SC says received a total of 19 corporate proposals in Q1 2012

KUALA LUMPUR (April 30); The Securities Commission Malaysia (SC) received a total of 19 corporate proposals in Q1 2012 as compared to 41 proposals in Q4 2011.

In a statement Monday, the SC said this was in line with the trend of increasing preference for fund-raising through issuance of corporate bonds and sukuk, the majority (79%) of the proposals were for issuance of private debt securities (PDS).

The SC said that out of the 19 corporate proposals, 15 were for PDS while the remaining four (i.e. 21%) were equity applications.

“Out of the four equity applications, two were for IPO, as compared to one in Q4 2011,” it said.

The SC said approved ringgit-denominated sukuk issuances in Q1 2012 stood at RM11 billion, which reflected an increase from the RM7.7 billion registered in the same quarter last year.

“The SC has also approved one IPO in Q1 2012, which is expected to raise RM20.4 million from the capital market, with a potential market capitalisation of RM82.0 million.

“Total amount of funds to be raised from the IPO and private debt securities approved in Q1 2012 is RM21.9 billion, compared to RM49 billion in Q4 2011,” it said.

For collective investment schemes, the SC said it approved 14 applications to establish new funds in Q1, as compared to 33 in Q4 last year.

“Out of the total applications for new funds, five were for the establishment of new unit trust funds; nine were for wholesale funds,” it said.



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Pantech 4Q net profit surges 90% to RM10.68m

KUALA LUMPUR (April 30): PANTECH GROUP HOLDINGS BHD [] Net profit for the fourth quarter ended Feb 29, 2012 surged 90% to RM10.68 million from RM5.11 million a year earlier, due mainly to an increase in revenue.

The company said on Monday that its revenue for the quarter jumped 76.2% to RM128.45 million from RM72.9 million in 2011 due to improved sales demand from oil and gas sector with the on-going new projects.

Earnings per share rose to 2.37 sen from 1.14 sen, whiel net assets per share was 75 sen.

Pantech proposed a final single tier dividend of 1.3 sen per share 20 sen each amounting to RM5.84 million for the financial year ended Feb 29, 2012, subject to shareholders' approval.

For the financial year ended Feb 29, Pantech’s net profit rose 19% to RM34.5 million from RM28.99 million in 2011, while revenue rose to RM437.03 million from RM335.78 million.

Reviewing its performance, Pantech said the higher profit and revenue was due mainly to higher sales from both manufacturing and trading division, and the contribution of margin from sale of carbon steel niche products.

On its prospects, Pantech said it would continue to focus and expand on its existing revenue generating businesses and seek opportunities to grow its businesses, both locally and overseas, by expanding its capacity as the major pipes, fittings and flow controls solutions provider to the oil and gas industries and related upstream and downstream industries.

“The recent oil and gas discoveries offshore Malaysia and the on-going oil and gas investment under Economic Transformation Programme (ETP) announced by the Government of Malaysia is expected to intensify capital investment in this sector.

“The Group is of the view that the long term outlook of the oil and gas industries continues to be positive and barring any unforeseen circumstances, the Group expects its overall performance for the next financial year to remain satisfactory,” it said.



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Sozo Global proposes first and final net tax exempt dividend of 3.8 sen

KUALA LUMPUR (April 30): Sozo Global Ltd has proposed a first and final tax exempt dividend of 3.8 sen per share for the financial year ended Dec 31, 2011.

In a filing to Bursa Malaysia Securities Bhd on Monday, the company said the dividend was subject to the shareholders’ approval at its the forthcoming Annual General Meeting.



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Spritzer 3Q net profit jumps 69.4% to RM3.66m

KUALA LUMPUR (April 30): SPRITZER BHD [] net profit for the third quarter ended Feb 29, 2012 jumped 69.4% to RM3.66 million from RM2.16 million a year earlier, due mainly to higher sales of more profitable carbonated and flavoured drinks and natural mineral water products.

The company said on Monday that its revenue for the quarter rose 33% to RM45.22 million from RM34.09 million in 2011 on higher sales volume.

Earnings per share increased to 2.18 sen from 1.65 sen, while net assets per share was RM1.13.

For the nine months ended Sept 29, Spritzer posted net profit RM8.57 million compared to RM7.84 million a year earlier, on the back of revenue RM131.53 million from RM104.73 million in 2011.

On its prospects, the company said that whilst the domestic economic outlook had remained positive, the global economic outlook was highly uncertain mainly due to the ongoing European sovereign debt crisis.

It said the persistent high raw material prices also posed a greater challenge to the group.

The company said it would continue to focus on achieving greater economies of scale and improving its productivity and operational efficiency so as to remain competitive.

“In line with our expansion plan and higher installed capacity, the Group will seek to further broaden its product range, including the recent introduction of the larger-pack-size bottled water suitable for the use of water dispensers, to cater to the needs of the various market segments.

“With the resilient domestic market and our continuous efforts to improve our export sales, we remain confident that the volumes and earnings of our various bottled water products will be further strengthened,” it said.



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Kencana unit gets EPCC contract from Petronas Gas worth RM35m

KUALA LUMPUR (April 30): KENCANA PETROLEUM BHD []’s wholly owned subsidiary, Kencana HL Sdn. Bhd. ("Kencana HL") in consortium with Shinryo (M) Sdn Bhd has secured an engineering, procurement, CONSTRUCTION [] and commissioning (“EPCC”) from PETRONAS GAS BHD [].

Kencana said on Monday that the contract was for the EPCC of two cogeneration plants, having combined capacity of 50MW of electrical power and steam capacity of 120 ton per hour.

The company said the portion of the contract value for Kencana HL was estimated at RM35 million.

“The Contract is expected to be fully completed by first quarter of calendar year 2014,” it said.

Kencana said the contract was expected to contribute positively to its earnings for the duration of the contract.



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KLCI falls 25.72 points in April

KUALA LUMPUR (April 30): The FBM KLCI closed higher on Monday but fell some 25.72 points in April, as investor sentiment took a beating given rising external and domestic uncertainties.

The FBM KLCI rose 2.81 points to close at 1,570.61 on Monday.

Gainers trailed losers by 297 to 388, while 318 counters traded unchanged. Volume was 945.42 million shares valued at RM1.38 billion.

Asian shares were mixed on Monday as weaker-than-expected U.S. growth data left open the possibility for more monetary stimulus from the Federal Reserve, but trading was subdued with Japanese and Chinese markets closed, according to Reuters.

At the regional markets, Hong Kong’s Hang Seng Index rose 1.7% to 21,094.21, South Korea added 0.34% to 1,981.99, Taiwan’s Taiex was up 0.28% to 7,601.72 while Singapore’s Straits Times Index shed 0.26% to 2,973.91.

ON Bursa Malaysia, BAT was the top gainer and rose 74 sen to RM55.54, Aeon Credit added 64 sen to RM10.70, Shell rose 36 sen to RM10.28, Petronas Dagangan 30 sen to RM19.36, Nestle and Panasonic gained 20 sen each to RM55.30 and RM22.70, OSK 15 sen to RM1.71, Tradewinds and Knusford added 14 sen each to RM9.78 and RM1.94, while Toyo Ink gained 12 sen to RM1.53.

Ariantec was the most actively traded counter with 399.1 million shares done. The stock fell one sen to 24.5 sen.

Other actives included Utopia, Metronic, CSL, Astral Supreme, Focus, DRB-Hicom, Bumi Armada and BIMB warrants.

Decliners on Monday included SAM Engineering, Dutch Lady, Petronas Gas, MMHE, Kluang, Dayang Enterprise, Subur Tiasa. UAC and Bumi Armada.



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Prudential Assurance surpasses RM1 billion mark for second year running

KUALA LUMPUR (April 30): Prudential Assurance Malaysia Berhad (PAMB) surpassed the RM1 billion mark for the second year in a row after closing RM1.107 billion in total new business Annual Premium Equivalent (APE) sales which comprised both life insurance and Takaful contributions for the financial year 2011, posting an 8% increase from its performance of RM1.021 billion in 2010.

In a statement Monday, its chief executive officer Charlie Oropeza, attributed the continued success to the high productivity of PAMB’s agency force, an expanding Bancassurance business, strong business mix, continuous product innovation, and service and operational excellence.

He said that 91% of the business was contributed by its agency force, while Bancassurance accounted for 9%.

Oropeza said that PAMB had over 14,000 agents nationwide with Bumiputra agents making up 39% of its total agency force.

Last year, the insurer recruited more than 4,500 new agents, its highest recruitment number in the last 5 years, he said.

Oropeza said PAMB was the fourth largest life insurance business for Prudential in Asia, accounting for 13% of total new business APE sales in Asia for 2011.



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RAM Ratings reaffirms ratings of Al-‘Aqar Capital’s RM300 million sukuk

KUALA LUMPUR (April 30): RAM Ratings has reaffirmed the respective AAA, AA2, AAA(bg) and P1 ratings of Al-‘Aqar Capital Sdn Bhd’s (Al-‘Aqar Capital) Class A Islamic Medium-Term Notes (IMTN), Class B IMTN, Class C IMTN and Islamic Commercial Papers (ICP) under its RM300 million Sukuk Ijarah Programme;

In a statement Monday, RAM Ratings said all the long-term ratings had a stable outlook.

Al-‘Aqar Capital is a special-purpose vehicle incorporated solely for the acquisition of 11 hospitals (the Hospitals) leased to Al-‘Aqar Healthcare Real Estate Investment Trust and operated by KPJ HEALTHCARE BHD [] (KPJ Group or the Group).

RASM Ratings said the reaffirmation of the respective AAA, AA2 and P1 ratings of the Class A IMTN, Class B IMTN and ICP was premised on the debt service coverage as well as loan-to-value ratios that commensurate with the respective ratings, the transaction’s features and the sturdy cashflow generated by the hospital operators.

“Meanwhile, the reaffirmation of the Class C IMTN reflects the enhancement from a bank guarantee provided by Public Bank Berhad, whose AAA/stable/P1 financial institution ratings were reaffirmed by RAM Ratings on June 15, 2011,” it said.

The rating agency said that rental income derived from the Hospitals increased 3.7% year-on-year (y-o-y) to RM48.8 million in FYE 31 December 2011 (FY Dec 2011), i.e. above its stressed lease levels for the respective ratings.

“We note that rental revision takes place every 3 years, and is a function of the yields of 10-year Malaysian government securities and the market values of the Hospitals.

“Nevertheless, we derive comfort from the minimum lease payments under the lease terms which, collectively, are sufficient to cover the semi-annual profit payments to the Sukuk holders,” it said.



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KNM proposes fund raising exercise involving rights issuance of RM200 million

KUALA LUMPUR (April 30): KNM GROUP BHD [] (KNM) has proposed to undertake a fund raising exercise involving a Rights Issuance of RM200 million.

In a filing to Bursa Malaysia Securities Bhd on Monday, KNM said the definitive terms for the Rights Issue would be determined by the Board of the Company subject to the advice of the Company’s Corporate Advisors to be appointed in due course.

“The Company will be seeking its shareholders' approval for the Proposed Rights Issue at a general meeting to be convened at an appropriate date once the definitive terms of the Proposed Rights Issue has been approved by the Board and the relevant authorities,” it said.

KNM said further announcement(s) on the corporate proposal in respect of the proposed rights issue would be made in due course.



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REDTone Mobile appoints new CEO

KUALA LUMPUR (April 30): Mobile virtual network operator REDtone Mobile Sdn Bhd has appointed a new chief executive officer, Farid Yunus.

In a statement Monday, REDTone said Farid is part of Celcom Axiata Bhd's senior management team, and was seconded to the company to help in the MVNO's next phase of growth.

“Prior to his secondment to REDtone Mobile, Farid was Celcom Axiata’s Chief Strategy and Business Transformation Officer, responsible for TECHNOLOGY [] and market strategies and business planning,” it said.

REDTone said Farid was an industry analyst with the Yankee Group in London, focusing on mobile markets and carriers in Europe, Middle East and Africa before he joined Celcom Axiata.

He has 14 years of experience in the mobile industry, and holds a Masters degree from the University of Leeds, and a Bachelor of Science in Telecommunications from Ohio University, it said.



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LBS Bina proposes first & final gross dividend of 2.5 sen

KUALA LUMPUR (April 30): LBS BINA GROUP BHD [] has proposed a gross first and final dividend of 2.5 sen per ordinary share of RM1.00 for the financial year ended Dec 31, 2011

In a filing to Bursa Malaysia Securities Bhd on Monday, the company said the dividend was subject to the shareholders’ approval at its the forthcoming Twelfth Annual General Meeting.



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KLCI up at mid-day break, moves above 1,570-level

KUALA LUMPUR (April 30): The FBM KLCI brushed off the concerns arising from last weekend’s Bersih 3.0 rally that turned ugly and inched higher on Monday, in line with the gains at most regional markets, lifted by select blue chips in early trade.

The FBM KLCI was up 4.01 points to 1,571.81 at the mid-day break.

Gainers trailed losers by 229 to 285, while 299 counters traded unchanged. Volume was 398.95 million shares valued at RM422 million.

Asian shares rose on Monday as weaker-than-expected U.S. growth data left open the possibility for more monetary stimulus from the Federal Reserve, but trading was subdued with Japanese and Chinese markets closed, according to Reuters.

At the regional markets, Hong Kong’s Hang Seng Index rose 1.12% to 20,974.40, south Korea’s added 0.14% to 1,978.20, while Singapore’s Straits Times Index fell 0.20% to 2,975.62 and Taiwan’s Taiex shed 0.09% to 7,473.49.

MIDF Research in its weekly fund flow analysis said Malaysian stocks continued to attract foreign money last week.

It said foreign investors bought on net basis, Malaysian-listed shares amounted to RM356.1 million compared with RM408.8 million the week before. Foreign investors have now been net buyers of Malaysian stocks for 11 consecutive weeks now.

“We cross over to May this week.

“The adage “Sell in May and go away” is certainly not uncorroborated — the KLCI had recorded negative return for the month in six out of the last 10 years, averaging -3.2%. We therefore begin the month with a historical obstacle to surmount,” it said on Monday.

On Bursa Malaysia, Petronas Dagangan was the top gainer and added 24 sen to RM19.30, Aeon Credit and Nestle gained 20 sen each to RM10.26 and RM55.30, Tasek and Takaful was up 15 sen each to RM8.70 and RM4, Tradewinds PLANTATION []s up 14 sen to RM5.84, Toyo Ink and Carlsberg added 12 sen each to RM1.53 and RM11.60.

Meanwhile, RHB Capital and OSK Holdings rose on gaining the ministry of finance nod for a merger. RHB Capital rose 11 sen to RM7.36 whiel OSK was up 13 sen to RM1.69.

Ariantec was the most actively traded counter with 201.62 million shares done. The stock fell half a sen to 25 sen.

Other actives included Utopia, DRB-Hicom, CSL, Focus, Daya Materials, Bumi Armada and YTL Corp.

Decliners at mid-day included Dutch Lady, Jaya Tiasa, PacificMas, UAC, Amway, Bumi Armada and MMHE.



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Carlsberg up at noon on plans to hike prices

KUALA LUMPUR (APRIL 30): CARLSBERG BREWERY MALAYSIA BHD [] shares advanced at noon on Monday after the company last week said it would introduce a 3% general increase in price effective May 1, 2012.

At 12pm, Carlsberg was up 12 sen to RM11.60 with 238,900 shares done.

“The adjustment is not a dramatic one and is in line with inflation levels,” said its managing director, Soren Ravn after the group’s AGM last Thursday.

Ravn said the recent introduction of premium labels Asahi and Kronenbourg currently hold 16% to 17% market share in the premium segment while good growth is expected to continue.

Carlsberg’s premium brands currently contribute just under 10% to the group’s total revenue of RM1.5 billion for FY11. A 100% profit distribution has also been declared, at a total gross dividend of 72.5sen, he said.



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Bumi Armada shares retreat at mid-morning

KUALA LUMPUR (APRIL 30): Bumi Armada Bhd shares retreated on Monday after some shareholders holding 293 million shares, representing almost 10% of the company, disposed their interest via a book building exercise last Thursday. The exercise was reportedly done at an average price of RM3.95.

At 10.30am, Bumi Armada, a company that is controlled by low profile T. Ananda Krishnan, was down six sen to RM4 with 2.63 million shares traded.

Ananda himself did not dispose any of his interest in Bumi Armada, indicating that there is still much upside for the company.

Bumi Armada Bhd in response to news reports that Ananda was paring down his stake said that enquiries with its major shareholders and directors, it clarified that Ombak Damai Sdn Bhd, Wijaya Sinar Sdn Bhd and Karisma Mesra Sdn Bhd had participated in a book-building exercise conducted by CIMB Investment Bank Bhd, accounting for a total of 293 million Bumi Armada shares.

The Edge Financial Daily last Friday reported that Ananda and his bumiputera partners will sell roughly 15% of offshore services provider Bumi Armada Bhd in private placements to local and foreign institutional investors in a deal that will raise close to RM2 billion.



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RHB Capital, OSK up on getting nod for merger

KUALA LUMPUR (APRIL 30): Shares of RHB CAPITAL BHD [] and OSK HOLDINGS BHD [] advanced on Monday after they obtained the finance ministry's approval to merge RHB's banking group with OSK's investment bank, according to filings to the local bourse.

At 10.30am, RHB Capital added 12 sen to RM7.37 with 831,900 shares done while OSK gained five sen to RM1.61 with 1.11 million shares traded.

"Further details on the possible merger will be announced upon the execution of a conditional share purchase agreement between OSK and RHB," both RHB and OSK said in separate filings to Bursa Malaysis Securities Bhd last Friday.



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KLCI inches higher at mid-morning, brushes off concerns after Bersih rally

KUALA LUMPUR (April 30): The FBM KLCI brushed off events over last weekend arising from the Bersih 3.0 rally and inched higher on Monday, in line with the gains at most regional markets, lifted by select blue chips in early trade.

At 10am, the FBM KLCI was up 3.64 points to 1,571.44.

Gainers led losers by 184 to 151, while 202 counters traded unchanged. Volume was 183.93 million shares valued at RM115.43 million.

Asian shares inched higher on Monday as weaker-than-expected U.S. growth data left open the possibility for more monetary stimulus from the Federal Reserve, but trading will likely be subdued with Japanese and Chinese markets closed, according to Reuters.

Global stocks ended higher on Friday on strong earnings reports, while the dollar dipped as data showed growth in the U.S. economy cooled in the first quarter to a 2.2% annual growth rate, below a 2.5% forecast, feeding views that the Fed could ease policy further to boost growth, it said.

At the regional markets, Hong Kong’s Hang Seng Index rose 1.12% to 20,973.80, South Korea’s Kospi added 0.44% to 1,984.09, while Singapore’s Straits Times index fell 0.20% to 2,975.60 and Taiwan’s Taiex shed 0.27% to 7,460.38.

Maybank Investment Bank Bhd in a market strategy note Monday maintained its Neutral stance on the FBM KLCI and said it expects the market to continue pricing in political concerns ahead of the 13th General Elections (13GE).

It said last Saturday's Bersih 3.0 rally had thrown up the possibility of the 13GE being deferred.

“On the external front, renewed concerns over the Eurozone imply heightened volatility again for equity markets.

“Against such a backdrop, we expect domestic equities to stay range bound ahead of the 13GE, and advise investors to stay selective in their picks,” it said.

BIMB Securities Research said on Monday that in the US solid corporate earnings, improving economic growth and employment had kept investors upbeat on equities hence the higher closing for the Dow Jones Industrial Average at 13,228 (+24 points).

Meanwhile European bourses all closed higher possible on a rebound after an eventful week, it said.

“We believe this as a lull before the storm as the situation in Spain is ripe for traders to manufacture more volatility ahead.

“To recap, the country recently was downgraded by the S&P and recently reported its unemployment rate of 24.4% for 1Q12 should become as a main target to derail sentiments, it said.

The research house said Asian markets were weaker possibly spooked by the situation in Spain amid profit taking activities.

“Locally, the FBM KLCI fell almost 12 points to 1,567 ahead of the Bersih 3.0 Rally as investors continue to pare down their holdings.

“We believe outlook for the local bourse has deteriorated for the 2Q12 unless corporate earnings for the 1Q excel. Next support is seen at 1,560,” it said.

Among the gainers on Bursa Malaysia at mid-morning, Chin Teck added 29 sen to RM9.30, Aeon Credit and Petronas Dagangan up 22 sen each to RM10.38 and RM19.28, Tasek 21 sen to RM8.76, UMW and Carlsberg 14 sen each to RM7.97 and RM11.62, Genting PLANTATION []s 13 sen to RM9.52, Toyo Ink and KLK 12 sen each to RM1.53 and RM23.82, while Petra Energy added 11 sen to RM1.27.

Utopia was the most actively traded counter with 178.28 million shares done. The stock was unchanged at 8.5 sen.

Other actives included DRB-Hicom, XDL, CSL, Berjaya Corp. Daya Materials, Metronic and Oversea.

Decliners included PacificMas, Bumi armada, Dutch Lady, IJM Plantations, Sarawak Plantations, Batu Kawan, GAB and Gadang.



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KLCI inches higher in early trade

KUALA LUMPUR (April 30): The FBM KLCI inched higher on Monday, in line with the gains at most regional markets, lifted by select blue chips in early trade.

At 9am, the FBM KLCI was up 2.66 points to 1,570.46.

Gainers led losers by 66 to 27, while 82 counters traded unchanged. Volume was 15.14 million shares valued at RM6.98 million.

Asian shares inched higher on Monday as weaker-than-expected U.S. growth data left open the possibility for more monetary stimulus from the Federal Reserve, but trading will likely be subdued with Japanese and Chinese markets closed, according to Reuters.

Global stocks ended higher on Friday on strong earnings reports, while the dollar dipped as data showed growth in the U.S. economy cooled in the first quarter to a 2.2% annual growth rate, below a 2.5% forecast, feeding views that the Fed could ease policy further to boost growth, it said.

Among the early gainers on Bursa Malaysia on Monday were Petronas Dagangan, UMW, KLK, CM, Boustead, RHB Capital, OSK, Genting and Sime Darby.



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MIDF Research starts coverage on Affin with Buy rating, target price RM3.50

KUALA LUMPUR (April 30): MIDF Research has initiated coverage on AFFIN HOLDINGS BHD [] at RM3.05 with a target price of RM3.50 and said Affin’s net profit had been gradually improving with higher operating income and lower loan loss provisions.

It said in a note Monday that the group achieved a CAGR for net profit after tax and minority interest (PATAMI) of 15.1% for the period of FY07-FY11.

ROE has improved from 6.5% in FY07 to 9.4% in FY11. We expect the ROEs for both FY12 & FY13 to be in the high single digit of 8.9%, it said.

“Our fair value for the stock of is based on a PBVR of 0.9x on FY12 BVPS which equates to a PER of 10x . Valuation is undemanding as it is currently trading at less than 1.0x of its book value as at end of Dec’11 and a discount to the average PBVR of the sector.

“We believe that concerns of liquidity of the stock, lower ROE compared to peers, the lack of regional exposure with the bulk on loans on hire purchase (29.3% of total loans) and mortgages (27.2% of total loans) which are expected to be challenging moving forward have been priced in by market,” said MIDF Research.



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Stocks to watch WZ Steel, Pensonic, Bumi Armada, Chin Teck

KUALA LUMPUR (APRIL 28): The FBM KLCI is expected to trend lower next week in response to rising solvency risk and borrowing cost in Europe (Spain & Italy) and rising local political uncertainties.

On the local scene, the outcome of the Bersiih 3.0 rally, and how the ruling Barisan Nasonal government handles the issue will also play heavily on investor sentiment.

U.S. stocks advanced on Friday and posted their best weekly gains in a month as stronger-than-expected earnings from Amazon.com and Expedia Inc reinforced confidence in corporate performance, according to Reuters.

Wall Street managed a fourth day of gains as the strong earnings season outweighed a surprisingly weak reading on first-quarter economic growth, it said.

Next week's release of a slew of economic data on the U.S. labor market and the beginning of the latter half of corporate earnings will be keenly watched to see if they are enough to allow stocks to break above the recent trading range, it said.

Affin Investment Bank Bhd vice president and head of retail research Dr Nazri Khan said he expects the FBM KLCI to trend lower in response to rising solvency risk and borrowing cost in Europe (Spain & Italy) and rising local political uncertainties.

“Despite positive comments from the USA Fed on possible monetary stimulus, a weaker than expected read on April Euro zone sentiment and rising European bond yield seemed to bring struggling European growth and debt concerns back into focus.

“Following Standard & Poor's downgrade of Spain's long-term sovereign credit rating by two notches (from A to BBB+ with a negative outlook), we expect more selling to weigh on European equities and increase the risk-off appetite for German Bunds and USA Treasuries,” he said.

Among the stocks that could be in focus are WZ Steel Bhd, PENSONIC HOLDINGS BHD [], Bumi Armada Bh and CHIN TECK PLANTATION []S BHD [].

WZ Steel Bhd is acquiring an industrial land in Indonesia’s West Java province for IDR 14.58 billion (RM5.02 million) to build a new factory in the neighbouring country.

In a statement Friday, WZ Steel said it is buying the leasehold tract within the Delta Silicon industrial area in the Lippo Cikarang enclave, from Indonesia-based property developer PT Lippo Cikarang Tbk.

Pensonic Holdings Bhd posted a third quarter net loss on higher as higher revenue failed to mitigate the impact of rising operating cost for the electrical and electronic appliances manufacturer.

Pensonic said net loss came to RM1.14 million in the quarter ended February 29, 2012 against RM896,000 a year earlier. Revenue grew 7% to RM85.08 million from RM79.65 million.

“The decrease was mainly due to lower margin recorded as a result of active promotional activities carried out and also the increases in administration, selling and distribution expenses in current quarter for future expansion,” it said.Bumi Armada Bhd in response to news reports that Ananda was paring down his stake said that enquiries with its major shareholders and directors, it clarified that Ombak Damai Sdn Bhd, Wijaya Sinar Sdn Bhd and Karisma Mesra Sdn Bhd had participated in a book-building exercise conducted by CIMB Investment Bank Bhd .

It said Ombak Damai had participated with 9 million, while Ombak Damai and Karisma Mesra with a joint 284 million shares respectively, accounting for a total of 293 million Bumi Armada shares.

The Edge Financial Daily on Friday reported that Tycoon Ananda Krishnan and his bumiputera partners will sell roughly 15% of offshore services provider Bumi Armada Bhd in private placements to local and foreign institutional investors in a deal that will raise close to RM2 billion.

Financial executives involved in the placement told The Edge Financial Daily that the sale of roughly 440 million shares in Bumi Armada would cut the joint holdings of Ananda and his bumiputera partners to 55% in the company.

Chin Teck net profit for the second quarter ended Feb 29 2012 fell 33.58% to RM9.19 million from RM13.83 million a year earlier due mainly to substantial decrease in profit contribution from its associates.

The company said on Friday that its revenue for the quarter fell 2.44% to RM28.22 million from RM28.93 million in 2011 due to lower average selling prices of FFB, crude palm oil and palm kernel.

For the six moths ended Feb 29, Chin Teck’s net profit fell to RM24.48 million from RM2998 million on the back of revenue of RM60.69 million.



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