DRB-Hicom says has not decided to sell Lotus

KUALA LUMPUR (April 23): DRB-HICOM BHD [] said it has not decided to sell Lotus Group, and that the conglomerate was currently undertaking an operations audit on Lotus Group, as part of its governance exercise.

“Contrary to reports that Lotus Group would be put under administration, DRB-HICOM is still supporting Lotus Group, both financially and management wise,” the company said in a statement dated April 21 lodged on Bursa Malaysia Securities on Monday.

“DRB-HICOM has not decided to sell Lotus Group and do not know the source of the speculation about selling Lotus Group to a Chinese party i.e Youngman.

“As of today, DRB-HICOM has identified one of PROTON’s Senior Management personnel to take up a position in Lotus Group in an effort to strengthen its management,” said DRB-Hicom.



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CIMB Research maintains Outperform on DRB-Hicom, target price RM4.60

KUALA LUMPUR (April 19): CIMB Research has maintained its Outperform rating on DRB-HICOM BHD [] at RM2.61 with a target price of RM4.60 and said Deftech’s tie-up with Tata Motors to develop and market the latter’s military vehicles to the Malaysian government is a feather in DRB-Hicom’s cap.

In a note April 19, the research house said support should be forthcoming from the government as it beefs up the nation’s defence capabilities.

“This new development reaffirms DRB’s long-term goal of becoming a local champion for the defence industry.

“We are retaining our Outperform call and SOP-based target price. DRB remains our preferred pick for exposure to the auto sector,” it said.



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Dr M: Syed Zainal might not want to continue as Proton MD

KUALA LUMPUR (April 16): Former Prime Minister Tun Dr Mahathir Mohamad on Monday hinted that PROTON HOLDINGS BHD [] managing director Datuk Seri Syed Zainal Abidin Syed Mohamed Tahir might not want to continue leading the national car maker under the ownership of DRB-HICOM BHD [].

Mahathir, who is also Proton adviser, said in Syed Zainal's case, there was no question of sacking but merely a question of an agreement between the latter and DRB-Hicom as to how best to deal with the problem of redundancy.

"DRB-Hicom is quite entitled to change the MD because they now own Proton but at the moment Syed Zainal is still the managing director and he is getting paid for the position.

"But of course he might not want to continue. It's his choice," Mahathir told reporters after chairing a Roundtable High Level Strategy Session organised by the National Chamber of Commerce and Industry of Malaysia.

He was commenting on news report that Syed Zainal would be removed as managing director of the company after the launch of the Proton Preve sedan model tonight.

When asked on the potential successor, Mahathir said: "I think if Syed Zainal is not there, DRB-Hicom has to place someone there."

"Maybe, one of their own DRB-Hicom people who are experienced in the automotive industry (could fill the position)," he said.

Last week, The Edge Financial Daily reported that Syed Zainal had handed in his resignation, days before launching its latest model and weeks after DRB-Hicom took over the loss-making company.

However, later on the same day, Proton issued a statement refuting the news report by saying: "Syed Zainal is still holding the position of group managing director of Proton and his services are still required in the company".

It is believed that DRB-Hicom chief operating officer Datuk Lukman Ibrahim is poised to take over from Syed Zainal.

Syed Zainal, 50, who ventured into the automobile industry by becoming Perusahaan Otomobil Kedua Sdn Bhd (Perodua) senior general manager in 1999 and later the company's deputy managing director in 2005, was appointed Proton's managing director on Jan 1, 2006.

In January, state asset manager Khazanah Nasional Bhd announced the sale of its 42.74% stake in Proton to DRB-Hicom for RM1.291 billion.

The sale was concluded last month and DRB-Hicom appointed its managing director Datuk Seri Mohd Khamil Jamil as Proton executive chairman and executive director, replacing Datuk Seri Nadzim Salleh, who tendered his resignation days after the completion of the deal. — Bernama



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Syed Zainal still MD, says Proton

KUALA LUMPUR (April 10): PROTON HOLDINGS BHD [] has said Datuk Seri Syed Zainal Abidin Syed Mohamed Tahir is still holding the position of group managing director of the national carmaker, and that his services are still required in the company.

Responding to a report in the Edge Financial Daily on Tuesday citing sources that Syed Zainal had resigned from the company, Proton in a statement on Tuesday said it was not aware of the source of the speculation.

The Edge Financial Daily, citing close associates of Syed Zainal and industry executives, said the resignation was due to differences with the new owners of Proton, namely conglomerate DRB-HICOM BHD [] that took over the national carmaker.

"The post-acquisition exercise is still proceeding smoothly — and upon the completion of the same, Proton is expected to have a strong synergy of current and new management team members that will provide Proton with the necessary impetus to lead the company in its aspiration to become a globally-successful automotive player," said the national carmaker.



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EON Bhd completes acquisition of DRB-Hicom Leasing

KUALAL LUMPUR (APRIL 6): EDARAN OTOMOBIL NASIONAL BHD [] (EON Bhd) has completed the acquisition of the entire issued and paid-capital of DRB-HICOM Leasing Sdn Bhd comprising 500,000 shares of RM1 each for RM500,000 cash as part of the group’s internal reorganisation.

In a filing on Friday, DRB-Hicom said the internal reorganisation was part of the Group’s intention to streamline and realign the businesses to achieve greater operational efficiency.



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RHB Research maintains Neutral on automotive sector

KUALA LUMPUR (April 5): RHB Research has maintained its Neutral call on automotive sector and said the auto industry made a shaky start to 2012 with total industry volume (TIV) in Jan declining 14.7% and 25.2% month-on-month and year-on-year respectively.

In a note Thursday, the research house said the softer sales were attributed to seasonal factors given the earlier than usual Lunar New Year holidays, the more stringent financing guidelines implemented by Bank Negara Malaysia (BNM) and the lingering effects of component supply disruption arising from the floods in Thailand.

“While the lower-end segment is likely to be the most exposed to the tighter financing environment, we expect the market (borrowers and lenders) to gradually adapt,” it said.

RHB Research said the key event in 2Q12 will be the announcement of the third iteration of the National Automotive Policy (NAP) that could potentially benefit domestic auto parts manufacturers.

“However both Thailand and Indonesia enjoy a strong head start as regional production hubs for numerous global OEMs.

“Still Neutral on the sector. DRB-HICOM and MBM are the top picks,” it said.



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Mustapa: Proton, Perodua should continue collaboration

KUALA LUMPUR (March 28): PROTON HOLDINGS BHD [] and Perusahaan Otomobil Kedua Sdn Bhd (Perodua) should continue to collaborate in areas they had previously agreed on, said Minister of International Trade and Industry (MITI), Datuk Seri Mustapa Mohamed .

This, he added, is despite the recent developments in the pioneer national car maker.

He said the collaboration talks, had benefited both carmakers and the automotive industry, as a whole.

"As this is the case, I do not see why the new owners of Proton, DRB-HICOM BHD [], should not continue with what had been agreed to by the old management.

"The previous Proton management and Perodua had agreed to collaborate in certain areas such as vendor distribution and marketing, as the merger proposal was extreme," he added.

Mustapa said MITI would continue to engage with both national car companies.

He also said that he was given a briefing by DRB-Hicom Bhd last week.

Perodua Managing Director Datuk Aminar Rashid Salleh said recently that the compact car maker is open to collaboration talks with DRB-Hicom.

However, he reiterated that Perodua, as the country's largest car maker, is still against any kind of merger between the two entities.

On Jan 16, DRB-Hicom entered into a sale and purchase agreement with Khazanah Nasional Bhd, to acquire 42.74 per cent of the issued and paid up share capital of Proton for RM1.291 billion. - Bernama



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DRB-Hicom group MD Mohd Khamil appointed Proton chairman

KUALA LUMPUR (March 19): DRB-HICOM BHD [] group managing director Datuk Seri Mohd Khamil Jamil has been appointed chairman of PROTON HOLDINGS BHD [] with effect from Monday.

Proton said in a statement that Mohd Khamil was also appointed executive director upon completion of the acquisition of a 42.7% stake in Proton by DRB-Hicom on March 16.

He takes over from Datuk Seri Mohd Nadzmi Mohd Salleh, who resigned as Proton chairman and director of Proton last Friday.

Mohd Nadzmi’s resignation followed the approval by shareholders of DRB-Hicom Bhd on March 14 for the acquisition of the remaining equity interest in Poton after DRB-Hicom had increased its stake in Proton to about 50.01%.

He was a director nominated by Khazanah Nasional Bhd to the national carmaker’s board.



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Mohd Nadzmi resigns as chairman, director of Proton

KUALA LUMPUR (March 16): Datuk Seri Mohd nadzmi Mohd Salleh has resigned as chairman and director of PROTON HOLDINGS BHD [], the national carmaker told Bursa Malaysia Securities Bhd on Friday.

Ohd Nadzmi’z resignation followed the approval by shareholders of DRB-HICOM BHD [] on March 14 for the acquisition of the remaining equity interest in Poton after DRB-Hicom had increased its stake in Proton to about 50.01%.

He was a director nominated by Khazanah Nasional Berhad to the national carmake’s board

DRB-Hicom had on Jan 16 entered into a conditional share sale and purchase agreement (SSPA) with Khazanah Nasional Bhd to acquire 234.734 million ordinary shares of RM1.00 each in Proton representing approximately 42.74% of the issued and paid up share capital of Proton, for a total cash consideration of RM1. 29 billion or equivalent to RM5.50 for each ordinary share of RM1.00 each.

It subsequently acquired another 7.27% in Proton, taking its stake to 50.01%.

Maybank Investment Bank Bhd had on March 14, on behalf of DRB-HICOM, served a notice of unconditional take-over offer to the Board of Directors of PROTON informing of its intention to undertake an unconditional take-over offer to acquire all the remaining ordinary shares of RM1.00 each in PROTON ("PROTON Shares") not already owned by DRB-HICOM after the Acquisition for a cash consideration of RM5.50 for each PROTON Share.

“We wish to highlight that the resignation of Dato' Sri Mohd Nadzmi Bin Mohd Salleh as the Chairman of the Board of PROTON and all other appointments by virtue of Dato' Sri Mohd Nadzmi's position as Director of PROTON, is part of the terms of the SSPA,” said Proton.



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Proton board not seeking other parties for takeover offer

KUALA LUMPUR (March 15): PROTON HOLDINGS BHD []’s board of directors has picked Affin Investment Bank Bhd as an independent adviser for the non-interested directors and shareholders in relation to DRB-HICOM BHD []’s takeover offer.

“The board of directors of Proton wishes to confirm that the board is not seeking any other person to make a take-over offer of its voting shares or voting rights,” it said in a statement to Bursa Malaysia.

Proton also advised the holders of the offer shares not to take any action until they have received the independent advice circular from the independent adviser.

On Wednesday, Proton received a notice of unconditional take-over offer from Maybank Investment Bank Berhad, on behalf of DRB-Hicom which had extended a mandatory take-over offer to acquire all the remaining 274.55 million Proton shares or 49.99% at RM5.50 cash per share.



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Stocks to watch: Top Glove, Meda Inc, SunREIT, DRB-Hicom

KUALA LUMPUR (March 15): The sell down across China equities could dictate sentiment on the Malaysian bourse on Thursday following updates that the world’s second largest economy will maintain efforts to curb real estate speculation.

China’s premier Wen Jiabao said on Wednesday that measures to curb property speculation must be maintained to prevent a real estate bubble which will be detrimental to the country’s economy.

Wen’s comments had reversed earlier gains across China stock markets, resulting in major indices finishing in the red.

Hong Kong’s Hang Seng closed down 0.15% to 21,307.8 points, while the Shanghai Composite declined 2.63% to 2391.23. The Shenzen Composite fell 4.09% to close at 969.12.

At Bursa Malaysia, the FBM KLCI rose 11.69 points or 0.7% to close at 1575.71.

Apart from macro factors, analysts, have in fact, warned of bearish technical dynamics in local equities, prompting the anticipation of a sell down in local stocks.

“Given the bearish short-term technical momentum, stocks are likely to drift lower on limited trading participation, as most investors would look for cheaper levels before they are prepared to nibble,” TA Securities Holdings Bhd.

Stocks to watch on Thursday include Top Glove Corp Bhd, Meda Inc Bhd, Sunway Real Estate Investment (SunREIT), DRB-HICOM BHD [], TRC SYNERGY BHD [], TELEKOM MALAYSIA BHD [] (TM) and Axiata Group Bhd.

Top Glove is expected to announce its financial results for the second quarter ended Feb 29, 2012 (2QFY12) on Thursday.

According to analyst reports, Top Glove has guided that its 2QFY12 results will be weaker than the preceding quarter’s numbers. Top Glove shares rose five sen to close at RM4.80 on Wednesday.

Meda Inc Bhd plans to undertake an integrated township in Sungai Siput, Perak with the proposed purchase of 256.04 acres of land from RM13 million. The company said its unit Nandex Land Sdn Bhd has signed a sale and purchase agreement with Majuperak Energy Resources Sdn. Bhd to purchase the leasehold land.

Sunway REIT Management Sdn Bhd has earmarked RM200 million as capital expenditure to transform Sunway Putra Place.

Sunway REIT Management, which is the manager for Sunway Real Estate Investment (SunREIT) said the preliminary capital expenditure (capex) for the refurbishment of the mall is estimated at RM200 million.

“The refurbishment exercise is expected to take about 15-18 months with a projected return on investment (ROI) of 12.5% to 15.0%,” it said.

DRB-Hicom has obtained shareholders consent to acquire a controlling 42.74% stake in national car manufacturer Proton HoldingsBhd. DRB-Hicom fell two sen to RM2.64

CONSTRUCTION [] firm TRC Synergy has secured a RM36 million job to undertake alteration works at the Dayabumi Complex. TRC shares closed unchanged at 75 sen.

ECM Libra Research has upgraded TM’s fair value by 29% from RM3.70 to RM4.78 but maintained its hold recommendation for the stock.

ECM Libra has also revised upwards its earnings forecast for TM by between 1% and 24% for the FY12 to FY14 period.

TM plans to roll out the second phase of its high speed broad band (HSBB) services in smaller industrial areas and state capitals where it is economically viable. TM shares rose seven sen to RM5.13.

Axiata Group’s Indonesian unit PT XL Axiata Tbk is expected to register a 10% growth in its subscriber base to 51 million this year from 46.4 million in 2011. Axiata rose six sen to RM5.12.



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DRB-Hicom extends mandatory take-over offer for remaining Proton shares

KUALA LUMPUR (March 14): DRB-Hicom Holdings Bhd’s stake in PROTON HOLDINGS BHD [] has increased to about 50.01% and it is extending a mandatory take-over offer for all the remaining shares in the carmaker which it does not own.

DRB-Hicom said the acquisition of the 42.7% stake in Proton had become unconditional on Wednesday after shareholders approved the purchase of the stake from Khazanah Nasional Bhd.

It said the offer for all the remaining Proton shares would remain at RM5.50 per share.

It had also served the notice of the offer on the board of directors of Proton.



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Flash: DRB-Hicom mulls selling Lotus if does not meet performance target

KUALA LUMPUR (March 14): DRB-HICOM BHD [] mulls selling Lotus Group International if it does not meet the performance objectives, wire reports said.

The reports said other options included a potential change in the management of Lotus, which is owned by Proton.

DRB-Hicom had on Wednesday received its shareholders’ approval to buy the 42.7% stake in PROTON HOLDINGS BHD [] for RM1.29 billion.

The purchase of Proton is expected to be completed in seven days.



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VW, DRB-Hicom targets 40% local parts by 18 months

PEKAN (March 11): Volkswagen AG and DRB-Hicom are targeting at localising 40 per cent of the automotive components in the next 12 to 18 months, said Dr Christof Spathelf, Senior Vice-President, Group Manufacturing Overseas of Volkswagen AG.

"We are currently preparing the component TECHNOLOGY [] programme to achieve the 40 per cent in the next 12 to 18 months. This will be in phases, 0 to 15 per cent and to 40 per cent finally.

"The vision and target is to achieve 40 per cent. At present, we are bringing the components from Germany to ensure the quality," he said at the unveiling of the completely knocked down Volkswagen Passat 1.8 TSI by Prime Minister Datuk Seri Najib Tun Razak here on Sunday.

DRB-Hicom Group Managing Director Datuk Seri Mohd Khamil Jamil said the event marked a significant milestone that would further augment DRB-Hicom’s commitment to its completely knocked down (CKD) operations for the production of Volkswagen vehicles for the local market and subsequently, the Asean market.

In December 2010, both DRB-Hicom and Volkswagen signed a collaboration agreement to form a partnership to locally assemble Volkswagen vehicles in DRB-Hicom’s automotive manufacturing facility in Pekan.

The Passat 1.8TSI is the first of a few Volkswagen vehicles to be assembled at the DRB-Hicom Automotive Complex in Pekan.

DRB-Hicom's Chief Operating Officer Datuk Lukman Ibrahim said that in achieving the 40 per cent, DRB-Hicom and Volkswagen have a localisation programme which ensures that vendors are within that particular league to be vendors to Volkswagen.

"There will be some training and testing that Volkswagen will have to impose on local vendors to ensure that the programme will cover as much as possible without compromising on the quality of the cars at the end of the day,” he said.

Lukman said DRB-Hicom and Volkswagen have assessed 27 vendors and 20 have met the requirements.

"This is part of the preparations that is taking place until we do the localisation,” he said. - Bernama



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AmResearch reaffirms Buy on DRB-Hicom, unch FV RM4

KUALA LUMPUR (March 5): AmResearch has reaffirmed its Buy rating on DRB-Hicom with its fair value unchanged at RM4 a share, pegging a 10% discount to its sum-of-parts value of RM4.40 a share.

The research house said on Monday it was reported in the press today that DRB-Hicom is evaluating plans by Mitsubishi, Volkswagen and General Motors (GM) to revive Proton.

It said that GM has proposed to gain control of half of Proton’s production lines at the latter’s plant in Tanjung Malim. This is not something new as it was already speculated in the market earlier that GM plans to buy a 50% stake in the plant.

“This proposal makes sense given the much-publicised under-utilised Tanjung Malim plant – running at barely 50% utilisation. A valuation of RM800 million for the plant stake has been bandied about but the key point here is that Proton would be able to achieve economies of scale,” it said.

AmResearch said it continues to like DRB-Hicom, given it is one of the cheapest conglomerates – trading at CY12 of 13 times versus its peers of 18 times.

“The group is on an exciting growth path, as it is the best proxy to VW’s ambition to be a key ASEAN auto player. DRB would also benefit in the transformation of Pos Malaysia – recently showing strong a set of results – and the next leg up would be to reap the synergies with its sister company, Bank Muamalat,” it said.



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Dr M: Transform Proton and reverse financial losses

KUALA LUMPUR (Mar 2): DRB-HICOM BHD [] has been urged by Tun Dr Mahathir Mohamad to transform PROTON HOLDINGS BHD [] and look at ways to reverse the current fiscal losses.

In making the call, the former premier and adviser to the national auto maker said the new management after the takeover, scheduled to be completed this month, has to bring the national automotive company to its old glory.

"Obviously, you (DRB-Hicom) need to beef up the organisation, examine all the losses to see how you can reimburse the losses.

"Generally, the new company will have to look at all aspects of management of Proton as it is weak in all angles," Mahathir told Bernama in an interview.

The national car maker's pre-tax loss widened to RM84.054 million for the third quarter ended Dec 31, 2011 compared to a pre-tax loss of RM51.535 million in the same period in 2010.

Revenue for the period also decreased to RM1.432 billion from RM1.833 billion previously.

Turnover for the first nine months also dipped to RM5.92 billion from RM6.36 billion on the back of a RM36.530 million loss before taxation against a pre-tax profit of RM134.3 million recorded in the corresponding period in the preceding financial year.

On the new Proton chief, Mahathir said it is up to DRB-Hicom whether to name a new successor or to retain the old management.

Asked whether Proton can regain its glory with the old management under a new parent, Mahathir said: "Obviously, there might be some new inputs from DRB-Hicom. For sure it is not just going to buy Proton and leave it as it is."

He added the profitability aspect was lacking from the current management under the leadership of chairman Datuk Seri Mohd Nadzmi Mohd Salleh and group managing director Datuk Seri Syed Zainal Abidin Syed Mohamed.

"Well, they (Proton) are not making a profit. Business must make profit. So we must find out why they are not making profit," Mahathir said.

In January 2012, DRB-Hicom struck a deal to buy Khazanah Nasional Bhd's 42.7 per cent stake in Proton for RM1.29 billion or RM5.50 per share.

DRB-Hicom is expected to officially take Proton private later this month, after the completion of certain take-over codes and regulations. — Bernama



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Market advances, Sime, PetChem up

KUALA LUMPUR (March 2): Blue chips chalked up gains in mid-morning trade on Friday, with fund buying of heavyweights Sime Darby and Petronas Chemicals underpinning the market sentiment.

At 11am, the FBM KLCI was up 10.63 points to 1,584.08. Turnover was 570.43 million shares valued at RM489 million. There were 351 gainers, 204 losers and 294 stocks unchanged.

Petronas Chemicals climbed 18 sen to RM6.93 and Sime Darby 15 sen to RM10.08 while Genting advanced 10 sen to RM10.56.

Panasonic Malaysia was the top gainer, adding 50 sen to RM22.50 while BAT added 38 sen to RM53.48 and DRB-Hicom 15 sen to RM2.76.

Perwaja-WA jumped 27.5 sen to 28 sen with 15.26 million units done when the warrants were listed on Friday.

Niam Indah Corp was the most active with 30.74 million shares done, slipping 0.5 sen to 52.5 sen.

Silver Bird, which saw its share price halved on Thursday after the company launched a probe into alleged irregularities, managed to gain 1.5 sen to 22 sen.

China Stationery Ltd extended its decline as investors took profit, down four sen to RM1.17.



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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.



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Buy DRB-Hicom shares: HwangDBS

DRB-Hicom Bhd fell one sen or 0.389 percent to RM2.56, as at 12.30 pm, after the conglomerate announced net profits fell 28 per cent to RM80 million in the third quarter ended Dec 31, 2011.

In a statement today, HwangDBS Vickers Research said the result was below forecast mainly due to lower automotive earnings from Honda as a result of the Thai floods and lower services earning as Alam Flora lost the Selangor concession.

However, it said these were merely temporary hiccups due to the Honda plant in Thailand which would resume operations end-March.

"Alam Flora is also slated to penetrate two new states and would charge higher tariff now after migrating to a concession structure," HwangDBS added.

It cut DRB-Hicom's financial year 2012-2014 forecast earnings by between three and 11 per cent after accounting for weaker Honda and Alam Flora earnings.

HwangDBS maintained its buy recommendation on DRB-Hicom with a target priceof RM3.45. -- Bernama


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KL shares close marginally higher

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 rose 0.27 point, or less than 0.1 per cent, to 1,559.04.

DRB-Hicom Bhd, an automotive, construction and property group, dropped 2 per cent to RM2.52, its lowest close since Jan. 26. Third-quarter net income slipped 28 per cent from a year earlier to RM79.6 million, the company said in a stock-exchange filing.

Dutch Lady Milk Industries Bhd, a dairy-products maker, jumped 6.6 per cent to RM27.50, a record close. The company declared a dividend of 50 sen per share and a special dividend of 80 sen after fourth-quarter profit more than doubled to RM28.4 million from RM10.8 million a year earlier, according to an exchange filing.

KLCC Property Holdings Bhd, the owner of Kuala Lumpur’s Petronas Twin Towers, gained 3.7 per cent to RM3.40, its highest close since July 22. Its third-quarter profit jumped to RM518.7 million from RM67.8 million a year earlier, the company said in a statement.

Latexx Partners Bhd, a rubber-glove maker, slid 7.7 per cent to RM1.55, its largest loss since July 25. Its fourth-quarter profit slumped to RM926,000 from RM5.6 million a year earlier, according to an exchange filing.

Oriental Holdings Bhd, a vehicle assembler, advanced 2.8 per cent to RM6.24, its highest close since Feb. 23. The company may be bought out by its single-largest shareholder, the Star newspaper reported, citing a person it didn’t name. Robert Wong and Lim Su Tong, managing directors at Oriental, weren’t immediately available for comments when contacted at their office.

Silk Holdings Bhd gained 2.5 per cent to 40.5 sen, its highest close since Feb. 22. PLUS Expressways Bhd is interested in buying the highway toll concessions of Silk and Lingkaran Trans Kota Holdings Bhd, the Edge newspaper reported, citing people it didn’t name. Lingkaran added 0.8 per cent to RM4.03, its highest close since Dec. 6, 2007.

Silk Executive Chairman Mohammed Azlan Hashim didn’t immediately reply to an e-mail by Bloomberg News seeking comments. Lingkaran Executive Director Yusoff Daud wasn’t in the office when phoned. -- Bloomberg



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