Kencana secures RM74m fabrication job from ExxonMobil

KUALA LUMPUR (Feb 29): KENCANA PETROLEUM BHD [] has secured a RM74 million contract from ExxonMobil Exploration and Production Malaysia (EMEPMI) to fabricate the substructure for a platform off Terengganu.

The company said on Wednesday its unit Kencana HL Sdn. Bhd was awarded the contract to fabricate the substructures which include jacket, piles and related components which formed part of Tapis R central processing platform for the Tapis re-development project off the coast of Terengganu.

“The total value of the contract is approximately RM74 million. It is a one-off EPC contract and is expected to be delivered to EMEPMI within the second quarter of calendar year 2013,” it said.



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Sozo to invest RM16m to boost halal food processing capacity

KUALA LUMPUR (Feb 28): Ready-to-serve food manufacturer Sozo Global Ltd is looking to invest RM16 million this year to boost its halal food processing capacity, which could see its setting up a plant in Negeri Sembilan.

Its chief executive officer Shen Hengbao said the group was looking to sign a memorandum of understanding with a local company next month.

"We are looking at spending RM8 million with regard to this,” he said on Wednesday.

Sozo Global, he said, was also looking to invest RM8 million to build a factory next to the site of the MoU partner’s factory.

He said the company which it would tie up with, recorded about RM12 million in revenue per year and it specialised in making roti prata and spring rolls.



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KUALA LUMPUR (Feb 29): The FBM KLCI rose more than 10 points in late morning trade on Wednesday, the most in recent weeks, with consumer-related count

KUALA LUMPUR (Feb 29): The FBM KLCI rose more than 10 points in late morning trade on Wednesday, the most in recent weeks, with consumer-related counters among the major gainers as sentiment perked up in line with the regional markets.

At 11.16am, the KLCI was up 10.32 points to 1,567.05. Turnover was 672.86 million shares valued at RM634.94 million. Advancing counters beat decliners 382 to 218 while 268 stocks were unchanged.

BAT rose RM1.14 to RM53.44m Dutch Lady 42 sen to RM29.40 and Carlsberg 16 sen to RM10.06.

HLFG rose 42 sen to RM12.24, Aeon 41 sen to RM8.60 and PetGas 32 sen to RM16.88 while PPB and CCM Dbio rose 30 sen each to RM17.30 and RM2.50.

Cypark again came under the radar screen, rising 13 sen to RM2.04.



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TSM Global shares climb on takeover offer

KUALA LUMPUR (Feb 29): Shares of TSM GLOBAL BHD [] advanced in early trade on Wednesday after the company received a takeover offer at RM1.25 a share.

At 10.02am, it was up eight sen to RM1.20 with 60,100 shares done.

The FBM KLCI rose 6.7 points to 1,563.43. Turnover was 406.92 million shares done valued at RM268.53 million. There were 269 gainers, 171 losers and 252 stocks unchanged.

TSM announced on Tuesday that several parties owning 28.07% of its shares, had offered to acquire all the business, including assets and liabilities, for RM159.24 million or RM1.25 per share

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.



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RHB Research maintains Underperform on KNM Group, FV 68 sen

KUALA LUMPUR (Feb 29): RHB Research Institute is maintaining its Underperform on KNM GROUP BHD [] at 94 sen and accorded a fair value of 68 sen.

It said on Wednesday there could be more downside risks for earnings in the near term.

“As such, we continue to be cautious on the stock. Rerating catalysts will be when it starts to show sustainable earnings and operational improvement. We maintain our fair value estimate of 68 sen a share based on unchanged 0.4 times FY12 price-to-book value,” RHB Research said.

The research house said KNM Group’s FY2011’s loss before tax of RM147.5 million was better than its expectations of RM187.7 million, but worse than consensus full-year loss before tax estimate of RM93.6 million.

“The variance to our estimate was largely due to lower-than-expected interest costs. We have opted to look at the profit before tax of the company as it is a better measure of KNM’s operational earnings and excludes the effect of the tax incentive,” RHB Research said.



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Bintulu Port 4Q earnings double to nearly RM60m

KUALA LUMPUR (Feb 29): BINTULU PORT HOLDINGS BHD [] reported a 107% increase in earnings at RM59.94 million for the fourth quarter ended Dec 31, 2011 from RM28.87 million a year ago.

It said on Wednesday its profit before taxation of RM43.76 million was 22.1% higher compared to RM35.84 million a year ago. It proposed a final dividend of 7.50 sen a share.

Bintulu Port’s operating revenue increased by 6.2% to RM125.36 million from RM118.07 million a year ago.

“Revenue generated from port services is RM116.60 million with the revenue from the handling of LNG vessel calls and cargo contributing RM90.47 million (72.17%) towards the total operating revenue. Revenue from bulking services contributed RM8.76 million (6.99%) towards the total operating revenue,” it said.

For FY11, its net profit climbed 22.4% to RM170.77 million from RM139.44 million but its revenue fell 4.8% to RM490.13 million from RM514.83 million.

Trading in the shares was suspended from 9am to 10am.



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CIMB Research has technical buy on WCT at RM2.64

KUALA LUMPUR (Feb 29): CIMB Equities Research has a technical buy on WCT BHD [] at RM2.64 at which it is trading at a FY13 price-to-earnings of 9.8 times and price-to-book value of 1.5 times.

The research house said on Wednesday that WCT, which had broken out from its triangle pattern in February, the share price further pushed above its 200-day SMA before consolidating in a bullish flag pattern.

“Once this consolidation is over, we think the stock is poised for one more leg up,” it said.

CIMB Research said that the MACD signal line is losing pace but remains above the zero line. RSI is also trading above the 50pts mark.

“We see the possible likelihood of a stronger rebound soon. If the candles can hold firm above its 200-day SMA, the next upswing will likely push prices towards RM2.78 and RM2.92 next. Be quick to cut loss if the RM2.58 level is violated,” it said.



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CIMB Research has technical sell on China Ouhua Winery at 22 sen

KUALA LUMPUR (Feb 29): CIMB Equities Research has a technical sell on China Ouhua Winery Holdings at 22 sen at which it is trading at a price-to-book value of 0.6 times.

It said on Wednesday that China Ouhua violated its triangle support on Tuesday.

“We view this as a prelude to more downside ahead. If we are right, the next downleg is likely to drag prices back to its previous low of 19.5 sen again, before heading towards 16 sen next. There is a minor support at 20.5 sen,” it said.

CIMB Research said the technical indicators were showing signs of exhaustion. MACD signal line had staged a dead cross while RSI is below the 50 pts mark.

“Unless prices bounce back above its 30-day and 50-day SMAs soon (at 26 sen and 25.5 sen respectively), unload on strength looks like a good option here,” said the research house.



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