KEuro to buy 15.8% of West Coast Expressway, up stake to 80%

KUALA LUMPUR (Feb 17): KUMPULAN EUROPLUS BHD [] has proposed to raise its stake in West Coast Expressway Sdn Bhd (WCESB) to 80% a move to strengthen its control of WCESB after it secured the RM7.07 billion west coast highway concession.

KEuro said on Friday it was buying a 15% stake or 4.59 million shares of WCESB from Prominent Xtreme Sdn Bhd for RM5.33 million.

KEuro said together with the current 18.649 million shares or 64.20%, the acquisition would see it holding 80% equity interest.

“Upon commencement of the CONSTRUCTION [] of the West Coast Expressway, WCESB is expected to contribute positively to the earnings as well as the shareholders’ value of the KEuro group,” it said.

To recap, on Jan 26, 2012, WCESB received an approval letter from the Public Private Partnership Unit of the Prime Minister’s Department to undertake the proposed privatisation of the construction of the West Coast Expressway.

This would be based on build-operate-transfer (BOT) with a concession period of 60 years, at an estimated project cost of RM7.07 billion.

WCESB’s existing directors are Tan Sri Chan Ah Chye @ Chan Chong Yoon, Datuk Abdul Hamid Mustapha, Datuk David Frederick Wilson, Loy Boon Chen and Datuk Neoh Soon Hiong.

The company has been loss making over the past five years. It posted net losses of RM21,594 in the financial year ended Jan 31, 2011.



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Funding scenarios for West Coast Expressway

IJM Corp Bhd (Feb 14, RM5.95)
Maintain buy with unchanged sum-of-parts-derived fair value of RM7.23 per share: In this report, we examine three possible funding scenarios for the West Coast Expressway (WCE).

A key focus of the WCE is on its funding requirements after IJM’s 23%-owned associate Kumpulan Europlus (KEuro) received approval-in-principle to privatise the highway via the latter’s 64%-owned unit West Coast Expressway Sdn Bhd just last month.

Assuming a debt/equity ratio of 70:30, we estimate that the equity portion for the WCE may reach RM2 billion.

Its equity needs may appear huge compared to KEuro’s market capitalisation of only about RM669 million.

Furthermore, KEuro remains relatively highly leveraged with a net gearing ratio of around 1.1 times as at Oct 31 last year compared with 3.4 times a year ago.

By extension, this has given rise to market postulation of the potential involvement of other parties to help bridge the funding gap of WCE, including IJM.



Three possible financing scenarios are: (i) IJM increases its current stake of 23% in KEuro; (ii) IJM owns a direct stake in the highway itself; and (iii) the entry of select cornerstone investors in the project, including government-related entities.

In our view, scenario one is unlikely to materialise as such a move would likely trigger a general offer on KEuro and may undermine IJM’s balance sheet if the former’s debts are subsequently consolidated at IJM group level.

We believe option two and/or three could emerge as realistic choices. Under the first, IJM would help lend credence to the WCE and further solidify its bid for up to RM7 billion worth of associated construction works without the need to consolidate KEuro into its books.

The presence of strategic government-backed investors under scenario three would help plug the funding gap, possibly through the balance 36% share of WCE Sdn Bhd, where the identity of the stakeholder remains unknown at this juncture.

We expect the formalisation of a concession agreement for the WCE in a matter of weeks to boost IJM’s rising order book prospects, where the highway could present over RM4 billion of job opportunities to underpin the group’s RM8 billion to RM9 billion new contract target in 2012.

We also like IJM for its diversified earnings base. IJM Plantations (28% of FY12F group earnings) is on track to double its Indonesian plantation landbank to 40,000ha in three years. — AmResearch, Feb 14


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



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IJM Corp to raise stake in KEuro?

KUALA LUMPUR: The potentially huge contracts spin-off from the RM7.07 billion West Coast Expressway (WCE) project has spearheaded IJM Corp Bhd into the spotlight. But not to be forgotten is Kumpulan Europlus Bhd (KEuro), which could see more corporate exercises.

“For a bigger exposure to the WCE concession, IJM Corp is likely to increase its stake in KEuro, which is now only 22.72%. It may not want to privatise KEuro, but certainly it may want to have bigger shareholdings in the company,” said a market observer.

He added that a bigger shareholding commitment from IJM Corp is also crucial for KEuro to raise the necessary funding for the equity portion of the project that is said to be about RM1.5 billion.

After a long wait of more than 15 years, KEuro’s 64.2%-owned subsidiary, West Coast Expressway Sdn Bhd, last week secured the approval in principle from the government for the privatisation of the construction of WCE under a built-operate-transfer model and for a concession tenure of 60 years. The highway stretches for 316km from Banting, Selangor to Taiping, Perak.

With WCE now in the bag and that KEuro also owns 50% of the 1,900-acre (760ha) Canal City development near Kota Kemuning in Shah Alam could be another reason why IJM Corp may be looking to increase its stake in KEuro. The Canal City project, which has a total gross development value of more than RM10 billion over 10 years, is slated to commence in August.

IJM Corp’s listed property arm IJM Land Bhd owns the remaining 50% of the Canal City project and is the lead project manager. The development could be lucrative given the land cost of merely RM5 per sq ft, according to management.

“KEuro will see more activities from 2012 onwards. With the commencement of WCE and Canal City developments, the stock may attract more interest,” said a market observer.

KEuro posted a net profit of only RM5.01 million for the nine months ended Oct 31, 2011 on revenue of RM14.81 million. The company lacked major business activities for the past few years, pending the government approval for the WCE project and the commencement of the Canal City development. KEuro’s total net borrowings amounted to RM146 million as at Oct 31, 2011.

Nonetheless, a bigger shareholding by IJM Corp in KEuro could mean a dilution in stake for KEuro president and chief executive Tan Sri Chan Ah Chye, whose family owns a 27.58% stake. The stake is now worth about RM190 million based on KEuro’s market capitalisation of RM688 million yesterday.

Closing at RM1.32 yesterday, KEuro’s share price has recovered from below 93 sen last August but still trades under its 52-week high of RM1.62 at the beginning of 2011. The stock is not covered by analysts.

IJM Corp’s involvement in KEuro began in 2005 when it acquired a 25% stake in KEuro (now diluted to a 22.72% stake following a shares placement exercise). The shares were purchased from several KEuro shareholders, including the KEuro group, Intelbest Corp Sdn Bhd, Pengurusan Bersistem Sdn Bhd, Ambang Sepakat Sdn Bhd and Chan.

The stake comprised 118.37 million shares and were purchased at 28 sen apiece for RM33.1 million. IJM Corp said at the time the purchase was influenced by its interest in KEuro’s concessions for both WCE and Canal City.

IJM Corp said it purposely did not buy out completely Chan’s stake in KEuro then, as the group saw KEuro president’s presence and his business connections too valuable to lose.

Since the purchase six years ago, IJM Corp has kept its holdings in KEuro intact. It did not even exercise an option to acquire another 5% stake that had lapsed within one year after the initial block, probably because of the uncertainty of KEuro securing WCE. But now that the government has given its approval for the highway concession, IJM Corp may now want to review its holdings in KEuro.

“The fact that IJM Corp bought its current 22.72% stake in KEuro cheap also means that it could afford to acquire more shares now and yet still keep its average cost at a reasonable level,” said a market observer.


This article appeared in The Edge Financial Daily, January 31, 2012.



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TI-Malaysia: Explain awarding of RM7.07 bn West Coast Expressway project

KUALA LUMPUR (Jan 30): Transparency International Malaysia (TI-M) has expressed concern over the apparent lack of transparency and proper procedure in the awarding of the RM7.07 billion West Coast Expressway concession project.

Its president, Datuk Paul Low said this mega project would involve massive public financing of a soft loan of RM2.24 billion and payment of RM980 million for land acquisition, and an unprecedented 60-year toll concession.

“TI-M views with concern the apparent lack of transparency and proper procedure in the award. Given the public funding and long concession period, there could have been proper governance and transparency in the award through an open, transparent and competitive procurement process and public disclosure of the terms and conditions of the contract,” he said in a statement.

To recap, on Jan 26, KUMPULAN EUROPLUS BHD [] announced to Bursa Malaysia that its 64.2% owned West Coast Expressway Sdn Bhd (WCE) has received the government’s approval to build the 316-km west coast project costing RM7.07 billion.

The 316-km Banting to Taiping expressway would be on a build-operate-transfer (BOT) with a concession period of 60 years.

KEuro also said the land acquisition cost of up to RM980 million for the project would be borne by the government.

The company had also saud a government support loan of RM2.24 billion, starting from 2013 at an interest rate of 4% per annum, and an interest subsidy, of up to 3% from commercial loans for a period of 22 years, would be granted to WCE,” it said.

KEuro had then said toll revenue in excess of an agreed traffic volume would be shared on the basis of 70:30 between the government of Malaysia and WCE till full settlement of the government support loan and subsequently 30:70 after the loan is settled.

However, on Monday, Low pointed out that such a mega project and also its impact on the public was an ideal candidate for implementing the Integrity Pact (IP), a tool for curbing corruption risks in public contracting projects.

“The government has recognised the potential benefits of IPs by a Treasury circular dated Dec 16, 2010 outlining guidelines for implementing IPs in government procurement.

“Further, MRT Corp., the GLC tasked with implementing the MRT project, has agreed to incorporate the IP in its procurement exercises,” he said.



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West Coast Expressway gets record 60-year concession

KUALA LUMPUR: The longest concession agreement ever, 60 years, has been granted for the West Coast Expressway (WCE), in which the government will have a share of the toll revenue.

In an announcement to Bursa Malaysia, Kumpulan Europlus Bhd said WCE Sdn Bhd, in which it holds 64.2% equity interest, has obtained approval from the Public Private Unit of the Prime Minister’s Department for the proposed privatisation and construction of the long overdue expressway from Taiping, Perak, to Banting in Selangor.

The concession period of 60 years is the longest ever the government has given out, but the latter will have a share of the toll revenue should the traffic volume exceed forecast.

The concession agreement between WCE and the Ministry of Works, on behalf of the government, has yet to be signed. It is awaiting clearance from the Attorney General’s Chambers.

This is seen as a groundbreaking highway concession as in the past the toll revenues are enjoyed by the concessionaire.

According to the announcement, toll revenue in excess of a yet-to-be agreed upon traffic volume will be shared on the basis of 70:30 between the government and WCE Sdn Bhd. Upon the full settlement of a RM2.24 billion government support loan (GSL), the toll revenue will be split 30:70 in favour of WCE.

The project has been delayed for over 10 years due mainly to financing problems. Europlus, controlled by Tan Sri Chan Ah Chye, has difficulty getting funding for the project since the onset of the 1997/98 Asian financial crisis.

Tan Sri Chan Ah Chye mooted the West Coast Expressway more than 10 years ago, but the Asian financial crisis of the late 1990s made finding financing problematical. Now, with a government support loan and a record-breaking 60-year concession, his dream is set to become a reality.

To increase the viability of the project, the government will provide the GSL, which will commence in 2013 at an interest rate of 4% per year and an interest subsidy of up to 3% from commercial loans for a period of 22 years.

The concession stretches 316km, of which 224km will be tolled while 92km will be toll free.

Overall, the cost of the project is estimated at RM7.07 billion, of which the land acquisition cost of RM980 million will be borne by the government. Construction of the project will be implemented by WCE via open tender.

The highway was mooted 15 years ago by Chan, who established Konsortium LPB Sdn Bhd (KLPB), the promoter of the project.

Chan holds 27.58% equity interest in Europlus while construction giant IJM Corp Bhd owns a 22.72% stake. IJM also holds a controlling stake in KLPB.

After years of feasibility studies, the project finally started moving in May 2007, when KLPB entered into a concession agreement for the construction of the WCE, which will connect the North-South Expressway at Taiping in the north, to Banting in the south, leading to the Kuala Lumpur International Airport (KLIA).

Prior to the announcement of the WCE approval, Europlus’ share price rose 5.6% to a nine-month high of RM1.31 yesterday from RM1.24 on Wednesday with 1.4 million shares changing hands. With net assets per share of 19.68 sen, Europlus is trading at 6.66 times book value.

For the nine months ended Oct 31, 2011, Europlus reported a net profit of RM5 million on RM14.8 million in revenue, compared with a net loss of RM24.1 million from RM20.5 million in sales for the corresponding period a year ago.



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KL stocks easier in early trade

Share prices on Bursa Malaysia were traded lower in the early session Friday on profit-taking in the plantation, palm oil and finance counters, dealers said.

After 10 minutes of trading, the underlying FBM KLCI lost 1.15 points to 1,522.71 after opening 0.01 of a point higher at 1,523.87.

The HwangDBS Vickers Research said the benchmark FBM KLCI would probably tread in a tight band with a marginal downward bias.

"The immediate support line for the bellwether currently stands at 1,515," it said in a research note today.

The research house said while the broad market performance was expected to be sluggish, there could be excitement in individual stocks such as IJM Corp and Ahmad Zaki Resources Bhd amid media reports that they have been awarded construction packages worth RM1.7 billion for the Mass Rapid Transit project.

Kumpulan Europlus' shares are also expected to rise after securing government approval to undertake the RM7.1 billion West Coast Expressway project. The concession is for 60 years.

Market sentiments were broadly higher, with gainers outpacing losers 137 to 77, with 140 counters unchanged, 1,120 untraded and 26 suspended.

Turnover stood at 152.07 million shares worth RM80.17 million.
The Finance Index dwindled 10.74 points to 13,485.87, the Plantation Index lost 13.58 points to 8,713.63, and the Industrial Index fell 5.09 points to 2,787.61.

However, the FBM Emas gained 7.12 points to 10,581.73, the FBM Mid 70 surged 65.69 points to 12,127.71 and the FBM Ace rose 10.52 points to 4,460.92.

Among the volume leaders, The Media Shoppe earned half a sen to 12 sen, Karyon Industries added 1.5 sen to 5.5 sen, while Jotech Holdings eased half sen to 15 sen.

Among the heavyweights, Maybank gained four sen to RM8.26, Sime Darby stood unchanged at RM9.08, while Petronas Chemicals lost one sen to RM6.66. -- Bernama



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Infrastructure players advance on landing new jobs

KUALA LUMPUR (Jan 27): Shares of infrastructure players KUMPULAN EUROPLUS BHD [], IJM CORPORATION BHD [] and AHMAD ZAKI RESOURCES BHD [] advanced in early trade on Friday after each saw new developments, namely approval to build a highway and being awarded CONSTRUCTION [] packages.

At 9.05am, Kumpulan Europlus rose nine sen to RM1.40 after its subsidiary West Coast Expressway Sdn Bhd (WCE) has received the government’s approval to build the 316-km west coast project costing RM7.07 billion.

The 316-km Banting to Taiping expressway would be on a build-operate-transfer (BOT) with a concession period of 60 years, which could be the longest period for such a concession.

The land acquisition cost of up to RM980 million for the project will be borne by the government of Malaysia.

Meanwhile, IJM Corp added 31 sen to RM5.76 and AZRB rose 17 sen to 91 sen after MRT Corporation awarded two construction packages worth RM1.738 billion for the Sungai Buloh-Kajang My Rapid Transit (MRT) line to IJM Construction Sdn Bhd and Ahmad Zaki Sdn Bhd.

IJM Construction will be appointed the main contractor for Package V5 which will cover the construction and completion of the Viaduct Guideway and other associated works from Maluri Portal to Plaza Phoenix Station worth RM974 million.

AZRB will be appointed the main contractor for Package V6 which covers the construction and completion of the Viaduct Guideway and other associated works from Plaza Phoenix to Bandar Tun Hussein Onn Station with a contract value of RM764 million.



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HDBSVR sees KLCI trading in tight range, support at 1,515

KUALA LUMPUR (Jan 27): Hwang DBS Vickers Research expects the FBM KLCI to probably tread in a tight band with a marginal downward bias after the slightly weaker close on Wall Street.

It said on Friday the immediate support line for the bellwether currently stands at 1,515.

On Wall Street, key U.S. stock indices were down between 0.2% and 0.6% at the closing bell last night. Essentially, investors' sentiment was dented by news that new home sales fell unexpectedly in Dec, which then prompted Wall Street to take a breather following its recent run-up.

As for Bursa Malaysia, it said while the broad market performance was expected to be sluggish, there could be excitement in individual stocks on the back of contract wins including IJM Corporation and AHMAD ZAKI RESOURCES BHD [] (AZRB), Kumpulan Europlus and Alam Maritim.

IJM Corporation and AZRB were awarded CONSTRUCTION [] packages worth RM1.7 billion in the MRT project.

Kumpulan Europlus secured government approval to undertake the RM7.1 billion 60-year concession West Coast Expressway project.

Alam Maritim was awarded an oil & gas support services contract value at RM115 million.



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Stocks to watch: IJM, AZRB, KEuro, Alam Maritim

KUALA LUMPUR (Jan 27): CONSTRUCTION [] stocks could see strong interest after the announcement of two multi-billion ringgit contracts being awarded totaling RM8.808 billion.

The stocks which would draw huge interest on Friday are IJM CORPORATION BHD [], AHMAD ZAKI RESOURCES BHD [] (AZRB) and KUMPULAN EUROPLUS BHD [].

MRT Corporation has awarded two construction packages worth RM1.738 billion for the Sungai Buloh-Kajang My Rapid Transit (MRT) line to IJM Construction Sdn Bhd and Ahmad Zaki Sdn Bhd.

IJM Construction will be appointed the main contractor for Package V5 which will cover the construction and completion of the Viaduct Guideway and other associated works from Maluri Portal to Plaza Phoenix Station worth RM974 million.

AZRB will be appointed the main contractor for Package V6 which covers the construction and completion of the Viaduct Guideway and other associated works from Plaza Phoenix to Bandar Tun Hussein Onn Station with a contract value of RM764 million.

Kumpulan Europlus’ subsidiary West Coast Expressway Sdn Bhd (WCE) has received the government’s approval to build the 316-km west coast project costing RM7.07 billion.

The 316-km Banting to Taiping expressway would be on a build-operate-transfer (BOT) with a concession period of 60 years, which could be the longest period for such a concession. The land acquisition cost of up to RM980 million for the project will be borne by the government of Malaysia.

ALAM MARITIM RESOURCES BHD [] secured a US$37 million (RM115 million) transportation, installation and pre-commissioning contract from Samsung Engineering (Malaysia) Sdn Bhd. The contract is for the transportation, installation and pre-commissioning of two pipelines, two single point moorings and two PLEM’s (pipeline end manifold) in connection with Sabah Oil & Gas Terminal Project.

Meanwhile, AIRASIA BHD []’s airfare issue with the Australian regulators over its online airfare information has been resolved. AirAsia stated the problem could have been due to an IT issue in September 2011 and it had taken corrective action to resolve the complaints.

PLANTATION []-based TDM BHD [], whose share price closed at multi-year highs of RM4.42, could see extended trading interest. Investors were positive outlook for its plan to invest RM300 million to expand its plantations.



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KEuro subsidiary gets govt nod for RM7.07b highway, 60-yr concession

KUALA LUMPUR (Jan 26): KUMPULAN EUROPLUS BHD []’s subsidiary West Coast Expressway Sdn Bhd (WCE) has received the government’s approval to build the 316-km west coast project costing RM7.07 billion.

It said on Thursday the 316-km Banting to Taiping expressway would be on a build-operate-transfer (BOT) with a concession period of 60 years, which could be the longest period for such a concession.

“The land acquisition cost of up to RM980 million for the project will be borne by the government of Malaysia,” it said in a statement to Bursa Malaysia.

KEuro said WCE, a 64.2% subsidiary, had received an approval letter dated Jan 26 from the Public Private Partnership Unit of the Prime Minister’s Department to build the West Coast Expressway.

“To enhance the viability of the project, a government support loan of RM2.24 billion, commencing from year 2013 at an interest rate of 4% per annum, and an interest subsidy, of up to 3% from commercial loans for a period of 22 years, will be granted to WCE,” it said.

KEuro said toll revenue in excess of an agreed traffic volume would be shared on the basis of 70:30 between the government of Malaysia and WCE till full settlement of the government support loan and subsequently 30:70 after the loan is settled.

It also said the CONSTRUCTION [] works of the project would be implemented by WCE through open tender.



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Kumpulan Euro’s 6m shares done off-mkt at 9.7% below regular trade

KUALA LUMPUR (Jan 6): KUMPULAN EUROPLUS BHD [] saw 6.0 million of its shares transacted in an off-market deal at an average price of RM1.11 on Friday.

Stock market data showed the shares, which were crossed at RM1.11 each, were 9.7% below its regular market trade of RM1.23.

The 6.0 million shares accounted for just 1.15% of the paid-up of 520.99 million shares.



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Stocks to watch: Cypark, Box-Pak, IRCB, Trinity

KUALA LUMPUR (Dec 31): With Friday being the last trading day of the year, there could be some last-minute window dressing activities for blue chip stocks to ensure the FBM KLCI closes well above the 1,500 mark and ends the year in a positive note.

The FBM KLCI closed closed 2.58 points higher at 1,506.69. Year-to-date, the 30-stock benchmark index is down only 0.81%. The overall market tone was firmer with advancing counters beating decliners 492 to 254.

However, investors should also expect some profit-taking on stocks which had run up recently like Proton on strong newsflow.

As expected, external developments from Europe and the US would determine the final trading day.

Among the stocks which could see trading interest are CYPARK RESOURCES BHD [], BOX-PAK (MALAYSIA) BHD [], INTEGRATED RUBBER CORPORATION [] Bhd (IRCB), Trinity Corporation Bhd (formerly TALAM CORPORATION BHD []), KUMPULAN EUROPLUS BHD [] and BERJAYA CORPORATION BHD [].

Cypark received a contract worth RM14.71 million to upgrade the landfill site at Kok Foh, Jempol in Negeri Sembilan. It received the letter of acceptance for the contract from the National Solid Waste Management Department.

Shares of Box-Pak could continue to see selling pressure after KIAN JOO CAN FACTORY BHD [] stated it was unaware of any negotiations to privatise Box-Pak. Box-Pak closed 24 sen down to RM2.23 with 5.35 million shares done.

Meanwhile, IRCB posted net loss RM5.29 million in the third quarter ended Oct 31, 2011 from net profit RM2.88 million a year earlier, on lower output and volatile latex prices. Its revenue for the quarter fell 21.96% to RM24.83 million from RM31.82 million in 2010.

For the nine months ended Oct 31, IRCB posted net loss of RM17.93 million compared to net profit RM3.36 million in the previous corresponding period while revenue decreased to RM86.99 million from RM107.24 million.

Trinity posted net loss of RM29.26 million in the third quarter ended Oct 31, 2011 from RM83.29 million a year ago.

The losses were due to an impairment provision of RM9.20 million made on a piece of development land to be sold to a third party and also provisions made for doubtful debts of RM14.93 million.

Kumpulan Europlus posted net profit of RM1 million in the third quarter ended Oct 31, 2011 compared with net loss of RM19.31 million a year ago.

Its pre-tax profit of RM1.33 million versus pre-tax loss of RM16.08 million a year ago was mainly due to interest income of RM1.66 million, accretion of equity interest in Talam Corp Bhd of RM 2.21 million and fair value gain of RM 2.09 million on short term investments.

Thai conglomerate Charoen Pokphand Foods PCL’s Malaysian company is acquiring property-based MKH Bhd’s food processing and livestock farming operations for RM64 million.

Berjaya Corporation Bhd posted net profit of RM22.96 million in its second quarter ended Oct 31, 2011, down 73.4% from RM86.54 million a year ago in the absence of write-backs.

It said in the previous quarter, there were certain gains on write-back of impairment relating to associated companies and recognition of gains on disposal of subsidiary companies.

“Operationally, the current quarter results are comparable to the previous year corresponding quarter results,” it said.



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Kumpulan Europlus posts RM1m net profit in 3Q vs RM19m net loss

KUALA LUMPUR (Dec 29): KUMPULAN EUROPLUS BHD [] posted net profit of RM1 million in the third quarter ended Oct 31, 2011 compared with net loss of RM19.31 million a year ago.

It said on Thursday its pre-tax profit of RM1.33 million versus pre-tax loss of RM16.08 million a year ago was mainly due to interest income of RM1.66 million, accretion of equity interest in Talam Corp Bhd of RM 2.21 million and fair value gain of RM 2.09 million on short term investments.

Kumpulan Europlus said its revenue fell 19% to RM3.84 million from RM4.74 million mainly due to lower billings by the group’s manufacturing and CONSTRUCTION [] divisions. Earnings per share were 0.2 sen compare with loss per share of 4.10 sen.

For the nine-month period, it recorded net profit of RM5.01 million in contrast with the net loss of RM24.05 million in the previous corresponding period.

The group recorded a pre-tax profit of RM 5.64 million compared to a pre-tax loss of RM20.07 million mainly due to gains arising from redemption of financial instruments by Trinity totalling RM44.27 million and interest income of RM4.40 million, reduced by fair value loss of RM 6.25 million and provision for doubtful debts of RM23.04 million.

Revenue declined 27.8% to RM14.81 million from RM20.51 million also due to lower billings by the group’s manufacturing and construction divisions.



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CIMB Research has technical buy on K. Euro at RM1.06

KUALA LUMPUR (Dec 6): CIMB Equities Research has a technical buy on Kumpulan Europlus at RM1.06 at which it is trading at a price to book value of 5.4 times.

It said on Tuesday that Kumpulan Europlus is still trading within its consolidation triangle pattern. If prices can continue to hold above its 30-day and 50-day SMAs, then a breakout to higher levels is likely.

“Technical landscape is neutral with both the MACD and RSI showing little signs of life, which is in line with the triangle view.

“Since the prior trend before the triangle is up, the odds favour the bulls here. Buy now with a tight stop placed below RM1.01. The likely breakout could send prices shooting towards RM1.18 and RM1.20 next,” it said.



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CIMB Research has technical buy on Kumpulan Europlus

KUALA LUMPUR (Nov 17): CIMB Equities Research has a technical buy on Kumpulan Europlus at RM1.07 at which it trading at a price-to-book value of 5.5 times.

It said on Thursday Kumpulan Europlus broke out of its triangle resistance on Wednesday.

“Looking at the chart, we think this upswing still has legs. If prices can continue to hold on above its 30-day SMA (now at RM1.03), there is a good chance that prices may edge closer towards RM1.14 and RM1.20,” it said.

CIMB Research said the technical landscape is improving. MACD is poised for a positive crossover while RSI has also hooked upward.

“Traders may start to nibble now but always put a stop at below the RM1.01 level. A break below its 50-day SMA would put a stop to this uptrend,” it said.



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