Sunday, May 31, 2009

Why women in China do not get breast cancer

Extracted from Your Life in Your Hands, by Professor Jane Plant.

I had no alternative but to die or to try to find a cure for myself. I am a scientist - surely there was a rational explanation for this cruel illness that affects one in 12 women in the UK ?

I had suffered the loss of one breast, and undergone radiotherapy. I was now receiving painful chemotherapy, and had been seen by some of the country's most eminent specialists. But, deep down, I felt certain I was
facing death.
I had a loving husband, a beautiful home and two young children to care for. I desperately wanted to live.

Fortunately, this desire drove me to unearth the facts, some of which were known only to a handful of scientists at the time.
Anyone who has come into contact with breast cancer will know that certain risk factors - such as increasing age, early onset of womanhood, late onset of menopause and a family history of breast cancer - are completely out of our control. But there are many risk factors, which we can control easily.

These 'controllable' risk factors readily translate into simple changes that we can all make in our day-to-day lives to help prevent or treat breast cancer. My message is that even advanced breast cancer can be overcome because I have done it.

The first clue to understanding what was promoting my breast cancer came when my husband Peter, who was also a scientist, arrived back from working in China while I was being plugged in for a chemotherapy session.

He had brought with him cards and letters, as well as some amazing herbal suppositories, sent by my friends and science colleagues in China .

The suppositories were sent to me as a cure for breast cancer. Despite the awfulness of the situation, we both had a good belly laugh, and I remember saying that this was the treatment for breast cancer in China , then it was little wonder that Chinese women avoided getting the disease.

Those words echoed in my mind..... Why didn't Chinese women in China get breast cancer? I had collaborated once with Chinese colleagues on a study of links between soil chemistry and disease, and I remembered some of the statistics.

The disease was virtually non-existent throughout the whole country. Only one in 10,000 women in China will die from it, compared to that terrible figure of one in 12 in Britain and the even grimmer average of one in 10 across most Western countries. It is not just a matter of China being a more rural country, with less urban pollution. In highly urbanized Hong Kong , the rate rises to 34 women in every 10,000 but still puts the West to shame.

The Japanese cities of Hiroshima and Nagasaki have similar rates. And remember, both cities were attacked with nuclear weapons, so in addition to the usual pollution-related cancers, one would also expect to find some radiation-related cases, too.

The conclusion we can draw from these statistics strikes you with some force. If a Western woman were to move to industrialized, irradiated Hiroshima , she would slash her risk of contracting breast cancer by half.

Obviously, this is absurd. It seemed obvious to me that some lifestyle factor not related to pollution, urbanization or the environment is seriously increasing the Western woman's chance of contracting breast cancer.

I then discovered that whatever causes the huge differences in breast cancer rates between oriental and Western countries, it isn't genetic.

Scientific research showed that when Chinese or Japanese people move to the West, within one or two generations their rates of breast cancer approach those of their host community.

The same thing happens when oriental people adopt a completely Western lifestyle in Hong Kong . In fact, the slang name for breast cancer in China translates as 'Rich Woman's Disease'. This is because, in China , only the better off can afford to eat what is termed ' Hong Kong food'.

The Chinese describe all Western food, including everything from ice cream and chocolate bars to spaghetti and feta cheese, as 'Hong Kong food', because of its availability in the former British colony and its scarcity, in the past, in mainland China .

So it made perfect sense to me that whatever was causing my breast cancer and the shockingly high incidence in this country generally, it was almost certainly something to do with our better-off, middle-class, Western lifestyle.

There is an important point for men here, too. I have observed in my research that much of the data about prostate cancer leads to similar conclusions.

According to figures from the World Health Organization, the number of men contracting prostate cancer in rural China is negligible, only 0.5 men in every 100,000. In England , Scotland and Wales , however, this figure is 70 times higher. Like breast cancer, it is a middle-class disease that primarily attacks the wealthier and higher socio-economic groups ¨C those that can afford to eat rich foods.

I remember saying to my husband, 'Come on Peter, you have just come back from China . What is it about the Chinese way of life that is so different?'

Why don't they get breast cancer?'

We decided to utilize our joint scientific backgrounds and approach it logically.

We examined scientific data that pointed us in the general direction of fats in diets. Researchers had discovered in the 1980s that only l4% of calories in the average Chinese diet were from fat, compared to almost 36% in the West.

But the diet I had been living on for years before I contracted breast cancer was very low in fat and high in fibre. Besides, I knew as a scientist that fat intake in adults has not been shown to increase risk for breast cancer in most investigations that have followed large groups of women for up to a dozen years.

Then one day something rather special happened. Peter and I have worked together so closely over the years that I am not sure which one of us first said: 'The Chinese don't eat dairy produce!'

It is hard to explain to a non-scientist the sudden mental and emotional 'buzz' you get when you know you have had an important insight. It's as if you have had a lot of pieces of a jigsaw in your mind, and suddenly, in a few seconds, they all fall into place and the whole picture is clear.

Suddenly I recalled how many Chinese people were physically unable to tolerate milk, how the Chinese people I had worked with had always said that milk was only for babies, and how one of my close friends, who is of Chinese origin, always politely turned down the cheese course at dinner parties.

I knew of no Chinese people who lived a traditional Chinese life who ever used cow or other dairy food to feed their babies. The tradition was to use a wet nurse but never, ever, dairy products.

Culturally, the Chinese find our Western preoccupation with milk and milk products very strange. I remember entertaining a large delegation of Chinese scientists shortly after the ending of the Cultural Revolution in the 1980s..

On advice from the Foreign Office, we had asked the caterer to provide a pudding that contained a lot of ice cream. After inquiring what the pudding consisted of, all of the Chinese, including their interpreter, politely but firmly refused to eat it, and they could not be persuaded to change their minds.

At the time we were all delighted and ate extra portions!

Milk, I discovered, is one of the most common causes of food allergies. Over 70% of the world's population are unable to digest the milk sugar, lactose, which has led nutritionists to believe that this is the normal condition for adults, not some sort of deficiency.

Perhaps nature is trying to tell us that we are eating the wrong food.

Before I had breast cancer for the first time, I had eaten a lot of dairy produce, such as skimmed milk, low-fat cheese and yoghurt. I had used it as my main source of protein. I also ate cheap but lean minced beef, which I now realized was probably often ground-up dairy cow.

In order to cope with the chemotherapy I received for my fifth case of cancer, I had been eating organic yoghurts as a way of helping my digestive tract to recover and repopulate my gut with 'good' bacteria.

Recently, I discovered that way back in 1989 yoghurt had been implicated in ovarian cancer. Dr Daniel Cramer of Harvard University studied hundreds of women with ovarian cancer, and had them record in detail what they normally ate. Wish I'd been made aware of his findings when he had first discovered them.

Following Peter's and my insight into the Chinese diet, I decided to give up not just yoghurt but all dairy produce immediately. Cheese, butter, milk and yoghurt and anything else that contained dairy produce - it went down the sink or in the rubbish.

It is surprising how many products, including commercial soups, biscuits and cakes, contain some form of dairy produce. Even many proprietary brands of margarine marketed as soya, sunflower or olive oil spreads can contain dairy produce.

I therefore became an avid reader of the small print on food labels.

Up to this point, I had been steadfastly measuring the progress of my fifth cancerous lump with callipers and plotting the results. Despite all the encouraging comments and positive feedback from my doctors and nurses, my own precise observations told me the bitter truth.

My first chemotherapy sessions had produced no effect - the lump was still the same size.

Then I eliminated dairy products. Within days, the lump started to shrink !

About two weeks after my second chemotherapy session and one week after giving up dairy produce, the lump in my neck started to itch. Then it began to soften and to reduce in size. The line on the graph, which had shown no change, was now pointing downwards as the tumour got smaller and smaller.

And, very significantly, I noted that instead of declining exponentially (a graceful curve) as cancer is meant to do, the tumour's decrease in size was plotted on a straight line heading off the bottom of the graph, indicating a cure, not suppression (or remission) of the tumour.

One Saturday afternoon after about six weeks of excluding all dairy produce from my diet, I practised an hour of meditation then felt for what was left of the lump. I couldn't find it. Yet I was very experienced at detecting cancerous lumps - I had discovered all five cancers on my own. I went downstairs and asked my husband to feel my neck. He could not find any trace of the lump either.

On the following Thursday I was due to be seen by my cancer specialist at Charing Cross Hospital in London . He examined me thoroughly, especially my neck where the tumour had been. He was initially bemused and then delighted as he said, 'I cannot find it.'

None of my doctors, it appeared, had expected someone with my type and stage of cancer (which had clearly spread to the lymph system) to survive, let alone be so hale and hearty.

My specialist was as overjoyed as I was. When I first discussed my ideas with him he was understandably skeptical. But I understand that he now uses maps showing cancer portality in China in his lectures, and recommends a non-dairy diet to his cancer patients.

I now believe that the link between dairy produce and breast cancer is similar to the link between smoking and lung cancer. I believe that identifying the link between breast cancer and dairy produce, and then developing a diet specifically targeted at maintaining the health of my breast and hormone system, cured me.

It was difficult for me, as it may be for you, to accept that a substance as 'natural' as milk might have such ominous health implications. But I am a living proof that it works and, starting from tomorrow, I shall reveal the secrets of my revolutionary action plan.

Extracted from Your Life in Your Hands, by Professor Jane Plant.


1) Only one in 10,000 women in China will die from breast cancer.

2) The Chinese do not eat dairy produce!

3) Observation : Elimination of dairy products caused the cancerous lump to shrink within days

Saturday, May 30, 2009

Choosing A Profession

An old kampung imam had a teenage son, and it was getting time the boy should give some thought to choosing a profession.
Like many young men his age, the boy didn't really know what he wanted to do, and he didn't seem too concerned about it.
One day, while the boy was away at school, his father decided to try an experiment. He went into the boy's room and placed on his study table four objects.

1. The Holy Book .
2. A fifty ringgit note.
3. A bottle of whiskey.
4. And a Playboy magazine.
'I'll just hide behind the door," the old imam said to himself. "When he comes home from school today, I'll see which object he picks up."

"If it's the holy book, he's going to be an imam like me, and what a blessing that would be!"
"If he picks up the fifty ringgit note, he's going to be a business man, and that would be okay, too."

"But if he picks up the bottle, he's going to be a no-good drunken bum, and God, what a shame that would be."

"And worst of all if he picks up that magazine he's going to be a skirt-chasing womanizer."

The old man waited anxiously, and soon heard his son's foot-steps as he entered the house whistling and heading for his room..

The boy tossed his books on the bed, and as he turned to leave the room he spotted the objects on the table. With curiosity in his eye, he walked over to inspect them. Finally, he picked up the Holy Book and placed it under his arm. He picked up the Fifty Ringgit note and dropped into his pocket. He uncorked the bottle of Whiskey and took a big drink, while he admired the Playboy Magazine's centerfold.

"God have mercy," the old imam disgustedly whispered. "He's going to be an Umno Policitian!!

Friday, May 29, 2009

F & N


FRASER & NEAVE HOLDINGS recorded Net Profit of RM53.2m in 2QE Mar 31, 2009 - up 11.2% from RM47.9m a year ago. The Company in an EXCHANGE filing on May 4, 2009 said that Revenue rose marginally to RM913.8m from RM907.6m. EPS was 15 sen compared with 13.4 sen previously.

The Company declared Gross Dividend of 17 sen (Net 12.75 sen). FRASER & NEAVE HOLDINGS plans to keep its Dividend Payout Ratio at least at 50% despite lower earnings for FYE Sep 2009.

F&N said the Group benefited from lower input costs. Group Operating Profit Before Unusual Items rose 26% from a year ago. ".... After accounting for the one-time charge of RM10m due to the closure of the glass furnace in Petaling Jaya, operating profit still registered an improvement of 12% over last year ...." the Company said.

F&N said the Operating Profit of the Dairies Division more than doubled with the return to a more normalized profit margin after the surge in input costs in 2008.

However, the Property Division recorded lower profitability due to the cancellation of sales as reported in the fourth quarter of 2008.

F&N said for the first half, Net Profit rose 12.7% to RM104.2m versus RM92.4m a year ago while Revenue rose 1.3% to RM1.83 bil from RM1.81 bil.

F&N CEO - TAN ANG MENG said the higher Operating Profit of RM158.5m versus RM141m a year ago was due to higher soft drinks and glass revenue which were partially offset by lower exports of dairy products.

For the second half, he said the lower commodity prices and Government stimulus packages to boost spending as positive factors. However, he expected consumer spending and sentiment to remain weak for the remaining months of its financial year as economic conditions deteriorate. " .... However, sales revenue of the group is expected to be stable as F&N products are daily necessities and priced at affordable levels ...." he said.

TAN AH MENG also said May 5, 2009 that he expected the Company to post continued strong growth in Revenue and Profitability for the eighth consecutive fiscal year in FYE Sep 30, 2009.

However, he did expect revenue and profit to dip next year after the termination of the Coca-Cola contracts. To offset the decline, the Company plans to start 50 new ready-to-drink products from Feb 2010.

He also said the new plant in Roajana, Thailand was in the advanced stage of construction and would be operational by the middle of 2009.

Hovid/Carotech ... May 09

Following the commencement of Hovid Bhd’s new Carotech plant in Lumut, Perak, in January 2009, capacity has increased from 90,000 to 120,000 tonnes of biodiesel per annum.

The positive impact of the higher capacity is already showing. For the quarter ended March 31, revenue increased 51% to RM80mil while net profit rose 72% to RM5.4mil. Over the nine-month period, revenue increased 12% to RM168mil but it recorded a net loss of RM7mil compared with a net profit of RM13mil previously.

This was attributed to the foreign exchange (forex) loss from the translation of its US$55mil loan. Over the nine month period, Hovid has recognised a total forex loss amounting to RM22.2mil.

Hovid took up the loan to construct the Carotech plant two years ago and there was also higher interest and depreciation following the completion of the new plant.

Hovid owns 58% in listed Carotech Bhd, which produces biodiesel and phytonutrients.

Ho, together with the Malaysian Palm Oil Board, is currently conducting a 3-year clinical trial on tocotrienols and its benefits on the brain. Through this trial, Ho will gain exclusive rights to commercialise any resultant patents.

Hovid is already producing its own brand of tocotrienol supplements, Tocovid. It has over 2,000 products registered under its brand and is keen to tie up with a multinational company to market tocotrienols globally.

Carotech uses crude palm oil (CPO) as feedstock, which it refines to produce methyl ester (biodiesel) and phytonutrients in the form of tocotrienols and tocopherols (vitamin E compounds) and carotene, a vitamin A compound. Hovid presently produces 80% of the world’s tocotrienol supply.

Each time Carotech extracts phytonutrients from palm oil, it inevitably produces biodiesel. Although a by-product of Carotech, due to interest, it now contributes some 70% to Carotech revenue.

In the case of Hovid, biodiesel contributes 40% to revenue.

CPO prices are negatively correlated to the production of biodiesel. Hence, high CPO prices will see the production of biodiesel being less viable.

This has been a huge reason for the loss of investor interest in Hovid and Carotech as CPO prices took off beginning 2006 to reach a peak of RM4,330 per tonne in March 2008. It presently stands at about RM2,789 per tonne.

Thursday, May 28, 2009

TSH ... May 09

TSH Resources Bhd, which bought two Indonesian plantation companies last year, is on the lookout for additional oil palm land in the republic. The move is part of its long-term plans to grow gradually from being a small plantation-based company to a mid-sized player.

They are currently exploring opportunities (in Indonesia and Malaysia) and are in talks with a few companies. They are not expanding 100,000ha right away, but slowly and gradually around 5,000ha to 6,000ha in Malaysia and 15,000ha to 20,000ha per year in Indonesia.

TSH has a landbank of almost 80,000ha, of which less than 10 per cent is in Malaysia, mainly in Sabah.

In June 2008, TSH bought the entire paid-up capital of the Singapore-based Martinique Cove Pte Ltd, which owns 90 per cent of Indonesian plantation company PT Mitra Jaya Cemerlang. The acquisition added 15,000ha to TSH's landbank.

In December 2008, the group bought the entire stake of another Singapore company, Elaeis Pte Ltd, which owns 90 per cent of the Indonesia-based PT Farinda Bersaudara. This added 13,000ha to its landbank.

On its lower net profit last year, he attributed it to unrealised foreign currency losses of RM31.7 million.

Over the next few years, some of our oil palm trees will start to mature, bringing in more cash flow and revenue for them to repay loans as well as (gaining from the) strengthening crude palm oil prices of up to RM2,700 from RM1,800 a tonne before.

On its cocoa plantations, it had no plans to expand the business, which contributes some 10 per cent of revenue.

TSH Resources Bhd, which owns 65 per cent of Ekowood, had no plans to divest its stake as the latter was still a good company. It had registered profits for the past five years.

Ekowood reported RM2.3 million net loss in the first quarter ended March 31 2009 against RM3.4 million net profit in the same quarter last year, hurt by lower sales volume. Ekowood derives four-fifths of its revenue from overseas markets spanning Europe, the US and Asia.

Wednesday, May 27, 2009



DIGI.COM recorded Net Profit of RM275.4m for 1QE Mar 31, 2009 - 5% lower than the RM290.1m in the previous corresponding period. In an EXCHANGE filing on Apr 30, 2009, the Group said it recorded a 4% growth in Revenue to RM1.2 bil from RM1.1 bil previously due to steady demand for mobile services and an increased subscriber base to 7.2m at the end of 1QE Mar 2009.

EPS was lower at 35.4 sen for the quarter compared with 38.7 sen a year ago.

On the Group's prospects for the remaining of 2009, the Group expects the challenging macroeconomic environment in Malaysia to continue, while the communications industry was expected to be relatively more resilient than other industries.

DIGI said with household broadband penetration of only 21.1% as at end-2008, the Group saw good prospects of capturing additional revenue streams.

The Group will focus strongly on operating cash-flow in 2009 and aims to achieve an Operating Cash-Flow similar to or better than that in 2008.

In Mar 2009, the Group became the latest wireless broadband player in Malaysia with the launch of its 3G/HSPA wireless broadband network and offerings in the Klang Valley.

CHHB ... May 09

It is in talks with banks to refinance its RM150 million bonds by year-end (2009), as it prepares for future launches and landbank expansion.

Although the interest costs from servicing the bonds were “not very high”, CHHB saw the need to re-profile its debt to match its future cash flow. It needs to re-profile this RM150 million and work on growing its core business and bring in cash flow.

Rrefinancing is to match its future cash flow with its financing requirements.

The company did not plan to borrow heavily for the refinancing exercise despite CHHB’s low gearing of 0.5 times. It is in talks with a couple of banks to explore several options to refinance the bonds. The cash flow from CHHB’s properties alone will be enough to provide a significant part of that refinancing required.

CHHB sought the indulgence of the end beneficiaries of the bonds for the interest payment of RM16.23 million, due May 6, 2009, to be deferred until Dec 31, 2009. It would seek its bondholders’ consent to transfer properties equivalent to RM16.23 million in value in lieu of payment of interest.

CHHB deputy chairman and former managing director Tan Sri Lee Kim Yew was the only beneficial holder of the bonds. Lee owns a 32% stake in CHHB as at April this year (2009).

The RM150 million 3% to 8% redeemable secured bonds will mature on Dec 31, 2009. The bonds are secured by CHHB’s existing properties, including its Palace of The Golden Horses, which is valued at over RM400 million .The interest payments on the bonds are payable semi-annually in May and November. Since the bonds were issued on April 26, 1996, the company had paid interests totalling RM118.5 million.

CHHB would launch two projects, one residential and one commercial, when market conditions improved next year-end (2009).

For the year ended Dec 31, 2008, CHHB posted a net profit of RM13.6 million, down 86% from RM100.48 million in FY07. Revenue rose 9% to RM240.97 million.

Net cash from operations stood at RM40.2 million. It had RM347.71 million in total borrowings and RM685.79 million in shareholders’ fund.

CHHB ... May 09
CHHB ... Mar 09

Tuesday, May 26, 2009



HYUNMAL MOTOR sb - a unit of SIME DARBY has entered into a conditional Share Purchase Agreement with ORIENTAL HOLDINGS and LIM TIONG BOON to acquire the remaining 60% equity in ORIENTAL-HYUNDAI sb comprising six million shares of RM1 each. Upon completion, ORIENTAL HYUNDAI will be a 100%-owned unit of HYUNMAL MOTOR.

" .... The distribution of Hyundai vehicles in Malaysia will be consolidated under HYUNMAL MOTOR, which is the sole and exclusive importer and distributor of completely built-up Hyundai vehicles and related spare parts ...." said SIME DARBY.

SIME DARBY is a GLC and the import of fully built up cars is controlled via the issue of import permits. ORIENTAL's profitable HONDA franchise was taken over the same way a few years ago and it is happening again. Wonder how much confidence such moves instill in the business community.

KPS/JAKS/KHSB/Puncak Niaga ... May 09

Officials from the Selangor and Federal governments will meet to thrash out details and work towards completing the water restructuring in the state by end-June 2009.

Energy, Green Technology and Water Minister Datuk Peter Chin Fah Kui is not opposed to the idea of a re-valuation of the water assets owned by the state and the four water concessionaries.

Under the nationwide restructuring of the water sector in peninsular Malaysia and Labuan, the Minister of Finance Inc-owned PAAB will buy over all water assets in the state. Thus far, PAAB has signed agreements for the takeover of water assets in Malacca, Negri Sembilan and Johor.

The restructuring of water assets in Selangor led by the state government was supposed to have been completed in March 2009 but hit a snag when the four concessionaries did not agree to an offer of RM5.7bil made by the state in February 2009.

Subsequently, PAAB was roped in to begin negotiations with the concessionaries.
The setting up of a joint task force and the meeting between Khalid and Chin give renewed hope to the restructuring as Selangor has the most fragmented water industry with the most number of players.

The four concessionaries are Syarikat Bekalan Air Selangor (Syabas), Puncak Niaga (M) Sdn Bhd, Syarikat Pengeluar Air Selangor Sdn Bhd (Splash) and Konsortium ABBAS Sdn Bhd.

Valuation of water assets was the biggest issue for the concessionaries in not accepting the offer made by the state. The negotiations would look at the whole package, the assets and other costs.

There was a lot of wastage and all parties involved should look into bringing the percentage to a more acceptable level of 25% from the current 37% nationwide.

Puncak Niaga/KPS ... Mar 09
KPS/Puncak Niaga/JAKS ... Nov 2008
JAKS....Dated May 2008.
Puncak Niaga/KPS ... Mar 09

Monday, May 25, 2009

Genting Bhd/Resorts World Bhd ... May 09

Genting Bhd has invested US$100 million in bonds of rival MGM Mirage Inc, a US-based casino operator, to secure better returns for its cash. It subscribed for senior notes that are secured against the Bellagio Hotel and Casino and the Mirage Hotel and Casino, both located in Las Vegas.

Genting Overseas Holdings Ltd, a wholly-owned unit of Genting, invested US$50 million while Resorts World Ltd, a unit of Resorts World Bhd, also subscribed for the same amount. Resorts World Bhd is a subsidiary of Genting.

Half of the total US$100 million are notes that pay annual interest of 10.375 per cent and are due in May 2014. The rest carry a rate of 11.125 per cent and they mature in November 2017.

The notes are part of a US$1.5 billion sale made by MGM to partly settle some existing debt. MGM announced the completion of the exercise on May 19 2009.

The debt is also secured against high quality gaming and entertainment assets in Las Vegas. MGM, which is listed on the New York Stock Exchange, owns and operates 16 properties located in Nevada, Mississippi and Michigan in the US. It also has 50 per cent interest in four other properties in Nevada, New Jersey, Illinois and Macau. For the year to December 31 2008, MGM group made net revenue of US$7.2 billion.

Going Forward …

Genting group’s recent subscription of US$100mil senior secured MGM Mirage Inc notes has raised the possibility of Genting’s potential entry into the Macau gaming market.

It would not be surprised if the subscription was more than an interest-yielding exercise given recent press reports that the New Jersey Division of Gaming Enforcement has advised that MGM Mirage should be directed to disengage from its Macau joint venture (JV) partner Pansy Ho, who has a 50% stake in MGM Grand Macau. The verdict was in response to the Las Vegas gaming group’s application to renew its casino license for Borgata Hotel Casino in Atlantic Cit in the US.

If complications in the MGM-Pansy Ho JV led to the departure of either party, Genting group’s subscription to the bonds would not hurt its chances of potentially filling the void.

Industry observers continue to believe that an eventual presence in Asia’s gaming hub of Macau would strengthen the group’s position as a formidable regional gaming player.
It is believed that MGM may potentially divest its stake in MGM Grand Macau under regulatory pressure. Should MGM Grand Macau be up for sale as postulated, it could offer Genting an excellent opportunity to immediately access the Macau gaming market without going through the lengthy asset building process.

Project cost for the MGM Grand Macau was reported to be about US$1.3bil. Even if MGM demanded a premium on top of its 50% stake of US$0.7bil, Genting would have no problem funding the acquisition through Resorts World Bhd, which was still sitting on a huge cash pile of RM4.55bil (US$1.3bil) as at Dec 31, 2008.

The acquisition of MGM Grand Macau, if it materialises, could be a huge re-rating catalyst for both Genting and Resorts.

The notes were offered as part of a US$1.5bil placement execrcise, the proceeds of which will be used by MGM to part settle its outstanding debts and for general corporate purposes. The notes are secured by a first-priority lien on substantially all the assets of the Bellagio Hotel and Casino and the Mirage Hotel and Casino in Las Vegas.

The intention of to acquire income generative assets is certainly a step in the right direction. Bu the structure of the acquisition deal and the pricing are separate issues.

Will Resorts World be Genting’s group vehicles for assets acquistions or will it be Genting, in which the Lim family owns a direct 32% stake?

If the acquisition is done at Genting level, how will management channel Resorts World’s casino into the parent, considering the latter has never been generous with dividends?

Genting Intl Plc ... Jan 2009
Genting Bhd/Resorts ... June 2008
Genting ... the Edge

Sunday, May 24, 2009

有錢並不能代表一切,感情,生命一般情況下錢是賣不來的. 年薪三十万后,妻子却离我而去.













有人认为如果不趁年轻时赚钱将来怎么办。人不能活在将来,因为你怎么知道你有将来?你甚至怎么知道你有明天?未来? 还有将来的将来? 什么时候是你的今天? 钱是永远也赚不完的。 但是你一定确定你有现在,




讲到这,他停住了,我也没接话,好一会后他说: " 再也不要把好东西留到特别的日子才用,你活着的每一天都是特别的日子!"




"将来","总有一天" 已经不存在她的字典了。



Saturday, May 23, 2009

明眼穴 - 重要又好用

这是 一位60多岁的师兄和我分享的,他原有老花及近视,做这个穴道按压半年后去验视力已达1.2,现在他已不带眼镜。有空就按压明眼穴。工作离不开电脑的人更需要这个妙方!祝您健康!






这是项简单的按摩方法,当工作的休息时间,或是等车的空档,任何时间均可自行操作。眼睛疲劳往往不容易入睡的人,如果施予上述的 刺激来消除眼睛的疲劳,便可轻易入睡,以上的方法还可以抑制老人性的白内障。


Friday, May 22, 2009

Privasia Tech ... May 09

Privasia Technology Bhd, which is involved in information technology (IT) outsourcing and consulting in Malaysia, aims to extend its market reach to the telecommunications sector.

The company took over the listing status of Airocom Technology Bhd.

The restructuring of Airocom resulted in Privasia Technology becoming the investment holding company for Airocom and Privasia Sdn Bhd, together with their respective subsidiary companies.

The company had always been looking out to expand its outsourcing services beyond the IT scope, particularly into the telecommunications sector. With Airocom now part of the enlarged Privasia Group, they are now ready to venture into the rapidly-advancing field of telecommunications by offering its outsourcing services.

Thursday, May 21, 2009

Uzma Bhd ... May 09

The company currently had RM200 million worth of order books, which would keep the company busy until 2011. Local jobs contributed 75% of its total revenue in FY08, which was a 10 percentage point increase from FY07.

Its major clients include Petroliam Nasional Bhd’s unit Petronas Carigali Sdn Bhd and Talisman Malaysia Ltd, which collectively contribute some 50% of the group’s revenue currently. Its clients number 49 at present.

Uzma had just extended its three-year contract with Talisman for another three years. The previous contract was worth RM120 million. It was awarded more jobs from Petronas Carigali this year.

Uzma also has impending jobs in Mongolia. In September 2008, its subsidiiary Uzma Engineering Sdn Bhd acquired a 35% stake in Hong Kong’s Oriental Motors Co Ltd, which is the master project manager for the Baiyin Chagan, Inner Mongolia, petroleum block under a 14-year concession. Uzma’s initial invesment was RM4 million, which included the acquisition of the 35% stake in Oriental as well as in drilling services and reservoir studies.

For FY08, Uzma posted a net profit of RM10.78 million, which was a shortfall of RM3.48 million or 24.42% from its prospectus forecast made last year pursuant to its listing in July 2008. Its revenue, at RM135.83 million, was a shortfall of RM54.61 million or 28.67%.

The company attributed the shortfalls to the slowdown in exploration activities in the second half of 2008, which was due to the sharp fall of oil prices and the bleak global economic outlook.

Wednesday, May 20, 2009

TA/TA Global ... May 09

Its core business is in stockbroking, it also owns valuable property assets, including pockets of prime land, in town.

Its current market value of RM1.47 billion or RM1.03 per share, is priced at some 29% discount on the group’s NAV of rm2.06 billion as at Dec 31, 2008.

But the RNAV of the group could be higher. The fact is that TA had applied a revaluation surplus rm890 million on top of the existing NAV of its property business (Rm835 million) and valued the latter at about Rm1.73 billion.

The RM1.73 billion for the property business has yet to be reflected in TA’s balance sheet – it will be able when TA injects the property assets into TA Global for the latter to be listed on Bursa Malaysia.

Looking at it from another angle, TA has a strong balance sheet. Its current NAV of Rm2.06 billion is backed by net short term funds (less total borrowings) of about Rm648 million.

Ramunia/Sime Darby ... May 09

Lembaga Tabung Haji, the second largest shareholder of oil and gas player Ramunia Holdings Bhd, is in favour of Ramunia disposing of its fabrication assets and liabilities as a way to stave off financial distress. The fund is hoping that with the proceeds, the loss-making Ramunia can fare better by entering another business.

The Ramunia board of directors accepted Sime Darby Bhd’s offer to acquire Ramunia’s business and undertaking for RM232mil provisionally. The completion of the deal is subject to the agreement of the Ramunia shareholders, among other things.

Tabung Haji chief investment officer Md Noor A Rahman said that the fund saw no reason to reject the Sime Darby offer. The deal is good because it will solve a whole lot of problems for Ramunia. The problems included tight working capital, halted orders and high staff turnover, which largely stemmed from the global financial crisis and the scrapping of the proposed reverse takeover (RTO) of Ramunia by MISC Bhd.

On the fact that Ramunia would no longer have the yard if the Sime Darby deal went through, Ramunia would still have 20% of SDE. In addition, its debt burden would be lightened considerably.

It was unlikely that Ramunia would distribute the SDE shares to the Ramunia shareholders because SDE was not listed.

With the RM46mil cash, the management has to think of a new core business. It would be up to the Ramunia management to defend its new business direction when it seeks approval from the shareholders.

It may also be timely for Tabung Haji to seek board representation in Ramunia.

Should LTH Take The Offer …

It should not …

First and foremost, the fund is supposed to be in the business of investment and not in the business of running companies. From a purely investment standpoint, Ramunia will be stripped of its sole income generating asset – its 170 acre fabrication yard – and face uncertain prospects at best.

Without a core business, Ramunia is in danger of being delisted, and the value of the 20% stake in SDE will be largely depend on how well the latter can execute its O&G strategy.

LTH will continue to hold 30% Ramunia at the end of the day, but it will be holding on to a vessel that has been emptied of its contents, save for a 20% shareholding in SDE and Rm46 million cash.

Despite the prospects of SDE landing major deals in the near futures are bright, the margins are thin in the fabrication business – about 5% on average – and premised upon the cost of raw materials and efficiency in the execution of jobs. Which means, at the end of the day LTH would very much have to depend on the management skills of SDE to see returns from the 20% stake.

Furthermore, there is no indication what Ramunia intends to do with the RM46 million, nor is there any guarantee that the problems that presently plague the company will not continue.

A possible silver lining, however, is speculation that LTH will be given some board representation post disposal. At least then, the fund will have some say in Ramunia’s direction and the utilization of its RM46 million cash. The question is, does LTH want to have a say in the management of Ramunia?

A second consideration is whether the purchase by Sime Darby really represents good value for LTH. There is no doubt that the acquisition is good for Ramunia, which from all reports is in financial trouble.

LTH, however, as an investment fund – demand more value from the exchange. A more equitable deal would involve the exchange of Sime Darby shares rather than a stake in the uulisted SDE.

How well SDE performs would be reflected in the parent company, and LTH would not only reap the benefit, albeit on a smaller scale, but it will also have the security and flexibility of dealing wit tradeable shares.

The valuation of SDE is also, another consideration. At Rm186 million, the 20% stake in SDE is coming in a hefty premium of 36 times PER.

Understandably, Ramunia will not be distributing the shares in SDE to its shareholders. This means that LTH’s share of the pie from the 20% stake in SDE will depend on the dividends paid out by Ramunia, which, in turn, will be dependent on the dividends SDE pays.

Indirectly, LTH will take up a 6% ownership in SDE. Assuming SDE declares its entire earnings as dividends and Ramunia does the same, the SDE stake will not really mean much to LTH in terms of annual dividend contribution.

Putting it all together, LTH could see staring at an investment proposition that in time to come, will leave it no better off than where it is now.

Even a straight cash deal from Sime Darby would have been better. The cash could be utilised to buy shares in the undervalued Sime Darby.

LTH needs to exit Ramunia, but in doing so, it should get the best possible deal. In this case, that means getting its hands on some assets that can provide better and more certain returns than equity in SDE. The counter argument is that SDE shares are not publicly available whereas Sime Darby shares are. This then offers a unique entry point for Ramunia and LTH into SDE.

Assuming that SDE is listed in the future, Ramunia would be able to cash out. But then, it should be noted that LTH does not control Ramunia. Hence it does not determine the fate of the company.

A question lingers over Sime Darby’s mode of takeover. By taking the companies Act route, it is proposing to strip a troubled company of its business without taking it over entirely. Using this mode of takeover, Sime Darby only requires a simple majority of 51% to buy up the assets. A more equitable mode would be for it to adopt the Malaysian Code On Takeover and Mergers, where it would require 75% shareholder approval.

As it is now, an agreement by Ramunia’s two major shareholders – LTH and Datuk Azizul – would sew up the deal for Sime Darby.

As for LTH, Ramunia is becoming less of an investment by the day and the pilgrims fund should strive to reduce its holding as much as possible.

Another consideration is whether LTH has a choice. If this is Ramunia’s only hope of avoiding PN17 status, the point may be moot.

Tuesday, May 19, 2009

Scomi Marine ... May 09

Norwegian tycoon John Fredriksen’s Deep Sea Supply plc announced that it had acquired a 5.5% stake in Singapore listed CH offshore Ltd, in a deal done on an opportunistic basis.

This piece of news could have far reaching consequences for CH Offshore. The company’s two largest shareholders are Scomi Marine Bhd, which has a 29.1% equity interest, and Singapore based Chuan Hup Holdings Ltd, which has 25%. Many speculate that this acquisition could be the precursor to Deep Sea Supply mopping up shares in the company, which could work out well for Scomi Marin.

It is no secret that Scomi Marine has been looking to hive off its stake in CH Offshore for sometime now. But Deep Sea Supply’s 5% stake did not come from Scomi Marine. The company has not disposed of any of its shareholding in CH Offshore.
Judging from the deep pockets of the Fredriksen-backed Deep Sea Supply the company is likely to strengthen its position in CH Offshore and take up a meaningful stake.

Fredirksen’s daughter Kathrine was appointed to the board of Deep Sea Supply recently.

So will Fredriksen buy more shares in CH Offshore via Deep Sea Supply? Why would he buy a 5% stake and leave it at that? He has the means to increase his shareholding and there is willing seller in the form of Scomi Mairne. It is rumoured that even Chuan Hup Holdings Is looking to divest its stake, which should suit Fredirksen, based on his past track record.

Scomi’s entry cost is said too be RM1.15 per share in an intricate corporate exercise. Scomi ended up with 29.1% of CH Offshore while Chuan Hup had 25%.

Fredirksen could be looking to merge Deep Sea Supply with CH Offshore as both companies are involved in similar segments in the offshore oil and gas business.

Monday, May 18, 2009

PiCorp ... May 09

Progressive Impact Corporation Bhd (Picorp), a specialist in the environmental industry, expects to generate at least 50% of its revenue from international operations in two years’ time. Currently, about 20% of its business came from abroad.

Saudi Arabia and Sudan would account for a large part of the additional revenue going forward.

In July 2009, Picorp’s waste management division would begin work on the first phase of a sewerage system in Sudan worth about US$59.5 million (RM209.44 million) which would cater for about 800,000 Khartoum residents. The first phase of the project would be completed in two years and the entire project, comprising six phases and worth a total of US$144.5 million, was expected to be completed in 2013. Picorp had signed a contract with Sudan’s ministry of infrastructure for the project and all transactions would be in US dollars, which would eliminate currency risks.

On the company’s market expansion, Picorp hoped to secure long-term sewerage and enviromental business in Indonesia this year. The projects will be mainly in Jakarta but may spread to Kalimantan and neighbouring areas.

On Picorp’s 30.2%-owned PJ Bumi Bhd, the company was seeing an improvement in its fortunes and had RM12.5 million worth of orders in its book for the year to date. In 2008, its revenues totalled RM17 million.

Financial Results … Picorp posted a net profit of RM15.63 million on the back of RM71.44 million revenue for its fiscal year ended Dec 31, 2008.

IJM Land/IJM Corp ... May 09

Sources say the EPF and PNB are poised to emerge as shareholders in IJM Land Bhd via a placement of shares undertaken by the latter’s parent IJM Corp Bhd. The placement is said to be priced at less than Rm1.30 a share.

It is learnt that IJM Corp is undertaking the private placement of up to 200 million shares, or about 18%, in IJM Land. The construction giant aims to pare down its current equity of 76.54% in its property arm to about 58% to 60%.

The exercise is expected to be finalised soon. Besides EPF and PNB, other local and foreign funds will take up a smaller portion of the shares in IJM’s property development arm.

EPF is already an indirect substantial shareholder in IJM Land via its 20.64% stake in IJM corp.

The placement of shares to EPF and PNB will further institutionalize the shareholding structure of IJM Land and enhance the ratings and the tradability of the stock, which is now (May 2009) tightly held by IJM Corp and GSIC.
The current free float of IJM Land’s shares is less than 16% or 180 million shares. Other than IJM Corp’s 76.54% stake, GSIC holds about 7.44% stake in IJM Land.

*** IJM Land, in its current form, is a result of the injection by IJM Corp of its property assets and development projects into RB Land Holdings through asset rationalization exercise in the middle of 2008. RB Land had shareholders’ funds of RM693 million before it absorbed IJM Corp’s property assets. Following the exercise, the company’s book value gas since increased to RM1.52 billion as at Dec 31, 2008.

IJM Land was at that time already a subsidiary of IJM Corp following the merger between IJM Corp and RB Land’s parent, Road Builder Holdings Bhd in 2007.

About IJM Land …
It posted a net profit of RM24.43 million for the nine months ended Dec 31, 2008.

IJM Land will soon embarks on its flagship waterfront development project in Penang called The Light. The project is located on a 61.5ha site, just off the Penang Bridge, on the eastern of Penang Island. It will be developed in three phases over 12 years, with an estimated total GDV of RM5.2 billion.

IJM Land Bhd ... May 09
IJM ... Oct 2008
ICP/IJM ... Sept 2008

Saturday, May 16, 2009


Petai contains three natural sugars -sucrose, fructose and glucose. Combined with fiber, petai gives an instant, sustained and substantial boost of energy. Research has proved that just two servings of petai provide enough energy for a strenuous 90-minute wor kout. No wonder petai is the number one fruit with the world's leading athletes. But energy isn't the only way petai can help us keep fit. It can also help overcome or prevent a substantial number of illnesses and conditions, making it a must to add to our daily diet.

According to a recent survey undertaken by MIND among people suffering from depression, many felt much better after eating petai. This is because petai contain tryptophan, a type of protein that the body converts into serotonin, known to make you relax, improve your mood and generally make you feel happier.

PMS(premenstrual syndrome):
Forget the pills - eat petai. The vitamin B6 it contains regulates blood glucose levels, which can affect your mood.

High in iron, petai can stimulate the production of haemoglobin in the blood and so helps in cases of anaemia.

Blood Pressure:
This unique tropical fruit is extremely high in potassium yet low in salt, making it perfect to beat blood pressure. So much so, the US Food and Drug Administration has just allowed the petai industry to make official claims for the fruit's ability to reduce the risk of blood pressure and stroke.

Brain Power :
200 students at a Twickenham (Middlesex) school were helped through their exams this year by eating petai at breakfast, break, and lunch in a bid to boost their brain power. Research has shown that the potassium-packed fruit can assist learning by making pupils more alert. Understand that bananas contain lot of potassium too so eat more banana. Just look at those monkeys, they are really active, alert, smart and cunny too!!

High in fiber, including petai in the diet can help restore normal bowel action, helping to overcome the problem without resorting to laxatives.

One of the quickest ways of curing a hangover is to make a petai milkshake, sweetened with honey. The petai calms the stomach and, with the help of the honey, builds up depleted blood sugar levels, while the milk soothes and re-hydrates your system.

Petai has a natural antacid effect in the body, so if you suffer from heartburn, try eating petai for soothing relief.

Morning Sickness :
Snacking on petai between meals helps to keep blood sugar levels up and avoid morning sickness.

Mosquito bites :
Before reaching for the insect bite cream, try rubbing the affected area with the inside of the petai skin. Many people find it amazingly successful at reducing swelling and irritation.

Petai is high in B vitamins that help calm the nervous system.

Studies at the Institute of Psychology in Austria found pressure at work leads to gorging on comfort food like chocolate and crisps. Looking at 5,000 hospital patients, researchers found the most obese were more likely to be in high-pressure jobs. The report concluded that, to avoid panic-induced food cravings, we need to control our blood sugar levels by snacking on high carbohydrate foods every two hours to keep levels steady.

Petai is used as the dietary food against intestinal disorders because of its soft texture and smoothness. It is the only raw fruit that can be eaten without distress in over-chronicler cases. It also neutralizes over-acidity and reduces irritation by coating the lining of the stomach.

Temperature control :
Many other cultures see petai as a 'cooling' fruit that can lower both the physical and emotional temperature of expectant mothers. In Holland , for example, pregnant women eat petai to ensure their baby is born with a cool temperature.

Seasonal Affecti ve Disorder (SAD) :
Petai can help SAD sufferers because they contain the natural mood enhancer, tryptophan.

Petai can also help people trying to give up smoking. The B6, B12 they contain, as well as the potassium and magnesium found in them, help the body recover from the effects of nicotine withdrawal.

Potassium is a vital mineral, which helps normalize the heartbeat, sends oxygen to the brain and regulates your body's water balance. When we are stressed, our metabolic rate rises, thereby reducing our potassium levels. These can be rebalanced with the help of a high-potassium petai snack.

According to research in 'The New Engla nd Journal of Medicine, ' eating petai as part of a regular diet can cut the risk of death by strokes by as much as 40%'.

Those keen on natural alternatives swear that if you want to kill off a wart, take a piece of petai and place it on the wart. Carefully hold the petai in place with a plaster or surgical tape!

So, as you can see, petai really is a natural remedy for many ills. When you compare it to an apple, it has four times the protein, twice the carbohydrates, three times the phosphorus, five times the vitamin A and iron, and twice the other vitamins and minerals.. It is also rich in potassium and is one of the best value foods around. So maybe its time to change that well-known phrase so that we say, 'A Petai a day keeps the doctor away'.

Friday, May 15, 2009

Maybulk ... May 09

MALAYSIAN BULK CARRIERS (MAYBULK) expects to remain profitable for 2009 despite poor prospects for the shipping industry due to slower global trade and lower charter rates.

" .... The shipping prospects are very poor. But I hope we won't be at a loss. I don't think we will be at a loss. We should be able to make a profit because our cost is low ...." said MAYBULK Executive Chairman - TEO JOO KIM to the press after its AGM on Apr 22, 2009.

CEO - KUOK KHOON KUAN added that the current market was difficult with new building of ships and contracts being cancelled, old ships scrapped and cargoes deferred adding that the slow global trade and difficulty in getting loans added to the gloomy shipping landscape. " .... We, as a part of the service sector, don't have cargo to ship because people couldn't get loans to ship. Furthermore, the tanker and the dry bulk markets are oversupplied ...." he said. He further said that " .... Right now, it would be better if you have contracts at the old prices. But then, you will have a lot of problems with renegotiations. A lot of other shipping companies had beautiful contracts but their clients went bankrupt and so they can go bankrupt as well .... We expected problems. This was why we started selling ships a few years ago (when rates were high). When we sold the ships, that was equivalent to three years of high charter rates ...." KUOK said.

The Baltic Dry Index (BDI) began 2008 at 8,891 points and peaked at 11,793 points in May. The BDI collapsed to 663 points last Dec 2008.

" .... I don't think it will come down to as low as last year's (2008). Now it is at 1,700, it is barely comfortable because our cost is low. The BDI will likely fluctuate between the low of 1,000 and 2,000 for this year (2009). But don't expect the market to shoot up ...." TEO said.

The Company sold two bulk carriers, a tanker and an accommodation vessel last year (2008).

As at Dec 31, 2008, MAYBULK's Cash Balance was RM805.6m. For FY08, the Company registered a Net Profit of RM521.7m, 9.7% lower than the RM577.8m posted in FY07. Revenue, however, rose 18.6% to RM721.2m.

TEO also said its investment in PACC OFFSHORE SERVICCES HOLDINGS pl (POSH) was bearing fruits. " .... POSH continues to be profitable and hopefully the offshore market will stay reasonably good at this level. Then we should do quite well. So far, for the first quarter, POSH has been okay. The diversification of cash into POSH so far, is better than staying in dry bulk ...." TEO said.

MAYBULK is also looking at acquisitions during these times as the second-hand vessels market has dropped by some 60% to 70% from its peak.

" .... If anything, we are looking at buying vessels rather than disposing of them. There are opportunities at this point in time to buy ships because they will be very cheap. But we have to manage expansion and opportunities in today's market with shareholders' expectation on dividends ...." KUOK said.

TEO explained that his recent disposal of shares in the Company was merely motivated by investment needs and not a sign of him exiting the Company. " .... The move was to re-profile my investment portfolio. I have no more shares in the Company. But in this market, with the current economic situation, cash is more important. I am not leaving the company .... If the market and economy start to grow again, then it is the time to reinvest ...." he said, adding he may buy back shares then. (Ed's notes - quite some confidence boosting).

LBS Bina ... May 09

The land was strategically located in Puchong and would be well connected via the LDP and accessible from the Elite Expressway linked by the Cloverleaf Interchange-Putrajaya in the near future.

LBS Bina Group Bhd is also teaming up with Astana Modal (M) Sdn Bhd (AMMSB) to carry out a mixed property development project worth RM1 billion in Sepang, Selangor on about 175 acres (70ha) of land. The project will comprise a total of about 1,100 units of bungalows, semi-detached houses, superlink houses, luxury condos and commercial units.

LBS and AMMSB will share the development profit in the ratio 70:30.

The project was expected to generate RM1 billion in revenue over the next five years, and contribute positively to its profitability.

Financial Results …

For the year ended Dec 31, 2008, LBS posted a net profit of RM15.42 million on the back of RM266.44 million revenue. Earnings per share was four sen.

The new development, which brings the group's existing land bank to about 2,700 acres, would place the group in a good position to sustain its growth and profitability.

Thursday, May 14, 2009

Transmile ... May 09

TRANSMILE GROUP recorded slightly lower losses for 1QE Mar 2009 with a Net Loss of RM43.8m, compared with Net Losses of RM47.8m a year earlier and RM26m in 4Q08.

Revenue fell 70% to RM35.5m from RM119.4m a year earlier. The lower revenue was mainly due to lower flight hours as a consequence of the cessation of the unprofitable routes flown by the MD11 aircraft since the end of Mar 2008 said the Company inn EXCHANGE filing on Apr 23, 2009 which also resulted in lower losses in 1QE Mar 2009.

" .... Included in the loss for the quarter under review is an unrealised forex loss of RM20.4m on USD loans which were recognised following changes in the functional currency for accounting purposes ...." said the filing.

Without the Unrealised Forex Loss, the Group's Net Loss would be at about RM23.4m.

The company also explained that Depreciation and other costs relating to the wide-body aircraft amounted to RM14.2m for 1QE Mar 2009.

The Company also said that " .... The narrow-body operations and other ancillary services provided are profitable and the Group is constantly looking for new business opportunities to enhance its revenue stream and improve profitability ...." adding that it was also looking at ways to reduce operating cost and improving productivity.

TRANSMILE also said that it was exploring new businesses with existing and potential clients. The Company was also looking at new regional routes.

In the Company's EXCHANGE filing, Short-Term Borrowings were high at RM592.9m as at Mar 31, 2009.

The Company in the aftermath of its accounting crisis had announced plans to sell at least one unit of its four MD-11 wide-bodied aircraft by end of 2008. This has not occurred.

The disposal of its four MD11 aircraft estimated to be worth RM590m in Aug 2008 was part of the Carrier's plan to repay its large borrowings and defaulted repayments. Aviation analysts said that prices of aircraft had dropped since then.

TH Plantations Bhd ... May 09

TH Plantations Bhd, the pilgrim fund Lembaga Tabung Haji’s (LTH) listed arm, said 2009 would be a good year for the company if crude palm oil (CPO) prices stabilise at the current level.

One of the biggest cost considerations for the company was the price of fertiliser, which skyrocketed in tandem with the price of commodities last year (2008). The single largest contributor to our costs is fertiliser.

TH Plantations could still remain profitable should CPO prices suddenly drop again as it would be able to temporarily reduce its cost of production below the RM1,000 mark should the need arise.

TH Plantations manages LTH’s palm estates in Indonesia and its teak and rubber estates in Sabah.

TH Plantations received RM21.4 million from LTH in management fees for 2008, around RM17 million of which was from the latter’s estates in Indonesia. This was up from RM18.7 million in 2007.

LTH owns about 82,000ha of contiguous palm estate land in Indonesia, of which 70,000ha has been planted.

Financial Results …

TH Plantations’ revenue for 2008 came in at RM243.4 million, up 39% from RM175.6 million in 2007. Net profit was up 37% to RM84.1 million from RM61.2 million.

Part of its cash flow was bolstered by the management fee it received from its parent company.

Wednesday, May 13, 2009

HSL ... May 09

The Sarawak-based marine engineering specialist with RM1.7 billion worth of projects in hand, is eyeing opportunities from the recently announced economic stimulus package for 2009-2010 and the implementation of the Sarawak Corridor for Renewable Energy (Score).

HSL currently has RM1.7 billion worth of projects, including RM905 million secured in 2008, with the RM452 milion contract for the first phase of a comprehensive centralised sewage system for Kuching city notable among the new projects.

The HSL group posted revenue of RM309.07 million in 2008, up 25 per cent from RM248.17 million in 2007. Its profit before tax rose to RM56.46 million in 2008 from RM53.7 million previously.

Yikon Corp ... May 09

Yikon Corporation Bhd's subsidiary Yikon Jewellery Industry Sdn Bhd is selling a parcel of leasehold land in the Bayan Lepas industrial estate, Penang — together with the building — to Northern Corridor Implementation Authority (NCIA) for RM10.5 million cash.

NCIA is the authority responsible for the implementation of strategic socio-economic development in the Northern Corridor Economic Region (NCER).

The lease is for 60 years to Oct 31, 2053, with provisional land area of about 6,173 sq metres (66,446 sq feet), with a three-storey detached factory cum one-storey office building.

The net book values of the land, building and fixed assets as at Dec 31, 2008, were RM2.08 million, RM6.27 million and RM1.17 million respectively.

The proposed disposal was in line with its objective of unlocking the value of those assets currently not used in its core business and to generate cash flow for repayment of bank borrowings and working capital.

Based on its consolidated audited accounts for the 14 months ended Dec 31, 2008, and on the assumption that the disposal had been effected and completed on that date, it would have given rise to a net gain of about RM757,255 after taking into account estimated expenses of RM220,000. The group's net assets would rise from RM22.87 million to RM23.63 million.

Tuesday, May 12, 2009

Kencana ... May 09

It is expected to win two contracts worth RM110 million collectively, from oil majors to fabricate offshore structures for projects in offshore Sarawak. It is learnt that the contracts will be awarded by Murphy Oil and Petronas Carigali within the next two weeks.

Kencana, which has an order book in excess of RM1 billion, is expected to build the offshore structures over seven and nine months. They will be fabricated at the company's 27.14ha fabrication yard in Lumut Industrial Park, Perak.

Kencana will commence work on the first contract worth around RM70 million this month (May 2009). The company is fine-tuning the figures for the second contract, which may be worth about RM40 million.

For the year-ended July 31 2008, Kencana's net profit jumped 53 per cent to RM85.1 million while revenue surged 76 per cent to RM1.45 billion. The company is aiming to maintain its RM1 billion annual turnover despite low crude oil prices.

The bulk of Kencana's current order book is made up of Petronas projects.

CHHB ... May 09

It is seeking its bondholders consent to transfer properties equivalent to RM16.23 million in value in lieu of payment of interest.

It had sought deferment of interest payment for the RM150 million 3% to 8% redeemable secured bonds 1996/2009. The interest payment for bonds amounted to RM16.23 million would be due on May 6 2009.

CHHB, via the trustee - Universal Trustee (Malaysia) Bhd – had sought the indulgence of the end beneficiaries of the bonds, CIMB Bank Bhd and United Overseas Bank (Malaysia) Bhd for the interest payment to be deferred until Dec 31, 2009.

Alternatively, the trustee is also seeking their consents for the payment of interest to be made otherwise than in cash, by way of transfer of properties equivalent to a value of RM16.23 million.

CHHB was awaiting the beneficiaries’ written replies.

The interest payments of the bonds are payable semi-annually in May and November each year. Since the bonds were issued on April 26, 1996, the company had paid interest totaling RM118.5 million.

Monday, May 11, 2009

IJM Land Bhd ... May 09

IJM Land Bhd should see a boost in income with the launch of its flagship project, The Light Waterfront Penang, in the third quarter 2009.
The project has an estimated gross development value (GDV) of RM5.2bil. It has been scheduled for launch in the first quarter 2009 but was deferred when the property market softened under the pressure of the global recession
Located on 61.5ha just off the Penang Bridge on the eastern coastline of Penang island, it will be developed in three phases over 12 years.

For the project’s construction, IJM Land will leverage on its parent IJM Corp Bhd’s construction expertise.

IJM Corp is a contractor for several high-end condominium projects in the Kuala Lumpur City Centre (KLCC) area such as The Binjai and Commerce Asset’s headquarters in Jalan Raja Laut.

IJM Land had the attributes of a blue-chip proxy to the listed property sector. This is given the potential enlargement of its market capitalisation and gradual improvement in its free float from future placements by parent IJM Corp.

IJM Corp plans to gradually trim its holding in the property vehicle to 60% from the current 77% to promote greater institutional shareholding. The move would promote greater trading liquidity in IJM Land’s shares.

Also planned for launch in the third quarter 2009 is the Nusa Duta development on 127 acres in Iskandar Malaysia, Johor. The RM320mil project will comprise mainly landed properties priced from RM300,000.

MRCB/UEM Land ... May 09

With the government’s Financial Guarantee Institution (FGI) expected to be launched in the middle of May 2009, speculation is rife as to which companies could utilize the initiative to issue debt papers amid the lackluster corporate bond environment.

Under the RM60 billion second stimulus package announced in Nov 2008, the government had tasked BNM with setting up the FGI, which would provide credit enhancement to companies intending to raise funds from the bond market. PM & Finance Minister Datuk Seri Najib had said RM15 billion worth of bonds is expected to be raised under the facility.

Najib had also acknowledged that issuers with less than AAA- rating were finding it difficult to enter the market, due to investors’ warning risk appetite. This was as a result of the economic slowdown, which sparked off a flight to safe to mentality with regard to demand for bonds.

Even until now (May 2009), it is difficult for investment bankers to market papers rated anything less than AAA. Investors are extremely cautious about companies’ ability to pay back bonds. They are even very selective about AA-rating issuers.

While industry observers do not go so far as saying that there is a credit freeze, they do agree that FGI could help heat up the bond market. Government linked companies with infra projects are said to be waiting, especially those that are benefiting from development spending under the 9MP or the stimulus package.

Another set of companies likely to take up the government guarantee are existing borrowers of the debt market with a low A credit rating.

MRCB could be one of the companies to take up the facility. The company has a coupled of projects in hand and could do with some cheap financing. It may want to take advantage of a government guarantee to issue papers to finance these projects, or even refinance existing debt. The company had in June 2008 issued a Rm845 million facility was rated AA3 and the RM199 million facility rated A2 by RAM Ratings.

MRCB’s current projects consist mainly of the development of properties in KL Sentral, while it will also undertake the development of the RM2 billion Penang Sentral transport and logistics hub project.

As at end 2008, the company has RM196 million in cash and has a long term borrowings stood at RM1.06 billion as at Dec 31, 2008.

UEM Builders (A subsidiary of UEM Land) could be another company to take up a guarantee from the FGI because of its contract to build the second Penang bridge.

The company’s unit , Penang Bridge Sdn Bhd had issued a five year al-bai’ bithaman ajil facility maturing in Aug 2013. The facility, amounting to Rm785 million, has an interest of between 6.85% and 8.5% and was rated AA2 by RAM.

Given the company’s ongoing works on the Penang Bridge, and the upcoming Second bridge project which is projected to cost RM4.3 billion, the company may want to take advantage of the FGI to issue bonds.

Sunday, May 10, 2009

Saturday, May 9, 2009











Friday, May 8, 2009

NTPM ... May 09

It plans to manufacture stationery from production waste at its facility later this year (2009). The products would include arch files and other office paper. However, the group was not diversifying from its core business.

The yare merely expanding the range of its products from the tissue paper segment. Manufacturing stationery items allows them to tap into its existing paper-making machinery, which is used to make tissue paper.

It will also be able to tap our existing marketing and distribution networks for the stationery products. Since the company would be using its existing facilities to produce the stationery items, the investment would be small.

The group saw potential in recycled products, as consumers realised the need to preserve a green environment. However, does not expect the stationery items to have an impact on the group’s revenue in the next few years. It hopes to grow the stationery business over five years into its third core product line, after tissue and personal-care items.

NTPM had recently bought an RM8mil machine to manufacture its own diapers. At present, it outsources the manufacturing work (for diapers). They have decided to make our own diapers because of the growing demand.

For the nine months ended Jan 31, the group posted after-tax profit of RM31mil on revenue of RM263mil, compared with RM25mil and RM232mil respectively in the previous corresponding period.

Thursday, May 7, 2009

TENAGA ... May 09


TENAGA NASIONAL at its Apr 14, 2008 2QE Feb 2009 press briefing was asked if it would ask the new Minister of Energy - PETER CHIN KAH FUI to re-open renegotiations with the independent power producers on their power purchase agreements, the UTILITY replied that it will allow time for the Minister to settle down.

On whether electricity tariffs would be revised come Jul 2009 when the matter came up for review, CHE KHALIB said it would depend on the situation.

" .... It would not necessarily mean a hike, it could go up or down. In the end, however, it will be up to the Government whether to review the gas price or change its assumptions concerning the coal price ...." said CHE KHALIB.

On the Bakun project, comprising a 2,400MW hydroelectric dam and undersea cables, CHE KHALIB reiterated that it would be one of the matters that would be brought up with the minister.

" .... From what I understand, the dam is just about to be completed. As for the progress concerning the cables, you must keep in mind that we have a new minister now and he may have a different opinion and view on things ...." he said.

The Government announced Apr 24, 2009 that the Cabinet had approved the undersea cables linking Sarawak to Johore.

Asked about the situation in Sabah, where the state was currently undergoing a shortage in electricity supply, CHE KHALIB said TENAGA was talking to the State Government.

" .... There is this issue concerning the east coast of Sabah, which is in desperate need of power. If it is not resolved within the next two to three years, that area will face a severe power shortage problem ...." said CHE KHALIB.

There had been plans to build a 300MW coal-fired power plant in Lahad Datu, Sabah in 2008. However, the project was scrapped due to environmental concerns.

KSeng Bhd ... May 2009

Keck Seng (M) Bhd’s indirect subsidiary KSD Enterprises Ltd is disposing of its hotel in Quebec, Canada, named Four Points by Sheraton Hotel & Conference Centre, to 4977 NWT Ltd for C$13 million (RM39.14 million) cash.

KSD intends to use the sale proceeds to repay the bank loan that is secured against the hotel, as well as for other better investments in the event such investment opportunities become available.

Pre-tax profit from the sale was estimated at C$5.75 million. After the deduction of Canadian capital gains tax of C$1.2 million, the after-tax profit arising from the sale was about C$4.54 million or RM13.67 million.

The nine-storey, 201-room hotel was acquired in January 2000 for C$10.85 million. The 24-year-old hotel sits on freehold land measuring 7,122 square metres and has a built-up area of 13,777 sq m. The hotel had a net book value of C$7.25 million as at Dec 31, 2008.

KSD Enterprises is a wholly owned subsidiary of KSF Enterprises Sdn Bhd, which is in turn 50.01%-owned by Keck Seng. KSD’s principal business is the operation of hotels and conference centres.

Wednesday, May 6, 2009


TANJONG PLC which reported weaker earnings for FYE Jan 2009 has underlying fundamentals and business intact.

ONE-OFF WINDFALL TAX & WRITE-OFFS The 80.4% and 16.4% declines in Net Profit for 4Q-FY09 were due to various one-off items such as the Windfall Tax imposed in 2008 when when crude oil prices hit an all-time high. The tax, originally an annual levy intended to help defray the rising costs of generating electricity, was eventually turned into a one-off payment.

TANJONG paid RM85m in total Windfall Taxes in FY09. This resulted in sharply lower earnings for its local power assets, which also took into account another RM84m or so in Development Costs Writeoff and major overhaul expenses. Earnings should normalise in the current financial year, barring further extraordinary provisions.

Net Profit should recover sharply in FY10. INSIDER ASIA estimates Net Profit at RM634.9m, up from RM463.8m in FY09, or equivalent to about 157.4 sen per share.

TANJONG kept Total Dividends unchanged at 90 sen per share in FY09 despite the drop in profits. Interim Dividend of 17.5 sen per share will trade ex on Apr 22, 2009 and Final Dividend of 20 sen per share trades ex on Jul 29, 2009. INSIDERASAI expects dividends to grow to about RM1 per share in the current financial year in line with the more robust profits. This will translate into a higher-than-market average yield of 7% at the current share price.

Power will remain the Company's largest earnings generator and main growth driver. TANJONG is continuously on the lookout to acquire new power assets, both greenfield and brownfield projects, locally and overseas.

The Company has expanded capacity in the region, raising its effective capacity from 1,490MW to 3,951MW over the past four years. TANJONG is now one of the biggest independent power producers (IPPs) in the region with strong presence in Egypt and Bangladesh. Any new acquisition will result in a steep increase in earnings, which are sustainable throughout the duration of the power purchase agreement that usually ranges from 15 to 20 years.

All of its power-generating plants have long-term power purchase agreements - including fuel cost pass-through provisions - with the various state utility companies. In other words, the power earnings are predictable, steady and carry relatively low risks.

Similarly, the numbers forecast totalisator (NFO) business is also relatively recession-proof. Despite the fewer number of draws - 161 compared to 167 in FY08 - earnings before interest and tax were marginally higher in FY09, thanks to higher sales per draw as well as lower prize payout.

Sales per draw grew by an average of about 1.9% in FY09 - and are estimated to rise by another 1.5% in the current financial year. Although earnings could still be affected by the luck factor, overall profitability should remain fairly steady over time.

TANJONG's property arm is another low-risk business, its earnings consisting primarily of rental incomes from Menara Maxis, a 49-storey prime office building in KLCC. The building is fully occupied, with about two-thirds of the floor space rented to TANJONG and its affiliated companies. Menara Maxis was recently revalued at RM650m - the revaluation gains of about RM100m were recognised in TANJONG's FY09 results.

INSIDERASIA expects the 'Tropical Islands' resort business in Germinay to improve, going forward. The resort achieved positive EBITDA (earnings before interest, tax and depreciation) in FY09. TANJONG is looking to widen its onsite accommodation facilities, though multiple joint ventures, to further enhance its appeal as a longer duration holiday destination. Currently, most of its visitors are day-trippers from surrounding areas.

RedTone ... May 09

Off-market deals involving 13.9% of REDtone International Bhd’s paid-up capital, marked the Kuok group’s exit from the Mesdaq company and the emergence of REDtone group chief executive officer Zainal Amanshah Zainal Arshad as its largest shareholder.
By buying out the Kuok group for RM11.8mil, or 22 sen per share, Zainal Amanshah’s stake in the provider of communications services has ballooned from just 0.7% to 14.7%. Most of the shares are held via Pusaka Indah Bhd, a company in which he is the main shareholder. Two other individuals are his partners in Pusaka Indah.

One factor driving the shareholding change is the fact that REDtone has yet to meet the 30% bumiputra equity condition imposed by the Securities Commission. The deadline to comply with this was June 18, 2007, and prior to the purchase by Pusaka Indah, the bumiputra shareholding was about 10%. There had been a lot of pressure to address the shortfall.

Last year (2008), REDtone had proposed a special issue of new shares to bumiputra investors, including Zainal Amanshah, to reach the 30% target. This may no longer be necessary. The special issue has not happened but it’s still an option. They decided it was better to buy from existing shareholders because it would be less dilutive. It was on a willing-seller willing-buyer basis.

The funding is a private equity funding with a local financial institution.

He did not rule out the possibility of increasing his shareholding in REDtone if the authorities insisted on the 30% bumiputra equity requirement. If the funds are available, he would like to raise his stake. There would be no change in the company’s leadership. He joined the REDtone family in 2000 as an executive director of REDtone Telecommunications Sdn Bhd.

REDtone’s next biggest shareholder is Tan Sri Vincent Tan, who has an 11.7% stake through several companies in the Berjaya group. It is, therefore, interesting that Pusaka Indah and the Berjaya companies have the same registered address. However, Zainal Amanshah said the companies merely used the same secretarial services firm and Pusaka Indah was not linked to the Berjaya group.

As REDtone group CEO, Zainal Amanshah is primarily responsible for the company’s business in Malaysia. Managing director and co-founder Wei Chuan Beng oversees the group’s overall business, its expansion abroad and financial matters.

The Kuok group was already a substantial shareholder when REDtone was listed in January 2004. The group’s REDtone shares were largely in the hands of PPB Group Bhd and Kuok Brothers Sdn Bhd.

The investment looked good in the two years or so after the stock market debut, but the company’s core activity, discounted call business, suffered amid intense competition. It diversified into other businesses and markets, but some ventures have not paid off so far.

Financial Results … For the financial year ended May 31, 2008 (FY08), the company reported a net loss of RM7mil. Yesterday, the company announced a net loss of RM1.9mil for the third quarter ended Feb 28 2009.

For the first three quarters of FY09, REDtone incurred a net loss of almost RM3mil on revenue of RM60.8mil. In the previous corresponding period, revenue was RM93.6mil and net profit was RM7.7mil.

Tuesday, May 5, 2009

PUBLIC BANK ... May 2009


PUBLIC BANK's Net Profit for 1QE Mar 31, 2009 was RM589.2m compared with RM717.3m a year ago which had then included Goodwill Payment of RM200m.

PUBLIC BANK Group Chairman - DR TEH HONG PIOW said on Apr 14, 2009 that the one-time Goodwill payment was for PUBLIC BANK's bancassurance distribution alliance with ING Asia/Pacific ltd.

" .... Excluding the one-time Goodwill payment in the previous corresponding quarter, the Group's underlying Operating Net Profit improved by 3% over the same period in 2008 ,,,," he said.

He said taht the Group's results translated into an Annualised Net ROE of 25.5% and EPS of 17.4 sen for 1QE Mar 2009.

TEH said that the better earnings were despite the squeeze in Net Interest Margin arising from the three consecutive reductions in Overnight Policy Rate between Nov 2008 and Feb 2009.

" .... Loan growth remained strong at 4% in the first quarter of 2009, whilst the Group's strong asset quality was sustained and Net NPL Ratio continued to be capped at below 1% ...." he added.

MBSB ... May 09

It has secured a RM500 million facility as alternative funding that will allow it to expand its business.

From next year, they are targetting a more aggressive business plan by increasing its retail market penetration as well as its corporate business.

MBSB signed an agreement with issuer Cagamas Bhd and three local banks on the securitisation of mortgages assets for the RM500 million facility. The five-year tenure facility is structured under an asset-based securitisation by way of purchase with recourse with a back-to-back arrangement through Maybank, Affin Bank and EON Bank. Maybank has committed a sum of RM250 million, Affin RM150 million and EON RM100 million.

MBSB will be able to tap the low interest rate Cagamas funds while the lenders' credit risk is mitigated via the recourse term embedded in the facility.

They are looking at putting in place plans for personal financing relating to government servants. Also, it will focus on its two other core activities which include the mortgage and corporate businesses.

Monday, May 4, 2009

Sino Hua-An ... May 09

The recovery in the demand for steel in China may benefit Sino Hua-An, which produces metallurgical coke in China. Sino Hua-An is the only Chinese company listed in Bursa. Its direct exposure to China’s steel industry will benefit from the infrastructure boom under the Chinese government’s rm2 trillion, two year stimulus programme.

The company is principally involved in the production of metallurgical coke and its by product such as tar, crude benzene, ammonium sulphate and coal gas. MMetallurgical coke, made from low sulphur bituminous coal, is a critical raw material used as an energy source for the smelting of iron ore in the manufacturing of steel.

It recently upgraded its plant and equipment to comply with China’s ongoing efforts to curb pollution, will meet any demand uptick.

China’s mammoth stimulus package has been the main catalysts for steel millers to resume operations and start replenishing their depleted inventory. AS the stimulus package would revive construction activities, steel demand may surprise on the upside, thus directly benefiting coke producers.

It is currently in a net cash position, with a cash reserve of RM28 million as at Dec 31, 2008, and has no debts. Meanwhile, its management indicated that there will be no major capital expenditure over the new few years. Thus, there is a possibility that the company may distribute more surplus cash as dividends going forward.

However, some of the key risk for Sino Hua-An. For instances, an increase in china’s export tariff for the steel will hurt steel production and hence, demand for coke. Meanwhile, a higher that expected coal price will erode coke producers’ margins.

Sino Hua-An Int Bhd ... Jan 2009
Sino Hua-An
HuaAn .. July 2008

Kenanga/ECM ... May 09

The government has relaxed the foreign equity conditions for investment banks and insurers in Malaysia.

The standalone IBs in Malaysia are ECM and Kenanga. At present, the IBs are allowed 49% foreign shareholdings. But to date, there have been no takers. With the liberalization of the financial sector allowing foreign equity of 70% in IBs, will there be any takers?

However, if they are offers, not all shareholders of IBs would sell. Among the IBs, OSK, Hwang DBS have strong balance sheet and can hold their own. MIDF was owned was taken private by PNB.

This leaves only ECM and Kenanga.

ECM major shareholders are Equty Vision Sdn Bhd with a 15.64% stake, Lim Kian Onn (9.34%) and Hikkaya Jayas Sdn Bhd (5.94%).

In Kenanga, CMS Capital Sdn Bhd is the largest shareholder with a 25.07% stake, followed by Deutsche Asia Pacific Holdings Pte Ltd (16.55%), Syed Yusof (8.17%) and Tengku Noor (7.17%).

ECM and Kenanga are the best possible turnaround plays with the changes in the industry. This is despite their weaker performance when compared to OSK.

Sunday, May 3, 2009












Saturday, May 2, 2009












Friday, May 1, 2009