Update: Boustead 3Q net profit up 31.5% to RM120.9m

KUALA LUMPUR (Nov 21): BOUSTEAD HOLDINGS BHD [] net profit for the third quarter ended Sept 30, 2011 jumped 31.55% to RM120.90 million from RM91.9 million a year earlier, due mainly to higher sales volume and firmer palm product prices.

The company said on Monday that its revenue for the quarter rose 44.6% to RM2.19 billion from RM1.51 billion in 2010.

Earnings per share rose to 12.86 sen from 9.83 sen a year earlier, while net assets per share was RM4.63.

The company declared a third interim single tier dividend of 12 sen per share to be paid on Dec 30.

For the nine months ended Sept 30, Boustead’s net profit rose 27.3% to 418.3 million from RM328.6 million in 2010 while revenue jumped to RM6 billion from RM4.49 billion.

Reviewing its performance, Boustead said the higher sales volume had contributed toward the increase in revenue for its manufacturing and trading division, while the PLANTATION [] division was boosted by stronger palm product prices.

It said the first time consolidation of Pharmaniaga during the second quarter had also boosted revenue of its pharmaceutical division.

On its prospects, Boustead said on the overall, the group expected to register satisfactory results for the current financial year.

It said plantation’s earnings would very much be dependent on palm oil prices that were expect stay at attractive levels for the remainder of the year, and thus enable the division to deliver very strong earnings for FY2011.

It also said the negotiations for the contract to construct six naval vessels was progressing well and would have a positive effect on the earnings of the heavy industries division.

On its property division, Boustead said it was looking forward to stable recurring income from its portfolio of commercial and retail PROPERTIES [] and the expansion of the hotel operations.

Meanwhile, contributions from Pharmaniaga together with the improved performance from Boustead’s pharmaceutical manufacturing operation would augur well for the pharmaceutical division, it said.



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Update: Mah Sing 3Q net profit up 45% to RM43.2m

KUALA LUMPUR (Nov 21): MAH SING GROUP BHD []’s earnings jumped 45.6% to RM43.22 million in the third quarter ended Sept 30, 2011 from RM29.67 million while up to Nov 15, its sales had exceeded RM2 billion.

It said on Monday that the performance was underpinned by strong sales which exceeded the RM2-billion mark as up to Nov 15, due to the strong branding and the flexibility afforded by its comprehensive portfolio of PROPERTIES [].

Mah Sing said revenue also recorded strong growth, up 48.4% to RM420.69 million from RM283.46 million while earnings per shares rose to 5.20 sen from 3.57 sen.

For the nine-month period, its earnings rose 47% to RM127.52 million from RM86.72 million in the previous corresponding period while its revenue increased by 41.6% to RM1.148 billion from RM810.82 million.

It said the revenue was underpinned by development activities in Kuala Lumpur, Klang Valley, Penang and Johor Baru

“Ongoing projects that contributed to revenue and profit include Garden Residence in Cyberjaya, Kinrara Residence in Puchong, Perdana Residence 2 in Selayang, MSuites in Jalan Ampang, One Legenda and Hijauan Residence in Cheras, Icon Residence in Mont' Kiara, Kemuning Residence in Shah Alam and Aman Perdana inMeru Shah Alam.”

Also contributing are commercial projects such as Southgate Commercial Centre in Sungai Besi, Star Parc Point inSetapak and industrial projects, i-Parc1 and i-Parc3 in Bukit Jelutong as well as i-Parc 2 in Shah Alam.

Projects in Penang Island, Residence@Southbay and Legenda@Southbay and in Johor Bahru, Sierra Perdana, Sri Pulai Perdana 2 and Austin Perdana also contributed to revenue and profit. The plastics division continued to contribute positively to the Group's performance,” it said.

“The group’s balance sheets remain healthy with net gearing ratio at 0.38 as at Sept 30, 2011,” it said.



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'Construction sector to underperform in Q4'

The construction sector is expected to under-perform if the fourth quarter growth does not improve substantially, the Master Builders Association Malaysia (MBAM) said today.

This is in view of the fact that the sector grew only by 3.8 per cent and 0.6 per cent in the first two quarters, it said.

Bank Negara announced recently that the construction sector only managed a three per cent growth in the third quarter of this year.

The association urged the government to immediately speed up the award of new projects particularly projects with high impact on the economy as the construction industry has a multiplying impact on over 140 other industries.

For projects involving foreign direct investments and domestic investors, the timely issuance of construction permits would further improve investors' confidence, it said in a statement today. - Bernama



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TSH: 2011 profit will exceed projections

Plantation-based TSH Resources Bhd expects its net profit for the financial year ending December 31, 2011 to exceed analysts' projections.

The projection of several research houses is for the company's net profit for the current financial year to range from RM101 million to RM121 million.

For the nine months ended at September 30, 2011, TSH recorded a net profit of RM94.4 million compared to RM40.8 million for the previous corresponding period.

"We are confident that the profit attributable to shareholders will exceed the expectations of the analysts,", TSH Resources chairman, Datuk Dr Kelvin Tan said at the company's extraordinary general meeting here today.



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KL shares lower at midday

Share prices on Bursa Malaysia at midday today extended the downtrend, as the market succumbed to selling pressure in tandem with losses on regional markets over continuing concerns that the eurozone debt crisis may spread to more countries in the 27-member European Union, dealers said.

The FTSE Bursa Malaysia KLCI (FBM KLCI) fell 14.47 points to 1,439.93 after opening 2.64 points lower at 1,451.76. The Finance Index lost 98.88 points to 12,889.91, the Plantation Index shed 74.15 points to 7,540.49 and the Industrial Index declined 47.98 points to 2,625.20.

The FBM Emas Index slid 100.09 points to 9,885.46, the FBM70 Index fell 100.33 points to 10,827.99, the FBM Top 100 Index dipped 95.75 points to 9,689.56 and the FBM ACE Index declined 52.81 points to 4,143.11.

Decliners led advancers 582 to 110 while 194 counters were unchanged, 595 untraded and 26 others suspended. Total volume stood at 707.766 million shares worth RM491.986 million.

For the actives, Compugates Holdings was unchanged at eight sen, Fast Track Solution also remained unchanged at 10.5 sen and DPS Resources slipped three sen to 19.5 sen, but Flonic Hi-Tech added three sen to 30 sen.

Among heavyweights, Maybank lost two sen to RM8.23, CIMB eased seven sen to RM6.80 and Sime Darby lost 10 sen to RM8.80 but RHB Capital gained 11 sen to RM7.40. -- Bernama



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Asian markets mired in red over grim economic outlook

KUALA LUMPUR (Nov 21): Asian equity markets, including Bursa Malaysia, remained in negative territory on as Chinese Vice-Premier Wang Qishan warned on Monday that the global economy remains in a grim state.

Global markets have been on the retreat since last week as uncertainty remained over how euro zone leaders would respond to mounting funding difficulties for European banks.

At the mid-day break, the FBM KLCI was down 14.38 points to 1,440.02, weighed by losses at select blue chips.

Market breadth was negative with losers leading gainers by 582 to 110, while 194 counters traded unchanged. Volume was 707.77 million shares valued at RM491.99 million.

The ringgit fell 0.24% to 3.1727 versus the US dollar; crude palm oil futures for the third month delivery fell RM28 per tonne to RM3,220, crude oil slipped four cents per barrel to US$97.63 while gold shed US$1.05 an ounce to US$1,722.90.

Asian stocks fell as Wang’s warning, made at the annual U.S.-China Joint Commission on Commerce and Trade, or JCCT, in the southwest Chinese city of Chengdu, echoed his comments over the weekend that a long-term global recession was certain and China must focus on its domestic problems, according to Reuters.

Policymakers globally are expressing increasing alarm at the risks facing the world economy, mainly stemming from financial contagion in Europe. Several central banks, including those in the euro zone, Australia, Brazil and Indonesia, have cut official interest rates to support their economies, it said.

At the regional markets, Japan’s Nikkei 225 shed 0.23% to 8,355.43, Hong Kong’s Hang Seng Index lost 1.83% to 18,152.99, the Shanghai Composite Index was down 0.37% to 2,407.74, Taiwan’s Taiex lost 2.19% to 7,075.25, South Korea’s Kospi fell 1.37% to 1,814.02 and Singapore’s Straits Times Index was down 0.80% to 2,708.39.

On Bursa Malaysia, PPB fell 38 sen to RM16.14, KLK lost 36 sen to RM20.72, Nestle and Fima Corp 30 sen each to RM49.70 and RM5.80, GAB 28 sen to RM10.64, MISC 26 sen to RM6.19, Hong Leong Bank 24 sen to RM10.30, BLD PLANTATION []s 23 sen to RM6.73 while Panasonic and Petronas Gas fell 20 sen each to RM19.60 and RM13.02.

Compugates was the most actively traded counter with 33.1 million shares done. The stock was unchanged at 8 sen.

Other actives included Fastrak, Flonic, DPS Resources, Tiger, Karambunai, Sumatec, Extol, SYF Resources and Frontken.

Meanwhile, gainers included Harvest Court, DiGi, RHB Capital, KrisAssets, Sarawak Oil Palms, Glenealy and Dutch Lady.



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RHBCap said may issue stock to pay for OSK

RHB Capital Bhd, Malaysia’s fifth-biggest banking group, may issue stock to pay for OSK Holdings Bhd’s investment bank, three people with knowledge of the matter said.

RHB may issue new shares equivalent to as much as 10 percent of its existing equity to pay for the unit, said the people, who declined to be identified as talks are private. That would value the transaction at up to RM1.63 billion (US$514 million), based on RHB’s market capitalization.

Buying OSK Investment Bank Bhd would allow RHB to overtake CIMB Investment Bank Bhd as the biggest stockbroker in Malaysia, based on data from the country’s exchange. RHB Chief Executive Officer Kellee Kam Chee Khiong last week told local newspaper The Star that he expects to complete the deal by mid-December.

The Kuala Lumpur-based companies said in October they received central bank approval to begin negotiations to combine their investment banking businesses. The approval is valid for three months, they said at the time.

RHB in June broke off separate merger talks with Malayan Banking Bhd and CIMB Group Holdings Bhd, the country’s two largest banks, and said it would focus on expanding on its own. Talks with the two rivals collapsed after Abu Dhabi’s Aabar Investments PJSC bought a stake in RHB at an above-market price, pushing up the price of a takeover. Shares in RHB have dropped 25 percent since June 1.

Mahanum Shariff, head of group corporate communications at OSK Holdings, declined to comment on the transaction. Kam was at a meeting and not immediately available, his secretary said. -- Bloomberg



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Harvest shares continues uptrend

Shares of Harvest Court Industries continued to climb today.

As at 10.56 am, the counter jumped 23 sen to RM10.56 with 1.1 million shares transacted and was one of the top gainers.

The counter rebounded last Friday after sliding for the two previous days.

The counter also resumed trading as a designated counter last Wednesday.

Bursa Malaysia requires an upfront payment for trading in the company's shares to curb excessive speculation. Harvest Court's share has surged to record high in the past month. -- Bernama



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