Benalec 2Q earnings up 52% to RM28.8m, boost from land sale

KUALA LUMPUR (Feb 28): Benalec Holdings Bhd, posted a 52.51% increase in earnings to RM28.84 million for the second quarter ended Dec 31, 2011, from RM18.91 million due to net gain on sale of land in the current quarter.

It said on Tuesday, revenue was 40.54% lower to RM26.89 million from RM45.22 million mainly due to certain projects located in Melaka had already reached the completion stage. Earnings per share were 3.90 sen compared to 3.00 a year ago.

For the first six months ended Dec 31, 2011, revenue was up 4.15% to RM101.47 million from RM97.43 million. Net profits were also up 18.2% to RM57.77 million from RM48.87 million.

"The increase in the revenue was mainly due to the increased activities in reclamation works being undertaken in Melaka and Port Klang," it said, adding the small increase in profit was due to the sale of land valued at RM15.5 million.

However, higher operating expenses, increased finance costs and a lower contribution from its marine CONSTRUCTION [] arm mitigated the gains.



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TSM shareholders in RM159m takeover deal

KUALA LUMPUR (Feb 28): Shareholders of TSM GLOBAL BHD [], who own 28.07% of the paid-up share shares, have offered to acquire all the business, including assets and liabilities, for RM159.24 million or RM1.25 per share.

TSM said it had received the offer letter from West River Capital Sdn Bhd – a special purpose vehicle in which TSM directors Datuk Lim Kheng Yew and Lim Tze Thean own 60:40 of West River.

The RM159.24 million would be RM1.25 cash per TSM share held by the remaining entitled shareholders and a deferred amount of RM1.25 per TSM share for all the shares held by identified parties as an amount remaining due and owing by the offeror.

TSM said the cash portion would amount to RM114.54 million and the deferred amount was RM44.70 million.

The parties involved would not reduce their stake to below the current 28.07% throughout the offer period and might raise their shareholdings.



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Genting 4Q earnings up 66% to RM772.9m, FY11 RM2.86b

KUALA LUMPUR (Feb 28): GENTING BHD []’s reported net profit of RM772.91 million in the fourth quarter ended Dec 31, 2011 was 66% higher compared with RM465.43 million a year ago.

It said on Tuesday its revenue increased by 23.9% to RM5.06 billion from RM4.08 billion. Its earnings per share were 20.94 sen compared with 12.57 sen while it proposed a dividend of 4.5 sen a share.

Group profit before tax was RM1.802 billion, compared with RM1.182 billion a year ago.

“The group’s profit before tax for 4Q11 included a reversal of RM308.6 million in respect of previously recognised impairment loss which relates to the UK casino licenses and a net fair value gain of RM64.4 million on derivative financial instruments,” it said.

Genting Bhd added that the profit before tax in 4Q10 had included a loss on discontinuance of cash flow hedge accounting using interest rate swaps of RM145.4 million arising from settlement of interest rate swaps.

“The increase in the revenue of the leisure & hospitality division was contributed by the leisure and hospitality businesses in Singapore, Malaysia, the UK and the US,” it said.

Genting said revenue and earnings before interest, tax, depreciation and amortisation (EBITDA) improved from that of 4Q10 as the just ended quarter benefited mainly due to overall higher volume of business despite a lower hold percentage in the premium players business.

The higher revenue and EBITDA from the UK operations were due mainly by its London casino operations.

For FY11, its earnings increased by 30.1% to RM2.867 billion from RM2.202 billion while revenue increased by 28.7% to RM19.56 billion from RM15.19 billion.



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Eversendai records net profit of RM36m in 4Q

KUALA LUMPUR (Feb 28): Steel contractor Eversendai Corporation Bhd recorded profits of RM36.42 million for the fourth quarter ended Dec 31, 2011, due to higher revenue from current on-going projects.

It said on Tuesday its revenue was RM313.29 million while earnings per share were 5.41 sen.

Eversendai attributed higher project revenue recognition in the quarter from current on-going projects as the reason for its performance.

Current projects include the New Doha International Airport and Doha Convention Center and Tower in Qatar, as well as, the King Abdullah Petroleum Studies & Research Center and CMA TOwer in Saudi Arabia.

Eversendai group MD and executive chairman Datuk AK Nathan said the company was optimistic about its prospects based on the order book in excess of RM1 billion in hand.

“It is evident that with the diverse and strong order book, the Group is looking towards performing well in FY 2012 and going forward. The group is also not solely dependent on any specific sector and or client with its wide geographical spread, number of projects, repeat clients and large client base of the current order book," he said.

The group derives 86.3% of its revenue from its Middle East operations in the United Arab Emirates, Saudi Arabia and Qatar, while its India and Malaysia operations contributed 6.3% and 7.4% respectively.

“With a solid performance for FY2011 under our belt, we are optimistic the group is on target for another strong financial year in FY2012. Riding on our strong track record and proven execution capabilities, we are well positioned to capitalise on the increased business opportunities," Nathan added.

For the financial year ended Dec 31, 2011, revenue was RM1.03 billion, while profits were RM119.45 million.



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Higher exports, prices see Oldtown 4Q net profit at RM11.6m

KUALA LUMPUR (Feb 28): Cafe chain operator Oldtown Bhd recorded RM11.66 million in profits for the fourth quarter ended Dec 31, 2011 as it benefited from an increase in exports of its beverage products and higher selling prices.

It said on Tuesday its revenue was RM80.40 million while earnings per share were 5.85 sen. Oldtown proposed an interim single tier dividend of 2.5 sen per share, with a proposed final dividend of 4.0 sen per share.

The group attributed higher exports and selling prices of its beverages and cafe chain operation to its financial performance.

It also cited a gain on disposal of investment in associated companies and of property, plant and equipment amounting RM8.4 million as other reasons for its performance.

For the financial year ended Dec 31, 2011, its revenue was RM285.49 million and profit was RM40.17 million.



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KLCI struggles, key regional markets advance

KUALA LUMPUR (Feb 28): Blue chips closed lower on Tuesday, weighed down by losses in Petronas Chemicals, Axiata and Tenaga, as the FBM KLCI struggled to breach the 1,560 level, in contrast with the firmer key regional markets.

The 30-stock KLCI closed down 2.31 points or 0.15% lower at 1,556.73 from a high of 1,562.42. Turnover was 1.73 billion shares valued at RM1.589 billion. Losers beat gainers 511 to 309, while 309 counters were traded unchanged.

The performance of the local stock market was a contrast to the positive sentiment at the key regional markets.

Shanghai's Composite Index rose 0.20% to 2,451.86, Hong Kong's Hang Seng 1.65% to 21,568.73, Japan's Nikkei 225 up 0.92% to 9,722.52, Singapore's Straits Index 0.73% to 2,968.27, South Korea's Kospi 0.63% to 2,003.69 and Taiwan’s Taiex 0.28% to 7,959.34.

Reuters reported that the European Central Bank's upcoming cash boost for banks supported the euro and shares but some investors are worried the benefits of the cheap money will be short lived.

At Bursa Malaysia, Petronas Chemicals fell 10 sen to RM6.80, dragging the KLCI down 1.01 points and Axiata shed five sen to RM5.10, pushing the KLCI down by one point. Losses in TNB, where the power giant’s share price fell five sen to RM6.30, shaved 0.64 of a point of the index.

Tenaga president and CEO Datuk Seri Che Khalib Mohamad Noh said he expected the power giant to perform better in the second quarter ended Feb 29, 2012 as it would receive RM2 billion in compensation from Petroliam Nasional Bhd and the government under a fuel cost-sharing mechanism.

Losers included JTI, down 25 sen to RM6.91 as investors were disappointed over the absence of a dividend payout. Sarawak Oil Palm fell 17 sen to RM6.

China Stationery Limited continued its strong performance post-IPO to be one of the most active and among top gainers after closing up 16 sen to RM1.39, with 84.98 million shares traded in.

Dutch Lady rose RM1.48 to RM28.98, Atlan 32 sen to RM3.47, Hong Leong Industries up 21 sen to RM4.20 while Hong Leong Bank and Carlsberg added 20 sen to RM11.90 and RM9.90 respectively.



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Market Commentary

The FBM KLCI index lost 2.31 points or 0.15% on Tuesday. The Finance Index increased 0.06% to 13920.97 points, the Properties Index up 0.15% to 1040.06 points and the Plantation Index rose 0.12% to 8622.6 points. The market traded within a range of 9.80 points between an intra-day high of 1562.42 and a low of 1552.62 during the session.

Actively traded stocks include IFCAMSC, CSL, IFCAMSC-WA, NICORP, TMS, SNTORIA, COMPUGT, WINSUN, GOCEAN and ZELAN. Trading volume increased to 1727.59 mil shares worth RM1588.57 mil as compared to Monday’s 1642.24 mil shares worth RM1633.98 mil.

Leading Movers were GENTING (+10 sen to RM10.54), YTL (+4 sen to RM1.58), HLBANK (+20 sen to RM11.90), PETGAS (+4 sen to RM16.56) and HLFG (+6 sen to RM11.82). Lagging Movers were PETCHEM (-10 sen to RM6.80), AXIATA (-5 sen to RM5.10), TENAGA (-5 sen to RM6.20), MAXIS (-9 sen to RM5.89) and YTLPOWR (-3 sen to RM1.85). Market breadth was negative with 309 gainers as compared to 511 losers. -- JF Apex Securities Bhd



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Malaysian O&G output to see upswing in 5 yrs, says Idris Jala

KUALA LUMPUR (Feb 28): The Malaysian oil and gas (O&G) output is likely to see an upswing within the next five years and continue to contribute significantly, together with the services sector, to gross domestic product (GDP).

Minister in the Prime Minister's Department, Datuk Seri Idris Jala, said last year, the sector declined by 5.7 per cent and the lower oil output had affected economic growth.

Idris, who is also Performance Management & Delivery Unit (Pemandu) chief executive officer, said this when asked whether Malaysia was over-dependent on the O&G sector at a media briefing with International Trade and Industry Minister Datuk Seri Mustapa Mohamed.

Earlier, both ministers met the foreign missions and business councils here.

He said the Malaysian economy, despite the contraction, managed to record a 5.1 per cent growth last year which indicated that the services sector was really growing.

"I think in the past we have relied quite a lot on the O&G sector to grow, no doubt about it and we are taking all the necessary measures to make the services sector grow.

"By 2020, with all the focus on the tourism, education, financial services, wholesale and retail and healthcare sectors, we will see a major shift in our economy moving more into the services sector," he said.

Idris said the O&G was still Malaysia's single largest sector and "if we had no decline, the GDP growth last year could have been more than six per cent or maybe 6.5 per cent".

The decline was mainly due to the maintenance works in Peninsular Malaysia and the drop in production of the Murphy Oil's Kikeh field, Malaysia's first deep-water oil field, was due to sand in the oil and would take about or more than two years to solve, he said.

Thus, he said, with the committed huge investments of about RM132 billion by the O&G industry players coming in, it is possible to arrest the decline in the sector as well as enable the services sector to grow more prominently in contributing to the country's GDP.

"I do not think we will see immediate reduction in the decline as it will take some time. I would say with all the other things we are doing in other areas to increase production coupled with investments, it would appear in the next couple of years (less than five years), you will see an upswing in production," he said.

Meanwhile, Mustapa said, the session with the foreign missions and business council were very much focused on halal and visa matters.

He said the government would continue to engage with them to work out the matters and welcomes more sessions to work together as well as to continuously update on the Malaysian progress. - Bernama



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