Market lacklustre as investors cautious of Greece's reforms commitment

KUALA LUMPUR (Feb 14): Blue chips reversed into the red after the first hour of trading on Tuesday following the lack of follow-through buying support, in line with the cautious regional markets.

Reuters reported that the initial relief over Greece's approval of harsh austerity measures in exchange for crucial aid gave way to doubts about Athens' ability to pursue the reforms, with social unrest intensifying.

At 10.02am, the FBM KLCI was down 1.06 points to 1,561.76. Turnover was 620.93 million shares valued at RM300.42 million. Losers beat gainers 331 to 170 while 289 stocks were unchanged.

CIMB Equities Research in its technical outlook that it was beginning to see more weakness creeping into the KLCI index.

“The past two candles have been small with Friday’s candle forming a bearish harami pattern. The strong volume run-up the past week could potentially be a buying climax with prices stalling at the 1,560-1,565 resistance level. A close below the 1,550 levels would likely confirm the reversal and send the index back towards 1,524 and 1,500 next.

“Anything above 1,565 should be viewed as a bonus to lock in profits at a higher level. A break below 1,500 would mean that 1,565 is most likely going to be a very significant top that is unlikely to be challenged for at least a couple of years,” said CIMB Research’s technical outlook for the market.

KLK was the top loser, down 38 sen to RM25.60, BAT 20 sen to RM51.30, HL Bank 10 sen to RM11.46, Tenaga seven sen to RM6.12 and PetDag six sen to RM18.72.

Naim Indah Corp fell seven sen to 49 sen with 34.89 million shares done.

JCY fell five sen to RM1.30. CIMB Research said the rally in JCY’s share could be over and looks poised for a deep correction.

“We believe that it is time to get out and lock in gains. Even if there is upside left, it is likely limited to RM1.50-1.60 levels. The key level to watch out for is RM1.31, where a break below would likely signal that prices are headed back to RM1.08 and RM1.03 next, where the latter is its 50-day SMA. Sell now,” it said in its technical outlook.

Among the gainers were Petronas Gas, up 18 sen to RM16.78, Ta Ann 12 sen to RM5.89, MNRB 11 sen to RM2.80 while PetChem gained six sen to RM7.01.



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AM Best affirms Malaysian Reinsurance’s financial strength rating of A-

KUALA LUMPUR (Jan 27): A.M. Best Co. affirmed the financial strength rating of A- (excellent) and issuer credit rating of “a-” of MNRB HOLDINGS BHD []’s unit Malaysian Reinsurance Bhd (Malaysian Re). The outlook for both ratings is stable.

It said in a statement on Friday the ratings reflected Malaysian Re’s adequate capitalisation, improving trend in underwriting performance and consistent positive investment income attributed to a prudent approach.

“The ratings also acknowledge Malaysian Re’s leading market position in Malaysia, its key country of exposure,” said A.M. Best, which is the world's oldest and most authoritative insurance rating and information source.

It said Malaysian Re’s risk-based capitalidation had slightly strengthened for fiscal year (FY) 2010 ended March 31, 2011, due to more favourable overall income stemming from an improvement of both the underwriting and investment performance, and greater retention of earnings.

“A.M. Best expects Malaysian Re’s capital position will be maintained at a similar level in the near future due to the composition of the company’s underwriting portfolio, investment strategy and quarterly monitoring of the local risk-based capitalisation,” it said.

It pointed out that due to its national reinsurer background, almost three quarters of Malaysian Re’s business was derived from the Malaysian market.

“The company’s underwriting margin had been in an increasing trend over the past three years, primarily reflecting the better quality of its Malaysian portfolio, while the loss ratios of its overseas portfolio had remained volatile.

“A.M. Best anticipates that losses arising from the Thai flooding will have minimal impact on the company’s underwriting performance and on its risk-based capitalidation for FY 2011 due to management’s focus on the bottom line and strengthening the capital base,” it said.

However, A.M. Best said that partially offsetting rating factors are the keen competition in overseas markets, potential discontinuation of the voluntary cession and the impact in the long run on the company’s profitability.

It said that due to the market competition in Asia Pacific, more capital is required to support Malaysian Re’s growth and expansion to overseas markets.

In addition, if the actual premium growth is higher than projected, the stability of the ratings could be jeopardised if the company's current level of risk-adjusted capitalisation cannot be maintained.



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MNRB Hldgs names CEO

MNRB Holdings Bhd has appointed Mohd Din Merican president and chief executive officer (CEO).

In a statement to Bursa Malaysia, MNRB said prior to the appointment, Mohd Din was a former chief executive officer of Etiqa Insurance Bhd.

He has a Bachelor of Commerce (honours) from Carleton University, Ottawa, Canada, it said.

MNRB, formerly known as Malaysian National Reinsurance Bhd, is an investment holding company with units such as Malaysian Reinsurance Bhd, Takaful Ikhlas Sdn Bhd and MNRB Retakaful Bhd. -- Bernama



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MNRB appoints Etiqa Insurance CEO as president, CEO

KUALA LUMPUR (Jan 9): MNRB HOLDINGS BHD [] has appointed Etiqa Insurance Bhd chief executive officer Mohd Din Merican as president and CEO.

The reinsurer said on Monday his appointment takes effect on the same day.

Mohd Din, 50, was the CEO of Etiqa Insurance from Nov 1, 2008 to Dec 31, 2011.

Prior to that he was principal officer & general manager of Scor Switzerland Ltd from Sept 2000 to Oct 31, 2008.

He was deputy general manager - business development at Capital Insurance Bhd from July 1, 1995 to Aug 31, 2000.

Mohd Din was a manager at Inchcape Insurance Brokers (M) Sdn Bhd from May 1, 1994 to June 31, 1995.

From Aug 5, 1985 to April 30, 1994, he was a senior manager for underwriting at South East Asia Insurance Bhd.



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Stocks to watch: MAS, Boustead, Cypark, SMR, VS Industry

KUALA LUMPUR (Jan 1): The local stock market could see some profit taking in the first week of the trading year day after the recent run-up and last-minute window dressing activities. The rally was underpinned by local funds and pushed the FBM KLCI into positive territory for 2011.

The 30-stock index rallied more than 45 points over a seven-day trading period to end 2011 at 1,530.7. Total market capitalisation increased by RM11.38 billion over the same period to end the trading year at RM1,284.55 billion.

Among the stocks which could see trading interest following corporate developments include MALAYSIAN AIRLINE SYSTEM BHD [] (MAS), Boustead Holding Bhd, environmental TECHNOLOGY [] and engineering specialist CYPARK RESOURCES BHD [], SMR TECHNOLOGIES BHD [], VS Industry Bhd and SILVER BIRD GROUP BHD [].

Last Friday, MAS unveiled its new management structure which included several new business units, the entry of two senior aviation experts and the departure of several top officials.

Focus would be on MAS' long-haul business, with its group chief executive officer Ahmad Jauhari Yahya taking on the role as CEO of long-haul. His deputy, Mohammed Rashdan, who is CEO of short-haul, would head the short-haul, group finance, aircraft finance & management, and in the interim helm commercial.

BOUSTEAD HOLDINGS BHD []’s 51% owned MHS Aviation Bhd is acquiring 16 aircraft for RM586.20 million from DRIR Equities Sdn Bhd. DRIR owns the other 49% of MHS.

Cypark’s earnings fell 21.5% to RM4.11 million in the fourth quarter ended Oct 31, 2011 from RM5.24 million a year ago due to lower profit margins than the previous quarter. Gross profit margin was 25%, a decline from the 36% a year ago when it benefited from design income fee and good material rate negotiated in the quarter.

SMR’s unit SMR HR Group Sdn Bhd has secured a RM14 million contract from the Human Resources Ministry. The one-year contract is to implement a trainining programme known as Accelerated Skills Enhancement Training Programme (ASET).

VS Industry Bhd’s earnings fell 10.9% to RM11.59 million in the firstquarter ended Oct 31, 2011 from RM13.01 million a year ago due to stiffer competition and losses from its China associate. Its revenue increased 14.1% to RM282.43 million from RM247.39 million while earnings per share were 6.39 sen compared with 7.27 sen.

Silver Bird called off its proposed placement exercise and a subscription commitment of up to RM100 million with GEM Global Yield Fund. It had to abort the proposals as Bursa Malaysia Securities Bhd rejected its waiver from complying with all the requirements to undertake back-to-back placements.

Malaysian Rating Corp Bhd (MARC) lowered its rating on MNRB Holdings Bhd’s (MNRB) RM200 million Islamic medium term notes (IMTNs) to A+IS from AA-IS after the reinsurer suffered two consecutive years of losses and thin cash flow coverage measures.

The ratings agency said while the outlook for the debt notes was stable, the downgrading reflected weakened holding company level financial metrics after losses for FY ended March 31, 2010 (FY2010) and FY2011.

JAKS Resources Bhd posted net losses of RM25.13 million in the fourth quarter ended Oct 31, 2011 from a net profit of RM1.19 million a year ago due to goodwill impairment adjustment of RM25.90 million.

Its revenue rose 9% to RM93.24 million from RM85.74 million mainly due to higher revenue recognition of works done for projects in the CONSTRUCTION [] division. Loss per share was 5.73 sen compared with earnings per share of 0.27 sen.

For the financial year ended Oct 31, 2011, it swung into net losses of RM22.89 million compared net profit of RM2.28 million in the previous financial year.



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MNRB up in line with firm market, ignores downgrade

KUALA LUMPUR (Dec 30): Shares of MNRB HOLDINGS BHD [] rose slightly in thin trade on Friday, in line with the firmer market sentiment, as investors ignored the downgrade by Malaysian Rating Corp Bhd (MARC).

At 3.23pm, MNRB was up three sen to RM2.53. There were 81,500 shares done at prices ranging from RM2.47 to RM2.53.

The FBM KLCI was up 7.69 points to 1,514.38. Turnover 809.11 million shares valued at RM691.29 million. There were 383 gainers, 316 losers and 318 stocks unchanged.

MARC had on Friday lowered its rating on MNRB’s RM200 million Islamic medium term notes (IMTNs) to A+IS from AA-IS after the reinsurer suffered two consecutive years of losses and thin cash flow coverage measures.

It said while the outlook for the debt notes was stable, the downgrading reflected weakened holding company level financial metrics after losses for FY ended March 31, 2010 (FY2010) and FY2011.



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MARC downgrades MNRB’s RM200m Islamic debt notes to A+

KUALA LUMPUR (Dec 30): Malaysian Rating Corp Bhd (MARC) lowered its rating on MNRB HOLDINGS BHD []’s (MNRB) RM200 million Islamic medium term notes (IMTNs) to A+IS from AA-IS after the reinsurer suffered two consecutive years of losses and thin cash flow coverage measures.

The ratings agency said on Friday while the outlook for the debt notes was stable, the downgrading reflected weakened holding company level financial metrics after losses for FY ended March 31, 2010 (FY2010) and FY2011.

“The lowered rating also incorporates MNRB’s reliance on externally provided liquidity to address the forthcoming December 2012 notes maturity,” it said.

MARC said the losses were due largely to lower dividends upstreamed to the holding company by principal reinsurance subsidiary Malaysian Reinsurance Bhd (Malaysian Re). These had reduced MNRB’s shareholders’ funds and exerting upward pressure on the holding company’s double leverage ratio.

The ability of MNRB’s operating subsidiaries to upstream higher dividends, meanwhile, continues to be inhibited by the need for Malaysian Re to maintain a larger capital buffer under a risk-based capital (RBC) regime as well as the still modest profits generated by MNRB’s operating subsidiaries relative to Malaysian Re.

As for the stable outlook on the rating, MARC said this reflected adequate mitigation of refinancing risk associated with the notes which are due in their entirety on Dec 10, 2012 and acknowledged the flexibility which MNRB had with regard to selling down of its stake in Takaful IKHLAS Sdn Bhd (Takaful IKHLAS) to pare down debt.

MARC said Malaysian Re remains the main contributor of the group’s earnings, accounting for 85% of the group’s total revenue in FY2011.

It contributed RM180.0 million of the reinsurance segment’s operating profit in FY2011, higher than the group’s RM158.1 million consolidated operating profit before incorporating its share of associate’s results.

It added the reinsurer continues to maintain a leadership position in the domestic reinsurance market with a market share of over 50% of net reinsurance premiums.

Malaysian Re continues to derive over 70% of its premium volume from its home market, of which voluntary cessions continue to be a key component, while growing its presence in the overseas reinsurance market.

The reinsurer continues to maintain a solid financial profile that is characterised by strong risk- adjusted capitalisation, conservative investment risk tolerance and, favourable underwriting and operating profitability despite the inherent earnings volatility in certain business lines with high exposure to natural catastrophes.

MNRB’s other operating subsidiaries include Takaful IKHLAS, an eight-year-old takaful operator which has seen fairly strong growth in its family takaful business since its inception. The growth and expansion of the takaful business has necessitated significant capital support from MNRB and increased debt leverage at the holding company as a consequence.

“The takaful operator does not contribute enough profitability as yet to offset the capital support-related pressure on the holding company’s financial profile,” it said.

According to MARC, during the six months to Sept 30, 2011 (1HFY2012), MNRB injected RM100 million of new equity capital into Takaful IKHLAS to prepare for the implementation of the takaful RBC framework in 2012.

“MNRB has the option to sell down its equity holdings in the takaful operator to a strategic business partner, although the timing remains uncertain. MARC believes that the sell-down strategy could hold the key to securing a more immediate improvement in the holding company’s credit profile and adapting to a more challenging competitive landscape ahead for takaful operators,” it said.

The stable outlook reflects expectations that the maturing notes will be refinanced in an orderly manner and that MNRB will manage growth of its operating subsidiaries in the next 12 months such that additional pressure on holding company leverage is mitigated.



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Provisions for Thailand floods affect MNRB’s 1HFY12 claims ratio

MNRB Holdings Bhd (Nov 25, RM2.66)
Downgrade to underperform at RM2.86 with revised fair value of RM2.81 (RM3.40): MNRB’s 1HFY12 ending March net profit of RM37 million (-22% year-on-year [y-o-y]) was below our expectations, coming in at 28% of our full-year earnings forecast. The key variance to our forecast was the higher than expected 1H claims ratio for its reinsurance subsidiary, Malaysian Re of 65% (against our estimate of 60% for the full year).

The reason for the higher-than-expected claims ratio was due to provisions made in anticipation of the losses arising from the floods in Thailand. This resulted in MNRB’s claims ratio for 2QFY12 to be significantly higher y-o-y and quarter-on-quarter by 11 percentage points (ppt) and 13ppt respectively to 73%. This brought its 1HFY12 claims ratio to 65%. MNRB made a total provision of RM55 million for the expected losses, although we understand that MNRB is being conservative as the actual losses could be lower than the provisions. As such, there could be some writeback in the coming quarters.

However, given that the exact losses are still uncertain, we are increasing our claims ratio assumption for FY12 to 66% (from 60% previously) to be conservative. We are leaving our claims ratio assumption for FY13/FY14 unchanged at 60.5% per year.

The upside risks include: (i) stronger than expected premium growth; (ii) lower than expected jump in claims ratio; and (iii) mark-to-market gain on investments.

Our FY12 earnings forecast is reduced by 37.4% after increasing our claims ratio assumption for the year to 66% (from 60% previously).


We are now more cautious on MNRB’s earnings outlook given its increased claims ratio resulting from the expected losses from the Thailand floods. We had previously highlighted that MNRB’s international reinsurance treaties would have limited impact due to the capping of its losses, as was the case with the Japanese earthquake. However, it seems that even with the cap, the losses could still have a significant impact on MNRB’s earnings as indicated by the RM55 million provisions made (against Japanese earthquake of only about RM20 million). Unlike the losses arising from the Japanese earthquake, we believe MNRB’s exposure in Thailand is a lot more in volume. As such, we are wary that after further assessments of the losses in Thailand, MNRB might be further exposed to more losses in the coming quarters. We are therefore downgrading our call on the stock to “underperform” (from “market perform”) with a new fair value of RM2.81 (from RM3.40 previously) based on 0.6 times FY11 price-to-net tangible assets ratio. — RHB Research, Nov 25


This article appeared in The Edge Financial Daily, November 29, 2011.



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KLCI falls 1.14%, blue chips weigh

KUALA LUMPUR (Nov 25): The FBM KLCI closed lower on Friday, in line with key regional markets mired in the red as simmering fears over the euro zone debt crisis and the outlook for the global economy kept investors on the sidelines.

The extended weekend with the Awal Muharram public holiday next Monday also gave local investors an excuse to take profit on blue chip stocks that had made some gains over the past two days.

The FBM KLCI closed 1.14% or 16.44 points lower at 1,431.55, weighed by losses including at BAT, MISC, Genting and PPB.

Losers beat gainers by 463 to 298, while 256 counters traded unchanged. Volume was 1.58 billion shares valued at RM1.09 billion.

At the regional markets, Hong Kong’s Hang Seng Index fell 1.37% to 17.689.48, Taiwan’s Taiex lost 1.16% to 6,784.52, South Korea’s Kospi was down 1.04% to 1,776.40, the Shanghai Composite Index fell 0.72% to 2,380.22, Japan’s Nikkei 225 edged down 0.06% to 8,160.01 while Singapore’s Straits Times Index fell 1.24% to 2,643.93.

On Bursa Malaysia, BAT was the top loser and fell RM1.84 to RM45.40, MISC lost 33 sen to RM5.80, Genting and MMHE fell 26 sen each to RM10.02 and RM5.60, Tradewinds 21 sen to RM9.28, PPB and MNRB 20 sen each to RM16.06 and RM2.66, QSR 19 sen to RM5.70, while DKSH lost 17 sen to RM2.01.

Among the gainers, Nestle rose 30 sen to RM50.90, Hong Leong Bank up 22 sen to RM10.42, F&N 20 sen to RM17.90, Knusford and TDM 16 sen each to RM1.95 and RM3.45, while Supermax, Tecnic and UMW added 13 sen each to RM3.55, RM2.85 and RM6.88 respectively.

Meanwhile, the actively traded counters included Sumatec, MUI Industries, JCY, Compugates, Tiger Synergy and MBF Holdings warrants.



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KL shares close lower

Shares of the following companies had unusual moves in Malaysia trading. Stock symbols are in parentheses and prices are as of the close in Kuala Lumpur.

The FTSE Bursa Malaysia KLCI Index fell 1.1 per cent to 1,431.55, its lowest since Oct. 12. The gauge dropped 1.6 per cent this week, its fourth weekly decline. The market will be shut on Nov. 28 for a public holiday.

Ann Joo Resources Bhd, a steelmaker, declined 4 per cent to RM1.90, its lowest level since Oct. 4. The company had a third-quarter net loss of RM24.5 million (US$7.7 million), compared with a profit of RM10.4 million a year earlier.

Coastal Contracts Bhd, a shipbuilder, slid 3.7 per cent to RM1.85, the steepest retreat since Nov. 1. Third-quarter profit dropped to RM36.7 million from RM53.6 million a year earlier.

Genting Bhd, a casino, power and plantation group, dropped 2.5 per cent to RM10.02, its lowest close since Oct. 25. Third-quarter net income fell 22 per cent from a year earlier to RM597.2 million.

MISC Bhd, the world’s largest owner-operator of liquefied natural gas tankers, sank 5.4 per cent to RM5.80, its lowest since Oct. 11. MISC said it will stop operating container vessels after the unit lost US$789 million in three years. The move will result in a one-off US$400 million charge this year, MISC said in a statement.

MNRB Holdings Bhd, a reinsurance company, dropped 7 per cent to RM2.66, the most since November 2008. MNRB had a second-quarter net loss of RM5.9 million, compared with a profit of RM21.3 million a year earlier.

Muhibbah Engineering (M) Bhd, a builder, added 1.9 per cent to RM1.09. Third-quarter net income doubled to RM16.8 million from a year earlier. -- Bloomberg



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KLCI extends losses at mid-day break

KUALA LUMPUR (Nov 25): The FBM KLCI extended its losses at the mid-day break on Friday as key regional markets mostly remained in negative territory, as investor sentiment continued to be jittery on concerns of a wider impact from the eurozone debt crisis.

Asian markets fell as statements by German and French officials convinced markets that leaders were no closer to a consensus on how to contain the euro-zone debt crisis, according to Reuters.

The FBM KLCI lost 13.56 points to 1,434.43 at 12.30pm, weighed by losses at blue chips including Genting, Axiata and Petronas Gas.

Losers led gainers by 372 to 222, while 264 counters traded unchanged. Volume was 889.02 million shares valued at RM480.66 million.

The ringgit weakened 0.23% to 3.1933 versus the US dollar; crude palm oil futures for the third month delivery fell RM3 per tonne to RM3,105, crude oil added 47 cents per barrel to US$96.64 while gold slipped US$1.63 an ounce to US$1,692.70.

At the regional markets, Hong Kong’s Hang Seng Index fell 1.29% to 17,704.54, Taiwan’s Taiex lost 1.62% to 6,753.47, South Korea’s Kospi was down 1.35% to 1,770.89, Singapore’s Straits Times Index fell 1.08% to 2,648.24 and the Shanghai Composite Index shed 0.39% to 2,388.86.

Meanwhile, Japan’s Nikkei 225 edged up 0.03% to 8,167.25.

On Bursa Malaysia, Nestle, Milux and Genting lost 20 sen each to RM50.40, RM1.05 and RM10.08 respectively, Tradewinds fell 10 sen to RM9.30, PPB and MNRB down 18 sen each to RM16.08 and RM2.68, MMHE 16 sen to RM5.70, while Axiata and Petronas Gas fell 14 sen each to RM4.82 and RM13.12.

Among the gainers, Hong Leong Bank added 22 sen to RM10.42, F&N up 20 sen to RM17.90, TDM 19 sen to RM3.48, Knusford 16 sen to RM1.95, Supermax nine sen to RM3.51, while OIB, Batu Kawan and Tecnic added eight sen each to RM1.39, RM16.60 and RM2.80, respectively.

The actives included MUI Industries, Sumatec, JCY shares and warrants, MBF Holdings warrants and Emico.



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KLCI slips into the red, blue chips weigh

KUALA LUMPUR (Nov 25): The FBM KLCI slipped back into the red on Friday, in line with the retreat at most key regional markets and the weaker overnight close at European markets.

Analysts said the retreat at the local bourse was also partially due to the extended weekend with Monday being a public holiday, and investors preferring to remain on the sidelines for now.

The FBM KLCI fell 11.25 points to 1,436.74, weighed by losses at select blue chips.

Losers led gainers by 242 to 146 while 183 counters traded unchanged. Volume was 390.38 million shares valued at RM149.76 million.

Meanwhile, Asian shares and the euro both hovered near seven-week lows on Friday as European officials failed to soothe investor fears that the euro zone's debt crisis could trigger a credit crunch if funding costs run out of control, according to Reuters.

European shares fell for the sixth consecutive session in low volume on Thursday while Wall Street was shut for the Thanksgiving holiday, it said.

With European policymakers struggling to break out of the deadlock and no convincing progress in sight over the euro zone debt crisis, investors were shunning riskier assets and selling assets normally perceived as safe to raise cash or cover losses, said Reuters.

At the regional markets, Hong Kong’s Hang Seng Index fell 0.99% to ,757.74, the Shanghai Composite Index edged down 0.03% to 2,396.81, Japan’s Nikkei 225 shed 0.02% to 8,163.38, Singapore’s Straits Times Index down 0.42% to 2,665.94, South Korea’s Kospi lost 0.91% to 1,778.77 while Taiwan’s Taiex rose 0.13% to 6,873.29.

Maybank Investment Bank Bhd head of retail research and chief chartist Lee Cheng Hooi in a note to clients on Friday said that due to the European markets’ quite tone last night, it could be another benign day for the local index.

Persistent profit taking would take place today as the market squares positions ahead of a long holiday weekend (with Monday being the Awal Muharram holiday).

“Yesterday’s rise was quite amazing as it came on the back of global equity adversity in USA and Europe.

“Ultimately, even the Malaysian bourse will fall in-line with the weaker global equity markets. Trade with obvious caution,” he said.

Among the losers at mid-morning, Nestle fell 20 sen to RM50.40, MISC down 18 sen to RM5.95, MNRB 16 sen to RM2.70, MAHB 15 sen to RM6.05, Axiata and Petronas Gas 14 sen each to RM4.82 and RM13.12, Telekom 11 sen to RM4.33, Harvest Court 10 sen to RM1.01, Bonia nine sen to RM1.61 and PPB down eight sen to RM16.18.

HLFG was the top gainer and rose 24 sen to RM11.56; Hong Leong Bank added 20 sen to RM10.40, TDM 17 sen to RM3.46, Knusford 16 sen to RM1.95, TSH 10 sen to RM3.95, Proton nine sen to RM3.27, Batu Kawan eight sen to RM16.60, Brem seven sen to RM1.33 while Kwantas added six sen to RM2.08.

Meanwhile, the actives included MUI Industries, Compugates, Emico, Sumatec, Tiger Synergy and JCY.



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MNRB retreats after warning negative impact from Thai floods

KUALA LUMPUR (Nov 25): MNRB HOLDINGS BHD [] shares retreated in early trade on Friday after the company said that it expected to face a challenging year in view of the impact of the Thailand flood loss.

At 9.15am, MNRB fell 14 sen to RM2.72 with 25,500 shares done.

The company on Thursday said it posted net loss RM5.94 million for the second quarter ended Sept 30, 2011, compared to net profit RM21.26 million a year earlier, due mainly higher claims incurred by its reinsurance subsidiary.

Its revenue rose 6.98% to RM362.85 million from RM338.97 million in 2010.

Loss per share for the quarter under review was 2.80 sen compared to earnings per share 10 sen a year earlier, while net assets per share was RM4.86.

For the six months ended Sept 30, MNRB’s net profit fell to RM37.03 million from RM47.4 million in 2010, while its revenue rose to RM761.55 million from RM725.66 million.

Reviewing its performance, MNRB said the higher revenue was a result of the increase in the gross premium written by the reinsurance subsidiary and the increase in the wakalah fees earned by the takaful and retakaful operator.

MNRB said the results for the period under review also included provisions made by the its reinsurance subsidiary for its share of unprecedented losses incurred on the floods in Thailand, generally regarded as a "non-catastrophic territory".

It said the estimated net impact of the above event to its profit before zakat and taxation was RM55 million.



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Results: Xidelang Q3 pre-tax profit improves

# Xidelang Holdings Ltd posted a higher pre-tax profit of RM32.11 million for the third quarter ended Sept 30, 2011 from RM29.59 million recorded in the same period last year.

In filing to Bursa Malaysia today, the company said its revenue rose to RM132.94 million from RM125.25 million previously.

The improvement was attributed to an increase in brand awareness, continuous research and development, increased consumer demands resulting in higher sales for the period under review.


# KKB Engineering Bhd posted a 63.5 per cent drop in pre-tax profit to RM11.32 million for the third quarter ended Sept 30, 2011, from RM31.02 million, recorded in the same period last year.

In a filing to Bursa Malaysia today, the company said revenue slipped to RM60.20 million, from RM68.63 million, recorded in the previous corresponding period.

Going forward, it expects manufacturing and engineering activities to contribute positively to the group's performance in view of the vast opportunities existing in the Sarawak Corridor of Renewable Energy.


# Bintai Kinden Corporation Bhd recorded a higher pre-tax profit of RM6.13 million for the second quarter ended Sept 30, 2011 compared with RM1.91 million in the same period last year.

In a filing to Bursa Malaysia today, the specialist engineering company said revenue for the period however decreased to RM57.24 million compared with RM91.68 million previously.

The company expects to see a satisfactory performance for this financial year with its current projects in hand for this financial year.


# United U-LI Corporation Bhd registered a lower pre-tax profit of RM2.58 million for the third qurter ended Sept 30, 2011 compared with RM4.76 million in the same period last year.

In a filing to Bursa Malaysia today, it said revenue for the period however rose to RM34.2 million compared with RM30.74 million previously.


# Mega First Corporation Bhd (MFCB) posted a higher pre-tax profit of RM36.348 million for the third quarter ended Sept 30, 2011 from RM30.082 million chalked up in the same period last year.

In a filing to Bursa Malaysia today, the company said revenue increased to RM151.962 million compared with RM127.049 million registered previously.

MFCB said the better pre-tax profit was largely attributable to higher contribution from the power and limestone divisions and gains from the disposal of quoted shares, partially offset, by lower contribution from the property and engineering divisions.


# MNRB Holdings Bhd posted a pre-tax loss of RM337,000 for the second quarter ended Sept 30, 2011 against a pre-tax profit of RM27.94 million in the same period last year.

The group recorded a pre-tax loss in the current quarter due to the provision made by the group's reinsurance subsidiary for the Thailand flood loss, the company said in filing to Bursa Malaysia today.

Revenue, however, rose to RM362.65 million from RM338.97 million.

MNRB attributed the higher revenue to the increase in the gross premium written by the reinsurance subsidiary and the increase in the wakalah fees earned by the takaful and retakaful operator.


# Can-One Bhd posted a higher pre-tax profit of RM9.794 million for the third quarter ended Sept 30, 2011 from RM6.747 million recorded in the same period last year.

In a filing to Bursa Malaysia today, the investment holding company with its main activities in the manufacture of cans as well as food products, said its revenue rose to RM160.555 million, from RM115.244 million registered in the same quarter previously.

The improvement in revenue was attributed to increase in production efficiency and economies of larger scale production.

It added the increase in production capacity and demand for liquid milk products also contributed to the growth. -- Bernama



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MNRB posts net loss RM5.94m in 2Q

KUALA LUMPUR (Nov 24): MNRB HOLDINGS BHD [] posted net loss RM5.94 million for the second quarter ended Sept 30, 2011, compared to net profit RM21.26 million a year earlier, due mainly higher claims incurred by its reinsurance subsidiary.

The company said on Thursday that its revenue rose 6.98% to RM362.85 million from RM338.97 million in 2010.

Loss per share for the quarter under review was 2.80 sen compared to earnings per share 10 sen a year earlier, while net assets per share was RM4.86.

For the six months ended Sept 30, MNRB’s net profit fell to RM37.03 million from RM47.4 million in 2010, while its revenue rose to RM761.55 million from RM725.66 million.

Reviewing its performance, MNRB said the higher revenue was a result of the increase in the gross premium written by the reinsurance subsidiary and the increase in the wakalah fees earned by the takaful and retakaful operator.

MNRB said the results for the period under review also included provisions made by the its reinsurance subsidiary for its share of unprecedented losses incurred on the floods in Thailand, generally regarded as a "non-catastrophic territory".

It said the estimated net impact of the above event to its profit before zakat and taxation was RM55 million.

On its prospects, MNRB said that in view of the impact of the Thailand flood loss, the group was expected to face a challenging year.



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