Trinity Corporation still in the red, 4Q net loss RM62.98m

KUALA LUMPUR (March 30): Trinity Corporation Bhd posted net losses of RM62.98 million in the fourth quarter ended Jan 31, 2011, which narrowed from the RM85.60 million a year ago, mainly due to loss on disposal of four units, impairments and doubtful debts.

It said on Friday that its pre-tax loss was RM64.81 million compared with RM79.52 million. However, its revenue increased 240% to RM197.53 million from RM58.10 million due to higher progress billings generated from the development projects and billings on sale of land.

Loss per share was 1.55 sen compared with 2.49 sen. Its net asset per share was 14 sen.

Commenting on the 4Q results, Trinity Corp said the property development and investment division accounted for 96.4% of the pre-tax loss.

“The current year quarter loss is mainly attributable to loss on disposal of four wholly-owned subsidiary companies of RM23.17 million, provision for impairment of land held for property development of RM36.31 million, provision for impairment on inventory of RM6.45 million and provision for doubtful debts of RM11.30 million.

“This was mitigated by gains arising from waiver of debt by a creditor of RM30.94 million and reduced finance cost,” it said.

For the financial year ended Jan 31, 2012, it registered a smaller net loss of RM117.07 million compared with RM167.08 million in the previous financial year. Revenue increased by 245% to RM632.31 million from RM183.39 million.

The higher revenue was mainly due to the completion of the disposal of the 1,322.44 acres of land in Bukit Beruntung Two to Menteri Besar Selangor (Inc).

Explaining the losses, Trinity Corp said it was due to the provision for impairment on land held for property development of RM45.54 million, provision for impairment loss on inventory of RM6.45 million, loss on disposal of four units of RM23.17 million and provision of doubtful debts of RM28.60 million.

However, the provisions were mitigated by higher operating income, mainly due to the waiver of debt by a creditor of RM30.94 million and gains of RM21.82 million arising from the conversions of preference shares and early redemption/conversion of loan stocks and reduced finance cost.



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MARC suspends rating on Trinity Corp’s debt notes

KUALA LUMPUR (Feb 27): Malaysian Rating Corp (MARC) has suspended its B+ID rating on Trinity Corporation Bhd's (formerly TALAM CORPORATION BHD []) settlement Bithaman Ajil Islamic Debt Securities.

The rating agency said on Monday Trinity had failed to provide important information for the rating agency to carry out its rating surveillance. The outstanding amount of the settlement BaIDS was RM98.2 million as of Feb 24, 2012.

“MARC is unable to carry out its rating surveillance in the absence of Trinity’s business plans, in particular its asset divestment plans, proceeds from which are expected to fund its payment obligations for the settlement BaIDS.

“The rating agency may reinstate the suspended rating if the information required becomes available. Alternatively, MARC will likely withdraw the rating within the next 90 days if the requested information is not forthcoming,” MARC said.



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KL shares continue positve momentum

Share prices on Bursa Malaysia continued the positive momentum at midmorning today, due to an increased confidence from investors in Asian markets, dealers said.

The dealers said buying interest was mostly shown in banking stocks, which also helped sustain the momentum.

As at 10.51 am, the FTSE Bursa Malaysia KLCI (FBM KLCI) was 13.98 points higher at 1,552.75.

The Finance Index chalked up 121.59 points to 13,708.9, the Plantation Index added 32.1 points to 8,770.02 and the Industrial Index gained 40.33 points to 2,911.61.

The FBM Emas Index surged 88.25 points to 10,822.04, the FBM Mid 70 Index advanced 66.02 points to 12,472.55 and the FBM ACE Index increased 50.09 points to 4,586.72.

Gainers beat losers 459 to 237 with 299 counters unchanged, 485 counters untraded and 21 others suspended. Turnover stood at 1.71 billion shares worth RM959.8 million.

For the actives, Naim Indah Corp advanced 30 sen to 48 sen, SAAG Consolidated earned 1.5 sen to nine sen and Trinity Corp was one sen higher at 7.5 sen.

Among heavyweights, Maybank rose eight sen to RM8.41, CIMB Group Holdings and Petronas Chemicals gained nine sen each to RM7.09 and RM6.88 respectively, while Sime Darby added 30 sen to RM9.76. -- BERNAMA



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FBM KLCI opens 10 points higher

Share prices on Bursa Malaysia opened higher in early trading today in tandem with gains in the regional Asian markets and positive progress in the european debt crisis, dealers said.

Dealers said persistent buying interest following last Friday's uptrend helped sustain the market momentum.

As at 9.26am, the FBM KLCI was 9.72 points better at 1,584.49 after opening 3.5 points higher at 1,542.27.

The Finance Index surged 79.19 points to 13,666.5, the Plantation Index perked 40.92 points to 8,788.84 and the Industrial Index jumped 41.9 points to 2,913.18.

The FBM Emas Index advanced 65.63 points to 10,799.42, the FBM Mid 70 Index added 60.08 points to 12,466.61 and the FBM ACE Index rose 42.72 points to 4,579.35.

Gainers led losers 349 to 113, 221 counters were unchanged, 797 counters untraded and 21 suspended. Turnover stood at 627.77 million shares worth RM320.2 million.

Actives, Naim Indah Corp gained 27 sen to 45 sen, SAAG Consolidated earned 1.5 sen to eight sen and Trinity Corp added one sen to 75 sen.

Heavyweights, Maybank rose seven sen to RM8.40, CIMB Group Holdings gained three sen to RM7.03, Sime Darby improved 28 sen to RM9.74 and Petronas Chemicals Group advanced six sen to RM6.85. -- BERNAMA



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Trinity Corp proposes more collateral as RM84.65m Sukuk matures

KUALA LUMPUR (Jan 27): Trinity Corporation Bhd has proposed additional collateral from the sale proceeds of shophouses totalling RM40 million as the balance of the Sukuk Al-Ijarah of RM84.65 million has reached maturity on Friday.

The company, formerly TALAM CORPORATION BHD [], said the Sukuk holders had not declared an event of default on its unit Ample Zone Bhd, which issued the debt notes.

“They (Sukuk holders) have not convened a Sukuk holders’ extraordinary general meeting to deliberate Ample Zone’s proposal for a three-year extension of time to Jan 27, 2015,” it said.

Trinity Corp said the proposal to the Sukuk holders included additional collateral in terms of assignment of sales proceeds of 40 shop-offices at Saujana Putra totaling RM40 million arising from a proposed joint venture.

It added this was in addition to the existing securities in the form of the balance of three commercial buildings -- Midpoint shopping complex, Menara Maxisegar commercial building, Pandan Kapital shopping complex.



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Trinity falls on Q3 net loss

Trinity Corp, a property developer formerly known as Talam Corp., fell 7.7 per cent to 6 sen.

Trinity had a net loss of RM29.3 million in the third quarter, compared with a profit of RM1.2 million in the second quarter, according to a stock exchange filing.

It posted a net loss of RM83.3 million a year earlier, it said. - Bloomberg



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Trinity dips despite narrowing 3Q net losses

KUALA LUMPUR (Dec 30): Trinity Corporation Bhd (formerly TALAM CORPORATION BHD []) shares dipped in early trade on Friday despite the company narrowing its net loss to RM29.26 million in the third quarter ended Oct 31, 2011 from net loss RM83.29 million a year ago.

At 9.25am, Trinity was down half a sen to 6 sen with 2.5 million shares traded.

The company said on Thursday that the losses were due to an impairment provision of RM9.20 million made on a piece of development land to be sold to a third party and also provisions made for doubtful debts of RM14.93 million.



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Stocks to watch: Cypark, Box-Pak, IRCB, Trinity

KUALA LUMPUR (Dec 31): With Friday being the last trading day of the year, there could be some last-minute window dressing activities for blue chip stocks to ensure the FBM KLCI closes well above the 1,500 mark and ends the year in a positive note.

The FBM KLCI closed closed 2.58 points higher at 1,506.69. Year-to-date, the 30-stock benchmark index is down only 0.81%. The overall market tone was firmer with advancing counters beating decliners 492 to 254.

However, investors should also expect some profit-taking on stocks which had run up recently like Proton on strong newsflow.

As expected, external developments from Europe and the US would determine the final trading day.

Among the stocks which could see trading interest are CYPARK RESOURCES BHD [], BOX-PAK (MALAYSIA) BHD [], INTEGRATED RUBBER CORPORATION [] Bhd (IRCB), Trinity Corporation Bhd (formerly TALAM CORPORATION BHD []), KUMPULAN EUROPLUS BHD [] and BERJAYA CORPORATION BHD [].

Cypark received a contract worth RM14.71 million to upgrade the landfill site at Kok Foh, Jempol in Negeri Sembilan. It received the letter of acceptance for the contract from the National Solid Waste Management Department.

Shares of Box-Pak could continue to see selling pressure after KIAN JOO CAN FACTORY BHD [] stated it was unaware of any negotiations to privatise Box-Pak. Box-Pak closed 24 sen down to RM2.23 with 5.35 million shares done.

Meanwhile, IRCB posted net loss RM5.29 million in the third quarter ended Oct 31, 2011 from net profit RM2.88 million a year earlier, on lower output and volatile latex prices. Its revenue for the quarter fell 21.96% to RM24.83 million from RM31.82 million in 2010.

For the nine months ended Oct 31, IRCB posted net loss of RM17.93 million compared to net profit RM3.36 million in the previous corresponding period while revenue decreased to RM86.99 million from RM107.24 million.

Trinity posted net loss of RM29.26 million in the third quarter ended Oct 31, 2011 from RM83.29 million a year ago.

The losses were due to an impairment provision of RM9.20 million made on a piece of development land to be sold to a third party and also provisions made for doubtful debts of RM14.93 million.

Kumpulan Europlus posted net profit of RM1 million in the third quarter ended Oct 31, 2011 compared with net loss of RM19.31 million a year ago.

Its pre-tax profit of RM1.33 million versus pre-tax loss of RM16.08 million a year ago was mainly due to interest income of RM1.66 million, accretion of equity interest in Talam Corp Bhd of RM 2.21 million and fair value gain of RM 2.09 million on short term investments.

Thai conglomerate Charoen Pokphand Foods PCL’s Malaysian company is acquiring property-based MKH Bhd’s food processing and livestock farming operations for RM64 million.

Berjaya Corporation Bhd posted net profit of RM22.96 million in its second quarter ended Oct 31, 2011, down 73.4% from RM86.54 million a year ago in the absence of write-backs.

It said in the previous quarter, there were certain gains on write-back of impairment relating to associated companies and recognition of gains on disposal of subsidiary companies.

“Operationally, the current quarter results are comparable to the previous year corresponding quarter results,” it said.



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Trinity Corp’s net loss narrows to RM29m in 3Q from RM83.29m yr ago

KUALA LUMPUR (Dec 29): Trinity Corporation Bhd (formerly TALAM CORPORATION BHD []) posted net loss of RM29.26 million in the third quarter ended Oct 31, 2011 from RM83.29 million a year ago.

It said on Thursday the losses were due to an impairment provision of RM9.20 million made on a piece of development land to be sold to a third party and also provisions made for doubtful debts of RM14.93 million.

Its revenue shrunk 27% to RM37.01 million from RM50.68 million mainly due to lower progress billings from the development projects. Loss per share was 0.74 sen compared with 2.76 sen a year ago.

Trinity said for the nine-month period, its net loss was RM54.08 million compared with the losses of RM81.48 million in the previous corresponding period.

Its revenue jumped 247% to RM434.78 million from RM125.29 million boosted by the completion of the disposal of the 1,322.44 acres of land in Bukit Beruntung 2 to Menteri Besar Selangor (Incorporated).

The pre-tax loss for the current year-to-date of RM52.68 million as compared to a pre-tax loss of RM74.23 million a year ago was due to lower gross margins mainly due to foreseeable loss provision of RM13.80 million on certain development projects of the group.

Trinity said it would also be affected by impairment provisions totaling RM46.30 million consisting of RM37.10 million on two pieces of leasehold development land proposed to be disposed to an associated company and RM9.20 million on a piece of leasehold development land proposed to be disposed to a third party.



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Market Commentary

The FBM KLCI index lost 4.69 points or 0.32% on Wednesday. The Finance Index fell 1.18% to 13274.38 points, the Properties Index up 0.66% to 954.06 points and the Plantation Index rose 0.45% to 7519.01 points. The market traded within a range of 15.63 points between an intra-day high of 1473.13 and a low of 1457.50 during the session.

Actively traded stocks include KBUNAI, SAAG, HARVEST, ASIAEP, HARVEST-WA, UEMLAND, FOCUS, TRINITY, HWGB and MBSB-WA. Trading volume increased to 1564.93 mil shares worth RM1693.74 mil as compared to Tuesday’s 1193.45 mil shares worth RM1293.60 mil.

Leading Movers were GENM (+18 sen to RM3.87), DIGI (+60 sen to RM32.30), IOICORP (+5 sen to RM5.14), TENAGA (+5 sen to RM5.86) and YTL (+4 sen to RM1.49). Lagging Movers were CIMB (-18 sen to RM7.31), MAYBANK (-9 sen to RM8.28), PETCHEM (-13 sen to RM6.24), GENTING (-14 sen to RM10.26) and SIME (-7 sen to RM8.78). Market breadth was positive with 374 gainers as compared to 363 losers.-- JF Apex Securities Bhd