REFER TO OLD POST:
Tuesday, December 21, 2010
股市指數 22/12
股市指數
22/12 5:00pm
吉隆坡綜合指數
1515.05 ▲9.87
新加坡海峽時報
3147.64 ▲7.79
香港恆生
23045.20 ▲51.33
台灣加權
8860.49 ▲32.70
東京日經
10346.50 ▼24.05
21/12 隔夜指數
紐約道瓊斯
11533.20 ▲55.03
納斯達克
2667.61 ▲18.05
股市指數
22/12 12:30pm
吉隆坡綜合指數
1509.89 ▲4.71
新加坡海峽時報
3149.91 ▲10.06
香港恆生
23134.00 ▲140.10
台灣加權
8855.18 ▲27.39
東京日經
10378.70 ▲8.12
21/12 隔夜指數
紐約道瓊斯
11533.20 ▲55.03
納斯達克
2667.61 ▲18.05
EXPECT KLCI TO BE 1508, 1518, 1528, 1533 ON 31/12/2010....
NEXT YEAR MARKET--1500--1568 (FIRST HALF)
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last day trading
Indices Last +/-
FBMKLCI 1518.91 -5.43
FBMT100 10116.56 -35.78
FBM70 10897.90 -37.12
Thursday, December 30, 2010
Wednesday, December 29, 2010
理财致富的方法很简单，那就是储蓄，投资，然后耐心的等它开花结果
《李财有方》机会是留给有准备的人
有一位年轻人问我：白手起家是神话吗？
现在的社会还有这样的机会吗？
他觉得自己没有机会了，因为他只是个上班族，除了要应付日常的生活费，还有贷学金和汽车贷款要供，连生活都成问题了，哪里还有发达的机会？
这是现实的问题，很多人都处在相同的困境，但是，如果想要发达，还是要克服这些问题。
理财致富的方法很简单，那就是储蓄，投资，然后耐心的等它开花结果。
首先是储蓄，如果你无法过节俭的生活，你就无法存钱，所以，理财致富的最具本条件就是：节俭。
尤其是开始阶段节俭更为重要，只有培养节俭的生活方式，才会有余钱来储蓄，这是谁也改变不了的事实。你不可能一面过奢侈的生活，一面又有大把的钱可以供储 蓄。
当然，如果你是高薪一族，那又是另外一回事。但是，不是每个人都有机会成为高薪的打工皇帝。
认真储蓄
身为普通的打工一族，如果你想要发达，你就要先存一笔钱，这是最起码的条件。如果你身无分文，就算有大好的机会出现在你眼前，也得白白的让它溜走。
机会是留给有准备的人，只要你是认真的储蓄，你就是在做准备。
存钱的目的是为了等待投资机会的出现!!!
机会出现了就要敢敢的拿出来投资，然后耐心的等它开花结果，成功往往就是这样而来。
机会是留给有准备的人
有一位商人和我分享他的经验，这是发生在1994年的故事。
1993年是个超级的大牛市，股市从年头的650点狂升到年底的 1300点，足足开了一个番。
很可惜，这位商人错过了这次的大牛市，整整的一年，他看着周边的朋友们个个如痴如醉，陶醉在股市中赚钱。
他却尽量的克制，不让自己卷入这场疯狂的股市里， 他默默地储蓄，耐心的等待，等待机会的出现。
1994年初，炙热的股市终于崩盘了，指数从1300点，暴跌到 928点，很多人因此而破产。就在这时候，机会出现了，有一位股友被银行逼仓，被迫把一片 土地出让，开价15万令吉，急售。
机不可失
这位商人见机不可失，马上拿出现款把这片土地给买下来。这片土地上面有一排木屋，商人也不急着把土地发展起来，所以就让原有的租户继续的租下去，就这样的 又过了十二年。
2006年经济蓬勃，土地周边新建了许多新的店屋，他知道机会成熟了，就决定跟着时势把这片土地给发展起来，他找来一位发展商，以合作的方式发展这片土 地。他出土地，发展商负责兴建，一共兴建了4间店屋，双方各拿两间。
结果，他只花了15万令吉就得到了两间完全没有负债的店屋。
今天，有人献价250万令吉要买这两间店屋，但是他并不打算脱售，因为这两间店屋可以给他带来可观的现金流。
节俭上瘾
他告诉我，当年他花15万令吉买这片土地的时候，一辆全新的C款马赛地的价钱是20万令吉。
今天，他的土地已经变成了两间，每年可以为他带来十多万令吉租 金的店屋，他庆幸当年没有用这笔钱去买马赛地。
他应该还会继续的庆幸下去，因为今天他还是用国产车，还是继续的等待投资机会的出现，原来节俭的习惯染上了，要改也改不掉。
李孙耀（作者为大马著名理财专家）
做好准备等机会是没错，不过在等机会的同时，我们也要为我们的资金找个有合理回酬的投资工具，至少要有超过通膨率的回酬率。
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先儲蓄 夠定力才投資
前幾天，有一份大報說要訪問我。有見於它是年輕人版，而不是娛樂版，我便答應了，但只限於筆訪。那位記者問我年輕人應該怎麼去投資，因為手頭的資本不夠。我的回答是：年輕人根本不用投資，因為第一步是儲蓄，第二步才是投資。如果不夠錢，便把錢先儲蓄夠了，才去學人投資。
現代的年輕人一來是太過遲熟，到了20多歲，不是靠家裏，便是想靠政府，很多更是無所事事，一點兒都不獨立。但是，另一方面，他們雖然工作態度不好，但卻一心想不勞而獲，希望提早發達，財政獨立，這實在是累死人的想法。
我再提醒一次，青年人剛出來做事，這是學習的階段，千萬不要過早便去投資，這是一條死路。因為年輕人的心不夠定力，一旦投資了，便會無心工作。但到了30歲左右，經濟有了一定的基礎，定力也足夠了，才去投資，也還不遲。
撰文：周顯
http://ssinvestingchinese.blogspot.com/
有一位年轻人问我：白手起家是神话吗？
现在的社会还有这样的机会吗？
他觉得自己没有机会了，因为他只是个上班族，除了要应付日常的生活费，还有贷学金和汽车贷款要供，连生活都成问题了，哪里还有发达的机会？
这是现实的问题，很多人都处在相同的困境，但是，如果想要发达，还是要克服这些问题。
理财致富的方法很简单，那就是储蓄，投资，然后耐心的等它开花结果。
首先是储蓄，如果你无法过节俭的生活，你就无法存钱，所以，理财致富的最具本条件就是：节俭。
尤其是开始阶段节俭更为重要，只有培养节俭的生活方式，才会有余钱来储蓄，这是谁也改变不了的事实。你不可能一面过奢侈的生活，一面又有大把的钱可以供储 蓄。
当然，如果你是高薪一族，那又是另外一回事。但是，不是每个人都有机会成为高薪的打工皇帝。
认真储蓄
身为普通的打工一族，如果你想要发达，你就要先存一笔钱，这是最起码的条件。如果你身无分文，就算有大好的机会出现在你眼前，也得白白的让它溜走。
机会是留给有准备的人，只要你是认真的储蓄，你就是在做准备。
存钱的目的是为了等待投资机会的出现!!!
机会出现了就要敢敢的拿出来投资，然后耐心的等它开花结果，成功往往就是这样而来。
机会是留给有准备的人
有一位商人和我分享他的经验，这是发生在1994年的故事。
1993年是个超级的大牛市，股市从年头的650点狂升到年底的 1300点，足足开了一个番。
很可惜，这位商人错过了这次的大牛市，整整的一年，他看着周边的朋友们个个如痴如醉，陶醉在股市中赚钱。
他却尽量的克制，不让自己卷入这场疯狂的股市里， 他默默地储蓄，耐心的等待，等待机会的出现。
1994年初，炙热的股市终于崩盘了，指数从1300点，暴跌到 928点，很多人因此而破产。就在这时候，机会出现了，有一位股友被银行逼仓，被迫把一片 土地出让，开价15万令吉，急售。
机不可失
这位商人见机不可失，马上拿出现款把这片土地给买下来。这片土地上面有一排木屋，商人也不急着把土地发展起来，所以就让原有的租户继续的租下去，就这样的 又过了十二年。
2006年经济蓬勃，土地周边新建了许多新的店屋，他知道机会成熟了，就决定跟着时势把这片土地给发展起来，他找来一位发展商，以合作的方式发展这片土 地。他出土地，发展商负责兴建，一共兴建了4间店屋，双方各拿两间。
结果，他只花了15万令吉就得到了两间完全没有负债的店屋。
今天，有人献价250万令吉要买这两间店屋，但是他并不打算脱售，因为这两间店屋可以给他带来可观的现金流。
节俭上瘾
他告诉我，当年他花15万令吉买这片土地的时候，一辆全新的C款马赛地的价钱是20万令吉。
今天，他的土地已经变成了两间，每年可以为他带来十多万令吉租 金的店屋，他庆幸当年没有用这笔钱去买马赛地。
他应该还会继续的庆幸下去，因为今天他还是用国产车，还是继续的等待投资机会的出现，原来节俭的习惯染上了，要改也改不掉。
李孙耀（作者为大马著名理财专家）
做好准备等机会是没错，不过在等机会的同时，我们也要为我们的资金找个有合理回酬的投资工具，至少要有超过通膨率的回酬率。
xxxxxxxxxxxxxx
先儲蓄 夠定力才投資
前幾天，有一份大報說要訪問我。有見於它是年輕人版，而不是娛樂版，我便答應了，但只限於筆訪。那位記者問我年輕人應該怎麼去投資，因為手頭的資本不夠。我的回答是：年輕人根本不用投資，因為第一步是儲蓄，第二步才是投資。如果不夠錢，便把錢先儲蓄夠了，才去學人投資。
現代的年輕人一來是太過遲熟，到了20多歲，不是靠家裏，便是想靠政府，很多更是無所事事，一點兒都不獨立。但是，另一方面，他們雖然工作態度不好，但卻一心想不勞而獲，希望提早發達，財政獨立，這實在是累死人的想法。
我再提醒一次，青年人剛出來做事，這是學習的階段，千萬不要過早便去投資，這是一條死路。因為年輕人的心不夠定力，一旦投資了，便會無心工作。但到了30歲左右，經濟有了一定的基礎，定力也足夠了，才去投資，也還不遲。
撰文：周顯
http://ssinvestingchinese.blogspot.com/
31/12--declared as Malaysia holiday 慶祝大馬隊捧杯 首相：31日列公假
31 Dec 2010--MALAYSIA SHARE MARKET will be closed,while Singapore , HK will be half day. US full day.
慶祝大馬隊捧杯
首相：31日列公假
（吉隆坡29日）首相拿督斯里納吉宣布，為了慶祝我國足球隊奪得鈴木杯東南亞足球錦標賽冠軍，因此定本週五（31日）為全國公共假期。
納吉指出，我國奪得鈴木杯東南亞足球錦標賽冠軍，是全國人的驕傲，並表示此榮耀為國增光。
“這是大馬足球領域中最光榮的一晚，我國足球隊為我國帶來光榮，我們將就此殊榮帶領我國足球隊往更高的領域邁進。”
“這確保我們今晚的光榮非一瞬間，而是大馬足球歷史一個全新的開始。”
他認為，大馬足球今晚的成就，將能為我國年輕的足球隊伍帶來希望，同時他也感謝大馬隊的教練拉惹哥巴，大馬足球協會及所有大馬足球隊支持者。
納吉今晚發出文告，如是指出。
副首相丹斯里慕尤丁也祝賀凱旋的大馬足球隊，並促請他們不要因此而自滿。
他指出，大馬等待此勝利14年，今日終于如願以償，全國上下也為之歡呼，以大馬足球隊感到光榮。
“此勝利證明只要我們有決心要贏，就任何事情都有可能性，這是所有球員、教練和相關官員所付出努力的回報。”
“所有大馬人都感到驕傲、感動，感謝大馬足球隊成功實現大家的期望。”
他也感謝所有大馬足球隊的支持者，特別是彭亨州蘇丹阿末沙，領導大馬隊取得此勝利。
慶祝大馬隊捧杯
首相：31日列公假
（吉隆坡29日）首相拿督斯里納吉宣布，為了慶祝我國足球隊奪得鈴木杯東南亞足球錦標賽冠軍，因此定本週五（31日）為全國公共假期。
納吉指出，我國奪得鈴木杯東南亞足球錦標賽冠軍，是全國人的驕傲，並表示此榮耀為國增光。
“這是大馬足球領域中最光榮的一晚，我國足球隊為我國帶來光榮，我們將就此殊榮帶領我國足球隊往更高的領域邁進。”
“這確保我們今晚的光榮非一瞬間，而是大馬足球歷史一個全新的開始。”
他認為，大馬足球今晚的成就，將能為我國年輕的足球隊伍帶來希望，同時他也感謝大馬隊的教練拉惹哥巴，大馬足球協會及所有大馬足球隊支持者。
納吉今晚發出文告，如是指出。
副首相丹斯里慕尤丁也祝賀凱旋的大馬足球隊，並促請他們不要因此而自滿。
他指出，大馬等待此勝利14年，今日終于如願以償，全國上下也為之歡呼，以大馬足球隊感到光榮。
“此勝利證明只要我們有決心要贏，就任何事情都有可能性，這是所有球員、教練和相關官員所付出努力的回報。”
“所有大馬人都感到驕傲、感動，感謝大馬足球隊成功實現大家的期望。”
他也感謝所有大馬足球隊的支持者，特別是彭亨州蘇丹阿末沙，領導大馬隊取得此勝利。
Monday, December 27, 2010
在无法预测股市的情况下，以“价值”作为买进的原则，是较为可靠的方法。
莫做股市“过动儿”
Posted by ck5354 | Labels: Investment Tips
By 冷眼
去年8月15日，我在这个专栏发表一篇题为“不动如山两年”的文章，劝告股票投资者，握紧他们的股票为期两年，以博取厚利。
当时，大马综合指数为1,100点，15个月后的今天，指数已升至1,500点，那些坚守“不动如山”策略的股友，已取得非常丰厚的盈利。
次贷金融海啸于2009年第一季触底时，大马综合指数约为850点，在回升至1,100点时，许多股票分析师认为经济的复苏不可靠，股市回升得太快，纷纷警告股市将回跌，因此劝告股友套利离场。
我不同意此种看法和做法，因此才提出“不动如山两年”的主张，我认为散户应充份利用复苏机会，赚取厚利，太早离场，错过赚取厚利良机，未免可惜，毕竟金融海啸，恐怕10年也不会再现。
我主张“不动如山”，是我认为这是最适合散户的策略，可以减低风险，而获利最丰。如果散户自作聪明，不断的在股市中抢进杀出，愈买愈高，风险也愈大，所获盈利，未必比“不动如山”更多，倒不如以静待动，坐享其成。
抢进杀出
更重要是抢进杀出，精神受尽焦虑的煎熬，情绪不稳，影响健康、工作效率和家庭生活，所付出的代价太大，即使赚到钱，也是得不偿失，倒不如“不动如山”，安安稳稳赚钱，逍逍遥遥过活。
许多人对股票投资，有一种错误的想法，认为在股市中买卖越活跃，赚钱就越多，动作与盈利成正比。实际上刚好相反，在股市中越活跃，越难赚钱，反而是动作越少的人，赚钱越易，股市“过动儿”赚钱的少之又少。
动作要少
在这一轮的金融海啸中，不少人在谷底时买到股票，但大部份都在股价略为回升时就套利离场，所赚有限，无法弥补熊市中的损失。
在卖出后眼巴巴的看着股价以大涨小回调的形式上升，才为之痛心疾首，徒呼负负。
反而是那些在谷底买进后就紧握股票至今的投资者，取得惊人的回酬，充份说明了动作越少越好，这种做法，表面上看起来是老土，实际上是大智若愚。
在过去一年多中，世界经济发生了几件惊天动地的大事，首先是迪拜的倒账，接着是欧洲债市的濒临崩溃，悲观的经济学家及预言家，纷纷发出了经济“双底”论，认为世界经济将出现W的势。
这些论调，使在次贷金融海啸中惊魂未定的投资者，风声鹤唳，不敢在股市久留，结果错过了赚钱良机。
预言只可参考不能尽信
现在，再也没有人提迪拜事件、欧洲债务危机了。当然也没有人再提“双底”衰退了。我为今旧事重提，难免有事后孔明之讥，实际上，我是要藉以说明两点：
1.是经济学家和股市预言家的预言，失准的次数远多於准确的次数，因此，只可用作参考，切不可尽信。
2.许多事件，其严重性被过份渲染，甚至以偏盖全，误导对经济和股市认识不深的投资者，使他们对将来的趋势，以及前景，作错误诠释，从而作出错误的判断，坐失投资良机。
是的，现在毕竟已事过境迁，多说於事无补，目前大家所关心的是：将来的经济和股市走向如何？投资者该怎样做？当美国道琼斯工业指数回升至11,444点，而大马股市指数突破1,500点时，投资者是否应继续留在股市？手中没有股票的人该不该进场？
我的主张是：
1.手中已有股票的，应“不动如山一年”，一年以后审时度势再行决定去留。
2.手中没有股票的，应把重点转移至第2线股价尚未大幅度窜升，而价值仍被低估的股票，买进后紧握不放，等待牛市的出现。
股市难测
我没有预测股市动向的能力，也不认为任何人有这种能力，因为股市是不可预测的。无数的人企图采用各种的“工具”，预测股市动向，成功的巴仙率低之又低。
通常股市分析师都言之有理，问题是股市根本是不可理喻，因此一切的预言，不妨作为参考，切忌全盘照收。在这种情形之下，我们根据什么进行投资？
答案是：根据股票的价值。
在买进的时候，一定要作好心理准备：我们是认为一个牛市正在浮现，但是，万一我们的预测失准，那么，我们现在所买进的股票，是否物有所值？是否有前途？
反败为胜
如果买价合理，而公司前途亮丽，盈利会持续上升。
那么，即使股市逆转，股价回调，我们所买的股票价值与日俱增，暂时蒙受亏损，将来仍有机会回升，仍有机会反败为胜。
如果听信似是而非的传言买进劣股的话，一旦股市逆转，股价暴跌后，因公司蒙受亏蚀而使股价长期不振，投资者就没翻身机会了。
在无法预测股市的情况下，以“价值”作为买进的原则，是较为可靠的方法。
在买进时，一定要问自己：万一股价暴跌，我有胆识买进更多同一只股票吗？
如果答案是“是”的话，则不妨买进，如果是“否”的话，则最好不要买进。不敢在股价暴跌后买进更多同一只股票，说明了你对该股没有信心，而没有信心是因为你认识不够，或是对该股前途没有信心，切勿投资於你认识不够及没有信心的股票，这是股票投资不可妥协的铁则。
不动如山
美国经济复苏的步伐，已更稳健，大马周边国家如印尼、泰国、菲律宾的股市在外资炒作下，屡创新高，外资会移师大马吗？大马利息低沉，游资充沛，原产品龙腾虎跃，产业市场炽热，股市会长期蛰伏不动吗？1993年的牛市会重演吗？
在没有人能斩钉截铁地回答这些问题的情况下，散户最好的避险策略，就是不动如山。不动如山多久？去年8月我提出“不动如山两年”，一年已过去了，我现在建议“不动如山一年”。
建议选股标准：
1.股价合理（本益比10倍以下）
2.盈利有增长（来年盈利可望比往年高）
3.债低，若债高则必须现金流平稳。
4.周息率高於银行定存利息。
5.行业景气走上坡。
XXXXXXXXXXXXXx
Keep Investing Simple and Safe
When is the best time to buy share?
Anytime really. You should track a list of high quality stocks.
Buy when the stock is selling at a bargain price, that is, when the risk of losing your capital is low or negligible and the return substantially higher. The good investors aim for high returns with minimal risk taking.
Is there a time when you should not be buying any stocks?
1. Generally, when the market is trading at a high valuation. There is always another time to buy the stock. Be patient.
2. However, if you are not knowledgeable in stock selection (QVM) and money management, you should not be investing directly in the stock market. You are better buying a mutual fund when the market is trading at low valuation or to park your fund with a personal fund manager. The stock market is a dangerous place for the uninitiated.
3. Avoid investing money in the stock if the money you invested may be needed urgently anytime or in a short time. Investing in the market should be for the longer term. There is too much uncertainties in the returns over a short time frame.
Is now a good time to buy stocks?
Anytime is a good time to buy stock.
Rather than timing the market, one should buy or sell base on the price of the stock offered by the market.
Even in the peak of the bull market, one can pick up some bargains. Of course, in the depth of a bear market, there are many good stocks selling at very low prices.
Is buy and hold, a safe strategy?
The recent severe downturn in the market brought this strategy into question once again. It is very safe for those who employs this strategy using certain criterias. It is safe for selected stocks.
These stocks should be of the highest quality (QVM). These stocks should be bought at a bargain price with a margin of safety.
The only time you may have to sell the stock urgently is when there is a fundamental deterioration in the business of the company. Other than this, you have the leisure of selling.
The market is cyclical. The bull-bear-bull-bear cycles ensure that the bull will always follows a bear and vice-versa.
Here are a selection of Malaysian stocks that have stood the test of time over at least 3 severe bear markets: Nestle, DLady, Petdag, Guinness, Petgas, PBB, PPB, Resorts.
There are also others too. At certain short period of time, each of these stocks may underperform but if assessed over a longer period of time, the returns have ALL been positive.
By minimising the downside and aiming only for modest returns, investing can be surprisingly rewarding for a large number of investors and with little effort.
How to maximise returns?
1. First, ensure that there is safety of your capital. Remember not to lose your capital. By ensuring that you do not lose money and aiming for moderate returns, you can maximise total returns too with low risk. Don't be greedy for high returns by taking unnecessarily high risks.
2. Stick to the few high quality stocks you are familiar with. This is the circle of competence mentioned by Buffett. Stay within your circle of competence and never, never, never, never, get out of this circle. :-) If your circle of competence is only 6 stocks, stick to these 6 stocks.
3. Only buy high quality stocks at bargain price. At a certain price, the stock is a bargain and at another price, it is trading at a fair price. Never, never, never buy these high quality stocks when it is trading at high price. By buying these good quality stocks at a bargain price, one is buying with a margin of safety to minimise loss to your capital in the event you got it wrong. At the same time, if the event turned out to be as you expected, your return will be greater.
4. Also do not over-diversify. According to Buffett, adding the 7th stock into your portfolio reduces the overall return of your portfolio. Bet big if you are very certain of your selection.
5. Allow the wonder of compounding to grow your return over a long period of time.
Investing can be very safe. Keep it simple and safe. (K.I.S.S.)
Posted by ck5354 | Labels: Investment Tips
By 冷眼
去年8月15日，我在这个专栏发表一篇题为“不动如山两年”的文章，劝告股票投资者，握紧他们的股票为期两年，以博取厚利。
当时，大马综合指数为1,100点，15个月后的今天，指数已升至1,500点，那些坚守“不动如山”策略的股友，已取得非常丰厚的盈利。
次贷金融海啸于2009年第一季触底时，大马综合指数约为850点，在回升至1,100点时，许多股票分析师认为经济的复苏不可靠，股市回升得太快，纷纷警告股市将回跌，因此劝告股友套利离场。
我不同意此种看法和做法，因此才提出“不动如山两年”的主张，我认为散户应充份利用复苏机会，赚取厚利，太早离场，错过赚取厚利良机，未免可惜，毕竟金融海啸，恐怕10年也不会再现。
我主张“不动如山”，是我认为这是最适合散户的策略，可以减低风险，而获利最丰。如果散户自作聪明，不断的在股市中抢进杀出，愈买愈高，风险也愈大，所获盈利，未必比“不动如山”更多，倒不如以静待动，坐享其成。
抢进杀出
更重要是抢进杀出，精神受尽焦虑的煎熬，情绪不稳，影响健康、工作效率和家庭生活，所付出的代价太大，即使赚到钱，也是得不偿失，倒不如“不动如山”，安安稳稳赚钱，逍逍遥遥过活。
许多人对股票投资，有一种错误的想法，认为在股市中买卖越活跃，赚钱就越多，动作与盈利成正比。实际上刚好相反，在股市中越活跃，越难赚钱，反而是动作越少的人，赚钱越易，股市“过动儿”赚钱的少之又少。
动作要少
在这一轮的金融海啸中，不少人在谷底时买到股票，但大部份都在股价略为回升时就套利离场，所赚有限，无法弥补熊市中的损失。
在卖出后眼巴巴的看着股价以大涨小回调的形式上升，才为之痛心疾首，徒呼负负。
反而是那些在谷底买进后就紧握股票至今的投资者，取得惊人的回酬，充份说明了动作越少越好，这种做法，表面上看起来是老土，实际上是大智若愚。
在过去一年多中，世界经济发生了几件惊天动地的大事，首先是迪拜的倒账，接着是欧洲债市的濒临崩溃，悲观的经济学家及预言家，纷纷发出了经济“双底”论，认为世界经济将出现W的势。
这些论调，使在次贷金融海啸中惊魂未定的投资者，风声鹤唳，不敢在股市久留，结果错过了赚钱良机。
预言只可参考不能尽信
现在，再也没有人提迪拜事件、欧洲债务危机了。当然也没有人再提“双底”衰退了。我为今旧事重提，难免有事后孔明之讥，实际上，我是要藉以说明两点：
1.是经济学家和股市预言家的预言，失准的次数远多於准确的次数，因此，只可用作参考，切不可尽信。
2.许多事件，其严重性被过份渲染，甚至以偏盖全，误导对经济和股市认识不深的投资者，使他们对将来的趋势，以及前景，作错误诠释，从而作出错误的判断，坐失投资良机。
是的，现在毕竟已事过境迁，多说於事无补，目前大家所关心的是：将来的经济和股市走向如何？投资者该怎样做？当美国道琼斯工业指数回升至11,444点，而大马股市指数突破1,500点时，投资者是否应继续留在股市？手中没有股票的人该不该进场？
我的主张是：
1.手中已有股票的，应“不动如山一年”，一年以后审时度势再行决定去留。
2.手中没有股票的，应把重点转移至第2线股价尚未大幅度窜升，而价值仍被低估的股票，买进后紧握不放，等待牛市的出现。
股市难测
我没有预测股市动向的能力，也不认为任何人有这种能力，因为股市是不可预测的。无数的人企图采用各种的“工具”，预测股市动向，成功的巴仙率低之又低。
通常股市分析师都言之有理，问题是股市根本是不可理喻，因此一切的预言，不妨作为参考，切忌全盘照收。在这种情形之下，我们根据什么进行投资？
答案是：根据股票的价值。
在买进的时候，一定要作好心理准备：我们是认为一个牛市正在浮现，但是，万一我们的预测失准，那么，我们现在所买进的股票，是否物有所值？是否有前途？
反败为胜
如果买价合理，而公司前途亮丽，盈利会持续上升。
那么，即使股市逆转，股价回调，我们所买的股票价值与日俱增，暂时蒙受亏损，将来仍有机会回升，仍有机会反败为胜。
如果听信似是而非的传言买进劣股的话，一旦股市逆转，股价暴跌后，因公司蒙受亏蚀而使股价长期不振，投资者就没翻身机会了。
在无法预测股市的情况下，以“价值”作为买进的原则，是较为可靠的方法。
在买进时，一定要问自己：万一股价暴跌，我有胆识买进更多同一只股票吗？
如果答案是“是”的话，则不妨买进，如果是“否”的话，则最好不要买进。不敢在股价暴跌后买进更多同一只股票，说明了你对该股没有信心，而没有信心是因为你认识不够，或是对该股前途没有信心，切勿投资於你认识不够及没有信心的股票，这是股票投资不可妥协的铁则。
不动如山
美国经济复苏的步伐，已更稳健，大马周边国家如印尼、泰国、菲律宾的股市在外资炒作下，屡创新高，外资会移师大马吗？大马利息低沉，游资充沛，原产品龙腾虎跃，产业市场炽热，股市会长期蛰伏不动吗？1993年的牛市会重演吗？
在没有人能斩钉截铁地回答这些问题的情况下，散户最好的避险策略，就是不动如山。不动如山多久？去年8月我提出“不动如山两年”，一年已过去了，我现在建议“不动如山一年”。
建议选股标准：
1.股价合理（本益比10倍以下）
2.盈利有增长（来年盈利可望比往年高）
3.债低，若债高则必须现金流平稳。
4.周息率高於银行定存利息。
5.行业景气走上坡。
XXXXXXXXXXXXXx
Keep Investing Simple and Safe
When is the best time to buy share?
Anytime really. You should track a list of high quality stocks.
Buy when the stock is selling at a bargain price, that is, when the risk of losing your capital is low or negligible and the return substantially higher. The good investors aim for high returns with minimal risk taking.
Is there a time when you should not be buying any stocks?
1. Generally, when the market is trading at a high valuation. There is always another time to buy the stock. Be patient.
2. However, if you are not knowledgeable in stock selection (QVM) and money management, you should not be investing directly in the stock market. You are better buying a mutual fund when the market is trading at low valuation or to park your fund with a personal fund manager. The stock market is a dangerous place for the uninitiated.
3. Avoid investing money in the stock if the money you invested may be needed urgently anytime or in a short time. Investing in the market should be for the longer term. There is too much uncertainties in the returns over a short time frame.
Is now a good time to buy stocks?
Anytime is a good time to buy stock.
Rather than timing the market, one should buy or sell base on the price of the stock offered by the market.
Even in the peak of the bull market, one can pick up some bargains. Of course, in the depth of a bear market, there are many good stocks selling at very low prices.
Is buy and hold, a safe strategy?
The recent severe downturn in the market brought this strategy into question once again. It is very safe for those who employs this strategy using certain criterias. It is safe for selected stocks.
These stocks should be of the highest quality (QVM). These stocks should be bought at a bargain price with a margin of safety.
The only time you may have to sell the stock urgently is when there is a fundamental deterioration in the business of the company. Other than this, you have the leisure of selling.
The market is cyclical. The bull-bear-bull-bear cycles ensure that the bull will always follows a bear and vice-versa.
Here are a selection of Malaysian stocks that have stood the test of time over at least 3 severe bear markets: Nestle, DLady, Petdag, Guinness, Petgas, PBB, PPB, Resorts.
There are also others too. At certain short period of time, each of these stocks may underperform but if assessed over a longer period of time, the returns have ALL been positive.
By minimising the downside and aiming only for modest returns, investing can be surprisingly rewarding for a large number of investors and with little effort.
How to maximise returns?
1. First, ensure that there is safety of your capital. Remember not to lose your capital. By ensuring that you do not lose money and aiming for moderate returns, you can maximise total returns too with low risk. Don't be greedy for high returns by taking unnecessarily high risks.
2. Stick to the few high quality stocks you are familiar with. This is the circle of competence mentioned by Buffett. Stay within your circle of competence and never, never, never, never, get out of this circle. :-) If your circle of competence is only 6 stocks, stick to these 6 stocks.
3. Only buy high quality stocks at bargain price. At a certain price, the stock is a bargain and at another price, it is trading at a fair price. Never, never, never buy these high quality stocks when it is trading at high price. By buying these good quality stocks at a bargain price, one is buying with a margin of safety to minimise loss to your capital in the event you got it wrong. At the same time, if the event turned out to be as you expected, your return will be greater.
4. Also do not over-diversify. According to Buffett, adding the 7th stock into your portfolio reduces the overall return of your portfolio. Bet big if you are very certain of your selection.
5. Allow the wonder of compounding to grow your return over a long period of time.
Investing can be very safe. Keep it simple and safe. (K.I.S.S.)
Sunday, December 26, 2010
Buy CNY foodstuff early...................price up, up, up...........up to sky
By RACHAEL KAM
rachael@thestar.com.my
PETALING JAYA: Shopkeepers in the country have started selling food items synonymous with the Chinese New Year early – to help Malaysians avoid an expected price hike brought about by the appreciating Chinese currency, the yuan.
However, retailers of locally produced food items for the Lunar New Year said the prices of these items will remain the same.
Federation of Sundry Goods Merchants’ Association president Lean Hing Chuan said many of the products were Chinese New Year speciality food items and prices would go up by up to 20% when new consignments arrive in the country next month.
Cheap for now: China products, particularly Chinese New Year speciality food items, are expected to increase by 20% next month.
Chinese New Year falls on Feb 3.
Mega Grade Sdn Bhd main office manager Raymond Low said the company’s two mini markets were still selling at the “old price” and most were at a promotional price.
“We are selling Chinese mushrooms at RM50 per kilogramme now. However, the price will be increased to RM70 next month when new stocks arrive,” he said.
Low said new pricing for the goods would depend on how much the suppliers raised the price, but local preserved meat should retail at old prices.
Lean said the products affected by the price increase included abalone, mushrooms, dried scallops, preserved meat and seafood as well as mandarin oranges.
“Traders have no choice but to increase their prices to cope with the escalating import cost,” he said.
Lean said traders were expecting consumers to buy less of the imported items as a result of the price hike.
He said the association members had placed smaller orders with their foreign suppliers as they anticipated lower demand.
Citing mandarin oranges as an example, he said these would cost from RM12 per box compared with RM7 early this year.
He said the price of Chinese dried mushroom would increase from the current RM24 per kilo to RM32, while the higher quality variety would be sold for RM70 per kilo, up RM10.
Some of the speciality items for the Lunar New Year were also imported from other countries and costs in these countries had also increased.
“Generally, for a can of abalone imported from Mexico, the price will increase about RM30 to RM230. A can of abalone from South Africa will increase from RM120 to RM140.
“The price of abalone imported from Australia will increase from the current RM70 to RM90 next month,” he said.
Lean said a kilo of dried scallops was expected to cost RM200, up RM20, while the price of bigger ones would increase to RM320 from the current RM300.
He advised consumers to buy the food items early before the arrival of the new batch to save cost.
rachael@thestar.com.my
PETALING JAYA: Shopkeepers in the country have started selling food items synonymous with the Chinese New Year early – to help Malaysians avoid an expected price hike brought about by the appreciating Chinese currency, the yuan.
However, retailers of locally produced food items for the Lunar New Year said the prices of these items will remain the same.
Federation of Sundry Goods Merchants’ Association president Lean Hing Chuan said many of the products were Chinese New Year speciality food items and prices would go up by up to 20% when new consignments arrive in the country next month.
Cheap for now: China products, particularly Chinese New Year speciality food items, are expected to increase by 20% next month.
Chinese New Year falls on Feb 3.
Mega Grade Sdn Bhd main office manager Raymond Low said the company’s two mini markets were still selling at the “old price” and most were at a promotional price.
“We are selling Chinese mushrooms at RM50 per kilogramme now. However, the price will be increased to RM70 next month when new stocks arrive,” he said.
Low said new pricing for the goods would depend on how much the suppliers raised the price, but local preserved meat should retail at old prices.
Lean said the products affected by the price increase included abalone, mushrooms, dried scallops, preserved meat and seafood as well as mandarin oranges.
“Traders have no choice but to increase their prices to cope with the escalating import cost,” he said.
Lean said traders were expecting consumers to buy less of the imported items as a result of the price hike.
He said the association members had placed smaller orders with their foreign suppliers as they anticipated lower demand.
Citing mandarin oranges as an example, he said these would cost from RM12 per box compared with RM7 early this year.
He said the price of Chinese dried mushroom would increase from the current RM24 per kilo to RM32, while the higher quality variety would be sold for RM70 per kilo, up RM10.
Some of the speciality items for the Lunar New Year were also imported from other countries and costs in these countries had also increased.
“Generally, for a can of abalone imported from Mexico, the price will increase about RM30 to RM230. A can of abalone from South Africa will increase from RM120 to RM140.
“The price of abalone imported from Australia will increase from the current RM70 to RM90 next month,” he said.
Lean said a kilo of dried scallops was expected to cost RM200, up RM20, while the price of bigger ones would increase to RM320 from the current RM300.
He advised consumers to buy the food items early before the arrival of the new batch to save cost.
another kind of blood sucker?
Insist on itemised billing at private hospitals
THE private healthcare industry in this country is a very lucrative business.
As it is a business entity, its core aim is to make money. Many complaints have been made on how these entities charge for their services.
It is not disputed that there are multiple costs in running a hospital. However, this has been exploited by the management of these facilities to get huge returns.
The most common areas where the mark-up is significant are in the medication and lab investigations/diagnostics (x-ray, scan, etc).
There is sometimes a five-fold increase in medicine prices at private hospitals compared to pharmacies outside.
The hospital management is clever in disguising this cost by lumping all the medication in a single statement in the bill, for example as pharmaceuticals/disposables.
Some private hospitals charge a so-called dispensing fee which means that this fee is meant for the pharmacy assistant just to take the medicine from the counter and pass it to you.
The lab investigations is another area where there is gross increase in charges. This is more so after office hours or on public holidays.
The same amount of reagent/materials is used for running the blood sample during office hours; the only extra factor is the labour charge.
Always insist on itemised billing when you frequent private hospitals. Then you will realise who really makes the money.
EXPENSIVE MEDICINE,
Kuala Lumpur.
THE private healthcare industry in this country is a very lucrative business.
As it is a business entity, its core aim is to make money. Many complaints have been made on how these entities charge for their services.
It is not disputed that there are multiple costs in running a hospital. However, this has been exploited by the management of these facilities to get huge returns.
The most common areas where the mark-up is significant are in the medication and lab investigations/diagnostics (x-ray, scan, etc).
There is sometimes a five-fold increase in medicine prices at private hospitals compared to pharmacies outside.
The hospital management is clever in disguising this cost by lumping all the medication in a single statement in the bill, for example as pharmaceuticals/disposables.
Some private hospitals charge a so-called dispensing fee which means that this fee is meant for the pharmacy assistant just to take the medicine from the counter and pass it to you.
The lab investigations is another area where there is gross increase in charges. This is more so after office hours or on public holidays.
The same amount of reagent/materials is used for running the blood sample during office hours; the only extra factor is the labour charge.
Always insist on itemised billing when you frequent private hospitals. Then you will realise who really makes the money.
EXPENSIVE MEDICINE,
Kuala Lumpur.
BERNAS国家稻米大起。。。。。与中国将大量购买粮食有关？？？
路透新加坡12月26日电---中国央行选择上调存贷款基准利率的时机出人意料,有可能令大宗商品市场周一开盘时走势承压.
中国央行在圣诞节(周六)宣布上调一年期人民币存贷款基准利率各25个基点,为年内第二次加息,(copy)以对抗明年初较高的通胀,以及目前严重的负利率情况.
对大宗商品而言,年底前套现处于或接近数年高位价格的这个时机可能意味着,此次的价格修正幅度会大于前次10月加息之後的跌势.
虽然市场之前就预计中国会加息,但部分投资者原以为2010年内中国已来不及采取行动.中国大宗商品市场周一可能会测试跌停水准.
"这当然不意味着大宗商品市场繁荣或中国经济强劲题材的结束.这次加息时机巧妙,市场可能毫无戒备."澳新银行资深商品分析师Mark Pervan说,"这可能给年底前了结获利带来了一些激励因素,而且提供了逢低买入的机会."
美国原油期货上周收于每桶91美元上方的两年高位,芝加哥大豆期货飙升至27个月高点,伦敦金属交易所(LME)期铜徘徊在历史高位附近.
一些分析师说,市场可能会在低开後反弹甚至是触及新高,因为此次加息举措温和,且整体而言实质存款利率仍是负值.金源期货分析师顾建军表示,货币供应的收紧力度并不足够.
西方市场,如芝加哥玉米期货和大豆期货的走势可能会尤其振荡,因假期因素造成的清淡交投将令其对中国加息的反应被放大.
当中国上次在10月中旬加息後,美元走强,拖累黄金下跌超过2%,油价大跌4%,铜价下滑近2.5%,小麦和玉米分别挫低2.7%和2%.
尽管如此且其他政策收紧举措亦造成动荡,但对大宗商品的冲高势头基本上并没有造成阻碍.
中国是全球铜,铁矿石,煤炭,棉花,大豆等大宗商品的最大消费国,也是玉米,黄金和原油的第二大消费国.
路透-Jefferies商品研究局指数(CRB)下挫近2%,该指数追踪19类大宗商品.
中国利率与通胀率变动相关图表,请点选(here)
中国利率与商品价格变动相关图表,请点选(here)
"央行此举有点出人意料,但应会受到市场欢迎.中国央行在2010年底前加息,这意味着2011年初升息的可能性会减小,"北京宏源证券分析师何一峰指出."我预料央行不会在3月底前再度加息."
分析师称,在市场作出最初的反应之後,此举可能将证明是利好举措,再度证实了中国11月发出的讯息,即倘有必要会采取措施遏制通胀和控制物价.
分析师认为,与此同时中国计划在全球市场大举采购众多大宗商品,尤其是粮食,令2011年商品市场前景看涨.
"此举将对近期回升的农产品价格有抑制作用,但我们相信,其打压作用是短暂的,不会改变商品市场的上涨趋势,尤其是大豆市场将受到主要产区南美乾旱的支撑,且目前也是中国消费旺季."东吴期货分析师王平指出.
中国今年已释出很多农产品库存,以平抑被旺盛需求推升的价格.很多商品,尤其是玉米,白糖和棉花价格飙升至历史新高.
分析师相信,由于耕地有限和需求上升,中国政府为保证实现稻米,小麦和玉米等粮食自给自足的目标,可能不得不进口其他竞争种植面积的农产品,如大豆,棉花和糖.
http://cn.reuters.com/article/CNAnalysesNews/idCNCHINA-3558020101227
中国央行在圣诞节(周六)宣布上调一年期人民币存贷款基准利率各25个基点,为年内第二次加息,(copy)以对抗明年初较高的通胀,以及目前严重的负利率情况.
对大宗商品而言,年底前套现处于或接近数年高位价格的这个时机可能意味着,此次的价格修正幅度会大于前次10月加息之後的跌势.
虽然市场之前就预计中国会加息,但部分投资者原以为2010年内中国已来不及采取行动.中国大宗商品市场周一可能会测试跌停水准.
"这当然不意味着大宗商品市场繁荣或中国经济强劲题材的结束.这次加息时机巧妙,市场可能毫无戒备."澳新银行资深商品分析师Mark Pervan说,"这可能给年底前了结获利带来了一些激励因素,而且提供了逢低买入的机会."
美国原油期货上周收于每桶91美元上方的两年高位,芝加哥大豆期货飙升至27个月高点,伦敦金属交易所(LME)期铜徘徊在历史高位附近.
一些分析师说,市场可能会在低开後反弹甚至是触及新高,因为此次加息举措温和,且整体而言实质存款利率仍是负值.金源期货分析师顾建军表示,货币供应的收紧力度并不足够.
西方市场,如芝加哥玉米期货和大豆期货的走势可能会尤其振荡,因假期因素造成的清淡交投将令其对中国加息的反应被放大.
当中国上次在10月中旬加息後,美元走强,拖累黄金下跌超过2%,油价大跌4%,铜价下滑近2.5%,小麦和玉米分别挫低2.7%和2%.
尽管如此且其他政策收紧举措亦造成动荡,但对大宗商品的冲高势头基本上并没有造成阻碍.
中国是全球铜,铁矿石,煤炭,棉花,大豆等大宗商品的最大消费国,也是玉米,黄金和原油的第二大消费国.
路透-Jefferies商品研究局指数(CRB)下挫近2%,该指数追踪19类大宗商品.
中国利率与通胀率变动相关图表,请点选(here)
中国利率与商品价格变动相关图表,请点选(here)
"央行此举有点出人意料,但应会受到市场欢迎.中国央行在2010年底前加息,这意味着2011年初升息的可能性会减小,"北京宏源证券分析师何一峰指出."我预料央行不会在3月底前再度加息."
分析师称,在市场作出最初的反应之後,此举可能将证明是利好举措,再度证实了中国11月发出的讯息,即倘有必要会采取措施遏制通胀和控制物价.
分析师认为,与此同时中国计划在全球市场大举采购众多大宗商品,尤其是粮食,令2011年商品市场前景看涨.
"此举将对近期回升的农产品价格有抑制作用,但我们相信,其打压作用是短暂的,不会改变商品市场的上涨趋势,尤其是大豆市场将受到主要产区南美乾旱的支撑,且目前也是中国消费旺季."东吴期货分析师王平指出.
中国今年已释出很多农产品库存,以平抑被旺盛需求推升的价格.很多商品,尤其是玉米,白糖和棉花价格飙升至历史新高.
分析师相信,由于耕地有限和需求上升,中国政府为保证实现稻米,小麦和玉米等粮食自给自足的目标,可能不得不进口其他竞争种植面积的农产品,如大豆,棉花和糖.
http://cn.reuters.com/article/CNAnalysesNews/idCNCHINA-3558020101227
China's government will be able to keep inflation in check, Premier Wen Jiabao said on Sunday, a day after the central bank raised interest rates.....
(Reuters) - China's government will be able to keep inflation in check, Premier Wen Jiabao said on Sunday, a day after the central bank raised interest rates, and he pledged to speed up efforts to rein in house price surges.
Steps taken in the past month, including administrative controls to curb speculation and monetary tightening, had started to produce results, Wen said.
The People's Bank of China raised interest rates on Christmas Day for a second time in just over two months as Beijing strengthened its battle against stubbornly high inflation.
Analysts said the latest rise showed that measures such as increasing banks' required reserve requirements to rein in liquidity were not enough on their own, and that the Chinese authorities were determined to keep inflation under control.
"We have raised reserve requirement ratio for six consecutive times and increased interest rates twice to absorb excess liquidity in the market to keep it at a reasonable level to support economic development," Wen said in a state radio broadcast a day after the rate rise.
"I believe we can keep prices at a reasonable level through our efforts. As a major leader of the government, I have the responsibility and I have the confidence, too," he said in remarks published on www.cnr.cn.
The rate rise came after Beijing said earlier in December it was switching to a "prudent" monetary policy, from its earlier "moderately loose" stance.
"The rate rise shows China is quickening its pace to normalize monetary policies," said Ba Shusong, a senior economist with the Development Research Center, under the State Council, the country's cabinet.
"The front-loaded tightening, before the peak of consumer inflation in the first half of 2011, is helpful to curb inflationary expectations," Ba was quoted as saying on the financial website www.caing.com.
AHEAD OF THE CURVE
Chinese authorities have repeatedly stressed the importance of staying ahead of the curve in the battle against inflation.
"Inflationary expectation is worse than inflation itself," Wen said in the radio broadcast.
"When there is inflation, we must establish confidence, know our vantage points and take forceful and decisive measures in a timely manner to curb price rises."
The central bank said on Friday it would deploy a range of measures to head off inflationary pressures and asset bubbles.
China also intensified its property tightening measures in April and September in an attempt to brake soaring property prices.
"Until now, the measures are not implemented well enough, and we will reinforce our efforts in two ways," Wen said.
The government plans to build 10 million units of affordable housing in 2011, up from this year's target of 5.8 million.
China will also increase efforts to curb speculation in the real estate market, mainly through monetary policies and stricter use of land, Wen said, without giving details.
Property transactions as well as land costs, a major contributor to high housing prices, have shown signs of a rebound in recent weeks, triggering concerns of more tightening.
Despite all the challenges, Wen said: "I believe property prices will return to reasonable levels through our efforts. I have the confidence."
Chinese stock markets have shed nearly 10 percent since mid-November on concerns the government would ratchet up its monetary policy tightening in the face of rising inflation.
However, analysts suggested China's share market could push higher on Monday on optimism about the overall outlook for shares in 2011.
(Editing by Robert Birsel)
Steps taken in the past month, including administrative controls to curb speculation and monetary tightening, had started to produce results, Wen said.
The People's Bank of China raised interest rates on Christmas Day for a second time in just over two months as Beijing strengthened its battle against stubbornly high inflation.
Analysts said the latest rise showed that measures such as increasing banks' required reserve requirements to rein in liquidity were not enough on their own, and that the Chinese authorities were determined to keep inflation under control.
"We have raised reserve requirement ratio for six consecutive times and increased interest rates twice to absorb excess liquidity in the market to keep it at a reasonable level to support economic development," Wen said in a state radio broadcast a day after the rate rise.
"I believe we can keep prices at a reasonable level through our efforts. As a major leader of the government, I have the responsibility and I have the confidence, too," he said in remarks published on www.cnr.cn.
The rate rise came after Beijing said earlier in December it was switching to a "prudent" monetary policy, from its earlier "moderately loose" stance.
"The rate rise shows China is quickening its pace to normalize monetary policies," said Ba Shusong, a senior economist with the Development Research Center, under the State Council, the country's cabinet.
"The front-loaded tightening, before the peak of consumer inflation in the first half of 2011, is helpful to curb inflationary expectations," Ba was quoted as saying on the financial website www.caing.com.
AHEAD OF THE CURVE
Chinese authorities have repeatedly stressed the importance of staying ahead of the curve in the battle against inflation.
"Inflationary expectation is worse than inflation itself," Wen said in the radio broadcast.
"When there is inflation, we must establish confidence, know our vantage points and take forceful and decisive measures in a timely manner to curb price rises."
The central bank said on Friday it would deploy a range of measures to head off inflationary pressures and asset bubbles.
China also intensified its property tightening measures in April and September in an attempt to brake soaring property prices.
"Until now, the measures are not implemented well enough, and we will reinforce our efforts in two ways," Wen said.
The government plans to build 10 million units of affordable housing in 2011, up from this year's target of 5.8 million.
China will also increase efforts to curb speculation in the real estate market, mainly through monetary policies and stricter use of land, Wen said, without giving details.
Property transactions as well as land costs, a major contributor to high housing prices, have shown signs of a rebound in recent weeks, triggering concerns of more tightening.
Despite all the challenges, Wen said: "I believe property prices will return to reasonable levels through our efforts. I have the confidence."
Chinese stock markets have shed nearly 10 percent since mid-November on concerns the government would ratchet up its monetary policy tightening in the face of rising inflation.
However, analysts suggested China's share market could push higher on Monday on optimism about the overall outlook for shares in 2011.
(Editing by Robert Birsel)
China's central bank raised interest rates on Christmas Day... How will markets respond to China's rate rise?
China's central bank raised interest rates on Christmas Day, moving sooner than many analysts and market participants had expected to ramp up its campaign to combat inflation.
Many observers had thought the People's Bank of China (PBOC) might hold off in raising rates for a second time since mid-October until at least the new year, especially after Chinese money market rates spiked last week, meaning many investors will have been taken off guard by the latest step.
Here are some questions and answers on how markets may respond to the move.
How will Chinese shares react?
Broadly, a 25 basis point move is too small to spark a sustained, sharp selloff.
While a knee-jerk move lower in Shanghai at Monday's open is possible, optimism for Chinese shares in 2011 is likely to encourage investors to "buy the dip" and send Shanghai markets higher even on the day. That may send Hong Kong's market, closed on Monday, higher on Tuesday.
Sectors most at risk of a leg down are commodity-related firms, which have outperformed this quarter as commodity and energy prices have rallied into the year-end.
The sub-index of energy shares in Hong Kong is up 11.1% this quarter. The CSI Energy Index of shares listed on the mainland is up 22.5%. Surging gold, silver and copper prices have boosted shares of mining companies. That trade is likely to see some unwinding.
The impact on Chinese banking shares, the most heavily weighted sector on the Shanghai and Hong Kong markets, is likely to be neutral in the near term.
Rising interest rates are seen benefitting banks' net interest margins but uncertainty over new lending quotas and further tightening will likely cap gains.
On the charts, the Shanghai Composite as well as the Hang Seng indexes are looking a little weak in the near-term. The Shanghai Composite closed below its 250-day moving average on Friday, while the Hang Seng is forming a topping "head and shoulders" pattern on the daily as well as weekly charts.
What about other Asian equities?
Asian markets will lead the reaction to the latest rate rise from China. Japan's Nikkei will be the first major Asian index to open along with Korea's KOSPI.
While the Nikkei could open weaker, that is unlikely to disturb the steady rise seen over the past seven weeks. It has in fact outperformed the rest of Asia since China's rate increase in October. The Nikkei is up about 10% since then versus a 2.7% rise for the MSCI Asia ex-Japan.
Southeast Asian stocks are likely to see some of their stellar annual gains trimmed.
Indonesian and Thai markets are among the world's top performers this year as foreign investors pumped money into emerging markets, particularly in Asia.
The last Chinese rate increase in October came after Chinese markets had closed for the day. The move prompted a bit of a slump in Europe and the United States, with markets unsure how Chinese investors would react. The Shanghai Composite opened higher the following day, helping to stabilise other markets. This time, Chinese markets will likely lead the reaction: a measured reaction in China would set the tone for the rest of the markets.
Will China's rate rise hurt commodities?
Commodity markets in China will likely see a sharp negative correction on Monday, with a chance some could test recently expanded downside limits. The opportunity to cash in on prices at or near their highest in years before the year end could mean the correction this time may be greater than the losses following the last interest rate rise in October.
That sent the dollar higher, dragged gold down by more than 2%, oil fell 4%, copper lost almost 2.5%, while wheat fell 2.7% and corn 2%.
But analysts said it did not spell the end of the commodities rally, as corrections in markets, including copper, corn and soy -- key imports for China -- would be viewed as buying opportunities.
How big will the reaction be in G10 currencies?
Reduced trading volumes because of holidays in major financial centres will limit the reaction in G10 currency markets and make price action whippy.
The biggest reaction may be in the Australian dollar because of the big trade ties between China and Australia and the market's use of the Aussie as a proxy for the Chinese economy. The rate increase could catch traders off guard and lead to profit taking on bets on the Aussie.
The Aussie has gained the most against the dollar in December among G10 peers, up 4.8% to USD 1.0053, benefitting from a late-year comeback in risk taking. It has also in the last few weeks become an even more popular play against the euro, rising nearly 4% to AU$1.3035 per euro.
Aussie/U.S. dollar has hit a higher daily low for the past six trading days - so a move below Friday's USD 1.0018 low would suggest the upward trend is losing momentum.
How will yuan NDFs react?
The rate rise may be a catalyst for further downward pressure on dollar/yuan non-deliverable forwards. The most liquid one-year tenor , which finished trading on Friday at 6.50, may see the biggest decline in coming days.
The combination of two interest rate rises and three bank reserve requirement increases in the last two months suggests Beijing is focused squarely on inflation and may indeed use the yuan to help fight imported inflation from rising oil and other commodity prices, allowing it to rise more in coming months.
That could set the NDF market up for a moderate correction.
The one-year NDF implied expectations the yuan would appreciate as much as 4.3% against the dollar in late October, before a series of weaker mid-point fixings triggered early year-end profit taking, bringing implied appreciation in a year's time to 2.1%.
http://www.moneycontrol.com/news/market-outlook/how-will-markets-respond-to-chinas-rate-rise_508450.html
Many observers had thought the People's Bank of China (PBOC) might hold off in raising rates for a second time since mid-October until at least the new year, especially after Chinese money market rates spiked last week, meaning many investors will have been taken off guard by the latest step.
Here are some questions and answers on how markets may respond to the move.
How will Chinese shares react?
Broadly, a 25 basis point move is too small to spark a sustained, sharp selloff.
While a knee-jerk move lower in Shanghai at Monday's open is possible, optimism for Chinese shares in 2011 is likely to encourage investors to "buy the dip" and send Shanghai markets higher even on the day. That may send Hong Kong's market, closed on Monday, higher on Tuesday.
Sectors most at risk of a leg down are commodity-related firms, which have outperformed this quarter as commodity and energy prices have rallied into the year-end.
The sub-index of energy shares in Hong Kong is up 11.1% this quarter. The CSI Energy Index of shares listed on the mainland is up 22.5%. Surging gold, silver and copper prices have boosted shares of mining companies. That trade is likely to see some unwinding.
The impact on Chinese banking shares, the most heavily weighted sector on the Shanghai and Hong Kong markets, is likely to be neutral in the near term.
Rising interest rates are seen benefitting banks' net interest margins but uncertainty over new lending quotas and further tightening will likely cap gains.
On the charts, the Shanghai Composite as well as the Hang Seng indexes are looking a little weak in the near-term. The Shanghai Composite closed below its 250-day moving average on Friday, while the Hang Seng is forming a topping "head and shoulders" pattern on the daily as well as weekly charts.
What about other Asian equities?
Asian markets will lead the reaction to the latest rate rise from China. Japan's Nikkei will be the first major Asian index to open along with Korea's KOSPI.
While the Nikkei could open weaker, that is unlikely to disturb the steady rise seen over the past seven weeks. It has in fact outperformed the rest of Asia since China's rate increase in October. The Nikkei is up about 10% since then versus a 2.7% rise for the MSCI Asia ex-Japan.
Southeast Asian stocks are likely to see some of their stellar annual gains trimmed.
Indonesian and Thai markets are among the world's top performers this year as foreign investors pumped money into emerging markets, particularly in Asia.
The last Chinese rate increase in October came after Chinese markets had closed for the day. The move prompted a bit of a slump in Europe and the United States, with markets unsure how Chinese investors would react. The Shanghai Composite opened higher the following day, helping to stabilise other markets. This time, Chinese markets will likely lead the reaction: a measured reaction in China would set the tone for the rest of the markets.
Will China's rate rise hurt commodities?
Commodity markets in China will likely see a sharp negative correction on Monday, with a chance some could test recently expanded downside limits. The opportunity to cash in on prices at or near their highest in years before the year end could mean the correction this time may be greater than the losses following the last interest rate rise in October.
That sent the dollar higher, dragged gold down by more than 2%, oil fell 4%, copper lost almost 2.5%, while wheat fell 2.7% and corn 2%.
But analysts said it did not spell the end of the commodities rally, as corrections in markets, including copper, corn and soy -- key imports for China -- would be viewed as buying opportunities.
How big will the reaction be in G10 currencies?
Reduced trading volumes because of holidays in major financial centres will limit the reaction in G10 currency markets and make price action whippy.
The biggest reaction may be in the Australian dollar because of the big trade ties between China and Australia and the market's use of the Aussie as a proxy for the Chinese economy. The rate increase could catch traders off guard and lead to profit taking on bets on the Aussie.
The Aussie has gained the most against the dollar in December among G10 peers, up 4.8% to USD 1.0053, benefitting from a late-year comeback in risk taking. It has also in the last few weeks become an even more popular play against the euro, rising nearly 4% to AU$1.3035 per euro.
Aussie/U.S. dollar has hit a higher daily low for the past six trading days - so a move below Friday's USD 1.0018 low would suggest the upward trend is losing momentum.
How will yuan NDFs react?
The rate rise may be a catalyst for further downward pressure on dollar/yuan non-deliverable forwards. The most liquid one-year tenor , which finished trading on Friday at 6.50, may see the biggest decline in coming days.
The combination of two interest rate rises and three bank reserve requirement increases in the last two months suggests Beijing is focused squarely on inflation and may indeed use the yuan to help fight imported inflation from rising oil and other commodity prices, allowing it to rise more in coming months.
That could set the NDF market up for a moderate correction.
The one-year NDF implied expectations the yuan would appreciate as much as 4.3% against the dollar in late October, before a series of weaker mid-point fixings triggered early year-end profit taking, bringing implied appreciation in a year's time to 2.1%.
http://www.moneycontrol.com/news/market-outlook/how-will-markets-respond-to-chinas-rate-rise_508450.html
Thursday, December 23, 2010
Mergers and acquisitions (M&As) will remain the buzzword in the corporate scene in 2011.
Mergers and acquisitions (M&As) will remain the buzzword in the corporate scene in 2011. Among the sectors that are likely to see intensified M&A activities are in the electrical and electronic sub-sectors, agro-based companies, plantations, real estate, metal, chemicals, auto, carriers and the education industry.
The potential consolidation and the need for some government-linked companies to diversify their non-core assets and streamline their operations will be a key driver for the merger and acquisition scene in 2011.
The Palm Oil/Biodiesel Industry … Weak Dollar, Strong Demand From China And India Will Boost Oil And CPO Prices
The Oil & Gas Industry … More O&G Projects To Be Awarded
The Steel/Aluminium Industry … Spillover Effects From Entry Point Projects (10MP & New Economic Transformation Program)
The Construction Industry … Spillover Effects From Entry Point Projects (10MP & New Economic Transformation Program)
The Housing And Properties Industry … Bracing For More M&As & Economic Recovery
The Water Services Industry … Remains Uncertain
The Electronics Industry … Bracing For Recovery
The Rubber/Rubber Glove Industry … Bracing For M&As
The Automotive Industry … Bracing For M&As (Proton & Perodua)
The Education Industry … Bracing For M&As
The Palm Oil/Biodiesel Industry
The current (Dec 2010) rally in CPO prices is supported by the expected dwindling stock and weaker US dollar.
Despite the rally in CPO futures, there was little excitement shown by big cap plantation stocks … Sime Darby Bhd, Kuala Lumpur Kepong Bhd (KLK), IOI Corp Bhd, Genting Plantations Bhd and Kulim Malaysia Bhd, IJM Plantations Bhd, Batu Kawan Bhd.
Among the smaller plantation stocks were Glenealy Plantations ( Malaya ) Bhd, Sarawak Oil Palms Bhd and Kim Loong Resources Bhd.
The big cap plantation stocks were not sensitive to the movement of CPO futures as they were still considered pricier (mid Dec 2010) than their mid and small cap peers.
Industry observers warned that the risks to the upside of these planters include the cut-back in consumption as the economy slows.
Meanwhile, Malaysian big cap plantation stock valuations are fairly valued at this moment (Dec 2010), thus the limited upside. Small caps are playing catch-up.
Be that as it may, the rally in CPO prices will translate into better profit for planters this quarter (4Q2010).
In a recent technical note, both the near-term and mid-term technical outlook of the CPO market will remain bullish as long as prices stay above the RM2,700 to RM2,800 per tonne mark.
Nevertheless, the market will face a very tough challenge at the formidable RM3,750 per tonne level. Looking back, when CPO prices sharply tumbled in 1Q08, four major failed rebound attempts were seen at the RM3,750 per tonne level in the subsequent four months.
As a result, RM3,750 has become a very tough resistance and the market is now (mid Dec 2010) trading not too far away from this level. However, when the RM3,750 level is breached, RM4,000 per tonne as the next resistance.
Meanwhile Malaysian exports fell 24 per cent in the first 15 days of December 2010. Shipments slumped 29.5 per cent in the same period.
There is a lack of supportive fundamental news. Investors always tend to stay away from the market with the holidays ahead.
Palm oil has surged 37 per cent till Dec 2010, headed for a second annual advance, on speculation that rising demand from China and India may strain global supplies that have been curbed by rain and drought in producing nations.
Output in Malaysia fell to the lowest level in five months in November 2010, while stockpiles slid for the first time in four months. Heavy rainfall caused by a La Nina weather event has also reduced oil-palm yields in Indonesia , the biggest grower.
Malaysian production declined 11 percent to 1.46 million tons in Nov 2010 from 1.64 million tons in October 2010. Inventory dropped 8.7 percent to 1.64 million tons from 1.79 million tons.
India , the second-biggest cooking-oil consumer, imported 668,917 tons of vegetable oils last month, 11 percent less than a year earlier.
The Oil & Gas Industry
Petroliam Nasional Bhd (Petronas) will open marginal oilfields to niche players with strengths in development and production with hopes of recovering an estimated 1.7 billion barrels of oil equivalents over the next two decades.
The news came after Prime Minister Datuk Seri Najib Razak unveiled the tax incentives proposed by Petronas, which would potentially lead to additional petroleum-generated revenue of more than RM50 billion over the next 20 years.
Najib said the tax incentives proproposed by Petronas would be incorporated into the Petroleum Income Tax Act (PITA), stressing that five new incentives were proposed to promote the development of new oil resources, facilitate exploitation of harder-to-reach oil fields and stimulate domestic exploration.
Petronas would encourage both new local and international players to become service contractors to develop these fields.
It entails an investment of between RM70 billion and RM75 billion.
The perks were to make the fields economical, as most of Malaysia ’s oil basins were mature. According to Petronas’ 2010 annual report, production fell to the equivalent of 1.63 million barrels of oil a day in the financial year ended March 31, from 1.66 million barrels a year earlier.
Malaysia has more than 25 marginal fields. If the government does not provide incentives, they will remain undeveloped. The government has come up with a set of incentives worth about RM8 billion, but over 15 years, they will be able to see a tax revenue of RM58 billion.
At present, the average recovery factor for Malaysian oilfields is about 26%. Through the incentives which would in turn boost enhanced oil recovery (EOR), Petronas hopes to increase the recovery rate of oil exploration activity to above 30%.
This new incentive will provide a change in terms of the production and tax regime in the country to promote the development of complex and challenging oilfields.
The new incentives include an investment tax allowance of up to 60% to100% of capital expenditure to be deducted against statutory income to encourage the development of capital-intensive projects, reduction of the tax rate to 25% from the current 38% for marginal oilfield developments and an Accelerated Capital Allowance of up to five years from 10 years where the full utilisation of capital costs deducted could improve project viability.
The other incentives are a Qualifying Exploration Expenditure Transfer between non-contiguous petroleum agreements with the same partnership or sole proprietor to enhance contractor’s risk-taking attitude, and the waiver of export duties on oil produced and exported from marginal field developments to improve project viability.
In line with the nation’s efforts to transform Malaysia into a regional oil and gas hub, Najib also announced that Tanjong Agas Supply Base & Marine Services Sdn Bhd would develop the Tanjong Agas Oil & Gas and Logistics Industrial Park as a one-stop centre to serve and support the region’s rapidly growing upstream and downstream activities. This includes oil and gas exploration, exploitation and production activities. The industrial park project situated on 4,260 acres of land in Pekan, Pahang.
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Minister in the Prime Minister’s Department Senator Datuk Seri Idris Jala says Petroliam Nasional Bhd (Petronas) will be announcing more incentives for the oil & gas industries soon as the government sets the stage for the country to be a regional hub for oilfield service.
There are a lot of opportunities for local players to participate in this – be it in the form of construction work, or providing related oil and gas services. All of this will come into play. The incentives companies could expect were the renegotiation of certain contracts for renewal like for those production sharing contractors such as Shell and Exxonmobil.
Meanwhile deluge of contracts has led to speculation that the oil and gas sector is poised for a good run. What is creating a stir in the market is the redevelopment of old oilfields. T
There are some 600 rigs sitting on old oilfields that Petronas is looking to upgrade and improve on to enhance the oil extraction rate. There platforms are 20 years old and on average and there is a lot of work to be done.
While new technology allows the implementation of what the industry calls enhanced oil recovery (EOR), the platforms and the equipment on them, such as pipes, valves and pumps, have to be changed and upgraded to cater for it. Hence oil and gas players are expecting increased spending by Petronas.
In fact Petronas’ capex has been on the rise in the past few years (Before 2010), except in the just concluded FY2010 ended March 31.
Previously E&P spending was mainly on developing new oilfields to increase reserve, especially deep waters. Moving forward, industry players are expecting more money to go towards EOR projects as cheaper way of increasing reserves.
Petronas commitment to redirect capex to the home market spells spin off benefits and positive prospects for local oil and gas players. Deepwater, shallow, marginal and brownfield as well as gas related and floater construction work contracts are set to dominate the local scene over the next few months (Oct 2010 & Beyond). The following players are the eight contenders for the jobs …
Naim, Dayang, TGOFFs, Kencana, Petra Energy, MMHE, Dialog, Wah Seong, SapCrest
The Steel/Aluminium Industry
After an uneventful year (2010), industry players say local steel players can look forward to a better 2011, thanks to the rolling out of 10th Malaysia Plan (10MP) projects.
This year (2010) has been characterised by a lacklustre demand and low capacity utilisation on the lack of large infrastructure projects and competition from Chinese imports, as well as squeezed margins due to high feedstock prices.
However, industry players might still face headwinds in the near term given the prevailing high and volatile prices of raw materials. This includes scrap and iron ore pellets.
Much of 2010 was challenging for steel players, as they had to contend with both weaker demand and higher raw material prices. The third quarter ended Sept 30, turned out to be the worst in the year for most players, with several such as Kinsteel Bhd and Lion Industries Bhd posting losses. Local steel millers have probably seen the worst in the third quarter of 2010. They are confident the steel players can look forward to a much better 4Q, and a better 2011.
4Q2010 – 1Q2011 …
Expect to see an improvement in the coming quarter (4Q2010 – 1Q2011) especially with selling prices showing signs of recovery. The price of scrap is back to the US$400 (RM1,250) per tonne level, and steel players are also witnessing more enquiries from traders since early November 2010. However, the improvement is nothing to shout about, especially with the unappealing spread between iron ore pellets and hot briquetted iron (HBI) prices, which is expected to persist. It is worth noting that over the past year (2009 – 2010) spot prices of iron ore have more than doubled.
Moving forward, the price of iron ore fines will still strengthen and trade in the band of US$150 to US$170 per tonne until 2012. Any potential dip below US$120 per tonne and China ’s present short iron ore position would trigger re-stocking and thereby lend support to global prices.
Nonetheless, significant steel orders for Budget 2011 projects as well as the longer-term 10MP would start emerging in 2H2011 at the earliest, allowing selling prices to better match current (Dec 2010) high iron ore markets.
Another relief is the strength of the ringgit, which helps cushion the higher prices of iron ore traded in US dollars.
Additionally, the expected appreciation of the yuan, albeit a gradual pace, should see local steel players, whether domestically focused or otherwise, facing less competition from Chinese steel dumping.
Only players with sufficient cash and efficient inventory management will be strong and quick enough to endure and take advantage of feedstock price fluctuations in the spot market.
While steel demand will be boosted by the government’s expansion plans, investors are better exposed to companies with cleaner balance sheets.
It also said upstream players stand to benefit more in the current (Dec 2010) environment of high commodity prices, but any significant re-rating catalyst for the sector will be driven by an increase in demand.
The flexibility to cope with raw material costs is also an area that investors may want to watch out for when investing in a steel player.
Ann Joo Resources as it is one company that can manage better in the face of volatility in raw material prices. Additionally, Ann Joo’s higher export ratio of its production will help to cushion sales when the domestic market is lacklustre, as was the case in 2009 and potentially during the early part of 2011 as well. Furthermore, with the abolishment of the annual iron ore pricing system in April 2010 and a move towards quarterly price contracts, it expects greater volatility in iron ore prices globally.
Ann Joo is therefore able to manage input costs better compared with companies such as Southern Steel, which has similar plant operations, production capacity and market capitalisation.
With the expected commissioning of its mini blast furnace plant in Dec 2010, Ann Joo will now have the flexibility in the usage of feedstock (iron ore and scrap) versus relying mainly on steel scrap for Southern Steel.
Apart from Ann Joo, other steel millers are also upping their capacity in anticipation of rising demand. Kinsteel, for one, will be constructing a steel pelletising plant that is expected to cost some RM200 million.
The Construction Industry
The Construction Industry Development Board (CIDB) expects the construction sector to be buoyant next year (2011) as projects under the 10th Malaysia Plan (10MP) start to roll out from January 2010.
The European debt crises and the slow US economic recovery was worrying and many countries are taking steps to reduce their expenditure in order to improve their budget deficit. Malaysia is taking similar steps in view of the expected crises. The impact will be felt in 2011 as what was experienced in 2009.
However, impact will not be as great as 2009 due to continuation of projects from the Ninth Malaysia Plan (9MP), new jobs under the 10MP and more public-private partnership (PPP) projects coming up.
Under the 10MP, an amount of RM230 billion has been allocated for development, whereby 60 per cent, or RM138 billion, is for infrastructure.
Projects like Matrade Centre, Warisan Merdeka, mass rapid transit and the Malaysian Rubber Board's land development in Sungai Buloh, worth RM70 billion, will contribute to growth in 2011.
In 2010, the government has announced projects to the tune of RM72 billion such as the LRT extension, the New LCCT terminal, power plants and luxury housing projects in Iskandar Malaysia.
These are high-impact projects which will improve the business environment and private investment.
The Housing And Properties Industry
On November 4 2010, UEM Land Holdings Bhd offered RM1.4 billion to buy rival Sunrise Bhd, followed by news of a merger between Malaysian Resources Corp Bhd (MRCB) and IJM Land Bhd to create a group with a market value of RM7 billion. Then, Tan Sri Jeffrey Cheah proposed to combine his companies Sunway Holdings Bhd and Sunway City Bhd (SunCity) in a RM4.5 billion deal.
The first two deals reflect the government's intent to create bigger companies to lure more foreign investors to Malaysia 's stock market.
UEM Land is ultimately controlled by state investment arm Khazanah Nasional Bhd, while both MRCB and IJM Land have the Employees Provident Fund (EPF) as major shareholders. It is quite clear that the EPF is driving the merger as it seeks to develop the strategic and massive Rubber Research Institute land next to Kota Damansara, Selangor.
Both deals are also about securing expertise as the buyer is in a hurry to grow. UEM Land needs Sunrise for high-end property development and marketing, while EPF wants a developer that could build townships ( IJM Land ) as well as commercial projects (MRCB).
But the Sunway deal is more about the ability to fight for bigger jobs and address the liquidity issue. A major problem for Malaysian property companies is there are not enough shares readily available for trading, something that foreign investors love. This means the stock price will have a tough time catching up to its fair value.
But some property executives contend there are downsides to becoming a bigger group. You could end up being a lumbering giant. Example was how Mah Sing Group Bhd was able to buy some 25 hectares of land in Batu Ferringhi, Penang, for RM157 million. Bigger rivals had also bid for the land but Mah Sing was able to win as it moved faster than the competition.
Why the deluge of M&A activities in the sector? It is attributed it to a combination of reasons …
In the cases of Sunrise-UEM Land and MRCB-IJM Land , it is hoped that through these mergers, the government-linked companies (GLCs) can move forward to stamp their mark as regional champions.
Another reason for the current (N0v 2010) consolidation could be players trying to get a bigger slice of land redevelopment projects created by the proposed mass rapid transit (MRT) system.
The mergers between the GLCs and private companies show that there is a significant push for execution and performance. There is now (Nov 2010) a greater urgency for M&As. The formation of two large companies from the mergers of UEM Land-Sunrise and IJM Land-MRCB would pose a threat to other smaller companies in that the former will have more resources and liquidity.
Another disadvantage for these entities which on a stand-alone basis were not too appealing to foreign investors given their size (or lack of it), would post-merger have the economies of scale to draw these investors' attention.
The bigger size of these companies will make them more investable to foreign investors. These companies will now (Nov 2010) be able to compete with their regional counterparts.
Indeed Malaysian corporates are entering an interesting phase in the market. For the first time, GLCs are actively looking for expertise from the private sector to ready themselves for the next phase of development.
In Malaysia , all major land banks are government-owned. The reason why private sector companies such as Sunrise and IJM Land are roped in, is because they have the branding and expertise. Hence, what you're seeing now (Nov 2010) is not just the making of bigger companies, but stronger ones.
If a property company has a good track record but is a small player, it may not be good enough as the company does not have the balance sheet to acquire landbank. On the other hand, what the GLCs may lack in expertise or branding, they make up in landbank and government funds. So the public-private partnership is a formula that should work.
It also makes sense for GLCs to buy over property companies rather than land as valuations of these companies are still relatively attractive, whereas land prices have appreciated significantly. Driving home this point is the fact that property counters are trading at an average of 35% discount to their net asset value (NAV). In fact, most of them are also trading (Nov 2010) at a discount to their net tangible asset. Almost all property companies that merge can break up their assets and unlock more value out of their existing land bank.
There is expectation that the spate of recent (Nov 2010) proposed mergers will unleash another slew of merger activities among other industry players to avoid being left behind in the race to be bigger and better.
The Water Services Industry
Malaysia ’s government is considering bondholder proposals to avoid defaults by water companies operating in Selangor state, including possibly taking over the notes or offering loans.
The government has to look at the viability of these bonds.
Some bondholders asked the government to take control of the bonds, or extend “soft loans” to the Selangor state government’s water distribution company.
Malaysian Rating Corp downgraded about RM7 billion (US$2.2 billion) of bonds issued by seven water- related companies in September, citing regulatory and operational uncertainties.
Selangor hasn’t been able to reach an agreement with the central government and private companies over reorganization of the water industry.
The federal government doesn’t object to Selangor’s plan to buy water assets if it has the financial means to execute it. Implementation “should be done on a willing buyer, willing seller basis whilst honoring the sanctity of existing concession agreements.
Previous bids by Selangor to acquire water assets were rejected by local water distributors as too low. Though a revised proposal was accepted by Syarikat Pengeluar Air Sungai Selangor Sdn. and Konsortium Abass Sdn., the transaction failed when Syarikat Bekalan Air Selangor Sdn. and Puncak Niaga (M) Sdn Bhd continued to hold out for more.
The Malaysian central bank and the Finance Ministry is in talks with bondholders to “allay their anxiousness”. Malaysia ’s commitment to ensure the water will keep flowing, that is something that we will honor.”
The Electronics Industry
Despite the weak 3Q10 results, the technology sector is due to the potential re-rating catalysts. The catalysts were a strong growth in the key end-user segment of handphones and the advent of the corporate replacement cycle, which is admittedly a more gradual one.
The earnings profile for the tech stocks is not expected to improve in the near term as they battle inventory correction, seasonality, slower demand growth and the strong though reversing RM and high raw material costs. But this should start to reverse itself in 2H11 as the industry returns to more typical seasonal patterns. Certain product segments are also still exhibiting fairly robust growth.
Moreover, the long-term secular picture looks favourable given the growing use of electronic devices which require the input of chips and the continued trend of outsourcing. In addition, valuations (Dec 2010) for the semicon stocks are fairly attractive.
Meanwhile the North America-based manufacturers of semiconductor equipment posted US$1.51 billion in orders in November 2010 (three-month average basis) and a book-to-bill ratio of 0.96.
The book-to-bill ratio of 0.96, means that US$96 worth of orders were received for every US$100 of product billed for the month, was the lowest since June 2009’s ratio of 0.80.
The three-month average of worldwide bookings in November 2010 was US$1.51 billion. The bookings figure is 5.3% lower than the final October 2010 level of US$1.59 billion, and is 90.6% above the US$791.8 million in orders posted in November 2009.
The three-month average of worldwide billings in November 2010 was US$1.57 billion. The billings figure is down 3.4% from the final October 2010 level of US$1.62 billion, and is 110.7% above the November 2009 billings level of US$744.2 million.
Following a historic growth period and 18 months of sequential growth, and in accordance with seasonal trends, sales of semiconductor equipment eased in November 2010 This tracks the bookings trend which peaked in July 2010.
The SEMI book-to-bill is a ratio of three-month moving averages of worldwide bookings and billings for North American-based semiconductor equipment manufacturers.
The Rubber/Rubber Glove Industry
The 44.7% decline in the earnings of Malaysia ’s largest glove producer, Top Glove Corp Bhd, is not a sign of things to come for the other glove manufacturers.
According to analysts and industry players, the existing headwinds may indicate tougher times for Malaysian glove manufacturers, but not all earnings profiles are the same.
The financial performance of manufacturers will hinge on their respective product mix and raw material cost structures.
Top Glove was the most affected among the six listed glove manufacturers in Malaysia due to its portfolio of mainly natural rubber or latex gloves. The others are less affected due to their different product mix comprising latex and nitrile gloves.
Other listed glove manufacturers in the country include Supermax Corp Bhd, Kossan Rubber Industries Bhd, Hartalega Holdings Bhd, Latexx Partners Bhd and Adventa Bhd.
Top Glove’s results were not necessarily an indication of how other players will fare in the current environment (Dec 2010) of costlier latex and a weakening US dollar.
Glove players will have less bargaining power [to dictate prices] as there is no shortage of supply. Demand for gloves will, however, still be there but not the “extra demand” seen during recent outbreaks of disease.
Top Glove is most exposed to the rising price of latex as some 90% of its revenue is from gloves made from latex. The other producers tend to have a larger proportion of nitrile gloves, which use synthetic rubber as their core raw material. Nitrile gloves make up about 7% of Top Glove’s revenue. In contrast, nitrile glove sales make up 83% and 38% of the revenue of Hartalega and Kossan, respectively.
Looking ahead, industry observers foresee normalisation of glove demand in the short term, but expects business to pick up in the long term. This will be helped by demand from emerging markets and the global healthcare industry.
Apart from demand normalisation the manufacturer, capable of producing some 34 billion gloves annually, the industry also had to contend with excess capacity. Another crucial concern is that buyers are opting to delay purchases and keep inventory at a minimum as they wait for glove prices to decline.
Nevertheless, this adverse situation will possibly lead to further consolidation among the industry players and Top Glove is in a good position to further enlarge its business when the opportunities arise.
Top Glove plans to dedicate more production lines to manufacture synthetic rubber or nitrile gloves, which fetch higher margins and are not subject to the volatility in natural rubber prices. Synthetic rubber is made from butadiene, a by-product of crude oil. Meanwhile, critics said “a massive and sustained switch to nitrile may not be sustainable” for Top Glove because the cost of nitrile gloves is linked to crude oil prices, which are also rising.
Escalating latex prices will prompt consolidation in the rubber glove industry … a synergistic M&As.
Customer buying trends have shifted to maintaining lowest inventory levels as latex prices remain high. The first half of the year is seasonally a low-production period for latex and, thus, an indication of high prices, glove inventory levels may be kept low in the next few months. However, inventory is expected to rise as the market adjusts to the expectations of higher latex prices.
The Automotive Industry
The Malaysian Automotive Institute (MAI) is understood to have submitted its proposals and recommendations pertaining to the consolidation of the automotive
sector to the government for a final decision on the merger between the players.
Industry sources said MAI had interviewed several of them and submitted the proposal to the government, with a decision likely to be made soon.
MAI was incorporated on April 16 2010 to function as an independent non-profit organisation under the auspices of the Ministry of International Trade and Industry (Miti).
According to its website, MAI serves as a focal point and coordination centre for the development of the local automotive industry in all related matters, including formulating the national automotive policy and coordinating automotive-related research and development, among others.
The consolidation of the auto sector, if it happens, is widely expected to entail a merger between two national automakers, Proton Holdings Bhd and Perusahaan Otomobil
Kedua Sdn Bhd (Perodua), and could possibly include some other players as well.
Meanwhile the government will decide on Nov 2010 whether to allow five foreign carmakers to set up assembly plants in Malaysia .
International Trade and Industry Minister Datuk Seri Mustapa Mohamed said it is still looking through the applications and expected to make an announcement soon.
In September 2010, Malaysian Investment Development Authority was evaluating five foreign carmakers interested in setting up assembly and manufacturing facilities in the country.
Among companies interested included those from Europe, India , China , Japan and South Korea . Mustapa did not dismiss the possibility of the companies using existing facilities for their production.
With the recent review of the National Automotive Policy, foreign carmakers can wholly own facilities that produce luxury vehicles with engine capacity of more than 1,800cc and costing more than RM150,000 per unit.
The Education Industry
While the property sector now (Nov 2010) is in a flurry of consolidation through mergers and acquisitions, the education sector still remains “under the radar”. However, the fast growing private education business in Malaysia, which is valued to be worth some RM7.2 billion, seems to be stirring of late.
Ekuiti Nasional Bhd’s (EKUINAS) recent 51 per cent acquisition of APIIT/UCTI Education Group from Sapura Resources Bhd is seen as trailblazer for consolidation in the private education sector.
This is because of more outright acquisitions, mergers and the entry of fresh foreign players in time to come.
There will be more mergers in the works as education entities that don't merge may risk being left behind. There is urgency for smaller players to bulk up for scale and build up quality as the more renowned and established international players which have made their presence in Malaysia pose healthy competition to the growing market.
This is more so as education has been identified as one of 12 National Key Economic Areas (NKEAs), with private education leading the charge in catapulting Malaysia into the fastest growing education hub in South East Asia .
Among the listed educational entities are Sapura Resources, SEG International Bhd, Help International Corp Bhd and Masterskill (M) Education Group Bhd.
The potential consolidation and the need for some government-linked companies to diversify their non-core assets and streamline their operations will be a key driver for the merger and acquisition scene in 2011.
The Palm Oil/Biodiesel Industry … Weak Dollar, Strong Demand From China And India Will Boost Oil And CPO Prices
The Oil & Gas Industry … More O&G Projects To Be Awarded
The Steel/Aluminium Industry … Spillover Effects From Entry Point Projects (10MP & New Economic Transformation Program)
The Construction Industry … Spillover Effects From Entry Point Projects (10MP & New Economic Transformation Program)
The Housing And Properties Industry … Bracing For More M&As & Economic Recovery
The Water Services Industry … Remains Uncertain
The Electronics Industry … Bracing For Recovery
The Rubber/Rubber Glove Industry … Bracing For M&As
The Automotive Industry … Bracing For M&As (Proton & Perodua)
The Education Industry … Bracing For M&As
The Palm Oil/Biodiesel Industry
The current (Dec 2010) rally in CPO prices is supported by the expected dwindling stock and weaker US dollar.
Despite the rally in CPO futures, there was little excitement shown by big cap plantation stocks … Sime Darby Bhd, Kuala Lumpur Kepong Bhd (KLK), IOI Corp Bhd, Genting Plantations Bhd and Kulim Malaysia Bhd, IJM Plantations Bhd, Batu Kawan Bhd.
Among the smaller plantation stocks were Glenealy Plantations ( Malaya ) Bhd, Sarawak Oil Palms Bhd and Kim Loong Resources Bhd.
The big cap plantation stocks were not sensitive to the movement of CPO futures as they were still considered pricier (mid Dec 2010) than their mid and small cap peers.
Industry observers warned that the risks to the upside of these planters include the cut-back in consumption as the economy slows.
Meanwhile, Malaysian big cap plantation stock valuations are fairly valued at this moment (Dec 2010), thus the limited upside. Small caps are playing catch-up.
Be that as it may, the rally in CPO prices will translate into better profit for planters this quarter (4Q2010).
In a recent technical note, both the near-term and mid-term technical outlook of the CPO market will remain bullish as long as prices stay above the RM2,700 to RM2,800 per tonne mark.
Nevertheless, the market will face a very tough challenge at the formidable RM3,750 per tonne level. Looking back, when CPO prices sharply tumbled in 1Q08, four major failed rebound attempts were seen at the RM3,750 per tonne level in the subsequent four months.
As a result, RM3,750 has become a very tough resistance and the market is now (mid Dec 2010) trading not too far away from this level. However, when the RM3,750 level is breached, RM4,000 per tonne as the next resistance.
Meanwhile Malaysian exports fell 24 per cent in the first 15 days of December 2010. Shipments slumped 29.5 per cent in the same period.
There is a lack of supportive fundamental news. Investors always tend to stay away from the market with the holidays ahead.
Palm oil has surged 37 per cent till Dec 2010, headed for a second annual advance, on speculation that rising demand from China and India may strain global supplies that have been curbed by rain and drought in producing nations.
Output in Malaysia fell to the lowest level in five months in November 2010, while stockpiles slid for the first time in four months. Heavy rainfall caused by a La Nina weather event has also reduced oil-palm yields in Indonesia , the biggest grower.
Malaysian production declined 11 percent to 1.46 million tons in Nov 2010 from 1.64 million tons in October 2010. Inventory dropped 8.7 percent to 1.64 million tons from 1.79 million tons.
India , the second-biggest cooking-oil consumer, imported 668,917 tons of vegetable oils last month, 11 percent less than a year earlier.
The Oil & Gas Industry
Petroliam Nasional Bhd (Petronas) will open marginal oilfields to niche players with strengths in development and production with hopes of recovering an estimated 1.7 billion barrels of oil equivalents over the next two decades.
The news came after Prime Minister Datuk Seri Najib Razak unveiled the tax incentives proposed by Petronas, which would potentially lead to additional petroleum-generated revenue of more than RM50 billion over the next 20 years.
Najib said the tax incentives proproposed by Petronas would be incorporated into the Petroleum Income Tax Act (PITA), stressing that five new incentives were proposed to promote the development of new oil resources, facilitate exploitation of harder-to-reach oil fields and stimulate domestic exploration.
Petronas would encourage both new local and international players to become service contractors to develop these fields.
It entails an investment of between RM70 billion and RM75 billion.
The perks were to make the fields economical, as most of Malaysia ’s oil basins were mature. According to Petronas’ 2010 annual report, production fell to the equivalent of 1.63 million barrels of oil a day in the financial year ended March 31, from 1.66 million barrels a year earlier.
Malaysia has more than 25 marginal fields. If the government does not provide incentives, they will remain undeveloped. The government has come up with a set of incentives worth about RM8 billion, but over 15 years, they will be able to see a tax revenue of RM58 billion.
At present, the average recovery factor for Malaysian oilfields is about 26%. Through the incentives which would in turn boost enhanced oil recovery (EOR), Petronas hopes to increase the recovery rate of oil exploration activity to above 30%.
This new incentive will provide a change in terms of the production and tax regime in the country to promote the development of complex and challenging oilfields.
The new incentives include an investment tax allowance of up to 60% to100% of capital expenditure to be deducted against statutory income to encourage the development of capital-intensive projects, reduction of the tax rate to 25% from the current 38% for marginal oilfield developments and an Accelerated Capital Allowance of up to five years from 10 years where the full utilisation of capital costs deducted could improve project viability.
The other incentives are a Qualifying Exploration Expenditure Transfer between non-contiguous petroleum agreements with the same partnership or sole proprietor to enhance contractor’s risk-taking attitude, and the waiver of export duties on oil produced and exported from marginal field developments to improve project viability.
In line with the nation’s efforts to transform Malaysia into a regional oil and gas hub, Najib also announced that Tanjong Agas Supply Base & Marine Services Sdn Bhd would develop the Tanjong Agas Oil & Gas and Logistics Industrial Park as a one-stop centre to serve and support the region’s rapidly growing upstream and downstream activities. This includes oil and gas exploration, exploitation and production activities. The industrial park project situated on 4,260 acres of land in Pekan, Pahang.
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Minister in the Prime Minister’s Department Senator Datuk Seri Idris Jala says Petroliam Nasional Bhd (Petronas) will be announcing more incentives for the oil & gas industries soon as the government sets the stage for the country to be a regional hub for oilfield service.
There are a lot of opportunities for local players to participate in this – be it in the form of construction work, or providing related oil and gas services. All of this will come into play. The incentives companies could expect were the renegotiation of certain contracts for renewal like for those production sharing contractors such as Shell and Exxonmobil.
Meanwhile deluge of contracts has led to speculation that the oil and gas sector is poised for a good run. What is creating a stir in the market is the redevelopment of old oilfields. T
There are some 600 rigs sitting on old oilfields that Petronas is looking to upgrade and improve on to enhance the oil extraction rate. There platforms are 20 years old and on average and there is a lot of work to be done.
While new technology allows the implementation of what the industry calls enhanced oil recovery (EOR), the platforms and the equipment on them, such as pipes, valves and pumps, have to be changed and upgraded to cater for it. Hence oil and gas players are expecting increased spending by Petronas.
In fact Petronas’ capex has been on the rise in the past few years (Before 2010), except in the just concluded FY2010 ended March 31.
Previously E&P spending was mainly on developing new oilfields to increase reserve, especially deep waters. Moving forward, industry players are expecting more money to go towards EOR projects as cheaper way of increasing reserves.
Petronas commitment to redirect capex to the home market spells spin off benefits and positive prospects for local oil and gas players. Deepwater, shallow, marginal and brownfield as well as gas related and floater construction work contracts are set to dominate the local scene over the next few months (Oct 2010 & Beyond). The following players are the eight contenders for the jobs …
Naim, Dayang, TGOFFs, Kencana, Petra Energy, MMHE, Dialog, Wah Seong, SapCrest
The Steel/Aluminium Industry
After an uneventful year (2010), industry players say local steel players can look forward to a better 2011, thanks to the rolling out of 10th Malaysia Plan (10MP) projects.
This year (2010) has been characterised by a lacklustre demand and low capacity utilisation on the lack of large infrastructure projects and competition from Chinese imports, as well as squeezed margins due to high feedstock prices.
However, industry players might still face headwinds in the near term given the prevailing high and volatile prices of raw materials. This includes scrap and iron ore pellets.
Much of 2010 was challenging for steel players, as they had to contend with both weaker demand and higher raw material prices. The third quarter ended Sept 30, turned out to be the worst in the year for most players, with several such as Kinsteel Bhd and Lion Industries Bhd posting losses. Local steel millers have probably seen the worst in the third quarter of 2010. They are confident the steel players can look forward to a much better 4Q, and a better 2011.
4Q2010 – 1Q2011 …
Expect to see an improvement in the coming quarter (4Q2010 – 1Q2011) especially with selling prices showing signs of recovery. The price of scrap is back to the US$400 (RM1,250) per tonne level, and steel players are also witnessing more enquiries from traders since early November 2010. However, the improvement is nothing to shout about, especially with the unappealing spread between iron ore pellets and hot briquetted iron (HBI) prices, which is expected to persist. It is worth noting that over the past year (2009 – 2010) spot prices of iron ore have more than doubled.
Moving forward, the price of iron ore fines will still strengthen and trade in the band of US$150 to US$170 per tonne until 2012. Any potential dip below US$120 per tonne and China ’s present short iron ore position would trigger re-stocking and thereby lend support to global prices.
Nonetheless, significant steel orders for Budget 2011 projects as well as the longer-term 10MP would start emerging in 2H2011 at the earliest, allowing selling prices to better match current (Dec 2010) high iron ore markets.
Another relief is the strength of the ringgit, which helps cushion the higher prices of iron ore traded in US dollars.
Additionally, the expected appreciation of the yuan, albeit a gradual pace, should see local steel players, whether domestically focused or otherwise, facing less competition from Chinese steel dumping.
Only players with sufficient cash and efficient inventory management will be strong and quick enough to endure and take advantage of feedstock price fluctuations in the spot market.
While steel demand will be boosted by the government’s expansion plans, investors are better exposed to companies with cleaner balance sheets.
It also said upstream players stand to benefit more in the current (Dec 2010) environment of high commodity prices, but any significant re-rating catalyst for the sector will be driven by an increase in demand.
The flexibility to cope with raw material costs is also an area that investors may want to watch out for when investing in a steel player.
Ann Joo Resources as it is one company that can manage better in the face of volatility in raw material prices. Additionally, Ann Joo’s higher export ratio of its production will help to cushion sales when the domestic market is lacklustre, as was the case in 2009 and potentially during the early part of 2011 as well. Furthermore, with the abolishment of the annual iron ore pricing system in April 2010 and a move towards quarterly price contracts, it expects greater volatility in iron ore prices globally.
Ann Joo is therefore able to manage input costs better compared with companies such as Southern Steel, which has similar plant operations, production capacity and market capitalisation.
With the expected commissioning of its mini blast furnace plant in Dec 2010, Ann Joo will now have the flexibility in the usage of feedstock (iron ore and scrap) versus relying mainly on steel scrap for Southern Steel.
Apart from Ann Joo, other steel millers are also upping their capacity in anticipation of rising demand. Kinsteel, for one, will be constructing a steel pelletising plant that is expected to cost some RM200 million.
The Construction Industry
The Construction Industry Development Board (CIDB) expects the construction sector to be buoyant next year (2011) as projects under the 10th Malaysia Plan (10MP) start to roll out from January 2010.
The European debt crises and the slow US economic recovery was worrying and many countries are taking steps to reduce their expenditure in order to improve their budget deficit. Malaysia is taking similar steps in view of the expected crises. The impact will be felt in 2011 as what was experienced in 2009.
However, impact will not be as great as 2009 due to continuation of projects from the Ninth Malaysia Plan (9MP), new jobs under the 10MP and more public-private partnership (PPP) projects coming up.
Under the 10MP, an amount of RM230 billion has been allocated for development, whereby 60 per cent, or RM138 billion, is for infrastructure.
Projects like Matrade Centre, Warisan Merdeka, mass rapid transit and the Malaysian Rubber Board's land development in Sungai Buloh, worth RM70 billion, will contribute to growth in 2011.
In 2010, the government has announced projects to the tune of RM72 billion such as the LRT extension, the New LCCT terminal, power plants and luxury housing projects in Iskandar Malaysia.
These are high-impact projects which will improve the business environment and private investment.
The Housing And Properties Industry
On November 4 2010, UEM Land Holdings Bhd offered RM1.4 billion to buy rival Sunrise Bhd, followed by news of a merger between Malaysian Resources Corp Bhd (MRCB) and IJM Land Bhd to create a group with a market value of RM7 billion. Then, Tan Sri Jeffrey Cheah proposed to combine his companies Sunway Holdings Bhd and Sunway City Bhd (SunCity) in a RM4.5 billion deal.
The first two deals reflect the government's intent to create bigger companies to lure more foreign investors to Malaysia 's stock market.
UEM Land is ultimately controlled by state investment arm Khazanah Nasional Bhd, while both MRCB and IJM Land have the Employees Provident Fund (EPF) as major shareholders. It is quite clear that the EPF is driving the merger as it seeks to develop the strategic and massive Rubber Research Institute land next to Kota Damansara, Selangor.
Both deals are also about securing expertise as the buyer is in a hurry to grow. UEM Land needs Sunrise for high-end property development and marketing, while EPF wants a developer that could build townships ( IJM Land ) as well as commercial projects (MRCB).
But the Sunway deal is more about the ability to fight for bigger jobs and address the liquidity issue. A major problem for Malaysian property companies is there are not enough shares readily available for trading, something that foreign investors love. This means the stock price will have a tough time catching up to its fair value.
But some property executives contend there are downsides to becoming a bigger group. You could end up being a lumbering giant. Example was how Mah Sing Group Bhd was able to buy some 25 hectares of land in Batu Ferringhi, Penang, for RM157 million. Bigger rivals had also bid for the land but Mah Sing was able to win as it moved faster than the competition.
Why the deluge of M&A activities in the sector? It is attributed it to a combination of reasons …
In the cases of Sunrise-UEM Land and MRCB-IJM Land , it is hoped that through these mergers, the government-linked companies (GLCs) can move forward to stamp their mark as regional champions.
Another reason for the current (N0v 2010) consolidation could be players trying to get a bigger slice of land redevelopment projects created by the proposed mass rapid transit (MRT) system.
The mergers between the GLCs and private companies show that there is a significant push for execution and performance. There is now (Nov 2010) a greater urgency for M&As. The formation of two large companies from the mergers of UEM Land-Sunrise and IJM Land-MRCB would pose a threat to other smaller companies in that the former will have more resources and liquidity.
Another disadvantage for these entities which on a stand-alone basis were not too appealing to foreign investors given their size (or lack of it), would post-merger have the economies of scale to draw these investors' attention.
The bigger size of these companies will make them more investable to foreign investors. These companies will now (Nov 2010) be able to compete with their regional counterparts.
Indeed Malaysian corporates are entering an interesting phase in the market. For the first time, GLCs are actively looking for expertise from the private sector to ready themselves for the next phase of development.
In Malaysia , all major land banks are government-owned. The reason why private sector companies such as Sunrise and IJM Land are roped in, is because they have the branding and expertise. Hence, what you're seeing now (Nov 2010) is not just the making of bigger companies, but stronger ones.
If a property company has a good track record but is a small player, it may not be good enough as the company does not have the balance sheet to acquire landbank. On the other hand, what the GLCs may lack in expertise or branding, they make up in landbank and government funds. So the public-private partnership is a formula that should work.
It also makes sense for GLCs to buy over property companies rather than land as valuations of these companies are still relatively attractive, whereas land prices have appreciated significantly. Driving home this point is the fact that property counters are trading at an average of 35% discount to their net asset value (NAV). In fact, most of them are also trading (Nov 2010) at a discount to their net tangible asset. Almost all property companies that merge can break up their assets and unlock more value out of their existing land bank.
There is expectation that the spate of recent (Nov 2010) proposed mergers will unleash another slew of merger activities among other industry players to avoid being left behind in the race to be bigger and better.
The Water Services Industry
Malaysia ’s government is considering bondholder proposals to avoid defaults by water companies operating in Selangor state, including possibly taking over the notes or offering loans.
The government has to look at the viability of these bonds.
Some bondholders asked the government to take control of the bonds, or extend “soft loans” to the Selangor state government’s water distribution company.
Malaysian Rating Corp downgraded about RM7 billion (US$2.2 billion) of bonds issued by seven water- related companies in September, citing regulatory and operational uncertainties.
Selangor hasn’t been able to reach an agreement with the central government and private companies over reorganization of the water industry.
The federal government doesn’t object to Selangor’s plan to buy water assets if it has the financial means to execute it. Implementation “should be done on a willing buyer, willing seller basis whilst honoring the sanctity of existing concession agreements.
Previous bids by Selangor to acquire water assets were rejected by local water distributors as too low. Though a revised proposal was accepted by Syarikat Pengeluar Air Sungai Selangor Sdn. and Konsortium Abass Sdn., the transaction failed when Syarikat Bekalan Air Selangor Sdn. and Puncak Niaga (M) Sdn Bhd continued to hold out for more.
The Malaysian central bank and the Finance Ministry is in talks with bondholders to “allay their anxiousness”. Malaysia ’s commitment to ensure the water will keep flowing, that is something that we will honor.”
The Electronics Industry
Despite the weak 3Q10 results, the technology sector is due to the potential re-rating catalysts. The catalysts were a strong growth in the key end-user segment of handphones and the advent of the corporate replacement cycle, which is admittedly a more gradual one.
The earnings profile for the tech stocks is not expected to improve in the near term as they battle inventory correction, seasonality, slower demand growth and the strong though reversing RM and high raw material costs. But this should start to reverse itself in 2H11 as the industry returns to more typical seasonal patterns. Certain product segments are also still exhibiting fairly robust growth.
Moreover, the long-term secular picture looks favourable given the growing use of electronic devices which require the input of chips and the continued trend of outsourcing. In addition, valuations (Dec 2010) for the semicon stocks are fairly attractive.
Meanwhile the North America-based manufacturers of semiconductor equipment posted US$1.51 billion in orders in November 2010 (three-month average basis) and a book-to-bill ratio of 0.96.
The book-to-bill ratio of 0.96, means that US$96 worth of orders were received for every US$100 of product billed for the month, was the lowest since June 2009’s ratio of 0.80.
The three-month average of worldwide bookings in November 2010 was US$1.51 billion. The bookings figure is 5.3% lower than the final October 2010 level of US$1.59 billion, and is 90.6% above the US$791.8 million in orders posted in November 2009.
The three-month average of worldwide billings in November 2010 was US$1.57 billion. The billings figure is down 3.4% from the final October 2010 level of US$1.62 billion, and is 110.7% above the November 2009 billings level of US$744.2 million.
Following a historic growth period and 18 months of sequential growth, and in accordance with seasonal trends, sales of semiconductor equipment eased in November 2010 This tracks the bookings trend which peaked in July 2010.
The SEMI book-to-bill is a ratio of three-month moving averages of worldwide bookings and billings for North American-based semiconductor equipment manufacturers.
The Rubber/Rubber Glove Industry
The 44.7% decline in the earnings of Malaysia ’s largest glove producer, Top Glove Corp Bhd, is not a sign of things to come for the other glove manufacturers.
According to analysts and industry players, the existing headwinds may indicate tougher times for Malaysian glove manufacturers, but not all earnings profiles are the same.
The financial performance of manufacturers will hinge on their respective product mix and raw material cost structures.
Top Glove was the most affected among the six listed glove manufacturers in Malaysia due to its portfolio of mainly natural rubber or latex gloves. The others are less affected due to their different product mix comprising latex and nitrile gloves.
Other listed glove manufacturers in the country include Supermax Corp Bhd, Kossan Rubber Industries Bhd, Hartalega Holdings Bhd, Latexx Partners Bhd and Adventa Bhd.
Top Glove’s results were not necessarily an indication of how other players will fare in the current environment (Dec 2010) of costlier latex and a weakening US dollar.
Glove players will have less bargaining power [to dictate prices] as there is no shortage of supply. Demand for gloves will, however, still be there but not the “extra demand” seen during recent outbreaks of disease.
Top Glove is most exposed to the rising price of latex as some 90% of its revenue is from gloves made from latex. The other producers tend to have a larger proportion of nitrile gloves, which use synthetic rubber as their core raw material. Nitrile gloves make up about 7% of Top Glove’s revenue. In contrast, nitrile glove sales make up 83% and 38% of the revenue of Hartalega and Kossan, respectively.
Looking ahead, industry observers foresee normalisation of glove demand in the short term, but expects business to pick up in the long term. This will be helped by demand from emerging markets and the global healthcare industry.
Apart from demand normalisation the manufacturer, capable of producing some 34 billion gloves annually, the industry also had to contend with excess capacity. Another crucial concern is that buyers are opting to delay purchases and keep inventory at a minimum as they wait for glove prices to decline.
Nevertheless, this adverse situation will possibly lead to further consolidation among the industry players and Top Glove is in a good position to further enlarge its business when the opportunities arise.
Top Glove plans to dedicate more production lines to manufacture synthetic rubber or nitrile gloves, which fetch higher margins and are not subject to the volatility in natural rubber prices. Synthetic rubber is made from butadiene, a by-product of crude oil. Meanwhile, critics said “a massive and sustained switch to nitrile may not be sustainable” for Top Glove because the cost of nitrile gloves is linked to crude oil prices, which are also rising.
Escalating latex prices will prompt consolidation in the rubber glove industry … a synergistic M&As.
Customer buying trends have shifted to maintaining lowest inventory levels as latex prices remain high. The first half of the year is seasonally a low-production period for latex and, thus, an indication of high prices, glove inventory levels may be kept low in the next few months. However, inventory is expected to rise as the market adjusts to the expectations of higher latex prices.
The Automotive Industry
The Malaysian Automotive Institute (MAI) is understood to have submitted its proposals and recommendations pertaining to the consolidation of the automotive
sector to the government for a final decision on the merger between the players.
Industry sources said MAI had interviewed several of them and submitted the proposal to the government, with a decision likely to be made soon.
MAI was incorporated on April 16 2010 to function as an independent non-profit organisation under the auspices of the Ministry of International Trade and Industry (Miti).
According to its website, MAI serves as a focal point and coordination centre for the development of the local automotive industry in all related matters, including formulating the national automotive policy and coordinating automotive-related research and development, among others.
The consolidation of the auto sector, if it happens, is widely expected to entail a merger between two national automakers, Proton Holdings Bhd and Perusahaan Otomobil
Kedua Sdn Bhd (Perodua), and could possibly include some other players as well.
Meanwhile the government will decide on Nov 2010 whether to allow five foreign carmakers to set up assembly plants in Malaysia .
International Trade and Industry Minister Datuk Seri Mustapa Mohamed said it is still looking through the applications and expected to make an announcement soon.
In September 2010, Malaysian Investment Development Authority was evaluating five foreign carmakers interested in setting up assembly and manufacturing facilities in the country.
Among companies interested included those from Europe, India , China , Japan and South Korea . Mustapa did not dismiss the possibility of the companies using existing facilities for their production.
With the recent review of the National Automotive Policy, foreign carmakers can wholly own facilities that produce luxury vehicles with engine capacity of more than 1,800cc and costing more than RM150,000 per unit.
The Education Industry
While the property sector now (Nov 2010) is in a flurry of consolidation through mergers and acquisitions, the education sector still remains “under the radar”. However, the fast growing private education business in Malaysia, which is valued to be worth some RM7.2 billion, seems to be stirring of late.
Ekuiti Nasional Bhd’s (EKUINAS) recent 51 per cent acquisition of APIIT/UCTI Education Group from Sapura Resources Bhd is seen as trailblazer for consolidation in the private education sector.
This is because of more outright acquisitions, mergers and the entry of fresh foreign players in time to come.
There will be more mergers in the works as education entities that don't merge may risk being left behind. There is urgency for smaller players to bulk up for scale and build up quality as the more renowned and established international players which have made their presence in Malaysia pose healthy competition to the growing market.
This is more so as education has been identified as one of 12 National Key Economic Areas (NKEAs), with private education leading the charge in catapulting Malaysia into the fastest growing education hub in South East Asia .
Among the listed educational entities are Sapura Resources, SEG International Bhd, Help International Corp Bhd and Masterskill (M) Education Group Bhd.
SPECULATION ON ADVENTA...BUT CIMB REDUCES TARGET PRICE FROM RM3.79 TO RM3.14
ADVENTA
Speculation that it could be a potential acquisition target by a US healthcare firm based on US.
The US based firm is looking at Adventa to obtain exposure to the rubber glove sector for upstream integration of its healthcare business.
The US based firm had previously been in preliminary talks with Top Glove but had decided that Top Glove was too big a mfg which would be too expensive to purchase.
Sources say any buyout of Adventa will be done at a PER of 11 times multiple of FY2011’s forecast earnings … RM3.40.
from CIMB:
Adventa - Not a firm grip on 4Q10 headwinds (CIMB)
At 82% of our forecast and 83% of consensus numbers, Adventa’s FY10/10 core net profit which excludes a RM7.6m one-off tax writeback was below expectations due to higher raw material costs and a weak US$. To our surprise, Adventa declared a first and final tax-exempt dividend of 7 sen, much higher than our 4 sen forecast, prompting us to raise our FY11-12 DPS estimates by 3.6-4.5 sen.
After accounting for higher latex cost and a weaker US$, we lower our FY11-12 EPS forecasts by 10-11%.
This reduces our target price from RM3.79 to RM3.14, pegged to an unchanged 10.2x CY11 P/E or a 30% discount to Top Glove’s target P/E of 14.5x.
We continue to rate Adventa an OUTPERFORM given the potential re-rating catalysts of 1) higher OBM glove sales, 2) establishment of own distribution channels, and 3) better product mix from higher nitrile sales.
PRICE:RM3.14
BJCorp/BJtoto:
BJToto confirmed that it had preliminary discussions within the company on a possible corporate exercise that may see the entry of a strategic investor. While there has been initial contact with several potential strategic investors, no negotiations have been conducted with any strategic investor at this juncture as internal discussions and planning are still ongoing.
BToto’s owner — Tan Sri Vincent Tan — has been buying back the company’s shares. Filings with Bursa Malaysia show that from end-July 2010 up until Dec 21 2010, Tan, through BToto’s holding company Berjaya Corp, has been acquiring the gaming company’s shares on the open market.
Tan had not disposed any of his stake in BToto during that period. Tan’s stake in the gaming company has increased to 53.63% or 717.37 million shares in a six-month time frame, from 680.2 million shares, or a 50.854% stake (direct and indirect), at the end of June 2010.
IRCB warrants exercise price is 25 sen.
Sunrise as of yesterday UEM Land has received 91.57% of Sunrise , the offer closes on 07/01/2011, suspension on 31/12/2010.
Speculation that it could be a potential acquisition target by a US healthcare firm based on US.
The US based firm is looking at Adventa to obtain exposure to the rubber glove sector for upstream integration of its healthcare business.
The US based firm had previously been in preliminary talks with Top Glove but had decided that Top Glove was too big a mfg which would be too expensive to purchase.
Sources say any buyout of Adventa will be done at a PER of 11 times multiple of FY2011’s forecast earnings … RM3.40.
from CIMB:
Adventa - Not a firm grip on 4Q10 headwinds (CIMB)
At 82% of our forecast and 83% of consensus numbers, Adventa’s FY10/10 core net profit which excludes a RM7.6m one-off tax writeback was below expectations due to higher raw material costs and a weak US$. To our surprise, Adventa declared a first and final tax-exempt dividend of 7 sen, much higher than our 4 sen forecast, prompting us to raise our FY11-12 DPS estimates by 3.6-4.5 sen.
After accounting for higher latex cost and a weaker US$, we lower our FY11-12 EPS forecasts by 10-11%.
This reduces our target price from RM3.79 to RM3.14, pegged to an unchanged 10.2x CY11 P/E or a 30% discount to Top Glove’s target P/E of 14.5x.
We continue to rate Adventa an OUTPERFORM given the potential re-rating catalysts of 1) higher OBM glove sales, 2) establishment of own distribution channels, and 3) better product mix from higher nitrile sales.
PRICE:RM3.14
BJCorp/BJtoto:
BJToto confirmed that it had preliminary discussions within the company on a possible corporate exercise that may see the entry of a strategic investor. While there has been initial contact with several potential strategic investors, no negotiations have been conducted with any strategic investor at this juncture as internal discussions and planning are still ongoing.
BToto’s owner — Tan Sri Vincent Tan — has been buying back the company’s shares. Filings with Bursa Malaysia show that from end-July 2010 up until Dec 21 2010, Tan, through BToto’s holding company Berjaya Corp, has been acquiring the gaming company’s shares on the open market.
Tan had not disposed any of his stake in BToto during that period. Tan’s stake in the gaming company has increased to 53.63% or 717.37 million shares in a six-month time frame, from 680.2 million shares, or a 50.854% stake (direct and indirect), at the end of June 2010.
IRCB warrants exercise price is 25 sen.
Sunrise as of yesterday UEM Land has received 91.57% of Sunrise , the offer closes on 07/01/2011, suspension on 31/12/2010.
Musa hitam should step down to show Sime Darby as trusted entity not SAPU DASYHAT OR SAPU DALANG OR SHIT DEVIL
Sime sues ex-CEO, 4 others
Sime Darby is claiming at least RM338 million from the five over their alleged roles in the RM1.7 billion losses suffered by its energy and utilities division this year.
Conglomerate Sime Darby Bhd has sued its former group chief executive officer Datuk Seri Ahmad Zubir Murshid and four senior executives over their alleged roles in the massive RM1.7 billion losses suffered by its energy and utilities (E&U) division this year.
The executives, all under the E&U division, are former Sime Darby Energy Sdn Bhd vice president Datuk Mohd Shukri Baharom, chief financial officer Abdul Rahim Ismail, head of oil and gas Abdul Kadir Alias and senior general manager of Sime Darby Engineering, Mohd Zaki Othman.
“They are being sued for breaches of duties owed to the Sime Darby Group.
“The Sime Darby Group is claiming from the defendants, inter alia, restitution for monies wrongfully paid out, damages for losses suffered, loss of profit, aggravated damages and costs,” it said in a statement yesterday.
Zubir and the other executives could not be reached for comment.
Sime is claiming at least RM338 million from the five, with almost half of that from Zubir and Shukri. It is also seeking damages for losses caused by them in three projects and any aggravated or exemplary damages.
Specifically, the suit deals with three projects, namely the Bulhanine and Maydan Mahzam project with Qatar Petroleum, the Maersk Oil Qatar project and building of marine vessels for the Maersk Oil Qatar project.
The suit was filed at the Kuala Lumpur High Court yesterday.
Sime recorded RM1.7 billion in cost overruns for the three projects and the Bakun hydroelectric dam project earlier this year, causing it to allocate a RM2.1 billion provision.
As a result, the government-linked company in July established an investigative reports review committee, carried out a forensic audit and appointed legal advisers.
Zubir was asked to take a leave of absence in May and the following month, Datuk Mohd Bakke Mohd Salleh was named acting president and group CEO.
The extra costs led Sime to post losses in the third quarter to March 2010, its first quarterly loss since its mega merger with state-owned Golden Hope Plantations Bhd and Kumpulan Guthrie Bhd in December 2007.
Losses dragged on to the fourth quarter ending in June 2010 but Sime continued to be profitable for the full year and has bounced back with a first-quarter profit for fiscal 2011.
Read more: Sime sues ex-CEO, 4 others http://www.btimes.com.my/Current_News/BTIMES/articles/20101224083251/Article/#ixzz18zcqPSpP
Sime Darby is claiming at least RM338 million from the five over their alleged roles in the RM1.7 billion losses suffered by its energy and utilities division this year.
Conglomerate Sime Darby Bhd has sued its former group chief executive officer Datuk Seri Ahmad Zubir Murshid and four senior executives over their alleged roles in the massive RM1.7 billion losses suffered by its energy and utilities (E&U) division this year.
The executives, all under the E&U division, are former Sime Darby Energy Sdn Bhd vice president Datuk Mohd Shukri Baharom, chief financial officer Abdul Rahim Ismail, head of oil and gas Abdul Kadir Alias and senior general manager of Sime Darby Engineering, Mohd Zaki Othman.
“They are being sued for breaches of duties owed to the Sime Darby Group.
“The Sime Darby Group is claiming from the defendants, inter alia, restitution for monies wrongfully paid out, damages for losses suffered, loss of profit, aggravated damages and costs,” it said in a statement yesterday.
Zubir and the other executives could not be reached for comment.
Sime is claiming at least RM338 million from the five, with almost half of that from Zubir and Shukri. It is also seeking damages for losses caused by them in three projects and any aggravated or exemplary damages.
Specifically, the suit deals with three projects, namely the Bulhanine and Maydan Mahzam project with Qatar Petroleum, the Maersk Oil Qatar project and building of marine vessels for the Maersk Oil Qatar project.
The suit was filed at the Kuala Lumpur High Court yesterday.
Sime recorded RM1.7 billion in cost overruns for the three projects and the Bakun hydroelectric dam project earlier this year, causing it to allocate a RM2.1 billion provision.
As a result, the government-linked company in July established an investigative reports review committee, carried out a forensic audit and appointed legal advisers.
Zubir was asked to take a leave of absence in May and the following month, Datuk Mohd Bakke Mohd Salleh was named acting president and group CEO.
The extra costs led Sime to post losses in the third quarter to March 2010, its first quarterly loss since its mega merger with state-owned Golden Hope Plantations Bhd and Kumpulan Guthrie Bhd in December 2007.
Losses dragged on to the fourth quarter ending in June 2010 but Sime continued to be profitable for the full year and has bounced back with a first-quarter profit for fiscal 2011.
Read more: Sime sues ex-CEO, 4 others http://www.btimes.com.my/Current_News/BTIMES/articles/20101224083251/Article/#ixzz18zcqPSpP
Wednesday, December 22, 2010
'Thoughtless' palm oil cluster project destroying mangrove forests
Thu, 23 Dec 2010 10:51
By Luke Rintod
KOTA KINABALU: The Sabah government's POIC (Palm Oil Industry Cluster) project in Lahad Datu in the east coast of the state has come under blistering attack from an NGO for what it terms as 'a blatant disregard' for the environment and the eco-system in the area.
Sabah Environment Protection Association (Sepa) president, Wong Tack, said the billion-ringgit POIC is already destroying the eco-system of ancient mangrove forest areas in Lahad Datu that nature took millions of years to nurture.
"POIC is managed by dynamic and educated people, but in its push for the so-called cluster development of palm oil industry, POIC is degrading and destroying the eco-system.
"It is reducing the productivity of Sabah’s marine wealth, and hence affecting the livelihood of fishermen around the Darvel Bay area in Lahad Datu.
"They are all part and parcel of a highly productive eco-system that is a Priority Conservation Area within the one million sq km in the Sulu-Sulawesi areas.
"What alarms us greatly, and the aquaculture and tourism industries in Darvel Bay in particular, is that the three-phase development of POIC has the potential of eventually clearing 4,450 acres of prime mangrove forests in Lahad Datu," he told a press conference in Tanjung Aru here yesterday.
Wong said the first phase had already cleared 550 acres of mangroves while reclamation work of the second phase cleared another 600 acres.
"The third phase is due and may well clear a massive 3,300 acres of prime mangroves.
"Sepa believes there are vast tracts of lands in Sabah’s east coast which POIC could have used to develop, without hurting the seafood eco-system service of 4,000-plus acres of mangrove forests," he said.
Irreplaceable marine life
Studies have shown that tropical mangrove forest eco-systems are a vibrant environment which nurture and support immense varieties of sea life which inturn provide nutrients and foods for us.
Marine life are no different from human in one respect – they migrate to and congregate in places that teem with food.
"Mangrove forests function like a nutrient or ‘feed factory' for a huge range of commercial species of fish, prawns, and crabs via fallen leaves, branches and prop roots that attract and establish an intricate planktonic food web which feeds the juveniles of many of the species before they are strong enough to face the treacherous open sea, " he said.
Wong said there is a need for a review of the whole POIC project before it exacted an irreversible catastrophe on the eco-system in the east coast.
He said a recent survey by Sepa at the Phase 2 of POIC project found freshly reclaimed land that had buried hundreds of acres of mangroves without any appropriate environmental mitigation or protection.
The reclaimation had resulted in a free flow of mud and sediments straight into the pristine marine environment of Darvel Bay.
"Sepa didn’t find a single retention pond that should have been sectioned out appropriately to capture the erosion and sedimentary discharge to stop them running straight into the sea.
"Because of that, aquaculture farmers are angry as pollution if not prevented will eventually destroy not only fish farming and seaweed culture but also the beauty which will eventually harm the effort to promote eco-tourism development in the area," he said.
Lamenting further Wong added that the "60-metre of buffer zone" had also been stripped clean.
"What's the penalty for this? What's the action? Where is the relevance of EIA? Is EIA merely a useless paper work?" he asked.
He said when aquaculture farmers protested about the violations recently, POIC argued that it would replace the buried mangrove forest with a land elsewhere.
"But a destroyed eco-system is not replaceable by mere trees. It is like replacing a chopped head with a hand..." he argued.
Free Malaysia Today
By Luke Rintod
KOTA KINABALU: The Sabah government's POIC (Palm Oil Industry Cluster) project in Lahad Datu in the east coast of the state has come under blistering attack from an NGO for what it terms as 'a blatant disregard' for the environment and the eco-system in the area.
Sabah Environment Protection Association (Sepa) president, Wong Tack, said the billion-ringgit POIC is already destroying the eco-system of ancient mangrove forest areas in Lahad Datu that nature took millions of years to nurture.
"POIC is managed by dynamic and educated people, but in its push for the so-called cluster development of palm oil industry, POIC is degrading and destroying the eco-system.
"It is reducing the productivity of Sabah’s marine wealth, and hence affecting the livelihood of fishermen around the Darvel Bay area in Lahad Datu.
"They are all part and parcel of a highly productive eco-system that is a Priority Conservation Area within the one million sq km in the Sulu-Sulawesi areas.
"What alarms us greatly, and the aquaculture and tourism industries in Darvel Bay in particular, is that the three-phase development of POIC has the potential of eventually clearing 4,450 acres of prime mangrove forests in Lahad Datu," he told a press conference in Tanjung Aru here yesterday.
Wong said the first phase had already cleared 550 acres of mangroves while reclamation work of the second phase cleared another 600 acres.
"The third phase is due and may well clear a massive 3,300 acres of prime mangroves.
"Sepa believes there are vast tracts of lands in Sabah’s east coast which POIC could have used to develop, without hurting the seafood eco-system service of 4,000-plus acres of mangrove forests," he said.
Irreplaceable marine life
Studies have shown that tropical mangrove forest eco-systems are a vibrant environment which nurture and support immense varieties of sea life which inturn provide nutrients and foods for us.
Marine life are no different from human in one respect – they migrate to and congregate in places that teem with food.
"Mangrove forests function like a nutrient or ‘feed factory' for a huge range of commercial species of fish, prawns, and crabs via fallen leaves, branches and prop roots that attract and establish an intricate planktonic food web which feeds the juveniles of many of the species before they are strong enough to face the treacherous open sea, " he said.
Wong said there is a need for a review of the whole POIC project before it exacted an irreversible catastrophe on the eco-system in the east coast.
He said a recent survey by Sepa at the Phase 2 of POIC project found freshly reclaimed land that had buried hundreds of acres of mangroves without any appropriate environmental mitigation or protection.
The reclaimation had resulted in a free flow of mud and sediments straight into the pristine marine environment of Darvel Bay.
"Sepa didn’t find a single retention pond that should have been sectioned out appropriately to capture the erosion and sedimentary discharge to stop them running straight into the sea.
"Because of that, aquaculture farmers are angry as pollution if not prevented will eventually destroy not only fish farming and seaweed culture but also the beauty which will eventually harm the effort to promote eco-tourism development in the area," he said.
Lamenting further Wong added that the "60-metre of buffer zone" had also been stripped clean.
"What's the penalty for this? What's the action? Where is the relevance of EIA? Is EIA merely a useless paper work?" he asked.
He said when aquaculture farmers protested about the violations recently, POIC argued that it would replace the buried mangrove forest with a land elsewhere.
"But a destroyed eco-system is not replaceable by mere trees. It is like replacing a chopped head with a hand..." he argued.
Free Malaysia Today
ZECON--IN A YO-YO SITUATION......AND AWAITING PAYMENT FROM JKR SARAWAK
PETALING JAYA: Malaysian Rating Corp Bhd (MARC) said it would be premature for the credit rating agency to remove Matang Highway Sdn Bhd from its MARCWatch Negative list before the latter's sinking fund was fully funded by February 2011.
The purpose of the MARCWatch placement is to highlight a potential shortfall and that there has been a departure from the scheduled build of the sinking fund, MARC told StarBiz in an email statement yesterday.
It said the Bursa Malaysia filing by Zecon Bhd, which is Matang's holding company, was likely aimed at providing assurance that progress payments from Jabatan Kerja Raya (JKR) Sarawak would come in and might be relied upon to cover the present shortfall in the sinking fund account prior to the maturity of the sukuk.
If Zecon receives the full payment of claims before February 2011, they will be in a position to redeem the sukuk in full (in May 2011). The default risk on the sukuk diminishes and MARC will remove the MARCWatch Negative thereafter, it said.
MARC said that a covenant breach would occur if the sinking fund was not fully funded in February 2011 as per the terms of the sukuk.
We may then downgrade it to C if there is a covenant breach in February 2011 and to D in May 2011 if there is a default on the final maturity date of the sukuk, it added.
To recap, MARC placed its AIS rating on Matang's RM70mil sukuk musharakah on MARCWatch Negative on Monday, saying the rating reflected concern about Matang's ability to adequately meet the May 2011 redemption of its remaining RM15mil sukuk. The payment obligations under the fully amortising sukuk are primarily funded by progress payments collected from JKR Sarawak under a turnkey contract to construct the Matang highway, linking Kuching to Sarawak's new administrative centre, according to MARC. It added that Matang needed another RM1.898mil to meet the portion of its upcoming payment obligations under the sukuk which were currently not covered by existing balances in designated accounts, namely the sinking fund account and the finance service ratio account.
However, Zecon Bhd responded by saying that it was confident of its ability to meet the May 2011 redemption deadline of its remaining RM15mil sukuk once it has received two progress payments from JKR Sarawak.
The company also said in a Bursa Malaysia filing on Wednesday that it was awaiting payments of two duly certified claims totalling RM5.55mil from JKR Sarawak.
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Matang’s sukuk on MARCWatch Negative
PETALING JAYA: Malaysian Rating Corp Bhd (MARC) has placed its AIS rating on Matang Highway Sdn Bhd's RM70mil sukuk musharakah on MARCWatch Negative.
MARC said in a statement the rating action reflected concern about Matang's ability to adequately meet the May 2011 redemption of its remaining RM15mil outstanding sukuk. Matang is a wholly-owned single-purpose funding vehicle of Zecon Bhd.
Its payment obligations under the fully-amortising sukuk are primarily funded by progress payments collected from Jabatan Kerja Raya Sarawak under a turnkey contract to construct a highway linking Kuching City to Sarawak's new Federal Administrative Centre (Matang route project).
Matang needs additional liquidity of RM1.898mil to meet the portion of its upcoming payment obligations under the sukuk which are currently not covered by existing balances in designated accounts.
The construction progress on the second and final phase of the Matang route project continues to be substantially behind schedule, MARC said.
MARC said it understood that Zecon was currently negotiating a RM31.4mil debt restructuring.
Given Zecon's own financial difficulties, MARC regards the likelihood of sufficient and timely financial support from Zecon as uncertain, it said.
MARC said the rating would be lowered should Matang not meet the revised scheduled payments into the sinking fund account (SFA) by Dec 19.
Conversely, if it's SFA and finance service reserve account balances are sufficient to fully fund the final redemption of the sukuk by February 2011, MARC will remove Matang's rating from MARCWatch Negative.
The purpose of the MARCWatch placement is to highlight a potential shortfall and that there has been a departure from the scheduled build of the sinking fund, MARC told StarBiz in an email statement yesterday.
It said the Bursa Malaysia filing by Zecon Bhd, which is Matang's holding company, was likely aimed at providing assurance that progress payments from Jabatan Kerja Raya (JKR) Sarawak would come in and might be relied upon to cover the present shortfall in the sinking fund account prior to the maturity of the sukuk.
If Zecon receives the full payment of claims before February 2011, they will be in a position to redeem the sukuk in full (in May 2011). The default risk on the sukuk diminishes and MARC will remove the MARCWatch Negative thereafter, it said.
MARC said that a covenant breach would occur if the sinking fund was not fully funded in February 2011 as per the terms of the sukuk.
We may then downgrade it to C if there is a covenant breach in February 2011 and to D in May 2011 if there is a default on the final maturity date of the sukuk, it added.
To recap, MARC placed its AIS rating on Matang's RM70mil sukuk musharakah on MARCWatch Negative on Monday, saying the rating reflected concern about Matang's ability to adequately meet the May 2011 redemption of its remaining RM15mil sukuk. The payment obligations under the fully amortising sukuk are primarily funded by progress payments collected from JKR Sarawak under a turnkey contract to construct the Matang highway, linking Kuching to Sarawak's new administrative centre, according to MARC. It added that Matang needed another RM1.898mil to meet the portion of its upcoming payment obligations under the sukuk which were currently not covered by existing balances in designated accounts, namely the sinking fund account and the finance service ratio account.
However, Zecon Bhd responded by saying that it was confident of its ability to meet the May 2011 redemption deadline of its remaining RM15mil sukuk once it has received two progress payments from JKR Sarawak.
The company also said in a Bursa Malaysia filing on Wednesday that it was awaiting payments of two duly certified claims totalling RM5.55mil from JKR Sarawak.
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Matang’s sukuk on MARCWatch Negative
PETALING JAYA: Malaysian Rating Corp Bhd (MARC) has placed its AIS rating on Matang Highway Sdn Bhd's RM70mil sukuk musharakah on MARCWatch Negative.
MARC said in a statement the rating action reflected concern about Matang's ability to adequately meet the May 2011 redemption of its remaining RM15mil outstanding sukuk. Matang is a wholly-owned single-purpose funding vehicle of Zecon Bhd.
Its payment obligations under the fully-amortising sukuk are primarily funded by progress payments collected from Jabatan Kerja Raya Sarawak under a turnkey contract to construct a highway linking Kuching City to Sarawak's new Federal Administrative Centre (Matang route project).
Matang needs additional liquidity of RM1.898mil to meet the portion of its upcoming payment obligations under the sukuk which are currently not covered by existing balances in designated accounts.
The construction progress on the second and final phase of the Matang route project continues to be substantially behind schedule, MARC said.
MARC said it understood that Zecon was currently negotiating a RM31.4mil debt restructuring.
Given Zecon's own financial difficulties, MARC regards the likelihood of sufficient and timely financial support from Zecon as uncertain, it said.
MARC said the rating would be lowered should Matang not meet the revised scheduled payments into the sinking fund account (SFA) by Dec 19.
Conversely, if it's SFA and finance service reserve account balances are sufficient to fully fund the final redemption of the sukuk by February 2011, MARC will remove Matang's rating from MARCWatch Negative.
concern on Olympia's weak profitability measures and earnings sustainability for the company's property and gaming divisions
PETALING JAYA: Malaysian Rating Corp Bhd (MARC) is maintaining its negative outlook rating on Olympia Industries Bhd while affirming the company's RM72.98mil redeemable unsecured loan stocks (RULS) at BB-.
The rating agency said in a press release that the action was due to continued concern on Olympia's weak profitability measures and earnings sustainability for the company's property and gaming divisions.
It noted the slow progress made in the company's property project while the gaming segment would be negatively impacted by the 2% increase in pool betting duty effective from June 2010.
MARC said Olympia's liquidity position as reflected by cash and cash equivalents of RM34mil as of September 30 was inadequate to meet its short term debt of RM49.6mil, which included the redemption of RM12.9mil under the RULS in April 2011.
In a separate announcement, the rating agency said DutaLand Bhd's outlook was revised to stable from negative while the company's outstanding RM26.3mil RULS was affirmed at B.
“The affirmed rating and outlook revision incorporates DutaLand's improved operating performance, although earnings remain vulnerable to the company's ability to execute the later phases of its high-end property project,” it said.
and its sizeable borrowings relative to its cash generation ability,” it added.
The rating agency said in a press release that the action was due to continued concern on Olympia's weak profitability measures and earnings sustainability for the company's property and gaming divisions.
It noted the slow progress made in the company's property project while the gaming segment would be negatively impacted by the 2% increase in pool betting duty effective from June 2010.
MARC said Olympia's liquidity position as reflected by cash and cash equivalents of RM34mil as of September 30 was inadequate to meet its short term debt of RM49.6mil, which included the redemption of RM12.9mil under the RULS in April 2011.
In a separate announcement, the rating agency said DutaLand Bhd's outlook was revised to stable from negative while the company's outstanding RM26.3mil RULS was affirmed at B.
“The affirmed rating and outlook revision incorporates DutaLand's improved operating performance, although earnings remain vulnerable to the company's ability to execute the later phases of its high-end property project,” it said.
and its sizeable borrowings relative to its cash generation ability,” it added.
MARC has affirmed the rating of Olympia Industries Bhd's outstanding RM72.981 million RULS--NEGATIVE OUTLOOK; LCL--DELISTED SOON
LCL:
LCL Corp Bhd has informed the local bourse that it does not have a regularisation plan and hence will not appeal against the suspension of trading in the company’s shares.
On Dec 15 2010, LCL was informed by Bursa that trading of the company’s shares would be suspended with effect from tomorrow and subsequently delisted on Dec 27 unless an appeal is submitted on or before Dec 22 2010.
BJCorp/BJtoto:
Sources say BCorp has hired investment bank to look into the possibility of undertaking a corporate exercise that could see the entry of a strategic private investors into the group’s cash cow BJTOTO. The bankers are exploring the a few possible corporate exercises, which include the one Magnum corp underwent a couple of years ago that had involved its privatization. However BJCorp’s spokeperson said it is not aware of any exercise and are not able to offer any further comments.
PLUS:
In a move aimed at ensuring the seriousness and credibility of bidders for PLUS Expressways Bhd, it wants offerors to put down a refundable deposit of RM50mil by Jan 10, 2011. The deposit would form part of the purchase consideration to be paid by the successful bidder for its business. Sources also say Jelas Ulung Sdn Bhd is likely to submit a rm50 million cash deposit and meet the minimum disclosure requirements.
Industry observers believe the board of PLUS would have to consider this fresh offer. Should Khazanah/UEM and EPF be allowed to vote on the new offer, they will accept it or beat the RM5.20 offer with a new bid.
As such, the RM5.20 offer serves as the new floor price for PLUS.
However, critics said that investors should not put too much hope on this higher offer materialising, as it was highlighted earlier by Khazanah that it does not simply sell strategic assets to parties without a track record.
Olympia:
It stressed that it was still pursuing its bid to acquire gaming company Pam Malaysian Pools Sdn Bhd. Sources say that businessmen linked to MCA and the Cheng family together with Filipino gaming tycoon Roberto were front runners for Pan Malaysian Pools.
Meanwhile MARC has affirmed the rating of Olympia Industries Bhd's outstanding RM72.981 million nominal value redeemable unsecured loan stocks (RULS) at 'BB-' with negative outlook.
The rating action incorporated continued concern about the group's weak profitability measures and earnings sustainability for its property and gaming divisions. Olympia 's property project has made slow progress and the gaming segment would be negatively impacted by the two per cent increase in pool betting duty effective June 2010.
The Rubber Glove Industry:
Rubber prices climbed to new high putting more pressure on the margins of rubber glove mfgs, which are already grappling with oversupply and normalising demand issues.
IRCB:
IRCB rights issue shares will be listed tomorrow (24/12/2010) and ranks pari.
24/12 & 31/12 TRADING AS USUAL:
PLEASE TAKE NOTE THAT 24 Dec 2010 and 31 Dec 2010, MARKET IS TRADING AS USUAL.
IT IS FULL DAY TRADING AT Bursa.
LCL Corp Bhd has informed the local bourse that it does not have a regularisation plan and hence will not appeal against the suspension of trading in the company’s shares.
On Dec 15 2010, LCL was informed by Bursa that trading of the company’s shares would be suspended with effect from tomorrow and subsequently delisted on Dec 27 unless an appeal is submitted on or before Dec 22 2010.
BJCorp/BJtoto:
Sources say BCorp has hired investment bank to look into the possibility of undertaking a corporate exercise that could see the entry of a strategic private investors into the group’s cash cow BJTOTO. The bankers are exploring the a few possible corporate exercises, which include the one Magnum corp underwent a couple of years ago that had involved its privatization. However BJCorp’s spokeperson said it is not aware of any exercise and are not able to offer any further comments.
PLUS:
In a move aimed at ensuring the seriousness and credibility of bidders for PLUS Expressways Bhd, it wants offerors to put down a refundable deposit of RM50mil by Jan 10, 2011. The deposit would form part of the purchase consideration to be paid by the successful bidder for its business. Sources also say Jelas Ulung Sdn Bhd is likely to submit a rm50 million cash deposit and meet the minimum disclosure requirements.
Industry observers believe the board of PLUS would have to consider this fresh offer. Should Khazanah/UEM and EPF be allowed to vote on the new offer, they will accept it or beat the RM5.20 offer with a new bid.
As such, the RM5.20 offer serves as the new floor price for PLUS.
However, critics said that investors should not put too much hope on this higher offer materialising, as it was highlighted earlier by Khazanah that it does not simply sell strategic assets to parties without a track record.
Olympia:
It stressed that it was still pursuing its bid to acquire gaming company Pam Malaysian Pools Sdn Bhd. Sources say that businessmen linked to MCA and the Cheng family together with Filipino gaming tycoon Roberto were front runners for Pan Malaysian Pools.
Meanwhile MARC has affirmed the rating of Olympia Industries Bhd's outstanding RM72.981 million nominal value redeemable unsecured loan stocks (RULS) at 'BB-' with negative outlook.
The rating action incorporated continued concern about the group's weak profitability measures and earnings sustainability for its property and gaming divisions. Olympia 's property project has made slow progress and the gaming segment would be negatively impacted by the two per cent increase in pool betting duty effective June 2010.
The Rubber Glove Industry:
Rubber prices climbed to new high putting more pressure on the margins of rubber glove mfgs, which are already grappling with oversupply and normalising demand issues.
IRCB:
IRCB rights issue shares will be listed tomorrow (24/12/2010) and ranks pari.
24/12 & 31/12 TRADING AS USUAL:
PLEASE TAKE NOTE THAT 24 Dec 2010 and 31 Dec 2010, MARKET IS TRADING AS USUAL.
IT IS FULL DAY TRADING AT Bursa.
Tuesday, December 21, 2010
股市指數 22/12
股市指數
22/12 5:00pm
吉隆坡綜合指數
1515.05 ▲9.87
新加坡海峽時報
3147.64 ▲7.79
香港恆生
23045.20 ▲51.33
台灣加權
8860.49 ▲32.70
東京日經
10346.50 ▼24.05
21/12 隔夜指數
紐約道瓊斯
11533.20 ▲55.03
納斯達克
2667.61 ▲18.05
股市指數
22/12 12:30pm
吉隆坡綜合指數
1509.89 ▲4.71
新加坡海峽時報
3149.91 ▲10.06
香港恆生
23134.00 ▲140.10
台灣加權
8855.18 ▲27.39
東京日經
10378.70 ▲8.12
21/12 隔夜指數
紐約道瓊斯
11533.20 ▲55.03
納斯達克
2667.61 ▲18.05
EXPECT KLCI TO BE 1508, 1518, 1528, 1533 ON 31/12/2010....
NEXT YEAR MARKET--1500--1568 (FIRST HALF)
22/12 5:00pm
吉隆坡綜合指數
1515.05 ▲9.87
新加坡海峽時報
3147.64 ▲7.79
香港恆生
23045.20 ▲51.33
台灣加權
8860.49 ▲32.70
東京日經
10346.50 ▼24.05
21/12 隔夜指數
紐約道瓊斯
11533.20 ▲55.03
納斯達克
2667.61 ▲18.05
股市指數
22/12 12:30pm
吉隆坡綜合指數
1509.89 ▲4.71
新加坡海峽時報
3149.91 ▲10.06
香港恆生
23134.00 ▲140.10
台灣加權
8855.18 ▲27.39
東京日經
10378.70 ▲8.12
21/12 隔夜指數
紐約道瓊斯
11533.20 ▲55.03
納斯達克
2667.61 ▲18.05
EXPECT KLCI TO BE 1508, 1518, 1528, 1533 ON 31/12/2010....
NEXT YEAR MARKET--1500--1568 (FIRST HALF)
亿达控股的主要商业活动包括精密压印、半导体加工和自动化。该公司在今年9月结束的2010财政年首3季录取了600万令吉的净盈利。这比去年同期的160万令吉净盈利猛涨接近3倍。该公司刚在日前宣布收购两家公司进军油棕业而把业务多元化至资源领域。
亿达控股WA 印尼煤矿增添投机价值
2010-11-29 13:48 温世麟
亿达控股的股价在最近暴起暴跌。这一切可能都因该公司进军资源领域惹的祸。该公司股价在两个月内上涨一倍至14仙可是却在最近两周大幅调整并在上周五两韩关系紧张的时候暴跌到9.5仙水平。其凭单JOTECH-WA更是在巨大交易量中被投资者疯狂抛售到3仙水平，比前一周最高位的5仙降了四成。
亿达控股的主要商业活动包括精密压印、半导体加工和自动化。该公司在今年9月结束的2010财政年首3季录取了600万令吉的净盈利。这比去年同期的160万令吉净盈利猛涨接近3倍。该公司刚在日前宣布收购两家公司进军油棕业而把业务多元化至资源领域。
其实该公司的镇股之宝可能是通过鲜为人知的40%联号公司ROCKHILL RESOURCES（山石资源）控制的印尼煤矿经营权。根据公司文告，上述煤矿储存量至少122万吨（MT）而其标准煤发热量（cal/kg）不少于 7000卡。。若使用11月印尼能源部公布的煤价（每吨102.86美元），山石资源拥有经营权的煤矿价值达1亿2500万美元。
根据最新年度报告，上述联号公司已经开始贡献少许盈利。
JOTECH-WA目前的引伸波幅达73%。这比母股的历史波幅低很多。
由于该公司母股波幅大,其价钱超越13仙行使价的机会率很高。如果母股继续上涨，凭单投资者有可能获得理论价回归以及母股上涨的双效。在印尼煤矿投机价值高的情况下，JOTECH-WA的潜在回报率还是高于母股的。
凭单价 RM0.030
母股价 RM0.095
行使价 RM0.130
凭单到期日期 12/11/2012
溢价 68.4%
杠杆比率 3.2
母股历史波幅 171%
引伸波幅 73.4%
对冲值 0.60
有效杠杆 1.91
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Wednesday November 24, 2010
Jotech to buy two oil palm firms
PETALING JAYA: Manufacturer of precision stamped parts Jotech Holdings Bhd plans to acquire two companies involved in the cultivation of oil palm for RM28.3mil to diversify its revenue stream.
Jotech told Bursa Malaysia yesterday that it wanted to buy Malgreen Progress Sdn Bhd for RM23.8mil and Cergas Fortune Sdn Bhd for RM4.5mil. Both deals will be satisfied by cash and issuance of new shares.
Jotech said the business expansion into the oil palm industry was part of the company's strategy to diversify into the resources industries with strong growth prospects and reduce its dependency on its manufacturing business. It added that the business expansion would contribute positively to Jotech's future earnings.
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Key developments for JOTECH HOLDINGS BHD (JTEC)
Jotech Holdings Bhd. Reports Unaudited Consolidated Financial Results for the Third Quarter and Nine Months Ended September 30, 2010
11/22/2010
Jotech Holdings Bhd. reported unaudited consolidated financial results for the third quarter and nine months ended September 30, 2010.
For the quarter, the company reported profit from operations of MYR 1.9 million, profit before tax was MYR 2.98 million, profit attributable to owners of the company was MYR 2.7 million or 0.291 sen per basic share on the revenue of MYR 34.8 million compared to profit from operations of MYR 2.0 million, profit before tax was MYR 2.7 million, profit attributable to owners of the company was MYR 2.1 million or 0.222 sen per basic share on the revenue of MYR 32.6 million for the same period a year ago.
The profit growth in the current quarter was contributed from improvement in revenue arising from stronger performance of the group's regional business. The higher share of net profit from investment in associate of MYR 1.1 million had also contributed to the increase in the net profit reported.
For the nine months period, the company reported profit from operations of MYR 4.7 million, profit before tax was MYR 7.2 million, profit attributable to owners of the company was MYR 6.01 million or 0.650 sen per basic share on the revenue of MYR 97.8 million compared to profit from operations of MYR 1.7 million, profit before tax was MYR 2.3 million, profit attributable to owners of the company was MYR 1.6 million or 0.175 sen per basic share on the revenue of MYR 82.4 million for the same period a year ago. Net cash generated from operating activities was MYR 4.1 million compared to MYR 9.5 million for the same period a year ago.
The company spent MYR 7.5 million on acquisition of property, plant and equipment compared to MYR 3.3 million for the same period a year ago. The company spent MYR 170,000 on acquisition of subsidiary.
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出版日期: 2009年 12月 01日 (星期二)
億達控股公佈第三季業績純利比往同季倍增
【亞庇卅日訊】億達控股有限公司在十一月廿三日公佈第三季度業績，這家在吉隆坡證券交易主板上市的公司本季錄得三千兩百六十萬令吉收入。
億達集團執行主席拿督吳添泉指這雖然比去年同期的三千七百六十萬令吉收入為低，但是其持續經營業務卻為集團的純利比去年同季增加了一倍。
據悉，該集團的持續經營淨利錄得兩百卅萬令吉，相比去年同期只有九十萬令吉。該集團在本季度的股東應佔純利達兩百一十萬令吉，相比去年同期的股東應佔純利的雖然是六百四十萬令吉，但是其中五百四十萬令吉來自當時結束的半導體模具業務的處理。
該集團今年的最新業績，則錄得收入八千兩百四十萬令吉，純利一百九十萬令吉，股東應佔純利一百六十萬令吉。該集團的業績表現也持續獲得改善，收入方面本季度增加可約八點五巴仙或兩百五十萬令吉。本季度的純利兩百卅萬令吉也比上一季的純利六十萬令吉為多。
吳添泉解釋，本季度取淨利較上一季更高，主要因為業務復甦帶來更多的收入，同時聯營公司在本季度也帶來七十萬令吉的淨利。
他續說，億達集團將繼續擴張旗下所有特別是印尼和中國的生產廠。印尼工廠方面，該集團看好汽車領域這中期持續成長的領域，因此將立定目標抓牢其市場佔有率；中國工廠方面，該集團將將繼續把重點放在提高高噸位壓機的生產能力，應付其更廣泛的客戶基礎和強勁復甦的業務。
吳添泉指各種跡象顯示經濟即將從谷底復甦，億達有信心實現提高收入和利潤的目標，他還指出，該集團的煤礦生產經營仍處於運作前階段，預計將在二零一零年的第二季度為集團貢獻收入。
「從世界煤炭需求及其價格的上升趨勢來看，我們對這項投資的回報非常樂觀。」
他也指出，自該集團兩年前完成了架構重組，現在已經準備探索新商機以加強集團盈利。 -華僑日報
Publication Date: 2009 12 Yue 01 Ri (Xingqi Er)
Jotech Holding announce third quarter results Net profit doubled compared to the same quarter
【Kota Kinabalu Sari Reuters Yida Holding Co., Ltd. in November Niansan released third quarter results, which home in Kuala Lumpur, the Securities and Exchange Main Board listed company recorded 32.6 million this season ringgit revenue.
Jotech Group executive chairman Datuk Ng Tian-Quan allege that although the 37.6 million ringgit a year earlier than the lower income, but its continuing operations for the Group's net profit was more than double the same quarter last year.
It is reported that the group's net profit from continuing operations was recorded in two hundred thirty million ringgit, compared with just 900,000 ringgit a year earlier. The group in the quarter, net profit attributable to shareholders up to 2.1 million ringgit, compared with same period last year while net profit attributable to shareholders was 6.4 million ringgit, but one came from the end of the 5.4 million ringgit semiconductor Mold business processing.
The group this year, the latest performance, recorded 82.4 million ringgit of revenue, net profit of 1.9 million ringgit, the net profit attributable to shareholders 1.6 million ringgit. The group's performance has continued to be improved to increase revenue this quarter could be around 8.5 Ba Xian, or 2.5 million ringgit. The net profit this quarter than two hundred thirty million ringgit in the previous quarter net profit of more than 600,000 ringgit.
Wu Tian-Quan explained that taking this quarter, higher net income compared with the previous quarter, mainly due to the recovery operation to bring more revenue, while joint venture has also brought in the quarter a net profit of 700,000 ringgit.
He added that the Yida Group will continue to expand, especially in Indonesia and all of its production plant in China. Indonesian factories, the group optimistic about the automotive sector continued to grow this area of the medium-term and will therefore sets a target catch on its market share; Chinese factories, the group will continue to focus on improving the productive capacity of high-tonnage presses to meet the its broader customer base and a strong recovery in business.
Wu Tian-Quan refers to a variety of signs that the economy will soon recover from the bottom, PHYLLIS have confidence in the achievement of higher revenue and profit goals, he also pointed out that the group's coal production was still in the pre-operational stage, is expected to be in the 2010 second quarter contribution to revenue for the Group.
"From the world's coal demand and prices rising trend, we are very optimistic about the return on this investment."
He also pointed out that since the Group completed the restructuring two years ago, is now ready to explore new opportunities to strengthen the Group's profitability. - Overseas Chinese Daily News
2010-11-29 13:48 温世麟
亿达控股的股价在最近暴起暴跌。这一切可能都因该公司进军资源领域惹的祸。该公司股价在两个月内上涨一倍至14仙可是却在最近两周大幅调整并在上周五两韩关系紧张的时候暴跌到9.5仙水平。其凭单JOTECH-WA更是在巨大交易量中被投资者疯狂抛售到3仙水平，比前一周最高位的5仙降了四成。
亿达控股的主要商业活动包括精密压印、半导体加工和自动化。该公司在今年9月结束的2010财政年首3季录取了600万令吉的净盈利。这比去年同期的160万令吉净盈利猛涨接近3倍。该公司刚在日前宣布收购两家公司进军油棕业而把业务多元化至资源领域。
其实该公司的镇股之宝可能是通过鲜为人知的40%联号公司ROCKHILL RESOURCES（山石资源）控制的印尼煤矿经营权。根据公司文告，上述煤矿储存量至少122万吨（MT）而其标准煤发热量（cal/kg）不少于 7000卡。。若使用11月印尼能源部公布的煤价（每吨102.86美元），山石资源拥有经营权的煤矿价值达1亿2500万美元。
根据最新年度报告，上述联号公司已经开始贡献少许盈利。
JOTECH-WA目前的引伸波幅达73%。这比母股的历史波幅低很多。
由于该公司母股波幅大,其价钱超越13仙行使价的机会率很高。如果母股继续上涨，凭单投资者有可能获得理论价回归以及母股上涨的双效。在印尼煤矿投机价值高的情况下，JOTECH-WA的潜在回报率还是高于母股的。
凭单价 RM0.030
母股价 RM0.095
行使价 RM0.130
凭单到期日期 12/11/2012
溢价 68.4%
杠杆比率 3.2
母股历史波幅 171%
引伸波幅 73.4%
对冲值 0.60
有效杠杆 1.91
XXXXXXXXXXXXX
Wednesday November 24, 2010
Jotech to buy two oil palm firms
PETALING JAYA: Manufacturer of precision stamped parts Jotech Holdings Bhd plans to acquire two companies involved in the cultivation of oil palm for RM28.3mil to diversify its revenue stream.
Jotech told Bursa Malaysia yesterday that it wanted to buy Malgreen Progress Sdn Bhd for RM23.8mil and Cergas Fortune Sdn Bhd for RM4.5mil. Both deals will be satisfied by cash and issuance of new shares.
Jotech said the business expansion into the oil palm industry was part of the company's strategy to diversify into the resources industries with strong growth prospects and reduce its dependency on its manufacturing business. It added that the business expansion would contribute positively to Jotech's future earnings.
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Key developments for JOTECH HOLDINGS BHD (JTEC)
Jotech Holdings Bhd. Reports Unaudited Consolidated Financial Results for the Third Quarter and Nine Months Ended September 30, 2010
11/22/2010
Jotech Holdings Bhd. reported unaudited consolidated financial results for the third quarter and nine months ended September 30, 2010.
For the quarter, the company reported profit from operations of MYR 1.9 million, profit before tax was MYR 2.98 million, profit attributable to owners of the company was MYR 2.7 million or 0.291 sen per basic share on the revenue of MYR 34.8 million compared to profit from operations of MYR 2.0 million, profit before tax was MYR 2.7 million, profit attributable to owners of the company was MYR 2.1 million or 0.222 sen per basic share on the revenue of MYR 32.6 million for the same period a year ago.
The profit growth in the current quarter was contributed from improvement in revenue arising from stronger performance of the group's regional business. The higher share of net profit from investment in associate of MYR 1.1 million had also contributed to the increase in the net profit reported.
For the nine months period, the company reported profit from operations of MYR 4.7 million, profit before tax was MYR 7.2 million, profit attributable to owners of the company was MYR 6.01 million or 0.650 sen per basic share on the revenue of MYR 97.8 million compared to profit from operations of MYR 1.7 million, profit before tax was MYR 2.3 million, profit attributable to owners of the company was MYR 1.6 million or 0.175 sen per basic share on the revenue of MYR 82.4 million for the same period a year ago. Net cash generated from operating activities was MYR 4.1 million compared to MYR 9.5 million for the same period a year ago.
The company spent MYR 7.5 million on acquisition of property, plant and equipment compared to MYR 3.3 million for the same period a year ago. The company spent MYR 170,000 on acquisition of subsidiary.
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出版日期: 2009年 12月 01日 (星期二)
億達控股公佈第三季業績純利比往同季倍增
【亞庇卅日訊】億達控股有限公司在十一月廿三日公佈第三季度業績，這家在吉隆坡證券交易主板上市的公司本季錄得三千兩百六十萬令吉收入。
億達集團執行主席拿督吳添泉指這雖然比去年同期的三千七百六十萬令吉收入為低，但是其持續經營業務卻為集團的純利比去年同季增加了一倍。
據悉，該集團的持續經營淨利錄得兩百卅萬令吉，相比去年同期只有九十萬令吉。該集團在本季度的股東應佔純利達兩百一十萬令吉，相比去年同期的股東應佔純利的雖然是六百四十萬令吉，但是其中五百四十萬令吉來自當時結束的半導體模具業務的處理。
該集團今年的最新業績，則錄得收入八千兩百四十萬令吉，純利一百九十萬令吉，股東應佔純利一百六十萬令吉。該集團的業績表現也持續獲得改善，收入方面本季度增加可約八點五巴仙或兩百五十萬令吉。本季度的純利兩百卅萬令吉也比上一季的純利六十萬令吉為多。
吳添泉解釋，本季度取淨利較上一季更高，主要因為業務復甦帶來更多的收入，同時聯營公司在本季度也帶來七十萬令吉的淨利。
他續說，億達集團將繼續擴張旗下所有特別是印尼和中國的生產廠。印尼工廠方面，該集團看好汽車領域這中期持續成長的領域，因此將立定目標抓牢其市場佔有率；中國工廠方面，該集團將將繼續把重點放在提高高噸位壓機的生產能力，應付其更廣泛的客戶基礎和強勁復甦的業務。
吳添泉指各種跡象顯示經濟即將從谷底復甦，億達有信心實現提高收入和利潤的目標，他還指出，該集團的煤礦生產經營仍處於運作前階段，預計將在二零一零年的第二季度為集團貢獻收入。
「從世界煤炭需求及其價格的上升趨勢來看，我們對這項投資的回報非常樂觀。」
他也指出，自該集團兩年前完成了架構重組，現在已經準備探索新商機以加強集團盈利。 -華僑日報
Publication Date: 2009 12 Yue 01 Ri (Xingqi Er)
Jotech Holding announce third quarter results Net profit doubled compared to the same quarter
【Kota Kinabalu Sari Reuters Yida Holding Co., Ltd. in November Niansan released third quarter results, which home in Kuala Lumpur, the Securities and Exchange Main Board listed company recorded 32.6 million this season ringgit revenue.
Jotech Group executive chairman Datuk Ng Tian-Quan allege that although the 37.6 million ringgit a year earlier than the lower income, but its continuing operations for the Group's net profit was more than double the same quarter last year.
It is reported that the group's net profit from continuing operations was recorded in two hundred thirty million ringgit, compared with just 900,000 ringgit a year earlier. The group in the quarter, net profit attributable to shareholders up to 2.1 million ringgit, compared with same period last year while net profit attributable to shareholders was 6.4 million ringgit, but one came from the end of the 5.4 million ringgit semiconductor Mold business processing.
The group this year, the latest performance, recorded 82.4 million ringgit of revenue, net profit of 1.9 million ringgit, the net profit attributable to shareholders 1.6 million ringgit. The group's performance has continued to be improved to increase revenue this quarter could be around 8.5 Ba Xian, or 2.5 million ringgit. The net profit this quarter than two hundred thirty million ringgit in the previous quarter net profit of more than 600,000 ringgit.
Wu Tian-Quan explained that taking this quarter, higher net income compared with the previous quarter, mainly due to the recovery operation to bring more revenue, while joint venture has also brought in the quarter a net profit of 700,000 ringgit.
He added that the Yida Group will continue to expand, especially in Indonesia and all of its production plant in China. Indonesian factories, the group optimistic about the automotive sector continued to grow this area of the medium-term and will therefore sets a target catch on its market share; Chinese factories, the group will continue to focus on improving the productive capacity of high-tonnage presses to meet the its broader customer base and a strong recovery in business.
Wu Tian-Quan refers to a variety of signs that the economy will soon recover from the bottom, PHYLLIS have confidence in the achievement of higher revenue and profit goals, he also pointed out that the group's coal production was still in the pre-operational stage, is expected to be in the 2010 second quarter contribution to revenue for the Group.
"From the world's coal demand and prices rising trend, we are very optimistic about the return on this investment."
He also pointed out that since the Group completed the restructuring two years ago, is now ready to explore new opportunities to strengthen the Group's profitability. - Overseas Chinese Daily News
Merry Christmas and Happy New Year
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Copyright © 2004 I DESIGN WORK All rights reserved.
Website Design by: idesign
idesign is based in Johor Bahru, Johor, Malaysia. Started at year 2003. Our Service included
Webpage Design, Hosting, Domian Name, Graphic Design, Company Profile, Catalogue, Leaflet,
Flyer, Packaging, Logo, Poster, Banner, Signboard and Namecard...
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Kamdar Ingress, Airasia, PLUS, MAS,
Kamdar: 19% of its stakes will traded off market at 30 sen a share on 20 Dec 2010. Another large block was traded for 2 million shares at 30 sen a share on last Friday. Its NAV is 91 sen a share. A substantial assets were its properties though is a textile retailer. More than half of its rm154 million property, plant and machinery were in freehold land and building across the peninsula, includes in Penang and Jln Tuanku Abdul Rahman in KL The group did not adopt a policy on regular revaluation of its landed properties. Should Kamdar undergo revaluation, the value of its landed properties could rise further from their historical book value.
As at Sept 30, Kamdar had rm152 million worth or properties, plant and machinery, rm104 million inventories and rm22 million cash. Its borrowings were high at totaling rm103 million. Its net debt of rm81 million translated into a net gearing of 45%. Its y-to-y net profit rise to rm5.3 million on rm63 million revenue. For nine months ended Sept 30, 2010, its net profit increased to rm9 million.
Ingress: Its 3Q ended Oct 31, 2010 net profit dipped to rm2.09 million from rm4.7 million previously despite higher turnover in its auto business.
Airasia: Luxembourg based fund, Genesis Smaller Companies SICAV has been reducing its stake in Airasia with the recent disposal of 6.84 million shares as at Dec 14, 2010. Airasia’s largest shareholders are Tune Air Sdn Bhd (26.12%), Capital World Investors (8.53%), the EPF (7.82%), Genesis Smaller came in with 5.37% stake. Sources say Genesis Smaller wants to take profit on its investment in Airasia.
PLUS: Industry observers is skeptical about Jelas Ulung Sdn Bhd’s bid to take over PLUS for rm26 billion due to it lacks financial plans and key details. Concerns are on the financial implications or recourse later. It also failed to see any investment return for Jelas Ulung. Jelas’s offer lacked other crucial details … Its offer was silent on the concession period which led observers believe that Jelas Ulung could seek for quite an extension. Jelas also silent on the capex. Apart from valuations, the government would consider the bidder’s track record and financial statu
MAS ...
Its expansion took off in 2007 when the airline turned around earlier than expected. It placed orders for 35 B373-800 planes, which cost some US$2.7 billion at list price.
MAS will have the youngest fleet in the region in 2015.
These new and more fuel efficient plans will allow the airline to enjoy lower unit costs and fly new routes that were not viable before because of its ageing fleet.
With the new plane purchases, MAS is also leaving behind its asset light days under its WAU Agreement with the government.
Back then, MAS did not own its planes but leased them from Penerbangan Malaysian Bhd.
Moving forward, MAS’s new fleet ownership model will see it owning 33% of its fleet and leasing 33% while the rest will either be leased or owned, depending on market conditions. The objective of such ownership is to reduce lease payments while gaining operational efficiencies.
The question is will expansion pay off for the full service carrier when the industry is challenged by ultra competitive LCCs that are encouraging on traditional airlines’ home turf?
The deployment of new planes means a heavier balance sheet for MAS. This is currently a concern, given MAS’ negative cash flow as at Sept 30, 2010.
Negative cash flow is not a good sign for any company, especially like MAS, which needs strong cash flow to meet its obligations in the purchase of new planes.
Be that as it may, MAS is sticking to its plans to expand in 2011.
Its official said that despite the negative cash flow in the first nine months if 2010, MAS actually saw a q-to-q improvement. Although 3Q is seasonally its weakest quarter, MAS recorded positive operating cash flow of operating cash flow of RM190 million for the period.
Its official is not too concerned at this stage because MAS has worked out the cash flow that is expected over the next five years and what sort of capital it needs to run that cash flow.
The amount that MAS raised from the rights issue in March 2010 is expected to cover cash flow for the next few years and keeping gearing at the right level.
MAs already secured long term financing for the planes due for delivery in 2011.
In March 2010, MAS launched a rights issue to raise rm2.7 billion. The largest subscriber for the exercise was Khazanah which currently (Dec 2010) owns 69.3% stake.
The air travel is vulnerable to economic downturns and etc … However for LCCs like Airasia, economic crisis present opportunities because travelers usually opt of cheaper fares during such times leaving FSCs like MAS with even fewer seat factors.
In fact, due to competition from the LCCs, the FSCs are having a tough time enhancing yields.
The question is how low can MAS unit costs go and how fast can it make money out of its new planes?
One area that MAS has to watch is its fuel costs which account for 30% to 35% of its total operational costs. It is worth noting that MAS has hedged 33% of its 2011 requirements at US$93 per barrel.
However, given that MAS is in growing phase, how much of costs can it reduce? It is worth noting that the lower unit cost the fewer the seats that need to be sold on each flight to be profitable. So it an airline’s unit cost is low, it may only need to fill half its seats to ensure that the plane takes of and is profitable.
Creating value is perhaps why MAS has emphasized the need to change the way it operates. Soon after its turnaround in 2007, MAS’ management team engaged in a comprehensive forecast exercise to prepare a business plan for 2008 to 2012.
The exercise showed that without transformation, the airline stood to lose as much as RM650 million to RM1 billion in 2012, which partly explains why MAS has taken the route of expansion.
As at Sept 30, Kamdar had rm152 million worth or properties, plant and machinery, rm104 million inventories and rm22 million cash. Its borrowings were high at totaling rm103 million. Its net debt of rm81 million translated into a net gearing of 45%. Its y-to-y net profit rise to rm5.3 million on rm63 million revenue. For nine months ended Sept 30, 2010, its net profit increased to rm9 million.
Ingress: Its 3Q ended Oct 31, 2010 net profit dipped to rm2.09 million from rm4.7 million previously despite higher turnover in its auto business.
Airasia: Luxembourg based fund, Genesis Smaller Companies SICAV has been reducing its stake in Airasia with the recent disposal of 6.84 million shares as at Dec 14, 2010. Airasia’s largest shareholders are Tune Air Sdn Bhd (26.12%), Capital World Investors (8.53%), the EPF (7.82%), Genesis Smaller came in with 5.37% stake. Sources say Genesis Smaller wants to take profit on its investment in Airasia.
PLUS: Industry observers is skeptical about Jelas Ulung Sdn Bhd’s bid to take over PLUS for rm26 billion due to it lacks financial plans and key details. Concerns are on the financial implications or recourse later. It also failed to see any investment return for Jelas Ulung. Jelas’s offer lacked other crucial details … Its offer was silent on the concession period which led observers believe that Jelas Ulung could seek for quite an extension. Jelas also silent on the capex. Apart from valuations, the government would consider the bidder’s track record and financial statu
MAS ...
Its expansion took off in 2007 when the airline turned around earlier than expected. It placed orders for 35 B373-800 planes, which cost some US$2.7 billion at list price.
MAS will have the youngest fleet in the region in 2015.
These new and more fuel efficient plans will allow the airline to enjoy lower unit costs and fly new routes that were not viable before because of its ageing fleet.
With the new plane purchases, MAS is also leaving behind its asset light days under its WAU Agreement with the government.
Back then, MAS did not own its planes but leased them from Penerbangan Malaysian Bhd.
Moving forward, MAS’s new fleet ownership model will see it owning 33% of its fleet and leasing 33% while the rest will either be leased or owned, depending on market conditions. The objective of such ownership is to reduce lease payments while gaining operational efficiencies.
The question is will expansion pay off for the full service carrier when the industry is challenged by ultra competitive LCCs that are encouraging on traditional airlines’ home turf?
The deployment of new planes means a heavier balance sheet for MAS. This is currently a concern, given MAS’ negative cash flow as at Sept 30, 2010.
Negative cash flow is not a good sign for any company, especially like MAS, which needs strong cash flow to meet its obligations in the purchase of new planes.
Be that as it may, MAS is sticking to its plans to expand in 2011.
Its official said that despite the negative cash flow in the first nine months if 2010, MAS actually saw a q-to-q improvement. Although 3Q is seasonally its weakest quarter, MAS recorded positive operating cash flow of operating cash flow of RM190 million for the period.
Its official is not too concerned at this stage because MAS has worked out the cash flow that is expected over the next five years and what sort of capital it needs to run that cash flow.
The amount that MAS raised from the rights issue in March 2010 is expected to cover cash flow for the next few years and keeping gearing at the right level.
MAs already secured long term financing for the planes due for delivery in 2011.
In March 2010, MAS launched a rights issue to raise rm2.7 billion. The largest subscriber for the exercise was Khazanah which currently (Dec 2010) owns 69.3% stake.
The air travel is vulnerable to economic downturns and etc … However for LCCs like Airasia, economic crisis present opportunities because travelers usually opt of cheaper fares during such times leaving FSCs like MAS with even fewer seat factors.
In fact, due to competition from the LCCs, the FSCs are having a tough time enhancing yields.
The question is how low can MAS unit costs go and how fast can it make money out of its new planes?
One area that MAS has to watch is its fuel costs which account for 30% to 35% of its total operational costs. It is worth noting that MAS has hedged 33% of its 2011 requirements at US$93 per barrel.
However, given that MAS is in growing phase, how much of costs can it reduce? It is worth noting that the lower unit cost the fewer the seats that need to be sold on each flight to be profitable. So it an airline’s unit cost is low, it may only need to fill half its seats to ensure that the plane takes of and is profitable.
Creating value is perhaps why MAS has emphasized the need to change the way it operates. Soon after its turnaround in 2007, MAS’ management team engaged in a comprehensive forecast exercise to prepare a business plan for 2008 to 2012.
The exercise showed that without transformation, the airline stood to lose as much as RM650 million to RM1 billion in 2012, which partly explains why MAS has taken the route of expansion.
Monday, December 20, 2010
Investment Theme For 2011
What's In Store In Dec 2010 - March 2011 ...
*** UNCERTAIN ***
1. Sarawak Region Corridor
2. The Sabah Development Corridor
3. The Asia Petroleum Hub In Johor
4. The Solid Waste Management Play
5. Flow of OPEC Petrodollars
6. The Trans-Peninsula Pipe Project
*** UNCERTAIN ***
7. Implementation Of the Ninth Malaysia Plan
8. A Stronger Ringgit Regime (Further Appreciating)
9. Privatization And M&As Deals (The Banking Sector)
10. Asset Reflation Theme (Strengthening Ringgit)
11. Sarawak Corridor Of Renewable Energy (SCORE)
12. The Eastern Corridor Development Programme (Petronas-Led)
13. Northern Corridor Economic Region
14. Iskander Development Region (IDR) In South Johor
15. RM9 Billion LRT Extension Project
16. The Water Services Industry
17. A U-, V-, W- Or L-Shaped Global Economic Recovery (Uncertain)
18. Fiscal & Monetary Pump-Priming (Uncertain Due To Eurozone Debt Crisis)
19. The Economic Stabilization Plan, Mini Budget & Budget 2010
20. Interest Rate Cycle (Divergence Between Developing & Developed Economies)
21. Decoupling – Emerging Economies Are Disconnected From Developed Countries (China-Led Process Decoupling From The West)
22. Further Liberalization Of The Services/Financial Sector (Speculating Offshore Trade In Ringgit)
23. The Malaysian Government’s Reform “Train”
24. GLCs Revamp
25. The ‘Third’ Link Bridge (Eastern Johor) To Singapore (Uncertain)
26. A ‘Third Stimulus’ Package (Uncertain)
27. Second Wave Privatization
28. New Economic Model (ETP)
29. 10th Malaysia Plan And Capital Master Plan -> New Economic Developments Model
30. Sarawak State Elections
31. The Malaysia Political Trend
32. RM36 Billion MRT System
33. The Malaysia Singapore JV Involved In KTMB Land In Singapore
34. Malaysia Listed As China’s QDII Destination
35. The Redevelopment Of Kampung Baru
36. The Redevelopment of Sungai Besi RMAF
37. The Redevelopment of Pudu Prison
38. The Redevelopment of RRIM
39. Government Backed Entities – 1MDB, Ekuiti Nasional Bhd
40. The Bakun Dam
41. RM 15 Billion Project To Rehabilitate & Develop Polluted Klang River
42. The RM5 Billion Warisan Merdeka
43. The Development Of Dataran Perdana (KLIFD)
44. The KL-Singapore High Speed Train Project
45. The Pengerang Independent Deepwater Petroleum Terminal Project
Watch List In 2010 - 2011
1. The proposed changes to takeover rules by the SC will be announced in “a few months” from July 2010 as they are being bundled together with other investor protection initiatives (Pending);
2. The initial part of the Pahang-Selangor interstate water transfer project, which is the RM1.3bil tunnelling package, had been awarded in May 2009. The only portion of the project which had yet to be opened for tender was the RM4bil to RM5bil Langat 2 water treatment plant. The other portions – the Kelau dam and Semantan piping works – are opened for tender (Pending);
3. Minister in the PM’s Dept Datuk Seri Idris is leading a group of comprising representatives from the private and public sectors to come out with a master plan to develop a cluster of large O&G players;
4. Datuk Seri Idris Jala says Petronas will be announcing more incentives for the O&G industries as the government sets the stage for the country to be a regional hub for oilfield service;
5. The announcement by Malaysia 's central bank that it would allow offshore settlement in ringgit of trade in goods and services triggered speculation that Bank Negara Malaysia (BNM) may allow offshore trade in its currency. Any move to internationalise the ringgit, such as allowing the currency to trade outside of the country, would require the approval of the government as well as the central bank;
6. The feed-in-tariff (FiT) mechanism under the Renewable Energy (RE) Act will enable individuals to earn income by selling electricity generated from renewable resources at home. The Government was currently in the process of preparing the Act for a first reading in parliament in Dec 2010;
7. Khazanah could possibly lower its shareholding or exit altogether in the near term of about six months starting Aug 2010, including those under UEM Group. The likely assets (for divestment) are PLUS Expressways Bhd, CIMB Group Holdings Bhd, Tenaga Nasional Bhd, Time Engineering Bhd, TIME dotCom Bhd and DRB-Hicom Bhd;
8. Sarawak State Election Is Expected To Be Held In 1H2011 But Speculation That It Could be held As Early As End Of 2010 (due by May 2011);
9. The Land Public Transport Commission (SPAD) will draw up a public transport masterplan in six to 12 months from September 2010 to ensure the holistic development of public transport in the country;
10. PNB will conduct a study on the Government’s plan to redevelop Kampung Baru. The Kampung Baru Development Corporation, which serves as the planning and governing body for development actvities in Kampung Baru in Kuala Lumpur, is expected to be operational next year (2011);
11. PAAB is hoping to complete its planned acquisition of water assets in Selangor by the end of the year (2010);
12. The Kampung Baru Development Corporation, which serves as the planning and governing body for development actvities in Kampung Baru in Kuala Lumpur, is expected to be operational next year (2011);
13. RM15 Billion project to rehabilitate and develop the polluted Klang River .. The Klang River stretches 120km, with the first 80km under the purview of Selangor and the balance 40km under the Federal Government. The massive project is being spearheaded by Selangor MB Tan Sri Abdul Khalid Ibrahim;
14. The full scope of MREH’s participation in the projects to be located within the KLIFD will be finalised in 2011, following completion by 1MDB of the KLFID master plan;
15. Specific details of related to SCORE’s projects, all of which would be led by 1MDB, would be available in due course. Mubadala and 1MDB were starting preliminary assessment work on the SCORE project;
16. Datuk Seri Najib has told the party faithful to get ready for 13th General Election and to get into battle mode. Talk that the elections could be held as early as July 2011. He and Muhyiddin will begin a nationwide tour of all the states beginning early 2011 to meet the people and party grassroots;
17. Malaysia will only approach Singapore on the bullet train project connecting the countries’ capital cities once its feasibility study is completed by mid-2011. The study is due to start in January 2010 and the results will be discussed in the Cabinet;
18. Design details of the proposed MRT project in the Klang Valley are being finalised and will then present them to the Economic Council and the Cabinet, and expect to finalise the project before the end of 2010. Physical work for the project will start in the middle of 2011, with some of it being parcelled out for tender;
19. The second Capital Market Masterplan for Malaysia from 2011 to 2020, which is expected to be released in the first quarter of 2011, will address key areas such as the development of a private pension fund framework, boosting retail participation in the local stock market, working capital improvement and higher attention to governance;
20. SPAD to draw up a 20-year master plan to ensure the holistic development of public transport in Malaysia and submit to the government by September 2011
Watch List In Coming Week(s)
1. Expecting more positive news flow in the coming months (Oct 2010 & Beyond) for the construction & O&G sector. There will be a slew of project roll-outs and tender awards in the coming months (Oct 2010 & Beyond);
2. A number of important announcements on economic reform could be made in Dec 2010. First a more liberal policy on employing non Malaysian nationals could be announced which would spur economic reform by attracting more skilled and knowledgeable workers to Malaysia . This would be a start to real economic reform in policies rather than many infra related projects announced thus far. Second a potential Cabinet reshuffle is on the cards.
Corporate Watch List In Coming Months
Dec 2010 …
1. Ekuiti Nasional Bhd (Ekuinas) will announce its third investment before year-end (2010). They are talking with a number of parties but have not decided on any companies or sectors. This (third investment) is to fulfil its third objective to invest in the non-core assets of either GLCs, PLCs or MNCs;
2. Speculation that Khazanah will pare down its stake in Tenaga, in which the former holds 35.6% stake. An announcement could be made in Dec 2010. However, Khazanah’s timing may coincide with Tenaga making a significant announcement before year ends (2010).
3. The offer by UEM Group and EPF would be tabled at PLUS' extraordinary general meeting in Dec 2010;
4. PM Datuk Seri Najib has dismissed reports of a Cabinet reshuffle in anticipation of snap polls early 2011. The reports said the reshuffle, expected by Dec 2010, would enable Najib to form a strong team to help him implement the economic and transformation policies he has put in place and carry the Government into the 13th general election;
5. Deadline of Dec 22, 2010 Sunrise ’s minority shareholders to accept the UEM Land’s takeover offer;
6. Postal Land Act …The proposed amendments of the Act is to be tabled in parliament Dec 2010;
7. The legislation on renewable energy has been prepared and it could be up for first reading in Parliament in mid Dec 2010. Minister of Energy, Green Technology and Water Datuk Seri Peter Chin said the legislation included the feed-in tariff scheme that enables consumers to sell renewable energy to utility companies;
8. DRB-HICOM Bhd is scheduled to sign a definitive agreement on December 21 2010 with Volkswagen AG, Europe's largest carmaker, to assemble VW cars in Malaysia
9. MRCB and IJM Land Bhd have extended the validity of their MoU -- to merge and create the country’s second-largest property company to Dec 29 from Dec 14 2010;
10. LCL would be de-listed on Dec 27 2010, unless an appeal is submitted to Bursa Securities on or before Dec 22 2010, which is the appeal timeframe. Any appeal submitted after the appeal timeframe will not be considered by Bursa Securities.
Jan 2011 …
1. KEURO’s directors are of the view that approval to implement the WCE will be obtained in FY2011 ending Jan 31, 2010;
2. MTD Capital Bhd could rake in at least some RM150 million in annual toll revenue from the SLEX in 2011 if higher toll rates there are implemented in January 2011;
3. Observers understood from the management that the endorsement of RCE’s compliance with SKM’s guidelines is just a validation exercise. Once all the documentation has been submitted, endorsement should follow shortly — as early as Jan 2011;
4. JPK’s proposed regularisation plan will be announced and submitted to the relevant authorities by Jan 31, 2011;
5. Unisem’s directors expected the group’s business “to decline moderately in the fourth quarter 2010 as a result of anticipated inventory adjustment in the industry but would nonetheless remain profitable;
6. Transmile has more liabilities than its assets due to the ballooning accumulated losses, depleting cash and lower value of its assets. Bondholders are not able to proceed with winding-up TGB and its subsidiaries as the latter had sought for a RO from the court to stop any proceedings by its creditors until January 2011. The sale of its four MD11 aircraft, which were fair valued at RM242.11 million as at Sept 30, is the key part of TGB’s debt restructuring;
7. EON Capital said the judge will deliver the verdict of its case on Jan 19, 2011 after reading the written submissions as well as hearing oral submissions from the respective counsels;
8. JCorp and Johor Ventures Sdn Bhd are seeking the removal of Muhammad Ali Hashim as a director of Kulim ( Malaysia ) Bhd and KPJ Healthcare Bhd with immediate effect. They had requisitioned for the EGM to be held on Jan 17, 2011 for Kulim while on Jan 26 2011 for KPJ Healthcare
Feb 2011 …
1. Ho Hup Construction Company Bhd has been given until Feb 4, 2011, to submit a revised regularisation plan, failing which the company’s shares may be suspended and Ho Hup de-listed from the local bourse;
2. Baneng expects its proposed restructuring scheme, including debt revamp to be completed by the third quarter of 2011. It expects to get the approvals from all relevant authorities by February, 2011 and complete the proposed capital reconstruction by mid-May 2011. The company has sitting on the board as an independent non-executive director Tengku Sulaiman Shah, the brother of the Sultan of Selangor;
3. Axiata has stated that it intends to write down the value of its 19.1% stake in Idea during its fourth quarter, which be announced in Feb 2011;
March 2011 …
1. Notion’s reputation hinges on the Samsung 2.5” base plate project. Successful execution will put earnings back on track and see investors’ confidence regained. It is a make or break by March 2011. Successful execution will put earnings back on track and see investors’ confidence regained;
2. China’s 12th Five Year Plan will be unveiled at the National People's Congress on March 2011. It is expected to strongly emphasize a shift to domestic consumption and less reliance on export manufacturing and heavy industry;
3. The financial regularisation of Seloga has to be done before March 31, 2011 or be de-listed. Former Renong boss, Tan Sri Halim Saad, has a 26.63% equity stake in Seloga;
4. TdC is expected to hold an EGM in March 2011 to seek shareholder approval for its proposed purchase of the Global Transit entities which own a 10% stake in the 9,620km Unity Cable System. However, the proposal draws criticism partly because it is related party transactions, as Afzal and COO Megat Hisham Hassan are directors of Megawisra Sdn Bhd. Afzal is the major shareholder in Megawisra with a 75% stake. Megawisra in turn, owns the majority of the companies to be acquired under the proposal;
5. Sime Darby Bhd was considering selling off some of its businesses and the announcements was due in 2011. There was a handful of businesses that might be divested or offered to its joint-venture partners to be taken over. The final decision will be made by the end of March 2011
Few Months From Dec 2010 …
1. Maybank must “refloat” a 20 per cent stake in PT Bank Internasional Indonesia within a six-month period;
2. Jerneh Asia Bhd has 12 months from Dec 2010 to seek a new core business;
3. SAB is set to unlock its holding of 644.49 acres of land bordering Kota Kemuning, Shah Alam, although its board of directors are still exploring its options before making any decision in the next three to six months;
4. ARK Resources Bhd is closed to getting a RM100 million job to build a commercial development in Negri Sembilan. But the contract will only be firmed up if the company is able to complete its restructuring exercise within the next four months from Nov 2010.
5. MARC was in the process of completing its review on Petra Perdana and expected to complete the review over the next four to five weeks (Nov – Dec 2010);
6. Tenaga plans to raise RM3 billion to RM4 billion to finance the first block of the 1,000-megawatt coal-fired powered plant in Manjung.
7. Talk that the 13th general elections could be held as early as July 2011. Datuk Sri Najib and Muhyiddin will begin a nationwide tour of all the states beginning early 2011 to meet the people and party grassroots;
8. Contract awards from the SOGT were expected to gain momentum going into the tail end of 2010 …Kencana, Dayang Enterprise Holdings Bhd, SapuraCrest Petroleum Bhd and Petra Energy Bhd as possible contenders and beneficiaries of the SOGT’s future jobs;
9. The financial lenders of Carotech are reviewing and considering the proposed scheme. The CDRC gave it six months from July 1, 2010 to complete the proposed scheme. Tabung Haji has been upping its stake in Carotech with a 6.93% stake as at Sept 3 2010;
10. Zeland had a time frame of 12 months from Sept 2010 to dispose of the 30 million IJM Corp shares in the open market and/or through direct business transactions;
11. Linear saw the entry of white knight with appointment of three new directors, who are planning to put the company back on its feet again. A new director is Datuk Ling Keak Ming, Ling, a former director of Magnum Corporation Bhd from 2000 to 2007, is closely associated with the MWE Holdings group … But It Denied;
12. Cash-rich (RM800 million) NCB Holdings Bhd with no borrowing, may declare a sizable dividend payout at year-end (2010), although industry observers say the port operator is going to need all the cash it has;
13. The Energy Commission has asked for proposals from two power plant operators with regard to the second 1,000MW coal-fired power plant. It will evaluate who has the better proposal and will recommend to the Government to award to one of these two operators … MMC Corp/Tenaga;
14. Genting Bhd intended to purchase up to a further 362.207 million of its shares (representing 6.13% of the issued and paid-up share capital) within the next 10 months from Aug 2010;
15. Proton’s MD Datuk Syed Zainal Abidin said Proton will undertake a major restructuring programme by year-end (2010). Speculation that Proton will merge with Perodua and disposing Lotus … But it Denied;
16. CDRC had via its letter dated Aug 11 2010 accepted Limahsoon’s application. The CDRC had given the company six months from Aug 11 2010 to complete the proposed debt revamp;
17. Feasibility study on a proposed MRT system (Gamuda/MMC Corp) in KL will be completed in Sept 2010. The commission will take a look at the three-month from Sept 2010 study and submit it to the government, which will decide on the proposal;
18. Scomi Eng had submitted a proposal to the Chennai’s state government about three months ago and hopefully, by year-end (2010) there will be some developments;
19. Sources say JAKS has teamed up with a reputable local contractor to bid for the piping package worth up to RM400mil – with a result to be known by end-1H 2010;
20. UEM Group Bhd has no plans yet to dispose of its 45% stake in Time Engineering Bhd, but will do so if there are interested parties with substantial game plan. Time Engineering had received its shareholders’ mandate in July 2009 to sell its entire stake in TdC at no less than 48 sen a share;
21. PJI is in process of a capital restructuring exercise which hopes to complete in six months (July 2010 – Dec 2010). It is also undergoing a management reshuffle. It has disposed two of its assets;
22. Petra Energy/Perdana is confident of securing a "significant chunk" of the contracts by Petronas worth RM3.2 billion of which the results will be known in six months from June 2010;
23. Ramunia was working out its financial regularisation plan and hoped to exit the PN 17 status by the end 2010. It would be meeting its secured and unsecured creditors on May 7 2010 to work out the payment scheme. It had RM347 million in borrowings;
2011 …
1. JCorp is confident of restructuring its RM3.6 billion debt by the first quarter of 2012. A public announcement on the finalised details of the scheme will only be made in 2011;
2. Sources say the EPF will hive off another 9% stake in RHB Capital soon. The EPF is looking to sell the shares to a diverse group of institutional FM instead of strategic investors. The EPF had until June 2011 to reduce its interest in RHB Capital;
3. The Perak state government is confident that the feud between two of Integrax Bhd's major shareholders, involving a big investment in the Vale transhipment project, will be resolved by early 2011.
4. Hiap Teck will start construction of rm750 million blast furnace in 2H2011;
5. Kencana is seeking strategic partners to further enhance its business opportunities and is not interested in mergers. The company planned to raise about RM800 million in 2011. The details will be revealed in the first half of 2011. Earlier speculation that Kencana may see a new shareholder … US based McDermott Intl Inc is looking to buy up to 5% of group CEO Datuk Mokhzani’s stake in Kencana. However he has firmly denied the speculation;
6. The proposed exercise is between YTL Corp/YTL Land expected to be completed by 1H2011;
7. AirAsia X Sdn may sell shares in Europe and Asia as early as next year (2011)
8. The next package to be dished out is for Kelau Dam in Pahang worth RM200mil to RM250mil, possibly early 2011 … IJM/JAKS;
9. The proposed merge MRCB & IJM Land company will be listed after the second quarter of 2011;
10. BP Plastics was applying for economic concession rights to approximately 10000ha of land in Cambodia for agricultural purposes. The outcome of the land application is expected to be known early 2011;
11. Airasia may see maiden profit contributions from its Thailand and Indonesian associates in 2011. The two associates are expected to pay up the RM800 million owed to Airasia over the next two years (2011-2012), a move which will boost its cash position of almost RM1 billion now (Nov 2010). Plans to list its associates are also on track … Indonesia and Thailand ;
12. LBS much-anticipated China development may finally be getting off the ground and the company’s focus on affordable landed housing is drawing in strong sales. Its China project could be launched in the second half of 2011;
13. Loss-making GPacket, which is burning cash for capex and customer acquisition, is on track to be profitable at the operating level by 1QFY11 ending March 31;
14. Maybank is rumoured to be keen on acquiring OSK Holdings Bhd, which is on expansion trail in the Asean region, in a move to beef up the former’s investment banking arm. Sources say OSK Holdings Bhd is believed to have appointed Goldman Sachs to explore the possibility of finding a suitor or a strategic partner;
15. A possible privatization motivating factor for Hap Seng Consolidated to undertake such an exercise could be its major shareholder – the Lau family from Sabah – looking at further rationalizing the family businesses held under different entities;
16. The key re-rating catalyst for Faber would be the outcome of its local HSS concession talks. Meanwhile, a cash pile of RM170mil as at the end of June and a healthy balance sheet would provide Faber the flexibility to respond to any merger and acquisition opportunity;
17. There could be new substantial shareholders in the form of Indonesian investors and Middle Eastern funds surfacing in Scomi Group quite soon. The new shareholders have been accumulating Scomi Group shares on the open market for sometime and are close to surfacing in the company;
18. The Casino Regulatory Authority in Singapore has received licence applications from junket operators endorsed by Genting SP. It is believed that the junket operators would get their licence by early 2011;
19. Ariantec Global is hopping to see the entry of a new shareholder in the form of GLC by the first quarter of 2011. It is hopping to complete a private placement to the GLC. The company is expecting to secure more of such deals especially from the Ministry of Education by the end of fourth quarter 2010.
20. The entry of new major shareholders in Mithril is seen as heraldings new chapter in its corporate annals. Not only it clears its debts under a corporate restructuring, but it will also see the injection of an Indonesian palm oil processing company. The company expects to be out of the PN17 list upon completion of the acquisition by the third quarter of 2011;
21. Expectation that HWGB’s tin mine will commence production by year-end (2010) and will help turn the company around … revenue to start flowing in FY11 ending December;
22. Hong Kong-listed Galaxy Entertainment Ltd opens its large integrated resort facility in Macau in the first quarter 2011;
23. Litrak, the concessionaire of Damansara-Puchong Highway (LDP) is expected to obtain government approval for a toll increase next year (2011).
24. Sources say Axiata may raise its dividend payout in 2011 with to increase its payout from 30 per cent and still maintain a healthy balance sheet;
25. Ibraco Bhd’s proposed regularisation plan to exit the PN17 status is expected to be completed by the 1Q2011, paving a way for the lifting of Ibraco from the PN17 status;
26. MPHB’s management was looking at re-listing Magnum end of 2010 or in 2011. The company was taken private in 2007;
27. Kurnia Asia is reviving its plan for an insurance venture in Cambodia with a new partner. It is applying for insurance licenses in Cambodia but operations are only likely to come onstream in 2011;
28. Haisan has approximately 11 months (July 2010 – June 2011) to submit its regularisation plan to the relevant authorities for approval;
29. Several companies made presentations to the NKEA lab o the KL-Singapore high-speed train project. Among them were YTL Corp Bhd and Hartasuma Sdn Bhd, which was said to be partnering a Chinese state-owned firm. The proposals for the HSR were still at the conceptual stage and the next stage would be for a feasibility study to be conducted in 2011;
No Timeline Has Been Set …
1. The revival of the Sabah dam project worth at least RM1 billion was a wild card for WCT. WCT has submitted its bid for the Klang Valley LRT extension works;
2. A JV formed by Genting group and VinaCapital has obtained approval for a US$4 billion casino resort project in Hio An city;
3. Olympia, a company under gaming and property magnate Tan Sri Yap Yong Seong, is seeking to put in a RM2.25 billion bid for Pan Malaysian Pools Sdn Bhd (PMP), the gaming arm of Tanjong plc. But the company has not been able to firm up a financing plan which is why it has not submitted an offer yet;
4. Lion Industries’ shareholders can expect higher dividend payment under the company debts restructuring scheme, dating back to 2003, has finally been lifted;
5. GHL SYS substantial shareholder, Simon Loh Wee Hian is requisitioning an EGM to remove interim chairman and group MD Tay from the board with immediate effect;
6. Speculation that RHB Capital is interested in EON Capital. The banking group is rumored to have given EON Capital a second look;
7. The Naza brothers resign their board memberships, reduce stakes in Jetson. Following the sale, Pavillion still owns 21.7%. MD of Jetson Datuk The is believed to have acquired the 7.2% stake disposed by the brothers;
8. Excess capacity, high raw materials and low demand will possibly lead to further consolidation among the rubber glove players and Top Glove is in a good position to further enlarge its business when the opportunities arise;
9. Datuk Gan, the executive chairman of Technic Group Bhd, increased his indirect stake to 38.71%. Sources say there is no intention to take the company private. Gan is also substantial shareholder in SKP Resources with 70.99% stake;
10. Genting HK is one of the private investors participating in building the US$15 billion Bagong Nayong Pilipino-Entertainment City Manila under the PAGCOR. The project is planned on reclaimed land around the Manila Bay area and is meant to rival established gaming and entertainment areas such as Macau and Singapore . However, the media has reported that the new administration under President Benigno Aquino has called for a review into these investments;
11. IJM and MRCB would be participating in the tender for Package B of the LRT extension project;
12. MK Land Holdings Bhd is not ruling out the possibilities of merging with other property players. However, the group had yet to receive any proposals. They would look at the potential value if such an opportunity arose;
13. A key catalyst for DRB-HICOM is the conversion of a letter of intent from the Ministry of Defence for 257 AV 8x8 armoured wheeled vehicles, worth about RM8 billion;
14. Speculation Tan Sri Syed Mokhtar Albukhary was rumoured to be the frontrunner in the 32% stake sale of POS by Khazanah, with the deal costing some RM700mil. DRB-HICOM owns 70% of Bank Muamalat while the balance is held by Khazanah;
15. KYM is going big on the development of an industrial park with the Perak State Economic Development Corp;
16. It is learnt that a consortium – Oriental Peral Harbor Sdn Bhd – has submitted a preliminary proposal to the federal government to take over the Penang port. Oriental Pearl harbor’s directors are Datuk Rosli Abdul Latif and Datuk Mohd Ramli Abu Bakar. Sources familiar with the port business say that Oriental Pearl harbor is led by Datuk Siew ka Wei, who is partnering companies under the China Shipping Co Ltd. Siew is the major shareholder of Ancom Bhd, Ancom Logistics Bhd and Nylex;
17. Sources say SapCrest is acquiring oil and gas companies which include acquiring loss making oil and gas players such as Petra Perdana Bhd … But Denied;
18. The moratorium on the selling of Masterskill shares held by pre-IPO shareholders expire in mid Nov 2010. While foreign funds have reduced their stakes in MEGB, local institutions funds are said to be picking up its shares;
19. Gamuda is keen to bid for Qatar ’s USD$45 billion MRT project following its successful bid to host the FIFA World Cup finals in 2022;
20. DRB-Hicom was unaware of any plans by Tan Sri Syed Mokhtar Al Bukhary to take the auto-banking group private. It told Bursa Malaysia it was not aware of a plan by the tycoon to offer between RM2.20 and RM2.70 per share which he does not own.
21. Tenaga has been actively pursuing projects in the Middle East and is one of the contenders for Saudi Arabia ’s US$1.8 billion Qurayyah power plant;
22. Vastalux directors were currently consulting their advisers on the next course of action and are not aware of any timeline fixed for the next course of action after a rejection of its revamp plan. Earlier sources say the Shapadu group, led by Datuk Shahrani Abdullah, will take control of beleaguered Vastalux if plan to inject some of its assets into the listed company materializes. Petronas had suspended Vastalux licence but it was appealing for a reinstatement;
23. Tamadam is said to be contemplating spinning off loss making warehousing business and privatizing its profitable food business, although management declined to comment;
24. Sources say Inch Kenneth mainstay is in plantations and tourism, has attracted some serious suitors for its 350 acre estate in Kajang, possibly including a government linked property developers;
25. Tunku Ya’acob, chairman of Mycron Steel Bhd, refuted the market rumour on the privatisation of Mycron. MIGB owns a 54.8% equity stake in Mycron;
26. Rumours that Stone Master would be involved in a merger and acquisition exercise with a foreign company. Stone Master produces marble and granite products;
27. CMSB’s cash pile grow to as much as RM881 million against RM485 million in total borrowings after disposing UBG, translating into net cash of RM395 million or RM1.20 per share. Speculation is rife that CMS may pay a generous special dividend to shareholders;
28. Jotech acquired a 40% stake in Rockhill Resources Ltd which owns a coal mine in Indonesia for US$2 million. Jotech is still awaiting the extraction permit from the local authorities due to delays. It expects to announce an update on the mine some time in 1Q2011;
29. SP Setia//E&O/YNHP/Glomac/BRDB: M&As candidates;
30. The decision rests in QSR’s board as to whether to accept Carlyle’s or Idaman Saga’s offer and no indicative time frame has been given by the latter as to when a decision will be known. Speculation is rife that some local parties are trying to match the PEF with either KUB Bhd or Ekuiti Nasional Bhd;
31. Ho Hup was awaiting Bursa Malaysia ’s response for a time extension to submit its regularisation plan. Ho Hup is a PN17 company;
32. SILK Holdings Bhd is awaiting government approval to raise by 30 sen the toll rate at the Kajang Traffic Dispersal Ring Road. The present rate is RM1. Earlier speculation that SILK may want to spin of fits highway division to get better valuations for its oil and gas business;
33. Rumours that Stone would be involved in a merger and acquisition exercise with a foreign company. Stone Master produces marble and granite products;
34. The ceasing of Tengku Ibrahim is perceived to be an indicator that selling pressure of Petra Perdana may ease soon. Should it win fresh contracts for its idle vessels, it will augur well for its earnings going forward. Its earnings visibility will only be certain when contracts, either from Petronas or other oil producers, are officially awarded;
35. Harrisons’ second and third largest shareholder has been gradually reducing his interest since May 2010 to 7.1%. The question now is who will emerge as a new shareholder. Will the existing major shareholder Bumi Raya further consolidate its holdings in the group?
36. Speculation that Eukinas was considering acquiring a stake in CyPark. However the company says it has not received any indication of interest from the fund, although it is open to opportunities with suitable strategic partners;
37. Emas Kiara Industries Bhd has proposed to sell its core business, technical textiles manufacturing, for RM100 million cash to US-listed Royal Ten Cate N V. By doing that, the company will have no core activities going forward but sitting on a net cash pile of RM36.2 million or 42.7 sen per share;
38. While Afzal is receiving some cash from the sale of his assets into TdC, he is likely to be using a big portion of that money to pay for exercising his options to raise his stake in PKV, the special purpose vehicle owning 30% of TdC. Sources say Afzal is exercising options to increase his stake in PKV to 51%;
39. TA’s lack of expansion in the stockbroking business - and the shift in focus towards property - may possibly be a prelude to the divestment of the former;
40. Satang new and exiting shareholder and AirAsia substantial shareholder Datuk Kamarudin Meranun and present a fresh regularisation plan to the authorities to uplift the PN17 status of Satang;
41. With the UEM Land, Sunrise deal rocking the local property scene, speculation has again surfaced that a SP Setia may be a target of some of sort of partnership;
42. Apart from a special payout or capital distribution, there has been speculation that LFIB will be privatized. Such an exercise would further consolidate the Lion group’s structure;
43. Daya Materials supplies to various companies within the Petronas Chemical group. It will benefit from the potential of more Petronas contract awards;
44. With its cash reserves amounting to about RM10.8bil, YTL Corp could easily acquire assets up to US$25bil-US$30bil without the need to raise more money;
45. Sources say Dayang is believed to be in the forefront to clinch an estimated RM2 billion worth of topside maintenance service contracts from Petronas and is expected to dish out in the next three to six months from Nov 2010;
46. Bursa Malaysia Bhd’s CEO said it is always open to exploring “collaborative initiatives” to help grow its business;
47. Goldman Sachs holds 135.17 million shares or 5.74% in Mulpha Intl. Mulpha International Bhd’s associate company FKP Property Group is touted as a possible takeover target by Stockland, a substantial shareholder of FKP … But Mulpha Denied;
48. DRB-HICOM had talked to six parties to sell a 30% stake in Bank Muamalat and efforts to find a strategic partner for the bank were still ongoing;
49. Sources say Ezra Holdings Ltd is looking to increase its stake in Perisai via the injection of assets … But the board Denied;
50. L&G flagship Bandar Seri Damansara development will be crucial growth driver in the coming years (2010 & Beyond);
51. FajaBaru is bidding for RM2 billion worth of building construction and Light Rail Transit-related infrastructure projects;
52. Three consortium are understood to be vying for a US$250 million turnkey project from Petronas for the development of the Sepat marginal oil field located 130km of Terengganu. The three consortium are MMHE and its partner, France based Technip SA; Kencana and London based Petrofac Ltd and Australia based Roc Oil Company Ltd and Griffin Energy Ltd. Sources say Kencana consortium have emerged as front runners;
53. Sources say Tasek (part of Singapore listed HL Asia Ltd), which is re aligning its business portfolio to further diversify its downstream activities, is among several parties eyeing MTD ACPI Bhd’s precast business;
54. Two shareholders of Seloga Holdings Bhd, owning a combined 21% stake, have called for a general meeting to remove Datuk Samsudin Abu Hassan as a director with immediate effect;
55. Dialog was highlighted as one of the companies that would spearhead the government’s aim of turning Malaysia into a regional oil storage and trading hub by 2017;
56. Specualtion that E&O is bidding for the the Wesley Methodist Church, which owns the 4-acre site where the Pykett Methodist Boys’ School sits along Burma Road … but It denied;
57. Sources say a corporate exercise could be imminent. There is speculation that a possible general offer, sale of assets or a hefty dividend could be in the offing. Kluang Rubber Co ( Malaya ) Bhd is Kuchai major shareholder. Kluang holds about 42 per cent of Kuchai. Kuchai holds 26 per cent of Sungei Bagan Rubber Co ( Malaya ) Bhd;
58. Sources said that a casino is being propose for the Karambunai IR … But KBunai Denied. Up to Oct 2010, KBunai has no shareholding in the SPV, nor has it received any official notification from the government or signed any MoU or agreement with SPV to develop Karambunai yet. However, both management of KBunai and SPV have concrete, specific, clear time-line plans and commitments to the Malaysian government to attain the desired results under ETP as envisaged by the Government;
59. Genting Malaysia Bhd has formed a partnership to bid for the “large casino” licence in Newham , UK , shortly after it bought over 46 casinos there. The outcome of Apollo’s Stage 2 application is expected to be known in February 2011;
60. A realignment of shareholders is brewing in Leong Hup Holdings Bhd. Going forward, markets are waiting to see if any new direction is taken after this;
61. Sources say Litrak & Grand Saga (Taliworks) is the next target for restructuring;
62. With Ekuinas behind current management and having board representation in Konsortium, this is set to change and could it also be part of a much bigger plan;
63. The Gan family of SKP said they bought more shares because its shares are “undervalued” and do not reflect the company’s strong fundamentals and production capabilities dispelling privatization exercise;
64. Sources say BKawan, biggest shareholder in KL Kepong, is a “compelling privatization target” and its shares could be worth RM18.02 each;
65. Sources say at least one foreign party is keen on EON Capital and is exploring the possibility of acquiring a stake in the bank which includes Primus’s 20.2% stake;
66. eNCoral Digital Solutions Sdn Bhd have acquired shares in Inix and emerged as a substantial shareholder in Inix with 22.83 million shares or 19.86%;
67. Glomac was keen to participate in the development of the over-3,000-acre plot in Sungai Buloh currently owned by RRIM;
68. Speculation IJM Corp Bhd and UEM Group Bhd may jointly submit to the Government a proposal for the MRT system;
69. Sources say IJM Corp is looking at listing its infra assets – in India as well as those in Malaysia – in India . The group is also exploring the possibility of a dual listing on Bursa Malaysia ;
70. IJM Land Bhd is looking ripe for possible privatisation.… But It Denied;
71. Public Bank is due for a re rating and dividend surprises as there is dividend certainty now and concerned over a capital raising exercise have abated;
72. The board and management of Jerneh would be evaluating very carefully the next course of action for the company after selling Jerneh Insurance for rm532 mil. It would not be in the insurance business due to the tight regulations;
73. Talk is that major developers like E&O, SP Setia, IJM Land and Mah Sing would have put in their bids to buy and develop the Penang Turf Club’s land;
74. Sources say Rank Group plc will have corporate activity in the company, “which may not be long in coming”. Quek’s Hong Kong-listed flagship Guoco Group Ltd owned a 29.25% stake in Rank (as at June 30, 2010) while Lim’s Genting Bhd held an 11.59% stake;
75. Who acquired Loke’s equity interest in Bertam Alliance could be indicative of future corporate developments in company;
76. Sources say Syed Mokhtar Al-Bukhary (MMC) has written to the country’s government offering to buy 1,200 hectares of RRI land outside of KL;
77. Will Datuk Ooi Kee Liang make a difference and turn around Equator’s fortunes after he has emerged as the single largest shareholder in Equator Life Science Bhd”;
78. Will a portion of Gopeng’ money (rm200 million) be returned to shareholders as dividends after capex?’
79. Sources said AZRB has emerged as frontrunner to win a RM300 million job to build a 300-bed hospital in Kuantan, Pahang for UIA;
80. Speculation is that Landmarks’ flagship asset on Bintan island in Indonesia may be revived soon. The company officials confirms that the company is indeed resuming the project, but adds that it is too early to share details;
81. Genting Bhd is one of the candidate looking into Tanjong’s gaming business;
82. HELP is planning a secondary listing of its shares in Singapore over the next 18 months to fund its expansion plans;
83. Several shareholding changes are happening at Infortech Alliance Bhd, but observers say they have no inkling of what may transpire in the company;
84. Sources say members of the consortium (Redevelopment Of RMAF base) are 1MDB, LTAT and Datuk Desmond Lim of Malton Bhd. It cannot be ascertained if Malton or Lim, through his private company, has a stake in the consortium;
85. Rumoured that a M&A candidate is ECM Libra;
86. Market talk has it that cash-rich SKP may be taken private.
87. Sources say Sarawak Energy has submitted its proposal to the Bakun project’s owner Sarawak Hidro Sdn Bhd. Other bidders are 1MDB, Malton/QIA;
88. TTAGB chairman Datuk Tony Tiah Tee Kian has been buying TAGB’s ICPS since Sept 2010;
89. TNB is interested in bidding for the second block of the 1,000-MW coal-fired power plant in Manjung if it is given the opportunity to participate;
90. Sources say YTL Corp may gain from proposals to build a high-speed rail network linking Kuala Lumpur and Singapore ;
91. Speculation that Quek has a plan for SSteel in terms of operations;
92. The Terengganu government, via its investment arm and other units, has been increasing its stake in Golden Pharos;
93. Elliott Capital Advisors LP bought a 5.1 per cent of KNM’s stake;
94. Goodyear may be in talks with an Indian company for a potential merger with Bombay Stock Exchange-listed Indag Rubber Ltd … But It Denied;
95. Sources say Datuk Abdul Hamad Sepawi s believed to be closed to selling his entire stake in Sarawak Plantation via subsidiary Cermat Ceria which held 30.35% stake;
96. DRB-Hicom is looking at possibility of listing some of its subsidiaries … the services sector, but did not set a timeline for this to happen;
97. Kimlun Corp Bhd, a one-stop engineering and construction services provider, is expected to benefit from the soon-to-be-announced LRT extension project;
98. EIG remains to be seen whether EIG’s new shareholder will find new ways of adding value to the group;
99. Rerating catalyst for Muhibbah if it can collect its receivables from Asian Petroleum Hub otherwise provisions would have to be made for doubtful debts;
100.Telekom Malaysia has the capacity to return cash above its minimum dividend policy of RM700 million per annum. TM may consider raising its dividend payout after the current financial year ending Dec 31, 2010 (FY10) as its capex for the high-speed broadband (HSBB) project will peak in 2010;
101.Market talk that RGB International Bhd’s (formerly known as Dreamgate Corp Bhd) disposal of a 40% stake in Chateau de Bavet Club Co Ltd is imminent with the issue of a note to bondholders seeking approval for the sale. Discussion (for the sale) is still in progress and subject to finalisation. No timeline has been set;
102.MMC Corp Bhd has entered into a JV agreement with Zelan Bhd to bid for infrastructure projects under the 10MP. The JC company is named MMC Zelan Sdn Bhd (MMC holds 60% and 40 % held by Zelan;
103.Silver Bird’s rating outlook may be revised to stable if it is able to sustain improvement in its financial performance and also halt decline in its market share. Conversely, its ratings may be downgraded if its performance comes in below rating’s revised expectations, or if GMN contract exposes the group to additional risks that are not adequately addressed;
104.Market talk that BRDB may be taken private. The plan may still be in its early stages but it is said to be under serious consideration;
105.Tenaga’s stock may be re-rated on the back of robust free cash flow, positive company’s active capital management in terms of reducing debts, stepping up dividend payouts, impact of a fuel pass-through mechanism on the company in the longer term and is well poised to benefit from stronger economic growth and potential tariff hike;
106.Sime Darby is under-owned by institutional funds due to the losses across the group’s energy and utilities operations. It is in an inflection point for an upward re-rating. The potential restructuring of Sime Darby’s key businesses might include a separate listing for its plantation and property units;
107.QL Resources may raise money via a private placement of new shares, or bond issues for capex;
108.IJM Corp has a minority stake (39%) in the Kemaman port speculation that EPIC is looking at “kicking” IJM out of the port;
109.The Selangor state government is still studying the proposals submitted by the companies and are evaluating and figuring out the best business model for this project. It confirmed that I-Bhd would lead the Wessex Water I-Bhd group portion for the project;
110.Khazanah Nasional Bhd has set in motion its plan to divest its 32.21% stake in POS. The leading candidate is a JV by Ekuiti Nasional Bhd and CVC Capital Partners. The other notable names that have cropped up are Sapura Group and Scomi Marine Bhd, Knosortium Logistic Bhd have also put in a bid;
111.Speculation that the re-listing of Malakoff could take place sooner that expected? Sources say Malakoff has already started to lay the preliminary groundwork for a re-listing, but details remain sketchy at this stage as at Aug 2010;
112.BCorp holds an interest of 31.66% in TMC Life Sciences. It is uncertain if TMC Life Sciences still fits into this picture, especially with the emergence of the new shareholder. Should BCorp choose to divest its stake in TMC Life Sciences, would Lim then increase his stake in the company?;
113.The change in TMC Life controlling shareholder may lead to some spillover interest in StemLife Bhd. BCorp has a 31.66% stake in TMC Life Sciences and a 12.17% stake in StemLife;
114.The acquisition of YNHP shares by its major shareholders and directors could be a preclude to bigger corporate moves;
115.PJI has put a bid to the UEM Land-Bina Puri Holdings Bhd JV for a mechanical and electrical engineering services contract at LCCT;
116.Delloyd is currently in discussions with SPNB on the possibility of manufacturing a lower decked long bus;
117.Syed Zainal reaffirmed about a possible foreign partner for Proton, stating that the group was in discussions with various global OEMs;
118.There has been talk that TimeDotCom could be a beneficiary of its linkage Global Transit Intl Sdn Bhd, which is involved in the development of the Trans-Pacific Unity submarine cable system;
119.Mieco major shareholder BRDB was still in preliminary and exploratory discussions with a Chinese party on selling its stake in Mieco to the latter. BRDB would make the appropriate announcement;
120.Sources say state controlled Terengganu Inc Sdn Bhd is planning to privatize its 40.13% unit EPIC. AZRB which has a 21% stake in EPIC … But Denied;
121.Xingquan has been actively seeking new partners for some time, is finalizing talks with at least one local party to take up a substantial stake in the company but no deal is impending at the moment;
122.Speculating Privatization Zelan But Deny in May 2008;
123.A white knight may emerge for KKB. Sources say the company is planning to diversify into the property and construction sector with the appointment of chin;
124.Sources say E&O’s major shareholders are believed to be considering a privatization of the property develop. They are talking to banks to finance the exercise;
125.Speculation is rife that Ekuinas, with JV partners could be eyeing a stake in POS. Ekuinas will announce its next investment project by the end of 2010;
126.CIMB is in the process of negotiation with the relevant authorities on how to get listed in Jakarta ;
127.UEM Group Bhd is keen to bid for the RM43 billion KL MRT project;
128.LSE-listed Aseana Properties Ltd, a unit of Ireka Corporation Bhd, may consider returning excess cash to shareholders following the proposed disposal of properties in 1 Mont’ Kiara for RM333 million. Aseana expects to complete the proposed transaction by year-end (2010);
129.UEM Group were no plans yet to re-list the company or raise capital but did not rule out the possibility in future;
130.Fitters’ MD Datuk Richard Wong’s had significantly increased his equity interest to over 30% of the company’s paid up capital. It plans to attract institutional investors in the near term;
131.The deadlock in the proposed consolidation of water assets in Selangor may have been broken with all the parties close to agreeing on pricing, and ironing out the issues of operations and maintenance (O&M) … KPS/JAKS/Puncak Niaga/KHSB;
132.Speculation is rife that KEuro is close to finalizing its bid for the rm3 billion Westcoast Expressway (WCE), and in driver’s seat is KEURO’s largest shareholder Tan Sri Chan Ah Chye;
133.Tradewinds (M) Bhd will trim its stake in Bernas to shed some debts;
134.Scomi Engineering Bhd is planning to propose a monorail system in Greater KL to support the proposed MRT project under the 10MP. Scomi International is also eyeing a major monorail construction project in Chennai;
135.Gamuda-MMC JV has been bandied about for the MRT project — Gamuda Bhd and MMC Corporation Bhd. UEM Group Bhd is also keen to bid for the RM43 billion KL MRT project;
136.MBSB plans to become a full-fledged bank. Currently (April 2010), they are just at the discussion stage and have not submitted anything official as it will require shareholders' approval first;
137.QL Resources Bhd acquired 11 million shares or 23.29% of Lay Hong Bhd. Will QL Resources would increase its stake in Lay Hong or seek board representation;
138.Scomi Engineering consortium was the second lowest bidder RM3 billion Tiradentes monorail project in Sao Paulo , Brazil , in the first round, but with their specifications complying with the requirements of the Brazilian authorities. The lowest bidder, it seems, had fallen short on certain counts;
139.MRCB is front runner in acquiring several parcels of land in KL and Selangor, including 60.7ha in Jalan Cochrane, an 8 ½ ha tract in Jalan Ampang Hilir and another 400ha in Sungai Buloh under the purview of the Rubber Research Institute of Malaysia. It will also likely receive a sizable portion of MRT Construction works for the portion leading to the RRIM land. Another wildcard could be MRCB’s involvement in the redevelopment of Pudu Jail given its prior work for Gaya Bangsar condominium;
140.IOI Corporation Bhd may write back the impairment loss made in the financial year ended June 30, 2009 (FY09) on a joint-venture property project in Singapore towards the end of the current financial year (2010) since the value of property has risen in the island state;
141.Ingress’s power engineering and projects division is expecting significant progress on the Ipoh-Padang Besar double-tracking project for System Works. New awards are expected to materialize;
142.Faber declined to confirm nor deny speculation that it may be buying Pantai Holdings Bhd’s Malaysian government concession business. Pantai Holdings Bhd does not rule out selling its concession business "if the price is right"
*** UNCERTAIN ***
1. Sarawak Region Corridor
2. The Sabah Development Corridor
3. The Asia Petroleum Hub In Johor
4. The Solid Waste Management Play
5. Flow of OPEC Petrodollars
6. The Trans-Peninsula Pipe Project
*** UNCERTAIN ***
7. Implementation Of the Ninth Malaysia Plan
8. A Stronger Ringgit Regime (Further Appreciating)
9. Privatization And M&As Deals (The Banking Sector)
10. Asset Reflation Theme (Strengthening Ringgit)
11. Sarawak Corridor Of Renewable Energy (SCORE)
12. The Eastern Corridor Development Programme (Petronas-Led)
13. Northern Corridor Economic Region
14. Iskander Development Region (IDR) In South Johor
15. RM9 Billion LRT Extension Project
16. The Water Services Industry
17. A U-, V-, W- Or L-Shaped Global Economic Recovery (Uncertain)
18. Fiscal & Monetary Pump-Priming (Uncertain Due To Eurozone Debt Crisis)
19. The Economic Stabilization Plan, Mini Budget & Budget 2010
20. Interest Rate Cycle (Divergence Between Developing & Developed Economies)
21. Decoupling – Emerging Economies Are Disconnected From Developed Countries (China-Led Process Decoupling From The West)
22. Further Liberalization Of The Services/Financial Sector (Speculating Offshore Trade In Ringgit)
23. The Malaysian Government’s Reform “Train”
24. GLCs Revamp
25. The ‘Third’ Link Bridge (Eastern Johor) To Singapore (Uncertain)
26. A ‘Third Stimulus’ Package (Uncertain)
27. Second Wave Privatization
28. New Economic Model (ETP)
29. 10th Malaysia Plan And Capital Master Plan -> New Economic Developments Model
30. Sarawak State Elections
31. The Malaysia Political Trend
32. RM36 Billion MRT System
33. The Malaysia Singapore JV Involved In KTMB Land In Singapore
34. Malaysia Listed As China’s QDII Destination
35. The Redevelopment Of Kampung Baru
36. The Redevelopment of Sungai Besi RMAF
37. The Redevelopment of Pudu Prison
38. The Redevelopment of RRIM
39. Government Backed Entities – 1MDB, Ekuiti Nasional Bhd
40. The Bakun Dam
41. RM 15 Billion Project To Rehabilitate & Develop Polluted Klang River
42. The RM5 Billion Warisan Merdeka
43. The Development Of Dataran Perdana (KLIFD)
44. The KL-Singapore High Speed Train Project
45. The Pengerang Independent Deepwater Petroleum Terminal Project
Watch List In 2010 - 2011
1. The proposed changes to takeover rules by the SC will be announced in “a few months” from July 2010 as they are being bundled together with other investor protection initiatives (Pending);
2. The initial part of the Pahang-Selangor interstate water transfer project, which is the RM1.3bil tunnelling package, had been awarded in May 2009. The only portion of the project which had yet to be opened for tender was the RM4bil to RM5bil Langat 2 water treatment plant. The other portions – the Kelau dam and Semantan piping works – are opened for tender (Pending);
3. Minister in the PM’s Dept Datuk Seri Idris is leading a group of comprising representatives from the private and public sectors to come out with a master plan to develop a cluster of large O&G players;
4. Datuk Seri Idris Jala says Petronas will be announcing more incentives for the O&G industries as the government sets the stage for the country to be a regional hub for oilfield service;
5. The announcement by Malaysia 's central bank that it would allow offshore settlement in ringgit of trade in goods and services triggered speculation that Bank Negara Malaysia (BNM) may allow offshore trade in its currency. Any move to internationalise the ringgit, such as allowing the currency to trade outside of the country, would require the approval of the government as well as the central bank;
6. The feed-in-tariff (FiT) mechanism under the Renewable Energy (RE) Act will enable individuals to earn income by selling electricity generated from renewable resources at home. The Government was currently in the process of preparing the Act for a first reading in parliament in Dec 2010;
7. Khazanah could possibly lower its shareholding or exit altogether in the near term of about six months starting Aug 2010, including those under UEM Group. The likely assets (for divestment) are PLUS Expressways Bhd, CIMB Group Holdings Bhd, Tenaga Nasional Bhd, Time Engineering Bhd, TIME dotCom Bhd and DRB-Hicom Bhd;
8. Sarawak State Election Is Expected To Be Held In 1H2011 But Speculation That It Could be held As Early As End Of 2010 (due by May 2011);
9. The Land Public Transport Commission (SPAD) will draw up a public transport masterplan in six to 12 months from September 2010 to ensure the holistic development of public transport in the country;
10. PNB will conduct a study on the Government’s plan to redevelop Kampung Baru. The Kampung Baru Development Corporation, which serves as the planning and governing body for development actvities in Kampung Baru in Kuala Lumpur, is expected to be operational next year (2011);
11. PAAB is hoping to complete its planned acquisition of water assets in Selangor by the end of the year (2010);
12. The Kampung Baru Development Corporation, which serves as the planning and governing body for development actvities in Kampung Baru in Kuala Lumpur, is expected to be operational next year (2011);
13. RM15 Billion project to rehabilitate and develop the polluted Klang River .. The Klang River stretches 120km, with the first 80km under the purview of Selangor and the balance 40km under the Federal Government. The massive project is being spearheaded by Selangor MB Tan Sri Abdul Khalid Ibrahim;
14. The full scope of MREH’s participation in the projects to be located within the KLIFD will be finalised in 2011, following completion by 1MDB of the KLFID master plan;
15. Specific details of related to SCORE’s projects, all of which would be led by 1MDB, would be available in due course. Mubadala and 1MDB were starting preliminary assessment work on the SCORE project;
16. Datuk Seri Najib has told the party faithful to get ready for 13th General Election and to get into battle mode. Talk that the elections could be held as early as July 2011. He and Muhyiddin will begin a nationwide tour of all the states beginning early 2011 to meet the people and party grassroots;
17. Malaysia will only approach Singapore on the bullet train project connecting the countries’ capital cities once its feasibility study is completed by mid-2011. The study is due to start in January 2010 and the results will be discussed in the Cabinet;
18. Design details of the proposed MRT project in the Klang Valley are being finalised and will then present them to the Economic Council and the Cabinet, and expect to finalise the project before the end of 2010. Physical work for the project will start in the middle of 2011, with some of it being parcelled out for tender;
19. The second Capital Market Masterplan for Malaysia from 2011 to 2020, which is expected to be released in the first quarter of 2011, will address key areas such as the development of a private pension fund framework, boosting retail participation in the local stock market, working capital improvement and higher attention to governance;
20. SPAD to draw up a 20-year master plan to ensure the holistic development of public transport in Malaysia and submit to the government by September 2011
Watch List In Coming Week(s)
1. Expecting more positive news flow in the coming months (Oct 2010 & Beyond) for the construction & O&G sector. There will be a slew of project roll-outs and tender awards in the coming months (Oct 2010 & Beyond);
2. A number of important announcements on economic reform could be made in Dec 2010. First a more liberal policy on employing non Malaysian nationals could be announced which would spur economic reform by attracting more skilled and knowledgeable workers to Malaysia . This would be a start to real economic reform in policies rather than many infra related projects announced thus far. Second a potential Cabinet reshuffle is on the cards.
Corporate Watch List In Coming Months
Dec 2010 …
1. Ekuiti Nasional Bhd (Ekuinas) will announce its third investment before year-end (2010). They are talking with a number of parties but have not decided on any companies or sectors. This (third investment) is to fulfil its third objective to invest in the non-core assets of either GLCs, PLCs or MNCs;
2. Speculation that Khazanah will pare down its stake in Tenaga, in which the former holds 35.6% stake. An announcement could be made in Dec 2010. However, Khazanah’s timing may coincide with Tenaga making a significant announcement before year ends (2010).
3. The offer by UEM Group and EPF would be tabled at PLUS' extraordinary general meeting in Dec 2010;
4. PM Datuk Seri Najib has dismissed reports of a Cabinet reshuffle in anticipation of snap polls early 2011. The reports said the reshuffle, expected by Dec 2010, would enable Najib to form a strong team to help him implement the economic and transformation policies he has put in place and carry the Government into the 13th general election;
5. Deadline of Dec 22, 2010 Sunrise ’s minority shareholders to accept the UEM Land’s takeover offer;
6. Postal Land Act …The proposed amendments of the Act is to be tabled in parliament Dec 2010;
7. The legislation on renewable energy has been prepared and it could be up for first reading in Parliament in mid Dec 2010. Minister of Energy, Green Technology and Water Datuk Seri Peter Chin said the legislation included the feed-in tariff scheme that enables consumers to sell renewable energy to utility companies;
8. DRB-HICOM Bhd is scheduled to sign a definitive agreement on December 21 2010 with Volkswagen AG, Europe's largest carmaker, to assemble VW cars in Malaysia
9. MRCB and IJM Land Bhd have extended the validity of their MoU -- to merge and create the country’s second-largest property company to Dec 29 from Dec 14 2010;
10. LCL would be de-listed on Dec 27 2010, unless an appeal is submitted to Bursa Securities on or before Dec 22 2010, which is the appeal timeframe. Any appeal submitted after the appeal timeframe will not be considered by Bursa Securities.
Jan 2011 …
1. KEURO’s directors are of the view that approval to implement the WCE will be obtained in FY2011 ending Jan 31, 2010;
2. MTD Capital Bhd could rake in at least some RM150 million in annual toll revenue from the SLEX in 2011 if higher toll rates there are implemented in January 2011;
3. Observers understood from the management that the endorsement of RCE’s compliance with SKM’s guidelines is just a validation exercise. Once all the documentation has been submitted, endorsement should follow shortly — as early as Jan 2011;
4. JPK’s proposed regularisation plan will be announced and submitted to the relevant authorities by Jan 31, 2011;
5. Unisem’s directors expected the group’s business “to decline moderately in the fourth quarter 2010 as a result of anticipated inventory adjustment in the industry but would nonetheless remain profitable;
6. Transmile has more liabilities than its assets due to the ballooning accumulated losses, depleting cash and lower value of its assets. Bondholders are not able to proceed with winding-up TGB and its subsidiaries as the latter had sought for a RO from the court to stop any proceedings by its creditors until January 2011. The sale of its four MD11 aircraft, which were fair valued at RM242.11 million as at Sept 30, is the key part of TGB’s debt restructuring;
7. EON Capital said the judge will deliver the verdict of its case on Jan 19, 2011 after reading the written submissions as well as hearing oral submissions from the respective counsels;
8. JCorp and Johor Ventures Sdn Bhd are seeking the removal of Muhammad Ali Hashim as a director of Kulim ( Malaysia ) Bhd and KPJ Healthcare Bhd with immediate effect. They had requisitioned for the EGM to be held on Jan 17, 2011 for Kulim while on Jan 26 2011 for KPJ Healthcare
Feb 2011 …
1. Ho Hup Construction Company Bhd has been given until Feb 4, 2011, to submit a revised regularisation plan, failing which the company’s shares may be suspended and Ho Hup de-listed from the local bourse;
2. Baneng expects its proposed restructuring scheme, including debt revamp to be completed by the third quarter of 2011. It expects to get the approvals from all relevant authorities by February, 2011 and complete the proposed capital reconstruction by mid-May 2011. The company has sitting on the board as an independent non-executive director Tengku Sulaiman Shah, the brother of the Sultan of Selangor;
3. Axiata has stated that it intends to write down the value of its 19.1% stake in Idea during its fourth quarter, which be announced in Feb 2011;
March 2011 …
1. Notion’s reputation hinges on the Samsung 2.5” base plate project. Successful execution will put earnings back on track and see investors’ confidence regained. It is a make or break by March 2011. Successful execution will put earnings back on track and see investors’ confidence regained;
2. China’s 12th Five Year Plan will be unveiled at the National People's Congress on March 2011. It is expected to strongly emphasize a shift to domestic consumption and less reliance on export manufacturing and heavy industry;
3. The financial regularisation of Seloga has to be done before March 31, 2011 or be de-listed. Former Renong boss, Tan Sri Halim Saad, has a 26.63% equity stake in Seloga;
4. TdC is expected to hold an EGM in March 2011 to seek shareholder approval for its proposed purchase of the Global Transit entities which own a 10% stake in the 9,620km Unity Cable System. However, the proposal draws criticism partly because it is related party transactions, as Afzal and COO Megat Hisham Hassan are directors of Megawisra Sdn Bhd. Afzal is the major shareholder in Megawisra with a 75% stake. Megawisra in turn, owns the majority of the companies to be acquired under the proposal;
5. Sime Darby Bhd was considering selling off some of its businesses and the announcements was due in 2011. There was a handful of businesses that might be divested or offered to its joint-venture partners to be taken over. The final decision will be made by the end of March 2011
Few Months From Dec 2010 …
1. Maybank must “refloat” a 20 per cent stake in PT Bank Internasional Indonesia within a six-month period;
2. Jerneh Asia Bhd has 12 months from Dec 2010 to seek a new core business;
3. SAB is set to unlock its holding of 644.49 acres of land bordering Kota Kemuning, Shah Alam, although its board of directors are still exploring its options before making any decision in the next three to six months;
4. ARK Resources Bhd is closed to getting a RM100 million job to build a commercial development in Negri Sembilan. But the contract will only be firmed up if the company is able to complete its restructuring exercise within the next four months from Nov 2010.
5. MARC was in the process of completing its review on Petra Perdana and expected to complete the review over the next four to five weeks (Nov – Dec 2010);
6. Tenaga plans to raise RM3 billion to RM4 billion to finance the first block of the 1,000-megawatt coal-fired powered plant in Manjung.
7. Talk that the 13th general elections could be held as early as July 2011. Datuk Sri Najib and Muhyiddin will begin a nationwide tour of all the states beginning early 2011 to meet the people and party grassroots;
8. Contract awards from the SOGT were expected to gain momentum going into the tail end of 2010 …Kencana, Dayang Enterprise Holdings Bhd, SapuraCrest Petroleum Bhd and Petra Energy Bhd as possible contenders and beneficiaries of the SOGT’s future jobs;
9. The financial lenders of Carotech are reviewing and considering the proposed scheme. The CDRC gave it six months from July 1, 2010 to complete the proposed scheme. Tabung Haji has been upping its stake in Carotech with a 6.93% stake as at Sept 3 2010;
10. Zeland had a time frame of 12 months from Sept 2010 to dispose of the 30 million IJM Corp shares in the open market and/or through direct business transactions;
11. Linear saw the entry of white knight with appointment of three new directors, who are planning to put the company back on its feet again. A new director is Datuk Ling Keak Ming, Ling, a former director of Magnum Corporation Bhd from 2000 to 2007, is closely associated with the MWE Holdings group … But It Denied;
12. Cash-rich (RM800 million) NCB Holdings Bhd with no borrowing, may declare a sizable dividend payout at year-end (2010), although industry observers say the port operator is going to need all the cash it has;
13. The Energy Commission has asked for proposals from two power plant operators with regard to the second 1,000MW coal-fired power plant. It will evaluate who has the better proposal and will recommend to the Government to award to one of these two operators … MMC Corp/Tenaga;
14. Genting Bhd intended to purchase up to a further 362.207 million of its shares (representing 6.13% of the issued and paid-up share capital) within the next 10 months from Aug 2010;
15. Proton’s MD Datuk Syed Zainal Abidin said Proton will undertake a major restructuring programme by year-end (2010). Speculation that Proton will merge with Perodua and disposing Lotus … But it Denied;
16. CDRC had via its letter dated Aug 11 2010 accepted Limahsoon’s application. The CDRC had given the company six months from Aug 11 2010 to complete the proposed debt revamp;
17. Feasibility study on a proposed MRT system (Gamuda/MMC Corp) in KL will be completed in Sept 2010. The commission will take a look at the three-month from Sept 2010 study and submit it to the government, which will decide on the proposal;
18. Scomi Eng had submitted a proposal to the Chennai’s state government about three months ago and hopefully, by year-end (2010) there will be some developments;
19. Sources say JAKS has teamed up with a reputable local contractor to bid for the piping package worth up to RM400mil – with a result to be known by end-1H 2010;
20. UEM Group Bhd has no plans yet to dispose of its 45% stake in Time Engineering Bhd, but will do so if there are interested parties with substantial game plan. Time Engineering had received its shareholders’ mandate in July 2009 to sell its entire stake in TdC at no less than 48 sen a share;
21. PJI is in process of a capital restructuring exercise which hopes to complete in six months (July 2010 – Dec 2010). It is also undergoing a management reshuffle. It has disposed two of its assets;
22. Petra Energy/Perdana is confident of securing a "significant chunk" of the contracts by Petronas worth RM3.2 billion of which the results will be known in six months from June 2010;
23. Ramunia was working out its financial regularisation plan and hoped to exit the PN 17 status by the end 2010. It would be meeting its secured and unsecured creditors on May 7 2010 to work out the payment scheme. It had RM347 million in borrowings;
2011 …
1. JCorp is confident of restructuring its RM3.6 billion debt by the first quarter of 2012. A public announcement on the finalised details of the scheme will only be made in 2011;
2. Sources say the EPF will hive off another 9% stake in RHB Capital soon. The EPF is looking to sell the shares to a diverse group of institutional FM instead of strategic investors. The EPF had until June 2011 to reduce its interest in RHB Capital;
3. The Perak state government is confident that the feud between two of Integrax Bhd's major shareholders, involving a big investment in the Vale transhipment project, will be resolved by early 2011.
4. Hiap Teck will start construction of rm750 million blast furnace in 2H2011;
5. Kencana is seeking strategic partners to further enhance its business opportunities and is not interested in mergers. The company planned to raise about RM800 million in 2011. The details will be revealed in the first half of 2011. Earlier speculation that Kencana may see a new shareholder … US based McDermott Intl Inc is looking to buy up to 5% of group CEO Datuk Mokhzani’s stake in Kencana. However he has firmly denied the speculation;
6. The proposed exercise is between YTL Corp/YTL Land expected to be completed by 1H2011;
7. AirAsia X Sdn may sell shares in Europe and Asia as early as next year (2011)
8. The next package to be dished out is for Kelau Dam in Pahang worth RM200mil to RM250mil, possibly early 2011 … IJM/JAKS;
9. The proposed merge MRCB & IJM Land company will be listed after the second quarter of 2011;
10. BP Plastics was applying for economic concession rights to approximately 10000ha of land in Cambodia for agricultural purposes. The outcome of the land application is expected to be known early 2011;
11. Airasia may see maiden profit contributions from its Thailand and Indonesian associates in 2011. The two associates are expected to pay up the RM800 million owed to Airasia over the next two years (2011-2012), a move which will boost its cash position of almost RM1 billion now (Nov 2010). Plans to list its associates are also on track … Indonesia and Thailand ;
12. LBS much-anticipated China development may finally be getting off the ground and the company’s focus on affordable landed housing is drawing in strong sales. Its China project could be launched in the second half of 2011;
13. Loss-making GPacket, which is burning cash for capex and customer acquisition, is on track to be profitable at the operating level by 1QFY11 ending March 31;
14. Maybank is rumoured to be keen on acquiring OSK Holdings Bhd, which is on expansion trail in the Asean region, in a move to beef up the former’s investment banking arm. Sources say OSK Holdings Bhd is believed to have appointed Goldman Sachs to explore the possibility of finding a suitor or a strategic partner;
15. A possible privatization motivating factor for Hap Seng Consolidated to undertake such an exercise could be its major shareholder – the Lau family from Sabah – looking at further rationalizing the family businesses held under different entities;
16. The key re-rating catalyst for Faber would be the outcome of its local HSS concession talks. Meanwhile, a cash pile of RM170mil as at the end of June and a healthy balance sheet would provide Faber the flexibility to respond to any merger and acquisition opportunity;
17. There could be new substantial shareholders in the form of Indonesian investors and Middle Eastern funds surfacing in Scomi Group quite soon. The new shareholders have been accumulating Scomi Group shares on the open market for sometime and are close to surfacing in the company;
18. The Casino Regulatory Authority in Singapore has received licence applications from junket operators endorsed by Genting SP. It is believed that the junket operators would get their licence by early 2011;
19. Ariantec Global is hopping to see the entry of a new shareholder in the form of GLC by the first quarter of 2011. It is hopping to complete a private placement to the GLC. The company is expecting to secure more of such deals especially from the Ministry of Education by the end of fourth quarter 2010.
20. The entry of new major shareholders in Mithril is seen as heraldings new chapter in its corporate annals. Not only it clears its debts under a corporate restructuring, but it will also see the injection of an Indonesian palm oil processing company. The company expects to be out of the PN17 list upon completion of the acquisition by the third quarter of 2011;
21. Expectation that HWGB’s tin mine will commence production by year-end (2010) and will help turn the company around … revenue to start flowing in FY11 ending December;
22. Hong Kong-listed Galaxy Entertainment Ltd opens its large integrated resort facility in Macau in the first quarter 2011;
23. Litrak, the concessionaire of Damansara-Puchong Highway (LDP) is expected to obtain government approval for a toll increase next year (2011).
24. Sources say Axiata may raise its dividend payout in 2011 with to increase its payout from 30 per cent and still maintain a healthy balance sheet;
25. Ibraco Bhd’s proposed regularisation plan to exit the PN17 status is expected to be completed by the 1Q2011, paving a way for the lifting of Ibraco from the PN17 status;
26. MPHB’s management was looking at re-listing Magnum end of 2010 or in 2011. The company was taken private in 2007;
27. Kurnia Asia is reviving its plan for an insurance venture in Cambodia with a new partner. It is applying for insurance licenses in Cambodia but operations are only likely to come onstream in 2011;
28. Haisan has approximately 11 months (July 2010 – June 2011) to submit its regularisation plan to the relevant authorities for approval;
29. Several companies made presentations to the NKEA lab o the KL-Singapore high-speed train project. Among them were YTL Corp Bhd and Hartasuma Sdn Bhd, which was said to be partnering a Chinese state-owned firm. The proposals for the HSR were still at the conceptual stage and the next stage would be for a feasibility study to be conducted in 2011;
No Timeline Has Been Set …
1. The revival of the Sabah dam project worth at least RM1 billion was a wild card for WCT. WCT has submitted its bid for the Klang Valley LRT extension works;
2. A JV formed by Genting group and VinaCapital has obtained approval for a US$4 billion casino resort project in Hio An city;
3. Olympia, a company under gaming and property magnate Tan Sri Yap Yong Seong, is seeking to put in a RM2.25 billion bid for Pan Malaysian Pools Sdn Bhd (PMP), the gaming arm of Tanjong plc. But the company has not been able to firm up a financing plan which is why it has not submitted an offer yet;
4. Lion Industries’ shareholders can expect higher dividend payment under the company debts restructuring scheme, dating back to 2003, has finally been lifted;
5. GHL SYS substantial shareholder, Simon Loh Wee Hian is requisitioning an EGM to remove interim chairman and group MD Tay from the board with immediate effect;
6. Speculation that RHB Capital is interested in EON Capital. The banking group is rumored to have given EON Capital a second look;
7. The Naza brothers resign their board memberships, reduce stakes in Jetson. Following the sale, Pavillion still owns 21.7%. MD of Jetson Datuk The is believed to have acquired the 7.2% stake disposed by the brothers;
8. Excess capacity, high raw materials and low demand will possibly lead to further consolidation among the rubber glove players and Top Glove is in a good position to further enlarge its business when the opportunities arise;
9. Datuk Gan, the executive chairman of Technic Group Bhd, increased his indirect stake to 38.71%. Sources say there is no intention to take the company private. Gan is also substantial shareholder in SKP Resources with 70.99% stake;
10. Genting HK is one of the private investors participating in building the US$15 billion Bagong Nayong Pilipino-Entertainment City Manila under the PAGCOR. The project is planned on reclaimed land around the Manila Bay area and is meant to rival established gaming and entertainment areas such as Macau and Singapore . However, the media has reported that the new administration under President Benigno Aquino has called for a review into these investments;
11. IJM and MRCB would be participating in the tender for Package B of the LRT extension project;
12. MK Land Holdings Bhd is not ruling out the possibilities of merging with other property players. However, the group had yet to receive any proposals. They would look at the potential value if such an opportunity arose;
13. A key catalyst for DRB-HICOM is the conversion of a letter of intent from the Ministry of Defence for 257 AV 8x8 armoured wheeled vehicles, worth about RM8 billion;
14. Speculation Tan Sri Syed Mokhtar Albukhary was rumoured to be the frontrunner in the 32% stake sale of POS by Khazanah, with the deal costing some RM700mil. DRB-HICOM owns 70% of Bank Muamalat while the balance is held by Khazanah;
15. KYM is going big on the development of an industrial park with the Perak State Economic Development Corp;
16. It is learnt that a consortium – Oriental Peral Harbor Sdn Bhd – has submitted a preliminary proposal to the federal government to take over the Penang port. Oriental Pearl harbor’s directors are Datuk Rosli Abdul Latif and Datuk Mohd Ramli Abu Bakar. Sources familiar with the port business say that Oriental Pearl harbor is led by Datuk Siew ka Wei, who is partnering companies under the China Shipping Co Ltd. Siew is the major shareholder of Ancom Bhd, Ancom Logistics Bhd and Nylex;
17. Sources say SapCrest is acquiring oil and gas companies which include acquiring loss making oil and gas players such as Petra Perdana Bhd … But Denied;
18. The moratorium on the selling of Masterskill shares held by pre-IPO shareholders expire in mid Nov 2010. While foreign funds have reduced their stakes in MEGB, local institutions funds are said to be picking up its shares;
19. Gamuda is keen to bid for Qatar ’s USD$45 billion MRT project following its successful bid to host the FIFA World Cup finals in 2022;
20. DRB-Hicom was unaware of any plans by Tan Sri Syed Mokhtar Al Bukhary to take the auto-banking group private. It told Bursa Malaysia it was not aware of a plan by the tycoon to offer between RM2.20 and RM2.70 per share which he does not own.
21. Tenaga has been actively pursuing projects in the Middle East and is one of the contenders for Saudi Arabia ’s US$1.8 billion Qurayyah power plant;
22. Vastalux directors were currently consulting their advisers on the next course of action and are not aware of any timeline fixed for the next course of action after a rejection of its revamp plan. Earlier sources say the Shapadu group, led by Datuk Shahrani Abdullah, will take control of beleaguered Vastalux if plan to inject some of its assets into the listed company materializes. Petronas had suspended Vastalux licence but it was appealing for a reinstatement;
23. Tamadam is said to be contemplating spinning off loss making warehousing business and privatizing its profitable food business, although management declined to comment;
24. Sources say Inch Kenneth mainstay is in plantations and tourism, has attracted some serious suitors for its 350 acre estate in Kajang, possibly including a government linked property developers;
25. Tunku Ya’acob, chairman of Mycron Steel Bhd, refuted the market rumour on the privatisation of Mycron. MIGB owns a 54.8% equity stake in Mycron;
26. Rumours that Stone Master would be involved in a merger and acquisition exercise with a foreign company. Stone Master produces marble and granite products;
27. CMSB’s cash pile grow to as much as RM881 million against RM485 million in total borrowings after disposing UBG, translating into net cash of RM395 million or RM1.20 per share. Speculation is rife that CMS may pay a generous special dividend to shareholders;
28. Jotech acquired a 40% stake in Rockhill Resources Ltd which owns a coal mine in Indonesia for US$2 million. Jotech is still awaiting the extraction permit from the local authorities due to delays. It expects to announce an update on the mine some time in 1Q2011;
29. SP Setia//E&O/YNHP/Glomac/BRDB: M&As candidates;
30. The decision rests in QSR’s board as to whether to accept Carlyle’s or Idaman Saga’s offer and no indicative time frame has been given by the latter as to when a decision will be known. Speculation is rife that some local parties are trying to match the PEF with either KUB Bhd or Ekuiti Nasional Bhd;
31. Ho Hup was awaiting Bursa Malaysia ’s response for a time extension to submit its regularisation plan. Ho Hup is a PN17 company;
32. SILK Holdings Bhd is awaiting government approval to raise by 30 sen the toll rate at the Kajang Traffic Dispersal Ring Road. The present rate is RM1. Earlier speculation that SILK may want to spin of fits highway division to get better valuations for its oil and gas business;
33. Rumours that Stone would be involved in a merger and acquisition exercise with a foreign company. Stone Master produces marble and granite products;
34. The ceasing of Tengku Ibrahim is perceived to be an indicator that selling pressure of Petra Perdana may ease soon. Should it win fresh contracts for its idle vessels, it will augur well for its earnings going forward. Its earnings visibility will only be certain when contracts, either from Petronas or other oil producers, are officially awarded;
35. Harrisons’ second and third largest shareholder has been gradually reducing his interest since May 2010 to 7.1%. The question now is who will emerge as a new shareholder. Will the existing major shareholder Bumi Raya further consolidate its holdings in the group?
36. Speculation that Eukinas was considering acquiring a stake in CyPark. However the company says it has not received any indication of interest from the fund, although it is open to opportunities with suitable strategic partners;
37. Emas Kiara Industries Bhd has proposed to sell its core business, technical textiles manufacturing, for RM100 million cash to US-listed Royal Ten Cate N V. By doing that, the company will have no core activities going forward but sitting on a net cash pile of RM36.2 million or 42.7 sen per share;
38. While Afzal is receiving some cash from the sale of his assets into TdC, he is likely to be using a big portion of that money to pay for exercising his options to raise his stake in PKV, the special purpose vehicle owning 30% of TdC. Sources say Afzal is exercising options to increase his stake in PKV to 51%;
39. TA’s lack of expansion in the stockbroking business - and the shift in focus towards property - may possibly be a prelude to the divestment of the former;
40. Satang new and exiting shareholder and AirAsia substantial shareholder Datuk Kamarudin Meranun and present a fresh regularisation plan to the authorities to uplift the PN17 status of Satang;
41. With the UEM Land, Sunrise deal rocking the local property scene, speculation has again surfaced that a SP Setia may be a target of some of sort of partnership;
42. Apart from a special payout or capital distribution, there has been speculation that LFIB will be privatized. Such an exercise would further consolidate the Lion group’s structure;
43. Daya Materials supplies to various companies within the Petronas Chemical group. It will benefit from the potential of more Petronas contract awards;
44. With its cash reserves amounting to about RM10.8bil, YTL Corp could easily acquire assets up to US$25bil-US$30bil without the need to raise more money;
45. Sources say Dayang is believed to be in the forefront to clinch an estimated RM2 billion worth of topside maintenance service contracts from Petronas and is expected to dish out in the next three to six months from Nov 2010;
46. Bursa Malaysia Bhd’s CEO said it is always open to exploring “collaborative initiatives” to help grow its business;
47. Goldman Sachs holds 135.17 million shares or 5.74% in Mulpha Intl. Mulpha International Bhd’s associate company FKP Property Group is touted as a possible takeover target by Stockland, a substantial shareholder of FKP … But Mulpha Denied;
48. DRB-HICOM had talked to six parties to sell a 30% stake in Bank Muamalat and efforts to find a strategic partner for the bank were still ongoing;
49. Sources say Ezra Holdings Ltd is looking to increase its stake in Perisai via the injection of assets … But the board Denied;
50. L&G flagship Bandar Seri Damansara development will be crucial growth driver in the coming years (2010 & Beyond);
51. FajaBaru is bidding for RM2 billion worth of building construction and Light Rail Transit-related infrastructure projects;
52. Three consortium are understood to be vying for a US$250 million turnkey project from Petronas for the development of the Sepat marginal oil field located 130km of Terengganu. The three consortium are MMHE and its partner, France based Technip SA; Kencana and London based Petrofac Ltd and Australia based Roc Oil Company Ltd and Griffin Energy Ltd. Sources say Kencana consortium have emerged as front runners;
53. Sources say Tasek (part of Singapore listed HL Asia Ltd), which is re aligning its business portfolio to further diversify its downstream activities, is among several parties eyeing MTD ACPI Bhd’s precast business;
54. Two shareholders of Seloga Holdings Bhd, owning a combined 21% stake, have called for a general meeting to remove Datuk Samsudin Abu Hassan as a director with immediate effect;
55. Dialog was highlighted as one of the companies that would spearhead the government’s aim of turning Malaysia into a regional oil storage and trading hub by 2017;
56. Specualtion that E&O is bidding for the the Wesley Methodist Church, which owns the 4-acre site where the Pykett Methodist Boys’ School sits along Burma Road … but It denied;
57. Sources say a corporate exercise could be imminent. There is speculation that a possible general offer, sale of assets or a hefty dividend could be in the offing. Kluang Rubber Co ( Malaya ) Bhd is Kuchai major shareholder. Kluang holds about 42 per cent of Kuchai. Kuchai holds 26 per cent of Sungei Bagan Rubber Co ( Malaya ) Bhd;
58. Sources said that a casino is being propose for the Karambunai IR … But KBunai Denied. Up to Oct 2010, KBunai has no shareholding in the SPV, nor has it received any official notification from the government or signed any MoU or agreement with SPV to develop Karambunai yet. However, both management of KBunai and SPV have concrete, specific, clear time-line plans and commitments to the Malaysian government to attain the desired results under ETP as envisaged by the Government;
59. Genting Malaysia Bhd has formed a partnership to bid for the “large casino” licence in Newham , UK , shortly after it bought over 46 casinos there. The outcome of Apollo’s Stage 2 application is expected to be known in February 2011;
60. A realignment of shareholders is brewing in Leong Hup Holdings Bhd. Going forward, markets are waiting to see if any new direction is taken after this;
61. Sources say Litrak & Grand Saga (Taliworks) is the next target for restructuring;
62. With Ekuinas behind current management and having board representation in Konsortium, this is set to change and could it also be part of a much bigger plan;
63. The Gan family of SKP said they bought more shares because its shares are “undervalued” and do not reflect the company’s strong fundamentals and production capabilities dispelling privatization exercise;
64. Sources say BKawan, biggest shareholder in KL Kepong, is a “compelling privatization target” and its shares could be worth RM18.02 each;
65. Sources say at least one foreign party is keen on EON Capital and is exploring the possibility of acquiring a stake in the bank which includes Primus’s 20.2% stake;
66. eNCoral Digital Solutions Sdn Bhd have acquired shares in Inix and emerged as a substantial shareholder in Inix with 22.83 million shares or 19.86%;
67. Glomac was keen to participate in the development of the over-3,000-acre plot in Sungai Buloh currently owned by RRIM;
68. Speculation IJM Corp Bhd and UEM Group Bhd may jointly submit to the Government a proposal for the MRT system;
69. Sources say IJM Corp is looking at listing its infra assets – in India as well as those in Malaysia – in India . The group is also exploring the possibility of a dual listing on Bursa Malaysia ;
70. IJM Land Bhd is looking ripe for possible privatisation.… But It Denied;
71. Public Bank is due for a re rating and dividend surprises as there is dividend certainty now and concerned over a capital raising exercise have abated;
72. The board and management of Jerneh would be evaluating very carefully the next course of action for the company after selling Jerneh Insurance for rm532 mil. It would not be in the insurance business due to the tight regulations;
73. Talk is that major developers like E&O, SP Setia, IJM Land and Mah Sing would have put in their bids to buy and develop the Penang Turf Club’s land;
74. Sources say Rank Group plc will have corporate activity in the company, “which may not be long in coming”. Quek’s Hong Kong-listed flagship Guoco Group Ltd owned a 29.25% stake in Rank (as at June 30, 2010) while Lim’s Genting Bhd held an 11.59% stake;
75. Who acquired Loke’s equity interest in Bertam Alliance could be indicative of future corporate developments in company;
76. Sources say Syed Mokhtar Al-Bukhary (MMC) has written to the country’s government offering to buy 1,200 hectares of RRI land outside of KL;
77. Will Datuk Ooi Kee Liang make a difference and turn around Equator’s fortunes after he has emerged as the single largest shareholder in Equator Life Science Bhd”;
78. Will a portion of Gopeng’ money (rm200 million) be returned to shareholders as dividends after capex?’
79. Sources said AZRB has emerged as frontrunner to win a RM300 million job to build a 300-bed hospital in Kuantan, Pahang for UIA;
80. Speculation is that Landmarks’ flagship asset on Bintan island in Indonesia may be revived soon. The company officials confirms that the company is indeed resuming the project, but adds that it is too early to share details;
81. Genting Bhd is one of the candidate looking into Tanjong’s gaming business;
82. HELP is planning a secondary listing of its shares in Singapore over the next 18 months to fund its expansion plans;
83. Several shareholding changes are happening at Infortech Alliance Bhd, but observers say they have no inkling of what may transpire in the company;
84. Sources say members of the consortium (Redevelopment Of RMAF base) are 1MDB, LTAT and Datuk Desmond Lim of Malton Bhd. It cannot be ascertained if Malton or Lim, through his private company, has a stake in the consortium;
85. Rumoured that a M&A candidate is ECM Libra;
86. Market talk has it that cash-rich SKP may be taken private.
87. Sources say Sarawak Energy has submitted its proposal to the Bakun project’s owner Sarawak Hidro Sdn Bhd. Other bidders are 1MDB, Malton/QIA;
88. TTAGB chairman Datuk Tony Tiah Tee Kian has been buying TAGB’s ICPS since Sept 2010;
89. TNB is interested in bidding for the second block of the 1,000-MW coal-fired power plant in Manjung if it is given the opportunity to participate;
90. Sources say YTL Corp may gain from proposals to build a high-speed rail network linking Kuala Lumpur and Singapore ;
91. Speculation that Quek has a plan for SSteel in terms of operations;
92. The Terengganu government, via its investment arm and other units, has been increasing its stake in Golden Pharos;
93. Elliott Capital Advisors LP bought a 5.1 per cent of KNM’s stake;
94. Goodyear may be in talks with an Indian company for a potential merger with Bombay Stock Exchange-listed Indag Rubber Ltd … But It Denied;
95. Sources say Datuk Abdul Hamad Sepawi s believed to be closed to selling his entire stake in Sarawak Plantation via subsidiary Cermat Ceria which held 30.35% stake;
96. DRB-Hicom is looking at possibility of listing some of its subsidiaries … the services sector, but did not set a timeline for this to happen;
97. Kimlun Corp Bhd, a one-stop engineering and construction services provider, is expected to benefit from the soon-to-be-announced LRT extension project;
98. EIG remains to be seen whether EIG’s new shareholder will find new ways of adding value to the group;
99. Rerating catalyst for Muhibbah if it can collect its receivables from Asian Petroleum Hub otherwise provisions would have to be made for doubtful debts;
100.Telekom Malaysia has the capacity to return cash above its minimum dividend policy of RM700 million per annum. TM may consider raising its dividend payout after the current financial year ending Dec 31, 2010 (FY10) as its capex for the high-speed broadband (HSBB) project will peak in 2010;
101.Market talk that RGB International Bhd’s (formerly known as Dreamgate Corp Bhd) disposal of a 40% stake in Chateau de Bavet Club Co Ltd is imminent with the issue of a note to bondholders seeking approval for the sale. Discussion (for the sale) is still in progress and subject to finalisation. No timeline has been set;
102.MMC Corp Bhd has entered into a JV agreement with Zelan Bhd to bid for infrastructure projects under the 10MP. The JC company is named MMC Zelan Sdn Bhd (MMC holds 60% and 40 % held by Zelan;
103.Silver Bird’s rating outlook may be revised to stable if it is able to sustain improvement in its financial performance and also halt decline in its market share. Conversely, its ratings may be downgraded if its performance comes in below rating’s revised expectations, or if GMN contract exposes the group to additional risks that are not adequately addressed;
104.Market talk that BRDB may be taken private. The plan may still be in its early stages but it is said to be under serious consideration;
105.Tenaga’s stock may be re-rated on the back of robust free cash flow, positive company’s active capital management in terms of reducing debts, stepping up dividend payouts, impact of a fuel pass-through mechanism on the company in the longer term and is well poised to benefit from stronger economic growth and potential tariff hike;
106.Sime Darby is under-owned by institutional funds due to the losses across the group’s energy and utilities operations. It is in an inflection point for an upward re-rating. The potential restructuring of Sime Darby’s key businesses might include a separate listing for its plantation and property units;
107.QL Resources may raise money via a private placement of new shares, or bond issues for capex;
108.IJM Corp has a minority stake (39%) in the Kemaman port speculation that EPIC is looking at “kicking” IJM out of the port;
109.The Selangor state government is still studying the proposals submitted by the companies and are evaluating and figuring out the best business model for this project. It confirmed that I-Bhd would lead the Wessex Water I-Bhd group portion for the project;
110.Khazanah Nasional Bhd has set in motion its plan to divest its 32.21% stake in POS. The leading candidate is a JV by Ekuiti Nasional Bhd and CVC Capital Partners. The other notable names that have cropped up are Sapura Group and Scomi Marine Bhd, Knosortium Logistic Bhd have also put in a bid;
111.Speculation that the re-listing of Malakoff could take place sooner that expected? Sources say Malakoff has already started to lay the preliminary groundwork for a re-listing, but details remain sketchy at this stage as at Aug 2010;
112.BCorp holds an interest of 31.66% in TMC Life Sciences. It is uncertain if TMC Life Sciences still fits into this picture, especially with the emergence of the new shareholder. Should BCorp choose to divest its stake in TMC Life Sciences, would Lim then increase his stake in the company?;
113.The change in TMC Life controlling shareholder may lead to some spillover interest in StemLife Bhd. BCorp has a 31.66% stake in TMC Life Sciences and a 12.17% stake in StemLife;
114.The acquisition of YNHP shares by its major shareholders and directors could be a preclude to bigger corporate moves;
115.PJI has put a bid to the UEM Land-Bina Puri Holdings Bhd JV for a mechanical and electrical engineering services contract at LCCT;
116.Delloyd is currently in discussions with SPNB on the possibility of manufacturing a lower decked long bus;
117.Syed Zainal reaffirmed about a possible foreign partner for Proton, stating that the group was in discussions with various global OEMs;
118.There has been talk that TimeDotCom could be a beneficiary of its linkage Global Transit Intl Sdn Bhd, which is involved in the development of the Trans-Pacific Unity submarine cable system;
119.Mieco major shareholder BRDB was still in preliminary and exploratory discussions with a Chinese party on selling its stake in Mieco to the latter. BRDB would make the appropriate announcement;
120.Sources say state controlled Terengganu Inc Sdn Bhd is planning to privatize its 40.13% unit EPIC. AZRB which has a 21% stake in EPIC … But Denied;
121.Xingquan has been actively seeking new partners for some time, is finalizing talks with at least one local party to take up a substantial stake in the company but no deal is impending at the moment;
122.Speculating Privatization Zelan But Deny in May 2008;
123.A white knight may emerge for KKB. Sources say the company is planning to diversify into the property and construction sector with the appointment of chin;
124.Sources say E&O’s major shareholders are believed to be considering a privatization of the property develop. They are talking to banks to finance the exercise;
125.Speculation is rife that Ekuinas, with JV partners could be eyeing a stake in POS. Ekuinas will announce its next investment project by the end of 2010;
126.CIMB is in the process of negotiation with the relevant authorities on how to get listed in Jakarta ;
127.UEM Group Bhd is keen to bid for the RM43 billion KL MRT project;
128.LSE-listed Aseana Properties Ltd, a unit of Ireka Corporation Bhd, may consider returning excess cash to shareholders following the proposed disposal of properties in 1 Mont’ Kiara for RM333 million. Aseana expects to complete the proposed transaction by year-end (2010);
129.UEM Group were no plans yet to re-list the company or raise capital but did not rule out the possibility in future;
130.Fitters’ MD Datuk Richard Wong’s had significantly increased his equity interest to over 30% of the company’s paid up capital. It plans to attract institutional investors in the near term;
131.The deadlock in the proposed consolidation of water assets in Selangor may have been broken with all the parties close to agreeing on pricing, and ironing out the issues of operations and maintenance (O&M) … KPS/JAKS/Puncak Niaga/KHSB;
132.Speculation is rife that KEuro is close to finalizing its bid for the rm3 billion Westcoast Expressway (WCE), and in driver’s seat is KEURO’s largest shareholder Tan Sri Chan Ah Chye;
133.Tradewinds (M) Bhd will trim its stake in Bernas to shed some debts;
134.Scomi Engineering Bhd is planning to propose a monorail system in Greater KL to support the proposed MRT project under the 10MP. Scomi International is also eyeing a major monorail construction project in Chennai;
135.Gamuda-MMC JV has been bandied about for the MRT project — Gamuda Bhd and MMC Corporation Bhd. UEM Group Bhd is also keen to bid for the RM43 billion KL MRT project;
136.MBSB plans to become a full-fledged bank. Currently (April 2010), they are just at the discussion stage and have not submitted anything official as it will require shareholders' approval first;
137.QL Resources Bhd acquired 11 million shares or 23.29% of Lay Hong Bhd. Will QL Resources would increase its stake in Lay Hong or seek board representation;
138.Scomi Engineering consortium was the second lowest bidder RM3 billion Tiradentes monorail project in Sao Paulo , Brazil , in the first round, but with their specifications complying with the requirements of the Brazilian authorities. The lowest bidder, it seems, had fallen short on certain counts;
139.MRCB is front runner in acquiring several parcels of land in KL and Selangor, including 60.7ha in Jalan Cochrane, an 8 ½ ha tract in Jalan Ampang Hilir and another 400ha in Sungai Buloh under the purview of the Rubber Research Institute of Malaysia. It will also likely receive a sizable portion of MRT Construction works for the portion leading to the RRIM land. Another wildcard could be MRCB’s involvement in the redevelopment of Pudu Jail given its prior work for Gaya Bangsar condominium;
140.IOI Corporation Bhd may write back the impairment loss made in the financial year ended June 30, 2009 (FY09) on a joint-venture property project in Singapore towards the end of the current financial year (2010) since the value of property has risen in the island state;
141.Ingress’s power engineering and projects division is expecting significant progress on the Ipoh-Padang Besar double-tracking project for System Works. New awards are expected to materialize;
142.Faber declined to confirm nor deny speculation that it may be buying Pantai Holdings Bhd’s Malaysian government concession business. Pantai Holdings Bhd does not rule out selling its concession business "if the price is right"
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