GENTING NET PROFIT DECLINES 51% FOR 1QE MAR 2009
GENTING reported a 51.5% decline in Net Profit to RM213.1m for 1QE Mar 31, 2009 from RM439.4m a year ago. Earnings were impacted by Impairment Loss from STAR CRUISES ltd and weaker plantations performance.
In the Company's results announcements on May 28, 2009, the Company expressed concerns about the remaining period of this year as its prospects may be impacted by the uncertainty from the pace of global economic recovery. Concerns about the spread of the Influenza A (H1N1) virus (Swine Flu) might also affect consumers' sentiments and visitations to Genting Highlands Resort, it added.
For 1QE Mar 2009, GENTING's Revenue declined 4% to RM2.07 bil compared with RM2.16 bil. EPS fell to 5.77 sen from 11.87 sen.
LEISURE DIVISION RECORDS LOWER REVENUE
The Group's eisure and hospitality division recorded marginally lower revenue for 1QE Mar 2009, despite better performance from the Malaysian-based operations. Genting Highlands Resort posted higher revenue and profit due to increased volume of business. This increase was offset by the lower revenue from the UK casino operations due to the weaker UK economy.
POWER DIVISION
The power division saw its revenue rising mainly from the Kuala Langat power plant, which benefited from higher energy charges. This was offset by higher operating cost of its China-based Meizhou Wan plant, arising from higher coal prices.
PLANTATION DIVISION
The plantation division was affected by lower palm products prices and a decrease in fresh fruit bunches production.
PROPERTY DIVISION
The Property Division was impacted by the softer property market conditions.
OIL & GAS DIVISION
The Oil & Gas Division was affected by lower average prices, resulting in lower revenue and profit.
IMPAIRMENT LOSS TO INVESTMENTS
" .... The Group was also impacted by an impairment loss of RM30.4m in respect to the Group's investment in STAR CRUISES ltd, no one-off gains and lower share of profit from jointly controlled entities and associates in 1QE Dec 2009 ...." it added.
Tuesday, June 30, 2009
Monday, June 29, 2009
E&O ... Jun 09
EASTERN & ORIENTAL (E&O) Group is positioning itself to capitalise on opportunities in the next economic upturn including holding back launches to time for the upturn as well as raising capital that could be used to make opportunistic acquisitions.
ISSUE OF RM200M ICSLS
The Group's RM200m proposed 1-for-2 Irredeemable Convertible Secured Loan Stocks (ICSLS) 2009/2019 in late May 2009 is part of a two-pronged strategy to raise a total of RM500m.
ED ERIC CHAN told STARBIZWEEK reported on Jun 6, 2009 that the RM500m would strengthen the Company's balance sheet in the next two to three years by increasing cashflow and lowering gearing. The money will be used to fund developments, opportunistic acquisitions such as strategic acquisitions of landbank, and general working capital and repayment of financial obligations, etc.
IMPACT OF 2009 DOWNTURN SUDDEN
The suddenness of the economic downturn in 2008 and 2009 had impacted E&O's business and strategies CHAN said. Under current weaker conditions, the premium niche property developer is focused on managing the balance sheet rather than being only profit and loss-driven.
RM300m RAISINGS FROM DISPOSALS
In addition to the RM200m from ICSLS Issue expected to be completed by Aug 2009, RM300m will be raised from the disposal of non-strategic landbanks and cash generated from new launches. To date, it has also raised just under RM100m from the disposal of what it considers to be non-strategic landbanks including a property in the Semantan area of Kuala Lumpur from the unwinding of a joint venture with SELANGOR PROPERTIES.
As part of its value preservation strategy, E&O has been holding off launches and will only put these developments with an estimated sales value of RM4 bil into the market when the economy and demand for high-end property recovers.
FULL FYE MAR 2009 TURNS INTO NET LOSS
The Group has announced an Unaudited RM37.7m Net Loss for the FYE Mar 31, 2009 (FY09) compared with a Net Profit of RM128.9m for FY08.
The RM4 bil appears to be readily realisable when the market recovers and the upturn may be sooner than expected. The Company expects to take two to three years to reduce the high gearing it has built up during the downturn.
LAUNCH OF TWO PROJECTS IN 2009
The Company is launching two projects in 2009. These projects are the 440-unit St Mary service apartments in Kuala Lumpur near the Weld to be launched in Jul 2009 and 1,000 units of Seri Tanjung Pinang condos in Sep 2009.
The Company expects these projects to bring RM600m into the Company?s coffers.
REDUCTION IN GEARING
The estimated RM200m from the ICSLS Issue, by E&O's calculations, will bring down the Company's gearing from 0.8 times to 0.46 times, while the RM300m from landbank disposal and new launches will bring gearing down to a negligible 0.16 times.
The Company expects the takeup to be slow due to high incoming supply of high-end condos especially around KLCC over the next two to three years. St Mary's initial launch will likely be priced at an attractive RM800 per sq ft versus the KLCC secondary market price of RM800 to RM950 per sq ft, along with a 10/90 financing scheme.
UNBILLED SALES OF RM150M
The Group currently has Unbilled Sales of RM150m. HWANG-DBS says that the Company's high gearing will abate and calculates that gearing will improve to 0.53 times from 0.83 times at present.
The funds raised will also ease pressure to sell assets at distressed prices. E&O still hopes to raise RM300m from the disposal of non-strategic landbank it says.
ISSUE OF RM200M ICSLS
The Group's RM200m proposed 1-for-2 Irredeemable Convertible Secured Loan Stocks (ICSLS) 2009/2019 in late May 2009 is part of a two-pronged strategy to raise a total of RM500m.
ED ERIC CHAN told STARBIZWEEK reported on Jun 6, 2009 that the RM500m would strengthen the Company's balance sheet in the next two to three years by increasing cashflow and lowering gearing. The money will be used to fund developments, opportunistic acquisitions such as strategic acquisitions of landbank, and general working capital and repayment of financial obligations, etc.
IMPACT OF 2009 DOWNTURN SUDDEN
The suddenness of the economic downturn in 2008 and 2009 had impacted E&O's business and strategies CHAN said. Under current weaker conditions, the premium niche property developer is focused on managing the balance sheet rather than being only profit and loss-driven.
RM300m RAISINGS FROM DISPOSALS
In addition to the RM200m from ICSLS Issue expected to be completed by Aug 2009, RM300m will be raised from the disposal of non-strategic landbanks and cash generated from new launches. To date, it has also raised just under RM100m from the disposal of what it considers to be non-strategic landbanks including a property in the Semantan area of Kuala Lumpur from the unwinding of a joint venture with SELANGOR PROPERTIES.
As part of its value preservation strategy, E&O has been holding off launches and will only put these developments with an estimated sales value of RM4 bil into the market when the economy and demand for high-end property recovers.
FULL FYE MAR 2009 TURNS INTO NET LOSS
The Group has announced an Unaudited RM37.7m Net Loss for the FYE Mar 31, 2009 (FY09) compared with a Net Profit of RM128.9m for FY08.
The RM4 bil appears to be readily realisable when the market recovers and the upturn may be sooner than expected. The Company expects to take two to three years to reduce the high gearing it has built up during the downturn.
LAUNCH OF TWO PROJECTS IN 2009
The Company is launching two projects in 2009. These projects are the 440-unit St Mary service apartments in Kuala Lumpur near the Weld to be launched in Jul 2009 and 1,000 units of Seri Tanjung Pinang condos in Sep 2009.
The Company expects these projects to bring RM600m into the Company?s coffers.
REDUCTION IN GEARING
The estimated RM200m from the ICSLS Issue, by E&O's calculations, will bring down the Company's gearing from 0.8 times to 0.46 times, while the RM300m from landbank disposal and new launches will bring gearing down to a negligible 0.16 times.
The Company expects the takeup to be slow due to high incoming supply of high-end condos especially around KLCC over the next two to three years. St Mary's initial launch will likely be priced at an attractive RM800 per sq ft versus the KLCC secondary market price of RM800 to RM950 per sq ft, along with a 10/90 financing scheme.
UNBILLED SALES OF RM150M
The Group currently has Unbilled Sales of RM150m. HWANG-DBS says that the Company's high gearing will abate and calculates that gearing will improve to 0.53 times from 0.83 times at present.
The funds raised will also ease pressure to sell assets at distressed prices. E&O still hopes to raise RM300m from the disposal of non-strategic landbank it says.
HAP SENG ... Jun 09
HAP SENG'S 1QE MAR 2009 NET PROFIT DOWN 72% SAYS THAT IT WILL BEEF UP FERTILISER BUSINESS IN MALAYSIA & INDONESIA
HAP SENG recorded Net Profit of RM17.4m, or 3.09 sen per share, for 1QE Mar 31, 2009 compared with RM62m, or 11.02 sen per share, a year ago. In an EXCHANGE filing on May 29, 2009, the Company said that the drop in profit was mainly due to lower contribution from its fertiliser trading division.
TO STRENGTHEN FERTILIZER BUSINESS
The diversified Group said that it will continue to strengthen its fertiliser business in Indonesia and Malaysia while eyeing new markets in the South-East Asia region.
NO 2 IN INDONESIAN FERTILIZER BUSINESS
MD - EDWARD LEE said the Group would focus on Indonesia given its aggressive oil palm cultivation as reflected by the significant hectarage increase over the years. HAP SENG is now among the top two fertiliser suppliers in Indonesia, with warehouses and strong distribution network after just three years in operation and with about 22% market share in murate of potash (MOP) there.
In 2008, the Group supplied about 490,000 tonnes of fertiliser to Indonesia. Given the more competitive environment, especially logistics, in Indonesia, HAP SENG would normally hold over three months' fertiliser inventory for the market, LEE added.
MALAYSIAN FERTILIZER BUSINESS
In Malaysia, HAP SENG supplied about 650,000 tonnes of fertiliser in 2008 and, to date, has captured about 30% of the local MOP market.
LEE said the fundamentals for fertilisers looked good given the increasing food production globally, with the prices of most soft commodities like crude palm oil and grains, improving in 2Q-CY2009.
PROPERTY DIVISION
On its property division, HAP SENG wanted to remain as the market leader in landed property development in East Malaysia, he said, adding that new township projects in Lahad Datu and Tawau will contribute positively to the Group.
LEE said the Group also had about 2,100 acres in Sabah and over 500 acres in Sepang for its future property development projects.
On the Group's building, 'Menara Hap Seng' in Kuala Lumpur, he said the tenancy rate is very healthy with our tower block securing 97% occupancy and the podium block about 91% occupancy.
He said the Group planned to look at niche development whereby it could enhance the value of the building via refurbishment thus securing better occupancy and rental rates.
AUTO DIVISION
On HAP SENG's automotive division, LEE said the Group was targeting 30% share of the Klang Valley's Mercedes-Benz market. HAP SENG operates Mercedes-Benz dealerships in the Klang Valley through its state-of-the art Mercedes-Benz Autohaus showroom in KL and 25 Service Centers at Kinrara Industrial Park, Puchong.
The auto division is also the exclusive dealer of Mercedes-Benz vehicles and Mitsubishi Fuso trucks in Sabah and Sarawak.
PLANTATION DIVISION
As for the Group's plantation activities undertaken by its 51.55% listed subsidiary, HAP SENG PLANTATIONS HOLDINGS, LEE said they would continue to remain a major contributor to the Group's profits.
HAP SENG recorded Net Profit of RM17.4m, or 3.09 sen per share, for 1QE Mar 31, 2009 compared with RM62m, or 11.02 sen per share, a year ago. In an EXCHANGE filing on May 29, 2009, the Company said that the drop in profit was mainly due to lower contribution from its fertiliser trading division.
TO STRENGTHEN FERTILIZER BUSINESS
The diversified Group said that it will continue to strengthen its fertiliser business in Indonesia and Malaysia while eyeing new markets in the South-East Asia region.
NO 2 IN INDONESIAN FERTILIZER BUSINESS
MD - EDWARD LEE said the Group would focus on Indonesia given its aggressive oil palm cultivation as reflected by the significant hectarage increase over the years. HAP SENG is now among the top two fertiliser suppliers in Indonesia, with warehouses and strong distribution network after just three years in operation and with about 22% market share in murate of potash (MOP) there.
In 2008, the Group supplied about 490,000 tonnes of fertiliser to Indonesia. Given the more competitive environment, especially logistics, in Indonesia, HAP SENG would normally hold over three months' fertiliser inventory for the market, LEE added.
MALAYSIAN FERTILIZER BUSINESS
In Malaysia, HAP SENG supplied about 650,000 tonnes of fertiliser in 2008 and, to date, has captured about 30% of the local MOP market.
LEE said the fundamentals for fertilisers looked good given the increasing food production globally, with the prices of most soft commodities like crude palm oil and grains, improving in 2Q-CY2009.
PROPERTY DIVISION
On its property division, HAP SENG wanted to remain as the market leader in landed property development in East Malaysia, he said, adding that new township projects in Lahad Datu and Tawau will contribute positively to the Group.
LEE said the Group also had about 2,100 acres in Sabah and over 500 acres in Sepang for its future property development projects.
On the Group's building, 'Menara Hap Seng' in Kuala Lumpur, he said the tenancy rate is very healthy with our tower block securing 97% occupancy and the podium block about 91% occupancy.
He said the Group planned to look at niche development whereby it could enhance the value of the building via refurbishment thus securing better occupancy and rental rates.
AUTO DIVISION
On HAP SENG's automotive division, LEE said the Group was targeting 30% share of the Klang Valley's Mercedes-Benz market. HAP SENG operates Mercedes-Benz dealerships in the Klang Valley through its state-of-the art Mercedes-Benz Autohaus showroom in KL and 25 Service Centers at Kinrara Industrial Park, Puchong.
The auto division is also the exclusive dealer of Mercedes-Benz vehicles and Mitsubishi Fuso trucks in Sabah and Sarawak.
PLANTATION DIVISION
As for the Group's plantation activities undertaken by its 51.55% listed subsidiary, HAP SENG PLANTATIONS HOLDINGS, LEE said they would continue to remain a major contributor to the Group's profits.
Sunday, June 28, 2009
Saturday, June 27, 2009
人生 ... 被推出場
0歲被推出場，
10歲無知最樂；
20歲有知彷徨；
30歲苦因定向；
40歲為家打闖；
50歲回望老少；
60歲希望有鄉；
70歲歸去來兮；
人生七十古來稀,70以後,就是bonus,多活一時,是賺.
活要精彩,不在乎長短,
不虛此行了.
還是喜歡那話句話.
朋友不問你飛多高,
而是你飛得累不累.
10歲無知最樂；
20歲有知彷徨；
30歲苦因定向；
40歲為家打闖；
50歲回望老少；
60歲希望有鄉；
70歲歸去來兮；
人生七十古來稀,70以後,就是bonus,多活一時,是賺.
活要精彩,不在乎長短,
不虛此行了.
還是喜歡那話句話.
朋友不問你飛多高,
而是你飛得累不累.
Friday, June 26, 2009
Tien Wah ... Jun 09
Printing and consumer goods packaging company Tien Wah Press Holdings Bhd (TWPH) expects its overseas operations to contribute more than 60% to its total revenue this year.
Revenue from overseas markets increased to RM107mil last year from RM47.6mil in 2007 while those from the local operations declined to RM79mil from RM82mil.
It hoped the new exclusive supply contract with British American Tobacco (BAT) will further boost its export revenue. It secured a seven-plus three-year contract with BAT (last year) to supply all its cigarette carton needs in several countries in the Asia-Pacific region, which believe can further enhance its export revenue.
TWPH via its 100% subsidiary, Tien Wah Press (M) Sdn Bhd, also planned to make some capital expenditure in 2009 to increase the production capacity and improve efficiency.
TWPH wanted to fully use its regional manufacturing facilities in Ho Chi Minh City, Vietnam and Sydney, Australia to spearhead its business abroad.
TWPH currently exports to about 15 countries, including Myanmar, Thailand, Vietnam, New Zealand, South Korea, Taiwan as well as the Middle East.
For the financial year ended Dec 31, 2008, TWPH posted a higher pre-tax profit of RM25.1mil compared with RM16.7mil in 2007 while revenue rose to RM186mil from RM129.7mil.
Revenue from overseas markets increased to RM107mil last year from RM47.6mil in 2007 while those from the local operations declined to RM79mil from RM82mil.
It hoped the new exclusive supply contract with British American Tobacco (BAT) will further boost its export revenue. It secured a seven-plus three-year contract with BAT (last year) to supply all its cigarette carton needs in several countries in the Asia-Pacific region, which believe can further enhance its export revenue.
TWPH via its 100% subsidiary, Tien Wah Press (M) Sdn Bhd, also planned to make some capital expenditure in 2009 to increase the production capacity and improve efficiency.
TWPH wanted to fully use its regional manufacturing facilities in Ho Chi Minh City, Vietnam and Sydney, Australia to spearhead its business abroad.
TWPH currently exports to about 15 countries, including Myanmar, Thailand, Vietnam, New Zealand, South Korea, Taiwan as well as the Middle East.
For the financial year ended Dec 31, 2008, TWPH posted a higher pre-tax profit of RM25.1mil compared with RM16.7mil in 2007 while revenue rose to RM186mil from RM129.7mil.
Thursday, June 25, 2009
Kannaltex Bhd ... Jun 09
Kannaltec Bhd is demanding RM20 million from the Selangor state government as compensation for the state’s delay in allowing the company to implement broadband infrastructure services under a concession awarded in 2007.
It is also learnt that company has given the state until June 30, 2009 to settle the amount, failing which it will proceed with court action.
The company sent the letter of demand after exhausting all avenues of negotiations with state officials to allow Kannaltec to proceed to provide services at all designated sites, which they have been delaying.
If the state government does not pay the compensation, the company might also consider terminating the concession and suing the government.
Kannaltec’s subsidiary Obnet (formerly Intelligent Edge Solutions) was awarded a 20-year RM420 million concession by the Selangor state government in April 2007 to connect government offices and related agencies with a state-of-the-art broadband infrastructure, dubbed SelangorNet (SelNet).
The infrastructure was to connect all of the state’s government departments, statutory bodies, municipal councils, local authorities and government-linked companies, and is aimed at enabling these organisations to utilise voice, video and data services. The network was also to support applications such as video-conferencing, surveillance monitoring and disaster recovery.
Obnet was to design, install, operate and maintain a data centre and all broadband-related services at 345 designated state government offices. It is learnt, however, that only 32 sites have been connected so far since the concession was awarded.
The Kannaltec official said the Pakatan Rakyat state administration was delaying the implementation of the broadband infrastructure and that Kannaltec was losing money invested in equipment.
The previous (Barisan Nasional) administration wanted to modernise the connectivity of the government and related agencies when it awarded the concession. But the current administration is not moving fast enough.
Kannaltec has three main business units, namely logistic informatics, shared services and outsourcing and e-government services.
For the financial year ended March 31, 2009 (FY09), Kannaltec posted a net loss of RM3.71 million compared to a net profit RM3.6 million in FY08, but revenue rose to RM21.13 million from RM17 million.
It is also learnt that company has given the state until June 30, 2009 to settle the amount, failing which it will proceed with court action.
The company sent the letter of demand after exhausting all avenues of negotiations with state officials to allow Kannaltec to proceed to provide services at all designated sites, which they have been delaying.
If the state government does not pay the compensation, the company might also consider terminating the concession and suing the government.
Kannaltec’s subsidiary Obnet (formerly Intelligent Edge Solutions) was awarded a 20-year RM420 million concession by the Selangor state government in April 2007 to connect government offices and related agencies with a state-of-the-art broadband infrastructure, dubbed SelangorNet (SelNet).
The infrastructure was to connect all of the state’s government departments, statutory bodies, municipal councils, local authorities and government-linked companies, and is aimed at enabling these organisations to utilise voice, video and data services. The network was also to support applications such as video-conferencing, surveillance monitoring and disaster recovery.
Obnet was to design, install, operate and maintain a data centre and all broadband-related services at 345 designated state government offices. It is learnt, however, that only 32 sites have been connected so far since the concession was awarded.
The Kannaltec official said the Pakatan Rakyat state administration was delaying the implementation of the broadband infrastructure and that Kannaltec was losing money invested in equipment.
The previous (Barisan Nasional) administration wanted to modernise the connectivity of the government and related agencies when it awarded the concession. But the current administration is not moving fast enough.
Kannaltec has three main business units, namely logistic informatics, shared services and outsourcing and e-government services.
For the financial year ended March 31, 2009 (FY09), Kannaltec posted a net loss of RM3.71 million compared to a net profit RM3.6 million in FY08, but revenue rose to RM21.13 million from RM17 million.
CBIP ... Jun 09
It is looking to grow the size of its plantation landbank at an annual rate of 10% to 20% to generate a more stable income in the oil palm business segment in the long run.
Its land acquisition would quite likely be in Indonesia, where a bulk of its engineering business was based.
Currently, its landbank totals about 14,000 hectares, all of which are in Sarawak. As of March 31, 2009, its cash and cash equivalents stood at RM17.78 million with a gearing ratio of about 0.3 times.
It will try to gear up a little bit more and further expand the business.
CBIP was looking at both new and existing plantations but added that it was tougher to acquire brownfields as it required intensive capital.
At the moment, plantations contribute 20% to 30% to the group’s profit.
For the first quarter ended March 31, 2009, CBIP’s net profit declined 8% to RM8.13 million from RM8.85 million a year earlier, due to the poor performance in the plantation segment resulting from the lower average selling price of fresh fruit bunches.
Revenue rose 17.6% to RM77.02 million from RM65.48 million previously due to the additional sales generated by a newly acquired oil palm plantation and the improvement in project billing.
On its engineering side, it was seeing a steady growth. The group’s order book now totalled RM300 million and soon to rise to RM350 million, which would last it until the first quarter of 2011.
The company was looking to buy back more of its shares after carrying out a series of such buybacks in the second half of 2008. It spent RM5.74 million to acquire about 1.2% of the company’s paid-up capital in 2008.
Related post:-
CBIP ... Feb 2009
Its land acquisition would quite likely be in Indonesia, where a bulk of its engineering business was based.
Currently, its landbank totals about 14,000 hectares, all of which are in Sarawak. As of March 31, 2009, its cash and cash equivalents stood at RM17.78 million with a gearing ratio of about 0.3 times.
It will try to gear up a little bit more and further expand the business.
CBIP was looking at both new and existing plantations but added that it was tougher to acquire brownfields as it required intensive capital.
At the moment, plantations contribute 20% to 30% to the group’s profit.
For the first quarter ended March 31, 2009, CBIP’s net profit declined 8% to RM8.13 million from RM8.85 million a year earlier, due to the poor performance in the plantation segment resulting from the lower average selling price of fresh fruit bunches.
Revenue rose 17.6% to RM77.02 million from RM65.48 million previously due to the additional sales generated by a newly acquired oil palm plantation and the improvement in project billing.
On its engineering side, it was seeing a steady growth. The group’s order book now totalled RM300 million and soon to rise to RM350 million, which would last it until the first quarter of 2011.
The company was looking to buy back more of its shares after carrying out a series of such buybacks in the second half of 2008. It spent RM5.74 million to acquire about 1.2% of the company’s paid-up capital in 2008.
Related post:-
CBIP ... Feb 2009
Wednesday, June 24, 2009
Vastalux ... Jun 09
It plans to bid for oil and gas projects worth US$50mil to US$100mil (RM176.5mil to RM353mil) in Saudi Arabia when its proposed joint-venture company with partners from that country is set up by the third quarter 2009.
The projects would be in hook-up and commissioning, topside maintenance, minor fabrication and onshore construction.
They are also in the process of bidding for contracts in Indonesia worth about US$20mil to US$40mil (RM70.6mil to RM141.2mil) and completing a land purchase in Vietnam as part of its overseas business expansion plans.
Currently, the group’s major businesses in offshore and onshore hook-up and commissioning and onshore facilities maintenance contributed 85% to 90% to its revenue.
Currently, the group was handling close to RM100mil worth of contracts for offshore construction.
The group was currently tendering for local projects worth RM700mil from oil majors such as Petroliam Nasional Bhd and Shell, said Azman, adding that it expected a success rate of about 30% or about RM210mil of jobs.
Vastalux managed to reduce its debt in 2008 and with current projects that can last until 2010, the company is doing well.
The company reported slightly improved profit before tax margin to 11.4% in FY08 from 10.9% in FY07 while its borrowings declined 24.5% to RM72.9mil against RM96.5mil previously.
Vastalux registered a net profit of RM18.8mil in FY08, a 76% increase from FY07. Its revenue rose 30% to RM186mil.
Vastalux reported net profit of RM2.76mil on revenue of RM58.48mil in its first quarter ended March 31.
Related post:-
IPO: Vastalux EnergyVastalux ... Mar 09
The projects would be in hook-up and commissioning, topside maintenance, minor fabrication and onshore construction.
They are also in the process of bidding for contracts in Indonesia worth about US$20mil to US$40mil (RM70.6mil to RM141.2mil) and completing a land purchase in Vietnam as part of its overseas business expansion plans.
Currently, the group’s major businesses in offshore and onshore hook-up and commissioning and onshore facilities maintenance contributed 85% to 90% to its revenue.
Currently, the group was handling close to RM100mil worth of contracts for offshore construction.
The group was currently tendering for local projects worth RM700mil from oil majors such as Petroliam Nasional Bhd and Shell, said Azman, adding that it expected a success rate of about 30% or about RM210mil of jobs.
Vastalux managed to reduce its debt in 2008 and with current projects that can last until 2010, the company is doing well.
The company reported slightly improved profit before tax margin to 11.4% in FY08 from 10.9% in FY07 while its borrowings declined 24.5% to RM72.9mil against RM96.5mil previously.
Vastalux registered a net profit of RM18.8mil in FY08, a 76% increase from FY07. Its revenue rose 30% to RM186mil.
Vastalux reported net profit of RM2.76mil on revenue of RM58.48mil in its first quarter ended March 31.
Related post:-
IPO: Vastalux EnergyVastalux ... Mar 09
UEM Land Holdings Bhd ... Jun 09
UEM Land Holdings Bhd announced that its Sales and Purchase Agreement (SPA) with Damac Properties Sdn Bhd for the sale of approximately 17.416 hectares in Puteri Harbour, Nusajaya has lapsed.
UEM World Bhd's subsidiary, UEM Land Bhd, had signed the deal with Damac Properties for the sale of the land in Puteri Harbour, Nusajaya, for RM396 million cash. Under the terms of the deal, the period for fulfillment of its conditions precedent shall expire upon expiry of the Extended Approval Period or 12 months from the date of the SPA, unless otherwise extended by mutual agreement of the parties.
The parties have been in discussions on certain issues relating to the conditions precedent and a possible extension of the Extended Approval Period.
UEM Land received notification from Damac stating that they were not agreeable to extending the approval period. With that, the SPA had lapsed and had no further effect whatsoever.
Meanwhile UEM Land Bhd, the master developer of Nusajaya, is in talks with three foreign parties on possible strategic partnerships for its Puteri Harbour project. The company hoped to conclude the deals this year (2009).
Spanning over 688 acres, the Puteri Harbour waterfront development consists of high-end residential, commercial and retail properties, resorts, hotels and a convention centre.
The group would proceed with all its development plans regardless of the weakening economy.
Unlike more established property developers, UEM Land could not afford to defer its projects as this would have a severe impact on its medium-term growth.
Related post:-
UEM Land ... Nov 2008
UEM Land ... Jan 2009
UEM Land ... Feb 2009
MRCB/UEM Land ... May 09
UEM World Bhd's subsidiary, UEM Land Bhd, had signed the deal with Damac Properties for the sale of the land in Puteri Harbour, Nusajaya, for RM396 million cash. Under the terms of the deal, the period for fulfillment of its conditions precedent shall expire upon expiry of the Extended Approval Period or 12 months from the date of the SPA, unless otherwise extended by mutual agreement of the parties.
The parties have been in discussions on certain issues relating to the conditions precedent and a possible extension of the Extended Approval Period.
UEM Land received notification from Damac stating that they were not agreeable to extending the approval period. With that, the SPA had lapsed and had no further effect whatsoever.
Meanwhile UEM Land Bhd, the master developer of Nusajaya, is in talks with three foreign parties on possible strategic partnerships for its Puteri Harbour project. The company hoped to conclude the deals this year (2009).
Spanning over 688 acres, the Puteri Harbour waterfront development consists of high-end residential, commercial and retail properties, resorts, hotels and a convention centre.
The group would proceed with all its development plans regardless of the weakening economy.
Unlike more established property developers, UEM Land could not afford to defer its projects as this would have a severe impact on its medium-term growth.
Related post:-
UEM Land ... Nov 2008
UEM Land ... Jan 2009
UEM Land ... Feb 2009
MRCB/UEM Land ... May 09
Tuesday, June 23, 2009
Bstead ... Jun 09
Khazanah Nasional Bhd and BStead will be teaming up with Mexican theme park operator , Kidzania, to build a theme park in the Klang Valley.
Khazanah and Bstead are looking to sign the development deal end of June 2009 and seem likely to take up substantial stakes in the project.
Although the exact location for the theme park is unknown, sources say it could be around Mutiara Damansara, where Bstead has existing developments.
Properties under the group in Mutiara Damansara include 18ha of development land, a few office buildings and the Curve shopping centre.
Kidzania, which targets children from the ages of 2 to 14, as based on replicas of a real city, enabling children to gain an understanding of the adult world by experiencing up to 70 different professions.
The inception of the project in Malaysia could boost Bstead’s property development arm and increase the value of its properties in Mutiara Damansara.
It could also revive Bstead’s fortunes, which have been declining. Its gearing ratio is 1.2 times.
As at March 31, 2009, the company’s cash and cash equivalents stood at Rm585 million.
Recently, it proposed a renounceable rights issue to be used for working capital, to defray expenses incurred for the proposal and to repay borrowings.
Khazanah and Bstead are looking to sign the development deal end of June 2009 and seem likely to take up substantial stakes in the project.
Although the exact location for the theme park is unknown, sources say it could be around Mutiara Damansara, where Bstead has existing developments.
Properties under the group in Mutiara Damansara include 18ha of development land, a few office buildings and the Curve shopping centre.
Kidzania, which targets children from the ages of 2 to 14, as based on replicas of a real city, enabling children to gain an understanding of the adult world by experiencing up to 70 different professions.
The inception of the project in Malaysia could boost Bstead’s property development arm and increase the value of its properties in Mutiara Damansara.
It could also revive Bstead’s fortunes, which have been declining. Its gearing ratio is 1.2 times.
As at March 31, 2009, the company’s cash and cash equivalents stood at Rm585 million.
Recently, it proposed a renounceable rights issue to be used for working capital, to defray expenses incurred for the proposal and to repay borrowings.
Monday, June 22, 2009
QL RESOURCES ... Jun 09
QL RESOURCES' Net Profit for 4QE Mar 31, 2009 declined 10.5% to RM18.8m from RM21.1m a year ago due to lower margins from its surimi (semi-processed raw fish paste) and decrease in catch from deep sea fishing activities.
Revenue grew 3.8% to RM319.2m from RM331.8m. For the full FYE Mar 2009, Net Profit rose to RM89.3m from RM80.8m in FY08, while Revenue increased to RM1.4 bil from RM1.31 bil.
EPS rose to 27.19 sen from 24.49 sen a year earlier.
FINAL DIVIDEND DECLARED
The Company proposed a Final Dividend of seven sen per ordinary share of 50 sen each.
OPERATIONS OVERVIEW
In an EXCHANGE filing on May 21, 2009, the Company said sales for its marine products manufacturing division increased 10% y-o-y due to higher contribution from its surimi-based products.
Its integrated livestock activities also registered a 10% increase in sales due to higher unit value of animal feed raw materials in the earlier quarters.
The Company's palm oil activities registered a 11% decrease in sales due to lower crude palm oil prices.
Revenue grew 3.8% to RM319.2m from RM331.8m. For the full FYE Mar 2009, Net Profit rose to RM89.3m from RM80.8m in FY08, while Revenue increased to RM1.4 bil from RM1.31 bil.
EPS rose to 27.19 sen from 24.49 sen a year earlier.
FINAL DIVIDEND DECLARED
The Company proposed a Final Dividend of seven sen per ordinary share of 50 sen each.
OPERATIONS OVERVIEW
In an EXCHANGE filing on May 21, 2009, the Company said sales for its marine products manufacturing division increased 10% y-o-y due to higher contribution from its surimi-based products.
Its integrated livestock activities also registered a 10% increase in sales due to higher unit value of animal feed raw materials in the earlier quarters.
The Company's palm oil activities registered a 11% decrease in sales due to lower crude palm oil prices.
Sunday, June 21, 2009
人生
能牽手的時候, 請別只是肩並肩; 能擁抱的時候, 請別只是手牽手; 能在一起的時候, 請別輕易分開!
人生吧，0歲出場，10歲快樂成長；20為情彷徨；30基本定向；40拚命打闖；50回頭望望；60告老還鄉；70搓搓麻將；80曬曬太陽； 90躺在床上；100掛在牆上...
生的偉大, 死得淒涼! 能牽手的時候, 請別只是肩並肩; 能擁抱的時候, 請別只是手牽手; 能在一起的時候, 請別輕易分開！
這週是世界好友週，如果你願意, 請把這條信息發給你所有的好朋友, 也包括我. 看有多少人會回發給你. 當大部分人都在關注你飛得高不高時, 只有少部分人關心你飛得累不累, 這就是友情... 再忙也要照顧好自己, 朋友雖不常聯繫卻一直惦念！世界好友週快樂！
2009新概念
一個中心： 一切以健康為中心。
兩個基本點：遇事瀟灑一點，看事糊塗一點。
三個忘記： 忘記年齡，忘記過去，忘記恩怨。
四個擁有： 無論你有多弱或多強, 一定要擁有真正愛你的人, 擁有知心朋友, 擁有向上的事業, 擁有溫暖的住所。
五個要： 要唱，要跳，要俏，要笑，要苗條。
六個不能： 不能餓了纔吃, 不能渴了纔喝, 不能困了纔睡, 不能累了纔歇, 不能病了纔檢查，不能老了再後悔!
人生吧，0歲出場，10歲快樂成長；20為情彷徨；30基本定向；40拚命打闖；50回頭望望；60告老還鄉；70搓搓麻將；80曬曬太陽； 90躺在床上；100掛在牆上...
生的偉大, 死得淒涼! 能牽手的時候, 請別只是肩並肩; 能擁抱的時候, 請別只是手牽手; 能在一起的時候, 請別輕易分開！
這週是世界好友週，如果你願意, 請把這條信息發給你所有的好朋友, 也包括我. 看有多少人會回發給你. 當大部分人都在關注你飛得高不高時, 只有少部分人關心你飛得累不累, 這就是友情... 再忙也要照顧好自己, 朋友雖不常聯繫卻一直惦念！世界好友週快樂！
2009新概念
一個中心： 一切以健康為中心。
兩個基本點：遇事瀟灑一點，看事糊塗一點。
三個忘記： 忘記年齡，忘記過去，忘記恩怨。
四個擁有： 無論你有多弱或多強, 一定要擁有真正愛你的人, 擁有知心朋友, 擁有向上的事業, 擁有溫暖的住所。
五個要： 要唱，要跳，要俏，要笑，要苗條。
六個不能： 不能餓了纔吃, 不能渴了纔喝, 不能困了纔睡, 不能累了纔歇, 不能病了纔檢查，不能老了再後悔!
Saturday, June 20, 2009
Different between Direct account and Nominee account
Ever wonder whether your CDS account is Direct or Nominee?
When you open a trading account directly with a Participating Organisation(Broker or Investment Banks,in short,PO and IB) or through a commercial bank,you will also be required to open a CDS account at the same time.
By opening a CDS account,you are creating an account with Bursa Depositories Sdn Bhd through the PO. Bursa Depositories Sdn Bhd is a subsidiary of Bursa Malaysia Bhd which does all the share debiting and crediting in respect of shares listed in Malaysia.
To illustrate,when you buy 100 units of Public bank from the open market,on T+2,Bursa Depositories Sdn Bhd will do the debiting of the 100 units of Public Bank shares from the seller's CDS and credit it to your CDS account.Henceforth,there will be 100 units PBB shares in your CDS account until it is debited from your CDS account for whatever reasons.
If there is any corporate exercise such as bonus issue,share split etc,the crediting of the new shares arising from the exercise is also done by Bursa Depositories Sdn Bhd in collaboration with the company's share registrar.
A monthly statement will be posted to all depositors who did transactions during the month.If there is no transaction,then a half yearly statement will be sent to you.
When a trading account is opened with a PO,the CDS account that is opened at the same time consists of two types,either a Direct CDS or a Nominee CDS.A Direct CDS is under your own name and address,whereas a Nominee CDS is under the PO's name and address with specific description that you are the beneficial owner(eg. HLG Nominees (Tempatan)Sdn Bhd for account Lee Ah Kaw).The exact description of the name and address will be used in the Share Registrar's record of share holders.
Now you understand why so many investors complained that they are not receiving annual reports,dividends ,rights issue form etc from the investee companies.It is because the CDS account opened is a Nominee CDS account and all letters are sent to the PO's office.PO charged a service fee for handling the rights issue,dividend etc.
Why then some PO want their clients to open Nominee CDS?
The simple answer is for collateral purpose.Shares in Direct CDS account is under your direct control and you can request to transfer out the shares to another CDS account of your name, or to your family members' CDS account with proper documentary evidence,without any hindrance.But if you ever wish to transfer out the shares in the Nominees CDS account,the consent of the PO is required although it's your shares.
Typically,most online broking that offers cheap brokerage requires your share to be kept under Nominee CDS account.
CASH / DIRECT ACCOUNT
1. Direct individual account
2. CDS (stock) is held under client’s name
3. Entitle apply for IPO
4. Entitle for dividend and any voucher issue by company
5. Annual Report received
There are four distinct disadvantages of using a Nominee CDS:
1. CDS (stock) is held under company’s name.
2. Not entitle to apply for IPO. You can't use a Nominee CDS to apply for IPO(initial public offers);
3. Entitle for dividend but not any voucher issue by company.
4. No Annual Report received.
5. if you wished to attend the AGM of the investee company,you must get the PO to appoint you as a proxy;
6. if you wished to transfer out shares from your Nominee CDS to your relative's CDS ,you must first transfer the share from Nominee CDS to your Direct CDS ,then proceed to transfer the share to your relative's CDS .Whereas for shares in Direct CDS,there is only one step where you transfer direct from your CDS to your relative's CDS;.This apply to transfers that entail change of beneficial ownership.(edited on 27/02/09 to correct an earlier fundamental error.)
7. POs charge you a service fee for all dividends received and paper works done such as accepting rights issue or other corporate exercise that involve filling up of forms.
If you have a choice,opt for Direct CDS since Nominee CDS is of no benefit to you at all.
When you open a trading account directly with a Participating Organisation(Broker or Investment Banks,in short,PO and IB) or through a commercial bank,you will also be required to open a CDS account at the same time.
By opening a CDS account,you are creating an account with Bursa Depositories Sdn Bhd through the PO. Bursa Depositories Sdn Bhd is a subsidiary of Bursa Malaysia Bhd which does all the share debiting and crediting in respect of shares listed in Malaysia.
To illustrate,when you buy 100 units of Public bank from the open market,on T+2,Bursa Depositories Sdn Bhd will do the debiting of the 100 units of Public Bank shares from the seller's CDS and credit it to your CDS account.Henceforth,there will be 100 units PBB shares in your CDS account until it is debited from your CDS account for whatever reasons.
If there is any corporate exercise such as bonus issue,share split etc,the crediting of the new shares arising from the exercise is also done by Bursa Depositories Sdn Bhd in collaboration with the company's share registrar.
A monthly statement will be posted to all depositors who did transactions during the month.If there is no transaction,then a half yearly statement will be sent to you.
When a trading account is opened with a PO,the CDS account that is opened at the same time consists of two types,either a Direct CDS or a Nominee CDS.A Direct CDS is under your own name and address,whereas a Nominee CDS is under the PO's name and address with specific description that you are the beneficial owner(eg. HLG Nominees (Tempatan)Sdn Bhd for account Lee Ah Kaw).The exact description of the name and address will be used in the Share Registrar's record of share holders.
Now you understand why so many investors complained that they are not receiving annual reports,dividends ,rights issue form etc from the investee companies.It is because the CDS account opened is a Nominee CDS account and all letters are sent to the PO's office.PO charged a service fee for handling the rights issue,dividend etc.
Why then some PO want their clients to open Nominee CDS?
The simple answer is for collateral purpose.Shares in Direct CDS account is under your direct control and you can request to transfer out the shares to another CDS account of your name, or to your family members' CDS account with proper documentary evidence,without any hindrance.But if you ever wish to transfer out the shares in the Nominees CDS account,the consent of the PO is required although it's your shares.
Typically,most online broking that offers cheap brokerage requires your share to be kept under Nominee CDS account.
CASH / DIRECT ACCOUNT
1. Direct individual account
2. CDS (stock) is held under client’s name
3. Entitle apply for IPO
4. Entitle for dividend and any voucher issue by company
5. Annual Report received
There are four distinct disadvantages of using a Nominee CDS:
1. CDS (stock) is held under company’s name.
2. Not entitle to apply for IPO. You can't use a Nominee CDS to apply for IPO(initial public offers);
3. Entitle for dividend but not any voucher issue by company.
4. No Annual Report received.
5. if you wished to attend the AGM of the investee company,you must get the PO to appoint you as a proxy;
6. if you wished to transfer out shares from your Nominee CDS to your relative's CDS ,you must first transfer the share from Nominee CDS to your Direct CDS ,then proceed to transfer the share to your relative's CDS .Whereas for shares in Direct CDS,there is only one step where you transfer direct from your CDS to your relative's CDS;.This apply to transfers that entail change of beneficial ownership.(edited on 27/02/09 to correct an earlier fundamental error.)
7. POs charge you a service fee for all dividends received and paper works done such as accepting rights issue or other corporate exercise that involve filling up of forms.
If you have a choice,opt for Direct CDS since Nominee CDS is of no benefit to you at all.
Friday, June 19, 2009
Tasek ... Jun 09
Cement producer Tasek Corporation Bhd has emerged a stronger player in the industry with a shot at expansion into the building material segment with the recent changes in shareholding which saw Hong Leong Asia Ltd (HLA) taking more than a 70% stake in the former.
The acquisition creates synergistic benefits for both parties. Their combination has created the synergy whereby HLA will become stronger by having its in-house cement manufacturing arm and Tasek will be able to ride on HLA’s broad network in expanding into the building material industry.
HLA, a Singaporean-based regional manufacturing and distribution group, has an integrated building material division spanning the region but lacked a cement manufacturing company. Tasek is an integrated cement manufacturer in Malaysia. HLA acquired Tasek late 2008.
In April 2008, HLA had injected some S$323.5 million (RM777 million) worth of assets into Tasek in exchange for 212.249 million new shares in the company at an issue price of RM3.54 per share.
This effectively brought HLA’s direct shareholding in Tasek to 57.84% from 9.33% while its collective shareholdings with its subsidiaries increased to 68.34% from 31.92% previously.
Subsequently, HLA, through its wholly owned subsidiary Hartwell Pte Ltd, then launched a conditional takeover offer for Tasek’s remaining shares in November 2008 for RM3.80 per share. However, HLA’s bid to take Tasek private failed with it only achieving an eventual shareholding of 72.63% in the company.
Tasek has a manufacturing plant in Perak with a production capacity of 2.3 million tonnes with a 90% utilisation rate. It also has a total of 12 batching plants with total capacity of 160,000 cubic metres.
With such a rate of growth, Tasek is able to achieve full operating capacity in three to four years times.
The acquisition by HLA had enhanced Tasek’s competitiveness in the local market. With the invaluable support, experience and network of HLA, Tasek is believed to be able to expand into the building material segment at a faster pace.
Financial Results … For the first quarter ended March 31, 2009 (FY09), Tasek’s net profit dropped 10% to RM13.58 million from RM15.07 million a year earlier. Revenue, however, rose 21.6% to RM129.17 million from 106.24 million previously.
Earnings declined due to lower production and sales volume as well as higher operating cost arising from major plant maintenance. The 1QFY09 results excluded a portion of the profit of associates with effect from Feb 19, 2009 as a result of its acceptance of a proposal by an existing shareholder to acquire its equity in the associates.
The acquisition creates synergistic benefits for both parties. Their combination has created the synergy whereby HLA will become stronger by having its in-house cement manufacturing arm and Tasek will be able to ride on HLA’s broad network in expanding into the building material industry.
HLA, a Singaporean-based regional manufacturing and distribution group, has an integrated building material division spanning the region but lacked a cement manufacturing company. Tasek is an integrated cement manufacturer in Malaysia. HLA acquired Tasek late 2008.
In April 2008, HLA had injected some S$323.5 million (RM777 million) worth of assets into Tasek in exchange for 212.249 million new shares in the company at an issue price of RM3.54 per share.
This effectively brought HLA’s direct shareholding in Tasek to 57.84% from 9.33% while its collective shareholdings with its subsidiaries increased to 68.34% from 31.92% previously.
Subsequently, HLA, through its wholly owned subsidiary Hartwell Pte Ltd, then launched a conditional takeover offer for Tasek’s remaining shares in November 2008 for RM3.80 per share. However, HLA’s bid to take Tasek private failed with it only achieving an eventual shareholding of 72.63% in the company.
Tasek has a manufacturing plant in Perak with a production capacity of 2.3 million tonnes with a 90% utilisation rate. It also has a total of 12 batching plants with total capacity of 160,000 cubic metres.
With such a rate of growth, Tasek is able to achieve full operating capacity in three to four years times.
The acquisition by HLA had enhanced Tasek’s competitiveness in the local market. With the invaluable support, experience and network of HLA, Tasek is believed to be able to expand into the building material segment at a faster pace.
Financial Results … For the first quarter ended March 31, 2009 (FY09), Tasek’s net profit dropped 10% to RM13.58 million from RM15.07 million a year earlier. Revenue, however, rose 21.6% to RM129.17 million from 106.24 million previously.
Earnings declined due to lower production and sales volume as well as higher operating cost arising from major plant maintenance. The 1QFY09 results excluded a portion of the profit of associates with effect from Feb 19, 2009 as a result of its acceptance of a proposal by an existing shareholder to acquire its equity in the associates.
Thursday, June 18, 2009
HSL ... Jun 09
Sarawak-based infrastructure specialist HOCK SENG LEE's Net Profit rose 6.2% to RM10.4m for 1QE Mar 31, 2009 from RM9.8m a year earlier due to a 20% rise in revenue to RM77.8m.
PBT rose 5.7% to RM13.9m from RM13.2m a year earlier, while basic EPS rose to 1.9 sen from 1.77 sen.
NO DIVIDEND DECLARED
No dividend was declared.
" .... Although the first quarter is traditionally a little slower for the industry with the festive break and the rainy season, we have returned very commendable results and the impact of our large order book can be seen with a 20% increase in our revenue on a comparison with last year ...." said Group Chairman Senator IDRIS BUANG on May 19, 2009 in a statement.
WASTEWATER PROJECT
He said the Group's major wastewater project for Kuching was currently underway and the company was investing in specialised machinery required for the sewage works. He said package 1, pilot project for the city centre and treatment plant, was expected to continue over the next four years.
OUTSTANDING ORDER BOOK
IDRIS said with a record value of projects in hand of RM1.7 bil of which RM1.2 billion was outstanding, HSL was expecting a busy year ahead.
Related post:-
HSL ... May 09
PBT rose 5.7% to RM13.9m from RM13.2m a year earlier, while basic EPS rose to 1.9 sen from 1.77 sen.
NO DIVIDEND DECLARED
No dividend was declared.
" .... Although the first quarter is traditionally a little slower for the industry with the festive break and the rainy season, we have returned very commendable results and the impact of our large order book can be seen with a 20% increase in our revenue on a comparison with last year ...." said Group Chairman Senator IDRIS BUANG on May 19, 2009 in a statement.
WASTEWATER PROJECT
He said the Group's major wastewater project for Kuching was currently underway and the company was investing in specialised machinery required for the sewage works. He said package 1, pilot project for the city centre and treatment plant, was expected to continue over the next four years.
OUTSTANDING ORDER BOOK
IDRIS said with a record value of projects in hand of RM1.7 bil of which RM1.2 billion was outstanding, HSL was expecting a busy year ahead.
Related post:-
HSL ... May 09
Wednesday, June 17, 2009
MAXIS/Astro/Measat ... Jun 09
Maxis Communications Bhd has denied reports that the company is to be relisted this year (2009) after going private two years ago. “It was just rumours,” chief executive officer Sandip Das said without elaborating.
RAM Rating Services Bhd had placed a negative outlook on Binariang GSM’s RM19bil Islamic medium-term notes programme, RM2bil Islamic commercial papers programme and RM3bil cumulative non-convertible Islamic junior sukuk due to growing concerns over the performance of Aircel. Binariang GSM is an investment holding company that had facilitated the privatisation of Maxis.
We are concerned that intensifying competitive pressures will continue to erode Aircel’s profitability and cash flows in the short to medium term, particularly as it accelerates its capital expansion programme in a bid to expand its market reach.
The accelerated rollout plan was expected to be funded with a considerable amount of debt (beyond RAM Rating’ initial expectations), which would affect the group’s debt protection level in the short to medium term.
RAM Rating also said efforts were being made by the management to get cash injection from shareholders on a staggered basis.
Speculation on the relisting of Maxis Communications Bhd, which was taken private two years ago (2007), persisted.
Industry sources indicate that Maxis may be seeking a relisting, possibly as early as September 2009.
There was a “high likelihood” that Maxis would be relisted soon, citing funding requirements at its Indian operations, Aircel Ltd, which reportedly needs some US$5 billion (RM17.5 billion) over the next three years.
Maxis will position itself as a “high-dividend yielding stock” and be listed without its operations in India and Indonesia that are still incurring start-up losses. Estimates that Maxis’ market capitalisation could potentially be between RM32 billion and RM40 billion, making it one of the five largest on Bursa Malaysia.
Both the boards of Maxis and Astro denied merger talks, describing reports of Maxis being injected into Astro as “unfounded”, “totally without basis” and “highly speculative”.
Both CIMB and Macquarie do not see Maxis’ relisting to take place via a merger with Astro.
Meanwhile, Maxis’ relisting could cap the upside for both Axiata Group Bhd and DiGi.Com Bhd as institutions are likely to reallocate funds to Maxis.. On the other hand, Maxis’ re-emergence may be negative for DiGi, due to its poor trading liquidity, and Telekom Malaysia Bhd (TM), which has the smallest market capitalisation among listed telecommunications operators.
Going Forward …
Maxis Bhd’s Indian mobile operations need fresh capital infusion from its shareholders to achieve its pan-Indian ambition, the question is, what will billionaire Ananda Krishnan choose to do next?
Management has represented that efforts are underway to obtain equity support in the form of cash injection from shareholders that would be available to the group on a staggered basis over a few years.
RAM said when it put the debt papers of Maxis’ holding company, Binariang GSM Sdn Bhd, on negative rating watch on concerns that its near term cash flow could be strained as it accelerates spending to expand its market reach in India.
Based on Indian news reports, Aircel Ltd will need US$5 billion for investment over the next three years (2010 – 2012). In March 2009, Maxis’s group CEO said that half of the US$10 billion worth of investments earmarked for Aircel had been spent thus far.
At present, Ananda controls 75% of Binariang GSM, which owns 100% of MAXIS and 49% of PT Natrindo telepon Selular. Maxis owns 74% of Aircel, while the rest is held by the Chennai based Reddy family, which controls Apollo Hospitals Enterprises Ltd and owns stakes in private power companies.
Binariang GSM has about Rm24 billion worth of debt while Maxis was relatively ungeared upoin its privatization in 2007.
It is not immediately known if the US$5 billion earmarked investment includes potential spending on a 3G spectrum. It was reported that Aircel is interested in bidding when the auction takes place. Aircel might need the 3G spectrum, given that most of its spectrum is on the GSM 1800 band.
Is there enough evidence to support rumours that Maxis will soon be refloated? Is the timing right for Maxis to be refloated in 2009? Would refloating Maxis via a merger with Astro or Measat enhance the attraction of the enlarged entity to investors?
Currently, Measat’s earnings are bogged down by high finance costs and depreciation charges, while a merger with Maxis will mean that Astro could rule itself out of a partnership with Maxis’ rivals.
Consider the mismatch in the three companies’ market capitalization: Masat, which has a market cap of just under Rm800 million. Astro’s marker cap stood at Rm6.2 billion as a June 2009. Maxis could command a market cap of between Rm28 billion and RM40 billion, but the numbers could vary, depending on the amount of debt Maxis would be carrying in its books.
Could the rational be as simple as aiming to be the largest capitalization stock on Bursa.
Does it actually make sense for Ananda to float Maxis’ Malaysian operations at this juncture when its cash flow it the only source supporting the financial obligations of some Rm24 billion of debt Binariang GSM Sdn Bhd took on to finance Maxis’ privatization in 2007
Then, there is also the possibility that more debt may be taken as some US$5 billion is needed to fund its 74% owned Indian unit, Aircel unit, over the next three years (2010-2012).
What would happen to Binariang GSM Sdn Bhd debt rating, which was put on negative rating watch on June 4, 2009, should Maxis Malaysia be floated?
If only Maxis’ domestic operations are floated and the entity is positioned as a high dividend yielding stock at a time when Aircel still needs substantial funding, does it not defeat the purpose of its privatization in 2007. Maxis was using over Rm1 billion cash a year to pay dividends in FY2005 and FY2006, almost half of the RM2 billion in annual operational free cash flow it was generating that could be used to help fund Aircel.
The largest tranche of Binariang GSM’s debt is a Rm19 billion IMTN maturing on Dec 28, 2027. The debt paper’s financing terms do not allow consolidated debt to equity ratio to exceed two times and finance service cover ratio needs to be kept at least 1.75 times for the first five years (end 2012). This may be why fresh capital needs to be injected by its shareholders. RAM says efforts are being made to get Binariang GSM shareholders to provide staggered basis cash injections over several years to preserve the entity’s debt protection ratio even as Aircel continues expanding in India.
In 2007, RAM expects cash flow from Maxis’s Malaysia operations to continue anchoring Binariang GSM’s cash flow through the year ended Dec 2012, although the acceleration in Aircel’s expansion could mean India could begin contributing positively sooner than expected.
Assuming Maxis Malaysia is able to command a Rm40 billion market ca[ its owners would need to divest 40% of Maxis to raise Rm16 billion, the same amount with which Ananda bought out Maxis’ minorities in July 2007.
No doubt, Saudi Telecom Company Ltd, which now owns 25% of Binariang GSM and 51% of PT Natrindo Telepon Selular, did chip in US$3.05 billion. But with the additional stakeholder and the time and hard work that had been put in Maxis, as a group, would nee to command a much higher valuation when it is eventually floated.
Moreover, Maxis has not been behaving like a company that is going for an IPO. It keeps information on its performance close to its chest.
RAM Rating Services Bhd had placed a negative outlook on Binariang GSM’s RM19bil Islamic medium-term notes programme, RM2bil Islamic commercial papers programme and RM3bil cumulative non-convertible Islamic junior sukuk due to growing concerns over the performance of Aircel. Binariang GSM is an investment holding company that had facilitated the privatisation of Maxis.
We are concerned that intensifying competitive pressures will continue to erode Aircel’s profitability and cash flows in the short to medium term, particularly as it accelerates its capital expansion programme in a bid to expand its market reach.
The accelerated rollout plan was expected to be funded with a considerable amount of debt (beyond RAM Rating’ initial expectations), which would affect the group’s debt protection level in the short to medium term.
RAM Rating also said efforts were being made by the management to get cash injection from shareholders on a staggered basis.
Speculation on the relisting of Maxis Communications Bhd, which was taken private two years ago (2007), persisted.
Industry sources indicate that Maxis may be seeking a relisting, possibly as early as September 2009.
There was a “high likelihood” that Maxis would be relisted soon, citing funding requirements at its Indian operations, Aircel Ltd, which reportedly needs some US$5 billion (RM17.5 billion) over the next three years.
Maxis will position itself as a “high-dividend yielding stock” and be listed without its operations in India and Indonesia that are still incurring start-up losses. Estimates that Maxis’ market capitalisation could potentially be between RM32 billion and RM40 billion, making it one of the five largest on Bursa Malaysia.
Both the boards of Maxis and Astro denied merger talks, describing reports of Maxis being injected into Astro as “unfounded”, “totally without basis” and “highly speculative”.
Both CIMB and Macquarie do not see Maxis’ relisting to take place via a merger with Astro.
Meanwhile, Maxis’ relisting could cap the upside for both Axiata Group Bhd and DiGi.Com Bhd as institutions are likely to reallocate funds to Maxis.. On the other hand, Maxis’ re-emergence may be negative for DiGi, due to its poor trading liquidity, and Telekom Malaysia Bhd (TM), which has the smallest market capitalisation among listed telecommunications operators.
Going Forward …
Maxis Bhd’s Indian mobile operations need fresh capital infusion from its shareholders to achieve its pan-Indian ambition, the question is, what will billionaire Ananda Krishnan choose to do next?
Management has represented that efforts are underway to obtain equity support in the form of cash injection from shareholders that would be available to the group on a staggered basis over a few years.
RAM said when it put the debt papers of Maxis’ holding company, Binariang GSM Sdn Bhd, on negative rating watch on concerns that its near term cash flow could be strained as it accelerates spending to expand its market reach in India.
Based on Indian news reports, Aircel Ltd will need US$5 billion for investment over the next three years (2010 – 2012). In March 2009, Maxis’s group CEO said that half of the US$10 billion worth of investments earmarked for Aircel had been spent thus far.
At present, Ananda controls 75% of Binariang GSM, which owns 100% of MAXIS and 49% of PT Natrindo telepon Selular. Maxis owns 74% of Aircel, while the rest is held by the Chennai based Reddy family, which controls Apollo Hospitals Enterprises Ltd and owns stakes in private power companies.
Binariang GSM has about Rm24 billion worth of debt while Maxis was relatively ungeared upoin its privatization in 2007.
It is not immediately known if the US$5 billion earmarked investment includes potential spending on a 3G spectrum. It was reported that Aircel is interested in bidding when the auction takes place. Aircel might need the 3G spectrum, given that most of its spectrum is on the GSM 1800 band.
Is there enough evidence to support rumours that Maxis will soon be refloated? Is the timing right for Maxis to be refloated in 2009? Would refloating Maxis via a merger with Astro or Measat enhance the attraction of the enlarged entity to investors?
Currently, Measat’s earnings are bogged down by high finance costs and depreciation charges, while a merger with Maxis will mean that Astro could rule itself out of a partnership with Maxis’ rivals.
Consider the mismatch in the three companies’ market capitalization: Masat, which has a market cap of just under Rm800 million. Astro’s marker cap stood at Rm6.2 billion as a June 2009. Maxis could command a market cap of between Rm28 billion and RM40 billion, but the numbers could vary, depending on the amount of debt Maxis would be carrying in its books.
Could the rational be as simple as aiming to be the largest capitalization stock on Bursa.
Does it actually make sense for Ananda to float Maxis’ Malaysian operations at this juncture when its cash flow it the only source supporting the financial obligations of some Rm24 billion of debt Binariang GSM Sdn Bhd took on to finance Maxis’ privatization in 2007
Then, there is also the possibility that more debt may be taken as some US$5 billion is needed to fund its 74% owned Indian unit, Aircel unit, over the next three years (2010-2012).
What would happen to Binariang GSM Sdn Bhd debt rating, which was put on negative rating watch on June 4, 2009, should Maxis Malaysia be floated?
If only Maxis’ domestic operations are floated and the entity is positioned as a high dividend yielding stock at a time when Aircel still needs substantial funding, does it not defeat the purpose of its privatization in 2007. Maxis was using over Rm1 billion cash a year to pay dividends in FY2005 and FY2006, almost half of the RM2 billion in annual operational free cash flow it was generating that could be used to help fund Aircel.
The largest tranche of Binariang GSM’s debt is a Rm19 billion IMTN maturing on Dec 28, 2027. The debt paper’s financing terms do not allow consolidated debt to equity ratio to exceed two times and finance service cover ratio needs to be kept at least 1.75 times for the first five years (end 2012). This may be why fresh capital needs to be injected by its shareholders. RAM says efforts are being made to get Binariang GSM shareholders to provide staggered basis cash injections over several years to preserve the entity’s debt protection ratio even as Aircel continues expanding in India.
In 2007, RAM expects cash flow from Maxis’s Malaysia operations to continue anchoring Binariang GSM’s cash flow through the year ended Dec 2012, although the acceleration in Aircel’s expansion could mean India could begin contributing positively sooner than expected.
Assuming Maxis Malaysia is able to command a Rm40 billion market ca[ its owners would need to divest 40% of Maxis to raise Rm16 billion, the same amount with which Ananda bought out Maxis’ minorities in July 2007.
No doubt, Saudi Telecom Company Ltd, which now owns 25% of Binariang GSM and 51% of PT Natrindo Telepon Selular, did chip in US$3.05 billion. But with the additional stakeholder and the time and hard work that had been put in Maxis, as a group, would nee to command a much higher valuation when it is eventually floated.
Moreover, Maxis has not been behaving like a company that is going for an IPO. It keeps information on its performance close to its chest.
Tuesday, June 16, 2009
PPB ... Jun 09
PPB GROUP's Net Profit fell 29% to RM271.8m for 1QE Mar 31, 2009 from RM383.1m a year ago due to higher raw material costs incurred by the sugar refining and flour and milling divisions.
In the Company filing on May 19, 2009, PPB said its associate company, WILMAR INTERNATIONAL ltd (Singapore) contributed RM255m to the Group.
Revenue was RM772.5m, down 4% from RM808.8m while EPS was 22.93 sen against 32.32 sen a year ago. The Company said that the decline in its Revenue was due to lower revenue recorded by the flour and animal feed milling, chemicals trading and property investment divisions.
PERFORMANCE TO BE NEGATIVE FOR REST OF 2009
" .... The global financial and economic crisis is expected to affect the Group's performance for the rest of 2009 in respect of lower demand and margins for the goods and services offered by the Group .... In addition, changes in prices of raw materials and ocean freight will be the key factors affecting the Group's profitability. However, Group performance for the year (2009) will still remain satisfactory ...." it said.
In the Company filing on May 19, 2009, PPB said its associate company, WILMAR INTERNATIONAL ltd (Singapore) contributed RM255m to the Group.
Revenue was RM772.5m, down 4% from RM808.8m while EPS was 22.93 sen against 32.32 sen a year ago. The Company said that the decline in its Revenue was due to lower revenue recorded by the flour and animal feed milling, chemicals trading and property investment divisions.
PERFORMANCE TO BE NEGATIVE FOR REST OF 2009
" .... The global financial and economic crisis is expected to affect the Group's performance for the rest of 2009 in respect of lower demand and margins for the goods and services offered by the Group .... In addition, changes in prices of raw materials and ocean freight will be the key factors affecting the Group's profitability. However, Group performance for the year (2009) will still remain satisfactory ...." it said.
Monday, June 15, 2009
AXIATA ... Jun 09
Mobile phone operator - AXIATA GROUP (formerly TM INTERNATIONAL) reported a sharp drop for 1QE Mar 31, 2009 Net Profit to RM63.9m from RM498m last year. The sharp fall in Net Profit was due to weaker overseas operations and forex losses. Revenue was up 5.4% to RM2.87 bil.
AXIATA - a GLC - which owns mobile assets in Indonesia, Sri Lanka and India, said its annual results would be in line with key performance indicators (KPIs) announced Apr 2009 but analysts have said the KPIs, which include 4-6 per cent growth in EBITDA (earnings before interest, tax, depreciation and amortisation), were lower than expected.
TRANSLATION LOSSES
The Company said the Ringgit's moves against regional currencies hit its translated revenue, which would otherwise have grown by 7.7%.
AXIATA's LISTING RAISED RM5.25 BIL TO FUND PURCHASE OF OVERSEAS TELCOs
AXIATA raised RM5.25 bil from shareholders in Apr 2009 to reduce debt and fund its fast-expanding overseas operations. AXIATA has controlling stakes in Indonesia's EXCELCOMINDO and Sri Lanka's DIALOG TELEKOM. In Jul 2009, it bought a 15% stake in IDEA CELLULAR - India's fifth-largest mobile operator, for about USD1.5 bil (RM5.32 billion).
A REUTERS report May 19, 2009 said that analysts believe that AXIATA offers good long-term growth potential given its exposure to growing Asian mobile markets, but its near-term earnings outlook is expected to remain volatile due to currency swings and regional political risk.
AXIATA - a GLC - which owns mobile assets in Indonesia, Sri Lanka and India, said its annual results would be in line with key performance indicators (KPIs) announced Apr 2009 but analysts have said the KPIs, which include 4-6 per cent growth in EBITDA (earnings before interest, tax, depreciation and amortisation), were lower than expected.
TRANSLATION LOSSES
The Company said the Ringgit's moves against regional currencies hit its translated revenue, which would otherwise have grown by 7.7%.
AXIATA's LISTING RAISED RM5.25 BIL TO FUND PURCHASE OF OVERSEAS TELCOs
AXIATA raised RM5.25 bil from shareholders in Apr 2009 to reduce debt and fund its fast-expanding overseas operations. AXIATA has controlling stakes in Indonesia's EXCELCOMINDO and Sri Lanka's DIALOG TELEKOM. In Jul 2009, it bought a 15% stake in IDEA CELLULAR - India's fifth-largest mobile operator, for about USD1.5 bil (RM5.32 billion).
A REUTERS report May 19, 2009 said that analysts believe that AXIATA offers good long-term growth potential given its exposure to growing Asian mobile markets, but its near-term earnings outlook is expected to remain volatile due to currency swings and regional political risk.
Maybank ... Jun 09
MAYBANK 3QE MAR 2009 NET PROFIT DOWN BY 32%
MAYBANK reported 3QE Mar 31, 2009 Net Profit lower by 32% from the previous quarter and Gross NPLs in its international units were 22% higher.
9ME MAR 2009 RESULTS
For 9ME Jun 2009, MAYBANK recorded a core Net Profit of RM1.7 bil ? a 24% decline from the previous corresponding period.
The lacklustre performance was largely due to a 22% fall in Non-Interest Income and a 32% jump in Loan-Loss Provisioning in its international units.
MAYBANK's results are the worst by a Malaysian bank since the start of the economic crisis nine months ago and could be a sign of the times, heralding bleaker conditions for most companies and financial institutions.
MAYBANK's PROBLEMS & PRICEY ACQUISITIONS
This time in 2008, the problem wasn't falling revenue but grappling with the increasingly higher costs of doing business, following increasing material and fuel prices. Now, it is the collapse in global demand which has impacted different sectors differently.
MAYBANK has more complicated problems said a BUSINESS TIMES SINGAPORE report of May 19, 2009 which said that the Bank had lost much of its lustre following dubious investments in Pakistan and its pricey acquisition of BANK INTERNASIONAL INDONESIA after it acquired over 65% of the Indonesian bank at close to 4 times its Book Value.
MASSIVE RIGHTS ISSUE
A massive Rights Issue ? a 9-for-20 issue at RM2.74 apiece ? to help part-fund the Indonesian purchase further annoyed investors as it would mean earnings dilution going forward. AMSEARCH RESEARCH said that " .... We see stock performance capped by weaker performance of its overseas operations while pricey acquisitions would push ROEs (returns on equity) lower for the next few years ....".
DOMESTIC OPERATIONS
The Bank's domestic operations, which account for 67% of Gross Loans, remained in good shape. Gross NPLs for the Bank's domestic operations actually fell 3.1 per cent to RM5.7 bil q-o-q.
INTERNATIONAL OPERATIONS FARED DISMALLY
The Bank's international units ? in Pakistan, Vietnam and Indonesia ? fared dismally: NPLs surged 22% to RM1.14 bil. Overall Net NPLs actually improved 1.8% in Mar from 1.7 per cent last Dec 2008.
MANAGEMENT REMAINS UPBEAT
MAYBANK's management seemed upbeat, suggesting that all impairment reviews on its international units would be completed by Jun 2009. AMSEARCH suggested otherwise, predicting further impairment losses at MAYBANK's Pakistani unit as ' .... its performance has been below expectations ....".
Related post:-
Maybank....dated May 2008
MAYBANK reported 3QE Mar 31, 2009 Net Profit lower by 32% from the previous quarter and Gross NPLs in its international units were 22% higher.
9ME MAR 2009 RESULTS
For 9ME Jun 2009, MAYBANK recorded a core Net Profit of RM1.7 bil ? a 24% decline from the previous corresponding period.
The lacklustre performance was largely due to a 22% fall in Non-Interest Income and a 32% jump in Loan-Loss Provisioning in its international units.
MAYBANK's results are the worst by a Malaysian bank since the start of the economic crisis nine months ago and could be a sign of the times, heralding bleaker conditions for most companies and financial institutions.
MAYBANK's PROBLEMS & PRICEY ACQUISITIONS
This time in 2008, the problem wasn't falling revenue but grappling with the increasingly higher costs of doing business, following increasing material and fuel prices. Now, it is the collapse in global demand which has impacted different sectors differently.
MAYBANK has more complicated problems said a BUSINESS TIMES SINGAPORE report of May 19, 2009 which said that the Bank had lost much of its lustre following dubious investments in Pakistan and its pricey acquisition of BANK INTERNASIONAL INDONESIA after it acquired over 65% of the Indonesian bank at close to 4 times its Book Value.
MASSIVE RIGHTS ISSUE
A massive Rights Issue ? a 9-for-20 issue at RM2.74 apiece ? to help part-fund the Indonesian purchase further annoyed investors as it would mean earnings dilution going forward. AMSEARCH RESEARCH said that " .... We see stock performance capped by weaker performance of its overseas operations while pricey acquisitions would push ROEs (returns on equity) lower for the next few years ....".
DOMESTIC OPERATIONS
The Bank's domestic operations, which account for 67% of Gross Loans, remained in good shape. Gross NPLs for the Bank's domestic operations actually fell 3.1 per cent to RM5.7 bil q-o-q.
INTERNATIONAL OPERATIONS FARED DISMALLY
The Bank's international units ? in Pakistan, Vietnam and Indonesia ? fared dismally: NPLs surged 22% to RM1.14 bil. Overall Net NPLs actually improved 1.8% in Mar from 1.7 per cent last Dec 2008.
MANAGEMENT REMAINS UPBEAT
MAYBANK's management seemed upbeat, suggesting that all impairment reviews on its international units would be completed by Jun 2009. AMSEARCH suggested otherwise, predicting further impairment losses at MAYBANK's Pakistani unit as ' .... its performance has been below expectations ....".
Related post:-
Maybank....dated May 2008
Sunday, June 14, 2009
The cycle of missing goes like this in Malaysia
Get Vietnamese workers, dogs missing.
Get Bangladeshi workers, Malay girls missing.
Get Indonesian workers, money missing.
Get Indian workers, jewellery missing.
Get Chinese workers, husbands missing.
The new additions:
Call the police, the evidence goes missing,
Call the lawyers, the judge goes missing,
Call the ministry of transport, the reports go missing
Change the government, funds go missing,
Say something and you may be missing.
Get Bangladeshi workers, Malay girls missing.
Get Indonesian workers, money missing.
Get Indian workers, jewellery missing.
Get Chinese workers, husbands missing.
The new additions:
Call the police, the evidence goes missing,
Call the lawyers, the judge goes missing,
Call the ministry of transport, the reports go missing
Change the government, funds go missing,
Say something and you may be missing.
Saturday, June 13, 2009
My new router - Belkin
My 3COM router power just die off after used for 3 years, brought on 2006, make me no choice to look for a new router. This time, I'm decided to look for 3 in 1 router, ADSL + Router + wireless, instead of just router, my existing ADSL modem will keep as a backup.
After search through a few brands, the most expensive one is still 3COM brand, other brand like DLINK, Aztech price are reasonable, between RM150 - 200.
When I decided to purchase DLINK, I was introduce to a brand name call BELKIN, 54Mbps WL ADSL Modem/Router (F5D7634AK4). BELKIN is new brand to me, but after some research, it was not new, this is a US brand, this brand is already in malaysia for sometime.
AVF is the distributor of Belkin products in Malaysia.
AV Future Link Sdn. Bhd.
No 23A, Jalan 5/152,
Taman Perindustrian O.U.G,
Jalan Puchong, 58200
Kuala Lumpur, Malaysia
Hunting Line: 603-77830011
Fax: 603-77813833
Belkin router come with 4 ports and 1 antena, Standard IEEE 802.12g.
It's name "G Wireless Modem Router", Basic Home Connectivity.
G stand for GOOD. The interpretion from the box is Good signal within your house range.
One thing which make me to buy this brand, is LIFETIME WARRANTY, with 1 to 1 exchange, which only cost me @ RM229.
Belkin Tech Malaysia support: 03-7783 3010.
Toll free Line: 1 800 812 076
So far this is my comments after used for 2 weeks:-
Pros:-
- Easy to Install/Setup.
- Speed: normal.
- Signal within range of my house.
- Router Heat: reasonable. (standing type of router).
- Reasonable price with Lifetime warranty. :)
Cons:-
- 3 times lost internet connection.
So far I have rebooted (soft and hard) the rounter 3 times, because internet connection was disconnected. I suspect this could due to the broadband service provider.
- Wireless signal is within house range.
I noticed this router signal is weaker compare with my previous 3COM signal. But it does not impact if you use it within your double storey house. When I'm in upstair, the signal is 35%.
Friday, June 12, 2009
RHB Capital ... Jun 09
The credit bubble that burst in the Middle East seems to have impacted the local banking industry as well, after a domestic bank is understood to have been caught in a default of an Islamic debt issue recently.
It is learnt that RHB Capital Bhd (RHBCap), the fourth-largest banking group in the country, may face possible losses from a default of a US$100 million (RM350 million) sukuk that was issued by leading Kuwaiti Islamic investment firm, Investment Dar Co.
RHB Bank Bhd, via its Islamic unit RHB Islamic Bank Bhd, had subscribed to US$25 million of the sukuk, but the papers defaulted as the Kuwaiti Islamic investment firm scrambled to restructure its debts.
It is understood that under the restructuring plan, up to US$15 million of the sukuk subscribed by RHB Islamic Bank would be secured. This means that the bank would still be exposed to the remaining US$10 million that had defaulted.
Meanwhile, on a separate matter, the Employees’ Provident Fund (EPF), which owns 57% stake in RHBCap, was still expected to pare down its stake in the banking group. The EPF would still be required to pare down its holdings in RHBCap, but the exercise was not likely to happen this year (2009), given the global economic downturn that would not give the banking group good valuations.
They are writing a letter to Bank Negara Malaysia to seek a time extension to do so.
The EPF sold a 25% stake to Abu Dhabi Commercial Bank (ADCB) more than a year ago. The pension fund, which owned 82.2% stake in RHBCap prior to its stake sale to ADCB, had to pare down its stake to 35% by end-June last year (2008), in compliance with the central bank’s regulations on institutional investors’ shareholding in banking and financial institutions.
In 2008, the EPF said it wanted to keep a 40% stake in RHBCap and had sought Bank Negara’s permission to do so. However, this means the EPF would still have to pare down 12% stake in the banking group.
It is learnt that RHB Capital Bhd (RHBCap), the fourth-largest banking group in the country, may face possible losses from a default of a US$100 million (RM350 million) sukuk that was issued by leading Kuwaiti Islamic investment firm, Investment Dar Co.
RHB Bank Bhd, via its Islamic unit RHB Islamic Bank Bhd, had subscribed to US$25 million of the sukuk, but the papers defaulted as the Kuwaiti Islamic investment firm scrambled to restructure its debts.
It is understood that under the restructuring plan, up to US$15 million of the sukuk subscribed by RHB Islamic Bank would be secured. This means that the bank would still be exposed to the remaining US$10 million that had defaulted.
Meanwhile, on a separate matter, the Employees’ Provident Fund (EPF), which owns 57% stake in RHBCap, was still expected to pare down its stake in the banking group. The EPF would still be required to pare down its holdings in RHBCap, but the exercise was not likely to happen this year (2009), given the global economic downturn that would not give the banking group good valuations.
They are writing a letter to Bank Negara Malaysia to seek a time extension to do so.
The EPF sold a 25% stake to Abu Dhabi Commercial Bank (ADCB) more than a year ago. The pension fund, which owned 82.2% stake in RHBCap prior to its stake sale to ADCB, had to pare down its stake to 35% by end-June last year (2008), in compliance with the central bank’s regulations on institutional investors’ shareholding in banking and financial institutions.
In 2008, the EPF said it wanted to keep a 40% stake in RHBCap and had sought Bank Negara’s permission to do so. However, this means the EPF would still have to pare down 12% stake in the banking group.
Thursday, June 11, 2009
L&G ... Jun 09
Land & General Bhd, which had more than half a billion ringgit in accumulated losses, has proposed a five-into-one share capital reduction.
The proposed par value reduction would involve cancelling 80 sen of the par value of the shares of RM1 each. The reduction of 80 sen from each existing L&G Share will give rise to a credit of approximately up to RM536.01 million which will be utilised to eliminate the company’s accumulated losses as at March 31, 2009.
The exercise included the 71.710 million redeemable convertible secured loan stocks A and B (RCSLS) issued by L&G which may be converted into 71.710 million new L&G shares of RM1 each. The RCSLS were issued on July 30, 2003 and would mature between five and seven years from the date of issue.
Assuming that 71.710 million RCSLS were converted into 71.710 million new L&G shares of RM1 each prior to the proposed par value reduction, the company’s paid-up would increase to 670 million shares from the existing RM598.3 million of 598.3 million RM1 shares.
In this event, the proposed par value reduction will involve the reduction of the issued and paid-up ordinary share capital of L&G from up to RM670.01 million comprising 670.01 million L&G shares of RM1 each down to RM134.003 million comprising 670.01 million L&G shares of 20 sen each, by cancelling 80 sen of the par value of each existing L&G share in issue.
The proposed par value reduction would involve cancelling 80 sen of the par value of the shares of RM1 each. The reduction of 80 sen from each existing L&G Share will give rise to a credit of approximately up to RM536.01 million which will be utilised to eliminate the company’s accumulated losses as at March 31, 2009.
The exercise included the 71.710 million redeemable convertible secured loan stocks A and B (RCSLS) issued by L&G which may be converted into 71.710 million new L&G shares of RM1 each. The RCSLS were issued on July 30, 2003 and would mature between five and seven years from the date of issue.
Assuming that 71.710 million RCSLS were converted into 71.710 million new L&G shares of RM1 each prior to the proposed par value reduction, the company’s paid-up would increase to 670 million shares from the existing RM598.3 million of 598.3 million RM1 shares.
In this event, the proposed par value reduction will involve the reduction of the issued and paid-up ordinary share capital of L&G from up to RM670.01 million comprising 670.01 million L&G shares of RM1 each down to RM134.003 million comprising 670.01 million L&G shares of 20 sen each, by cancelling 80 sen of the par value of each existing L&G share in issue.
Wednesday, June 10, 2009
ChangHuat ... Jun 09
A maker of plastic parts which recently diversified into oil and gas sector, said it plans to boost its oil storage capacity in Tanjung Pelepas within next two years.
It is negotiating for more oil and gas related contracts with two international oil majors, and it aims to be a major oil storage operator in the country.
The company slipped into the red last year with a RM11.7 million net loss, from RM889,000 net profit in the previous year. Its net loss widened to RM7.5 million in the first nine months to March this year, compared with RM2.3 million in the same period last year.
In Sept 2008, it moved into the oil and gas industry after spending RM45 million cash to buy a 63 per cent stake in a privately-owned storage provider. The company it bought has a five-year contract till September 2012 to service Swiss-based Glencore International, a major oil supplier in the world.
It is negotiating for more oil and gas related contracts with two international oil majors, and it aims to be a major oil storage operator in the country.
The company slipped into the red last year with a RM11.7 million net loss, from RM889,000 net profit in the previous year. Its net loss widened to RM7.5 million in the first nine months to March this year, compared with RM2.3 million in the same period last year.
In Sept 2008, it moved into the oil and gas industry after spending RM45 million cash to buy a 63 per cent stake in a privately-owned storage provider. The company it bought has a five-year contract till September 2012 to service Swiss-based Glencore International, a major oil supplier in the world.
Tuesday, June 9, 2009
Naim ... Jun 09
Construction company Naim Holdings Bhd is eyeing major infrastructure and property development projects in Sarawak Corridor of Renewable Energy (SCORE).
Naim was in talks with state agencies and other interested parties on several development proposals within SCORE. However, discussions are still at the preliminary stage.
SCORE will be driven by the development of Sarawak’s abundant hydro and coal resources to generate electricity to power energy-intensive industries, like alunimium smelters, to be set up with the regional economic development belt.
Sarawak is now building the proposed Murum dam – which could generate about 900MW - in the upper Rejang Basin in central Sarawak. Murum is located upstream of the on-going Bakun hydroelectric dam project capable of generating up to 2,400MW.
Several other hydro dam projects have also been planned in the upper reaches of the Rejang River.
Six major road projects, with a combined length of 403km, within SCORE would be built. The design for the access road from Jalan Bakun extended to Murum has been completed while other proposed access roads are still being designed.
Meanwhile, Naim was close to securing two road projects worth RM250mil in Sarawak. The projects are funded by the federal government under the stimulus package.
Naim had an outstanding net order book of RM2.5bil that could keep the group busy in the next five years. Its ongoing projects include a RM630mil contract from Syarikat Perumahan Negara Sdn Bhd to build some 5,000 residential homes in Kuching, Samarahan and Miri divisions, the RM310mil Bengoh dam near here, RM150mil phase one, Kuching flood mitigation project in Matang (the entire project is estimated to cost RM1.6bil), a RM188mil road project in Sibu and the proposed RM90mil Sarawak Islamic Centre project.
Naim posted a group net profit of RM83mil on a turnover of RM524mil for the financial year ended Dec 31, 2008 compared with RM80mil and RM646mil respectively in 2007.
For the first quarter ended March 31, Naim chalked up a group net profit of RM17mil on revenue of RM95mil.
Naim’s 36%-owned Dayang Enterprise Holdings Bhd contributed RM22mil in net profit to the group last year.
Naim was in talks with state agencies and other interested parties on several development proposals within SCORE. However, discussions are still at the preliminary stage.
SCORE will be driven by the development of Sarawak’s abundant hydro and coal resources to generate electricity to power energy-intensive industries, like alunimium smelters, to be set up with the regional economic development belt.
Sarawak is now building the proposed Murum dam – which could generate about 900MW - in the upper Rejang Basin in central Sarawak. Murum is located upstream of the on-going Bakun hydroelectric dam project capable of generating up to 2,400MW.
Several other hydro dam projects have also been planned in the upper reaches of the Rejang River.
Six major road projects, with a combined length of 403km, within SCORE would be built. The design for the access road from Jalan Bakun extended to Murum has been completed while other proposed access roads are still being designed.
Meanwhile, Naim was close to securing two road projects worth RM250mil in Sarawak. The projects are funded by the federal government under the stimulus package.
Naim had an outstanding net order book of RM2.5bil that could keep the group busy in the next five years. Its ongoing projects include a RM630mil contract from Syarikat Perumahan Negara Sdn Bhd to build some 5,000 residential homes in Kuching, Samarahan and Miri divisions, the RM310mil Bengoh dam near here, RM150mil phase one, Kuching flood mitigation project in Matang (the entire project is estimated to cost RM1.6bil), a RM188mil road project in Sibu and the proposed RM90mil Sarawak Islamic Centre project.
Naim posted a group net profit of RM83mil on a turnover of RM524mil for the financial year ended Dec 31, 2008 compared with RM80mil and RM646mil respectively in 2007.
For the first quarter ended March 31, Naim chalked up a group net profit of RM17mil on revenue of RM95mil.
Naim’s 36%-owned Dayang Enterprise Holdings Bhd contributed RM22mil in net profit to the group last year.
Monday, June 8, 2009
AIC ... Jun 09
Semiconductor manufacturer AIC Corporation Bhd is looking at expanding its capacity amid a recovering semiconductor industry to keep up with growing demand for its products.
AIC was looking at spending some RM10 million for the semiconductor division for FY09. The division spent about RM8.7 million last year.
The additional capex would go into installing new lines and equipment to expand the manufacturing capacity for its quad flat non-leaded (QFN) package by 50%. The QFN is its fastest-growing product and was the biggest contributor, of about 30%, to FY08’s revenue of RM126.472 million. Net loss for FY08 doubled to RM7.36 million from a net loss of RM3.08 million in FY07.
Financial Results …
For the first quarter ended March 31, 2009 (1Q09), its net loss narrowed marginally to RM1.931 million from RM1.936 million a year earlier. Revenue slipped 25% to RM23.074 million from RM30.719 million a year earlier.
This was due to the decline in revenue contribution from the semiconductor division, which resulted from a weak overall demand caused by the economic downturn. The slide was partly offset by the revenue contribution from the precision tooling and automation division, which was acquired in the fourth quarter last year (2008).
Notwithstanding the current economic crisis, AIC Group has been a loss-making company since 2003.
AIC was looking at spending some RM10 million for the semiconductor division for FY09. The division spent about RM8.7 million last year.
The additional capex would go into installing new lines and equipment to expand the manufacturing capacity for its quad flat non-leaded (QFN) package by 50%. The QFN is its fastest-growing product and was the biggest contributor, of about 30%, to FY08’s revenue of RM126.472 million. Net loss for FY08 doubled to RM7.36 million from a net loss of RM3.08 million in FY07.
Financial Results …
For the first quarter ended March 31, 2009 (1Q09), its net loss narrowed marginally to RM1.931 million from RM1.936 million a year earlier. Revenue slipped 25% to RM23.074 million from RM30.719 million a year earlier.
This was due to the decline in revenue contribution from the semiconductor division, which resulted from a weak overall demand caused by the economic downturn. The slide was partly offset by the revenue contribution from the precision tooling and automation division, which was acquired in the fourth quarter last year (2008).
Notwithstanding the current economic crisis, AIC Group has been a loss-making company since 2003.
Sunday, June 7, 2009
stressed （壓力），與 desserts （甜點）
曾在報上看過
英文中的stressed （壓力），與 desserts （甜點）兩字，
有很微妙的相關。是什麼相關呢？
仔細一瞧，好像沒什麼關係嘛！
可是，再看一下，咦，
stressed 這個字從後面倒過來拼寫，不就是 desserts 嗎？
所以，「Stressed is just desserts if you can reverse. 」
（壓力就是甜點，只要你能逆向觀看。）
哈，這真是有趣的妙論呀！
人生之中，有許多「壓力、挫折」，
但只要轉個念、換個角度看，
它也就是我們生命中的「甜點」呀！
此外，也有人說：
「人生就像一碗飯，一半是甜的，一半是苦的，
你不知道會先吃到哪一邊，但終究必須把飯吃完。」
是呀，生命有甜、有苦、有酸、也有辣；
但都必須去經歷它、走過它呀！
有一個小學老師在偏遠的鄉里教書，
這天，他來到自己班上的教室，
問班上的小朋友：「你們大家有沒有討厭的人啊」
小朋友們想了想，有的未作聲，有的則猛力地點點頭。
老師接著便發給每人一個袋子，說：
「我們來玩一個遊戲。現在大家想想看，過去這一 週，
曾有那些人得罪過你他到底做了怎麼樣可惡的事想到後，
就利用放學時間到河邊去找一塊石頭，
把他的名字給用小紙條貼在石頭上如果他實在很過份，
你就找一塊大一點的石頭，如果他的錯是小錯，
你就找一塊小一點的石頭。
每天把戰利品用袋子裝到學校來給老師看哦！」
學生們感到非常有趣且新鮮，
放學後，每個人都搶著到河邊去找石頭。
第二天一早，
大家都把裝著從河邊撿來的鵝卵石的袋子帶到學校來，
興高采烈地討論著。
一天過去了，兩天過去了，三天過去了….. ，
有的人的袋子越裝越大，幾乎成了負擔。
終於，
有人提出了抗議「老師，好累喔」老師笑了笑沒說話，
立刻又有人接著喊：
「對啊每天背著這些石頭來上課， 好累喔 」
這時，老師終於開口了，
她笑著說：「那就放下這些代表著別人過犯的石頭吧」
孩子們有些訝異，
老師又接著講：
「學習寬恕別人的過犯 ，
不要把它當寶一樣的記在心上，扛在肩上，
時間久了，任誰也受不了…」
這個星期，這班的同學上到了人生中極寶貴的一課。
袋裡裝入越多、越大的「石頭」，
心中存留越多、越深的仇恨，
所造成的負擔就越重。
假如你有寫上我名字的石頭
你應當知道該怎樣做了吧！
我很喜歡一句名諺：
「寬恕人的過失，便是自己的榮耀。」
懂得「放下」，何等自在。
請不吝分享，或許今天正有人需要它！
相愛容易相處難，婚姻與戀愛最大的不同，
就是「戀愛看的是對方的優點」，
而「婚姻卻是要包容對方的缺點」。
Made with ... 緣份是找到包容你的人
用心過好每一天．相信每天都是美好的一天；
好運會降臨在樂觀開朗的人身上!
英文中的stressed （壓力），與 desserts （甜點）兩字，
有很微妙的相關。是什麼相關呢？
仔細一瞧，好像沒什麼關係嘛！
可是，再看一下，咦，
stressed 這個字從後面倒過來拼寫，不就是 desserts 嗎？
所以，「Stressed is just desserts if you can reverse. 」
（壓力就是甜點，只要你能逆向觀看。）
哈，這真是有趣的妙論呀！
人生之中，有許多「壓力、挫折」，
但只要轉個念、換個角度看，
它也就是我們生命中的「甜點」呀！
此外，也有人說：
「人生就像一碗飯，一半是甜的，一半是苦的，
你不知道會先吃到哪一邊，但終究必須把飯吃完。」
是呀，生命有甜、有苦、有酸、也有辣；
但都必須去經歷它、走過它呀！
有一個小學老師在偏遠的鄉里教書，
這天，他來到自己班上的教室，
問班上的小朋友：「你們大家有沒有討厭的人啊」
小朋友們想了想，有的未作聲，有的則猛力地點點頭。
老師接著便發給每人一個袋子，說：
「我們來玩一個遊戲。現在大家想想看，過去這一 週，
曾有那些人得罪過你他到底做了怎麼樣可惡的事想到後，
就利用放學時間到河邊去找一塊石頭，
把他的名字給用小紙條貼在石頭上如果他實在很過份，
你就找一塊大一點的石頭，如果他的錯是小錯，
你就找一塊小一點的石頭。
每天把戰利品用袋子裝到學校來給老師看哦！」
學生們感到非常有趣且新鮮，
放學後，每個人都搶著到河邊去找石頭。
第二天一早，
大家都把裝著從河邊撿來的鵝卵石的袋子帶到學校來，
興高采烈地討論著。
一天過去了，兩天過去了，三天過去了….. ，
有的人的袋子越裝越大，幾乎成了負擔。
終於，
有人提出了抗議「老師，好累喔」老師笑了笑沒說話，
立刻又有人接著喊：
「對啊每天背著這些石頭來上課， 好累喔 」
這時，老師終於開口了，
她笑著說：「那就放下這些代表著別人過犯的石頭吧」
孩子們有些訝異，
老師又接著講：
「學習寬恕別人的過犯 ，
不要把它當寶一樣的記在心上，扛在肩上，
時間久了，任誰也受不了…」
這個星期，這班的同學上到了人生中極寶貴的一課。
袋裡裝入越多、越大的「石頭」，
心中存留越多、越深的仇恨，
所造成的負擔就越重。
假如你有寫上我名字的石頭
你應當知道該怎樣做了吧！
我很喜歡一句名諺：
「寬恕人的過失，便是自己的榮耀。」
懂得「放下」，何等自在。
請不吝分享，或許今天正有人需要它！
相愛容易相處難，婚姻與戀愛最大的不同，
就是「戀愛看的是對方的優點」，
而「婚姻卻是要包容對方的缺點」。
Made with ... 緣份是找到包容你的人
用心過好每一天．相信每天都是美好的一天；
好運會降臨在樂觀開朗的人身上!
Saturday, June 6, 2009
anger ( 發怒 ) 與 danger ( 危險) 只差一個字
記住 anger ( 發怒 ) 與 danger ( 危險) 只差一個字
別看少這一個字
它會影響我們這份職業、甚至人際關係
正所謂「禍從口出…」
專家講:
「人，面對外人時，
總是可以表現得雍容大肚、心平氣和，
但面對自己最親近的家人，
卻往往一點小事就足以皺起眉頭，
甚至出言相傷。」
正如你永遠只對你最愛、最親的人生氣
你會對住你上司、老板生氣嗎 ?
如果形容人類是一種
「出門高E.Q ，回家低E.Q 」的動物，
我想一點兒也不誇張，
多拿出一點耐心與包容給家人吧！
否則您自己也不會快樂，不是嗎？
別看少這一個字
它會影響我們這份職業、甚至人際關係
正所謂「禍從口出…」
專家講:
「人，面對外人時，
總是可以表現得雍容大肚、心平氣和，
但面對自己最親近的家人，
卻往往一點小事就足以皺起眉頭，
甚至出言相傷。」
正如你永遠只對你最愛、最親的人生氣
你會對住你上司、老板生氣嗎 ?
如果形容人類是一種
「出門高E.Q ，回家低E.Q 」的動物，
我想一點兒也不誇張，
多拿出一點耐心與包容給家人吧！
否則您自己也不會快樂，不是嗎？
Friday, June 5, 2009
LATEXX ... June 09
LATEXX PARTNERS' Net Profit for 1QE Mar 31, 2009 surged to RM9.1m from RM1.1m a year earlier, mainly due to better margins from a change in product mix with sales of more premium gloves.
In an EXCHANGE filing on May 6, 2009, the rubber glove maker attributed the stronger performance to an improvement in overall cost savings from economies of scale, lower latex and crude oil prices, and favourable USD exchange rate.
Revenue rose 47% to RM70.3m in 1QE Mar 2009 from RM47.8m a year earlier, while EPS jumped to 4.7 sen from 0.58 sen.
NO DIVIDEND DECLARED
No dividend was declared.
EXPANSION
The Company is targetting to install eight new double formers glove production lines and continue to upgrade its existing glove production to meet market demand.
" .... The eight new double formers glove production lines are targeted to be completed in 2009 ...." it said, adding that " .... With the additional lines, the Group projected total annual output to increase from four billion pieces to six billion pieces. " .... The Company expected strong demand from the healthcare sector despite the current economic slowdown ....".
LATEXX also expects to benefit from lower prices of latex concentrate and crude oil, and favourable exchange rate.
In an EXCHANGE filing on May 6, 2009, the rubber glove maker attributed the stronger performance to an improvement in overall cost savings from economies of scale, lower latex and crude oil prices, and favourable USD exchange rate.
Revenue rose 47% to RM70.3m in 1QE Mar 2009 from RM47.8m a year earlier, while EPS jumped to 4.7 sen from 0.58 sen.
NO DIVIDEND DECLARED
No dividend was declared.
EXPANSION
The Company is targetting to install eight new double formers glove production lines and continue to upgrade its existing glove production to meet market demand.
" .... The eight new double formers glove production lines are targeted to be completed in 2009 ...." it said, adding that " .... With the additional lines, the Group projected total annual output to increase from four billion pieces to six billion pieces. " .... The Company expected strong demand from the healthcare sector despite the current economic slowdown ....".
LATEXX also expects to benefit from lower prices of latex concentrate and crude oil, and favourable exchange rate.
Thursday, June 4, 2009
EON Capital Bhd
The shareholder dispute in EON Capital Bhd over a proposed fund-raising exercise appears to have receded following a proposal for its single largest shareholder, Primus Pacific Partners, to subscribe for a warrants issue amounting to RM29.5 million.
The proceeds from the warrants issue would effectively lower EON Bank Bhd’s cost of funds incurred when it raised a RM410 million subordinated debt at 5.75% to beef up its capital in January 2009. The fund-raising exercise was part of the bank’s RM2 billion medium-term note (MTN) programme to raise capital that was also announced in January 2009.
The exercise was necessary as EON Bank’s management had redeemed US dollar papers amounting to US$225 million (RM783 million) in January 2009. This caused EON Bank’s risk-weighted capital ratio to drop close to 9%, triggering the concern of Bank Negara Malaysia (BNM).
EON Cap’s fund-raising proposal had included a rights issue which did not go down well with certain shareholders, in particular Rin Kin Mei, who is its third largest stakeholder with some 15.5%. These shareholders were said to be unhappy with the cost EON Bank incurred in its January 2009 fund-raising where it effectively
It netted RM380.5 million from a RM410 million bond issue, a shortfall of RM29.5 million. Because of the shortfall, the bank’s effective cost of funds was more than 5.75%.
Some shareholders were also not happy that an earlier fund-raising exercise approved by BNM August 2008 was not implemented. Under the earlier fund-raising exercise, EON Cap was to issue RM655 million in ringgit-denominated unsecured bonds with warrants to Primus. The proceeds from the subscription of the warrants by Primus and their conversion would beef up EON Bank’s capital. But the exercise was delayed as Primus was waiting for a Deutsche Bank report on various options to raise EON Bank’s capital requirement.
Deutsche Bank was appointed by the EON Bank management and proposed several options, including a rights issue. The cash call did not go down well with Rin who is said to have the support of other shareholders. Rin is also said to have pressed for the warrants issue to Primus.
In the latest proposal, with Primus subscribing for the warrants, it would effectively reduce EON Bank’s financing costs for the RM410 million sub-debt issue. At the same time, it would enable the bank to raise the targeted amount of funds without a rights issue.
By undertaking the proposed new warrants issue, the pricing of which represents the difference between the face value of the RM410 million MTN and the gross proceeds raised of RM380.5 million, the effective cost of funds for the RM410 million MTN raised by EON Bank can be effectively lowered to the coupon rate of 5.75% per annum.
Primus, which has a 20.2% stake in EON Cap, would take up 58.71 million warrants at 50.24 sen apiece. The five-year warrants can be converted to EON Cap shares from the issuance date until Jan 15, 2014 at an exercise price of RM6 per share.
The proceeds from the issuance would be used as working capital and to repay borrowings.
Barring unforeseen circumstances, the proposed warrants issuance would be completed by Dec 31, 2009. The banking group needs to get shareholder approval.
The 58.71 million new warrants to be issued to Primus is part of a proposed issuance of up to 93.8 million warrants to the Hong Kong-based fund. The entire 93.8 million warrants were to be issued with up to RM655 million 10-year non-callable, five-year subordinated bonds by EON Bank to Primus. However, these warrants had not been issued to Primus.
The total number of warrants to be issued to Primus would not exceed 93.8 million. Hence, in the event the entire 58.71 million warrants were issued to Primus, the bank would only issue 35.08 million warrants under the RM655 million ringgit papers issued to the bank’s largest shareholder.
The proceeds from the warrants issue would effectively lower EON Bank Bhd’s cost of funds incurred when it raised a RM410 million subordinated debt at 5.75% to beef up its capital in January 2009. The fund-raising exercise was part of the bank’s RM2 billion medium-term note (MTN) programme to raise capital that was also announced in January 2009.
The exercise was necessary as EON Bank’s management had redeemed US dollar papers amounting to US$225 million (RM783 million) in January 2009. This caused EON Bank’s risk-weighted capital ratio to drop close to 9%, triggering the concern of Bank Negara Malaysia (BNM).
EON Cap’s fund-raising proposal had included a rights issue which did not go down well with certain shareholders, in particular Rin Kin Mei, who is its third largest stakeholder with some 15.5%. These shareholders were said to be unhappy with the cost EON Bank incurred in its January 2009 fund-raising where it effectively
It netted RM380.5 million from a RM410 million bond issue, a shortfall of RM29.5 million. Because of the shortfall, the bank’s effective cost of funds was more than 5.75%.
Some shareholders were also not happy that an earlier fund-raising exercise approved by BNM August 2008 was not implemented. Under the earlier fund-raising exercise, EON Cap was to issue RM655 million in ringgit-denominated unsecured bonds with warrants to Primus. The proceeds from the subscription of the warrants by Primus and their conversion would beef up EON Bank’s capital. But the exercise was delayed as Primus was waiting for a Deutsche Bank report on various options to raise EON Bank’s capital requirement.
Deutsche Bank was appointed by the EON Bank management and proposed several options, including a rights issue. The cash call did not go down well with Rin who is said to have the support of other shareholders. Rin is also said to have pressed for the warrants issue to Primus.
In the latest proposal, with Primus subscribing for the warrants, it would effectively reduce EON Bank’s financing costs for the RM410 million sub-debt issue. At the same time, it would enable the bank to raise the targeted amount of funds without a rights issue.
By undertaking the proposed new warrants issue, the pricing of which represents the difference between the face value of the RM410 million MTN and the gross proceeds raised of RM380.5 million, the effective cost of funds for the RM410 million MTN raised by EON Bank can be effectively lowered to the coupon rate of 5.75% per annum.
Primus, which has a 20.2% stake in EON Cap, would take up 58.71 million warrants at 50.24 sen apiece. The five-year warrants can be converted to EON Cap shares from the issuance date until Jan 15, 2014 at an exercise price of RM6 per share.
The proceeds from the issuance would be used as working capital and to repay borrowings.
Barring unforeseen circumstances, the proposed warrants issuance would be completed by Dec 31, 2009. The banking group needs to get shareholder approval.
The 58.71 million new warrants to be issued to Primus is part of a proposed issuance of up to 93.8 million warrants to the Hong Kong-based fund. The entire 93.8 million warrants were to be issued with up to RM655 million 10-year non-callable, five-year subordinated bonds by EON Bank to Primus. However, these warrants had not been issued to Primus.
The total number of warrants to be issued to Primus would not exceed 93.8 million. Hence, in the event the entire 58.71 million warrants were issued to Primus, the bank would only issue 35.08 million warrants under the RM655 million ringgit papers issued to the bank’s largest shareholder.
Wednesday, June 3, 2009
HONG LEONG ... June 09
HONG LEONG FINANCIAL GROUP's Net Profit for 3QE Mar 31, 2009 dipped 1% to RM131.9m from RM133.3m a year earlier mainly due to lower contributions from the banking and stockbroking divisions.
Revenue fell 8.6% to RM525.7m from RM575.3m while basic EPS fell marginally to 12.7 sen from 12.8 sen.
HONG LEONG BANK's Net Profit for 3QE Mar 2009 rose marginally to RM206.5m from RM205.7m a year earlier while Revenue fell 7.8% to RM491.0m from RM532.8m.
9ME MAR 2009 RESULTS HIGHER
For 9ME Mar 31, 2009, HLFG's Net Profit rose 9% to RM440.6m from RM404.2m a year earlier due to higher contributions from the banking division.
Revenue for the 9M period was up 1.8% to RM1.695 bil from RM1.664 bil while basic EPS rose to 42.5 sen from 39 sen.
HONG LEONG BANK 9M RESULTS
For the 9M period, HONG LEONG BANK's Net Profit rose 16% to RM705.9m from RM607.8m mainly due to higher Net Interest Income. Revenue rose 4.8% to RM1.605 bil from RM1.531 bil a year earlier while basic EPS rose to 48.72 sen from 41.94 sen previously.
YVONNE CHIA - Group MD & CEO of the Bank said that the bank had continued to post satisfactory results despite significant pressures on the economy and banking sector in line with regional and global developments. " .... The three consecutive cuts of the overnight policy rate (OPR) totalling 1.5% between Nov 2008 and Feb 2009 directly compressed the Net Interest Margin ...." she said.
Notwithstanding the interest rate cuts, YVONNE CHIA said the Bank's franchise continued to be resilient, adding it had sufficient earnings power and was positioned to emerge from the current down-cycle stronger. She said the Bank had transformed its domestic operations ahead of this down-cycle and built it to a higher level of scale and capacity over the last few years.
" .... The next phase in this challenging climate is to continue growing revenue, pursue operational excellence and increase productivity, whilst enlarging market share and targeting new markets, new segments, new customers and new technologies ...." CHIA added.
HLG CAPITAL RECORDS LOSS
Meanwhile, HLG CAPITAL posted a Net Loss of RM460k for 3QE Mar 2009 compared to a Net Profit of RM3.3m a year earlier. The loss was mainly due to lower contribution from stockbroking business which was affected by lower Bursa Malaysia trading volume and lower revenue from unit trust business which held back new fund launches as a result of weak market sentiment.
Revenue fell 8.6% to RM525.7m from RM575.3m while basic EPS fell marginally to 12.7 sen from 12.8 sen.
HONG LEONG BANK's Net Profit for 3QE Mar 2009 rose marginally to RM206.5m from RM205.7m a year earlier while Revenue fell 7.8% to RM491.0m from RM532.8m.
9ME MAR 2009 RESULTS HIGHER
For 9ME Mar 31, 2009, HLFG's Net Profit rose 9% to RM440.6m from RM404.2m a year earlier due to higher contributions from the banking division.
Revenue for the 9M period was up 1.8% to RM1.695 bil from RM1.664 bil while basic EPS rose to 42.5 sen from 39 sen.
HONG LEONG BANK 9M RESULTS
For the 9M period, HONG LEONG BANK's Net Profit rose 16% to RM705.9m from RM607.8m mainly due to higher Net Interest Income. Revenue rose 4.8% to RM1.605 bil from RM1.531 bil a year earlier while basic EPS rose to 48.72 sen from 41.94 sen previously.
YVONNE CHIA - Group MD & CEO of the Bank said that the bank had continued to post satisfactory results despite significant pressures on the economy and banking sector in line with regional and global developments. " .... The three consecutive cuts of the overnight policy rate (OPR) totalling 1.5% between Nov 2008 and Feb 2009 directly compressed the Net Interest Margin ...." she said.
Notwithstanding the interest rate cuts, YVONNE CHIA said the Bank's franchise continued to be resilient, adding it had sufficient earnings power and was positioned to emerge from the current down-cycle stronger. She said the Bank had transformed its domestic operations ahead of this down-cycle and built it to a higher level of scale and capacity over the last few years.
" .... The next phase in this challenging climate is to continue growing revenue, pursue operational excellence and increase productivity, whilst enlarging market share and targeting new markets, new segments, new customers and new technologies ...." CHIA added.
HLG CAPITAL RECORDS LOSS
Meanwhile, HLG CAPITAL posted a Net Loss of RM460k for 3QE Mar 2009 compared to a Net Profit of RM3.3m a year earlier. The loss was mainly due to lower contribution from stockbroking business which was affected by lower Bursa Malaysia trading volume and lower revenue from unit trust business which held back new fund launches as a result of weak market sentiment.
Telekom ... June 09
Telekom Malaysia Bhd is teaming up with eight telecommunication companies to develop a proposal to build an 8,000km international undersea cable system, named Asia Pacific Gateway (APG).
The APG would link Malaysia, Singapore, Thailand, Vietnam, Hong Kong, the Philippines, Taiwan, China, Japan and South Korea The cable system will span 8,000km and will use the latest dense wavelength division multiplexing (DWDM) technologies with a minimum design capacity of four terabit/second. It is expected to be ready for service by end of 2011.
The APG consortium was formalised with the signing of a memorandum of understanding (MOU) and represented by leaders of the region’s key telcos.
The eight-member consortium consists of China Telecom and China Unicom (China), Chunghwa Telecom (Taiwan), KT Corporation (Korea), NTT Communications (Japan), PLDT (Philippines), VNPT (Vietnam) and TM (Malaysia).
The APG would link Malaysia, Singapore, Thailand, Vietnam, Hong Kong, the Philippines, Taiwan, China, Japan and South Korea The cable system will span 8,000km and will use the latest dense wavelength division multiplexing (DWDM) technologies with a minimum design capacity of four terabit/second. It is expected to be ready for service by end of 2011.
The APG consortium was formalised with the signing of a memorandum of understanding (MOU) and represented by leaders of the region’s key telcos.
The eight-member consortium consists of China Telecom and China Unicom (China), Chunghwa Telecom (Taiwan), KT Corporation (Korea), NTT Communications (Japan), PLDT (Philippines), VNPT (Vietnam) and TM (Malaysia).
Tuesday, June 2, 2009
Hap Seng ... June 09
It is looking at expanding its total landbank by 50% from its current size of slightly over 38,000 hectares in the next two to three years, backed by a strong balance sheet.
It could further explore acquiring land in Kota Marudu, northern Sabah, in which it acquired some 727ha last year but ruled out Indonesia as its current planned expansion was still possible in Sabah.
HSP’s cash and cash equivalents stood at RM50.45 million as at March 31, 2009 (1QFY09), a 35% increase from RM37.34 million a year earlier.
Its net profit rose 5.6% to RM13.9 million in 1Q09 from RM13.17 million a year earlier on the back of a 60% jump in revenue to RM73.25 million from RM45.79 million.
The group’s performance was affected by the seasonal yield pattern of the crops, lower commodity prices and higher cost of production as a result of higher fertiliser costs and adverse weather conditions also affected deliveries.
It could further explore acquiring land in Kota Marudu, northern Sabah, in which it acquired some 727ha last year but ruled out Indonesia as its current planned expansion was still possible in Sabah.
HSP’s cash and cash equivalents stood at RM50.45 million as at March 31, 2009 (1QFY09), a 35% increase from RM37.34 million a year earlier.
Its net profit rose 5.6% to RM13.9 million in 1Q09 from RM13.17 million a year earlier on the back of a 60% jump in revenue to RM73.25 million from RM45.79 million.
The group’s performance was affected by the seasonal yield pattern of the crops, lower commodity prices and higher cost of production as a result of higher fertiliser costs and adverse weather conditions also affected deliveries.
Monday, June 1, 2009
WAH SEONG
WAH SEONG CORP's industrial services division expects to be busy in 2009 with new projects and orders it is optimistic of clinching, said CHIN YOONG NGOK - Head of Industrial Division which was reported in THE STAROLINE on May 1, 2009. The division comprises three main operating units ? trading and distribution of building materials, manufacture of steel pipes (piling, structural and water) and supply and fabrication of specialised agricultural equipment.
CHIN YOONG NGOK said his division's performance in the 1QE Mar 2009 had held up well due to its business mix. The Company hopes 2009's results will be as good as 2008 or better as the Company benefit from the stimulus package and better crude palm oil prices leading to continued investments into equipment by oil palm players.
WAH SEONG's industrial services division recorded PBT of RM37.8m on Revenue of RM843.5m for FYE Dec 31, 2008. The division contributed 36% to Group Revenue and 24.7% of PBT in 2008.
PIPE BUSINESS
On the pipe business, CHIN estimates the current demand for piling pipes in the country and Singapore to be about 120,000 tonnes, worth RM400m. Based on the division's over 25-year track record in the industry and the success rate it has achieved so far, he is optimistic of securing half of the amount by the 3Q of CY2009. The main export market for WAH SEONG's pipe division is Singapore with the division having secured several major orders there.
He said that the Company will also stand to benefit from large-scale infrastructure projects that are coming on line as part of stimulus packages now being used extensively to mitigate the impact of the economic slowdown.
PIPE PRODUCTION EXPANSION
The division is upgrading its plant in Seberang Prai, Penang, to increase production capacity to 100,000 tonnes of pipes per annum from the current 60,000 tonnes in anticipation of more orders.
CHIN says everything should be completed by Jun 2009. The new line can produce bigger pipes up to three metres in diameter and enable us to supply to larger projects.
PIPES ORDER BOOK
To-date, the pipes division has an Order Book of about RM200m for projects locally and in Singapore until the 4QCY2009. They also plan to penetrate the Australian market by the first half of 2010 as the demand for water pipes there is huge with hundreds of kilometres of pipes required.
EQUIPMENT DIVISION
For the equipment division, WAH SEONG aims to broaden its product range, customer base and expand market coverage. Service and maintenance of equipment to palm oil mills also provides the division with ongoing and recurring income.
At present, the equipment division has about RM60m worth of orders in hand. On average, the equipment division generates revenue of about RM10m a month. CHIN sees pretty bright prospects for the building materials business, especially if the Government's stimulus packages take off.
BUILDING MATERIALS DIVISION
One of the top five building material distributors in the market in terms of turnover, WAH SEONG has 500 customers, 11 branches and four warehouses.
CHIN YOONG NGOK said his division's performance in the 1QE Mar 2009 had held up well due to its business mix. The Company hopes 2009's results will be as good as 2008 or better as the Company benefit from the stimulus package and better crude palm oil prices leading to continued investments into equipment by oil palm players.
WAH SEONG's industrial services division recorded PBT of RM37.8m on Revenue of RM843.5m for FYE Dec 31, 2008. The division contributed 36% to Group Revenue and 24.7% of PBT in 2008.
PIPE BUSINESS
On the pipe business, CHIN estimates the current demand for piling pipes in the country and Singapore to be about 120,000 tonnes, worth RM400m. Based on the division's over 25-year track record in the industry and the success rate it has achieved so far, he is optimistic of securing half of the amount by the 3Q of CY2009. The main export market for WAH SEONG's pipe division is Singapore with the division having secured several major orders there.
He said that the Company will also stand to benefit from large-scale infrastructure projects that are coming on line as part of stimulus packages now being used extensively to mitigate the impact of the economic slowdown.
PIPE PRODUCTION EXPANSION
The division is upgrading its plant in Seberang Prai, Penang, to increase production capacity to 100,000 tonnes of pipes per annum from the current 60,000 tonnes in anticipation of more orders.
CHIN says everything should be completed by Jun 2009. The new line can produce bigger pipes up to three metres in diameter and enable us to supply to larger projects.
PIPES ORDER BOOK
To-date, the pipes division has an Order Book of about RM200m for projects locally and in Singapore until the 4QCY2009. They also plan to penetrate the Australian market by the first half of 2010 as the demand for water pipes there is huge with hundreds of kilometres of pipes required.
EQUIPMENT DIVISION
For the equipment division, WAH SEONG aims to broaden its product range, customer base and expand market coverage. Service and maintenance of equipment to palm oil mills also provides the division with ongoing and recurring income.
At present, the equipment division has about RM60m worth of orders in hand. On average, the equipment division generates revenue of about RM10m a month. CHIN sees pretty bright prospects for the building materials business, especially if the Government's stimulus packages take off.
BUILDING MATERIALS DIVISION
One of the top five building material distributors in the market in terms of turnover, WAH SEONG has 500 customers, 11 branches and four warehouses.
FajaBaru ... June 09
The open tender for the construction of the RM2 billion new permanent low-cost carrier terminal (LCCT) will be out in one to two weeks. MAHB had appointed the project management company and in terms of consultancy, it had pre-qualified 97 out of 132 candidate consultants for 38 packages under the entire LCCT development. In addition, the land survey involving 1,500 acres had also been completed, and the consultant should start work on the soil survey soon.
Fajabaru is a small construction company with big ambitions, especially so with the emergence of Datuk Low Keng Kok, a substantial shareholder and MD cum CEO of the company. Low was formerly the joint MD of Road Builder Holdings Bhd, which was a large and respectable construction company prior to its takeover by IJM Corp Bhd. He owns 6.4% of FajaBaru while the chairman Datuk Kuan Peng Ching and Big Victory Holdings own 10.2% and 15.5% respectively.
FajaBaru specialises in design and build, which enables it to achieve relatively high margins for its contracts. The company currently (march 2009) has three projects with a total contract value of RM619 million. The contracts comprise LCCT Phase 2, double track project and Tampin Hospital.
The proposed construction of the new LCCT terminal costing around RM2 billion could provide more job opportunities for FajaBaru since it was involved in Phase 1 and is currently undertaking the construction of Phase 2.
The double track contract is for the stretch between Seremban and Gemas. FajaBaru has also clinched a contract to build the Tampin Hospital in Johor.
As at end of 2008, FajaBaru was sitting on cash reserves of RM80 million, which is close to its market capitalization of Rm100 million. It intends to use the cash for possible M&A opportunities and as working capital should it succeed in clinching larger projects.
With the imminent announcement of the second stimulus package, FajaBaru, with a strong balance sheet and experienced management, is well placed to bid for new contracts.
The company enjoys relatively good margins due to its design and build concept, which allows it flexibility in cutting costs. Furthermore, a reduction in construction material costs after the downturn has also improved margins.
It should be noted that FY2008 profits were boosted by a one off recovery of bad debts amounting to RM6 million and a profit guarantee payment of RM2.8 million arising from vendors under a profit guarantee agreement. The company is expected to receive an installment of rm931545 per quarter until Aug 20, 2011.
Financial Results … For six months ended Dec 2008, it posted a net profit of RM6.7 million.
Fajabaru is a small construction company with big ambitions, especially so with the emergence of Datuk Low Keng Kok, a substantial shareholder and MD cum CEO of the company. Low was formerly the joint MD of Road Builder Holdings Bhd, which was a large and respectable construction company prior to its takeover by IJM Corp Bhd. He owns 6.4% of FajaBaru while the chairman Datuk Kuan Peng Ching and Big Victory Holdings own 10.2% and 15.5% respectively.
FajaBaru specialises in design and build, which enables it to achieve relatively high margins for its contracts. The company currently (march 2009) has three projects with a total contract value of RM619 million. The contracts comprise LCCT Phase 2, double track project and Tampin Hospital.
The proposed construction of the new LCCT terminal costing around RM2 billion could provide more job opportunities for FajaBaru since it was involved in Phase 1 and is currently undertaking the construction of Phase 2.
The double track contract is for the stretch between Seremban and Gemas. FajaBaru has also clinched a contract to build the Tampin Hospital in Johor.
As at end of 2008, FajaBaru was sitting on cash reserves of RM80 million, which is close to its market capitalization of Rm100 million. It intends to use the cash for possible M&A opportunities and as working capital should it succeed in clinching larger projects.
With the imminent announcement of the second stimulus package, FajaBaru, with a strong balance sheet and experienced management, is well placed to bid for new contracts.
The company enjoys relatively good margins due to its design and build concept, which allows it flexibility in cutting costs. Furthermore, a reduction in construction material costs after the downturn has also improved margins.
It should be noted that FY2008 profits were boosted by a one off recovery of bad debts amounting to RM6 million and a profit guarantee payment of RM2.8 million arising from vendors under a profit guarantee agreement. The company is expected to receive an installment of rm931545 per quarter until Aug 20, 2011.
Financial Results … For six months ended Dec 2008, it posted a net profit of RM6.7 million.