KPJ ... Sept09

KPJ HEALTHCARE posted an increase of 23% in Net Profit to RM24.9m for 2QE Jun 2009, compared with RM20.2m recorded in the corresponding period last year, as its hospitals continue to record higher level of activities following the expansion of facilities and services.

Correspondingly, Revenue for the quarter increased by 19.5% to RM370.7m compared with RM310.3m last year.

NO QUARTERLY DIVIDEND
No dividend was proposed for the quarter or for 1HE Jun 2009.

1HE JUN 2009 NET PROFIT HIGHER BY 11%
For 1HE Jun 2009, Net Profit was higher by 11.4% at RM46.7m against RM41.9m in 2008, while Turnover in 1HE Jun 2009 was up 15.4% to RM709.5m from RM615m a year earlier.

Hap Seng ... Sept09

Hap Seng Consolidated Bhd has entered into an equity transfer agreement with Lei Shing Hong Venture Capital Ltd to dispose of its entire equity interest in Hap Seng Consolidated Financial Lease and Rental (China) Co Ltd, at a cash consideration of US$30.294 million.

The gains arising from the proposed disposal is expected to be about RM36 million. The company proposes to utilise the sale consideration to reduce the group's borrowings and/or to contribute to the group's working capital.

The gearing ratio of Hap Seng Consolidated is expected to decrease from 1.06 to 1.00 as a result of the proposed disposal.

The proposed disposal is in line with the group's credit finance division's strategy to focus on the domestic market, taking cognisance of recent global uncertainties in the financial market.

Going Forward …

In the surface it looks like Hap Seng’s disposal of its China listed credit leasing and financing business will enable it to reap a substantial gain on its investment. But could also mean losing the opportunity to have a toehold in China.

The asset is being sold to a company that shares a major shareholder with Hap Seng.

AMDB ... Sept09

Its unit Walleng Enterprises Sdn Bhd is targeting property in London for investments after subscribing for 60% of British Virgin Islands-incorporated Westlink Global Investments Ltd.

It had subscribed for 60 shares of 1 sterling pound each in Westlink, or 60% at par cash. After the subscription, Walleng had committed to provide shareholders advances of up to 13.5 million pound sterling (RM80 million) to Westlink.

Westlink had entered into a sale and purchase agreement with LS Victoria Properties Ltd to purchase two freehold office buildings in Paddington, London for 50.5 million pound sterling. The property provides a net lettable space of 146,000 sq ft of retail and office accommodation which are currently let to a variety of tenants with approximately 94% occupancy. Based on current rentals from the tenants, the net rental yield on the property is approximately 8.65%.

The shareholder’s advance would be from its own funds and the group's bank borrowings.

Arising from the utilisation of available facilities for the shareholder’s advance, AMDB group’s gearing (net of cash and cash equivalents) will increase from 0.18 times to 0.39 times if fully disbursed.Walleng, whose core activities are property development and investment, has a paid-up is RM2.86 million.

AMDB's unit was selling its 35% stake in AM SGB Sdn Bhd to SGB-SMIT International GmbH, comprising of 15.19 million shares for cash consideration of RM31.25 million. After the disposal, AMDB's unit AMDB Technics Sdn Bhd would cease to be a shareholder of AM SGB. AM SGB's core activities are manufacturing and repairing of distribution transformers, cast resin transformers and power transformers for local markets and export. The group is expected to record a gain on disposal of approximately RM9.7 million from the Proposed Disposal based on the carrying value of RM21.5 million as at Aug 31, 2009.

Jetson ... Sept09

The non-interested directors of KJB have advised shareholders to reject the conditional takeover offer by Superior Pavillion Sdn Bhd (SPSB) and Odyssey Wealth Sdn Bhd (OWSB) for the group’s securities.

Its non-interested directors concurred with its independent adviser Kenanga Investment Bank Bhd (KIBB) that shareholders reject the offer as the prevailing market prices of the shares, ICULS and warrants were significantly higher than the offer prices.

Both KIBB and the non-interested directors said it was more beneficial for the securities’ holders who wished to realise their investment to do so in the open market.

As such, the non-interested directors turned down SPSB and OWSB’s joint offer for the remaining KJB shares for RM1 cash per share, outstanding 5% 10-year 2002/2012 KJB ICULS for 93 sen cash per unit and the outstanding 2002/2012 KJB warrants for 0.01 sen cash per unit.

The sons of the late Tan Sri S M Nasimuddin S M Amin, founder of the Naza Group, are undertaking a mandatory general offer (MGO) for KJB via SPSB and OWSB, in which they have substantial interests. Brothers S M Nasarudin and S M Faliq have made a revised price offer of RM1 for KJB shares and 93 sen for the ICULS. The original offer prices for the shares and ICULS were 70 sen and 65 sen, respectively, while the offer price for the warrants remains at 0.01 sen.

In Aug 2009, KJB’s major shareholders who controlled a 33.15% stake accepted the offer from the brothers, thus triggering the MGO. In that transaction, SPSB and OWSB acquired shares held by KJB group managing director Datuk Tee Kian An, chairman and executive director Isnin Rahim and executive director Tee Keng Kok as well as their private companies.

The non-interested directors are two of the three independent directors — Mohd Najib Abdul Aziz and Louise Paul Joseph Paul. The other independent director Datuk Dr Ong Ah Soon has a deemed interest in the transaction as his spouse Gan Ai Ring was one of the parties who sold their shares to the offerors.

On the joint offerors’ future plans for the KJB Group, the non-interested directors noted that the offerors intended to continue with its existing business and operations. They also noted that while the offerors did not have definite plans to restructure within the next 12 months, they may review, rationalise and reorganise the business or reorganise the group structure.

In view that the joint offerors have not put forth any concrete alternative business plans, the non-interested directors are unable to comment on the future prospects of the KJB Group if the offer is successfully completed.

Meanwhile, for the past five years ended Dec 31, KJB was able to maintain a positive gross profit margin ranging from 3.71% to 17.87% and a gross margin of 20.78% for its latest financial period ended June 30, 2009. However, due to the inconsistent growth of its revenue, the CAGR (compounded annual growth rate) of its revenue during this period is approximately -9.61%.

KJB’s gross profit margin trend seemed relatively stable except during financial year ended Dec 31, 2006. It added that KJB was able to manage its operational cost directly attributable to sales.

The share offer price represented a discount of 34.64% over its latest audited net tangible assets (NTA) per share while the average premium of the offer price over the last audited NTA in MGO (wholly cash settled) over the last 12 months was 23.56%.

For the past five financial years ended Dec 31, KJB’s NTA per share ranged from RM1.33 to RM1.77.

Meanwhile, the Naza group, most known for its automotive business, is moving aggressively into the hotel sector and plans to expand its portfolio to include four- and five-star as well as boutique hotels.

Each category will be branded differently albeit under the Naza umbrella. Currently, the division has a hotel each in Penang, Johor Baru and Malacca, opened in the last six years. The Naza hotels are rated three- and four-star, and have around 130 rooms each.

The group also holds the franchise to operate Howard Johnson Torrance and the Crowne Plaza Hotel in San Pedro, Los Angeles, in the US.

The hotel division makes less than RM4 million in revenue currently, but expects it to increase to RM6 million next year before growing in double digits.

It hopes to have a few more hotels in our stable in the next three to five years. They will open a fourth Naza Talyya Hotel in the Klang Valley by year-end (2009).

Can you solve these puzzles ... 3

e. A man went to a party and drank some of the punch. He then left early. Everyone else at the party who drank the punch subsequently died of poisoning. Why did the man not die?

f. A man walks into a bar and asks the barman for a glass of water. The barman pulls out a gun and points it at the man. The man says 'Thank you' and walks out.
(This puzzle claims to be the best of the genre. It is simple in its statement, absolutely baffling and yet with a completely satisfying solution. Most people struggle very hard to solve this one yet they like the answer when they hear it
or have the satisfaction of figuring it out.)

(Think think think!!!! Answers will be publish next week.)



Answer for c & d are:-
c. It was day time.

d. A square manhole cover can be turned and dropped down the diagonal of the manhole. A round manhole cannot be dropped down the manhole. So for safety and practicality, all manhole covers should be round.

Can you solve these puzzles ... 2

c. A man is wearing black. Black shoes, socks, trousers, lumper, gloves and balaclava. He is walking down a black street with all the street lamps off. A black car is coming towards him with its light off but somehow manages to stop in time. How did the driver see the man?

d. Why is it better to have round manhole covers than square ones?
(This is logical rather than lateral, but it is a good puzzle that can be solved by lateral thinking techniques. It is supposedly used by a very well-known software company as an interview question for prospective employees. )

(Think think think!!!! Answers will be publish tomorrow.)



Answer for last week a. and .b are:-
a. The man is very, very short and can only reach halfway up the elevator buttons. However, if it is raining then he will have his umbrella with him and can press the higher buttons with it.

b. The surgeon was his mother.

GPacket ... Sept09

WiMAX operator Packet One Networks (M) Sdn Bhd (P1) aims to double its subscriber base by year-end with the launch of its new “Cut Now” campaign.

“We’re not resting on our laurels (after) having won over 80,000 subscribers as at last month and with the ‘Cut Now’ campaign ... we hope to make P1 WiMAX the choice of 160,000 (by year-end),” chief executive officer Michael Lai told reporters after launching the service yesterday.

He also said the company would invest about RM1bil in the broadband business, inclusive of capital and media expenditures, over a five-year period from 2008 to 2012.

“We have invested about RM300mil so far. We will continue to invest to provide the best in broadband technology in Malaysia,” Lai added.

The “Cut Now” campaign kicks off with its first initiative called “Promo M” which aims at signing up non-P1 WiMAX broadband users.

Promo M offers subscribers a waiver of the RM160 registration and activation fee and a complimentary first month of service, with a 30-day “cooling off period”, during which customers can choose not to subscribe to the service.

The Promo M campaign started on Sept 18 and will run till Nov 1.

Related:-
OSK/GPacket ... Jan 2009
Why Gpacket is so aggressive lately?
GPacket ... Oct 2008
GPacket/Redtone ... Sept 2008
GPacket ... Aug 2008

3A ... Sept09

THREE-A-RESOURCXES 2QE Jun 2009 Net Profit was RM5.5m - up 17.6% YoY and Turnover was 2.4% higher at RM45.2m. The Company said that the better performance was to to higher demand for its food ingredient products. This latest set of results was 3A's strongest quarterly earnings since the Company's listing in 2002.

Demand for end-consumer products that use 3A's ingredients is relatively recession-proof. Sales were affected in 2H-CY2008 and 1Q-CY2009 due to the China-originated melamine scandal ? which hurt consumer demand for milk products and confectionery ? and then by the global credit crisis. The latter saw many end-user companies cutting back on new purchases to run down inventory.

Rebuilding of inventories are believed to have accounted for the stronger demand in 2QE Jun 2009.

UNTAPPED DOMESTIC MARKET
In a research note by INSIDERASIA released on Aug 25, 2009, the Company said that 3A " .... is filling orders for its newly commissioned 7,000-tonne per month glucose plant at a good pace. The glucose plant is already running at about 40%-50% capacity, since its completion in 4QE CY2008 .... The availability of additional glucose feedstock has also upped utilisation at its maltodextrin plant, which is now running at almost full capacity. Previously, limited feedstock had kept production at jus about half of its 1,200 tonnes per month capacity ....".

MALTOSE/DEXTRIN PRODUCTS FOR CONFECTIONARY/ICE CREAMS & PHARMACEUTICALS
INSIDERASIA added that the ability to ramp up utilisation fairly quickly strongly suggests that the domestic market for glucose and maltodextrin is still vastly untapped. 3A is the leading producer for glucose and maltose syrup ? used as sweeteners in the food industry such as confectionery, pharmaceutical, ice cream, biscuit and beverages ? in the country. The Company's maltodextrin plant is the only one in Malaysia. Prior to its entry into the market ? in mid-2007 ? all of the maltodextrin consumed locally was imported.

Proximity to end-user companies gives 3A a strong home ground advantage. Its maltodextrin is also competitively priced against those imported from the U.S. and Europe. Maltodextrin is a white powder with little sweetness, has a bland taste and is widely used as fillers or bulking agent.

Initially, the Company focused on, and has been quite successful in tapping into, the 3-in-1 dry beverage mixes market segment. It is now turning to other segments of the maltodextrin market, such as the infant milk powder industry.

Following positive feedback from end-users, both local and in the region, the Company is now planning to set up another maltodextrin plant capable of producing up to 2,000 tonnes per month. As a stopgap measure, 3A intends to upgrade its existing maltodextrin plant, which would boost output up to 1,500 tonnes per month, to cater to rising demand.

EXPORT MARKET
The Company had enjoyed export success and ensures that all of its production processes meet the stringent quality requirements of the food industry. It has a good reputation and track record after being in the business for more than three decades.

3A exports its products to countries such as Korea, Taiwan, Singapore, Australia and the Philippines. Exports currently account for about one-third of the Company's sales. In short, its longer-term growth prospects ? driven by both domestic and overseas demand ? are very good.

INSIDERASIA is of the view that double-digit growth is possible in the next 3 to 4 years. INSIDERASIA also expects the Company's new maltodextrin plant to be ready by 4Q-CY2010.

GLUCOSE / CARAMEL FEEDSTOCK SUPPLY
Additional feedstock requirement for the new maltodextrin plant was already taken into account when 3A was building its glucose plant in 2008. The glucose plant, with current capacity of 7,000 tonnes per month can easily be upgraded to produce up to 12,000 tonnes per month with the incurrence of just a small additional capex.

The Company recently acquired a piece of land adjacent to its factory in Sungai Buloh, Selangor, for expansion purposes. The land could be used to ramp up its caramel production capacity within a fairly short lead time as 3A can leverage on existing support infrastructure.

LOWER SELLING PRICES TO BE OFFSET BY VOLUME
INSIDERASIA estimates Volume sales growth for its ingredient products to more than offset lower average selling prices of about 10%-15% from the peak in 2008, in line with lower commodity and raw material prices.

IMPROVED PLANT EFFICIENCY
Improved utilisation and economies of scale will also boost profitability. In particular, higher sales for glucose and maltodextrin are likely to have contributed to 3A's improved margin in 2QE Jun 2009.

OPERATING MARGINS
Glucose and maltodextrin are believed to be relatively higher-margin products within the Company's product range, which also includes caramel colour, soy protein sauce and natural fermented vinegar. Operating Margin rose to 19.8% compared with 17.4% and 13.9% in 2Q08 and 1Q09, respectively.

INSIDERASIA estimates Net profit for the FYE Dec 2009 to be at RM14.8m, up 22% YoY. Sales growth should pick up pace in 2010 when Net Profit is estimated to expand to RM17.5m.

DIVIDENDS RECORD
3A offers fairly decent yields. 3A paid dividends totalling one sen per share in 2008. Assuming a similar payout level, dividends are estimated to rise to 1.2 sen per share for 2009, which translate into a 2.2% Net Yield. Going forward, we expect dividends will trend higher in line with its earnings growth.

NET DEBT OF RM13.5M
As at end Jun 2009, the Company had Net Debt of RM13.5m which is well placed to support the Company's expansion plans. Net Tangible Assets recorded 27 sen per share.

RHBCAP ... Sept09

RHB CAPITAL's Net Profit for 2QE Jun 2009 rose 11% to RM301.5m exceeding analysts' expectations. The rise was due to strong growth in Net Interest Income, higher Income from its Islamic banking business and higher writeback of Impairment Losses.

INTERIM DIVIDEND DECLARED
The Group declared an Interim Dividend of 5 sen compared with FY08's 9 sen.

SLIGHT IMPROVEMENT IN NPLs TO 2.5%
The Bank's NPL Ratio improved to 2.5% from 2.6% in 1QE Mar 2009, while its capitalisation stood at 9.8% for Core Capital and 13.7% for Risk-Weighted Capital Ratio.

RESEARCH HOUSE VIEWS
HWANGDBS VICKER RESEARCH said Aug 26, 2009 that due to better results " .... We raised FY09-11F earnings by 24%-30% after imputing lower Operating Expenses and stronger non-interest income, in view of healthier capital markets going forward ....". The research house also expects a sustainable 12% ROE, 2% Long-Term Growth and 10% COE.

OSK RESEARCH said that RHBCap's 1HE Jun 2009 results, which saw a 7.4% rise in Net Profit to RM530.1m, were 20.6% and 25.9% above consensus and the research house's full-year estimates, respectively.

The growth was driven by lower-than-expected loan-loss provisions, an uptrend in net interest margins, strong Islamic banking earnings growth, and its efficient cost-management efforts.

" .... More importantly, underlying core performance remained robust despite the challenging macro-environment, with pre-provision profits expanding 9.8% YoY and 25.7% QoQ ...." it said.

OSK RESEARCH's EARNINGS FORECAST
OSK RESEARCH raised FY09 and FY10 Earnings Forecasts for RHBCAP by 27.5% and 24.1%, respectively, as Loans Growth forecasts were raised for FY09 and FY10 to 5.5% and 7%, from 4% and 6%, respectively.

The higher earnings forecasts were also due to lower credit cost assumptions for FY09 and FY10, to 110 basis points (bps) and 90 bps, from 141 bps and 120 bps points, respectively, as well as on the back of a recovery in Non-Interest Income, to reflect a marginal growth of 3.5%, versus its original contraction estimate of 22.6%, driven by improving capital and debt market deal flows.

OSK RESEARCH also said that RHBCAP's management had indicated local deal flows were gradually improving due to the current recovery in capital markets, while its debt origination deal pipeline was also on the mend.

LOANS GROWTH & LOAN LOSS COVERAGE
The Banking Group recorded a Loans Growth at 8.5% YoY as at Jun 30, 2009 compared with the industry's 8.3%, supported by an expansion in residential mortgages, auto loans, and non-residential mortgages, although working capital loans inched down.

The Bank also reported stable Loan Loss Coverage at 86% in Jun 2009 compared with 85% in Mar 2009. " .... We are cheered by the surprisingly strong 1HE Jun 2009 performance, especially the against-sector improvement in Net Interest Margins and the stable NPLs in 2QE Jun 2009 ...." said CIMB RESEARCH.

Selamat Hari Raya Aidilfitri To All Muslims

Can you solve these puzzles ... 1

a.There is a man who lives on the top floor of a very tall building. Everyday he gets the elevator down to the ground floor to leave the building to go to work. Upon returning from work though, he can only travel half way up in the lift
and has to walk the rest of the way unless it's raining! Why?

(This is probably the best known and most celebrated of all lateral thinking puzzles. It is a true classic. Although there are many possible solutions which fit the initial conditions, only the canonical answer is truly satisfying.

b. A man and his son are in a car accident. The father dies on the scene, but the child is rushed to the hospital. When he arrives the surgeon says, "I can't operate on this boy, he is my son! " How can this be?

(Think think think!!!! Answers will be publish next week.)

Rights Issue

There have been a spate of rights issues by listed companies recently. These changes are no doubt bought about by requests from companies. So, what exactly are rights issues?

Rights are essentially a way for companies to raise capital (money). Fresh capital is essential for a company if they need more funds for their business operations. In the current (2008 – 2009) economic climate, more and more companies find that they require more funds. There is also the problem of existing credit lines of companies being reduced, thus increasing their need to raise capital.

Traditionally, there are two main ways for companies to raise capital. Via debt or equity.

Debt can be raised through bank borrowings or the issuing of bonds. The problem with bank borrowings now (2009) is that banks are unwilling to lend money. And if they do agree to lend, the interest rates are higher than normal. For bonds, there might not be enough takers.

Equity can also be raised through issuing preferred shares, private placement of shares or rights issues.

In a private placement, shares are issued to a selected group of people at a particular price. The problem with this method is that the traded price of many companies are at very low levels now (2009). Existing shareholders will be extremely unhappy if a private placement is done at low prices and their shareholdings get diluted. It would be like daylight robbery.

A rights issue overcomes the problem of a private placement by offering all shareholders an equal chance to subscribe to the new shares at the low price. While this might seem fairer than a private placement that would benefit only selected people, it does come with its disadvantages to existing shareholders.

This would be better illustrated with an example.

Lets say you own 1000 shares of company X and the shares were purchased at $1 each. The company has 100000 shares in circulation so you own 1% of the company.

Suppose you were only willing to commit $1000 of your capital when you purchased the shares. And that is the amount you will lose should the company go bust. Your liability is limited to your initial capital.

Now company X decides to issue a 1 for 1 rights at a price of $0.80. Assuming you subscribe to your entitlement, you would have paid an additional $800 to purchase 1000 shares.

While the number of shares you own has now increased to 2000, your percentage of shareholdings actually remain unchanged. 2000 out of 200000 shares is still 1%.

What this means is that you have been “forced” to pump in more of your money just to maintain your ownership of the company. Your capital at risk has also increased from $1000 to $1800. This is like the reverse of issuing dividends.

You have the right to refuse to subscribe for the rights of course. If you do nothing at all, your initial shareholdings of 1000 shares will become only 0.5% after all the new shares are issued. This would be a huge mistake as the very least you should have done is to sell off the rights to recover some capital if you are not going to subscribe for the new shares. This will help to compensate slightly for the dilution of shares.

The rights of shareholders are these few options:

1. Subscribe to the rights based on the amount of money needed by the company. You are at the mercy of the terms of subscription price as well as number of shares you can subscribe to.

2. Sell off the rights, keep the shares and have your shareholdings diluted.

3. Sell off the shares before they go ex-rights.

Sometimes, an investor could feel that he is having no rights as none of the options are attractive. For example, an investor could be pretty positive about the company but he doesn’t have the cash on hand to subscribe to the new shares. Neither option 2 or 3 would be good for him.

So, faced with the prospect of a massive dilution of my shares, you had to decide whether to sell off your holdings (at firesale prices).

Renounceable - A renounceable rights issue allows for shareholders to sell away their rights. A non-renounceable rights, on the other hand, cannot be sold.

Underwritten - A rights issue that is underwritten ensures that all the required funds are received regardless of the number of subscriptions by the shareholders. The underwriter will have to subscribe to any leftover rights. In return for this risk, a fee has to be paid to the underwriter. In cases where an underwriter cannot be found, it is common to get a majority shareholder to agree to subscribe to the excess rights. Another way is to allow for all shareholders to subscribe to the excess rights.

MISC ... Sept09

MISC registered Net Profit of RM233.4m for 1QE Jun 2009, a decline of 55% from RM523.8m a year ago after its integrated liner logistics division suffered operating losses.

The Company in an EXCHANGE filing on Aug 20, 2009 said that Revenue was higher at RM3.89 bil compared with RM3.65 bil. EPS was 6.28 sen compared with 14.06 sen same quarter last year.

DIVISIONAL RESULTS
On divisional results, MISC reported that energy related shipping posted operating profit of RM473.1m, other energy business RM166.5m, non-shipping RM29.6m but the integrated liner logistics division suffered operating losses of RM314.6m.

Excluding Loss on Disposal of ships,the Group PBT RM282m was 49.6% lower than the corresponding quarter's profit of RM559.4m.The decrease was mainly due to lower profit in petroleum business and losses in liner and chemical businesses.

RESULTS BETTER THAN 4QE MAR 2009
MISC said excluding Loss on Disposal of ships, the Group PBT of RM282m was 25.1% higher than the RM225.4m profit recorded in the preceding quarter. The higher profit achieved in this quarter came largely from the restructuring of liner business.

OUTLOOK
On the outlook, the Company said the contraction in the global trade was expected to impact the shipping industry as reflected by the falling rates in petroleum and container shipping.

MISC added the Group's earnings from the long-term charters in the liquefied natural gas and offshore businesses would cushion the Group from the downward pressure on rates.

Wilmar/PPB ... Sept09

Currently PPB holds a 18% stake in Wilmar Intl Ltd, and a few staple food businesses that include sugar and flour.

The Wilmar stake is precious to PPB as about 78% of its net profit for 1HFY2009 ended June 30 came from this investment. The contribution has even surpassed yearly expectations.

To investors, holding a share in PPB acts as a proxy to Wilmar and is cheaper. However, performance of the two counters of late (Till Sept 2009), many call a preference over Wilmar’s shares to PPB’s shares because the former has better upside. Direct exposure to Wilmar is one of the reason.

A research house said that based on discounted cash flow valuation while PBB is based on sum of parts valuation. Unlike PBB’s investment in Wilmar, PBB’s core divisions’ prospects appear unclear given the fluctuation of raw material prices, ocean freight charter rates and weakening consumer consumption.

PPB’s sugar division is the largest revenue and profit earner, accounting for 60% of operating profit. The sugar division is the only business that saw growth in operating profits in 1H2009 while the rest posted double digit declines. The live stock farming division recorded losses.

In terms of profit contribution, PPB’s core division accounted for about 20% of its net profit, which is tiny compared to the contribution from Wilmar.

While some prefer direct exposure to Wilamr, you cannot discount the fact that PPB offers a cheaper entry into the Wilmar group. There is a lot of value within the PPB business itself.

Based on PPB’s closing price of RM15.80, PBB’ market capitalization stood at some Rm18.73 billion. Stripping out the value of a 18% stake in Wilmar of RM17.88 billion, the market pegs a value of RM849 million on PPB’s core businesses.

However, this undervalues PPB’s core activities, as the businesses should be valued at not less than Rm2.4 billion, almost tripled the pegged value of RM849 million. The RM2.4 billion is based on the enterprise value and cash position of the respective divisions. When including PPB’s other investments, such as MayBulk the figure will jump to RM2.8 billion.

The market has hugely discounted PPB’s core activities. As the company is the business of producing staple food., it is hard to explain why the market gives the stock a very low valuation. Even at a time when Wilmar’s value nearly exceeded PPB’s market capitalization, the business was valued at zero.

Furthermore, PPB’s 50% share of the sugar and 40% of the flour market in Malaysia should warrant a commendable valuation, at least on its sugar and flour businesses.

Therefore, by owning a share in PPB, investors will also own a share in Wilmar and other business that are generating income.

At present, PPB is expanding its core businesses despite the economic slowdown. Furthermore , PPB has a long term contract with the government to supply 70% of its requirement for raw sugar at 17.5 US cents per lb lower than the market price.

It has hinted that it will eventually increase its stake in Wilmar and did not rule out participating in Wimlar’s recently proposed Chinese IPO.

Lii Hen ... Sept09

Its 80%-owned PPL Plantations Sdn Bhd (PPLP) has entered into a sub-development agreement with PIJ Holdings Sdn Bhd (PIJH) to develop a land in Mersing.

The 8,581-acre land was to be planted with rubber trees for the production of latex and rubber wood for sale to the related downstream industry.

The development on the plantable area in the land would be carried out within two months of the period approved by the state technical committee from the extraction of timber from the plot.

Under the sub-development agreement, PIJH shall grant PPLP the first right of refusal to be appointed as the turnkey contractor to undertake the clearance and sale of the existing timber, other plants and crops in the plantable area.

The development would be funded by existing cash reserves and bank borrowings

PIJH, formerly known as Perisind Holdings Sdn Bhd, is wholly owned by Perbadanan Islam Johor. PIJ is entrusted by the Johor state government to oversee and facilitate the development of land, the growth in agriculture, housing, mining activities or any other activities with the objectives of improving the economic status of all Muslims residing in the state.

PIJ entered into a right of use agreement with the state government in April this year for the rights to develop about 15,000 acres of forest land with rubber trees to be planted for the production of latex and later the sale of rubber wood for a period of thirty years, with an option to extend such development for a further 30 years.
Subsequently, PIJ awarded the development rights to PIJH under a master development agreement in July 2009.

Dayang ... Sept09

It sealed a deal to buy a 40 per cent stake in Borcos from AWH Holdings Equity Sdn Bhd, which is owned by Borcos chairman Datuk Wan Ariff Wan Hamzah and managing director Sidqi Ahmad Said. In return for Dayang's investment in the company, Borcos has guaranteed that it would make a RM65 million net profit in 2010.

Borcos made a net profit of RM48 million in its last financial year and has current order books of RM300 million.

Borcos currently owns and manages a fleet of 33 marine vessels including fast crew boats, harbour tugs, utility vessels and pilot boats, besides OSVs.

Borcos has been in the business for 28 years and is taking delivery of six new vessels and building two more. The six new vessels - two fast utility vessels and four OSVs - will be delivered in phases between now till the year-end (2009). The two OSVs which are being built are expected to be ready for delivery in 2011. They will focus on deepwater work.

The acquisition allows Dayang to participate in the growth of leading marine transportation and support service company. It also provides Dayang opportunities to expand into other viable activities within the growing oil and gas support industry.

On its fleet expansion plans, the company wants to increase the number to 15 vessels by 2015. Dayang now operates marine chartering operations with five vessels namely four workboats and one supply boat.

The company's current order book stands at RM700 million that will last it until 2012. It has so far completed jobs worth RM1.2 billion. It plans to bid four to eight contracts worth approximately RM2 billion next year (2010). These would be local projects and it did not plan to seek out overseas contracts at the moment.

Halex ... IPO

Its businesses are grouped into three segments: agro-based input (agrochemicals and agro-biotechnology), horticulture and healthcare disposables.

It is principally involved in the manufacturing, formulation, repackaging, distribution and agency of agrochemicals; propagation of ornamental plants; propagation and sales of foliage cuttings, potted and festive plants; and manufacturing and distribution of healthcare are disposable products.

The group’s mainstay is agrochemicals, which accounts for around 60% and 53% of its FY2009 ended Sept revenue and gross profit.

Its range of agrochemicals consists of pesticides, fertilizers and other related products and it has more than 111 products registered with the Pesticides Board of Malaysia.

Overseas markets are key to Halex’s growth. Exports its agrochemicals to more than 10 countries with 24% of its FY2008 revenue coming from abroad.

Its threats are the competitive agrochemical industry, illegal pesticides, dependence on the agriculture sector, off patent products, potential for order backlog, product defects and etc …

Sino Hua-An ... Sept09

LTH has steadily been increasing its stake in Hua-An, whose principal business is the production and soale of metal-lurgical coke and its by products, which are used to make steel. Its business operations are entirely carried out in China.

Its stake now stood at 5.54%.

With Huaan representing a good proxy to China’s growth story, in addition to the stock’s undemanding valuations, LTH’s accumulation of its shares could yield promising returns. Only time will tell whether LTH fund will continue to be a substantial shareholder over the long term.

Related:-
Sino Hua-An ... May 09
HuaAn .. July 2008

What to do when you are trapped in a lift?

We never know when and where accidents will happen to us OR people around us.
Read on and hope this piece of information may help any of us when things do happen to ourself, our friends and our loved ones.

One day, while in a lift, it suddenly broke down and it was falling from level 13 in a fast speed.
Fortunately, I remembered watching a TV program that taught you must quickly press all the buttons for all the levels.
Finally, the lift stopped at the 5th level.

When you are facing life and death situations, whatever decisions or actions you make decides your survival.
If you are caught in a lift breakdown, first thought in mind may be 'waiting to die'...

But after reading below, things will definitely be different the next time you are caught in a lift.

First - Quickly press all the different levels of buttons in the lift.
- When the emergency electricity supply is being activated, it will stop the lift from falling further.

Second - Hold on tight to the handle (if there is any).
- It is to support your position and prevent you from falling or getting hurt when you lost your balance.

Third - Lean your back and head against the wall forming a straight line.
- Leaning against the wall is to use it as a support for your back/spine as protection.

Fourth - Bend your knees
- Ligament is a flexible, connective tissue. It can be attached to the bone part of the activities, but limit the scope of their activities in order to avoid injury.
Thus, the impact of fractured bones will be minimised from the severe pressure during fall.

Reason - When the lift falls, you will not know when it will hit the ground, and it may result in whole body bone fracture.

PE : PRICE EARNING RATIO 本 益 比

什 么 是PE ， 它 有 什 么 重 要 ？

PE 就 是PRICE EARNING RATIO ， 中 文 译 为 本 益 比 。
PE 的 算 法 简 单 ， 我 们 只 需 要 把 一 只 股 票 的 股 价 除 以 它 的 每 股 净 利 就 可 得 到 它 的 本 益 比PE 。
(PE ＝ PRICE / EARNING PER SHARE)

举 个 例 子 ：
MIECO 的 股 本 是210 million 。
1999 年 它 的 净 盈 利 是21 million 。 净 盈 利 就 是after tax profit 。
所 以 它 的 每 股 净 利EARNING PER SHARE (EPS) 就 是0.10 。
EPS = EARNING / NO. OF SHARES
EPS = 21 / 210
EPS ＝ 0.10

23/2/2001 它 的 股 价 是0.86 零 吉 。
PRICE = 0.86

PE 的 算 法 就 是 ：
PE = PRICE / EPS
PE = 0.86 / 0.10
PE = 8.6
所 以 它 的 本 益 比PE 就 是 8.6

PE 是 随 着 股 价 而 变 动 的 ， 股 价 上 升PE 就 会 随 着 上 升 ， 股 价 下 跌PE 就 会 随 着 下 跌 。
假 设MIECO 的 股 价 上 升 到2.00 零 吉 ， 它 的PE 就 是 ：2.00 / 0.10 = 20
假 设MIECO 的 股 价 下 跌 到0.50 零 吉 ， 它 的PE 就 是 ：0.50 / 0.10 = 5

如 果 我 们 想 买 股 ，PE 是 越 低 越 好 。PE 低 就 代 表 股 价 便 宜 。
如 果 我 们 想 卖 股 ，PE 是 越 高 越 好 。PE 高 就 代 表 股 价 昂 贵 。

有 的 时 候 股 价 纹 风 不 动 ，PE 也 会 变 动 的 。 例 如 ：
MIECO 的 股 价 停 留 在0.86 零 吉 ， 而 它 的 2000 年 最 新 业 绩 却 公 布 了 。
假 设 它的EPS 下 降 了 一 半 ， 只 剩0.05 零 吉 。 那 么 它 的PE 就 会 变 成17.2 。
PE = PRICE / EPS
PE = 0.86 / 0.05
PE = 17.2
假 设 它的EPS 上 升 了 一 倍， 达 到0.20 零 吉 。 那 么 它 的PE 就 会 变 成4.3 。
PE = PRICE / EPS
PE = 0.86 / 0.20
PE = 4.3
所 以 我 们 要 常 常 注 意 公 司 的 业 绩 ， 尤 其 是 公 司 公 布 业 绩 的 时 刻 。 有 时 我 们 需 要 自 己 算 算PE ， 不 能 依 赖 报 章 的 数 据 为 根 据 ， 因 为 报 章 通 常 迟 了 几 个 月 才 更 新 它 的 数 据 。 有 时 我 们 也 要 自 己 预 测 公 司 的PE ，

例 如MAYBANK 刚 刚 公 布 它 的 半 年 业 绩 ， 它 的 最 新EPS 是 半 年0.30 零 吉。 所 以 我 们 就 可 预 测 它 的 全 年EPS 将 是0.60 零 吉 。(0.30 x 2 = 0.60)
现 在MAYBANK 的 股 价 大 约 为14.40 零 吉 ， 所 以 它 的PE 应 该 是24 。
PE = PRICE / EPS
PE = 14.40 / 0.60
PE = 24


那 么 多 少 的PE 才 是 合 理 的 呢 ？
依 我 个 人 的 看 法 ， 只 要 它 比 定 期 存 款 的PE低 就 是 合 理 的 了 。

定 期 存 款 也 有 它 的PE 吗 ？
当 然 有 。

那 么 现 在 定 期 存 款 的PE 是 多 少 ？
今 天 定 期 存 款 的 利 息 是4.50 巴 仙 。
1.00 零 吉 的 存 款 一 年 只 能 赚0.045 零 吉 。
所 以PRICE ＝ 1.00 , EPS = 0.045
PE = PRICE / EPS
PE = 1.00 / 0.045
PE = 22.2
所 以 今 天 定 期 存 款 的PE 就 是22.2 。

那 么 知 道 了 合 理 的PE 对 我 们 就 有 所 帮 助 吗 ？
当 然 。 例 如 在1998 年 初 ， 综 合 指 数 大 约 是700 点 ， 当 时 的 定 期 存 款 利 息 却 高 达12.5 巴 仙 。 每1.00 零 吉 的 存 款 一 年 就 能 赚0.125 零 吉 。 它 的PE 就 是8 。
(1.00 /0.125 = 8)
当 时 KLCI 的 平 均PE 却 是14.08 。 所 以 两 者 比 较 起 来 ， 股 票 就 比 定 期 存 款 昂 贵 了 。我 们 只 要 知 道 股 票 是 昂 贵 的 ， 我 们 就 知 道 该 怎 样 做 了 。

那 么 今 天KLCI 的 平 均PE 是 多 少 呢 ？ 我 们 怎 样 获 得 这 数 据 ？
根 据KLSE 出 版 的 月 刊INVESTORS DIGEST ， 截 至2000 年12 月KLCI 的 平 均PE 是16.46 。 所 以 跟 定 期 存 款 的PE比 较 起 来 ， 现 在 的 股 票 是 便 宜 的 了 。


根 据 以 上 所 述 ，1998 年2 月KLCI 的PE 是14 ，2000 年12 月KLCI 的PE 是16 ， 那 一 个 时 候 的 股 价 才 算 便 宜？
乍 看 起 来14 的PE 是 比16 的PE 来 得 便 宜 。 其 实 不 然 ， 因 为 和 当 时 的 定 期 存 款 的PE 比 较 起 来 ，2000 年12 月 的 股 价 比 较 便 宜 。
所 以PE 的 用 法 一 定 要 灵 活 ， 不 能 死 板 。

BJGROUP 的 股 价 是0.33 零 吉 ，EON 的 股 价 是8.00 零 吉 。 请 问 那 一 个 的 股 价 比 较 便 宜 ？
如 果 单 单 看 价 钱 当 然 是BJGROUP 比 较 便 宜 。
但 是 如 果 用PE 来 衡 量 ，EON 的 股 价 却 远 比BJGROUP 来 得 便 宜 。
BJGROUP 是 亏 钱 的 公 司 ， 根 本 就 没 有PE 。 (没 有EPS 就 不 能 计 算PE)
EON 的EPS 是2.10 零 吉， 股 价8.00零 吉 ， 所 以 它 的PE 就 是3.8 。
跟KLCI 的 平 均PE 16比 较 起 来EON 的PE 4 是 太 便 宜 的 了 。

结 论 ：
本 益 比PE 是 用 来 衡 量 股 票 的 价 值 。 但 是 我 们 却 要 灵 活 应 用 ， 不 能 死 板 。 我 个 人 的 看 法 是PE 的 妙 用 是 预 测 未 来 的 股 价 ， 所 以 未 来 的PE 比 过 去 的PE 来 得 重 要 。 如 何 预 测 未 来 的PE 才 是 决 定 投 资 的 成 败 关 键 。 这 又 是 一 章 长 篇 大 论 ， 留 待 下 回 我 们 再 来 研 究 。

MAHSING ... Sept09

MAH SING 2QE JUN 2009 NET PROFIT DOWN 38% - UNBILLED SALES AT RM4.4 BIL

MAH SING GROUP reported Net Profit of RM23.0m for 2QE Jun 2009, a decline of 38% from RM37.2m a year ago mainly due to timing mismatch but it was optimistic about its outlook with remaining Unbilled Sales of approximately RM4.4 bil.

The Company in an EXCHANGE filing Aug 19, 2009 said that earnings were lower from a year ago due to the en-bloc sale of 'The Icon Jalan Tun Razak', East Wing in Kuala Lumpur. Revenue was 14.4% lower at RM167.2m from RM195.4m a year ago. EPS was 3.67 sen compared with 5.99 sen.

1HE JUN 2009 NET PROFIT DOWN 25%
For 1HE Jun 2009, Net Profit was RM45.6m compared with RM59.5m in the previous corresponding period while Revenue declined to RM317.5m from RM336.0m.

MAH SING said contributors for the current financial period were its residential projects Kemuning Residence, Hijauan Residence and Aman Perdana in the Klang Valley, Sierra Perdana and Austin Perdana in Johor Bahru, Southbay in Penang and its commercial projects, namely The Icon Jalan Tun Razak and Southgate Commercial Centre.

PLASTICS DIVISION
Apart from property development, the Group's plastics division also contributed to the earnings achieved. Property development contributed more than 90% to Operating Profit.

DEVELOPMENTS COMING ONSTREAM
Developments with new launches coming on-stream will be the Group's residential projects such as One Legenda, Kemuning Residence, Hijauan Residence, Garden Residence, Aman Perdana and Bayu Sekamat in the Klang Valley, Sri Pulai Perdana 2 and Sierra Perdana in Johor Bahru, Residence@Southbay and Legenda@Southbay in Penang and its commercial projects, namely StarParc Point in Klang Valley and Southbay City in Penang.

REMAINING ESTIMATED SALES VALUE OF RM4.4 BIL
MAH SING said its ' .... projects currently have a remaining gross development value (estimated sales value) and unbilled sales of approximately RM4.4 bil which will ensure earnings visibility for the next eight years ....".

On the performance, it had overshot its full year sales target by 1.2 times, achieving RM543m sales in just 7 ? months, including an en-bloc sale of its Corporate Block in Southgate for RM226m.

Unbilled sales from residential and commercial projects as at Jun 2009, as well as the en-bloc sale stood at RM818m, about 1.6 times the full year revenue recognized from the property division last year.

PROPERTY MARKET RESILIENT - UPCYCLE PREDICTED FOR 2H-CY2010
Group MD & CEO - LEONG HOY KUM said the strong take-up rate for its projects showed the property market was resilient. " .... Niche products with good branding coupled with the right concepts and designs in prime locations will continue to do well ...." he added. " .... We believe that the property market is gaining momentum for a likely upcycle in the second half of 2010, and are putting our money where our mouth is by going on an acquisition trail. We have recently acquired 115 acres of land for a medium to high end, gated and guarded project in Cyberjaya named Garden Residence, and are on the lookout for a few more pieces of land in our key markets ....".

PROPERTY SECTOR OUTLOOK

On the property sector outlook, an upbeat LEONG said a conducive financing environment with low interest rates and good financing packages had improved affordability for Malaysians.
CENTRAL BANK DATA SHOWED HOUSE FINANCING INCREASE
LEONG said that Bank Negara's (Central Bank) data released at end Jul 2009 showed demand for financing continued to increase mainly due to higher loans for the purchase of residential properties and the extension of personal loans.

Improved equity market sentiments would help boost wealth effect and " ....the property market is gaining momentum for a likely up cycle in the second half of 2010 .... Low interest rates, a buoyant stock market and better consumer sentiments have combined to boost demand for properties. Property prices are likely to rise in the liquidity-induced asset price inflation. There is plenty of liquidity in the banking sector as Malaysians have very high savings rates. This can be seen by the oversubscription of Government backed funds and overwhelming response to some of the recent launches ...." he said.

GOUCOLAND ... Sept09

Property developer GUOCOLAND MALAYSIA plans to roll out several high-end projects in stages at Emerald Rawang, Selangor, with estimated sales value of RM1.7 bil.

" .... Going forward, the RM1.7 bil GDV (estimated sales value) will have a bigger impact in terms of contribution. The projects are expected to be completed in 2016 or 2017 ...." ED - CHAN CHEE MENG told reporters on Aug 3, 2009.

EMERALD RAWANG is a joint-venture project between GUOCOLAND MALAYSIA and HONG BEE LAND sb, with the former as the project manager. GUOCOLAND MALAYSIA is a member of the HONG LEONG GROUP.

EMERALD TOWNSHIP IN RAWANG
The Emerald Rawang township comprises Emerald East and Emerald West. Emerald Rawang sits on about 1,000 acres (404.7 ha) of freehold land, comprising a mixed-use development ranging from link, cluster and semi-detached homes to high-end bungalows.

To date, a total of 1,300 homes have been built with sales of RM375m, CHAN said, adding the Company has targeted another RM100m sales by end 2009 on expectation of good demand for the semidee homes.

" .... We plan to launch four more phases this year (2009) because it is timely due to the recovery of the market and buyers are upgrading to more established projects ...." he said.

CHAN said several phases are planned for Emerald East with an estimated sales value of RM268m, with the launches expected in 2010 and 2011. On Emerald West, he said the projects will be much bigger, with an estimated sales value of RM1.51 bil comprising semidees, double-storey link houses and commercial properties. Emerald West, on a 682-acre site, will have facilities such as a jogging track, nine-hole golf course, a Chinese primary school and commercial square, CHAN said.

Another township called Emerald Hills will be located on a 400-acre site with more high-end projects to meet the growing demand, he said. He also said that joint-venture partner HONG BEE LAND is expected to finalise a venture with JUSCO by end 2009 to set up a shopping complex near the township. JUSCO malls are operated by AEON.

Mudajaya ... Sept09

It is looking at raising additional capital, most likely through a private placement, to increase share liquidity and further shore up its capital base.

As of the end of the second quarter 2009, it still had net cash of RM130 million, which is enough for them to start new projects.

Mudajaya has an outstanding capital base of about 374 million shares, with only about 104.44 million or 27.8% in free float. Its market capitalisation was RM1.25 billion based on yesterday’s closing price of RM3.34.

Among its major shareholders, privately held Dataran Sentral (M) Sdn Bhd has a 26.75% stake, while Mulpha Holdings Bhd and Lembaga Tabung Haji hold 23.4% and 10%, respectively. Another private entity, United Flagship Sdn Bhd, holds 9.83%.

On a meeting with CIMB Investment Bank which The Edge Financial Daily learnt took place two weeks ago, Ng denied that it was a briefing to prepare for the share placement, saying that it was to update analysts on the company’s ongoing projects and future plans.

It confirmed that it had submitted proposals for some of the big projects that the government was expected to roll out before year-end, including the RM7 billion Klang Valley LRT line extension.

It was in the midst of bidding for additional independent power producer (IPP) projects in India. Mudajaya’s 26%-owned Indian associate, RKM Powergen Pvt Ltd, is undertaking a RM5 billion coal-fired power plant project in the Janjgir-Champa district of Chhattisgarh, India. Phase 1 of the project, which is now 20% completed, was being financed with internally generated funds, according to Ng.

AMMB ... Sept09

AMMB ON NET PROFIT TARGET OF RM800M TO RM900M FOR FYE MAR 2010

AMMB HOLDINGS is cautiously optimistic of meeting consensus estimates on Net Profit of RM800m to RM900m for the FYE Mar, 2010 as the world economy is still in a fragile condition, says Group MD - CHEAH TEK KUANG.

Deputy Group MD and Group CFO - ASHOK RAMAMURTHY said the Group maintained its cautious stance for the full year despite an outperformance for 1QE Jun 30, 2009 as there were not enough trends currently to indicate that the country's economic contractions would not be as severe as expected and capital market activities would continue to hold up. With these two factors and if the banking sector is not affected as expected, then our profit performance for the full year will be much bigger he said after the Company's AGM and EGM on Aug 13, 2009.

AMMB 1QE JUN 2009 NET PROFIT HIGHER BY 27%
For 1QE 2009, AMMB's Net Profit jumped 27% to RM258.2m while Revenue improved to RM1.53 bil from RM1.41 bil same period last year.

LOANS GROWTH TARGET & ROE OF 17% TO 20%
CHEAH said AMMB aimed to achieve loans growth of 6% to 8% for FY10 versus about 9% in FY09, which was 'roughly in line with the system.

MID-TERM TARGETS
AMMB's mid-term targets include generating RM1.2 bil in Net Profit for FYE Mar 2012 and achieving ROE of 17% to 20% over the next three years.

Earnings growth is expected to be driven by business banking, investment banking as well as relationship banking and regional business while retail business remains its main earnings contributor.

CHEAH said the Banking Group would remain active in the Debt Capital market while focusing on selected profitable segments like small and medium enterprises (SMEs), governmental contracts, oil and gas, hire purchase and mortgages.

NO SPIKE IN NPLs
RAMAMURTHY said while the Group's NPLs had hardly spiked up in 1QE Jun 2009, Malaysia's economic contractions in the remaining three quarters (of 2009) " ...are still on the cards ..." and the lag effect on the banking sector in terms of rising NPLs was anticipated towards the end of 2009. CHEAH said if the economy were to deteriorate, the impact would cut across the board although the SMEs and corporate banking segments were unlikely to see major NPLs.

Sealink ... Sept09

It is looking towards increasing the contribution of its ship chartering business to cushion the slowdown in overseas demand for vessels that has affected the company’s shipbuilding division.

It prefers to hold on to the ships for better offers because of the softer demand and the lower prices of vessels which have fallen by 10% to 20% this year.

Most of the vessels being built by the company are in line with demand of the offshore oil and gas industry, which is the main client for its ship chartering unit.

The unsold vessels will be used to increase this revenue from this division. Its aim is for the chartering unit to contribute half of the group revenue by the end of next year, from around 40% currently.

Sealink is currently bidding for around RM300 million worth of chartering contracts locally, mainly from Petrolium Nasional Bhd (Petronas), and between RM100 million and RM200 million overseas, particularly in Southeast Asia.

Sealink, which has capacity to build 15 to 17 vessels annually, has seen its shipbuilding order book fall below RM100 million from RM140 million in the last quarter or just 40% of 2008 revenue, given the lower sale of new vessels. Of RM490 million worth of vessels currently being built, the company is looking for buyers for RM390 million of these vessels.

The company shipbuilding unit is affected by the economic downturn, where financing is still an issue for its potential customers who are mostly from Europe, Middle East and Australia.

While demand for vessels locally is still strong, Sealink is not keen to sell to its direct competitors in the chartering business. The move to have a larger fleet for its chartering division that offers higher margin seems to be the right strategy.

In the first half of 2009, Sealink’s vessel chartering division reported a lower operating margin of 48.1%, compared with 62.3% last year but it was still significantly higher than the 28.8% recorded by its shipbuilding unit.

The company has some RM120 million to RM130 million of charter contracts in hand currently, which will keep it busy until 2011. Currently, its chartering division has 33 vessels and Sealink might add four or five vessels to the fleet. About one third of its vessels are operating on long term charter contracts, ranging from one to seven years.

Despite the continued short supply of vessels for the oil and gas industry, Sealink could face stiff competition from established players in the ship chartering business.

Another concern is the decline in chartering rate with the Baltic Dry Index (BDI), which provides the indicator for ship chartering rate, having slipped to 2,427 points on Aug 26 after reaching its peak this year at 4,296 on June 4.2009. The BDI had peaked at 11,793 points in May 20 last year (2008).

DGate ... Sept09

It has proposed a private placement of 191.84 million new Dreamgate shares to raise RM32.09 million.

The proposed corporate exercise entailed the issuance of new Dreamgate shares of up to 20% of the current paid-up share capital. Based on the five-day average price up to Aug 26 of 18.59 sen and applying an assumed discount of 10%, the illustrative placement price is 16.73 sen.

Based on this illustrative issue price, the placement exercise would raise about RM32.095 million. The funds would be used for planned capital expenditure of its existing businesses, repayment of loan taken for capital expenditure (if any), and working capital.

Sime ... Sept09

Second Finance Minster Datuk Ahmad Husni Mohamad has denied that the Cabinet has given the green light for a Chinese government linked company to buy into Sime Darby.

But sources say the matter was discussed and approval by the Cabinet over end Aug 2009. Sources say Sime will issue new shares for the sale to the Chinese party. However, the discussion about the sale has not reached Sime’s management level.

Sime’s current issued share capital stands at six billion, PNB is the majority shareholder, holding a 51.95% stake, while the EPF has 13.95%. Upon completion of the sale, the Chinese party will be the third largest shareholder in SIme.

It is not clear at what price the block shares will be transacted.

Existing Sime shareholders face an earnings dilution from an expanding share capital after the share sale. However, some believe the benefits of the share sale will outweigh the impact of earnings dilution.

Should the deal go through, it will enhance political ties with china, which is seen as the emerging economic powers in the world.

China is a lucrative market but it is not easy to grab a slice of it. Local knowledge and networking are vital to be able to succeed in China. Having a Chinese shareholder will probably help open doors for Sime to expand its core businesses in China, where there is still vast potential for infra development. Also China needs large amount of food and commodities, such as edible oils for its huge population.

In Aug 2009, Musa Hitam said that the group will spend Rm3 billion over the next four to five years on edible oil refineries in china. With guidance from the Chinese shareholder, especially a party linked to the government, it may be more feasible for Sime now.

In fact, Sime has already formed a JV in China to expand downstream activities. The partnership will focus on the refining, storage and sale of palm oil and fast.

Sime’s existing core business in China includes port management and water concessions in Shangdong province. The group is also the exclusive dealer for all Caterpillar products in seven provinces plus Hong Kong and Macau. It also holds BMW dealership in Southern China.

Sime’s also mentioned that the group intends to grow its recurring income. And that includes its port management and water related businesses in China.
It is not known which party from China will buy the block of Sime shares. Coincidentally, the president of China’s sovereign wealth fund CIC announced that it would increase new overseas investments in 2009 by 10 times to several tens of billons of US dollars.

The SIme share sale offer may come at the right time for CIC to consider such an investment in the Malaysia.

Being highly populated country, China has been making efforts to secure the supply of commodities, foodstuff and minerals for its consumption.

净 资 产 NET TANGIBLE ASSET

什 么 是 NTA？它 有 什 么 重 要？

一 间 公 司 的 总 资 产( 不 包 括 无 形 资 产) 扣 除 所 有 的 负 债 后 的 所 馀 就 是 净 资 产.
净 资 产 就 是NET TANGIBLE ASSET. 简 称 NTA .
根 据 一 间 公 司 的 年 报 , 如 果 我 们 要 算 出 它 的 每 股 净 资 产 NET TANGIBLE ASSET 方 法 如 下 ：
我 们 只 要 把 公 司 的 股 东 基 金 SHAREHOLDERS FUND 除 以 它 的 股 本SHARE CAPITAL 再 减 去 它 的 无 形 资 产INTANGIBLE ASSET 就 可 得 到 它 的 每 股 净 资 产 .
每 股 净 资 产 就 是NET TANGIBLE ASSET per share 简 称 NTA per share . 或 者 NTA 就 可 以 了 .
现 在 还 有 一 个 更 简 单 的 方 法 可 以 很 快 的 得 到 一 间 公 司 的 最 新 每 股 净 资 产 , 那 就 是 通 过KLSE 的 网 站 .(www.klse.com.my)
现 在 的 股 票 公 司 每 三 个 月 就 需 要 呈 报 它 的 业 绩 , 我 们 只 要 看 一 看 它 的 每 季 的 业 绩 报 告 就 可 得 知 它 的 最 新 NTA , 因 为 每 间 公 司 都 有 列 明 它 的 最 新 NTA , 我 们 不 用 自 己 算.

那 么 NTA 是 从 那 儿 来 的 呢 ? 为 什 么 每 间 公 司 的 NTA 都 不 一 样 ?
每 一 间 公 司 在 刚 刚 成 立 时, 它 的NTA 一 般 上 都 是1.00 零 吉 .
让 我 举 2个 例 子 :
ABC 公 司 成 立 时 的 资 本 是100 million 零 吉, 分 成100 million 股 ， 所 以 每 股 的NTA 就 是1 零 吉 。 开 始 营 业 的 第 一 年 它 就 净 赚 了20 million 零 吉。 因 此 在 呈 报 第 一 年 的 业 绩 时 它 的 股 东 基 金 就 是120 million 零 吉 。
因 为 它 的 股 本 还 是 一 样 的100 million 股 ， 所 以 它 的 每 股 净 资 产 NTA 就 是1.20 零 吉。
(120 / 100 = 1.20)
XYZ 公 司成 立 时 的 资 本 是 200 million 零 吉, 分 成 200 million 股 ， 所 以 每 股 的NTA 就 是1 零 吉 。 开 始 营 业 的 第 一 年 它 就 净 亏 了40 million 零 吉。 因 此 在 呈 报 第 一 年 的 业 绩 时 它 的 股 东 基 金 就 是160 million 零 吉 。
因 为 它 的 股 本 还 是 一 样 的 200 million 股 ， 所 以 它 的 每 股 净 资 产 NTA 就 是0.80 零 吉。
(160 / 200 = 0.80)
每 间 公 司 的 业 绩 都 不 一 样 所 以 它 们的 NTA 是 不 同 的 。

那 么 NTA 有 什 么 重 要 ？
NTA 越 高 就 是 说 公 司 的 累 积 盈 利 越 多 。NTA 高 的 股 票 派 送 红 股 的 机 会 就 越 高 。 假 设ABC 公 司 连 续 5 年 都 净 赚 20 million ， 过 了5 年 它 的 累 积 盈 利 就 有100 million ， 加 上 它 本 来 的 股 本100 million ， 它 的 股 东 基 金 就 有200 million 。 所 以 它 的 每 股 NTA 就 是2.00 零 吉 。 因 此 它 就 有 能 力 派 送1 对1 的 红 股 。 当 然 派 送 了1 对1 的 红 股 之 后 它 的 NTA 就 会 变 成1.00 零 吉 。
其 实 红 股 对 股 东 是 没 有 益 处 的 ， 就 好 像 我 们 把 自 己 的 一 张2 零 吉 的 钞 票 换 成 两 张1 零 吉的 钞 票 而 已 。 数 量 增 加 ， 购 买 力 没 有 增 加。

NTA 只 有1.50 零 吉 的 股 票 可 以 分 发 红 股 吗？
只 要 是 赚 来 的 就 可 以 派 送 红 股 。 但 是 因 为 它 的NTA 只 有1.50 零 吉 所 以 它 最 多 只 能 每2 股 送1 股。

红 股 是 怎 样 送 的？为 什 么 有 的 股 票 可 以1 张 送 多 张 ？
举 个 例 子 ：XYZ 现 在 的NTA 是9.60 零 吉 。 它 的 票 面 值 是1 零 吉 。
如 果 它 要 每 1股 送1 股 ， 在 完 成 之 后 它 的NTA 就 会 变 成4.80 零 吉。(9.60 / 2 = 4.80)
如 果 它 要 每 1股 送3 股 ， 在 完 成 之 后 它 的NTA 就 会 变 成2.40 零 吉。(9.60 / 4 = 2.40)
如 果 它 要 每 1股 送7 股 ， 在 完 成 之 后 它 的NTA 就 会 变 成1.20 零 吉。(9.60 / 8 = 1.20)
它 不 能 每1 股 送9 股 ， 因 为 它 的NTA 在 完 成 之 后 只 剩 下0.96 零 吉 ， 少 过 它 的1.00 零 吉 票 面 值 。(9.60 / 10 = 0.96)
所 以 红 股 要 如 何 送 法 是 由 公 司 自 己 决 定 的 。

为 什 么 有 些 公 司 年 年 赚 大 钱 也 从 来 没 有 发 红 股 ，而 它 的NTA 却 没 有 增 加 ？
有 些 公 司 每 年 都 把 赚 来 的 钱 当 作 股 息 分 发 给 股 东 ， 所 以 它 的NTA 就 不 会 增 加。NESTLE 就 是 例 子。

人要发达是靠“钱 赚 钱”，不是靠 “人 赚 钱 ”

世 俗 人 眼 中 的 成 功 ＝ 有 钱

在 学 校 比 分 数 ， 在 社 会 比 金 钱 ， 现 今 的 社 会 是 用 金 钱 来 衡 量 一 个 人 的 成 功 与 否 。 如 果 你 才 高 八 斗 ， 拥 有 一 个 博 士 的 衔 头 ，身 家 却 不 到 百 万 ， 你 不 算 成 功 。 但 是 ， 如 果 你 只 是 中 学 毕 业 ， 却 拥 有 千 万 的 身 家 ，没 有 人 敢 说 你 不 成 功 。

教 育 的 水 平 与 财 富 的 多 寡 是 没 有 关 系 的 ， 但 是 一 般 上 ，教 育 水 平 高 的 人 ，所 领 取 的 薪 酬 会 比 教 育 水 平 低 的 人 来 得 高 却 是 不 争 的 实 事 。 可 惜 ， 薪 酬 的 高 低 与 财 富 的 多 寡 是 没 有 关 系 的 。

一 个 人 的 教 育 水 平 高 ， 他 的 薪 酬 就 会 高 ， 也 就 是 说 他 赚 钱 的 本 领 高 ， 这 就 是 所 谓 的 “人 赚 钱 ”本 领 。但 是 财 富 的 多 寡 是 取 决 以 “ 钱 赚 钱 ” 的 本 领 ， 跟 “人 赚 钱 ”的 本 领 是 没 有 关 系 的 。 人 要 发 达 是 靠 钱 赚 钱 ， 不 是 靠 人 赚 钱 。

很 多 人 都 有 这 样 错 误 的 观 点 ： 我 这 样 少 钱 ， 怎 样 用 钱 来 赚 钱 ？ 好 ， 让 我 们 来 举 个 例 子 ， 如 果 今 天 你 的 身 家 是 一 百 万 ， 你 要 多 久 才 能 成 为 千 万 富 翁 ？ 如 果 你 的 答 案 是 十 年 ， 恭 喜 你 ， 你 已 经 懂 得 钱 赚 钱 的 本 领 ， 因 为 你 不 可 能 是 用 人 赚 钱 的 本 领 在 十 年 内 赚 到 九 百 万 。 如 果 你 的 答 案 是 ， 你 这 一 辈 子 无 法 赚 到 九 百 万 而 成 为 千 万 富 翁 ， 那 么 你 就 是 一 个 只 懂 得 “人 赚 钱 ”的 平 凡 人 。 话 在 说 回 头 ， 如 果 你 懂 得 钱 赚 钱 的 本 领 ， 能 在 十 年 内 把 百 万 变 千 万 ， 那 么 同 样 的 你 也 能 把 十 万 变 百 万 ， 或 一 万 变 十 万 。 以 此 类 推 ，从 一 万 变 千 万 ， 也 只 需 要 短 短 的 三 十 年 。 所 以 说 ， 你 不 需 要 太 多 的 钱 ， 只 要 你 懂 得 钱 赚 钱 的 本 领 。

每 个 人 都 说 要 成 为 百 万 富 翁 很 难 ， 但 是 假 如 你 问 一 个 白 手 起 家 的 千 万 富 翁 ， 如 果 要 他 们 从 零 开 始 ， 要 他 们 去 赚 第 一 个 百 万 ， 他 们 会 觉 得 不 难 ， 理 由 很 简 单 ，因 为 他 们 已 经 有 了 钱 赚 钱 的 本 领 ， 只 要 他 们 先 用 人 赚 钱 的 方 法 去 赚 几 千 元 做 为 本 钱 就 可 以 了 。

AXIATA ... Sept09

AXIATA GROUP in an EXCHANGE filing Aug 27, 2009 said that its 2QE Jun 2009 Net PATMI was up seven-fold QoQ to RM527m, showing further signs of recovery seen in 1QE Mar 2009. Normalised PATAMI expanded a significant 23% to RM422m. The Group also posted strong RM3.2 bil Revenue for the quarter, up 10% from the previous quarter, with growth seen in all key operating companies.

REGIONAL SUBSCRIPTION GROWS
Regional mobile subscribers for the Group grew to almost 100m in the same period. Prudent cost management saw EBITDA grew substantially by 19% in the same period to RM1.2 bil, due to stable margins at CELCOM MALAYSIA and improved performance at PT EXCELCOMINDO PRATAMA tbk, DIALOG GROUP (Sri Lanka) and AXIATA BANGLADESH ltd.

MALAYSIAN OPERATIONS
Excellent execution of segmented marketing in both prepaid and postpaid and the continued focus on mobile broadband saw CELCOM recording the highest quarterly growth in two years. Despite a challenging macro environment, Revenue grew strongly at 5% QoQ to RM1.5 bil, marking one of the best quarters for CELCOM. EBITDA improved by 3% QoQ whilst PATAMI was RM367m, an increase of 3% QoQ.

MOBILE BROADBAND GROWS
The quarter saw CELCOM strengthening its leadership position in mobile broadband with 114,000 Net Additions pushing total subscribers to 420,000 representing an increase of 37% QoQ. For 2QE Jun 2009, mobile broadband contributed 5% of Revenue - up from 4% in the last quarter.

CELCOM is moving into the next phase of its transformation plan focusing on customer touch points and human capital. This will be done concurrently with an accelerated broadband push and continued cost management.

INDONESIAN OPERATIONS
Maximisation of yield and strict cost management saw positive sequential improvements in Indonesia. The focus on quality subscribers that began in 1QE Mar 2009 delivered improved revenue, up 14% through an increase in total outgoing minutes.

AXIATA said that strict cost management as well as a lower direct expense from SIM supply reduction initiatives, to curb calling card phenomena in Indonesia, resulted in a 31% increase in EBITDA QoQ . PATAMI in the period increased by more than 100% to IDR 1,01 bil helped by operational improvements and favourable forex gains.

EXCELCOMINDO will continue to emphasise yield via quality revenue generating subscribers and improving network utilization and cost optimization.

BANGLADESH OPERATIONS
Overall improvement continued in AxB following the encouraging turnaround to date. Strong momentum continued in mobile revenue growth which led to total revenue improving for the third consecutive quarter.

The Company said that concerted focus on cost management has sustained turnaround efforts with better overall performance. The quarter saw a marked increase in EBITDA - up 53% QoQ. The significant increase in EBITDA was due to lower subscriber acquisition and related costs as well as efficient cost containment.

Similarly PATAMI was up significantly by more then 100% to BDT598m due to, prudent spending and cost management. Aggressive marketing strategies will increase moving forward, to ensure sustainable improvements in Bangladesh.

SRI LANKAN OPERATIONS
On-going cost reduction strategies at DIALOG GROUP has seen further quarterly improvements in operations with Group Revenue increasing 4% QoQ driven by growth in DIALOG MOBILE against a very challenging backdrop. Concurrently and amidst fierce competition,

DIALOG achieved 2% subscriber growth and improved MOUs by adopting more competitive pricing strategies. The focus on cost saw improvement in EBITDA - up by 58% QoQ. However, network modernization efforts to improve future network Capex and Opex efficiency resulted in accelerated depreciation of SLR6 bil which impacted PATAMI.

Moving forward DIALOG will continue the strict cost rescaling initiatives, which has already seen early savings in manpower costs of 11% QoQ from the VRS programme conducted last quarter.

DIALOG is looking forward to becoming the first mobile operator to extend its GSM network in the newly liberated areas of the Northern Province of Sri Lanka to capitalize on growth opportunities.

INDIAN AFFILIATE
IDEA continues strong momentum despite competitive pricing pressures from new entrants. Pro forma quarterly performance after adjustment for changes in interconnect rates showed excellent growth across all key measurements with revenue and EBITDA up 6% and 7% respectively. PAT was also up an impressive 11% for the quarter.

The Group is expecting to complete the IDEA-SPIEC merger by 3Q-CY2009.

AXIATA's Chairman - AZMAN HJ MOKHTAR said that " .... We are very pleased with the performance achieved this quarter. The Group's focus on operations and cost has garnered positive results, a resounding confirmation that we are on the right track. Although economic conditions appear to be improving volatility is still an issue. However, given the continued improvements this quarter, and our well positioned balance sheet, now de-levered through proceeds of the Rights Issue, we are confident that our momentum will remain strong in Malaysia and regionally ....".

President & Group CEO - JAMALUDIN IBRAHIM said " .... We are happy with the continued strong results, now for two consecutive quarters, with both the top line revenue growth and bottom line profit improvements. It should be particularly noted that for the quarter, all key Operating companies, including IDEA, showed improvements in almost all key financial metrics. The stellar results indicate that we are going down the right path with the strategies implemented at the beginning of the year (2009). On the operating companies, we are especially pleased with the strong performance seen at CELCOM and IDEA, as well as the major turnaround at XL and AxB. The quarter also saw improvements at DIALOG with improved EBITDA; however, there is still much room for improvement ....".

MOVING FORWARD
" .... Based on the performance so far, we expect the Group's full year revenue and EBITDA growth to be towards the higher end of our KPIs, and for ROE to be moderately above what was earlier guided. This is of course subject to FOREX fluctuations or other external factors that could materially affect our performance in the second half of the year (2009) ...." added JAMALUDIN. With the uncertain economic environment, the overall focus for 2009 on EBITDA and cash has so far paid off.

Given the improvement in demand and the strong revenue trend seen in the quarter, selective and new organic investments will also be made to increase revenue in 2009 and to pave the way for 2010 said JAMALUDIN.

AXIATA's PROFILE
AXIATA is a Government controlled entity involved in mobile telco operations focussing in high growth low penetration emerging markets.

AXIATA has controlling interests in mobile operators in Malaysia, Indonesia, Sri Lanka, Bangladesh and Cambodia with significant strategic stakes in India, Singapore and Iran. India and Indonesia are amongst the fastest growing markets in the world.

In addition, the holding company has stakes in non-mobile telecommunication operations in Thailand and Pakistan.

The Group's mobile subsidiaries and associates operate under the brand name 'Celcom' in Malaysia, 'XL' in Indonesia, 'Dialog' in Sri Lanka, 'AKTEL' in Bangladesh, 'HELLO' in Cambodia and 'Idea' in India, 'M1' in Singapore and 'MTCE' in Iran (Esfahan).

As of Jun 2009, the Group, including its units and associates, has close to 100m mobile subscribers in Asia.

GROUP REVENUE & EMPLOYMENT
The Group Revenue for 2008 was RM11.3 bil. The Group provides employment to over 25,000 people across Asia.

AXIATA's vision is to be a regional champion by 2015 by piecing together the best throughout the region in connectivity, technology and people.

MPHB ... Sept09

MULTI-PURPOSE HOLDINGS' 51% unit, MAGNUM CORP sb, received approval for a new 4-digit (4D) game which will incorporate a jackpot element, slated to be launched at end-2009 said MULTI-PURPOSE in an EXCHANGE filing on Jul 24, 2009.

REDUCING ILLEGAL LOTTERY
OSK RESEARCH said that the move will certainly reduce the market share of illegal operators, and hence benefit all the number forecasting companies in the long run. The illegal numbers market is estimated at 1-to-1.5 times that of the legal NFO market, which was valued at about RM8 bil as at end-2008, according to OSK RESEARCH.

Given that MAGNUM has the single largest market share in the 4D game and that the game is known to be the most popular in the illegal NFO market, they expect this move to give a significant boost to MAGNUM's revenue growth said OSK RESEARCH. The research house also said the Government had always resisted the move to increase gaming taxes as it would only give leeway for illegal operators to gain market share at the expense of the legal operators. Gaming and corporate taxes are estimated to amount to more than RM1.5 bil per annum.

IMPACT ON BERJAYA TOTO
OSK RESEARCH said the approval of the new 4D game for MAGNUM might result in BTOTO facing a marginal slip in its market share, especially for its 4D games but unlikely to cause a drastic drop in BTOTO's revenue growth.

BTOTO's non-4D games have a significantly higher matrix and hence the tendency for a higher jackpot roll-over element, which is the main contributor of the Group's super-normal growth rates the brokerage noted. Currently, BTOTO's 4D games contribute about 70% to 75% of its total NFO revenue.

IMPACT ON TANJONG PLC

OSK reckons that TANJONG plc, which runs its gaming operations via PAN MALAYSIAN POOLS sb may get a share of the action. They believe that the Government may also offer a jackpot element in TANJONG's 3D and potentially, 4D games, so as to be seen as providing a more level playing field for numbers forecasters. HWANGDBS VICKERS RESEARCH says that the policy initiatives are crucial to help players regain lost ground due to the rise in illegal gaming activities. HWANGDBS said that the potential impact on the new games would be minimal on TANJONG's bottom line, especially in the first one to two years. The brokerage believes investors should continue to focus on TANJONG?s strong fundamentals with resilient earnings from both its NFO and power generation businesses, and an attractive net yield of 5%.

HARTALEGA ... Sept09

HARTALEGA HOLDINGS' Net Profit for 1QE Jun 2009 doubled to RM26.3m rom RM12.8m a year ago. In the Company's filing - Aug 14, 2009, it said earnings were boosted by more efficient production process and lower price of raw material for both synthetic and natural latex.

Revenue rose 42.7% to RM125.3m from RM37.5m. PBT jumped 120.9% to RM32.7m from RM14.8m. EPS was 10.88 sen versus 5.32 sen.

QOQ, the Group's sales revenue increased by 42.7% and PBT increased by 120.9%. " .... The significant achievement in revenue and PBT is in line with the Group's continuous expansion in production capacity, higher nitrile sales mix, and improvement in production process, lower synthetic and natural latex price and favourable exchange rate ...." it said.

PROSPECTS
On the prospects, it said the products were sold to the health care Industry. Glove consumption is inelastic in the medical environment because the usage of glove is mandatory for disease control.

" .... Our nitrile synthetic glove was well accepted by the end users due to it high quality and elastic properties that mimic that of a natural rubber glove. Our protein free and competitively priced nitrile glove has made it more affordable for the acute health care industry to continue switching from the natural rubber to our synthetic nitrile glove to avoid the protein allergy problem ...." it said.

Aliran ... Sept09

Its 49% associate, Equiventures Sdn Bhd, has reached a settlement with the state government of Johor (SGJ), with Equiventures agreeing to accept a discounted payment of RM314.47 million for receivables owed by the state government pursuant to its privatisation agreement.

The settlement was reached in order to resolve, in the spirit of co-operation, outstanding receivables due to Equiventures from SGJ, as at Dec 31, 2008.

The full amount owed by SGJ totalled RM385.72 million, but following a deed of settlement executed on Aug 25, Equiventures had agreed to a discount on the payment. The payments owed by SGJ is for Equiventure’s water concession in Johor, in which SGJ was to have paid it a fixed monthly payable and bulk sales rate, as provided for in the concession payments. However, Equiventures had commenced legal proceedings against SGJ due to its failure to make the concession payments.

Equiventures had obtained two judgments against SGJ, dated Feb 13, 2008, which SGJ had appealed against, and Nov 14, 2008, for parts of the outstanding payment, it said.

While the amount outstanding to Equiventures as at Dec 31, 2008 amounted to RM385.72 million, at the request of SGJ, Equiventures had agreed to grant a discount, and accepted RM314.47 million as full and final settlement of the total outstanding payment. In consideration of the discounted amount, SGJ would pay RM153 million upon the execution of the deed of settlement. Equiventures had also agreed to a further discount of RM1.5 million for the remaining RM161.47 million, to be paid on or by Sept 30 2009.

With regard to the civil suit, a consent judgement will be entered in favour of Equiventures against SGJ in the sum of RM385.72 million in full and final settlement of the claim in the civil suits. All other interlocutory proceedings shall be withdrawn with no order as to costs.

However, that the full amount of RM385.72 million would become immediately due and payable by SGJ in the event of any delay and/or default of its payment obligations, and the consent judgment would be enforceable against SGJ. SGJ shall not object to or delay the enforcement of the consent judgment. Upon fulfilment of the terms of the settlement, SGJ and Equiventures would have no further claims, liabilities and/or demands against each other, in respect of matters arising up to Dec 31, 2008.

Meanwhile, the settlement was expected to have a positive impact on the group (ALIRAN)’s earnings and net assets for the financial year ending Dec 31, 2009, due to write backs from the doubtful debts previously provided.

AIRB had announced a similar settlement on Tuesday, regarding debt owed to its unit, Southern Water Corp Sdn Bhd (SWC), by Syarikat Air Johor Sdn Bhd (SAJ), in which SWC had granted SAJ a RM30.25 million discount on a RM162.6 million debt owed by SAJ.

LTKM ... Sept09

An egg producer, said processed glass production could become its number one business in the future following its move to diversify.

The company may slot in as the "second or third" largest processed glass producer once its factory in Klang is ready in seven to eight months.

LTKM has set up Lumiglass Sdn Bhd headed by Alexander Akguel for the operation that involves an investment of RM15 million on equipment and machinery. About RM12 million is to come from borrowings.

As with any new business, there will be gestation period before it can become significantly profitable.

LKTM's egg business, he said, had become saturated as more players have entered the market. This was compounded with the flat growth of the local egg consumption in the past five to 10 years, despite the growing population. Nevertheless, at an average of 278 eggs one consumes every year, Malaysia is one of the top egg-eating nations in Asia, he added. Japan, France and China are among the world's top egg-consuming nations..

LTKM produces 1.3 million to 1.4 million eggs a day from its farm in Air Keroh, Malacca.