KLCI crosses 1,590-level as blue chips lift

KUALA LUMPUR (May 8): The FBM KLCI closed higher on Tuesday on some mild bargain hunting while regional markets ended mixed, albeit recovering from sharp decline on Monday after election results in Europe spooked investors.

The FBM KLCI rose 5.73 points to close at 1,590.60 on Tuesday, lifted by gains including at BAT, Petronas-linked counters and Genting.

Gainers beat losers by 404 to 307, while 357 counters traded unchanged. Volume was 1.27 billion shares valued at RM1.24 billion.

Uncertainty over the implications of the Greek and French elections for Europe's efforts to resolve its debt crisis sent the euro and shares lower on Tuesday and supported safe-haven German government bonds, according to Reuters.

Attention is focused on Greece where politicians are struggling to form a government after voters plunged their country into limbo in Sunday's election. The uncertainty has reignited fears its hard-fought bailout deal could unravel, forcing the country's exit from the euro, it said.

At the regional markets, the Shanghai Composite Index shed 0.12% to 2,448.88, Hong Kong’s Hang Seng index was down 0.25% to 20,484.75, while Japan’s Nikkei 225 rose 0.69% to 9,181.65, South Korea’s Kospi gained 0.54% to 1,967.01, Taiwan’s taiex added 0.10% to 7,545.71 and Singapore’s Straits Times Index.

On Bursa Malaysia, BAT and Petronas Dagangan added 52 sen each to RM55.68 and RM19.94, Tasek and Dutch Lady were up 26 sen each to RM9.29 and RM33.30, Kulim 21 sen to RM4.45, MKH 20 sen to RM2.40, GAB 18 sen to RM13.34, Ekovest 17 sen to RM2.65, Iretex 16 sen to RM1.30, Permaju 14.5 sen to 87.5 sen, Petronas Gas 14 sen to RM17, Genting 10 sen to RM10.66 and Petronas Chemicals two sen to RM6.57.

Ariantec was the most actively traded counter with 76.74 million shares done. The stock fell half a sen to 24.5 sen.

Other actives included Naim indah Corp, Compugates, Sanbumi, TMS, Harvest, Permaju, JCY and Metronic.

Decliners included Jaya Tiasa, Toyo Ink, MMHE, Lafarge Malayan Cement, Sarawak Oil Palms, JCY, Top Glove, Ibraco and IJM land.



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MKH unit gets contract worth total RM675m over five years

KUALA LUMPUR (Apr 3): A wholly-owned unit of MKH Bhd has been awarded a turnkey CONSTRUCTION [] contract (TCC) worth a total of RM675 million over five years by Puncak Alam Resources Bhd (PAR) to build residential and commercial PROPERTIES [] in Kuala Selangor.

The company said on Tuesday that its unit Pelangi Seri Alam Development Sdn Bhd (formerly known as Fresh Partners Malaysia Sdn Bhd) had been awarded the TCC for the project on the land measuring about 550 acres in the Jeram and Ijok in the district of Kuala Selangor.

The company said the contract value for the Project was approximately RM135 million per year over five years, and that PAR would award the turnkey construction packages to Pelangi Seri Aalam progressively based on the development phases.

MKH said the TCC was expected to contribute positively to its earnings of MKH Group for the financial years during the Tenor.



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MKH sees 350,000 shares crossed at 14.3% below Thursday closing price

KUALA LUMPUR (March 23): MKH Bhd (formerly METRO KAJANG HOLDINGS BHD []) had 350,000 of its shares transacted in an off-market deal at 1.73 each on Friday.

Stock market data showed the transaction price was a steep 29 sen or 14.3% below Thursday’s closing price of RM2.02.

At midday, the property-based MKH’s share price was down three sen to RM1.99 with 12,500 shares done.



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MKH soars to 15-year high after selling non-halal unit

KUALA LUMPUR: Shares in MKH Bhd climbed to their highest in 15 years in active trading as the company attracts fresh interests from institutional investors after having sold its non-halal livestock farming business last month.

Formerly known as Metro Kajang Holdings Bhd, MKH closed three sen higher at RM1.89 yesterday, giving it a market capitalisation of RM500.1 million, the highest since October 1997.

The counter has gained about 16.7% since it announced on Dec 29, 2011 the sale of its pig farm and pork retailing business to Thailand’s agricultural giant Charoen Pokphand Foods Pcl for RM64 million. The sale was completed on Jan 16.

MKH’s non-halal livestock farming business comprised Makin Jernih Sdn Bhd (MJSB) and its subsidiaries — Chau Yang Farming Sdn Bhd, Tip Top Meat Sdn Bhd and AA Meat Shop Sdn Bhd.

Fund managers said MKH’s disposal of its non-halal livestock farming business was beginning to attract institutional investors that seek syariah-compliant stocks as well as government-linked funds such as Employees Provident Fund, Lembaga Tabung Haji and Permodalan Nasional Bhd (PNB).



“MKH can be exciting. It still has close to 242.8ha of landbank in Kajang/Semenyih that are carried at less than RM10 per square foot, and have mostly converted for development purposes. Its 16,000ha plantation operations in Indonesia also look promising,” said a fund manager.

The Edge weekly reported last month that MKH’s main rationale for exiting its non-halal business, which it ventured into in 2006, was to focus on its core business in property development and oil palm plantation in Indonesia, which is set to become a major earnings contributor to the group in the next five years.

MKH had also said it hoped to get on the radar of analysts and the syariah or government-linked funds after the disposal.

For FY11 ended Sept 30, 2011, MKH posted a net profit of RM38.36 million on the back of RM342.35 million in revenue.

While the group’s total net borrowings of RM315 million as at Sept 30 translated into a net gearing of 42.9% against shareholders’ funds of RM734.21 million, the ratio is set to reduce with the RM64 million proceeds from the disposal. MKH’s net assets per share was at RM2.77.


This article appeared in The Edge Financial Daily, February 3, 2012.



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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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Thailand’s Charoen Pokphand buying MKH’s food processing biz for RM64m

KUALA LUMPUR (Dec 29): 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.

MKH Bhd, formerly METRO KAJANG HOLDINGS BHD [], said on Thursday it was selling its unit Makin Jernih Group to Charoen Pokphand Foods (M) Sdn Bhd under its plan to dispose off its non-core business.

It said the group’s focus was on its core business in property development, property investment, CONSTRUCTION [] and oil palm PLANTATION [].

“The proposal disposal will enable the group to raise proceeds to be utilised for the repayment of bank borrowings and working capital,” it said.

The Makin Jernih Group comprises of Makin Jernih Sdn Bhd and its subsidiaries, Chau Yang Farming Sdn Bhd, Tip Top Meat Sdn Bhd and AA Meat Shop Sdn Bhd.

Chau Yang Farming’s core activities are livestock farming and oil palm cultivation, Tip Top Meat is involved in food processing and trading while AA Meat Shop trades in food and meat related products.

For the financial year ended Sept 30, 2011, Makin Jernih recorded an unaudited consolidated profit after tax of RM3.0 million while its unaudited consolidated net assets was RM61.2 million.

“The sale consideration of RM64.0 million represents a premium of approximately 4.4% or RM2.8 million above the consolidated net asset of Makin Jernih based on the unaudited accounts of Makin Jernih as at Sept 30, 2011,” it said.



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