In Brief

Priceworth to carry out logging in Solomon Islands

KUALA LUMPUR: Priceworth International Bhd, via 100%-owned subsidiary Ligreen (SI) Ltd, has entered into an agreement to carry out logging activities in the Solomon Islands.

Ligreen was appointed by Success Co Ltd to carry out logging activities within 1,053ha on Kolombangara Island, Western Province, Solomon Islands.

The area is estimated to have a log volume of about 60,000 cubic metres per annum which can be processed into sawn timber, plywood and downstream wood products. The logs will be partly utilised for Priceworth’s internal consumption and for export purposes.

Ligreen and Success will jointly market the logs harvested from the area. Ligreen will receive 55% of the declared sales contract from Success.
The venture is not expected to have any material on its earnings per share for the financial year ending June 30, 2012 but is expected to enhance its future earnings, it added.

PTP container volume up 15% last year

KUALA LUMPUR: Malaysia’s largest container terminal Port of Tanjung Pelepas recorded a 15% rise in container volume to 7.5 million twenty-foot equivalent units (TEUs) of containers in 2011.

In a statement, Pelabuhan Tanjung Pelepas Sdn Bhd (PTP) said its growth in 2011 had outperformed global volume growth of 7%.

PTP said its increase in volume was driven by strong growth seen in its existing customers as well as volume from new customers.

The port also handled new shipping lines last year including South Korea’s Hanjin group and STX Pan Ocean, Japan’s Mitsui and K-Line and China Shipping.

PTP deputy CEO Azlan Shahrim said PTP had grown to 26 shipping lines and box operators from merely two shipping lines in the port’s early days.

PTP is a 70-30 joint venture between Malaysian utilities and infrastructure group MMC Corp Bhd and Danish shipping giant AP Moller-Maersk Group’s unit APM Terminals.



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Priceworth gains on getting logging rights

Priceworth International Bhd, a Malaysian timber company, rose the most in more than two months in Kuala Lumpur trading after it was appointed a logging contractor in Solomon Islands.

The stock advanced 11 percent to 45 sen at 9:10 a.m. local time, set for the steepest increase since Oct. 31. -- Bloomberg



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Stocks to watch: JCY, Dialog, AirAsia, MAS

KUALA LUMPUR (Jan 5): Despite the second day of pullback on the local stock market , especially blue chips on Wednesday, the overall market sentiment continues to be firm due to the "January effect" while fresh corporate news could stir buying interest in selected stocks at least in the short-term.

However, RHB Research Institute was cautious as due to the overhanging concerns of the second half of 2011, it was fearful that this could be another year of “more of the same”.

However, it did note the possibility of two market rallies in the near term, which were the “January effect” and “Chinese New Year rally”.

RHB Research said in a note on Wednesday that while the January effect has been evident every year for the last 10 years (and has led to a positive annual return in seven of the 10 years), the historical data for the pre-Lunar New Year rally is less conclusive (but the post-festival returns have actually been negative in seven of the last 10 years).

“Beyond January, we believe 2012 will be influenced by 2011 legacy issues. We thus continue to advocate a cautious stance, although we also recommend accumulating fundamentally-robust stocks on weakness for tactical plays with a longer-term view towards the recovery that will undoubtedly follow,” it said.

As for the stocks which could see trading interest on Thursday are hard-disk drive manufacturer JCY International Bhd, DIALOG GROUP BHD [], AIRASIA BHD [] and MALAYSIAN AIRLINE SYSTEM BHD [] (MAS).

JCY International Bhd, whose share price had surged in recent weeks, has stated that the group is likely to record a surge in earnings for the quarter ended Dec 31, 2011.

To cater for the increase in the component demands from the company’s major customers, JCY allocated RM300 million over the next 24 months period to expand its facilities in Malaysia, Thailand and China.

Dialog could also see trading interest as its rights shares go ex on Thursday.

In December, Dialog fixed the rights shares at RM1.20 each and the exercise price of the warrants at RM2.40 each.

The issue price would be a discount of about 46% to the theoretical ex-rights price of RM2.23 per share, based on the five-day volume-weighted average market price (VWAMP) up to Dec 14 of RM2.43.

Meanwhile, the Securities Commission has approved the proposed warrants exchange between AirAsia and MAS under a tie-up between both airlines. The airlines said the SC has approved the warrants exchange under the Capital Markets and Services Act 2007 of Malaysia.

Priceworth International Bhd’s unit has been appointed a contractor to carry out logging activities on Kolombangara Island, in the western province of Solomon Islands.

Priceworth said its unit, Ligreen (SI) Ltd had sealed a logging management and TECHNOLOGY [] agreement with Success Company Ltd to undertake the logging at a concession site measuring 1,053 ha.

KINSTEEL BHD [] had on Wednesday paid RM70 million to Perwaja Holdings Bhd which was the first payment for the subscription of the RCULS by Kinsteel. The balance of the RM210.0 million would be paid within 21 business days.

Following the first payment, Perwaja had provisionally allotted RM280.0 million nominal value of RCULS to Kinsteel.



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Priceworth unit apptd logging contractor in Solomon Islands

KUALA LUMPUR (Jan 4): Priceworth International Bhd’s unit has been appointed a contractor to carry out logging on Kolombangara Island, in the western province of Solomon Islands.

Priceworth said on Wednesday, its unit, Ligreen (SI) Ltd had sealed a logging management and TECHNOLOGY [] agreement with Success Company Ltd to undertake the logging at a concession site measuring 1,053 ha.

“The licensee and contractor shall jointly market the logs harvested from the concession area. In consideration of the logging activities to be carried out by the contractor, the contractor shall receive 55% of the declared sales contract from the licensee,” it said.

Priceworth said the upside from the contract was that the group would have access additional source of logs for the group’s business involving the manufacturing and sale of timber products and logs.



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