IJM appointed main contractor for WCE

IJM Corp Bhd
(Dec 15, RM6.42)
Upgrade to “buy” with an unchanged target price of RM7.20. The IJM Construction Sdn Bhd (IJMC)-Kumpulan Europlus Bhd (KEB) joint venture (JV) recently accepted the letter of award (LoA) from West Coast Expressway Sdn Bhd, appointing the JV the engineering, procurement and construction contractor to undertake and complete the construction works for the West Coast Expressway (WCE) from Taiping to Banting for a fixed sum not exceeding RM5 billion.

Pursuant to the LoA, the JV shall award to IJMC the WCE construction works for packages 3,4,5,8 and 9 at a cost not exceeding RM2.83 billion.

The construction period is five years. We are not surprised with the JV appointment as a main contractor as it was announced by KEB that the government had given the nod for the appointment in May this year.

We opine the above appointment could lead to an open tender stage for the remaining RM2.2 billion packages of the WCE project in the coming weeks and the contract award stage in the following months. We do not rule out the possibility of IJM Corp participating in the other work packages. Winning the other work packages could provide an earnings surprise for IJM Corp in terms of higher construction job replenishment and more demand for its industry products.

We make no changes to our earnings forecasts. Going forward, we expect to hear more positive news flow on the WCE development. On its recent share price weakness, we upgrade IJM Corp to “buy” with an unchanged target price of RM7.20. We advise investors to take opportunity to accumulate this stock. — MIDF Research, Dec 15

This article first appeared in The Edge Financial Daily, on December 16, 2014.

CIMB up on plans to acquire Philippines bank stake

KUALA LUMPUR (May 9): CIMB Group Holdings Bhd shares advanced on Wednesday after it entered into conditional share purchase agreements (SPA) with San Miguel PROPERTIES [] Inc, San Miguel Corporation Retirement Plan and various minority shareholders for the proposed acquisition of 60% of Bank of Commerce (BoC) in the Philippines.

At 9.15am, CIMB was among the top gainers and added eight sen to RM7.71 with 1.82 million shares traded.

In a statement on Tuesday, CIMB said the acquisition was for the equivalent of RM881 million cash.

MIDF Research maintained it Neutral rating on CIMB with a target price of RM7.70 and said the deal would be neutral to its financials in FY12 with only 3 to 4 months of consolidation impact after its completion in 3QFY12.

“Even in FY13, we do not expect a significant earnings accretion as the cost-to-income ratio for Group is likely to inch up marginally due to investments in IT infrastructure and human capital for its expansion to Philippines.

“It is also expected that the provisioning in BoC post acquisition to be raised to align to the provisioning policies of CIMB Group. Our TP implies a marginal 0.9% upside from the current share price. Hence we maintain our Neutral call,” it said in a note May 9.



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MIDF Research maintains Neutral on Hartalega, ups target price to RM7.50

KUALA LUMPUR (May 9): MIDF Research has maintained its Neutral rating on HARTALEGA HOLDINGS BHD [] and raised it target price to RM7.50 (from RM7.06 previously), which it said was derived from Hartalega's higher 3-year historical average PE ratio of 12 times, based on its FY13 estimated EPS of 62.5 sen per share.

“We are of the opinion that at the current price, the stock fairly reflects its fundamentals, thus limiting its upside potential.

“Therefore, we maintain our NEUTRAL call on the stock,” the research house said in a note Wednesday.



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KLCI opens higher, blue chips lead

KUALA LUMPUR (May 4): The FBM opened higher on Friday, lifted by gains at select blue chips.

The FBM KLCI rose 2.96 points to 1,586.13 at 9am.

Gainers led losers by 84 to 38 while 74 counters traded unchanged. Volume was 19.99 million shares valued at RM21.55 million.

Meanwhile, global stocks and crude oil fell on Thursday after data showing tepid growth in the U.S. services sector raised concerns about the economic recovery a day before a highly anticipated labor market report for April, according to Reuters.

Stocks turned lower, government debt pared losses and the U.S. dollar trimmed gains against the yen after the Institute for Supply Management said its services sector index fell to 53.5 in April from 56.0 the previous month, it said.

U.S. stocks fell on Thursday as economic data sent mixed signals on the recovery a day before the April payrolls report, while shares of Green Mountain plunged after poor results.

Slower-than-expected growth in the dominant U.S. services sector drove the day's trading. The retail sector dragged the market lower after several chains, including Target Corp and Gap Inc, fell after missing April sales estimates.

MIDF Research in a note Friday said bot its own and consensus FBM KLCI earnings growth for this year were expected to be at around mid-teens, i.e. 16.2% and 16.6% respectively, supported by (i) decent organic earnings growth performance, as well as (ii) absence of lumpy abnormal losses.

“Furthermore, we believe the current liquidity-driven rally has not yet ended despite recent difficulty of the KLCI to sustain itself above the 1,600 points levels,” it said.

The research house said that with the risk-on mood still prevailing on Wall Street, as attested by the main benchmark which is stealthily approaching its pre-2008 highs, it may eventually help the markets in this region to resume their upward momentum.

“Hence we expect to see further upside to the local market with an “encore rally” in the coming months.

“We reiterate both our year-high as well as year-end 2012 KLCI base case targets of 1,670 points and 1,600 points respectively,” it said.

On Bursa Malaysia, Aeon led the gainers and rose 40 sen to RM10.20, Petronas Dagangan and Top Glove gained 20 sen each to RM19.50 and RM4.70, Orient 12 sen to RM6.80, Petronas Chemicals 10 sen RM6.65, Genting eight sen to RM10.58, Lafarge Malayan Cement and MMC Corp up sen each to RM7.39 and RM2.78, and KLK six sen to RM23.78.



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MIDF Research maintains Buy on Unisem, ups target price to RM1.70

KUALA LUMPUR (May 4): MIDF Research has maintained its Buy rating on UNISEM (M) BHD [] and raised its target price to RM1.70 (from RM1.60) and said the company’s management indicated that 2Q12 will likely post a sequential quarter revenue growth of +8%qoq to +10%qoq suggesting the end of low volume loading.

“Its customers have started to replenish inventory and there are strong demand for its wafer bumping, WLCSP, flip chip and QFN (which are for the smartphone and tablet market) services,” it said in a note Friday.

‘We are tweaking our FY12 and FY13 forecast upwards by +4.2% and +3.3% respectively as volume loading is expected to take off especially in 2H12.

“We maintain our BUY call with a revised target price of RM1.70 (from RM1.60), derived by pegging EPS12 to 13x PER which is one standard deviation higher than its 5-year historical average,” it said.



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KLCI up at mid-day break, moves above 1,570-level

KUALA LUMPUR (April 30): The FBM KLCI brushed off the concerns arising from last weekend’s Bersih 3.0 rally that turned ugly and inched higher on Monday, in line with the gains at most regional markets, lifted by select blue chips in early trade.

The FBM KLCI was up 4.01 points to 1,571.81 at the mid-day break.

Gainers trailed losers by 229 to 285, while 299 counters traded unchanged. Volume was 398.95 million shares valued at RM422 million.

Asian shares rose on Monday as weaker-than-expected U.S. growth data left open the possibility for more monetary stimulus from the Federal Reserve, but trading was subdued with Japanese and Chinese markets closed, according to Reuters.

At the regional markets, Hong Kong’s Hang Seng Index rose 1.12% to 20,974.40, south Korea’s added 0.14% to 1,978.20, while Singapore’s Straits Times Index fell 0.20% to 2,975.62 and Taiwan’s Taiex shed 0.09% to 7,473.49.

MIDF Research in its weekly fund flow analysis said Malaysian stocks continued to attract foreign money last week.

It said foreign investors bought on net basis, Malaysian-listed shares amounted to RM356.1 million compared with RM408.8 million the week before. Foreign investors have now been net buyers of Malaysian stocks for 11 consecutive weeks now.

“We cross over to May this week.

“The adage “Sell in May and go away” is certainly not uncorroborated — the KLCI had recorded negative return for the month in six out of the last 10 years, averaging -3.2%. We therefore begin the month with a historical obstacle to surmount,” it said on Monday.

On Bursa Malaysia, Petronas Dagangan was the top gainer and added 24 sen to RM19.30, Aeon Credit and Nestle gained 20 sen each to RM10.26 and RM55.30, Tasek and Takaful was up 15 sen each to RM8.70 and RM4, Tradewinds PLANTATION []s up 14 sen to RM5.84, Toyo Ink and Carlsberg added 12 sen each to RM1.53 and RM11.60.

Meanwhile, RHB Capital and OSK Holdings rose on gaining the ministry of finance nod for a merger. RHB Capital rose 11 sen to RM7.36 whiel OSK was up 13 sen to RM1.69.

Ariantec was the most actively traded counter with 201.62 million shares done. The stock fell half a sen to 25 sen.

Other actives included Utopia, DRB-Hicom, CSL, Focus, Daya Materials, Bumi Armada and YTL Corp.

Decliners at mid-day included Dutch Lady, Jaya Tiasa, PacificMas, UAC, Amway, Bumi Armada and MMHE.



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MIDF Research starts coverage on Affin with Buy rating, target price RM3.50

KUALA LUMPUR (April 30): MIDF Research has initiated coverage on AFFIN HOLDINGS BHD [] at RM3.05 with a target price of RM3.50 and said Affin’s net profit had been gradually improving with higher operating income and lower loan loss provisions.

It said in a note Monday that the group achieved a CAGR for net profit after tax and minority interest (PATAMI) of 15.1% for the period of FY07-FY11.

ROE has improved from 6.5% in FY07 to 9.4% in FY11. We expect the ROEs for both FY12 & FY13 to be in the high single digit of 8.9%, it said.

“Our fair value for the stock of is based on a PBVR of 0.9x on FY12 BVPS which equates to a PER of 10x . Valuation is undemanding as it is currently trading at less than 1.0x of its book value as at end of Dec’11 and a discount to the average PBVR of the sector.

“We believe that concerns of liquidity of the stock, lower ROE compared to peers, the lack of regional exposure with the bulk on loans on hire purchase (29.3% of total loans) and mortgages (27.2% of total loans) which are expected to be challenging moving forward have been priced in by market,” said MIDF Research.



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DiGi advances on interim dividend, capital distribution plans

KUALA LUMPUR (April 26): Shares of DIGI.COM BHD [] advanced on Thursday after the company declared its first interim dividend for the year as well as a capital distribution exercise.

At 9.07m, DiGi rose three sen to RM3.99 with 116,400 shares traded.

In a statement Wednesday, DiGi said revenue first quarter ended March 3, 2012 grew 9.7% to 1.57 billion from RM1.43 billion in 2011, due mainly to data revenue which accounted for close to 31% of total revenue.

Earnings per share was 4.12 sen compared to 4.26 sen a year earlier.

DiGi will pay a first interim tax exempt dividend of 5.9 sen per ordinary share for the financial year ended Dec 31, 2012 on June 8 June this year.

In a separate announcement, DiGi said its wholly owned unit DiGi Telecommunications Sdn Bhd (DiGiTel) will undertake a capital distribution of about RM495 million to DiGi on the basis of cash repayment of 99 sen for every one existing share of RM1 each in DiGiTel.

“Upon receipt of the cash proceeds from DiGiTel, DiGi expects to distribute approximately RM495 million (less expenses) representing 64 sen per share to its shareholders,” it said.

MIDF Research has maintained its Buy rating on Digi with a target price of RM4.35 and said the company’s 1Q12 earnings were within expectations.

“Digi’s 1Q12 earnings came in within ours and consensus’ expectations at 24.1% and 24.0% of respective full year estimates,” it said in a note Thursday.

The research house said DiGi’s data revenue would continue to be robust in FY12, adding that the data demand would continue apace and Digi will be a main beneficiary.

It said DiGi expects data revenue will continue to be robust especially as it aims to acquire higher small and medium screen subscribers, which gives better margin.

“It maintains its guidance of a mid to single high digit revenue growth for FY12, and about 46% EBITDA margins,” it said.

“We maintain our FY12 and FY13 earnings estimate for Digi given its performance was within our expectation. We continue to like Digi for its continuing commitment to reward its shareholders. We opine that the growth in data will continue to be robust especially with the adoption of LTE.

“We maintain our BUY recommendation as the expected total return is only marginally below our 15% threshold. Our TP is based on the Discounted Dividend Model, with an estimated long-term dividend payout ratio of 100% and a WACC of 9.04%,” it said.



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MIDF Research maintains Buy on DiGi, target price RM4.35

MIDF Research has maintained its Buy rating on Digi with a target price of RM4.35 and said the company’s 1Q12 earnings were within expectations.

“Digi’s 1Q12 earnings came in within ours and consensus’ expectations at 24.1% and 24.0% of respective full year estimates,” it said in a note Thursday.

The research house said DiGi’s data revenue would continue to be robust in FY12, adding that the data demand would continue apace and Digi will be a main beneficiary.

It said DiGi expects data revenue will continue to be robust especially as it aims to acquire higher small and medium screen subscribers, which gives better margin.

“It maintains its guidance of a mid to single high digit revenue growth for FY12, and about 46% EBITDA margins,” it said.

“We maintain our FY12 and FY13 earnings estimate for Digi given its performance was within our expectation. We continue to like Digi for its continuing commitment to reward its shareholders. We opine that the growth in data will continue to be robust especially with the adoption of LTE.

“We maintain our BUY recommendation as the expected total return is only marginally below our 15% threshold. Our TP is based on the Discounted Dividend Model, with an estimated long-term dividend payout ratio of 100% and a WACC of 9.04%,” it said.



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MIDF Research maintains Neutral on Nestle, target price RM54.55

KUALA LUMPUR (April 26): MIDF Research has maintained its Neutral rating on Nestle (M) Bhd with a target price of RM54.55,and said Nestle’s 1QFY12 net profit was within expectations, accounting for 30.7% and 32.0% of its own and consensus full year estimates respectively.

“We are maintaining our Target Price (TP) for Nestle at RM54.55.

“The TP is derived from Dividend Discount Model, assuming 7.2% WACC and 3.5% growth rate. We continue to like Nestle as a good defensive stock to hold given its reputable household brands and inelastic products demand,” it said in a note Thursday.



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MIDF Research downgrades TH Plantation to Trading Sell, cuts TP to RM2.12

KUALA LUMPUR (April 25): MIDF Research has downgraded TH PLANTATION []s Bhd to Trading Sell from Neutral and cut its target price to RM2.12 from RM3 previously following its earnings revision for the company.

In note Wednesday, MIDF Research however said it was applying a higher target PER in order to reflect TH Plant’s stable and mature profile.

The research house said its new target price of RM2.12 was derived from 13.0x EPS12 which was one standard deviation above its 3-year historical average of 10.8x (which is our previous valuation).

“We believe that the positive news flow of its future expansion has been priced in and the weak 1Q12 numbers would dampen investors’ sentiment and be an excuse for investors to take profit. At current price TH Plant is pricey, trading at 17.2x forward PER.

“We expect TH Plantation to come under selling pressure in the short term and hence downgrade it to Trading Sell,” it said.



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MIDF Research upgrades E&O to Buy, target price RM 1.70

KUALA LUMPUR (April 24): MIDF Research has upgraded Eastern & Oriental Bhd to a buy with a target price of RM 1.70 after the company proposed to acquire an office cum retail building known as Princes House, located at 37-39 Kingsway, London WC2b 6TP, United Kingdom.

In a note Tuesday, MIDF Research said The purchase consideration is £20.3m which translates to about RM100.9m (based on £1:RM4.983 @ 23 Apr 12).

The research house said that assuming the remaining 90% of the building is fully leased out with rental rate similar to that paid by the ground floor tenant, Prince House would generate gross rental yield of about 6.5%.

However, MIDF Research said it did not expect the vacant space to be filled up so soon.

“At current juncture, E&O has not disclosed its future plans for the building. Hence, pending further details, we are maintaining our earnings forecast for E&O.

“We are upgrading our Recommendation for E&O to BUY with an unchanged target price of RM1.70 which is a 20% discount against RNAV of RM2.12,” it said.

MIDF Research said the recent retracement of property companies’ share prices has rendered E&O’s share price attractive, with projected total return of more than 15%.

“At yesterday’s closing price of RM1.42, investors would be paying 38% lower than what Sime Darby paid for its stake in E&O at RM2.30 per share,” it said.



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MIDF Research maintains Neutral on UOA Development, TP RM1.57

KUALA LUMPUR (April 23): MIDF Research has maintained its Neutral rating UOA Development Bhd with an unchanged target price of RM1.57 after the company said it was disposing its investment PROPERTIES [] in Bangsar South.

UOA development (UOA) has offered to sell a 14-storey office building at Bangsar South to DKLS Industries Berhad at a total consideration of RM93.8 milion.

The 14 storey building is currently vacant and is part of The Horizon Phase 2, Bangsar South development.

“Valuation: We have made a slight adjustment to our forecast for FY12 and FY13 due to the one off disposal gain.

“Nevertheless, we are maintaining our NEUTRAL recommendation for UOA with target price of RM1.57. The one off gain will not affect our target price as we are ascribing PER of 7X against FY12 normalised EPS of 22.4sen.” said MIDF Research on Monday.



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Stocks to watch: MMC Corp, Gamuda, Destini Prima, building materials

KUALA LUMPUR (April 21): Stocks on Bursa Malaysia could trade range bound next week as investor sentiment remains edgy with the global economic outlook situation still remaining hazy at best, underpinned by the disappointing U.S. economic data last week stirring doubts about the strength of the recovery of the economic giant.

However, the local market could see some excitement over developments from the Klang Valley Mass Rapid Transit's (MRT) project, which could spur activities for building materials players as well.

Among the stocks that could be in focus are MMC Corp Bhd, GAMUDA BHD [] and Destini Prima Bhd.

The MMC Corp Bhd-GAMUDA BHD [] joint venture (JV) has accepted the RM8.28 billion Klang Valley Mass Rapid Transit's (MRT) underground works package.

In separate statements to the exchange last Friday, MMC and Gamuda said their equally-owned JV entity MMC Gamuda KVMRT (T) Sdn Bhd had secured the contract from Mass Rapid Transit Corp Sdn Bhd (MRT Corp) on Thursday.

Destini Prima Bhd, which was formerly known as SATANG HOLDINGS BHD []) has secured a two-year contract worth RM7.90 million from the Ministry of Defence Malaysia.

The company said on April 20 that its wholly owned unit Destini Prima Sdn Bhd (formerly known as Satang Jaya Sdn Bhd) had entered into a contract with MinDef to supply Anti-Tank Ammunition 40mm Rocket Propelled Grenade (RPG) for the arm for a period of two (2) years commencing from 30 April 2012 to 31 March 2013.

On thee outlook for the local market, MIDF Research head of equity Syed Muhammed Kifni said that the extended streak of net purchases of Bursa-listed shares by foreign investors that began in mid-February came to an end in the second week of April.

Subsequently, he said there was a waning strength of average foreign net purchases which conceivably underlies the difficulty of the FBM KLCI to sustain itself above the 1,600 points levels during the past weeks.

The ember of Euro debt crisis which recently re-flared in Spain may have offered the fundamental excuse for some investors to turn ‘risk-off’, he said.

Nonetheless, Syed Muhammed said still healthy internal factors helped provide a backstop against the feeble external dynamics.

“Hence the local market undercurrent is expected to remain positive and the benchmark index should again attempt to knock against the psychological 1,600 points ceiling in the coming days.

“Moreover the US Fed is anticipated to keep the key rates unchanged during its midweek meeting, thus we expect the FBM KLCI to continue trading range bound this week between its immediate technical support and resistance of 1,580 points and 1,610 points respectively,” he said.



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MIDF Research starts coverage on CMMT with Neutral rating, target price RM1.51

KUALA LUMPUR (April 18): MIDF Research has initiated coverage on Capita Malls Malaysia Trust (CMMT) with a Neutral recommendation, setting a target price of RM1.51 based on the Gordon Growth Model (Required rate of return: 8.20%, perpetual growth rate: 3%, forward DPU: 7.9 sen).

In a note Wednesday, the research house said that in the longer term, CMMT had strong growth potential by leveraging on its sponsor’s management expertise, extensive network of tenants and potential yield-accretive asset injection.

“Even though the 5.7% distribution yield of CMMT in FY12 was much lower as compared to the sector average of 7.03%, investor will be compensated by higher free float (in absolute value) as well as more resilient earnings growth,” it said.



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MIDF Research maintains Negative on shipping sector

KUALALUMPUR (April 17): MIDF Research has maintained Negative on the shipping sector and said the Baltic Dry Index (BDI) had slumped to a 3-year low of 647 points on Feb 3, 2012.

In a note April 17, the research houses said that nonetheless, the benchmark for dry commodities freight rate had since gradually ascended to 976 points, and is trending upward towards 1,000 points.

“Despite its recent recovery, the BDI is still about -37% below its last year average of 1,549 points. The average capesize TCE/day rate improved +23.8% mom to USD 7,080, hitting the breakeven range of USD7,000 – 8,000.

“However, we opine that further major rebound in freight rate is unlikely to occur in the near term hence we maintain our negative view on the shipping sector,” said MIDF Research.



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MIDF Research maintains Neutral on Hartalega, target price RM7.06

KUALA LUMPUR (April 16): MIDF Research has maintained its Neutral recommendation on HARTALEGA HOLDINGS BHD [] with a target price of RM7.06, and it was positive on the glove maker’s Next Generation Integrated Glove Manufacturing Complex (NGC) project.

The research house said it was positive on the project, as the demand for nitrile glove has been growing strongly especially from the developed markets.

“However, we believe that the stock price is ahead of its fundamentals, and factors such as overcrowding of nitrile glove producers, volatility in exchange rate, and increase in nitrile material price will limit the upside potential.

“As the contribution from the NGC Project will only be enjoyed from FY15 onwards, we are maintaining our NEUTRAL recommendation with an unchanged TP of RM7.06, derived from 11x EPS13, based on its 3-year historical PER average,” it said in a note on April 16.



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Stocks to watch Hartalega, Ingress Corp, EITA, and oil gas-related

KUALA LUMPUR (April 7): The FBM KLCI could experience some pullback in the week beginning April 9, as the rally over the past two weeks may not be sustainable given overriding external factors.

World stock markets look poised to fall early next week and safe-haven government debt prices could rally after U.S. employment figures fell short of expectations on Friday, according to Reuters.

U.S. stock futures fell more than 1% and Treasuries prices rallied after U.S. payrolls grew by 120,000 in March, far below the expected gain of 203,000 jobs, it said.

MIDF Research head of equity Syed Muhammed Kifni said that although the FBM KLCI recorded a fresh all-time high of 1,609.33 points last week, the joy was short-lived as the local market was not spared by the global market sell-off.

He said the pullback in global risk assets was triggered by the release of the minutes of recent US Fed meeting, which were interpreted by many as the central bank signaling its hesitation on launching a fresh round of monetary stimulus as the economy improves.

“Additionally, the poor Spanish government bond auction only added fuel to proverbial fire.

“We view the pullback as a clear manifestation that the recent market rally was underpinned mainly by liquidity, rather than valuations,” he said

Syed Muhammad said that nonetheless the streak of net foreign buying of Bursa-listed shares continued unbroken this past week.

Bursa data shows that foreign investors had been net buyers for 35 consecutive trading days until last Thursday, he said.

“We thus see no reason to not to expect a continuation of the streak this week. Hence the underlying market sentiment should remain healthy so long as the liquidity flow into the market remains positive and we are confident that the FBM KLCI will regain the 1,600s level perhaps towards the later part of this week.

“Moreover, our external trade as well as industrial production figures due for release this week might potentially be key market movers. The consensus expectations are pointing towards all-around sequential improvements in the numbers,” he said.

Syed Muhammed said the immediate resistance and support levels for FBM KLCI were pegged at 1,610 points and 1,590 points respectively.

Meanwhile, Affin Investment Bank Bhd vice president and head of retail research Dr Nazri Khan said the FBM KLCI was now ripe for a pullback towards a lower sideways range of 1580-1600 level.

“We reckon the equity optimism will take a mild negative turn following a surprised absence of USA stimulus and Spanish revived fiscal concerns with the bond yields climbing to their highest level in five month (Spanish 10-Year bond rose to 5.8%).

“This has stoked concerns regarding the European debt crisis, boosted safe-haven appeal of the USA dollar and weighed on local risk-taking sentiment,” he said.

Among the stocks that could be in focus are HARTALEGA HOLDINGS BHD [], INGRESS CORPORATION BHD [], EITA Reources Bhd, and oil gas-related counters.

Hartalega is setting up a RM1.5 billion“next generation integrated glove manufacturing complex” (NGC) comprising 70 new high tech production lines.

The company said last Friday that its wholly owned subsidiary Hartalega NGC Sdn Bhd that was incorporated on March 29 is the designated corporate vehicle for the setting up of the NGC project, that is mainly involved in the production of rubber gloves to cater to fast rising global demand.

Ingress Corp Bhd will establish a switching station for TENAGA NASIONAL BHD [] (Tenaga) in a deal worth RM26.6 million. The 275-kilovolt station will be set up at Pantai Remis, Selangor.

In a filing to Bursa Malaysia Securities last Friday, Ingress said Tenaga had issued a letter of intent for the project to a joint venture between two subsidiaries of Ingress, namely, Multi Discovery Sdn Bhd and Ramusa Engineering Sdn Bhd.

Elevator manufacturer and distributor of electrical and electronics equipment EITA Resources Bhd, will be listed on Monday on the Main Board of Bursa Malaysia.

The group’s IPO entails a public issue of 23 million new ordinary shares and an offer for sale of 17 million ordinary shares, at an IPO price of RM0.76 per share.

Of the 23 million new shares, 6.5 million were allocated for public balloting and 3.5 million shares for eligible directors, employees and business associates of the Group.

Oil and gas stocks could attract some investor interest after RHB Research Institute Sdn Bhd on April 6 said it has an Overweight rating on the oil and gas sector and said it was positive on the sector following Petroliam Nasional Bhd’s (Petronas) statement on April 5 that the proposed Refinery and Petrochemical Integrated Development (RAPID) project, to be located in Pengerang, Johor, was progressing as scheduled.

The research house said on Friday that the statement was the closest indication yet that the RAPID would proceed as planned.



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Tambun Indah gets nod to raise RM44.2m

KUALA LUMPUR: Tambun Indah Land Bhd has received shareholders' nod to issue two rights shares plus one free warrant for every five existing ordinary shares held.

In a statement today, the property developer said the proposed renounceable rights with warrants would raise a minimum of RM44.2 million.

It would involve the issuance of 88.4 million new ordinary shares at an indicative rights issue price of 50 sen each and 44.2 million free detachable warrants, it said.

Tambun Indah said most of the proceeds from the rights would be used to part-finance its development projects, including its flagship Pearl City township.

"The total gross development value for Pearl City is estimated to be RM2.8 billion, with the township targeted to be fully developed by 2020," it said.

However, Tambun Indah said, the proposed renounceable rights issue and warrants were still subject to approvals from the Securities Commission and other regulatory authorities.

It said the rights would increase its share capital to RM154.7 million, comprising 309.4 million shares of 50 sen par.

MIDF Investment Bank is the managing underwriter and adviser for the corporate exercise. - Bernama



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MIDF Research maintains Sell call on MAS, target price RM1.35

KUALA LUMPUR (April4): MIDF Research has maintained its Sell rating on Malaysian Arline System Bhd (MAS) with a target price of RM1.35 after the airline unexpectedly discarded its plan to launch a new premium regional airline.

MAS had said that it was slight business module realignment for the regional airline initiative. Strategy and objective of short-haul operation will remain unchanged while the premium regional service will instead offer in-house under MAS brand.

MIDF Research in note Wednesday aid that the decision to scrap the new airline came in as a surprise and would possibly put a question mark on MAS’ ability to execute its turnaround plan.

“There are still many structural weaknesses faced by MAS such as its sliding position in the premium category and over-staffing, which MAS need to tackle.

“Hence, we reiterate our current view with SELL recommendation and our target price to RM1.35 by pegging its Price-to-Book value in FY12 to 1.8 times,” it said.



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