AZRB up 14.6% as RM764.9m job for MRT set to take off

KUALA LUMPUR (March 9): AHMAD ZAKI RESOURCES BHD []’s (AZRB) share price rose 14.6% to RM1.02 in the afternoon session on Friday as the RM764.90 million contract for part of the Klang Valley MRT was set to take off.

At 3.59pm, AZRB was up 13 sen to RM1.02. There were 826,900 shares done.

The FBM KLCI was just up 0.17 of a point to 1,578.53. Turnover was 1.01 billion shares valued at RM936.22 million.

AZRB said on Friday work on the viaduct stretching from Plaza Phoenix to Bandar Tun Hussein Onn station for the Klang Valley MRT would start end-March and be completed in June 2016.

AZRB said the project with a contract value of RM764.90 million was awarded to its unit Ahmad Zaki Sdn Bhd as part of the MRT package V6.

It involves the CONSTRUCTION [] and completion of viaduct guide-way and other associated works. However, the alignment will make full use of elevated structures with a total distance 5.24km along the Cheras-Kajang Highway.

MMC Gamuda KVMRT (PD) Sdn Bhd is the project delivery partner for the MRTproject. IJM Bhd’s unit IJM Construction Sdn Bhd was awarded the adjoining package, Package V5.



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AZRB: RM764.9m viaduct works for MRT to start end-March

KUALA LUMPUR (March 9): AHMAD ZAKI RESOURCES BHD [] (AZRB) says work on the viaduct stretching from Plaza Phoenix to Bandar Tun Hussein Onn station for the Klang Valley MRT would start end-March and be completed in June 2016.

AZRB said the project with a contract value of RM764.90 million was awarded to its unit Ahmad Zaki Sdn Bhd as part of the MRT package V6.

It involves the CONSTRUCTION [] and completion of viaduct guide-way and other associated works. However, the alignment will make full use of elevated structures with a total distance 5.24km along the Cheras-Kajang Highway.

AZRB managing director Datuk Wan Zakariah Wan Muda said on Friday that the proper project implementation plans were already in place.

The plans, he said were not only to meet the requirements of Mass Rapid Transit Corporation Sdn Bhd (MRT Corp) as the project owner and project delivery partner (PDP) but also to address the various concerns raised by the public particularly on traffic diversions, environmental impacts such as noise and vibration and disruptions to the supply of public utilities and services.

MMC Gamuda KVMRT (PD) Sdn Bhd is the project delivery partner for the MRTproject. IJM Bhd’s unit IJM Construction Sdn Bhd was awarded the adjoining package, Package V5.



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Ahmad Zaki, IJM jump on MRT job

Ahmad Zaki Resources Bhd. (AZR MK) jumped 4 percent to 91.5 sen, on course for its highest close since April 18. IJM Corp. (IJM MK) advanced 3.5 percent to 5.94 ringgit. The two companies received contracts from Mass Rapid Transit Corp. to build parts of a mass-rail network, according to stock- exchange filings. IJM’s contract is valued at 974.8 million ringgit ($323 million) and Ahmad Zaki’s at 764.9 million ringgit, the companies said. -- Bloomberg



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IJM Corp, AZRB extend gains on confirming MRT job

KUALA LUMPUR (Feb 2): IJM CORPORATION BHD [] and AHMAD ZAKI RESOURCES BHD [] shares extended their gains on Thursday after the two companies confirmed on Tuesday they had officially received the letters of acceptance Sungai Buloh-Kajang phase mass rapid transit project.

At 9.20am, IJM Corp rose 10 sen to RM5.84 with 512,500 shares done while AZRB added five sen to 93 sen with 967,600 shares traded.

IJM’s phase is for package V5 of the Mass Rapid Transit costing RM974.78 million while AZRB’s contract includes the completion of viaduct guideway and other works from Plaza Phoenix to Bandar Tun Hussein Onn station valued at RM764.91 million.



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HDBSVR sees Malaysian market rebounding on Thursday

KUALA LUMPUR (Feb 2): Hwang DBS Vickers Research said most Asian indices registering positive gains on Wednesday, the FBM KLCI should be raring to go after a one-day break, with the immediate resistance of 1,530 within its sight.

It said on Thursday that major US stock indices rose between 0.7% and 0.9% overnight due to positive outlook from manufacturing data released in the US, UK, China and Germany.

“We believe investors would be keenly following news on Greece’s expected completion of a debt writedown with private investors and an accord on a US$171bn eurozone bailout by the end of this week,” it added.

As for stocks on Bursa Malaysia, HDBSVR said on counters that should attract interest include:

(a) Tebrau Teguh, which was appointed to develop 413 acres of land in Pengerang, Johor, despite an offer of only 76 sen for a 33% stake which would trigger a mandatory takeover offer;

(b) IJM and AZRB, after confirming that they had officially received the letters of acceptance from MRT Corp; and

(c) Southern Steel, after reporting a net loss of RM5 million in the Oct-Dec quarter, which was below consensus expectations.



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Stocks to watch: Tebrau Teguh, MIG, Southern Steel, IJM, AZRB

KUALA LUMPUR (Feb 1): TEBRAU TEGUH BHD [] will be the stock to watch when the Malaysia market resumes trading after a one-day break for the Federal Territory holidays on Wednesday.

Other stocks which could also see trading interest are MELEWAR INDUSTRIAL GROUP BHD [] (MIG), SOUTHERN STEEL BHD [], IJM CORPORATION BHD [] and AHMAD ZAKI RESOURCES BHD [] (AZRB) following the latest corporate developments.

In a surprising turn of events, Tebrau Teguh is being taken over by Iskandar Waterfront Holdings Sdn Bhd (IWH), which is offering 76 sen per share – or just one sen above the pre-suspension price of 75 sen. Its net asset per share was 75 sen as at Sept 30, 2011 while it had RM44.52 million in cash and bank balances.

IWH is buying a 33.15% stake in Tebrau Teguh Bhd, comprising of 22 million shares, from Kumpulan Prasarana Rakyat Johor Sdn Bhd (KPRJ). The proposed acquisition would trigger a mandatory take-over offer by IWH for the remaining shares.

While the one sen premium is insignificant, the upside for the low-key Tebrau Teguh is that it has been appointed to develop 413 acres of land in Pengerang, Kota Tinggi, Johor.

The Johor government has appointed Tebrau Teguh to develop the site for a comprehensive mixed development project. The land, belonging to the state government, is within the Johor oil & gas Industry hub.

Meanwhile, MIG has proposed a corporate exercise involving a share capital reduction and a renounceable rights issue of up to 150.348 million new shares.

The rights issue, at an indicative price of 40 sen per rights share, the rights share would enable it to raise between RM21.97 million and RM60.14 million.

Southern Steel Bhd swung into the red with losses of RM5.52 million in the second quarter ended Dec 31, 2011 due to lower margins and foreign exchange translation losses. Its revenue and loss before tax were RM928.84 million and RM6.40 million respectively as compared with the preceding quarter’s revenue and profit before taxation of RM734.0 million and RM17.3 million.

IJM and AZRB, whose shares had rallied after the announcement by Mass Rapid Transit Corporation Sdn Bhd for the Sungai Buloh-Kajang phase, confirmed on Tuesday they had officially received the letters of acceptance.

IJM’s phase is for package V5 of the Mass Rapid Transit costing RM974.78 million while AZRB’s contract includes the completion of viaduct guideway and other works from Plaza Phoenix to Bandar Tun Hussein Onn station valued at RM764.91 million.



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AZRB confirms RM746m MRT contract

KUALA LUMPUR (Jan 31): AHMAD ZAKI RESOURCES BHD [] (AZRB) has confirmed that it was awarded part of the multi-billion ringgit Klang Valley Mass Rapid Transit (MRT) project valued at RM764.91 million.

AZRB said on Tuesday, its unit had received the letter of acceptance from Mass Rapid Transit Corporation Sdn Bhd for the Sungai Buloh-Kajang stretch and completion of viaduct guideway and other works from Plaza Phoenix to Bandar Tun Hussein Onn station.

“The date for practical completion for the works shall be June 30, 2016 and date for line completion for the whole of the works shall be July 31, 2017,” it said.

AZRB said the project was expected to contribute positively to the group’s earnings and the net tangible assets for the financial years ending 2012 to 2017.



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IJM, AZRB awaiting formal letters of award from MRT Corp

KUALA LUMPUR (Jan 27): IJM CORPORATION BHD [] and AHMAD ZAKI RESOURCES BHD [] (AZRB) are awaiting the formal letters of award from Mass Rapid Transit Corporation Sdn Bh (MRT Corp) to undertake the million-ringgit phase of the MRT project.

The companies said in separate statements on Friday to BURSA MALAYSIA BHD [] that they would make a further announcement upon receipt and acceptance of the letters of awards.

To recap, on Thursday, MRT Corporation said it awarded two CONSTRUCTION [] packages worth RM1.738 billion for the Sungai Buloh-Kajang My Rapid Transit (MRT) line to IJM Construction Sdn Bhd and Ahmad Zaki Sdn Bhd.

IJM Construction will be appointed the main contractor for Package V5 which will cover the construction and completion of the Viaduct Guideway and other associated works from Maluri Portal to Plaza Phoenix Station worth RM974 million.

AZRB will be appointed the main contractor for Package V6 which covers the construction and completion of the Viaduct Guideway and other associated works from Plaza Phoenix to Bandar Tun Hussein Onn Station with a contract value of RM764 million.

In response on Friday, IJM noted the MRT Corp announcement that both awards were subject to the successful tenderers accepting the letter of award to be issued in due course.

“We wish to confirm that IJM Construction Sdn Bhd, a wholly-owned subsidiary of the company, had in December 2011 submitted the tender for the package V5 project and are still waiting for the outcome from MRT Corp.

“We will release the announcement upon receipt of the letter of award from MRT Corp,” it said.



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'Neutral' call on IJM, Ahmad Zaki, stocks jump

IJM Corp Bhd and Ahmad Zaki Resources Bhd's shares rose after their units, IJM Construction Sdn Bhd and Ahmad Zaki Sdn Bhd, were awarded the viaduct construction contracts worth RM1.738 billion for the Sungai Buloh-Kajang Mass Rapid Transit line by MRT Corp.

At 10am, IJM Corp's shares were up 5.32 per cent or 29 sen to RM5.74, while Ahmad Zaki Resources shares surge 18.24 per cent or 13.5 sen to 87.5 sen.

IJM Construction has been appointed the main contractor for the RM974 million Package V5 which covers construction and completion of the viaduct guideway and other related works from Maluri Portal to Plaza Phoenix Station.

Ahmad Zaki has been appointed the main contractor for the RM764 million Package V6 which covers construction and completion of the viaduct guideway and other associated works from Plaza Phoenix to Bandar Tun Hussein Onn Station.

OSK Research Sdn Bhd said the announcement was within expectation as the research firm has highlighted that the V5 and V6 packages of the RM12 billion elevated portion of the Sungai Buloh-Kajang track were to be awarded in February or March.

"However, the quantum of the awards came in higher than our previous projections of between RM400 million and RM500 million each.

"Hence, we're taking this as a positive surprise and foresee near-term upside for both IJM Corp and Ahmad Zaki Resources," it said in a research note.

The research house maintains its "neutral" call on Ahmad Zaki Resources since the share price has increased by eight per cent yesterday to close at 74 sen, leaving less than 10 per cent upside to its revised target price.

It also maintained its "neutral" call on IJM Corp as its sum-of-parts valuation on the company was bumped up to RM5.80 from RM5.74, considering higher contribution from its construction division this year. -- Bernama



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KL stocks easier in early trade

Share prices on Bursa Malaysia were traded lower in the early session Friday on profit-taking in the plantation, palm oil and finance counters, dealers said.

After 10 minutes of trading, the underlying FBM KLCI lost 1.15 points to 1,522.71 after opening 0.01 of a point higher at 1,523.87.

The HwangDBS Vickers Research said the benchmark FBM KLCI would probably tread in a tight band with a marginal downward bias.

"The immediate support line for the bellwether currently stands at 1,515," it said in a research note today.

The research house said while the broad market performance was expected to be sluggish, there could be excitement in individual stocks such as IJM Corp and Ahmad Zaki Resources Bhd amid media reports that they have been awarded construction packages worth RM1.7 billion for the Mass Rapid Transit project.

Kumpulan Europlus' shares are also expected to rise after securing government approval to undertake the RM7.1 billion West Coast Expressway project. The concession is for 60 years.

Market sentiments were broadly higher, with gainers outpacing losers 137 to 77, with 140 counters unchanged, 1,120 untraded and 26 suspended.

Turnover stood at 152.07 million shares worth RM80.17 million.
The Finance Index dwindled 10.74 points to 13,485.87, the Plantation Index lost 13.58 points to 8,713.63, and the Industrial Index fell 5.09 points to 2,787.61.

However, the FBM Emas gained 7.12 points to 10,581.73, the FBM Mid 70 surged 65.69 points to 12,127.71 and the FBM Ace rose 10.52 points to 4,460.92.

Among the volume leaders, The Media Shoppe earned half a sen to 12 sen, Karyon Industries added 1.5 sen to 5.5 sen, while Jotech Holdings eased half sen to 15 sen.

Among the heavyweights, Maybank gained four sen to RM8.26, Sime Darby stood unchanged at RM9.08, while Petronas Chemicals lost one sen to RM6.66. -- Bernama



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IJM, Ahmad Zaki jump on contract wins

IJM Corp jumped 6.1 percent to RM5.78 in Kuala Lumpur trading at 9.30am, headed for its biggest increase since Sept. 28.

Ahmad Zaki Resources Bhd rallied 24 percent to 92 sen, bound for its steepest gain since February 2000.

The companies won contracts valued at RM1.74 billion to build parts of a mass rail network, according to an e-mailed statement from MRT Corp., which awarded the deals. -- Bloomberg



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Infrastructure players advance on landing new jobs

KUALA LUMPUR (Jan 27): Shares of infrastructure players KUMPULAN EUROPLUS BHD [], IJM CORPORATION BHD [] and AHMAD ZAKI RESOURCES BHD [] advanced in early trade on Friday after each saw new developments, namely approval to build a highway and being awarded CONSTRUCTION [] packages.

At 9.05am, Kumpulan Europlus rose nine sen to RM1.40 after its subsidiary West Coast Expressway Sdn Bhd (WCE) has received the government’s approval to build the 316-km west coast project costing RM7.07 billion.

The 316-km Banting to Taiping expressway would be on a build-operate-transfer (BOT) with a concession period of 60 years, which could be the longest period for such a concession.

The land acquisition cost of up to RM980 million for the project will be borne by the government of Malaysia.

Meanwhile, IJM Corp added 31 sen to RM5.76 and AZRB rose 17 sen to 91 sen after MRT Corporation awarded two construction packages worth RM1.738 billion for the Sungai Buloh-Kajang My Rapid Transit (MRT) line to IJM Construction Sdn Bhd and Ahmad Zaki Sdn Bhd.

IJM Construction will be appointed the main contractor for Package V5 which will cover the construction and completion of the Viaduct Guideway and other associated works from Maluri Portal to Plaza Phoenix Station worth RM974 million.

AZRB will be appointed the main contractor for Package V6 which covers the construction and completion of the Viaduct Guideway and other associated works from Plaza Phoenix to Bandar Tun Hussein Onn Station with a contract value of RM764 million.



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CIMB Research advises investors to accumulate IJM Corp

KUALA LUMPUR (Jan 27): CIMB Equities Research advises investors to accumulate IJM Corp shares as it expects the recent newsflow about the West Coast Expressway (WCE) project to spark a rerating of the infrastructure company.

It said on Friday that IJM Corp owns 22.5% of Kumpulan Euro and it is also vying for a share of the WCE CONSTRUCTION [] works.

To recap, on Thursday, Kumpulan Europlus said its subsidiary West Coast Expressway Sdn Bhd had received the government’s approval to build the 316-km west coast project costing RM7.07 billion.

The Banting to Taiping expressway would be on a build-operate-transfer (BOT) with a concession period of 60 years, which could be the longest period for such a concession.

MRT Corporation awarded two significant construction packages worth RM1.738 billion for the Sungai Buloh-Kajang (SBK) My Rapid Transit (MRT) line to IJM Construction Sdn Bhd and Ahmad Zaki Sdn Bhd.

IJM Construction will be appointed the main contractor for Package V5 which will cover the construction and completion of the Viaduct Guideway and other associated works from Maluri Portal to Plaza Phoenix Station worth RM974 million.

Ahmad Zaki will be appointed the main contractor for Package V6 which covers the construction and completion of the Viaduct Guideway and other associated works from Plaza Phoenix to Bandar Tun Hussein Onn Station with a contract value of RM764 million.

CIMB Research said the award of two elevated packages for MRT SBK line and the approval letter for WCE indicate that progress on major projects is gathering pace, as expected. Newsflow on job awards is likely to be active in the medium term.

“These developments tie in with our expectation of strong project flows in 1H12. This news should spark a rerating of our top pick, IJM Corp, which will be a big winner of both projects. The sector remains a Trading Buy, with Gamuda being our other top pick,” it said.



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HDBSVR sees KLCI trading in tight range, support at 1,515

KUALA LUMPUR (Jan 27): Hwang DBS Vickers Research expects the FBM KLCI to probably tread in a tight band with a marginal downward bias after the slightly weaker close on Wall Street.

It said on Friday the immediate support line for the bellwether currently stands at 1,515.

On Wall Street, key U.S. stock indices were down between 0.2% and 0.6% at the closing bell last night. Essentially, investors' sentiment was dented by news that new home sales fell unexpectedly in Dec, which then prompted Wall Street to take a breather following its recent run-up.

As for Bursa Malaysia, it said while the broad market performance was expected to be sluggish, there could be excitement in individual stocks on the back of contract wins including IJM Corporation and AHMAD ZAKI RESOURCES BHD [] (AZRB), Kumpulan Europlus and Alam Maritim.

IJM Corporation and AZRB were awarded CONSTRUCTION [] packages worth RM1.7 billion in the MRT project.

Kumpulan Europlus secured government approval to undertake the RM7.1 billion 60-year concession West Coast Expressway project.

Alam Maritim was awarded an oil & gas support services contract value at RM115 million.



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Stocks to watch: IJM, AZRB, KEuro, Alam Maritim

KUALA LUMPUR (Jan 27): CONSTRUCTION [] stocks could see strong interest after the announcement of two multi-billion ringgit contracts being awarded totaling RM8.808 billion.

The stocks which would draw huge interest on Friday are IJM CORPORATION BHD [], AHMAD ZAKI RESOURCES BHD [] (AZRB) and KUMPULAN EUROPLUS BHD [].

MRT Corporation has awarded two construction packages worth RM1.738 billion for the Sungai Buloh-Kajang My Rapid Transit (MRT) line to IJM Construction Sdn Bhd and Ahmad Zaki Sdn Bhd.

IJM Construction will be appointed the main contractor for Package V5 which will cover the construction and completion of the Viaduct Guideway and other associated works from Maluri Portal to Plaza Phoenix Station worth RM974 million.

AZRB will be appointed the main contractor for Package V6 which covers the construction and completion of the Viaduct Guideway and other associated works from Plaza Phoenix to Bandar Tun Hussein Onn Station with a contract value of RM764 million.

Kumpulan Europlus’ subsidiary West Coast Expressway Sdn Bhd (WCE) has received the government’s approval to build the 316-km west coast project costing RM7.07 billion.

The 316-km Banting to Taiping expressway would be on a build-operate-transfer (BOT) with a concession period of 60 years, which could be the longest period for such a concession. The land acquisition cost of up to RM980 million for the project will be borne by the government of Malaysia.

ALAM MARITIM RESOURCES BHD [] secured a US$37 million (RM115 million) transportation, installation and pre-commissioning contract from Samsung Engineering (Malaysia) Sdn Bhd. The contract is for the transportation, installation and pre-commissioning of two pipelines, two single point moorings and two PLEM’s (pipeline end manifold) in connection with Sabah Oil & Gas Terminal Project.

Meanwhile, AIRASIA BHD []’s airfare issue with the Australian regulators over its online airfare information has been resolved. AirAsia stated the problem could have been due to an IT issue in September 2011 and it had taken corrective action to resolve the complaints.

PLANTATION []-based TDM BHD [], whose share price closed at multi-year highs of RM4.42, could see extended trading interest. Investors were positive outlook for its plan to invest RM300 million to expand its plantations.



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Flash: MRT Corp awards RM1.738 bn jobs to IJM, AZRB

KUALA LUMPUR (Jan 26): MRT Corporation has awarded two significant CONSTRUCTION [] packages worth RM1.738 billion for the Sungai Buloh-Kajang My Rapid Transit (MRT) line to IJM Construction Sdn Bhd and Ahmad Zaki Sdn Bhd.

In a statement, it said IJM Construction will be appointed the main contractor for Package V5 which will cover the construction and completion of the Viaduct Guideway and other associated works from Maluri Portal to Plaza Phoenix Station worth RM974 million.

Ahmad Zaki will be appointed the main contractor for Package V6 which covers the construction and completion of the Viaduct Guideway and other associated works from Plaza Phoenix to Bandar Tun Hussein Onn Station with a contract value of RM764 million, it said.

Both awards are subject to the successful tenderers accepting the Letter of Award to be issued by MRT Corp in due course.

"After stringent and comprehensive evaluation by the One Stop Procurement Committee (OSPC) chaired by the Prime Minister, Datuk Seri Najib Tun Razak, MRT Corp is pleased to announce this award to IJM Construction and Ahmad Zaki. Both companies are helmed by an experienced management team and have a solid track record of delivering projects on time and within costs," said the chief executive officer of MRT Corp, Datuk Azhar Abdul Hamid.

"We are confident that with these significant contract awards, the MRT project implementation will gain momentum and continue to provide positive benefits to the economy," he said.

He said MRT Corp will ramp up its efforts to publically announce the tender and award schedule for the various work packages and encourage all qualified contractors to participate.

"It is our intention that all works packages be subject to competitive bidding. All bidders will have equal opportunity in the tender process and the winning bids will be strictly based on merit," he added. - Bernama



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OSK maintains 'neutral' call on AZRB

OSK Research Sdn Bhd has maintained its "neutral" call on Ahmad Zaki Resources Bhd (AZRB) following the company's lower
nine-months financial year 2011 earnings of RM9.1 million.

In a research note today, OSK Research said AZRB's lower earnings was way below its expectations.

"The disappointment was mainly due to the low margin jobs being recognised for the three quarter financial year 2011 and a higher effective tax rate," it said.

Nevertheless, OSK Research noted that AZRB has a strong order book to help drive revenue in financial year 2012.

The research firm remain cautious on AZRB's execution and hence, its "neutral" rating. -- Bernama



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