CPO prices at 8-month high, may rise further

KUALA LUMPUR (Feb 20): Crude palm oil futures rose to RM3,3260 per tonne at midday on Monday, underpinned by firmer demand and weaker first quarter production in Borneo due tail end effects of 1QCY10 drought, analysts said.

At midday, CPO for third-month delivery was up RM18 to RM3,260, the highest since June 14, 2011.

News reports said China's move to ease its policy had helped nudged commodities higher while an improvement in demand prospects and technical outlook also provided support.

OSK Research said CPO prices staged a technical breakout last Friday and it thinks CPO price will head higher to RM3,465 in the medium term.

“This is consistent with our sector view that any upside palm oil price is to have will happen in the first quarter or not at all. Seasonally palm oil price tends to peak in 1Q, carrying over buying momentum from 4Q,” said the research house.

At midday, among the PLANTATION []s which posted share price gains were BLD Plantations, up 10 sen to RM10.10, Glenealy 18 sen to RM7.18, TH Plantations eight sen to RM2.80, Hap Seng Plantaions four sen to RM3.13 and Kim Loong, also four sen to RM2.64.



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Hap Seng group post strong full-year profit

KUALA LUMPUR: Hap Seng Consolidated Bhd posted a marginal year-on-year (y-o-y) increase in profit in its 4QFY11 results, while its listed plantation arm, Hap Seng Plantations Holdings Bhd saw a slight decrease, according to announcements made to Bursa Malaysia yesterday. Both companies chalked up strong double-digit growth in profit for FY11 ended Dec 31, sending their share prices to 52-week highs.

Hap Seng Consolidated posted a 20.6% y-o-y increase in its FY11 net profit, rising to RM493.13 million from RM409.05 million, with earnings per share of 18.85 sen. Hap Seng Plantations’ net profit grew 49.6%, from RM169.11 million to RM252.97 million, or 31.62 sen per share.

For 4QFY11, Hap Seng Consolidated posted a net profit of RM136.5 million, 4.28% y-o-y higher than its 4QFY10 net profit of RM130.89 million. On a quarter-on-quarter basis, net profit improved 49.75% from RM91.15 million in 3QFY11.

The diversified company’s 4Q revenue increased 20.2% to RM974.64 million from RM810.89 million. It attributed the higher revenue to growth in all divisions except for property, which posted a 10% y-o-y decline in revenue due to lower project sales due to the timing of completion of its existing projects in Sabah and Sarawak.

“Group operating profit for the current quarter at RM191.3 million was 4% higher y-o-y, with improved contributions from the property, credit financing and automotive divisions,” it said.

The group’s listed plantation arm, Hap Seng Plantations, posted net profit of RM53.07 million for the latest quarter, a 2.9% y-o-y decline from RM54.64 million last year, which it attributed to higher production costs. Its revenue increased marginally by 2.3% y-o-y to RM161.02 million from RM157.43 million.

Despite recording higher crude palm oil sales of 46,238 tonnes and higher CPO selling prices of RM2,977 per tonne compared with last year’s RM2,843 per tonne, the gains were affected by lower palm kernel sales. Both companies announced second interim dividends, 10 sen for Hap Seng Plantations and 4.7 sen for Hap Seng Consolidated.

Hap Seng Consolidated and Hap Seng Plantations each closed one sen higher at RM3.05 and RM1.68, respectively. Their trading volume stood at 985,400 shares and 1.5 million shares.


This article appeared in The Edge Financial Daily, February 15, 2012.



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Hap Seng climbs on Q4 profit boost

Hap Seng Consolidated Bhd, a plantation and property group, gained 3 per cent to RM1.73, on course for its highest close since May 11.

Its fourth-quarter net income grew 8.4 per cent from a year earlier to RM111.7 million, according to a stock exchange filing. - Bloomberg



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Hap Seng acquires 35pc stake in Hap Seng Star

Hap Seng Consolidated Bhd's (HSCB) wholly-owned unit, Hap Seng Auto Sdn Bhd, has signed a sale and purchase agreement with Great Horizon Ltd (GHL).

In a filing to Bursa Malaysia today, HSCB said, Hap Seng Auto would acquire
GHL's entire shareholding of 11.725 million ordinary shares of RM1 each,
representing 35 per cent of the issued and paid-up share capital in Hap Seng
Star Sdn Bhd, for RM41.38 million cash.

HSCB said upon completion of the proposed acquisition, Hap Seng Star would

become HSCB's wholly-owned unit and the company would be able to fully
consolidate the profit contribution from its automotive division. -- Bernama



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Hap Seng sells KK land for RM85m in RPT

KUALA LUMPUR: Hap Seng Consolidated Bhd’s wholly-owned subsidiary, Hap Seng Realty Sdn Bhd, is disposing of 2.16 acres of land with a cinema complex in Kota Kinabalu to Akal Megah Sdn Bhd for RM85 million cash or RM90 per sq ft.

Akal Megah is a wholly-owned subsidiary of Lei Shing Hong Ltd.

In a filing with Bursa Malaysia yesterday, Hap Seng Consolidated said the disposal price was arrived at after taking into consideration the sizeable area and prime location within the central commercial district of Kota Kinabalu City Centre. Hap Seng Realty acquired the land for RM28.5 million in March 2010.

“The proposed disposal is in the ordinary course of business of the vendor, a company principally involved in property investment, with which the vendor is able to realise the attractive capital appreciation of the said property,” it said.

The sale is considered a related party transaction (RPT) as Tan Sri Panglima Lau Cho Kun holds 36.6% equity interest in Lei Shing Hong and 56% of Gek Poh (Holdings) Sdn Bhd.

Gek Poh currently holds a 61.8% stake in Hap Seng Consolidated, comprising 53.3% direct shareholding and 8.53% indirect shareholding via subsidiary Hap Seng Insurance Services Sdn Bhd.

Datuk Edward Lee Ming Foo and Lee Wee Yong are directors of Hap Seng Consolidated and Gek Poh, while Datuk Simon Shim Kong Yip is a director of Hap Seng Consolidated, Akal Megah and Lei Shing Hong.

Hap Seng Consolidated closed unchanged at RM1.40 yesterday with 1.53 million shares done.


This article appeared in The Edge Financial Daily, November 30, 2011.



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CIMB Research has technical buy on Hap Seng Consolidated

KUALA LUMPUR (Nov 21): CIMB Equities Research has a technical buy on Hap Seng Consolidated at RM1.46 at which it is trading at a price-to-book value of 1.0 times.

It said on Monday that after breaking out from the long term downtrend channel, Hap Seng Consolidated rose to a high of RM1.61 before consolidating in a bullish wedge pattern.

“Prices could still charge a tad higher as long as the candles hold on above its 50-day SMA,” it said.

CIMB Research said the MACD is dwindling while RSI is also below the 50pts mark. However, it is not perturbed by this as the candles are still holding above the 50-day SMA.

“Risk takers may start to nibble now while others should wait for a push above RM1.54 before going long. The next resistance levels are RM1.61 and RM1.71,” it said.



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IOI Corp leads planters higher

Malaysian plantation stocks including IOI Corp rose in Kuala Lumpur trading after palm oil climbed for a second day yesterday.

IOI rose 1.4 percent to RM5.10 at 9:24 a.m. local time, its second day of gains.

Kretam Holdings Bhd gained 2.9 percent to RM2.11, set for its highest close since Sept. 21.

Hap Seng Plantations Holdings Bhd added 1.5 percent to RM2.65. -- Bloomberg