Bumi Armada secures RM614m contract from Lukoil

KUALA LUMPUR (April 16) : Bumi Armada Bhd will offer oil and gas support services to Russia-based OAO Lukoil in deal worth an estimated U$200 million (RM614 million)

In a statement to Bursa Malaysia on Monday, Bumi Armada said the offshore job includes engineering, procurement, installation and pre-commissioning of subsea in-field and inter-field pipelines for the Filanovsky field in the Caspian Sea.

“The contract valued at approximately US$200 million is expected to contribute positively to the revenue and earnings of Bumi Armada group for the financial year ending December 31, 2012 and the financial periods thereafter for the duration of the contract.

“The risks associated with the contract are normal operational risks which can be mitigated through Bumi Armada’s system of project management and internal business controls,” Bumi Armada said. A major portion of the 32 month-contract is due for completion by end 2014, according to the firm.



Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.

Axis REIT 1Q profit up 27% year-on-year

KUALA LUMPUR (April 16) : Axis Real Estate Investment Trust’s (Axis REIT) first quarter net profit rose 27% from a year earlier, as a higher top line, and a revaluation surplus mitigated the impact of higher expenses.

In a statement to the exchange on Monday, Axis REIT said its net profit came to RM20.96 million in the quarter ended March 31, 2012 versus RM16.49 million previously while revenue was up 18% to RM32.29 million from RM27.25 million.

Axis REIT said revenue was helped by income from two PROPERTIES [] acquired by the company during the quarter. The trust had also registered a property revaluation surplus of RM300,000 during the period, it said.

The property trust said it plans to reward shareholders with a first interim income distribution of 4.3 sen a unit, of which, a 4.25 sen portion is taxable while the 0.05 sen balance is tax-exempted.



Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.

S&P: Tighter Risk Controls Will Help Non-Life Insurers In A-P Weather Storms

KUALA LUMPUR (April 16): The growing frequency and severity of natural catastrophes have undermined the credit profiles of many non-life insurers in Asia-Pacific and highlighted the importance of more stringent risk management, according to Standard & Poor’s.

In a report entitled "Asia-Pacific Non-Life Insurance Outlook: Tighter Risk Controls Are Crucial As The Markets Continue To Grow, released on Monday, S&P credit analyst Paul Clarkson said the agency no longer had positive outlooks on any of the 12 non-life markets in Asia-Pacific that it covered.

"The pace of economic growth in the region is slowing and volatility in the investment markets have increased over the past few years.

“But most markets have sufficient fundamentals to warrant stable outlooks. For individual companies, capital levels may need strengthening,” said Clarkson.

The report said that the outlooks on Malaysia and China had moved to stable from positive, given the tougher climate.

S&P revised the outlook on Japan to stable from negative following the recent downgrades of insurers in that market.

For New Zealand, it said the change of outlook to stable from negative reflects the stabilization of insurers' financial profiles since the massive earthquakes in Christchurch in 2011.

“India and Japan have negative outlooks, given their poor underwriting losses due to underpricing and flood losses, respectively. The other markets are stable,” said S&P.

Clarkson said the increasing complexity of risks in Asia-Pacific supports calls for more stringent underwriting and risk controls. The region has a rapid build-up of assets that need protection.

“Tighter risk controls would help promote more profitable growth for regional non-life insurers," he said.

The report assesses the impact of recent catastrophes, examines the industry's growth prospects, and reviews each of the non-life markets.



Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.

KLCI closes lower in tandem with regional markets

KUALA LUMPUR (APRIL 17: The FBM KLCI fell on Monday, in tandem with its regional peers, as investors spooked by re-emerging worries over the European sovereign debt crisis sold down riskier assets.

The FBM KLCI fell 5.6 points to close lower at 1,597.51 on Monday.

Market breadth was negative with 428 losers, 272 gainers whiel 320 counters traded unchanged. Volume was 1.05 billion shares valued at RM 1.26 billion.

Asian shares and the euro fell on Monday as a surge in Spanish government bond yields renewed concerns about Europe's sovereign debt crisis and undermined investor appetite for riskier assets, according to Reuters.

At the regional markets, Hong Kong’s Hang Seng Index fell 0.44% to 20,610.64, Japan’s Nikkei 225 lost 1.74% to 9,470.64, South Korea’s Kospi fell 0.81% to 1,992.63, Taiwan’s Taiex lost 0.75% to 7,729.86 while, Singapore’s Straits Times Index edged up 0.14% to 2,992.12.

Among the decliners on Monday, Dutch Lady fell 42 sen to RM35.16, United PLANTATION []s down 38 sen to RM24.62, The Store fell 24 sen to RM2.25, Aeon 19 sen to RM9.61, Hibiscus 17 sen to RM1.93, Amway 14 sen to RM9.84, Genting, BAT and Shell lost 12 sen each to RM10.92, RM54.68 and RM10.16 respectively.

Ingenuity Solutions was the most actively traded counter with 59.4 million shares done. The stock fell half a sen to 9.5 sen.

Other actives included Ariantec, Naim Indah Corp, Metronic, CSL, AWC, DVM and SuperComNet.

Gainers included Jaya Tiasa, Tasek, Warisan, PMB Tech, Subur Tiasa, Ta Ann, Iterex, Ekovest and Hong Leong Industries.



Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.

V.S. Industry moves 8 spots up to 32 among top 50 global EMS players

KUALA LUMPUR (April 16): Electronics manufacturing services (EMS) provider V.S. Industry Bhd has moved up eight notches to Number 32 among the world’s top 50 EMS, based on revenue size, in an annual survey compiled by Manufacturing Market Insider (MMI), an EMS-industry newsletter.

In a statement Monday, V.S. Industry said the move up the ranking was a result of its 28.3% growth in group revenue to RM1,023 billion for the financial year ended July 31, 2011 (FY2011), from RM800.2 million a year earlier.

VS Industry is one of two Malaysian companies that made it to the list; the other is SMT Technologies Sdn Bhd, which ranked Number 41.

V.S. Industry managing director Gan Sem Yam said the achievement pointed as much to the Group’s resilience in the highly-competitive EMS industry for the last 3 decades as it does to the growth potential of VSI.

“Indeed, the higher ranking would not have been possible without the Group’s commitment to continuously extend our EMS services to fulfil our clients’ manufacturing needs while they focus on product and market development.

“It is VSI’s intention to focus on enhancing our core EMS business going forward, to position ourselves to capture a larger portion of the global market,” he said.

VS Industry provides extensive manufacturing services, which include plastic injection mould design and fabrication, wide tonnage range of plastic injection, finishing processes, large scale production of printed circuit board assembly, automated assembly, and final processes of packaging and logistics.

Currently, VS Industry has production facilities in Malaysia, Indonesia, China and Vietnam, and serves more than 50 clients from Europe, Japan and USA.

The company focuses on manufacturing high-value consumer electronics and office automation products of renowned global brands; some of VSI’s products include high-end vacuum cleaners, single-cup coffee machines, touch screens equipment, automobile climate controller, digital power meters, and landscaping equipment.

Gan said while we are pleased with its market position, it was not going to rest on its laurels.

“We intend to continue with our expansion plans, not only in terms of additional investment for production facilities but also in the development of new customers and markets.

“This, we hope, would translate to a larger revenue base for the Group and elevate us to the next significant level,” he said.



Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.

CIMB to buy 60 pct of San Miguel's bank unit soon, says official

MANILA (April 16): Malaysia's second largest lender CIMB Group will sign a deal soon to buy 60% of Philippine conglomerate San Miguel Corp's unlisted banking arm, the chairman of Bank of Commerce said on Monday.

It would be the first foray by the Malaysian bank in the Philippines, further boosting its regional footprint after it bought some equities and investment banking units from Royal Bank of Scotland Group Plc elsewhere in Asia earlier this month.

The deal will also allow San Miguel, the country's most diverse conglomerate, to keep a minority stake in the unlisted bank while focusing on its new ventures such as power, mining, telecoms, infrastructure, and more recently, airlines.

San Miguel said early this month it had forged agreements to acquire an indirect stake in the country's flag carrier Philippine Airlines and its sister airline for US$500 million (RM1.54 billion).

"I was told it would happen shortly," Jose Pardo told Reuters, when asked about the signing between CIMB and San Miguel, after the sale was reported by local media. He added the deal needed the approval of the central bank.

"I presume if they (CIMB) take 60%, they will have about eight board seats," Pardo said. Medium-sized lender Bank of Commerce has 15 board members.

Pardo said San Miguel PROPERTIES [] Inc and San Miguel Retirement Fund, which together hold about 76% of Bank of Commerce, were in negotiations with CIMB about the deal.

Some minority shareholders would also sell their stakes in the bank, a source with knowledge of the deal but who was not authorised to speak to the media told Reuters.

The deal will be presented to Bank of Commerce shareholders at a meeting on April 24.

San Miguel was little changed in early trade on Monday, slipping 0.3%, in step with the broader market's 0.3% decline. CIMB was down 0.4%.

CIMB's buy-in may be worth about US$200 million to US$250 million and could be finalised in the next few days, said a report by the Philippine Daily Inquirer.

There was no immediate comment from San Miguel on the deal.

At the end of the third quarter, Bank of Commerce had capital stock of 18.5 billion Philippine pesos (RM1.33 billion) and total assets valued at 96.5 billion pesos. — Reuters



Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.

M'sian economy should be more dependent on domestic consumption, says Dr M

KUALA LUMPUR (April 16): The government must look at ways to increase the contribution of domestic consumption to Malaysia's Gross Domestic Product (GDP) while ensure the economy is less dependent on the export market, says former Prime Minister Tun Dr Mahathir Mohamad said.

He said to increase the participation of domestic consumption, many local services and products must be absorbed by the local market.

"For that, of course we need the people to have a higher income. But to have higher income, we have to increase our own productivity.

"You cannot just increase the pay when the productivity is at the same level. If that happens, then the economy will not grow and it may even lead to inflation.

"So we need to upgrade the productivity of our people both in terms of producing goods and also supplying services.

"When we do that, the additional income will be spent locally and therefore much of our economy would not be based on export alone but will be more towards domestic consumption," Mahathir told reporters after chairing a Roundtable High Level Strategy Session organised by the National Chamber of Commerce and Industry of Malaysia.

He said the United States' export activities contributed some 34% to the country's GDP while Malaysia's stood at over 70%.

However, he said the export market's importance towards the growth of an economy cannot be denied.

"It (export) should not shrink but must grow but the%age that it constitutes to the GDP should be smaller because of the growth of domestic consumption," he said.

The former premier also said the government should study the domestic consumption's current contribution to the economy.

In a related development, Mahathir said the projected four to five% GDP growth forecast for 2012 is something to be proud of, given the current economic uncertainties.

"The major economies in the Asian region like China and India will continue to expand in a bigger scale, of course.

"But Malaysia's projected growth is far better that countries in the West which are struggling even to grow or sustain at the current level," he said. — Bernama



Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.

Dr M: Syed Zainal might not want to continue as Proton MD

KUALA LUMPUR (April 16): Former Prime Minister Tun Dr Mahathir Mohamad on Monday hinted that PROTON HOLDINGS BHD [] managing director Datuk Seri Syed Zainal Abidin Syed Mohamed Tahir might not want to continue leading the national car maker under the ownership of DRB-HICOM BHD [].

Mahathir, who is also Proton adviser, said in Syed Zainal's case, there was no question of sacking but merely a question of an agreement between the latter and DRB-Hicom as to how best to deal with the problem of redundancy.

"DRB-Hicom is quite entitled to change the MD because they now own Proton but at the moment Syed Zainal is still the managing director and he is getting paid for the position.

"But of course he might not want to continue. It's his choice," Mahathir told reporters after chairing a Roundtable High Level Strategy Session organised by the National Chamber of Commerce and Industry of Malaysia.

He was commenting on news report that Syed Zainal would be removed as managing director of the company after the launch of the Proton Preve sedan model tonight.

When asked on the potential successor, Mahathir said: "I think if Syed Zainal is not there, DRB-Hicom has to place someone there."

"Maybe, one of their own DRB-Hicom people who are experienced in the automotive industry (could fill the position)," he said.

Last week, The Edge Financial Daily reported that Syed Zainal had handed in his resignation, days before launching its latest model and weeks after DRB-Hicom took over the loss-making company.

However, later on the same day, Proton issued a statement refuting the news report by saying: "Syed Zainal is still holding the position of group managing director of Proton and his services are still required in the company".

It is believed that DRB-Hicom chief operating officer Datuk Lukman Ibrahim is poised to take over from Syed Zainal.

Syed Zainal, 50, who ventured into the automobile industry by becoming Perusahaan Otomobil Kedua Sdn Bhd (Perodua) senior general manager in 1999 and later the company's deputy managing director in 2005, was appointed Proton's managing director on Jan 1, 2006.

In January, state asset manager Khazanah Nasional Bhd announced the sale of its 42.74% stake in Proton to DRB-Hicom for RM1.291 billion.

The sale was concluded last month and DRB-Hicom appointed its managing director Datuk Seri Mohd Khamil Jamil as Proton executive chairman and executive director, replacing Datuk Seri Nadzim Salleh, who tendered his resignation days after the completion of the deal. — Bernama



Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.

Khazanah plans US$1.5b healthcare IPO in 2H, say sources

KUALA LUMPUR (April 16): State investor Khazanah Nasional Bhd is expected to list its healthcare assets in Kuala Lumpur and Singapore in the second half (2H), a deal that could fetch US$1.5 billion (RM4.61 billion), two sources with direct knowledge of the deal told Reuters.

The dual listing could be the fourth-biggest initial public offering (IPO) in the city state's history and Malaysia's second-largest this year after the planned listing of PLANTATION [] group Felda Global Venture Holdings Sdn Bhd.

"It is coming out in the second half," a source with knowledge of the deal told Reuters on Monday. "Some preliminary discussions are being held with cornerstones and Khazanah's representatives."

The IPO will be one of the first after elections in Malaysia that are widely expected to be held in June. Analysts and investment bankers have said Malaysia's IPO pipeline has slowed ahead of the poll because of concerns of market volatility.

A second source said the listing was set for June or July, with pre-marketing to start in May. Khazanah officials were not immediately available for comment.

The first source, who declined to be identified as the details of the listing have not yet been made public, said Khazanah was still making acquisitions "to bulk up the initial public offering".

Khazanah's healthcare assets are currently parked under Integrated Healthcare Holdings (IHH), in which Japan's Mitsui & Co Ltd owns a 30% stake.

Aside from IHH's recent purchase of Turkish hospital group Acibadem AS, the unit to be listed would have assets of Singapore's Parkway Holdings, Malaysia-based Pantai Hospitals and International Medical University.

Bank of America-Merrill Lynch, Deutsche Bank AG and CIMB are joint global coordinators and book runners for the deal. Goldman Sachs, DBS and Credit Suisse are joint bookrunners, a source told Reuters in December. — Reuters



Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.

Wijaya Baru climbs 6% on proposed timber complex

KUALA LUMPUR (April 16) : WIJAYA BARU GLOBAL BHD [] shares rose as much as 6% on news that the firm plans to set up an integrated timber complex in Indonesia.

The stock rose four sen to an intraday high of 75.5 sen on Monday before being transacted lower at 74 sen at 2.32pm.

Wijaya Baru told Bursa Malaysia last Friday that it is in the “long term interest of the company” to establish an integrated timber complex in Indonesia. The firm, however, said it has yet to sign a joint venture agreement to set up the complex.



Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.

BIMB up 3% on dividend updates

KUALA LUMPUR (April 16) : Shares of BIMB HOLDINGS BHD [] rose as much as 3.3% during intraday trade following the Islamic financial services provider’s dividend updates.

The stock rose eight sen to RM2.47 before settling lower at RM2.45 for lunch break.

BIMB which owns Bank Islam Malaysia Bhd and SYARIKAT TAKAFUL MALAYSIA BHD [], said last Friday that it intends to reward shareholders with a final single-tier dividend of 7.25% for financial year ended December 31, 2011.

This compares to a final dividend of 1.6% less 25% tax a year earlier, according to BIMB.



Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.

KLCI pares down losses at mid-day break

KUALA LUMPUR (APRIL 16): The FBM KLCI pared down some of its losses at the mid-day break on Monday showing some resilience compared to its regional peers, as renewed worries about the euro zone debt crisis took a toll on investor sentiment at global markets.

The FBM KLCI fell 3.35 points to 1,599.77 at the mid-day break. The index had earlier fallen to its intra-morning low of 1,594.63.

Market breadth was weaker, with losers beating gainers by 372 to 198, while 304 counters traded unchanged. Volume was 509.4 million shares valued at RM430.95 million.

The ringgit weakened 0.55% to 3.0741 versus the greenback, crude palm oil futures for the third month delivery slipped RM10 per tonne to RM3,487, crude oil shed 76 cents per barrel to US$102.07, while gold fell US$8.75 an ounce to US$1,649.40.

Asian shares and the euro fell on Monday as a surge in Spanish government bond yields renewed concerns about the euro zone's sovereign debt crisis and undermined investor appetite for riskier assets, according to Reuters.

Spain's government bond yields jumped on Friday and the cost of insuring its debt against default hit an all-time peak as record borrowing by its banks from the European Central Bank highlighted fears about the country's finances.

At the regional markets, Japan’s Nikkei 225 fell 1.4% to 9,502.61, Hong Kong’s Hang Seng Index lost 0.69% to 20,559.00, the Shanghai Composite Index was down 0.22% to 2,353.99, Taiwan’s Taiex lost 0.77% to 7,728.06, South Korea’s Kopsi fell 0.96% to 1,989.55 and singapore’s Straits Times Index edged up 0.03% to 2,988.83.

BIMB Securities Research in a note Monday said traders were now renewing their focus on Spain’s financial position and China’s economic slowdown as the main excuses to sell down equities.

As a result, it said the Dow Jones Industrial Average fell 137 points to below the 13,000 level despite the better than expected batch of earnings from corporate USA.

The research house said European bourses wobbled across the board from Spain’s mounting debts as its 10-year treasury yield jumped to 5.98% (+0.16).

Asian equities fared better as most ended the week higher obviously before the profit takings both in the US and Europe.

“We view China’s decision to expand their trading band for its Yuan as positive showing that its economy is resilient and is able to withstand the vagaries of its currency.

“Locally, the FBM KLCI added a mere 1.85 points to 1,603 signaling that the market may be due for a consolidation and may be expedited from the weaknesses in both the US and Eurozone. We expect the index may severely test the 1,600 mark after which 1,595 would be the next support level,” it said.

ON Bursa Malaysia, Dutch Lady was the top loser and fell 30 sen to RM35.28, Amway and BAT lost 18 sen each to RM9.80 and RM54.62, HLFG doen 10 sen to RM12.34, while, Sungei Bagan, CCK, Shell, Hong Leong bank and Petronas Dagangan fell eight sen each to RM2.90, 91 sen, RM10.20, RM12.48 and RM18.72 respectively.

Ingenuity Solutions was the most actively traded counter with 51.59 million shares done. The stock was down half a sen to 9.5 sen.

Other actives included Naim Indah Corp, AWC, Ariantec, CSL, Sinotop, Hibiscus and Metronic.

Gainers included Jaya Tiasa, Tasek, Ta Ann, Subur Tiasa, BLD PLANTATION []s, Hong Leong Industries and Tradewinds Plantations.



Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.

S P Setia falls 1.5%, goes ex-dividend on Monday

KUALA LUMPUR (April 16) : S P Setia Bhd shares declined as much as 1.5% before the stock goes ex-dividend on Monday. The lodgement date is on April 18.

Shares of the property developer fell six sen to an intraday low of RM3.95 as at 12.25pm.

S P Setia is paying a final dividend of nine sen a share less 25% income tax for financial year ended October 31, 2011.



Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.

NCB down 4%, goes ex-dividend on Monday

KUALA LUMPUR (April 16) : NCB HOLDINGS BHD [] fell as much as 4% in intraday trade as investors sold the shares of the port operator before the stock goes ex-dividend on Monday.

The stock was down 16 sen to an intraday low of RM3.88 before trading higher at RM3.89 at noon.

NCB is rewarding shareholders with a single-tier final dividend of 10 sen a share for financial year ended December 31, 2011.



Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.

Global economic concerns weigh on KLCI

KUALA LUMPUR (April 16) : Malaysian stocks fell on Monday morning in tandem with regional peers following a weaker close across US markets last Friday. Global equities were hit by fresh concerns on the European debt crisis besides news that China’s first quarter economic growth came in below street forecast.

Analysts foresee a correction in the FBM KLCI this week against a backdrop of weak technical indicators and still-volatile global landscape.

“Moreover, weaker-than-expected economic numbers from the US due to weak jobs growth in March, drop in consumer confidence and more than forecast jobless claims does not augur well for growth in the world's largest economy, hence, increasing correction potential.

“Additional worries in Asia after China's economy expanded by 8.1% in the first quarter, the slowest pace since 2009, could exert further downward pressure for the local market this week,” TA Securities Holdings Bhd wrote in note.

At 10am, the FBM KLCI fell 4.89 points to 1,598.23. Across the exchange, some 184 million shares worth RM109 million were traded, leading to 163 gainers versus 237 decliners.

Among top gainers JAYA TIASA HOLDINGS BHD [] added 60 sen to RM9.68 while TA ANN HOLDINGS BHD [] was up 13 sen to RM6.69.

Decliners HONG LEONG FINANCIAL GROUP BHD [] fell 20 sen to RM12.24 while DUTCH LADY MILK INDUSTRIES BHD [] was down 18 sen to RM 35.40

Most active was INGENUITY SOLUTIONS BHD [] which traded unchanged at 10 sen with some 23 million shares done.

Among Asian bourses, Japan’s Nikkei 225 fell 1.44% to 9,499.33 points while Australia’s S&P/ ASX 200 declined 0.61% to 4,296.9. South Korea’s Kospi was down 1.14% to 1,985.98.



Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.

RHB Research ups target price for Tan Chong to RM4.60

KUALA LUMPUR (April 16): RHB Research Institute Sdn Bhd has maintained its Market Perform call on TAN CHONG MOTOR HOLDINGS BHD [] (TCM) and lift our fair value to RM4.60 (from RM4.20), and said Tan Chong will likely report relatively weak 1Q earnings after MAA data for the first two months of 2012 showed combined Nissan and Renault sales down 16.7% year-on-year, attributed to a combination of component supply constraints and the newly-introduced responsible lending guidelines.

The research house said in a note Monday that Nissan Vietnam (NVL) was likely to remain loss making in 2012 although Indo-China continues to hold long-term promise given their large populations and growing middle class.

“TCM’s Danang assembly plant is now expected to commence production in Jan 2013 that will help to lower selling prices. Nissan’s B-segment competitor the Almera is scheduled for a Sep launch with initial CKD production already begun,” it said.

Further out, there are plans to reintroduce the Datsun brand into the local market with an A-segment model scheduled for 2014 that could be priced in the sub-RM60k bracket, it said.

“We reiterate our Market Perform call on Tan Chong and lift our fair value to RM4.60 (from RM4.20), derived from applying a 13x (from 10x) target PER to revised 2012 earnings,” it said.



Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.

Eversendai up on new Saudi project

KUALA LUMPUR (April 16): Eversendai Corp Bhd shares edged up on Monday afer the company secured a 193 million riyal (RM158 million) structural steel job for the railway station at King Abdul-Aziz International Airport in Saudi Arabia.

The company said last Friday that it ha been appointed as subcontractor for the project by Saudi Binladin Group Architecture & Building CONSTRUCTION [] Division.

At 9.10am, Eversendai was up five sen to RM1.70 with 32,800 shares done.

RHB Research Institute Sdn Bhd in a note April 16 said the latest contract had boosted Eversendai’s year-to-date new jobs secured to RM710 million and its outstanding construction orderbook by 12% from RM1.37 billion to RM1.53 billion.

“Assuming an EBIT margin of 12-15%, the contracts will fetch RM19.0-23.7m EBIT over the contract period ending 2013.

“Forecasts are maintained as we have already assumed in our forecasts Eversendai to secure RM1.5 billion worth of new jobs in FY12/12. Maintain Outperform. Fair value is RM2.15,” it said.



Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.

KLCI edges down in early trade on external woes

KUALA LUMPUR (April 16): The FBM KLCI fell in early trade on Monday, in line with the weaker sentiment at regional markets on fresh concerns over the euro zone debt crisis.

The FBMKLCI opened 0.70 of a point lower at 1,602.42, weighed by select blue chips including HLFG, Genting, RHB Capital and Petronas Chemicals.

Gainers led losers by 58 to 41, while 95 counters traded unchanged. Volume was 14.98 million shares valued at RM5.46 million.

Meanwhile, Asian shares eased on Monday as a surge in Spanish government bond yields renewed concerns about the euro zone's sovereign debt crisis and undermined investor confidence in riskier assets, according to Reuters.

European and U.S. shares fell on Friday, led by the banking sector, pushing U.S. indices to their biggest two-week percentage drops since late November. The Dow Jones industrial average and the S&P 500 each fell 2.7 percent for the two weeks from March 30, it said.

Among the early decliners on Bursa Malaysia were HLFG, Genting, Hibiscus, RHB Capital, IOI Corp, Old Town, MAS, KNM, OSK and Petronas Chemicals.

Gainers included Jaua Tiasa, Eversendai, Zhulian, Kumpulan Europlus BIMB, P.I.E., S P Setia, Supermax and TH PLANTATION []s.



Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.

CIMB Research upgrades Genting Plantations to Neutral, raises TP to RM9.35

KUALA LUMPUR (April 16) CIMB Research has upgraded Genting PLANTATION []s Bhd from Underperform to Neutral with a revised target price of RM9.35 from RM8.53 and said the stronger growth prospects helped offset its concern over the ompany’s rich valuations.

Genting Plantations has entered into an agreement to acquire a 63.2% stake in a joint venture company for US$116 million (RM348 million), a move which will give it access to some 74,390ha of oil palm estates in Indonesia’s central Kalimantan.

“But its effective stake in the Indonesian subsidiaries parked under the JV company will only be 60%. Some 14,150ha of the landbank are planted with oil palms,” CIMB Research said in a note Monday.

The research house said Genting Plantations’ acquisition of 63.2% of a JV company with Indonesian estates is a good move as it will boost its output growth, raised its planted area by 15% and enhance FY13-14 EPS by 1-3%.

“Our SOP-based target price rises as we up the plantation P/E from 12.6x to 14x, in line with the big-cap players.

“We upgrade the stock from Underperform to Neutral as the stronger growth prospects help offset our concern over its rich valuations. We continue to prefer Sime Darby,” it said.



Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.

MIDF Research maintains Neutral on Hartalega, target price RM7.06

KUALA LUMPUR (April 16): MIDF Research has maintained its Neutral recommendation on HARTALEGA HOLDINGS BHD [] with a target price of RM7.06, and it was positive on the glove maker’s Next Generation Integrated Glove Manufacturing Complex (NGC) project.

The research house said it was positive on the project, as the demand for nitrile glove has been growing strongly especially from the developed markets.

“However, we believe that the stock price is ahead of its fundamentals, and factors such as overcrowding of nitrile glove producers, volatility in exchange rate, and increase in nitrile material price will limit the upside potential.

“As the contribution from the NGC Project will only be enjoyed from FY15 onwards, we are maintaining our NEUTRAL recommendation with an unchanged TP of RM7.06, derived from 11x EPS13, based on its 3-year historical PER average,” it said in a note on April 16.



Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.

Stocks to watch Eversendai, Boustead, Tenaga, Genting Plantations

KUALA LUMPUR (April 14): Malaysian shares are anticipated to rise next week and analysts expect the FBM KLCI to extend its rally higher supported by positive sentiment on good Q1 earning result, further stimulus from global central banks, easing borrowing costs in Europe and stronger than expected China’s economic recovery.

Investor jitters at the regional markets over rising tensions in the Korean Peninsula dissipated with North Korea’s botched missile launch.

However, euro zone crisis is flaring up and debt auctions by safe-haven Germany and current bad boy Spain in the coming week will provide a gauge how far investor sentiment has changed since the shock and awe of recent ECB liquidity injections has worn thin, according to Reuters.

Affin Investment Bank Bhd vice president and head of retail research Dr Nazri Khan said the impressive rebound made by China stock market (China Shanghai composite posted best-in-two-months daily performance last week) would give more upside momentum to the emerging markets including Malaysia.

“As China is the world's biggest importer of commodities, we reckon stronger Chinese stocks and weaker USA dollar will lead to more commodity buying (FTSE China climbed 4%, CRB Index up 1% and Dollar Index down 2% respectively) which in turn will benefit Malaysian stocks.

Among the stocks that could be in focus on Bursa Malysia are Eversendai Corp Bhd, BOUSTEAD HOLDINGS BHD [], TENAGA NASIONAL BHD [] and Genting PLANTATION []s Bhd.

Eversendai Corp will undertake a 193 million riyal (RM158 million) structural steel job for the railway station at King Abdul-Aziz International Airport in Saudi Arabia.

The company said last Friday that it ha been appointed as subcontractor for the project by Saudi Binladin Group Architecture & Building CONSTRUCTION [] Division.

Bosutead has roped in Luxembourg-based Ikano Holding SA as a joint venture (JV) partner to acquire prime Kuala Lumpur land where both companies intend to develop and manage a shopping centre.

Boustead last Friday said the JV would it to increase its portfolio of retail investment PROPERTIES [] and leverage on its expertise to jointly develop and manage a shopping centre in the Kuala Lumpur city centre location," Boustead said.

Ikano owns and runs IKEA retail outlets across South East Asia under a franchise agreement with IKEA System BV.

Tenaga could extend its gains on Monday on the back of its net profit rising more than four fold from a year earlier, as a RM2.02 billion fuel-cost compensation from the government and Petroliam Nasional Bhd mitigated the impact of costlier fuel to the state-owned utility's profits.

The stock rose 10 sen to close at RM6.61 last Friday.

Genting Plantations will acquire a controlling 63.2% stake in a joint venture (JV) company for US$116 million (about RM355 million), a move which will give the acquirer access to some 74,000 ha of oil palm plantation in Kalimantan, Indonesia.

In a statement to Bursa Malaysia on Friday, Genting Plantations said it would jointly own the Singapore-based JV entity Global Agripalm Investment Holdings Pte Ltd with Global Agrindo Investment Co Ltd which will hold the remaining stake. Global Agrindo is part of Indonesia-based Sin Tek Huat Group.



Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.