Sunday, August 30, 2009

Saturday, August 29, 2009

A bear, a lion and a pig

A bear, a lion and a pig meet.

Bear says: "if I roar in the forest, the entire forest is shivering with fear."

Lion says: "if I roar in the jungle, the entire jungle is afraid of me."

Pig says: "big deal.... I only have to cough, and the entire planet lives in fear.

Friday, August 28, 2009

TALAM ... Aug09

TALAM CORP, which completed its financial regularisation plan, hopes to emerge from the Practice Note 17 status soon. ED - CHUA KIM LAN said on Jul 23, 2009 that all financial instruments, which were part of its regularisation plan, had been issued. " .... We will now submit the application to BURSA MALAYSIA for the uplifting the PN17 status this week (last week of Jul 2009). From the feedback we have from our meeting with BURSA's representative, we are quite confident it will be successful ...." she told reporters after the shareholders meeting on Jul 22, 2009.

In connection with the restructuring, the Company issued Redeeemable Convertible Preference Shares 2009/2014. The additional 60.13m new shares arising from the conversion of the Preference Shares were listed on Jul 23, 2009.

CHUA also said that there were other divestment plans to pare down the Company borrowings, such as disposal of PROPERTIES and land are ongoing.

TALAM is looking to dispose more than 3,000 acres of land, from its current total land bank of around 7,000 acres. The majority land to be disposed will be from the Company's Bandar Bukit Beruntung developement. " .... After the completion of asset and land disposals, the Company will have almost no gearing, and we can start anew ...." CHUA said.

TALAM has around RM700m in total borrowings, including outstanding ICULS of more than RM300m. CHUA said TALAM will now focus on completing its outstanding projects, and aims to achieve at least 95% completion rate by the end of 2009.

She added that there will be no new property launches by TALAM in 2009, but will start some of the joint venture projects such as Sierra Ukay, Sierra Selayang and Ukay Perdana in 2010. These projects have a combined estimated sales value of more than RM1.4 bil.

Talam ... July 09

Thursday, August 27, 2009

LION GROUP ... Aug09

LION GROUP said that its planned USD9.8 bil (RM34.59 bil) steel plant venture in Vietnam is being reviewed in light of the global financial crisis. " .... We are considering various aspects of the project and its implementation in view of the global financial crisis that has occurred since the project was initially proposed ...." the Company said by email to BLOOMBERG NEWS on Jul 27, 2009. This will require discussions with the Vietnamese authorities, financial institutions and its suppliers, the Company said.

Talks on the proposed joint-venture plant in Ninh Thuan province with VIETNAM SHIPBUILDING INDUSTRY GROUP, or VINASHIN, will take some time?? to complete, the Company said.

" .... We heard about the review ...." and the Group is probably considering the value of investing in a country that already has many steel projects, NGUYEN TIEN NGHI, Vice-Chairman of the Vietnam Steel Association, said in a telephone interview from Hanoi on Jul 27, 2009.

VIETNAM may face a surplus of steel because of the growing number of projects, he said. Steel producers in Vietnam expect construction steel capacity to reach about seven million tonnes in 2009, outpacing demand of 3.8m tonnes, he said. " .... We sent requests to the Prime Minister to ask the Government to review licensing steel projects in order to balance supply and demand ...." NGHI said.

The Vietnamese Government is targeting economic expansion of more than 5% in 2009, Prime Minister NGUYEN TAN DUNG said early Jul 2009, following 4.5% growth in the last quarter.

QL Resources ... Aug09

It is back on the acquisition trail this time, it is aiming for businesses in the region. It is eyeing poultry farms in Indonesia and Vietnam, and plantation land and palm oil mills in Indonesia, among others.

It has seen its poultry and livestock division grow by more than 100% in the past four years. Between 2003 and 2007, it purchased a 75% stake in a plantation project with its Indonesian partners which enabled the company to diversify into oil palm.

QL typically allocates around RM150 million annually for capital expenditure.

While the livestock and marine divisions are expected to remain the main earnings drivers for the group, its aggressive expansion into the plantation sector could be by a decline in palm oil prices.

It also operates a fleet of more than 17 trawlers. It is Malaysia’s largest producer of surmi. It also produces fish meal mixture for livestock feed and fish feed, and distributes frozen fish.

Its revenue and profits are generated from two major segments. Its integrated livestock farming and marine products manufacturing division.

Some of the risks in QL’s growth strategy include increases in raw material prices, significant changes in the CPO prices trend, foreign exchange volatility risks due to its increasing overseas contribution and aggressive growth that may strain its balance sheet.

Its net gearing stands at 0.2 times. Its net interest cover stands at 7.0 times The bulk of its borrowings are short term of about 57% of its total borrowings.

QL Resources Bhd ... Sept 2008
QL Resources Bhd ... May 2008

Wednesday, August 26, 2009

Taliwrk ... Aug09

Taliworks Corp Bhd's subsidiary Cerah Sama Sdn Bhd has ceased to be a substantial shareholder in SILK Holdings Bhd after the recent disposal of 485,000 SILK shares on Aug 13. Cerah Sama's disposal of the shares reduced its shareholding in the toll road operator to 4.86% or 8.749 million shares.

Cerah Sama, is 55%-owned by water player Taliworks. It had sold 14.1 million shares or a 7.8% stake in SILK between July 20 and 29 2009.

The other shareholder of Cerah Sama is SEASAF (South East Asia Strategic Assets Fund) Highway Sdn Bhd.

Taliworks Corp ... July 09

Tuesday, August 25, 2009

PANTECH ... Aug09

PANTECH GROUP's 1QE May 2009 Revenue of RM123.9m, down 11% QoQ but up 9.3% YoY showed signs of resilience according to INSIDER ASIA - a research house - which was reported on Aug 5, 2009 in THEEDGEDAILY.COM.

The research house said that " .... We expect sales and earnings to contract slightly for the full year, after adjusting for 'abnormally high' steel prices, demand and margins in 2008. Sales and Net Profit are estimated to decline 4% and 10% to roughly RM490.3m and RM53.8m, respectively in FY10 .... However, we are sanguine on PANTECH's growth prospects beyond the current adjustment period. The Company is enjoying continued stream of orders from customers and demand should gradually strengthen over the coming months. Sales are forecast to resume growth, by about 15%-17%, in FY11-FY12 ....".

INSIDER ASIA said that based on the potential revenue and profit growth, the stock was trading on attractive valuations in early Aug 2009. PANTECH's shares were then priced at only 5.9 and 5.0 times INSIDERASIA's estimated earnings for FY10-FY11, respectively.

INSIDER ASIA also said that the shares of the Company were in early Aug 2009 trading well below the average PE (P/E) ratios for the oil & gas industry ? estimated at about 10 times ? as well as the broader market, which is currently priced above 15 times forward earnings.

Dividend Yields were also estimated by the research unit at 2.5 sen per share for the current financial year, which translate into a net yield of 2.9%.

PANTECH has also been unwinding some of its own inventory. Stocks were lower at RM174.9m at end-May 2009, down from RM202.7m at end-Feb 2009. As a result, the Company's gearing improved to 55% compared to 64% over the same period.

INSIDER ASIA said that market concensus suggests crude oil will trade between USD50 and USD70 per barrel in the near to medium term ? and likely to head higher going forward as the global economic recovery gains traction. The long-term outlook for oil remains unequivocally bullish according to the research house.

Currently, crude oil at around USD70 per barrel is above the breakeven levels for most projects, including deepwater projects. Hence, we should see strong support for continued exploration and production activities in the sector.

PANTECH continues to receive good flow of orders. The Company typically maintains a running order book of around RM150m, which will keep it busy for at least the next three months.

The Company's business is premised upon its position as the largest one-stop centre for PFF (pipes, fittings and flow control products) solutions in the country. The Company carries in excess of 20,000 inventory items, thus providing customers timely and comprehensive solution for the transmission of all fluids and gases. Each and every one of the Company's products carries proper certification, to meet the high benchmark standards for safety and quality required of the oil & gas industry.

Repeat orders for regular maintenance undertaken by its existing customers provide a steady stream of business and account for up to 40% of PANTECH's annual sales.

The Company recently acquired two pieces of land ? adjacent to its current manufacturing facility in Selangor and office in Johor ? for future expansion purposes. PANTECH plans to focus on niche market segments for customised products that carry higher profit margins.

Pantech Group ... Sept 2008

STB ... Aug09

Sitt Tatt Bhd, which is predominately involved in the semiconductor and property industry, is planning to diversify its business into oil palm refining in Indonesia by early next year.

The company was in talks with several parties to build five oil palm refineries. It is also negotiating with small Indonesian plantation owners with the view of refurbishing five existing refineries it plans to acquire from them.

It would invest about US$100 million for this venture.

Monday, August 24, 2009

PANAMY ... Aug09


PANASONIC MALAYSIA at its AGM held Aug 20, 2009 said that despite unfavourable operating conditions in FY2009, the Company was able to achieve continued revenue growth and stable earnings; whilst maintaining a steady cash position and healthy level of Shareholders' Funds.

Revenue for FYE Mar 31, 2009 increased by 6.8% to RM 601m. The Company also reported PAT of RM50m compared with RM53m in 2008; mainly due to a Gain from disposal of property recognized in 2008 and lower Interest Income earned in the current financial year totaling RM5.4m.

The Company was able to mitigate the impact of the decrease in profit through concerted efforts to increase sales and to intensify cost reduction activities.

For 1QE Jun 30, 2009, the Company was able to achieve Revenue of RM 155.9m which was comparable to last year's corresponding quarter's Revenue of RM 156.6m. Despite the slightly lower revenue, the Company managed to improve PBT to RM 14.9m in 1Q - which was a mere RM0.1m compared RM14.8m recorded last year.

The current global and economic condition is likely to remain challenging throughout 2009 and 2010. However, the Company has adopted sound business policies focusing on sales expansion and developing a keen sense of quality awareness in all employees.

The Company will focus on the development of equatorial region-oriented products with emphasis on sales to the Asian region; to strengthen in-house development capability by further upgrading of technology skill and development facilities and to enhance manufacturing innovation with continuous improvement activities to build a strong manufacturing base.

DRB-Hicom ... Aug09

Auto player is negotiations with VW AG to assemble its cars here have run into a snag.

Sources says talks between the two companies hit a brick wall following interference from certain government linked bodies that forced the diversified giant to cease discussions with the German automaker.

Officials close to DRB Hicom confirmed that there was some difficulty in the negotiations saying this occurred about three weeks ago.

Industry officials do not rule out Proton and VW coming back to the negotiating table.

It is believed that in recent months, Proton’s management has been leaning towards collaborating with a foreign partner on its operations in Malaysia and also on its subsidiary Lotus plc.

It is not known if the scuttled talks have anything to do with Proton’s plan to get a strategic partner. Proton and VW have been engaged in talks in forming a strategic partnership and possible equity participation by the German carmaker since 2004 but do deal has materalised.

At present Euromobil Snd Bhd, a unit of the DRB-Hicom is a dealer of VW cars. Euromobil is a wholly owned by Edaran Nasional Bhd, which in turn is a 79% owned unit of DRB Hicom.

Talks that VW cars will probably be assembled by DRB-Hicom has been around for sometime now. These cars would have been for the Asean market.

The latest development is unlikely to hinder DRB-Hicom’s import of VW cars since the appointment of DHAS (wholly owned unit of DRB-Hicom) as the importer became effective in April 2009. Under DHAS, it has the APs to import VW cars among others.

Financial Results …

For FY2009 ended March 31, 2009, DRB Hicom posted a net profit of RM660 million on the back of RM6.1 billion in revenue. The huge jump in net profit was due to the sale of DRB Hicom’s 20.2% stake in EON Capital to Primus Pacific Partners for RM1.3 billion cash.

DRB-Hicom’s largest shareholder is Tan Sri Syed Mokhtar with a 55.9% stake.

DRB Hicom Bhd/MMCCorp ... July 09
DRB-Hicom Bhd/EON ... Nov 2008

Sunday, August 23, 2009



1* Don't smoke
- Experiment from experts proves that smoking a cigarette after meal is comparable to smoking 10 cigarettes (chances of &! nbsp; cancer is higher).
2* Don't eat fruits immediately
- Immediately eating fruits after meals will cause stomach to be bloated with air. Therefore take fruit 1! -2 hr after meal or 1hr before meal.

3* Don't drink tea
- Because tea leaves contain a high content of acid. This substance will cause the Protein content in the food we consume to be hardened thus difficult to digest.

4* Don't loosen your belt
- Loosening the belt after a meal will easily cause the intestine to be twisted & blocked.

5* Don't bathe
-Bathing after meal will cause the increase of blood flow to the hands, legs & body thus the amount of blood around the stomach will therefore decrease.
This will weaken the digestive system in our stomach.

6* Don't walk about
- People always say that after a meal walk a hundred steps and you will live till 99. In actual! fact this is not true.
Walking will cause the digestive system to be unable to absorb the nutrition from the food we intake.

7* Don't sleep immediately
- The food we intake will not! be able to digest properly. Thus will lead to gastric & infection in our intestine.

Saturday, August 22, 2009


Heads up everyone! Please, keep this circulating...

You walk across the parking lot, unlock your car and get inside.
You start the engine and shift into Reverse.

When you look into the rearview mirror to back out of your parking space, you notice a piece of paper stuck to the middle of the rear window. So, you shift into Park, unlock your doors, and jump out of your car to remove that paper (or whatever it is) that is obstructing your view.
When you reach the back of your car, that is when the car jackers appear out of nowhere, jump into your car and take off.

They practically mow you down as they speed off in your car.
And guess what, ladies? I bet your purse is still in the car.
So now the car jacker has your car, your home address, your money, and your keys. Your home and your whole identity are now compromised!


If you see a piece of paper stuck to your back window, just drive away. Remove the
paper later. And be thankful that you read this e-mail.

I hope you will forward this to friends and family, especially to women.

A purse contains all kinds of personal information and identification documents, and you certainly do NOT want this to fall into the wrong hands.

Friday, August 21, 2009

N2N ... Aug09

It is leveraging on the rebound in the equity markets to promote new products and solutions.

Its recent new products include real-time risk management system, Tc Pro-Professional Trading System and the multi-market multi-asset order management system. These new products would enable brokers to compete internationally with live and direct access to global markets.

N2N’s fortune hinges largely on the performance of the stock markets, as it earnings are mostly derived from its eBrokerConnect services, whereby it enjoys recurring income through fixed monthly management fees while alternate income is derived from fees charged for every matched trade order executed via its online trading system.

N2N’s growth was remarkable during the stock market boom from 2004 to 2007, registering an average of 98% and 150% growth in revenue and net earnings respectively within those three years. Its net margin in the fiscal year ended Dec 31, 2007 (FY07) was at an impressive 65%. With the slump in trading activities since the beginning of the financial crisis last year, N2N’s earnings had dropped significantly..

N2N’s expansion drive into the overseas markets, particularly in the Middle East and other emerging markets like Vietnam and Indonesia. Its Singapore subsidiary, N2N Connect Pte Ltd, is spearheading its expansion into Hong Kong.

In FY2007, N2N had revenue contribution of RM11.2 million from its Middle East division, accounting for nearly 35% of total revenue. Furthermore, the high market trading volume on Bursa Malaysia then accounted for an increase in transaction fees.

Meanwhile, results of the efforts in overseas markets was bearing fruits, with the Middle East having started the implementation of its live trading programme, while Vietnam would follow soon.

N2N’s stockbroking clients commanded around 45% of the stock market trading value in 2007. At present, some of the largest stockbroking companies in Malaysia such as AmSecurities Sdn Bhd, Apex Securities Sdn Bhd, CIMB Securities Bhd, Kenanga Securities Sdn Bhd, SJ Securities Sdn Bhd, and Hwang-DBS Securities Sdn Bhd use the eBrokerConnect service.

Thursday, August 20, 2009

AXIS REIT ... Aug09

Axis REIT, ich is back on the acquisition trail, is mulling another round or two of unit placements in 2010 to lure investors that may include Middle Eastern funds.

The unit-placement exercise was consistent with the REIT’s efforts to reduce gearing and fund the acquisition of properties. It would be one (placement) this year (2009), followed by one or two next year, but it depends on the market condition.

The REIT had placed out new units in January 2008 and had proposed another placement last October (2008) but that did not materialise due to the global financial crisis.

Most recently, it proposed to undertake the placement of up to 51.18 million new units in the second half of 2009 and local syariah-compliant funds were expected to participate in this round of placement. It will ask for shareholders’ approval this month (Aug 2009) for this placement.

Axis REIT, which was reclassified as an Islamic REIT late last year (2008), could get investors from the Middle East next year despite the exit of some US-based funds from the REIT amid the global financial crisis. These (Middle Eastern) funds want to take significant positions.

Currently, Axis REIT’s foreign holdings stand at 10.7%, far from the 70% threshold allowed by the country’s REIT regulations.

The placement of up to 51.18 million new units is estimated to raise RM79 million based on an indicative price of RM1.55 per unit. Axis REIT closed at RM1.71 last Friday. Its net asset value (NAV) stood at RM1.76 per unit. The REIT distributed eight sen per unit for the first half of its financial year ending Dec 31, 2009.

The property trust’s debt-to-assets ratio is already close to the 50% limit under current regulations, therefore, it may try to sell the maximum number of new units to investors to reduce gearing.

As at June 30, Axis REIT had 19 properties under its stable with assets under management worth about RM728 million and a fund size of 255.9 million units of RM1 each. It recently announced plans to purchase Axis Steel Centre in North Port, Klang for RM65 million and is already in talks for another four buildings worth RM220 million.

The REIT would focus on acquiring local assets for now as they presented the best value in the region. He noted that its most recent acquisition had a net yield of 9.7%.

AXIS REIT ... July 09
AXIS Reit ... Oct 2008

Wednesday, August 19, 2009

HUA-AN ... Aug09


Metallurgical coke producer China-based SINO HUA-AN INTERNATIONAL's diversification into downstream production will enhance its overall profitability, says RHB RESEARCH in an update Jul 26, 2009.

SINO HUA-AN's plans for value-added products using by-products from metallurgical coke production was far more profitable than mergers or acquisitions as a means to expand capacity. SINO HUA-AN's ED - CEDRIC CHOO told STARBIZ in an e-mail that the Company was at the exploring stage and conducting viability studies on the by -products expansion plan and was unable to comment further on this matter.

Metallurgical coke is used as an energy source for the smelting of iron ore in the manufacturing of steel. Earlier reports said SINO HUA-AN had put on the backburner its plans to diversify downstream and become a steel player, in view of the financial crisis.

Instead, SINO HUA-AN chose to ramp up its production to the maximum. According to RHB RESEARCH, SINO HUA-AN's plant utilisation rate had stabilised at about 90% since Jan 2009 while the price gap between metallurgical coal (input) and metallurgical coke (output) had normalised to the average of Yuan 450 per tonne since May 2009.

The Brokerage opined that both plant utilisation rate and price gap would sustain at current levels (if not increase further) in the medium term as global crude steel consumption was expected to recover in 2010, underpinned by stimulus package plans implemented by various economies that would translate to downstream demand. Besides that, the Chinese Government's ongoing efforts to consolidate the metallurgical coke industry in China by phasing out inefficient and small-scale metallurgical coke plants, would boost Chinese metallurgical coke producers' pricing power (including SINO HUA-AN) over the longer term, it noted.

RHB RESEARCH added that although prices of SINO HUA-AN's major by-products such as tar oil and crude benzene (that collectively contributed 5% to 8% of SINO HUA-AN's total revenue), had started to ease in Jul 2009, the pullback in these prices was likely to be temporary.

The brokerage said that they project crude oil prices to hover at USD50-USD70 per barrel for the second half of 2009 before rising to USD60-USD80 and USD80-USD100 in 2010 and 2011 respectively, underpinned by stabilising demand from the United States and a pick-up in China's manufacturing activities (which collectively contribute about 30% of global oil demand).

SINO HUA-AN recorded a Net Loss of RM23.6m for 1QE Mar 31, 2009 compared with a Net Profit of RM35.5m in the previous corresponding period. The decline was due to high prices of coking coal, which increased manufacturing costs. Besides that, Operating Costs such as additional workforce and depreciation charges on new coking ovens, further inflated cost of sales in 1QE Mar 2009. Its Revenue, however, increased 7% to RM310.9m from RM290.8m previously, mainly attributed to higher metallurgical coke prices.

Bolton ... Aug09

It is considering a bond issuance of up to RM300 million to fund land acquisition as well as the development of existing projects.

With the company's gearing at 30% as of last financial year (March 31, 2009) and about 27% today (2009) and the ability to gear up was there for Bolton.

Bolton was scouting for landbank in the Klang Valley and possibly in Penang where it has existing developments

A bond issuance by the company would not be for refinancing or debt repayment purposes but would fund a combination of developing what land the company already had and to look at acquisition opportunities.

Tuesday, August 18, 2009


QUILL CAPITAL TRUST's (QCT) Net Profit rose 19.8% YoY to RM8.0m for 2QE Jun 30, 2009. According to a Company statement, the improved results were due to the full-quarter Gross Revenue and Income contribution from all 10 assets currently under its portfolio as compared with nine assets in the corresponding period in 2008.

Gross Revenue for 2QE Jun 2009 jumped 21.7% to RM16.6m from RM13.6m, while Gross Revenue from the first half of 2009 surged 33.9% YoY to RM33.59m from RM25.0m previously. Correspondingly, Gross Profit from the first half of 2009 rose by 11.5% to RM15.4m from RM13.8m in the same period in 2008.

QCT is a commercial Real Estate Investment Trust (REIT) managed by QUILL CAPITAL MANAGEMENT sb (QCM). Currently, QCT owns 10 buildings comprising five in Cyberjaya, two in Kuala Lumpur, and one each in Shah Alam, Petaling Jaya and Penang.

According to QCM Chairman - MOHAMMED HUSSEIN, QCT will distribute 3.78 sen per unit for 1HE Jun 30, 2009 which is 12.5% higher than the last distribution per unit of 3.36 sen.

CEO - CHAN SAY YEONG also revealed that QCT has secured in advance a RM80m financial facilities from GREAT EASTERN LIFE ASSURANCE (M) and ALLIANCE BANK. The facilities will mainly be used for repayment of a bridging loan which is maturing in Nov 2009. With this, they would have completed all of QCT's refinancing requirements for this year, and there will be no refinancing needs till Dec 2010 he said.

Pelikan ... Aug09

Sources say it is close to acquiring an European listed firm involved in the stationery business as it steps up the group’s presence in the region.

The firms is one of Pelikan’s strong competitors in Europe. This acquisition comes after Pelikan aborted plans to buy two rival companies in China.

Talk has emerged that in the latest acquisition, Pelikan is only interested in taking over the stationery business of the firm and is not keen on keeping the latter’s assets.

With the acquisition, Pelikan will enhance its position in Europe. However, the cost of this latest acquisition is not known.

Industry observers view that a strategic purchase is in line with the growth strategy of Pelikan, which derives most of its revenue in Europe, with Germany accounting for half of the business.

It is likely to fund the acquisition via borrowings, given its small ash holdings. Its leverage ratio is relatively high at 0.7 times, hence a cash call is also a possibility and feasible as the stock market has rebounded.

It currently has six production plants and has built presence in 26 countries.

On the financial front, Pelikan registered a 66% decline in net profits to Rm8.02million for 1Q2009 ended March 2009..

As at March 31, 2009, its borrowings stood at Rm374 million while cash and shareholders’ fund were rm58.44 million and RM559 million respectively.

CEO Loo Hooi Keat is the biggest shareholder in the company with a 29.45% stake followed by LTAT at 28.16%.

Pelikan Intl Corp Bhd ... Feb 2009

Monday, August 17, 2009

WCT ... Aug09

The award of RM766m jobs to WCT is a sign that things are starting to pick up in the construction sector, said HWANGDBS VICKERS RESEARCH on Jul 20, 2009. The Government's pump-priming efforts were accelerating and the research house was also positive about contracts given to the lowest bidder via an open tender.

AMRESEARCH said that the handing out of public contracts highlighted a resurgence in public infrastructure spending as one of the two major themes anchoring recovery in Malaysia's economic growth in 2010.

WCT received four letters of award (LOA) for infrastructure works in 'Medini Iskandar Malaysia, Johor', in mid-Jul 2009. The works are expected to be completed by Jul 2011 for MEDINI ISKANDAR MALAYSIA sb, a unit of ISKANDAR INVESTMENT bhd.

AMRESEARCH said WCT had almost reached its new orders target of RM1 bil for 2009 with its latest contracts and this should also lift its outstanding Order Book to about RM3.7 bil.

HWANGDBS said that it expects WCT to convert at least one other LOA for a Sabah job by end 2009.

The research house pointed out that the PBT margin for the RM766m contracts was rather low at 5%, implying some risks in the event of cost overruns. The contracts will ensure better earnings continuity post- FYE Dec 31,2009 and secure its footing in the Iskandar region it said. However, the valuations of WCT continue to remain stretched at 17 times calendar year 2010 EPS - a premium to IJM's 14 times and GAMUDA's 16 times.

AMRESEARCH said WCT was expected to be among the key beneficiaries of the Federal Government's pump-priming initiatives moving into the second half of 2009.The research house said WCT was well-positioned to benefit from an expected uptick in domestic contract flows in 3Q-CY2009. The research house also said that in the near term, the Company was working hard to clinch a smaller package for a major infrastructure contract in Sabah, worth in excess of RM1 bil, within the next two months.

On WCT's overseas projects, AMRESEARCH said the encouraging signs of a re-acceleration in Middle East job flows due to the rise in oil prices would benefit the Company. WCT is eyeing more repeat jobs within the massive USD40 bil Yas Island (Abu Dhabi) development.

OSK RESEARCH added that it learned that there would be more construction works from Iskandar Malaysia in the near future and WCT intended to execute the recent contracts swiftly and bid for more jobs from the same client. It also said that WCT had a good chance of participating in the new Low-Cost Carrier Terminal worth RM2 bil at the KL International Airport.

M3nergy/Melewar ... Aug09

Sources say a revitalised M3Nergy, which is part of Melewar, has attracted several foreign and local suitors. The suitors have indicated interest in the company’s assets which provide services to the O&G industry.

M3Nergy is on track to take delivery of an ESO (floating, storage and offloading) vessel and its barite plant in Labuan will be commission soon. It is increasingly becoming a complete O&G service provider, a fact that has attracted suitros.

Sources say some local suitors have expressed interest but it could not be determined if these are the same old names some four years ago. Apart from local names, foreign companies involved in the O&G business have also indicated interest.

M3Nergy’s management declined to comment.

Currently (Aug 2009), the major shareholder in M3Nergy is Melewar group, which is headed by Tunku Datuk Ya’acob Tunku Tan Sri Abdullah who holds a position in the former as a non-independent non-executive directors.

Its NTA per share stood at RM3.28 as at March 2009. For 3Q2009, M3Nergy recorded a net loss of Rm16.2 million even as its revenue increased y-o-y. The loss as partly due to a provision made during the period for the termination of a contract to develop offshore marginal fields in India known as Cluster 7.

The company’s main asset now is its FPSO (floating, production, storage and offloading) vessel located off the shores of Terengganu and which has been operating under a long term leasing contract with Petronas Carigali.

On Jan 31, 2008 Carigali PTTEPI Operating Company Sdn Bhd awarded M3Nergy a contract to supply and operate an fSO for up to 16 to 20 years. In June 2008, M3Nergy took delivery of the oil tanker that will be converted into FSO, with commissioning expected to be in 3Q2009. In addition, M3Nergy holds the contract to operate and maintain the FSO Puteri.

The company main focus now is on growing its FSO and EPFO business, which offers recurring income. Now, with oil prices back on an upward trend, there will be increased demand from all the national oil majors for storage facilities.

The improvement in oil prices also bodes well for M3Nergy’s ptehr major business – supplying barite.

Also in the pipeline for M3Nergy is a move into upstream O&G activities as a natural extension of its FSO and EPSO business. The company still holds an O&G block in Indonesia.

To the company’s credit it has been working to dispose of all its non core businesses and assets over the past few years. One of the notable is its stake in MMM, where losses at the latter had dragged down its earnings. It is currently looking for buyers for the remaining 20.9 million shares in MMM is still holds.

It also disposed of its quarry business in 2008, while its cash rich Singapore subsidiary, Maveric Ltd – which sold its entire business in 2006 for S$120 million – is still on the lookout for acquisition.

Sunday, August 16, 2009








Saturday, August 15, 2009




Friday, August 14, 2009

Formis ... Aug 09

FORMIS Resources Bhd (Formis) has secured a RM69.84 million contract to supply, install and commission an integrated e-courts system for Malaysia's courtrooms, called the 'e-Kehakiman' system.

The contract covering court rooms in Selangor, Kuala Lumpur and Putrajaya, Johor, Penang and Sarawak, requires Formis to design and set up three systems, encompassing e-filing, case management and queue management system and court recording and transcription. The company has one year to complete the implementation of the system.

The project is expected to contribute positively to earnings of its current financial year ending March 31, 2010; and in the longer-term. The project cost will be funded by internally generated funds and bank borrowings.

For the financial year ended March 31, 2009, Formis achieved a profit before tax of RM15.6 million, an increase of 256 per cent from the previous financial year.

Going Forward … It is bidding for another RM1 billion worth of jobs.

The project will help add to its recurring income stream that currently stands at Rm60 million per annum from maintenance and service contracts for systems installed by the group.

Maintenance of hardware is generally about 10% to 12% and for its software, it is about 15% of the contract sum per month. Formis is to guarantee that the e-courts system functions to order for at least three years, subject to renewal.

Thursday, August 13, 2009

Axiata ... Aug 09

PT Excelcomindo Pratama Tbk (XL) of Indonesia, which is a unit of Axiata Group Bhd (formerly known as TM International Bhd), has proposed a rights issue to raise some US$300mil to reduce borrowings and improve its capital structure.

The rights issue would consist of equity and mandatory convertible notes (MCNs).

The size of equity and the MCNs, final issue price of the common shares as well as the conversion price of MCN will be determined later.

XL’s major shareholders, including Axiata and Emirates Telecommunications Corp International Indonesia Ltd, have committed to fully subscribe to their rights entitlement.

With the proceeds to par down debts, XL will be able to reduce financing costs and improve its balance sheet to allow further investing for growth.

The Indonesian mobile operator was reported to require about RM2.1bil this year (2009) for its capital expenditure and that a rights issue was in the pipeline.

Axiata was committed to increasing the free float of XL when market conditions improved. Axiata via Indocel Holding Sdn Bhd currently owns 83.8% of XL while Emirates holds 16% and the public 0.2%.

The proposed rights issue is subject to shareholders’ approval at an EGM to be held sometime this year and is expected to be completed by the fourth quarter 2009.

Redtone ... Aug 09

REDtone International Bhd believes it has met the 25% broadband coverage requirement in Sabah and Sarawak and now wants to be considered for a nationwide WiMAX licence similar to that offered to the other three players.

It had written to the Government and the commission asking for a nationwide licence but have not got any reply from them.
They are expanding its services in Sabah and Sarawak and want to do more to help achieve the Government’s goal of 50% broadband penetration by end of 2010.

Wednesday, August 12, 2009

Lion Corp/Megasteel ... Aug 09

Megasteel Sdn Bhd, a subsidiary of Lion Corp Bhd, is in default of a credit facility granted by Bank Pembangunan Malaysia Bhd and a syndicated term-loan facility granted by syndicated term-loan lenders.

However, Megasteel remains “solvent as it will be able to pay all debts as and when they fall due within a period of 12 months from the date of this announcement.

The downturn in the global financial and commodities market since the fourth quarter of 2008 had caused a “drastic weakening” of the domestic and global steel markets, adversely affecting Megasteel’s financial performance. As a result, Megasteel was not able to meet the principal payment due in respect of the credit facilities.

As at July 2009, Megasteel’s total outstanding principal amount stood at RM47.6mil for the Bank Pembangunan credit facility and RM1bil for the syndicated term-loan.

Megasteel was in the final stages of negotiations to schedule the repayment of the credit facilities.

Meanwhile, Lion Group, which owns steel, property and retailing businesses Megasteel Sdn Bhd plans to sell assets to pay debt and is getting support from lenders to reschedule RM1.05 billion of loans.

Megasteel, a steel mill owned by Lion Corp, part of the Lion Group, failed to meet payment on the loans as the weaker global economy hurt the company’s financial performance.

Megasteel is in the “final stage” of negotiating with Bank Pembangunan Malaysia Bhd and the syndicated term-loan lenders in order to meet its financial obligations.

The lenders haven’t declared that an event of default has occurred.

BIMB ... Aug 09

Bank Islam Malaysia Bhd is still waiting for capital injection from its Middle East shareholder, Dubai Invesment Group (DIG) in its move to boost risk-weighted capital ratio (RWCR) and strengthen its capital.

DIG, which owns 40 per cent of Bank Islam, has until September 15 2009 to put in the money. So far, only Tabung Haji has put in the money and DIG has a deadline until September 15 to do so.

DIG's share of the capital call is RM216 million. Bank Islam''s capital move is part of its strategy to prepare for the worst in the industry. The new capital is expected to boost Bank Islam's risk-weighted capital ratio to 17.3 per cent, from 13.1 per cent at the end of 2008. The ratio measures a bank''s ability to absorb potential writedowns and defaults.

BIMB Holdings Bhd is the bank''s biggest shareholder with a 51 per cent stake while Tabung Haji holds the balance nine per cent of Bank Islam.

Tuesday, August 11, 2009

AMMB ... Aug 09

AMMB had issued 194.9 million new shares to ANZ, following the latter’s move to convert the exchangeable bonds that ANZ had subscribed in 2007, into equity.

ANZ’s wholly owned unit ANZ Fund Pty Ltd had subscribed to the subordinated debt papers issued by AmBank (M) Bhd, following its entry into AMMB in end-2006 as a strategic equity partner.
The move to convert the bonds into equity would cement ANZ’s position in AMMB, and is taken as a positive sign as it showed confidence of the foreign banking group in AMMB.

Moreover, following the conversion of the exchangeable bonds into equity, AMMB’s Tier-1 capital ratio is boosted to 10.15% from 9.74%, while its core Tier-1 capital ratio would rise to 7.9% from 7.5%.

This move could be preparing for the higher dividend or more active capital management to enhance ROE (return on equity). Moreover, it also provides additional room to issue more hybrid capital and subdebt if the need arises or to optimise its capital structure.

Nevertheless, AMMB’s risk-weighted capital adequacy ratio remained unchanged.

According to agreements signed between ANZ, Australia’s third-largest banking group, and AMMB, ANZ may hold up to 24.95% stake in the local banking group following conversion of preference shares and subordinated debt papers that ANZ had subscribed to.

A check with Bloomberg data shows that the Employees Provident Fund is AMMB’s second-largest shareholder with 16.9% stake in the local banking group. Interestingly, Prudential plc is also a substantial shareholder with a 5.5% stake in AMMB.

Meanwhile, on ANZ’s regional operations, the banking group has entered into an agreement to acquire Royal Bank of Scotland’s (RBS) commercial banking assets in Taiwan, Hong Kong, Singapore and Indonesia.

Malton ... Aug 09

It expects higher contribution from its construction division following the return of more building and infrastructure projects in the country.

In the past two to three years, contribution from construction projects undertaken by its subsidiary, Domain Resources Sdn Bhd, has overtaken property development as the main revenue contributor at the group level.

Chuan, Domain only started to undertake external construction projects earlier this year (2009). Its objective is to achieve a 70:30 ratio of external and internal projects.

Its current projects comprise the construction of property projects and other related infrastructure development for its parent as well as for third party clients.

Currently, Domain has an order book of RM680mil.

Its ongoing projects include the construction of the Carrefour hypermarket complex in Bukit Rimau and the design and redevelopment of the former Jaya shopping centre in Section 14, Petaling Jaya.

The contract for Carrefour is worth RM34mil and the Jaya project is RM175mil.
Hong said Domain would be tendering for other projects, including RM534mil worth of in-house property projects and RM305mil external contracts, including an aircraft hangar in Subang and a commercial project in Putrajaya.

Besides Malton’s in-house property projects, there will be more project design, build and management contracts for other clients. Going forward, the company would be looking for projects in the region as well.

For the financial year ended June 30 (FY09), the company is expected to turn in RM400mil in sales, a marginal increase over the RM394mil registered in FY08.

The company’s landbank include 56 acres in Ukay Springs that are planned for semi-detached houses and bungalows with potential gross development value (GDV) of RM500mil. Another parcel is a 2.7-acre site in Taman Maluri earmarked for mixed development with service apartments, office suites and retail podium worth RM210mil. The project will be launched by year-end (2009). Development plans for its 67 acres in Sg Long, Cheras are under way while its 0.67-acre plot in Petaling Jaya will have service hotel suites worth RM70mil. It also has 17 acres in Seremban that will be turned into a RM160mil project comprising bungalows and shop offices.

Malton has seven ongoing projects including the Bukit Rimau township development, high-end residences and commercial projects with a total GDV of RM1.5bil, according to Fong. Of this, RM900mil worth of properties have been sold. One of its latest lifestyle offerings is the high-end gated development called The Grove in SS23, Petaling Jaya.

The 4.8-acre freehold project comprises 35 bungalows priced from RM3mil to RM3.8mil each.

Other developments include The Pearl @ KLCC and Amaya Saujana @ Saujana Subang.
The Pearl @ KLCC is a high-end condominium project along Jalan Stonor.

On 6 acres oppositve Saujana Golf Resort, Amaya Saujana comprises three 13-storey residential suite blocks with a total of 378 units priced from RM605,000 to over RM2mil. It has a GDV of RM285mil.

On the adjoining three-acre parcel will be a commercial development currently under planning. Malton is also building the V-Square - an integrated commercial project comprising two corporate towers, a corporate business suite block, and two blocks of corporate offices, with retail space on the ground floors. The 2.6-acre project in Jalan Utara, Petaling Jaya is scheduled for completion in 2011 and will have a GDV of RM240mil.

Equine/Malton ... Nov 2008

Monday, August 10, 2009

TA ... Aug 09

TA ENTERPRISE expecting the local property market to pick up within the next two years has lined up commercial and residential projects with estimated sales value of RM6 bil to be launched from 2010 onwards.

The biggest property project will be a mixed commercial development in Sri Damansara that will spread over an 18.2-hectare site, with the first launch consisting of shopoffice and small office-home office lots set for 1Q-CY2010. " .... This development will have a GDV (estimated sales value) of RM3 bil over seven years to 10 years ...." said MD & CEO M/s ALICIA TAN the Group's AGM on Jul 30, 2009.

Another project will be the 1.32-hectare freehold commercial development named 'Nova Square' which will include a five-star hotel tower, a block of luxury residences and an office tower and lifestyle podium, set for launch in 2012 with a GDV of RM1.3 bil.

Other developments include a mixed commercial development opposite KLCC to be launched in 2011 with GDV of RM1.2 bil, residential development at Jalan U-Thant with GDV of RM110m to be launched in 2010, and condominium development at Dutamas with GDV of RM300m to be launched also in 2010.

Going forward, ALICIA TAN hoped that TA's property division will be able to contribute equally to total profit as it was turning into a reputable player in the high-end property market like the Group's financial services, which included stockbroking.

In 2008, the financial services was the major contributor to the Group's profit. " .... We believe that the worst is over. The stock market is also better than last year (2008) ...." she said, adding that the Group was also confident of recovering almost all of the RM51m provisions it had made.

TA made PBT of RM135.5m for FYE Dec 2008, which was 53.1% lower than RM286.9m for FY2007.

TA ENTERPRISE has Net Cash of over RM400m and is keen to build its hotel portfolio by buying or building on an average one a year, ALICIA TAN said.

The Group recently acquired 'The Westin Melbourne' for RM374.7m and the hotel has started to contribute positively to the Group, she said. During 2008, the Group also acquired another hotel, 'Coast Whistler', for RM107m and it is now rebranded as 'Aava Whistler', which is scheduled to reopen on Nov 30, 2009, in time for the 2010 Winter Olympics.

The Group also recently proposed to purchase the entire issued shares of MAURITIUS COMPANY QUAYSIDE GEM ltd, which owns Singapore's MERCHANT QUAY pl - the owner of the four-star hotel 'Swissotel Merchant Court Singapore'. " .... Currently, due diligence is being conducted and on Aug 25, 2009 we will be signing the sales and purchase agreement ...." she said.

TA Group is always on the lookout for more opportunities, according to ALICIA ...." .... Great cities like Hong Kong and London are good locations ...." she said.

On the listing of its property unit, TA GLOBAL, ALICIA said it was awaiting approval from the SC. " .... Once that is done, we should be able to list TA GLOBAL ...." she said, adding that the Group has enough landbank to be developed over the next 10 years.

TA ... July 09

Sime Darby/Ramunia ... Aug 09

Sime Darby Bhd will pay RM560 million (US$159.1 million) to acquire energy services firm Ramunia, revising an earlier offer to pay RM232 million for the stake excluding liabilities.

Under the revised offer, Sime will pay for the acquisition in cash instead of the part cash, part share in unit Sime Darby Engineering (SDE) offer it made in May 2009.

The offer is better for Ramunia shareholders as they will get a lump sum amount in cash for the purchase as opposed to the earlier offer that included shares in SDE as part of the payment.

Going Forward …

The earlier offer by Sme Darby is to acquire assets and liabilities of Ramunia for RM232 million – Rm46 million in cash and RM185 million in SDE shares. The new offer is only for Ramunia’s assets for RM560 million cash.

The latest offer works out to be better for Sime Darby but slightly worse for Ramunia. However, Ramunia does not really have a choice given rising losses, mounting debts and contracts drying up.

In the earlier offer, Ramunia would have ended up with Rm46 million cash and 20% stake in SDE, giving it an opportunity to ride on the latter’s growth. It would end up as shell company with no core business, however.

Under the first offer, taking into account the liabilities that Sime Darby would have taken over, the acquisition price worked out to roughly RM635 million, higher than the revised offer of RM560 million.

It is believed that the cash from the latest deal could be used to pay off Ramunia’s debts; its total liabilities come up to Rm570 million as at April 2009. Long term and short term borrowings, coupled with payables, totaled RM563 million.

After setting its liabilities, Ramunia could still monetise its current assets of RM172 million, resulting in net cash of RM161 million or 29 sen per share.

The board is still evaluating plans for optimal utilisation of the cash proceeds form the proposed disposal, with the aim of providing maximum benefits to the company and its stakeholders. Given Ramunia’s poor track record, it would be better if it distributes the cash and delists.

Upon the completion of deal, Ramunia may be classified as a cash company under PN16 or even PN17, which applies for distressed companies.

However, some industry observers noted that after debts and payables are settled, it is possible that there will be round two, where there could be a takeover by another company, a new partner or Tabung Haji may inject assets into Ramunia. Distribution to shareholders are quite unlikely since Ramunia is looking for a new core business.

But still striking a deal with creditors, leaving more cash for its future business, or return some of it to shareholders is uncertain.

As for new business, market talk has it that LTH, which owns a 29.7% stake in Ramunia, may inject some of its oil and gas related investments into the company later on.

Currently (Aug 2009) LTH is still one of the largest shareholder in Ramunia as it may presence some conform to investors. Average price for LTH entry into RAMunia is RM1.40.

Ramunia/Sime Darby ... May 09
Sime Darby/Ramunia ... Apr 09

Sunday, August 9, 2009


Ah Beng bought a new mobile.
He sent a message to everyone from his Phone Book & said, "My Mobile No. Has changed. Earlier it was Nokia 3310. Now it is 6610"

Ah Beng : I am a Proud, coz my son is in Medical College .
Friend: Really, what is he studying.
Ah Beng: No, he is not studying, they are Studying him.

Ah Beng : Doctor, in my dreams, I play football every night.
DR: Take this tablet, you will be ok.
Ah Beng : Can I take tomorrow, tonight is final game.

Ah Beng : If I die, will u remarry?
Wife: No! I'll stay with my sister. But if I die will u remarry?

Ah Beng : No, I'll also stay with your sister.

Ah Beng : People consider me as a "GOD"
Wife: How do you know??
Ah Beng : When I went to the Park today, everybody said, Oh GOD! U have come again.

Ah Beng complained to the police: "Sir, all items are missing, except the TV
in my house."
Police: "How the thief did not take TV?"
Ah Beng : "I was watching TV news..."

Ah Beng comes back 2 his car & find a note saying "Parking Fine" He Writes a note and sticks it to a pole "Thanks for complement."

How do you recognize Ah Beng in School?
He is the one who erases the notes from the book when the teacher erases the board.

Once Ah Beng was walking he had a glove on one hand and not on other. So
the man asked him why he did so. He replied that the weather forecast
announced that on one hand it would be cold and on the other hand it would
be hot.

Ah Beng in a bar and his cellular phone rings. He picks it up and Says
"Hello, how did you know I was here?"

Ah Beng : Why are all these people running?
Man : This is a race, the winner will get the cup
Ah Beng : If only the winner will get the cup, why others running?

Teacher: "I killed a person" convert this sentence into future tense
Ah Beng: The future tense is "u will go to jail"

Ah Beng told his servant: "Go and water the plants!"
Servant: "It's already raining."
Ah Beng : "So what? Take an umbrella and go."

A man asked Ah Beng: why Ahmad Badawi goes walking in the Evening and not in the morning?
Ah Beng replied: Ahmad Badawi is PM not AM

Saturday, August 8, 2009


This poem “Choice” is written by Mao Min. It scored top marks in a High School Examination in China

如果我是一片雲, 我會放棄高高上, 我選擇化作一滴滴小雨飄落人間。
你要問我為什麼, 請看看那些鬱鬱蔥蔥的生命,那,就是我的答案。
If I were a piece of cloud, I would give up my place in high heavens, and would choose to descend to earth in little droplets.
If you ask me why, Look at the lush green vegetation, And that, is my answer

If I were a river, I would give up flowing to the ocean, and would choose to stream into the fields.
If you ask me why, Listen to the happy laughter of the farmers, And that, is my answer

如果我是一株靈芝,我會放棄長命百歲, 我選擇化為一滴滴藥湯灌入人口中。
If I were a Lingzhi, I would give up my eternal life, and choose to get into the bodies
If you ask me why, Look at the recovery of the sick, And that, is my answer

如果我是一塊礦石, 我會放棄平靜安逸,我選擇熔入爐中化為滾燙的鋼水。
你要問我為什麼,請看看那一座座的高樓大廈, 那,就是我的答案。
If I were a mineral stone, I would give up my safe haven, and choose to turn into steel
If you ask me why, Look at the tall buildings And that, is my answer

你要問我為什麼,請看看那些飽受戰爭痛苦的兒童正在快樂地玩耍, 那,就是我的答案。
If I were a dove, I would give up my freedom, and would choose to bring an olive branch to the war-torn countries.
If you ask me why, Look at the playing children. And that, is my answer

人生,是一篇做不完的選擇題,向前? 向後? 往左? 往右?
如果你已迷失方向, 瞧瞧你心靈中的真、善、美吧,那,就是你的答案。
Life is an endless exercise of choice Front? Back? Left? Right?
If you have lost direction, Look at the truth, the righteous, and the beauty in you heart and mind
And that, is your answer

如果我是收到這封电邮的人,我會放棄把它獨自珍藏, 我選擇轉寄給大家,
If I had received this mail, I would give up keeping this to myself and choose to forward this to many others
If you ask me why, Look at the people who are encouraged and guided to self-esteem, And that, is my answer

Friday, August 7, 2009

Titan ... Aug 09

The Halal Development Corporation (HDC) in Malaysia and the Majelis Ulama Indonesia (MUI) in Indonesia have certified Titan Chemicals Corp Bhd’s polyolefins resins (polyethylene and polypropylene) as halal, respectively.

This makes the company the first of its kind in the world to have its polyolefins resins certified as halal.

The concept and inception of the halal resins was first proposed several years back with the aim of manufacturing polyolefins resin with raw materials free from animal derivatives to fulfil the halal requirements.

With the announcement by the Malaysia government to make the country a hub for halal industry, it provides further incentive and assurance for Titan Chemicals to aggressively pursue the initiative in the development of halal polyolefins resin.

Moving into what is to be known as halal polyolefins resin, Titan Chemicals is in a leadership position to develop new market potentials for plastic products in the halal industry and is ready to fulfil the needs of the 1.8 billion Muslims worldwide and all people who are concerned with wholesomeness.

Thursday, August 6, 2009

EngTek...Aug 09

Its hard disk drive (HDD) manufacturing business in Ayutthaya, Thailand, has seen steady growth in revenue.

The Thai venture, which began operation in 1999, registered a revenue of 657 million (100 baht = RM9.55) in 2005, 1.2 billion baht in 2006, 1.5 billion baht in 2007 and 1.63 billion baht in 2008.

Revenue increased after Engtek, a Penang-based world-class manufacturer of precision engineering components, acquired Singapore''s Altum Precision in 2003.

Engtek's revenue for the first quarter ended March 31, 2009 fell to RM100.8 million from RM159.1 million in the corresponding period in 2008.

It made a pre-tax loss of RM300,000 compared to a net profit RM17.8 million previously.

The company's Thai operations focused on HDD for laptops, low-end desktop and mobile devices while its Chinese plant, which was set up in Dongguan in 1996, concentrated on high-end storage and desk top computers.

EngTek has no plan to expand its operations to new countries.

So far, the company has invested between RM30 million to RM40 million for its venture in Thailand, seen as a strategic location due to its proximity to major clients like Western Digital and Seagate

Wednesday, August 5, 2009

Tanjong ... Aug 09

TANJONG PLC's Net Profit for 1QE Apr 30, 2009 dipped 4.76% to RM191.4m from a year earlier, as it recorded, among others, a Net Investment Loss of RM3.0m versus Net Investment Income of RM74.3m in 1QE Jan, 2009. Revenue surged 20.91% to RM978.8m from a year earlier, the Company said in an EXCHANGE filing on Jun 29, 2009.

The Company in an EXCHANGE filing on Jun 29, 2009 also said that the PAT for 1QE Apr 2009 of RM269m was higher than the RM148m recorded in 2008 - mainly due to the recognition in the preceding quarter, of RM141m financing costs relating to loan facilities on two Egyptian plants, PORT SAID EAST POWER sae and SUEZ GULF POWER sae.

EPS fell to 47.47 sen from 49.84 sen and it proposed a dividend of 17.5 sen.

" .... Net Investment Income decreased mainly due to the recognition, in the corresponding quarter, of investment gains from the disposal of the Group's interest in UK-based broadcast transmission and wireless site-leasing infrastructure unit - ARQIVA amounting to RM62m.

The Company said that revenue from its power generation business rose 21% to RM693m, due to higher capacity and energy payments from its Malaysian power plants, leading to a 33% rise in the business' Operating Profit to RM265m.

Gross Sales proceeds from its numbers forecast operator business increased marginally to RM530m from RM520m, as a result of two additional draws conducted in the current quarter. " .... There was a reduction in NFO prize payout ratio from 64% to 63%. The Operating Profit of the gaming segment remained at around RM62m with an increase in totalisator expenses in the Racing Totalisator business ...." it said.

The leisure segment saw improved attendances and spending at its Tropical Islands (TI) project in Germany, as well as contributions from TGV CINEMAS sb, which became a 100%-owned unit on Jul 31, 2008, which resulted in a RM39m Revenue increase to RM74m.

Going forward, TANJONG said Group revenues and earnings would continue to benefit from the investments made to expand its power-generating activity.

The Company also added that while its other businesses " ....should generally perform in line within expectations ....", this would be subject to factors including the Malaysian government's efforts to restructure the power sector, which could impact its power generation unit, POWERTEK sb.

TANJONG also said its gaming business could be impacted by the prevailing conditions affecting discretionary spending on its gaming products and services, as well as measures taken to reduce totalisator expenses in the racing totalisator business.

On the Company's 'Tropical Islands' investment, the venture had in Apr 2009 successfully entered into Agreements with third parties who would independently finance the construction and development of vacation homes, and market the rental of these homes throughout Europe, to cover its growing market for short-term family vacations. The Agreements were conditional upon the relevant parties procuring appropriate financing to complete the project. " .... The initial phase of development is targeted for finalisation by Dec 2011, and it is expected that this will bring about a gradual increase in visitor attendances and revenue ..... However, if financing cannot be obtained, and/or if construction is significantly delayed, the Group will need to re-assess the appropriateness of the carrying value of its investment in TI ...." it said.

Perstima ... Aug 09

Perusahaan Sadur Timah Malaysia (Perstima) Bhd, whose net profit fell 4.5% year-on-year in its first quarter ended June 30, 2009 (1QFY09), has the potential to reward its shareholders with higher dividends in the future, given its cash position.

While the company did not have a stated dividend policy, it had paid out dividends of 20 sen per share annually over the last three years.

They have completed all its capacity expansion for now, and the group has cash of about RM58 million as at end of March 31, 2009.

Its 1QFY09 net profit fell 4.5% to RM9.9 million from RM10.37 million a year earlier, while revenue fell 11% to RM193.87 million from RM218.33 million mainly due to lower sales. No interim dividend was declared.

Its capacity expansion at its plants in Pasir Gudang and in Vietnam had been completed.

Perstima would continue to focus on expanding its presence in the Middle East as well as other Islamic countries, including Indonesia and Bangladesh. These countries accounted for up to 30% of Perstima’s total exports. On the domestic market, while demand had not fully recovered to pre-2007 levels, it was nevertheless gradually improving.

Perstima has equipped itself with additional facilities of producing the tinplate and tin free steel, and is well prepared to capture additional markets with competitive pricing.

The biggest problem faced by the company now was the currency controls in Vietnam, where regulators had a fixed rate for the US dollar. The rate fixed for the US dollar against the Vietnamese dong is different from the actual foreign exchange rate, and there are not enough US dollars available in Vietnam.

The company continued to explore other avenues in Vietnam, including securing payments using the Japanese yen or other currencies to circumvent the problem with payments in US dollars.

For the financial year ended March 31, 2009, Perstima posted a net profit of RM32.25 million on revenue of RM985.75 million.

Tuesday, August 4, 2009

ASW2020 / ASM / ASN3 / AS1M

The most searched phrase in Google/Yahoo by Malaysian user over the past few days should be related to "Amanah Saham 1 Malaysia" or "Amanah Saham" related.

Following are the return (%) comparison between ASW2020/ASM/ASN3.

And following are the differences between the ASW2020/ASM/ASN3/AS1M.

Hope this information is useful to all.

Related post:-
ASM & ASW2020 units - Online Top Up : update
ASM & ASW2020 units - Online Top Up available
Open an ASM (Amanah Saham Malaysia) account

UOA REIT ... Aug 09

Higher gross rental income lifted UOA REIT's Net Profit by 24.8% to RM7.5m for 2QE Jun 30, 2009 from RM6.0m a year ago.

For 1HE Jun 2009, Gross Rental improved by about 12.1% or RM2.4m, attributed mainly to the improvement in rental rates, UOA REIT said in its EXCHANGE filing on Jul 15, 2009.

The REIT declared an Income Distribution of 2.92 sen for 2QE Jun 2009, bringing its Total Income Distribution for 1HE Jun 2009 to 5.82 sen, to be paid on Aug 28, 2009. The Company said the 5.82 sen distribution comprised 4.88 sen Taxable Income and 0.94 sen Tax-Exempt Income.

Taking into consideration a 95% distribution, the trust has set aside RM7.1m as provision for income distribution, it said.

The REIT said its total income rose 3.2% to RM11.2m from RM10.9m in 2008. EPS rose to 3.07 sen in 2QE Jun 2009 from 2.46 sen in the previous corresponding period.

Total Expenditure for 2QE Jun 2009 amounted to RM3.7m, with RM2.3m attributable to property operating expenses and RM1.4m Non-Property Operating Expenses.

The REIT said Operating expenses fell 12.04%, mainly due to the non-recurrent stamping fees, professional and legal fees incurred in 1QE Mar 2009 related to the acquisition of 'Wisma UOA Pantai' in April 2008, and a reduction in borrowing costs.

1HE JUN 2009
For 1HE Jun 30, the REIT said Net Profit rose 29.7% to RM15.0m from RM11.5m a year earlier, as Revenue increased 11.8% to RM22.7m.

EPS in 1HE Jun 2009 rose to 6.12 sen from 4.71 sen a year ago. The REIT Manager said that the properties to continue enjoying reasonable occupancy and tenancy rates for the remaining part of the year. However, rental income may be affected due to the slowdown in the economy.

Leweko Resources Bhd ... Aug 09

Leweko Resources Bhd, one of Peninsular Malaysia’s largest timber concessionaires, has deferred its upstream activities and will expand its downstream operations in product range and wood species via acquisitions of existing timber operations or establishing start-ups.

The group, upon completion of the disposal of its oil palm plantation units, would have cash-in-hand of about RM15mil for new investments. However, it would remain cautious and selective in its future acquisitions, especially during the current global economic slowdown.

The have decided to stay focused as a pure timber player.

In fact, it took the group two years to evaluate and observe its latest acquisition of Kuantan-based SCK Wooden Industries Sdn Bhd for RM7.9mil cash in March 2009. After SCK, Leweko will only start looking at new acquisitions or start-ups possibly next year (2010).

While it was tough to get out of the plantation business which the group started in 2004, Chung said: “We believe we have made the right move to sell the units for about RM35.7mil cash.

On its upstream operations, Leweko had opted to defer the harvesting of its timber concessions in Perak given the weak demand and low selling prices of tropical timber products globally. This move was similar to that of other timber concessionaires, whereby many are awaiting positive signs of a global economic recovery that may bring better demand and higher prices for tropical timber products.

The profitability of many timber-based companies had been affected by the disproportionate drop in raw materials (logs) cost and selling prices of their timber products. For example, the average domestic log price has dropped about 11% this year while the selling prices of timber products are down by 20% to 25% due to weak overseas demand.

For the financial year ended Dec 31, 2008, the group posted a net loss of RM5mil on revenue of RM92.3mil.

To address the drop in the volume of the group’s traditional products to Europe, it would be broadening its exports to non-traditional markets like the Gulf states, India and North Asia.

Leweko would also come out with new products and wood species to customers in Australia and the United States, apart from Europe.

It will also intensify efforts for more international certifications of our products as the prices of certified timber products are usually much higher than the uncertified ones.

Leweko Resources Bhd ... Apr 09
Leweko ... Apr 09
Leweko Resources Bhd...July 2008

Monday, August 3, 2009

Fajar/Gamuda/IJM/WCT/Sunway/Mudajaya (LCCT) ... Aug 09

Sources say the contracts for the new main low cost carrier terminal (LCCT) building and runway works worth RM1 billion are expected to be awarded in Sept or Oct 2009.

The sources say the pre qualification bid closed late July 2009 for the biggest component of the RM2 billion project, which his scheduled to be completed by 3Q2011.

It is understood that construction works should start by year end (2009).

As for contracts, it Is publicly known that Gamuda Bhd, IJM Corp Bhd and Sunway Holdings Bhd are interested in joining the race for the LCCT job. Other potential bidders include Fajar, Mudajaya and WCT.

Bursa KLSE effective 3 Aug 2009 ... Its Implications!


Bursa Malaysia’s revised tick size structure, which will see a smaller tick size, and is planned for implementation on Monday, 3 August 2009.The tick size is the minimum price variation between the buy and sell price for a stock. The tick size is reduced in line with the current practice by global developed markets and more importantly, to create market depth, enable price discovery and boost liquidity in the local equities market.

The tables below describe the new tick size structure to be adopted by Bursa Securities.

TABLE I - New Tick Sizes for Securities Traded and Quoted On Bursa

Price Range Tick Size (Sen)
Below RM1.00 0.5
RM1.00 up to RM9.99 1
RM10.00 up to RM99.98 2
RM100.00 above 10

For bonds, debentures, loan securities, warrants and call warrants, the minimum bid structure will have the same minimum trading spreads as for shares.

The Implications …

Equity investment strategies take account of many factors, including tick sizes which are set by a stock exchange. Here is a primer on tick sizes and how investors benefit from a smaller value.

Equity investors rely a lot on research and information to forecast the potential price appreciation of a stock. This ranges from fundamental analysis of the company to a technical analysis of its historical price movements.

There is also a little known indicator known as a spread that can be used by investors to gauge the near-term movement of a particular stock. A stock’s spread is closely influenced by a “tick size”.

Understanding Spreads.
Every share that trades on the stock market has a best buy and a best sell price. The best buy price is the highest price in the order book placed by interested buyers for a specific share while the best sell price is the lowest price in the order book placed by interested sellers.

These two prices are determined by demand and supply, which can be seen as a negotiation process between two parties.

The spread is the difference between a share’s best buy and best sell price. The general belief is that a consistently large spread signals low volume for that respective stock. On the other hand, a narrow spread can indicate that a transaction will occur soon. A wider spread means that greater changes in the share’s buy or sell price is needed before a transaction can conclude.

Impact Of A Smaller Tick Size
A stock’s tick size is important as it is the minimum incremental movement in the price of a stock. A reduction in tick sizes by Bursa has several implications for retail investors.

Small tick sizes can lead to narrower spreads for a stock.

The perception that more ticks are needed for investors to cover the fixed brokerage cost for higher priced securities is not necessarily true because a smaller tick size does not mean that the price of a stock must move tick by tick. Price movements are determined by supply and demand, not tick sizes.

Short term investors can unwind their positions easily with smaller tick sizes.

Smaller spreads can increase trading opportunities and this improves liquidity.

For example, a stock with a buy/sell price of RM10 and RM10.02 suggests that buyers and sellers are very close to making a trade. If the narrow spread continues, volume for the respective share is expected to be high.

Tick Sizes in a Spread.
The magnitude of a stock spread is influenced by the tick size or the minimum tick size structure. This refers to the smallest allowable price variation between the buy and sell price of a stock. The spread of a share can narrow if the tick size is reduced.

In the past few years, many global stock exchanges reduced their permitted tick size as this initiative was found to boost liquidity and efficiency to the capital market as a whole.

The reduction of tick size is expected to attract more trading volume due to improved opportunities as investors now will have more choice of entering or exiting the market just by smaller trading ticks. In short, this reduction of tick sizes will enable price discovery, leading to a positive impact on market liquidity.

In respect to the bidding price for buying-in, the exchange will retain the 10 ticks. Arising from this, the buying-in price will be based on the current tick sizes instead of the new tick sizes to ensure that the buying-in price is attractive to potential sellers.

2. No more Second Board. A Unified Main & Second Board call Main Board.

Bursa Malaysia’s new board structure is expected to position the local bourse as a competitive capital-raising destination for both local and foreign companies.

Bursa Malaysia's current Main and Second Boards will be streamlined into a single unified board to be called Main Market and the revamped Mesdaq, which will cater companies from all sectors, will be known as "ACE Market".

The reforms are part of the new fund-raising framework to create an efficient access to capital and investments and transform Bursa Malaysia into a more attractive platform and foreign companies. Along with the new structure, there is also a significant shift in the regulatory approach with regards to listings and equity fund-raisings.

This new approach to regulation recognises a new environment in terms of diversity of investors, issuers and instruments, and is premised on stronger regulatory capabilities with more diligent surveillance of the market and greater reliance on enforcement.

Under the new Equity Guidelines, companies seeking listing under the profit track record test must have an uninterrupted aggregate net profit of at least RM20 million over the past three to five years, with a minimum net profit of RM6 million prior to listing.

However, applicants wishing to list under the market capitalisation test must have a minimum market capitalisation of RM500 million, with no prescribed minimum profit requirement.

The Equity Guidelines would include a framework for the listing of Special Purpose Acquisition Companies (SPACs). SPACs are companies with no operations that go public with the intention of merging with or acquiring operating companies or businesses with the proceeds of their IPO.

Under the new framework, the approval time for listing by SC will be reduced from the current minimum of 74 working days to 60 days.

Under the new framework, the SC's approval under section 212 of the Capital Market and Services Act will only be required for Initial Public Offerings, secondary listings and cross listings and transfer of listings from ACE market to Main Market.

3. Implementation Of New Trading Halt Rules …
Click here: tradinghalt_PO_circular

The Implications …
Bursa Malaysia is shortening the trading halt of stocks for the purpose of disseminating material announcements by listed companies will be shortened to one hour from one trading session currently.

The shorter trading halt ruling as "this will benefit listed companies as there will only be a minimal disruption of their securities from being traded".

Investors would also benefit from more trading opportunities as the suspension hours are significantly reduced.

A trading halt refers to a temporary halt in the trading of listed securities upon the release of information that has material effect on the price of the securities.

A trading halt when making material disclosure is important to enable investors adequate time to evaluate the company's announcements and make informed investment decisions.

Shortening of the halt period will enhance market efficiency as trading interruption is kept to the minimum, and both the issuer and investor will benefit from being able to trade with minimal interruptions.

The new rule is positive for the market as it allows information to come out earlier in the day "before speculation takes it to another level".

Currently (Before Aug 3), Bursa Malaysia requires listed companies to make material disclosures to the exchange and these announcements are posted on Bursa Malaysia's website, ensuring investors have continuous access to corporate information.

Meanwhile industry observers have mixed views on a new rule that shortens the trading halt of stocks for material company announcements to just one hour from a whole trading session currently.

While it is a good move and in keeping with practices in some of the more developed markets, many are also concerned that the shorter window for trades to resume may not be enough for investors to fully digest and comprehend the announcements, especially complicated ones.

The stock exchange imposes trading halts when companies release information that could have an effect on their share price. This temporary suspension is meant to give investors adequate time to evaluate the information and make informed investment decisions. With less time to digest and understand the info, investors may be too hasty in their decisions, miscalculate, and lose money in the process.

The onus will now be on the listed company to ensure that it gives out more comprehensive information that can be easily understood by investors.

It is believed that the shorter trading halt may benefit institutional investors more than it will retail ones. This is because with just a one-hour window for investors to take in a company's announcement before trade resumes, there is a chance retail investors may have missed out on the announcement altogether. Institutional investors, however, are constantly monitoring the market for material announcements and are likely to be able to react to such information faster.

Still, some developed markets have even shorter trading halts for material disclosures. Singapore practises a half-hour trading halt and Australia, between 10 minutes and 15 minutes. Hong Kong, however, halts the stock for one trading session, similar to the current practice in Malaysia.

Sunday, August 2, 2009


現在提到結婚,想到 「能撐多久」。

當初會結婚, 說是 「看上眼」;
後來會離婚, 說是 「看走眼」。

婚前, 愛情是神話;
婚後, 愛情是笑話。

男人花錢,是 為 了 讓 女 人 高 興;
女人花錢,是因為男人讓 她 不 高 興。

嫁入「豪門」 ,要懂得 理 財;
嫁入「寒門」,要懂得 生 財。

以前的人,視婚姻生活為「 一 輩 子」;
現代的人 ,視婚姻生活為 「 一 陣 子 」。

婚前 , 男人在 餐 廳 等 女 人;
婚 後, 女人在 客 廳 等 男 人。

婚前, 男人經常找女人「 討 論」;
婚後, 男人只告訴女人 「 結 論」。

婚前, 男人對她 悄 悄 講 話;
婚後, 男人對她 大 聲 講 話。

戀愛時, 情 話 綿 綿;
結婚後, 謊 話 連 連。

戀愛時的男人 , 喜歡 「 毛 手 毛 腳」;
結婚後的男人,變成「 沒 手 沒 腳」。

婚前,情侶做什麼都是 「 浪 漫」;
婚後,夫妻做什麼都是 「 浪 費 」。

想結婚,是 自 己 已能獨立;
想離婚 , 是 子 女 已 獨立。

婚前的男人,大都很 幽 默;
婚後的男人, 大都很 沉 默。

女人的記性, 吵架時最好;
男人的耐性, 結婚後最差。

戀愛時,一見面就 「 親 嘴 」;
結婚後,一見面就 「 鬥 嘴」。

婚前,男人常給女人「 空 白 支 票」;
婚後,男人常給女人「 空 頭 支 票」。

戀愛時, 生活 「 妙 不 可 言」;
結婚後,日子「 苦 不 堪 言」。

婚 前 , 男人天天盯著女人;
婚 後 , 女人天天盯著男人。

熱 戀 時 ,總相許下輩子再結良緣;
結 婚 後 ,懷 疑 上 輩 子造作孽緣。

大男人, 會 「 作 威

Saturday, August 1, 2009


One day while walking down the street a highly successful Human Resources Manager was tragically hit by a bus and she died. Her soul arrived up in heaven where she was met at the Pearly Gates by St. Peter himself.

"Welcome to Heaven," said St. Peter. "Before you get settled in though, it seems we have a problem. You see, strangely enough, we've never once had a Human Resources Manager make it this far and we're not really sure what to do with you."

"No problem, just let me in," said the woman.

"Well, I'd like to, but I have higher orders. What we're going to do is let you have a day in Hell and a day in Heaven and then you can choose whichever one you want to spend an eternity in."

"Actually, I think I've made up my mind, I prefer to stay in Heaven", said the woman

"Sorry, we have rules..."

And with that St. Peter put the executive in an elevator and it went down-down-down to hell.

The doors opened and she found herself stepping out onto the putting green of a beautiful golf course. In the distance was a country club and standing in front of her were all her friends - fellow executives that she had worked with and they were well dressed in evening owns and cheering for her. They ran up and kissed her on both cheeks and they talked about old times. They played an excellent round of golf and at night went to the country club where she enjoyed an excellent steak and lobster dinner.

She met the Devil who was actually a really nice guy (kind of cute) and she had a great time telling jokes and dancing. She was having such a good time that before she knew it, it was time to leave. Everybody shook her hand and waved goodbye as she got on the elevator.

The elevator went up-up-up and opened back up at the Pearly Gates and found St. Peter waiting for her.

"Now it's time to spend a day in heaven," he said. So she spent the next 24 hours lounging around on clouds and playing the harp and singing. She had great time and before she knew it her 24 hours were up and St. Peter came and got her.

"So, you've spent a day in hell and you've spent a day in heaven. Now you must choose your eternity,"

The woman paused for a second and then replied, "Well, I never thought I'd say this, I mean, Heaven has been really great and all, but I think I had a better time in Hell."

So St. Peter escorted her to the elevator and again she went down-down-down back to Hell.

When the doors of the elevator opened she found herself standing in a desolate wasteland covered in garbage and filth. She saw her friends were dressed in rags and were picking up the garbage and putting it in sacks.

The Devil came up to her and put his arm around her.

"I don't understand," stammered the woman, "yesterday I was here and there was a golf course and a country club and we ate lobster and we danced and had a great time. Now all there is a wasteland of garbage and all my friends look miserable."

The Devil looked at her smiled and told...

Yesterday we were recruiting you, Today you are an employee