Fajarbaru gets RM299.84m sub-contract job from MRCB

KUALA LUMPUR (May 3): Fajarbaru Builder Group Bhd has secured a sub-contract worth RM299.84 million to build a power substation from MALAYSIAN RESOURCES CORP []oration Bhd.

The company said on Thursday that its unit Fajarbaru Builder Sdn. Bhd had received a letter of acceptance to build the Kg Kuala Sungai Baru substation and other associated works for the Ampang (AMG) Line Extension project.

Fajarbaru said the CONSTRUCTION [] period of the sub-contract would be 30 months from the commencement date.

It said the sub-contract was expected to contribute positively to its earnings for the financial years ending June 30, 2012 to June 30, 2015.



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APFT inks Multi-crew Pilot License training agreement with Canada’s CAE

KUALA LUMPUR (May 3): APFT Bhd’s unit Asia Pacific Flight Training Sdn Bhd (APFTSB), has signed a five-year MPL Services Agreement with Canada-based CAE Inc (CAE) on the Multi-crew Pilot License (MPL) training for AirAsia cadets.

In a statement to Bursa Malaysia on Thursday, A PFT said this was the first and only MPL training in Malaysia.

it said that previous batches of AirAsia CAE MPL cadets were trained in Canada.

“The signing of the said MPL Services Agreement will see APFT working with CAE and AirAsia to train AirAsia future first officers.

“CAE and AirAsia have decided to transfer their MPL TECHNOLOGY [] to Malaysia and have chosen APFTSB to conduct the basic, core and transition phases of its MPL program,” it said.

APFTSB operates a flight training academy in Kota Bharu with detachments in Subang, Kuala Terengganu and Ipoh.

The company said that it was formed six years ago and to-date, 600 cadets from various airlines as well as private students had graduated from the flight training academy of APFTSB.

“On the other hand, CAE is the world’s leading provider of commercial aviation and ab initio training,” it said.

Canada-registered CAE is based in the City of Saint Laurent, Province of Quebec, Canada, it said.

APFT said the MPL agreement would contribute positively to its bottom line from the financial year ending Dec 31, 2013 onwards.



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Tenaga names COO as its new president and CEO

KUALA LUMPUR (May 3): TENAGA NASIONAL BHD [] has named its chief operating officer Datuk Ir Azman Mohd as its president and chief executive officer.

In a filing to Bursa Malaysia Securities on Thursday, Tenaga said that Azman was its COO from 2010 until his appointment as president.

Azman, who holds a Bachelor of Engineering from the University of Liverpool, started his career at Tenaga as an Assistant District Engineer for Temerloh and Mentakab in 1979, the utility company said.



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UM Land to lease property to Pegasus

KUALA LUMPUR (May 3) : UNITED MALAYAN LAND BHD [] (UM Land) plans to develop a school within a four ha (10.35 acre) freehold tract within Johor’s Iskandar Malaysia enclave and, subsequently, lease the tract and facility to an education services provider.

In a statement to the bourse, UM Land said it has formalised arrangements with Pegasus Education Group (M) Sdn Bhd which will have the option to purchase the land and education facility.

UM Land said it has signed a land lease and option to purchase property agreements with Pegasus on Thursday. Under the lease agreement, Pegasus will lease the tract for RM1.1 million a year for the first three years, after which, the rental rate will be reviewed for upward revision every three years.

UM Land said the school will be constructed in five phases over eight years till 2020.



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Tasco 1Q net profit up 4.6% to RM6.76m

KUALA LUMPUR (May 3): Tasco Bhd net profit for the first quarter ended March 31, 2012 rose 4.6% to RM6.76 million from RM6.46 million a year earlier, due to better margins from its air freight forwarding division arising from urgent export shipments.

The company said on Thursday that its revenue for the quarter edged lower to RM117.89 million from RM118.36 million in 2011.

Earnings per share was 6.76 sen compared to 6.47 sen, while net assets per share was RM2.48.

On its prospects, Tasco said its business ws very much tied-in to the performance of the Malaysian and global economies which had a direct impact on manufacturing and international trade.

“The group has managed to achieve a creditable performance in the quarter partly due to our strategic investment in assets with good returns which was able to provide a measure of stability to our revenue and earnings within our domestic business solutions segment.”

“While we expect the next two quarters to be challenging, we are hopeful of the prospects of the group for the rest of the financial year.

“Going forward, we will remain continue to remain focused in servicing our customers with innovative logistics solutions, and expand our logistics capacity where it is beneficial to do so taking into consideration of the risk factors,” it said.



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Quill 1Q profit up 5% on higher rental, lower operating cost

KUALA LUMPUR (May 3) : QUILL CAPITA TRUST [], a commercial and industrial-based real estate investment trust says first quarter net profit rose 5% from a year earlier, helped by higher revenue and lower operating expenses.

In a statement to the exchange, Quill said net profit came to RM8.07 million in the quarter to March 31, 2012 from RM7.68 million previously while revenue was up 2% to RM17.78 million from RM17.51 million.

The property trust said revenue had increased due to higher rentals for its PROPERTIES []. Looking ahead, Quill which has nine properties under its portfolio, said it plans to acquire more properties to grow its income.

The company said this comes against expectations of weaker commercial property prices due to fresh office space supply in the market.



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Bank Negara named Bank Regulator of the Year

KUALA LUMPUR (May 3): Bank Negara Malaysia (BNM)'s success in steering Malaysia's financial system mostly unscathed through the global financial crisis was recognised after winning two awards at the Asian Banker Risk and Regulation Conference last week.

"BNM formulated various measures and policies, such as its 'Guidelines on Responsible Financing', launching a series of moves to liberalise its financial sector to facilitate cross-border business transactions and enhance business efficiency, as well as placing emphasis on consumer protection, exhibiting rigorous yet responsible supervisory conduct," said the Asian Banker in a statement Thursday.

It added that BNM had demonstrated exemplary supervision and rigorous conduct throughout the global financial crisis.

BNM won Bank Regulator of the Year in the Asia Pacific Region and the Best Conduct of Business Regulator award for 2012 at the event held on Apr 25 in Bangkok, Thailand in conjunction with the Asian Banker Summit 2012.

Furthermore, BNM had also strategically positioned and promoted Malaysia as a leading Islamic financial hub in Asia with islamic banking constituting 20% of the Malaysian banking system while Sukuk markets accounting for more than 50% of the Malaysian bond market, it said.

The Asian Banker is a provider of strategic business intelligence to the financial services community.



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New Hoong Fatt 1Q net profit falls 42.1% to RM4.1 million

KUALA LUMPUR (May 3): NEW HOONG FATT HOLDINGS BHD [] net profit for the first quarter ended march 31, 2012 fell 42.1% to RM4.1 million from RM7.08 million a year earlier, due mainly to increased in manufacturing and operating costs as well as higher foreign exchange loss.

The company said on Thursday that its revenue for the quarter edged up 0.6% to RM54.02 million from RM53.71 million in 2011 due to higher demand for export sales.

Earnings per share was 5.45 sen compared to 9.42 sen a year earlier, while net assets per share was RM3.90.

On its prospects, New Hoong Fatt said it expects 2012 to be another challenging year as the global economic outlook is expected to remain uncertain, and the uncertainties will further drive volatility in commodity costs.

“The Group is optimistic that it will continue its positive performance in the current financial year,” it said.



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Select blue chips lift KLCI marginally higher

KUALA LUMPUR (May 3): The FBM KLCI closed higher on Thursday, erasing its earlier losse, lifted by gains at select blue chips including AirAsia, Telekom, AMMB and CIMB.

The stock index added 0.78 of a point to 1,583.17.

Gainers trailed losers by 344 to 390, whiel 325 counters traded unchanged. Volume was 1.29 billion shares valued at RM1.21 billion.

Meanwhile, Asian shares slipped on Thursday and the euro languished near a two-week low after disappointing economic data from both sides of the Atlantic rekindled concerns about the strength of global growth, according to Reuters.

But European stock markets were seen opening stronger, fueled by hopes that a European Central Bank policy meeting later in the session will prepare the ground for further stimulus measures, it said.

At the regional markets, the Shanghai Composite Index edged up 0.07% to 2,440.08, Hong Kong’s Hang Seng index fell 0.28% to 21,249.53, Taiwan’s Taiex lost 0.23% to 7,659.53, South Korea’s Kospi shed 0.20% to 1,995.11 and Singapore’s Straits Times Index down to 3,000.94. Japan’s Nikkei 225 was closed for a national holiday.

On Bursa Malaysia, Knusford was the top gainer and rose 34 sen to RM2.28, Airasia added 27 sen to RM3.60, Panasonic up 22 sen to RM22.92, BAT 20 sen to RM55.24, Country View 19.5 sen to 84 sen, MPHB, Tradewinds PLANTATION []s and Tradewinds added 14 sen each to RM2.86, RM6 and RM9.99 respectively, MBM Resources was up 13 sen to RM5.09 and Permaju was up 12.5 sen to 55.5 sen.

Utopia was the most actively traded counter with 84.11 million shares done. The stock was unchanged at 8 sen.

Other actives included Ariantec, Naim Indah Corp, AirAsia, Metronic, Astral Supreme, Compugates and DayaMaterials.

Meanwhile, the decliners included Genting, BLD Plantations, MAHB, PPB Bank, Shell, Pasdec,Eng Kah and Rexit.



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MAS – AirAsia cooperation should be continued, says Dr M

KUALA TERENGGANU May 3: The cooperation between Malaysia Airlines (MAS) and low-cost carrier AirAsia should be continued for the benefit of both companies, former Prime Minister Tun Dr Mahathir Mohamad said today.

He said that through the cooperation, MAS would be able to learn from AirAsia and vice versa.

"I see people opposing, not the cooperation forged by both, but the manner in which the share swap deal of the airline companies was done. This is what many people protested against.

"So, now, with the share swap having been cancelled, the cooperation should continue as there is much that MAS can learn from AirAsia.

"(AirAsia) Fares are very cheap, sometimes free, but it has been able to provide the service for the past 10 years. Logically, the company should be bankrupt, while MAS, which has received government aid of up to RM3 billion, is still losing money every year," he added.

He was speaking at a media conference after his lecture on 'The Challenges Faced by Muslims Now: Perception and Reality', organised by the Terengganu state government with the cooperation of the Terengganu Strategic Study and Integrity Institute here.

Khazanah Nasional Bhd yesterday announced the cancellation of the share swap deal between MAS and AirAsia after it failed to get the support of stakeholders to continue with the initiative. – Bernama



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Crest Builder up12% to 4-year high

KUALA LUMPUR (May 3) : CREST BUILDER HOLDINGS BHD [] rose as much as 12% to the stock’s highest in nearly four years ahead of the announcement of the CONSTRUCTION [] firm’s first quarter financials this month.

Shares of Crest Builder added 11.5 sen to RM1.04, the highest since June 2008, before erasing gains to RM1.01 as at 3.53pm with some 3.4 million shares done.

The reasons for the stock’s gains are unclear for now. But it is worth noting that Crest had on Wednesday announced that its chairman Tengku Datuk Sulaiman Shah Tengku Abdul Jalil Shah and managing director Yong Soon Chow intend to deal in the company’s shares during the close period for the stock pending the release of Crest Builder’s first quarter results.

Yong has a direct 34.81% stake in the construction firm while Sulaiman’s owns an indirect 5.49% .



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Opcom up 3% on Telekom variation order

KUALA LUMPUR (May 3) : Shares of fibre-optic cable manufacturer OPCOM HOLDINGS BHD [] rose as much as 3% after securing an RM82 million variation order from TELEKOM MALAYSIA BHD [].

Opcom shares increased two sen to 77 sen as at 3.20pm with some 108,000 shares done.

The firm said the variation order is expected to augur well for its financials. "The variation order is expected to contribute positively towards Opcom's group earnings and net assets for the remaining period of the contract which is expiring on April 19, 2013," it said in a statement to Bursa Malaysia.

The variation order comes against an existing RM359 million contract with Telekom. Opcom announced that it had secured the RM359 million fiber-to-the-home contract from Telekom in April 2009. In May 2011, it secured a two-year extension for the project till April 19, 2013.



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BIMB up after Maybank IB Research raises target price

KUALA LUMPUR (May 2); BIMB HOLDINGS BHD [] was among the top gainers in the morning session of Wednesday after Maybank Investment Bank Bhd maintained its Buy rating on the stock and raised its target price to RM2.95 (from RM2.55) and said higher valuations were warranted for both Bank Islam and Syarikat Takaful (STMB), given their strong underlying fundamentals.

At 12.30pm, BIMB rose 12 sen to RM2.6 with 3.48 million shares done.

Meanwhile, Takaful rose 29 sen to RM4.25.

“Pegging on higher P/BV valuations for both companies, our SOP valuation for BIMB Holdings is raised to MYR2.95 from MYR2.55, which implies 16% upside to the current share price.

“Our revised target P/BV multiple for STMB (Not Rated) values the takaful operator at MYR4.75, or 20% upside to its current share price,” Maybank IB said in a note Wednesday.



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Tambun Indah at lowest since Jan 2011 listing, trades ex-rights

KUALA LUMPUR (May 3) : Shares of Tambun Indah Land Bhd fell 7% to reach the stock’s lowest since the property developer‘s listing in January 2011.The stock trades ex-rights on Thursday.

Tambun Indah shares fell four sen to 52 sen before settling higher at 53.5 sen at lunch break with some 290,000 shares done. The company’s initial public offering had involved 54.1 million shares at 70 sen each.

The firm is undertaking a renounceable rights issue of 88.4 million new shares together with 44.2 million new free detachable warrants. The exercise is undertaken on the basis of two rights units and one warrant for every five existing shares held.

The rights shares, be traded as Tambun-OR, will be transacted on the exchange beginning next Tuesday.



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KLCI reverses earlier losses at mid-day break

KUALA LUMPUR (May 3): The FBM KLCI managed to reverse some of its earlier losses at the mid-day break on Thursday and edged up, lifted by gains at select blue chips including AirAsia, BAT and RHB Capital.

The FBM KLCI added 0.41 of a point to 1,582.80 at the mid-day break.

Losers outpaced gainers by 314 to 234, while 318 counters traded unchanged. Volume was 779.26 million shares valued at RM479.15 million.

The ringgit weakened 0.14% to 3.0323 versus the greenback, crude palm oil futures for the third month delivery fell RM31 per tonne to RM3,404, crude oil shed 13 cents per barrel to US$105.09 while gold fell US$5.02 an ounce to US$1,648.48.

Meanwhile, Asian shares slipped on Thursday and the euro languished near a 2-week low after disappointing economic data from both sides of the Atlantic rekindled concerns about the strength of global growth.

Commodities and the Australian dollar - all sensitive to growth expectations - also struggled as the data put investors on the defensive and limited appetite for riskier assets.

At the regional markets, Hong Kong’s Hang Seng Index fell 0.5% to 21,203.40, the Shanghai Composite Index shed 0.37% to 2,429.49, Taiwan’s Taiex was down 0.23% top7,659.09, South Korea’s Kospi lost 0.33% to 1,992.46 and Singapore’s Straits Times Index edged down 0.07% to 3,004.14.

On Bursa Malaysia, AirAsia was the top gainer at mid-day and rose 21 sen to RM3.54, Country View was up 19.5 sen to 84 sen, BAT 16 sen to RM55.20, Nestle and Takaful 12 sen each to RM55.50 and RM4.29, NPC 10 sen to RM2.78, Crest Builder 9.5 sen to RM1.02 and RHB Capital nine sen to RM7.50.

Utopia was the most actively traded counter with 59.68 million shares done. The stock fell half a sen to 7.5 sen.

Other actives included Naim Indah Corp, AirAsia, Ariantec, Metronic, Compugates, Daya Materials and JCY.

Decliners in the morning session included Dutch Lady, MAHB< Genting, Carlsberg, Pasdec, Delloyd, Rexit, Shelll and Sarawak PLANTATION []s.



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Pharmaniaga 1Q net profit up 85% year-on-year on higher sales

KUALA LUMPUR (May 3) : PHARMANIAGA BHD [] says first quarter net profit rose 85% from a year earlier as revenue growth mitigated the impact of higher operating cost, besides finance and tax expenses.

In a statement to the exchange, Pharmaniaga said net profit came to RM28.69 million in the quarter ended March 31, 2012 versus RM15.48 million previously as revenue grew 16% to RM446.75 million from RM385.33 million.

The pharmaceutical products manufacturer said revenue had risen following the inclusion of income from a newly-acquired subsidiary Idaman Pharma Manufacturing Bhd.

Looking ahead, Pharmaniaga said it hopes to boost bottom line by streamlining its production and procurement functions to reduce operating cost.

In a separate statement, the firm said it plans to pay a first interim single-tier dividend of 7.5 sen a share for financial year ending December 31, 2012. Conglomerate BOUSTEAD HOLDINGS BHD [] owns some 72% in Pharmaniaga.

Pharmaniaga chairman Tan Sri Lodin Wok Kamaruddin said the company had been able to clock in strong results, due to a combination of factors including growth in turnover, improved efficiency, revenue from its newly acquired Idaman Pharma Manufacturing Sdn Bhd which contributed 25% of the group’s pre-tax profit and improved revenue from its Indonesian operations.”

“We are optimistic of 2012’s prospects and are committed to expanding our business locally and internationally in order to enhance shareholder value as we look to move up the pharmaceutical value chain this year.”

“Given our strong opening results for this financial year, we have declared an interim dividend to our existing shareholders and we are confident to continue rewarding them for as long as our earnings track record is sustained or surpassed,” he said in a statement Thursday.



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MAS, AirAsia soar 10% on share-swap termination

KUALA LUMPUR (May 3): Shares of MALAYSIAN AIRLINE SYSTEM BHD [] and AIRASIA BHD [] advanced on Thursday after the airlines said they had entered into a Supplemental Agreement to vary the terms and scope of the original collaboration agreement inked last August.

The share-swap last August saw AirAsia’s Tan Sri Tony Fernandes and his partner Datuk Kamarudin Meranun taking up a 20.5% interest in MAS and two board positions, in exchange for Khazanah owning a 10% stake in the regional budget airline.

The airlines said on Wednesday that pursuant to the Supplemental Agreement, they had separately entered into memorandums of understanding (MoU) in respect of firstly, to jointly explore the setting up of the joint-venture company by MAS, AirAsia and AAX to provide aircraft component maintenance support and repair services.

MAS rose 12 sen to RM1.34 before trading lower at RM1.27 at 11.34am with some 6.1 million shares done.

AirAsia which fell as much 4% to RM3.20 earlier, rose 32 sen to RM3.65. The stock was traded at RM3.56 at 11.36am with about seven million shares done.

In separate statements to the exchange, MAS and AirAsia said both firms have agreed to terminate their share swap arrangements. As a result, the domestic airlines said they have signed a supplemental agreement to revise the terms of their collaboration.

This has prompted MAS and AirAsia to sign two memorandums of understanding to define the scope their proposed collaboration. According to both firms, this include an assessment on the feasibility of establishing a joint venture firm which will offer aircraft component maintenance services besides a plan to set up a special purpose vehicle to undertake joint procurement processes.



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KLCI weighed down by US and Europe economic data

KUALA LUMPUR (May 3) : Malaysians stocks fell on Thursday morning in tandem with Asian bourses after US markets finished weaker in overnight trade.

Global investors have responded negatively to fresh updates on slower private-sector hiring in the US and weaker factory output figures from Europe.

At 9.59am, the FBM KLCI fell 2.44 points to 1,579.95. Across the exchange, some 321 million shares worth RM164 million were traded, leading to 155 gainers versus 173 decliners.

Top gainers include HARTALEGA HOLDINGS BHD [] which added 28 sen to RM8.08 while AIRASIA BHD [] rose 14 sen to RM3.47.

Among decliners, DUTCH LADY MILK INDUSTRIES BHD [] was down 40 sen to RM33 while PPB GROUP BHD [] fell 16 sen to RM16.54.

Most actively-traded was Naim Indah Corp Bhd which fell 0.5 sen to 51 sen with some 34 million shares transacted.

Across Asia, Australia’s S&P/ASX 200 added 0.02% to 4,437 points, South Korea’s Kospi fell 0.2% to 1,995.01, while Singapore’s Straits Times was down 0.05% to 3,004.66. The Japan bourse is closed for a public holiday.



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Unisem shares fall on 1Q loss

KUALA LUMPUR (May 3): UNISEM (M) BHD [] shares retreated on Thursday after it posted net loss RM13.52 million for the first quarter ended March 31, 2012 compared with net profit RM5.09 million a year earlier.

At 9.28am, Unisem fell five sen to RM1.41 with 208,500 shares done.

It said on Wednesday that revenue for the quarter fell to RM256.61 million from RM291.97 million in 2011.

Unisem attributed the declines in its revenue and profit to reduced sales volume, a one-time retrenchment costs of RM5.7 million arising from a efficiency/redundancy exercise at PT Unisem and higher depreciation charges.

Loss per share was 2.01 sen compared to earnings per share of 0.75 sen previously.

Net assets per share was RM1.56.

On its outlook, Unisem said it expects its revenue and earnings in the second quarter to improve from that achieved in the first quarter and to continue to improve to the end of the financial year.



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Maybank IB Research maintains Buy on Perisai Petroleum, target price RM1.13

KUALA LUMPUR (May 3): Maybank IB Research has maintained it Buy Rating on Perisai Petroleum Bhd at 86.5 sen and target price RM1.13 and said the company would move into the FPSO charter market for its next Malaysia project.

In a note Thursday, the research house said this would be a major positive and a catalyst to growth and re-rating.

“Its major shareholder, Ezra will likely play a role in this development.

“Our preliminary estimate suggests that this could lift EPS by 18% p.a. while still keeping Perisai's net gearing at manageable level. Maintain Buy,” it said.



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BIMB extends gains on target price upgrade by Maybank IB Research

KUALA LUMPUR (May 3): BIMB HOLDINGS BHD [] extended its gains and was among the top gainers in early trade on Thursday after Maybank Investment Bank Bhd on May 2 maintained its Buy rating on the stock and raised its target price to RM2.95 (from RM2.55) and said higher valuations were warranted for both Bank Islam and Syarikat Takaful (STMB), given their strong underlying fundamentals.

At 9.13am, BIMB rose 3 sen to RM2.70 with 270,6000 shares done.

Meanwhile, Takaful rose 5 sen to RM4.25.

“Pegging on higher P/BV valuations for both companies, our SOP valuation for BIMB Holdings is raised to MYR2.95 from MYR2.55, which implies 16% upside to the current share price.

“Our revised target P/BV multiple for STMB (Not Rated) values the takaful operator at MYR4.75, or 20% upside to its current share price,” Maybank IB said in a note Wednesday.



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KLCI slips in early trade, blue chips weigh

KUALA LUMPUR (May 3): The FBM KLCI slipped in early trade on Thursday in line with the overnight retreat at Wall Street and weaker performance at global markets, on fresh concerns of a slowing economic growth on the back of a fall in employment in the US.

The FBM KCI shed 0.61 of a point to 1,581.78 at 9am, weighed by losses at blue chips including PPB, Hong Leong Bank, Genting and Sime Darby.

Gainers edged losers by 19 to 18, while 41 counters traded unchanged. Volume was 4.08 million shares valued at RM3.12 million.

The S&P 500 and the Dow edged lower on Wednesday as data showed that private sector hiring fell far more than expected in April, sparking concerns that Friday's U.S. jobs report will also disappoint investors, according to Reuters.

Private employers added 119,000 jobs in April, well short of the 177,000 expected, the ADP report showed, it said.

BIMB Securities Research in a note Thursday wrote that reality finally set in as investors were reminded of the not so rosy global picture just yet.

Unemployment data both in the US and Eurozone spooked investors as many reverted to profit take, it said.

The research house said that a lower than expected employment data from the private sector in the US and a jaw dropping 10.9% unemployment rate in Eurozone indicated a long and winding road ahead.

As a result, the Dow Jones Industrial Average reacted with a 11 point decline whilst the European markets closed mostly lower, it said.

Meanwhile, regional bourses ended yesterday’s session broadly higher in tandem with China’s improved outlook, it said.

Locally, the FBM KLCI surged by almost 12 points to close at 1,582 surpassing our expectations.

“Nonetheless, we believe the market’s undercurrent remains shaky as external coupled with the GE13 factors are becoming more prominent on the downside. We may see some profit taking today with the 1,580 as the immediate support level,” it said.



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CIMB Research maintains Trading Buy on Unisem, target price RM1.87

KUALA LUMPUR (May 3): CIMB Research has maintained its Trading Buy rating on UNISEM (M) BHD [] at RMq.46 with a target price of RM1.87 and said the company’s RM11 million 1Q12 loss arising from lower volumes and higher fixed costs was within expectations as 1Q is typically battered by seasonal weakness.

In a note May 3, the research house opined that Unisem’s earnings had bottomed and should recover strongly in the coming quarters.

“We continue to project RM59 million net profit for the full year. We reiterate our Trading Buy call given recently improving leading indicators.

“It is not an outperform yet as visibility is still lacking on the sustainability of this recovery. Our target price basis remains 1.25x FY13 P/BV, based on a 25% premium over its 5-year historical P/BV,” it said.



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Stocks to watch Unisem, Daya Materials, Opcom, Heitech Padu, Hock Lok Siew Corp

KUALA LUMPUR (May 2): The FBM KLCI could be hard pressed to sustain its gains on Thursday, as early trade in Europe and Wall Street on May 2 pointed to weaker performance at the equity markets as disappointing euro zone data sparked new concerns over the region's fiscal health ahead of domestic economic data.

Markit's Eurozone Manufacturing Purchasing Managers' Index dropped to 45.9 last month from 47.7 in March, marking its lowest reading since June 2009. European shares erased earlier gains and the euro dropped to its lowest level in two weeks against the Japanese yen., according to Reuters.

A slew of announcemnts on Bursa Malaysia, including that of the termination of the share swap deal between MALAYSIAN AIRLINE SYSTEM BHD [] (MAS) and AIRASIA BHD [] could spur investor activity, but whether the FBM KLCI can advance will be left to be seen.

Among the stocks that could be in focus are UNISEM (M) BHD [], DAYA MATERIALS BHD [], OPCOM HOLDINGS BHD [], HEITECH PADU BHD [] and Hock Lok Siew Corporation Bhd.

Unisem posted net loss RM13.52 million for the first quarter ended March 31, 2012 compared with net profit RM5.09 million a year earlier.

It said that revenue for the quarter fell to RM256.61 million from RM291.97 million in 2011.

Daya Materials Bhd’s unit Daya CMT Sdn Bhd has secured a CONSTRUCTION [] contract worth RM270 million from Yuk Tung Corporation Sdn Bhd.

Daya said that Daya CMT had been awarded the contract as the principal sub-contractor for the development comprising 3-Blocks of 28-Storey mixed development consisting soho units, office lots, podium car park and basement car park at Jalan Sungai Besi in Kuala Lumpur.

Opcom Holdings Bhd, a fibre-optic cable manufacturer, has secured an RM82 million variation order to an existing RM359 million contract with TELEKOM MALAYSIA BHD [].

Opcom said it had secured the RM359 million fiber-to-the-home contract from Telekom in April 2009. Opcom had in May 2011 secured a two-year extension for the project till April 19, 2013.

Heitech Padu Bhd secured a RM15.2 million job from the national registration department.

Hock Lok Siew Corp said on Wednesday that it had been designated a Practice Note 17 company after triggering the prescribed criterias of the Listing Rules.

Meanwhile, the RM1.1 billion share-swap deal involving beleaguered Malaysian Airline System Bhd (MAS) and AirAsia Bhd has been called off, according to filings to Bursa Malaysia Securities Bhd on Wednesday.

Shares in both MAS and AirAsia were suspended from trading on Wednesday ahead of the announcement, but the airlines have not announced when their respective securities would resume trading.

However, if MAS and AirAsia resume trade on Thursday, investor interest would certainly be high given the nature and magnitude of the original deal that is being called off.

In separate announcements, the two airlines on May 2 said they had entered into a Supplemental Agreement to vary the terms and scope of the original collaboration agreement inked last August.

The share-swap last August saw AirAsia’s Tan Sri Tony Fernandes and his partner Datuk Kamarudin Meranun taking up a 20.5% interest in MAS and two board positions, in exchange for Khazanah owning a 10% stake in the regional budget airline.

The airlines said on Wednesday that pursuant to the Supplemental Agreement, they had separately entered into memorandums of understanding (MoU) in respect of firstly, to jointly explore the setting up of the joint-venture company by MAS, AirAsia and AAX to provide aircraft component maintenance support and repair services.

Secondly, the MoU was to establish the broad set of business principles for the establishment of a special purpose vehicle (SPV) by MAS, AirAsia and AAX to improve value for money and increase competitiveness and benefits to customers through procurement synergies by outsourcing to the SPV the procurement processes for identified goods and services in agreed categories



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