Friday, October 31, 2008






IJM ... Oct 2008

IJM Corp Bhd’s cancellation of a proposed capital repayment of 50 sen cash per share might be a disappointment to shareholders but it could help the company face the current economic slowdown. IJM Corp is now able to conserve more cash.

The event seems to indicate that lenders are getting jittery and would probably prefer to see capital remain within the company as the global economy and capital markets go on a downward spiral.

Thursday, October 30, 2008

Cepat ... Oct 2008

Cepatwawasan Group Bhd, an oil palm company, expects its two bio-energy projects in Sabah to contribute RM20mil annually to group revenue by 2011.

Total contribution from the sale of electricity and carbon credits is estimated to be RM20mil per annum to group revenue.

The projects, a 3-megawatt (MW) biogas plant and 10 MW biomass-fired plant, would be able to sell power to Sabah Electricity Sdn Bhd (SESB) and generate carbon credits for sale. The projects were expected to be registered for the clean development mechanism (CDM) scheme. The CDM is a scheme under the Kyoto Protocol which helps developing countries achieve sustainable development through the sale of certified emission reduction, or carbon credits, to developed and industrialised countries.

The two projects would cost RM80mil, RM60mil for the biomass plant and RM20mil for the biogass plant. Construction of the plants is expected to commence by the middle of next year (2009) and will be completed and fully commisioned by 2010.

Cepat Wawasan is expected to sign a renewable energy power purchase agreement with SESB early next year (2009). SESB is a subsidiary of Tenaga Nasional Bhd.

Wednesday, October 29, 2008

Blue chips price at year 1998 crisis

1998 crisis (Sept)
Maybank 1.50
PBBank 0.82
YTL 1.70
Genting 1.20
TNB 1.60
TM 1.40
IJM 0.56
DIGI 1.00
BAT 13.20
SIME 1.45
MISC 1.75

YNHP Property ... Oct 2008

YNH Property Bhd is delaying the sale of part of a RM2.1 billion tower being designed by Norman Foster as the global credit crisis threatens the Malaysian capital's biggest commercial property transaction.

The company may scrap plans to raise as much as RM1.2 billion by selling the second half of the project and is in talks with funds from Singapore, Hong Kong and Japan on a venture to help complete development of the tower.

The company is delaying completion of the RM920 million sale of the first half of the 45-storey office development to Kuwait Finance House (Malaysia) Bhd, agreed to in January 2008, because of design changes.

Malaysian real estate prices may stall as the supply of office space will increase from 2010. A lot of supply will hit the market in Kuala Lumpur, so not sure whether they can demand a good price by that time. Supply is going to come in by the end of 2008 and the momentum is going to peak by 2011. The dynamics of supply and demand by that time is not going to be favourable for developers."

There will be an additional 24.8 million square feet of office space after 2010, compared with existing capacity of 56.8 million square feet.

The developer is negotiating with funds that may take a 20 per cent stake in a venture to develop the tower. Investing in the venture will allow the funds to receive earnings from rental while they wait for property markets to recover. They may then sell the building to a real estate investment trust.

YNH in January 2008 agreed to sell the first half of the development to Kuwait Finance. The sale will be completed by year's end (2008), later than planned, so the buyers can "make sure everything is right". The Grade A tower in Malaysia will have a retail podium and two office wings with total lettable space of 1.2 million square feet.

YNH plans to increase 2009 profit by 20 per cent to as much as RM120 million next year, based on RM300 million of sales.

Tuesday, October 28, 2008

The Weak Ringgit Strong Dollar … Winners & Losers…

The Winners …

Top Glove: Almost all of its revenue is in US$ and 70% of its total costs are in US$. Strengthening US$ is positive for it.

MISC: Almost all of its revenue is in US$, but so is operating costs, kike bunker, crewing , docking etc …

Tanjong: Egyptian power plant earnings in US$.

Asiatic: Prices mainly in US$, no borrowings but fertilizer costs in US$.

KLK: Sell 15-20% of CPO in US$, rest in RM and Rip. Refined product mostly sold in US$. Borrow primarily in US$ but fertilizer costs in US$.

IOI: Fairly neutral impact. Sell 15 – 20% of CPO in US$, rest in RM. Refined product mostly sold in US$. Borrow primarily in US$ but fertilizer cost in US$.

Sime Darby: Price mainly in US$, few borrowings but fertilizer cost in US$.

The Losers …

MAS: Given MAS’s high operating leverage, earnings are highly sensitive to jet fuel cost which is denominated in US$.

Ann Joo: 70-80% of revenue are from domestic market but input costs are mainly quoted in US$.

Kinsteel: 70-80% of revenue are from domestic market but input costs are mainly quoted in US$.

Astro: Programming cost (50-60% in US$), accounts for 45% of operating cost.

Tenaga: Interest expense on US$ loans (26% of total loans) coal and oil costs in US$.

UMS: Toyota CKD is purchased in US$.

Media Prima: Programming cost (40-50% in US$), accounts for 45-50% of operating cost.

TM: Interest expense on US$1.1 billion bonds.

TMI: Interest expense on US$480 million debts.

Monday, October 27, 2008

Sunday, October 26, 2008


BOY : May I hold your hand?
GIRL : No thanks, it isn't heavy.

GIRL : Say you love me! Say you love me!
BOY : You love me...

GIRL : If we become engaged will you give me a ring??
BOY : Sure, what's your phone number??

GIRL : I think the poorest people are the happiest.
BOY : Then marry me and we'll be the happiest couple

GIRL : Darling, I want to dance like this forever.
BOY : Don't you ever want to improve??

BOY : I love you and I could die for you!
GIRL : How soon??

BOY : I would go to the end of the world for you!
GIRL : Yes, but would you stay there??

SHARON : Have you ever had a hot passionate, burning kiss??
TRACY : I did once. He'd forgotten to take the cigarette out of his mouth.

MAN : You remind me of the sea.
WOMAN : Because I'm wild, romantic and exciting?
MAN : NO, because you make me sick.

WIFE : You tell a man something, it goes in one ear and comes out of the
HUSBAND : You tell a woman something: It goes in both ears and comes
out of the mouth.

MARY : John says I'm pret ty. Andy says I'm ugly.What do u think,
PETER : A bit of both. I think you're pretty ugly.

1) Girlfriend : "...And are you sure you love me and no one else ?"
Boyfriend : "Dead Sure! I checked the whole list again yesterday".

2) Teacher : "Which is more important to us, the sun or the moon?"
Pupil : "The moon".
Teacher : "Why?"
Pupil : "The moon gives us light at night when we need it but the sun
gives us light only in the day time when we don't need it".

3) Teacher : "What do you call a person who keeps on talking when
people are no longer interested?"
Pupil : "A teacher".

4) Waiter : "Would you like your coffee black?"
Customer : "What other colors do you have?"

5) My father is so old that when he was in school, history was called
current affairs.

6) Teacher : "Sam, you talk a lot !"
Sam : "It's a family tradition".
Teacher : "What do you mean?"
Sam : "Sir, my grandpa was a street hawker, my father is a teacher".
Teacher : "What about your mother?" Sam : "She's a woman".

7) Tom : "How should I convey the news to my father that I've failed?"
David: "You just send a telegram: Result declared, past year's
performance repeated".

8) Teacher : "Now, children, if I saw a man beating a donkey and
stopped him, what virtue would I be showing?"
Student : "Brotherly love".

9) Teacher : "Now, Sam, tell me frankly do you say prayers before eating?"
Sam : "No sir, I don't have to, my mom is a good cook".

10) Patient : "What are the chances of my recovering doctor?"
Doctor : "One hundred percent. Medical reco rds show that nine out of
ten people die of the disease you have. Yours is the tenth case I've
treated. The others all died".

11) Teacher : " Can anybody give an example of COINCIDENCE?"
One Student : "Sir, my Mother and Father got married on the same day
and at the same time."

12) Teacher : " George Washington not only chopped down his father's
Cherry tree, but also admitted doing it.
Now do you know why his father didn't punish him ?"
One Student: " Because George still had the axe in is hand."

Saturday, October 25, 2008

吃到飽 哈~~~哈~~~






Friday, October 24, 2008

Tenaga (2) ... Oct 2008

National power company Tenaga Nasional Bhd (TNB) does not want the Government to make the same mistake twice by extending the concession period for power plants operated by independent power producers (IPPs).

The Government should look carefully at the repercussions of extending the concession periods of IPPs as the earlier agreements had burdened TNB for a long time due to the high rates it was charged with. TNB is still making huge payouts to the IPPs with renegotiations of the power purchase agreements (PPAs) nowhere in sight.

The first IPP concession agreements will end in seven years.

Going Forward …

It is expected to turn in even weaker performance in 2009 following its below-expectation financial year 2008 results. This is due to lower demand growth, advancing fuel costs and higher capacity payments to independent power producers (IPPs).

TNB registered a lower net profit of RM2.59bil for its financial year ended Aug 31, 2008 (FY08) versus consensus estimates of RM3.14bil. For the fourth quarter 2008, TNB incurred a net loss of RM282.9mil against a net profit of RM168.4mil a year ago due to forex losses, higher fuel costs and slowing demand.

For financial year 2009, estimate TNB’s core net profit (excluding adjustment items) will further decline to RM1.6bil due to continued concerns on higher coal and gas prices, rising fuel costs and energy charges by independent power producers (IPPs) and lower demand growth.

TNB itself has projected its performance in 2009 would further decline “given the scenario of lower electricity demand and higher operating costs.

And with the commissioning of the 1,400 MW Jimah Power Plant, its capacity payments and reserve margins would increase to 47% from 40.8%.

As at Aug 31 2008, TNB had RM21.7bil of debt, of which about RM1bil would be repaid in 2009 and another RM1bil in 2010. About half of its borrowings were denominated in ringgit and the remaining in US dollars and yen. The ringgit has been depreciating in value against the US dollar and yen in the past six month (March – Oct 2008).

Thursday, October 23, 2008

Tenaga (1)... Oct 2008

TNB wants independent power producers (IPPs) to renegotiate and revise downwards their power pacts with the utility company, stressing that they will be dragged down too if its finances collapse.

RM22 billion of loans versus less than RM10 billion debts owed by the IPPs in the country. If TNB collapses, the IPPs will also collapse and bring with them another RM22 billion of (TNB) debts.
TNB has long complained that the power purchase agreements (PPAs) it has with the IPPs were lopsided and a financial burden. That burden is being passed on to consumers in quantum never seen before. Rather, the latter - some of which had proclaimed that they were efficient - should pass on some of the efficiency gains to consumers to ensure equality or level-playing field.

Industry observers said TNB's financial viability depends on its ability to pass on the PPA burden, but there will be a limit to how much can be passed on to the consumers. Eventually, TNB's financial viability will be adversely affected to a greater degree than it is now (2008).

Meanwhile, industry estimates putting TNB's planned two hydro-electric plants at a combined cost of RM4 billion. TNB has enough money for now (2008) to fund the projects and that they were on track to be completed in 2012. TNB is to build a 212-megawatt (MW) plant in Hulu Terengganu and a 372MW Ulu Jelai hydro-electric plant in Pahang.

TNB will discuss more with the government on the Bakun project in Sarawak, although it had already started preliminary works on the dam.

Financial Results …

Tenaga Nasional Bhd posted net loss of RM282.9mil for the fourth quarter ended Aug 31 2008 compared with net profit of RM168.4mil a year ago following higher coal prices and weaker ringgit compared with the US dollar and yen.

Revenue rose to RM7.09bil compared with RM6.12bil. Loss per share was 6.53 sen compared with earnings per share of 3.89. It proposed dividend of 10 sen per share compared with 16.3 sen a year ago.

Operating profit shrank to only RM259.4mil, sharply lower than RM1.2bil a year ago, weighed down by sharply higher operating expenses of RM6.98bil (from RM5.11bil a year ago). It recorded foreign exchange translation loss of RM288.8mil compared with the higher RM549mil a year ago.

For the financial year ended Aug 31 2008, net profit fell to RM2.59bil from RM4.06bil a year ago, despite that FY08 revenue rose to RM25.75bil from RM23.32bil. Its operating profit for FY08 declined to RM4.04bil compared with RM5.54bil in FY07.

Operating expenses in FY08 rose by 22.5% (RM4.13bil), mainly due to higher capacity payments to independent power producers and higher energy costs including coal.

Going Forward …

The Ministry of Energy, Water and Communications (MEWC) is calling for an external audit of Tenaga Nasional Bhd’s (TNB) three core businesses - generation, transmission and distribution, say sources. Towards that end, it is learnt that the Energy Commission, will very soon, by end of this month or early next (Oct – Nov2008), call for tender among local and international consultants on the job.

At the moment, all three businesses are lumped together ... but the ministry wants to be able to look at and assess the individual sectors, how they are faring and their efficiency levels. The ministry wants to be transparent to consumers.

According to sources, the tender document is currently (Oct 2008) being fine-tuned. The aim is to appoint a joint-venture consortium which comprises local and international consultants for the job.

Sources say that once the study is done, it may be easier to defend (or otherwise) the need to raise electricity tariffs for TNB. The process needs to be more transparent. If the Government is going to ask consumers to pay more for electricity, then everyone needs to know whether or not TNB and its core businesses are performing efficiently. The people deserve transparency.

The move is likely to ruffle the feathers of the national utility, already faced with its own set of woes of waning electricity demand, frustratingly high payouts to independent power producers and soaring fuel prices. Already, this potent combination has left its prints on TNB’s fourth quarter FY08 scorecard which saw it slip into the red.

Industry observers said it is rather unusual move and seems rather ad hoc. The industry is facing a whole lot of challenges across the board. It would be better to work on broader strokes first and then tackle them one by one, rather than initiate stand alone, piece-meal initiatives.

Yet, the idea resonates with some others … it is a valid point that the cost structures and so forth of TNB’s individual core businesses are examined and where there is room for improvements, necessary measures are taken, particularly if there is going to be tariff adjustments on a regular basis. If consumers have to fork out more from their pockets, then maybe there ought to be more transparency in what goes into or out of TNB’s pockets.

According to TNB’s latest annual report (2007), the three subsidiaries - TNB Generation Sdn Bhd, TNB Transmission Network Sdn Bhd and TNB Distribution Sdn Bhd are referred to as wholly owned dormant subsidiaries. In TNB’s notes which accompanied its recently revealed FY08 results, the company stated: “As the principal activities of the group are the generation, transmission, distribution and sale of electricity in Malaysia, segmental reporting is deemed not necessary.”

Is the EC acting within its jurisdiction to call for a tender among consultants for an audit on TNB’s three core businesses? Does it really have such powers? Can TNB resist the move?

Therein lies another problem with the already challenge-ridden power sector in the country. The regulatory framework in the country’s power sector is screaming to be re-examined as there appears to be overlapping jurisdictions among the Economic Planning Unit, the MEWC and the EC.
The EC describes itself as the regulator for the electricity and gas supply industry with powers provided for in the Energy Commission Act (2001) and other related acts. So far, since its inception in 2001, the EC does not appear to have made any visibly significant strides in ironing out the creases in the industry, nor has it appeared to have played a crucial role in key decisions affecting the industry.

The EC is supposed to be an industry regulator. However it appears to have no teeth at the moment. A lot of the job is actually being done by the EPU which oversees the power purchase agreements, plants up and so forth. It’s a messy structure and one that is convoluted.

Then, there is Khazanah Nasional Bhd owned by Ministry of Finance which is TNB’s major shareholder. It wouldn’t be a surprise if Khazanah, led by Tan Sri Azman Mokhtar has his own set of ideas on how the power industry ought to be restructured. In fact he told reporters that Khazanah will submit a detailed study to address the structural problems of the country’s electricity industry to the Government: There are structural issues at TNB and indeed structural issues in the electricity sector ... it is not an exaggeration to say, it is a ’time bomb’ for the country.”

For the fourth quarter ended August 2008, it slipped into a net loss position of RM282.9mil on the back of a 16% rise in revenue. The culprits were not surprising higher payouts to independent power producers and soaring fuel prices. TNB’s payouts to IPP rose 22.4% in 2008 largely as a result of higher capacity and energy payments to Tanjung Bin and other fuel-related costs. Coal prices have shot through the roof this year (2008), in tandem with the exuberance in most other commodities. Coal prices for the financial year (averaged out) was almost double that of the previous year at US$76.40/tonne in 2008 versus US$45.30/tonne in 2007.

The future appears no less dim and even as the coal cost pressure appears to be easing (but still high), there are other behemoth challenges for the utility. The utility’s payouts to IPPs is set to get higher in FY09. The first 700MW unit of Jimah is scheduled to be commissioned in January 2009 and the second unit in July. That is likely to bump up capacity payments by RM200mil in FY09 and RM1bil in FY10.
Against a backdrop of a cooling economy, electricity demand is also likely to slide or remain muted amidst weak exports and slowing construction activities.

TNB’s foreign shareholding, which probably echoes that of many companies on Bursa Malaysia, has also slipped dramatically from a peak of 28% in May 2007, it has fallen to 16% as at September this year (2008).

Wednesday, October 22, 2008

IOI Corp Bhd ... Oct 2008

IOI Corporation Bhd is postponing the launch of its Sentosa Cove projects due to the fragile residential property market in Singapore and The Pinnacle Collection.

The land cost was S$1,364 per sq ft per plot ratio for the Sentosa Cove project while the land cost was S$1,822 psf per plot ratio for The Pinnacle Collection.

Tuesday, October 21, 2008

GPacket ... Oct 2008

Green Packet Bhd plans to raise as much as RM58.46mil from the proposed placement of 70.43 million new shares at 83 sen each.

It would propose to place out the new shares, or 20% of its share capital, to Green Packet Holdings Ltd, OSK Technology Ventures Sdn Bhd and independent third party investors. The indicative allocations of the placement shares, based on the maximum scenario, was 30.61 million new shares to Green Packet Holdings, 14.49 million shares to OSK Technology ventures and 25.32 million to independent investors.

It proposed to implement the placement exercise within six months from the Securities Commission’s approval.

The corporate exercise would enable it to raise funds quickly for its working capital and strengthen its balance sheet without incurring interest costs, as compared with bank borrowings.

The funds to be raised would be used as additional working capital for its capital expenditure and operating expenses including the deployment of the wireless Internet broadband infrastructure in Malaysia and overseas markets.

Monday, October 20, 2008







Fitters Diversified Bhd ... Oct 2008

Transport Minister Datuk Ong Tee Keat and a select team are understood to be scrutinizing several railway contracts awarded by the government and KTM. Among the contracts being examined are the northern portion of the double tracking railway project – from Ipoh in Perak to Padang Besar in Perlis – and at least once contract recently awarded by KTM’s board to a subsidiary of Fitters Diversified Bhd.

Fitters made an announcement to Bursa stating that it had been awarded two contracts, valued at RM64.8 million, to convert the brake systems on KTM’s wagons from vacuum and dual brake to air brake for Rm54.2 million, was well as a RM10.6 million contract for setting up a maintenance and service centre for KTM.

Fitters is understood to have received the green light for two said jobs in April 2007, but was only given the letter of award on Sept 2008. It is learnt that two weeks before that, senior officials at KTM and the Ministry of Transport were instructed to review the award. This, however, went unheeded.

It is understood that other companies have offered to do the same jobs at a much reduced rate. Fitters’ mainstay is fire fighting and fire equipment. However, the company also has ane engineering arm, which conducts such jobs as the one recently awarded. The bulk of Fitters’ revenue in 2007 came from its fire protection arm.

Financial Results …

For the six months ended June 2008, Fitters posted a meager net profit of RM194000 on the back of Rm74.4 million in revenue. For the corresponding period a year earlier, Fitters raked in a net profit of RM2.9 million from RM62.2 million in sales.

Sunday, October 19, 2008








結果,此妹妹被錄取 。。。。。。

Saturday, October 18, 2008










Friday, October 17, 2008



Merujuk kepada laporan beberapa akhbar tempatan dan antarabangsa pada 4 Oktober 2008 di mana Negara Vietnam telah melaporkan pencemaran melamine pada biskut jenama Khong Guan dan Khian Guan dari Malaysia, Kementerian Kesihatan Malaysia (KKM) telah menjalankan siasatan ke atas kilang biskut jenama Khong Guan di Johor dan kilang biskut jenama Khian Guan di Pulau Pinang serta gudang biskut jenama Khong Guan yang terletak di Negeri Sembilan. Pensampelan dan analisis dijalankan ke atas biskut berkaitan.

Jadual 1: Senarai Biskut Jenama Khong Guan yang Melebihi Tahap Melamine yang Ditetapkan
Bil. Nama Sampel Keputusan Melamine (mg/kg)
1 Biskut Soda 2.93
2 Biskut Lemon Puff 3.28
3 Biskut Lemon Pof 3.7
4 Biskut Butter Cream 3.76
5 Biskut Baby Fish 4.08
6 Biskut Healthy Cracker 4.21
7 Biskut Cocoa Puff 4.91
8 Biskut Sandwich Oren 5.04
9 Biskut Family Crackers 7.6
10 Biskut Bentuk Binatang 8.99
11 Biskut Rokok 10.2
12 Biskut Mini Puff 22

Jadual 2: Senarai Biskut Jenama Khian Guan yang Melebihi Tahap
Melamine yang Ditetapkan
Bil. Nama Sampel Keputusan Melamine (mg/kg)
1 Biskut Creamy Chocolate 3.66
2 Biskut Lemon Puff 3.91
3 Biskut Square Puff 4.36
4 Biskut Cocoa Puff 5.04
5 Biskut Jagung Puff 6.46
6 Biskut Campuran (Party) 7.99

Information are available in

Unfortunately, KKM does not publish the photo of the product. I'm sure photo will be very helpful for consumer to recognise the biscuit easily.

Kinsteel Bhd ... Oct 2008

It expects the construction boom in the Middle East to cushion the impact of lower domestic and regional demand for its steel products caused by the current sluggish economic environment.

For the first half of the year, overseas sales contributed 40% to Kinsteel’s total revenue. Of the figure, half was from the Middle Eastern market. Kinsteel exports its semi finished product namely billets, beam-blanks and blooms which are mainly used in the construction industry to the Middle East.

Going forward …

Its strategy is to focus on improving the utilisation rate of its products and stepping up marketing efforts overseas.

Venturing into the overseas markets is part of its long term plan to market its full range of products in the global market. The immediate targeted markets were the Middle East and Europe.

Following the completion of the acquisition of a 51% stake each in debt-laden Perwaja Steel Sdn Bhd and its Gurun assets in 2006, Kinsteel was transformed into one of the top five steel players in Malaysia with an integrated steel player status given its upstream, midstream and downstream activities.

Kinsteel is also the country’s sole producer of direct reduced iron (DRI) and heavy sections such as beam-blanks and blooms, U-channel bars, H-beams and I-beams. Currently Kinsteel had a total production capacity of 4.8 million tonnes, covering the diversified product range from upstream plants in Kemaman, midstream and downstream plants in Gebeng, Kuantan and Gurun, Kedah. Perwaja Steel produces 1.5 million tonnes of DRI and 1.3 million tonnes of billets per annum at its Kemaman plant in Terengganu. Its Gurun plant in Kedah produces about 1.2 million tonnes of steel bars, wire rods, beams, sections, bolts and nuts, nails and wire meshes.

Thursday, October 16, 2008

MIDF ... Oct 2008

It is close to signing a strategic partnership deal with a company based in the Gulf Cooperation Council (GCC) states, which will allow MIDF to further grow its asset management business. MIDF received approval from Bank Negara Malaysia in August and 2008 expects to seal the alliance by the year-end (2008).

The alliance will provide a broader spectrum for the group's asset management activities and is timely in the light of current stock market conditions.

MIDF intends to draw funds from the GCC states to Malaysia's equity market as Bursa Malaysia has more syariah-compliant stocks than the Middle East where investors are more accustomed to investing in real estate because of the limited number of syariah-compliant stocks.

MIDF was also interested in finding a strategic partner for its investment banking arm, MIDF Amanah Investment Bank Bhd.

Wednesday, October 15, 2008

Melewar ... Oct 2008

The proponent of the Penang monorail, Melewar Industrial Group Bhd (MIG), is still trying to push through the project even after the federal government has said it will be staying out of the picture.

MIG chairman Tunku Datuk Ya’acob Abdullah said the company had approached the Penang state government with a proposal, but the latter has yet to get back to them.

Tunku Ya’acob said that while the state executive council was keen on the project in the beginning, they might be having second thoughts now. They are a little confused right now. Since they received the (Unesco) World Heritage status, they are having second thoughts on whether they even want a monorail.

Tunku Ya’acob said securing funding might be the biggest obstacle should the Penang government approve the project. It was likely they would go to the bond market to raise 70% of the estimated RM2.2 billion required, but would be looking for partners — local or foreign — to take up a stake in the project. The project would be privately funded, although the state government would be expected to donate some land in exchange for a 5% stake in the project.

However, it was still too early to tell if the project would materialise as the state government’s current position is unclear.

Tuesday, October 14, 2008

AXIS Reit ... Oct 2008

AXIS REIT Managers Bhd has lined up more than RM300mil worth of assets to be injected into Axis real estate investment trust (REIT) over the next two years.

The group will be acquiring assets from developers or third parties, as well as tapping into its eight private equity assets. The properties from its private equity fund comprise office, warehouse, industrial or showroom type properties. The first of the asset has been injected into Axis REIT recently at a cost of RM32mil, which was a discount of some 12.5% from the market value.

They have committed to a portfolio of 21 properties of which 18 assets worth RM670mil have been concluded. They have pre-qualified three assets in Johor and the Klang Valley worth a total RM150mil and expect these acquisitions to be completed by year end (2008).

Axis’ target to increase its asset base to RM1bil would be achievable next year (2009).

Besides resorting to bank borrowings, the group would also undertake equity raising exercises to raise capital to fund the acquisitions. The private placement of 50 million new units at RM1.80 each in January 2007 has raised RM88mil. This has given the company the flexibility to pursue more aggressive yield accretive acquisitions without raising its gearing. Axis REIT has been approved to issue another 51.18 million units valued at around RM82mil, which is equivalent to 20% of the approved fund size of 255.9 million units.

REITs in the country are allowed to gear up to 50% of their asset value but Axis REIT is sticking to its target of maintaining a gearing ratio of between 35% and 40%. Its current gearing ratio is about 39%.

The line up of strategic office cum industrial buildings would give a boost to Axis REIT’s income yielding potential.

Monday, October 13, 2008

Airasia Bhd ... Oct 2008

Although the delisting of AirAsia Bhd is on the cards, there are concerns about how the carrier’s major shareholder will fund the privatisation and the large aircraft deliveries that are coming soon.

It will cost Tune Air Sdn Bhd about RM2.2bil, or RM1.35 a share, to delist AirAsia. Well and good if it has lined up investors from the Middle East to Britain to help finance its mission but, until details are made transparent, funding will remain a concern. Kuwait Finance House denied it was an interested party, saying that “being an Islamic bank we cannot fund a buyout of a company that has conventional debt.’’

Tune Air’s delisting plan is subject to change as it hinges on market conditions. A submission was said to have been made to Bursa Malaysia, with the Securities Commission and CIMB Merchant Bankers Bhd being the advisers for the privatisation.

AirAsia is also expanding and taking delivery of more aircraft at a time when experts are warning that the next 12-18 months (Oct 2008 – end 2009) will be extremely difficult for Asia Pacific carriers. The Association of Asia Pacific Airlines has predicted that some airlines will not survive the current crisis and it is extremely cautious about prospects of the airline industry in 2009. Since the oil spike, about 26 airlines - including some low-cost carriers in Asia - have gone bankrupt so far.

AirAsia has ordered 175 aircraft with 50 more under option - that puts the carrier as potentially one with the largest fleet in the region. Thus far, AirAsia has taken delivery of 45 A320s, with six more later this year (2008), 14 next year (2009) and 24 in 2010. Funding has been arranged for 60 aircraft purchases until June 2009.

AirAsia needed about RM4bil to fund aircraft buys from July 2009 to December 2010. This should be a challenge for AirAsia amid the backdrop of an ongoing global credit crunch and air travel demand getting slower. Banks might also be more reluctant to give AirAsia 100% financing for aircraft purchases due to the fact that they might not have as much funds at their disposal for lending and aircraft values were under pressure. AirAsia would have to bear higher interest costs on future loans to reflect rising credit spreads ... a weaker ringgit will make US dollar-denominated acquisitions more expensive than previously anticipated.

With more debts the carrier’s net gearing ratio of 1.9 times presently will rise. As at end-June 2008, it had debts of RM4.3bil and cash reserves of RM1.1bil.

With slower growth in air travel, even though AirAsia was expanding rapidly, it might not be able to generate enough cash flow to pay its debts going forward.

AirAsia has ordered 175 aircraft with more than 50 under option - that puts the carrier as potentially one wiith the largest fleet in the region. All these factors will have an impact and may drag the share price down since market players rarely favour companies with large debts.

AirAsia also does not have a dividend policy to keep investors interested. To the major shareholder it seems pointless at this juncture to keep the company listed only to see its share price battered. Privatising will take it off the radar screens but it does not resolve the funding issue either.


Industry observers said AirAsia Bhd’s privatisation deal could cost between RM2 billion and RM2.2 billion. The privatisation price could range between RM1.50 and RM1.60 based on a 20% premium to the current share price, bringing the total cost to about RM2.19 billion.

If it were similar to the Maxis privatisation, investors can be found to take up strategic stakes; short-term bridging loans to fund the privatisation would not be an issue.

However as a listed entity, it would have better access to capital markets for financing its fleet expansion programme. The budget carrier would take delivery of 17 Airbus 320s next year and 23 the following year. Therefore the privatisation is unlikely to materialize.

Another factors weighing against any potential privatisation is the significantly increased financing costs of AirAsia’s expansion programme as the benchmark London Interbank Offered Rate (Libor) has risen to near record levels of about 4.5% for US dollar-denominated borrowings. AirAsia’s financing costs could increase by another RM100 million in FY2009 if LIBOR remain at current levels — assuming no change in AirAsia’s credit standing.

However, the privatisation could succeed if investors were available to take up stakes in the privatisated entity. It is believed that EPF could be willing to increase its stake in AirAsia while other possible investors could be financial institutions that provide aircraft financing including Kuwait Finance House and Calyon. The Virgin Group could also be another investor.

Sunday, October 12, 2008



再來一首吧! ................


Saturday, October 11, 2008




Friday, October 10, 2008

TH Group Bhd ... Oct 08

Tung Hup Holdings Sdn Bhd, which holds 53.26% of TH Group Bhd, has proposed a capital repayment of 75 sen per TH Group share under its move to take it private.

Tung Hup had proposed a selective capital repayment (SCR) exercise involving a share capital reduction and a corresponding capital repayment to TH Group shareholders other than Tung Hup and parties acting in concert with it.

Under the proposed corporate exercise, Tung Hup had proposed to reduce the paid-up share capital of TH Group of RM386.55mil, comprising of 386.55 million shares of RM1 each, to reduce it to 75 sen each.

The proposed par value reduction would be implemented immediately prior to the implementation of the proposed SCR.

The proposed SCR will be funded via borrowings by TH Group, including the possible issuance of private debt securities. It did not intend to maintain TH Group’s listing status on the Main Board.

The proposed cash amount of 75 sen per share was a premium of 30% or 17.5 sen above TH Group closing share price of 57.5 sen on Sept 25. It was also 46% or 23.7 sen above the five-day volume weighted average price of 51.3 sen up to Sept 25.

The proposed SCR offered an opportunity to other shareholders to realsie their investments in TH Group at an attractive premium above the market price.

Thursday, October 9, 2008

MUI ... Oct 08

Tan Sri Khoo Kay Peng controls 60.7% of Laura Ashley, 35.17% of it through MUI.

Tan Sri Khoo Kay Peng who owns the HK’s Laura Ashley retail chain, and Robert Kuok, who has a strong network in China, may join forces to penetrate China’s retailing market.

It is worth nothing that Kuok’s Kerry group Ltd bought a 3.41% stakes or Rm25 million in Khoo’s UK listed Laura Ashley Holdings plc in Sept 2008.

Observers say Kuok could play a major role in helping Laura Ashley, a home furnishing and women’s wear outfit, expanding in China’s fast growing retail market.

In an announcement stated in Ashley’s interim results hinted at such a possibility. Laura Ashley said its Asian franchise partner has major plans to develop the china market where it has been agreed that 80 stores will be opened over the next five years. Under the franchise system, Laura Ashley need not commit itself to invest in new store openings and operations in China, which will be done by the franchiser.

Thus Kerry Group’s purchase of a small stake in Laura Ashley could signal the group’s return to the retail business.

Almost 80% of Laura Ashley’s total turnover came from the UK, where the company has 225 stores. Nevertheless, the UK market is saturated. The right tonic for Laura Ashley now is to look to China for the kind of fast growth.

Wednesday, October 8, 2008

ASTRO ... Oct 08

There is talk that it could be eyeing a new partner in Aora TV. PT Karyamegah Adijaya’s Aora, which started nationwide broadcast in Indonesia barely two months ago (Aug 2008) is controlled by Rini Mariani Soemarno, Indonesia’s former minister of trade, and her brother Ongki P Soemarno.
Market watchers cite the fact that Aora, a newcomer to the Indonesia broadcast arena, got off to a good start, with exclusive pay TV rights to both the 2008 Beijing Olympics and the current EPL 2008/2009 season in Indonesia.

While tvOne, an Indonesian free to air channel, had from Sept 13, 2008 begun broadcasting selected EPL matches, only Aora subscribers can watch in full the 370 EPL matches for the season from Aug 2008 to May 2009.

Astro had heavy investments in sporting events. Aora’s current sports channels include Goal TV1 and Goal TV2, being football channels that Astro is promoting and distributing in this region via a JV with Yes Television (HK) Ltd, formed in June 2005. Aora is also broadcasting using Measat-3 satellite owned by ASTRO’s sister company Measat Global Bhd.

Rini is currently Aora’s president commissioner while Ongki is its president director. They collectively own 95% of the company. Solihin Kalia, a son of Indonesian Vice President Jusuf Kalla, holds some of the remaining 5% stake held by Indonesia HGC Telecommunications. Astro did not have any stakes in Aora. Rini may have kinked with Astro because Ongki’s coursemate at Harvard Business School. They used Measat 3 because it has four transponders whereas Indosat has one.

Aora is the siblings’ first pay TV venture. The Soemarno siblings’ known ventures include PT Semesta Citra Motorindo, which produces Kanzen motocycles in Indonesia.

Considering the Soemarno siblings’ background, some Indonesian bloggers argue that Aora’s owners may not need to go beyond content partnerships with ASTRO. There is a very indication that ASTRO remains a strong believable in the potential of the Indonesian pay-TV market. It intends to retain its position as a supplier of TV content, channel content and broadcast services to the pay TV industry in Indonesia.

In any case, ASTro’s experience and strong ties with content providers may come in handy for Aora, plans to have a full commercial launch in the first quarter 2009, offering at least 50 channels to customers across Indonesia.

And given that a lot of cash is needed to grow the pay TV business, the cash injection for 20% equity in Aora by ASTRO could well give the company a bigger war chest.

But there are those who reckon that both ASTRO and Aora still have other issues to clear up at the moment, regardless of whether they are open to a tie up.

There are parties who are clamouring for the Dept of Communications and Informatics to revoke the broadcast licenses given to Aora’s operator. This was based on complaints from the Press and Braodcast Society of Indonesia alleging the illegal reshuffling of Aora’s shareholdings, after it received its broadcasting permit from the Ministry of Technology and Information. Rini was reportedly confident of being in compliance with the law.

Astro still has to sort out issues with PTDV. Astro said the extension was purely as a gesture of goodwill, with the Rm20 million cost already been accounted for in its second quarter results ended July 31, 2008 (Astro wrote off RM231 million in provisions in relation to its termination of services to PDTV and incurred RM78 million costs for providing services to PDTV, rsulting in AstrO’s 2Q2009 losses widening to RM247 million from RM54 million in 2Q2008).

There was no mention of whether Astro had managed to overtun an Aug 29, 2008 ruling by the Business Competition Supervisory Commission, which ordered ASTRO to continue providing services and support to PDTV until the legal settlement of the ownership status of PDTV

Industry observers believe that ASTRO will not continue providng support and services to PDTV indefinitely as it not PDTV’s shareholder and is therefore, not obliged to do so.

An extension of its presence in Indonesia would reduce the RM231 million provisions taken in 2Q2009 results, but could lead to further startup losses. If indeed ASTRO finds Aora appealing, a clean break up with PDTV may be all that stands in its path from stating its intentions.

Astro All Asia Networks plc has extended the provision of support and services and also the trademark licence agreement to Indonesia’s PT Direct Vision (PT DV) until Oct 19 2008. As a gesture of goodwill and in good faith, it had agreed to continue providing the support which was scheduled to be terminated.

This is the second time that Astro had extended the provision of support and services. Under the original agreement, the contract expired on Aug 31 2008 but Astro decided to extend the provision of the services.

The cost to provide services for this period will amount to about RM20mil and has already been accounted for in the group’s results for the second quarter ended July 31 2008, previously announced.

Tuesday, October 7, 2008

Airasia ... Oct 08

Sources say privatization of Airasia is set t o happen. It is learnt that the major shareholders have been deliberating the privatization proposal for some time now, and felt that the market would continue to undervalue the stock as long as the company is on an expansion drive. Hence, they felt that privatization was the best solution to extract value from Airasia and chart its progress as it expands its fleet size.

Its controlling shareholder is Tune Air Sdn Bhd, which controlled 30.7% shares of the company as at end March 2008. Tune Air’s shareholders are Datuk Fernandes, who is the CEO, and Datuk Kamurudin Meranun, the deputy CEO and executive director of Airasia.

The other substantial shareholder of Airasia is the EPF, which has accumulated 7.7% shares, after emerging as a substantial shareholder in Jan 2008.

It is not clear if Fernandes and Kamarudin will work with the EPF, or attempt the privatization on their own.

Certain quarters also say Fernandes and his associates have already lined up investors from the region to take up stakes and hold these for a longer term if they are successful in their privatization plans.

The privatization is similar to many other such exercises whereby the major shareholders pay full value for the company and take it private if they feel that the market does not appreciate the stock.

Based on its net asset per share, Airasia is worth rm2.3 billion with a spread of about 2.4 billion shares.

Fuel cost makes up some 50% of total operating cost.

Airasia also holds 16% via redeemable preference shares in Airasia X, which operates budget long haul flights.

Monday, October 6, 2008

Sap Tech ... Sept 2008

Several local and foreign companies, including Sapura Technology Bhd, have bid for work under the RM3.45 billion project to lay parallel railway lines between Seremban and Gemas. Sapura Tech, for instance, has made a RM100 million bid to carry out telecommunication works.

The main contractor for the project is India's national railway firm, Indian Railway Construction Co International Ltd (Ircon).

Ircon had called for tenders for electrification, signalling and telecommunication packages. This is the second round of tenders after it awarded initial works in May 2008.

Global Rail Sdn Bhd, Australia's Westinghouse Rail Systems and Ansaldo Signal, and Germany's Siemens have also bid for several packages.

Global Rail had made a RM300 million bid to design, supply, construct, test and commission several packages consisting of signaling and electrification works, train protection system and rail-track point machines. Global Rail, a railway engineering firm, is controlled by Fan Boon Heng, who headed Balfour Beatty Rail Sdn Bhd for over 15 years.

The proposals made by Ansaldo, Westinghouse and Siemens are in the range of RM280 million to RM380 million.

Ircon is still deciding whether to award the jobs based on the proposals or break them down into smaller packages so it could undertake offshore procurement on its own and give the installation work to local contractors.

The four-year Seremban-Gemas project, which covers 110km, is fully funded by the government. It will cover 34 river bridges, 27 road bridges, 107 culverts, two viaducts of 1.25km and 0.6km lengths and an 8km tunnel. Ircon expects to complete building the first stretch from Seremban to Sg Gadut by early 2009, and then from Sg Gadut to Gemas in 2011.
It has awarded contracts to build stations, bridges, railway embarkment, culverts, drainages and foundation for track laying to Loh & Loh Corp Bhd, Fajarbaru Builder Group Bhd and IJM Corp Bhd. These are worth some RM1.1 billion in total.

Sunday, October 5, 2008


Malaysia Today ................

Get Vietnamese workers, dogs missing.

Get Bangladeshi workers, Malay girls missing.

Get Indonesian workers, money missing.

Get Indian workers, jewellery missing.

Get Chinese workers, husbands missing.

Call the police, the evidence goes missing,

Call the lawyers, the judge go missing,

Call the ministry of transport, the reports go missing

Change the government, funds go missing,

Say something and you may be missing.

Saturday, October 4, 2008




証,Mary 和我是純粹的上司下屬,絕對沒別的。"



愛你的 老公


我不會說你和 Mary "睡"在一起,
我也不會說你和 Mary "沒睡"在一起,
--- 就是如果她的確是睡在自己床上的話,
愛你的 老婆

Friday, October 3, 2008

5% service tax? Know your rights!

Report to the authority if they charge you the 5% service tax. Some name may be unfamiliar to you since it's the holding company



1. The public can decline to pay service tax to restaurant owners who fail to display their service tax license issued by the Royal Malaysian Customs.

2. The public have the rights to demand for receipts or invoices indicating that the 5% Service Tax payment or 5% tax inclusive payment has been made.

3. The public can make cross references of the list of restaurants licensed under the Service Tax Act 1975 in the Customs website at or with the State Customs Director / Head of the Internal Revenue Division at the respective states' Customs offices.

4. The public can submit their complaints / suggestions to the Customs Department via these e-mail addresses: or to the Head of the Internal Revenue Division at the respective states' Customs offices.

5. The public can obtain and download service tax information / guidelines from the Customs website at under the heading "Internal Revenue" with the sub-heading "Service Tax".

6. Please be informed that failure to obtain a service tax license and issuing invoices, if convicted, can lead to a fine of RM5,000 or jail term of not more than 2 years, or both.

SAAG ... Sept 2008

SAAG Consolidated (M) Bhd’s subsidiary has signed a memorandum of agreement (MOA) with Airia Jaya Marine (S) Pte Ltd to purchase an anchor handling tug and supply “Hull 885C” for US$19.7 million (RM67.6 million). The vessel formed the key part of a contract that could be worth more than RM36 million.

SAAG had secured a contract from a Singapore company to charter the vessel for 24 months, with an option to charter up to another 24 months. The total value of the initial period of the contract would be approximately RM36 million.

Additional equipment would be installed on the vessel for the purposes of the contract making the value of the vessel some US$22 million.

The company expects to complete the MOA by the fourth quarter of the year while the contract is due to commence by January next year.