KLCI stages mild rebound, boost from Greek debt accord

KUALA LUMPUR (Feb 21): Blue chips staged a mild rebound in the afternoon session on Tuesday in line with most key Asian markets as sentiment was bolstered by the Greek bailout deal.

At 3pm, the FBM KLCI was up 1.85 points to 1,562.421. Turnover was 1.06 billion shares valued at RM865.49 million. There were 292 gainers, 414 losers and 353 stocks unchanged.

Panasonic Malaysia was the top gainer, adding 68 sen to RM21.19 while Maxis gained 19 sen to RM6.

Among the PLANTATION []s, United Plantations added 62 sen to RM23.38, BLD Plantations 21 sen to RM10.04 and Sarawak Plantations 14 sen to RM3.06.

F&N added 22 sen to RM17.80 on mild buying interest after its share price was recently impacted by the decline in earnings.

Nilai Resources added 14 sen to RM1.55 after the major shareholders proposed a selective capital repayment (SCR) of RM1.50 a share.

YTL Cement and MBM Resources added 13 sen each to RM4.73 and RM4.43.



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Nilai Resources up on selective capital repayment plan

KUALA LUMPUR (Feb 21): Shares of Nilai Resources Group Bhd climbed in early trade on Tuesday after the major shareholders proposed a selective capital repayment (SCR) of RM1.50 a share.

At 9.44am, it was up 13 sen to RM1.43. There were 35,000 shares transacted.

The FBM KLCI slipped 1.16 points to 1,559.41. Turnover was 371.64 million shares valued at RM185.12 million. Decliners led advancers 209 to 189 while 266 counters were unchanged.

On Monday, Nilai Resources announced the major shareholders Akarmas Sdn Bhd and Tan Sri Dr Gan Kong Seng -- who collectively hold 62.937 million shares or 55.1% equity -- had proposed the SCR.

However, they would not be entitled to the SCR due to their proposed corporate exercise which could see taking the company private.



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HDBSVR: Market may advance slowly amid positive foreign news

KUALA LUMPUR (Feb 21): HwangDBS Vickers Research (HDBSVR) said the Malaysian stock market may continue to climb slowly and steadily amid positive foreign news flows on Tuesday.

“The benchmark FBM KLCI will probably advance towards the immediate resistance target of 1,580 ahead,” it said.

HDBSVR said while Wall Street was on holiday yesterday, most European stock markets rose overnight. Essentially, investors remained confident that the eurozone finance ministers would be able to wrap up talks for Greece to meet certain conditions in exchange for international bailout funds.

At Bursa Malaysia, stocks which could see trading interest are Mitrajaya Holdings, which has secured the awards of 3 CONSTRUCTION [] projects (to build LRT stations and apartments) worth RM182 million.

Also in focus is Nilai Resources Group, in response to a selective capital reduction and repayment proposal made by its major shareholder at a cash offer price of RM1.50 per share (versus its current share price of RM1.30).

Notion VTec could see trading interest after proposing a three-for-four bonus issue and an issuance of free warrants on the basis of one warrant for every four existing shares held prior to the bonus issue.



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Stocks to watch: Affin, Sarawak Plantations, Mitrajaya, Nilai Resources, Notion VTec

KUALA LUMPUR (Feb 21): As the corporate reporting season picks up pace, there seem to be a mixed bag of results, with banks and PLANTATION []s providing slight upside compared with the other sectors.

AFFIN HOLDINGS BHD []’s earnings rose 4.7% to RM132.54 million in the quarter ended Dec 31, 2011 from RM126.57 million a year ago. Its revenue increased by 14.4% to RM709.81 million from RM620.54 million. Earnings per share were 8.87 sen compared with 8.47 sen.

For the financial year ended Dec 31, 2011, the banking group said it recorded its best ever performance so far, with record profit before tax (PBT) of RM709.1 million compared with RM637.5 million in 2010. This was a RM76.1 million or 11.2% increase.

SARAWAK PLANTATION BHD [] posted net profit of RM19.66 million in the fourth quarter ended Dec 31, 2011, up 139% from the RM34.35 million a year ago when there was impairment losses of RM10.60 million. Revenue fell 3.4% to RM111.62 million from RM115.61 million a year ago. Its administrative expenses declined to RM8.83 million from RM18.60 million

For FY11, Affin said the earnings rose 139% to RM82.24 million from RM34.35 million. Revenue increased by 40.6% to RM479.36 million from RM340.83 million following the increase of revenue from the oil palm operations segment.

MITRAJAYA HOLDINGS BHD [] has secured three projects valued at RM181.55 million, of which two are for the light rail transit (LRT) contracts and one for a housing project in Putrajaya.

The major shareholders of Nilai Resources Group Bhd have proposed a selective capital repayment (SCR) of RM1.50 a share, which is a premium of 20 sen above the Feb 17 closing price of RM1.30.

The major shareholders are Akarmas Sdn Bhd and Tan Sri Dr Gan Kong Seng who collectively hold 62.937 million shares or 55.1% equity, who will not be entitled to the SCR.

NOTION VTEC BHD [] has proposed a bonus issue of up to 138.91 million new shares on the basis of three bonus shares for every four existing shares held.

It reported net losses of RM4.83million in the first quarter ended Dec 31, 2011 compared with net profit of RM13.41 million a year ago. Its revenue fell 33.9% to RM39.63 million from RM59.98 million. Its loss per share was 3.13 sen compared with earnings per share of 8.79 sen.

ESSO MALAYSIA BHD []’s earnings fell 71.5% to RM34.58 million in the fourth quarter ended Dec 31, 2011 from RM121.51 million a year ago. Its revenue was 16.5% higher at RM2.75 billion compared with RM2.359 billion a year ago. Earnings per share were 12.80 sen compared with 45 sen.

For the financial year ended Dec 31, 2011, it reported a 42.9% decline in earnings to RM153.35 million from RM268.58 million in FY10. Revenue, however, increased 33.6% to RM11.26 billion from RM8.42 billion.

POS MALAYSIA BHD [] recorded net profit of RM25.06 million in the October-December quarter in 2011 compared with RM6.08 million a year ago mainly due to a provision of investment and a one-off impairment provision. It said revenue increased by 4.4% to RM289.63 million from RM277.33 million.

In the 12-month period from January to December 2011, its earnings rose about 66.8% to RM112 million from RM67.11 million. Its revenue increased 15.6% to RM1.173billion from RM1.014 billion.

The group’s profit from operations rose 38.2% to RM146.0 million (2010: RM105.7 million) for the period ended Dec 31, 2011, due to the full year impact of domestic tariff increase commencing July 1, 2010 coupled with the benefits realized from transformation initiatives.



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Nilai Resources major shareholders propose SCR of RM1.50 a share

KUALA LUMPUR (Feb 20): The major shareholders of Nilai Resources Group Bhd has proposed a selective capital repayment (SCR) of RM1.50 a share, which is a premium of 20 sen above the Feb 17 closing price of RM1.30.

The major shareholders are Akarmas Sdn Bhd and Tan Sri Dr Gan Kong Seng who collectively hold 62.937 million shares or 55.1% equity, who will not be entitled to the SCR.

“The number of Nilai Resources shares to be cancelled/ repaid pursuant to the proposed SCR amounts to 55.77 million Nilai Resources shares, which represents RM55.77 million of the issued and paid-up share capital of the company,” it said.

The company said during a board meeting Monday, in which the major shareholders including its executive chairman Tan Sri Dr Gan Kong Seng had abstained, they had agreed to table the proposed SCR to the shareholders.

Upon completion of the proposed SCR, the non-entitled shareholders will hold 62.93 million shares, representing the entire paid-up share capital. The proposed SCR will be funded by an advance from the non-entitled shareholders.

The non-entitled shareholders do not intend to maintain the listing status.

The rationale for the proposed SCR was that the group’s core businesses are property development, education and hotel and leisure businesses.

About 48% of the group revenue is derived from the property development segment and the group’s primary activity is the development of Nilai township, Negeri Sembilan, namely Putra Nilai. Putra Nilai is a new 6,233-acre township development from a PLANTATION [] land, which was without any infrastructure.



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Nilai Resources major shareholders propose selective capital repayment

KUALA LUMPUR (Feb 20): The two major shareholders of Nilai Resources Group Bhd have requested the company undertake a selective capital repayment exercise under Section 64 of the Companies Act, 1965.

Nilai Resources said on Monday it had received a letter from Akarmas Sdn Bhd and Tan Sri Dr Gan Kong Seng, who are the joint offerors, requesting the company undertake the corporate exercise.

“The board will deliberate on the above matter and decide on the next course of action. Accordingly, a further announcement will be made in due course,” it said.

Gan is the executive chairman of Nilai Resources. Akarmas is the largest shareholder with 62.63 million shares or 54.9% while Gan is deemed interest via his stake in Akarmas.



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Nilai Res gets capital repayment request

Nilai Resources Group Bhd, a Malaysian producer of fertilizers and chemical products, said it received a request from its major shareholders to undertake a selective capital repayment.

The company received a letter from shareholders Akarmas Sdn Bhd and Gan Kong Seng, it said in an exchange filing today. Nilai’s board will deliberate on the matter before deciding its next course of action, according to the statement. Akarmas and Gan own a majority stake in the group, Bloomberg data show. -- Bloomberg



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Nilai Resources jumps on Q4 income surge

Nilai Resources Group Bhd, a producer of fertilizer and chemical products, jumped 9.4 per cent to 1.40 baht, heading for the steepest advance since Sept. 29. Net income in the fourth quarter surged to RM20.8 million from RM1.6 million in the same period a year earlier. -- Bloomberg



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Nilai Resources gets RM27m price reduction from major shareholder

KUALA LUMPUR (Jan 3): Nilai Resources Group Bhd’s subsidiary has received a RM27.36 million discount on the purchase price of LK Prisma Sdn Bhd by Lapangan Kota Sdn Bhd.

Nilai Resources said on Tuesday its subsidiary BBN Development Sdn Bhd had on Dec 31, 2011 received a revised letter of offer from Lapangan Kota to sell the company for RM91.08 million.

The previous price tag of RM118.41 million was announced on Nov 16.

Lapangan Kota is majority owned and controlled by Nilai Resources shareholder Datuk Dr Gan Kong.

Lapangan Kota owns 418.20 acres of land, which is part of the Seremban Utara township development. The land was approved for either residential, commercial, institution or industry use.



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Nilai Resources gets offer to buy land from major shareholder

KUALA LUMPUR: Nilai Resources Group Bhd has received an offer to buy LK Prisma Sdn Bhd, which owns a 418.2-acre piece of land, forming part of the Seremban Utara township development, for RM118.4 million.

The related-party offer was made by Lapangan Kota Sdn Bhd, a company owned by Datuk Dr Gan Kong Seng, who is Nilai Resources executive chairman and major shareholder, with a 54.93% stake.

The consideration was based RM6.50 per square foot (psf) for the land, which has been approved for residential, commercial, institution or industry use.

The sale of LK Prisma is conditional on approval being obtained from Nilai Resources’ board of directors and shareholders.

Nilai Resources saw its net loss widen to RM1.06 million in 1HFY11 from RM426,000 a year ago, while revenue fell 7% to RM67.01 million from RM72.2 million.

For its second quarter ended June 30, its net loss shrank to RM954,000 from RM1.98 million a year ago while revenue improved 21% to RM35.3 million.

The company is involved in property development, hospitality, education, landscaping and quarrying.

Its property development segment contributed 35% of its 1HFY11 revenue and held RM409.9 million in assets as of June 30.

As at end-June, it held RM21.2 million in cash and had RM69.9 million of borrowings.

Shares in the company rose to a more than 10-year high when it reached RM1.80 on Nov 3.

It ended 12 sen lower to RM1.38 yesterday.

The stock has gained some 56.8% year-to-date, but is trading below its book value of RM3.51.


This article appeared in The Edge Financial Daily, November 17, 2011.



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Main shareholder to sell Negeri land for RM118m to Nilai Resources

KUALA LUMPUR (Nov 16): Nilai Resources Group Bhd has received a proposal to acquire a company, LK Prisma Sdn Bhd, which owns 418.2 acres of land in Negeri Sembilan, from a common major shareholder, Tan Sri Dr Gan Kong Seng.

Nilai Resources said on Wednesday its subsidiary BBN Development Sdn Bhd had received an offer letter from Lapangan Kota Sdn Bhd to sell the entire paid-up of LK Prisma to BBND for Rm118.41 million cash consideration.

“LK Prisma owns 418.2 acres of land, which is part of the township development of Seremban Utara. The land was approved for residential or commercial or institution or industry use. This would be at RM6.50 per sq. ft,” it said.

Lapangan Kota said it is a company owned by Gan and G.O. Enterprise Sdn Bhd, which in turn, Gan is a major shareholder. Gan is also a major shareholder and director of Nilai Resources.



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KLCI pares down losses at mid-day on bargain hunting

KUALA LUMPUR (Nov 15): The FBM KLCI pared down some of its losses at the mid-day break on Tuesday, Nov 15 as investors nibbled on select blue chip stocks.

Meanwhile, Asian markets mostly remained in the red with investors staying on the sidelines as jittery European credit markets hurt sentiment.

The 30-stock FBM KLCI trimmed its losses to just 0.37 of a point to 1,478.50 at 12.30pm. The index had earlier fallen to its intra-morning low of 1,473.71.

Losers led gainers by 389 to 306, while 237 counters traded unchanged. Volume was 1.8 billion shares valued at RM737.82 million.

The ringgit weakened 0.33% to 3.1460 versus the US dollar; crude palm oil futures for the third month delivery gained RM2 per tonne to RM3,196, crude oil added three cents per barrel to US$98.17 while gold fell US$5.15 an ounce to US$1,775.27.

At the regional markets, Hong Kong’s Hang Seng Index lost 1.09% to 19,295.53, South Korea’s Kospi down 0.64% to 1,890.62, Japan’s Nikkei 225 fell 0.53% to 8,557.92, Taiwan’s Taiex lost 0.50% to 7,488.09, Singapore’s Straits Times Index was down 0.20% to 2,824.44 while the Shanghai Composite Index shed 0.05% to 2,527.50.

On Bursa Malaysia, SHL was the top loser and fell 23 sen to RM1.11; TSH Resources lost 17 sen to RM3.63, Nilai 15 sen to RM1.40, Degem and SYF Resources fell 14.5 sen each to 90.5 sen and 77.5 sen, Carlsberg 13 sen to RM6.96, Subur Tiasa 11 sen to RM2.21 while Batu Kawan was down 10 sen to RM15.90.

Among the gainers, DiGi added 88 sen to RM35.40, Proton 38 sen to RM3.08, Amway 20 sen to RM9, Quality Concrete and Kulim 16 sen each to RM1.43 and RM3.63, while LPI Capital and Dutch Lady rose 10 sen each to RM12.94 and RM21.60.

Tiger Synergy was the most actively traded counter with 171.8 million shares done. The stock rose 1.5 sen to 15 sen.

Other actives included DPS Resources, DBE Gurney, Malton, PDZ, Karambunai, Scan Associates and Sinotop.



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