KLCI struggles but stays above 1,580-level

KUALA LUMPUR (APRIL 23): The FBM KLCI struggled to remain above the important 1,580-level on Monday after having succumbed more than 8 points to fall below the 1,590-level.

Asian shares trended lower as political developments in France and the Netherlands raised fears about the region's commitment to tackle its ongoing debt crisis, according to Reuters.

The FBM KLCI lost 8.05 points to close at 1,583.80, weighed by losses including at CIMB, Genting, BAT, Tenaga, Telekom and RHB Capital.

Europe's top shares opened lower on Monday on the political concerns, but attention was expected to switch to the economy, with euro zone manufacturing activity indicators due out later after data from China showed some signs of recovery in factory output but not enough to prevent the sector contracting, said Reuters.

At the regional markets, Hong Kong’s hang Seng Index lost 1.84% to 20,634.39, Singapore’s Straits Times Index lost 1.11% to 2,961.18, the Shanghai Composite Index fell 0.76% to 2,388.59, Taiwan’s Taiex was down 0.35% to 7,481.09, and Japan’s Nikkei 225 shed 0.20% to 9,542.17, whiel South Korea’s Kospi edged down 0.10% to 1,972.63.

Among the major losers on Monday, BAT fell 98 sen to RM55.540, Aeon and Jaya Tiasa fell 21 sen each to RM9.20 and RM9.76, Genting 18 sen to RM10.62, Boustead 17 sen to RM5.28, Bumi Armada and CSL 16 sen each to RM4.31 and RM1.49, Warisan and Nestle down 14 sen each to RM2.34 and RM55.84, while Subur Tiasa fell 13 sen to RM2.95.

Other decliners included CIMB and Telekom that fell five sen each to RM7.50 and RM5/37, whiel RHB Capital and Tenaga lost four sen each to RM7.39 and RM6.48.

Araiantec was the most actively traded counter with 396.6 million shares done. The stock gained two sen to 24 sen.

Other actives included Metronic, Asral Supreme, Focus, Naim Indah Corp, JCY and Jotech.

Advancing stocks included Petronas Dagangan, Aeon Credit, United PLANTATION []s, Dutch Lady, Kencana, SapuraCrest, Manulife, Litrak and BIntulu Port.



Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.

Stocks to watch Eversendai, Boustead, Tenaga, Genting Plantations

KUALA LUMPUR (April 14): Malaysian shares are anticipated to rise next week and analysts expect the FBM KLCI to extend its rally higher supported by positive sentiment on good Q1 earning result, further stimulus from global central banks, easing borrowing costs in Europe and stronger than expected China’s economic recovery.

Investor jitters at the regional markets over rising tensions in the Korean Peninsula dissipated with North Korea’s botched missile launch.

However, euro zone crisis is flaring up and debt auctions by safe-haven Germany and current bad boy Spain in the coming week will provide a gauge how far investor sentiment has changed since the shock and awe of recent ECB liquidity injections has worn thin, according to Reuters.

Affin Investment Bank Bhd vice president and head of retail research Dr Nazri Khan said the impressive rebound made by China stock market (China Shanghai composite posted best-in-two-months daily performance last week) would give more upside momentum to the emerging markets including Malaysia.

“As China is the world's biggest importer of commodities, we reckon stronger Chinese stocks and weaker USA dollar will lead to more commodity buying (FTSE China climbed 4%, CRB Index up 1% and Dollar Index down 2% respectively) which in turn will benefit Malaysian stocks.

Among the stocks that could be in focus on Bursa Malysia are Eversendai Corp Bhd, BOUSTEAD HOLDINGS BHD [], TENAGA NASIONAL BHD [] and Genting PLANTATION []s Bhd.

Eversendai Corp will undertake a 193 million riyal (RM158 million) structural steel job for the railway station at King Abdul-Aziz International Airport in Saudi Arabia.

The company said last Friday that it ha been appointed as subcontractor for the project by Saudi Binladin Group Architecture & Building CONSTRUCTION [] Division.

Bosutead has roped in Luxembourg-based Ikano Holding SA as a joint venture (JV) partner to acquire prime Kuala Lumpur land where both companies intend to develop and manage a shopping centre.

Boustead last Friday said the JV would it to increase its portfolio of retail investment PROPERTIES [] and leverage on its expertise to jointly develop and manage a shopping centre in the Kuala Lumpur city centre location," Boustead said.

Ikano owns and runs IKEA retail outlets across South East Asia under a franchise agreement with IKEA System BV.

Tenaga could extend its gains on Monday on the back of its net profit rising more than four fold from a year earlier, as a RM2.02 billion fuel-cost compensation from the government and Petroliam Nasional Bhd mitigated the impact of costlier fuel to the state-owned utility's profits.

The stock rose 10 sen to close at RM6.61 last Friday.

Genting Plantations will acquire a controlling 63.2% stake in a joint venture (JV) company for US$116 million (about RM355 million), a move which will give the acquirer access to some 74,000 ha of oil palm plantation in Kalimantan, Indonesia.

In a statement to Bursa Malaysia on Friday, Genting Plantations said it would jointly own the Singapore-based JV entity Global Agripalm Investment Holdings Pte Ltd with Global Agrindo Investment Co Ltd which will hold the remaining stake. Global Agrindo is part of Indonesia-based Sin Tek Huat Group.



Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.

Boustead-Ikano JV to develop shopping centre in KL

KUALA LUMPUR (April 13): BOUSTEAD HOLDINGS BHD [] has roped in Luxembourg-based Ikano Holding SA as a joint venture (JV) partner to acquire prime Kuala Lumpur land where both companies intend to develop and manage a shopping centre.

In a statement to the exchange on Friday, Boustead said both companies will set up an equally-owned JV entity Circuit Wealth Sdn Bhd which will acquire land from Lembaga Tabung Angkatan Tentera (LTAT).

"The proposed JV will allow Boustead to increase its portfolio of retail investment PROPERTIES [] and leverage on its expertise to jointly develop and manage a shopping centre in the Kuala Lumpur city centre location," Boustead said.

Ikano owns and runs IKEA retail outlets across South East Asia under a franchise agreement with IKEA System BV.



Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.

Boustead edges up on positive outlook

KUALA LUMPUR (APRIL 10): BOUSTEAD HOLDINGS BHD [] shares advanced on Tuesday after its group managing director Tan Sri Lodin Wok Kamaruddin said the company aims to grow the diversified group’s profit before tax (PBT) to RM1 billion and net profit to RM750 million in the next two years amid the expected improving prospects in all divisions.

At 12.14pm, Boustead added three sen to RM5.47 with 410,500 shares traded.

“Personally, I would like to see the group breach the RM1 billion mark for PBT within the next two years,” he said after the company AGM’s on April 9.

“If we can move revenue towards the RM10 billion mark this year, that will be a good achievement,” he said, adding that based on the first three months of 2012, the group’s prospects were looking very healthy.

For FY11 ended Dec 31, Boustead recorded a 14% increase in PBT to RM831 million from RM726 million a year ago. Its revenue rose 38% to RM8.6 billion from RM6.2 billion.

Lodin said the group was allocating some RM1.3 billion for its capital expenditure this year. The largest portion of RM400 million will be for the property division, RM300 million for PLANTATION [], RM200 million for shipbuilding, RM100 million for pharmaceuticals and the balance for other operating units.

Lodin expects the plantation division, which contributed 41% to the group’s bottom line last year, to exceed the RM300 million achieved in 2011 if the price of crude palm oil continues to be as strong at between RM3,000 and RM3,500.



Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.

KLCI opens at fresh new high

KUALA LUMPUR (April4): The FBM opened at a fresh new all-time high on Wednesday, with its momentum still intact despite the retreat at most key regional markets following the weaker overnight close at Wall Street after the after the U.S. Federal Reserve said it was less inclined to provide more economic stimulus.

The FBMKLCI was up 0.91 of a point to 1,607.54 at 9am, lifted by gains at blue chips including Genting, Maybank and IOI Corp.

Gainersled losers by 17 to 11, while 38 counters traded unchanged. Volume was 4.09 million shares valued at RM2.74 million.

Meanwhile, Asian shares eased on Wednesday after the minutes from the U.S. Federal Reserve's March meeting suggested the bank was less likely to take further stimulus measures, leaving investors looking for more clues over global growth outlook, according to Reuters.

The minutes showed Fed policymakers, while noting signs of slightly stronger growth, remained focused on a still elevated jobless rate. But the minutes suggested the appetite for further quantitative easing, so-called QE3, has waned significantly in light of improving U.S. economy, it said.

Among the early gainers were BAT that rose 32 sen to RM56.54, Genting up four sen to RM11.08, Boustead two sen to RM5.48, while IOI Corp, Maybank, Telekom, Leader, MBSB, Muhibbah and Mudajaya added one sen each to RM5.37, RM8.96, RM5.39, RM1.07, RM2.29, RM1.35 and RM2.91, respectively.

Iris Corp was the most actively traded counter with 1.4 million shares done. The stock shed half a sen to 18 sen.

Other actives included Ariantec, TMS, IFCA MSC, Hubline, Voir and Telekom.



Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.

Boustead climbs on getting RM5.6b loans

Boustead Holdings Bhd, a plantation, property and heavy industries group, climbed 1.3 percent to RM5.52 in Kuala Lumpur trading at 9.32am, bound for its largest gain since March 2.

The company obtained syndicated debt facilities totaling as much as RM5.6 billion (US$1.8 billion) to finance the construction of six combat patrol vessels for the Malaysian navy, it said in a statement. -- Bloomberg



Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.

Boustead Naval Shipyard gets RM2.06 bn financing facilities

KUALA LUMPUR (March 19): Boustead Naval Shipyard Sdn Bhd (BNS) has obtained facilities of up to RM2.06 billion, which is part of the overall syndicated facilities of up to RM5.56 billion.

The facilities would be used for by BNS, a subsidiary of BOUSTEAD HOLDINGS BHD [], which was awarded a contract by the Malaysian navy for the CONSTRUCTION [] of six second-generation patrol vehicles with combatant capabilities.

Boustead Holdings Bhd said on Monday that the RM2.06 billion facilities obtained by BNS, a subsidiary of the group, was under phase one.

"The tenure of phase one facilities ranges from four years to eight years eight months. In this respect, the facilities amount under Phase 1 facilities will be reduced in accordance with the tenure. Payments from the government on completion basis will be utilised to settle the phase one facilities," it said.

Phase two of the facilities of up to RM3.505 billion which formed part of the remaining syndicated facilities were still on-going.

The joint mandated lead arrangers for phase one were Affin Investment Bank Bhd, Maybank Investment Bank Bhd and AmInvestment Bank Bhd.

The co-arrangers were Affin Bank Bhd, MALAYAN BANKING BHD [] and Maybank Islamic Bhd.

The co-managers were Bank Pembangunan Malaysia Bhd, Bank Muamalat Malaysia Bhd and Bank Kerjasama Rakyat Malaysia Bhd.

The lenders were Affin Bank Bhd, Malayan Banking Bhd, Bank Pembangunan Malaysia Bhd, Affin Investment Bank Bhd, Bank Kerjasama Rakyat Malaysia Bhd, Maybank Islamic Bhd and Bank Muamalat Malaysia Bhd.



Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.

Stocks to watch: HWGB, SKP, MSC, Gefung

KUALA LUMPUR (March 10): After a bumpy ride over the past week, which saw the FBM KLCI retracing the most in 2012, the market could receive a boost from firmer external developments, especially from the US markets.

Affin Investment Bank head of retail research, Dr Nazri Khan expected the KLCI to advance, underpinned by local projects newsflow, stronger US jobs data and rising optimism that Greece would avoid a disorderly default.

“Despite the last three days broad sell-off (Tuesday-Thursday), we generally view the distribution as a healthy correction to neutralise the overbought market condition (five months of KLCI uptrend with 12.5% gains since October 2011),” he said.

Nazri said based on his technical analysis, since the KLCI is holding above the 20, 50 and 200-day moving average is an indication the longer-term trend is still positive with KLCI aiming for 1,600 level as the ultimate near term target.

On Wall Street, for the week ahead, Reuters reported that US stocks may still sell off in the near term, but it's not likely to be a drastic decline.

Reuters said much of the optimism has come from signs of further improvement in the US economy. Friday's stronger-than-expected jobs report - the most widely watched U.S. economic indicator - gave the stock market more wind in its sails.

The S&P 500 ended the week with a gain of 0.1%, even though on Tuesday, it marked its weakest day so far in 2012 on concerns about a default by Greece on its country's debt.

Investors had also brushed aside Friday's news of a technical default by the country was mostly brushed aside by investors.

Reuters reported that while concerns about Greece aren't going away, the worst-case scenario has been averted, and the payroll report is another reason for investors to be confident.

As for Malaysia, among the stocks to watch on Monday are HO WAH GENTING BHD [] [] (HWGB), SKP RESOURCES BHD [], Malaysia Smelting Corp Bhd (MSC), GEFUNG HOLDINGS BHD [] and DIJAYA CORPORATION BHD [].

HWGB, whose shares had seen very active trade, said it is not in talks to sell its tin mining business for US$75 million (RM227 million) to Yunnan Tin Group.

HWGB said it was not negotiating with Yunnan Tin’s subsidiary Sino-Platinum Metals Co. Ltd to dispose of the business at this point in time.

A news report said Yunnan Tin had plans to buy HWGB’s tin mining business for US$75 million.

Meanwhile, The Edge weekly reported that the emergence of Dyson, the British innovative designer of electrical appliances, as a major new customer has launched a strong stream of earnings for SKP Resources.

MSC will rope in Optima Synergy Resources Ltd as a joint venture partner to undertake tin mining operations in Indonesia.

MSC signed a strategic alliance agreement with Optima Synergy, which is owned by Indonesian shareholders.

The deal will allow Optima Synergy to acquire up to 23% of MSC’s unit Bemban Corp Ltd for US$1.38 million, according to MSC. Bemban in turn has a 75% stake in PT Koba Tin which has secured a mining contract from the Indonesian government.

Gefung will not go ahead with the proposed joint venture for a mixed development project on 50.74 acres of land in east of Jakarta.

Gefung said the company and PT Greenworld Development “could not reach an agreement on the terms and conditions for the proposed project, the parties have mutually agreed to terminate the MoU with immediate effect”.

The Edge weekly reported that judging from the present share price movement, investors seem cautious about Dijaya’s proposal to acquire 73 PROPERTIES [] from major shareholder Tan Sri Danny Tan and family for an indicative consideration of RM948.7 million, mostly via the issuance of loan stocks.

BOUSTEAD HOLDINGS BHD [] sees its profit breaching the RM1 billion level within the next two years.

Deputy chairman/group managing director Tan Sri Lodin Wok Kamaruddin was quoted saying by Bernama that 2011 was a record year for the group.

“My personal target is that we’ll breach the RM1 billion profit level within the next two years. It could be this year or next year,” he said.

Lodin said Boustead would remain focused on PLANTATION []s, financial services, property, manufacturing and trading, pharmaceuticals and heavy industries.

In FY Dec 31, 2011, Boustead posted a pre-tax profit of RM831 million, up 14.43% from the RM726.2 million in FY10.



Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.

Boustead sees profit hitting RM1 b in next 2 years

KUALA LUMPUR (March 9): BOUSTEAD HOLDINGS BHD [], which staged a remarkable performance last year, sees its profit breaching the RM1 billion level within the next two years.

“Last year was a record year for us. My personal target is that we’ll breach the RM1 billion profit level within the next two years. It could be this year or next year,” said its deputy chairman/group managing director Tan Sri Lodin Wok Kamaruddin.

To achieve the target, Lodin said Boustead would remain focused on the six core business activities namely PLANTATION []s, financial services, property, manufacturing and trading, pharmaceuticals and heavy industries.

For its financial year (FY) ended Dec 31, 2011, Boustead posted a pre-tax profit of RM831 million, a rise of 14.43 per cent from the RM726.2 million recorded for the previous year.

He expects the company’s plantation division to be the major contributor to its profit for the current year with heavy industries also contributing substantially.

“We also believe that the pharmaceuticals and financial services divisions can be good contributors to the group,” Lodin told Bernama in an interview.

However, he stressed the importance of sustaining profits for the company.

“I believe the price of crude palm oil (CPO) will be sustainable at the current level of around RM3,200 per tonne. It will be another good year for us. The plantation sector contributed about 40 per cent to the group’s profit last year.

"We expect similar or higher contribution from the division this year if the price of CPO remains at the level,” he said.

As for the heavy industries division, he expects it to perform well for the current year with the contract to build six units of the second-generation patrol vessels.

He expects the division to contribute more than 10 per cent to the group’s profit for the current financial year.

The heavy industries division posted a breakeven for FY 2011 compared with a profit of RM146.2 million for the previous year due to cost escalations in commercial shipbuilding projects and higher finance charges.

Lodin said the group’s financial services sector, which recorded good profit for FY 2011, would continue to perform well in the current year.

“To achieve the targeted profit, other entities must be well-managed professionally in the most cost-effective way with good corporate governance in place,” he added.

According to him, the group’s manufacturing and trading division would also continue to record good performance for the current financial year. The divison's pre-tax profit increased in FY 2011 with BHPetrol contributing significantly.

He said BHPetrol, with about nine per cent market share, had been recording revenue growth of about seven per cent annually. BHPetrol now has 330 service stations throughout Malaysia.

Lodin also said the group’s property division, which posted a higher profit for its FY 2011 compared to the previous year, would continue to record a remarkable performance.

He said the group’s four hotels are currently recording occupancy rates of between 60 per cent and 90 per cent. The four hotels are Royale Chulan in Kuala Lumpur and three, under the brand name of Royale Bintang, located at The Curve in Petaling Jaya, Jalan Bukit Bintang in Kuala Lumpur and in Seremban.

“All our hotels except Royale Chulan are profitable. We expect Royale Chulan to break even or record a small profit this year. Its occupancy rate is improving, now it is close to 60 per cent,” he said.

Another two hotels are under CONSTRUCTION [] -- Royale Bintang in Penang and Royale Bintang Cherating, expected to open for business in the middle of 2013 and early 2014 respectively.

Boustead also manages a small hotel, Royale Aryani in Terengganu. - Bernama



Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.

CIMB Research maintains Hold on Boustead Holdings, lower TP of RM5.24

KUALA LUMPUR (Feb 28): CIMB Equities Research said BOUSTEAD HOLDINGS BHD []’s FY11 core net profit, which excluded RM247 million one-offs, was below expectations at only 87% of its forecast and 85% of consensus numbers.

It said on Tuesday that a weaker-than-expected heavy industries division weighed down group earnings.

“Despite factoring in higher CPO prices and a lower tax rate, we reduce our ex-bonus FY12-13 core EPS by 6.4%-6.6% due to slower progress billings for heavy industries and a lower contribution from Pharmaniaga which is now 67.2% owned instead of 98%m,” it said.

CIMB Research said it made several key changes to its RNAV computation 1) update for the current value of listed assets, 2) raise its PLANTATION [] valuation and 3) update Boustead’s stake in Pharmaniaga.

“The net effect is a rise in our RNAV value. But we pare down our RNAV-based target price from RM5.47 to RM5.24 as we now apply a 10% RNAV discount in view of its volatile earnings. We continue to rate Boustead a Hold as there are no immediate catalysts,” it said.



Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.

Stocks to watch: CIMB, Cocoaland, TDM, Kimlun

KUALA LUMPUR (Feb 27): Market sentiment is expected to stay cautious on Tuesday as global equities pull back on concerns of strong oil prices’ weighing down already fragile economies in Europe.

At Bursa Malaysia, the corporate results should provide leads for investors as the reporting season draws almost to a close.

Among the stocks to watch are CIMB Group Holdings Bhd, COCOALAND HOLDINGS BHD [], TDM BHD [], Kimlun Corporation Bhd, Eastern & Oriental Bhd (E&O), Petronas Chemicals Bhd, HONG LEONG BANK BHD [], DRB-HICOM BHD [] and BOUSTEAD HOLDINGS BHD [].

CIMB posted net profit of RM1.132 billion in the fourth quarter ended Dec 31, 2011, up 29.8% from RM872.61 million a year ago. Its revenue was 6.1% higher at RM3.381 billion compared with RM3.185 billion. It announced a second interim dividend of 10.0 sen amounting to a net payment of RM743 million.

For FY11, it posted a record net profit of RM4.031 billion for 2011, or up 15.1% when compared with RM3.500 billion in FY10. The FY11 net return on equity (ROE) was also a record high 16.4%, but below the group’s full-year target of 17%.

Cocoaland’s earnings soared 103.2% to RM8.72 million for the fourth quarter ended Dec 31, 2011, from RM4.29 million a year ago, due to an increased selling price and higher trading volume of its products. It announced a second interim dividend of 6% per share.

TDM's earnings jumped 44.5% to RM44.34 million in the fourth quarter ended Dec 31, 2011, from RM30.68 million a year ago, on the back of higher crude palm oil (CPO) production and CPO prices.

Kimlun’s order book has increased to RM1.45 billion with the latest contract to build an extension to a shopping mall in Johor Baru for RM71.99 million. Its unit accepted the letter of award from Taman Sutera Development Sdn Bhd for the project.

E&O posted a strong set of results for the third quarter ended Dec 31, 2011 with earnings up 385% to RM15.36 million from RM3.16 million a year ago boosted by stronger property’s sales. Its revenue jumped 221% to RM123.12 million from RM41.08 million.

Petronas Chemicals Bhd posted total comprehensive income of RM735 million in the third quarter ended Dec 31, 2011, down 17.4% from RM890 million a year ago. Profit for the quarter was lower by RM172 million or 17% at RM826 million.

For the nine-month period, its net profit was RM2.62 billion while revenue was RM11.88 billion due to higher prices for olefins and derivatives and fertilisers and methanol.

Hong Leong Bank Bhd’s earnings rose 30.8% to RM381.37 million in the second quarter ended Dec 31, 2011 from RM291.43 million. Its revenue surged 66.1% to RM1.003 billion from RM603.96 million. Its earnings per share were 24.22 sen compared with 20.07 sen. It declared an interim dividend of 11 sen compared with nine sen.

Malaysian Rating Corp Bhd (MARC)has has revised the outlook on DRB-HICOM Bhd's (DRB-Hicom) AA-IS sukuk rating on its RM1.8 billion Islamic Medium Term Notes (IMTN) programme to negative from stable.

It said on Monday the outlook revision recognises the potential weakening of DRB-Hicom's near-to-intermediate term financial profile due to its debt-funded acquisition of PROTON HOLDINGS BHD [] (Proton).

Boustead Holdings Bhd’s net profit fell 8.6% to RM192.30 million in the fourth quarter ended Dec 31, 2011 from RM208.90 million a year ago.

Its revenue jumped 51% to RM2.554 billion from RM1.689 billion. Earnings per share were 18.59 sen compared with 20.20 sen. It proposed dividend of 9.0 sen.

For FY11, its earnings rose 13.6% to RM610.60 million from RM537.50 million in FY10. Its revenue increased 38.4% to RM8.55 billion from RM6.18 billion.



Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.

Boustead reports RM831m pre-tax profit

Boustead Holdings Bhd has registered a pre-tax profit of RM831 million for the financial year ended Dec 31, 2011, a 14per cent jump from RM726.2 million the previous year.

Revenue rose to RM8.555 billion from RM6.181 billion.

In a filing to Bursa Malaysia today, the company said the hike in revenue and profit was mainly due to higher sales volume from its business segments,including 31 per cent increase in revenue for the manufacturing and trading division.

The plantation division's revenue increased by 28 per cent, mainly on stronger palm product prices and better fresh fruit bunches crop. - Bernama



Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.

Boustead Holdings 4Q earnings dn 8.6% to RM192.30m

KUALA LUMPUR (Feb 27): BOUSTEAD HOLDINGS BHD []’s net profit fell 8.6% to RM192.30 million in the fourth quarter ended Dec 31, 2011 from RM208.90 million a year ago.

It announced on Monday its revenue jumped 51% to RM2.554 billion from RM1.689 billion. Earnings per share were 18.59 sen compared with 20.20 sen. It proposed dividend of 9.0 sen.

For FY11, its earnings rose 13.6% to RM610.60 million from RM537.50 million in FY10. Its revenue increased 38.4% to RM8.55 billion from RM6.18 billion.

Boustead said for FY11, the PLANTATION [] division delivered RM299 million in profit compared with RM183 million in FY10.

“In addition, the division also benefitted from a gain from the disposal of plantations amounting to RM95 million. The average CPO price realised was RM3,272 per tonne, an increase of 25% over last year’s average of RM2,622 per tonne,” it said.

As for the property division, it registered a 52% increase in profit to RM211 million compared with RM139 million a year ago.

“Fair value gain and increased rental income were the key factors which contributed to the division’s earnings,” it said.

Boustead said its trading and manufacturing division recorded a profit of RM113 million, up 20% from RM94 million in 2010.

“The division performed well this financial year due to strong earnings derived from Boustead Petroleum Marketing Sdn Bhd mainly due to increased volumes from all product lines, stronger operating margins that were achieved through cost optimisation and improved operational efficiencies,” it said.

As for the pharmaceutical division, it registered profit of RM68 million, of which RM40 million was from Idaman Pharma Manufacturing Sdn Bhd for the year under review.

However, the finance and investment division registered a profit of RM45 million during the year under review compared with RM144 million in the previous financial year.

In FY10, the profit included gains from the disposal of BH Insurance Bhd amounting to RM75 million. AFFIN HOLDINGS BHD [] contributed a record profit of RM106 million to the Boustead Group.

As for the heavy industries division, it reported a break-even result compared with last year’s profit of RM146 million due to higher finance charges and the turbulent global economic climate that impacted the division.

Boustead was positive on the outlook as it expected the division to perform well given that the CONSTRUCTION [] of the second generation patrol vessels would be undertaken in the coming financial year.



Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.

Weak start for Bursa Malaysia’s first IPO of 2012

KUALA LUMPUR (Feb 23): Bursa Malaysia’s first initial public offer (IPO) for 2012, Sentoria Group Bhd, got off to a weak start, with the share price ending the morning session below its reference price of 87 sen.

The weak debut also reflected the cautious local and key regional markets as investors feared high oil prices would slow down global economic growth and also the continuing Euro zone debt crisis saga.

At 12.30pm, the FBM KLCI was down 1.08 points to 1,559.44. Turnover was 937.15 million shares valued at RM811.77 million. Declining stocks beat advancers 515 to 206 while 293 counters were unchanged.

All the key regional markets fell, with the exception of Japan where the Nikkei 225 rose 0.13% to 9,566.42.

Hong Kong’s Hang Seng Index fell 0.98% to 21.337.50, Shanghai’s Composite Index lost 0.05% to 2,402.30, Taiwan’s Taiex 0.71% to 7,945.15 and South Korea’s Kospi 1.12% to 2,006.01 while Singapore’s Straits Times Index shed 0.97% to 2,966.66.

At Bursa Malaysia, property developer Sentoria fell eight sen to 79 sen in active trade, with 21.62 million shares done. Its reference price was 87 sen, which was the placement price while the price offered to the public was 85 sen.

CIMB fell seven sen to RM7.17, dragging the KLCI down 1.23 points while HL Bank lost 12 sen to RM11.72 and Maybank one sen to RM8.70. Public Bank rose four sen to RM13.72.

AirAsia shed seven sen also to RM3.58, pushing the index down by 0.45 of a point. GENTING BHD [] lost four sen to RM10.80.

Among the PLANTATION []s, IOI’s decline of five sen, dragged the index down by 0.76 of a point. Batu Kawan fell 20 sen to RM18.60 and KLK 16 sen to RM23.48.

Lafarge fell 17 sen to RM7.20 and Boustead 16 sen to RM5.38 while SapuraCrest gave up 12 sen to RM4.88.

However, Axiata managed to support the index by 1.8 points when it rose nine sen to RM5.10. Tenaga added eight sen RM6.19, nuding the index by 1.02 points. United Plantations was the top gainer, up 54 sen to RM23.96, Hartalega 26 sen to RM8.23 and Oriental 25 sen to RM6.03.



Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.

KLCI stays above 1,520-level at mid-day, but caution reigns

KUALA LUMPUR (Jan 30): The FBM KLCI stayed about the 1,520 level at the mid-day break on Monday, but investor sentiment remained generally cautious in line with regional markets that inched down.

Markets are cautiously tuned in to a likely debt swap deal for Greece that is crucial to avoiding a messy default and eyed yet another European summit meeting, according to Reuters.

The FBM KLCI was up 0.25 of a point to 1,521.16 at the mid-day break.

Gainers led losers by 427 to 287, while 308 counters traded unchanged. Volume was 1.28 billion shares valued at RM769.76 million.

The ringgit weakened 0.02% to 3.0435 versus the US dollar; crude palm oil futures for the third month delivery fell RM17 per tonne to RM3,118, crude oil lost 44 cents per barrel to US$99.12, while gold fell US$6.52 an ounce to US$1,732.55.

At the regional markets, Japan’s Nikkei 225 was down 0.47% to 8,799.60, Hong Kong’s Hang Seng Index fell 0.49% to 20,401.30, the Shanghai Composite Index shed 0.32% to 2,311.70, South Korea’s Kospi fell 0.98% to 1,945.48, and Singapore’s Straits Times Index was down 0.57% to 2,899.68 while Taiwan’s Taiex jumped 2.35% to 7,403.47.

On Bursa Malaysia, Glenealy rose 58 sen to RM7.13, Hartalega up 30 sen to RM7.20, GFB 25 sen to RM1.46, Batu Kawan 22 sen to RM19.22, Tradewinds PLANTATION []s 20 sen to RM4.88, TDM, Sarawak Plantations and Puncak Niaga up 19 sen each to RM4.55, RM3.02 and RM1.49 respectively, Dutch Lady 18 sen to RM25.80 and Boustead 17 sen to RM3.59.

DBE Gurney was the most actively trade counter with 58.1 million shares traded. The stock rose half a sen to 14 sen.

Other actives included DRB-Hicom, TMS, Pos Malaysia warrants, Compugates, RedTone and Utopia.

Shipping-related counters were among the major losers this morning, with Maybulk down 31 sen to RM2.34, Bumi Armada down 12 sen to RM3.88 and MISC three sen to RM5.93.

Other decliners included Tasek, KLK, Amway, Parkson, Genting and Berjaya Sports Toto.



Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.

HDBSVR ups Boustead Holdings target price to RM6.60 ex-bonus

KUALA LUMPUR (Jan 27): Hwang DBS Vickers Research is maintaining its Buy call on BOUSTEAD HOLDINGS BHD [] and raised the target price to RM6.60 ex-bonus.

It said on Friday it continues to like Boustead as a government-linked conglomerate with strong growth prospects as the company has evolved into a more dynamic entity with lower execution risk.

"Our TP (ex-bonus) is raised to RM6.60 after including contribution from a new hotel, rolling over valuation base to FY12F and our new TP for Affin based on 1.1 times FY12F book value. This values Boustead at 12 times FY12F price-to-earnings and 2.0 times price-to-net tangible assets,” HDBSVR said.



Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.

Boustead sells 95% stake in PT Dendymarker Indahlestari for US$38m

KUALA LUMPUR (Jan 16): BOUSTEAD HOLDINGS BHD [] is selling a 95% stake in PT Dendymarker Indahlestari to PT Agro Investama Gemilang (PTAIG) for US$38 million (RM119.53 million).

PT Dendymarker Indahlestari, which provides oil palm PLANTATION []s services, is based in Musi Rawas, Indonesia.

“The proposed disposal will benefit the Boustead group as the group intends to focus on its oil palm operations in Malaysia,” it said.

Boustead said on Jan 11, its unit Bounty Corp Sdn Bhd and Supriadi Zainal had signed a sale and purchase agreement with PTAIG to dispose of a combined 95% stake for the US$38 million.

Under the agreement, Bounty Corp would dispose of 712,576 shares or 94.7% and Supriadi the other 0.3% to PTAIG.

Bounty Corp and PTAIG also entered into a put and call option agreement for another 37,504 shares at an exercise price of US$2 million.



Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.

KL shares close lower

Shares of the following companies had unusual moves in Malaysia trading. Stock symbols are in parentheses and prices are as of the close in Kuala Lumpur.

The FTSE Bursa Malaysia KLCI Index fell 1.1 per cent to 1,513.54. The decline is the most since Nov. 25, snapping a seven-day, 4.5 per cent rally.

Boustead Holdings Bhd, a plantation, property and heavy industries group, added 2.6 per cent to RM5.93, its highest close since July 13. Its unit MHS Aviation Bhd, which provides air transport services to the oil and gas industry, agreed to buy 16 aircraft for RM586.2 million from DRIR Management Sdn Bhd and DRIR Rotor Sdn Bhd, according to a stock-exchange filing.

Cypark Resources Bhd, an environmental and landscaping services provider, lost 1.4 per cent to RM1.43, the biggest slide since Dec. 16. Fourth-quarter net income fell 22 per cent from a year earlier to RM4.1 million, it said in a statement.

Malaysian Airline System Bhd, the national carrier, jumped 13 percent to RM1.47, its largest gain since October 2007. The airline hired Hugh Dunleavy of WestJet Airlines to head the carrier’s network, alliance, strategy and planning unit, and Shihaj Kutty to lead revenue management as part of a new management structure, it said in a statement.

Proton Holdings Bhd, the national carmaker, rose 1.7 per cent to RM4.90, its highest since Dec. 14, 2010. General Motors Co may buy as much as 50 per cent of Proton’s stake in an auto plant in Tanjung Malim for up to RM800 million, the Edge weekly newspaper reported, citing people it didn’t identify. Proton Managing Director Syed Zainal Abidin Syed Mohamed Tahir couldn’t immediately return calls seeking comment.

Proton was also upgraded to “trading buy” from “neutral” at CIMB Group Holdings Bhd, which raised its share- price estimate to RM5.45 from RM4.35. -- Bloomberg



Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.

Boustead gains after purchasing aircrafts

Boustead Holdings Bhd, a plantation, property and heavy industries group, added 1.2 per cent to RM5.85, bound for its highest close since Aug. 4.

Its unit MHS Aviation Bhd., which provides air transport services to the oil and gas industry, agreed to buy 16 aircraft for RM586.2 million from DRIR Management Sdn and DRIR Rotor Sdn, according to a stock-exchange filing. -- Bloomberg



Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.

Stocks to watch: MAS, Boustead, Cypark, SMR, VS Industry

KUALA LUMPUR (Jan 1): The local stock market could see some profit taking in the first week of the trading year day after the recent run-up and last-minute window dressing activities. The rally was underpinned by local funds and pushed the FBM KLCI into positive territory for 2011.

The 30-stock index rallied more than 45 points over a seven-day trading period to end 2011 at 1,530.7. Total market capitalisation increased by RM11.38 billion over the same period to end the trading year at RM1,284.55 billion.

Among the stocks which could see trading interest following corporate developments include MALAYSIAN AIRLINE SYSTEM BHD [] (MAS), Boustead Holding Bhd, environmental TECHNOLOGY [] and engineering specialist CYPARK RESOURCES BHD [], SMR TECHNOLOGIES BHD [], VS Industry Bhd and SILVER BIRD GROUP BHD [].

Last Friday, MAS unveiled its new management structure which included several new business units, the entry of two senior aviation experts and the departure of several top officials.

Focus would be on MAS' long-haul business, with its group chief executive officer Ahmad Jauhari Yahya taking on the role as CEO of long-haul. His deputy, Mohammed Rashdan, who is CEO of short-haul, would head the short-haul, group finance, aircraft finance & management, and in the interim helm commercial.

BOUSTEAD HOLDINGS BHD []’s 51% owned MHS Aviation Bhd is acquiring 16 aircraft for RM586.20 million from DRIR Equities Sdn Bhd. DRIR owns the other 49% of MHS.

Cypark’s earnings fell 21.5% to RM4.11 million in the fourth quarter ended Oct 31, 2011 from RM5.24 million a year ago due to lower profit margins than the previous quarter. Gross profit margin was 25%, a decline from the 36% a year ago when it benefited from design income fee and good material rate negotiated in the quarter.

SMR’s unit SMR HR Group Sdn Bhd has secured a RM14 million contract from the Human Resources Ministry. The one-year contract is to implement a trainining programme known as Accelerated Skills Enhancement Training Programme (ASET).

VS Industry Bhd’s earnings fell 10.9% to RM11.59 million in the firstquarter ended Oct 31, 2011 from RM13.01 million a year ago due to stiffer competition and losses from its China associate. Its revenue increased 14.1% to RM282.43 million from RM247.39 million while earnings per share were 6.39 sen compared with 7.27 sen.

Silver Bird called off its proposed placement exercise and a subscription commitment of up to RM100 million with GEM Global Yield Fund. It had to abort the proposals as Bursa Malaysia Securities Bhd rejected its waiver from complying with all the requirements to undertake back-to-back placements.

Malaysian Rating Corp Bhd (MARC) lowered its rating on MNRB Holdings Bhd’s (MNRB) RM200 million Islamic medium term notes (IMTNs) to A+IS from AA-IS after the reinsurer suffered two consecutive years of losses and thin cash flow coverage measures.

The ratings agency said while the outlook for the debt notes was stable, the downgrading reflected weakened holding company level financial metrics after losses for FY ended March 31, 2010 (FY2010) and FY2011.

JAKS Resources Bhd posted net losses of RM25.13 million in the fourth quarter ended Oct 31, 2011 from a net profit of RM1.19 million a year ago due to goodwill impairment adjustment of RM25.90 million.

Its revenue rose 9% to RM93.24 million from RM85.74 million mainly due to higher revenue recognition of works done for projects in the CONSTRUCTION [] division. Loss per share was 5.73 sen compared with earnings per share of 0.27 sen.

For the financial year ended Oct 31, 2011, it swung into net losses of RM22.89 million compared net profit of RM2.28 million in the previous financial year.



Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.