Stocks to watch Kencana, Pantech, Spritzer, KNM, Silver Bird

KUALA LUMPUR (May 1): The FBM KLCI could be range bound when trading resumes on Wednesday after May Day holiday on May 1, given the absence of fresh catalysts.

The FBM KLCI fell some 25.72 points in April, as investor sentiment took a beating given rising external and domestic uncertainties.

Affin Investment Bank Bhd vice president and head of retail research Dr Nazri Khan said he expects the FBM KLCI to trend lower in response to rising solvency risk and borrowing cost in Europe (Spain & Italy) and rising local political uncertainties.

“Despite positive comments from the USA Fed on possible monetary stimulus, a weaker than expected read on April Euro zone sentiment and rising European bond yield seemed to bring struggling European growth and debt concerns back into focus.

Most markets in Asia and Europe were closed on Tuesday to mark the May Day holidays and the Monday close at Wall Street was less then encouraging as The S&P 500 posted its first monthly decline since November on Monday, as stocks slipped in one of the lightest trading days of the year on signs the U.S. economy may be slowing and as a recession in Spain highlighted risks in the euro zone.

The Dow Jones industrial average dropped 14.68 points, or 0.11 percent, to 13,213.63. The Standard & Poor's 500 Index fell 5.45 points, or 0.39 percent, to 1,397.91. The Nasdaq Composite Index lost 22.84 points, or 0.74 percent, to 3,046.36.

Among the stocks that could be in focus on Bursa Malaysia are KENCANA PETROLEUM BHD [], PANTECH GROUP HOLDINGS BHD [], SPRITZER BHD [], KNM GROUP BHD [] and SILVER BIRD GROUP BHD [].

Kencana Petroleum Bhd’s wholly owned subsidiary, Kencana HL Sdn. Bhd. ("Kencana HL") in consortium with Shinryo (M) Sdn Bhd has secured an engineering, procurement, CONSTRUCTION [] and commissioning (“EPCC”) from PETRONAS GAS BHD [].

Kencana said on Monday that the contract was for the EPCC of two cogeneration plants, having combined capacity of 50MW of electrical power and steam capacity of 120 ton per hour.

The company said the portion of the contract value for Kencana HL was estimated at RM35 million.

Pantech Group Holdings Bhd Net profit for the fourth quarter ended Feb 29, 2012 surged 90% to RM10.68 million from RM5.11 million a year earlier, due mainly to an increase in revenue.

The company said on Monday that its revenue for the quarter jumped 76.2% to RM128.45 million from RM72.9 million in 2011 due to improved sales demand from oil and gas sector with the on-going new projects.

Earnings per share rose to 2.37 sen from 1.14 sen, whiel net assets per share was 75 sen.

Pantech proposed a final single tier dividend of 1.3 sen per share 20 sen each amounting to RM5.84 million for the financial year ended Feb 29, 2012, subject to shareholders' approval.

Spritzer Bhd net profit for the third quarter ended Feb 29, 2012 jumped 69.4% to RM3.66 million from RM2.16 million a year earlier, due mainly to higher sales of more profitable carbonated and flavoured drinks and natural mineral water products.

The company said on Monday that its revenue for the quarter rose 33% to RM45.22 million from RM34.09 million in 2011 on higher sales volume.

KNM Group Bhd (KNM) has proposed to undertake a fund raising exercise involving a Rights Issuance of RM200 million.

In a filing to Bursa Malaysia Securities Bhd on Monday, KNM said the definitive terms for the Rights Issue would be determined by the Board of the Company subject to the advice of the Company’s Corporate Advisors to be appointed in due course.

Silver Bird Group Bhd’s proposed group restructuring scheme is expected to be finalised by the middle of May 2012 said Silver Bird Group’s chairman of audit committee, Richard Azlan Abas after the company’s AGM on Monday.

“The group restructuring plan will include, but not limited to, capital reduction, share consolidation, rights issue and debt restructuring. However, it is still in its preliminary stage and very fluid. We hope to finalise the proposed plan once we get an agreement from the major stakeholders by the middle of May.” he added.

When asked about the amount of rights issue which the company intends to raise for its restructuring plan, Richard said it would amount to RM60 million.



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Silver Bird Group to finalise proposed restructuring scheme by mid May

KUALA LUMPUR (May 1): SILVER BIRD GROUP BHD []’s proposed group restructuring scheme is expected to be finalised by the middle of May 2012 said Silver Bird Group’s chairman of audit committee, Richard Azlan Abas after the company’s AGM on Monday.

“The group restructuring plan will include, but not limited to, capital reduction, share consolidation, rights issue and debt restructuring. However, it is still in its preliminary stage and very fluid. We hope to finalise the proposed plan once we get an agreement from the major stakeholders by the middle of May.” he added.

When asked about the amount of rights issue which the company intends to raise for its restructuring plan, Richard said it would amount to RM60 million.

“Major shareholders have been cooperative thus far as we are working for a solution that will be favourable for shareholders,” he said.

Richard mentioned that on-going forensic investigations has encountered several speed bumps as they were faced with wilful destruction of documents, high volume of unusual transactions which the alleged executive directors were not present for explanation as well as certain records that had been taken away by authorities.

The company’s restated accounts as at Feb 29, 2012 which was announced on Bursa Malaysia last Friday recorded a negative shareholders fund variance of RM 297.08 million as compared to that as at Oct 31, 2011.

“RM18 million is attributable to the four months operation [between Oct 31, 2011 to Feb 29, 2012] and RM279 million is in relation to adjustments made. The RM300 million variance will be reflected in 2QFY12 results,” said Richard.

Chairman Datuk Dr Gan Khuan Poh added that the company practiced prudence, as accorded by accounting standards, when providing for impairment and other non monetary transaction adjustments explaining the RM300 million losses in the restated financial statements.

According to the company, with the RM300 million of losses reflected in the company’s financial statement, it will most likely post a loss position for the FY12.

However, the company said that a viability study conducted by independent consultants indicated that the company can be turned around into a profit making situation moving forward provided it is properly managed.

“If we can increase the average sales to back where we were before (the irregularities occurred) and if we can monetise our network and create value out of it, we can bring in significant increase in revenue.

“So far, I think the value of our network has not been maximised yet,” said Gan.

Gan told the press that to counter competition and gain back sales, the company is strategizing to venture into a new niche segment of premium bread. Currently, research is being conducted for its proposed premium bread segment.

Silver Bird Group was thrust into the spotlight earlier this year when the company sought more time to table its annual audited financial statements which was due end February. Share price closed at 0.16 sen on Monday, up 3.23%.



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Stocks to watch: Padini, Silver Bird, Pelikan, WinSun

KUALA LUMPUR (March 8): Malaysian stocks could be in for further profit taking on Thursday as the European debt crisis continues to take centre stage in global financial markets .

Key regional markets fell on Wednesday as investors were kept vigilant on the status of Greece’s debt relief scheme. The FBM KLCI fell 0.95% or 15.08 points to finish at 1574.83 points, the biggest one-day decline this year. However, year-to-date, it is up 3%. FBM KLCI futures closed seven points down to 1575.5.

Private holders of Greek government bonds have until Thursday night to voluntarily swap their bonds for new ones. The bond swap is vital to help Greece to obtain bailout funds, without which the country may default on its debt obligations this month. A default could have a negative impact on global financial markets.

Weakness across major importing countries in Europe, and China has already been reflected in Malaysia’s latest trade numbers.

Malaysia’s January exports grew at slower year-on-year pace of 0.4 % as shipments of electrical and electronic and commodity-based products to China and Europe declined. This compares to December 2011’s export growth of 6.1%.

Stocks on watch on Thursday are PADINI HOLDINGS BHD [], SILVER BIRD GROUP BHD [], Pelikan International Corporation Bhd and WINSUN TECHNOLOGIES BHD []. Other stocks which could see trading interest are SYARIKAT TAKAFUL MALAYSIA BHD [] and Brahim’s Holdings Bhd.

AmResearch Sdn Bhd initiated coverage on Padini, an apparel maker with a Buy call and target price of RM1.80. Padini shares closed unchanged at RM1.48 on Wednesday. The stock had earlier traded to a fresh intraday high of RM1.49.

The research house said Padini’s market capitalisation, which is approaching RM1billion, will improve the stock’s visibility among institutional funds. Despite its strong share price performance, Padini’s valuation is undemanding in anticipation of the firm’s earnings growth, according to the research firm.

Bread manufacturer Silver Bird was the third most actively traded stock on Wednesday on speculation that Fraser & Neave Holdings Bhd chief executive officer Datuk Tan Ang Meng may be roped in to lead Silver Bird.

This follows news of alleged financial irregularities at the bread manufacturer. However,Tan has denied the speculation. Silver Bird shares rose 4.5 sen to finish at 23 sen.

Pelikan plans to reward its shareholders with one treasury share for evey 50 existing shares held for FY ended Dec 31, 2011. The board also recommended a final cash dividend of one sen per share single tier dividend.

Industrial automation systems entity Winsun Technologies Bhd secured a letter of intent from Ningbo Shanghao which has indicated its intention to buy from Winsun 60,000 tonnes of iron ore a month for a duration of two (2) years. Winsun shares closed 0.5 sen higher at 17 sen.

Brahim’s whose shares closed 8% higher at RM1.23, announced that it had fixed the issue price for its 17.9 million new placement shares at RM1.10. This translates into gross proceeds of close to RM20 million should all the new securities placed out.

Syarikat Takaful Malaysia Bhd could also draw interest after its managing director Datuk Hassan Kamil indicated the Islamic insurer’s plans to further grow earnings in key market Indonesia for the long term. The stock rose seven sen or 3.3% to close at RM2.18.



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Regional markets in the red, KLCI dn nearly 13 pts

KUALA LUMPUR (March 7): All key regional market fell in the morning session on Wednesday, extending their losses from the previous day on renewed uncertainty over Greece's bailout and mounting worries about slowing global economies.

At 12.30pm, the FBM KLCI staged a correction, falling 12.98 points or 0.82% to 1,576.93. Turnover was 941.31 million shares valued at RM939.97 million. Losers beat gainers 515 to 158 while 262 counters were unchanged.

Japan’s Nikkei 225 lost 0.81% to 9,559.45, Hong Kong’s Hang Seng Index fell 0.75% to 20,649.46, Taiwan’s Taiex 0.37% to 7,908.40, South Korea’s Kospi 0.81% to 1,984.25 and Singapore’s Straits Times Index 0.58% to 2,914.97.

US light crude oil rose 43 cents to US$105.13 while crude palm oil futures fell RM9 to RM3,233 per tonne. The ringgit weakened to RM3.0288 against the US dollar.

BIMB Securities Research said it had expected the overnight fall on Wall Street to cause some negative knee-jerk reactions “but (we) see this as a very good opportunity to accumulate on weakness”.

Dealers said retail participation in the market had been low, with traders punting on lower liners and speculative counters. They added local funds were mostly the bigger players in the trading of blue chips and big cap stocks.

CIMB was the biggest drag on the KLCI. It fell 11 sen to RM7.31, pushing the index down by 1.94 points.

HLFG fell the most, down 40 sen to RM12.10, Genting PLANTATION []s 20 sen to RM9.29, MISC 20 sen to RM5.40, Genting 18 sen to RM10.74 and PPB 14 sen to RM16.72.

Dijaya fell 12 sen to RM1.55 and the warrants five sen to 58 sen in active trade, but they were off their intra-morning lows.

Naim Indah was the most active with 204.60 million shares done, up 10.5 sen to 62.5 sen, bucking the weaker market. Silver Bird added five sen to 23.5 sen.

Among the gainers were Ta Ann, up nine sen to RM5.76 and Esso seven sen to RM3.69. Advanced Packaging rose 15 sen to RM1.40 and Iretex 13 sen to RM1.10.



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CIMB leads KLCI to higher close, 11 pts away from all-time high

KUALA LUMPUR (March 2): CIMB led the FBM KLCI to a higher close, just 11 points away from the all-time high of 1,594.74 in July 2011, as the firmer blue chips galvanised market sentiment.

At the close, the KLCI was up 10.33 points or 0.66% to 1,583.78. Turnover was 1.63 billion shares valued at RM1.93 billion. Advancing counters beat decliners 540 to 276 while 330 counters were unchanged.

Reuters reported European shares edged up to their highest level in more than a week on Friday, with the European Central Bank's ultra-cheap funding this week helping the euro zone debt market and further reducing risk within the battered banking sector.

Financials were among the top gainers, with the STOXX Europe 600 Banking index rising 0.6 percent and Commerzbank advancing 3%. The index, which was the worst performer in 2011 with a 32% drop, has gained about 19% so far this year.

Among the key regional markets, Japan’s Nikkei 225 rose 0.72% to 9,777.03, Hong Kong’s Hang Seng Index added 0.81% to 21,562.26, Shanghai’s Composite Index added 1.43% to 2,460.69 and Singapore’s Straits Times Index 0.49% higher at 2,993.49.

BAT was the top gainer, adding 40 sen to RM53.50. Its fourth interim dividend of 66 sen per share tax exempt will go ex on Tuesday.

CIMB rose 16 sen to RM7.33, pushing the index up 2.82 points after the banking group moved closer to expand its regional reach by acquiring certain assets of The Royal Bank of Scotland in Asia Pacific.

AMMB added nine sen to RM6.26 while Maybank and Public Bank rose two sen each to RM8.77 and RM13.70.

Petronas Chemical added 15 sen to RM6.90, Genting 14 sen to RM10.60 while DiGi and YTL advanced eight sen each to RM4.12 and RM1.78.

KHSB was the most active counter with 76 million shares done, adding 6.5 sen to 62.5 sen.

Silver Bird was unchanged at 20.5 sen as the price could have bottomed out after being sold down on Thursday where it lost nearly half its value.

China Stationery Ltd saw its share price slipping three sen to RM1.8 as investors took profit following its listing on Feb 24 at the offer price of 95 sen.

Among the decliners, PPB fell 34 sen to RM16.94, Dutch Lady 22 sen to RM29.50, Ta Ann 20 sen to RM5.71 and Hartalega 19 sen to RM8.13.



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ECB boost for regional markets, KLCI eyes all-time high

KUALA LUMPUR (March 2): Key regional markets, especially China and Hong Kong rallied in the morning session on Friday while at Bursa Malaysia, the FBM KLCI cast its eyes on the all-time high of 1,594 on July 8, 2011.

The ringgit broke past the crucial 3.000 level against the US dollar to reach 2.9935 in the morning and it was at 3.0002 at midday.

At 12.30pm, the FBM KLCI was up 11.34 points or 0.72% to 1,584.79 – which was just 10 points of the all-time high of 1,594.74. Turnover was 824.36 million shares valued at RM843.70 million. Gainers beat losers 422 to 246 while 322 stocks were unchanged.

Markets rose following the inflow of cheap European Central Bank funds this week which had eased fears of a meltdown in the euro zone financial sector, overriding some weak data and concerns about surging oil prices, Reuters said.

The ECB's half a trillion euros in cheap, 3-year loans added to the banking system this week underpinned markets, driving down bond yields of highly-indebted euro zone governments, such as Italy, on Thursday.

US light crude oil fell 40 cents to US$108.44. Crude palm oil futures fell RM17 to RM3,263.

Japan’s Nikkei 225 rose 0.67% to 9,772.60, Hong Kong’s Hang Seng Index added 0.97% to 21,595.90, Shanghai’s Composite Index 0.93% to 2,448.66 and Singapore’s Straits Times Index 0.47% to 2,992.95.

At Bursa Malaysia, the gains on blue chips were led by CIMB, Sime Darby and Petronas Chemicals, which helped underpin the overall market sentiment and gave a boost to the smaller cap stocks and lower liners.

CIMB rose 17 sen to RM7.34, pushing the KLCI up 2.99 points to RM7.34 while Sime Darby’s gains of 17 sen to RM10.10 pushed the index up another 2.41 points. PetChem and Genting added 14 sen each to RM6.89 and RM10.60.

The top gainer was Panasonic Malaysia, up 80 sen to RM22.80. BAT added 40 sen to RM53.50 and Oriental Holdings 16 sen to RM6.35.

Perwaja-WA jumped 28 sen to 28.5 sen with 17.14 million units done.

Naim Indah Corp was the most active with 42.33 million shares done, unhinge dat 53 sen.

Silver Bird inched up one sen to 21.5 sen with 28.61 million shares transacted after the sell-down pushed the share price down by 50%.

Dutch Lady fell the most, down 50 sen to RM29.22 but with only 6,800 shares done. PPB lost 30 sen to RM16.98, Hartalega 17 sen to RM8.15 and Petronas Gas six sen to RM16.84.



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Market advances, Sime, PetChem up

KUALA LUMPUR (March 2): Blue chips chalked up gains in mid-morning trade on Friday, with fund buying of heavyweights Sime Darby and Petronas Chemicals underpinning the market sentiment.

At 11am, the FBM KLCI was up 10.63 points to 1,584.08. Turnover was 570.43 million shares valued at RM489 million. There were 351 gainers, 204 losers and 294 stocks unchanged.

Petronas Chemicals climbed 18 sen to RM6.93 and Sime Darby 15 sen to RM10.08 while Genting advanced 10 sen to RM10.56.

Panasonic Malaysia was the top gainer, adding 50 sen to RM22.50 while BAT added 38 sen to RM53.48 and DRB-Hicom 15 sen to RM2.76.

Perwaja-WA jumped 27.5 sen to 28 sen with 15.26 million units done when the warrants were listed on Friday.

Niam Indah Corp was the most active with 30.74 million shares done, slipping 0.5 sen to 52.5 sen.

Silver Bird, which saw its share price halved on Thursday after the company launched a probe into alleged irregularities, managed to gain 1.5 sen to 22 sen.

China Stationery Ltd extended its decline as investors took profit, down four sen to RM1.17.



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Stocks to watch: Silver Bird, Perwaja, CIMB, K. Jetson

KUALA LUMPUR (March 2): SILVER BIRD GROUP BHD [] could continue to be in focus with the latest move by RAM Rating Services Bhd to downgrade the outlook for its debt notes.

The ratings agency placed the group on Rating Watch, with a negative outlook. It also lowered the respective long- and short-term ratings of the group’s RM30 million Commercial Papers/Medium-Term Notes Programme (2005/2012) (CP/MTN), from A2 (negative outlook) and P2 to C3 and NP.

Perwaja’s 280 million warrants will be listed and quoted on Friday. The warrants were issued on the basis of one free warrant for every two shares held as at Feb 24. The tenure of the warrants is 10 years and the strike price is RM1.

CIMB Group moved a closer to the proposed acquisition of certain assets of The Royal Bank of Scotland in Asia Pacific. The assets are cash equities, equity capital markets and corporate finance businesses.

KUMPULAN JETSON BHD []’s unit has secured a RM14.98 million contract from the Shah Alam City Council to undertake renovation for the Wisma MBSA.

TENAGA NASIONAL BHD [] withdrew its suit against INTEGRAX BHD [] and seven other defendants with no order as to costs for Integrax. Integrax said following the withdrawal of the suit, all past disagreements between the company’s major shareholders have been fully settled.

Malaysian Building Society Bhd (MBSB) targets gross loan growth of 20% this year, according to its chief executive officer Datuk Ahmad Zaini Othman. MBSB's gross loans in the personal financing sector totalled RM7 billion and they were expected to increase to RM9 billion this year.



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RAM Ratings downgrades Silver Bird Group’s debt notes, negative outlook

KUALA LUMPUR (March 1): RAM Rating Services Bhd has downgraded the respective long- and short-term ratings of SILVER BIRD GROUP BHD []’s RM30 million Commercial Papers/Medium-Term Notes Programme (2005/2012) (CP/MTN), from A2 (negative outlook) and P2 to C3 and NP.

“We have concurrently placed the group on Rating Watch, with a negative outlook,” it said on Thursday.

RAM Ratings said the steep downgrade was premised on the heightened likelihood of default on the group’s CP/MTN following a series of unfavourable developments announced on Feb 29, 2012.

These include the failure of its units to repay their banking facilities amounting to RM5.37 million, a disclaimer of opinion expressed by the auditors on the Group’s audited accounts for FYE 31 October 2011 (FY Oct 2011), and the suspension from work of three key personnel (the group managing director, the executive director and a senior member of its management team).

RAM Ratings said based on the terms of the CP/MTN and as stated in the trust deed, the default on the Group’s banking facilities constitutes a cross-default on the CP/MTN if the noteholders wish to exercise their rights.

Meanwhile, the suspension from work of the three key personnel is to facilitate an internal inquiry into allegations of, among others, irregularities in the group’s accounts. Silver Bird Group’s board has initiated a forensic review of its accounts, to be completed within three months. The group is also expected to announce its plan on the regularisation of the abovementioned selective defaults.

“Under the circumstances, RAM Ratings opines that Silver Bird Group’s repayment capacity on its RM15 million of outstanding CP/MTN (due on April 15, 2012) is now highly questionable.

“We note that certain numbers in the group’s just-released audited FY Oct 2011 accounts vary substantially from those stated in its quarterly results announced on Dec 30, 2011.

“In particular, Silver Bird Group’s cash balances have been restated at only RM3.56 million, in contrast to the earlier RM35.84 million. Even if its repayment aptitude were to remain intact, the Group may opt to suspend payment of its financial obligations until the findings of the forensic review are revealed (i.e. as in the case of its subsidiaries’ RM5.37 million of banking facilities), which is likely to only take place after the maturity of the CP/MTN,” RAM Ratings said.

The ratings agency said the negative outlook on Silver Bird Group’s previous ratings had reflected our concerns over its ability to expand its market share in the premium-bread market and preserve its already-thin margins amid rising costs. Moreover, thegGroup’s recent venture into the manufacture of dairy products exposes it to new risks.

RAM Ratings said the Rating Watch may be resolved following the completion of SBGB’s forensic review and regularisation plan, provided these are completed before April 15, 2012.

Alternatively, the ratings will be downgraded to D should the group fail to redeem the outstanding CP/MTN upon maturity.



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Sime, PetChem underpin KLCI amid weaker market

KUALA LUMPUR (March 1): Fund buying of Sime Darby and Petronas Chemicals provided the support for the FBM KLCI on Thursday amid a cautious market which has seen trading volume declining in recent weeks.

At the close, the KLCI was up 3.8 points or 0.24% to 1,573.45. Turnover was 1.62 billion shares valued at RM2.025 billion. However, declining stocks beat advancers 506 to 309 while 302 stocks were unchanged.

Among the key regional markets, South Korea’s Kospi was the top performer, up 1.33% to 2,030.25. Japan’s Nikkei 225 fell 1.27% to 9,707.37, Hong Kong’s Hang Seng Index lost 1.35% to 21,387.90 while Singapore’s Straits Times Index lost 0.51% to 2,978.84.

Reuters reported European shares and the euro reversed early losses on Thursday as the impact of the latest massive cash injection by the European Central Bank lifted sentiment, overwhelming fears that further U.S. monetary easing could be on hold.

Data showing new factory orders for Asia's manufacturing powerhouses perked up a bit in February, easing some concerns about the global economic slowdown, it said.

US light crude oil rose 25 cents to US$107.32 while Brent Brent crude futures prices rose 63 cents to US$123.29 a barrel.

Crude palm oil third-month futures rose RM23 to RM3,268 per tonne, spurred by positive factory data from second-largest importer China but gains were capped as export trends showed weaker demand.

At Bursa Malaysia, dealers said market sentiment was rather lacklustre with the larger funds picking up index-linked stocks while at the bottom of the spectrum, there was some unwinding of penny and lower liner stocks by traders.

Among the index-linked stocks, Sime Darby’s 24 sen gain to RM9.93 pushed the KLCI up 3.41 points while PetChem;s five sen gain to RM6.75, nudged the index up by 0.5 points,.

BAT was the top gainer, up 90 sen to RM53.10 as investors opted for dividend stocks. Panasonic Malaysia added 60 sen to RM22, Guinness Anchot 28 sen to RM13.40 and Nestle 20 sen to RM56.

Dijaya Corp jumoed 21 sen to RM1.63 while HLFG and KLK gained 14 sen each to RM12.20 and RM23.56.

Naim Indah Corp, which was in the black in the latest quarter, rose 4.5 sen to 53 sen and it was the most active with 116.22 million shares done.

There was some unwinding of positions in China Stationery, which fell 17 sen to RM1.21 with 72.72 million shares done. However, it has fared well since its listing on Feb 24 at an offer price of 95 sen.

Silver Bird lost nearly half of its value, plunging 20 sen to 20.5 sen with 26.44 million shares done. Silver Bird Group suspended its group managing director, Datuk Tan Han Kook and two other key executives effective Feb 24 as it undertakes an internal inquiry into allegations of irregularities in the company’s accounts which may amount to approximately RM111.5 million.

Dutch Lady was the top loser, down 26 sen to RM29.72 after the strong run-up. GENTING BHD []’s 14 sen decline to RM10.46, dragged the KLCI down 1.22 points.

Other losers were Fima Corp, down 15 sen to RM6.21 and RHB Cap 15 sen to RM7.80.



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Silver Bird sees RM79.3m erased from market cap

KUALA LUMPUR (March 1): SILVER BIRD GROUP BHD [] saw RM79.30 million erased from its market capitalisation on Thursday as its share price was almost halved following alleged irregularities in its accounts.

At 3.20pm, it was down 19.5 sen to 21 sen with 21.11 million shares done. Based on the paid-up of 406.681 million shares at the pre-suspension price of 40.5 sen, the market capitalisation was reduced to RM83.369 million.

Silver Bird Group suspended its group managing director, Datuk Tan Han Kook and two other key executives effective Feb 24 as it undertakes an internal inquiry into allegations of irregularities in the company’s accounts which may amount to approximately RM111.5 million.



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KLCI advances but broader market lacklustre

KUALA LUMPUR (March 1): Blue chips advanced in the morning session on Thursday, underpinned by gains in BAT and Sime Darby but the overall market was lacklustre as trading volume shrunk.

At 12.30pm, the FBM KLCI was up 4.73 points to 1,574.38. Turnover was 853.20 million shares done valued at RM924.78 million, reflecting the decline in retail participation. There were 269 gainers, 411 losers and 315 stocks unchanged.

Consumer-related stocks were again the top gainers. BAT rose 86 sen to RM53.06, Nestle 30 sen to RM56.10 and Guinness Anchor 28 sen to RM13.40.

Sime Darby added 20 sen to RM9.89 after posting a strong set of results in the second quarter.

Among the smaller cap stocks, Dijaya Corp rose 21 sen to RM1.63 and the warrants 14.5 sen to 64 sen.

China Stationery Ltd fell 18 sen to RM1.20 with 52.15 million shares done. This was the biggest decline since its listing last Thursday. Its offer price was 95 sen.

Silver Bird was in focus, falling 20 sen to 20.5 sen in active trade when it resumed trading.

Among the decliners were Carlsberg, down 26 sen to RM10.14, Far East 19 sen to RM7.11, NSOP 14 sen to RM5.94,BLD PLANTATION []s nine sen to RM9.14 and Kulim nine sen also to RM4.44.



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Market cautious, Sime provides lift to KLCI

KUALA LUMPUR (March 1): The broader market was cautious in late morning trade on Thursday following higher than expected losses from MAS and Proton and mixed regional markets.

However, heavyweight Sime Darby provided the lift to the FBM KLCI after its stronger set of second quarter results.

At 10.43am, the KLCI was up 4.87 points to 1,574.52. Turnover was 502.99 million shares valued at RM481.83 million. There were 226 gainers, 320 losers and 291 stocks unchanged.

Sime Darby rose 14 sen to RM9.83 with 10.80 million shares done. BAT gained 70 sen to RM52.90, GAB 26 sen to RM13.38, Petronas Dagangan 18 sen to RM18.34, Dijaya Corp 13 sen to RM1.55 and Petronas Gas 12 sen to Rm16.92.

Tecnic was the top loser, down 20 sen to RM3.81 while Silver Bird lost 17.5 sen to 23 sen and CSL 14 sen to RM1.24.

Among the PLANTATION []s, Far East lost 19 sen to RM7.11 in thin trade, NSOP 18 sen to RM5.90 and BLD Plantations 13 sen to RM9.37.



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Flash: Silver Bird sees Sell order at 28 sen in pre-market opening

KUALA LUMPUR (March 1): SILVER BIRD GROUP BHD [] saw a sell order at 28 sen for 15,000 shares in pre-market opening trade at 8.31am on Thursday.

There were buy orders at 25 sen for 50,000 shares.

Market is expecting the shares to face selling pressure when it resumes trading on Thursday.

Its pre-suspension price was 40.5 sen.

On Wednesday, the company cautioned investors in the trading of its securities after the auditors have expressed a disclaimer opinion on the company’s latest audited accounts for the financial year ended Oct 31, 2011.

Silver Bird Group suspended its group managing director, Datuk Tan Han Kook and two other key executives effective Feb 24 as it undertakes an internal inquiry into allegations of irregularities in the company’s accounts.



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Stocks to watch: Silver Bird, MAS, Proton, Ekovest

KUALA LUMPUR (March 1): Blue chips could extend their gains on Thursday, as regional market sentiment would receive the boost after the European Central Bank provided 530 billion euros (US$711 billion) of cheap funding for banks.

The ECB's Long Term Refinancing Operation (LTRO) has been a major factor behind the rally in European equities since the turn of the year.

A total of 800 banks borrowed money at the tender, the second round of three-year funds, with demand exceeding the 500 billion euros expected by traders polled by Reuters.

At Bursa Malaysia, the FBM KLCI was up 12.92 points or 0.83% to close at 1,569.65, its highest since July 2011.

However, the losses from MALAYSIAN AIRLINE SYSTEM BHD [] (MAS) and PROTON HOLDINGS BHD [], which were expected by the market, could have some impact.

SILVER BIRD GROUP BHD [], which resumes trading on Thursday, cautioned investors in the trading of its securities after the auditors have expressed a disclaimer opinion on the company’s latest audited accounts for the financial year ended Oct 31, 2011.

Silver Bird Group suspended its group managing director, Datuk Tan Han Kook and two other key executives effective Feb 24 as it undertakes an internal inquiry into allegations of irregularities in the company’s accounts.

Meanwhile, MAS posted net losses totaling RM1.277 billion in the fourth quarter ended Dec 31, 2011 versus net profit of RM225.92 million a year ago as it severely affected by high fuel costs and non-fuel expenses.

Proton posted heavier net losses of RM88.20 million in the third quarter ended Dec 31, 2011 compared with the net loss of RM60.10 million a year ago due to a decline in year-end sales.

Other stocks to watch are SIME DARBY BHD [], KENCANA PETROLEUM BHD [], MAH SING GROUP BHD [], and EKOVEST BHD [].

Sime Darby reported net profit of RM1.10 billion in the second quarter ended Dec 31, 2011. For the first half, it reported a 42% increase in net profit to RM2.175 billion from RM1.531 billion in the previous corresponding period.

Kencana Petroleum Bhd has secured a RM74 million contract from ExxonMobil Exploration and Production Malaysia (EMEPMI) to fabricate the substructure for a platform off Terengganu.

Mah Sing Group Bhd expanded its land bank with the latest acquisition of 157 acres (63.4 ha) in Bandar Kundang, Gombak for RM40.94 million about RM6 per sq ft. It proposed to build a self-contained, secured lifestyle township named M Residence 2@Rawang with a gross development value of about RM650 million.

Ekovest's earnings soared 615.82% to RM11.31 million for its second quarter ended Dec 31, 2011, from RM1.58 million a year ago, due to increased revenue from its CONSTRUCTION [] arm.

Malaysia Steel Works (KL) Bhd posted net losses of RM13.33 million in the fourth quarter ended Dec 31, 2011 compared with net profit of RM8.99 million a year ago. For the financial year ended Dec 31, 2011, it was still profitable, with net profit of RM24.53 million, or down 12.6% to RM24.53 million from RM28.09 million in FY10.

Poultry-based TEO SENG CAPITAL BHD [] posted a 12.95% increase in its profits to RM7.15 million for the third quarter ended Dec 31, 2011, from RM6.33 million a year ago, underpinned by larger sales of eggs and better prices.



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Silver Bird to probe into accounts, MD, 2 key execs suspended

KUALA LUMPUR (Feb 29): SILVER BIRD GROUP BHD [] has suspended its group managing director, Datuk Tan Han Kook and two other key executives effective Feb 24 as it undertakes an internal inquiry into allegations of irregularities in the company’s accounts.

The company said on Wednesday the other two suspended were executive director Ching Siew Cheong and the general manager for accounts and finance Lai Poh Mei. All three were suspended with full pay and benefits.

“Their suspension is to facilitate the conduct of an internal inquiry into allegations of, amongst others, irregularities in the company’s accounts which were recently brought to the attention of the board of directors when the auditors expressed concerns over the validity and recording of certain transactions for which the auditors were not able to obtain the relevant supporting evidence and satisfactory explanations from the management of the company,” Silver Bird Group said in a statement to Bursa Malaysia.

The announcement confirmed The Edge Financial Daily report on Wednesday that three key executives were suspended pending the outcome of an internal investigation into what is alleged to be financial irregularities.

Silver Bird also said the board of directors had resolved to maintain its financial year end at Oct 31, 2011.

"Hence, the company will issue its AAA (audited annual accounts) for the financial year ended Oct 31, 2011 by Feb 29, 2012,” it said.

Silver Bird said among the main concerns expressed by the auditors, were the contract for the design, renovation or refurbishment to an existing warehouse and factory with a contract sum of RM10.6 million.

There were also concerns about payments made to an equipment supplier of RM69.0 million for up to Oct 31, 2011; the sweetened creamers business segment which recorded a revenue of RM31.9 million for the FYE 2011 and audit trail of all sales transactions.

Silver Bird said a special committee comprising of five non-executive directors had been set up to oversee the operations of the group.

“At this stage, the board of directors is not able to ascertain the extent of the financial and operational impact of the alleged irregularities, although, based on the issues highlighted by the auditors, the maximum exposure faced by the group arising from the alleged irregularities may amount to approximately RM111.5 million,” it said.

Silver Bird also said in order to ascertain the financial position of the group, the company had on Feb 26, appointed PKF Advisory Sdn Bhd as the forensic accountants to conduct a forensic review into the affairs of the company.

The board of directors had appointed Messrs Wong Kian Kheong on Feb 25, 2012 as legal advisors for the company and intends to form an inquiry committee to look into the investigation on the group’s accounts.

“The forensic accountants and the inquiry committee shall be required to complete their investigations within three months from the date of this announcement,” it said.

The board has lodged a police report in relation to the alleged financial irregularities on Feb 26 and reported the matter to the Securities Commission, Bursa Malaysia Securities Bhd and the Companies Commission of Malaysia on Feb 27.

“Given that the auditors have expressed a disclaimer opinion on the company’s latest audited accounts for the financial year ended Oct 31, 2011, the shareholders and investors are advised to trade cautiously with regard to the company’s securities,” it said.

Trading resumes on Thursday.



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Silverbird to face Bursa, SC

The company needs to explain delay in submission of audited statements

PETALING JAYA: It is a glaring anomaly when a listed company is late in producing its audited accounts.

Therefore, it will be no surprise to see senior executives of Silver Bird Group Bhd and representatives of its external auditors at the Bursa Malaysia and Securities Commission (SC) buildings this week following the company's announcement on Friday that it could not meet the Feb 29 deadline for the issuance of its audited financial statements for the year ended Oct 31, 2011.

“It's a given that we (the Silver Bird management and auditors Crowe Horwath) will have to engage with the authorities over the next few days to explain the circumstances behind the delay,” says a source close to the matter.

“They will surely provide Bursa Malaysia and the SC with more information than the explanation given in the Friday announcement to the exchange.

“The reason for failing to issue the outstanding financial statements within the relevant timeframe is due to the company needing more time to resolve audit queries raised by the auditors on Feb 22.”

Group managing director Datuk Jackson Tan Han Kook, declined to comment when contacted by StarBiz yesterday evening, saying he was in a meeting.

Silver Bird, which makes bread and confectionery, is required to issue its audited accounts within four months from its financial year-end. In the announcement, the company said it expected to issue the audited financial statements by May 31, adding that it was in the process of compiling the required details.

Under the listing rules, if Silver Bird fails to issue the audited accounts by March 7, trading in its securities will be suspended the day after.

Lembaga Tabung Haji is the company's largest shareholder, with 23.34%. Tan and Koperasi Permodalan Felda Malaysia Bhd are the other substantial shareholders, with 13.71% and 13.36% respectively.

According to its unaudited results for the fourth quarter ended October last year, Silver Bird recorded a profit of RM4.9mil for financial year 2011, a 35% jump from the previous year whereas revenue increased by only 3%.



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RAM Ratings to maintain surveillance on Silver Bird Group’s RM30m debt notes

KUALA LUMPUR (Feb 17): RAM Rating Services Bhd will continue to monitor the A2/Negative/P2 rating of SILVER BIRD GROUP BHD []’s RM30 million commercial papers/medium-term notes programme (2005/2012).

The ratings agency also said on Friday it had received confirmation that Silver Bird Group fully redeemed the last tranche of its RM70 million serial bonds (2005/2012) on Jan 13, ahead of the debt facility’s maturity date of Feb 15.

RAM said the facility has been cancelled and it no longer has any rating obligation on the serial bonds which had been previously rated A2, with a negative outlook.



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Stocks to watch: Ramunia, Scomi Engineering, MPHB, Silver Bird

KUALA LUMPUR (Jan 23): Stocks on Bursa Malaysia will have to take their cue from the European and US markets in the holiday-shortened trading week, starting on Wednesday.

Trading activity is expected to see lower trading volume as most traders and investors take leave for the Chinese New Year holidays.

In Europe on Monday, fresh signs that a deal may be reached on a Greek debt restructuring, as euro zone finance ministers prepared to decide on acceptable terms for approving further bailout funds.

Reuters reported demand picked up after French Finance Minister Francois Baroin told journalists in Paris that a deal with private sector investors about resolving Greece's debt crisis was taking shape.

However, German Finance Minister Wolfgang Schaeuble, at the same event, said he wanted a second bailout programme for Greece to be in place by March.

Nonetheless, with Bursa Malaysia only reopening on Wednesday, investors would be watching closely the developments unfolding, mainly in Europe on Tuesday.

At Bursa Malaysia, among the stocks to watch include RAMUNIA HOLDINGS BHD [], SCOMI ENGINEERING BHD [], MULTI-PURPOSE HOLDINGS BHD [] (MPHB) and SILVER BIRD GROUP BHD []

Ramunia was given a new lease of life following Bursa Malaysia Securities Bhd’s approval for its proposed regularisation plan which includes a rights issue. The regulator had agreed to the cancellation of 25 sen of the par value of the existing shares of 50 sen each.

Last Friday, the company announced Bursa Securities also agreed to the proposed renounceable rights issue of up to 391.44 million shares of 25 sen each at an indicative price of 40 sen per share on the basis of two for five shares held after the change in par value.

Ramunia said Bursa Securities agreed to the business rejuvenation plan which involved business strategies to build up the group’s order book in relation to major offshore fabrication works as well as other oil and gas related business activities.

Scomi Engineering Bhd’s consortium partners have officially sealed the contract with Brazil’s Amazonas state for the RM2.56 billion monorail system.

The Manaus monorail system will include 20 km of monorail line from Largo da Matriz to Jorge Teixeira, nine stations and 10 train sets of six cars each.

The total award is valued at Brazilian Real 1.46 billion (RM2.56 billion) of which Scomi Engineering’s share is Real 339.9 million (RM597.2 million). The project is expected to be completed in 40 months from the date of the signing of the contract.

The Edge weekly reported in its Jan 23 issue that MPHB is in talks to sell a hotel in Kuala Lumpur for about RM50 million as part of its asset rationalization scheme. MPHB’s unit owns hotels in Penang and in Kuala Lumpur.

Analysts’ expectations are that it could transform into a higher-yielding company. UOB Kay Hian Malaysia Research said MPHB could re-rate in the second half of 2012 as investors start to price in significant divestment and monetisation of its non-gaming assets.

It said MPHB was trading at a steep discount to consensus RNAV of RM3.40 and at a prospective price-to-earnings multiple of 9.9 times on consensus’ forecast.

The Edge also reported that Silver Bird targets to be a global player in the food business as it hopes to leverage on its major shareholder Koperasi Permodalan Felda Malaysia Bhd. Plans are afoot to include other basic food products in various countries, according to Silver Bird group managing director Datuk Jackson Tan.

Positive news from a “win-win” situation for S P Setia Bhd president and chief executive officer Tan Sri Liew Kee Sin and Permodalan Nasional Bhd (PNB) should provide some interest in the property developer.

Under the revised offer announced last Friday, PNB, Liew and S P Setia would also ink a management agreement where Liew would remain as group president and CEO for three years following the close of the revised offer.

S P Setia said PNB agreed, in the three years following the close of the takeover offer, Liew would be given a put option giving him the right to sell his 8% stake to PNB progressively in tranches at the same price of RM3.95 for each S P Setia share, should he desire to do so.

However, trading upside would be capped by the five sen increase in the share and warrants offer prices to RM3.96 and 96 sen under the revised offer.

UMW HOLDINGS BHD [] could see some trading interest after Perodua, in which it holds a substantial stake, allocated RM200.5 million for capital expenditure this year, which includes building its new flagship 3S centres.

Perodua would invest RM30 million to RM40 million for the centre at Section 19, Petaling Jaya, as a model of its future sales and service centre nationwide.



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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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