Zelan jumps on winning government job

At 9.59am trading Zelan Bhd, a builder, jumped 5.3 per cent to 49.5 sen, set for the largest increase since Feb. 28.

Zelan signed a concession agreement with the government to develop and operate the Gombak integrated transport terminal, the company said in a statement. The construction cost will be about RM307.4 million (US$100.7 million), it said. -- Bloomberg



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Stocks to watch: Zelan, Selangor Dredging, Freight Management, Century Logistics

KUALA LUMPUR (March 16) : Global economic growth concerns may continue to weigh on Malaysian stocks on Friday as the local bourse sees less trading participation due to the on-going school holidays.

Analysts said a higher trading volume is crucial to sustain gains in the 30-stock FBM KLCI, against the backdrop of weaker economic sentiments in China which had pushed Asian bourses into the red.

“Higher volume is vital for more sustainable gains (in the KLCI),” Hong Leong Investment Bank Research wrote in a note.

According to Hong Leong Research, unless the FBM KLCI closes above the 1,580 and 1,585 levels and registers average daily trading volume of between 1.8 billion and 1.9 billion shares in the next few days, the research firm is reiterating its cautious view on the market.

On Thursday, the KLCI closed higher in late buying on Thursday, underpinned by gains in CIMB and Maybank amid volatile trading.

The KLCI rose 3.67 points or 0.2% to finish at 1,579.38. Turnover was 1.36 billion shares worth RM1.73 billion while the broader market was cautious, with 296 gainers versus 443 decliners while 367 stocks were unchanged.

Among the stocks to watch are ZELAN BHD [], SELANGOR DREDGING BHD [], Kinsteel Bhd, logistics firms Freight Management Holdings Bhd and CENTURY LOGISTICS HOLDINGS BHD [], besides Top Glove Corp Bhd, Taliworks Corp Bhd and Eversendai Corp Bhd.

Zelan’s 95%-owned Terminal Bersepadu Gombak Sdn Bhd (Tegas) has secured a 25 year and three months concession from the government for the Gombak Integrated Transport Terminal.

Tegas would undertake the RM307.37 million project on a build-lease-manage-operate-transfer basis via the public private partnership.

Selangor Dredging plans to launch a housing project with an estimated gross development value of RM150 million in Gombak.

It is buying three pieces of leasehold land measuring nearly 36,000 sq metres from Superior Dignity Sdn. Bhd for RM34.50 million.

Kinsteel is streamlining its downstream business operations, especially its 51% owned Perfect Channel Sdn Bhd, which has been affected by weak steel prices and rising material costs.

Kinsteel said on Thursday that Perfect Channel’s core activities were manufacturing and trading of steel beams, bars, wire rods and other steel products.

RHB Research Institute upgraded its recommendations for Freight Management and Century Logistics to Outoperform from Market Perform, and raised the fair values for both stocks. This is in anticipation that both logistics firms will benefit from a recovery in global trade.

Freight Management is deemed fairly valued at RM1.05 compared to the 92 sen estimated previously while Century Logistics has a potential reach RM2.09 compared to the previous target price of RM1.78, according to RHB Research.

Shares of both logistics firms closed unchanged on Thursday. Freight Management finished at 89.5sen while Century Logistics settled at RM1.78

Top Glove’s net profit in the second quarter ended Feb 29, 2012 (2QFY12) more than doubled (110%) to RM53.46 million from RM25.41 million a year earlier, as higher sales, and cheaper raw materials boosted the rubber glove manufacturer’s bottom line, the company told the exchange. Top Glove shares rose 12 sen to RM4.92.

Taliworks set up a joint venture with L.G.B. Engineering Sdn Bhd to construct water treatment facilities in Selangor. Taliworks closed 1.5 sen lower at 93.5 sen.

Eversendai executive chairman and managing director, Datuk A.K. Nathan expects the company to register an annual turnover of RM2 billion within the next five years. The company posted revenue of RM1.03 billion in financial year ended Dec 31, 2011. Eversendai shares declined one sen to RM1.67.



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Zelan subsidiary lands RM307m Gombak transport terminal project

KUALA LUMPUR (March 15): ZELAN BHD []’s 95%-owned Terminal Bersepadu Gombak Sdn Bhd (Tegas) has secured a 25 year and three months concession from the government for the Gombak Integrated Transport Terminal.

It said on Thursday that Tegas would undertake the project on a build-lease-manage-operate-transfer basis via the public private partnership.

The project would comprise of a seven storey terminal complex and related facilities next to the existing Gombak LRT station.

Zelan said the CONSTRUCTION [] period was 27 months and the total construction cost was about RM307.37 million.

The terminal would be the transportation hub to take over the existing operations of the eastbound intercity buses and taxis as well as intracity buses and taxis for Klang Valley. It would also be a temporary hub for the operations of the northbound intercity buses and taxis.

Zelan said the government had also awarded Tegas the contract to undertake the Taman Melati road upgrading and the Middle Ring Road 2 upgrading.

The government would pay Tegas RM64.18 million after it had issued the certificate of acceptance, confirming the completion of the construction.

The government would also pay RM3.11 million every month during the concession period for carrying out the construction, operating the facilities and for asset management services.



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CIMB Research has technical buy on Zelan at 50.5 sen

KUALA LUMPUR (Feb 29): CIMB Equities Research has a technical buy on Zelan at 50.5 sen at which it is trading at a price-to-book value of 1.9 times.

It said on Wednesday that Zelan broke out of its bullish flag pattern on Tuesday on high volume.

“We think it is due for another rebound. However, our strategy here would be to buy on weakness due to yesterday’s strong run-up,” it said.

CIMB Research said the technical reading was improving. MACD histogram bars were falling at a slower pace, suggesting that selling pressure was tapering off. RSI indicator had also hooked upward.

“The 30-day SMA looks like a good support here. We will only review our call if prices broke below this moving average, now at 45 sen. Resistance is seen at the 53 sen and 55 sen levels,” it said.



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Zelan to have 51% stake in CIQ complex

KUALA LUMPUR: Zelan Bhd will have a 51% interest in the proposed development of the Integrated Immigration, Custom, Quarantine and Security Complex at Bukit Kayu Hitam, Kedah.

In its filing with Bursa Malaysia yesterday, Zelan said its wholly- owned unit Zelan Construction Sdn Bhd (ZCSB) will have 51% participating interest while Kiara Teratai Sdn Bhd will have 49%, subject to the terms and conditions of the joint venture agreement to be entered into by the two parties contingent upon the award of the project by Northern Gateway Infrastructure Sdn Bhd.

Zelan however, did not disclose the development value of the complex. The company is involved in engineering and construction and property development.


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



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CIMB Research has technical buy on Zelan at 39 sen

KUALA LUMPUR (Jan 10): CIMB Equities Research has a technical buy on Zelan Corp at 39 sen at which it is trading at a price-to-book value of 1.5 times.

It said on Tuesday Zelan swung above its wedge resistance and 200-day SMA on Monday, suggesting that the consolidation from October 2011 is likely over.

“The next upleg is likely to push prices higher towards 41 sen to 42.5 sen levels.

“Technical landscape is improving. MACD signal line has staged a golden cross while RSI is also rising. The bulls seem to have the upper hand here as the candles are trading above all its key moving averages,” it said.

CIMB Research said traders may start to take some position here. However, always put a stop between 37.5 sen and 36 sen depending on one’s risk appetite.



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Zelan active, up on getting LOI for MRR2

KUALA LUMPUR (Dec 20): ZELAN BHD [] shares were actively trade and rose on Tuesday after its 95% subsidiary Terminal Bersepadu Gombak Sdn. Bhd. (TBGSB) received a letter of intent (LOI) from the Ministry of Works to upgrade the MRR2 road and Taman Melati interchange.

At 11.35am, Zelan was up two sen to 38 sen with 9.05 million shares done.

The company said on Monday that the LOI would remain valid for 6 months subject to terms and conditions and the pricing of the proposed upgrading works, failing which the governmenthad the right to terminate the LOI without any further notice.



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Zelan gains on securing road job

Zelan Bhd, a Malaysian builder, rose the most in two weeks in Kuala Lumpur trading after winning a road upgrading contract.

The stock gained 5.6 percent to 38 sen at 9:23 a.m. local time, set for its biggest increase since Dec. 5. -- Bloomberg



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Zelan gains on winning varsity tender

Zelan Bhd, a Malaysian builder, rose in Kuala Lumpur trading after winning a tender to develop a university studies center.

Its shares gained 2.7 percent to 38.5 sen at 9:05 a.m. local time, set for their highest close since Oct. 31. -- Bloomberg

Stocks to watch: Guinness Anchor, Kimlun, Zelan, Glenealy

KUALA LUMPUR (Nov 3): The outcome of the US monetary policy meeting early Thursday (Malaysia time) and ongoing developments in the Greece will determine the direction of the key Asian markets on Thursday.

At Bursa Malaysia, the FBM KLCI was down 4.69 points or 0.32% to 1,470.95, but off the day’s low of 1,457. However, the key Asian markets were mixed.

Among the stocks to watch are GUINNESS ANCHOR BHD [] (GAB), Kimlun Corp Bhd, ZELAN BHD [] and Glenealy PLANTATION []s (Malaya) Bhd.

GAB’s earnings rose 42.6% to RM55.21 million in the first quarter ended Sept 30, 2011 from RM38.69 million a year ago, as it recorded higher sales and share gains in the domestic malt liquor market.

Revenue rose 21.2% to RM444.62 million from RM366.63 million while earnings per share were 18.28 sen compared with 12.81 sen.

Kimlun plans to venture into the property development with the proposed acquisition of 17.2 ha of agricultural land in Negeri Sembilan for RM27.36 million. It proposes to build factories on the land, once it had received approval from the authorities for the conversion.

Loss-making Zelan Bhd has won a bid to develop the International Islamic University Malaysia's Centre for Foundation Studies in Pahang.

It was selected by the Public Private Partnership Unit of the Prime Minister's Department to implement Phase 3 of the centre's development in Gambang, Pahang.

Glenealy’searnings jumped 165% to RM19.01 million in the first quarter ended Sept 30, 2011 from RM7.41 million a year ago but it was cautious on the outlook for palm oil price.

It said on Wednesday its pre-tax profit was RM31.55 million, up 122% from RM14.20 million. Its revenue increased by 68.2% to RM17.67 million from RM42.60 million while earnings per share were 16.67 sen compared with 6.50 sen

However, when compared with the preceeding quarter, the financial results showed a decline.

MAH SING GROUP BHD [] is teaming up with Thailand's largest retail developer Central Pattana plc to look into the proposed development and management of a shopping mall in Icon City, Petaling Jaya.

Mah Sing said on Wednesday, its unit Sierra Peninsular Development Sdn Bhd had signed an MoU with Central Pattana to exchange general information to look into the shopping mall project via a joint venture and/or partnership.

DRB-HICOM BHD [] plans to establish a medium term note sukuk programme of up to RM1.80 billion in nominal value to finance working capital requirements, projects and refinance borrowings.

Zelan wins bid to build campus in Pahang

KUALA LUMPUR, (Nov 2): Loss-making ZELAN BHD [] has won a bid to develop the International Islamic University Malaysia's Centre for Foundation Studies in Pahang.

It said on Wednesday, it was selected by the Public Private Partnership Unit of the Prime Minister's Department to implement Phase 3 of the centre's development in Gambang, Pahang.

The project will be funded by a private finance initiative and is subject to terms and conditions between the government and Zelan.

Last Friday, Zelan said Mudajaya confirmed its intention to subcontract part of the civil works for the CONSTRUCTION [] of the 1,000 MW Tanjung Bin coal fired power plant in Johor.

However, this was subject to the consortium, comprising of Alstom, Mudajaya and Eversendai Corp Bhd, being appointed the main engineering, procurement and construction contractor (EPCC) by Malakoff Corporation Bhd for the power plant expansion.

In the first quarter ended June 30, 2011, it posted net losses of RM8.04 million on the back of RM12.80 million in revenue. As at June 30, the group’s current liabilities exceeded the current assets by RM206.42 million.

Market Commentary

The FBM KLCI index gained 10.07 points or 0.68% on Monday. The Finance Index increased 0.55% to 13494.2 points, the Properties Index dropped 0.10% to 965.87 points and the Plantation Index rose 0.94% to 7565.3 points. The market traded within a range of 17.57 points between an intra-day high of 1493.28 and a low of 1475.71 during the session.

Actively traded stocks include JCY, MAA, ZELAN, JCY-CD, OLYMPIA, IRCB, BORNOIL, MBFHLDG-WA, TMS and KURASIA. Trading volume decreased to 1331.98 mil shares worth RM1581.95 mil as compared to Friday’s 1877.90 mil shares worth RM2295.28 mil.

Leading Movers were CIMB (+11 sen to RM7.57), IOICORP (+11 sen to RM5.25), TENAGA (+12 sen to RM5.98), GENTING (+16 sen to RM10.76) and PBBANK (+10 sen to RM12.72). Lagging Movers were YTL (-2 sen to RM1.49), GAMUDA (-3 sen to RM3.40), HLBANK (-3 sen to RM10.60), TM (-1 sen to RM4.24) and PETDAG (-2 sen to RM16.30). Market breadth was positive with 426 gainers as compared to 318 losers.-- JF Apex Securities Bhd

Markets take a breather, KLCI down 4 pts

KUALA LUMPUR (Oct 31): Key regional markets including Bursa Malaysia took a breather on Monday, as investors used the excuse of the surge in the US dollar against the yen to take profit.

The markets had rallied last week after European officials hammered out a deal to rescue Greece. As for the FBM KLCI, it is up 114.3 points from Oct 3’s 1,367.52 to end 1,481.82 last Friday. For last week, the KLCI was up 30.9 pts or 2.19%.

At 12.30pm, the FBM KLCI was down 4.04 points or 0.27% to 1,477.78. Turnover was 637.07 million shares valued at RM526.29 million. There were 261 gainers, 334 losers and 263 stocks unchanged.

Reuters reported Asian shares fell and precious metals slipped on Monday as the dollar spiked to a three-month high against the yen following Japan's intervention, prompting investors to book profits after last week's rally.

The dollar rose more than 4 percent against the yen to above 79 yen, hours after briefly falling to a record low of 75.31 yen since World War II. The dollar index as measured against six major currencies rose 1.3 percent.

Hong Kong’s Hang Seng Index lost 1.14% to 19,791.74, South Korea’s Kospi fell 1.05% to 1,909.21, Singapore’s Straits Times Index 1.30% to 2,868.01, Japan’s Nikkei 225 0.18% to 9,034.45, Shanghai’s Composite Index 0.53% to 2,460.41 and Taiwan’s Taiex Index 0.35% to 7,589.10.

US light crude oil fell 90 cents to US$92.42, crude palm oil third month futures RM31 to RM2,940 while the ringgit weakened against the US dollar to 3.0750 from the previous close of RM3.0697.

At Bursa, among the heavyweights, Tenaga fell 11 sen to RM5.75 after posting losses in the fourth quarter while RHB Cap gave up 11 sen also to RM7.56. As for GENTING BHD [], investors took profit after the strong run-up in the share price.

Nestle was the top loser, down 60 sen to RM49.80, Petronas Dagangan 14 sen RM16.18 and IJM 13 sen to RM5.70.

Hard disk drive manufacturer JCY rose four sen to 61 sen with 40.77 million shares as it was expected to benefit as its competitors were affected by the severe flooding in Thailand. JCY-CD rose two sen to 8.5 sen.

Loss-making Zelan added 2.5 sen to 38 sen on news that it has received a letter of intent from Mudajaya Corporation Bhd to undertake civil works valued at RM300 million for a power plant expansion in Johor.

Among the gainers were Choo Bee, up 33 sen to RM1.75, DiGi 32 sen to RM31.82 while F&N rose 24 sen to RM17.02. Supermax extended its gains on the positive outlook for the glove maker, with the shares up 21 sen to RM3.77 while Latexx rose 12 sen to RM1.88 and the warrants 13 sen to RM1.44.

KL shares open higher in early trade

Share prices on Bursa Malaysia opened higher in early trading today, boosted by rising appetite in riskier assets, dealers said.

After 30 minutes of trading, the benchmark FTSE Bursa Malaysia KLCI was up 0.08 of a point to 1,481.9, after opening 2.84 points higher at 1,484.66.

The Finance Index rose 41.22 points to 13,461.81, the Plantation Index added 3.33 points to 7,498.01 but the Industrial Index lost 5.57 points to 2,709.09.

The FBM Emas Index improved 1.199 points to 10,118.56, the FBM Mid 70 Index fell 3.051 points to 10,956.6 and the FBM Ace Index declined 12.57 points to 4,060.38.

Gainers led losers 187 to 117 while 178 counters were unchanged, 988untraded and 19 others suspended. A total of 164 million shares worth RM113.3 million were traded.

Among active stocks, Borneo Oil rose 43 sen to two sen, The Media Shoppe was flat at nine sen while Zelan added three sen to 38.5 sen.

For heavyweights, Maybank earned two sen to RM8.37, CIMB improved three sen to RM7.49 but Sime Darby lost two sen to RM8.88. -- Bernama

Zelan climbs on getting award letter

Zelan Bhd, a Malaysian builder, rose to its highest level in almost three months after it received a letter of intent for RM300 million of subcontract works for a power plant project from Mudajaya Corp.

The stock climbed 8.5 percent to 38.5 sen at 9:09 a.m. local time, headed for its highest close since Aug. 1. The contract is subject to Mudajaya’s group being appointed as main contractor. -- Bloomberg

Zelan climbs on news it may get RM300m job

KUALA LUMPUR (Oct 31): Shares of loss-making ZELAN BHD [] rose on Monday on news that it has received a letter of intent from Mudajaya Corporation Bhd to undertake civil works valued at RM300 million for a power plant expansion in Johor.

At 9.35am, it was up 2.5 sen to 38 sen. There were 7.46 million shares done.

The FBM KLCI fell 0.78 of a point to 1,481.04. Turnover was 184.71 million shares valued at RM127.30 million. There were 188 gainers, 137 losers and 182 stocks unchanged.

Last Friday, Zelan said Mudajaya confirmed its intention to subcontract part of the civil works for the CONSTRUCTION [] of the 1,000 MW Tanjung Bin coal fired power plant in Johor.

However, this was subject to the consortium, comprising of Alstom, Mudajaya and Eversendai Corp Bhd, being appointed the main engineering, procurement and construction contractor (EPCC) by Malakoff Corporation Bhd for the power plant expansion.

In the first quarter ended June 30, 2011, it posted net losses of RM8.04 million on the back of RM12.80 million in revenue. As at June 30, the group’s current liabilities of the exceeded the current assets by RM206.42 million.