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.



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KLCI falls the most in 2012

KUALA LUMPUR (March 7): Blue chips closed lower on Wednesday, with the FBM KLCI among the biggest losers among the key regional markets as it fell the most so far this year on uncertainties whether Greece could secure enough support for its debt revamp.

At the close, the KLCI was down 15.08 points to 1,574.83, which could derail the recent rally which saw the 30-stock index poised to hit the all-time high of 1,597 in July last year.

Turnover was 1.74 billion shares valued at RM2.03 billion. However, the broader market did show some improvement with losers beating gainers 476 to 283 while 314 stocks were unchanged.

Reuters reported a clutch of Greek pension funds and some foreign investors are holding back on a bond swap deal which would enable Greece to meet a debt repayment on March 20, sparking concerns about a chaotic default if participation is low. Greek private creditors have until late Thursday to say whether they will take part.

Key regional markets fell, with the Nikkei 225 down 0.64% to 9,576.06, the Hang Seng Index 0.86% to 20,627.70, Shanghai Composite Index 0.65% to 2,394.79, Taiwan’s Taiex 0.44% to 7,903.08, the Kospi 0.91% tp 1,982.15 and Singapore’s Straits Times Index 0.58% to 2,915.03.

As for Bursa Malaysia, dealers said the pullback was expected as the KLCI was running counter to the key regional markets on Tuesday which fell up to 2%.

They said there was some trading activity in lower liners and penny stocks but this did not have much bearing on the market’s direction.

They also saw no reason for Naim Indah Corp to jump 13.5 sen to 65.5 sen in the absence of any positive fresh news.

Sime Darby fell the most, down 19 sen to RM9.80 and dragging the KLCI down 2.70 points. CIMB lost 11 sen to RM7.31, Genting 18 sen to RM10.74 and Maybank eight sen to RM8.71, pushing the 30-stock index down by a total of 4.93 points.

BAT was the top loser, down 56 sen to RM51.96, HLFG 40 sen to RNM12.10, Batu Kawan 24 sen to RM18.70, MISC 23 sen to RM5.38 and Oriental 21 sen to RM6.28 and Genting PLANTATION []s 20 sen to RM9.29.

Dijaya Corp fell 18 sen to RM1.49 and the warrants 8.5 sen to 54.5 sen.



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Regional markets in the red, KLCI dn nearly 13 pts

KUALA LUMPUR (March 7): All key regional market fell in the morning session on Wednesday, extending their losses from the previous day on renewed uncertainty over Greece's bailout and mounting worries about slowing global economies.

At 12.30pm, the FBM KLCI staged a correction, falling 12.98 points or 0.82% to 1,576.93. Turnover was 941.31 million shares valued at RM939.97 million. Losers beat gainers 515 to 158 while 262 counters were unchanged.

Japan’s Nikkei 225 lost 0.81% to 9,559.45, Hong Kong’s Hang Seng Index fell 0.75% to 20,649.46, Taiwan’s Taiex 0.37% to 7,908.40, South Korea’s Kospi 0.81% to 1,984.25 and Singapore’s Straits Times Index 0.58% to 2,914.97.

US light crude oil rose 43 cents to US$105.13 while crude palm oil futures fell RM9 to RM3,233 per tonne. The ringgit weakened to RM3.0288 against the US dollar.

BIMB Securities Research said it had expected the overnight fall on Wall Street to cause some negative knee-jerk reactions “but (we) see this as a very good opportunity to accumulate on weakness”.

Dealers said retail participation in the market had been low, with traders punting on lower liners and speculative counters. They added local funds were mostly the bigger players in the trading of blue chips and big cap stocks.

CIMB was the biggest drag on the KLCI. It fell 11 sen to RM7.31, pushing the index down by 1.94 points.

HLFG fell the most, down 40 sen to RM12.10, Genting PLANTATION []s 20 sen to RM9.29, MISC 20 sen to RM5.40, Genting 18 sen to RM10.74 and PPB 14 sen to RM16.72.

Dijaya fell 12 sen to RM1.55 and the warrants five sen to 58 sen in active trade, but they were off their intra-morning lows.

Naim Indah was the most active with 204.60 million shares done, up 10.5 sen to 62.5 sen, bucking the weaker market. Silver Bird added five sen to 23.5 sen.

Among the gainers were Ta Ann, up nine sen to RM5.76 and Esso seven sen to RM3.69. Advanced Packaging rose 15 sen to RM1.40 and Iretex 13 sen to RM1.10.



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Dijaya falls in active trade, KLCI dn nearly 13 pts

KUALA LUMPUR (March 7): Shares of Dijaya Corp Bhd fell on Wednesday when it resumed trading after the corporate announcement about the injection of RM1.1 billion of assets, with the decline in line with the weaker market.

At 11.14am, it was down 14 sen to RM1.53 with 16.19 million shares done. The warrants fell four sen to 59 sen with 12.12 million units done.

The FBM KLCI fell 12.92 points to 1,576.99. Turnover was 648.57 million shares valued at RM647.53 million. There were 125 gainers, 490 losers and 236 stocks unchanged.

Dijaya group CEO Tan Sri Danny Tan Chee Sing has proposed to inject his privately-held assets valued at about RM1.10 billion into the company which will transform it in one of the largest property firms in terms of market capitalisation.



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HDBSVR sees investors taking profit after Wall St fall

KUALA LUMPUR (March 7): HwangDBS Vickers Research said the overnight fall on Wall Street, where the key indices plunged between 1.4% and 1.6% at the closing bell, could provide the excuse of local investors to take profit on Wednesday.

Wall Street fell on fears that disagreements by some private bond holders might derail Greece’s debt-swap deal, which in turn could scuttle the bailout programme for the financially-ailing country.

“This will likely provide an excuse for investors to take profit on our local bourse today. Its benchmark FBM KLCI – after rebounding from an intra-day low of 1,580.51 yesterday – may test and break below the immediate support line of 1,580 ahead,” it said.

HDBSVR said that hoping to buck the weak market pattern on Wednesday are counters like: (a) Dijaya Corporation, which has proposed to acquire property assets privately owned by its major shareholder (for RM949 million) as well as to undertake a fund-raising exercise (comprising both rights issue and debt financing); (b) Tan Chong, after being appointed to be the contract assembler for Subaru passenger cars; and (c) SapuraCrest Petroleum, as it has been awarded an oil & gas contract worth RM162 million.



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Stocks to watch: SapuraCrest, Dijaya, HSL, Kimlun

KUALA LUMPUR (March 7): Stocks on Bursa Malaysia may slip on Wednesday in line with the cautious global and regional markets as worries about slower growth cast a pall of gloom over investors’ sentiment.

Key regional markets posted losses of between 0.63% and 2.16% as riskier assets bore the brunt of fears that the global growth outlook is darkening and that Greece may not be able to complete a major debt restructuring deal.

Reuters reported China's lowering of its economic growth target and data pointing to Europe possibly slipping back into recession have slowly eroded the optimism on global markets generated by the European Central Bank's huge injection of loans to banks since December.

On Bursa Malaysia, late buying helped the FBM KLCI extend its gains but whether it can be sustained on Wednesday remains to be seen due to external worries.

On Tuesday, the KLCI closed 0.69 of a point higher to 1,589.91. Turnover was 1.29 billion shares valued at RM1.73 billion. The broader market reflected the cautious sentiment, with 519 decliners to 257 advancers while 315 stocks were unchanged.

Among the stocks to watch on Wednesday are SAPURACREST PETROLEUM BHD [], DIJAYA CORPORATION BHD [], HOCK SENG LEE BHD [], Kimlun Corp Bhd and Malaysia Airports Holdings Bhd (MAHB).

SapuraCrest Petroleum secured a US$54 million contract from Petronas Carigali Sdn Bhd to provide a tender rig including a mobilisation fee.

The contract was for 12 months starting April 1 with an option to extend for another 12 months.

Dijaya resumes trading after a two-day suspension for a corporate exercise. Dijaya is acquiring 40 PROPERTIES [] owned by its single-largest shareholder Tan Sri Danny Tan for RM948.7 million.

The purchase will be funded with a cash portion of RM250 million and the balance via the issuance of redeemable convertible unsecured loan stock (RCULS), with a staggered conversion price range of RM1.30 to RM2.50 over a 10-year period.

Upon completion of the proposed amalgamation exercise, the land bank will increase to 870 acres and the gross development value will increase to RM37 billion.

Hock Seng Lee Bhd plans to undertake a mixed commercial and residential property project in Bandar Samariang, Kuching with an estimated gross development value of RM700 million.

Hock Seng Lee said the project would be on 275.5 acres of land which it was acquiring from Projek Bandar Samariang Sdn Bhd for RM25.54 million.

RHB Research Institute said it was less enthusiastic on CONSTRUCTION [] stocks as it believed their share price performance is likely to be muted over the next six to 12 months as the market begins to price in a higher risk premium for construction stocks ahead of the nation’s general election that will have to be held by March 2013.

However, the research house said Hock Seng Lee would be buoyed by: (1) Projects under Sarawak Corridor of Renewable Energy (SCORE); (2) Sustained high margins given limited competition from only a small pool of Sarawak-based Unit Pendaftaran Kontraktor Negeri Sarawak (UPK) registered contractors for most public jobs in Sarawak; (3) An outstanding construction orderbook of RM1.1 billion; and (4) An added downside protection to its share price by virtue of a strong balance sheet with a net cash of RM183.7 million or 31.5sen a share as at Dec 31, 2011.

“Indicative fair value is RM1.90 based on 12 times FY12/12 EPS, in line with our one-year forward target PER for the construction sector of 10-14 times,” RHB Research.

Kimlun’s estimated outstanding book order has increased to about RM1.50 billion after it secured a RM68.29 million housing project in Johor Baru.

Its unit Kimlun Sdn Bhd had accepted a letter of award from UNITED MALAYAN LAND BHD []’s subsidiary Dynasty View Sdn Bhd to construct apartments and ancillary buildings in Johor Baru.

Meanwhile, MAHB’s franked dividend of up to 14.14 sen per ordinary share less income tax of 25% amounting to RM116.64 million will go ex on April 9 and the entitlement date is April 12.



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Dijaya to acquire Danny Tan's properties for RM948m

KUALA LUMPUR (March 6): Real estate developer Dijaya Corp Bhd plans to acquire PROPERTIES [] owned by its single-largest shareholder Tan Sri Danny Tan for RM948.7 million.

The purchase will be funded with a cash portion of RM250 million and irredeemable convertible unsecured loan stocks, Dijaya said in a statement on Tuesday.

Dijaya also proposed to a rights issue to raise about RM250 million and debt funding of RM500 million in commercial papers and medium term notes.



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Ivory Properties to launch projects with RM1.4 bn GDV in Penang

KUALA LUMPUR (March 5): An upbeat Ivory PROPERTIES [] Group Bhd plans to roll out residential and commercial projects on Penang island with a total gross development value of RM1.4 billion this year.

Its chairman and group chief executive officer Datuk Low Eng Hock said they were targeting some RM800 million of sales in 2012, including on-going projects.

The projects to be launched are The Latitude in Mount Erskine, Penang Times Square phases three and four, City Mall and City Residence in Tanjung Tokong.

“Last year, we booked RM121.8 million of sales for completed and on-going project as well as unbilled sales of RM227 million. We are expecting a rise in the amount this year since we have more projects to offer this time, not forgetting the much anticipated Penang World City development in Bayan Mutiara,” he said in a press statement after the EGM on Monday.

At the EGM, Ivory Properties shareholders approved the company's plan to purchase and develop a 41.02ha site in Bayan Mutiara from Penang Development Corporation and Chief Minister of Penang (Incorporation).

They also approved the joint venture with DIJAYA CORPORATION BHD [] to develop the land. Undertaking the project would be the JV company -- Tropicana Ivory Sdn Bhd which is 55% owned by Dijaya and 45% by Ivory Properties.

The plan is to undertake a mixed-use residential and commercial property project named Penang World City with estimated GDV of RM10 billion.



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Dijaya’s corporate exercise to involve very substantial transaction

KUALA LUMPUR (March 2): DIJAYA CORPORATION BHD [] plans to under a corporate exercise which would involve a very substantial transaction.

The property developer said on Friday it had requested for the suspension in the trading of the securities for next Monday and Tuesday. Details of the corporate exercise would be released on Tuesday.

Trading in the securities was suspended from 4.35pm on Friday.

Dijaya’s share price rose to an intra-day high of RM1.72. It was up four sen to RM1.67 before trading was suspended.

Market talk is that Dijaya's major shareholder Danny Tan Chee Sing could be injecting his personal assets into the company which could increase the market capitalisation from RM766 million to about RM1 billion.



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Sime, PetChem underpin KLCI amid weaker market

KUALA LUMPUR (March 1): Fund buying of Sime Darby and Petronas Chemicals provided the support for the FBM KLCI on Thursday amid a cautious market which has seen trading volume declining in recent weeks.

At the close, the KLCI was up 3.8 points or 0.24% to 1,573.45. Turnover was 1.62 billion shares valued at RM2.025 billion. However, declining stocks beat advancers 506 to 309 while 302 stocks were unchanged.

Among the key regional markets, South Korea’s Kospi was the top performer, up 1.33% to 2,030.25. Japan’s Nikkei 225 fell 1.27% to 9,707.37, Hong Kong’s Hang Seng Index lost 1.35% to 21,387.90 while Singapore’s Straits Times Index lost 0.51% to 2,978.84.

Reuters reported European shares and the euro reversed early losses on Thursday as the impact of the latest massive cash injection by the European Central Bank lifted sentiment, overwhelming fears that further U.S. monetary easing could be on hold.

Data showing new factory orders for Asia's manufacturing powerhouses perked up a bit in February, easing some concerns about the global economic slowdown, it said.

US light crude oil rose 25 cents to US$107.32 while Brent Brent crude futures prices rose 63 cents to US$123.29 a barrel.

Crude palm oil third-month futures rose RM23 to RM3,268 per tonne, spurred by positive factory data from second-largest importer China but gains were capped as export trends showed weaker demand.

At Bursa Malaysia, dealers said market sentiment was rather lacklustre with the larger funds picking up index-linked stocks while at the bottom of the spectrum, there was some unwinding of penny and lower liner stocks by traders.

Among the index-linked stocks, Sime Darby’s 24 sen gain to RM9.93 pushed the KLCI up 3.41 points while PetChem;s five sen gain to RM6.75, nudged the index up by 0.5 points,.

BAT was the top gainer, up 90 sen to RM53.10 as investors opted for dividend stocks. Panasonic Malaysia added 60 sen to RM22, Guinness Anchot 28 sen to RM13.40 and Nestle 20 sen to RM56.

Dijaya Corp jumoed 21 sen to RM1.63 while HLFG and KLK gained 14 sen each to RM12.20 and RM23.56.

Naim Indah Corp, which was in the black in the latest quarter, rose 4.5 sen to 53 sen and it was the most active with 116.22 million shares done.

There was some unwinding of positions in China Stationery, which fell 17 sen to RM1.21 with 72.72 million shares done. However, it has fared well since its listing on Feb 24 at an offer price of 95 sen.

Silver Bird lost nearly half of its value, plunging 20 sen to 20.5 sen with 26.44 million shares done. Silver Bird Group suspended its group managing director, Datuk Tan Han Kook and two other key executives effective Feb 24 as it undertakes an internal inquiry into allegations of irregularities in the company’s accounts which may amount to approximately RM111.5 million.

Dutch Lady was the top loser, down 26 sen to RM29.72 after the strong run-up. GENTING BHD []’s 14 sen decline to RM10.46, dragged the KLCI down 1.22 points.

Other losers were Fima Corp, down 15 sen to RM6.21 and RHB Cap 15 sen to RM7.80.



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KLCI advances but broader market lacklustre

KUALA LUMPUR (March 1): Blue chips advanced in the morning session on Thursday, underpinned by gains in BAT and Sime Darby but the overall market was lacklustre as trading volume shrunk.

At 12.30pm, the FBM KLCI was up 4.73 points to 1,574.38. Turnover was 853.20 million shares done valued at RM924.78 million, reflecting the decline in retail participation. There were 269 gainers, 411 losers and 315 stocks unchanged.

Consumer-related stocks were again the top gainers. BAT rose 86 sen to RM53.06, Nestle 30 sen to RM56.10 and Guinness Anchor 28 sen to RM13.40.

Sime Darby added 20 sen to RM9.89 after posting a strong set of results in the second quarter.

Among the smaller cap stocks, Dijaya Corp rose 21 sen to RM1.63 and the warrants 14.5 sen to 64 sen.

China Stationery Ltd fell 18 sen to RM1.20 with 52.15 million shares done. This was the biggest decline since its listing last Thursday. Its offer price was 95 sen.

Silver Bird was in focus, falling 20 sen to 20.5 sen in active trade when it resumed trading.

Among the decliners were Carlsberg, down 26 sen to RM10.14, Far East 19 sen to RM7.11, NSOP 14 sen to RM5.94,BLD PLANTATION []s nine sen to RM9.14 and Kulim nine sen also to RM4.44.



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Market cautious, Sime provides lift to KLCI

KUALA LUMPUR (March 1): The broader market was cautious in late morning trade on Thursday following higher than expected losses from MAS and Proton and mixed regional markets.

However, heavyweight Sime Darby provided the lift to the FBM KLCI after its stronger set of second quarter results.

At 10.43am, the KLCI was up 4.87 points to 1,574.52. Turnover was 502.99 million shares valued at RM481.83 million. There were 226 gainers, 320 losers and 291 stocks unchanged.

Sime Darby rose 14 sen to RM9.83 with 10.80 million shares done. BAT gained 70 sen to RM52.90, GAB 26 sen to RM13.38, Petronas Dagangan 18 sen to RM18.34, Dijaya Corp 13 sen to RM1.55 and Petronas Gas 12 sen to Rm16.92.

Tecnic was the top loser, down 20 sen to RM3.81 while Silver Bird lost 17.5 sen to 23 sen and CSL 14 sen to RM1.24.

Among the PLANTATION []s, Far East lost 19 sen to RM7.11 in thin trade, NSOP 18 sen to RM5.90 and BLD Plantations 13 sen to RM9.37.



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Stocks to watch: IPPs, Mah Sing, Genting, UEM Land

KUALA LUMPUR (Feb 29): With the current corporate results drawing to an end on Wednesday, investors’ focus would be on the companies with the stronger set of financial results and their prospects for the year ahead as the external and domestic economies slow down.

The important decision would be to pick companies which would be able to ride through slower growth, especially PLANTATION []s and banks with overseas operations.

Among the stocks to watch on Wednesday after independent power producers (IPPs), MAH SING GROUP BHD [], GENTING BHD [] and UEM Land Bhd.

The Energy Commission has invited the first generation of independent power producers to submit their plans to extend the power purchase agreements (PPAs).

These IPPs, whose PPAs were scheduled to end in three to four years, were invited to extend the agreements on condition they would reduce the capacity payments.

Mah Sing Group Bhd posted net profit of RM41.03 million in the fourth quarter ended Dec 31, 2011, up 30.8% from RM31.35 million a year ago, boosted by the property segment.

Its revenue increased by 41% to RM422.12 million from RM299.28 million. Earnings per share were 4.93 sen compared with 3.77 sen. It announced dividend of 11 sen a share.

For FY11, its earnings rose 42.7% to RM168.55 million from RM118.07 million in FY10.

Genting Bhd reported net profit of RM772.91 million in the fourth quarter ended Dec 31, 2011, up 66% from RM465.43 million a year ago.

Its revenue increased by 23.9% to RM5.06 billion from RM4.08 billion. Its earnings per share were 20.94 sen compared with 12.57 sen while it proposed a dividend of 4.5 sen a share.

Group profit before tax was RM1.802 billion, compared with RM1.182 billion a year ago as it included a reversal of RM308.6 million in respect of previously recognised impairment loss relating to the UK casino licenses and a net fair value gain of RM64.4 million on derivative financial instruments.

UEM LAND HOLDINGS BHD [] posted a 3.84% increase in earnings to RM140.56 million for the fourth quarter ended Dec 31, 2011, from RM135.36 million, due to improved performance from the group's various development activities.

It said the board was confident of the group’s prospects in the coming financial year as the on-going projects had unbilled sales of RM1.85 billion as at Dec 31, 2011.

Shareholders of TSM GLOBAL BHD [], who own 28.07% of the paid-up share shares, have offered to acquire all the business, including assets and liabilities, for RM159.24 million or RM1.25 per share.

Property developer, Dijaya Corp Bhd's earnings rose 12.8% to RM39.02 million for the fourth quarter ended Dec 31, 2011, from RM34.59 million a year ago, due to better sales performance and recognition of progress billings from its project launches in 2011.

Revenue was up 53.2% to RM156.19 million from RM101.91 million. Earnings per share were 8.53 sen compared to 7.60 sen a year ago.

KFC Holdings Bhd (KFCH) saw its fourth quarter earnings decline 21.9% to RM38 million from RM48.67 million a year ago.

It said KFC India and KFCH International College continued to incur high initial start-up costs in the current quarter during the gestation period.

QSR BRANDS BHD [] reported net profit of RM38.69 million in the fourth quarter ended Dec 31, 2011, up 9.7% from the RM35.25 million a year ago due to better profits from Pizza Hut Malaysia.

Cafe chain operator Oldtown Bhd recorded RM11.66 million in profits for the fourth quarter ended Dec 31, 2011 as it benefited from an increase in exports of its beverage products and higher selling prices.

Steel contractor Eversendai Corporation Bhd recorded profits of RM36.42 million for the fourth quarter ended Dec 31, 2011, due to higher revenue from current on-going projects. Its revenue was RM313.29 million while earnings per share were 5.41 sen.

For the financial year ended Dec 31, 2011, revenue was RM1.03 billion, while profits were RM119.45 million.

Benalec Holdings Bhd, posted a 52.51% increase in earnings to RM28.84 million for the second quarter ended Dec 31, 2011, from RM18.91 million due to net gain on sale of land in the current quarter.

Its revenue was 40.54% lower to RM26.89 million from RM45.22 million mainly due to certain projects located in Melaka had already reached the completion stage.

RHB CAPITAL BHD [] posted an 8.09% fall in profits to RM348.39 million for the fourth quarter ended Dec 31, 2011, from RM380.15 million due to increased competition among banks.



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Dijaya records 12.8% rise in 4Q earnings to RM39m

KUALA LUMPUR: Property developer, Dijaya Corp Bhd's earnings rose 12.8% to RM39.02 million for the fourth quarter ended Dec 31, 2011, from RM34.59 million a year ago, due to better sales performance and recognition of progress billings from its project launches in 2011.

It said on Tuesday, Feb 28, that revenue was up 53.2% to RM156.19 million from RM101.91 million. Earnings per share were 8.53 sen compared to 7.60 sen a year ago.

Both revenue and profits were boosted by contributions from the Tropicana Grande and Casa Tropicana developments at Tropicana Golf & Country Resort, as well as the Grand Villa, Pool Villas and Link Villas at Tropicana Indah Resort Homes.

"The group now has its footprints in Klang Valley, Penang and Johor, which are the major property development areas. With all these projects in the pipeline, the group is poised for growth and expansion in the market share to achieve market capitalisation of above RM1 billion," said Dijaya chief executive officer Tan Sri Danny Tan.

For the financial year ended Dec 31, 2011, revenue increased by 27.8% to RM373.72 million from RM292.26 million in FY10. Net profits rose 50.4% to RM65.07 million from RM43.25 million.



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Dijaya moves on mixed projects

PETALING JAYA: Dijaya Corp Bhd plans to launch products in at least two of its new mixed development projects in the Klang Valley this year.

One of the mixed developments is Tropicana Gardens located in its 400-acre (161.8ha) Tropicana Indah development in Petaling Jaya, managing director Datuk Tong Kien Onn said.

Tropicana Gardens has a gross development value (GDV) of RM1.8 billion and will take up 14 acres of a total land area of 17 acres. Tong said the remaining three acres will be left for future development.

The product components of Tropicana Gardens will include serviced apartments, hotel, office and retail.

The developer is looking at having the first launch in the third quarter, Tong said on the sidelines of the group’s annual luncheon yesterday, where a total of RM225,000 was donated to 15 charities by the Dijaya Tropicana Foundation. Dijaya group CEO Tan Sri Danny Tan made the presentations.

Scheduled for launch in the second half of the year is a project in USJ 3, Subang Jaya called Tropicana Hills. Located close to the Federal Highway, it will be a mixed development with a GDV of RM3.5 billion on 88 acres.

From the Dijaya Tropicana Foundation board of trustees are Dickson Tan (4th from left), Diana Tan (5th from left), Puan Sri Ivy Tan (6th from left), Tan Sri Danny Tan (7th from left) and Datuk Tong Kien Onn (8th from left) with the representatives of 15 charities holding their mock cheques totalling RM225,000.

Tong said the project will include a school, hospital, hotel, condominiums and serviced apartments.

“At the moment, we are in the process of converting the land status from industrial to commercial,” he said.

“It is flat land and there is discussion with the authorities to build a ramp from the Federal Highway to Tropicana Hills for better accessibility.”

Meanwhile, Dijaya is launching exclusive zero-lot bungalows in the Tropicana Indah development dubbed Golf Villas by early March.

“There are only 12 units of 3-storey zero-lot bungalows. The Golf Villas are situated within Tropicana Indah project in Petaling Jaya,” Tong said.

The villas have a GDV of RM64 million. Prices start from RM4.8 million with average built-ups of over 7,000 sq ft.

In the past 1½ years, the group has been aggressively acquiring land. Pre-2010, the group only had 142 acres in its landbank but post-2010, Dijaya acquired 668 acres in Peninsular Malaysia for a current total of 810 acres. The total GDV of its landbank now amounts to about RM28 billion.

One recent purchase was 198 acres in Kajang, which Dijaya bought for RM228 million last September. It has a GDV of RM2 billion and Tong said the group is currently looking into rezoning the land from recreation to mixed-commercial and residential. The project is still in the planning stages.


This article appeared on the Property page, The Edge Financial Daily, February 10, 2012.



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Iskandar Malaysia starting to bear fruit

Iskandar Malaysia
During our recent visit to Iskandar Malaysia, we were pleasantly surprised by the strong 65% bookings for UEM Land Holdings Bhd’s Imperia@Puteri Harbour condos launched in November 2011 at a record RM725 per sq ft (comparable with suburban condominiums in Kuala Lumpur).

Impiana@East Ledang condos also saw brisk sales with two blocks almost fully sold within six months at RM480 psf (against RM300 psf for the adjacent Ujana apartments launched in 2009). Southern Industrial and Logistics Clusters (SiLC) industrial land values continued to appreciate with the latest transactions hitting RM35 psf against 2010’s RM25 psf.

For S P Setia Bhd, Johor remains a core market (29% of sales) with sales surging 57% in FY11.

Since its launch in December 2011, the Johor Premium Outlets (JPO) has been seeing strong crowds, especially during weekends (locals and Singaporeans). About 90% of Phase 1’s 70 stores are operational (Coach, Ferragamo, Burberry, Levis, Guess) while the rest are being fitted out (Polo Ralph Lauren, Tommy Hilfiger, Brooks Brothers).

Discounts range from 30% to 60% (a tad better than Singapore sales). Accessibility to JPO is good (10 minutes from Senai Airport via a dedicated interchange) with clear signs.

However, the food court is small and car park pay machines are limited. JPO’s size pales in comparison with similar outlets in the US, Japan and Hong Kong, but Phase 2 could see another 60 outlets (130 in total).

Future development may also include a 2,000-room hotel and water theme park. Genting Plantations Bhd will be the largest beneficiary given its 2,226ha in Kulai — every RM5 psf increase (from RM10 psf assumed) would raise its sum-of-parts value by 10%.

Iskandar is set to reach its tipping point in 2012/13 following the completion of key catalyst developments and infrastructure improvements.

The recent Malaysia-Singapore leaders’ retreat saw continued improvement in bilateral ties (including plans to build an underground link for a rapid transit system by 2018).

The entry of more developers (Temasek Holdings, Sunway and China’s Zhuoda Group in Medini, Bandar Raya Developments Bhd in Nusajaya, Dijaya Corp Bhd in Danga Bay) should help expedite Iskandar’s overall development progress.

We believe Singapore’s stubbornly high property prices and latest stamp duty hike could lead to spillover demand for Iskandar properties. — HwangDBS Vickers Research, Jan 16


This article appeared in The Edge Financial Daily, January 17, 2012.



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Dijaya targets foreign buyers for Tropez Residences

JOHOR BARU: Dijaya Corp Bhd is banking on the strategic location of its Tropez Residences in Tropicana Danga Bay, Iskandar Malaysia, Johor, to attract international buyers.

Tower A of the three-tower condominium was launched last Saturday. The project is part of the RM3.8 billion Tropicana Danga Bay development, a joint-venture project between

Dijaya Corp and Iskandar Waterfront Sdn Bhd. The integrated project sits on 37 acres (15ha) within Iskandar Malaysia.

“Due to the strategic location of Iskandar Malaysia at the crossroads of two straits, two oceans and two continents, Tropicana Danga Bay has great potential to become an international landmark. It is driving the development of a thriving modern metropolis in the southern part of Johor,” said Datuk Tong Kien Onn, Dijaya managing director.
“Our latest product, Tropez Residences, has garnered keen interest from local and foreign purchasers. Tropicana Danga Bay can capitalise on Malaysia’s synergies with Singapore by offering an optional address that is conveniently linked to vibrant Singapore,” he said.

The target market for the condos are young executives residing in Johor, small families, Malaysians working in Singapore, foreigners, especially Singaporeans, and investors, said Tong.

At press time, 200 of Tropez Residences’ 428 units in Tower A had been sold. The RM650 million bay front condominium stands 38 storeys tall. The units have built-ups of 689 to 1,668 sq ft with prices from RM400,000. There is a range of one-bedroom plus study to three -bedroom apartments.

Facilities include a swimming pool, gym, multi-purpose hall and tennis court. There will be two open air sky lounges in Towers A and B while the entire condo project will eventually be connected by a level six walkway to the entire Tropicana Danga Bay development.

Tropez Residences’ other towers will be launched next year. Tower B is 39 storeys with 424 units; Tower C is 29 storeys with 297 apartments.

Tropicana Danga Bay is set to be an integrated community linked via a network of well-shaded sky bridges and pathways and extensive green roofs.

It will also have a blend of lifestyle and commercial properties along with a hotel and a shopping centre.

Situated on the Straits of Johor, the project is accessible via a network of major highways, such as the North-South Expressway and access to Singapore is easy. It is close to the city centre and Senai International Airport as well as cargo hubs and seaports.

The developer of Tropicana Golf & Country Resort, Tropicana Indah Resort Homes and Tropicana City in the Klang Valley is also in a collaboration with Starwood Hotels & Resorts Worldwide Inc to develop a five-star W Kuala Lumpur Hotel and Residences in Kuala Lumpur city centre which is expected to commence by early 2012.

In Penang, the group has just entered into a joint venture agreement with Ivory Properties Group Bhd to build a mixed development project in Bayan Mutiara, Penang.



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Dijaya chalks up 43% revenue jump

KUALA LUMPUR: Property developer Dijaya Bhd saw its revenue for 3QFY11 ended Sept 30 grow by 43.3% y-o-y to RM89.2 million from RM62.2 million, driven by strong sales and recognition of billings from its project launches.

However, the company booked a net loss of RM12.8 million for the quarter compared to a net profit of RM5.6 million for the previous year. This was due to a net loss of RM22.26 million arising from the fair value adjustments of marketable securities.

“Excluding this adjustment, the group registered a profit before tax of RM13.86 million for this quarter compared to RM8.66 million in the corresponding quarter last year,” explained Dijaya.

On a 9MFY11 basis, net profit rose to RM26.05 million compared to RM8.67 million for the previous year’s corresponding period. Revenue for the nine months rose to RM217.52 million from RM190.34 million.

According to Dijaya, its results were driven by higher profit margin contributions from its new property launches such as Tropicana Grande condominiums and Casa Tropicana final Block E condominium among others.

Going forward, Dijaya is planning to roll out projects in both the Klang Valley and Johor.

The group also recently signed a joint venture agreement with Ivory Properties Group Bhd for a mixed development with a gross development value (GDV) of RM10 billion in Bayan Mutiara, Penang.

“With the latest joint venture in the northern region, the group now owns a sizeable landbank worth RM28 billion in GDV spread across the main cities in Peninsular Malaysia to be launched in the near future. With all these projects in the pipeline, the group is poised for growth,” stated Dijaya’s group CEO Tan Sri Danny Tan.


This article appeared in The Edge Financial Daily, November 25, 2011.



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Market to trend higher, but sentiment to remain cautious

KUALA LUMPUR: The FBM KLCI is expected to trend moderately higher today in line with the positive close on Wall Street last Friday. The statement by Prime Minister Datuk Seri Najib Razak that the general election would not be held this year put an end to weeks of speculation, which was described by analysts as providing some clarity to a nervy local market.

US stocks rose, ending higher for the week after the Italian Senate’s approval of economic reforms gave investors some relief from worries about the eurozone’s debt crisis.

The Dow Jones Industrial Average was up 2.19% to 12,153.68, the Standard & Poor’s 500 Index rose 1.95% to 1,263.85 and the Nasdaq Composite Index added 2.04% to 2,678.75.

Affin Investment Bank Bhd head of retail research Dr Mohd Nazri Khan said Najib’s statement is to be taken as positive for the market as it provides for more clarity and less volatility.

“Sometimes an election can heighten market fluctuation as was seen in the run-up to the Sarawak election in April this year,” he said.

He said the FBM KLCI is likely to trend moderately higher towards the 1,500 level this week on more European economic optimism, adding that he sees positive market breadth with important local sectoral indices such as financials, trading services, technology and small caps making a firmer comeback.

“As long as the FBM KLCI stays above the 1,460 level, the short-term uptrend remains intact, favouring more upside to follow,” he said.

Nazri said given the strength seen in warrants and small-cap stocks, the local market is to be less concerned over the European debt crisis but more inclined towards the bullish local year-end festive mood all the way towards Chinese New Year.

While the threat of an economic slowdown is real, recent speculative plays and good market volume confirm that local sentiment will be resilient during volatile times, he said.

Traders should therefore use temporary weakness to ride the potential year-end rally, he said.

“As for the moment, we are pegging 1,500 and 1,530 as the major resistance while 1,460 and 1,430 as the major support for the local benchmark.

“As for the downside risk, we believe any new talk of radical overhaul and breakup of the European Union may unsettle investors and create a fresh wave of volatility in global financial markets,” he said.

On the strategy this week, Nazri recommended that traders accumulate high-yield and defensive small-cap stocks in the telco and utilities sectors (such as Yi Lai, Signature, NCB Holdings and Century Logistics) which may rebound further after a deep correction in the previous months.

MIDF Research head Zulkifli Hamzah said the local equity market is currently in a period of uneasy equilibrium, but added that foreign investors appear to be keeping faith in the Malaysian market and have been gradually accumulating since early October.

“There were net buyers again last week. Yet, local investors are circumspect of the fact that remains a large overhang of foreign liquidity in the system that can decide to eject overnight,” he said.

Among the stocks that could be in focus today are Dijaya Corp Bhd, Ivory Properties Group Bhd, Kimlun Corp Bhd, KPJ Healthcare Bhd and oil and gas-related counters.

Dijaya and Ivory inked a joint-venture agreement to develop mixed residential and commercial properties in Penang with a gross development value of RM10 billion.

The two companies said the development will be completed over the next eight years and will comprise residential, shopping mall, hotel, office suites, office towers, retail spaces and an open mall with a boulevard.

Construction of the first phase is scheduled to begin next year, they said last Friday.

Kimlun secured a contract worth RM68 million to build serviced apartments in Iskandar Malaysia in Johor. It said last week that its wholly-owned subsidiary Kimlun Sdn Bhd had accepted the letter of award for the contract from Grand Action Sdn Bhd.

KPJ is buying four plots of land in Klang, Selangor for RM23.76 million cash as part of its plans to build a specialist hospital.

It said last Friday the four plots are situated within a mixed development undertaken by Sazean known as “Sazean Business Park”, and that Sazean will make an application to convert the category of the land it is buying from agricultural to building/commercial.

Petroliam Nasional Bhd and Shell Malaysia last week signed heads of agreement for new enhanced oil recovery projects offshore Sabah and Sarawak, a development which may boost the oil and gas support services-related counters.


This article appeared in The Edge Financial Daily, November 14, 2011.



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Dijaya, Ivory rise on RM10b Penang property venture

KUALA LUMPUR (Nov 14): DIJAYA CORPORATION BHD [] and Ivory PROPERTIES [] Group Bhd shares advanced on Monday, Nov 14 after the two companies signed a joint venture agreement to develop mixed residential and commercial properties in Penang with a gross development value of RM10 billion.

At 9.50am, Dijaya up seven sen to RM1.46 with 490,000 shares traded while Ivory gained 8 sen to RM1.08 with 4.32 million shares done.

In a joint statement Friday, Nov 11, the two companies said the development will be completed over the next eight years and would comprise of residential, shopping mall, hotel, office suites, office towers, retail spaces and an open mall with a boulevard.



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