Fajarbaru gains on RM299.84m sub-contract

KUALA LUMPUR (May 4): Fajarbaru Builder Group Bhd shares advanced on Friday after it secured a sub-contract worth RM299.84 million to build a power substation from MALAYSIAN RESOURCES CORP []oration Bhd .

At 9.25m, Fajarbaru gained half a sen to 95.5 sen with 31,0000 shares done.

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

RHB Research has upgraded Fajar baru to Outperform from Market Perform with a revised fair value of RM1.10 from RM1.04 previously.

“Assuming EBIT margin of 6-8%, the contract will fetch RM18-24m EBIT over the CONSTRUCTION [] period.

“FY06/13-14 net profit forecasts are raised by 11-15%, having reflected RM668 million new jobs in FY06/12 vis-à-vis RM368m previously,” the research house said on Friday.



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 Fajarbaru, Pharmaniaga, Tasco, Quill Capita, New Hoong Fatt, APFT, MAS, AirAsia

KUALA LUMPUR (May 3): The FBM KLCI could face a struggle to eke out some gains on Friday, as investor sentiment could take a hit by external factors that have plagued global equity markets over the week.

European stocks slipped into negative territory on Thursday after a weaker-than-expected U.S. service sector data cast doubts over the strength of the recovery in the world's biggest economy, according to Reuters.

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

Among the stocks that could be in focus on Bursa Malaysia on Friday are Fajarbaru, Pharmaniaga, Tasco, Quill Capita, New Hoong Fatt, APFT, MAS and AirAsia.

Fajarbaru Builder Group Bhd has secured a sub-contract worth RM299.84 million to build a power substation from MALAYSIAN RESOURCES CORP []oration Bhd .

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

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

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

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

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

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

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

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

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

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

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

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

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

Meanwhile, shares of MALAYSIAN AIRLINE SYSTEM BHD [] and AIRASIA BHD [] could extend their gains from Thursday after the airlines said they had entered into a Supplemental Agreement to vary the terms and scope of the original collaboration agreement inked last August.

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

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



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.

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

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

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

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

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



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: Malaysian equities may face pressure

KUALA LUMPUR: Hwang DBS Vickers Research said the profit-taking activities on Wall Street overnight may put the Malaysian bourse under pressures with the benchmark FBM KLCI likely to back off from its immediate resistance barrier of 1,580 ahead.

In its market outlook on Wednesday, HDBSVR said in terms of news flows, of probable interest is an insight into Bank Negara Malaysia’s projections on GDP growth rate and inflation, which will be revealed in the central bank’s 2011 annual report due for release this evening.

On the corporate front, there could be share price actions in the following counters: (a) KL Kepong, after disposing of its retailing business of personal care products for RM465 million; (b) Fajarbaru, which has received a letter of award for a CONSTRUCTION [] job worth RM73 million; and (c) TA Enterprise, as its latest financial results came in below par.

Berjaya Sports Toto is scheduled to announce its earnings report card later Wednesday.



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: Fajarbaru, KLK, CBIP, Focus

KUALA LUMPUR (March 21): Malaysian equities could be subject to profit taking on Wednesday against a lack of domestic catalysts to drive the market.

Analysts said the strength of the FBM KLCI may be curbed as institutional and retail investors lock in their profits ahead of the country’s impending general election, possibly in May or June this year.

On the global backdrop, the spotlight will be on updates from US and China, sentiments from which are crucial drivers for Asian stock markets, they said.

There is a “lack of strong catalysts” to spur the FBM KLCI higher, Hong Leong Investment Bank Research had said in a market outlook.

The FBM KLCI rose 4.02 points or 0.26% to close at 1,577.62 on Tuesday.

Stocks to watch on Wednesday include Fajarbaru Builder Group Bhd, KUALA LUMPUR KEPONG BHD [] (KLK), CB INDUSTRIAL PRODUCT HOLDING [] Bhd (CBIP) and FOCUS DYNAMICS TECHNOLOGIES [] Bhd.

Other companies which would see trading interest are MALAYAN BANKING BHD [] (Maybank), MMC Corp Bhd, GAMUDA BHD [] and CypARK RESOURCES BHD [].

Fajarbaru secured a RM72.92 million contract from Messrs Shaw Plaza Sdn. Bhd to tear down and rebuild the Shaw Parade complex in Kuala Lumpur.

Kuala Lumpur Kepong Bhd (KLK) is exiting its personal care products under the brand name “Crabtree & Evelyn” with the proposed disposal of CE Holdings Ltd for US$155 million (RM465 million).

“The proposed disposal is expected to bring in a gain on disposal of approximately 11.5 sen per share for the financial year ending Sept 30, 2012,” it said.

In a separate statement, KLK said it was expanding its oil palm PLANTATION [] area in Indonesia with the acquisition of PT. Global Primatama Mandiri (PT GM), which has the rights for 7,400 ha of land in, Kalimantan for plantations.

KLK said on Tuesday its subsidiary KL-Kepong Plantation Holdings Sdn Bhd (KLKPH) had entered into two agreements to acquire 90% of PT GM for RM3.60 million.

HwangDBS Vickers Research Sdn Bhd has raised its target price for CBIP, a manufacturer of palm oil mills, by 23% from RM2.43 to RM3 while maintaining its Buy call for the stock.

This takes into account the stock’s attractive valuations at a forward price to earnings ratio of seven times, HDBSVR said. CBIP was up one sen to RM2.45.

Focus Dynamics, in its response to the query, said it is not aware of any factors contributing to the unusual trading patterns of its shares except for a news report speculating on Datuk Raymond Chan Boon Siew’s proposed acquisition of a 25% stake in the energy-efficient electrical control products manufacturer.

Focus Dynamics said its directors, after deliberating on the news report, have informed that Chan is not a placee in the firm’s private placement exercise.

“The board, however, is not in a position to comment on the report about his plans to acquire equity shares of Focus from the open market,” Focus Dynamics said, adding that the company has not received any proposal from Chan to inject oil and gas projects into the firm.

Maybank president and CEO Datuk Seri Abdul Wahid Omar said the financial services provider plans to set up its branch office in Myanmar as soon as foreign banks are given the approval to do so. Shares of Maybank added one sen to close at RM8.73 on Tuesday.

The MMC Corp Bhd-Gamuda Bhd joint venture has clinched the underground package for the Sungai Buloh-Kajang MRT line with an RM8.2 billion bid. MMC shares climbed 15 sen to RM2.95 while Gamuda added 12 sen to RM3.74.

Cypark Resources targeted to generate turnover of about RM45 million from 2013 when the 33 MW solar capacity from its solar plants are completed.



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.

Fajarbaru gets RM72.92m construction job

KUALA LUMPUR (March 20): Fajarbaru Builder Group Bhd has secured a RM72.92 million contract from Messrs Shaw Plaza Sdn. Bhd to tear down and rebuild the Shaw Parade complex in Kuala Lumpur.

It said phase one involved the car park, shops and office from the ground floor to the fourth floor while the second phase was to build a management office and a 11-storey budget hotel with 288 rooms.

Fajarbaru said the CONSTRUCTION [] period for phase one was 18 months, starting April 2 and phase two was over nine months, starting Oct 2, 2013.



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.

RHB Research downgrades construction sector to Neutral from Overweight

KUALA LUMPUR (Dec 23): RHB Research Institute Sdn Bhd has downgraded its recommendation for the CONSTRUCTION [] sector to Neutral from Overweight.

In a note Friday, the research house said investors’ confidence and comfort level that the Klang Valley MRT project would start work soon was being chipped away by further delays in the roll-out of certain already long-overdue large-scale projects.

Even if the Klang Valley MRT project is to start work as scheduled, initial progress is likely to be painfully slow due to bureaucratic hurdles, it said.

There is generally a lack of credible new large-scale projects in the pipeline, it said.

“Gamuda and Fajarbaru are downgraded to Market Perform from Outperform.

“No changes in Outperform for TRC, HSL and Eversendai, Trading Buy for MRCB, Market Perform for WCT and Underperform for IJM,” said RHB Research.



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.

Fajarbaru edges up on getting RM61.99m sewage treatment plant job

KUALA LUMPUR (Dec 22): Fajarbaru Builder Group Bhd shares edged up on Thursday after it secured a RM61.99 million contract to build a sewage treatment plant on Klang, Selangor.

At 11am, Fajarbaru gained half a sen to 92.5 sen with 30,000 shares traded.

It said on Wednesday that its wholly-owned unit Fajarbaru Builder Sdn Bhd had received a letter of acceptance dated Dec 20, 2011 from the Ministry of Energy, Green TECHNOLOGY [] and Water for Package of the sewage treatment plant.

Fajarbaru said the CONSTRUCTION [] period was 30 months commencing from the date of possession on Jan 11, 2012.

RHB Research Institute Sdn Bhd maintained its Market Perform call on Fajarbaru with a fair value of 91 sen.

The research house said this was the second key contract Fajarbaru had secured in FY06/12, boosting its year-to-date new contracts secured to RM228 million and outstanding construction orderbook by 11% from RM580 million to RM642 million.

“Assuming an EBIT margin of 8-10%, the contract will fetch RM5 million- RM6.2 million EBIT over the construction period of 30 months commencing Jan 2012.

“Forecasts are maintained as we have assumed Fajarbaru to secure RM250 million worth of new jobs in FY06/12,” 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: Boustead, BHIC, DRB-Hicom, Jaya Tiasa, Fajarbaru, Aeon

KUALA LUMPUR (Dec 22): The FBM KLCI and regional markets are likely tread cautiously on Thursday, as the initial euphoria that followed the take-up of nearly 490 billion euros from the European Central Bank at its first-ever offer of three-year loans on Wednesday died out.

European shares reversed their gains and trended lower in early trade, as jitters over the actual extent of the eurozone debt crisis resurfaced.

Investor confidence at European markets appeared to fade as the heavy take-up of the ECB money highlighted the pressures upon European banks.

On Bursa Malaysia, among the stocks that could be in focus are BOUSTEAD HOLDINGS BHD [], BOUSTEAD HEAVY INDUSTRIES CORPORATION BHD (BHIC), DRB-HICOM BHD [], JAYA TIASA HOLDINGS BHD [], Fajarbaru Builder Group Bhd and Aeon Co (M) Bhd.

Boustead denied a news report that it was considering taking Boustead Heavy Industries Corporation Bhd private.

“We would like to clarify that Boustead is currently not considering any proposal to privatise Boustead Heavy Industries Corporation Bhd,” the conglomerate told Bursa Malaysia Securities Bhd in a one-paragraph statement on Wednesday.

DRB-Hicom’s unit has entered into a swap agreement to convert the status of its land in Langkawi from Malay reserve (MR) to non-Malay reserve with a view to undertake high-end boutique luxury mixed developments there.

Its unit Rebak Island Marina Bhd (Rebak) has entered into the agreement with Northern Gateway Free Zone Sdn Bhd (NGFZ) to change the designation of 333 acres of land owned by Rebak from MR to non-MR status of 350 acres freehold land in Bandar Kota Perdana, Kubang Pasu, Kedah for RM76 million cash.

Jaya Tiasa Holdings Bhd net profit for the second quarter ended Oct 31, 2011 rose 36.8% to RM41.16 million from RM30.07 million a year earlier, due mainly to increase in revenue.

Fajarbaru secured a RM61.99 million contract to build a sewage treatment plant on Klang, Selangor.

Aeon is acquiring two pieces of freehold land measuring 7.37ha in Kulai for RM22.22 million as part of its strategy to expand its retail business and operate shopping centre with car parks and departmental stores cum supermarket.



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.

Fajarbaru to build RM61.99m sewage treatment plant

KUALA LUMPUR (Dec 21): Fajarbaru Builder Group Bhd has secured a RM61.99 million contract to build a sewage treatment plant on Klang, Selangor.

It said on Wednesday that its wholly-owned unit Fajarbaru Builder Sdn Bhd had received a letter of acceptance dated Dec 20, 2011 from the Ministry of Energy, Green TECHNOLOGY [] and Water for Package of the sewage treatment plant.

Fajarbaru said the CONSTRUCTION [] period was 30 months commencing from the date of possession on Jan 11, 2012.

The company said the Contract was expected to contribute positively to its earnings for the financial years ending June 30, 2012 to June 30, 2015.


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.

Fajarbaru 1Q earnings slump 63% to RM1.53m

KUALA LUMPUR (Nov 17): Fajarbaru Builder Group Bhd’s earnings fell 63% to RM1.53 million in the first quarter ended Sept 30, 2011 from RM4.16 million a year ago.

It said on Thursday revenue was however, increased by 96.8% to RM55.17 million from RM28.03 million but earnings per share fell to 0.92 sen from 2.64 sen.

Its trade and other receivables rose to RM61.35 million from RM48.77 million on June 30.

Of the RM55.17 million in revenue, all of it was from the CONSTRUCTION [] businesses which resulted in pre-tax profit of RM2 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.

Fajarbaru rises on RM166.4m medical suite job

KUALA LUMPUR: Fajarbaru Builder Group Bhd shares rose on Wednesday, Oct 19 after it secured a RM166.4 million contract for the CONSTRUCTION [] of Ampang 210 Medical Suite in KL.

At 9.52am, Fajarbaru added four sen to 96 sen with 14,000 shares done.

The company said on Oct 18 that its unit Fajarbaru Builder Sdn Bhd would jointly undertake the project with Aztabina Sdn Bhd.

RHB Research in a note Oct 19 said that this was the first key contract Fajarbaru had secured in FY06/12, boosting its outstanding construction orderbook by 32% from RM524 million to RM690 million.

Assuming EBIT margin of 8-10%, the contract will fetch RM13.3 million - RM16.6 million EBIT over the construction period, said the research house.

“Forecasts maintained as we have assumed Fajarbaru to secure RM250 million worth of new jobs in FY06/12.

“Fair value is RM1.13. Maintain Outperform,” it said.