Trinity Corporation still in the red, 4Q net loss RM62.98m

KUALA LUMPUR (March 30): Trinity Corporation Bhd posted net losses of RM62.98 million in the fourth quarter ended Jan 31, 2011, which narrowed from the RM85.60 million a year ago, mainly due to loss on disposal of four units, impairments and doubtful debts.

It said on Friday that its pre-tax loss was RM64.81 million compared with RM79.52 million. However, its revenue increased 240% to RM197.53 million from RM58.10 million due to higher progress billings generated from the development projects and billings on sale of land.

Loss per share was 1.55 sen compared with 2.49 sen. Its net asset per share was 14 sen.

Commenting on the 4Q results, Trinity Corp said the property development and investment division accounted for 96.4% of the pre-tax loss.

“The current year quarter loss is mainly attributable to loss on disposal of four wholly-owned subsidiary companies of RM23.17 million, provision for impairment of land held for property development of RM36.31 million, provision for impairment on inventory of RM6.45 million and provision for doubtful debts of RM11.30 million.

“This was mitigated by gains arising from waiver of debt by a creditor of RM30.94 million and reduced finance cost,” it said.

For the financial year ended Jan 31, 2012, it registered a smaller net loss of RM117.07 million compared with RM167.08 million in the previous financial year. Revenue increased by 245% to RM632.31 million from RM183.39 million.

The higher revenue was mainly due to the completion of the disposal of the 1,322.44 acres of land in Bukit Beruntung Two to Menteri Besar Selangor (Inc).

Explaining the losses, Trinity Corp said it was due to the provision for impairment on land held for property development of RM45.54 million, provision for impairment loss on inventory of RM6.45 million, loss on disposal of four units of RM23.17 million and provision of doubtful debts of RM28.60 million.

However, the provisions were mitigated by higher operating income, mainly due to the waiver of debt by a creditor of RM30.94 million and gains of RM21.82 million arising from the conversions of preference shares and early redemption/conversion of loan stocks and reduced finance cost.



Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.

Esso Malaysia chairman resigns after Exxon disposal

KUALA LUMPUR (March 30): ESSO MALAYSIA BHD []’s chairman and executive director Hugh Walter Alexander Thompson resigned from his posts after ExxonMobil International Holdings Inc disposed of its entire stake in Esso Malaysia.

Filings with Bursa Malaysia showed that Thompson’s resignation takes effect from Saturday, March 31 as he was nominated to the board by ExxonMobil.

The changes followed the ExxonMobil's disposal of its 65% stake in Esso Malaysia to San Miguel Corporation’s unit Petron Oil & Gas International Sdn Bhd on Friday. Other board changes were the resignations of Fatimah Merican, Faridah Ali and Abu Bakar Siddik Che Embi as executive directors of Esso Malaysia.

Appointed as executive director to Esso Malaysia was Ramon S. Ang, who is the chairman and chief executive officer of Petron Corporation. Also appointed executive directors were Eric O. Recto, Aurora T. Calderon and Lubin B. Nepomuceno from the San Miguel group.

Stock market data showed that the block of shares, comprising of 175.5 million shares, was crossed at an average price of RM3.41. San Miguel is obliged to extend a mandatory take-over offer for the remaining 35% or 94.50 million shares.

In a separate statement, Esso Malaysia said the existing agreements between Esso Malaysia and stated affiliates of Exxon Mobil Corporation would terminate with effect from midnight of March 30.

“Esso Malaysia Bhd has necessary arrangements in place to effectively replace services/products that it obtained vide said agreements to ensure seamless continuity of operations post termination of said agreements with Exxon Mobil Corporation's affiliates,” it said.



Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.

Sapuracrest 4Q profit up 5% year-on-year

KUALA LUMPUR (March 30) : SAPURACREST PETROLEUM BHD []’s net profit rose 5% in the fourth quarter from a year earlier as lower operating expenses and foreign exchange gains mitigated the impact lower revenue during the period.

In a statement to the bourse on Friday, Sapuracrest said its net profit climbed to RM76.52 million from RM 72.67 million a year earlier while revenue was down 6% to RM560.43 million from RM596.34 million.

The oil and gas support services provider said higher contribution from its drilling operations had supported its bottom line during the quarter.

Sapuracrest’s cumulative full-year net profit rose 34% to RM310.23 million from RM231.45 million a year earlier although revenue fell 19% to RM2.56 billion from RM3.18 billion.



Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.

MBSB to disburse RM500m loans via 'MBSB my first home scheme'

PETALING JAYA (March 30): The MALAYSIA BUILDING SOCIETY BHD [] (MBSB) aims to disburse some RM500 million in loans through its newly launched "MBSB My First Home Scheme" campaign this year.

President-cum-Chief Executive Officer Datuk Ahmad Zaini Othman said if the reception towards the scheme, aimed at first-time home buyers was good, MBSB would have a RM1 billion stretched target.

He said the scheme was designed to allow eligible Malaysians under the age of 35 years' old to buy their first house with a ceiling price of RM500,000 and at a 100 per cent margin of financing, offering customers with an exemption of the normal 10 per cent downpayment.

"We hope this will provide relief to the targeted group who are mainly newcomers to the workforce and are challenged by the rising costs of living and of property in the country.

"This scheme is definitely in support of the government's call and Prime Minister Datuk Seri Najib Tun Razak's aspiration to promote home ownership among younger generation in Malaysia," he told reporters after launching the "My First Home Scheme" campaign.

On another matter, Ahmad Zaini said MBSB was on track to realise its goal to establish as a full-fledged development bank.

"For the past three years, we have been closing some important gaps. We need certain approvals from Bank Negara and shareholders' endorsement to move on.

"This may be realised this year or even next year. Even if you look at our products, we are offering financial products similar to banks.

"The gaps are very small now. We will continue to push our efforts to convince the shareholders, the central bank and the authorities," he added.

Set up in 1950, MBSB is an exempt finance company, with the Employees Provident Fund and Permodalan Nasional Bhd as its two major shareholders.

Ahmad Zaini also said MBSB was planning to open seven to eight branches nationwide this year. It has 36 branches currently. - Bernama



Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.

BNM: Banking system well-capitalised, RWCR at 14.8%

KUALA LUMPUR (March 30): Malaysia’s banking system remained well-capitalised in February with the risk-weighted capital ratio (RWCR) and core capital ratio (CCR) at 14.8% and 13% respectively.

In its monetary and financial development report for February, Bank Negara Malaysia (BNM) said on Friday net impaired loans remained stable and represented 1.9% of net loans. Loan loss coverage remained high at 97.5%.

BNM said its international reserves were RM427 billion (US$134.8 billion) as at March 15, 2012, sufficient to finance 9.7 months of retained imports and were 4.1 times the short-term external debt of the country.

Broad money (M3), on an annual basis, expanded at a higher rate of 15.9% in February to RM1.275 trillion outstanding versus 14.7% or RM1.271 trillion outstanding in January.

“The increase during the month was due to higher credit extended by banks to the private sector and foreign capital inflows,” it said.

The central bank noted that net financing to the private sector grew at a sustained pace.

Net financing in February rose to RM1.354 trillion from RM1.344 trillion in January and RM1.324 trillion in December, 2011. The net financing comprised of banking system loans outstanding and private debt securities outstanding but excluded non-resident and Cagamas.

Outstanding banking system loans to businesses increased at a steady pace mainly supported by lending to the CONSTRUCTION [], manufacturing and real estate sectors.

While loans extended to households grew at a more moderate pace during the month, it continued to remain high, driven mainly by loans for the purchase of residential and non-residential PROPERTIES [] and credit for personal use. Loan demand during the month remained high.

BNM data showed that loans applied in February totalled RM57.6 billion, compared with RM56.8 billion in January and RM63.5 billion in December 2011.

Loans approved in February totalled RM25 billion (January: RM26.7 billion; December 2011: RM34.7 billion). Loans disbursed totalled RM68 billion in February (January: RM69.7 billion; December 2011: RM83.7 billion). Loans repaid declined in February to RM65.8 billion (January: RM74.2 billion; December RM70.2 billion).



Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.

Petronas extends contract with UMW

KUALA LUMPUR (March 30) : Petroliam Nasional Bhd (Petronas) has extended its oil and gas support services contract with UMW HOLDINGS BHD [] by another two years in a deal valued at about US$105 million (RM321.8 million)

In a statement to the exchange on Friday, UMW said it will continue to offer its jack-up drilling rig known as “Naga 3” to Petronas Carigali Sdn Bhd which is the exploration arm of the national oil company from March 22 this year till March 21, 2014.

“The contract extension is expected to contribute positively to the earnings and net assets of UMW for the financial years from 2012 to 2014,” UMW said.



Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.

Yokohama ropes in GP Batteries as JV partner

KUALA LUMPUR (March 30) : Battery manufacturer Yokohama Industries Bhd has roped in Singapore-listed GP Batteries International Ltd as a joint venture (JV) partner to manufacture and trade thin metal film (TMF) lead acid batteries.

In a statement to Bursa Malaysia on Friday, Yokohama said both companies will establish a JV firm where Yokohama and GP will own 70% and 30% respectively. The collaboration was formalised via a JV agreement between Yokohama Industries 100%-owned unit Yokohama Ventures Sdn Bhd and GP’s 80%-owned subsidiary Bolder Technologies Pte Ltd.

“The JV will allow Yokohama to gain access to Bolder’s TMF TECHNOLOGY []. Currently, the 1AH TMF battery produces a cold cranking amperes output equivalent to that of a lead acid starter battery.

“By combining TMF and Yoko’s current battery know-how, there are possibilities in developing high-powered batteries both for cranking and start-stop applications. Nearly all start-stop applications employ supercapacitors paired with an absorbed glass mat battery,” Yokohama Industries said.



Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.

KLCI ends 1Q on a high

KUALA LUMPUR (March 30): The FBM KLCI ended the first quarter of 2012 on a high note, in line with the global markets that mostly picked up gains at the end of the quarter.

The 30-stock index rose 10.89 points to closet at 1,596.33 on Friday, lifted by blue chips including banking and Petronas-linked stocks.

The closing was just a tad below its all-time high of 1,597.08 that the index rose to on July 11 last year.

Year-to-date, the index racked up 65.6 points from its December 30 close of 1,530.73. Gainers edged losers by 402 to 360, while 334 counters traded unchanged. Volume was 1.25 billion shares valued at RM2.08 billion.

World stocks rose with Europe up more than half a percent on Friday, picking up gains at the end of the quarter and with investors eyeing a boost to the euro zone's bailout resources that ministers are expected to sign off on later in the day, according to Reuters.

Despite the strong quarter, sentiment across asset classes has turned bearish since mid-March due to fears of a slowdown in growth centred on China, and the conviction that a huge injection of central bank money may only be a panacea for Europe's debt troubles, it said.

At the regional markets, the Shanghai Composite Index rose 0.47% to 2,272.79, Taiwan’s Taiex added 0.77% to 7,933.00 and Singapore’s straits Times Index gained

Meanwhile, Japan’s Nikkei 225 closed 0.31% lower at 10,083.56, Hong Kong’s Hang Seng Index fell 0.26% to 20,555.58 while South Korea’s Kospi shed 0.02% to 2,014.04.

Affin Investment Bank Bhd vice president and head of retail research Dr Nazri Khan said that despite pockets of weakness from China market (Shanghai Composite at 10-week low) and soft economic data from the US and Europe, he expects the FBM KLCI to continue market uptrend supported by local liquidity and strong first quarter performance.

“The local market has ample liquidity at the sidelines, accommodative Bank Negara, low interest rates and government commitment for economic project. Plain and simple.

“We also believe the local market will take further cues from a strong USA market,” he said.

He added that there was a fairly reasonable speculative element in the small cap stocks to create some excitement near term (Carotec, Mtronics, Keywest, Focus, Tiger to name a few).

“Though we agree that the local market is overbought and investors may pause after recent sharp gains, we are yet to see any evidence of distribution to suggest serious market wind down in the near term,” he said.

On Bursa Malaysia, KLK was the top gainer and added 46 sen to RM24.60, F&N up 28 sen to RM18.88, Takaful 27 sen to RM3.39, United PLANTATION []s 18 sen to RM24.98, Kossan, Bursa and DiGi added 12 sen each to RM3.35, RM7.38 and RM4.06 respectively.

Among banking stocks, Hong Leong bank gained 24 sen to RM12.62, AMMB 10 sen to RM6.31, CIMB nine sen to RM7.69 and Maybank seven sen to RM8.87.

Among Pertronas-linked stocks, Petronas Dagangan rose 26 sen to RM18.94, Petronas Gas 10 sen to RM16.84 and Petronas Chemicals six sen to RM6.74.

Carotech was the most actively traded counter with 99.63 million shares done.

Other actives included CIMB, Focus, Ariantec, Metronic, YTL, Naim Indah Corp and Key West.

Decliners included Genting, Dutch Lady, sunchirin, Multico, Kulang, Shangri-La, Kulim, Fiamma, Advanced Packaging and TDM.



Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.