DiGi.Com 1Q net profit dips 3.24% to RM320.64m

KUALA LUMPUR (April 25): DIGI.COM BHD [] net profit for the first quarter ended March 31, 2012 dipped 3.24% to RM320.64 million from RM331.39 million a year earlier.

In a statement Wednesday, DiGi said revenue for the period grew 9.7% to 1.57 billion from RM1.43 billion in 2011, due mainly to data revenue which accounted for close to 31% of total revenue.

Earnings per share was 4.12 sen compared to 4.26 sen a year earlier.

DiGi will pay a first interim tax exempt dividend of 5.9 sen per ordinary share for the financial year ended Dec 31, 2012 on June 8 June this year.

Commenting on its revenue, the company said growth came on the back of continued momentum in its business transformation programme.

Its chief executive officer Henrik Clausen said the telco had seen a steady increase in demand for mobile internet with 5.3 million mobile internet users as of March 31, 2012.

“We believe we will continue to see a significant increase in the number of active mobile internet customers in the coming years, and we will focus our investments on building the right infrastructure and services to enable us to truly deliver the promise of mobile internet to more Malaysians,” said Clausen

In a separate announcement, DiGi said its wholly owned unit DiGi Telecommunications Sdn Bhd (DiGiTel) will undertake a capital distribution of about RM495 million to DiGi on the basis of cash repayment of 99 sen for every one existing share of RM1 each in DiGiTel.

“Upon receipt of the cash proceeds from DiGiTel, DiGi expects to distribute approximately RM495 million (less expenses) representing 64 sen per share to its shareholders,” it said.



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Privasia unit gets RM12.8m fibre optic job in Malacca

KUALA LUMPUR (April 25): Privasia TECHNOLOGY [] Bhd’s subsidiary Privanet Sdn Bhd (Privanet) has received a contract worth RM12.8 million from the Malacca state government to install and maintain fibre optic network in that state.

In a statement Wednesday, the company said Privanet had received a letter of tender acceptance from the Malacca state government to install a complete fibre optic network in the state by the third quarter of 2012.

Privasia chief executive officer and managing director Puvanesan Subenthiran said that upon completion, the project would enhance the internet experience and connectivity of the population.

“This project will certainly elevate us to the next level in the telecommunications industry,” he said.

Privasia said the project was awarded by Melaka ICT Holdings Sdn Bhd (MICTH), a state-owned enterprise that provides ICT services, solutions and products to assist the state government in empowering Malacca as a key centre of excellence in the ICT sector.

The project is expected to be completed by September 2012, it said.



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Country View 1Q profit up 8-fold

KUALA LUMPUR (April 25) : COUNTRY VIEW BHD [], a real estate developer, posted an almost eight-fold increase in first quarter net profit from a year earlier on higher property sales.

In a statement to the exchange on Wednesday, Country View said net profit came to RM5.95 million versus RM761,000 previously as revenue almost tripled to RM37.87 million from RM14.2 million.

“Barring unforeseen circumstances, the group expects its performance for the financial year ending November 30, 2012 to improve further,” Country View said.

The company said this is in anticipation of revenue and profit recognition from the sale of its property development projects in Johor.



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DiGiTel to undertake capital distribution of RM495m to DiGi.Com

KUALA LUMPUR (APRIL 25): DIGI.COM BHD []’s wholly owned unit DiGi Telecommunications Sdn Bhd (DiGiTel) will undertake a capital distribution of about RM495 million to DiGi on the basis of cash repayment of 99 sen for every one existing share of RM1 each in DiGiTel.

In a filing to Bursa Securities on behalf of DiGi on Wednesday, Hong Leong Investment Bank Bhd said the capital distribution was to be implemented via a reduction of the issued and paid-up share capital of DiGiTel pursuant to Section 64 of the Companies Act 1965.

“Upon receipt of the cash proceeds from DiGiTel, DiGi expects to distribute approximately RM495 million (less expenses) representing 64 sen per share to its shareholders,” it said.

The investment bank said DiGi intended to distribute the excess proceeds to its shareholders whose names appear in the Record of Depositors of the Company on an entitlement date, and in such manner, to be determined and announced later.

“The proposed capital distribution is subject to, amongst others, the order of the High Court of Malaya confirming the proposed capital distribution and consents from lender banks and creditors of DiGiTel, if necessary.

“Barring any unforeseen circumstances, DiGi is expected to complete the distribution by the first quarter of 2013,” it said.

The capital management initiative is undertaken by DiGi and its subsidiary to reward shareholders for their continuous support of DiGi, it said.



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KLCI dips to below 1,580-level, blue chips drag

KUALA LUMPUR (April 25): The FBM KLCI closed below the 1,580-point level on Wednesday, reversing its gains earlier in the morning session, weighed by losses including Genting, Tenaga, CIMB, KLK and Petronas Dagangan.

The index fell 2.93 points to 1,579.35.

Market breadth was weak with 405 losers, 315 gainers and 346 counters trading unchanged. Volume was 1.47 billion shares valued at RM1.53 billion.

Meanwhile, global shares rose on Wednesday ahead of the U.S. Federal Reserve's policy meeting, due mainly to signs of good demand for euro zone sovereign debt before a German bond sale, and some strong corporate earnings, according to Reuters.

Markets could take their cues from several planned public speeches by European Central Bank officials, which will be scrutinised for any signs it would consider more liquidity operations if the euro zone's problems worsened, it said.

At the regional markets, Japan’s Nikkei 225 rose 0.98% to 9,561.01, Taiwan’s Taiex added 0.86% to 7,563.18, and the Shanghai Composite Index gained 0.75% to 2,406.81 and Singapore’s Straits Times Index added 0.20% to 2,980.19.

Meanwhile, Hong Kong’s Hang Seng Index lost 0.15 % to 20,646.29 and South Korea’s Kospi shed 0.07% to 1,961.98.

Among the decliners on Bursa Malaysia, BAT fell 28 sen to RM55.12, KLK and TH PLANTATION []s lost 16 sen each to RM23.82 and RM2.65, CSL down 15 sen to RM1.48, UMS 14 sen to RM1.66, Yeo Hiap Seng 13 sen to RM2.88, Toyo Ink, Tanjung Offshore and MMC Corp down 12 sen each to RM1.36, 78 sen and RM2.62 respectively, while Quality Concrete lost 11 sen to RM1.24.

Utopia was the most actively traded counter with 186.1 million shares done. The stock added one sen to 9.5 sen.

Other actives included Ariantec, Ramunia, CSL, Metronic, Astral Supreme, HWGB and JCY.

Meanwhile, the gainers included Panasonic, UMWE, The Store, NSOP, SPB, Batu Kawan, Cepco, TDM and Scientex.



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Navis Capital to trigger GO for SEGi today

KUALA LUMPUR: Navis Capital Partners Ltd is expected to increase its stake to over 33% today and make a general offer (GO) for the remaining shares in SEG INTERNATIONAL BHD [] (SEGi).

An executive close to the matter told The Edge Financial Dailyon on Wednesday that Navis Capital would announce the GO at a slight premium over the RM1.71 per share.

Navis Capital had earlier acquired 27.8% stake in SEGi at RM1.71 per share from Cerahsar Sdn Bhd, Segmen Entiti Sdn Bhd, and Datuk Chee Hong Leong.

The source confirmed that SEGI’s major shareholder and managing director Datuk Seri Clement Hii, who holds a 28.4% stake, would remained and not accept the GO.

This morning, 18 million SEGi warrants were traded off market for RM21.78 million or RM1.21 per share.



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AirAsia, MAS fall, focus on share-swap, oil prices

KUALA LUMPUR (April 25) : AIRASIA BHD [] and MALAYSIAN AIRLINE SYSTEM BHD [] (MAS) shares fell against the backdrop of rising crude oil prices, and possibly, on concerns that the share-swap arrangement between both airlines may be reversed due to opposition from MAS employees.

AirAsia declined as much as 2.3% or eight sen to settle at RM3.33 at lunch break while MAS was down 0.8% to RM1.24 before trading unchanged at midday interval. AirAsia and MAS saw some two million and 600,000 shares done respectively.

AirAsia is the second-largest decliner among the FBM KLCI‘s 30 stocks after diversified group MMC Corp Bhd which fell 3.65% to RM2.64.

Crude oil futures rose as global markets responded positively to improving US corporate earnings and housing sector updates, apart from firm demand for European government bonds.

Crude oil on the New York Mercantile Exchange rose 11 cents to US$103.66 a barrel versus the IntercontinentalExchange’s Brent crude oil which was up 10 cents to US$118.26 a barrel.



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TH Plantations among top decliners on weaker 1Q profit

KUALA LUMPUR (April 25) : TH PLANTATION []s Bhd fell as much 3% to be among major decliners across the exchange on the company’s weaker first quarter (1Q) profits.

Shares of TH Plantations declined nine sen to settle at RM2.72 at lunch break with some 800,000 shares done.

The company said on Tuesday net profit fell 40% to RM13.07 million in the quarter to March 31, 2012 (1QFY12) from RM 21.83 million a year earlier due to higher cost of sales and tax expense. Revenue, however, grew 27% to RM95.05 million from RM75.06 million.

While the 1Q numbers are not expected to augur well for the company’s shares, analysts have, however, directed the spotlight on TH Plantations plan to reward shareholders with a first and final single-tier dividend of 12.5 sen a share for financial year ended December 31, 2011.

“Although the lacklustre 1QFY12 performance would be negative to sentiment, the upcoming ex-date of its 2011 final dividend of 12.5sen/share on May 2,2012 will provide some support to the share price, we believe,” Maybank Investment Bank Bhd analyst Ong Chee Ting wrote in a note.

“We maintain our earnings estimates for now pending further clarification from management,” Ong added. Maybank is maintaining its target price of RM2.75 and “hold” call for TH Plantations shares.



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KLCI edges down 0.1% at mid-day break

KUALA LUMPUR (April 25): The FBM KLCI edged down 0.1% at the mid-break on Wednesday in choppy trade, weighed by losses at key blue chips including Genting, Tenaga and Petronas-linked counters.

The benchmark index was down 0.81 of a point to 1,581.47 at the mid-day break.

Gainers trailed losers by 271 to 302, while 318 counters trade unchanged. Volume was 777.12 million shares valued at RM621.37 million.

The ringgit weakened 0.04% to 3.0638 versus the greenback, crude palm oil futures fell RM3 per tonne to RM3,460, crude oil gained 21 cents per barrel to US$103.76 and gold added 10 cents an ounce to US$1,642.38.

Meanwhile, Asian shares rose on Wednesday, buoyed by firm U.S. corporate earnings, signs of an improving U.S. housing market, and healthy demand for euro zone sovereign debt, while investor focus shifted to the Federal Reserve's policy meeting.

Markets will be looking for the Fed's economic assessment and clues to future monetary policy, including the probability of a third round of quantitative easing, when it ends its two-day meeting later on Wednesday.

At the regional markets, Japan’s Nikkei 225 gained 0.98% to 9,560.47, Hong Kong’s Hang Seng Index edged up 0.08% to 20,693.10, the Shanghai Composite Index rose 0.33% to 2,396.68, Taiwan’s Taiex gained 0.83% to 7,561.07, South Korea’s Kospi was up 0.23% to 1,967.99 and Singapore’s Straits Times Index was up 0.09% to 2,976.93.

Maybank Investment Bank Bhd head of retail research and chief chartist Lee Cheng Hooi in a note to clients on Wedneday said the FBM KLCI declined 1.52 points to close at 1,582.28 on Tuesday.

“Its resistance areas of 1,582 and 1,609 will cap market gains, whilst the weaker support areas are located at 1,562 and 1,579.

“Despite the US markets’ better tone last night, we may be in for another day of heavy selling here,” he said.

On Bursa Malaysia, Petronas Dagangan was the top loser and fell 20 sen to RM19.08, Tradewinds PLANTATION []s fell 15 sen to RM5.51, UMS 13 sen to RM1.67, Yeoh Hiap Seng 12 sen to RM2.89, Aeon Credit 11 sen to RM9.87, MMC Corp 10 sen to RM2.64, TH Plantations nine sen to RM2.72, Tanjung Offshore 8.5 sen to 81.5 sen and Rapid fell eight sen to RM2.49.

Meanwhile, Genting and Tenaga fell four sen each to RM10.52 and RM6.49, KLK eight sen to RM23.90 and Petronas Gas fell six sen to RM16.88.

Utopia was the most actively traded counter with 108.85 million shares done. The stock added one sen to 9.5 sen.

Other actives included Ariantec, Ramunia, CSL, Metronic, JCY, Karambunai and Astral Supreme.

Gainers included Panasonic, UMW, TDM, KPJ shares and warrants, Pintaras, Ekovest, MPI and Carlsberg.



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Prestariang gains 8% on higher education venture

KUALA LUMPUR (April 25) : Prestariang Bhd advanced as much as 8% on updates that the information TECHNOLOGY [] service provider plans to venture into higher education.

Shares of Prestariang gained seven sen to RM1 before trading lower at 98 sen at 12.14pm with some 3.5 million shares done.

According to news reports quoting its financial executives, the company has secured the rights to set up a private institute which will offer degree courses in information and communication technology.



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Ramunia actively traded, audited net loss widens

KUALA LUMPUR (April 25) : RAMUNIA HOLDINGS BHD [] rose as much as 3.8% on Wednesday morning, placing shares of the oil and gas structure fabricator among the most actively traded across the exchange.

Ramunia shares added 1.5 sen to 41.5 sen before trading lower at 40.5 sen at 10.28am with some 16 million shares done.

The reasons for the stock’s trading dynamics are unclear for now. However, it is worth noting that the company which plans to change its name to TH Heavy Engineering Bhd, had last Monday restated its net loss for financial year ended December 31, 2011.

Ramunia said its audited net loss widened to RM11.44 million versus the unaudited net loss of RM9.73 million reported earlier.

“The variation was due to the adjustment made to the accounts for the crystallisation of a contingent liability, for which, a consent judgement was entered into before the adoption of the accounts by the board of directors on April 18, 2012,” Ramunia said.



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KLCI gains on US, Europe updates

KUALA LUMPUR (April 25) : Malaysians stocks rose in tandem with Asian peers following a stronger close across US markets in overnight trade. Global markets have responded positively to improving US corporate earnings and housing sector updates, apart from firm demand for European government bonds.

Analysts said investors will watch for clues of further quantitative easing (QE) by US policymakers to sustain the world’s largest economy. Signs of a further QE may spur global equities while an opposite indication could result in profit taking, they said.

“Selling pressures on Asian equities may abate today after Wall Street’s performance last night,” HwangDBS Vickers Research Sdn Bhd wrote in a note.

At 9.59am, the FBM KLCI added 1.13 points to 1,583.41. Across the exchange, some 372 million shares worth RM188 million were traded, leading to 222 gainers versus 138 decliners.

Top gainers UMW HOLDINGS BHD [] rose 18 sen to RM7.83, while Panasonic Manufacturing Malaysia Bhd was up 16 sen to RM22.30.

Among decliners, UMS HOLDINGS BHD [] fell 20 sen to RM1.60 while PPB GROUP BHD [] was down 12 sen to RM16.66.

Among actively-traded stocks, RAMUNIA HOLDINGS BHD [] added one sen to 41 sen with some 15 million shares done.

Across Asia, Japan’s Nikkei 225 rose 1% to 9,562.62 points while South Korea’s Kospi was up 0.34% to 1,970.11. The Australian exchange is closed for a public holiday.



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UMW extends gains after Maybank IB Research upgrade

KUALA LUMPUR (April 25): UMW HOLDINGS BHD [] extended its gains on Wednesday after Maybank Investment Bank Bhd Research had upgraded the stock to a Buy from Hold on Monday and raised its target price to RM8.35 (from RM6.95).

At 9.38am, UMW rose 17 sen to RM7.82 with 80,600 shares done.

Maybank IB Research in a note on Monday said it had upgraded UMW, ahead of recoveries at the automotive and O&G sectors, and on the back of a 10-11% rise in 2012-13 net profit forecasts.

“The disruption to the regional auto supply chain has abated while its O&G segment is at the cusp of a revival.

“ With market already absorbing the anticipated weak 1Q12 earnings and its 2011 kitchen-sinking exercise, UMW now offers a recovery play angle with modest growth (3-year EPS CAGR of 20%) and undemanding valuations, supported by a decent dividend yield (6%),” it said.



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Selangor Properties up 3%, trades ex-dividend

KUALA LUMPUR (April 25) : Selangor PROPERTIES [] Bhd rose 3% to be among the top gainers as investors chased the stock to capitalise on its dividends.

Selangor Properties shares climbed 10 sen to RM3.68 as at 9.21am.

The stock trades ex-dividend on Wednesday. Shareholders have approved the company’s plan to pay a first and final dividend of 10% less 25% tax for financial year ended October 31, 2011. The final lodgement date falls on Friday.



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MIDF Research downgrades TH Plantation to Trading Sell, cuts TP to RM2.12

KUALA LUMPUR (April 25): MIDF Research has downgraded TH PLANTATION []s Bhd to Trading Sell from Neutral and cut its target price to RM2.12 from RM3 previously following its earnings revision for the company.

In note Wednesday, MIDF Research however said it was applying a higher target PER in order to reflect TH Plant’s stable and mature profile.

The research house said its new target price of RM2.12 was derived from 13.0x EPS12 which was one standard deviation above its 3-year historical average of 10.8x (which is our previous valuation).

“We believe that the positive news flow of its future expansion has been priced in and the weak 1Q12 numbers would dampen investors’ sentiment and be an excuse for investors to take profit. At current price TH Plant is pricey, trading at 17.2x forward PER.

“We expect TH Plantation to come under selling pressure in the short term and hence downgrade it to Trading Sell,” it said.



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KLCI opens lower, blue chips weigh

KUALA LUMPUR (April 25): The FBM KLCI slipped in early trade on Wednesday, despite improving sentiment at key regional markets following the firmer overnight close at Wall Street.

At 9am, the FBM KLCI shed 0.8 of a point to 1,582.00, weighed by losses at select blue chips.

Gainers led losers by 63 to 29, while 57 counters traded unchanged. Volume was 17.85 million shares valued at RM9.35 million.

Asian shares rose on Wednesday as firm U.S. corporate earnings, signs of an improving U.S. housing market, and healthy demand for euro zone sovereign debt stoked risk appetite, while focus shifted to the Federal Reserve's meeting, according to Reuters.

Markets will be looking for the Federal Reserve's economic assessment and clues to future policy, including the probability of a third round of quantitative easing, when it concludes its two-day policy meeting later on Wednesday, it said.

Maybank Investment Bank Bhd head of retail research and chief chartist Lee Cheng Hooi in a note to clients on Wedneday said the FBM KLCI declined 1.52 points to close at 1,582.28 on Tuesday.

“ Its resistance areas of 1,582 and 1,609 will cap market gains, whilst the weaker support areas are located at 1,562 and 1,579.

“Despite the US markets’ better tone last night, we may be in for another day of heavy selling here,” he said.

Among the early decliners on Bursa Malaysia were KLK, HLFG, Telekom, Genting Malaysia, RHB Capital, Gamuda, Bumi Armada, UOA REIT, Sunway and Maybank.



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Stocks to Watch Top Glove, SelProp, MAS, Globetronics, Keck Seng

KUALA LUMPUR (April 24): Malaysian stocks will take the cue from crucial global economic data from Europe and the US as investors assess external factors against domestic pre-election sentiment.

European highlights include the sale of government bonds in Spain and the Netherlands, while across the Atlantic the spotlight will be on indications of more quantitative easing (QE) by US policymakers to sustain the world's largest economy.

Analysts said signs of a further QE may spur global equities while an opposite indication could result in profit taking. In the US, the S&P 500 futures added 3.75 points to 1,366.5, while the Dow Jones Industrial Average futures climbed 30 points to 12,901.

In Malaysia, the FBM KLCI fell 1.52 points to close at 1582.28 points on Tuesday.

Stocks to watch on Wednesday are Top Glove Corp Bhd, Selangor PROPERTIES [] Bhd (SelProp), MALAYSIAN AIRLINE SYSTEM BHD [] (MAS), GLOBETRONICS TECHNOLOGY [] BHD [], and KECK SENG (M) BHD [].

Maybank Investment Bank Bhd has raised its earnings per share (EPS) forecast for Top Glove by 8% to 12% for financial years (FY) ending Aug 31, 2012 to 2014 after taking into account lower prices of natural rubber. Maybank IN, which revised upwards its fair value for Top Glove shares by 29% to RM5.40 from RM4.20, also upgraded the stock to a "buy" from "sell".

SelProp shares will trade ex-dividend on Wednesday. Shareholders have approved the company's plan to pay a first and final dividend of 10%, less 25% tax for the financial year ending Oct 31, 2011.

MAS gained as much as 3.3% or four sen to RM1.27 in intraday trade, against a backdrop of declining crude oil prices. Commodity prices fell on concerns that European sovereign debt woes will curb demand.

Globetronics's first quarter (1Q) net profit declined 4% from a year earlier, as the electronics component manufacturer registered lower revenue and higher operating cost. In a statement to the bourse, Globetronics said net profit came to RM6.2 million in the quarter to March 31, 2012, against RM6.43 million previously. Revenue fell 15% to RM56.79 million from RM67.09 million, as the company registered less turnover from China and Singapore, it said.

Keck Seng — which undertakes oil palm cultivation, besides real estate and hospitality operations — said it plans to reward shareholders with a final dividend of 6%, less 25% tax for financial year ended Dec 31, 2011. The proposed dividend requires shareholders' consent at the firm's coming annual general meeting.



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