Zeti: Strong February trade numbers will have an impact on overall economy

KUALA LUMPUR (April 19): Malaysia's strong trade numbers for February, which was beyond expectations, will have a positive impact on the overall economy if the trend continues, says Bank Negara Malaysia Governor Tan Sri Dr Zeti Akhtar Aziz.

"We've seen the poor numbers in January but the February trade numbers in particular improved significantly beyond our expectations.

"If this trend continues, it will have an impact on our overall economy," she added when commenting on Malaysia's first quarter economic performance.

Earlier, she presented the 2012 Kijang Emas Scholarship Award to five recipients.

Zeti said the central bank would soon release the numbers for the performance of the Malaysian economy in the first quarter.

Asked to comment on the World Bank's revised forecast for Malaysia's economic growth, Zeti said:"The numbers are coming out now … they are within our expectations. We said that growth would be four to five per cent. If the numbers continue to be positive and more favourable, then we will be closer to the upper-end of the range.

"But, if there are still risks in the international environment, in Europe in particular, and if that materialises, it will have a dampening effect.

"Right now, the trend has been quite positive and so, if this is sustainable, we will see improvement in our overall economy, closer to the upper-end of the range," Zeti added.

The World Bank recently lowered its 2012 growth forecast for Malaysia to 4.6% compared with its earlier forecast of 4.9%, citing the current global economic weakness as the potential dampener to the country's external trade performance.

Zeti also said inflation had moderated and the trend would continue.

As such, she said the interest rate level was appropriate for the current scenario.

"Inflation has actually moderated and we believe that this trend will continue, unless there is any other development that happens ..the current interest rate level is appropriate for the current conditions, for the conditions that is prevailing and for our projections.

"Based on our projection going forward, inflation will continue to moderate," she said.

The five recipients of the 2012 Kijang Emas Scholarship Award are Turga Ganapathy, Kwong Kien Yi, Wardah Shafiqah Mohammad Fadil, Adnan Zikri Jaafar and Pavithran Maniam. — 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.

PM to launch Pesisiran Warisan Pekan project on Saturday

KUANTAN (April 19): Prime Minister Datuk Seri Najib Razak is expected to launch the Pesisiran Warisan Pekan project developed by the East Coast Economic Region Development Council (ECERDC) in Pekan on Saturday.

In a statement on Thursday ECERDC chief executive officer Datuk Jebasingam Issace John said the project was aimed at transforming Pahang into a preferred tourist destination which has tourist-friendly facilities and services.

"A Karnival Rakyat will also be organised in conjunction with the launch. The project will also elevate the economic status the people living in Pekan. We want the people to come to the carnival and see for themselves what Pekan can offer," he said.

According to Jebasingan, the carnival that kicks off from 8am to 10pm along Jalan Sultan Ahmad, Pekan would also comprise various activities and traditional games, karaoke and lucky draw. — 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.

CMMT 1Q profit up 10%

KUALA LUMPUR (April 19): Capitamalls Malaysia Trust's (CMMT) first quarter net profit rose 10% from a year earlier as the retail-based Real Estate Investment Trust (REIT) registered higher revenue following the inclusion of the East Coast Mall in Kuantan to the group's portfolio.

In a statement to the exchange on Thursday, CMMT said net profit came to RM34.44 million against RM31.44 million previously, while revenue was up 36% to RM71.4 million from RM52.68 million.

Its portfolio includes Sungei Wang Plaza and The Mines in the Klang Valley, besides Penang's Gurney Plaza. The property trust plans to reward shareholders with a dividend of 2.09 sen a unit during the quarter.



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.

Brite-Tech restates FY11 PAT

KUALA LUMPUR (April 19) : BRITE-TECH BHD [] says its audited profit after tax for financial year ended December 31, 2011 more than doubled following accounting adjustments for fair value gains in the company’s investment PROPERTIES [].

In a statement to the exchange on Wednesday, the water treatment specialist said the audited figure came to RM3.05 million, a substantial 116% deviation from the unaudited figure of RM1.42 million announced last February.

Brite-Tech shares fell 4% or 0.5 sen to close at 13 sen on Wednesday for a market capitalisation of RM32.76 million.



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.

KPJ Healthcare teams up with Naim Holdings to set up hospital in Sarawak

KUALA LUMPUR (April 19): KPJ HEALTHCARE BHD [] is teaming up with NAIM HOLDINGS BHD [] to build and own a hospital in Miri, Sarawak.

It said on Thursday that its wholly owned unit, Kumpulan Perubatan (Johor) Sdn Bhd (KPJSB)had signed a joint venture agreement (JV) with Naim Land Sdn Bhd (NLSB) for the purpose of designing, developing, building, completing and owning a purpose-built hospital building and subsequently operating as a hospital on 4-acre land in Kuala Baram district.

NLSB is a wholly owned subsidiary of Naim Holdings Bhd.

KPJ said the JV would operate through a joint venture company (JVC) , of which KPJSB will hold 70% equity interest while NLSB will hold the remaining 30% equity interest at all times.

It said the JVC would have an initial authorised share capital of RM25 million divided into 25 million ordinary shares of RM1.00 each and an initial issued share capital of RM2.00 divided two (2) ordinary shares of RM1.00 each.

KPJ said the subscription price of RM13.76 million for 13.76 million JVC shares would be financed via internally generated funds of the KPJ Group.

On the rationale for the JV, KPJ said the joint venture was in line with its objective to increase its network of hospitals to locations where private healthcare is in demand, enlarge the customer base as well as other areas of healthcare services.

IT said the JV would leverage on KPJ and NLSB’s capabilities to successfully operate as a private hospital.

“The Proposed JV shall lower KPJ’s initial start up cost, i.e. cost of land and CONSTRUCTION [] cost of hospital building, and lower maintenance spend,” 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 closes lower as investors remain jittery

KUALA LUMPUR (April 19): The FBM KLCI closed lower on Thursday, in line with the mixed sentiment at regional bourses underpinned by concerns of the Euro zone sovereign debt crisis.

Markets have grown jittery about the euro zone's capacity to prevent Spain's fiscal woes in particular from spreading to other vulnerable peripheral euro zone economies, despite massive liquidity injections by the European Central Bank, according to Reuters.

The FBM KLCI shed 2.24 points on Thursday to close at 1,596.62.

Market breadth turned negative with 429 losers, 281 gainers and 350 counters trading unchanged. Volume was 1.71 billion shares valued at RM1.56 billion.

At the regional markets, Japan’s Nikkei 225 fell 0.82% to 9.588.38, South Korea’s Kospi down 0.23% to 1,999.86 and the Shanghai Composite Index shed 0.09% to 2,378.63.

Meanwhile, Taiwan’s Taiex gained 0.23% to 7,622.69.

On Bursa Malaysia, Dutch Lady fell 60 sen to RM34.38, KLK down 40 sen to RM23.80, BAT shed 20 sen to RM55, Country View down 18 sen to 64 sen, CSL 15 sen to RM1.53, SAM Engineering 14 sen to RM3.65, Tradewinds and KESM down 13 sen each to RM9.69 and RM2.05, while Subur Tiasa lost 10 sen to RM2.98.

Ariantec was the most actively traded couter with 266.8 million shares done. The stock fell 1.5 sen to 17.5 sen.

Other actives included Utopia, CSL, Metronic, DBE Gurney, Compugates, Managed Pay, Iris Corp and Astral Supreme.

Gainers on Thursday included Pintaras, F&N, GAB, Metal Reclamation, Tan Chong, Can-One, Kian Joo, Bintulu Port and Genting.



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 maintains Neutral on Bursa, cuts target price to RM7.28

KUALA LUMPUR (April 19); CIMB Research has maintained its Neutral recommendation on BURSA MALAYSIA BHD [] at RM7.03 and cut its target price to RM7.28 (from RM7.65) and said trading activity was likely to weaken,

In a note April 19, the research house said it regarded Bursa’s 1Q12 net profit as being in line even though it came in at 27% of CIM Research’s full-year forecast and consensus numbers.

“1Q equity and derivative income was already down year-on-year.

“Given our cautious stance on the equity market, we now value Bursa at a 20% discount to its 5-year average P/E instead of 15%, which reduces our target P/E from 25.5x to 24x. We remain Neutral on the stock as it is expected perform in line with the market,” 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.

Guocoland down 4% to 6-month low on 3Q losses

KUALA LUMPUR (April 19) : Guocoland (M) Bhd shares fell 4% to a six-month low after the property developer announced net losses in the third quarter due to lower revenue besides higher operating and finance expenses.

The stock declined 3.5 sen to 80 sen as at 2.41pm, the lowest since October 2011.

Guocoland told the exchange on Wednesday that it posted a net loss of RM2.37 million in the quarter to March 31, 2012 against a net loss of RM3.65 million a year earlier. Revenue fell 2% to RM23.44 million from RM23.96 million.

Its net assets per share stood at RM1.13 as at March 31 this year.



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.

AmResearch upgrades UMW to Buy, raises fair value to RM8.90

KUALA LUMPUR (APRIL 19): AmResearch Sdn Bhd has upgraded UMW HOLDINGS BHD [] to a Buy from hold previously, and raised its fair value to RM8.90 (from RM6.80).

In a note April 19, the research house said its sum-of-parts- derived valuation implied 12 times FY12F earnings (vs. 10x previously) to reflect an earnings re-acceleration which could test record highs from this year onwards.

“We raise earnings by 20%-25% over FY12F-14F to factor in:- (1) Higher auto sales; (2) Higher O&G earnings; and (3) Improved margins at the equipment division.

“After a kitchen sinking year in FY11, we believe earnings have reached an inflection point. Consensus earnings have been downgraded 7%-23% over the past 12 months, and we believe the earnings revision cycle has bottomed,” it said.

AmResearch said its forecasts were now 11% above street estimates and consensus earnings upgrades are a key re-rating catalyst.

It said a fresh mass model line-up, i.e. Avanza, IMV models and the high margin CKD Camry in June, coupled with stronger margins via a stronger Ringgit and improved plant economies of scale will drive a re-acceleration of UMW’s auto earnings (FY12F: +20%).

“We project a Toyota+Lexus TIV of 92,953 units (+5% YoY). Toyota sales are trending against industry (+7% YTD vs. Industry’s -13%).

“March growth momentum is likely to gain traction given:- (1) Recovery from supply crisis; (2) Huge order backlog of 4-6 months’ waiting list; and (3) A more than doubling of Camry annual sales. From a valuation stand-point,

The research house said UMW was a blue-chip laggard, having underperformed the market run-up over the past 6 months.

At 10.5 times FY12F earnings, UMW is trading at a 25% discount to the historical average of 14 times, 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.

Bursa posts flat 1Q profit , trading income falls

KUALA LUMPUR (April 19) : BURSA MALAYSIA BHD [] posted flat profit growth in the first quarter as the stock exchange operator’s lower operating expenses mitigated the impact of less revenue during the period.

In a statement on Thursday, Bursa Malaysia said its net profit rose 0.7% to RM40.77 million in the quarter ended March 31, 2012 from RM40.49 million a year earlier while revenue fell 4.8% to RM110.52 million from RM116.11 million.

Bursa said revenue declined due to less trading income from the securities and derivatives market. Looking ahead, the group said it foresees global volatility due to the European sovereign debt woes, slowing growth in China, and rising crude oil prices.

The bourse operator, however, said it expects its earnings to be sustained by the implementation of domestic public projects under the Economic Transformation Programme which is seen as a crucial driver of the local economy.



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 slips into the red at mid-day break

KUALA LUMPUR (April 19): The FBM KLCI gave up some ground to slip into negative territory at the mid-day break on Thursday, in line with the generally tepid sentiment at key regional markets.

Asian shares and the euro traded in tight ranges on Thursday ahead of a Spanish bond sale seen as a key test of investors' risk appetite amid renewed concerns over the euro zone's debt crisis, according to Reuters.

Meanwhile, U.S. stocks slipped on Wednesday, a day after Wall Street's best gains in a month, as uninspiring earnings from tech bellwethers IBM and Intel gave investors a reason to take profits, according to Reuters

The FBM KLCI fell 2.80 points to 1,596.06 at 12.30pm, weighed by losses at select blue chips including CIMB, KLK, Maybank and Genting.

Losers beat gainers by 358 to 221, while 311 counters traded unchanged. Volume was 1.02 billion shares valued at RM661.94 million.

The ringgit weakened 0.13% to 3.0686 versus the greenback, crude palm oil futures for the third month delivery fell RM30 per tonne to RM3,449, crude oil shed 11 cents per barrel to US$102.56 while gold lost US$4.50 an ounce to US$1,637.60.

At the regional markets, Japan’s Nikkei 225 fell 0.89% to 9,580.90, the Shanghai Composite Index down 0.14% to 2,377.57, Singapore’s Straits Times Index fell 0.08% to 2,998.17, south Korea’s Kospi lost 0.33% to 1,997.92, Taiwan’s Taiex edged down 0.01% to 7,604.367 while Hong Kong’s Hang Seng Index gained 0.36% to 20,856.40.

Among the major losers on Bursa Malaysia, Dutch Lady lost 38 sen to RM34.60, KLK 24 sen to RM23.96, Country View 21 sen to 61 sen, Tradewinds 16 sen to RM9.66, KESM and SAM Engineering down 12 sen each to RM2.06 and RM3.67, CSL 10 sen to RM1.68, Subur Tiasa eight sen to RM3 and Nice seven sen to 31 sen.

Meanwhile, CIMB lost three sen to RM7.64, Maybank and Genting down two sen each to M8.85 and RM10.80, and DiGi was down one sen to RM3.92.

Ariantec was the most actively traded counter with 143.99 million shares done. The stock was unchanged at 19 sen.

Other actives included Utopia, CSL, metronic, DBE Gurney, Compugates, Iris Corp and Astral Supreme.

Gainers included Can-One, Tan Chong, F&N, Pintaras, Jaya Tiasa, Bintulu Port, Aeon Credit, Utusan and GAB.



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.

Tenaga up 2% on AAA ratings

KUALA LUMPUR (April 19) : TENAGA NASIONAL BHD [] (TNB) shares rose as much as 2% after Malaysian Rating Corp Bhd (MARC) affirmed its AAA ratings for the state-owned utility’s Islamic bonds with a stable outlook.

TNB added 14 sen to RM6.69 before settling lower at RM6.58 at lunch break. Some 2.5 million shares changed hands.

MARC said its rating for TNB is supported by the utility’s economic importance which should ensure a high degree of government financial support to sustain its existing ratings in the future.

TNB’s second quarter net profit rose 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 utility’s profits.

TNB said net profit came in at RM2.82 billion in the quarter ended February 29, 2012 against RM641.1 million a year earlier as revenue grew 17% to RM8.63 billion from RM7.37 billion. It said its bottom line was also helped by higher electricity sales and foreign exchange translation gains.



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.

Bursa queries China Stationery

KUALA LUMPUR (April 19): Bursa Malaysia Securities Bhd has issued an unusual market activity (UMA) query to China Stationery Ltd over the sharp rise in the price and high volume in the company’s shares recently.

Ariantec was the among the most actively traded stocks in the morning session on Thursday on Bursa Malaysia with 315.47 million shares done.

The stock rose 14 sen to RM1.64 with 65.36 million shares done at 11.42am.



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.

FSBM trades ex-rights, down 21%

KUALA LUMPUR (April 19) : FSBM HOLDINGS BHD [] shares declined as much as 21% as shares of the information TECHNOLOGY [] firm trade ex-rights on Thursday.

The stock fell 6.5 sen to 25 sen before trading higher at 28 sen at 11.29am with 11,000 shares changing hands.

FSBM is undertaking a renounceable rights issue of up to 60.32 million new shares with an equal number of free new detachable warrants at an issue price of 30 sen per rights unit.

The exercise is undertaken on the basis of one rights share and one warrant for one existing unit held in FSBM. The rights units will start trading on the local exchange next Tuesday.



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.

Hovid up 7%, earnings closely watched

KUALA LUMPUR (April 19) : HOVID BHD [] shares rose as much as 7% on Thursday morning, possibly, in anticipation that the pharmaceutical products manufacturer will announce better quarterly earnings next month.

The stock climbed 1.5 sen to 23.5 sen before trading lower at 23 sen at 10.26am with some three million shares done.

Bursa Malaysia had on January 17 this year removed Hovid from the Practice Note 17 (PN17) list after the regulator granted the firm a waiver from complying with the requirement to submit a regularisation plan to the authorities.

The waiver was granted after taking into account Hovid’s financial track record and the company’s distribution of its shares in loss-making unit CAROTECH BHD []. Hovid’s net profit rose more than seven fold to RM10.76 million in the second quarter ended December 31, 2011 from RM1.47 million a year earlier.



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 weighed down by European debt concerns

KUALA LUMPUR (April 19) : Malaysian stocks erased earlier gains but still traded in positive territory on Thursday morning following a weaker overnight close across US markets, and as investors anticipate more European sovereign debt updates.

Investors will continue to monitor Spain government bond sales on Thursday and US corporate earnings as they weigh the impact of pre-election sentiment in Malaysia.

At 10am, the FBM KLCI added 0.71 points to 1,599.57. Across the exchange, some 424 million shares worth RM156 million were traded, leading to 161 gainers versus 166 decliners.

Top gainers BRITISH AMERICAN TOBACCO (M) [] Bhd rose 26 sen to RM55.46 while PINTARAS JAYA BHD [] added 17 sen to RM2.96.

Decliners KUALA LUMPUR KEPONG BHD [] fell 16 sen to RM24.04, while PPB GROUP BHD [] was down 10 sen to RM16.54.

Most active was 1 Utopia Bhd which rose one sen to nine sen with some 72 million shares done.

Among Asian bourses, Japan’s Nikkei 225 fell 0.67% to 9,602.36 points, South Korea’s Kospi was down 0.13% to 2,001.98, while Australia’s S&P/ ASX 200 rose 0.24% to 4,359.



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.

Maybank IB Research maintains Sell on Media Prima, target price RM2.34

KUALA LUMPUR (April 19): Maybank Investment Bank Bhd Research has maintained its Sell recommendation on MEDIA PRIMA BHD [] at RM2.52 with a target price of RM2.34 and said it does not believe that the determination to share sports content would benefit Media Prima greatly.

In a note April 19 the research house said if it wants prime sporting content, it will likely have to pay dear prices for them.

“We maintain our estimates and MYR2.34 target price on 13.5x 2012 PER.

“Although its current price poses only 9% downside risk, we maintain our SELL call for now pending a meeting with management. Note that 1Q12 gross TV adex plunged 11% YoY vs our estimate of +7% YoY,” 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.

Maybank IB Research maintains BUY on MAHB, target price RM7.10

KUALA LUMPUR (April 19): Maybank Investmnt Bank Bhd Research has maintained its Buy rating on MALAYSIA AIRPORT HOLDINGS BHD [] (MAHB) at RM5.71 with a target price of RM7.10 and said MAHB's February 2012 passenger traffic growth of 2.3% year-on-year , which brought year-to-date growth to 6.7%, was within the guidance of 6%-7% growth in 2012.

In a note April 19, the reseach house said the February slowdown was expected as the Chinese New Year was in January this year versus February back in 2011.

“Secondly, MAS has cut its system capacity by 10% in February as part of its business turnaround plan.

“We retain our forecast for 6.7% passenger traffic growth in 2012 as it has already taken into account these factors. Maintain BUY with an unchanged MYR7.10 per share DCF-based target price,” 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.

CIMB Research maintains Outperform on DRB-Hicom, target price RM4.60

KUALA LUMPUR (April 19): CIMB Research has maintained its Outperform rating on DRB-HICOM BHD [] at RM2.61 with a target price of RM4.60 and said Deftech’s tie-up with Tata Motors to develop and market the latter’s military vehicles to the Malaysian government is a feather in DRB-Hicom’s cap.

In a note April 19, the research house said support should be forthcoming from the government as it beefs up the nation’s defence capabilities.

“This new development reaffirms DRB’s long-term goal of becoming a local champion for the defence industry.

“We are retaining our Outperform call and SOP-based target price. DRB remains our preferred pick for exposure to the auto sector,” 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 up marginally at opening

KUALA LUMPUR (April 19): The FBM KLCI edged up marginally at the opening bell on Thursday, while regional bourses were mixed in early trade with investors treading water while awaiting the results of a key Spanish debt auction.

Meanwhile, U. stocks slipped on Wednesday, a day after Wall Street's best gains in a month, as uninspiring earnings from tech bellwethers IBM and Intel gave investors a reason to take profits, according to Reuters.

Asian shares moved in a narrow range on Thursday after the previous day's rally as investors grew cautious ahead of a key Spanish bond sale that would test the market's risk appetite as concerns mounted over the euro zone's debt crisis, it said.

The FBM KLCI was up 0.86 of a point to 1,599.72 at 9am.

Gainers edged losers by 54 to 20, while 76 counters traded unchanged. Volume was 37.77 million shares valued at RM9.65 million.

Among the early gainers were Jaya Tiasa, Genting, GAB, CSL, Top Glove, Pintaras, Tenaga, MMC Corp and Kencana.



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 maintains Outperform on Eversendai, fair value RM2.15

KUALA LUMPUR (April 19): RHB Research Institute Sdn Bhd has maintained its Outperform rating Eversendai Corp Bhd with a fair value of RM2.15 after the company was awarded a contract by Hyundai Engineering & CONSTRUCTION [] Co Ltd structural steel works worth RM134m for the National Museum of Qatar (Phase 2) project.

The research house in a note Thursday said the latest contract boosted Eversendai’s yer-to-date new jobs secured to RM844 million and its outstanding construction orderbook by 9% from RM1.53 billion to RM1.67 billion.

“Assuming an EBIT margin of 12-15%, the contract will fetch RM16.1-20.1 million EBIT over the contract period ending 2013.

“Forecasts are maintained as we have already assumed 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.

Stocks to Watch PBB, TNB, Eversendai, Century Software, FSBM

KUALA LUMPUR (April 18): External factors — especially those emanating from Europe and the US — are seen as crucial drivers of global stock markets on Thursday. Investors will continue to monitor Spain government bond sales and US corporate earnings as they weigh the impact of pre-election sentiment in Malaysia.

While trading volume across the Malaysian exchange has increased due to transactions for penny and ACE Market stocks, analysts are also mindful of the lower traded value. This, they said, is an indication that the broader market and blue chip stocks could still in consolidation mode due to cautious trade.

The FBMM KLCI of 30 blue chip stocks added 2.67 points to close at 1,598.86 on Wednesday, just short of the psychological 1,600-point barrier. A total of 2.13 billion shares worth RM1.62 billion were traded.

Stocks to watch on Thursday include PUBLIC BANK BHD [] (PBB), TENAGA NASIONAL BHD [] (TNB), Eversendai Corp Bhd, Century Software Holdings Bhd, and FSBM HOLDINGS BHD [].

PBB says its first quarter net profit rose 6% from a year earlier as higher interest and fee-based income, besides lower allowance for impaired loans, mitigated the impact of higher operating expenses. It said net profit came to RM940.81 million in the quarter ended March 31, 2012 against RM884.06 million previously. Revenue was up 13% to RM3.37 billion from RM2.99 billion.

Malaysian Rating Corp Bhd (MARC) has affirmed its AAA ratings for TNB's Islamic bonds with a stable outlook. The rating is supported the utility's economic importance which should ensure a high degree of government financial support to sustain its existing ratings in the future, according to MARC.

South Korea's Hyundai Engineering & CONSTRUCTION [] Co Ltd has roped in Malaysia's Eversendai as a subcontractor for Package 2 of the Qatar National Museum project. The package is worth QAR160 million (RM134 million). Eversendai said it will fabricate and supply steel structures for the construction of the museum.

Century Software has clinched two contracts worth a combined RM5.6 million from the Inland Revenue Board (LHDN). The job includes the maintenance and upgrade of accounting software for the client, Century said.

Information TECHNOLOGY [] firm FSBM will trade ex-rights on Thursday. The firm is undertaking a renounceable rights issue of up to 60.32 million new shares with an equal number of free new detachable warrants at an issue price of 30 sen per rights unit. The exercise is undertaken on the basis of one rights share and one warrant for one existing unit held in FSBM. The rights units will start trading on the local exchange next Tuesday.



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.