1.歡迎他下班回家
2.關心他的工作事業
3.精心準備晚餐
4.滿足他的生理需要
5.給他一份結婚紀念日的驚喜
6.欣賞他的才華、個性
7.在氣氛好時才討論問題
8.讓他看他心愛的球賽
9.把自己打扮得整潔漂亮
10.照顧他的父母
Friday, October 30, 2009
Favelle Favco Bhd ... Oct09
Currently it is bidding for RM500mil to RM600mil worth of projects both locally and overseas. Favelle Favco is bidding to manufacture customised cranes for industries, such as offshore oil and gas as well as construction.
It has also been pre-qualified to tender for the Petrobras project in Brazil, but the amount and its chances of winning are unknown.
Favelle Favco’s order book currently stands at RM500mil to RM600mil, mainly from the oil and gas, and construction sectors, which should keep the company busy till 2010.
Up to 2008, crane fabrication contributed an average of 83% to the company’s total revenue, while spare parts accounted for 10% and the rest from maintenance and rental of crane parts.
Favelle Favco was also placing more emphasis on its smaller business segment of services of cranes and supply of parts due to demand.
Concerns are on the company’s thin margins due to higher costs. It only enjoyed a gross margin of 10% on the revenue generated from making cranes as the cost of fabricating cranes made up a major part of its expenses.
As at Dec 31, 2008, the company had net debts amounting to RM102.1mil.
It has also been pre-qualified to tender for the Petrobras project in Brazil, but the amount and its chances of winning are unknown.
Favelle Favco’s order book currently stands at RM500mil to RM600mil, mainly from the oil and gas, and construction sectors, which should keep the company busy till 2010.
Up to 2008, crane fabrication contributed an average of 83% to the company’s total revenue, while spare parts accounted for 10% and the rest from maintenance and rental of crane parts.
Favelle Favco was also placing more emphasis on its smaller business segment of services of cranes and supply of parts due to demand.
Concerns are on the company’s thin margins due to higher costs. It only enjoyed a gross margin of 10% on the revenue generated from making cranes as the cost of fabricating cranes made up a major part of its expenses.
As at Dec 31, 2008, the company had net debts amounting to RM102.1mil.
Thursday, October 29, 2009
Atis Corp Bhd ... Oct09
Atis is raising its shareholding in property developer Mutiara Goodyear to 30.28% with the proposed acquisition of an additional 9.26% stake for about RM20.74 million cash.
The 9.26% comprised of 21.38 million shares acquired from Lim Beng Guan and Laman Arif Sdn Bhd. Lim is non-independent non-executive director and shareholder of Atis also. Prior to the acquisition, Lim owns 6.28 million Mutiara shares or 2.72% and Laman Arif 15.1 million shares or 6.54%.
Cumulatively, the two vendors total cost of investment in the 21.38 million Mutiara shares from October 2007 to October 2008 was about RM21.27 million or 99.46 sen per Mutiara share.
When the acquisition is completed, Atis’s equity stake in Mutiara would increase to 30.28%.
Atis will then be able to account the investment of equity interest in Mutiara using equity method. It would be able to consolidate Mutiara’s financial results into Atis’s group accounts.
Mutiara Group develops residential and commercial properties in Klang Valley and Penang and has strategic landbank in these two areas.
The 9.26% comprised of 21.38 million shares acquired from Lim Beng Guan and Laman Arif Sdn Bhd. Lim is non-independent non-executive director and shareholder of Atis also. Prior to the acquisition, Lim owns 6.28 million Mutiara shares or 2.72% and Laman Arif 15.1 million shares or 6.54%.
Cumulatively, the two vendors total cost of investment in the 21.38 million Mutiara shares from October 2007 to October 2008 was about RM21.27 million or 99.46 sen per Mutiara share.
When the acquisition is completed, Atis’s equity stake in Mutiara would increase to 30.28%.
Atis will then be able to account the investment of equity interest in Mutiara using equity method. It would be able to consolidate Mutiara’s financial results into Atis’s group accounts.
Mutiara Group develops residential and commercial properties in Klang Valley and Penang and has strategic landbank in these two areas.
Wednesday, October 28, 2009
GCORP ... Oct09
GENERAL CORP NET PROFIT FOR 2QE JUL 2009 INCREASES 5-FOLD
GENERAL CORPORATION's Net Profit for 2QE Jul 2009 rose more than five-fold to RM24.5m from RM4.5m same quarter a year ago due mainly to its Singapore unit's construction projects.
Revenue surged more than two-fold to RM418.1m from RM178.7m. EPS rose to 8.26 sen from 1.53 sen, while Net Assets per share rose to RM2.04 from RM1.89.
NO DIVIDEND DECLARED
No dividend was declared.
1HE JUL 2009 NET PROFIT ROSE 300%
For 1HE Jul 2009, Net Profit rose more than three times to RM36.0m from RM10.1m same period a year ago. Revenue surged two-fold to RM642.4m from RM273.9m a year earlier, while EPS rose to 12.13 sen from 3.43 sen.
GENERAL CORPORATION's Net Profit for 2QE Jul 2009 rose more than five-fold to RM24.5m from RM4.5m same quarter a year ago due mainly to its Singapore unit's construction projects.
Revenue surged more than two-fold to RM418.1m from RM178.7m. EPS rose to 8.26 sen from 1.53 sen, while Net Assets per share rose to RM2.04 from RM1.89.
NO DIVIDEND DECLARED
No dividend was declared.
1HE JUL 2009 NET PROFIT ROSE 300%
For 1HE Jul 2009, Net Profit rose more than three times to RM36.0m from RM10.1m same period a year ago. Revenue surged two-fold to RM642.4m from RM273.9m a year earlier, while EPS rose to 12.13 sen from 3.43 sen.
Sarawak Energy Bhd ... Oct09
It is to be taken private by its major shareholder, State Financial Secretary of Sarawak (SFSS), for RM1.4 billion cash.
SFSS had through Delegateam Sdn Bhd made anunconditional voluntary offer for the remaining shares it does not own in SEB at RM2.65 apiece.
SFSS, which is responsible for financial management in Sarawak, currently holds a 64.65% stake or 987.5 million shares in the state power provider.
SEB’s current share base is 1.5 billion shares. The second largest shareholder is the Employees Provident Fund Board, which holds 5.09%.
SFSS does not intend to maintain SEB’s listing status. The utility had requested for the trading of its shares to be suspended yesterday.
Its net asset per share as at June 30 2009 was RM1.90. The utility saw its bottom line declining by 46.5% year-on-year in the second quarter of FY2009 to RM44.6 million from RM83.4 million on higher finance costs as well as losses from an associate.
SEB is carrying in its books short-term debts of RM291.5 million and non-current liabilities of RM2.8 billion, while its cash holding amounts to RM104.4 million.
SFSS had through Delegateam Sdn Bhd made anunconditional voluntary offer for the remaining shares it does not own in SEB at RM2.65 apiece.
SFSS, which is responsible for financial management in Sarawak, currently holds a 64.65% stake or 987.5 million shares in the state power provider.
SEB’s current share base is 1.5 billion shares. The second largest shareholder is the Employees Provident Fund Board, which holds 5.09%.
SFSS does not intend to maintain SEB’s listing status. The utility had requested for the trading of its shares to be suspended yesterday.
Its net asset per share as at June 30 2009 was RM1.90. The utility saw its bottom line declining by 46.5% year-on-year in the second quarter of FY2009 to RM44.6 million from RM83.4 million on higher finance costs as well as losses from an associate.
SEB is carrying in its books short-term debts of RM291.5 million and non-current liabilities of RM2.8 billion, while its cash holding amounts to RM104.4 million.
Tuesday, October 27, 2009
Luxchem ... Oct09
A trading company specializing in industrial chemicals and materials. It has a large customer base of over 700 in 14 countries and supplies 400 types of chemicals and 100 grades and types of polyester resins.
It manufactured polyester resin with technology transfer from Japan.
Its trading division is still its largest, accounting for 77% of turnover and 60% of pretax profit for 2Q2009. Around 19% of its trading revenue comes from the sale of synthetic latex (nitrile) to companies like Kossan, Hartalega, Top Glove, Supermax, Riverstone and :Latexx. Another 4% is derived from the sale of latex chemicals such as coagulants and dusting powder.
Luxchem, which sources its nitrile from Zecon Chemicals of Japan, has a market share if around 20%. Around 90% of the nitrile is used in the rubber glove industry. Nitrile gloves normally command a premium over natural latex gloves as they do not contain protein and thus do not cause allergic reactions.
Others like Luxchem, LG Chemical of Korea and Nippon A&L Inc of Japan import nitrile into Malaysia.
Other products sold by Luxchem’s trading division include polyester resins produced by its manufacturing division ….
Producing and trading polyester resins account for around half of Luxchem’s profits.
It has an estimated 40% share of the polyester resin market. Polyester resin is widely used in the vessel, automotive, housing, industrial equipment and construction industries. It is also used in the fiberglass industry to mould boats, automotive parts, bathtubs and industrial equipment where strength and anti-corrosive properties are required
It is in strong financial position, with a net cash of RM59 million as at June 30, 2009. This represents a cash per share of 45.5 sen. With a cash generated business and low capital expenditure, Luxchem is able to pay good dividends.
Although its earnings growth is likely to lag behind those of rubber glove companies, as only 23% of its trading revenue is derived from supplying the rubber glove industry.
It manufactured polyester resin with technology transfer from Japan.
Its trading division is still its largest, accounting for 77% of turnover and 60% of pretax profit for 2Q2009. Around 19% of its trading revenue comes from the sale of synthetic latex (nitrile) to companies like Kossan, Hartalega, Top Glove, Supermax, Riverstone and :Latexx. Another 4% is derived from the sale of latex chemicals such as coagulants and dusting powder.
Luxchem, which sources its nitrile from Zecon Chemicals of Japan, has a market share if around 20%. Around 90% of the nitrile is used in the rubber glove industry. Nitrile gloves normally command a premium over natural latex gloves as they do not contain protein and thus do not cause allergic reactions.
Others like Luxchem, LG Chemical of Korea and Nippon A&L Inc of Japan import nitrile into Malaysia.
Other products sold by Luxchem’s trading division include polyester resins produced by its manufacturing division ….
Producing and trading polyester resins account for around half of Luxchem’s profits.
It has an estimated 40% share of the polyester resin market. Polyester resin is widely used in the vessel, automotive, housing, industrial equipment and construction industries. It is also used in the fiberglass industry to mould boats, automotive parts, bathtubs and industrial equipment where strength and anti-corrosive properties are required
It is in strong financial position, with a net cash of RM59 million as at June 30, 2009. This represents a cash per share of 45.5 sen. With a cash generated business and low capital expenditure, Luxchem is able to pay good dividends.
Although its earnings growth is likely to lag behind those of rubber glove companies, as only 23% of its trading revenue is derived from supplying the rubber glove industry.
TFP Solutions Bhd ... Oct09
An information and communications ICT service provider, expects its financial performance to improve in the second half of 2009 on the back of an improving economy.
It recorded a net loss of RM686,000 in its first quarter (1Q) ended March 31, 2009, on the back of a RM2.57 million revenue. The net loss narrowed to RM399,000 in the second quarter as revenue improved to RM3.09 million.
The company propose to dispose of two units of four-storey shop-offices at Bandar Puteri, Puchong, Selangor for RM5.1 million cash.
The company plans to use RM2.5 million of the proceeds to buy a new building to house TFP Solutions’ six subsidiary companies under one roof.
From the balance of the proceeds, the company would use RM1.1 million to repay loans and the rest for working capital.
TFP Solutions had earlier expressed interest to venture overseas — notably Vietnam, Thailand and Indonesia — but the economic downturn put paid to the plan. Jamaludin said the company would now be looking at expanding at a slower pace and could not determine when it could revive the overseas venture plan.
It recorded a net loss of RM686,000 in its first quarter (1Q) ended March 31, 2009, on the back of a RM2.57 million revenue. The net loss narrowed to RM399,000 in the second quarter as revenue improved to RM3.09 million.
The company propose to dispose of two units of four-storey shop-offices at Bandar Puteri, Puchong, Selangor for RM5.1 million cash.
The company plans to use RM2.5 million of the proceeds to buy a new building to house TFP Solutions’ six subsidiary companies under one roof.
From the balance of the proceeds, the company would use RM1.1 million to repay loans and the rest for working capital.
TFP Solutions had earlier expressed interest to venture overseas — notably Vietnam, Thailand and Indonesia — but the economic downturn put paid to the plan. Jamaludin said the company would now be looking at expanding at a slower pace and could not determine when it could revive the overseas venture plan.
Monday, October 26, 2009
Perisai ... Oct09
Perisai is the first company in the O&G industry in the Asia-Pacific region to be awarded the accolade for recognition of Perisai’s potential contribution to the development of marginal and uneconomical offshore oil and gas (O&G) fields using MOPSU (mobile offshore production & storage unit) technology. It appears that the MOPSU will change the global landscape of O&G sector almost instantaneously.
Without the MOPSU, Perisai continues to be sustained by its derrick lay barge, the Enterprise 3, which has been contracted out at a day rate of US$95,000 to TL Offshore, a unit of Sapura Crest Petroleum Bhd for 4.5 years up to 2012.
Enterprise 3 started contributing in November 2008, and was also responsible for Perisai’s record earnings in the first quarter of 2009.
For the second quarter to June 30, Perisai recorded a net profit of RM17.1mil, a tenfold increase on a year on year basis from RM1.71mil previously. On a quarterly basis though, it was almost flat compared to the previous quarter’s reported earnings of RM16mil.
These strong earnings came mostly from its Enterprise 3 and its saturation diving system (SAT) that are on long-term charter. Hence, for the first half of 2009, Perisai’s operating margin improved dramatically to 77.5% from 10.3%.
Perisai recently raised US$10mil from its redeemable convertible bonds issuance. It has also received approval from the Securities Commission to raise funds through a 10% private placement of its shares. This placement should be completed within the next two months.
It is a no brainer that the US$10mil that it raised from the recent redeemable convertible bonds and the expected RM40mil that will be raised soon through a 10% private placement are mainly meant for this maiden marginal field venture that will make MOPSU commercially viable if everything goes as planned.
Without the MOPSU, Perisai continues to be sustained by its derrick lay barge, the Enterprise 3, which has been contracted out at a day rate of US$95,000 to TL Offshore, a unit of Sapura Crest Petroleum Bhd for 4.5 years up to 2012.
Enterprise 3 started contributing in November 2008, and was also responsible for Perisai’s record earnings in the first quarter of 2009.
For the second quarter to June 30, Perisai recorded a net profit of RM17.1mil, a tenfold increase on a year on year basis from RM1.71mil previously. On a quarterly basis though, it was almost flat compared to the previous quarter’s reported earnings of RM16mil.
These strong earnings came mostly from its Enterprise 3 and its saturation diving system (SAT) that are on long-term charter. Hence, for the first half of 2009, Perisai’s operating margin improved dramatically to 77.5% from 10.3%.
Perisai recently raised US$10mil from its redeemable convertible bonds issuance. It has also received approval from the Securities Commission to raise funds through a 10% private placement of its shares. This placement should be completed within the next two months.
It is a no brainer that the US$10mil that it raised from the recent redeemable convertible bonds and the expected RM40mil that will be raised soon through a 10% private placement are mainly meant for this maiden marginal field venture that will make MOPSU commercially viable if everything goes as planned.
Ireka ... Oct09
It is looking to step out in a big way after a three-year self-imposed exile on its construction business.
The company, which is primarily involved in the construction business, has not been aggressively pursuing projects outside of the so-called “in-house” projects, but the management has indicated that its strategy will change moving forward.
Starting out as an earth moving specialist back in the 60s, Ireka has since diversified into construction, property development, hospitality and information technology (IT). Its core businesses, however, are in the first two.
It had pre-qualified for RM2.5 billion worth of construction projects and was eyeing to participate in some of the government projects expected to crop up soon.
Ireka has reined in its bidding practices the last several years to focus primarily on projects offered by Aseana Properties Ltd, which is a London-listed property development company.
This was partly due to the volatility of raw material prices and general uncertainty in the market. However, this is changing after the management determined that volatility has subsided. Building materials have stabilised, and the property markets have also shown signs of a turnaround.
Now (Oct 2009) would be the ideal time to lock in some of the cheaper prices for future projects.
Its business structure is unique in Malaysia because it is a “landbank-less” property developer. Though Ireka's business model was unique in Malaysia, it was not that uncommon elsewhere.
In 2007, Ireka injected all its property assets into Aseana, a company that was initiated by Ireka and subsequently listed in 2007. Ireka also holds a 23% direct stake in the company, although its shareholding, together with other friendly parties, adds up to more than 40%.
In return, Ireka was appointed the exclusive property development manager for Aseana, and receives a management and performance fee in return. The base fee is set at 2% of Aseana’s net asset value. Ireka also benefits from dividend issues by the property company.
The transformation has enabled the company to focus on its core philosophy of working on projects with short gestation periods as opposed to the more traditional development model, which is to hold strategic landbanks for long periods of time. There was a catch-22 to landbanking, Land is either prime, thus expensive to hold, or it’s cheap but might take a longer time to turn over, that is to say a longer gestation period.
Ireka’s total borrowings, prior to the business transformation and the sale of the Westin, stood at RM563.13 million compared with total shareholder’s equity of RM140.43 million.
Since the transformation, Ireka is now on sounder financial footing, returning to the black after posting respectable earnings following three years of consecutive losses as at the end of its FY2007.
Going forward, Vietnam will be one of the key drivers of earnings for Aseana and Ireka, with a number of projects already mooted there.
Meanwhile, the construction arm of Ireka will be expected to make some big pitches for upcoming projects, including the construction of the new low-cost carrier terminal in Sepang. One of the major components of the project will be earthworks and Ireka, with its expertise in the area, should be one of the key considerations when it comes to project awards.
The company, which is primarily involved in the construction business, has not been aggressively pursuing projects outside of the so-called “in-house” projects, but the management has indicated that its strategy will change moving forward.
Starting out as an earth moving specialist back in the 60s, Ireka has since diversified into construction, property development, hospitality and information technology (IT). Its core businesses, however, are in the first two.
It had pre-qualified for RM2.5 billion worth of construction projects and was eyeing to participate in some of the government projects expected to crop up soon.
Ireka has reined in its bidding practices the last several years to focus primarily on projects offered by Aseana Properties Ltd, which is a London-listed property development company.
This was partly due to the volatility of raw material prices and general uncertainty in the market. However, this is changing after the management determined that volatility has subsided. Building materials have stabilised, and the property markets have also shown signs of a turnaround.
Now (Oct 2009) would be the ideal time to lock in some of the cheaper prices for future projects.
Its business structure is unique in Malaysia because it is a “landbank-less” property developer. Though Ireka's business model was unique in Malaysia, it was not that uncommon elsewhere.
In 2007, Ireka injected all its property assets into Aseana, a company that was initiated by Ireka and subsequently listed in 2007. Ireka also holds a 23% direct stake in the company, although its shareholding, together with other friendly parties, adds up to more than 40%.
In return, Ireka was appointed the exclusive property development manager for Aseana, and receives a management and performance fee in return. The base fee is set at 2% of Aseana’s net asset value. Ireka also benefits from dividend issues by the property company.
The transformation has enabled the company to focus on its core philosophy of working on projects with short gestation periods as opposed to the more traditional development model, which is to hold strategic landbanks for long periods of time. There was a catch-22 to landbanking, Land is either prime, thus expensive to hold, or it’s cheap but might take a longer time to turn over, that is to say a longer gestation period.
Ireka’s total borrowings, prior to the business transformation and the sale of the Westin, stood at RM563.13 million compared with total shareholder’s equity of RM140.43 million.
Since the transformation, Ireka is now on sounder financial footing, returning to the black after posting respectable earnings following three years of consecutive losses as at the end of its FY2007.
Going forward, Vietnam will be one of the key drivers of earnings for Aseana and Ireka, with a number of projects already mooted there.
Meanwhile, the construction arm of Ireka will be expected to make some big pitches for upcoming projects, including the construction of the new low-cost carrier terminal in Sepang. One of the major components of the project will be earthworks and Ireka, with its expertise in the area, should be one of the key considerations when it comes to project awards.
Sunday, October 25, 2009
如何在妻子的情感銀行存款
1.早上給她一個熱情的擁抱
2.替她煮杯茶、咖啡
3.主動理床
4.晚上清倒垃圾
5.送小孩上學
6.善待她的父母
7.折疊家人衣服
8.贈送生日禮物
9.供應家庭需要
10.說關愛欣賞的話
2.替她煮杯茶、咖啡
3.主動理床
4.晚上清倒垃圾
5.送小孩上學
6.善待她的父母
7.折疊家人衣服
8.贈送生日禮物
9.供應家庭需要
10.說關愛欣賞的話
Saturday, October 24, 2009
生命中你看重什麼？
有一位父親存了很久的錢，終於買了一輛雪亮的新車。
他非常寶貝這部車，每天都洗車打蠟。
他五歲的兒子見父親這麼愛車，也非常興奮的幫爸爸一起洗。
父親有這樣一個兒子，非常滿意，深覺這個兒子很體諒為父的心。
有一天，這位父親很累，雖然車子因為淋了雨而顯得髒，
但他實在太累了，心想，改天再洗車吧！
五歲的兒子見父親這麼累，就興沖沖的要幫爸爸洗車，
父親見他人小志氣大，心裡更加得意，便放手讓兒子洗。
小兒子要洗車，卻找不到抹布。
他走進廚房，立時便想到母親平常炒完菜洗鍋子時，都是用鋼刷使勁刷才刷乾淨的，
所以既然沒有抹布，就用鋼刷吧！
他拿起鋼刷用力的洗起車來, 一遍又一遍，像刷鍋子一樣刷車。
等他洗完之後。『哇！』他大哭失聲，車子怎麼都花了？
這下慘了，他急忙跑去找父親，邊哭邊說﹕
『爸爸，對不起，爸爸，你快來看！』
父親疑惑地跟著兒子走到車旁，他也『哇』的! 一聲﹕
『我的車！我的車！』
這位父親氣得走進房間，他十分生氣地跪在地上禱告:
『上帝呀，請你告訴我，我該怎麼做？
這是我新買的車，一個月不到，就變成這樣，
我該怎麼處罰我的孩子？』
他才禱告完，在他心裡忽然出現一個聲音:
『世人都是看表面，而我卻是看內心！』
突然間，他像是被點醒了。
他走出房門，兒子正害怕地流著淚，動也不敢動。
父親急得把孩子擁在懷裡，並且說：
『謝謝你幫爸爸洗車，爸爸愛你，勝過這部車子。』
親愛的朋友，生命中你看重什麼？你懂得愛嗎？
他非常寶貝這部車，每天都洗車打蠟。
他五歲的兒子見父親這麼愛車，也非常興奮的幫爸爸一起洗。
父親有這樣一個兒子，非常滿意，深覺這個兒子很體諒為父的心。
有一天，這位父親很累，雖然車子因為淋了雨而顯得髒，
但他實在太累了，心想，改天再洗車吧！
五歲的兒子見父親這麼累，就興沖沖的要幫爸爸洗車，
父親見他人小志氣大，心裡更加得意，便放手讓兒子洗。
小兒子要洗車，卻找不到抹布。
他走進廚房，立時便想到母親平常炒完菜洗鍋子時，都是用鋼刷使勁刷才刷乾淨的，
所以既然沒有抹布，就用鋼刷吧！
他拿起鋼刷用力的洗起車來, 一遍又一遍，像刷鍋子一樣刷車。
等他洗完之後。『哇！』他大哭失聲，車子怎麼都花了？
這下慘了，他急忙跑去找父親，邊哭邊說﹕
『爸爸，對不起，爸爸，你快來看！』
父親疑惑地跟著兒子走到車旁，他也『哇』的! 一聲﹕
『我的車！我的車！』
這位父親氣得走進房間，他十分生氣地跪在地上禱告:
『上帝呀，請你告訴我，我該怎麼做？
這是我新買的車，一個月不到，就變成這樣，
我該怎麼處罰我的孩子？』
他才禱告完，在他心裡忽然出現一個聲音:
『世人都是看表面，而我卻是看內心！』
突然間，他像是被點醒了。
他走出房門，兒子正害怕地流著淚，動也不敢動。
父親急得把孩子擁在懷裡，並且說：
『謝謝你幫爸爸洗車，爸爸愛你，勝過這部車子。』
親愛的朋友，生命中你看重什麼？你懂得愛嗎？
Friday, October 23, 2009
Success ... Oct09
Its subsidiary Seremban Engineering Sdn Bhd (SESB), which is expected to be spun off by the first quarter of next year (2010), may diversify further into the oil and gas (O&G) sector.
Listing SESB would unlock value as the process equipment unit could fetch much better valuation on its own due to its high-growth potential.
SESB has been growing rapidly. The palm oil industry, which is currently SESB’s biggest customer, has great prospects in the long run. Going forward, SESB has plans to diversify further into the oil and gas sector.
There would be no change in SESB’s management, decision-making process and board structure, as STC and SESB’s businesses are not directly related.
STC proposed last week to list SESB through an initial public offering (IPO) of 19.9 million new shares, or 24.91% of its enlarged share capital of 80 million shares of 50 sen each. The proposed exercise is expected to pare down STC’s interests in SESB to 65% from 100% currently. The IPO price has yet to be determined.
SESB specialises in the manufacturing of heat exchangers, process equipment and non-pressure tanks for chemical and other industrial storage use. STC itself is mainly involved in manufacturing, design and sales of transformers and lightings, and in industrial engineering design.
STC first bought a 60% stake in SESB in March 2007 for RM14.63 million. It increased the stake to 100% a year later. The acquisition has worked well for SESB, which has seen its fabrication capacity grow to five plants from three previously.
In the first six months of this year (2009), SESB contributed RM4.52 million in net profit, or 35% of STC’s group net profit of RM12.9 million, and RM36 million in revenue or 37% of STC’s total revenue of RM97.4 million.
Although overseas business makes up around 60% of SESB’s business, the company would keep Malaysia as its manufacturing base, as the country offered a strategic location to serve as a low-cost fabrication centre for its European clients.
SESB currently had over RM20 million worth of contracts that would keep it busy until at least the first quarter of next year (2010). It is also bidding for around RM50 million in additional fabrication jobs, mainly from overseas customers.
Listing SESB would unlock value as the process equipment unit could fetch much better valuation on its own due to its high-growth potential.
SESB has been growing rapidly. The palm oil industry, which is currently SESB’s biggest customer, has great prospects in the long run. Going forward, SESB has plans to diversify further into the oil and gas sector.
There would be no change in SESB’s management, decision-making process and board structure, as STC and SESB’s businesses are not directly related.
STC proposed last week to list SESB through an initial public offering (IPO) of 19.9 million new shares, or 24.91% of its enlarged share capital of 80 million shares of 50 sen each. The proposed exercise is expected to pare down STC’s interests in SESB to 65% from 100% currently. The IPO price has yet to be determined.
SESB specialises in the manufacturing of heat exchangers, process equipment and non-pressure tanks for chemical and other industrial storage use. STC itself is mainly involved in manufacturing, design and sales of transformers and lightings, and in industrial engineering design.
STC first bought a 60% stake in SESB in March 2007 for RM14.63 million. It increased the stake to 100% a year later. The acquisition has worked well for SESB, which has seen its fabrication capacity grow to five plants from three previously.
In the first six months of this year (2009), SESB contributed RM4.52 million in net profit, or 35% of STC’s group net profit of RM12.9 million, and RM36 million in revenue or 37% of STC’s total revenue of RM97.4 million.
Although overseas business makes up around 60% of SESB’s business, the company would keep Malaysia as its manufacturing base, as the country offered a strategic location to serve as a low-cost fabrication centre for its European clients.
SESB currently had over RM20 million worth of contracts that would keep it busy until at least the first quarter of next year (2010). It is also bidding for around RM50 million in additional fabrication jobs, mainly from overseas customers.
Thursday, October 22, 2009
Leong Hup ... Oct09
It is expanding its core businesses via the proposed raising of its stake in plantation firm Alam Muhibah Sdn Bhd (AMSB) and the acquisition of a poultry firm Ladang Ternakan Maju Sdn Bhd (LTM) for a total of RM34.05 million.
LHH is proposing to acquire an additional 21.25% stake comprising 744,813 shares of RM1 each in Alam Muhibah from several vendors for RM21.3 million via the issue of 20.29 million shares of RM1 each in LHH at an issue price of RM1.05 each. The acquisition is under a call option.
The vendors are CW Lau & Sons Sdn Bhd (CWL), Datuk Lau Bong Wong, Lau Joo Han, CN Lau & Sons Sdn Bhd, LCN & Family Sdn Bhd, Datuk Lau Eng Guang, Lau Joo Yong, HN Lau & Sons Sdn Bhd and LTN Resources Sdn Bhd.
It also proposed to acquire LTM's entire paid-up capital of 5.09 million shares of RM1 each from Amnah Ibrahim, Rahmat Ibrahim and Tan Sri Lau Tuang Nguang for RM12.75 million via the issue fo 12.14 million shares in LHH at an issue price of RM1.05 each.
AMSB was currently a 35% owned associate company, which would become a subsidiary with the acquisition with a 56.25% stake.
AMSB vendors had nominated Leong Hup Management Sdn Bhd (LHM) to receive the AMSB consideration shares in their place subject to the approval of the Securities Commission (SC) for a proposed MGO exemption.
As a result, LHM's shareholdings in LHH will increase by 5.67% from 47.71% to 53.38%, triggering a mandatory general offer.
LHM would be submitting an application to seek approval of the SC for the proposed exemption to LHM from the obligation to undertake the MGO. In the event the NGO exemption was not granted, the AMSB consideration shares will then be issued directly to the AMSB Vendors in their respective names.
AMSB is principally engaged in the operation of oil palm estate in Malaysia. As at Oct 9, 2009, AMSB has no subsidiary or associate company. For the financial year ended Oct 31, 2008, AMSB's net liabilities and net loss amounted to RM900,218 and RM671,707 respectively.
Pursuant to a plantation land development agreement dated Aug 9, 2006, with a Kelantan local authority and subsequently supplementary agreements, AMSB has been a 60-year plantation right (with an option for automatic renewal of an additional 30 years) to develop five parcels of lands designated for oil palm plantation measuring about 10,095 acres in Gua Musang. The AMSB vendors have estimated a net developable area of about 9,000 acres only.
About 3,482.47 acres of the land were planted with young oil palms of various ages between one month and two years.
With LTM as a new subsidiary, the group was expected to expand its production of day-old chicks from its current output of about 124 million birds to about 134 million birds per annum and broiler chickens from about 38 million birds to about 47 million birds.
The acquisition would further strengthen the LHH group's position as one of the largest integrated poultry farm and hatchery operators in Malaysia.
For the year ended Jan 31, 2009, LTM's consolidated NA and net profit amounted to RM12.6 million and RM1.05 million, respectively.
LHH is proposing to acquire an additional 21.25% stake comprising 744,813 shares of RM1 each in Alam Muhibah from several vendors for RM21.3 million via the issue of 20.29 million shares of RM1 each in LHH at an issue price of RM1.05 each. The acquisition is under a call option.
The vendors are CW Lau & Sons Sdn Bhd (CWL), Datuk Lau Bong Wong, Lau Joo Han, CN Lau & Sons Sdn Bhd, LCN & Family Sdn Bhd, Datuk Lau Eng Guang, Lau Joo Yong, HN Lau & Sons Sdn Bhd and LTN Resources Sdn Bhd.
It also proposed to acquire LTM's entire paid-up capital of 5.09 million shares of RM1 each from Amnah Ibrahim, Rahmat Ibrahim and Tan Sri Lau Tuang Nguang for RM12.75 million via the issue fo 12.14 million shares in LHH at an issue price of RM1.05 each.
AMSB was currently a 35% owned associate company, which would become a subsidiary with the acquisition with a 56.25% stake.
AMSB vendors had nominated Leong Hup Management Sdn Bhd (LHM) to receive the AMSB consideration shares in their place subject to the approval of the Securities Commission (SC) for a proposed MGO exemption.
As a result, LHM's shareholdings in LHH will increase by 5.67% from 47.71% to 53.38%, triggering a mandatory general offer.
LHM would be submitting an application to seek approval of the SC for the proposed exemption to LHM from the obligation to undertake the MGO. In the event the NGO exemption was not granted, the AMSB consideration shares will then be issued directly to the AMSB Vendors in their respective names.
AMSB is principally engaged in the operation of oil palm estate in Malaysia. As at Oct 9, 2009, AMSB has no subsidiary or associate company. For the financial year ended Oct 31, 2008, AMSB's net liabilities and net loss amounted to RM900,218 and RM671,707 respectively.
Pursuant to a plantation land development agreement dated Aug 9, 2006, with a Kelantan local authority and subsequently supplementary agreements, AMSB has been a 60-year plantation right (with an option for automatic renewal of an additional 30 years) to develop five parcels of lands designated for oil palm plantation measuring about 10,095 acres in Gua Musang. The AMSB vendors have estimated a net developable area of about 9,000 acres only.
About 3,482.47 acres of the land were planted with young oil palms of various ages between one month and two years.
With LTM as a new subsidiary, the group was expected to expand its production of day-old chicks from its current output of about 124 million birds to about 134 million birds per annum and broiler chickens from about 38 million birds to about 47 million birds.
The acquisition would further strengthen the LHH group's position as one of the largest integrated poultry farm and hatchery operators in Malaysia.
For the year ended Jan 31, 2009, LTM's consolidated NA and net profit amounted to RM12.6 million and RM1.05 million, respectively.
Wednesday, October 21, 2009
CI Holdings Bhd ... Oct09
A bottler and distributor of Pepsi and 7Up in the country, is targeting 30 per cent share of the non-carbonated drinks market within the next three years.
The group will continue adding new products amid the increasing demand for non-carbonated beverages. While Pepsi remains its fast-selling product, CI Holdings is expecting future growth to come from non-carbonated drinks like Tropicana, Lipton, Sting and Gatorade.
The non-carbonated segment is anticipated to enjoy continued growth, leveraging on its ongoing brand support and increase in distributorship to more than 40,000 by year-end (2009) from 36,000 distributors currently.
Their focus is on non-carbonated drinks like tea and juices, which have seen increasing numbers of Malaysians opting for the healthier choice in non-carbonated beverages.
The country's ready-to-drink beverage industry is valued at between RM2 billion and RM2.5 billion a year, and CI Holdings has some 15 per cent market share.
Its chilled ready-to-drink juice, Tropicana Twister, which was launched in March last year, saw strong response from consumers and snatched the number one spot from its rival, Marigold. As at August this year (2008), Tropicana Twister has about 30 per cent share of the market.
In the financial year ended June 30 2009, CI Holdings' net profit was up 45 per cent to RM20.9 million, while revenue rose 25 per cent to RM363 million. Beverage sales contributed 90 per cent of the group's total revenue.
CI Holdings was looking at investing further in non-carbonated beverage brands, but declined to reveal how many more drinks it plans to introduce.
The group will continue adding new products amid the increasing demand for non-carbonated beverages. While Pepsi remains its fast-selling product, CI Holdings is expecting future growth to come from non-carbonated drinks like Tropicana, Lipton, Sting and Gatorade.
The non-carbonated segment is anticipated to enjoy continued growth, leveraging on its ongoing brand support and increase in distributorship to more than 40,000 by year-end (2009) from 36,000 distributors currently.
Their focus is on non-carbonated drinks like tea and juices, which have seen increasing numbers of Malaysians opting for the healthier choice in non-carbonated beverages.
The country's ready-to-drink beverage industry is valued at between RM2 billion and RM2.5 billion a year, and CI Holdings has some 15 per cent market share.
Its chilled ready-to-drink juice, Tropicana Twister, which was launched in March last year, saw strong response from consumers and snatched the number one spot from its rival, Marigold. As at August this year (2008), Tropicana Twister has about 30 per cent share of the market.
In the financial year ended June 30 2009, CI Holdings' net profit was up 45 per cent to RM20.9 million, while revenue rose 25 per cent to RM363 million. Beverage sales contributed 90 per cent of the group's total revenue.
CI Holdings was looking at investing further in non-carbonated beverage brands, but declined to reveal how many more drinks it plans to introduce.
Tuesday, October 20, 2009
Persitma ... Oct09
Rin Kei Mei, has come back, albeit indirectly, to Perusahaan Sadur Timah Malaysia Bhd (Perstima), a company he co-founded in the late 1970s.
His son Rin Nan Yoong emerged as a substantial shareholder in Perstima after acquiring a 50% interest in Versalite Sdn Bhd, a private company which is the single largest shareholder in Perstima with 32.85%, from Tan Sri Abdul Rahman Omar and Muzafar Mohamed.
The other 49.99% in Versalite is owned by deputy chairman Hiroshi Kume, who is said to be the operations person responsible for the day-to-day management of the company which has a monopoly on the production of tin plates in Malaysia.
The elder Rin was one of the early founders of Perstima, along with Kumpulan Fima. However, both Rin and Kumpulan Fima sold out their interests in 1993 and Perstima eventually came under the control of Datuk Soh Chee Wen and later on Tan Sri Amin Shah Omar Shah of PSC Industries Bhd.
The company went under during the 1998 Asian financial crisis and it is said that Rin came back into the picture indirectly to rescue it.
In 2000, Versalite emerged as a substantial shareholder in Perstima by taking up a restricted share issue of 41 million shares that amounted to 79.47% of the company. The injection of new funds via Versalite taking up the restricted offer was the beginning of the revival of Perstima.
The shareholders of Versalite then were Tan Sri Jamil Mohd Jan and Hiroshi Kume with a 51.01% and 49.99% stake respectively.
Kume sat on the board of Perstima from 1980 to 1985 and was subsequently reappointed in September 1991 until August 1996. He was made the managing director of Perstima from 1998 until 2007, when he was redesignated as executive deputy chairman. Together with Abdul Rahman, the duo are said to be responsible for the revival of Perstima. Abdul Rahman is the former managing director of Perusahaan Otomobobil Kedua Malaysia (Perodua).
Abdul Rahman came into Perstima in December 2000 when he acquired Jamil’s entire interest in Versalite. A few months later, Abdul Rahman, who is said to be close to former prime minister Tun Dr Mahathir Mohamad, divested 18% of his Versalite equity interest to Muzafar Mohamed.
Versalite took up its portion of a rights issue in Perstima as well as the portion that was undersubscribed, bringing its shareholding in Perstima to 58.54%. It later divested a shareholding of some 7.9% to Kawasho Corp, a manufacturer of iron and steel products, which had earlier taken up a 5.61% stake in Perstima through the rights issue.
At the end of 2002, it sold down another 12.7% to Kawasaki Steel Corporation, leaving it with 37.91% in Perstima. Versalite continued to pare down its shareholding in Perstima over the years through private placement and direct deals.
Rin Nan Yoong emerged on the board of Perstima in early 2004 as an independent non-executive director.
His son Rin Nan Yoong emerged as a substantial shareholder in Perstima after acquiring a 50% interest in Versalite Sdn Bhd, a private company which is the single largest shareholder in Perstima with 32.85%, from Tan Sri Abdul Rahman Omar and Muzafar Mohamed.
The other 49.99% in Versalite is owned by deputy chairman Hiroshi Kume, who is said to be the operations person responsible for the day-to-day management of the company which has a monopoly on the production of tin plates in Malaysia.
The elder Rin was one of the early founders of Perstima, along with Kumpulan Fima. However, both Rin and Kumpulan Fima sold out their interests in 1993 and Perstima eventually came under the control of Datuk Soh Chee Wen and later on Tan Sri Amin Shah Omar Shah of PSC Industries Bhd.
The company went under during the 1998 Asian financial crisis and it is said that Rin came back into the picture indirectly to rescue it.
In 2000, Versalite emerged as a substantial shareholder in Perstima by taking up a restricted share issue of 41 million shares that amounted to 79.47% of the company. The injection of new funds via Versalite taking up the restricted offer was the beginning of the revival of Perstima.
The shareholders of Versalite then were Tan Sri Jamil Mohd Jan and Hiroshi Kume with a 51.01% and 49.99% stake respectively.
Kume sat on the board of Perstima from 1980 to 1985 and was subsequently reappointed in September 1991 until August 1996. He was made the managing director of Perstima from 1998 until 2007, when he was redesignated as executive deputy chairman. Together with Abdul Rahman, the duo are said to be responsible for the revival of Perstima. Abdul Rahman is the former managing director of Perusahaan Otomobobil Kedua Malaysia (Perodua).
Abdul Rahman came into Perstima in December 2000 when he acquired Jamil’s entire interest in Versalite. A few months later, Abdul Rahman, who is said to be close to former prime minister Tun Dr Mahathir Mohamad, divested 18% of his Versalite equity interest to Muzafar Mohamed.
Versalite took up its portion of a rights issue in Perstima as well as the portion that was undersubscribed, bringing its shareholding in Perstima to 58.54%. It later divested a shareholding of some 7.9% to Kawasho Corp, a manufacturer of iron and steel products, which had earlier taken up a 5.61% stake in Perstima through the rights issue.
At the end of 2002, it sold down another 12.7% to Kawasaki Steel Corporation, leaving it with 37.91% in Perstima. Versalite continued to pare down its shareholding in Perstima over the years through private placement and direct deals.
Rin Nan Yoong emerged on the board of Perstima in early 2004 as an independent non-executive director.
Monday, October 19, 2009
CSCSTEL ... Oct09
CSC STEEL is likely to improve with the economic turnaround said research house INSIDERASIA on Sep 1, 2009. Stronger earnings for 2QE Jun 2009 provide the basis for such optimism.
CSC STEEL's QoQ Turnover for 2QE Jun 2009 was down by about 7% to RM161.6m. This was due mainly to lower selling prices during the quarter. Prices for cold rolled steel (CRS) fell below USD500 (RM1,765) per tonne at its lowest in Apr 2009, compared to the average price of around USD600-USD700 per tonne in 1QE Mar 2009.
Sales volume, however, registered improvement, which helped offset somewhat the price decline. Volume demand is recovering from the steep dropoff in 4QE Dec 2008 to 1QE Mar 2009, aided by both inventory restocking and some recovery in underlying demand.
ENDUSERS RESTOCKING & PLANT UTILISATION IMPROVES
The Company added that many user companies had run down on inventory for the better part of 4QE Dec 2008 to 1QE Mar 2009 and have been gradually restocking. CSC's plant utilisation is estimated to have improved to over 70% currently, from under 50% in early 2009.
Profitability also improved in 2QE Jun 2009 compared with the immediate preceding quarter. Operating Margin widened to 11.5% compared to just 6.5% in 1QE Mar 2009. In addition to better plant utilisation, CSC also benefited from lower cost of raw materials, having run down on its high-cost stocks in the previous two quarters.
WRITE BACK
The Company also wrote back another RM2.4m in Provision for Doubtful Debts in 2QE Jun 2009, on top of the RM4.9m in 1QE Mar 2009. Excluding the Writebacks, Net Profit improved to RM7m in 2QE Jun 2009, a significant jump from the RM800k in 1QE Mar 2009.
NET CASH OF RM250M As at end of 2QE Jun 2009, CSC had Net Cash of RM250.7m - a significant 67 sen per share. The NTA per share amounted to RM1.88 per share.
DIVIDEND POLICY
The Company has a Dividend Policy of 50%.
DEMAND & STEEL PRICES LIKELY TO PICK UP IN 3QE 2009
Demand and prices are likely to pick up further in 3Q-CY2009. The flow of new orders has continued into 3Q-CY2009. End-user companies will likely keep stocking up in anticipation of improving consumer demand ahead of the upcoming festive season and end-of-year holidays.
Steel prices too have recovered from the lows registered in Apr 2009. Sharp production cutbacks by the big steel millers have kept a tight rein on global stockpiles, which has helped support higher prices.
IRON ORE PRICES RISING
Prices are also being supported by pricier raw materials. The cost of raw materials has been creeping higher with growing evidence that the global economic recession is abating. For instance, spot prices for iron ore have nearly doubled, after falling below USD60 per tonne, after annual contracts between miners and steel makers were concluded with a smaller-than-expected 33% discount from last year's prices and bolstered by China's growing demand.
The price for cold-rolled coils has risen above USD600 per tonne currently, compared with below USD500 per tonne in Apr 2009. Hence, we expect CSC to report stronger revenue and profits for 3QE Sep 2009 compared with 2QE Jun 2009 due to higher volume sales and selling prices.
DEMAND BEYOND 3Q-CY2009 UNCERTAIN
Consumer demand will determine sustainability of recovery. Visibility beyond 3QE CY2009 is, however, uncertain as much depends on consumer demand improving.
GLOBAL EXCESS OF STEEL-MAKING CAPACITY
INSIDERASIA opines that if sales for consumer products, like cars, electrical and electronics devices, turn out to be softer than expected, we may see renewed weakness in global demand for flat steel products. There is also a question of how quickly big steel makers ramp up their production levels against the underlying demand recovery. There remains a risk of oversupply, given the significant excess steel making capacity around the world.
NET PROFIT ESTIMATES
INSIDERASIA is of the view that CSC's Net Profit for 4QE Dec 2009 should be much higher than the RM800k recorded in 1QE Mar 2009 (after excluding the RM4.9m of Doubtful Debts Writeback). INSIDERASIA estimates Net Profit for full FYE Dec 2009 is estimated at roughly RM39.5m, which should expand further to about RM49m in 2010.
STEEL SECTOR OVERVIEW
In an analyst reveiw of steel companies for 2QE Jun 2009, it said that despite steel companies having reported poorer results for 2QE Jun 2009, expectations are high that their performance will soon pick up along with global sentiment on the commodity.
Poorer demand and slumping steel prices have severely affected Malaysian players.
STEEL PRICES
The 1HE CY2009, the steel industry saw an average of RM1,193.37 a tonne (according to the benchmark three-month London Metal Exchange Far East steel billet forward prices), after coming off their peaks from 3QE Sep 2008.
Steel players that reported earnings results included ANN JOO RESOURCES, KINSTEEL, PERWAJA HOLDINGS and MALAYSIA STEEL WORKS - all of which reported poorer results.
Steel prices in the past 12 months fluctuated from a high of RM2,340.90 per tonne in Sep 2008 before plunging to a low of RM890.57 in Oct 2008.
Steel prices have recovered since the end of Jun 2009, and has been trading above the RM1,400 per tonne mark. Analysts are saying that there is also greater visibility to the prospects of steel in the short-to medium-term. " .... The settlement of new iron ore benchmark prices for 2009/2010 has given steel prices a clearer direction in the year ahead (2010) ...." said OSK RESEARCH analyst NG SEM GUAN. " .... Also, our market sources suggest there is a possible upward revision in bars and other downstream products selling prices by RM100 to RM200 per tonne in the coming weeks ....".
CSC STEEL's QoQ Turnover for 2QE Jun 2009 was down by about 7% to RM161.6m. This was due mainly to lower selling prices during the quarter. Prices for cold rolled steel (CRS) fell below USD500 (RM1,765) per tonne at its lowest in Apr 2009, compared to the average price of around USD600-USD700 per tonne in 1QE Mar 2009.
Sales volume, however, registered improvement, which helped offset somewhat the price decline. Volume demand is recovering from the steep dropoff in 4QE Dec 2008 to 1QE Mar 2009, aided by both inventory restocking and some recovery in underlying demand.
ENDUSERS RESTOCKING & PLANT UTILISATION IMPROVES
The Company added that many user companies had run down on inventory for the better part of 4QE Dec 2008 to 1QE Mar 2009 and have been gradually restocking. CSC's plant utilisation is estimated to have improved to over 70% currently, from under 50% in early 2009.
Profitability also improved in 2QE Jun 2009 compared with the immediate preceding quarter. Operating Margin widened to 11.5% compared to just 6.5% in 1QE Mar 2009. In addition to better plant utilisation, CSC also benefited from lower cost of raw materials, having run down on its high-cost stocks in the previous two quarters.
WRITE BACK
The Company also wrote back another RM2.4m in Provision for Doubtful Debts in 2QE Jun 2009, on top of the RM4.9m in 1QE Mar 2009. Excluding the Writebacks, Net Profit improved to RM7m in 2QE Jun 2009, a significant jump from the RM800k in 1QE Mar 2009.
NET CASH OF RM250M As at end of 2QE Jun 2009, CSC had Net Cash of RM250.7m - a significant 67 sen per share. The NTA per share amounted to RM1.88 per share.
DIVIDEND POLICY
The Company has a Dividend Policy of 50%.
DEMAND & STEEL PRICES LIKELY TO PICK UP IN 3QE 2009
Demand and prices are likely to pick up further in 3Q-CY2009. The flow of new orders has continued into 3Q-CY2009. End-user companies will likely keep stocking up in anticipation of improving consumer demand ahead of the upcoming festive season and end-of-year holidays.
Steel prices too have recovered from the lows registered in Apr 2009. Sharp production cutbacks by the big steel millers have kept a tight rein on global stockpiles, which has helped support higher prices.
IRON ORE PRICES RISING
Prices are also being supported by pricier raw materials. The cost of raw materials has been creeping higher with growing evidence that the global economic recession is abating. For instance, spot prices for iron ore have nearly doubled, after falling below USD60 per tonne, after annual contracts between miners and steel makers were concluded with a smaller-than-expected 33% discount from last year's prices and bolstered by China's growing demand.
The price for cold-rolled coils has risen above USD600 per tonne currently, compared with below USD500 per tonne in Apr 2009. Hence, we expect CSC to report stronger revenue and profits for 3QE Sep 2009 compared with 2QE Jun 2009 due to higher volume sales and selling prices.
DEMAND BEYOND 3Q-CY2009 UNCERTAIN
Consumer demand will determine sustainability of recovery. Visibility beyond 3QE CY2009 is, however, uncertain as much depends on consumer demand improving.
GLOBAL EXCESS OF STEEL-MAKING CAPACITY
INSIDERASIA opines that if sales for consumer products, like cars, electrical and electronics devices, turn out to be softer than expected, we may see renewed weakness in global demand for flat steel products. There is also a question of how quickly big steel makers ramp up their production levels against the underlying demand recovery. There remains a risk of oversupply, given the significant excess steel making capacity around the world.
NET PROFIT ESTIMATES
INSIDERASIA is of the view that CSC's Net Profit for 4QE Dec 2009 should be much higher than the RM800k recorded in 1QE Mar 2009 (after excluding the RM4.9m of Doubtful Debts Writeback). INSIDERASIA estimates Net Profit for full FYE Dec 2009 is estimated at roughly RM39.5m, which should expand further to about RM49m in 2010.
STEEL SECTOR OVERVIEW
In an analyst reveiw of steel companies for 2QE Jun 2009, it said that despite steel companies having reported poorer results for 2QE Jun 2009, expectations are high that their performance will soon pick up along with global sentiment on the commodity.
Poorer demand and slumping steel prices have severely affected Malaysian players.
STEEL PRICES
The 1HE CY2009, the steel industry saw an average of RM1,193.37 a tonne (according to the benchmark three-month London Metal Exchange Far East steel billet forward prices), after coming off their peaks from 3QE Sep 2008.
Steel players that reported earnings results included ANN JOO RESOURCES, KINSTEEL, PERWAJA HOLDINGS and MALAYSIA STEEL WORKS - all of which reported poorer results.
Steel prices in the past 12 months fluctuated from a high of RM2,340.90 per tonne in Sep 2008 before plunging to a low of RM890.57 in Oct 2008.
Steel prices have recovered since the end of Jun 2009, and has been trading above the RM1,400 per tonne mark. Analysts are saying that there is also greater visibility to the prospects of steel in the short-to medium-term. " .... The settlement of new iron ore benchmark prices for 2009/2010 has given steel prices a clearer direction in the year ahead (2010) ...." said OSK RESEARCH analyst NG SEM GUAN. " .... Also, our market sources suggest there is a possible upward revision in bars and other downstream products selling prices by RM100 to RM200 per tonne in the coming weeks ....".
UAC Bhd ... Oct09
Construction materials manufacturer hopes to ride on the recovery in the property sector to boost demand for its products and drive growth for the company’s sales.
The company’s turnover and volume had declined in the first half of this year as property projects had been rather flat and developments were either deferred or halted. However, the renovation market was quite encouraging in the first half (2009).
The company took a big hit in the fourth quarter (4Q) of 2008 when its net profit fell 94% year-on-year to RM386,000, due to the sharp decline in demand for building products in the domestic market caused by a softening in development projects and in the replacement markets as the economy spiralled downwards.
However, the softening domestic market was partly cushioned by some of its export markets which were still strong. Certain overseas markets were very strong, and were able to enhance our exports to these markets during this time.
Its performance has recovered since. For the second quarter ended June 30, 2009, its net profit rose 20.6% to RM6 million from RM4.9 million a year earlier as re-stocking activities increased demand for its products.
Additionally, substantial gains from disposal of shares and rental income from its UAC tower have also added to its good performance for the quarter.
UAC is currently pushing for the sale of its new product UCO SolidWall System, a solid wall internal system which would benefit contractors in terms of cost. The company had approached various industry players and had gotten encouraging feedback and inquiries.
UAC had also introduced the product to the UAE market and was in discussion with parties from Brunei to bring the product there.
The company’s turnover and volume had declined in the first half of this year as property projects had been rather flat and developments were either deferred or halted. However, the renovation market was quite encouraging in the first half (2009).
The company took a big hit in the fourth quarter (4Q) of 2008 when its net profit fell 94% year-on-year to RM386,000, due to the sharp decline in demand for building products in the domestic market caused by a softening in development projects and in the replacement markets as the economy spiralled downwards.
However, the softening domestic market was partly cushioned by some of its export markets which were still strong. Certain overseas markets were very strong, and were able to enhance our exports to these markets during this time.
Its performance has recovered since. For the second quarter ended June 30, 2009, its net profit rose 20.6% to RM6 million from RM4.9 million a year earlier as re-stocking activities increased demand for its products.
Additionally, substantial gains from disposal of shares and rental income from its UAC tower have also added to its good performance for the quarter.
UAC is currently pushing for the sale of its new product UCO SolidWall System, a solid wall internal system which would benefit contractors in terms of cost. The company had approached various industry players and had gotten encouraging feedback and inquiries.
UAC had also introduced the product to the UAE market and was in discussion with parties from Brunei to bring the product there.
Sunday, October 18, 2009
Saturday, October 17, 2009
This is Awesome Father
Father : "I want you to marry a girl of my choice"
Son : "I will choose my own bride!"
Father : "But the girl is Bill Gates's daughter."
Son : "Well, in that case...ok"
Next - Father approaches Bill Gates.
Father : "I have a husband for your daughter."
Bill Gates : "But my daughter is too young to marry!"
Father : "But this young man is a vice-president of the World Bank."
Bill Gates : "Ah, in that case...ok"
Finally Father goes to see the president of the World Bank.
Father : "I have a young man to be recommended as a vice-president."
President : "But I already have more vice- presidents than I need!"
Father : "But this young man is Bill Gates's son-in-law."
President : "Ah, in that case...ok"
Son : "I will choose my own bride!"
Father : "But the girl is Bill Gates's daughter."
Son : "Well, in that case...ok"
Next - Father approaches Bill Gates.
Father : "I have a husband for your daughter."
Bill Gates : "But my daughter is too young to marry!"
Father : "But this young man is a vice-president of the World Bank."
Bill Gates : "Ah, in that case...ok"
Finally Father goes to see the president of the World Bank.
Father : "I have a young man to be recommended as a vice-president."
President : "But I already have more vice- presidents than I need!"
Father : "But this young man is Bill Gates's son-in-law."
President : "Ah, in that case...ok"
Friday, October 16, 2009
Glomac ... Oct09
It will be underpinned by unbilled sales of RM333 million.
Further upside will come from the successful en bloc sale of office towers in its on-going Glomac Damansara project and acquisition of new landbank.
It acquired 43 acres of leasehold land, which is located within its existing Bandar Saujana Utama township in Sungai Buloh, Selangor, for RM9m cash or RM4.80 psf. Development rights on the said land was previously acquired in 2004 under a joint venture arrangement where Glomac is required to pay a guaranteed land price of RM7.31m and a share of 30% development profit to the landowner, Pertubuhan Peladang Kawasan Kuala Selangor. The joint venture agreement will be terminated upon completion of the outright acquisition.
Development on the land started in March 2009. Known as Bukit Saujana, the project is divided into 5 phases with an estimated gross development value of RM98m. To-date, a total of 85 units of double storey terrace houses has been launched with more than 80% sales achieved.
Funding for the outright acquisition is not a problem due to improving financial position of the company following the sale of RM72 million worth of investment properties as well as RM20m raised from the recent sale of treasury shares.
Going forward, we expect the company to be on an expansion trail. Currently, the company is negotiating for the acquisition of two commercial land in the Klang Valley.
Related:
Glomac ... Oct09
Further upside will come from the successful en bloc sale of office towers in its on-going Glomac Damansara project and acquisition of new landbank.
It acquired 43 acres of leasehold land, which is located within its existing Bandar Saujana Utama township in Sungai Buloh, Selangor, for RM9m cash or RM4.80 psf. Development rights on the said land was previously acquired in 2004 under a joint venture arrangement where Glomac is required to pay a guaranteed land price of RM7.31m and a share of 30% development profit to the landowner, Pertubuhan Peladang Kawasan Kuala Selangor. The joint venture agreement will be terminated upon completion of the outright acquisition.
Development on the land started in March 2009. Known as Bukit Saujana, the project is divided into 5 phases with an estimated gross development value of RM98m. To-date, a total of 85 units of double storey terrace houses has been launched with more than 80% sales achieved.
Funding for the outright acquisition is not a problem due to improving financial position of the company following the sale of RM72 million worth of investment properties as well as RM20m raised from the recent sale of treasury shares.
Going forward, we expect the company to be on an expansion trail. Currently, the company is negotiating for the acquisition of two commercial land in the Klang Valley.
Related:
Glomac ... Oct09
Thursday, October 15, 2009
Hiro ... Oct09
Some substantial shareholders of Hiro, including non-independent non-executive director Tan Sri Saleha Mohd Ali, have sold down their shareholdings of 50.07 million shares, or 28.09% stake, in the automotive accessory manufacturer.
Saleha, along with her privately held company Saleha Dan Anak Anak Holdings Sdn Bhd, Zabidi Mohd Zain and Zulkifli Mohd Zain have ceased to be substantial shareholders after the disposal of their entire shareholdings in Hiro-Dapat Holdings Sdn Bhd (HDHSB), which holds the 28.09% stake.
At this point in time, no announcement has been made on the emergence of a new substantial shareholder or changes in other major shareholders' stake and it is not known who has bought over their stake in HDHSB.
Other notable shareholders of Hirotako are group managing director Datuk Ir Kuan Peng Ching @ Kuan Peng Soon who holds 29.94% and independent, non-executive director and chairman Datuk Fu Ah Kiow @ Oh (Fu) Soon Guan who holds 0.61%.
Hirotako itself has been buying back shares over the past month (Sept 2009). As at Oct 1 2009, treasury holdings have increased by 2.49 million shares to 14.19 million shares, or a 7.94% stake, from Sept 18.
The company posted a 5% rise in net profit for the second quarter ended June 30 to RM4.58 million from RM4.35 million previously.
Saleha, along with her privately held company Saleha Dan Anak Anak Holdings Sdn Bhd, Zabidi Mohd Zain and Zulkifli Mohd Zain have ceased to be substantial shareholders after the disposal of their entire shareholdings in Hiro-Dapat Holdings Sdn Bhd (HDHSB), which holds the 28.09% stake.
At this point in time, no announcement has been made on the emergence of a new substantial shareholder or changes in other major shareholders' stake and it is not known who has bought over their stake in HDHSB.
Other notable shareholders of Hirotako are group managing director Datuk Ir Kuan Peng Ching @ Kuan Peng Soon who holds 29.94% and independent, non-executive director and chairman Datuk Fu Ah Kiow @ Oh (Fu) Soon Guan who holds 0.61%.
Hirotako itself has been buying back shares over the past month (Sept 2009). As at Oct 1 2009, treasury holdings have increased by 2.49 million shares to 14.19 million shares, or a 7.94% stake, from Sept 18.
The company posted a 5% rise in net profit for the second quarter ended June 30 to RM4.58 million from RM4.35 million previously.
Wednesday, October 14, 2009
IPO: Muah Ban Lee Group Bhd
Muah Ban Lee Group Bhd (MBL), a company specialising in oil seed crushing machinery expects to raise RM13.65 million from the initial public offering (IPO).
RM3 million from the proceeds would be used to purchase new machinery and RM1.5 million to establish new service offices in Indonesia, Papua New Guinea as well as Nigeria.
Another RM2.5 million will be used to pay borrowings, RM500,000 for research and development and RM4.35 million for working capital, while about RM1.8 million is for listing expenses.
With a more than RM41 million confirmed order book currently, the company is confident of achieving an annual 14 per cent growth in turnover next year (2010).
For the financial year ended Dec 31, 2008, Tan said the group recorded a profit after tax of RM8 million on the back of RM41.368 million in revenue.
Indonesia is its bigger market and we looking to increase market share there in line with growing demand.
Currently, the group exports its products and services to more than 150 customers in 22 countries worldwide.
RM3 million from the proceeds would be used to purchase new machinery and RM1.5 million to establish new service offices in Indonesia, Papua New Guinea as well as Nigeria.
Another RM2.5 million will be used to pay borrowings, RM500,000 for research and development and RM4.35 million for working capital, while about RM1.8 million is for listing expenses.
With a more than RM41 million confirmed order book currently, the company is confident of achieving an annual 14 per cent growth in turnover next year (2010).
For the financial year ended Dec 31, 2008, Tan said the group recorded a profit after tax of RM8 million on the back of RM41.368 million in revenue.
Indonesia is its bigger market and we looking to increase market share there in line with growing demand.
Currently, the group exports its products and services to more than 150 customers in 22 countries worldwide.
DRB Hicom ... Oct09
It has put in a bid to buy 32% of Proton Holdings Bhd in hopes that ownership of the national carmaker in the hands of the private sector would help improve the entire industry.
Arguments put forward by sources close to the company are that vendors would gain from a more private sector-driven approach and that a potential tie-up between Volkswagen and Proton would also fit DRB-HICOM’s multi-partner business model. If the Government holds control of Proton, it may lose out on the big picture.
Proton is now engaged in talks with VW on a strategic partnership as DRB-HICOM and privately held Yasmin Holdings, together with the help of the Naza group and two former top executives of Proton, zero in on a controlling stake in Proton. The executives are Datuk Kisai Rahmat and Datuk Kamarulzaman Darus.
The fight for control of Proton could see the entrance of a third party – the company’s management – after Proton chairman Datuk Mohd Nadzmi Mohd Salleh gave his backing to any potential management buyout (MBO) of the national carmaker.
DRB-HICOM’s interest in Proton was sparked after the latter began talks with VW.
To do so, it had requested DRB-HICOM to back away from its own ongoing discussions of a business tie-up with VW which started after Proton called off strategic partnership talks a few years ago.
The purpose of the talks between DRB-HICOM and VW was not only to help the German maker fill a gap in its market reach, as South-East Asia was a weak spot for VW, but also to utilise the excess capacity at DRB-HICOM’s plants in Pekan by assembling a number of models.
It appears that VW was sold on DRB-HICOM’s ability to assemble cars in Pekan after seeing Mercedes-Benz S-class limousines being assembled at the plant.
Negotiations took some time but it is learnt that both parties were just a hair’s breadth away from coming to an agreement before Proton intervened to recommence strategic partnership talks some months ago.
Sources say DRB-HICOM intends to make Proton more competitive than it is currently operating at, given the vast synergies between the two companies. DRB-HICOM is a huge component supplier to Proton and a huge chunk of DRB-HICOM’s revenue is derived from Proton.
Furthermore, ownership of Proton and possibly fewer market restrictions would lead to more investments from other motor players in the country. DRB-HICOM has partnerships with a number of other vehicle makers such as Suzuki, Isuzu, Audi, Honda and Mercedes-Benz.
It is also learnt that its decision to buy a controlling stake in Proton is also not contingent upon Proton and VW sealing a deal. It will still go ahead with the acquisition.
Sources said DRB-HICOM still intended to pursue market opening avenues if it managed to snare control of Proton. The general consensus is that Proton would be forced to become more globally competitive once its ownership was out of the Government’s hands.
But Proton also needs a lot of subsidies to survive. If the Government were to parcel out ownership of Proton to private hands and continue to dish out protective incentives, others may then complain.
DRB-HICOM, under the stewardship of Tan Sri Mohd Saleh Sulong, was once the owner of Proton but sold a 26% controlling stake in the carmaker to Petronas for RM981mil in December 2000 as part of a restructuring process.
However, DRB-HICOM, under the control of Tan Sri Syed Mokhtar Al-Bukhary, had in 2006 disclosed its intent to buy a controlling stake in Proton.
Meanwhile, Proton group managing director Datuk Syed Zainal Abidin Syed Mohamed Tahir as saying that Proton expected to conclude talks with Indian carmakers on the collaboration of products and market by next year (2010).
Arguments put forward by sources close to the company are that vendors would gain from a more private sector-driven approach and that a potential tie-up between Volkswagen and Proton would also fit DRB-HICOM’s multi-partner business model. If the Government holds control of Proton, it may lose out on the big picture.
Proton is now engaged in talks with VW on a strategic partnership as DRB-HICOM and privately held Yasmin Holdings, together with the help of the Naza group and two former top executives of Proton, zero in on a controlling stake in Proton. The executives are Datuk Kisai Rahmat and Datuk Kamarulzaman Darus.
The fight for control of Proton could see the entrance of a third party – the company’s management – after Proton chairman Datuk Mohd Nadzmi Mohd Salleh gave his backing to any potential management buyout (MBO) of the national carmaker.
DRB-HICOM’s interest in Proton was sparked after the latter began talks with VW.
To do so, it had requested DRB-HICOM to back away from its own ongoing discussions of a business tie-up with VW which started after Proton called off strategic partnership talks a few years ago.
The purpose of the talks between DRB-HICOM and VW was not only to help the German maker fill a gap in its market reach, as South-East Asia was a weak spot for VW, but also to utilise the excess capacity at DRB-HICOM’s plants in Pekan by assembling a number of models.
It appears that VW was sold on DRB-HICOM’s ability to assemble cars in Pekan after seeing Mercedes-Benz S-class limousines being assembled at the plant.
Negotiations took some time but it is learnt that both parties were just a hair’s breadth away from coming to an agreement before Proton intervened to recommence strategic partnership talks some months ago.
Sources say DRB-HICOM intends to make Proton more competitive than it is currently operating at, given the vast synergies between the two companies. DRB-HICOM is a huge component supplier to Proton and a huge chunk of DRB-HICOM’s revenue is derived from Proton.
Furthermore, ownership of Proton and possibly fewer market restrictions would lead to more investments from other motor players in the country. DRB-HICOM has partnerships with a number of other vehicle makers such as Suzuki, Isuzu, Audi, Honda and Mercedes-Benz.
It is also learnt that its decision to buy a controlling stake in Proton is also not contingent upon Proton and VW sealing a deal. It will still go ahead with the acquisition.
Sources said DRB-HICOM still intended to pursue market opening avenues if it managed to snare control of Proton. The general consensus is that Proton would be forced to become more globally competitive once its ownership was out of the Government’s hands.
But Proton also needs a lot of subsidies to survive. If the Government were to parcel out ownership of Proton to private hands and continue to dish out protective incentives, others may then complain.
DRB-HICOM, under the stewardship of Tan Sri Mohd Saleh Sulong, was once the owner of Proton but sold a 26% controlling stake in the carmaker to Petronas for RM981mil in December 2000 as part of a restructuring process.
However, DRB-HICOM, under the control of Tan Sri Syed Mokhtar Al-Bukhary, had in 2006 disclosed its intent to buy a controlling stake in Proton.
Meanwhile, Proton group managing director Datuk Syed Zainal Abidin Syed Mohamed Tahir as saying that Proton expected to conclude talks with Indian carmakers on the collaboration of products and market by next year (2010).
Tuesday, October 13, 2009
DNP ... Oct09
The company would be a prime beneficiary of a recovery in demand for high-end properties.
DNP’s RM1.5 billion launch-ready projects around KLCC puts the company in a good position to ride the recovery in the luxury property market. The company can leverage on its Singapore-listed parent Wing Tai Holdings Ltd’s blue-chip status, strong brand name, and global marketing network.
High-end sales are picking up. 75 units of Verticas condos at Bukit Ceylon have been sold to date, with average selling price (ASP) rising to RM950 to RM1,000 per sq ft (psf) from RM850 to RM900 psf in July 2009. Including Tower C, sold en-bloc earlier, take-up reached 45% without tapping into Wing Tai’s Singapore stronghold.
70% to 80% of buyers were locals. DNP’s upcoming launches include U-Thant condos which has 25 units with ASP of RM1,000 to RM1,200 at the end of this year (2009).
Meanwhile, its 197 units of KLCC luxury condo units with ASP of more than RM2,000 psf are scheduled to be launched in 2010.
DNP also recently roped in Tesco to its acquisition of 15 acres of Seberang Prai township for RM35 psf.
The company is also on the lookout for new landbank in the Klang Valley. This would be supported by its strong balance sheet with only 9% net gearing.
DNP’s investment property at Ampang, Lanson Place Condo 8 which sits on a piece of 3-acre land, has redevelopment potential following the recent relaxation on density limit in the area. The gross development value (GDV) could reach about RM300 million.
Wing Tai expects non-Singapore operations to expand to 40% of total assets over time, from 30% currently (Malaysia: 12%).
Meanwhile, DNP will transform ala Wing Tai into a niche high-end developer, with RM1.5 billion to RM1.8 billion worth of projects in KL and RM600 million in Penang.
DNP aimed to exit the garment manufacturing business within three years, while it continues to expand its retail arm that has provided steady earnings and cash flow.
DNP is among the cheapest Malaysian property counters. It is trading at only 0.7 time P/BV and 0.4 time P/RNAV, versus mid-cap sector average’s 1.1 times and 0.6 time respectively, despite having one of the strongest earnings growth in the sector, with three-year compound annual growth rate of 67%.
DNP’s RM1.5 billion launch-ready projects around KLCC puts the company in a good position to ride the recovery in the luxury property market. The company can leverage on its Singapore-listed parent Wing Tai Holdings Ltd’s blue-chip status, strong brand name, and global marketing network.
High-end sales are picking up. 75 units of Verticas condos at Bukit Ceylon have been sold to date, with average selling price (ASP) rising to RM950 to RM1,000 per sq ft (psf) from RM850 to RM900 psf in July 2009. Including Tower C, sold en-bloc earlier, take-up reached 45% without tapping into Wing Tai’s Singapore stronghold.
70% to 80% of buyers were locals. DNP’s upcoming launches include U-Thant condos which has 25 units with ASP of RM1,000 to RM1,200 at the end of this year (2009).
Meanwhile, its 197 units of KLCC luxury condo units with ASP of more than RM2,000 psf are scheduled to be launched in 2010.
DNP also recently roped in Tesco to its acquisition of 15 acres of Seberang Prai township for RM35 psf.
The company is also on the lookout for new landbank in the Klang Valley. This would be supported by its strong balance sheet with only 9% net gearing.
DNP’s investment property at Ampang, Lanson Place Condo 8 which sits on a piece of 3-acre land, has redevelopment potential following the recent relaxation on density limit in the area. The gross development value (GDV) could reach about RM300 million.
Wing Tai expects non-Singapore operations to expand to 40% of total assets over time, from 30% currently (Malaysia: 12%).
Meanwhile, DNP will transform ala Wing Tai into a niche high-end developer, with RM1.5 billion to RM1.8 billion worth of projects in KL and RM600 million in Penang.
DNP aimed to exit the garment manufacturing business within three years, while it continues to expand its retail arm that has provided steady earnings and cash flow.
DNP is among the cheapest Malaysian property counters. It is trading at only 0.7 time P/BV and 0.4 time P/RNAV, versus mid-cap sector average’s 1.1 times and 0.6 time respectively, despite having one of the strongest earnings growth in the sector, with three-year compound annual growth rate of 67%.
Astro ... Oct09
Dominant pay-TV provider AStro, in partnership with ESPN Star Sports (ESS) has won the exclusive broadcasting rights for the upcoming 2010/2013 English Premier League (EPL) for Malaysia from the FA Premier League.
In a joint-statement this morning, the companies said that as part of the arrangement, "for the first time, all 380 matches of EPL will be available to be shown live on ESPN, STAR Sports and Astro channels".
However, Astro had to pay "a higher price than anticipated" for the rights to the EPL, officially known as the Barclays Premier League (BPL), due to "the competitive environment".
Will Astro able to recoup its cost incurred – said to be US$250 million (RM855 million) – to keep its exclusive rights to broadcast the EPL for another three seasons through 2013?
Will the EM12 increase in the monthly subscription price of Astro’s sports package from Aug 1 2009 be enough to cover the cost increase, given that the company ended up paying more than it had anticipated for the EPL Rights?
Some say the recent price hike was actually a pre-emptive move ahead of the EPL rights bid and expects the cost increase to be passed on to customers via rates hikes.
But critics said that concern are that Astro’s margins could face undue pressure as the latter would not be able to fully pass on the cost increase so soon after a price hike only three months ago (Aug 2009). Expecting Astro to repackage its sports content as well as other package mixes with a subscription price hike in the medium term.
Without price hike, the RM285 million increase in content cost per year could potentially clip 8% off Asto ‘s FY2010/FY2013 bottom line.
By calculations show that the increase in Astro’s EPL cost per subscriber from the 2006/2009 to the 2010/2013 season is about half the 114% jump in the absolute amount paid for the rights, if few or none of its subscribers choose to drop the sports package.
Astro’s US$300 million EPL cost for the 2010/2013 season works out to about RM14 per subscriber per month, if one were to assume that 2.1 million subscribers continue to take up its sports package through 2013. This is about 55% more than the estimated cost of RM9 per subscriber per month on average for the 2006/2009 season.
Astro’s EPL cost for the 2010/2013 season would rise to some Rm19 per subscriber per month (from RM9) if only 50% of an estimated three million subscribers continue to take up the sports package following a price hike. In other words, Astro should be able to recoup most of its EPL cost increase by raising the subscription price of its sports package by another RM10 per month.
It may be worth nothing that while Astro’s content cost had seen on average a 19% increase over the past five years (2004-2008) to RM1 billion in FY2009, the company had hitherto managed to keep the average revenue per user from its subscribers relatively steady at RM79.00 for 1HFY1/2010 (with 2.78 million subscribers).
Going forward, Astro will have to contend with challenges in the wake of rapid technological advances that have created alternative services. In Sept 2009, Astro had warned that margins for the rest of FY2010 ending Jan 31 would be affected as it had brought forward an additional RM200 million investment to ready its network for high definition television (HD).
The benefits will only realise later years as it may generate no significant revenue during the early phase of the launch of this service.
Besides increasing prices via the repackaging of its channel offerings, there are also opportunities for Astro to replace its services when introducing HDTV by early 2010.
It is understood that HDTV will be introduce in 2010 EPL season in the middle of 2010. There is also an opportunity for Astro to push its HDTV service to footie fans.
Based on the experience abroad, there is the danger of a near term threat to margins due to the mismatch between expensed cost and the trickling in of revenue and profits in the initial stages.
It is likely that Astro will have to subsidise the HDTC set up boxes to encourage takeup, but the chances are that in return for the subsidy, customers will have to sign longer contract.
In a joint-statement this morning, the companies said that as part of the arrangement, "for the first time, all 380 matches of EPL will be available to be shown live on ESPN, STAR Sports and Astro channels".
However, Astro had to pay "a higher price than anticipated" for the rights to the EPL, officially known as the Barclays Premier League (BPL), due to "the competitive environment".
Will Astro able to recoup its cost incurred – said to be US$250 million (RM855 million) – to keep its exclusive rights to broadcast the EPL for another three seasons through 2013?
Will the EM12 increase in the monthly subscription price of Astro’s sports package from Aug 1 2009 be enough to cover the cost increase, given that the company ended up paying more than it had anticipated for the EPL Rights?
Some say the recent price hike was actually a pre-emptive move ahead of the EPL rights bid and expects the cost increase to be passed on to customers via rates hikes.
But critics said that concern are that Astro’s margins could face undue pressure as the latter would not be able to fully pass on the cost increase so soon after a price hike only three months ago (Aug 2009). Expecting Astro to repackage its sports content as well as other package mixes with a subscription price hike in the medium term.
Without price hike, the RM285 million increase in content cost per year could potentially clip 8% off Asto ‘s FY2010/FY2013 bottom line.
By calculations show that the increase in Astro’s EPL cost per subscriber from the 2006/2009 to the 2010/2013 season is about half the 114% jump in the absolute amount paid for the rights, if few or none of its subscribers choose to drop the sports package.
Astro’s US$300 million EPL cost for the 2010/2013 season works out to about RM14 per subscriber per month, if one were to assume that 2.1 million subscribers continue to take up its sports package through 2013. This is about 55% more than the estimated cost of RM9 per subscriber per month on average for the 2006/2009 season.
Astro’s EPL cost for the 2010/2013 season would rise to some Rm19 per subscriber per month (from RM9) if only 50% of an estimated three million subscribers continue to take up the sports package following a price hike. In other words, Astro should be able to recoup most of its EPL cost increase by raising the subscription price of its sports package by another RM10 per month.
It may be worth nothing that while Astro’s content cost had seen on average a 19% increase over the past five years (2004-2008) to RM1 billion in FY2009, the company had hitherto managed to keep the average revenue per user from its subscribers relatively steady at RM79.00 for 1HFY1/2010 (with 2.78 million subscribers).
Going forward, Astro will have to contend with challenges in the wake of rapid technological advances that have created alternative services. In Sept 2009, Astro had warned that margins for the rest of FY2010 ending Jan 31 would be affected as it had brought forward an additional RM200 million investment to ready its network for high definition television (HD).
The benefits will only realise later years as it may generate no significant revenue during the early phase of the launch of this service.
Besides increasing prices via the repackaging of its channel offerings, there are also opportunities for Astro to replace its services when introducing HDTV by early 2010.
It is understood that HDTV will be introduce in 2010 EPL season in the middle of 2010. There is also an opportunity for Astro to push its HDTV service to footie fans.
Based on the experience abroad, there is the danger of a near term threat to margins due to the mismatch between expensed cost and the trickling in of revenue and profits in the initial stages.
It is likely that Astro will have to subsidise the HDTC set up boxes to encourage takeup, but the chances are that in return for the subsidy, customers will have to sign longer contract.
Monday, October 12, 2009
Notion ... Oct09
A leading listed maker of precision components for hard-disk drives (HDDs), will start making 2.5" HDD components for South Korea's Samsung Co by as early as next month.
Notion can initially make up to 500,000 pieces a month for Samsung with an average selling price estimated at RM4 a piece, and the volume can go up to one million pieces per month by mid-2010. Its qualification to produce for Samsung could be a significant earnings kicker going forward.
Samsung is the world's largest maker of liquid crystal displays, would fit in nicely with Notion's existing customer base.
Notion's biggest cutomers by revenue contribution are Western Digital Corp, the world's second largest maker of HDDs; Hitachi Ltd, Japan's third largest manufacturer; and Nikon Corp, the world's second biggest camera maker.
Currently, some 80 per cent of Notion's sales comes from the from the HDD and digital camera industries, while the remaining 20 per cent is derived from the industrial segment, particularly from electronic braking systems for the automotive industry.
For the year ending September 2009, Notion is poised to post a net profit of RM36.7 million, while for the following year, it is forecast that net profit would expand to RM45.5 million.
Notion can initially make up to 500,000 pieces a month for Samsung with an average selling price estimated at RM4 a piece, and the volume can go up to one million pieces per month by mid-2010. Its qualification to produce for Samsung could be a significant earnings kicker going forward.
Samsung is the world's largest maker of liquid crystal displays, would fit in nicely with Notion's existing customer base.
Notion's biggest cutomers by revenue contribution are Western Digital Corp, the world's second largest maker of HDDs; Hitachi Ltd, Japan's third largest manufacturer; and Nikon Corp, the world's second biggest camera maker.
Currently, some 80 per cent of Notion's sales comes from the from the HDD and digital camera industries, while the remaining 20 per cent is derived from the industrial segment, particularly from electronic braking systems for the automotive industry.
For the year ending September 2009, Notion is poised to post a net profit of RM36.7 million, while for the following year, it is forecast that net profit would expand to RM45.5 million.
Parksons ... Oct09
In Oct 2009, HK listed China based New World Department Store China Ltd said it would accelerate expansion in the mainland by adding five new department stores by FY2011 ending June 30 from 33 stores now (Oct 2009). The expansion will increase its retail gross floor area.
This may interests investors as NWDS starts getting more aggressive to catch up with its bigger rivals Parkson Retail Group Ltd which churns out 80% more in terms of revenue and 54% more in terms of earnings. PRG aims to grow its retail GFA by 15% per year.
NWDS is 72.3% owned by HK property giant New World Development Co. As NWDS expands, investors could see a narrowing of the stock’s current discount, in terms of multiple, to PRG, which is seen as more aggressive. In other words, the valuation of NWDS may improve as the company delivers faster earnings growth in the next few years (2010 & Beyond)
The valuation gap between NWDS and PRG is obvious at present (Oct 2009). NWDS was trading at 19 times forward projected earnings while PRG is much more expensive at 32 times. That’s a wide gap although both operate in the same segment of the retail sector in China . That PRG, is trading at a premium to NWDS is probably due to the high growth projected for the company over the next few years (2010 & Beyond).
Looking back, both PRG and NWDS have performed at the same pave over the last three years (2006-2008). But somewhere the current (Oct 2009) projections for the companies’ future growth rates differ.
The way both companies manage their balance sheets shows that PRG has been more aggressive.
PRG, controlled by Tan Sri William and the Lion group, has its growth funded in part by gearing apart from cash flow. The company had net borrowings of HK$601 million as of June 30, 2009, which is 15% of its total equity of HK$4.15 billion. It is believed that the group may prepare to gear up further to fund expansion, should the need arise.
In comparison, NWDS has zero borrowings and held HK$2.92 billion cash as at June 30, 2009, which accounted for more than 65% of its HK4.32 billion equity. It would appear that the company has yet to touch the HK$2.56 billion cash it raised from an IPO exercise in July 2007. NWDS has been debt free since it was set up in 2004.
Theoretically, investors have only valued NWDS’ department store business at HK$8.06 billion, after deducting the HK$2.92 billion cash in the company (net current assets of HK$2.08 billion) from its market value of HK$10.98 billion. Stripping out the cash, NWDS is actually trading at 13.8 times FY2009 projected earnings of HK$582 million, which has widened its discount to PRG.
The company was being prudent by holding back expansion plan in 2008 as the global economy went into a tailspin. But now (Oct 2009), the timing seems right to put the cash to work in China , where growth is still resilient, as the global economy gradually recovers.
For companies, operating in China , preserving cash while pursuing a prudent growth strategy is hardly a practice that pleases investors. This is probably reflected in NWDS’ share price. In the retail sector of the mainland, where first mover advantage is critical, competition can only get more intense with newer outlets mushrooming in major cities while the market becomes gradually saturated. It is crucial that players speed up their expansion to gain a foothold in the market.
That being the case, NWDS’ strength is its strong balance sheet to speed up its expansion in China . The company also has an added advantage in being a unit of New World Development. The latter has a slew of residential and commercial development projects in china that it could integrate with NWDS’ department store operations.
This may interests investors as NWDS starts getting more aggressive to catch up with its bigger rivals Parkson Retail Group Ltd which churns out 80% more in terms of revenue and 54% more in terms of earnings. PRG aims to grow its retail GFA by 15% per year.
NWDS is 72.3% owned by HK property giant New World Development Co. As NWDS expands, investors could see a narrowing of the stock’s current discount, in terms of multiple, to PRG, which is seen as more aggressive. In other words, the valuation of NWDS may improve as the company delivers faster earnings growth in the next few years (2010 & Beyond)
The valuation gap between NWDS and PRG is obvious at present (Oct 2009). NWDS was trading at 19 times forward projected earnings while PRG is much more expensive at 32 times. That’s a wide gap although both operate in the same segment of the retail sector in China . That PRG, is trading at a premium to NWDS is probably due to the high growth projected for the company over the next few years (2010 & Beyond).
Looking back, both PRG and NWDS have performed at the same pave over the last three years (2006-2008). But somewhere the current (Oct 2009) projections for the companies’ future growth rates differ.
The way both companies manage their balance sheets shows that PRG has been more aggressive.
PRG, controlled by Tan Sri William and the Lion group, has its growth funded in part by gearing apart from cash flow. The company had net borrowings of HK$601 million as of June 30, 2009, which is 15% of its total equity of HK$4.15 billion. It is believed that the group may prepare to gear up further to fund expansion, should the need arise.
In comparison, NWDS has zero borrowings and held HK$2.92 billion cash as at June 30, 2009, which accounted for more than 65% of its HK4.32 billion equity. It would appear that the company has yet to touch the HK$2.56 billion cash it raised from an IPO exercise in July 2007. NWDS has been debt free since it was set up in 2004.
Theoretically, investors have only valued NWDS’ department store business at HK$8.06 billion, after deducting the HK$2.92 billion cash in the company (net current assets of HK$2.08 billion) from its market value of HK$10.98 billion. Stripping out the cash, NWDS is actually trading at 13.8 times FY2009 projected earnings of HK$582 million, which has widened its discount to PRG.
The company was being prudent by holding back expansion plan in 2008 as the global economy went into a tailspin. But now (Oct 2009), the timing seems right to put the cash to work in China , where growth is still resilient, as the global economy gradually recovers.
For companies, operating in China , preserving cash while pursuing a prudent growth strategy is hardly a practice that pleases investors. This is probably reflected in NWDS’ share price. In the retail sector of the mainland, where first mover advantage is critical, competition can only get more intense with newer outlets mushrooming in major cities while the market becomes gradually saturated. It is crucial that players speed up their expansion to gain a foothold in the market.
That being the case, NWDS’ strength is its strong balance sheet to speed up its expansion in China . The company also has an added advantage in being a unit of New World Development. The latter has a slew of residential and commercial development projects in china that it could integrate with NWDS’ department store operations.
Sunday, October 11, 2009
The Strongest Woman In the World
第五名~ #5
美國女人~ United State
=========================
第四名~ #4
英國女人~ United Kingdom
=========================
第三名~ #3
德國女人~ Germany
=========================
第二名~ #2
法國女人~ France
=========================
第一名~ #1 WINNER
臺灣女人 ~ Taiwan
真是猛啊 ~!!!~
美國女人~ United State
=========================
第四名~ #4
英國女人~ United Kingdom
=========================
第三名~ #3
德國女人~ Germany
=========================
第二名~ #2
法國女人~ France
=========================
第一名~ #1 WINNER
臺灣女人 ~ Taiwan
真是猛啊 ~!!!~
Saturday, October 10, 2009
人生的秘訣
30年前，一個年輕人離開故鄉，開始創造自己的前途。他動身的第一站，是去拜訪
本族的族長，請求指點。老族長正在練字，他聽說本族有位後輩開始踏上人生的旅途，
就寫了3個字：不要怕。然後抬起頭來，望著年輕人說：'孩子，人生的秘訣只有6個字，
今天先告訴你3個字，供你半生受用。
30年後，這個從前的年輕人已是人到中年，有了一些成就，也添了很多傷心事。
歸程漫漫，到了家鄉，他又去拜訪那位族長。他到了族長家裡，才知道老人家幾年
前已經去世，家人取出一個密封的信封對他說：這是族長生前留給你的，他說有一天你
會再來。還鄉的遊子這才想起來，30年前他在這裡聽到人生的一半秘訣，拆開信封，裡
面赫然又是3個大字：不要悔。
人生的秘訣：中年以前不要怕，中年以後不要悔。
你現! 在! 有膽怯而不敢做什麼嗎?
送給退休朋友的六項建議
1.退出股票市場
股票上漲，血壓上升，想買買不到。
股票下跌，心裡慌慌，想賣賣不掉。
鈔票是賺不完的，把機會讓給年輕人吧！
玩票或血壓不會上升或心裡不會慌慌者不在此限。
2.及時行樂
只要體力允許，想去的地方就立刻去吧！
莫等走不動時後悔、遺憾，
只要有機會，多與老同學、老同事、老朋友聚聚！
聚不在吃，怕的是時間不多。
存在銀行的錢不一定是你的，該用的時候要用，臨老要善待自己。!
3.想吃什麼，就吃什麼，快樂最重要
想吃的、愛吃的食物分為兩種：
對自己健康有益的，要常吃、多吃、但不是全部。
對自己健康無益的，要少量、偶吃、但不是不吃。
不想吃的、不愛吃的食物偶而也要吃一點點，平衡營養。
4.樂觀看待生病、往生
有錢、沒錢、有權、沒權都要經歷生、老、病、死的過程，無一倖免。
有病時不必害怕、不用擔心，把後事交待好，隨時可走，了無遺憾。
把身體交給醫生，把生命交給上帝，把心情交給自己。
如果擔心能醫好疾病，那就擔心吧！
如果擔心能延長壽命，那就擔心吧！
如果擔心能換得快樂，那就擔心吧！
5.兒孫自有兒孫福
對於兒孫的事，耳朵可以廳，眼睛可以看，但嘴巴不要說。
原則是：說了無效的事不說，
做不了的事情不做，
被動的事要看情形，
兒孫獨立是你福氣。
6.顧好四老
老身：多注意健康資訊，保養全靠自己。
老本：自己賺來的鈔票，要自己保管好。
老伴：另一半要多珍惜，有一個會先走。
老友：見面機會要把握，只會愈來愈少。
本族的族長，請求指點。老族長正在練字，他聽說本族有位後輩開始踏上人生的旅途，
就寫了3個字：不要怕。然後抬起頭來，望著年輕人說：'孩子，人生的秘訣只有6個字，
今天先告訴你3個字，供你半生受用。
30年後，這個從前的年輕人已是人到中年，有了一些成就，也添了很多傷心事。
歸程漫漫，到了家鄉，他又去拜訪那位族長。他到了族長家裡，才知道老人家幾年
前已經去世，家人取出一個密封的信封對他說：這是族長生前留給你的，他說有一天你
會再來。還鄉的遊子這才想起來，30年前他在這裡聽到人生的一半秘訣，拆開信封，裡
面赫然又是3個大字：不要悔。
人生的秘訣：中年以前不要怕，中年以後不要悔。
你現! 在! 有膽怯而不敢做什麼嗎?
送給退休朋友的六項建議
1.退出股票市場
股票上漲，血壓上升，想買買不到。
股票下跌，心裡慌慌，想賣賣不掉。
鈔票是賺不完的，把機會讓給年輕人吧！
玩票或血壓不會上升或心裡不會慌慌者不在此限。
2.及時行樂
只要體力允許，想去的地方就立刻去吧！
莫等走不動時後悔、遺憾，
只要有機會，多與老同學、老同事、老朋友聚聚！
聚不在吃，怕的是時間不多。
存在銀行的錢不一定是你的，該用的時候要用，臨老要善待自己。!
3.想吃什麼，就吃什麼，快樂最重要
想吃的、愛吃的食物分為兩種：
對自己健康有益的，要常吃、多吃、但不是全部。
對自己健康無益的，要少量、偶吃、但不是不吃。
不想吃的、不愛吃的食物偶而也要吃一點點，平衡營養。
4.樂觀看待生病、往生
有錢、沒錢、有權、沒權都要經歷生、老、病、死的過程，無一倖免。
有病時不必害怕、不用擔心，把後事交待好，隨時可走，了無遺憾。
把身體交給醫生，把生命交給上帝，把心情交給自己。
如果擔心能醫好疾病，那就擔心吧！
如果擔心能延長壽命，那就擔心吧！
如果擔心能換得快樂，那就擔心吧！
5.兒孫自有兒孫福
對於兒孫的事，耳朵可以廳，眼睛可以看，但嘴巴不要說。
原則是：說了無效的事不說，
做不了的事情不做，
被動的事要看情形，
兒孫獨立是你福氣。
6.顧好四老
老身：多注意健康資訊，保養全靠自己。
老本：自己賺來的鈔票，要自己保管好。
老伴：另一半要多珍惜，有一個會先走。
老友：見面機會要把握，只會愈來愈少。
Friday, October 9, 2009
TechFast ... Oct09
A former executive director of Rashid Hussain Bhd (RHB), Chartchai Sae Pusavat, has emerged as the single largest shareholder with a 24.4% stake.
Chartchai acquired the stake, comprising 38 million shares, from Trifast plc, which is listed on the London Stock Exchange.
The other major shareholders in the loss-making Techfast, which is listed on the ACE Market, are its chairman and managing director Yap Soon Sing with 11.22% and Lembaga Tabung Haji with 7.67%.
Chartchai, a Singaporean, is a veteran banker. He was appointed a director of RHB on May 5, 1994 and was an executive director of the bank when he resigned on Jan 30, 2003.
Prior to joining RHB, he was a member of Touche Ross & Co, Tuan Sing Holdings Ltd of Singapore, and NM Rothschild & Sons (Singapore) Ltd.
Techfast specialises in the manufacture and distribution of high-precision computer components (self-clinching fasteners), electronic hardware and brass inserts. Its manufacturing plants are in Shah Alam. The company was listed on the then Mesdaq market on June 6, 2005.
It posted a net loss of RM3.53 million on the back of RM2.8 million revenue in the second quarter ended June 30, 2009.
As for Trifast, which manufactures industrial fasteners, it emerged as a substantial shareholder in Techfast on Nov 11, 2006 when it acquired the stake.
Chartchai acquired the stake, comprising 38 million shares, from Trifast plc, which is listed on the London Stock Exchange.
The other major shareholders in the loss-making Techfast, which is listed on the ACE Market, are its chairman and managing director Yap Soon Sing with 11.22% and Lembaga Tabung Haji with 7.67%.
Chartchai, a Singaporean, is a veteran banker. He was appointed a director of RHB on May 5, 1994 and was an executive director of the bank when he resigned on Jan 30, 2003.
Prior to joining RHB, he was a member of Touche Ross & Co, Tuan Sing Holdings Ltd of Singapore, and NM Rothschild & Sons (Singapore) Ltd.
Techfast specialises in the manufacture and distribution of high-precision computer components (self-clinching fasteners), electronic hardware and brass inserts. Its manufacturing plants are in Shah Alam. The company was listed on the then Mesdaq market on June 6, 2005.
It posted a net loss of RM3.53 million on the back of RM2.8 million revenue in the second quarter ended June 30, 2009.
As for Trifast, which manufactures industrial fasteners, it emerged as a substantial shareholder in Techfast on Nov 11, 2006 when it acquired the stake.
Thursday, October 8, 2009
Warisan TC Holding ... Oct09
It is seeking to venture into the automotive sector via a collaboration with China’s Beiqi Foton Motor Co Ltd (BFM), which manufactures various brands of both light and heavy duty trucks.
The group had entered into two similar memoranda of understanding (MoU) with BFM towards realising prospective cooperation and the signing of definitive agreements between them.
In the MoU between WTC and BFM, WTC is seeking to be appointed the sole and exclusive manufacturer and/or assembler and distributor of the light duty trucks, the sole and exclusive provider of after-sales services and parts and accessories in Malaysia and other countries. The MoU lasts for four months.
In the other MoU with BFM, WTC’s subsidiary Angka-Tan Machinery Sdn Bhd is seeking to be the sole and exclusive assembler and distributor of completely knocked down medium and heavy duty trucks as well as the exclusive provider of services and parts of those vehicles. This MoU lasts for six months.
It entered into a conditional sale and purchase agreement with Tan hong Motorto acquire the company’s 70% stake in Kereta Komersil Seladang (M) Sdn Bhd comprising 10,500 ordinary shares for RM700,000 cash.
The group had entered into two similar memoranda of understanding (MoU) with BFM towards realising prospective cooperation and the signing of definitive agreements between them.
In the MoU between WTC and BFM, WTC is seeking to be appointed the sole and exclusive manufacturer and/or assembler and distributor of the light duty trucks, the sole and exclusive provider of after-sales services and parts and accessories in Malaysia and other countries. The MoU lasts for four months.
In the other MoU with BFM, WTC’s subsidiary Angka-Tan Machinery Sdn Bhd is seeking to be the sole and exclusive assembler and distributor of completely knocked down medium and heavy duty trucks as well as the exclusive provider of services and parts of those vehicles. This MoU lasts for six months.
It entered into a conditional sale and purchase agreement with Tan hong Motorto acquire the company’s 70% stake in Kereta Komersil Seladang (M) Sdn Bhd comprising 10,500 ordinary shares for RM700,000 cash.
Wednesday, October 7, 2009
Ireka ... Oct09
Ireka Corp Bhd, whose construction order book currently stands at RM964mil, plans to maintain its quantum of dividends for the next few years.
Ireka shareholders approved a final net dividend of 4.35 sen for the financial year ended March 31, totalling RM5mil and equivalent to about 82% of the year’s net profits.
Going forward, Ireka’s earnings will be boosted by lower construction costs as the price of building materials has softened. With a moderate gearing level of 0.45 times, it should be able to take on more borrowings for new projects.
For its first quarter ended June 30, Ireka posted a net profit of RM3.46mil, making it the third straight quarter of profits after earlier losses caused by the sharp surge in building material costs.
It had been pre-qualified for over RM2.5bil worth of jobs, mostly related to government infrastructure and private sector residential and housing projects in Malaysia.
Ireka, which in the last 3 years (2006-2008) has only been involved in projects from its associate company, property developer Aseana Properties Ltd, is now aggressively seeking work from outside the group.
For the last three years Ireka has relied on work from Aseana due to market conditions which included a shortage of construction expertise and high material prices such as steel bars. But they are now poised to win work from outside the group, having built up the necessary track record and expertise.
Ireka owns 23% in Aseana Properties, which was listed on the London Stock Exchange (LSE) in 2007 as a closed-end fund investing in high-end properties in Malaysia and Vietnam.
Among its projects are the completed i-Zen brand of luxury properties and the on-going SENI Mont Kiara, the latter making up a significant portion of Ireka’s current order book. SENI Mont Kiara, whose sales slowed due to the softening property market since its launch in 2007, had been 60% sold to-date.
Weak sentiment on property stocks has also dampened the stock price of Aseana Properties on the LSE, with its share price hovering around 31 US cents, below its net asset value of 91 cents and its initial public offering price of US$1 per share.
Despite the low price, Ireka has no plans of significantly increasing its holding in Aseana Properties or taking the latter private.
Aseana as a high-end property investment vehicle focused on Malaysia and Vietnam.
Aseana Properties had around US$67mil in cash as at the end of last year (2008).
Ireka shareholders approved a final net dividend of 4.35 sen for the financial year ended March 31, totalling RM5mil and equivalent to about 82% of the year’s net profits.
Going forward, Ireka’s earnings will be boosted by lower construction costs as the price of building materials has softened. With a moderate gearing level of 0.45 times, it should be able to take on more borrowings for new projects.
For its first quarter ended June 30, Ireka posted a net profit of RM3.46mil, making it the third straight quarter of profits after earlier losses caused by the sharp surge in building material costs.
It had been pre-qualified for over RM2.5bil worth of jobs, mostly related to government infrastructure and private sector residential and housing projects in Malaysia.
Ireka, which in the last 3 years (2006-2008) has only been involved in projects from its associate company, property developer Aseana Properties Ltd, is now aggressively seeking work from outside the group.
For the last three years Ireka has relied on work from Aseana due to market conditions which included a shortage of construction expertise and high material prices such as steel bars. But they are now poised to win work from outside the group, having built up the necessary track record and expertise.
Ireka owns 23% in Aseana Properties, which was listed on the London Stock Exchange (LSE) in 2007 as a closed-end fund investing in high-end properties in Malaysia and Vietnam.
Among its projects are the completed i-Zen brand of luxury properties and the on-going SENI Mont Kiara, the latter making up a significant portion of Ireka’s current order book. SENI Mont Kiara, whose sales slowed due to the softening property market since its launch in 2007, had been 60% sold to-date.
Weak sentiment on property stocks has also dampened the stock price of Aseana Properties on the LSE, with its share price hovering around 31 US cents, below its net asset value of 91 cents and its initial public offering price of US$1 per share.
Despite the low price, Ireka has no plans of significantly increasing its holding in Aseana Properties or taking the latter private.
Aseana as a high-end property investment vehicle focused on Malaysia and Vietnam.
Aseana Properties had around US$67mil in cash as at the end of last year (2008).
Tuesday, October 6, 2009
Tenaga ... Oct09
TNB may get an electricity tariff hike early next year when the Government reviews gas prices in January 2009.
With the previous gas price review on July 1 2009 turning out to be a non-event as the Cabinet did not approve the new price, the upcoming gas price review in January 2010 is overdue.
Industry observers think the Government may raise the price of gas with an associated electricity tariff hike to ensure a continued reduction of subsidies, although currently unable to make an estimate of the quantum of increase.
At the current oil price of US$66 per barrel, the reference price of gas would come in at around RM26.50 per million British Thermal Unit (mmBTU).
With the Government originally planning to cut its subsidy on electricity generation by gas to zero from 70% over 15 years, this would translate into a theoretical price of RM9.30 to RM10.60 per mmBTU for gas used in power generation. This theoretical price is still lower than the present RM14.31 per mmBTU.
The government may wish to be more aggressive in cutting back on subsidies or may be projecting a higher price of oil for 2010.
Any electricity tariff increase by TNB would build in a buffer to allow for the possibility of further increases in coal price and should in general be positive for its margins.
With the previous gas price review on July 1 2009 turning out to be a non-event as the Cabinet did not approve the new price, the upcoming gas price review in January 2010 is overdue.
Industry observers think the Government may raise the price of gas with an associated electricity tariff hike to ensure a continued reduction of subsidies, although currently unable to make an estimate of the quantum of increase.
At the current oil price of US$66 per barrel, the reference price of gas would come in at around RM26.50 per million British Thermal Unit (mmBTU).
With the Government originally planning to cut its subsidy on electricity generation by gas to zero from 70% over 15 years, this would translate into a theoretical price of RM9.30 to RM10.60 per mmBTU for gas used in power generation. This theoretical price is still lower than the present RM14.31 per mmBTU.
The government may wish to be more aggressive in cutting back on subsidies or may be projecting a higher price of oil for 2010.
Any electricity tariff increase by TNB would build in a buffer to allow for the possibility of further increases in coal price and should in general be positive for its margins.
Hubline ... Oct09
HUBLINE Bhd, a major regional container line, is expected to raise up to RM124 million via a proposed rights issue to fund its expansion plans.
The group is actively exploring opportunities to grow and expand its market share in the shipping industry. For this purpose, the group intends to purchase two to three vessels, either in the container or dry bulk shipping business.
With a fleet size of around 40 vessels in container and dry bulk shipping, HUBLine has been operating in all the intra-Asian ports for the past 16 years. In Malaysia, HUBLine has eight container vessels providing weekly service to East and West Malaysian ports, and also provides a dry bulk shipping service with its 18 sets of tugs and barges. The company also owns a terminal port in Thailand via an associate company listed on the Thai Stock Exchange.
HUBLine focuses on a niche market serving smaller ports in the intra-Asian trade routes from Papua New Guinea, China, Hong Kong, India, Indonesia, Malaysia, Vietnam, Thailand, Cambodia, the Philippines, Singapore and Brunei.
The company is offering a rights issue of up to 621,676,421 new shares together with up to 621,676,421 new detachable warrants at an issue price of RM0.20 per share.
This is at an attractive discount of 28 per cent to its theoretical ex-rights price. The right issue is on the basis of one rights share with one warrant for every two ordinary shares held in Hubline. The warrants may be exercised at any time within 10 years commencing from the date of issuance and will also be listed and traded on Bursa Securities. The book closing is expected to be announced soon. The acceptance and payment is planned to be completed by next month (Oct 2009).
The group is actively exploring opportunities to grow and expand its market share in the shipping industry. For this purpose, the group intends to purchase two to three vessels, either in the container or dry bulk shipping business.
With a fleet size of around 40 vessels in container and dry bulk shipping, HUBLine has been operating in all the intra-Asian ports for the past 16 years. In Malaysia, HUBLine has eight container vessels providing weekly service to East and West Malaysian ports, and also provides a dry bulk shipping service with its 18 sets of tugs and barges. The company also owns a terminal port in Thailand via an associate company listed on the Thai Stock Exchange.
HUBLine focuses on a niche market serving smaller ports in the intra-Asian trade routes from Papua New Guinea, China, Hong Kong, India, Indonesia, Malaysia, Vietnam, Thailand, Cambodia, the Philippines, Singapore and Brunei.
The company is offering a rights issue of up to 621,676,421 new shares together with up to 621,676,421 new detachable warrants at an issue price of RM0.20 per share.
This is at an attractive discount of 28 per cent to its theoretical ex-rights price. The right issue is on the basis of one rights share with one warrant for every two ordinary shares held in Hubline. The warrants may be exercised at any time within 10 years commencing from the date of issuance and will also be listed and traded on Bursa Securities. The book closing is expected to be announced soon. The acceptance and payment is planned to be completed by next month (Oct 2009).
Monday, October 5, 2009
Sapcrest ...Oct09
Its JV with Norway’s Acergy, via 50%-owned SapuraAcergy, has paid off over the years. The joint-venture company had recently secured a deal worth US$100mil to install pipelines at Apache Energy’s greenfield in Western Australia.
Engineering and project preparations would commence immediately in Kuala Lumpur and Perth, Australia with offshore installation scheduled to commence in late 2010, using SapuraAcergy's heavy lift and pipelaying vessel, Sapura 3000.
This contract is significant as it establishes SapuraAcergy's presence in the promising Australian oil and gas (O&G) market.
Assuming a two-year contract of US$100mil, SapuraCrest’s order book will get a 5% boost to RM7.5bil. SapuraCrest had this year (2009) added RM3bil, or 42%, to its current order book of RM7.1bil.
The project would see SapuraAcergy undertaking the transportation and installation of some 91 km of 16-inch rigid pipeline.
Potential re-rating catalysts could occur due to the new contract secured, success in new markets and a growing fleet of strategic assets. The award of the new contract would also be in line with SapuraCrest’s plan to reduce its dependence on local contracts and carve a bigger international presence.
In FY09, overseas markets contributed 25% to SapuraCrest’s revenue but the contribution is expected to hit 40% to 50% in three years.
SapuraAcergy was earlier awarded an RM3bil installation contract for the Gemusut-Kakap, offshore Sabah, oilfield. The joint venture also clinched two contracts in India and Japan worth a total of RM396mil.
SapuraCrest’s has the ability to penetrate the deepwater pipe-laying market, sizeable oil and gas asset ownership, and substantial seadrill equity participation of 24% currently.
Currently, the company was bidding for both local and overseas O&G projects worth over RM5 billion.
Engineering and project preparations would commence immediately in Kuala Lumpur and Perth, Australia with offshore installation scheduled to commence in late 2010, using SapuraAcergy's heavy lift and pipelaying vessel, Sapura 3000.
This contract is significant as it establishes SapuraAcergy's presence in the promising Australian oil and gas (O&G) market.
Assuming a two-year contract of US$100mil, SapuraCrest’s order book will get a 5% boost to RM7.5bil. SapuraCrest had this year (2009) added RM3bil, or 42%, to its current order book of RM7.1bil.
The project would see SapuraAcergy undertaking the transportation and installation of some 91 km of 16-inch rigid pipeline.
Potential re-rating catalysts could occur due to the new contract secured, success in new markets and a growing fleet of strategic assets. The award of the new contract would also be in line with SapuraCrest’s plan to reduce its dependence on local contracts and carve a bigger international presence.
In FY09, overseas markets contributed 25% to SapuraCrest’s revenue but the contribution is expected to hit 40% to 50% in three years.
SapuraAcergy was earlier awarded an RM3bil installation contract for the Gemusut-Kakap, offshore Sabah, oilfield. The joint venture also clinched two contracts in India and Japan worth a total of RM396mil.
SapuraCrest’s has the ability to penetrate the deepwater pipe-laying market, sizeable oil and gas asset ownership, and substantial seadrill equity participation of 24% currently.
Currently, the company was bidding for both local and overseas O&G projects worth over RM5 billion.
Glomac ... Oct09
A 6.12% block of shares in property developer Glomac, believed to be treasury shares, were traded off-market yesterday at RM1.098 apiece.
The block comprising 18.2 million shares was believed to have been taken up by up to four parties.
The major shareholders of Glomac are group executive chairman Tan Sri FD Mansor who holds a 24.12% stake, group executive vice-chairman Datuk Richard Fong (17.75%), group managing director Datuk Fateh Iskandar Mohamed Mansor (10.82%) and investor Brahmal Vasudevan (6.06%).
Fateh
The shares disposed of were likely to be treasury shares and that buyers included foreign funds, adding that there might be three or more parties involved in the deal.
Glomac was finalising the selling price and building plans for the enbloc sale of the 25-storey corporate tower in Glomac Damansara, adding that the estimated selling price was RM160-RM180 million with the transaction expected to be concluded next month (Oct 2009).
The company was currently in preliminary discussion with a few parties for the enbloc sale of a 16-storey office block and boutique retail and offices in Glomac Damansara.
These enbloc sales are positive to the company as it would reduce sales risk of the whole project as well as improve investors’ confidence on the project which will eventually provide better bargaining power for the company’s service apartments to be launched by end-2009 or early 2010,” it pointed out.
Glomac’s net profit for the first quarter ended July 31, 2009 rose 6.9% to RM8.34 million from RM7.80 million a year ago mainly due to recognition of fair value gain of RM4.91 million for Block B Glomac Business Centre and contribution from Glomac Tower.
The company’s revenue fell 25.9% to RM58.98 million from RM79.54 million in the same quarter last year due to the completion of Suria Stonor. Basic earnings per share for the quarter increased to 2.99 sen from 2.73 sen previously.
Glomac’s financial performance in the financial year 2010 would be supported by substantial unbilled sales of RM333 million as at end-July 2009 and new sales on recently launched projects.
The first phase of its new flagship development Glomac Damansara comprising 5-storey and 8-storey shop offices with a total gross development value (GDV) of RM53 million achieved a take-up rate of 70% over the initial six month launch period.
Phase one of Glomac Cyberjaya with a GDV of RM64 million achieved 90% sales following its launch two months ago, adding that it planned to launch the second phase comprising 24 units of shop offices with a GDV of RM41 million by next month.
Going forward … It is looking to launch at least three new developments for the financial year ending April 30 2010, with a combined gross development value (GDV) of over RM550 million.
It plans to launch the second phase of its RM180 million Glomac Cyberjaya project by the middle of next month. The second phase comprises 24 units of shop offices with a GDV of RM50 million. Glomac bought 8.1 acres of land in Cyberjaya in 2008 and was the first to offer three-and-half-storey shop offices there.
Also in the pipeline is a commercial project on 1.3 acre freehold land in Mutiara Damansara, Selangor, which has an estimated GDV of RM250 million. The development, surrounded by the commercial hubs of Ikea, Tesco and The Curve, will encompass retail spaces, office suites and a corporate office.
Glomas will also launch the second phase of the Plaza Kelana Jaya, a land that formerly housed the famous Kelana Seafood Centre.
Glomac aims to launch the fourth phase of the Plaza Kelana Centre with a GDV of some RM250 million. The development will be on a 3.2 acre freehold land that includes an office block, a neighbourhood shopping mall and office suites.
Also in the plans are the launch of another phase at its Saujana Utama township in Sg Buloh, Selangor, in November.
Glomac is close to acquiring at least two new landbanks before the year-end.
The company is talking to several parties to acquire land namely in the Klang Valley for commercial development. The new land will be small in size, but have a high GDV and fast turnaround of about four to five years.
Related:-
GLOMAC ... July 09
Glomac ... Nov 2008
The block comprising 18.2 million shares was believed to have been taken up by up to four parties.
The major shareholders of Glomac are group executive chairman Tan Sri FD Mansor who holds a 24.12% stake, group executive vice-chairman Datuk Richard Fong (17.75%), group managing director Datuk Fateh Iskandar Mohamed Mansor (10.82%) and investor Brahmal Vasudevan (6.06%).
Fateh
The shares disposed of were likely to be treasury shares and that buyers included foreign funds, adding that there might be three or more parties involved in the deal.
Glomac was finalising the selling price and building plans for the enbloc sale of the 25-storey corporate tower in Glomac Damansara, adding that the estimated selling price was RM160-RM180 million with the transaction expected to be concluded next month (Oct 2009).
The company was currently in preliminary discussion with a few parties for the enbloc sale of a 16-storey office block and boutique retail and offices in Glomac Damansara.
These enbloc sales are positive to the company as it would reduce sales risk of the whole project as well as improve investors’ confidence on the project which will eventually provide better bargaining power for the company’s service apartments to be launched by end-2009 or early 2010,” it pointed out.
Glomac’s net profit for the first quarter ended July 31, 2009 rose 6.9% to RM8.34 million from RM7.80 million a year ago mainly due to recognition of fair value gain of RM4.91 million for Block B Glomac Business Centre and contribution from Glomac Tower.
The company’s revenue fell 25.9% to RM58.98 million from RM79.54 million in the same quarter last year due to the completion of Suria Stonor. Basic earnings per share for the quarter increased to 2.99 sen from 2.73 sen previously.
Glomac’s financial performance in the financial year 2010 would be supported by substantial unbilled sales of RM333 million as at end-July 2009 and new sales on recently launched projects.
The first phase of its new flagship development Glomac Damansara comprising 5-storey and 8-storey shop offices with a total gross development value (GDV) of RM53 million achieved a take-up rate of 70% over the initial six month launch period.
Phase one of Glomac Cyberjaya with a GDV of RM64 million achieved 90% sales following its launch two months ago, adding that it planned to launch the second phase comprising 24 units of shop offices with a GDV of RM41 million by next month.
Going forward … It is looking to launch at least three new developments for the financial year ending April 30 2010, with a combined gross development value (GDV) of over RM550 million.
It plans to launch the second phase of its RM180 million Glomac Cyberjaya project by the middle of next month. The second phase comprises 24 units of shop offices with a GDV of RM50 million. Glomac bought 8.1 acres of land in Cyberjaya in 2008 and was the first to offer three-and-half-storey shop offices there.
Also in the pipeline is a commercial project on 1.3 acre freehold land in Mutiara Damansara, Selangor, which has an estimated GDV of RM250 million. The development, surrounded by the commercial hubs of Ikea, Tesco and The Curve, will encompass retail spaces, office suites and a corporate office.
Glomas will also launch the second phase of the Plaza Kelana Jaya, a land that formerly housed the famous Kelana Seafood Centre.
Glomac aims to launch the fourth phase of the Plaza Kelana Centre with a GDV of some RM250 million. The development will be on a 3.2 acre freehold land that includes an office block, a neighbourhood shopping mall and office suites.
Also in the plans are the launch of another phase at its Saujana Utama township in Sg Buloh, Selangor, in November.
Glomac is close to acquiring at least two new landbanks before the year-end.
The company is talking to several parties to acquire land namely in the Klang Valley for commercial development. The new land will be small in size, but have a high GDV and fast turnaround of about four to five years.
Related:-
GLOMAC ... July 09
Glomac ... Nov 2008
Sunday, October 4, 2009
Private Placements ...
Companies are going for private placements: Airasia, Snichi, Kencana, RCE, AXIS REIT, SilverBird. Latest is Unisem..
In a private placement, shares are issued to a selected group of people at a particular price.
Generally, they observed that investors’ risk appetite had improved (Aug 2009 - Sept 2009) compared with six months ago (March 2009) in view of the better economic conditions. It is always good to do placement when share prices are high, companies could raise more fund with the same number of shares.
Earnings dilution aside. Companies are taking advantage of the bullish sentiment, not forgetting that some companies may still face difficulties in getting loans.
The problem with this method is that if the traded price of many companies are at very low levels). 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.
In a private placement, shares are issued to a selected group of people at a particular price.
Generally, they observed that investors’ risk appetite had improved (Aug 2009 - Sept 2009) compared with six months ago (March 2009) in view of the better economic conditions. It is always good to do placement when share prices are high, companies could raise more fund with the same number of shares.
Earnings dilution aside. Companies are taking advantage of the bullish sentiment, not forgetting that some companies may still face difficulties in getting loans.
The problem with this method is that if the traded price of many companies are at very low levels). 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.
Saturday, October 3, 2009
Can you solve these puzzles ... 3 (Answer)
Answer for e and f:-
e. The poison in the punch came from the ice cubes. When the man Drank the punch, the ice was fully frozen. Gradually it melted, poisoning the punch.
f. The man had hiccups. The barman recognized this from his speech and drew the gun in order to give him a shock. It worked and cured the hiccups-so the man no longer needed the water.
(This is a simple puzzle to state but a difficult one to solve. It is a perfect example of a seemingly irrational and incongruous situation having a simple and complete explanation. Amazingly this classic puzzle seems to work in different cultures and anguages. )
e. The poison in the punch came from the ice cubes. When the man Drank the punch, the ice was fully frozen. Gradually it melted, poisoning the punch.
f. The man had hiccups. The barman recognized this from his speech and drew the gun in order to give him a shock. It worked and cured the hiccups-so the man no longer needed the water.
(This is a simple puzzle to state but a difficult one to solve. It is a perfect example of a seemingly irrational and incongruous situation having a simple and complete explanation. Amazingly this classic puzzle seems to work in different cultures and anguages. )
Friday, October 2, 2009
DLADY ... Sept09
DUTCH LADY MILK INDUSTRIES recorded an 81% rise in Net Profit to RM15.3m for 2QE Jun 2009 from RM8.5m a year earlier despite a 6% drop in Revenue, mainly due to lower dairy raw material prices.
Revenue fell to RM176.6m from RM187.7m mainly due to lower selling prices, while EPS rose to 24.05 sen from 13.31 sen.
Net Assets per share rose to RM2.90 as at Jun 30, 2009 from RM2.52 a year earlier.
NO DIVIDEND DECLARED
As with 1QE Mar 2009, no dividend was declared.
2QE Jun 2009 Revenue was higher compared with RM168.6m in 1QE Mar 2009 as a result of consumer promotions, while PBT of RM19.9m was higher than 1QE Mar 2009's PBT of RM12.7m due to higher sales and lower input costs.
1HE JUN 2009 NET PROFIT HIGHER BY 63%
For 1HE Jun 2009, Net Profit rose 63% to RM24.1m from a year earlier, while Revenue rose 29% to RM345.2m from RM267.8m. EPS rose to 37.72 sen from 23.15 sen.
" .... The Company expects that the year 2009 will remain challenging due to cautious consumer spending ...." it said in its notes accompanying the latest quarterly results.
Revenue fell to RM176.6m from RM187.7m mainly due to lower selling prices, while EPS rose to 24.05 sen from 13.31 sen.
Net Assets per share rose to RM2.90 as at Jun 30, 2009 from RM2.52 a year earlier.
NO DIVIDEND DECLARED
As with 1QE Mar 2009, no dividend was declared.
2QE Jun 2009 Revenue was higher compared with RM168.6m in 1QE Mar 2009 as a result of consumer promotions, while PBT of RM19.9m was higher than 1QE Mar 2009's PBT of RM12.7m due to higher sales and lower input costs.
1HE JUN 2009 NET PROFIT HIGHER BY 63%
For 1HE Jun 2009, Net Profit rose 63% to RM24.1m from a year earlier, while Revenue rose 29% to RM345.2m from RM267.8m. EPS rose to 37.72 sen from 23.15 sen.
" .... The Company expects that the year 2009 will remain challenging due to cautious consumer spending ...." it said in its notes accompanying the latest quarterly results.
DRB Hicom ... Sept09
DRB-HICOM Bhd has made a pitch to GM about jointly conducting completely-knocked-down (CKD) operations in the country.
Market sources said the prospects of doing local assembly for GM would be beneficial to future sales as locally assembled cars would be cheaper.
GM is conducting a review of its operations and business in Malaysia and in the centre of talks is the business relationship with DRB-HICOM via HICOM-Chevrolet Sdn Bhd.
One report indicated a decision might have been made with current Chevy 3S dealer Cergazam Sdn Bhd, a company owned by timber company Permaju Industries Bhd, with Cergazam taking over distribution operations until a full-time partner could be found.
The seeming breakdown in the relationship between GM and DRB-HICOM is somewhat puzzling as the latter has had a long and fruitful relationship with other vehicle manufacturers in the country.
From having total control, DRB-HICOM now has a minority stake in the Suzuki business in the country and business is said to be good.
In Mitsubishi, the company has a 48% stake and is looking hard at doing some CKD operations here.
The Isuzu operations too have seen DRB-HICOM taking a minority stake after running the show in the past. After restructuring operations in Pekan, the joint-venture company with Isuzu is said to be flourishing and profitable.
DRB-HICOM is also assembling Mercedes-Benz cars at its plant in Pekan, which the company sees as an endorsement of its capabilities.
There are many others who are knocking on DRB-HICOM’s doors wanting to explore the possibility of doing assembly in Pekan.
Its most successful joint venture is with Honda, where DRB-HICOM has a 34% stake.
With the Chevy business in Malaysia, DRB-HICOM started distributing and selling GM cars in 2003 and was selling about 6,000 cars a year with more than 30 dealers under its wing. The number of dealers shrank over time given GM’s preference for its dealers to have 3S (sales, service and spares) capability. There are now about eight dealers in the country, the largest of which is Cergazam.
Apart from being impacted by the national automotive policy (NAP), sales have also not been helped by a sparse lineup of new models. GM has sold just under 1,000 cars since taking over management control of HICOM-Chevrolet in 2007 and market observers said the Chevy Cruze would be the only big name new car slotted for sale next year.
Market sources said the prospects of doing local assembly for GM would be beneficial to future sales as locally assembled cars would be cheaper.
GM is conducting a review of its operations and business in Malaysia and in the centre of talks is the business relationship with DRB-HICOM via HICOM-Chevrolet Sdn Bhd.
One report indicated a decision might have been made with current Chevy 3S dealer Cergazam Sdn Bhd, a company owned by timber company Permaju Industries Bhd, with Cergazam taking over distribution operations until a full-time partner could be found.
The seeming breakdown in the relationship between GM and DRB-HICOM is somewhat puzzling as the latter has had a long and fruitful relationship with other vehicle manufacturers in the country.
From having total control, DRB-HICOM now has a minority stake in the Suzuki business in the country and business is said to be good.
In Mitsubishi, the company has a 48% stake and is looking hard at doing some CKD operations here.
The Isuzu operations too have seen DRB-HICOM taking a minority stake after running the show in the past. After restructuring operations in Pekan, the joint-venture company with Isuzu is said to be flourishing and profitable.
DRB-HICOM is also assembling Mercedes-Benz cars at its plant in Pekan, which the company sees as an endorsement of its capabilities.
There are many others who are knocking on DRB-HICOM’s doors wanting to explore the possibility of doing assembly in Pekan.
Its most successful joint venture is with Honda, where DRB-HICOM has a 34% stake.
With the Chevy business in Malaysia, DRB-HICOM started distributing and selling GM cars in 2003 and was selling about 6,000 cars a year with more than 30 dealers under its wing. The number of dealers shrank over time given GM’s preference for its dealers to have 3S (sales, service and spares) capability. There are now about eight dealers in the country, the largest of which is Cergazam.
Apart from being impacted by the national automotive policy (NAP), sales have also not been helped by a sparse lineup of new models. GM has sold just under 1,000 cars since taking over management control of HICOM-Chevrolet in 2007 and market observers said the Chevy Cruze would be the only big name new car slotted for sale next year.
Thursday, October 1, 2009
ALLIANZ .... Sept09
ALLIANZ MALAYSIA's Net Profit for 2QE Jun 2009 surged 67% to RM15.2m from RM9.1m same period a year ago mainly due to the growth in business and decrease in management expenses of the general insurance subsidiary.
In an EXCHANGE filing Aug 24, 2009, the Group's Revenue rose 15% to RM570.9m from RM498.2m in the same quarter last year, while basic EPS jumped to 9.94 sen versus 5.96 sen.
NO DIVIDEND DECLARED
No dividend has been proposed or declared for the quarter under review.
1HE JUN 2009 NET PROFIT HIGHER BY 32%
For 1HE Jun 2009, ALLIANZ's Net Profit climbed 32% to RM35.5m from RM26.8m in the same half last year while Revenue increased to RM1.06 bil from RM897.0m.
The Group's Basic EPS for 1HE Jun 2009 also rose 32% to 23.09 sen as against 17.45 sen previously.
NO BORROWINGS
ALLIANZ said it had no Borrowings and Debt Securities as at Jun, 2009.
PROSPECTS
On its prospects, ALLIANZ said it would take a cautious approach towards capital preservation and to focus more on target segments for growth and profitability, adding that it anticipated the performance for the rest of the year to be satisfactory.
In an EXCHANGE filing Aug 24, 2009, the Group's Revenue rose 15% to RM570.9m from RM498.2m in the same quarter last year, while basic EPS jumped to 9.94 sen versus 5.96 sen.
NO DIVIDEND DECLARED
No dividend has been proposed or declared for the quarter under review.
1HE JUN 2009 NET PROFIT HIGHER BY 32%
For 1HE Jun 2009, ALLIANZ's Net Profit climbed 32% to RM35.5m from RM26.8m in the same half last year while Revenue increased to RM1.06 bil from RM897.0m.
The Group's Basic EPS for 1HE Jun 2009 also rose 32% to 23.09 sen as against 17.45 sen previously.
NO BORROWINGS
ALLIANZ said it had no Borrowings and Debt Securities as at Jun, 2009.
PROSPECTS
On its prospects, ALLIANZ said it would take a cautious approach towards capital preservation and to focus more on target segments for growth and profitability, adding that it anticipated the performance for the rest of the year to be satisfactory.
Maybank ... Sept09
MOODY'S Investors Service has revised the outlook to stable from negative on Malayan Banking Bhd's (Maybank) C Bank Financial Strength Rating (BFSR), A1 long-term global local currency deposit (GLC) rating, and A3 foreign currency Tier 1 capital securities.
Maybank's P-1 local and foreign currency short-term deposit ratings, A3 foreign currency long-term deposit rating, and A3 foreign currency subordinated debt rating remain unaffected with stable outlook.
The outlook change on Maybank's BFSR reflects the replenished state of its capital level, its improved NPL provision coverage and its dominant local franchise.
On March 27, 2008, Moody's had changed the bank's BFSR outlook from stable to negative over concerns that its series of offshore investments -- of which its controlling interest in PT Bank Internasional Indonesia (BII) was the largest -- could erode the level and quality of its capital. Other investments included minority stakes in Pakistan's MCB Bank and Vietnam's An Binh Bank.
At the same time, the revised stable outlook for Maybank's C BFSR implies its Baseline Credit Assessment (BCA) of A3 is stable. This outcome underpins the stable outlook for the bank's A1 GLC. The two-notch lift above the BCA reflects the high likelihood of strong systemic support for Maybank, should the need arise, it said.
The outlook for Maybank's A3 foreign currency Tier 1 capital securities -- at Malaysia's A3 foreign currency sovereign ceiling -- was also revised to stable.
Moody's affirmation of Maybank's C BFSR with a revised stable outlook is based upon its replenished level of equity capital, derived in turn from its recent rights offering and healthy non-performing loans (NPL) reserve coverage.
Maybank's loan loss reserves covered 112.9 per cent of gross NPLs, higher than 101.1 per cent a year ago. Gross NPL ratio was also slightly lower at 3.5 per cent compared to 3.8 per cent over the same period.
Maybank's capital and loan loss reserves are sufficient to protect creditors under Moody's anticipated stress scenario. But higher-than-expected loan losses could add pressure to capital and earnings.
Maybank's P-1 local and foreign currency short-term deposit ratings, A3 foreign currency long-term deposit rating, and A3 foreign currency subordinated debt rating remain unaffected with stable outlook.
The outlook change on Maybank's BFSR reflects the replenished state of its capital level, its improved NPL provision coverage and its dominant local franchise.
On March 27, 2008, Moody's had changed the bank's BFSR outlook from stable to negative over concerns that its series of offshore investments -- of which its controlling interest in PT Bank Internasional Indonesia (BII) was the largest -- could erode the level and quality of its capital. Other investments included minority stakes in Pakistan's MCB Bank and Vietnam's An Binh Bank.
At the same time, the revised stable outlook for Maybank's C BFSR implies its Baseline Credit Assessment (BCA) of A3 is stable. This outcome underpins the stable outlook for the bank's A1 GLC. The two-notch lift above the BCA reflects the high likelihood of strong systemic support for Maybank, should the need arise, it said.
The outlook for Maybank's A3 foreign currency Tier 1 capital securities -- at Malaysia's A3 foreign currency sovereign ceiling -- was also revised to stable.
Moody's affirmation of Maybank's C BFSR with a revised stable outlook is based upon its replenished level of equity capital, derived in turn from its recent rights offering and healthy non-performing loans (NPL) reserve coverage.
Maybank's loan loss reserves covered 112.9 per cent of gross NPLs, higher than 101.1 per cent a year ago. Gross NPL ratio was also slightly lower at 3.5 per cent compared to 3.8 per cent over the same period.
Maybank's capital and loan loss reserves are sufficient to protect creditors under Moody's anticipated stress scenario. But higher-than-expected loan losses could add pressure to capital and earnings.