Stocks to watch: AFG, Maybank, Tradewinds Plant, KrisAssets

KUALA LUMPUR (Feb 22): With the corporate results season for the October-December in full swing until Feb 29, they will provide the leads for investors.

So far the banks and PLANTATION []s have been reporting firm set of earnings, based on the recent results, though there had been some writebacks.

Among the stocks to watch are ALLIANCE FINANCIAL GROUP BHD [] (AFG), MALAYAN BANKING BHD [], Tradewinds Plantations Bhd and TH PLANTATIONS BHD [].

Also in focus could be QL RESOURCES BHD [], KRISASSETS HOLDINGS BHD [], Malaysia Marine and Heavy Engineering Holdings Bhd (MMHE), Malaysia Airports Holdings Bhd (MAHB), TEBRAU TEGUH BHD [] and ENG TEKNOLOGI HOLDINGS BHD [].

AFG posted net profit of RM121.29 million in the third quarter ended Dec 31, 2011, up 9% from the RM111.26 million, underpinned by growth in interest income due to the expansion in loans.

Its revenue increased by 9.2% to RM311.43 million from RM284.98 million. Earnings per share were 7.90 sen compared with 7.30 sen.

AFG said for the nine months ended Dec 31, 2011, the earnings rose 14.6% to RM371.80 million from RM324.27 million while it recorded a 9% increase in revenue of RM935.80 million from RM858.18 million.

Maybank has proposed to establish a subordinated programme of up to RM7 billion in nominal value. The net proceeds from the issuance of the subordinated notes will be utilised to fund Maybank’s working capital, general banking and other corporate purposes.

Tradewinds Plantations’ earnings increased 17.5% to RM97.75 million in the fourth quarter ended Dec 31, 2011 from RM83.33 million a year ago, boosted by an increase in its palm products production.

Its revenue soared 174% to RM804.23 million from RM293.45 million.

For the year ended Dec 31, 2011, its net profit increased 79.9% to RM335.46 million from RM186.40 million. Revenue rose 86.8% to RM1.70 billion from RM909.13 million.

TH Plantations recorded a 11.3% fall in profits to RM37.71 million in the fourth quarter ended Dec 31, 2011 from RM42.52 million a year ago, due to maintenance carried out during the quarter.

Its revenue increased by 1.99% to RM130.09 million from RM128.53 million. It proposed dividend per share of 12.50 sen.

For the year ended Dec 31, 2011, net profit increased 39.5% to RM124.83 million from RM89.48 million. Revenue rose 18.8% to RM434.86 million to RM365.97 million.

QL Resources' net profit increased by 3.8% to RM34.42 million in the fourth quarter ended Dec 31, 2011 from RM33.14 million a year ago, due to increased sales in its marine product manufacturing arm, palm oil activities and livestock farming. Its revenue increased 10.6% to RM498.96 million from RM450.95 million a year ago.

KrisAssets said the market value of its two malls -- Mid Valley Megamall and The Gardens Mall in Kuala Lumpur – have been revalued at RM3.290 billion as at Dec 31, 2011. It said this was RM470 million above the valuation as at Sept 30 of RM2.82 billion.

MMHE’s earnings fell 65.4% to RM46.35 million in the third quarter ended Dec 31, 2011 from RM134.15 million a year ago. Its revenue declined 45.6% to RM716.15 million from RM1.316 billion a year ago.

For the nine months, its earnings fell 36.1% to RM205.60 million from RM322.11 million in the previous corresponding period. Its revenue declined 39.1% to RM2.137 billion from RM3.512 billion.

MAHB’s earnings were just up 0.8% to RM122.88 million in the fourth quarter ended Dec 31, 2011 from RM121.91 million a year ago. Its revenue increased by 2% to RM837.38 million from RM820.60 million.

For the financial year ended Dec 31, 2011, its earnings rose 26.6% to RM401.11 million from RM316.78 million. Its revenue increased 11.6% to RM2.754 billion from RM2.468 billion.

Tebrau Teguh reported net losses of RM1.13 million for the fourth quarter ended Dec 31, 2011 due to higher operating expenses. It was also in the red with net loss of RM212,000 a year ago.

For FY11, it was still profitable, with net profit of RM2.58 million, down by 29% from RM3.63 million in FY10. Revenue fell 37.3% to RM113.41 million from RM180.97 million.

Eng Teknologi was in the red for the fourth quarter ended Dec 31, 2011 and for the financial year with net losses of RM51.81 million, and RM42.90 million. The manufacturer of components for hard disk drives said it wasimpacted by the severe floods in Thailand last year.



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Tebrau Teguh 4Q net loss RM1.13m, FY11 net profit RM2.58m

KUALA LUMPUR (Feb 21): TEBRAU TEGUH BHD [], which was actively traded recently following a takeover exercise, reported net losses of RM1.13 million for the fourth quarter ended Dec 31, 2011 due to higher operating expenses. It was also in the red with net loss of RM212,000 a year ago.

It reported on Tuesday that its revenue fell 49.4% to RM19.48 million from RM38.56 million a year ago. Loss per share was 0.17 sen compared with loss per share of 0.03 sen.

Tebrau Teguh said revenue from its property development increased from RM1.53 million to RM1.95 million due to higher income from joint venture development activities. Hence, gross profit was higher at RM1.15 million.

As for its CONSTRUCTION [] business, it said revenue from this segment fell from RM37.14 million to RM17.53 million. Gross profit reduced from RM2.21 million to RM1.19 million.

For FY11, it was still profitable, with net profit of RM2.58 million, down by 29% from RM3.63 million in FY10. Revenue fell 37.3% to RM113.41 million from RM180.97 million.

However, Tebrau Teguh said it was upbeat on its outlook for FY12. Its property development project comprising of 544 apartments with a gross development value of RM165 million would be launched o the second half of 2012.

It also expected construction activity to be better after it was awarded a RM303 million contract by the Johor State Secretary to develop 413 acres of land in Pengerang, Kota Tinggi into a comprehensive mixed development.



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Stocks to watch: AMMB, Dialog, RCE, Tebrau Teguh

KUALA LUMPUR (Feb 15): With the broader market showing signs of weakness, whether the market can perk up again hinges on fresh corporate developments and earnings which are going into full swing next week.

Also over the past two trading days, late fund support has helped the FBM KLCI close higher but volume has been declining in the broader market, with recent leaders among penny stocks and lower liners fading.

On the economic front, Bank Negara Malaysia is scheduled to release its fourth quarter GDP data after market. Most importantly, investors would want to hear is Bank Negara Malaysia’s assessment of the economy and its outlook.

As for stocks, among those which could see trading interest are AMMB HOLDINGS BHD [], DIALOG GROUP BHD [], RCE CAPITAL BHD [] and TEBRAU TEGUH BHD []. Naim Indah could also see trading interest with downside bias as more traders take profit.

AMMB posted net profit of RM357.18m for the third quarter ended Dec 31, 2011, up 9.8% from the RM325.31 million a year ago underpinned by profit growth across most divisions. Its revenue increased 7.2% to RM1.955 billion from RM1.824 billion. Earnings per share were 11.95 sen compared with 10.83 sen.

For the nine-months ended Dec 31, 2011, its earnings increased by 13.8% to RM1.168 billion from RM1.026 billion in the previous corresponding period. Its revenue registered a 14% increase to RM6.047 billion from RM5.302 billion.

Dialog’s earnings rose 15.1% to 41.45 million in the second quarter ended Dec 31, 2011 from RM35.99 million a year ago, boosted by higher revenue from the consolidation of its new businesses and operations.

Its revenue increased at a stronger pace of 33.5% to RM358.62 million from RM268.53 million. Its earnings per share were 2.10 sen compared with 1.84 sen.

Meanwhile, Dialog’s 396.87 million rights shares issued under its rights issue with warrants will be listed and quoted on Wednesday.

Bernama reports RCE Capital Bhd's pre-tax profit fell 10.4% to RM105.237 million for the nine-month period ended Dec 31, 2011 from RM117.44 million a year ago. The decrease was due to the loan financing segment, which posted a lower pre-tax profit by RM8.6 million arising from lower interest income generated from its loans and receivables.

For the third quarter, RCE Capital posted a lower pre-tax profit of RM30.645 million compared with RM42.401 million a year ago. Its revenue declined to RM61.11 million from RM77.179 million.

Meanwhile, the Malay Chamber of Commerce Malaysia (MCCM) Johor has announced its plan to acquire a 33.15% stake in Tebrau Teguh from Kumpulan Prasarana Rakyat Johor Sdn Bhd (KPRJ).

Its president Syed Ali Alattas was quoted saying by Bernama that MCCM Johor, supported by MCCM, would be offering KPRJ 80 sen per share or about RM177 million.

"We will send the official letter by the end of the month," Syed Ali, who is also MCCM president, said on Tuesday. He added MCCM Johor was also willing to buy KPRJ's 41.15% stake in Tebrau Teguh.

KPRJ plans to sell a 33.15% stake in Tebrau Teguh to Iskandar Waterfront Holdings Sdn Bhd (IWH) for 76 sen a share, or RM168.7 million in total. The move will result in IWH having to make a mandatory general offer for the rest of Tebrau Teguh’s shares at the same price.

KPRJ, which is the Johor state’s investment arm, currently owns a direct 41.15% stake in Tebrau Teguh. IWH is owned by KPRJ and Credence Resources Sdn Bhd.



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Malay Chamber of Commerce to buy Tebrau Teguh stake from KPRJ

KUALA LUMPUR (Feb 14): The Malay Chamber of Commerce Malaysia (MCCM) Johor has announced its plan to acquire a 33.15 per cent stake in TEBRAU TEGUH BHD [] from Kumpulan Prasarana Rakyat Johor Sdn Bhd (KPRJ).

Its president Syed Ali Alattas said MCCM Johor, supported by MCCM, would be offering KPRJ 80 sen per share or about RM177 million.

"We will send the official letter by the end of the month," Syed Ali, who is also MCCM president, told reporters at a media conference here today.

He said MCCM Johor is also willing to buy KPRJ's 41.15 per cent stake in Tebrau Teguh.

According to reports, KPRJ plans to sell a 33.15 per cent stake in Tebrau Teguh to Iskandar Waterfront Holdings Sdn Bhd (IWH) for 76 sen a share, or RM168.7 million in total.

The move will result in IWH having to make a mandatory general offer for the rest of Tebrau Teguh’s shares at the same price.

KPRJ, which is the Johor state’s investment arm, currently owns a direct 41.15 per cent stake in Tebrau Teguh.

IWH is owned by KPRJ and Credence Resources Sdn Bhd. - Bernama



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IWH increases purchases from KPRJ

KUALA LUMPUR: Iskandar Waterfront Holdings Sdn Bhd (IWH) has increased its share purchases from Kumpulan Prasarana Rakyat Johor Sdn Bhd (KPRJ), buying KPRJ’s stake in PLS Plantations Bhd, and confirming its purchase in Tebrau Teguh Sdn Bhd.

In two separate announcements to Bursa Malaysia yesterday, Tebrau confirmed IWH’s purchase of a 33.15% stake in the company while PLS said IWH acquired a 23.4% stake in PLS from KPRJ yesterday, bringing IWH’s purchases from KPRJ to a total of RM261.29 million.

KPRJ is a major shareholder of PLS. The company told Bursa yesterday that it received notification that KPRJ had entered into a share sale agreement with IWH, whereby the latter will acquire 76.5 million 20 sen shares in PLS for RM1.21 per share, representing a five sen premium to the five-day weighted average share price.

In its Jan 31 announcement, Tebrau said its major shareholder KPRJ had entered into a definitive agreement with IWH to sell its 33.15% Tebrau stake, which consisted of 222 million 50 sen shares, for 76 sen cash apiece. Before the sale was announced, KPRJ held 41.15% in Tebrau.

In addition, the announcement said the proposed acquisition will trigger a mandatory takeover offer by IWH and the parties acting in concert with it for all the remaining shares in Tebrau not owned by the former for 76 sen cash per share.

The news comes just a day after Prime Minister Datuk Seri Najib Razak announced a RM200 facilitation fund to kickstart the Iskandar Integrated Waterfront City Project in Danga Bay. The project will reportedly cover a total of 25km on the east and west of the Johor Causeway facing Singapore, with a reported gross development value of RM80 billion.

IWH is a special purpose vehicle established to develop the Iskandar project. IWH’s shareholders are KPRJ and Credence Resources Sdn Bhd, whose major shareholder is Ekovest Bhd executive chairman Datuk Lim Kang Hoo.

Tebrau has been in the news since it announced on Jan 31 that it had accepted IWH’s offer for the 33.15% stake. The developments have sent Tebrau’s stock price soaring. It closed up 2.5 sen or 2.8% to 91.5 sen yesterday, its highest close in 13 months.

PLS is an investment holdings company that is involved in plantation and construction activities. It finished at RM1.15 yesterday, unchanged since Feb 9. Its close on Feb 8 was RM1.19.


This article appeared in The Edge Financial Daily, February 14, 2012.



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KLCI up on late buying of Genting, Tenaga

KUALA LUMPUR (Feb 13): Blue chips closed higher in late trade on Monday, nudged up by gains in GENTING BHD [], Tenaga and PLANTATION [] stocks, in line with the firmer regional markets and European bourses after Greece voted in favour of the austerity bill.

The KLCI was in the red most of the day and managed to rebound towards the last half-hour of trade. It closed 1.16 points or 0.07% higher at 1,562.82. Turnover was 2.66 billion shares valued at RM2.12 billion. There were 364 gainers, 517 losers and 321 stocks unchanged.

Greece approved the deeply unpopular austerity bill to help secure a second bailout, even as riots in central Athens and violence across the country raised doubts about implementation of the approved spending cuts, Reuters reported.

Asian markets posted modest gains on the news, extending their bright start to the year. However, turnover declined from last week, suggesting that some players were cautious about chasing the rally further.

Japan’s Nikkei 225 rose 0.58% to 8,999.18, Hong Kong’s Hang Seng Index added 0.5% to 20,887.40, Taiwan’s Taiex 0.64% to 7,912.91, South Korea’s Kospi 0.6% to 2,005.74 and Singapore’s Straits Times Index 0.54% to 2,975.98. Shanghai’s Composite Index was flat at 2,351.85.

US light crude oil rose US$1.18 to US$99.85. The ringgit strengthened 0.0069 to 3.0248 against the US dollar.

At Bursa Malaysia, with Monday being the T+3 settlement day after the huge volume on Wednesday, saw some mild selling pressure in lower liners and penny stocks. The broader market weakened somewhat with profit taking picking up pace.

Genting Bhd rose 20 sen to RM10.50 and Tenaga eight sen to RM6.19, adding 2.77 points to the KLCI. BAT was the top gainer, up RM1.20 to RM51.50.

Plantations were given a boost with third-month delivery up RM38 to RM3,168 per tonne. United Plantations added 50 sen to RM22.50, KLK 50 sen also to RM25.98 and BLD Plantations 41 sen to RM10.08.

Compugates was the most active with 272.28 million shares done, up one sen to 13 sen. Talk of a corporate exercise saw Time adding 5.5 sen to 40.5 sen. Hopes of higher offer price saw Tebrau Teguh adding 2.5 sen to 91.5 sen.

Naim Indah Corp fell 11 sen to 56 sen with 196.26 million units done. The share price had surged from 9.0 sen on Feb 2 on expectations of a corporate exercise. It resumed trading on Monday after announcing last Friday it proposed to acquire 60% in Sagajuta (Sabah) Sdn Bhd for an indicative price of RM240 million from Generasi Cipta Sdn Bhd.

Petronas Dagangan fell 18 sen to RM18.78, GBH 17 sen to RM1.09 and Ekovest 16 sen to RM2.77. DRB-Hicom eased 11 sen to RM2.87.



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Investors warm up to Tebrau Teguh

KUALA LUMPUR: Tebrau Teguh Bhd could be seeing better times as the stock saw increases in both its price and trading volume last Friday, surging far ahead of its takeover offer price of 76 sen to hit a six-month high.

The stock price closed at 89 sen last Friday with a whopping 151 million shares traded. The closing price was 8.5 sen higher, or a 10.56% increase from its previous day’s close at 80.5 sen. The stock saw a 1,516% increase in volume traded.

A proposed general offer was announced on Jan 31, and Tebrau’s share price has been on the rise since it resumed trading on Feb 2, staying between 80 sen and 81.5 sen for the four days before Friday’s leap.

With Tebrau’s current share price at 89 sen, the general offer exercise at 76 sen each is not expected to attract any acceptance, said market observers.

The Edge Financial Daily reported on Feb 3 that even though the exercise could see a poor take-up rate as a result of this, there are two factors which could attract the attention of investors.

The first would be the possibility of further corporate developments with the entry of Ekovest Bhd’s Datuk Lim Kang Hoo into the Tebrau picture, while the second would be the group’s rich landbank.

Tebrau’s current book value of 75 sen per share seems understated, given that the bulk of its land was last revalued nine years ago.

The jewel in the company’s crown is its landbank in Iskandar Malaysia, Johor, which according to its 2010 annual report, measures about 413.53ha and has a book value of RM591.93 million, based on 2003 prices.

This values the land at RM13.30 per sq ft, a price which market observers note may be on the low side, given that land values there have appreciated substantially over the past nine years.

An analyst said, assuming the price has risen 50% to RM20 psf, Tebrau could be sitting on potential revaluation gains of RM296 million.

Based on Tebrau’s issued base of 669.73 million shares, those potential revaluation gains could be worth 44 sen on top of the company’s current book value of 75 sen per share, he estimated, citing that there could still be potential upside in the stock.


This article appeared in The Edge Financial Daily, February 13, 2012.



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KLCI dips, banks sees mild profit taking

KUALA LUMPUR (Feb 13): Blue chips were marginally lower at midday on Monday, with some mild profit taking seen on bank stocks and Sime Darby, while key regional markets notches small gains after the Greek government approved an austerity bill to secure a second bailout.

At 12.30pm, the FBM KLCI was down 1.79 points to 1,559.87. During the past two weeks, the KLCI had gained nearly 40 points from the 1,521 on Jan 31.

Turnover was 1.62 billion shares valued at RM952.19 million. Decliners led advancers 402 to 350 while 321 stocks were unchanged.

Japan’s Nikkei 225 rose 0.85% to 9,022.78, Hong Kong’s Hang Seng Index added 0.7% to 10,928.50, Shanghai’s Composite Index 0.14% to 2,355.19, Taiwan’s Taiex 0.43% to 7,896.11, South Korea’s Kospi 0.50% to 2,003.73 and Singapore’s Straits Times Index 0.31% to 2,969.1.

US light crude oil rose 93 cents to US$99.60 while Brent crude rose more than US$1 to US$118.35.

At Bursa Malaysia, among the index-linked stocks CIMB fell six sen to RM7.15, Maybank five sen to RM8.47, Public Bank four sen to RM13.96. Sime Darby lost three sen to RM9.64 and Air Asia three sen also to RM3.75.

Crude palm oil third-month futures rose RM28 to RM3,158. OSK Research said with inventory remaining above 2.0 million tonnes and CPO price being range bound, the rally has been driven by liquidity rather than fundamentals.

Far East was the top loser, down 24 sen to RM7.06, United PLANTATION []s 18 sen to RM21.82 and Chin Tek 10 sen to RM8.90.

Naim Indah Corp fell 7.5 sen to 59.5 sen with 125 million shares when it resumed trading after announcing a corporate exercise last Friday. The recent rally was seen as too steep, as the share price was chased up speculators.

Compugates was the most active with 211.66 million shares done, up 1.5 sen to 13.5 sen.

Tebrau Teguh added 5.5 sen to 94.5 sen as investors believed the company was more valuable than the 76 sen offer price made by Iskandar Waterfront Holdings Bhd (IWH).

BAT was the top gainer, adding 66 sen to RM50.96, Genting 20 sen to RM10.50 and MBSB 16 sen to RM2.39. IOI Corp added one sen to RM5.48 and MMHE two sen to RM5.60.



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Tebrau Teguh inches up in early trade

KUALA LUMPUR (Feb 13): Shares of TEBRAU TEGUH BHD [] rose in early trade on Monday as investors believed the company was more valuable than the 76 sen offer price made by Iskandar Waterfront Holdings Bhd (IWH).

At 9.22am, it was up 1.5 sen to 90.5 sen with 6.64 million shares transacted.

The FBM KLCI shed 0.9 of a point to 1,560.76. Turnover was 404.66 million shares valued at RM172.92 million. There were 196 gainers, 156 losers and 223 stocks unchanged.

Last Friday, Tebrau Teguh rose 6.5 sen to 89 sen in very active trade.

IWH had offered 76 sen for the 33.15% stake in Tebrau Teguh when it acquired the block of shares from Johor government investment arm Kumpulan Prasarana Rakykat Johor.

Investors are hoping that IWH will raise the offer price for the remaining Tebrau Teguh stake. However, that remains to be seen.

Analysts said that there would unlikely be a higher price unless there was another competitor wanting to launch a takeover for Tebrau Teguh, especially now that it had been picked to develop the Johor Baru waterfront which faces Singapore.

However, analysts said Tebrau Teguh was valued more than RM1 based on its landbank which had not been revalued.



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Stocks to watch: Naim Indah Corp, Tebrau Teguh, Gamuda, MMC, CSC

KUALA LUMPUR (Feb 11): Greece will hold the key for the direction of the markets on Monday, Feb 13 as investors await the outcome of the country’s long-awaited debt deal.

Reuters reported the EU and IMF are exasperated by a series of broken promises by Athens and weeks of disagreement over the terms of a 130 billion euro (US$172 billion) bailout, with time running out to avoid a default.

Before they release more aid, Greece's financial backers have demanded parliamentary ratification of the new austerity package this weekend, the identification of a further 325 million euros of spending reductions by next Wednesday and a strong commitment from all parties to implement the reforms, said the news wire.

The austerity package, which has been bitterly opposed by workers, will go to vote in Greece’s parliament votes on Sunday.

On Wall Street, the S&P 500 posted its biggest daily percentage decline thus far in 2012 on Friday after an about-face on Greece's long-awaited debt deal.

The Dow Jones industrial average was down 89.23 points, or 0.69%, at 12,801.23. The Standard & Poor's 500 Index was down 9.31 points, or 0.69%, at 1,342.64. The Nasdaq Composite Index was down 23.35 points, or 0.80%, at 2,903.88.

At Bursa Malaysia, among the stocks to watch are NAIM INDAH CORPORATION BHD [], TEBRAU TEGUH BHD [], GAMUDA BHD [], MMC CORPORATION BHD [], CSC Steel Holdings Bhd and LONDON BISCUITS BHD [].

Naim Indah has proposed to acquire 60% in Sagajuta (Sabah) Sdn Bhd for an indicative price of RM240 million from Generasi Cipta Sdn Bhd. It intends to acquire the remaining 40% equity interest in Sagajuta that is not owned by Generasi Cipta on similar terms as agreed between Nicorp and Generasi Cipta.

Naim Indah will undertake a proposed reduction in par value from 20 sen of each ordinary share to 10 each ordinary share in which the credit of RM70.2 million arising from the reduction of the par value shall be set-off against the unaudited accumulated losses of the company of RM64.6 million as at Sept 30, 2011.

It also proposed a renounceable rights issue on the basis of one right share of 10 sen per share on the basis of one rights share for every existing share with two free warrants after the proposed par value reduction.

Naim Indah proposed a private placement of 300 million new Naim Indah shares of 10 sen each to investors to be identified, with two free warrants for every placement share after the proposed par value reduction.

Tebrau Teguh rose 6.5 sen to 89 sen in very active trade, which is 13 sen above the offer price of 76 sen made by Iskandar Waterfront Holdings Bhd (IWH) when it acquired Johor government investment arm Kumpulan Prasarana Rakykat Johor’s 33.15% stake in Tebrau Teguh.

Investors are hoping that IWH will raise the offer price for the remaining Tebrau Teguh stake. However, that remains to be seen.

Analysts said that there would unlikely be a higher price unless there was another competitor wanting to launch a takeover for Tebrau Teguh, especially now that it had been picked to develop the Johor Baru waterfront which faces Singapore.

As for Gamuda and MMC, their JV -- MMC Gamuda KVMRT (PDP) Sdn Bhd – was officially appointed project delivery partner (PDP) for the Sungai Buloh-Kajang MRT line.

The PDP’s fee will be 6% of the total aggregate work package contracts award values. However, should the eventual total cost of the project be less than or equal to the target cost, the PDP shall be entitled to the full fee.

The appointment would both companies in strong stead for the underground works package as the PDP was not allowed to take part in any of the tender for the works comprised in the project.

Meanwhile, Gamuda’s 30% owned Sistem Penyuraian Trafik KL Barat Sdn Bhd's (SPRINT) saw Malaysian Rating Corporation Bhd lowering its rating on tolled road concessionaire’s RM510 million Al Bai Bithaman Ajil Islamic Debt Securities (BaIDS) to A+ID from AA-ID.

“The rating outlook is stable. Concurrently MARC has affirmed its AA-(bg) rating on SPRINT's RM365 million Bank Guaranteed Serial Fixed Rate Bonds (BG Bonds) with a stable outlook,” said MARC.

MARC said the rating and outlook of the BG Bonds reflect MARC's financial institution ratings on two of three banks participating in the consortium of bank guarantors for the BG Bonds, AmInvestment Bank Berhad and RHB Bank Berhad (public information basis), both of which are rated AA-/Stable.

The rating on the BG Bonds reflects MARC's continued approach of rating the bonds at the same level as the lowest rated financial institution(s) participating in the consortium of bank guarantors.

SPRINT, is the concession holder for the SPRINT highway, a 25.5 km open toll urban highway which serves the west of Kuala Lumpur. SPRINT is wholly-owned by SPRINT Holdings Sdn Bhd which, in turn, is owned by three listed entities, Gamuda Berhad (30%), Lingkaran Trans Kota Holdings Bhd (LITRAK) (50%) and KUMPULAN PERANGSANG SELANGOR [] Bhd (20%).

CSC Steel recorded losses of RM2.06 million in the fourth quarter ended Dec 31, 2011, compared with net profit of RM8.56 million a year ago due to lower sales volume of its steel products. Its revenue rose 7.0% to RM276.9 million from RM258.7 million a year ago. Loss per share was 0.55 sen compared with earnings per share of 2.29 sen.

London Biscuits Bhd has proposed to place out 29.37 million new shares at an indicative issue price of RM1 per share to raise up to RM29.37 million, of which about 50% would be used to repay its borrowings.

LonBisc said the placement shares would represent up to 24.35% of its paid-up share capital and would be placed out to investors to be identified later.

HUBLINE BHD [] has fixed the issue price for its private placement of 20 million new shares together with 30 million additional warrants at 20 sen per share.

The issue price was a premium of 100% to the five-days volume weighted average market price of Hubline shares up to and including Feb 9, 2012 of 10 sen per Hubline share.



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KLCI snaps 2-day rally, Tenaga, Genting weigh

KUALA LUMPUR (Feb 10): The 30-stock FBM KLCI snapped its two-day run-up as investors decided to take profit and await the outcome of the long-awaited Greek debt deal which remained elusive, analysts said.

The profit taking was confined to Tenaga, Genting and IOI Corp, dragging the KLCI down 3.66 points to 1,561.66. Turnover was 3.35 billion shares valued at RM2.81 billion.

The broader market was firmer, underpinned by some nibbling of penny stocks and lower liners, enabling advancing counters to beat decliners 566 to 371 while 315 stocks were unchanged.

Reuters reported the FTSEurofirst 300 index of top European shares was down 0.55% at 1,067.63. The STOXX Europe 600 euro zone Banking Index, exposed to the euro zone's sovereign debt crisis, shed 1.4%.

Earlier, Asian stocks also lost ground, leaving global stocks as measured by the MSCI index down 0.6% at 326.04.

At Bursa Malaysia, Tenaga fell 19 sen to RM6.11 on rising concerns about further compensation for the power giant which is still facing a severe gas shortage. While Tenaga, Petroliam Nasional Bhd and the government had agreed to share the RM3 billion incurred between January 2010 and October 2011, there was no plan yet on how to absorb the additional cost of burning distillates after that period.

GENTING BHD [] fell 16 sen to RM10.30. DRB-Hicom, which had a strong run-up on its takeover of Khazanah Malaysia’s 42.7% stake of Proton, fell 16 sen to RM2.98.

Puncak Niaga fell the most, down 23 sen to RM1.66 after surging 44 sen on Thursday. KPS lost 15 sen to RM1.24 and KHSB 11.5 sen to 66.5 sen.

Tebrau Teguh rose 8.5 sen to 89 sen and it was the most active with 150.66 million shares done. The 89 sen closing price was a 13 sen premium over the takeover price of 76 sen offered by Iskandar Waterfront Holdings Sdn Bhd (IWH). IWH is buying a 33.15% stake in the company from Kumpulan Prasarana Rakyat Johor Sdn Bhd (KPRJ) for RM168.7 million.

Among PLANTATION []s, plantation player IOI Corp shed 13 sen to RM5.47. However, BLD Plantations was the top gainer, up 52 sen to RM9.67, Far East 30 sen to RM7.30 and United Plantations 20 sen higher at RM22.

Among consumer stocks, Dutch Lady added 50 sen to RM25.38 and Amway 14 sen to RM9.80.



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KL shares mixed at mid-afternoon

Share prices on Bursa Malaysia were mixed at mid-afternoon today as investors remained cautious on progress over the Greece debt talks, dealers said.

At 3pm, the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) was 3.1 points lower at 1,562.22. Gainers led losers 537 to 325 while 311 counters were unchanged, 313 untraded and 21 others suspended. A total of 2.25 billion shares worth RM1.62 billion were traded.

The Finance Index rose 40.37 points to 13,862.75 and the Industrial Index gained 1.39 points to 2,906.13 but the Plantation Index fell 31.23 points to 8,893.9.

The FBM Emas Index eased 3.12 points to 10,894.51, while the FBM Mid 70 Index improved 48.73 points to 12,513.45 and the FBM Ace Index added 57.85 points to 4,136.85.

Among active stocks, Metronic Global earned half-a-sen to eight sen, Tebrau Teguh advanced 10 sen to 90.5 sen while Compugates Holdings slipped half-a-sen to 11.5 sen.

For the heavyweights, Maybank increased five sen to RM8.52, while Sime Darby shed two sen to RM9.68 and Petronas Chemicals eased one sen to RM6.99. -- Bernama



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Market chases up Tebrau Teguh way above 76 sen takeover price

KUALA LUMPUR (Feb 10): TEBRAU TEGUH BHD [] share price rose to a high of 94 sen on Friday, chased up by market players hoping the takeover price of 76 sen could be increased.

Analysts had said the 76 sen offer price had undervalued Tebrau Teguh due to its large landbank in Iskandar Malaysia, the country’s latest property hotspot.

At 3.14pm, it was up 12.5 sen to 93 sen. There were 86.73 million shares transacted at prices ranging from 80 sen to 94 sen.

The FBM KLCI fell 2.7 points to 1,562.62. There were 2.38 billion shares transacted at RM1.73 billion. There were 533 gainers, 339 losers and 316 stocks unchanged.

Tebrau is being taken over by Iskandar Waterfront Holdings Sdn Bhd (IWH), which is buying a 33.15% stake in the company from Kumpulan Prasarana Rakyat Johor Sdn Bhd (KPRJ) for RM168.7 million.

KPRJ, the Johor state investment arm, will remain a major shareholder of Tebrau as IWH is owned by KPRJ and Credence Resources Sdn Bhd, a company controlled by tycoon Datuk Lim Kang Hoo of EKOVEST BHD [].

With the collaboration between Lim and the state investment entity, analysts think Tebrau could potentially be a stock to watch for exposure to Johor.



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Tebrau rises, seen as exciting Johor proxy

KUALA LUMPUR: Tebrau Teguh Bhd’s shares jumped 7 sen or 9.3% to close at 82 sen when trading on the stock resumed yesterday following the announcement of a proposed general offer exercise.

This places the stock 7.9% ahead of the takeover offer price of 76 sen, which analysts say is unlikely to spark a high take-up rate.

Tebrau was the latest in a flurry of privatisation and takeover exercises over the past two weeks, which included Proton Holdings Bhd, Glenealy Plantations Bhd and Lingui Developments Bhd.

Tebrau’s privatisation exercise, however, does not offer a significant premium for minority shareholders. The offer price is just one sen above the pre-suspension price of 75 sen, and the current price is much higher.

And while Proton’s share price doubled in the weeks leading up to the exercise, Tebrau’s shares have traded within a tight range of between 67 sen and 77.5 sen over the last three months.

It is also almost squarely at Tebrau’s net assets per share of 75 sen as at Sept 30, 2011, which analysts say is undervalued, given its large landbank in Iskandar Malaysia, the country’s latest property hotspot.



Although the exercise could see a poor take-up rate as a result of these factors, market observers also concur that Tebrau could be headed for better times as investors start taking notice of its large landbank and the possibility of further corporate developments with the entry of tycoon Datuk Lim Kang Hoo of Ekovest Bhd.

Tebrau is being taken over by Iskandar Waterfront Holdings Sdn Bhd (IWH), which is buying a 33.15% stake in the company from Kumpulan Prasarana Rakyat Johor Sdn Bhd (KPRJ) for RM168.7 million.

KPRJ, the Johor state investment arm, will remain a major shareholder of Tebrau as IWH is owned by KPRJ and Credence Resources Sdn Bhd, a company controlled by Lim.

With the collaboration between Lim and the state investment entity, analysts think Tebrau could potentially be a stock to watch for exposure to Johor.
An inkling of that came at the same time the takeover offer was announced.

Tebrau announced that it had been appointed by the Johor government to develop 413 acres in Pengerang to complement an oil and gas hub there.

Analysts also note that Tebrau’s book value of 75 sen per share looks understated, given that the bulk of its land was last revalued nine years ago.

The jewel in the company is its landbank in Iskandar, which according to its 2010 annual report, measures about 413.534ha (1,022 acres) and has a book value of RM591.93 million, based on 2003 prices.

This values the land at RM579,278 per acre, or RM13.30 per sq ft, a price which market observers note may be on the low side, given that land values there have appreciated substantially over the past nine years.

An analyst said assuming the price has risen 50% to RM20 psf, Tebrau could be sitting on potential revaluation gains of RM296 million.

Based on Tebrau’s issued base of 669.73 million shares, those potential revaluation gains could be worth 44 sen on top of the company’s current book value of 75 sen per share, he estimated.

Lim’s entry into Tebrau also raises speculation that some of his privately owned assets, such as Danga Bay Sdn Bhd (DBSB), may be injected into the company later.

DBSB owns Danga Bay, and is one of the largest owners and developers of sea-fronting projects in Johor.


This article appeared in The Edge Financial Daily, February 3, 2012.



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KL shares remain bullish at mid-afternoon

Share prices on Bursa Malaysia remained in positive territory at mid-afternoon today on continued buying momentum following the firmer overnight Wall Street, dealers said.

They said the investors were also more confident towards the progress of the eurozone debt crisis.

As at 3.01pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) was 9.09 points higher at 1,530.38.

The Finance Index gained 38.22 points to 13,480.89, the Plantation Index surged 23.30 points to 8,752.72 and the Industrial Index perked 31.40 points to 2,838.22.

The FBM Emas Index jumped 79.46 points to 10,666.66, the FBM Mid 70 Index soared 151.11 points to 12,310.99 and the FBM ACE Index earned 3.31 points to 4,499.90.

Gainers beat losers 540 to 291 with 326 counters unchanged, 315 untraded and 15 suspended. Turnover stood at 1.69 billion shares worth RM1.61 billion.

Of the actives, Tebrau Teguh advanced eight sen to 83 sen, Petronas Chemicals-CH added 3.5 sen to 60 sen, while D.B.E. Gurney Resources eased half-a-sen to 12 sen.

Among heavyweights, Maybank gained four sen to RM8.24, Sime Darby added 12 sen to RM9.26 and Petronas Chemicals Group rose eight sen to RM6.75. -- BERNAMA



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KLCI stays in the black at mid-day, lifted by select blue chips

KUALA LUMPUR (Feb 2): The FBM KLCI remained in positive territory at the mid-day break on Thursday, tracking the gains at key regional markets, but struggled to climb above the 1,530-level.

At 12.30pm, the index added 7.94 points to 1,529.23, lifted by gains at select blue chips.

Gainers led losers by 504 to 272, while 338 counters traded unchanged. Volume was 1.46 billion shares valued at RM1.31 billion.

The ringgit strengthened 0.81% to 3.0208 versus the US dollar; crude palm oil futures for third month delivery fell RM10 per tonne to RM3,065, crude oil slipped eight sen to US$97.53 while gold rose US$4.35 an ounce to US$1,747.75.

At the regional markets, Japan’s Nikkei 225 rose 0.91% to 8,889.85, Hong Kong’s Hang Seng Index added 1.46% to 20,629.60, the Shanghai Composite Index up 0.31% to 2,275.04, Taiwan’s Taiex gained 0.75% to 7,605.84, South Korea’s Kospi rose 1.29% to 1,984.55 while Singapore’s Straits Times Index was up 0.48% to 2,918.82.

On Bursa Malaysia, Hartalega was the top gainer this morning and was up 42 sen to RM7.64; BAT added 40 sen to RM49.80, Petronas Gas 38 sen to RM16.06, KAF, Malayan Flour Mills, IJM Corp and Petronas Dagangan added 20 sen each to RM1.95, RM4.53, RM5.94 and RM18.20 respectively, United PLANTATION []s 18 sen to RM20.52 while SOP added 15 sen to RM6.30.

Tebrau Teguh was the most actively traded counter after a takeover offer made by Iskandar Waterfront Holdings Sdn Bhd (IWH), which is offering 76 sen per share – or just one sen above Tebrau’s pre-suspension price of 75 sen.

The stock rose 8.5 sen to 83.5 sen with 52.6 million shares done.

Other actives included DBE Gurney, Petronas Chemicals, Coastal Contracts, DRB-Hicom, Karyon, UEM Land and Benalec.

Decliners included Glenealy, RHB Capital, Southern Steel, Mintye, Dutch Lady, KLK, TDM, Tenaga, Melewar and SHL.



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KL shares higher at mid-morning

KUALA LUMPUR: Shares on Bursa Malaysia were higher at mid-morning today boosted by positive sentiment on regional markets, dealers said.

At 10.53am, the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) was up 6.44 points to 1,527.73.

Market breadth was positive with 458 gainers and 222 losers with turnover amounting to one billion shares worth RM835.07 million.

A dealer said the market was positive following better-than-expected jobs and manufacturing data out of the US.

Bursa Malaysia's Finance Index rose 33.35 points to 13,476.02, Plantation Index increased 15.54 points to 8,744.96 and the Industrial Index was 35.36 points higher at 2,842.18.

The FTSE Bursa Malaysia Emas Index gained 61.40 points to 10,648.60 and Malaysia Mid-70 Index jumped 130.30 points to 12,290.185.

The FTSE Bursa Malaysia Ace Index, however, eased 3.59 points to 4,493.

Among active counters, Tebrau Teguh added eight sen to 78 sen, while D.B.E Gurney Resources and Coastal-CA slipped one sen each to 12.5 sen and 11 sen, respectively.

Of the heavyweights, Maybank earned two sen to RM8.22, Sime Darby perked 10 sen to RM9.24 and Petronas Chemicals added five sen to RM6.72. -- BERNAMA



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Tebrau Teguh active, up on takeover offer

KUALA LUMPUR (Feb 2): TEBRAU TEGUH BHD [] shares were actively traded on Thursday after the takeover offer made by Iskandar Waterfront Holdings Sdn Bhd (IWH), which is offering 76 sen per share – or just one sen above Tebrau’s pre-suspension price of 75 sen.

At 9.30am, Tebrau Teguh rose 7.5 sen to 82.5 sen with 22.65 million shares done.

IWH is buying a 33.15% stake in Tebrau Teguh Bhd, comprising of 22 million shares, from Kumpulan Prasarana Rakyat Johor Sdn Bhd (KPRJ). The proposed acquisition would trigger a mandatory take-over offer by IWH for the remaining shares.

While the one sen premium is insignificant, the upside for the low-key Tebrau Teguh is that it has been appointed to develop 413 acres of land in Pengerang, Kota Tinggi, Johor.

Its net asset per share was 75 sen as at Sept 30, 2011 while it had RM44.52 million in cash and bank balances.



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HDBSVR sees Malaysian market rebounding on Thursday

KUALA LUMPUR (Feb 2): Hwang DBS Vickers Research said most Asian indices registering positive gains on Wednesday, the FBM KLCI should be raring to go after a one-day break, with the immediate resistance of 1,530 within its sight.

It said on Thursday that major US stock indices rose between 0.7% and 0.9% overnight due to positive outlook from manufacturing data released in the US, UK, China and Germany.

“We believe investors would be keenly following news on Greece’s expected completion of a debt writedown with private investors and an accord on a US$171bn eurozone bailout by the end of this week,” it added.

As for stocks on Bursa Malaysia, HDBSVR said on counters that should attract interest include:

(a) Tebrau Teguh, which was appointed to develop 413 acres of land in Pengerang, Johor, despite an offer of only 76 sen for a 33% stake which would trigger a mandatory takeover offer;

(b) IJM and AZRB, after confirming that they had officially received the letters of acceptance from MRT Corp; and

(c) Southern Steel, after reporting a net loss of RM5 million in the Oct-Dec quarter, which was below consensus expectations.



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Stocks to watch: Tebrau Teguh, MIG, Southern Steel, IJM, AZRB

KUALA LUMPUR (Feb 1): TEBRAU TEGUH BHD [] will be the stock to watch when the Malaysia market resumes trading after a one-day break for the Federal Territory holidays on Wednesday.

Other stocks which could also see trading interest are MELEWAR INDUSTRIAL GROUP BHD [] (MIG), SOUTHERN STEEL BHD [], IJM CORPORATION BHD [] and AHMAD ZAKI RESOURCES BHD [] (AZRB) following the latest corporate developments.

In a surprising turn of events, Tebrau Teguh is being taken over by Iskandar Waterfront Holdings Sdn Bhd (IWH), which is offering 76 sen per share – or just one sen above the pre-suspension price of 75 sen. Its net asset per share was 75 sen as at Sept 30, 2011 while it had RM44.52 million in cash and bank balances.

IWH is buying a 33.15% stake in Tebrau Teguh Bhd, comprising of 22 million shares, from Kumpulan Prasarana Rakyat Johor Sdn Bhd (KPRJ). The proposed acquisition would trigger a mandatory take-over offer by IWH for the remaining shares.

While the one sen premium is insignificant, the upside for the low-key Tebrau Teguh is that it has been appointed to develop 413 acres of land in Pengerang, Kota Tinggi, Johor.

The Johor government has appointed Tebrau Teguh to develop the site for a comprehensive mixed development project. The land, belonging to the state government, is within the Johor oil & gas Industry hub.

Meanwhile, MIG has proposed a corporate exercise involving a share capital reduction and a renounceable rights issue of up to 150.348 million new shares.

The rights issue, at an indicative price of 40 sen per rights share, the rights share would enable it to raise between RM21.97 million and RM60.14 million.

Southern Steel Bhd swung into the red with losses of RM5.52 million in the second quarter ended Dec 31, 2011 due to lower margins and foreign exchange translation losses. Its revenue and loss before tax were RM928.84 million and RM6.40 million respectively as compared with the preceding quarter’s revenue and profit before taxation of RM734.0 million and RM17.3 million.

IJM and AZRB, whose shares had rallied after the announcement by Mass Rapid Transit Corporation Sdn Bhd for the Sungai Buloh-Kajang phase, confirmed on Tuesday they had officially received the letters of acceptance.

IJM’s phase is for package V5 of the Mass Rapid Transit costing RM974.78 million while AZRB’s contract includes the completion of viaduct guideway and other works from Plaza Phoenix to Bandar Tun Hussein Onn station valued at RM764.91 million.



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