUALA LUMPUR (Feb 29): EKOVEST BHD []'s earnings soared 615.82% to RM11.31 million for its second quarter ended Dec 31, 2011, from RM1.58 million a year ago, due to increased revenue from its CONSTRUCTION [] arm.

The company, which specialises in civil engineering works and construction, said on Wednesday, that revenue increased 13.8% to RM46.96 million from RM41.26 million. Earnings per share improved to 6.33 sen compared to 0.92 sen a year ago.

The group attributed its improved performance to its construction arm which contributed RM78.69 million to total revenue.

For the six months ended Dec 31, 2011, revenue rose 26% to RM78.82 million from RM62.52 million, while profit jumped 590% to RM17.82 million from RM2.58 million.



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Silver Bird to probe into accounts, MD, 2 key execs suspended

KUALA LUMPUR (Feb 29): SILVER BIRD GROUP BHD [] has suspended its group managing director, Datuk Tan Han Kook and two other key executives effective Feb 24 as it undertakes an internal inquiry into allegations of irregularities in the company’s accounts.

The company said on Wednesday the other two suspended were executive director Ching Siew Cheong and the general manager for accounts and finance Lai Poh Mei. All three were suspended with full pay and benefits.

“Their suspension is to facilitate the conduct of an internal inquiry into allegations of, amongst others, irregularities in the company’s accounts which were recently brought to the attention of the board of directors when the auditors expressed concerns over the validity and recording of certain transactions for which the auditors were not able to obtain the relevant supporting evidence and satisfactory explanations from the management of the company,” Silver Bird Group said in a statement to Bursa Malaysia.

The announcement confirmed The Edge Financial Daily report on Wednesday that three key executives were suspended pending the outcome of an internal investigation into what is alleged to be financial irregularities.

Silver Bird also said the board of directors had resolved to maintain its financial year end at Oct 31, 2011.

"Hence, the company will issue its AAA (audited annual accounts) for the financial year ended Oct 31, 2011 by Feb 29, 2012,” it said.

Silver Bird said among the main concerns expressed by the auditors, were the contract for the design, renovation or refurbishment to an existing warehouse and factory with a contract sum of RM10.6 million.

There were also concerns about payments made to an equipment supplier of RM69.0 million for up to Oct 31, 2011; the sweetened creamers business segment which recorded a revenue of RM31.9 million for the FYE 2011 and audit trail of all sales transactions.

Silver Bird said a special committee comprising of five non-executive directors had been set up to oversee the operations of the group.

“At this stage, the board of directors is not able to ascertain the extent of the financial and operational impact of the alleged irregularities, although, based on the issues highlighted by the auditors, the maximum exposure faced by the group arising from the alleged irregularities may amount to approximately RM111.5 million,” it said.

Silver Bird also said in order to ascertain the financial position of the group, the company had on Feb 26, appointed PKF Advisory Sdn Bhd as the forensic accountants to conduct a forensic review into the affairs of the company.

The board of directors had appointed Messrs Wong Kian Kheong on Feb 25, 2012 as legal advisors for the company and intends to form an inquiry committee to look into the investigation on the group’s accounts.

“The forensic accountants and the inquiry committee shall be required to complete their investigations within three months from the date of this announcement,” it said.

The board has lodged a police report in relation to the alleged financial irregularities on Feb 26 and reported the matter to the Securities Commission, Bursa Malaysia Securities Bhd and the Companies Commission of Malaysia on Feb 27.

“Given that the auditors have expressed a disclaimer opinion on the company’s latest audited accounts for the financial year ended Oct 31, 2011, the shareholders and investors are advised to trade cautiously with regard to the company’s securities,” it said.

Trading resumes on Thursday.



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KLCI closes at highest since July 2011

KUALA LUMPUR: Fund buying of GENTING BHD [] and Sime Darby following their strong earnings and positive developments in the Eurozone pushed the FBM KLCI to its highest level in six months.

At the close, the FBM KLCI was up 12.92 points or 0.83% to close at 1,569.65, its highest since July 2011. Turnover was 1.94 billion shares valued at RM2.694 billion. Gainers beat losers 535 to 297, while 300 counters traded unchanged.

Regionally, markets closed on a positive note except for Shanghai's Composite Index which fell 0.95% to 2,428.49. Japan's Nikkei 225 closed up 0.01% to 9,723.24, South Korea's Kospi 1.33% to 2,030.25, Taiwan's Taiex 2.04% to 8,121.44, Hong Kong's Hang Seng Index 0.52% to 21,680.08 and Singapore's Straits Index 0.57% to 2,986.65.

Genting rose 22 sen to RM10.76, Sime Darby 12 sen to RM9.69 and Tenaga Nasional 13 sen to RM6.33 which helped push the KLCI by 5.28 points.

Sime Darby announced a 42% increase in net profit of RM2.2 billion for the six months ended Dec 31, 2011, on the back of higher crude palm oil (CPO) prices which boosted its PLANTATION [] division's profit. Genting reported its earnings jumped 66% to RM772.9 million in its fourth quarter compared to RM465.4 million a year ago.

While TNB said its second quarter would perform better after it received the RM2 billion compensation from Petroliam Nasional Bhd and the government as part of the the fuel cost sharing mechanism.

However, gains on the KLCI may be short-lived as Reuters reported that the European markets were supported by news of the European Central Bank's latest cheap loan offer on Wednesday, Feb 29.

It said that the markets are expecting a large number of banks to borrow around 500 billion euros ($671 billion) of the three-year money, and that a lot of this liquidity will find its way into riskier assets as well as easing pressure on bank balance sheets.

On Bursa Malaysia, consumer stocks were among top gainers after stocks such as Dutch Lady Industries Bhd rose RM1.00 to RM29.98, Nestle was up 90 sen to RM55.80 and AEON Credit Services was up 63 sen to RM8.82.

YTL Bhd rose 17 sen to RM1.75, with 109.77 million shares traded in, making it the most active stock on the bourse.

Meanwhile, top losers included Tawin down 25 sen to 30 sen, Tradewinds 21 sen to RM9.89 and Shell down 20 sen to RM9.70.



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Proton posts 3Q net loss of RM88.2m

KUALA LUMPUR (Feb 29): PROTON HOLDINGS BHD [] posted heavier net losses of RM88.20 million in the third quarter ended Dec 31, 2011 compared with the net loss of RM60.10 million a year ago due to a decline in year-end sales.

It said on Wednesday that total sales volume was lower when compared to the immediate preceding quarter due to the expected slowdown in buying trend as customers opted to wait until after the new year to purchase a new vehicle in order to capitalise on better future resale value.

“Customer demand over the period also showed an unfavourable volume mix of Proton models, which further affected the profit margin. Consequently, the lower sales volume also resulted in the group having had to adjust production numbers to better manage cost,” it said.

Proton said its 3Q revenue was lower at RM1.432 billion compared with RM1.833 billion a year ago. Loss per share was 16.10 sen compared with loss per share of 10.90 sen a year ago.

For the nine-month period, its registered net loss of RM68.09 million compared with net profit of RM90.50 million a year ago. Its revenue was lower at RM5.928 billion compared with RM6.363 billion a year ago.

Proton group chairman Datuk Seri Mohd Nadzmi Mohd Salleh said the lower profit was largely due to lower revenue from domestic sales.

“However, the unfavourable impact from the lower revenue was cushioned by a decrease in manufacturing overheads and lower administrative expenses incurred in the same financial period. Additionally, the result was also affected by lower volume sale of Lotus cars in Europe in the past quarter,” he said.

Nadzmi said the one-month delay of the launch of Proton’s latest model, the Exora Bold, a turbocharged variant of its popular-selling people carrier had also affected projected sales.

However, he added the delay was necessary to ensure that all issues were addressed and that the customers would get the best from the car.



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MAS posts 4Q net loss RM1.27bn, FY11 net loss RM2.52bn

KUALA LUMPUR (Feb 29): MALAYSIAN AIRLINE SYSTEM BHD [] (MAS) posted net losses totaling RM1.277 billion in the fourth quarter ended Dec 31, 2011 versus net profit of RM225.92 million a year ago as it severly affected by high fuel costs and non-fuel expenses.

It said on Wednesday that its revenue was RM3.678 billion, almost unchanged from the RM3.669 billion a year ago. Loss per share was 38.22 sen compared with earnings per share of 6.76 sen.

For the financial year ended Dec 31, 2011, MAS posted net loss of RM2.524 billion compared with net profit of RM234.47 million a year ago. Its revenue was 2% higher at RM13.901 billion compared with RM13.585 billion a year ago.

“The group’s full year performance was severely impacted by a 21% increase in expenditure over the previous year (2011: RM16.20 billion versus 2010: RM13.41 billion) attributed to a 33% year-on-year increase in fuel cost (2011: RM5.85 billion versus 2010: RM4.38 billion) and a 15% increase in non-fuel expenses (2011: RM10.43 billion versus 2010: RM9.03 billion).

MAS chief executive officer Ahmad Jauhari Yahya said the bottomline group losses for 2011 underscored the imperative need for MAS to immediately adopt strong measures to stop the bleeding.

“These include staff redeployment, increasing productivity and efficiency, relentless cost control and making further route reviews. We are also implementing an aggressive sales and marketing strategy,” he said.



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Market Commentary

The FBM KLCI index gained 12.92 points or 0.83% on Wednesday. The Finance Index increased 0.69% to 14017.35 points, the Properties Index up 1.22% to 1052.71 points and the Plantation Index rose 0.34% to 8651.77 points. The market traded within a range of 16.25 points between an intra-day high of 1573.75 and a low of 1557.50 during the session.

Actively traded stocks include YTL, CSL, IFCAMSC, KEYWEST, ECOFIRS, COMPUGT, MUIPROP, NICORP, DBE and TIGER. Trading volume increased to 1942.34 mil shares worth RM2693.55 mil as compared to Tuesday’s 1727.59 mil shares worth RM1588.57 mil.

Leading Movers were YTL (+17 sen to RM1.75), SIME (+12 sen to RM9.69), AXIATA (+7 sen to RM5.17), TENAGA (+8 sen to RM6.28) and GENM (+11 sen to RM3.91). Lagging Movers were PETCHEM (-10 sen to RM6.70) and BAT (-10 sen to RM52.20). Market breadth was positive with 535 gainers as compared to 297 losers. -- JF Apex Securities Bhd



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Sime Darby advances after strong 2Q net profit

KUALA LUMPUR (Feb 29): SIME DARBY BHD []’s share price rose in afternoon trade on Wednesday after it reported net profit of RM1.10 billion in the second quarter ended Dec 31, 2011.

At 4pm, it was up 12 sen to RM9.69 with 15.88 million shares done.

Sime Darby’s 2Q earnings were 25.5% above the RM877.06 million a year ago. Its revenue increased by 13.9% to RM11.39 billion from RM9.993 billion.

For the first half, it reported a 42% increase in net profit to RM2.175 billion from RM1.531 billion in the previous corresponding period. Its revenue increased 20.2% to RM22.45 billion from RM18.668 billion.



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Teo Seng’s earnings up at RM7m on higher egg prices

KUALA LUMPUR (Feb 29): Poultry-based TEO SENG CAPITAL BHD [] posted a 12.95% increase in its profits to RM7.15 million for the third quarter ended Dec 31, 2011, from RM6.33 million a year ago, underpinned by larger sales of eggs and better prices.

It said on Wednesday, revenue rose 33.11% to RM74.06 million from RM55.64 million. Earnings per share were 3.58 sen as compared to 3.17 sen a year ago.

The group attributed its performance to increased sales of eggs and higher selling prices of eggs.

For the nine months ended Dec 31, 2011, revenue increased 36.1% to RM201.67 million from RM148.19 million a year ago. However, its net profits fell 12.1% to RM15.35 million from RM17.46 million.



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Masteel posts 4Q net loss of RM13.33m

KUALA LUMPUR (Feb 29): Malaysia Steel Works (KL) Bhd posted net losses of RM13.33 million in the fourth quarter ended Dec 31, 2011 compared with net profit of RM8.99 million a year ago.

It said on Wednesday its revenue increased 15.3% to RM336.65 million from RM291.97 million. Loss per share was 6.33 sen compared with earnings per share of 4.35 sen.

For the financial year ended Dec 31, 2011, it was still profitable, with net profit of RM24.53 million, or down 12.6% to RM24.53 million from RM28.09 million in FY10.

Revenue was higher by 24.7% at RM1.253 billion compared with RM1 billion in FY10.



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Mah Sing buys 157 acres of land in Gombak, plans projects with RM650 GDV

KUALA LUMPUR (Feb 29): MAH SING GROUP BHD [] expanded its land bank with the latest acquisition of 157 acres (63.4 ha) in Bandar Kundang, Gombak for RM40.94 million about RM6 per sq ft.

It said on Wednesday the land was one km south of the group’s project, M Residence@Rawang -- a 226 acre township development acquired in October last year.

Mah Sing proposed to build a self-contained, secured lifestyle township named M Residence 2@Rawang with a gross development value of about RM650 million.

“Based on preliminary plans, the township shall comprise mainly linked semi-detached homes to capture the spillover demands for such products from M Residence. The group intends to replicate the success of Aman Perdana township in Meru-Shah Alam by offering semi-detachedhomes at link house pricing,” it said.

Mah Sing said its units Major Land Development Sdn Bhd and Elite Park Development Sdn Bhd had on Wednesday signed separate sale and purchase agreements with Vibrant Domain Sdn Bhd and Topaz Best Sdn Bhd to acquire the adjacent parcels of land.



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KLCI rallies nearly 12pts at midday

KUALA LUMPUR (Feb 29): Share prices on Bursa Malaysia rallied strongly at midday to send the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) surging 11.87 points to 1,568.60, dealers said.

The FBM KLCI's level was also the highest since July 18.

The market was rejuvenated from yesterday's losses as advances in regional bourses and a sharp decline in oil prices bolstered sentiment, the dealers said.

The Finance Index rose 100.36 points to 14,021.33 and the INDUSTRIAL INDEX gained 33.58 points to 2,890.80, while the PLANTATION Index increased 17.061 points to 8,639.66.

The FBM Emas Index gained 70.359 points to 10,852.26 and the FBM 70 Index increased 30.20 points to 12,242.53, with the FBM Ace Index increasing 19.13 points to 4,708.34.

Gainers led losers 432 to 243 while 309 counters were unchanged, 511 untraded and 33 others suspended. Turnover stood at 973.507 million shares worth RM1.012 billion.

For the actives, China Stationery was flat at RM1.39,IFCA MSC decreased half-a-sen to 13 sen, Compugates Holdings rose one sen to 11 sen and YTL Corporation improved five sen to RM1.63.

Among heavyweights, Maybank rose one sen to RM8.75, Sime Darby increased nine sen to RM9.66, and CIMB gained five sen to RM7.18, but Petronas Chemicals slipped 10 sen to RM6.70



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Sime Darby 2Q earnings up 25.5% to RM1.1bn

KUALA LUMPUR (Feb 29): SIME DARBY BHD [] posted net profit of RM1.1 billion in the second quarter ended Dec 31, 2011, which was 25.5% above the RM877.06 million a year ago.

It said on Wednesday its revenue increased by 13.9% to RM11.39 billion from RM9.993 billion while earnings per share were 18.32 sen compared with 14.60 sen.

For the first half, it reported a 42% increase in net profit to RM2.175 billion from RM1.531 billion in the previous corresponding period. Its revenue showed a 20.2% increase to RM22.45 billion from RM18.668 billion.

As for its profit before tax, it recorded a 39.9% increase in profit before tax of RM3.089 billion as compared to the previous year’s profit of RM2.207 billion.

“This was achieved on the back of higher revenue which rose by 20.3% to RM22.5 billion from RM18.7 billion previously. All divisions recorded higher contributions with net earnings registering a 42.0% increase over the previous year,” said Sime Darby.

Commenting on the various segments of its businesses, it said the PLANTATION []s’ operating profit rose 38% to RM1.8 billion due to higher realised crude palm oil (CPO) prices and operational efficiency improvements.

The industrial division benefited from the robust activity in the mining, logging and CONSTRUCTION [] sectors in Australia and Malaysia, which saw its operating profit increase 38% to RM628 million.

As for the motors division, it said the Malaysia and China operations continued to be the main forces behind the unit’s resilient performance which saw its operating profit rising 11% from RM277 million to RM308 million.

The property division showed a significant increase of 46 percent in its operating profit to RM193 million.

The energy & utilities Division’s operating profit grew by 127 percent in the first half of the year due to the recognition of deferred revenue of RM99 million from the Malaysia power plant.

The healthcare division posted a higher operating profit of RM14 million, a 7% increase over the previous corresponding half.



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Kencana secures RM74m fabrication job from ExxonMobil

KUALA LUMPUR (Feb 29): KENCANA PETROLEUM BHD [] has secured a RM74 million contract from ExxonMobil Exploration and Production Malaysia (EMEPMI) to fabricate the substructure for a platform off Terengganu.

The company said on Wednesday its unit Kencana HL Sdn. Bhd was awarded the contract to fabricate the substructures which include jacket, piles and related components which formed part of Tapis R central processing platform for the Tapis re-development project off the coast of Terengganu.

“The total value of the contract is approximately RM74 million. It is a one-off EPC contract and is expected to be delivered to EMEPMI within the second quarter of calendar year 2013,” it said.



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Sozo to invest RM16m to boost halal food processing capacity

KUALA LUMPUR (Feb 28): Ready-to-serve food manufacturer Sozo Global Ltd is looking to invest RM16 million this year to boost its halal food processing capacity, which could see its setting up a plant in Negeri Sembilan.

Its chief executive officer Shen Hengbao said the group was looking to sign a memorandum of understanding with a local company next month.

"We are looking at spending RM8 million with regard to this,” he said on Wednesday.

Sozo Global, he said, was also looking to invest RM8 million to build a factory next to the site of the MoU partner’s factory.

He said the company which it would tie up with, recorded about RM12 million in revenue per year and it specialised in making roti prata and spring rolls.



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KUALA LUMPUR (Feb 29): The FBM KLCI rose more than 10 points in late morning trade on Wednesday, the most in recent weeks, with consumer-related count

KUALA LUMPUR (Feb 29): The FBM KLCI rose more than 10 points in late morning trade on Wednesday, the most in recent weeks, with consumer-related counters among the major gainers as sentiment perked up in line with the regional markets.

At 11.16am, the KLCI was up 10.32 points to 1,567.05. Turnover was 672.86 million shares valued at RM634.94 million. Advancing counters beat decliners 382 to 218 while 268 stocks were unchanged.

BAT rose RM1.14 to RM53.44m Dutch Lady 42 sen to RM29.40 and Carlsberg 16 sen to RM10.06.

HLFG rose 42 sen to RM12.24, Aeon 41 sen to RM8.60 and PetGas 32 sen to RM16.88 while PPB and CCM Dbio rose 30 sen each to RM17.30 and RM2.50.

Cypark again came under the radar screen, rising 13 sen to RM2.04.



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TSM Global shares climb on takeover offer

KUALA LUMPUR (Feb 29): Shares of TSM GLOBAL BHD [] advanced in early trade on Wednesday after the company received a takeover offer at RM1.25 a share.

At 10.02am, it was up eight sen to RM1.20 with 60,100 shares done.

The FBM KLCI rose 6.7 points to 1,563.43. Turnover was 406.92 million shares done valued at RM268.53 million. There were 269 gainers, 171 losers and 252 stocks unchanged.

TSM announced on Tuesday that several parties owning 28.07% of its shares, had offered to acquire all the business, including assets and liabilities, for RM159.24 million or RM1.25 per share

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.



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RHB Research maintains Underperform on KNM Group, FV 68 sen

KUALA LUMPUR (Feb 29): RHB Research Institute is maintaining its Underperform on KNM GROUP BHD [] at 94 sen and accorded a fair value of 68 sen.

It said on Wednesday there could be more downside risks for earnings in the near term.

“As such, we continue to be cautious on the stock. Rerating catalysts will be when it starts to show sustainable earnings and operational improvement. We maintain our fair value estimate of 68 sen a share based on unchanged 0.4 times FY12 price-to-book value,” RHB Research said.

The research house said KNM Group’s FY2011’s loss before tax of RM147.5 million was better than its expectations of RM187.7 million, but worse than consensus full-year loss before tax estimate of RM93.6 million.

“The variance to our estimate was largely due to lower-than-expected interest costs. We have opted to look at the profit before tax of the company as it is a better measure of KNM’s operational earnings and excludes the effect of the tax incentive,” RHB Research said.



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Bintulu Port 4Q earnings double to nearly RM60m

KUALA LUMPUR (Feb 29): BINTULU PORT HOLDINGS BHD [] reported a 107% increase in earnings at RM59.94 million for the fourth quarter ended Dec 31, 2011 from RM28.87 million a year ago.

It said on Wednesday its profit before taxation of RM43.76 million was 22.1% higher compared to RM35.84 million a year ago. It proposed a final dividend of 7.50 sen a share.

Bintulu Port’s operating revenue increased by 6.2% to RM125.36 million from RM118.07 million a year ago.

“Revenue generated from port services is RM116.60 million with the revenue from the handling of LNG vessel calls and cargo contributing RM90.47 million (72.17%) towards the total operating revenue. Revenue from bulking services contributed RM8.76 million (6.99%) towards the total operating revenue,” it said.

For FY11, its net profit climbed 22.4% to RM170.77 million from RM139.44 million but its revenue fell 4.8% to RM490.13 million from RM514.83 million.

Trading in the shares was suspended from 9am to 10am.



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CIMB Research has technical buy on WCT at RM2.64

KUALA LUMPUR (Feb 29): CIMB Equities Research has a technical buy on WCT BHD [] at RM2.64 at which it is trading at a FY13 price-to-earnings of 9.8 times and price-to-book value of 1.5 times.

The research house said on Wednesday that WCT, which had broken out from its triangle pattern in February, the share price further pushed above its 200-day SMA before consolidating in a bullish flag pattern.

“Once this consolidation is over, we think the stock is poised for one more leg up,” it said.

CIMB Research said that the MACD signal line is losing pace but remains above the zero line. RSI is also trading above the 50pts mark.

“We see the possible likelihood of a stronger rebound soon. If the candles can hold firm above its 200-day SMA, the next upswing will likely push prices towards RM2.78 and RM2.92 next. Be quick to cut loss if the RM2.58 level is violated,” it said.



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CIMB Research has technical sell on China Ouhua Winery at 22 sen

KUALA LUMPUR (Feb 29): CIMB Equities Research has a technical sell on China Ouhua Winery Holdings at 22 sen at which it is trading at a price-to-book value of 0.6 times.

It said on Wednesday that China Ouhua violated its triangle support on Tuesday.

“We view this as a prelude to more downside ahead. If we are right, the next downleg is likely to drag prices back to its previous low of 19.5 sen again, before heading towards 16 sen next. There is a minor support at 20.5 sen,” it said.

CIMB Research said the technical indicators were showing signs of exhaustion. MACD signal line had staged a dead cross while RSI is below the 50 pts mark.

“Unless prices bounce back above its 30-day and 50-day SMAs soon (at 26 sen and 25.5 sen respectively), unload on strength looks like a good option here,” said the research house.



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CIMB Research has technical buy on Zelan at 50.5 sen

KUALA LUMPUR (Feb 29): CIMB Equities Research has a technical buy on Zelan at 50.5 sen at which it is trading at a price-to-book value of 1.9 times.

It said on Wednesday that Zelan broke out of its bullish flag pattern on Tuesday on high volume.

“We think it is due for another rebound. However, our strategy here would be to buy on weakness due to yesterday’s strong run-up,” it said.

CIMB Research said the technical reading was improving. MACD histogram bars were falling at a slower pace, suggesting that selling pressure was tapering off. RSI indicator had also hooked upward.

“The 30-day SMA looks like a good support here. We will only review our call if prices broke below this moving average, now at 45 sen. Resistance is seen at the 53 sen and 55 sen levels,” it said.



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HDBSVR sees chance for Malaysian equities to rally

KUALA LUMPUR (Feb 29): HwangDBS Vickers Research said there is a chance for the Malaysian bourse to leap forward on Wednesday.

HDBSVR said that in playing catch-up with its regional peers – which mostly ended higher on Tuesday – the benchmark index could pull away from the first support line of 1,555 ahead.

It said that overnight on Wall Street, main equity bellwethers rose between 0.2% and 0.7% amid hopes that the European Central Bank (ECB)’s long-term refinancing operation scheduled this afternoon would inject more liquidity into the monetary system, thus easing the banks’ funding strains.

At Bursa Malaysia, among the slew of financial result announcements that were releasedon Tuesday, UEM Land and Padini surprised on the upside but Masterskill came in below par.

Other corporate developments that may be of interest include: (a) TSM Global, after receiving a proposal to take over its businesses for RM1.25 per share (versus its last done price of RM1.12); and (b) CWorks, which is in advanced talks to take over a profitable IT company according to one media report.



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CIMB Research maintains Neutral on RHB Capital, TP RM7.50

KUALA LUMPUR (Feb 29): CIMB Equities Research said RHB CAPITAL BHD []’s FY11 net profit met its expectations as it accounted for 97% of its forecast and consensus.

It said on Wednesday that however, net profit growth at only 5.7% was slow, impacted by a margin squeeze that offset the positive effects of swift loan growth.

“We continue to peg the stock to our DDM value. Despite the undemanding valuation, we continue to rate RHB Capital a Neutral on concerns over slowing loan growth and suppressed net interest margins,” it said.

CIMB Research had a target price of RM7.50 for the stock.



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CIMB Research: UEM Land final results way ahead of expectations

KUALA LUMPUR (Feb 29): CIMB Equities Research said UEM Land’s final results were way ahead of expectations and its share price target was RM2.56.

It said on Wednesday the RM2.2 billion new sales notched up in FY11 were also impressive.

“The group has set the bar high for 2012 with headline KPIs of 50% revenue growth, 40% profit growth and 10% ROE. In view of the strong finals and high KPIs, we upgrade UEM Land from neutral to Trading Buy,” it said.

CIMB Research, which has a trading buy, also raised RNAV and EPS for the more ambitious KPIs and balance sheet adjustments.

“Our target price rises because of the higher RNAV and a halving of our RNAV discount to 5%,” it said.



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Stocks to watch: IPPs, Mah Sing, Genting, UEM Land

KUALA LUMPUR (Feb 29): With the current corporate results drawing to an end on Wednesday, investors’ focus would be on the companies with the stronger set of financial results and their prospects for the year ahead as the external and domestic economies slow down.

The important decision would be to pick companies which would be able to ride through slower growth, especially PLANTATION []s and banks with overseas operations.

Among the stocks to watch on Wednesday after independent power producers (IPPs), MAH SING GROUP BHD [], GENTING BHD [] and UEM Land Bhd.

The Energy Commission has invited the first generation of independent power producers to submit their plans to extend the power purchase agreements (PPAs).

These IPPs, whose PPAs were scheduled to end in three to four years, were invited to extend the agreements on condition they would reduce the capacity payments.

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.

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.

Genting Bhd reported net profit of RM772.91 million in the fourth quarter ended Dec 31, 2011, up 66% from RM465.43 million a year ago.

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 as it included a reversal of RM308.6 million in respect of previously recognised impairment loss relating to the UK casino licenses and a net fair value gain of RM64.4 million on derivative financial instruments.

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 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.

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.

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.

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.

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

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

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.

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.

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. Its revenue was RM313.29 million while earnings per share were 5.41 sen.

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

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.

Its 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.

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.



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