Xingquan confident of continuing double digit growth, says CEO

KUALA LUMPUR (Dec 2): Xingquan International Sports Holdings Ltd is confident that it can maintain its double digit growth in revenue for FY12 ending June 2012, said its chief executive officer Wu Qingquan.

Speaking after the company’s third AGM on Friday, Wu said its compound annual growth rate from 2006 to 2011 was 39%.

“Based on the recently concluded spring and summer sales order, we got about a 10% increase in sales order from our distributors,” he said.

On its expansion plans, Wu said its immediate target was to add another 200 sales outlet in China from 2300 outlets currently, for its outdoor casual wear brand, GERTOP.

Wu said it will spend about RMB25 million in subsidies for the 200 sales outlets.

Wu added that Xingquan will its expand production capicity for outdoor shoes by 20% to 30 million pairs of shoes from 24 million pairs of shoes currently.

Moving forward, Wu expects its apparel division to be the main driver in revenue for the company.

In FY11, apparels contributed to 28% to Xingquan's revenue, while shoes (40%), and soles (19%).

Xingquan is involved in manufacturing of shoes and shoe soles, and the sale of shoes, shoe soles, apparels and accesorries. Its main products are outdoor sports shoes and apparels.

Xingquan became the first conmpany from China to be listed on Bursa on July 10, 2009.



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Muted gains on KLCI as profit taking sends Asian markets lower

KUALA LUMPUR (Dec 2): Gains on the FBM KLCI were muted at the mid-day break on Friday, while most Asian markets fell as investors took profit ahead of the US employment data set to be released later in the day.

Although Asian stocks are poised for their first weekly rise in a month buoyed by coordinated central bank actions, the release of mixed economic data from the United States and China spooked some investors and profit taking started chipping off the gains at some of the regional markets.

The FBM KLCI was up 1.86 points at 1,487.12 at the mid-day break. Gainers trailed losers by 234 to 332, while 277 counters traded unchanged. Volume was 810.72 million shares valued at RM541.42 million.

The ringgit strengthened 0.31% to 3.1301 versus the US dollar; crude palm oil futures for the third month delivery fell RM10 per tonne to RM3,048, crude oil slipped 7 cents to US$100.13 while gold fell US$2.13 an ounce to US$1,742.70.

At the regional markets, Japan’s Nikkei was up 0.27% to 8,620.25.

Elsewhere, the Shanghai Composite Index lost 1.44% to 2,352.52, Taiwan’s Taiex fell 0.94% to 7,111.55, Singapore’s Straits Times was down 0.65% to 2,743.84, Hong Kong’s Hang Seng Index fell 0.49% to 18,909.07, and South Korea’s Kospi lost 0.30% to 1,910.36.

On Bursa Malaysia, Nestle was the top gainer at the mid-day break and was up 60 sen to RM52.80; Dutch Lady gained 30 sen to RM24.70, Proton up 29 sen to RM3.39, Tradewinds PLANTATION []s 23 sen to RM4.15, Panasonic, HLFG and Harvest Court 20 sen each to RM19.94, RM11.78 and RM1.10 respectively, while Petronas Dagangan and Petronas Gas added 18 sen each to RM16.80 and RM13.50.

Among the decliners, Aeon Credit fell 20 sen to RM6.10, Shangri-La and Genting Plantations down 13 sen to RM2.25 and RM8, Inno 12 sen to RM1.23, SHL and BAT fell 10 sen each to RM1.15 and RM48, Timwell down nine sen to 76 sen, while PPB and TSH lost eight sen each to RM16.50 and RM1.91.

The actives included Wijaya warrants, DPS Resources, SYF Resources, Compugates and Tiger Synergy.



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PLUS to be suspended Dec 8 for dividend distribution

KUALA LUMPUR (Dec 2): Trading in the securities of PLUS EXPRESSWAYS BHD [] will be suspended from Thursday, Dec 8 for the distribution of the cash proceeds.

A Bursa Malaysia circular on Friday said the suspension was from distribution following the disposal of the businesses, assets and liabilities via a special dividend and selective capital reduction and repayment.

Under the distribution, PLUS shareholders, other than the Employees Provident Fund Board, UEM Group Bhd and Khazanah Nasional Berhad, will be entitled to receive RM4.45 for each PLUS share held on the entitlement date.



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TSH falls after 1-for-1 bonus, OSK Research FV RM2.21

KUALA LUMPUR (Dec 2): Shares of TSH RESOURCES BHD [] fell to a low of RM1.90 on Friday after its bonus shares, which were issued on a one-for-one basis, went ex.

At 12.08pm, it was down eight sen to RM1.91. There were 513,100 shares done at prices ranging from RM1.90 to RM2.01.

OSK Research said that following its calendar year 2012 crude palm oil (CPO) price assumption upgrade to RM3,000 per tonne, it was raising its FY12 earnings forecast for TSH by 10.4% and revising upwards its fair value to RM2.21.

“The company possesses one of the youngest tree age profiles among planters under our coverage, but its valuations are starting to appear a little rich following its recent strong price appreciation. Still a BUY at the moment with a potential 10.8% upside,” it said.



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KL shares remain mixed at midday

Share prices on Bursa Malaysia ended the morning session mixed today amid weak regional market sentiment and mild profit-taking, dealers said.

The key FTSE Bursa Malaysia KLCI (FBM KLCI) rose 2.01 points, or 0.14 per cent, to close at 1,487.27 on selective buying in heavyweights despite the bearish sentiment.

It had opened 4.18 points higher at 1,489.44 in the morning.

A dealer said the local bourse was likely to move narrowly in line with the major regional markets following a mixed performance on Wall Street overnight and absence of market-stimulating news.

Hong Leong Investment Bank Research said the key FBM KLCI was likely to encounter profit-taking but any selling pressures would likely be well-absorbed as technical indicators remained positive.

"As long as the index is able to maintain its posture above the uptrend line support near 1,440, we remain short-term positive on the market," it said in a research note today.

Trading was moderate with volume stood at 810.72 million worth RM541.42 million. Losers led gainers by 332 to 234 while 277 counters were unchanged.

The Plantation Index increased 12.84 points to 7,830.47 and the Industrial Index added 14.69 points to 2,683.95. Finance Index, however, slipped 44.62 points to 13,283.72.

The FTSE Bursa Malaysia Emas Index gained 8.53 points to 10,147.45 and the FTSE Bursa Malaysia Mid 70 Index was 7.73 points higher at 10,965.11. FTSE Bursa Malaysia Ace Index, however, declined 19.66 points to 4,134.64.

Among active stocks, Wijaya-Warrants rose 0.5 sen to 24.5 sen, SYF Res-Warrants up 10 sen to 37 sen and DPS Resources added 1.5 sen to 16.5 sen.

For heavyweights, Maybank dropped 7 sen to RM8.32, CIMB eased 4 sen to RM7.18 while Sime Darby advanced 6 sen to RM9.10. -- Bernama



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Bursa Malaysia wins 4 international awards

Bursa Malaysia Bhd has bagged four awards in the 13th annual edition of the IR Global Rankings (IRGR) for Outstanding Corporate Governance in Asia-Pacific and Best Ranked Corporate Governance by Industry (Financials) and Best Online Annual Report in Asia-Pacific for 2011.

Bursa Malaysia also won the Bronze Award for Investor Relations website in Asia-Pacific.

The awards were given in recognition of Bursa Malaysia’s exemplary best practice on corporate governance as well as online annual report structure.

In a statement today, chief executive officer, Datuk Tajuddin Atan, said as a proponent of sound corporate governance and investor relations practices, Bursa Malaysia was honoured to receive these international recognitions.

"They are a testament of our steadfast commitment to embody the values of accountability, integrity, transparency and governance in our business operations.

"As we aspire further towards building an exchange of quality, these awards are a reminder of our contributions to the development of good corporate governance and investor relations practices in the country," he said.

Tajuddin said he would like to attribute this recognition to all Bursa Malaysia employees for their efforts in ensuring operational excellence and exemplary execution.

The IRGR is the most comprehensive ranking system for investor relations website, online annual report, corporate governance practices and financial disclosure procedures.

The ranking is based on extensive technical proprietary research of publicly traded companies through a clear and transparent methodology. The ranking is supported by key global institutions such as Arnold & Porter, KPMG, MZ and Sodali.

Over 600 companies from over 30 countries participated in the 2011 edition of the IRGR. The participants were benchmarked against companies in the global and Asia-Pacific region in four main categories-Best Ranked IR Website; Best Ranked Online Annual Report; Best Ranked Financial Disclosures Procedures; and,
Best Ranked Corporate Governance Practices.

In 2010, Bursa Malaysia won awards for Outstanding Corporate Governance in Asia-Pacific and Best Online Annual Report in Asia Pacific. -- Bernama



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PLUS shares to be suspended on Aug 8

Trading in PLUS Expressways Bhd shares will be suspended from 9am next Thursday to facilitate cash distribution from its business disposal, Bursa Malaysia said today.

The cash proceeds from the entire business disposal and undertakings includes PLUS Expressways' assets and liabilities via a special dividend and selective capital reduction and repayment.

At 12.02pm, PLUS Expressways' shares rose 1 sen to RM4.45, with 5,414 lots traded. -- Bernama



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Analysts upgrade ratings on Tenaga

Tenaga Nasional Bhd may be in line for a payment of about RM2 billion (US$641 million) after the government and Petroliam Nasional Bhd agreed to share extra fuel costs that have driven the Malaysian utility into losses.

Tenaga received a letter from the government agreeing to a fuel-cost sharing mechanism, with extra costs of RM3.069 billion caused by a gas shortage to be split equally between the three, according to a statement from Tenaga yesterday. As the company’s financial situation is “critical,” it will liaise as soon possible with the other two parties to implement the agreement, it said.

“It’s a welcome relief,” Lim Tee Yang, a Kuala Lumpur-based analyst at RHB Capital Bhd, wrote in a report today. “The fuel cost mechanism indicates that the government is sympathetic to Tenaga’s troubles and will step in when necessary.” Lim raised his rating on Tenaga to “strong buy” from “underperform”.

Disrupted production at gas platforms owned by Petroliam Nasional, or Petronas, has forced state-controlled Tenaga to buy costlier oil and distillate fuel for electricity generation. This incurs additional costs of RM400 million every month, chief executive officer Che Khalib Mohamad Noh said on Oct 28.

Tenaga’s stock gained 1.4 per cent to RM5.76 at 9:42 a.m. in Kuala Lumpur trading.

Tenaga’s shares were upgraded to “buy” from “hold” at Maybank-Kim Eng, which cited an improvement in its balance sheet health. The stock was raised to “neutral” from “underperform” at Credit Suisse Group AG, which increased its estimate for Tenaga’s profit for the year through August by 87 per cent.

Tenaga is facing higher costs from running plants on alternative fuels and from importing electricity from Singapore and Thailand, yesterday’s statement said. The extra costs covered by the fuel-cost sharing mechanism were incurred between Jan 1 last year and Oct 31 this year, it said.

“Although the compensation mechanism is a positive development for Tenaga, the deal only covers for costs up to October 2011,” Annuar Aziz and Tan Ting Min, Kuala Lumpur-based analysts at Credit Suisse, wrote in a report. “We remain concerned as the gas shortage is expected to persist.” -- Bloomberg



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