DiGi.Com 1Q net profit dips 3.24% to RM320.64m

KUALA LUMPUR (April 25): DIGI.COM BHD [] net profit for the first quarter ended March 31, 2012 dipped 3.24% to RM320.64 million from RM331.39 million a year earlier.

In a statement Wednesday, DiGi said revenue for the period grew 9.7% to 1.57 billion from RM1.43 billion in 2011, due mainly to data revenue which accounted for close to 31% of total revenue.

Earnings per share was 4.12 sen compared to 4.26 sen a year earlier.

DiGi will pay a first interim tax exempt dividend of 5.9 sen per ordinary share for the financial year ended Dec 31, 2012 on June 8 June this year.

Commenting on its revenue, the company said growth came on the back of continued momentum in its business transformation programme.

Its chief executive officer Henrik Clausen said the telco had seen a steady increase in demand for mobile internet with 5.3 million mobile internet users as of March 31, 2012.

“We believe we will continue to see a significant increase in the number of active mobile internet customers in the coming years, and we will focus our investments on building the right infrastructure and services to enable us to truly deliver the promise of mobile internet to more Malaysians,” said Clausen

In a separate announcement, DiGi said its wholly owned unit DiGi Telecommunications Sdn Bhd (DiGiTel) will undertake a capital distribution of about RM495 million to DiGi on the basis of cash repayment of 99 sen for every one existing share of RM1 each in DiGiTel.

“Upon receipt of the cash proceeds from DiGiTel, DiGi expects to distribute approximately RM495 million (less expenses) representing 64 sen per share to its shareholders,” it said.



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Privasia unit gets RM12.8m fibre optic job in Malacca

KUALA LUMPUR (April 25): Privasia TECHNOLOGY [] Bhd’s subsidiary Privanet Sdn Bhd (Privanet) has received a contract worth RM12.8 million from the Malacca state government to install and maintain fibre optic network in that state.

In a statement Wednesday, the company said Privanet had received a letter of tender acceptance from the Malacca state government to install a complete fibre optic network in the state by the third quarter of 2012.

Privasia chief executive officer and managing director Puvanesan Subenthiran said that upon completion, the project would enhance the internet experience and connectivity of the population.

“This project will certainly elevate us to the next level in the telecommunications industry,” he said.

Privasia said the project was awarded by Melaka ICT Holdings Sdn Bhd (MICTH), a state-owned enterprise that provides ICT services, solutions and products to assist the state government in empowering Malacca as a key centre of excellence in the ICT sector.

The project is expected to be completed by September 2012, it said.



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Country View 1Q profit up 8-fold

KUALA LUMPUR (April 25) : COUNTRY VIEW BHD [], a real estate developer, posted an almost eight-fold increase in first quarter net profit from a year earlier on higher property sales.

In a statement to the exchange on Wednesday, Country View said net profit came to RM5.95 million versus RM761,000 previously as revenue almost tripled to RM37.87 million from RM14.2 million.

“Barring unforeseen circumstances, the group expects its performance for the financial year ending November 30, 2012 to improve further,” Country View said.

The company said this is in anticipation of revenue and profit recognition from the sale of its property development projects in Johor.



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DiGiTel to undertake capital distribution of RM495m to DiGi.Com

KUALA LUMPUR (APRIL 25): DIGI.COM BHD []’s wholly owned unit DiGi Telecommunications Sdn Bhd (DiGiTel) will undertake a capital distribution of about RM495 million to DiGi on the basis of cash repayment of 99 sen for every one existing share of RM1 each in DiGiTel.

In a filing to Bursa Securities on behalf of DiGi on Wednesday, Hong Leong Investment Bank Bhd said the capital distribution was to be implemented via a reduction of the issued and paid-up share capital of DiGiTel pursuant to Section 64 of the Companies Act 1965.

“Upon receipt of the cash proceeds from DiGiTel, DiGi expects to distribute approximately RM495 million (less expenses) representing 64 sen per share to its shareholders,” it said.

The investment bank said DiGi intended to distribute the excess proceeds to its shareholders whose names appear in the Record of Depositors of the Company on an entitlement date, and in such manner, to be determined and announced later.

“The proposed capital distribution is subject to, amongst others, the order of the High Court of Malaya confirming the proposed capital distribution and consents from lender banks and creditors of DiGiTel, if necessary.

“Barring any unforeseen circumstances, DiGi is expected to complete the distribution by the first quarter of 2013,” it said.

The capital management initiative is undertaken by DiGi and its subsidiary to reward shareholders for their continuous support of DiGi, it said.



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KLCI dips to below 1,580-level, blue chips drag

KUALA LUMPUR (April 25): The FBM KLCI closed below the 1,580-point level on Wednesday, reversing its gains earlier in the morning session, weighed by losses including Genting, Tenaga, CIMB, KLK and Petronas Dagangan.

The index fell 2.93 points to 1,579.35.

Market breadth was weak with 405 losers, 315 gainers and 346 counters trading unchanged. Volume was 1.47 billion shares valued at RM1.53 billion.

Meanwhile, global shares rose on Wednesday ahead of the U.S. Federal Reserve's policy meeting, due mainly to signs of good demand for euro zone sovereign debt before a German bond sale, and some strong corporate earnings, according to Reuters.

Markets could take their cues from several planned public speeches by European Central Bank officials, which will be scrutinised for any signs it would consider more liquidity operations if the euro zone's problems worsened, it said.

At the regional markets, Japan’s Nikkei 225 rose 0.98% to 9,561.01, Taiwan’s Taiex added 0.86% to 7,563.18, and the Shanghai Composite Index gained 0.75% to 2,406.81 and Singapore’s Straits Times Index added 0.20% to 2,980.19.

Meanwhile, Hong Kong’s Hang Seng Index lost 0.15 % to 20,646.29 and South Korea’s Kospi shed 0.07% to 1,961.98.

Among the decliners on Bursa Malaysia, BAT fell 28 sen to RM55.12, KLK and TH PLANTATION []s lost 16 sen each to RM23.82 and RM2.65, CSL down 15 sen to RM1.48, UMS 14 sen to RM1.66, Yeo Hiap Seng 13 sen to RM2.88, Toyo Ink, Tanjung Offshore and MMC Corp down 12 sen each to RM1.36, 78 sen and RM2.62 respectively, while Quality Concrete lost 11 sen to RM1.24.

Utopia was the most actively traded counter with 186.1 million shares done. The stock added one sen to 9.5 sen.

Other actives included Ariantec, Ramunia, CSL, Metronic, Astral Supreme, HWGB and JCY.

Meanwhile, the gainers included Panasonic, UMWE, The Store, NSOP, SPB, Batu Kawan, Cepco, TDM and Scientex.



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Navis Capital to trigger GO for SEGi today

KUALA LUMPUR: Navis Capital Partners Ltd is expected to increase its stake to over 33% today and make a general offer (GO) for the remaining shares in SEG INTERNATIONAL BHD [] (SEGi).

An executive close to the matter told The Edge Financial Dailyon on Wednesday that Navis Capital would announce the GO at a slight premium over the RM1.71 per share.

Navis Capital had earlier acquired 27.8% stake in SEGi at RM1.71 per share from Cerahsar Sdn Bhd, Segmen Entiti Sdn Bhd, and Datuk Chee Hong Leong.

The source confirmed that SEGI’s major shareholder and managing director Datuk Seri Clement Hii, who holds a 28.4% stake, would remained and not accept the GO.

This morning, 18 million SEGi warrants were traded off market for RM21.78 million or RM1.21 per share.



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AirAsia, MAS fall, focus on share-swap, oil prices

KUALA LUMPUR (April 25) : AIRASIA BHD [] and MALAYSIAN AIRLINE SYSTEM BHD [] (MAS) shares fell against the backdrop of rising crude oil prices, and possibly, on concerns that the share-swap arrangement between both airlines may be reversed due to opposition from MAS employees.

AirAsia declined as much as 2.3% or eight sen to settle at RM3.33 at lunch break while MAS was down 0.8% to RM1.24 before trading unchanged at midday interval. AirAsia and MAS saw some two million and 600,000 shares done respectively.

AirAsia is the second-largest decliner among the FBM KLCI‘s 30 stocks after diversified group MMC Corp Bhd which fell 3.65% to RM2.64.

Crude oil futures rose as global markets responded positively to improving US corporate earnings and housing sector updates, apart from firm demand for European government bonds.

Crude oil on the New York Mercantile Exchange rose 11 cents to US$103.66 a barrel versus the IntercontinentalExchange’s Brent crude oil which was up 10 cents to US$118.26 a barrel.



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TH Plantations among top decliners on weaker 1Q profit

KUALA LUMPUR (April 25) : TH PLANTATION []s Bhd fell as much 3% to be among major decliners across the exchange on the company’s weaker first quarter (1Q) profits.

Shares of TH Plantations declined nine sen to settle at RM2.72 at lunch break with some 800,000 shares done.

The company said on Tuesday net profit fell 40% to RM13.07 million in the quarter to March 31, 2012 (1QFY12) from RM 21.83 million a year earlier due to higher cost of sales and tax expense. Revenue, however, grew 27% to RM95.05 million from RM75.06 million.

While the 1Q numbers are not expected to augur well for the company’s shares, analysts have, however, directed the spotlight on TH Plantations plan to reward shareholders with a first and final single-tier dividend of 12.5 sen a share for financial year ended December 31, 2011.

“Although the lacklustre 1QFY12 performance would be negative to sentiment, the upcoming ex-date of its 2011 final dividend of 12.5sen/share on May 2,2012 will provide some support to the share price, we believe,” Maybank Investment Bank Bhd analyst Ong Chee Ting wrote in a note.

“We maintain our earnings estimates for now pending further clarification from management,” Ong added. Maybank is maintaining its target price of RM2.75 and “hold” call for TH Plantations shares.



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