Stocks to Watch MAHB, TA Global, Maybank, Aliran Ihsan, MPI

KUALA LUMPUR (April 26): The Malaysian stock market may take the cue from domestic concerns ahead of the coming general election, as investors assess the impact of the much-anticipated Bersih 3.0 rally on Saturday.

Analysts said these local factors could have the upper hand in dictating the direction of the FBM KLCI, despite more optimistic sentiment from the global backdrop.

Trading on the local bourse was volatile on Thursday, as the benchmark erased gains to sink into the red before closing up with a 0.34-point gain to 1,579.69. That could be indicative of trading dynamics on Friday.

Stocks to watch on Friday are Malaysia Airports Holdings Bhd (MAHB), TA Global Bhd, MALAYAN BANKING BHD [] (Maybank), ALIRAN IHSAN RESOURCES BHD [], and MALAYSIAN PACIFIC INDUSTRIES [] Bhd (MPI).

Airport operator MAHB said first quarter (1Q) net profit rose 7% from a year earlier, as revenue growth mitigated the impact of higher operating expenses. MAHB said net profit came to RM102.73 million in the quarter ended March 31, 2012, against RM96.09 million previously. Revenue grew 6% to RM657.71 million from RM617.77 million.

TA Global, a property developer and investor, is acquiring the Movenpick Karon Beach Resort in Thailand from Saudi Arabia-based Kingdom Holding Co for US$90.21 million (RM276.94 million), a move which will see the acquirer making its initial venture into Thailand's hotel industry. TA Global said it is purchasing the entire stake in two wholly-owned units of Kingdom Holding — namely, Kingdom 5-KR-194 Ltd and Kingdom 5-KR-195 Ltd, under which the hospitality assets are held.

Maybank and water-treatment specialist Aliran Ihsan shares will trade ex-dividend on Friday. Maybank plans to reward shareholders with a final cash dividend of 36 sen a share, less 25% tax for the six-months ended Dec 31, 2011. Note that Maybank had changed its financial year end from June 30 to Dec 31 in July last year.

Aliran Ihsan plans to pay a single-tier first interim dividend of 8.5 sen a share for financial year ending Dec 31, 2012.

Semiconductor manufacturer MPI said it posted a net loss of RM7.43 million in the third quarter (3Q) ended March 31, 2012 against a net profit of RM5.05 million a year earlier, as revenue fell 18% to RM275.76 million from RM334.82 million. The company said revenue fell as the group registered lower sales in major markets — including European and Asian countries — apart from the US. MPI said it plans to reward shareholders with a second interim tax-exempt dividend of five sen a share for financial year ending June 30, 2012.



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TA Global buys Movenpick hotel assets in Thailand for RM227 million

KUALA LUMPUR (April 26) : TA Global Bhd is acquiring the Movenpick Karon Beach Resort in Thailand from Saudi Arabia-based Kingdom Holding Co for US$90.21 million (RM276.94 million), a move which will see the acquirer making an initial venture in Thailand’s hotel industry.

In a statement to Bursa Malaysia on Thursday, TA Global, a property developer and investor, said it will purchase the entire stake in two wholly-owned units of Kingdom Holding, namely, Kingdom 5-KR-194 Ltd and Kingdom 5-KR-195 Ltd, under which, the hospitality assets are parked under.

“The proposed acquisition will further enhance TA Global’s hospitality operations in major cities around the world and expand its existing portfolio of hospitality PROPERTIES [] into Thailand.

“In addition to that, TA Global believes that the proposed acquisition will provide steady revenue stream and enhance the revenue contribution from its hospitality division to the group,” said the acquirer which will finance the exercise with internal funds and borrowings.



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TA Global gains, secures Canada project

TA Global Bhd, a property developer, gained 1.7 per cent to 30 sen, heading for the largest gain since Feb 10. The company agreed a plan with Birkbeck Trust to jointly develop a hotel and residential project in Vancouver, Canada, with a gross development value of C$496.4 million, according to a statement to the Malaysia’s stock exchange. -- Bloomberg



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TA Global unveils maiden residential project in Australia

KUALA LUMPUR: TA Global Bhd has launched the first phase of its maiden residential project in Australia.

Dubbed Little Bay Cove, the 33.6-acre (13.6ha) project along Sydney’s coastline is a joint venture development with Australia’s Charter Hall Group with a gross development value of A$600 million (RM1.9 billion).

“Little Bay Cove provides the platform for us to showcase the best practices in developing a sustainable community with a mix of housing types at affordable prices. It is one of

Sydney’s last remaining beachside communities and offers a desirable lifestyle in one of the city’s sought after coastal locations,” said Kimmy Khoo, executive director of TA Global.
The launch of the first phrase, known as Solis, was held simultaneously in Malaysia and Australia on Dec 3.

Despite the uncertainties in the global economy as a result of the eurozone debt crisis, Khoo is confident Little Bay Cove will do well.

“The property development sector in Sydney has been relatively shielded, according to the Australian Bureau of Statistics, the preliminary price index for established houses in Sydney has dropped only 0.2% between September 2010 and September this year,” she told The Edge Financial Daily.

Khoo said management has received a very encouraging response following the launch. The developer is targetting first home buyers, investors and upgraders.
“We are expecting strong demand from Asian buyers,” she added.

Solis, the Latin word for “sun”, comprises 45 apartment units, all of which face north and have spacious balconies. Buyers can choose from three layouts with built-ups ranging from 645 to 1,040 sq ft. Prices of the apartment units are tagged at A$495,000.

The entire project will take five years to develop and will offer about 570 residences ranging from apartments, courtyard homes to land allotments. Prices for the upcoming launches of courtyard homes are indicatively from A$985,000 while vacant land lots are from A$1.2 million.

Little Bay Cove is located just 20 minutes’ drive from the Central Business District of Sydney and 10 minutes from the University of New South Wales and the airport. It is also within walking distance of four golf courses, Little Bay Beach, a retail village, parks, playgrounds, a community centre and a chapel located in the adjacent established residential community at Prince Henry.

The green and eco-friendly coastal residential enclave is designed by several Australian firms, including Smart Design Studio, Tony Caro Architecture, Fox Johnston and SJB Architects. Little Bay Cove has committed to reducing potable water use by 60% and energy use by 40% to 50%. About 50% of the estate is dedicated to open spaces.

The green features in all the units are: recycled water supply, water efficient taps and flushing systems,energy efficient lighting, dishwashers and clothes dryers, six-star instantaneous gas hot water systems,motion sensor controls to common area lighting and ventilation and solar photovoltaic panels to power common area lighting.

The site for Little Bay Cove was previously home to the University of New South Wales’ sporting fields and research facility. It was acquired in 2008 by Charter Hall.

TA Global has invested in Australia since 1997, when it first acquired the Wales House heritage building on 66 Pitt Street and redeveloped the property into Radisson Blu Plaza Hotel Sydney, a 362-room five-star hotel. In 2009, the group acquired The Westin Melbourne, a freehold 262-room luxury full-service hotel located in the heart of Melbourne’s central business district.
Next year, TA Global is set to launch the land lots in Little Bay Cove while in Richmond, Canada, it plans to launch the Azalea Apartments and Magnolia Apartments in The Gardens.

Khoo said the group is continuously on the lookout to buy or undertake property development projects in Australia, especially in commercially viable areas in cities such as Perth, Sydney and Melbourne.




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CIMB Research has technical buy on TA Global at 33 sen

KUALA LUMPUR (Nov 18): CIMB Equities Research has a technical buy on TA Global at 33 sen at which it is trading at a price to book value of 0.8 times.

It said on Friday that similar to TA Enterprise, TA Global also broke out of its medium term downtrend channel on Thursday.

“We expect the next upswing to lift prices towards 35 sen. If this level is also taken out, the following resistance levels are 37 sen and 39.5 sen. The 200-day SMA is also a magnet for prices,” it said.

CIMB Research said the technical landscape is improving. MACD has staged a positive crossover while RSI is also rising towards the upper band of the neutral zone.

“As long as prices stay above the 31.5 sen level, we will continue to stick with the bull’s camp. We will review our call if prices break below 31 sen,” it said.



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