Singapore's second largest utility firm PowerSeraya Ltd, together with Malaysian parent YTL Power, is seeking to expand its operations, which could include selling utilities, fuel trading, and oil storage, in the region.
Malaysia's construction power conglomerate YTL Corp, bought PowerSeraya from Singapore state investor Temasek Holdings in December 2008 for S$3.8bil.
YTL Power International Bhd's businesses include power generation in Malaysia and Indonesia, power transmission in Australia and provision of water and sewage services in the UK.
Monday, May 31, 2010
YUNKONG ... May10
It had stocked up on its raw materials, hot rolled coils, for the last two quarters (4Q2009-1Q2010) as it had expected prices to trend higher. Its stock was higher than normal in the last two quarters because it expected prices to remain in the upward trend.
Inventories as at March 31, 2010 were worth RM152.2 million versus RM135.7 million as at Dec 31, 2009 while it was RM91.1 million a year ago. As a result of the stocking up, the company’s stock turnover in the last two quarters increased to about four months from a normal two to two-and-a-half months.
YKGI’s stocking-up activities have seen its short-term borrowing increase from RM196.86 million as at Dec 31, 2009 to RM208.81 million as at March 31 2010. Its gearing of about 1.5 times as at March 31 2010 would naturally raise concerns on its ability to service and pare its debts. Its operational cash flow was at a deficit of RM4.1 million.
YKGI returned to the black in the three months just ended with a net profit of RM5.16 million versus a net loss of RM6.21 million a year ago while revenue rose 63% to RM117.4 million from RM72 million.
YKGI gets its raw material supplies from Megasteel Sdn Bhd as well as from Japan and Korea while it sells the finished products to local building materials players such as Ajiya Bhd. Megasteel, a sister company of Lion Industries Corporation Bhd, is the sole supplier of hot rolled coils in the country.
However, the company has started to destock or buy less raw materials in the current quarter (2Q2010) as it prefers to remain cautious. Although the management believes steel prices will go up further, they do not want to be caught as steel prices could also go south.
In the last two quarters (4Q2009-1Q20910), the average prices for hot rolled coils were between US$600 (RM1,992) and US$700 per tonne. However, it is now at about US$800 per tonne.
The cost of the benchmark hot rolled coil steel was about US$550 in January 2010 while it traded as low as US$380 a tonne in 2009. Too high a price may cause a sharp correction in steel prices if the market is unable to support such price levels.
Hence, YKGI expects to reap benefits from its inventory strategy as for the second half of this year (2010).
Inventories as at March 31, 2010 were worth RM152.2 million versus RM135.7 million as at Dec 31, 2009 while it was RM91.1 million a year ago. As a result of the stocking up, the company’s stock turnover in the last two quarters increased to about four months from a normal two to two-and-a-half months.
YKGI’s stocking-up activities have seen its short-term borrowing increase from RM196.86 million as at Dec 31, 2009 to RM208.81 million as at March 31 2010. Its gearing of about 1.5 times as at March 31 2010 would naturally raise concerns on its ability to service and pare its debts. Its operational cash flow was at a deficit of RM4.1 million.
YKGI returned to the black in the three months just ended with a net profit of RM5.16 million versus a net loss of RM6.21 million a year ago while revenue rose 63% to RM117.4 million from RM72 million.
YKGI gets its raw material supplies from Megasteel Sdn Bhd as well as from Japan and Korea while it sells the finished products to local building materials players such as Ajiya Bhd. Megasteel, a sister company of Lion Industries Corporation Bhd, is the sole supplier of hot rolled coils in the country.
However, the company has started to destock or buy less raw materials in the current quarter (2Q2010) as it prefers to remain cautious. Although the management believes steel prices will go up further, they do not want to be caught as steel prices could also go south.
In the last two quarters (4Q2009-1Q20910), the average prices for hot rolled coils were between US$600 (RM1,992) and US$700 per tonne. However, it is now at about US$800 per tonne.
The cost of the benchmark hot rolled coil steel was about US$550 in January 2010 while it traded as low as US$380 a tonne in 2009. Too high a price may cause a sharp correction in steel prices if the market is unable to support such price levels.
Hence, YKGI expects to reap benefits from its inventory strategy as for the second half of this year (2010).
Sunday, May 30, 2010
如果不能一輩子供給我優渥的生活為什麼從小要讓我養成這種習慣
有一對父母,他們的小孩大學畢業,上班了，有了收入,所以父母不再給零用錢， 可是入了社會的小孩.用好的吃好的.追流行.錢根本不夠用.結果丟了一句話給父母
"如果你們不能一輩子供給我優渥的生活，那為什麼從小要讓我養成這種習慣?........."
看了打了個冷顫 我們是不是也是這樣的父母?
我們要怎樣教我們的孩子愛物惜物?
我今年二十歲，目前因故休學，在一家安親班打工。
安親班鄰近便利商店，孩子很喜歡去那裡買東西。
常見包子吃一口就丟，飲料喝半罐就不要.洋芋片才吃兩片，就買一包別的來吃。
這些孩子平常也喜歡偷藏別人的東西開玩笑，愛看人家著急的神情。
我曾多次制止，他們卻毫不覺得不妥，甚至腦筋還動到我的火車月票上。
我生活一向儉約，身上很少帶超過五十元。
失去月票，我回不了家，只能投宿朋友家.而我怎樣也沒有想到--竟是他們偷拿我的東西！
他們非常聰明，一直等到月票過期了才拿出來還給我。
我說，這種行為是不對的，我會寫在聯絡簿上告知家長。
這些孩子竟然從錢包掏出兩千元摔在我面前： 「小氣鬼，才兩千，賠妳就是了！」 「才」兩千元嗎？
我還不到可以老氣橫秋地說 「我們那個年代啊……」的年紀， 我也沒嘗過貧窮的滋味，
但那兩千元也是我辛苦從生活費中儉省下來的，是我半個月的生活費啊!
這些孩子竟然可以這麼不屑地從錢包?
掏出來摔在我面前！
這讓我想起之前某一次當家教， 我看那個孩子家中並非十分富裕，
醫科生的我，時薪是可以索價五百到七百元的，但我只要了時薪三百元。
我認真地教他，無奈學生不用心，總是想聊天，不想聽課，
後來竟挑明了說：「要不是我媽說,上妳一小時課.給我五百元，我才不想聽妳講這些無聊東西呢！」
原來請我當家教，比請他當學生便宜多了！
我不知道這些孩子的家庭是否真的很富裕，但他們生活的態度簡直像暴發戶。
這樣對孩子好嗎？
父母不能供應孩子一輩子!
是不是應教會"孩子節儉".比期望孩子以後能賺大錢.維持闊綽生活，可實際多了。
昨天我在教室的白板上心痛地寫下：「一粥一飯，當思來處不易；半絲半縷，恆念物力維艱。」
這是一個很古老的諺語，但我不認為這不合時代。
教給孩子一種美德，是留給他們一項比萬貫家財還要重要的資產。
因為自己.小時候過得辛苦，便盡量給孩子好日子過的家長"請深思"，這樣究竟是愛孩子，還是害了孩子。
捨不得孩子吃苦，將來他會更苦！
許多父母養小孩是把孩子捧在手心上，怕他凍著、怕他餓著、摔著．．．
其實這種過度的保護，只會讓他更低能、更依賴、更不知如何面對人生的大風大浪。
"如果你們不能一輩子供給我優渥的生活，那為什麼從小要讓我養成這種習慣?........."
看了打了個冷顫 我們是不是也是這樣的父母?
我們要怎樣教我們的孩子愛物惜物?
我今年二十歲，目前因故休學，在一家安親班打工。
安親班鄰近便利商店，孩子很喜歡去那裡買東西。
常見包子吃一口就丟，飲料喝半罐就不要.洋芋片才吃兩片，就買一包別的來吃。
這些孩子平常也喜歡偷藏別人的東西開玩笑，愛看人家著急的神情。
我曾多次制止，他們卻毫不覺得不妥，甚至腦筋還動到我的火車月票上。
我生活一向儉約，身上很少帶超過五十元。
失去月票，我回不了家，只能投宿朋友家.而我怎樣也沒有想到--竟是他們偷拿我的東西！
他們非常聰明，一直等到月票過期了才拿出來還給我。
我說，這種行為是不對的，我會寫在聯絡簿上告知家長。
這些孩子竟然從錢包掏出兩千元摔在我面前： 「小氣鬼，才兩千，賠妳就是了！」 「才」兩千元嗎？
我還不到可以老氣橫秋地說 「我們那個年代啊……」的年紀， 我也沒嘗過貧窮的滋味，
但那兩千元也是我辛苦從生活費中儉省下來的，是我半個月的生活費啊!
這些孩子竟然可以這麼不屑地從錢包?
掏出來摔在我面前！
這讓我想起之前某一次當家教， 我看那個孩子家中並非十分富裕，
醫科生的我，時薪是可以索價五百到七百元的，但我只要了時薪三百元。
我認真地教他，無奈學生不用心，總是想聊天，不想聽課，
後來竟挑明了說：「要不是我媽說,上妳一小時課.給我五百元，我才不想聽妳講這些無聊東西呢！」
原來請我當家教，比請他當學生便宜多了！
我不知道這些孩子的家庭是否真的很富裕，但他們生活的態度簡直像暴發戶。
這樣對孩子好嗎？
父母不能供應孩子一輩子!
是不是應教會"孩子節儉".比期望孩子以後能賺大錢.維持闊綽生活，可實際多了。
昨天我在教室的白板上心痛地寫下：「一粥一飯，當思來處不易；半絲半縷，恆念物力維艱。」
這是一個很古老的諺語，但我不認為這不合時代。
教給孩子一種美德，是留給他們一項比萬貫家財還要重要的資產。
因為自己.小時候過得辛苦，便盡量給孩子好日子過的家長"請深思"，這樣究竟是愛孩子，還是害了孩子。
捨不得孩子吃苦，將來他會更苦！
許多父母養小孩是把孩子捧在手心上，怕他凍著、怕他餓著、摔著．．．
其實這種過度的保護，只會讓他更低能、更依賴、更不知如何面對人生的大風大浪。
Saturday, May 29, 2010
有些事情被騙了快20年 ... 3
23、非洲的最南端就是好望角
非洲最南端的點是厄加勒斯角（Kap Agulhas，意為「針角」），它位於好望角東邊大約 150公里處，而且還要再往南延伸差不多 65公里 。狄亞斯（Bartholomeu Diaz）在1488年成為第一個繞過這兩個岬角的人，當時他說了一句話：「波濤洶湧的岬角。」但他所指的還有測量的是哪一個角，我們並不清楚。不論如何，對航海的人而言，好望角是一個很明顯的陸標；好望角的名字應該是葡萄牙國王取的，他希望當時就可以找出一條通往印度的海路。
24、過酸的食物會造成胃穿孔？
對於想阻止小孩食用太多汽水和其他甜食但卻束手無策的家長而言，這是個很常用的恐怖童話。人類的胃裡本來就含有消化食物的胃酸，因此我們的胃並不會因為酸性物質而受到傷害。
25、阿拉伯數字是阿拉伯人發明的
阿拉伯數字，是哪一國人發明的呢？答案不是阿拉伯人，是印度人！所謂的阿拉伯數字，
是西元10世紀的時候阿拉伯人從印度引進的，後來歐洲人在14世紀的時候從阿拉伯人那邊學到了0到9的數字寫法，取代了羅馬字母，而大家也就把這些數字稱為是「阿拉伯數字」。
26、民可使由之，不可使知之—孔子
其實是『民可，使由之；不可，使知之』，「民可，使由之；不可，使知之。」也就是民可，則使由之；不可，則使知之。
人民能做的事，由他們去做；不能做的事，要讓他們知道不能做的原因。古代沒標點害人啊……
27、梁山伯與祝英台—文學創作果然是神奇的……
梁山伯其實是明朝的清官……，祝英台南北朝魏國的女俠……兩朝代相差700多年，只是被埋的近而已……還有種說法是，埋梁的時候那地裡挖到祝的碑，就埋一起，冥婚？
28、陳世美拋妻棄子，楊門女將，楊家將
楊業就一個兒子，楊延昭，也就是俗稱的楊六郎。所謂楊家七個兒子是假的。陳世美的
朝代比包公早很多，是個非常好的清官，得罪了權貴被傳成了一個負心漢遭後世唾罵。
29、周瑜被諸葛亮氣得吐血，空城計
三國演義裡周瑜被諸葛亮氣得吐血而死是羅貫中胡扯的，原因在於羅屢試不第並遷怒於
周瑜的後人，故在書裡意淫洩憤。事實上現在周瑜的族人還有族譜，證實此說純粹造謠。
諸葛亮根本沒做這回事，但是據說曹操曾有類似演出，引易中天一句話，難道司馬懿那麼蠢不會叫個弓箭手把諸葛亮射下來嗎？
30、綜合維他命有益健康？
營養專家提醒，維他命不是多吃多補，所以不要去吃單劑補充品，如維他命E、鈣片等，
每天可以吃一顆綜合維他命，安全又實際。專家警告，每天吃一顆綜合維他命都可能出問題。
因為，某些綜合維他命裡的維生素、礦物質劑量，高到超過了安全值，高劑量的維他命對健康及預防疾病沒好處，反而會增加某些疾病的風險。血液中維生素A濃度高的人，罹患骨質疏鬆症的風險也比較高。攝取過量維生素A，會增加2倍的骨折風險。攝取的維生素A會累積在體內，不像水溶性維生素（如B群、C）能隨尿液排出體外。
31、以德報怨
原句：「或曰：『以德報怨，何如？』子曰：「何以報德？以直報怨，以德報德」—《論語憲問》
以德報怨，是我們常聽到的一句話了，人們通常理解的「以德報怨」什麼意思呢？就是說：孔老夫子教我們，別人欺負你了，你要忍，被打碎牙齒也要往肚子裡吞，別人來欺負你，
你反而應該對他更好，要用你的愛心去感化他，用你的胸懷去感動他。但事實上，我們根本曲解了孔子的原意，我當初，也萬萬沒想到原來在孔子這句「以德報怨」的後邊還跟著另外一段話，子曰：「以德抱怨，何以報德？以直報怨，以德報德！」
孔子的一個弟子問他說：師傅，別人打我了，我不打他，我反而要對他好，用我的道德和教養羞死他，讓他悔悟，好不好？孔子就說了，你以德抱怨，那「何以報德？」別人以德來待你的時候，你才需要以德來回報別人。可是現在別人打了你，你就應該「以直抱怨」，拿起板磚扁他！因為被人故意省略了一句話，剛烈如火的孔老夫子一下就被扭曲成了現在這個溫婉的受氣包形象。
32、無毒不丈夫 原句：量小非君子，無度不丈夫。—民間諺語聯對
這句來自民間的諺語本來應該是「量小非君子，無度不丈夫」，這本來是個很好的句子，裡邊充分運用了對仗。顯示出了一份陽剛有力的氣魄，一個胸懷坦蕩的男人形象就躍然於紙上，可惜勞動人民口耳相傳的這一句話，到了朝廷上那些所謂的學高八斗的「君子」嘴裡就變了個味。為什麼呢？這要從古時候文人的習性說起，在這副對聯式的諺語裡，「度」為仄聲字，犯了孤平，念著彆扭，很容易讀為平聲字「毒」，那些對音律美感要求甚高的學者們某天吃飽了沒事兒干，便發揮他們的專長自做主張，把這句改為「無毒不丈夫」了。
33、天地不仁，以萬物為芻狗
原句：天地不仁，以萬物為芻狗，聖人不仁，以百姓為芻狗——《道德經》
這話的意思是說：「天地殘暴不仁，把萬物都當成低賤的豬狗來看待，而那些高高在上的所謂聖人們也沒兩樣，還不是把老百姓也當成豬狗不如的東西！」其實這句話的真正意思是說，天地不情感用事，對萬物一視同仁，聖人不情感用事，對百姓一視同仁。
非洲最南端的點是厄加勒斯角（Kap Agulhas，意為「針角」），它位於好望角東邊大約 150公里處，而且還要再往南延伸差不多 65公里 。狄亞斯（Bartholomeu Diaz）在1488年成為第一個繞過這兩個岬角的人，當時他說了一句話：「波濤洶湧的岬角。」但他所指的還有測量的是哪一個角，我們並不清楚。不論如何，對航海的人而言，好望角是一個很明顯的陸標；好望角的名字應該是葡萄牙國王取的，他希望當時就可以找出一條通往印度的海路。
24、過酸的食物會造成胃穿孔？
對於想阻止小孩食用太多汽水和其他甜食但卻束手無策的家長而言，這是個很常用的恐怖童話。人類的胃裡本來就含有消化食物的胃酸，因此我們的胃並不會因為酸性物質而受到傷害。
25、阿拉伯數字是阿拉伯人發明的
阿拉伯數字，是哪一國人發明的呢？答案不是阿拉伯人，是印度人！所謂的阿拉伯數字，
是西元10世紀的時候阿拉伯人從印度引進的，後來歐洲人在14世紀的時候從阿拉伯人那邊學到了0到9的數字寫法，取代了羅馬字母，而大家也就把這些數字稱為是「阿拉伯數字」。
26、民可使由之，不可使知之—孔子
其實是『民可，使由之；不可，使知之』，「民可，使由之；不可，使知之。」也就是民可，則使由之；不可，則使知之。
人民能做的事，由他們去做；不能做的事，要讓他們知道不能做的原因。古代沒標點害人啊……
27、梁山伯與祝英台—文學創作果然是神奇的……
梁山伯其實是明朝的清官……，祝英台南北朝魏國的女俠……兩朝代相差700多年，只是被埋的近而已……還有種說法是，埋梁的時候那地裡挖到祝的碑，就埋一起，冥婚？
28、陳世美拋妻棄子，楊門女將，楊家將
楊業就一個兒子，楊延昭，也就是俗稱的楊六郎。所謂楊家七個兒子是假的。陳世美的
朝代比包公早很多，是個非常好的清官，得罪了權貴被傳成了一個負心漢遭後世唾罵。
29、周瑜被諸葛亮氣得吐血，空城計
三國演義裡周瑜被諸葛亮氣得吐血而死是羅貫中胡扯的，原因在於羅屢試不第並遷怒於
周瑜的後人，故在書裡意淫洩憤。事實上現在周瑜的族人還有族譜，證實此說純粹造謠。
諸葛亮根本沒做這回事，但是據說曹操曾有類似演出，引易中天一句話，難道司馬懿那麼蠢不會叫個弓箭手把諸葛亮射下來嗎？
30、綜合維他命有益健康？
營養專家提醒，維他命不是多吃多補，所以不要去吃單劑補充品，如維他命E、鈣片等，
每天可以吃一顆綜合維他命，安全又實際。專家警告，每天吃一顆綜合維他命都可能出問題。
因為，某些綜合維他命裡的維生素、礦物質劑量，高到超過了安全值，高劑量的維他命對健康及預防疾病沒好處，反而會增加某些疾病的風險。血液中維生素A濃度高的人，罹患骨質疏鬆症的風險也比較高。攝取過量維生素A，會增加2倍的骨折風險。攝取的維生素A會累積在體內，不像水溶性維生素（如B群、C）能隨尿液排出體外。
31、以德報怨
原句：「或曰：『以德報怨，何如？』子曰：「何以報德？以直報怨，以德報德」—《論語憲問》
以德報怨，是我們常聽到的一句話了，人們通常理解的「以德報怨」什麼意思呢？就是說：孔老夫子教我們，別人欺負你了，你要忍，被打碎牙齒也要往肚子裡吞，別人來欺負你，
你反而應該對他更好，要用你的愛心去感化他，用你的胸懷去感動他。但事實上，我們根本曲解了孔子的原意，我當初，也萬萬沒想到原來在孔子這句「以德報怨」的後邊還跟著另外一段話，子曰：「以德抱怨，何以報德？以直報怨，以德報德！」
孔子的一個弟子問他說：師傅，別人打我了，我不打他，我反而要對他好，用我的道德和教養羞死他，讓他悔悟，好不好？孔子就說了，你以德抱怨，那「何以報德？」別人以德來待你的時候，你才需要以德來回報別人。可是現在別人打了你，你就應該「以直抱怨」，拿起板磚扁他！因為被人故意省略了一句話，剛烈如火的孔老夫子一下就被扭曲成了現在這個溫婉的受氣包形象。
32、無毒不丈夫 原句：量小非君子，無度不丈夫。—民間諺語聯對
這句來自民間的諺語本來應該是「量小非君子，無度不丈夫」，這本來是個很好的句子，裡邊充分運用了對仗。顯示出了一份陽剛有力的氣魄，一個胸懷坦蕩的男人形象就躍然於紙上，可惜勞動人民口耳相傳的這一句話，到了朝廷上那些所謂的學高八斗的「君子」嘴裡就變了個味。為什麼呢？這要從古時候文人的習性說起，在這副對聯式的諺語裡，「度」為仄聲字，犯了孤平，念著彆扭，很容易讀為平聲字「毒」，那些對音律美感要求甚高的學者們某天吃飽了沒事兒干，便發揮他們的專長自做主張，把這句改為「無毒不丈夫」了。
33、天地不仁，以萬物為芻狗
原句：天地不仁，以萬物為芻狗，聖人不仁，以百姓為芻狗——《道德經》
這話的意思是說：「天地殘暴不仁，把萬物都當成低賤的豬狗來看待，而那些高高在上的所謂聖人們也沒兩樣，還不是把老百姓也當成豬狗不如的東西！」其實這句話的真正意思是說，天地不情感用事，對萬物一視同仁，聖人不情感用事，對百姓一視同仁。
Friday, May 28, 2010
Thursday, May 27, 2010
MISC ... May10
MISC 4QE MAR 2010 NET PROFIT UP 36.5% ON LNG AND OFFSHORE BUSINESSES
MISC recorded a 36.5% jump in Net Profit to RM196.4m for 4QE Mar 2010, up from the RM143.9m Net Profit same quarter a year ago, mainly contributed by its LNG and offshore businesses, and the reduction of operating costs.
Revenue for 4QE Mar 2010 however fell 17.3%, from RM3.9bil to RM3.3bil same quarter a year ago, while EPS rose from 3.78 sen to 5.09 sen.
FYE MAR 2010 NET PROFIT DROPS TO HALF
For the FYE Mar 2010, the Company's Net Profit fell to RM682m, half of its FYE Mar 2009 Net Profit of RM1.4bil. Revenue dropped 12.7% to RM13.8bil from RM15.8bil, while EPS fell to 17.67 sen from 35.91 sen.
FINAL DIVIDEND DECLARED
FINAL DIVIDEND OF 20 SEN PER SHARE PROPOSED
The Company has proposed a Final Dividend of 20 sen tax-exempt per share of 20 sen, which it hopes to pay on Aug 30, 2010.
OUTLOOK
The Company hopes for an improvement in performance with the expansion of its heavy engineering business, and the increase in number of earning assets of its offshore business. Freight rates also have been recovering, and the Company has managed to contain the losses of its liner business.
CASH & BANK BALANCES DOUBLE, BORROWINGS INCREASE
The Company's Cash & Bank Balances doubled to RM7.85 bil as at Mar 31, 2010 from its Apr 1, 2009 balances of RM3.73 bil.
Long Term Borrowings as at Mar 31, 2010 increased to RM9.19 bil, up from RM8.75 bil on Apr 1, 2009, while Trade & Other Payables rose to RM3.58 bil from RM3.10 bil.
MISC recorded a 36.5% jump in Net Profit to RM196.4m for 4QE Mar 2010, up from the RM143.9m Net Profit same quarter a year ago, mainly contributed by its LNG and offshore businesses, and the reduction of operating costs.
Revenue for 4QE Mar 2010 however fell 17.3%, from RM3.9bil to RM3.3bil same quarter a year ago, while EPS rose from 3.78 sen to 5.09 sen.
FYE MAR 2010 NET PROFIT DROPS TO HALF
For the FYE Mar 2010, the Company's Net Profit fell to RM682m, half of its FYE Mar 2009 Net Profit of RM1.4bil. Revenue dropped 12.7% to RM13.8bil from RM15.8bil, while EPS fell to 17.67 sen from 35.91 sen.
FINAL DIVIDEND DECLARED
FINAL DIVIDEND OF 20 SEN PER SHARE PROPOSED
The Company has proposed a Final Dividend of 20 sen tax-exempt per share of 20 sen, which it hopes to pay on Aug 30, 2010.
OUTLOOK
The Company hopes for an improvement in performance with the expansion of its heavy engineering business, and the increase in number of earning assets of its offshore business. Freight rates also have been recovering, and the Company has managed to contain the losses of its liner business.
CASH & BANK BALANCES DOUBLE, BORROWINGS INCREASE
The Company's Cash & Bank Balances doubled to RM7.85 bil as at Mar 31, 2010 from its Apr 1, 2009 balances of RM3.73 bil.
Long Term Borrowings as at Mar 31, 2010 increased to RM9.19 bil, up from RM8.75 bil on Apr 1, 2009, while Trade & Other Payables rose to RM3.58 bil from RM3.10 bil.
Wednesday, May 26, 2010
KOSSAN ... May10
S & P Results Review & Earnings Outlook
Kossan’s 1Q10 results were within expectations as net profit of MYR30.4 mln accounted for 24% of our 2010 estimate.
1Q10 sales volume rose 20% YoY while average selling price (ASP) was hiked up by 6% YoY. Coupled with improved demand for its technical rubber products (+36% YoY), these factors resulted in a 30% YoY rise in group revenue. However, due to the high price of latex, we see operating profit margin fall to 15.6% from 16.4% and in 1Q09
respectively.
Kossan also achieved revenue growth of 15% QoQ, mainly due to higher ASP (+23% QoQ). 1Q10 sales volume is generally lower than the fourth quarter due lower average latex cost in 2H, which prompts customers to stock up inventory. Operating profit however, fell 19% QoQ, mainly due to an insurance compensation which boosted 4Q09
profits. Stripping this out 1Q10 operating profit was similar to 4Q09.
Kossan is expecting 1.7 bln of new gloves capacity to come in by mid-2010 and another 1.7 bln in 3Q10. The additional new capacity would add to revenue growth in 2H10. We expect demand to continue to be strong and outstrip supply at least for the rest of the year.
We maintain our 2010 and 2011 earnings estimates.
Recommendation & Investment Risks
We maintain our Strong Buy recommendation with an unchanged 12-month target price of MYR9.00.
We lower our target PER to 9x (from 11x) against our projected 2011 (rollover from 2010) EPS for Kossan and add our 12-month net DPS of 6.8 sen. The lower target multiple reflects the lower peer average.
We like Kossan as we believe industry fundamentals remain sound. In addition, the further spread of H1N1 flu could trigger higher-thanexpected demand. Furthermore, Kossan’s new capacity will target the nitrile glove segment which carries higher margins. We believe these positive factors should support the out-performance of Kossan’s share price going forward.
Risks to our recommendation and target price include potential delays in the commissioning of new production lines and a stronger-thanexpected appreciation of MYR as over 90% of its revenue (gloves and TRP) are derived from exports, while about 70% of its costs are in USD.
Kossan’s 1Q10 results were within expectations as net profit of MYR30.4 mln accounted for 24% of our 2010 estimate.
1Q10 sales volume rose 20% YoY while average selling price (ASP) was hiked up by 6% YoY. Coupled with improved demand for its technical rubber products (+36% YoY), these factors resulted in a 30% YoY rise in group revenue. However, due to the high price of latex, we see operating profit margin fall to 15.6% from 16.4% and in 1Q09
respectively.
Kossan also achieved revenue growth of 15% QoQ, mainly due to higher ASP (+23% QoQ). 1Q10 sales volume is generally lower than the fourth quarter due lower average latex cost in 2H, which prompts customers to stock up inventory. Operating profit however, fell 19% QoQ, mainly due to an insurance compensation which boosted 4Q09
profits. Stripping this out 1Q10 operating profit was similar to 4Q09.
Kossan is expecting 1.7 bln of new gloves capacity to come in by mid-2010 and another 1.7 bln in 3Q10. The additional new capacity would add to revenue growth in 2H10. We expect demand to continue to be strong and outstrip supply at least for the rest of the year.
We maintain our 2010 and 2011 earnings estimates.
Recommendation & Investment Risks
We maintain our Strong Buy recommendation with an unchanged 12-month target price of MYR9.00.
We lower our target PER to 9x (from 11x) against our projected 2011 (rollover from 2010) EPS for Kossan and add our 12-month net DPS of 6.8 sen. The lower target multiple reflects the lower peer average.
We like Kossan as we believe industry fundamentals remain sound. In addition, the further spread of H1N1 flu could trigger higher-thanexpected demand. Furthermore, Kossan’s new capacity will target the nitrile glove segment which carries higher margins. We believe these positive factors should support the out-performance of Kossan’s share price going forward.
Risks to our recommendation and target price include potential delays in the commissioning of new production lines and a stronger-thanexpected appreciation of MYR as over 90% of its revenue (gloves and TRP) are derived from exports, while about 70% of its costs are in USD.
Kencana ... May10
It had secured four contracts recently, the latest being a RM45 million contract from India’s Larsen & Toubro announced on Tuesday. This takes its order book to just a shade below RM2 billion.
Expecting more contracts to be announced in the coming months (May 2010 & Beyond). Kencana is aiming for RM1 billion worth of new fabrication contracts in 2010, of which 70% is expected to be domestic jobs.
Its wholly owned unit and main fabrication arm Kencana HL has been awarded a US$14 million (RM45 million) contract to construct jackets for offshore platforms to be located in India. The client is India’s Larsen & Toubro. This one-off contract is expected to run from 1Q to 3QFY7/11.
The management continues to deliver its promise of growing the order book. The recent contract is Kencana’s fourth since April 15 2010. The new contracts, worth a collective RM336 million, take Kencana’s outstanding order book to slightly below RM2 billion.
Capacity is not an issue as Kencana’s 169-acre yard in Lumut is running at 50% utilisation with extra space earmarked for new contracts.
New contracts (Malaysia, India and Australia) and new ventures (offshore support, drilling and pipeline installation) fuel our optimism on Kencana.
Favourable earnings prospects and its strategy of moving up the value chain with the new ventures.
Expecting more contracts to be announced in the coming months (May 2010 & Beyond). Kencana is aiming for RM1 billion worth of new fabrication contracts in 2010, of which 70% is expected to be domestic jobs.
Its wholly owned unit and main fabrication arm Kencana HL has been awarded a US$14 million (RM45 million) contract to construct jackets for offshore platforms to be located in India. The client is India’s Larsen & Toubro. This one-off contract is expected to run from 1Q to 3QFY7/11.
The management continues to deliver its promise of growing the order book. The recent contract is Kencana’s fourth since April 15 2010. The new contracts, worth a collective RM336 million, take Kencana’s outstanding order book to slightly below RM2 billion.
Capacity is not an issue as Kencana’s 169-acre yard in Lumut is running at 50% utilisation with extra space earmarked for new contracts.
New contracts (Malaysia, India and Australia) and new ventures (offshore support, drilling and pipeline installation) fuel our optimism on Kencana.
Favourable earnings prospects and its strategy of moving up the value chain with the new ventures.
Tuesday, May 25, 2010
Century ... May10
S & P Results Review & Earnings Outlook
• CLH’s 1Q10 reported net profit of MYR5.9 mln, up 457% YoY but down 17% QoQ, was broadly within our expectations, accounting for 23% of our 2010 estimate. Net profit would have been higher if not for an MYR0.5-mln reduction in fair value of available-for-sale financial asset and an MYR0.2-mln translation loss of foreign operations.
• The key driver for the YoY increase was an improved economic environment, which resulted in additional business from existing and new customers, lifting revenue 51% YoY to MYR59.8 mln. The QoQ profit decline was due to higher fixed and operating costs, including depreciation and interest charges upon completion of its new Thailand warehouse in January.
• The 2010 outlook remains firm and we leave our earnings estimates and recommendation unchanged. CLH’s oil & gas logistics business, especially its ship-to-ship transfer operations, is performing well, as lower oil prices result in increased volumes. Its domestic warehouses are fully tenanted, and new business secured in 2009 should contribute as operations are ramped up. However, CLH’s new
Thailand warehouse is expected to lose money as it continues to source for clients. The haulage business continues to be competitive and CLH will not expand this business. The procurement & assembly division is busy with deliveries of LCD TVs to Syria and microwave ovens to Argentina.
Recommendation & Investment Risks
• We maintain our Strong Buy recommendation on CLH and leave our 12-month target price of MYR2.30 unchanged.
• Our opinion is based on the firmer outlooks for the group’s oil & gas logistics operations and total logistics business. CLH’s strong niche in the provision of oil & gas logistics in Malaysia places the group in a good position to benefit from the robust oil & gas sector. Its two warehouses in Port Tanjung Pelepas (PTP) are fully tenanted, and CLH is looking to expand by building a third warehouse in PTP, to be
competed in 3Q10. Beyond that, CLH is also planning to build its headquarters and distribution hub on a 30-acre piece of land it bought last year in Bukit Raja, Klang. CLC is also looking at opportunities to venture into Indonesia and Vietnam.
• Our unchanged 12-month target price for CLH of MYR2.30 is based on a blend of 12.0x 2010 earnings and 0.70x end-2010 book value. Our target multiples are in line with peer valuations.
• Risks to our recommendation and target price include increased oil price volatility, which would encourage CLH’s customers to reduce their fuel oil inventories, and result in lower handling volumes for CLH. A disruption to the global economic recovery would reduce trade flows and negatively impact CLH’s total logistics and supply management business. Further appreciation of the MYR could result in more foreign currency translation losses.
• CLH’s 1Q10 reported net profit of MYR5.9 mln, up 457% YoY but down 17% QoQ, was broadly within our expectations, accounting for 23% of our 2010 estimate. Net profit would have been higher if not for an MYR0.5-mln reduction in fair value of available-for-sale financial asset and an MYR0.2-mln translation loss of foreign operations.
• The key driver for the YoY increase was an improved economic environment, which resulted in additional business from existing and new customers, lifting revenue 51% YoY to MYR59.8 mln. The QoQ profit decline was due to higher fixed and operating costs, including depreciation and interest charges upon completion of its new Thailand warehouse in January.
• The 2010 outlook remains firm and we leave our earnings estimates and recommendation unchanged. CLH’s oil & gas logistics business, especially its ship-to-ship transfer operations, is performing well, as lower oil prices result in increased volumes. Its domestic warehouses are fully tenanted, and new business secured in 2009 should contribute as operations are ramped up. However, CLH’s new
Thailand warehouse is expected to lose money as it continues to source for clients. The haulage business continues to be competitive and CLH will not expand this business. The procurement & assembly division is busy with deliveries of LCD TVs to Syria and microwave ovens to Argentina.
Recommendation & Investment Risks
• We maintain our Strong Buy recommendation on CLH and leave our 12-month target price of MYR2.30 unchanged.
• Our opinion is based on the firmer outlooks for the group’s oil & gas logistics operations and total logistics business. CLH’s strong niche in the provision of oil & gas logistics in Malaysia places the group in a good position to benefit from the robust oil & gas sector. Its two warehouses in Port Tanjung Pelepas (PTP) are fully tenanted, and CLH is looking to expand by building a third warehouse in PTP, to be
competed in 3Q10. Beyond that, CLH is also planning to build its headquarters and distribution hub on a 30-acre piece of land it bought last year in Bukit Raja, Klang. CLC is also looking at opportunities to venture into Indonesia and Vietnam.
• Our unchanged 12-month target price for CLH of MYR2.30 is based on a blend of 12.0x 2010 earnings and 0.70x end-2010 book value. Our target multiples are in line with peer valuations.
• Risks to our recommendation and target price include increased oil price volatility, which would encourage CLH’s customers to reduce their fuel oil inventories, and result in lower handling volumes for CLH. A disruption to the global economic recovery would reduce trade flows and negatively impact CLH’s total logistics and supply management business. Further appreciation of the MYR could result in more foreign currency translation losses.
Jobstreet ... May10
JobStreet Corporation Bhd in revising its dividend policy will distribute half of its annual net profit as dividends starting from the the current financial year ending Dec 31, 2010.
It would begin making quarterly dividends towards this annual target from the quarter ended March 31, 2010. JobStreet did not declare any dividends in FY2009.
For the first quarter just ended, JobStreet posted a 55.4% increase in net profit to RM8.69 million from RM5.59 million a year ago while revenue rose 27% to RM27.63 million from RM21.75 million.
The company attributed the better performance to higher sales of its core products due to improving economic conditions.
The core products JobStreet ESSENTIAL (online job posting service) and JobStreet IMPACT (career website management service) grew 53% and 84.9% year-on-year respectively. However, the increase was partially offset by a decrease in revenue from JobStreet RESOURCE (provision of contract staffing services) by 22.9%.
Moving forward, the company expected to benefit from the economic recovery in the region and the resumption of hiring activities by corporations to facilitate their future growth.
Its 20% stake in Taiwan-based 104 Corporation, which it acquired in April 2010 was expected to contribute positively to its consolidated earnings in 2010. With the elevation of 104 Corp to associate status, the fair value reserve attributed to its investment in 104 Corp amounting to RM29 million as at March 31, 2010 would be reversed and this would impact its other comprehensive income in the second quarter of 2010.
It would begin making quarterly dividends towards this annual target from the quarter ended March 31, 2010. JobStreet did not declare any dividends in FY2009.
For the first quarter just ended, JobStreet posted a 55.4% increase in net profit to RM8.69 million from RM5.59 million a year ago while revenue rose 27% to RM27.63 million from RM21.75 million.
The company attributed the better performance to higher sales of its core products due to improving economic conditions.
The core products JobStreet ESSENTIAL (online job posting service) and JobStreet IMPACT (career website management service) grew 53% and 84.9% year-on-year respectively. However, the increase was partially offset by a decrease in revenue from JobStreet RESOURCE (provision of contract staffing services) by 22.9%.
Moving forward, the company expected to benefit from the economic recovery in the region and the resumption of hiring activities by corporations to facilitate their future growth.
Its 20% stake in Taiwan-based 104 Corporation, which it acquired in April 2010 was expected to contribute positively to its consolidated earnings in 2010. With the elevation of 104 Corp to associate status, the fair value reserve attributed to its investment in 104 Corp amounting to RM29 million as at March 31, 2010 would be reversed and this would impact its other comprehensive income in the second quarter of 2010.
Monday, May 24, 2010
AEON ... May10
AEON Co. Bhd’s (AEON) profit before tax of RM59.4 million for the 1QFY10 was 57.26% better than 1QFY09. This was achieved as a result of a series of operational and business measures that AEON had embarked in the past 18 months to boost its operational efficiency. We noticed that AEON’s profit margins improved from merely below 5% to above 7% in the past two quarters, hence we expect this trend to continue thus we upgraded our earnings target price to RM6.60 from RM5.90 previously.
Highlights
o Revenue 1QFY10 increased marginally by 4.7% Y-O-Y (within our expectation) – For the period ended March 2010 (1QFY10), AEON reported a 4.7% increased in revenue,
y-o-y, a mild yet balanced improvement in both the retail and property management segments, in tandem with the economic growth during the period. In addition, q-o-q
revenue declined by 26.0% was also within our expectation. Our study shows that since 2006 AEON’s 1Q revenue had the tendency to decline from previous quarter mainly due to consumer spending patterns. Contributions of revenues from
new store openings in the past 18 months have in fact reduced the rate of decline in 1QFY10 to the least since FY2006.
o Profit Before Tax surged by 57.3% Y-O-Y (within our expectation) - PBT surged 57.3% y-o-y was due to substantial improvement in margins from around 5.0% to above 6.0% in the retailing segment, whilst the property management services continue to contribute stable recurring earnings at steady growth of around 4% per annum to
AEON. For q-o-q, AEON’s PBT declined of 23.7% was within our expectation. The rate of decline was actually the lowest in the past four financial years.
o Better Outlook as consumer spendings are expected to pick up further. We anticipate that AEON’s revenue would experience a great surge as consumer spendings are expected to swell as domestic economy recovers. A full swing contributions from stores that opened in the previous year as well as in the first half of this year are expected to boost AEON’s revenue for FY10 and beyond.
o BUY with new target price RM6.60 – We have upgraded our forecast of FY10 AEON’s earnings per share to 55.0 sen from 42.4sen previously. By pegging our estimated industry PER of 12x for AEON, we derive our target price at RM6.60. BUY target price to RM6.60 which offers a 32% upside potential from current price. Key downside risks
include: i)substantial margin deterioration in the next three quarters and ii) sudden deterioration in domestic economy.
Highlights
o Revenue 1QFY10 increased marginally by 4.7% Y-O-Y (within our expectation) – For the period ended March 2010 (1QFY10), AEON reported a 4.7% increased in revenue,
y-o-y, a mild yet balanced improvement in both the retail and property management segments, in tandem with the economic growth during the period. In addition, q-o-q
revenue declined by 26.0% was also within our expectation. Our study shows that since 2006 AEON’s 1Q revenue had the tendency to decline from previous quarter mainly due to consumer spending patterns. Contributions of revenues from
new store openings in the past 18 months have in fact reduced the rate of decline in 1QFY10 to the least since FY2006.
o Profit Before Tax surged by 57.3% Y-O-Y (within our expectation) - PBT surged 57.3% y-o-y was due to substantial improvement in margins from around 5.0% to above 6.0% in the retailing segment, whilst the property management services continue to contribute stable recurring earnings at steady growth of around 4% per annum to
AEON. For q-o-q, AEON’s PBT declined of 23.7% was within our expectation. The rate of decline was actually the lowest in the past four financial years.
o Better Outlook as consumer spendings are expected to pick up further. We anticipate that AEON’s revenue would experience a great surge as consumer spendings are expected to swell as domestic economy recovers. A full swing contributions from stores that opened in the previous year as well as in the first half of this year are expected to boost AEON’s revenue for FY10 and beyond.
o BUY with new target price RM6.60 – We have upgraded our forecast of FY10 AEON’s earnings per share to 55.0 sen from 42.4sen previously. By pegging our estimated industry PER of 12x for AEON, we derive our target price at RM6.60. BUY target price to RM6.60 which offers a 32% upside potential from current price. Key downside risks
include: i)substantial margin deterioration in the next three quarters and ii) sudden deterioration in domestic economy.
Padini ...May10
It plans to spend about RM7.55 million on existing and new stores by year-end.
This year our major projects include a flagship Vincci store in Fahrenheit 88 Kuala Lumpur where customers will be able to get bags, shoes and accessories in-store, and a new 15,880-sq ft Brands Outlet store in Sunway Pyramid. The company was also undertaking renovations in its Bandar Utama 2 and Pavilion Padini Concept Store (PCS) outlets. At present, the company has 20 PCS outlets and is also eyeing East Malaysia and regional markets for expansion opportunities.
Sales from PCS outlets contributed about 40% of total group turnover in 2009.
The next level would to bring the company regional and to have more market recognition in Asean countries including Thailand, the Philippines and Brunei, with 23 outlets in Saudi Arabia and nine in the United Arab Emirates (UAE).
The export market contributed about 10% of total revenue, which was RM128.4 million in the second quarter ended Feb 25, 2010.
Most of Padini's expansion plans were funded by internally generated funds.
This year our major projects include a flagship Vincci store in Fahrenheit 88 Kuala Lumpur where customers will be able to get bags, shoes and accessories in-store, and a new 15,880-sq ft Brands Outlet store in Sunway Pyramid. The company was also undertaking renovations in its Bandar Utama 2 and Pavilion Padini Concept Store (PCS) outlets. At present, the company has 20 PCS outlets and is also eyeing East Malaysia and regional markets for expansion opportunities.
Sales from PCS outlets contributed about 40% of total group turnover in 2009.
The next level would to bring the company regional and to have more market recognition in Asean countries including Thailand, the Philippines and Brunei, with 23 outlets in Saudi Arabia and nine in the United Arab Emirates (UAE).
The export market contributed about 10% of total revenue, which was RM128.4 million in the second quarter ended Feb 25, 2010.
Most of Padini's expansion plans were funded by internally generated funds.
Sunday, May 23, 2010
Kudos to Touch & Go
11/Apr, I pass through one of the Touch & Go lane @ BESRAYA (Back from Mines Shopping Center toward KLCC), I hear beep sound, but it didn't allow me to go through, therefore I reverse and use another lane.
When I check my e-statement later, I noticed I was charge twice. I use the feedback option in the e-statement website, attention to: careline@touchngo.com.my, 3 weeks later, I received email reply from the careline, and told me they will conduct a joint investigation before approving the refund.
Last Friday, I received a cheque refund.
Following are the sequence of events:-
11/Apr : Incident.
16/Apr : Report to careline.
07/May : Reply my email.
21/May : Received my refund.
This happened to me before @ one of the tolls last year, and I was told to go to nearest office to report this. I didn't know I can do this online.
This incident, it took 1.5 months for the refund, a bit slow, but I'm satisfy with this, because I can do this online instead of drop by their office.
Related:-
Touch 'n Go top up
Touch 'n Go, e-statement
Touch but cannot GO!
Touch & Go Card expired
When I check my e-statement later, I noticed I was charge twice. I use the feedback option in the e-statement website, attention to: careline@touchngo.com.my, 3 weeks later, I received email reply from the careline, and told me they will conduct a joint investigation before approving the refund.
Last Friday, I received a cheque refund.
Following are the sequence of events:-
11/Apr : Incident.
16/Apr : Report to careline.
07/May : Reply my email.
21/May : Received my refund.
This happened to me before @ one of the tolls last year, and I was told to go to nearest office to report this. I didn't know I can do this online.
This incident, it took 1.5 months for the refund, a bit slow, but I'm satisfy with this, because I can do this online instead of drop by their office.
Related:-
Touch 'n Go top up
Touch 'n Go, e-statement
Touch but cannot GO!
Touch & Go Card expired
有些事情被騙了快20年 ... 2
12、感冒是由感冒病毒引起的，吃消炎藥可以治感冒— —感冒藥並不能清除感冒病毒，只是緩解了咳嗽、鼻塞等症狀。
13、「世界上最遙遠的距離不是生與死，而是我站在你面前，你卻不知道我愛你。」 是泰戈爾大師寫的—是 張小嫻 女士的傑作。
14、重要資料要燒錄到光碟裡面就安心了
一般人以為光碟片燒錄的資料可以放永久，其實不然，一般的光碟片頂多只有20年壽命，
特殊的高價片才可能達數十年，若無好好保存，幾年內會出問題，DVD燒錄片的壽命則更低，很差的燒錄片可能不到一年，光碟片上的染料就會稍微變質，使得資料發生錯誤。
15、解放黑奴是美國內戰的起因
美國內戰的根本原因在於南方和北方有著不同的經濟體系。當南方希望他們的農產品有個自由市場時，北方各州則要求為正在興起的本地工業產品實施保護關稅措施。於是1860到61年的冬天，南部各州退出聯邦，這不是因為他們害怕新任總統林肯會禁止蓄奴，而是因為林肯的整個政治主張都是為北方的利益效勞，即使在新開發區也是北方優先，南方各州因而擔憂，不久後他們在表決時就會完全處於劣勢了。
16、太晚吃飯並不健康，而且會使人發胖？
如果是這樣的話，地中海地區的人就慘了。沒有證據指出，吃飽飽會讓人睡不好，也沒有人可以證明晚6點以後才吃進去的熱量特別容易讓人發胖，飲食習慣很重要，才是正確的觀念。
17、愛斯基摩人傳統上是住在圓頂的冰屋裡
俗稱的愛斯基摩人比較喜歡別人以他們自己的名字「因努特人」來稱呼他們。撇開這一點不談的話，他們以前通常也是住在小屋和帳篷裡的，只有當他們在冰上打獵的期間需要過夜時，他們才會建造圓頂冰屋。
18、塑膠比木材衛生
科學實驗證明，木頭上會致病的細菌，如沙門桿菌或是大腸桿菌，很快就會死亡了，然而塑膠籃表面的細菌反而可以存活下來，甚至有一部分還會繼續繁殖！
19、夢境只會持續幾秒鐘
研究睡眠的專家相信每個夢都只維持幾秒鐘而已，即使做夢的人覺得好像做了一個長夢。
事實上，人們在打個小盹時常常都像是讀了一本長篇小說一樣。不過現在已經確定，有些夢可以有30分鐘這麼長。接近清晨時做的夢，通常會比剛入睡時做的夢來得長。此外，每個人都會做夢─即使他自己根本什麼也不記得。
20、哥倫布時代的人仍然相信地球是一塊平面
15世紀時只要受過點教育的人，或者隨便一名水手，都不再有人會認為地球是一塊平面了。哥倫布西行航向印度的計畫，一開始會到處碰壁找不到資助，完全是因為別的理由。因為當時哥倫布算出的地球圓周只有 2萬8千公里 ，然而葡萄牙國王的顧問群卻推算到 4萬公里─事實上這是相對符合實際的數據。此外，可能他的態度舉止，還有經濟贊助的要求，都讓人沒什麼好感。
21、馬站著睡覺
馬是可以站著睡，但是如果牠們感覺安全，而且地方寬裕，那麼牠們倒是很樂於躺下來睡的。養馬專家說，一群馬或是一個馬廄裡面，絕對不會所有的馬都同時躺下來睡的，永遠都會有一隻站著而且守衛著！
22、只有天才才能把肖像畫得讓觀者覺得一直被盯著看
不管是從哪個角度來看《蒙娜麗莎》，她看起來就像直視著觀者的眼睛一樣。可是這裡面並沒有什麼魔法，而且也不需要像達文西這麼天才才能畫出這種效果。基本上這只是個很簡單的把戲：將畫中人的一隻眼睛畫在一條把整幅畫垂直平分的直線上即可。
13、「世界上最遙遠的距離不是生與死，而是我站在你面前，你卻不知道我愛你。」 是泰戈爾大師寫的—是 張小嫻 女士的傑作。
14、重要資料要燒錄到光碟裡面就安心了
一般人以為光碟片燒錄的資料可以放永久，其實不然，一般的光碟片頂多只有20年壽命，
特殊的高價片才可能達數十年，若無好好保存，幾年內會出問題，DVD燒錄片的壽命則更低，很差的燒錄片可能不到一年，光碟片上的染料就會稍微變質，使得資料發生錯誤。
15、解放黑奴是美國內戰的起因
美國內戰的根本原因在於南方和北方有著不同的經濟體系。當南方希望他們的農產品有個自由市場時，北方各州則要求為正在興起的本地工業產品實施保護關稅措施。於是1860到61年的冬天，南部各州退出聯邦，這不是因為他們害怕新任總統林肯會禁止蓄奴，而是因為林肯的整個政治主張都是為北方的利益效勞，即使在新開發區也是北方優先，南方各州因而擔憂，不久後他們在表決時就會完全處於劣勢了。
16、太晚吃飯並不健康，而且會使人發胖？
如果是這樣的話，地中海地區的人就慘了。沒有證據指出，吃飽飽會讓人睡不好，也沒有人可以證明晚6點以後才吃進去的熱量特別容易讓人發胖，飲食習慣很重要，才是正確的觀念。
17、愛斯基摩人傳統上是住在圓頂的冰屋裡
俗稱的愛斯基摩人比較喜歡別人以他們自己的名字「因努特人」來稱呼他們。撇開這一點不談的話，他們以前通常也是住在小屋和帳篷裡的，只有當他們在冰上打獵的期間需要過夜時，他們才會建造圓頂冰屋。
18、塑膠比木材衛生
科學實驗證明，木頭上會致病的細菌，如沙門桿菌或是大腸桿菌，很快就會死亡了，然而塑膠籃表面的細菌反而可以存活下來，甚至有一部分還會繼續繁殖！
19、夢境只會持續幾秒鐘
研究睡眠的專家相信每個夢都只維持幾秒鐘而已，即使做夢的人覺得好像做了一個長夢。
事實上，人們在打個小盹時常常都像是讀了一本長篇小說一樣。不過現在已經確定，有些夢可以有30分鐘這麼長。接近清晨時做的夢，通常會比剛入睡時做的夢來得長。此外，每個人都會做夢─即使他自己根本什麼也不記得。
20、哥倫布時代的人仍然相信地球是一塊平面
15世紀時只要受過點教育的人，或者隨便一名水手，都不再有人會認為地球是一塊平面了。哥倫布西行航向印度的計畫，一開始會到處碰壁找不到資助，完全是因為別的理由。因為當時哥倫布算出的地球圓周只有 2萬8千公里 ，然而葡萄牙國王的顧問群卻推算到 4萬公里─事實上這是相對符合實際的數據。此外，可能他的態度舉止，還有經濟贊助的要求，都讓人沒什麼好感。
21、馬站著睡覺
馬是可以站著睡，但是如果牠們感覺安全，而且地方寬裕，那麼牠們倒是很樂於躺下來睡的。養馬專家說，一群馬或是一個馬廄裡面，絕對不會所有的馬都同時躺下來睡的，永遠都會有一隻站著而且守衛著！
22、只有天才才能把肖像畫得讓觀者覺得一直被盯著看
不管是從哪個角度來看《蒙娜麗莎》，她看起來就像直視著觀者的眼睛一樣。可是這裡面並沒有什麼魔法，而且也不需要像達文西這麼天才才能畫出這種效果。基本上這只是個很簡單的把戲：將畫中人的一隻眼睛畫在一條把整幅畫垂直平分的直線上即可。
Saturday, May 22, 2010
有些事情被騙了快20年 ... 1
1.從太空中可以看到地球的唯一建築物是長城
歐洲航天局官方網站2004年展示衛星拍攝的據稱是「中國長城」的太空照片，引起了包括中國科學家在內的國際上眾多專家的質疑。歐航局之後發佈更正，確認原照片中被誤認作長城的帶狀物其實是「一條流入密雲水庫的河流」。中國科學院進一步確認：太空中肉眼無法看到長城，只有達到一定空間分辨率的衛星遙感才能獲得長城影像。即使在通視條件極佳情況下，常人能看到 十米 大小的物體，形成平面「形覺」的極限距離約 36公里 ，遠低於一般公認為距地 100公里 為起點的太空高度。而長城寬度基本為 兩米 左右，除大的關隘城樓外，一般城台(烽火台)寬度也僅五至 六米 ，由此可以斷定，太空人在太空不可能僅憑肉眼就能看到長城。
2、幾個科學家小時候的故事
牛頓和蘋果的故事—關於牛頓和他的蘋果是伏爾泰編的，據說他是聽牛頓的侄女說的，當然牛頓的所有手稿裡沒提到那只蘋果。愛因斯坦同學和小凳子的故事——愛因斯坦小時候成績還行，就是有點偏，幹嘛非說人家小時候傻呢……華盛頓和櫻桃樹的故事——華盛頓和他老爸的櫻桃樹是某美國出版商製造出來的兒童文學。
3、瓦特看見水壺燒開產生靈感發明蒸汽機
—蒸汽機在瓦特出生前有，他只不過改良了而已。
4、菠菜富含鐵元素—
菠菜鐵元素確實比其他蔬菜高那麼一點點，關鍵是當初科學家點錯小數點。
5、兔子應該吃胡蘿蔔—養過兔子的都知道，兔子根本就不愛吃胡蘿蔔。
6、魚翅燕窩營養豐富—居然真的會有人相信鯊魚鰭和鳥口水有什麼營養價值……
燕窩除了鳥口水之外，或者還有半消化狀態的魚蝦，實際營養不如粉條和木耳！
7、懷孕不能養貓，有弓型蟲—只要去寵物醫院做次排蟲測試就成，醫生為圖省事說的，
不只是貓、豬牛羊等觸類都能感染弓型蟲。而且比例上來講比貓不知道高多少……
而且貓一生也只感染一次弓型蟲。絕大多數感染過弓型蟲的人一輩子都沒養過貓。
8、鋰電池前三次充電要滿12小時
以前的電池是需要充分充電，用來激活，現在都是鋰電池了，是不需要這樣做的。電視電影裡常見的，某「專家」拿根手指蘸掉白色粉末嘗嘗就知道是毒品—如果真這樣做…那是找死，純度越高死的越快。
9、喝酒可以禦寒，雪地遇難時要趕快拿酒來喝
喝酒是不能禦寒的。不只不能禦寒，反而還是造成失溫的元兇。酒一入肚，最先造成的是微血管擴張，體內血液大量湧入身體表層，是一段期間讓我們覺得全身溫暖（並且滿臉通紅），這只是表象，隨著血液從體內深處循環到表層，體內溫度也快速從深層流到體表散失。如果喝酒過量，大腦的中樞神經還會進一步喪失功能，不只思考力、行動力會失控，連體溫調節功能也可能停擺。失溫情況無法改善，導致最後無維持體溫而喪生。
10、天才就是99%的汗水1%的靈感—
原話是「天才就是99%的汗水1%的靈感，但這1%的靈感遠遠比99%的汗水重要」。
11、老師常用『吾生有崖，而知無崖』教育我們要好好讀書—
其實……原文是「吾生有崖，而知無崖，以有崖求無崖，殆哉矣」……完全相反。
歐洲航天局官方網站2004年展示衛星拍攝的據稱是「中國長城」的太空照片，引起了包括中國科學家在內的國際上眾多專家的質疑。歐航局之後發佈更正，確認原照片中被誤認作長城的帶狀物其實是「一條流入密雲水庫的河流」。中國科學院進一步確認：太空中肉眼無法看到長城，只有達到一定空間分辨率的衛星遙感才能獲得長城影像。即使在通視條件極佳情況下，常人能看到 十米 大小的物體，形成平面「形覺」的極限距離約 36公里 ，遠低於一般公認為距地 100公里 為起點的太空高度。而長城寬度基本為 兩米 左右，除大的關隘城樓外，一般城台(烽火台)寬度也僅五至 六米 ，由此可以斷定，太空人在太空不可能僅憑肉眼就能看到長城。
2、幾個科學家小時候的故事
牛頓和蘋果的故事—關於牛頓和他的蘋果是伏爾泰編的，據說他是聽牛頓的侄女說的，當然牛頓的所有手稿裡沒提到那只蘋果。愛因斯坦同學和小凳子的故事——愛因斯坦小時候成績還行，就是有點偏，幹嘛非說人家小時候傻呢……華盛頓和櫻桃樹的故事——華盛頓和他老爸的櫻桃樹是某美國出版商製造出來的兒童文學。
3、瓦特看見水壺燒開產生靈感發明蒸汽機
—蒸汽機在瓦特出生前有，他只不過改良了而已。
4、菠菜富含鐵元素—
菠菜鐵元素確實比其他蔬菜高那麼一點點，關鍵是當初科學家點錯小數點。
5、兔子應該吃胡蘿蔔—養過兔子的都知道，兔子根本就不愛吃胡蘿蔔。
6、魚翅燕窩營養豐富—居然真的會有人相信鯊魚鰭和鳥口水有什麼營養價值……
燕窩除了鳥口水之外，或者還有半消化狀態的魚蝦，實際營養不如粉條和木耳！
7、懷孕不能養貓，有弓型蟲—只要去寵物醫院做次排蟲測試就成，醫生為圖省事說的，
不只是貓、豬牛羊等觸類都能感染弓型蟲。而且比例上來講比貓不知道高多少……
而且貓一生也只感染一次弓型蟲。絕大多數感染過弓型蟲的人一輩子都沒養過貓。
8、鋰電池前三次充電要滿12小時
以前的電池是需要充分充電，用來激活，現在都是鋰電池了，是不需要這樣做的。電視電影裡常見的，某「專家」拿根手指蘸掉白色粉末嘗嘗就知道是毒品—如果真這樣做…那是找死，純度越高死的越快。
9、喝酒可以禦寒，雪地遇難時要趕快拿酒來喝
喝酒是不能禦寒的。不只不能禦寒，反而還是造成失溫的元兇。酒一入肚，最先造成的是微血管擴張，體內血液大量湧入身體表層，是一段期間讓我們覺得全身溫暖（並且滿臉通紅），這只是表象，隨著血液從體內深處循環到表層，體內溫度也快速從深層流到體表散失。如果喝酒過量，大腦的中樞神經還會進一步喪失功能，不只思考力、行動力會失控，連體溫調節功能也可能停擺。失溫情況無法改善，導致最後無維持體溫而喪生。
10、天才就是99%的汗水1%的靈感—
原話是「天才就是99%的汗水1%的靈感，但這1%的靈感遠遠比99%的汗水重要」。
11、老師常用『吾生有崖，而知無崖』教育我們要好好讀書—
其實……原文是「吾生有崖，而知無崖，以有崖求無崖，殆哉矣」……完全相反。
Friday, May 21, 2010
NHFATT ... May10
S & P Results Review & Earnings Outlook
NHF’s 1Q10 net profit of MYR6.4 mln was 14.4% higher YoY and sharply higher than the MYR1.3 mln reported in 4Q09 (owing to a MYR5.3 mln goodwill impairment charge in 4Q09). Although net profit for the quarter under review represented just 21.8% of our 2010 earnings estimate, we consider the results to be in line with
expectations. Revenues and margins are typically weaker during the March quarter owing to the fewer working days due to seasonal holidays.
Revenue of MYR52.8 mln was flat sequentially but up 16% YoY. This was attributed to higher demand from both domestic and export markets. Operating margin of 14.3% for the quarter was stable while finance costs and effective tax rates were within expectations.
At its recent AGM, management was reported to have announced a ramp up in 2010 capex from the MYR13 mln spent in 2009. This would include MYR8 mln for a new manufacturing plant at a site adjacent to its existing premises, and MYR12 mln for new product development. The new factory will produce plastic automotive parts and is part of its strategy for a concerted push to break into new export markets in
India, China and Asean.
We maintain our 2010 earnings estimates but trim our 2011 forecast by 5% to reflect depreciation of its new manufacturing plant and increased marketing expenses from its export push.
Recommendation & Investment Risks
We maintain our Buy recommendation but trim our 12-month target price to MYR2.60 (from MYR2.80).
Our target price is derived by ascribing a 6.5x (from 7.0x) target PER to 2011 earnings (rolled over from 2010) and adding the forecast net DPS. The target PER remains within the 6x-11x PER range of auto parts companies within our coverage. We have lowered our target multiple slightly to reflect the expected flat 2011 earnings growth.
Nonetheless, we still consider NHF to be an attractive investment given its undemanding 2010 PER of just 5.9x. Its business model enjoys relatively inelastic demand with management consistently reinvesting in the business, to improve its competitiveness and operating efficiencies. With net debt at just MYR10 mln at end-March, NHF should be able to comfortably fund its expanded capex program. NHF
is also expected to at least maintain a gross DPS of 11 sen, which generates a 4.8% yield at the current share price.
We expect the market to re-rate NHF higher when it shows progress of consistently being able to develop new export markets to expand its scale of business.
Risks to our recommendation and target price include unexpected increases in steel and plastic resin raw material prices, other operating costs and heightened competitive pressures in the marketplace.
NHF’s 1Q10 net profit of MYR6.4 mln was 14.4% higher YoY and sharply higher than the MYR1.3 mln reported in 4Q09 (owing to a MYR5.3 mln goodwill impairment charge in 4Q09). Although net profit for the quarter under review represented just 21.8% of our 2010 earnings estimate, we consider the results to be in line with
expectations. Revenues and margins are typically weaker during the March quarter owing to the fewer working days due to seasonal holidays.
Revenue of MYR52.8 mln was flat sequentially but up 16% YoY. This was attributed to higher demand from both domestic and export markets. Operating margin of 14.3% for the quarter was stable while finance costs and effective tax rates were within expectations.
At its recent AGM, management was reported to have announced a ramp up in 2010 capex from the MYR13 mln spent in 2009. This would include MYR8 mln for a new manufacturing plant at a site adjacent to its existing premises, and MYR12 mln for new product development. The new factory will produce plastic automotive parts and is part of its strategy for a concerted push to break into new export markets in
India, China and Asean.
We maintain our 2010 earnings estimates but trim our 2011 forecast by 5% to reflect depreciation of its new manufacturing plant and increased marketing expenses from its export push.
Recommendation & Investment Risks
We maintain our Buy recommendation but trim our 12-month target price to MYR2.60 (from MYR2.80).
Our target price is derived by ascribing a 6.5x (from 7.0x) target PER to 2011 earnings (rolled over from 2010) and adding the forecast net DPS. The target PER remains within the 6x-11x PER range of auto parts companies within our coverage. We have lowered our target multiple slightly to reflect the expected flat 2011 earnings growth.
Nonetheless, we still consider NHF to be an attractive investment given its undemanding 2010 PER of just 5.9x. Its business model enjoys relatively inelastic demand with management consistently reinvesting in the business, to improve its competitiveness and operating efficiencies. With net debt at just MYR10 mln at end-March, NHF should be able to comfortably fund its expanded capex program. NHF
is also expected to at least maintain a gross DPS of 11 sen, which generates a 4.8% yield at the current share price.
We expect the market to re-rate NHF higher when it shows progress of consistently being able to develop new export markets to expand its scale of business.
Risks to our recommendation and target price include unexpected increases in steel and plastic resin raw material prices, other operating costs and heightened competitive pressures in the marketplace.
EVERGRN ... May10
S & P Results Review & Earnings Outlook
• For 1Q10, Evergreen reported a 54.1% YoY increase in revenue to MYR238.7 mln and a 614.6% YoY increase in net profit to MYR33.1 mln. The financial results were above our expectations and market consensus.
• The significant YoY results improvement was mainly due to the higher average selling price of its medium-density fibreboard (MDF) products (15%-20% higher YoY) and strong recovery in sales volume from a low base in 1Q09 (which was hit by a global recession). With a high operating leverage structure, the group’s higher capacity utilization rate of around 80% in 1Q10 resulted in substantial operational
efficiency and synergistic cost savings.
• Looking forward, we expect demand for the group’s MDF and particleboard products to grow in tandem with the current economic recovery, particularly in Asia. The management has indicated healthy sales orders and is optimistic of forward demand. On the cost side, the price of rubber wood - which increased 20% YoY in 1Q10 - has
stabilized in recent months, and the price of glue is also expected to remain stable in the coming months. We remain concerned about the fast-appreciating MYR, which may negatively impact the group’s profit margin (export sales are quoted in USD).
• To reflect the better-than-expected 1Q10 results and continued MDF demand, we raise our FY10 and FY11 net profit forecasts by 11.2% and 11.5% to MYR102.0 mln and MYR100.7 mln respectively.
Recommendation & Investment Risks
• We upgrade our recommendation on Evergreen to Buy from Hold with a higher 12-month target price of MYR1.80 (previously MYR1.60), after rolling over our valuation matrix and raising our forward projections. As the largest MDF producer in Southeast Asia, Evergreen has a competitive advantage in terms of operational economies of scale and cost savings. The group has proven its ability in the past few quarters
to sustain its capacity utilization rate and gain new sales orders. Evergreen is trading at an undemanding P/E ratio of 7.5x of its 2010E earnings per share.
• We continue to use P/E valuation to derive our 12-month target price. We have ascribed a P/E of 9.0x (unchanged) to the group’s revised FY11 (previously FY10) projected earnings. Our target price is inclusive of a projected dividend of 6 sen. In determining the appropriate P/E multiple, we have considered the group’s historical P/E trading range as well as its peers’ traded P/Es.
• Risks to our recommendation and target price include: (i) lower-thanexpected
demand for MDF and particleboard, (ii) fluctuation in costs of key production inputs, in particular glue and rubber wood logs, and (iii) stronger-than-expected appreciation in MYR against USD, which will dampen the group’s profit margin.
• For 1Q10, Evergreen reported a 54.1% YoY increase in revenue to MYR238.7 mln and a 614.6% YoY increase in net profit to MYR33.1 mln. The financial results were above our expectations and market consensus.
• The significant YoY results improvement was mainly due to the higher average selling price of its medium-density fibreboard (MDF) products (15%-20% higher YoY) and strong recovery in sales volume from a low base in 1Q09 (which was hit by a global recession). With a high operating leverage structure, the group’s higher capacity utilization rate of around 80% in 1Q10 resulted in substantial operational
efficiency and synergistic cost savings.
• Looking forward, we expect demand for the group’s MDF and particleboard products to grow in tandem with the current economic recovery, particularly in Asia. The management has indicated healthy sales orders and is optimistic of forward demand. On the cost side, the price of rubber wood - which increased 20% YoY in 1Q10 - has
stabilized in recent months, and the price of glue is also expected to remain stable in the coming months. We remain concerned about the fast-appreciating MYR, which may negatively impact the group’s profit margin (export sales are quoted in USD).
• To reflect the better-than-expected 1Q10 results and continued MDF demand, we raise our FY10 and FY11 net profit forecasts by 11.2% and 11.5% to MYR102.0 mln and MYR100.7 mln respectively.
Recommendation & Investment Risks
• We upgrade our recommendation on Evergreen to Buy from Hold with a higher 12-month target price of MYR1.80 (previously MYR1.60), after rolling over our valuation matrix and raising our forward projections. As the largest MDF producer in Southeast Asia, Evergreen has a competitive advantage in terms of operational economies of scale and cost savings. The group has proven its ability in the past few quarters
to sustain its capacity utilization rate and gain new sales orders. Evergreen is trading at an undemanding P/E ratio of 7.5x of its 2010E earnings per share.
• We continue to use P/E valuation to derive our 12-month target price. We have ascribed a P/E of 9.0x (unchanged) to the group’s revised FY11 (previously FY10) projected earnings. Our target price is inclusive of a projected dividend of 6 sen. In determining the appropriate P/E multiple, we have considered the group’s historical P/E trading range as well as its peers’ traded P/Es.
• Risks to our recommendation and target price include: (i) lower-thanexpected
demand for MDF and particleboard, (ii) fluctuation in costs of key production inputs, in particular glue and rubber wood logs, and (iii) stronger-than-expected appreciation in MYR against USD, which will dampen the group’s profit margin.
Thursday, May 20, 2010
Gpacket ... May10
It had invested RM506 million in capital expenditure to date (since the start of 2008), and will be investing an additional RM500 million over the next two years (2011-2012) for which they are fully funded through the group’s cash and bank (borrowing) and vendor funding.
Puan said revenue and Ebitda trends were in line with goals to turn Ebitda positive by end-2010.
Green Packet’s 4G WiMAX division, Packet One (P1) Networks, ended the first quarter with 25% more subscribers to 175,000 from 140,000 in the previous quarter. Its network coverage has increased to 38.3% population coverage in Peninsular Malaysia.
Green Packet will invest up to RM200 million by year-end (2010) in capital expenditure targeting 45% population coverage (or 12.6 million people).
The group expects its total subscriber numbers to double in 2010 from end-2009 levels to about 280,000 subscribers with an average revenue per user (ARPU) of RM80.
In the first half of the year, P1 will concentrate on improving network performance with the aim of reducing network disruption to below 5% by 3QFY2010. In the second half, the company will ramp up its subscriber acquisition programme in conjunction with the launch of new netbook and notebook models embedded with WiMAX chipsets by Dell, Lenovo, Acer, Asus and Toshiba.
Future plans for P1 will be the rollout of services in East Malaysia by the first half of next year (2010).
Green Packet Bhd’s net loss almost doubled to RM44.8 million for the first quarter ended March 31, 2010 (1QFY10) from RM22.6 million a year ago.
However, its revenue jumped 109% to RM86.8 million from the first quarter last year. Loss per share was 6.7 sen compared with 5.6 sen previously.
On a quarterly basis, the company’s net loss narrowed by over 50% from RM94.5 million in 4QFY09 due to stronger revenue growth and lower operating costs.
Its operating losses narrowed 55% to RM43.5 million compared with the previous quarter while earnings before interest, tax, depreciation and amortisation (Ebitda) improved 47% to a loss of RM29.8 million from RM56.2 million.
Puan said revenue and Ebitda trends were in line with goals to turn Ebitda positive by end-2010.
Green Packet’s 4G WiMAX division, Packet One (P1) Networks, ended the first quarter with 25% more subscribers to 175,000 from 140,000 in the previous quarter. Its network coverage has increased to 38.3% population coverage in Peninsular Malaysia.
Green Packet will invest up to RM200 million by year-end (2010) in capital expenditure targeting 45% population coverage (or 12.6 million people).
The group expects its total subscriber numbers to double in 2010 from end-2009 levels to about 280,000 subscribers with an average revenue per user (ARPU) of RM80.
In the first half of the year, P1 will concentrate on improving network performance with the aim of reducing network disruption to below 5% by 3QFY2010. In the second half, the company will ramp up its subscriber acquisition programme in conjunction with the launch of new netbook and notebook models embedded with WiMAX chipsets by Dell, Lenovo, Acer, Asus and Toshiba.
Future plans for P1 will be the rollout of services in East Malaysia by the first half of next year (2010).
Green Packet Bhd’s net loss almost doubled to RM44.8 million for the first quarter ended March 31, 2010 (1QFY10) from RM22.6 million a year ago.
However, its revenue jumped 109% to RM86.8 million from the first quarter last year. Loss per share was 6.7 sen compared with 5.6 sen previously.
On a quarterly basis, the company’s net loss narrowed by over 50% from RM94.5 million in 4QFY09 due to stronger revenue growth and lower operating costs.
Its operating losses narrowed 55% to RM43.5 million compared with the previous quarter while earnings before interest, tax, depreciation and amortisation (Ebitda) improved 47% to a loss of RM29.8 million from RM56.2 million.
SAPRES ... May10
It will see its cash pile go up by RM49 million after its unit Sapura Auto Sdn Bhd sells a parcel of land to Sime Darby Bhd.
The cash proceeds will come in handy for Sapura Resources to acquire new business to replace its automotive business, namely the distribution of BMW cars that has not fared well so far.
For Sapura Resources, which has a market capitalisation of RM55 million, the divestment that will bring in RM49 million cash is a rather significant deal.
The company, which is also involved in the education industry, noted that the proposed land sale would enable it to unlock the value of the asset.
The proposed divestment is expected to result in a net gain of about RM23 million, equivalent to 16.5 sen per share.
For the financial year ended Jan 31, 2010, Sapura Resources posted a net profit of RM6.04 million or 4.33 sen per share compared with a net loss of RM4.54 million or 3.25 sen per share the year before.
As the land is charged to RHB Bank Bhd, SDMB will have to pay a property retention sum to the bank to redeem the property and free it of any encumbrances.
The cash proceeds will come in handy for Sapura Resources to acquire new business to replace its automotive business, namely the distribution of BMW cars that has not fared well so far.
For Sapura Resources, which has a market capitalisation of RM55 million, the divestment that will bring in RM49 million cash is a rather significant deal.
The company, which is also involved in the education industry, noted that the proposed land sale would enable it to unlock the value of the asset.
The proposed divestment is expected to result in a net gain of about RM23 million, equivalent to 16.5 sen per share.
For the financial year ended Jan 31, 2010, Sapura Resources posted a net profit of RM6.04 million or 4.33 sen per share compared with a net loss of RM4.54 million or 3.25 sen per share the year before.
As the land is charged to RHB Bank Bhd, SDMB will have to pay a property retention sum to the bank to redeem the property and free it of any encumbrances.
Wednesday, May 19, 2010
Huaan ... May10
S & P Results Review & Earnings Outlook
Hua-An’s 1Q10 net loss of MYR2.5 mln (vs. 1Q09 net loss of MYR23.6 mln) was below consensus and our expectations. 1Q10 revenue rose 20.1% YoY to MYR373.6 mln, driven by favorable prices of coke and its by-products. The average selling prices of coke,
ammonium sulphate, crude benzene, tar oil, coal slime and middlings (ore by-products) have seen YoY increases of 23.0%, 4.0%, 157.0%, 80.0%, 57.0% and 13.0% respectively.
However, the higher revenue was not sufficient to offset the higher raw material prices (coking coal), which rose approximately 29.0% YoY. As a result, Hua-An registered a gross margin of 1.5% in 1Q10, which was not enough to cover its operating expenses. Nonetheless, we note that this is an improvement from a negative gross margin of 4.3% in 1Q09. Furthermore, utilization rate of its plant in 1Q10 was healthy at 90.0% (vs. 88% in 1Q09).
Management expects steel prices to rise going forward during the summer months (when steel demand is higher) and this should benefit Hua-An. It was reported by The Edge that Hua-An may consider setting up a new coke manufacturing plant in Malaysia. Given that the plan is likely to be at its preliminary stage, we believe that it would not contribute to Hua-An’s bottomline in the near term.
We reduce our net profit forecasts for 2010 and 2011 by 30.0% and 27.9% respectively, taking into account the slower-than-expected recovery in coke prices.
Recommendation & Investment Risks
We maintain our Buy recommendation on Hua-An with a lower 12-month target price of MYR0.50 (from MYR0.55), after revising our earnings forecasts.
We continue to use a relative PER approach to arrive at our target price. The target price is based on assigning an 8.0x PER multiple (unchanged) to our estimated 2011 EPS (rolled over from 2010), in line with our target PERs for companies in the steel sector. There are no direct local peer comparisons for Hua-An, given that the group is purely involved in the coke business. As such, we have used the steel
sector as a proxy.
Given the strong operating leverage, we believe Hua-An’s results could turn around significantly, once the recovery phase for China’s steel industry sets in.
Hua-An’s balance sheet remains healthy (net cash of MYR34.5 mln as at Mar. 31, 2010) and in the longer term, we believe it is well-placed to benefit from development needs in western China.
Risks to our recommendation and target price include political and regulatory issues that could seriously affect Hua-An’s business operations in China, volatile raw material prices, and a downturn in China’s steel industry.
Hua-An’s 1Q10 net loss of MYR2.5 mln (vs. 1Q09 net loss of MYR23.6 mln) was below consensus and our expectations. 1Q10 revenue rose 20.1% YoY to MYR373.6 mln, driven by favorable prices of coke and its by-products. The average selling prices of coke,
ammonium sulphate, crude benzene, tar oil, coal slime and middlings (ore by-products) have seen YoY increases of 23.0%, 4.0%, 157.0%, 80.0%, 57.0% and 13.0% respectively.
However, the higher revenue was not sufficient to offset the higher raw material prices (coking coal), which rose approximately 29.0% YoY. As a result, Hua-An registered a gross margin of 1.5% in 1Q10, which was not enough to cover its operating expenses. Nonetheless, we note that this is an improvement from a negative gross margin of 4.3% in 1Q09. Furthermore, utilization rate of its plant in 1Q10 was healthy at 90.0% (vs. 88% in 1Q09).
Management expects steel prices to rise going forward during the summer months (when steel demand is higher) and this should benefit Hua-An. It was reported by The Edge that Hua-An may consider setting up a new coke manufacturing plant in Malaysia. Given that the plan is likely to be at its preliminary stage, we believe that it would not contribute to Hua-An’s bottomline in the near term.
We reduce our net profit forecasts for 2010 and 2011 by 30.0% and 27.9% respectively, taking into account the slower-than-expected recovery in coke prices.
Recommendation & Investment Risks
We maintain our Buy recommendation on Hua-An with a lower 12-month target price of MYR0.50 (from MYR0.55), after revising our earnings forecasts.
We continue to use a relative PER approach to arrive at our target price. The target price is based on assigning an 8.0x PER multiple (unchanged) to our estimated 2011 EPS (rolled over from 2010), in line with our target PERs for companies in the steel sector. There are no direct local peer comparisons for Hua-An, given that the group is purely involved in the coke business. As such, we have used the steel
sector as a proxy.
Given the strong operating leverage, we believe Hua-An’s results could turn around significantly, once the recovery phase for China’s steel industry sets in.
Hua-An’s balance sheet remains healthy (net cash of MYR34.5 mln as at Mar. 31, 2010) and in the longer term, we believe it is well-placed to benefit from development needs in western China.
Risks to our recommendation and target price include political and regulatory issues that could seriously affect Hua-An’s business operations in China, volatile raw material prices, and a downturn in China’s steel industry.
KPS ... May10
KPS’s unit Konsortium Abbas Sdn Bhd has obtained the court's nod to recover some RM70 million from Syarikat Bekalan Air Selangor Sdn Bhd (Syabas).
The amount of RM70.14 million as at March 31, 2010, with a 8% interest per annum, is related to short payment of electricity costs and purchase of water by Syabas.
Syabas, a 70%-owned unit of Puncak Niaga Holdings Bhd, is also required to pay costs of RM20,000 to Abbas. The remainder 30% of Syabas is jointly owned by KPS and Kumpulan Darul Ehsan Bhd. Konsortium Abbas shall consult its solicitors on the next steps to be taken in relation to recovery or execution of the judgment sum and will update the exchange accordingly.
Abbas is a wholly-owned subsidiary of Titisan Modal (M) Sdn Bhd, which in turn is 55% owned by KPS. The remainder 45% is owned by well-connected Operasi Murni Sdn Bhd.
If recovered and parked in its profit and loss account, the RM70 million would boost KPS' bottom line for the year ending Dec 31, 2010.
For FY09, it posted a net profit of RM75.19 million on the back of RM300 million in revenue. Earnings per share was 15.8 sen.
The amount of RM70.14 million as at March 31, 2010, with a 8% interest per annum, is related to short payment of electricity costs and purchase of water by Syabas.
Syabas, a 70%-owned unit of Puncak Niaga Holdings Bhd, is also required to pay costs of RM20,000 to Abbas. The remainder 30% of Syabas is jointly owned by KPS and Kumpulan Darul Ehsan Bhd. Konsortium Abbas shall consult its solicitors on the next steps to be taken in relation to recovery or execution of the judgment sum and will update the exchange accordingly.
Abbas is a wholly-owned subsidiary of Titisan Modal (M) Sdn Bhd, which in turn is 55% owned by KPS. The remainder 45% is owned by well-connected Operasi Murni Sdn Bhd.
If recovered and parked in its profit and loss account, the RM70 million would boost KPS' bottom line for the year ending Dec 31, 2010.
For FY09, it posted a net profit of RM75.19 million on the back of RM300 million in revenue. Earnings per share was 15.8 sen.
Tuesday, May 18, 2010
Latitud ... May10
Furniture maker Latitude Tree Bhd expects revenue from its Vietnam operations to grow by 10% to 20% this year, while its Malaysian business is expected to grow by 10%, on the back of slowing competition from China.
Chinese exports, especially to the United States, were slowing as China shifted its focus to catering for growing domestic demand.
Latitude Tree produces wooden bedroom, living and dining room sets for the export market. Some 90% of its products are sold in the US and the remaining 10% in Europe and the Middle East.
Its Vietnam and Malaysian operations would also benefit from negatives affecting Chinese furniture makers such as anti-dumping duties imposed on their bedroom sets in the US, import duties and rising labour costs.
In 2008, a lot of factories in China closed down which reduced capacity, but in May 2009 orders come back and worked to replenish its inventory. To date, orders are still good with around US$11 million (RM35.86 million) a month.
This was not pent-up demand returning, but merely a stock replenishing exercise.
For the first half ended Dec 31, 2009, Latitude Tree posted a cumulative net profit of RM22.57 million compared with RM6.08 million a year earlier. Its revenue rose 18.1% to RM262.03 million from RM221.9 million while earnings per share stood at 34.83 sen from 9.35 sen previously.
The company’s Vietnamese operations contributed 68.3% or RM192.45 million in total revenue, while Malaysia contributed 27.2% or RM76.63 million for the same six-month period. Its Thai operations contributed 4.6% or RM12.89 million in total revenue for the period.
Latitude Tree’s main customers in the US include JC Penney, Ashley Furniture, RiversEdge Furniture, Broyhill Furniture and Embassy International.
Chinese exports, especially to the United States, were slowing as China shifted its focus to catering for growing domestic demand.
Latitude Tree produces wooden bedroom, living and dining room sets for the export market. Some 90% of its products are sold in the US and the remaining 10% in Europe and the Middle East.
Its Vietnam and Malaysian operations would also benefit from negatives affecting Chinese furniture makers such as anti-dumping duties imposed on their bedroom sets in the US, import duties and rising labour costs.
In 2008, a lot of factories in China closed down which reduced capacity, but in May 2009 orders come back and worked to replenish its inventory. To date, orders are still good with around US$11 million (RM35.86 million) a month.
This was not pent-up demand returning, but merely a stock replenishing exercise.
For the first half ended Dec 31, 2009, Latitude Tree posted a cumulative net profit of RM22.57 million compared with RM6.08 million a year earlier. Its revenue rose 18.1% to RM262.03 million from RM221.9 million while earnings per share stood at 34.83 sen from 9.35 sen previously.
The company’s Vietnamese operations contributed 68.3% or RM192.45 million in total revenue, while Malaysia contributed 27.2% or RM76.63 million for the same six-month period. Its Thai operations contributed 4.6% or RM12.89 million in total revenue for the period.
Latitude Tree’s main customers in the US include JC Penney, Ashley Furniture, RiversEdge Furniture, Broyhill Furniture and Embassy International.
Monday, May 17, 2010
Sealink ... May10
It has secured and commenced a long term charter for an offshore support vessel to Australia, and it has also sold an offshore vessel abroad for a total of RM88 million for the two transactions.
its unit Sealink Sdn Bhd had secured a long term charter for an offshore supply vessel for a three-year period from the second quarter of 2010.
Meanwhile, Sealink Engineering and Slipway Sdn Bhd, another unit Sealink, had secured a contract for the sale of an offshore supply vessel and the vessel is expected to be delivered around the end of 2010, it said.
For the first five months of 2010, the group had secured long term charters and sale of vessels of about RM146 million.
The contracts were expected to contribute positively to its earnings for the FY ending Dec 31, 2010 and beyond.
its unit Sealink Sdn Bhd had secured a long term charter for an offshore supply vessel for a three-year period from the second quarter of 2010.
Meanwhile, Sealink Engineering and Slipway Sdn Bhd, another unit Sealink, had secured a contract for the sale of an offshore supply vessel and the vessel is expected to be delivered around the end of 2010, it said.
For the first five months of 2010, the group had secured long term charters and sale of vessels of about RM146 million.
The contracts were expected to contribute positively to its earnings for the FY ending Dec 31, 2010 and beyond.
Malton ... May10
Sources say the cabinet has agreed in principle to entrust the task of redeveloping the Sungai Besi Royal Malaysian Air Force (RMAF) base to a consortium of companies that include 1Malaysia Development Bhd (1MDB).
The other members of the consortium are Lembaga Tabung Angkatan Tentera (LTAT) and Datuk Desmond Lim of Malton Bhd, they say. It cannot be ascertained if Malton or Lim, through his private company, has a stake in the consortium.
It is learnt that the mandate of the consortium is to develop the 162-hectare site into a multi-billion-ringgit Islamic financial centre. This is in line with the government’s plans to enhance Malaysia as a regional Islamic financial centre.
The sources say the government will also ink an agreement with the Qatar government that will commit an undertaking for major investments in Malaysia. The investments will be jointly undertaken with 1MDB and may likely include the redevelopment of the Sungai Besi RMAF base.
1MDB would hold 30% interest in the consortium while Lim or Malton would hold 40%. LTAT would hold the remaining 30%.
The Sungai Besi airport, which served as the country’s first international airport from 1952 to 1965, was eyed by many parties as it is probably the last major tract of land that is located close to the city centre and has the potential for a multi-billion-ringgit redevelopment. It borders the Sungai Besi Highway at one end and Taman Seputeh and Istana Negara at the other.
The decision to develop the base into an Islamic financial centre was made by the cabinet recently. It was with the view of promoting Malaysia as an Islamic finance hub in this region. It will ultimately create a platform for all Islamic finance-related institutions to set up base.
It is learnt that the runway will be maintained so that private jets can fly in corporate big-wigs to do business in the financial district. There will also be a helipad.
The other areas inside the base such as the nine-hole golf course and existing quarters housing RMAF personnel will be redeveloped.
On April 2010, it was reported that plans to redevelop the Sungai Besi airport had resurfaced but both Defence Minister Datuk Seri Ahmad Zahid Hamidi and Federal Territories and Urban Wellbeing Minister Datuk Raja Nong Chik Raja Zainal claimed they were not aware of any such plans.
However, it is learnt that members of the golf club and the RMAF officials have been told to look for alternative sites. The cost of relocating the base and the golf course will be borne by the consortium undertaking the redevelopment of the base.
It is not clear if the project was tendered out but according to officials in the property development industry, they were not aware of any exercise by the government calling for expression of interest in the redevelopment of the base.
One of Prime Minister Datuk Seri Najib Razak’s plans to increase government revenue is to redevelop land held by government agencies. In this respect, he announced the development of the Rubber Research Institute land in Sungai Buloh by the Employees Provident Fund (EPF) last month.
He had said that this was to pave the way for the EPF to be directly involved in the economic activities of the country.
It has been reported that apart from the RMAF, the Sungai Besi base also houses the police air wing, the air unit of the Fire and Rescue Department (Bomba) and the Royal Selangor Flying Club. The RMAF units housed in the base include the 10th Squadron, which maintains the Nuri and Blackhawk helicopters for utility and other purposes. The other RMAF operations there are the Aerospace Medical Institute as well as the RMAF museum.
The other members of the consortium are Lembaga Tabung Angkatan Tentera (LTAT) and Datuk Desmond Lim of Malton Bhd, they say. It cannot be ascertained if Malton or Lim, through his private company, has a stake in the consortium.
It is learnt that the mandate of the consortium is to develop the 162-hectare site into a multi-billion-ringgit Islamic financial centre. This is in line with the government’s plans to enhance Malaysia as a regional Islamic financial centre.
The sources say the government will also ink an agreement with the Qatar government that will commit an undertaking for major investments in Malaysia. The investments will be jointly undertaken with 1MDB and may likely include the redevelopment of the Sungai Besi RMAF base.
1MDB would hold 30% interest in the consortium while Lim or Malton would hold 40%. LTAT would hold the remaining 30%.
The Sungai Besi airport, which served as the country’s first international airport from 1952 to 1965, was eyed by many parties as it is probably the last major tract of land that is located close to the city centre and has the potential for a multi-billion-ringgit redevelopment. It borders the Sungai Besi Highway at one end and Taman Seputeh and Istana Negara at the other.
The decision to develop the base into an Islamic financial centre was made by the cabinet recently. It was with the view of promoting Malaysia as an Islamic finance hub in this region. It will ultimately create a platform for all Islamic finance-related institutions to set up base.
It is learnt that the runway will be maintained so that private jets can fly in corporate big-wigs to do business in the financial district. There will also be a helipad.
The other areas inside the base such as the nine-hole golf course and existing quarters housing RMAF personnel will be redeveloped.
On April 2010, it was reported that plans to redevelop the Sungai Besi airport had resurfaced but both Defence Minister Datuk Seri Ahmad Zahid Hamidi and Federal Territories and Urban Wellbeing Minister Datuk Raja Nong Chik Raja Zainal claimed they were not aware of any such plans.
However, it is learnt that members of the golf club and the RMAF officials have been told to look for alternative sites. The cost of relocating the base and the golf course will be borne by the consortium undertaking the redevelopment of the base.
It is not clear if the project was tendered out but according to officials in the property development industry, they were not aware of any exercise by the government calling for expression of interest in the redevelopment of the base.
One of Prime Minister Datuk Seri Najib Razak’s plans to increase government revenue is to redevelop land held by government agencies. In this respect, he announced the development of the Rubber Research Institute land in Sungai Buloh by the Employees Provident Fund (EPF) last month.
He had said that this was to pave the way for the EPF to be directly involved in the economic activities of the country.
It has been reported that apart from the RMAF, the Sungai Besi base also houses the police air wing, the air unit of the Fire and Rescue Department (Bomba) and the Royal Selangor Flying Club. The RMAF units housed in the base include the 10th Squadron, which maintains the Nuri and Blackhawk helicopters for utility and other purposes. The other RMAF operations there are the Aerospace Medical Institute as well as the RMAF museum.
Sunday, May 16, 2010
Law of the Garbage Truck
One day I hopped in a taxi and we took off for the airport.
We were driving in the right lane when suddenly a black car jumped out of a parking space right in front of us.
My taxi driver slammed on his brakes, skidded, and missed the other car by just inches! The driver of the other car whipped his head around and started yelling at us.
My taxi driver just smiled and waved at the guy. And I mean, he was really friendly.
So I asked, 'Why did you just do that? This guy almost ruined your car and sent us to the hospital!'
This is when my taxi driver taught me what I now call, 'The Law of the Garbage Truck.'
He explained that many people are like garbage trucks. They run around full of garbage, full of frustration, full of anger, and full of disappointment.
As their garbage piles up, they need a place to dump it and sometimes they'll dump it on you. Don't take it personally.
Just smile, wave, wish them well, and move on. Don't take their garbage and spread it to other people at work, at home, or on the streets.
The bottom line is that successful people do not let garbage trucks take over their day.
Life's too short to wake up in the morning with regrets,
So ... Love the people who treat you right.
Pray for the ones who don't.
Life is ten percent what you make it and ninety percent how you take it!
Have a blessed, garbage-free day!
We were driving in the right lane when suddenly a black car jumped out of a parking space right in front of us.
My taxi driver slammed on his brakes, skidded, and missed the other car by just inches! The driver of the other car whipped his head around and started yelling at us.
My taxi driver just smiled and waved at the guy. And I mean, he was really friendly.
So I asked, 'Why did you just do that? This guy almost ruined your car and sent us to the hospital!'
This is when my taxi driver taught me what I now call, 'The Law of the Garbage Truck.'
He explained that many people are like garbage trucks. They run around full of garbage, full of frustration, full of anger, and full of disappointment.
As their garbage piles up, they need a place to dump it and sometimes they'll dump it on you. Don't take it personally.
Just smile, wave, wish them well, and move on. Don't take their garbage and spread it to other people at work, at home, or on the streets.
The bottom line is that successful people do not let garbage trucks take over their day.
Life's too short to wake up in the morning with regrets,
So ... Love the people who treat you right.
Pray for the ones who don't.
Life is ten percent what you make it and ninety percent how you take it!
Have a blessed, garbage-free day!
Saturday, May 15, 2010
Friday, May 14, 2010
HEKTAR ... May10
S & P Results Review & Earnings Outlook
Hektar REIT’s 1Q10 results were within our expectations. Hektar REIT posted a 10% YoY increase in net profit to MYR10.0 mln on the back of a 5.7% YoY rise in turnover to MYR23.0 mln. The rise in revenue was due mainly to higher occupancy of 97.3% in 1Q10 vs. 95.9% in 1Q09.
Overall, on a quarterly basis, portfolio average occupancy rate has improved to 97.3% in 1Q10 from 95.8% in 4Q09. Wetex Parade in Muar, Johor posted a higher occupancy rate of 91.2% vs. 90.1% in 4Q09 while Subang Parade’s occupancy rate was unchanged at 100%. Mahkota Parade in Melaka also saw a rise in occupancy rate to
96.8% from 93.6% in 4Q09.
However, Hektar REIT posted an average 7% decline in rental reversions, due mainly to a 16% negative rental reversion in Mahkota Parade, which was undergoing a refurbishment exercise that has just been completed in April 2010. Wetex Parade posted a positive rental reversion of 6% while Subang Parade has flat rental reversion.
Hektar REIT declared a first interim 1Q10 dividend of 2.5 sen vs 2.4sen in 1Q09.
Recommendation & Investment Risks
We maintain both our Buy recommendation and 12-month target price of MYR1.40. Hektar REIT’s unit price is well supported by its high dividend yield.
Our 12-month target price of MYR1.40 was derived by applying a 9% (unchanged) discount to our DDM valuation. The primary assumptions behind our DDM valuation are a cost of equity of 8.30% - 9.50% and DPU growth of 0%-3%.
At the current level, Hektar REIT offers an attractive dividend yield of 8.3%. Moreover, suburban neighborhood retail properties normally enjoy more stable occupancy and rental income than other types of commercial properties such as offices and urban retail properties.
Risks to our recommendation and target price are: (i) a sharp and prolonged economic slowdown in Malaysia; and (ii) an unexpected rise in interest rates, which will have a negative impact on the occupancy, rental income and market value of retail properties.
Hektar REIT’s 1Q10 results were within our expectations. Hektar REIT posted a 10% YoY increase in net profit to MYR10.0 mln on the back of a 5.7% YoY rise in turnover to MYR23.0 mln. The rise in revenue was due mainly to higher occupancy of 97.3% in 1Q10 vs. 95.9% in 1Q09.
Overall, on a quarterly basis, portfolio average occupancy rate has improved to 97.3% in 1Q10 from 95.8% in 4Q09. Wetex Parade in Muar, Johor posted a higher occupancy rate of 91.2% vs. 90.1% in 4Q09 while Subang Parade’s occupancy rate was unchanged at 100%. Mahkota Parade in Melaka also saw a rise in occupancy rate to
96.8% from 93.6% in 4Q09.
However, Hektar REIT posted an average 7% decline in rental reversions, due mainly to a 16% negative rental reversion in Mahkota Parade, which was undergoing a refurbishment exercise that has just been completed in April 2010. Wetex Parade posted a positive rental reversion of 6% while Subang Parade has flat rental reversion.
Hektar REIT declared a first interim 1Q10 dividend of 2.5 sen vs 2.4sen in 1Q09.
Recommendation & Investment Risks
We maintain both our Buy recommendation and 12-month target price of MYR1.40. Hektar REIT’s unit price is well supported by its high dividend yield.
Our 12-month target price of MYR1.40 was derived by applying a 9% (unchanged) discount to our DDM valuation. The primary assumptions behind our DDM valuation are a cost of equity of 8.30% - 9.50% and DPU growth of 0%-3%.
At the current level, Hektar REIT offers an attractive dividend yield of 8.3%. Moreover, suburban neighborhood retail properties normally enjoy more stable occupancy and rental income than other types of commercial properties such as offices and urban retail properties.
Risks to our recommendation and target price are: (i) a sharp and prolonged economic slowdown in Malaysia; and (ii) an unexpected rise in interest rates, which will have a negative impact on the occupancy, rental income and market value of retail properties.
SIME ... May10
Sources say Sime Darby, the lead contractor of the Bakun Hydroelectric Dam project, has put in a claim of rm700 million in relation to the project.
This is in addition to an earlier claim of rm708 million which has been mostly disbursed to the company.
If the claim is approved, the total cost of the civil works portion of the Bakun dam project will rise to rm3.2 billion from the original RM1.8 billion. This does not include the electrical and mechanical works and other related works such as land clearing prior to the flooding of the dam.
In total, it is learnt that the cost of building the dam is aboit RM8 billion. Sources say Sime is also requesting that the government drop all associated costs incurred pursuant to the delayed delivery of the project to its owners.
The owner of Bakun is Sarawak Hidro Sdn Bhd, a unit of the Ministry of Finance. It was mandated to manage the construction of the dam after the government took over the project from Ekan in the late 1990s.
Because of the delay in delivery, Sarawak Hidro has the rights to claim up to 20% of the original project cost from the contractors. The project was awarded to the Malaysia China Hydro JC (MCHJV) for RM1.8 billion in Oct 2002. Thus maximum amount Sarawak Hidro can claim from the MCH JV, which is led by Sime Darby is up to RM360 million.
Because of the delay in the civil works, the mechanical and engineering contractors have put in claims to Sarawak Hidro.
Under the terms of the contract, Sarawak Hidro has the option to the impose on the works contractor le by Sime, a back to back claim made by the mechanical and electrical contractors.
However, Sime, is seeking to have the back to back claim dropped because the delays were beyond its control. The new completion date that Sime is seeking to hand over the dam is Dec 2010.
Although Sime is only a member of the MCH JV, it has a lead role by virtue of its 35.7% stake in it. The MCH JC is between a group of Malaysian construction companies led by Sime and China Hydro Construction Co. The Chinese company has a 30% stake in the JV, while the remaining 70% is held by Malaysian companies.
Sime Darby’s subsidiary Sime Engineering is a 51% shareholder of the Malaysian consortium. Some of the other members are WCT Engineering, AZRB and MTD Capital.
The business of Sime Engineering was largely housed in Sime’s utilities and energy division, which has interests in oil and gas fabrication projects as well as power plants and is responsible for the Bakun project as well.
Since Jan 2010, the division has come under scrutiny because of huge losses in its oil and gas project in Qatar .
Sources say the losses could be as high as Rm1 billion. This is on the basis that all Sime’s claims are thrown out by the government. But because Sime is claiming RM700 million from the government and wants all claims against the company dropped, the losses could be contained within rm300 million.
But the problem Sime will face is justification as Sarawak Hidro officials have contended that there is no basis for the additional RM700 million claim.
Meanwhile Sime Darby Bhd will disclose findings of a taskforce set up to investigate its energy and utilities operations when it announces its third- quarter earnings on May 27 2010. The taskforce has been looking at all aspects of its energy and utilities division, including its engineering works in Qatar and civil works on Malaysia ’s Bakun hydro-electric dam.
It is understood the Government has agreed to reimburse Sime Darby for around RM700mil, leaving Sime Darby with around RM1bil to be dealt with, by some estimates.
Sime is also conducting engineering, procurement, fabrication and installation works at the Bull Hanine and Maydan Mahzan fields for Qatar Petroleum. A provision of more than RM100 million may be required on this project, it was reported on Feb. 20 2010.
Sime Darby’s energy and utilities division recorded an operating loss of RM110mil in the second half of its financial year ended Dec 31, 2009, compared with a profit of RM56.3mil previously. But within this division, its oil and gas and engineering divisions’ losses alone totalled RM201mil. However, Sime Darby said this loss was due to overruns from another project, namely its RM2.1bil Maersk Oil Qatar (MOQ) project.
Sime Darby recognised a project loss for MOQ amounting to RM210mil (including the impact of foreign exchange losses). As a result, the oil and gas segment recorded losses of RM201mil in 1HFY2010.
Assuming the cost overruns have taken place in the Bakun project, the group will still need to deal with a significant amount of provisioning or expensing, which could seriously dent its profits for FY2010.
To recap, Sime Engineering, a unit of Sime Darby, was awarded the civil works for the Bakun project in September 2002 at a fixed lump-sum price of RM1.8bil. It has been reported that Sarawak Hidro Sdn Bhd has approved a variation order for RM700mil for the Bakun project. Sime Darby did not confirm or deny this. Sarawak Hidro is a wholly-owned subsidiary of the Ministry of Finance Inc Malaysia and entrusted to develop and manage the Bakun project since May 2000.
This is in addition to an earlier claim of rm708 million which has been mostly disbursed to the company.
If the claim is approved, the total cost of the civil works portion of the Bakun dam project will rise to rm3.2 billion from the original RM1.8 billion. This does not include the electrical and mechanical works and other related works such as land clearing prior to the flooding of the dam.
In total, it is learnt that the cost of building the dam is aboit RM8 billion. Sources say Sime is also requesting that the government drop all associated costs incurred pursuant to the delayed delivery of the project to its owners.
The owner of Bakun is Sarawak Hidro Sdn Bhd, a unit of the Ministry of Finance. It was mandated to manage the construction of the dam after the government took over the project from Ekan in the late 1990s.
Because of the delay in delivery, Sarawak Hidro has the rights to claim up to 20% of the original project cost from the contractors. The project was awarded to the Malaysia China Hydro JC (MCHJV) for RM1.8 billion in Oct 2002. Thus maximum amount Sarawak Hidro can claim from the MCH JV, which is led by Sime Darby is up to RM360 million.
Because of the delay in the civil works, the mechanical and engineering contractors have put in claims to Sarawak Hidro.
Under the terms of the contract, Sarawak Hidro has the option to the impose on the works contractor le by Sime, a back to back claim made by the mechanical and electrical contractors.
However, Sime, is seeking to have the back to back claim dropped because the delays were beyond its control. The new completion date that Sime is seeking to hand over the dam is Dec 2010.
Although Sime is only a member of the MCH JV, it has a lead role by virtue of its 35.7% stake in it. The MCH JC is between a group of Malaysian construction companies led by Sime and China Hydro Construction Co. The Chinese company has a 30% stake in the JV, while the remaining 70% is held by Malaysian companies.
Sime Darby’s subsidiary Sime Engineering is a 51% shareholder of the Malaysian consortium. Some of the other members are WCT Engineering, AZRB and MTD Capital.
The business of Sime Engineering was largely housed in Sime’s utilities and energy division, which has interests in oil and gas fabrication projects as well as power plants and is responsible for the Bakun project as well.
Since Jan 2010, the division has come under scrutiny because of huge losses in its oil and gas project in Qatar .
Sources say the losses could be as high as Rm1 billion. This is on the basis that all Sime’s claims are thrown out by the government. But because Sime is claiming RM700 million from the government and wants all claims against the company dropped, the losses could be contained within rm300 million.
But the problem Sime will face is justification as Sarawak Hidro officials have contended that there is no basis for the additional RM700 million claim.
Meanwhile Sime Darby Bhd will disclose findings of a taskforce set up to investigate its energy and utilities operations when it announces its third- quarter earnings on May 27 2010. The taskforce has been looking at all aspects of its energy and utilities division, including its engineering works in Qatar and civil works on Malaysia ’s Bakun hydro-electric dam.
It is understood the Government has agreed to reimburse Sime Darby for around RM700mil, leaving Sime Darby with around RM1bil to be dealt with, by some estimates.
Sime is also conducting engineering, procurement, fabrication and installation works at the Bull Hanine and Maydan Mahzan fields for Qatar Petroleum. A provision of more than RM100 million may be required on this project, it was reported on Feb. 20 2010.
Sime Darby’s energy and utilities division recorded an operating loss of RM110mil in the second half of its financial year ended Dec 31, 2009, compared with a profit of RM56.3mil previously. But within this division, its oil and gas and engineering divisions’ losses alone totalled RM201mil. However, Sime Darby said this loss was due to overruns from another project, namely its RM2.1bil Maersk Oil Qatar (MOQ) project.
Sime Darby recognised a project loss for MOQ amounting to RM210mil (including the impact of foreign exchange losses). As a result, the oil and gas segment recorded losses of RM201mil in 1HFY2010.
Assuming the cost overruns have taken place in the Bakun project, the group will still need to deal with a significant amount of provisioning or expensing, which could seriously dent its profits for FY2010.
To recap, Sime Engineering, a unit of Sime Darby, was awarded the civil works for the Bakun project in September 2002 at a fixed lump-sum price of RM1.8bil. It has been reported that Sarawak Hidro Sdn Bhd has approved a variation order for RM700mil for the Bakun project. Sime Darby did not confirm or deny this. Sarawak Hidro is a wholly-owned subsidiary of the Ministry of Finance Inc Malaysia and entrusted to develop and manage the Bakun project since May 2000.
Thursday, May 13, 2010
Faber ... May10
S & P Results Review & Earnings Outlook
Despite Faber’s 1Q10 net profit of MYR14.4 mln (+97.3% YoY) just reaching 12.6% of our previous 2010 forecast, it was broadly in line as we expect earnings to improve in upcoming quarters when new property sales are recognized. Revenue of MYR183.9 mln (+30.6% YoY) was also broadly in line with expectations.
Faber’s lower-than-expected earnings were mainly due to a wider LBIT of MYR1.7 mln (vs. LBIT of MYR0.3 mln in 1Q09) incurred by its property development unit as most of its projects are completed. The performance of its facilities management division (FMS), however, was above expectations with EBIT rising 63% YoY to MYR29.2 mln on
higher variation orders and new contracts in Abu Dhabi.
Despite the lower-than-expected 1Q10 earnings, Faber’s earnings should improve in the upcoming quarters with the renewal of a MYR65.5 mln FMS contract for low cost houses in Abu Dhabi. Domestic FMS earnings will also be boosted by services for three new government hospitals. Earnings from its property development division
are expected to recover over the next two years with the launch of MYR500 mln worth of new high-end properties in the Klang Valley. Sales of its newly launched bungalows and semi detached units in Taman Danau Desa, Kuala Lumpur are already 60% sold and should contribute to the group’s earnings in the upcoming quarters.
After tweaking some of our assumptions, we lower our 2010 net profit estimate to MYR111.0 mln (from MYR114.2 mln), but raise our 2011 net profit forecast to MYR136.1 mln (from MYR135.3 mln).
Recommendation & Investment Risks
We maintain our Buy recommendation on Faber and lift our 12-month target price to MYR2.60 (from MYR2.10).
Our target price remains derived from a sum of parts valuation. We ascribe target PER multiples of 7x (unchanged) and 6x (from 5x) to its 2011 (rolled over from 2010) FMS and property earnings respectively. The target PER multiple of its FMS unit is similar to the implied PER paid in the acquisition of the remaining 30% stake in Faber Medi-Serve. Meanwhile, we raise the target PER multiple of its property
division for the improving earnings outlook that also remains within the 5x-7x peer average range for small developers in our coverage. Our target price also includes an unchanged net DPS estimate of 4.5 sen.
We continue to like Faber for the improving outlook of its FMS operations that has been strengthened by its overseas contracts. We believe more FMS contracts in the Middle East and India could be forthcoming as it has build up a strong reputation. Furthermore, its property development division is set for a faster recovery after it
registered strong take up rates for its recent launches. Its prospective 2010 and 2011 PERs of 7.4x and 6.0x also remains attractive relative to the earnings growth of 34.2% and 22.6% on offer respectively.
Risks to our recommendation and target price include: (i) rising cost affecting the margins of its FMS operations, (ii) inability to renew its concession agreement to provide FMS to government hospitals and contracts in Abu Dhabi, and (iii) delays in its property launches.
Despite Faber’s 1Q10 net profit of MYR14.4 mln (+97.3% YoY) just reaching 12.6% of our previous 2010 forecast, it was broadly in line as we expect earnings to improve in upcoming quarters when new property sales are recognized. Revenue of MYR183.9 mln (+30.6% YoY) was also broadly in line with expectations.
Faber’s lower-than-expected earnings were mainly due to a wider LBIT of MYR1.7 mln (vs. LBIT of MYR0.3 mln in 1Q09) incurred by its property development unit as most of its projects are completed. The performance of its facilities management division (FMS), however, was above expectations with EBIT rising 63% YoY to MYR29.2 mln on
higher variation orders and new contracts in Abu Dhabi.
Despite the lower-than-expected 1Q10 earnings, Faber’s earnings should improve in the upcoming quarters with the renewal of a MYR65.5 mln FMS contract for low cost houses in Abu Dhabi. Domestic FMS earnings will also be boosted by services for three new government hospitals. Earnings from its property development division
are expected to recover over the next two years with the launch of MYR500 mln worth of new high-end properties in the Klang Valley. Sales of its newly launched bungalows and semi detached units in Taman Danau Desa, Kuala Lumpur are already 60% sold and should contribute to the group’s earnings in the upcoming quarters.
After tweaking some of our assumptions, we lower our 2010 net profit estimate to MYR111.0 mln (from MYR114.2 mln), but raise our 2011 net profit forecast to MYR136.1 mln (from MYR135.3 mln).
Recommendation & Investment Risks
We maintain our Buy recommendation on Faber and lift our 12-month target price to MYR2.60 (from MYR2.10).
Our target price remains derived from a sum of parts valuation. We ascribe target PER multiples of 7x (unchanged) and 6x (from 5x) to its 2011 (rolled over from 2010) FMS and property earnings respectively. The target PER multiple of its FMS unit is similar to the implied PER paid in the acquisition of the remaining 30% stake in Faber Medi-Serve. Meanwhile, we raise the target PER multiple of its property
division for the improving earnings outlook that also remains within the 5x-7x peer average range for small developers in our coverage. Our target price also includes an unchanged net DPS estimate of 4.5 sen.
We continue to like Faber for the improving outlook of its FMS operations that has been strengthened by its overseas contracts. We believe more FMS contracts in the Middle East and India could be forthcoming as it has build up a strong reputation. Furthermore, its property development division is set for a faster recovery after it
registered strong take up rates for its recent launches. Its prospective 2010 and 2011 PERs of 7.4x and 6.0x also remains attractive relative to the earnings growth of 34.2% and 22.6% on offer respectively.
Risks to our recommendation and target price include: (i) rising cost affecting the margins of its FMS operations, (ii) inability to renew its concession agreement to provide FMS to government hospitals and contracts in Abu Dhabi, and (iii) delays in its property launches.
SEEHUP ... May10
Saudi national Shaik Khalid H A Zainy Motwakil has ceased to be a substantial shareholder in transportation and logistics services provider See Hup Consolidated Bhd after disposing of 200,000 shares on March 13 2009. Shaik Khalid was left with 1.86 million See Hup shares or a 4.63% stake in the company.
Shaik Khalid first emerged as a substantial shareholder in See Hup on Nov 20, 2007. He acquired a 5% direct stake comprising two million shares in the Penang-based company on Nov 7 2007. Since then, he had raised his stake in the firm to 5.17% before the disposal on March 13 2009.
Among See Hup's major substantial shareholders, Hean Brothers Holdings Sdn Bhd stood as the largest with a 20.45% stake while other substantial shareholders included Lee Hean Guan with 11.32% and LHG Holdings Sdn Bhd with 7.56%. See Hup closed untraded at 95 sen yesterday.
Moving forward, it expects its fourth quarter to be less favourable on a longer downtime arising from festive holidays and prolonged shutdown in certain manufacturing industries in the wake of anticipated challenging economic conditions.
Financial Results …
See Hup's net profit fell to RM574,000 for its third quarter ended Dec 31, 2008 (3Q08), from RM878,000 previously while revenue declined to RM27.3 million from RM28 million.
The company attributed the dip in revenue to lower contribution from the transportation and logistics sector, which declined by RM6.4 million. Due to that, operating profit was lower at RM1.1 million against RM2.4 million in the preceding quarter.
For the nine months to Dec 31, 2008, basic earnings per share fell to 6.69 sen from 7.7 sen.
Shaik Khalid first emerged as a substantial shareholder in See Hup on Nov 20, 2007. He acquired a 5% direct stake comprising two million shares in the Penang-based company on Nov 7 2007. Since then, he had raised his stake in the firm to 5.17% before the disposal on March 13 2009.
Among See Hup's major substantial shareholders, Hean Brothers Holdings Sdn Bhd stood as the largest with a 20.45% stake while other substantial shareholders included Lee Hean Guan with 11.32% and LHG Holdings Sdn Bhd with 7.56%. See Hup closed untraded at 95 sen yesterday.
Moving forward, it expects its fourth quarter to be less favourable on a longer downtime arising from festive holidays and prolonged shutdown in certain manufacturing industries in the wake of anticipated challenging economic conditions.
Financial Results …
See Hup's net profit fell to RM574,000 for its third quarter ended Dec 31, 2008 (3Q08), from RM878,000 previously while revenue declined to RM27.3 million from RM28 million.
The company attributed the dip in revenue to lower contribution from the transportation and logistics sector, which declined by RM6.4 million. Due to that, operating profit was lower at RM1.1 million against RM2.4 million in the preceding quarter.
For the nine months to Dec 31, 2008, basic earnings per share fell to 6.69 sen from 7.7 sen.
Wednesday, May 12, 2010
BJtoto/BJCorp ... May10
The long-speculated legalisation of sports betting could be a reality before the 2010 FIFA World Cup begins on June 11 2010.
Deputy Finance Minister Datuk Dr Awang Adek Hussein said the government was studying the possibility of issuing sports betting licences to prevent illegal betting and gaming activities from becoming rampant in the country. He said if the licences were not issued to the applicants, such illegal activities would persist and grow out of control.
“There is some interest for us to examine (giving out licences), otherwise there will be lots of bookies betting on the World Cup. So, whether this is necessarily a good thing for the government or whether we should try to regulate it so that we know how much is received from illegal betting, the government is looking into that. He said if licences were issued, the government could regulate the betting, while the returns could be used for sports development purposes”.
While admitting that there were several quarters who had applied for the licence, Awang Adek, however, refused to divulge details until the government made its decision.
If sports betting is legalised, the frontrunner would be Tan Sri Vincent Tan’s privately owned company Ascot Sports Sdn Bhd. In June 2003, during the administration of former prime minister Tun Dr Mahathir Mohamad, Ascot was issued a 20-year concession to operate a chain of sports betting outlets. But when Tun Abdullah Ahmad Badawi became prime minister later that year, he reportedly scrapped the proposal, saying that the government would not legalise football betting in the country.
However, it is learnt that should the government decide to legalise sports betting, Ascot has the first right of refusal.
Since April 2010, speculation has been rife that the government was considering legalising sports betting. Berjaya Corporation Bhd and Berjaya Sports Toto Bhd (BToto) are the prime beneficiaries should the government legalise sports betting.
If the government granted the individual licence to Tan, as it did in 2003, he could inject it into BToto, thereby leveraging on the brand name and reach of its 680 outlets.
Moreover, BToto already has the existing terminals in place in its outlets, so infrastructure would not be the main concern. However, this is on the assumption that the government would allow sports betting to be conducted through NFO (numbers forecast operator) outlets, which remains uncertain at this juncture.
However, if Tan chooses to form a partnership with BToto, the prospects from the deal would be a lot less exciting. BToto would only get royalty payments, in exchange for letting Tan use its network and terminals.
Deputy Finance Minister Datuk Dr Awang Adek Hussein said the government was studying the possibility of issuing sports betting licences to prevent illegal betting and gaming activities from becoming rampant in the country. He said if the licences were not issued to the applicants, such illegal activities would persist and grow out of control.
“There is some interest for us to examine (giving out licences), otherwise there will be lots of bookies betting on the World Cup. So, whether this is necessarily a good thing for the government or whether we should try to regulate it so that we know how much is received from illegal betting, the government is looking into that. He said if licences were issued, the government could regulate the betting, while the returns could be used for sports development purposes”.
While admitting that there were several quarters who had applied for the licence, Awang Adek, however, refused to divulge details until the government made its decision.
If sports betting is legalised, the frontrunner would be Tan Sri Vincent Tan’s privately owned company Ascot Sports Sdn Bhd. In June 2003, during the administration of former prime minister Tun Dr Mahathir Mohamad, Ascot was issued a 20-year concession to operate a chain of sports betting outlets. But when Tun Abdullah Ahmad Badawi became prime minister later that year, he reportedly scrapped the proposal, saying that the government would not legalise football betting in the country.
However, it is learnt that should the government decide to legalise sports betting, Ascot has the first right of refusal.
Since April 2010, speculation has been rife that the government was considering legalising sports betting. Berjaya Corporation Bhd and Berjaya Sports Toto Bhd (BToto) are the prime beneficiaries should the government legalise sports betting.
If the government granted the individual licence to Tan, as it did in 2003, he could inject it into BToto, thereby leveraging on the brand name and reach of its 680 outlets.
Moreover, BToto already has the existing terminals in place in its outlets, so infrastructure would not be the main concern. However, this is on the assumption that the government would allow sports betting to be conducted through NFO (numbers forecast operator) outlets, which remains uncertain at this juncture.
However, if Tan chooses to form a partnership with BToto, the prospects from the deal would be a lot less exciting. BToto would only get royalty payments, in exchange for letting Tan use its network and terminals.
Jotech ... May10
It has acquired a 40% stake in British Virgin Islands-based Rockhill Resources Ltd (RHR) for US$2 million (RM7.4 million), a deal which marks its diversification into coal mining.
Jotech, which fabricates metal stamped parts and components for electrical and electronic appliances, had entered into a conditional sale and purchase agreement with Concord Alliance (HK) Ltd to acquire the stake in RHR.
The proposed acquisition is expected to diversify the future income stream of the Jotech Group of companies to include exploration and extraction of coal mining.
With the guaranteed profit as part of the terms of the proposed acquisition, the group would be assured of future earnings contribution from RHR.
Based on Jotech's intended 40% stake in RHR, Jotech is expected to fork out another US$400,000 to finance RHR's capital expenditure, and working capital needs. The proposed acquisition is expected to be completed in the second quarter of 2009.
Jotech, which fabricates metal stamped parts and components for electrical and electronic appliances, had entered into a conditional sale and purchase agreement with Concord Alliance (HK) Ltd to acquire the stake in RHR.
The proposed acquisition is expected to diversify the future income stream of the Jotech Group of companies to include exploration and extraction of coal mining.
With the guaranteed profit as part of the terms of the proposed acquisition, the group would be assured of future earnings contribution from RHR.
Based on Jotech's intended 40% stake in RHR, Jotech is expected to fork out another US$400,000 to finance RHR's capital expenditure, and working capital needs. The proposed acquisition is expected to be completed in the second quarter of 2009.
Tuesday, May 11, 2010
Fajar ... May10
It is a small construction company with big ambitions, especially so with the emergence of Datuk Low Keng Kok, a substantial shareholder and MD cum CEO of the company. Low was formerly the joint MD of Road Builder Holdings Bhd, which was a large and respectable construction company prior to its takeover by IJM Corp Bhd. He owns 6.4% of FajaBaru while the chairman Datuk Kuan Peng Ching and Big Victory Holdings own 10.2% and 15.5% respectively.
FajaBaru specialises in design and build, which enables it to achieve relatively high margins for its contracts. The company currently (march 2009) has three projects with a total contract value of RM619 million. The contracts comprise LCCT Phase 2, double track project and Tampin Hospital.
The proposed construction of the new LCCT terminal costing around RM2 billion could provide more job opportunities for FajaBaru since it was involved in Phase 1 and is currently undertaking the construction of Phase 2.
The double track contract is for the stretch between Seremban and Gemas. FajaBaru has also clinched a contract to build the Tampin Hospital in Johor.
As at end of 2008, FajaBaru was sitting on cash reserves of RM80 million, which is close to its market capitalization of Rm100 million. It intends to use the cash for possible M&A opportunities and as working capital should it succeed in clinching larger projects.
With the imminent announcement of the second stimulus package, FajaBaru, with a strong balance sheet and experienced management, is well placed to bid for new contracts.
The company enjoys relatively good margins due to its design and build concept, which allows it flexibility in cutting costs. Furthermore, a reduction in construction material costs after the downturn has also improved margins.
It should be noted that FY2008 profits were boosted by a one off recovery of bad debts amounting to RM6 million and a profit guarantee payment of RM2.8 million arising from vendors under a profit guarantee agreement. The company is expected to receive an installment of rm931545 per quarter until Aug 20, 2011.
Financial Results … For six months ended Dec 2008, it posted a net profit of RM6.7 million.
FajaBaru specialises in design and build, which enables it to achieve relatively high margins for its contracts. The company currently (march 2009) has three projects with a total contract value of RM619 million. The contracts comprise LCCT Phase 2, double track project and Tampin Hospital.
The proposed construction of the new LCCT terminal costing around RM2 billion could provide more job opportunities for FajaBaru since it was involved in Phase 1 and is currently undertaking the construction of Phase 2.
The double track contract is for the stretch between Seremban and Gemas. FajaBaru has also clinched a contract to build the Tampin Hospital in Johor.
As at end of 2008, FajaBaru was sitting on cash reserves of RM80 million, which is close to its market capitalization of Rm100 million. It intends to use the cash for possible M&A opportunities and as working capital should it succeed in clinching larger projects.
With the imminent announcement of the second stimulus package, FajaBaru, with a strong balance sheet and experienced management, is well placed to bid for new contracts.
The company enjoys relatively good margins due to its design and build concept, which allows it flexibility in cutting costs. Furthermore, a reduction in construction material costs after the downturn has also improved margins.
It should be noted that FY2008 profits were boosted by a one off recovery of bad debts amounting to RM6 million and a profit guarantee payment of RM2.8 million arising from vendors under a profit guarantee agreement. The company is expected to receive an installment of rm931545 per quarter until Aug 20, 2011.
Financial Results … For six months ended Dec 2008, it posted a net profit of RM6.7 million.
HingYap ... May10
Apparel maker and retailer Hing Yiap Knitting Industries Bhd is prepared to absorb losses during the current economic downturn to promote the growth of its lesser known brands.
It wants to grow its Theobroma Chocolate Lounge and Unionbay in this recession. It may need to suffer losses for a couple of years.
The group has five apparel brands under its belt, namely Antioni, Bontton, B.U.M. Equipment, Diesel and Unionbay.
The group had plans to expand its children segment and move into fashion accessories and bags as these had high growth opportunities.
Majority of its customers are Malays and they are the key driver of the retail sector. Despite a softening in the general demand, its market is still consistent.
The company also invested into a chocolate cafe business last July 2008. There are currently four Theobroma Chocolate Lounge outlets in 1 Utama, Pavilion KL, Bangsar Village Shopping Centre in the Klang Valley and the low-cost carrier terminal (LCCT).
It does not just see itself as a textile company anymore. They want to expand into the total lifestyle of young people. And there is a niche market in this as the chocolate lounge is a new concept here and it is a good component of a lifestyle company.
It hoped to see its food and beverages (F&B) arm contribute about 15% to the group’s revenue in five years’ time.
Financial Results … For its second quarter ended Dec 31, 2008 Hing Yiap’s net profit fell 34.6% to RM2.9 million from RM4.4 million the previous year as the Hari Raya seasonal buying was early last year and most of the sales were captured in the first quarter. Revenue for the quarter dropped to RM34.3 million from RM42 million.
However, it recorded higher net profit and revenue for its six months with net profit increasing 23.4% to RM9.2 million and revenue rising 4.2% to RM81.9 million.
It wants to grow its Theobroma Chocolate Lounge and Unionbay in this recession. It may need to suffer losses for a couple of years.
The group has five apparel brands under its belt, namely Antioni, Bontton, B.U.M. Equipment, Diesel and Unionbay.
The group had plans to expand its children segment and move into fashion accessories and bags as these had high growth opportunities.
Majority of its customers are Malays and they are the key driver of the retail sector. Despite a softening in the general demand, its market is still consistent.
The company also invested into a chocolate cafe business last July 2008. There are currently four Theobroma Chocolate Lounge outlets in 1 Utama, Pavilion KL, Bangsar Village Shopping Centre in the Klang Valley and the low-cost carrier terminal (LCCT).
It does not just see itself as a textile company anymore. They want to expand into the total lifestyle of young people. And there is a niche market in this as the chocolate lounge is a new concept here and it is a good component of a lifestyle company.
It hoped to see its food and beverages (F&B) arm contribute about 15% to the group’s revenue in five years’ time.
Financial Results … For its second quarter ended Dec 31, 2008 Hing Yiap’s net profit fell 34.6% to RM2.9 million from RM4.4 million the previous year as the Hari Raya seasonal buying was early last year and most of the sales were captured in the first quarter. Revenue for the quarter dropped to RM34.3 million from RM42 million.
However, it recorded higher net profit and revenue for its six months with net profit increasing 23.4% to RM9.2 million and revenue rising 4.2% to RM81.9 million.
Monday, May 10, 2010
Maxis ... May10
Maxis Bhd’s move to become an “integrated player” are raising concerns that it could entail significant capital expenditures. For now, there is a lack of clarity on the matter.
With Maxis still in its early stages of this new strategy, it is understood that the telco is evaluating various options of the new investments to be made.
The options being mulled by Maxis include whether to adopt a build or lease model and whether to finance the new investments through capital or operational expenditures (capex or opex).
More clarity, Maxis officials say, will come when the company announces its first quarter results for the year ending Dec 31, 2010, which will be announced on May 31 2010.
The question of how Maxis funds this push to widen its services is very relevant to Maxis investors because it could potentially eat into the stock’s most attractive feature – its dividend-paying ability.
Maxis, which already enjoys a relatively high valuation, not only when compared with other telco’s in the country, but also regionally and internationally, churns out a significant amount of cash flows and enjoys healthy EBITDA (earnings before interest, tax, depreciation and amortisation) margins.
The question is, will the new strategy impact this negatively?
Dividends are typically paid from free cash flows, which are essentially the company’s EBITDA minus capex. Hence, if capex goes up, then Maxis’ dividends could be impacted.
And if Maxis chooses to increase its opex, that too could impact its dividend paying ability. Opex is essentially what you have to spend in order to keep your business running and is deducted from revenues. That means it impacts the profits of the company.
Maxis’ chief financial officer Rossana Rashidi had said that the company’s capex is expected to taper off post-2010 because by then, lumpy expenditures such as rolling out its mobile broadband footprint, in terms of coverage and capacity, would have been done.
But will this still hold, considering that Maxis is now saying it wants to morph into a fully-integrated player, one that is able to serve all the needs of its customers, especially those from the higher segment of the market?
It is certainly a concern. How much will the new investments cost?
On the other hand, we are confident that Maxis will not get carried away and that is based on the track record of this company. Still, more clarity is needed.
As it stands now, Maxis is highly rated. At its current share price of RM5.30 a piece, Maxis is valued at an enterprise value to EBITDA (EV/EBITDA) multiple for 2010 of more than 9 times. This is higher than regional peers, which average under between 6 and 7 times. Some Indian and Chinese telco’s trade at EV/EBITDA’s of around 4 times. On a price earnings (PE) multiple basis, too, Maxis’ valuation is high: at more than 19 times its FY2009 earnings, compared to its peers. DiGi.Com trades at 16 times its 2009 earnings while SingTel’s PE is only 12.4 times 2009 earnings.
However Credit Suisse is bullish on Maxis. A report dated Feb 25 wrote that it continued to rate Maxis as an “outperforming” stock, and gave it a discounted cash flow-based target price of RM6.60.
The major shareholders of Maxis have indicated that they expected dividends to amount to at least 50 sen a year from FY2010 onward. As this message becomes increasingly clear to the market, it expects Maxis to be rerated accordingly. Its Y2010-2011 projected net dividend yield of 9.1% for Maxis is the highest among the Malaysian stocks under Credit Suisse’s coverage.
The bullish report went on to state that in a blue sky scenario (a term used to describe a situation when everything works out nicely). Maxis could be valued at RM8.20.
A similar bullish view is shared by CLSA.
It believed management can reward shareholders with yields of between 9% and 10% per annum. While Maxis has been spending aggressively on capex (which doubled on a quarter-on-quarter basis to RM596m in Q4FY2009, compared with peers who had spent in the range of RM100mil to RM200mil in the same quarter), Maxis’ investments will provide further momentum for its growth in 2010.
But the question remains as to how Maxis’ new capex (or opex) plans, in light of its push to do more for customers in its new “integrated play” model, would impact the view on investors have on Maxis.
Any indications that capex or opex needs would be higher than what the market expects could irk investors who are drawn to Maxis mainly because of its free cash flows, which in turn give it an enourmous dividend-paying ability.
Going by Maxis’ track record, attractive divideneds are likely to remain intact.
With Maxis still in its early stages of this new strategy, it is understood that the telco is evaluating various options of the new investments to be made.
The options being mulled by Maxis include whether to adopt a build or lease model and whether to finance the new investments through capital or operational expenditures (capex or opex).
More clarity, Maxis officials say, will come when the company announces its first quarter results for the year ending Dec 31, 2010, which will be announced on May 31 2010.
The question of how Maxis funds this push to widen its services is very relevant to Maxis investors because it could potentially eat into the stock’s most attractive feature – its dividend-paying ability.
Maxis, which already enjoys a relatively high valuation, not only when compared with other telco’s in the country, but also regionally and internationally, churns out a significant amount of cash flows and enjoys healthy EBITDA (earnings before interest, tax, depreciation and amortisation) margins.
The question is, will the new strategy impact this negatively?
Dividends are typically paid from free cash flows, which are essentially the company’s EBITDA minus capex. Hence, if capex goes up, then Maxis’ dividends could be impacted.
And if Maxis chooses to increase its opex, that too could impact its dividend paying ability. Opex is essentially what you have to spend in order to keep your business running and is deducted from revenues. That means it impacts the profits of the company.
Maxis’ chief financial officer Rossana Rashidi had said that the company’s capex is expected to taper off post-2010 because by then, lumpy expenditures such as rolling out its mobile broadband footprint, in terms of coverage and capacity, would have been done.
But will this still hold, considering that Maxis is now saying it wants to morph into a fully-integrated player, one that is able to serve all the needs of its customers, especially those from the higher segment of the market?
It is certainly a concern. How much will the new investments cost?
On the other hand, we are confident that Maxis will not get carried away and that is based on the track record of this company. Still, more clarity is needed.
As it stands now, Maxis is highly rated. At its current share price of RM5.30 a piece, Maxis is valued at an enterprise value to EBITDA (EV/EBITDA) multiple for 2010 of more than 9 times. This is higher than regional peers, which average under between 6 and 7 times. Some Indian and Chinese telco’s trade at EV/EBITDA’s of around 4 times. On a price earnings (PE) multiple basis, too, Maxis’ valuation is high: at more than 19 times its FY2009 earnings, compared to its peers. DiGi.Com trades at 16 times its 2009 earnings while SingTel’s PE is only 12.4 times 2009 earnings.
However Credit Suisse is bullish on Maxis. A report dated Feb 25 wrote that it continued to rate Maxis as an “outperforming” stock, and gave it a discounted cash flow-based target price of RM6.60.
The major shareholders of Maxis have indicated that they expected dividends to amount to at least 50 sen a year from FY2010 onward. As this message becomes increasingly clear to the market, it expects Maxis to be rerated accordingly. Its Y2010-2011 projected net dividend yield of 9.1% for Maxis is the highest among the Malaysian stocks under Credit Suisse’s coverage.
The bullish report went on to state that in a blue sky scenario (a term used to describe a situation when everything works out nicely). Maxis could be valued at RM8.20.
A similar bullish view is shared by CLSA.
It believed management can reward shareholders with yields of between 9% and 10% per annum. While Maxis has been spending aggressively on capex (which doubled on a quarter-on-quarter basis to RM596m in Q4FY2009, compared with peers who had spent in the range of RM100mil to RM200mil in the same quarter), Maxis’ investments will provide further momentum for its growth in 2010.
But the question remains as to how Maxis’ new capex (or opex) plans, in light of its push to do more for customers in its new “integrated play” model, would impact the view on investors have on Maxis.
Any indications that capex or opex needs would be higher than what the market expects could irk investors who are drawn to Maxis mainly because of its free cash flows, which in turn give it an enourmous dividend-paying ability.
Going by Maxis’ track record, attractive divideneds are likely to remain intact.
Sunday, May 9, 2010
美國最暢銷書-選狼還是選獅子?
不管是經營企業或人際關係，本篇文章都能發人深省。 美國最暢銷書-選狼還是選獅子?
上帝把兩群羊放在草原上，一群在南，一群在北。
上帝還給羊群找了兩種天敵，一種是獅子，一種是狼。
上帝對羊群說：「如果你們要狼，就給一隻，任它隨意咬你們。
如果你們要獅子，就給兩頭，你們可以在兩頭獅子中任選一頭，還可以隨時更換。」
這道題的問題就是：如果你也在羊群中，你是選狼還是選獅子？很容易做出選擇吧？
好吧! 記住你的選擇，接著往下看。
南邊羊想，獅子比狼兇猛得多，還是要狼吧! 於是,它們就要了一隻狼。
北邊羊想，獅子雖然比狼兇猛得多，但我們有選擇權，還是要獅子吧!
於是，它們就要了兩頭獅子。
狼進了南邊羊群後，就開始吃羊。狼身體小，食量也小，一隻羊夠它吃幾天了。
這樣羊群幾天才被追殺一次。
北邊羊挑選了一頭獅子，另一頭則留在上帝那裡。
這頭獅子進入羊群後，也開始吃羊。獅子不但比狼兇猛，而且食量驚人，每天都要吃一隻羊。
這樣羊群就天天都要被追殺，驚恐萬狀，羊群趕緊請上帝換一頭獅子。
不料，上帝保管的那頭獅子一直沒有吃東西，飢餓難耐，撲進羊群，比前面那頭獅子咬得更瘋狂。
羊群一天到晚只是逃命，連草都快吃不成了。
南邊羊群慶幸自己選對了天敵，又嘲笑北邊的羊群沒有眼光。
北邊羊群非常後悔，向上帝大倒苦水，要求更換天敵，改要一隻狼。
上帝說：「天敵一旦確定，就不能更改，必須世代相隨，你們唯一的權利是在兩頭獅子中選擇。」
北邊羊群只好把兩頭獅子不斷更換。可兩頭獅子同樣凶殘，換哪一頭都比南邊羊群悲慘得多，它們索性不換了，讓一頭獅子吃得膘肥體壯，另一頭獅子則餓得精瘦。
眼看那頭瘦獅子快要餓死了，羊群才請上帝換一頭。
這頭瘦獅子經過長時間的飢餓後，慢慢悟出了一個道理：自己雖然兇猛異常，一百隻羊都不是對手，可是自己的命運是操縱在羊群手裡的。羊群隨時可以把自己送回上帝那裡，讓自己飽受飢餓的煎熬，甚至有可能餓死。
想通這個道理後，瘦獅子就對羊群特別客氣，只吃死羊和病羊，凡是健康的羊它都不吃了。
羊群喜出望外，有幾隻小羊提議乾脆固定要瘦獅子，不要那頭肥獅子了。
一隻老公羊提醒說：「瘦獅子是怕我們送它回上帝那裡挨餓，才對我們這麼好。
萬一肥獅子餓死了，我們沒有了選擇的餘地，瘦獅子很快就會恢復凶殘的本性。」
羊群覺得老羊說得有理，為了不讓另一頭獅子餓死，它們趕緊把它換回來。
原先肥壯的那頭獅子，已餓得剩下皮包骨頭了，並且也懂得了自己的命運是操縱在羊群手裡的道理。為了能活命，它竟百般討好起羊群來。而那頭被送交給上帝的獅子，則難過得流下了眼淚。
北邊羊群在經歷了重重磨難後，終於過上了自由自在的生活。
南邊羊的處境卻越來越悲慘了，那隻狼因為沒有競爭對手，羊群又無法更換它，它就胡作非為，每天都要咬死幾十隻羊，這隻狼早已不吃羊肉了，它只喝羊的血,還不准羊叫，那隻叫就立刻咬死那隻。南邊的羊群只能在心中哀歎：「早知道這樣，還不如要兩頭獅子。」
這是一道非常簡單的選擇題，據我多次親自嘗試的經驗，如果問歐美的朋友，大多數人都會選獅子，但是如果拿來問我們自己華人，大多數人都會選狼（包括我自己）。
領悟到了嗎？ 握有決定權的才有生機，否則只有任人宰割的份兒了…！
潛能密碼:當你覺得你的快樂是別人帶給你的，那麼，你將永遠不快樂，因為，你必須時時仰望著別人的臉色與情緒來決定你的喜怒哀樂。
當你覺得你是所有快樂的滿足的來源，那麼，你就是那個時時處於快樂天堂領悟的人，你決定你自己的一切。
上帝把兩群羊放在草原上，一群在南，一群在北。
上帝還給羊群找了兩種天敵，一種是獅子，一種是狼。
上帝對羊群說：「如果你們要狼，就給一隻，任它隨意咬你們。
如果你們要獅子，就給兩頭，你們可以在兩頭獅子中任選一頭，還可以隨時更換。」
這道題的問題就是：如果你也在羊群中，你是選狼還是選獅子？很容易做出選擇吧？
好吧! 記住你的選擇，接著往下看。
南邊羊想，獅子比狼兇猛得多，還是要狼吧! 於是,它們就要了一隻狼。
北邊羊想，獅子雖然比狼兇猛得多，但我們有選擇權，還是要獅子吧!
於是，它們就要了兩頭獅子。
狼進了南邊羊群後，就開始吃羊。狼身體小，食量也小，一隻羊夠它吃幾天了。
這樣羊群幾天才被追殺一次。
北邊羊挑選了一頭獅子，另一頭則留在上帝那裡。
這頭獅子進入羊群後，也開始吃羊。獅子不但比狼兇猛，而且食量驚人，每天都要吃一隻羊。
這樣羊群就天天都要被追殺，驚恐萬狀，羊群趕緊請上帝換一頭獅子。
不料，上帝保管的那頭獅子一直沒有吃東西，飢餓難耐，撲進羊群，比前面那頭獅子咬得更瘋狂。
羊群一天到晚只是逃命，連草都快吃不成了。
南邊羊群慶幸自己選對了天敵，又嘲笑北邊的羊群沒有眼光。
北邊羊群非常後悔，向上帝大倒苦水，要求更換天敵，改要一隻狼。
上帝說：「天敵一旦確定，就不能更改，必須世代相隨，你們唯一的權利是在兩頭獅子中選擇。」
北邊羊群只好把兩頭獅子不斷更換。可兩頭獅子同樣凶殘，換哪一頭都比南邊羊群悲慘得多，它們索性不換了，讓一頭獅子吃得膘肥體壯，另一頭獅子則餓得精瘦。
眼看那頭瘦獅子快要餓死了，羊群才請上帝換一頭。
這頭瘦獅子經過長時間的飢餓後，慢慢悟出了一個道理：自己雖然兇猛異常，一百隻羊都不是對手，可是自己的命運是操縱在羊群手裡的。羊群隨時可以把自己送回上帝那裡，讓自己飽受飢餓的煎熬，甚至有可能餓死。
想通這個道理後，瘦獅子就對羊群特別客氣，只吃死羊和病羊，凡是健康的羊它都不吃了。
羊群喜出望外，有幾隻小羊提議乾脆固定要瘦獅子，不要那頭肥獅子了。
一隻老公羊提醒說：「瘦獅子是怕我們送它回上帝那裡挨餓，才對我們這麼好。
萬一肥獅子餓死了，我們沒有了選擇的餘地，瘦獅子很快就會恢復凶殘的本性。」
羊群覺得老羊說得有理，為了不讓另一頭獅子餓死，它們趕緊把它換回來。
原先肥壯的那頭獅子，已餓得剩下皮包骨頭了，並且也懂得了自己的命運是操縱在羊群手裡的道理。為了能活命，它竟百般討好起羊群來。而那頭被送交給上帝的獅子，則難過得流下了眼淚。
北邊羊群在經歷了重重磨難後，終於過上了自由自在的生活。
南邊羊的處境卻越來越悲慘了，那隻狼因為沒有競爭對手，羊群又無法更換它，它就胡作非為，每天都要咬死幾十隻羊，這隻狼早已不吃羊肉了，它只喝羊的血,還不准羊叫，那隻叫就立刻咬死那隻。南邊的羊群只能在心中哀歎：「早知道這樣，還不如要兩頭獅子。」
這是一道非常簡單的選擇題，據我多次親自嘗試的經驗，如果問歐美的朋友，大多數人都會選獅子，但是如果拿來問我們自己華人，大多數人都會選狼（包括我自己）。
領悟到了嗎？ 握有決定權的才有生機，否則只有任人宰割的份兒了…！
潛能密碼:當你覺得你的快樂是別人帶給你的，那麼，你將永遠不快樂，因為，你必須時時仰望著別人的臉色與情緒來決定你的喜怒哀樂。
當你覺得你是所有快樂的滿足的來源，那麼，你就是那個時時處於快樂天堂領悟的人，你決定你自己的一切。
Saturday, May 8, 2010
生活小窍门 ... 6
51.蜡烛冷冻二十四小时后，再插到生日蛋糕上，点燃时不会流下烛油。
52.白色衣裤洗后易泛黄，可取一盆清水，滴上二三滴蓝墨水，将洗过的衣裤在浸泡一刻钟，不必拧干，就放在太阳下晒，即可洁白干净。
53.过多食用生葱蒜会刺激口腔肠胃，不利健康，最好加一点醋再食用。
54.及时补充水分但应少喝果汁、可乐、雪碧、汽水等饮料，含有较多的糖精和电解质，喝多了会对肠胃产生不良刺激，影响消化和食欲。因此夏天应多喝白开水或淡盐（糖）水。
55.每天早晨用豆腐摩擦面部几分钟，坚持一个月，面部会变得很滋润。
56.空调室内温差不宜超过五度，即使天气再热，空调室内温度也不宜到24度以下。
57.加酶洗衣粉剂放在温水中需要较长的分解时间才能使洗衣效果更佳。
58.夏天，人的活动时间变长，出汗多，耗能过大，应适当多吃鸡、鸭、瘦肉、鱼类、蛋类等营养食品，以满足人体的代谢需要。
59.头痛时把苹果磨成泥状涂在纱布上，贴在头痛处，症状可减轻。
60.皮包上有污渍，可以用棉花蘸风油精擦拭。
52.白色衣裤洗后易泛黄，可取一盆清水，滴上二三滴蓝墨水，将洗过的衣裤在浸泡一刻钟，不必拧干，就放在太阳下晒，即可洁白干净。
53.过多食用生葱蒜会刺激口腔肠胃，不利健康，最好加一点醋再食用。
54.及时补充水分但应少喝果汁、可乐、雪碧、汽水等饮料，含有较多的糖精和电解质，喝多了会对肠胃产生不良刺激，影响消化和食欲。因此夏天应多喝白开水或淡盐（糖）水。
55.每天早晨用豆腐摩擦面部几分钟，坚持一个月，面部会变得很滋润。
56.空调室内温差不宜超过五度，即使天气再热，空调室内温度也不宜到24度以下。
57.加酶洗衣粉剂放在温水中需要较长的分解时间才能使洗衣效果更佳。
58.夏天，人的活动时间变长，出汗多，耗能过大，应适当多吃鸡、鸭、瘦肉、鱼类、蛋类等营养食品，以满足人体的代谢需要。
59.头痛时把苹果磨成泥状涂在纱布上，贴在头痛处，症状可减轻。
60.皮包上有污渍，可以用棉花蘸风油精擦拭。
Friday, May 7, 2010
BJCORP ... May10
Recent Developments
BCorp has proposed a non-renounceable restricted offer for sale (ROS) of up to 2.46 bln Cosway Corporation Ltd (00288, HKD1.12, Not Ranked) ICULS on the basis of one ICULS for every two BCorp shares held at 9.0 sen per ICULS. It has also proposed a special single tier dividend of 4.5 sen per share, where shareholders may utilize their special dividend entitlements to exchange for the ICULS or retain the entitlement as dividend. The special dividend, however, is conditional upon the regulatory approval for the proposed ROS.
We view the proposals positively as it will allow BCorp shareholders to directly own Cosway shares without having to invest additional cash, as the ICULS are in the money and can be immediately converted into new Cosway shares with no further cost. The ICULS also carries a coupon rate of 1.0% per year for the first two years and 3.5% per year for the remaining eight years until its maturity in 2019.
Earnings Outlook
BCorp’s earnings will continue to be underpinned by 50.7%-owned Berjaya Sports Toto’s (BST MK, MYR4.49, Hold) resilient and defensive gaming income. Cosway’s earnings are expected to grow strongly on its expansion plans into new markets within the next 12 months, while its property, financial services and food business should post stronger earnings growth, in line with the recovering economy.
Our FY10 and FY11 earnings estimates are unchanged as the above proposals will not have any impact on its earnings.
S & P Recommendation & Investment Risks
We maintain both our Strong Buy recommendation and 12-month target price of MYR2.20.
Our target price is derived from an unchanged 20% discount to BCorp’s FD RNAV of MYR2.54 (from MYR2.80), plus the implied value of the Cosway ICULS to be sold to its shareholders (previously net DPS estimate of 2.5 sen). The discount is applied for its holding company status that falls within the 20%-30% discount range applied
to conglomerates in our coverage. We derive our FD RNAV by valuing its landbank at market prices, while its BST and Cosway stakes are marked to market. Cosway’s ICULS are also marked to market at a lower effective stake of 59% (from 82.5%) after imputing the maximum take-up rate of 2.46 bln ICULS. Its waste disposal and motor divisions are valued at 10x PER (unchanged) their respective forecast FY10
earnings and P/Bs of 1.5x (unchanged) to its financial services units.
Our Strong Buy call is maintained for BCorp’s improving earnings outlook that is backed by BST and Cosway earnings. We also believe there is further share price upside from plans to unlock the value of its assets, which includes the IPOs of its retail and food units in FY11; its bid for a gaming venture in Vietnam could also boost its forward earnings. Its prospective FY10 and FY11 P/Bs of 1.1x respectively are also undemanding vs. the 1.6x-1.8x valuation range of its peers.
Risks to our recommendation and target price include: (i) a slower recovery in regional economies affecting its property and consumer product units, and (ii) weaker lottery ticket sales, regulatory changes and higher prize payout affecting its gaming division.
BCorp has proposed a non-renounceable restricted offer for sale (ROS) of up to 2.46 bln Cosway Corporation Ltd (00288, HKD1.12, Not Ranked) ICULS on the basis of one ICULS for every two BCorp shares held at 9.0 sen per ICULS. It has also proposed a special single tier dividend of 4.5 sen per share, where shareholders may utilize their special dividend entitlements to exchange for the ICULS or retain the entitlement as dividend. The special dividend, however, is conditional upon the regulatory approval for the proposed ROS.
We view the proposals positively as it will allow BCorp shareholders to directly own Cosway shares without having to invest additional cash, as the ICULS are in the money and can be immediately converted into new Cosway shares with no further cost. The ICULS also carries a coupon rate of 1.0% per year for the first two years and 3.5% per year for the remaining eight years until its maturity in 2019.
Earnings Outlook
BCorp’s earnings will continue to be underpinned by 50.7%-owned Berjaya Sports Toto’s (BST MK, MYR4.49, Hold) resilient and defensive gaming income. Cosway’s earnings are expected to grow strongly on its expansion plans into new markets within the next 12 months, while its property, financial services and food business should post stronger earnings growth, in line with the recovering economy.
Our FY10 and FY11 earnings estimates are unchanged as the above proposals will not have any impact on its earnings.
S & P Recommendation & Investment Risks
We maintain both our Strong Buy recommendation and 12-month target price of MYR2.20.
Our target price is derived from an unchanged 20% discount to BCorp’s FD RNAV of MYR2.54 (from MYR2.80), plus the implied value of the Cosway ICULS to be sold to its shareholders (previously net DPS estimate of 2.5 sen). The discount is applied for its holding company status that falls within the 20%-30% discount range applied
to conglomerates in our coverage. We derive our FD RNAV by valuing its landbank at market prices, while its BST and Cosway stakes are marked to market. Cosway’s ICULS are also marked to market at a lower effective stake of 59% (from 82.5%) after imputing the maximum take-up rate of 2.46 bln ICULS. Its waste disposal and motor divisions are valued at 10x PER (unchanged) their respective forecast FY10
earnings and P/Bs of 1.5x (unchanged) to its financial services units.
Our Strong Buy call is maintained for BCorp’s improving earnings outlook that is backed by BST and Cosway earnings. We also believe there is further share price upside from plans to unlock the value of its assets, which includes the IPOs of its retail and food units in FY11; its bid for a gaming venture in Vietnam could also boost its forward earnings. Its prospective FY10 and FY11 P/Bs of 1.1x respectively are also undemanding vs. the 1.6x-1.8x valuation range of its peers.
Risks to our recommendation and target price include: (i) a slower recovery in regional economies affecting its property and consumer product units, and (ii) weaker lottery ticket sales, regulatory changes and higher prize payout affecting its gaming division.
Genting ... May10
Genting Malaysia Bhd (GenM) has invested another US$48 million (RM152.6 million) in MGM Mirage’s 4.25% convertible senior notes (2010/2015) as part of the latter’s recent US$1.15 billion placement.
This is on top of GenM’s earlier US$18 million investment in MGM’s 9% 10-year senior secured notes (2010/2020) in March this year, and US$25 million in 10.375% notes due May 2014 and US$25 million 11.125% notes due November 2017 acquired in May 2009.
This brings GenM’s total investment in MGM to US$116 million (RM371 million). Back in May 2009, Genting Bhd (which owns 48.26% in GenM in latest available filings) had also invested US$100 million for a 3.2% equity stake in MGM and US$50 million in similar senior secured notes as GenM.
The latest notes proceeds will be used to repay a portion of MGM’s revolving indebtedness under its senior credit facility. The notes are general unsecured senior obligations of MGM, guaranteed by substantially all of its subsidiaries.
Interest is payable semi-annually, and the notes are convertible anytime at an initial conversion price of US$18.58 (27.5% premium to MGM’s share price).
Expecting minimal impact to GenM’s earnings and RM5.2 billion cash reserve. The notes’ coupon does seem rather unattractive (almost similar to Malaysian Government Securities 10-year yield of 4%).
Genting group was reported to be interested in investing in the US, and this could be a pre-cursor to bigger things to come. MGM had indicated in March 2010 that it would be selling its 50% stake in Borgata Hotel Casino & Spa in Atlantic City as part of a settlement with the New Jersey Division of Gaming Enforcement (the New Jersey casino controller had expressed concern over MGM’s ties with Pansy Ho, its joint-venture partner in Macau).
There is the possible upside from opportunistic mergers and acquisitions with RM5.2 billion cash reserve.
This is on top of GenM’s earlier US$18 million investment in MGM’s 9% 10-year senior secured notes (2010/2020) in March this year, and US$25 million in 10.375% notes due May 2014 and US$25 million 11.125% notes due November 2017 acquired in May 2009.
This brings GenM’s total investment in MGM to US$116 million (RM371 million). Back in May 2009, Genting Bhd (which owns 48.26% in GenM in latest available filings) had also invested US$100 million for a 3.2% equity stake in MGM and US$50 million in similar senior secured notes as GenM.
The latest notes proceeds will be used to repay a portion of MGM’s revolving indebtedness under its senior credit facility. The notes are general unsecured senior obligations of MGM, guaranteed by substantially all of its subsidiaries.
Interest is payable semi-annually, and the notes are convertible anytime at an initial conversion price of US$18.58 (27.5% premium to MGM’s share price).
Expecting minimal impact to GenM’s earnings and RM5.2 billion cash reserve. The notes’ coupon does seem rather unattractive (almost similar to Malaysian Government Securities 10-year yield of 4%).
Genting group was reported to be interested in investing in the US, and this could be a pre-cursor to bigger things to come. MGM had indicated in March 2010 that it would be selling its 50% stake in Borgata Hotel Casino & Spa in Atlantic City as part of a settlement with the New Jersey Division of Gaming Enforcement (the New Jersey casino controller had expressed concern over MGM’s ties with Pansy Ho, its joint-venture partner in Macau).
There is the possible upside from opportunistic mergers and acquisitions with RM5.2 billion cash reserve.
Thursday, May 6, 2010
EPMB ... MAY10
EPMB’s FY09 revenue and earnings came in 5.5% and 9% above our estimates and consensus. The Group’s revenue and earnings for the quarter increased by 13% and
38% on the higher volume of OEM parts produced as orders picked up. Noting that
the localization programme of Perodua would increase its average revenue per
Perodua car to RM1033 (from RM484); we see EPMB potentially exhibiting strong top
and bottom-line numbers, for which we expect a growth of 20% and 72.2%
respectively in FY10 thanks to the significant reduction in its interest expense and
the economies of scale achieved in its production line. Despite results being higher,
we maintain our earnings with our TP retained at RM0.59. Maintain BUY.
A great quarter. EPMB’s revenue and earnings for the full year were lower by 3% and
15% on the back of the lower volume of OEM parts supplied to both Proton and Perodua.
Nonetheless, over the 4Q, as reflected from the higher demand of both Proton and
Perodua cars sold, its revenue and earnings for the quarter jumped 13% and 38% q-o-q
respectively (y-o-y: 6% and 8%). The improvement in its earnings was highly expected due to the better economies of scale achieved as EBIT margins notched up higher from 4.6% (in Q3) to 5%.
Still leaking. Its water segment remained disappointing as revenue dropped by 33% for
the full year with losses fortunately cushioned to the same level in FY08 after shifting operations to Malaysia last year. We expect orders for its smart water meter to pick-up to at levels achieved back in FY07 on the back of higher government spending for the replacement of water meters; hence, we expect the division to post marginal profit in FY10.
Improved balance sheet. Comparably, EPMB’s balance sheet has shown an improvement
since last year. Interest coverage in FY09 has increased slightly to 1.5x from 1.3x with net gearing reduced from 120% to 98.3% benefiting from the improved operating efficiency and financial leverage. We expect interest expense to reduce by 33% as its debt levels are pared down further on its improved top-line. This will eventually see its net gearing reduced to 75%.
Maintain BUY. EPMB’s essentially supplies OEM parts to automakers which are predominantly platform related, thus ensuring continuity over the long run. We like EPMB for its growing revenue base and earnings turnaround on the back of its improved balance sheet. Despite results being slightly above expectations, we continue to retain our earnings at this juncture with our TP unchanged. Our derived TP of RM0.59 is premised at 8x PE on its FY10 EPS. EPMB is considered relatively liquid to its bigger auto peers, Proton and UMW given its free float of 50%, despite the smaller market cap. In view of its strapped cash and high gearing, we do not expect any dividends over the next 3 years.
38% on the higher volume of OEM parts produced as orders picked up. Noting that
the localization programme of Perodua would increase its average revenue per
Perodua car to RM1033 (from RM484); we see EPMB potentially exhibiting strong top
and bottom-line numbers, for which we expect a growth of 20% and 72.2%
respectively in FY10 thanks to the significant reduction in its interest expense and
the economies of scale achieved in its production line. Despite results being higher,
we maintain our earnings with our TP retained at RM0.59. Maintain BUY.
A great quarter. EPMB’s revenue and earnings for the full year were lower by 3% and
15% on the back of the lower volume of OEM parts supplied to both Proton and Perodua.
Nonetheless, over the 4Q, as reflected from the higher demand of both Proton and
Perodua cars sold, its revenue and earnings for the quarter jumped 13% and 38% q-o-q
respectively (y-o-y: 6% and 8%). The improvement in its earnings was highly expected due to the better economies of scale achieved as EBIT margins notched up higher from 4.6% (in Q3) to 5%.
Still leaking. Its water segment remained disappointing as revenue dropped by 33% for
the full year with losses fortunately cushioned to the same level in FY08 after shifting operations to Malaysia last year. We expect orders for its smart water meter to pick-up to at levels achieved back in FY07 on the back of higher government spending for the replacement of water meters; hence, we expect the division to post marginal profit in FY10.
Improved balance sheet. Comparably, EPMB’s balance sheet has shown an improvement
since last year. Interest coverage in FY09 has increased slightly to 1.5x from 1.3x with net gearing reduced from 120% to 98.3% benefiting from the improved operating efficiency and financial leverage. We expect interest expense to reduce by 33% as its debt levels are pared down further on its improved top-line. This will eventually see its net gearing reduced to 75%.
Maintain BUY. EPMB’s essentially supplies OEM parts to automakers which are predominantly platform related, thus ensuring continuity over the long run. We like EPMB for its growing revenue base and earnings turnaround on the back of its improved balance sheet. Despite results being slightly above expectations, we continue to retain our earnings at this juncture with our TP unchanged. Our derived TP of RM0.59 is premised at 8x PE on its FY10 EPS. EPMB is considered relatively liquid to its bigger auto peers, Proton and UMW given its free float of 50%, despite the smaller market cap. In view of its strapped cash and high gearing, we do not expect any dividends over the next 3 years.
SSTEEL ... May10
S & P Results Review & Earnings Outlook
• Southern Steel’s 1Q10 results came in within our expectations, with net profit of MYR34.5 mln reaching 24% of our 2010 estimate.
• 1Q10 revenue surged 60% YoY on the back of higher demand and average selling price (ASP) as global economies recover from the financial crisis. The improvement is reflected in an operating profit of MYR41.5 mln from an operating loss of MYR71 mln in 1Q09.
• Revenue growth was more subdued on a QoQ basis, partly due to seasonal factors, when 1Q10 revenue grew 6.8% QoQ. We believe the growth can be attributed mainly to the higher ASP, as global steel prices rose 10%-15% QoQ, as a result of rising raw material costs. Higher raw material prices (+27% QoQ) negatively affected the
group’s margin, which fell to 6.6% (from 11.6% in 4Q09) while operating profit fell by 39% QoQ.
• We believe 2Q10 earnings may improve further as steel manufacturers continue to raise ASP to account for higher raw material prices. We have seen stronger domestic steel demand after Chinese New Year and expect the pace of demand to rise going
forward.
Recommendation & Investment Risks
• We retain our Buy recommendation on Southern Steel with an unchanged 12-month target price of MYR2.85.
• Our target price is derived after ascribing a target PER multiple of 8x(unchanged) against our estimated 2010 EPS plus our estimated 2010 net DPS of 6.9 sen.
• We believe there is still room for share price upside as the domestic stimulus projects get underway and margins expand. Moreover, the group is trading at less than 7x 2010 PER, lower than the peer average of 8x.
• Risks to our recommendation and target price include volatile steel and raw material prices arising from uncertainties in the global environment, and slower-than-expected rollout of large domestic infrastructure projects.
• Southern Steel’s 1Q10 results came in within our expectations, with net profit of MYR34.5 mln reaching 24% of our 2010 estimate.
• 1Q10 revenue surged 60% YoY on the back of higher demand and average selling price (ASP) as global economies recover from the financial crisis. The improvement is reflected in an operating profit of MYR41.5 mln from an operating loss of MYR71 mln in 1Q09.
• Revenue growth was more subdued on a QoQ basis, partly due to seasonal factors, when 1Q10 revenue grew 6.8% QoQ. We believe the growth can be attributed mainly to the higher ASP, as global steel prices rose 10%-15% QoQ, as a result of rising raw material costs. Higher raw material prices (+27% QoQ) negatively affected the
group’s margin, which fell to 6.6% (from 11.6% in 4Q09) while operating profit fell by 39% QoQ.
• We believe 2Q10 earnings may improve further as steel manufacturers continue to raise ASP to account for higher raw material prices. We have seen stronger domestic steel demand after Chinese New Year and expect the pace of demand to rise going
forward.
Recommendation & Investment Risks
• We retain our Buy recommendation on Southern Steel with an unchanged 12-month target price of MYR2.85.
• Our target price is derived after ascribing a target PER multiple of 8x(unchanged) against our estimated 2010 EPS plus our estimated 2010 net DPS of 6.9 sen.
• We believe there is still room for share price upside as the domestic stimulus projects get underway and margins expand. Moreover, the group is trading at less than 7x 2010 PER, lower than the peer average of 8x.
• Risks to our recommendation and target price include volatile steel and raw material prices arising from uncertainties in the global environment, and slower-than-expected rollout of large domestic infrastructure projects.
Sunrise ... May10
It may consider injecting some of its property assets into a real estate investment trust as they begin to deliver stable income.
Sunrise, ranked ninth by market value among listed Malaysian developers, may consider a REIT "at a later stage".
Real estate investment trust (REIT) mainly invests in commercial property and pay most of the rent to shareholders as dividends, which are usually higher than yields of government bonds and offer capital gains if property prices rise.
Sunrise has not yet planned to enter the fast-growing markets of Vietnam and China. For the medium term, its overseas focus will be on Canada. It does not have plans for the moment to venture into Vietnam or China.
Later 2010, Sunrise plans to launch two projects -- an office tower project in the Malaysian capital as well as a residential project in Vancouver, Canada.
Sunrise shares trade at 6.57 times 2010 earnings, compared to Sunway City's 10.61 times, IJM Land's 24.98 times and Gamuda's 20.31 times.
Sunrise, ranked ninth by market value among listed Malaysian developers, may consider a REIT "at a later stage".
Real estate investment trust (REIT) mainly invests in commercial property and pay most of the rent to shareholders as dividends, which are usually higher than yields of government bonds and offer capital gains if property prices rise.
Sunrise has not yet planned to enter the fast-growing markets of Vietnam and China. For the medium term, its overseas focus will be on Canada. It does not have plans for the moment to venture into Vietnam or China.
Later 2010, Sunrise plans to launch two projects -- an office tower project in the Malaysian capital as well as a residential project in Vancouver, Canada.
Sunrise shares trade at 6.57 times 2010 earnings, compared to Sunway City's 10.61 times, IJM Land's 24.98 times and Gamuda's 20.31 times.
Wednesday, May 5, 2010
Masterskill ... IPO
（吉隆坡4日讯）分析员表示，即将在大马交易所挂牌的Masterskill教育集团，预计将宣布派发每股17.4仙的股息。
肯南嘉投资研究分析员在一份报告称，根据其暂定的每股3.50令吉的零售价，预料该股具有25%的上涨空间，而这是根据60%的股息派发率和4.9%的周息率作出的预测。
与此同时，分析员指出，假设该高等学府的学生人数，增长33%至2万2790名，该集团在2010年12月31日的财年内，有望可录得22%的增长。
2009财年间，该集团经审核的营业额为2亿7340万令吉，而净利达9740万令吉。
分析员称，这项预测已纳入该校园使用率在本财年和2011财年分别为86%和80%，符合其过去历史趋势的80%。
受委调查劳工素质
另一方面，该集团的咨询臂膀——Masterskill全球管理私人有限公司，被人力资源发展有限公司受委进行调查，以研究大马劳工人口的素质。
这项调查将从雇主的观点进行研究，并将会建议行动计划，以改善受影响劳工素质的关键因素。
Masterskill 教育集团总执行长拿督斯里埃德蒙指出，这也是Masterskill全球管理的首个国家级项目。
他说："我们对这项研究感兴奋，并冀望研究结果将能为国家建设议程带来贡献，同时希望未来有更多具影响力的研究可由Masterskill进行。"
这项研究将由 Masterskill保健科学大学学院副校长拿督聂拉昔玛和研究团队负责，为期4个月。
肯南嘉投资研究分析员在一份报告称，根据其暂定的每股3.50令吉的零售价，预料该股具有25%的上涨空间，而这是根据60%的股息派发率和4.9%的周息率作出的预测。
与此同时，分析员指出，假设该高等学府的学生人数，增长33%至2万2790名，该集团在2010年12月31日的财年内，有望可录得22%的增长。
2009财年间，该集团经审核的营业额为2亿7340万令吉，而净利达9740万令吉。
分析员称，这项预测已纳入该校园使用率在本财年和2011财年分别为86%和80%，符合其过去历史趋势的80%。
受委调查劳工素质
另一方面，该集团的咨询臂膀——Masterskill全球管理私人有限公司，被人力资源发展有限公司受委进行调查，以研究大马劳工人口的素质。
这项调查将从雇主的观点进行研究，并将会建议行动计划，以改善受影响劳工素质的关键因素。
Masterskill 教育集团总执行长拿督斯里埃德蒙指出，这也是Masterskill全球管理的首个国家级项目。
他说："我们对这项研究感兴奋，并冀望研究结果将能为国家建设议程带来贡献，同时希望未来有更多具影响力的研究可由Masterskill进行。"
这项研究将由 Masterskill保健科学大学学院副校长拿督聂拉昔玛和研究团队负责，为期4个月。
TanChong ... May10
While the tan family dispute flared, management continued to carry out its duties and fulfill its responsibilities, anchoring operations with roots planted on thrift and industry.
Hence, TCMH could ramp up sales, profit margins and ROE in 2008. It is notable that, in its record 2Q2008, TCMH showed it could achieve a high ROE above 20%.
While the family dispute was finally settled in 2009, the company’s financial results were stalled by the recession. Now (April 2010), it is set to deliver the 2008 performance level again, when it had the highest efficiency in the use of capital in the industry.
The group comprises four listed companies – TCMH, APM, Warisan TC Holdings and TCIL.
TCMH made a net profit of rm95 million in its 2Q2008.
Even as TCMH hones its margins and ROEs it will scale up sales with a broader mix of car models.
At the same time, it is transforming into a regional supply chain manager for Nissan. It has appointed sole distributor of Nissan motor vehicles in Cambodia in March 2010 and Laos in April 2010. The group awarded a licence in 2009 to assemble Nissan motor vehicles in Vietnam.
Now that the two Tan families have made peace, the group can now commit substantial financial resources to expand into Indo China and to make any acquisitions that are attractive.
APM …
It has successfully carved a niche for itself, serving the whole car industry. It sales to TCMH are less than 10% of its total.
For its shareholders, APM has built up a large pile cash – some RM260 million at the end of 2009 when its free cash flow was R65 million. Its cash reserves are going to enable it to expand organically and through acquisitions in the domestic and regional markets.
Warisan …
Management may need more times as it is not very profitable. Many strategies are afoot to scale up its business and profitability. It is believed this will include the trading house taking up a wider range of franchises, including for the first time, in the motor vehicle sector.
However it is not faring as well as its sister companies in the Tan Chong group. The financial crisis took quite a heavy toll on its earnings amid the slowdown in consumer demand and construction activities.
Its core business is rather diversified, comprising travel services, car rentals and distribution of construction equipment and machinery. It also distributes consumer products.
The travel and car rental division was the biggest contributor to its revenue in its latest financial year.
The diversification does not seem to have helped mitigate the harsh economic conditions during the height of global downturn in FY2009.
It had cash of RM66 million with long term liabilities of RM14 million.
TCIL ….
It operates multiple franchises in HK and Singapore.
TCIL distributes Nissan cars in Singapore, and Subaru cars in Singapore, HK and southern China, and trucks in Thailand. It also has significant business in property development and investment.
In addition, it is cash rich worth about RM1.2 billion.
Guoco has 18.1% stake in TCIL as at end 2009.
Hence, TCMH could ramp up sales, profit margins and ROE in 2008. It is notable that, in its record 2Q2008, TCMH showed it could achieve a high ROE above 20%.
While the family dispute was finally settled in 2009, the company’s financial results were stalled by the recession. Now (April 2010), it is set to deliver the 2008 performance level again, when it had the highest efficiency in the use of capital in the industry.
The group comprises four listed companies – TCMH, APM, Warisan TC Holdings and TCIL.
TCMH made a net profit of rm95 million in its 2Q2008.
Even as TCMH hones its margins and ROEs it will scale up sales with a broader mix of car models.
At the same time, it is transforming into a regional supply chain manager for Nissan. It has appointed sole distributor of Nissan motor vehicles in Cambodia in March 2010 and Laos in April 2010. The group awarded a licence in 2009 to assemble Nissan motor vehicles in Vietnam.
Now that the two Tan families have made peace, the group can now commit substantial financial resources to expand into Indo China and to make any acquisitions that are attractive.
APM …
It has successfully carved a niche for itself, serving the whole car industry. It sales to TCMH are less than 10% of its total.
For its shareholders, APM has built up a large pile cash – some RM260 million at the end of 2009 when its free cash flow was R65 million. Its cash reserves are going to enable it to expand organically and through acquisitions in the domestic and regional markets.
Warisan …
Management may need more times as it is not very profitable. Many strategies are afoot to scale up its business and profitability. It is believed this will include the trading house taking up a wider range of franchises, including for the first time, in the motor vehicle sector.
However it is not faring as well as its sister companies in the Tan Chong group. The financial crisis took quite a heavy toll on its earnings amid the slowdown in consumer demand and construction activities.
Its core business is rather diversified, comprising travel services, car rentals and distribution of construction equipment and machinery. It also distributes consumer products.
The travel and car rental division was the biggest contributor to its revenue in its latest financial year.
The diversification does not seem to have helped mitigate the harsh economic conditions during the height of global downturn in FY2009.
It had cash of RM66 million with long term liabilities of RM14 million.
TCIL ….
It operates multiple franchises in HK and Singapore.
TCIL distributes Nissan cars in Singapore, and Subaru cars in Singapore, HK and southern China, and trucks in Thailand. It also has significant business in property development and investment.
In addition, it is cash rich worth about RM1.2 billion.
Guoco has 18.1% stake in TCIL as at end 2009.
Tuesday, May 4, 2010
Tecnic ... May10
Tecnic Group Bhd, a plastic products manufacturer, will continue to rely on a business model that helped turn it around in 2005.
The company, formerly known as STS Tecnic Bhd, was a loss-making company before a new management took over in 2004 and implemented an already existing business model.
The new management introduced electrical and electronics as well as automotive sectors as part of the turnaround plan.
Tecnic now boasts five core segments including medical, industrial and consumer packaging as well as oil and gas.
The company returned to the black in 2005 from a net loss of RM6.3mil in 2004 and recently posted a net profit RM13.1mil in the previous financial year ended Dec 31, up 52% from previous corresponding year.
Revenue was at RM137.5mil, up 25.8% for the period under review and the company which now has zero gearing, has also proposed a final dividend of 16 sen per share.
As of Dec 31, 2009 its cash and its equivalents stood at RM10.8mil.
Among its notable customers are Panasonic, Samsung, Sony, Unilever, Cadbury, Carlsberg, Shell, Petronas, Exxon Mobil and BP Castrol.
Tecnic’s strength in plastic moulding was an added advantage over the other players, armed with latest tooling technology such as overmoulding, double-injection, multi cavities, gas assist injection and electric moulding just to name a few. This has enable it to produce high gloss, precision and rigorous quality products.
Its capital expenditure (capex) this year will be around RM6mil to RM8mil focusing on technology upgrading. Its capex this year is lower than 2008 and 2009 that stood at RM13.1mil and RM10.2mil respectively as the company spent a lot on expansion of its factory expansion including land acquisition in the last two years.
Currently, the company is utilising between 65% and 70% of its total facilities’ capacity.
The company, formerly known as STS Tecnic Bhd, was a loss-making company before a new management took over in 2004 and implemented an already existing business model.
The new management introduced electrical and electronics as well as automotive sectors as part of the turnaround plan.
Tecnic now boasts five core segments including medical, industrial and consumer packaging as well as oil and gas.
The company returned to the black in 2005 from a net loss of RM6.3mil in 2004 and recently posted a net profit RM13.1mil in the previous financial year ended Dec 31, up 52% from previous corresponding year.
Revenue was at RM137.5mil, up 25.8% for the period under review and the company which now has zero gearing, has also proposed a final dividend of 16 sen per share.
As of Dec 31, 2009 its cash and its equivalents stood at RM10.8mil.
Among its notable customers are Panasonic, Samsung, Sony, Unilever, Cadbury, Carlsberg, Shell, Petronas, Exxon Mobil and BP Castrol.
Tecnic’s strength in plastic moulding was an added advantage over the other players, armed with latest tooling technology such as overmoulding, double-injection, multi cavities, gas assist injection and electric moulding just to name a few. This has enable it to produce high gloss, precision and rigorous quality products.
Its capital expenditure (capex) this year will be around RM6mil to RM8mil focusing on technology upgrading. Its capex this year is lower than 2008 and 2009 that stood at RM13.1mil and RM10.2mil respectively as the company spent a lot on expansion of its factory expansion including land acquisition in the last two years.
Currently, the company is utilising between 65% and 70% of its total facilities’ capacity.
Monday, May 3, 2010
Deleum ... May10
It is optimistic on the outlook for its operations following the expansion of its support services targeted at the players in the oil and gas (O&G) industry.
Its recent acquisition of Rotary Technical Services Sdn Bhd, via its subsidiary Delcom Services Sdn Bhd, has enabled the group to expand its current array of services it can provide to the O&G players.
Deleum specialises in providing a diverse range of products and services for the O&G industry, particularly the exploration and production of oil and gas. Whereas Rotary, which it acquired for RM10.7 million, provides servicing, repair, modification, upgrading and installation of machinery and equipment, mainly in motors, generators, transformers, pumps and valves. But by year-end, it should be enjoying some favourable contracts from this segment.
The group planned to continue growing its offshore business which contributes about 95% of its revenues, domestically and overseas.
The group had participated in tenders for jobs worth RM300 million. The group had a total of RM1 billion worth of contracts in hand which would keep it busy until 2015.
Its recent acquisition of Rotary Technical Services Sdn Bhd, via its subsidiary Delcom Services Sdn Bhd, has enabled the group to expand its current array of services it can provide to the O&G players.
Deleum specialises in providing a diverse range of products and services for the O&G industry, particularly the exploration and production of oil and gas. Whereas Rotary, which it acquired for RM10.7 million, provides servicing, repair, modification, upgrading and installation of machinery and equipment, mainly in motors, generators, transformers, pumps and valves. But by year-end, it should be enjoying some favourable contracts from this segment.
The group planned to continue growing its offshore business which contributes about 95% of its revenues, domestically and overseas.
The group had participated in tenders for jobs worth RM300 million. The group had a total of RM1 billion worth of contracts in hand which would keep it busy until 2015.
Weida ... May10
Sarawak-based Weida (M) Bhd is in talks for more water and wastewater-related contracts in Syria where it is the turnkey contactor for an on-going RM375mil sewerage project.
Talks are progressing on a proposed 50,000 cu m per day centralised industrial wastewater treatment plant, a 30,000 cu m per day water reclamation plant and more sewage treatment plants.
Renexus Weida is a 79%-owned subsidiary of Weida, whose core businesses are in water and wastewater utility infrastructure, recycling, renewable energy and stormwater management.
The RM375mil contract Weida secured three years ago under a government-to-government initiative involved the formulation of a sewage master plan for a population of four million.
Under the contract, five sewage treatment plants and 15 water treatment plants will also be built to serve one million people. The deal is partly funded by the Malaysian Government through the Export and Import Bank of Malaysia.
The Weida group now owns manufacturing plants in Kuching, Miri, Kota Kinabalu, Tawau and Nilai. They produce polyethylene engineering products for use in water and wastewater infrastructure.
The group expanded to the Philippines when its sixth manufacturing plant started operation there more than a year ago.
Talks are progressing on a proposed 50,000 cu m per day centralised industrial wastewater treatment plant, a 30,000 cu m per day water reclamation plant and more sewage treatment plants.
Renexus Weida is a 79%-owned subsidiary of Weida, whose core businesses are in water and wastewater utility infrastructure, recycling, renewable energy and stormwater management.
The RM375mil contract Weida secured three years ago under a government-to-government initiative involved the formulation of a sewage master plan for a population of four million.
Under the contract, five sewage treatment plants and 15 water treatment plants will also be built to serve one million people. The deal is partly funded by the Malaysian Government through the Export and Import Bank of Malaysia.
The Weida group now owns manufacturing plants in Kuching, Miri, Kota Kinabalu, Tawau and Nilai. They produce polyethylene engineering products for use in water and wastewater infrastructure.
The group expanded to the Philippines when its sixth manufacturing plant started operation there more than a year ago.
Sunday, May 2, 2010
生活小窍门 ... 5
41.夏天擦拭凉席，用滴加了花露水的清水擦拭凉席，可使凉席保持清爽洁净。当然，擦拭时最好沿着凉席纹路进行，以便花露水渗透到凉席的纹路缝隙，这样清凉舒适的感觉会更持久。
42.早餐多食西红柿、柠檬酸等酸性蔬菜和水果，有益于养肝。
43.爽身止痒洗头或洗澡时，在水中加五六滴花露水，能起到很好的清凉除菌、祛痱止痒作用。
45.夏天多喝番茄汤既可获得养料，又能补充水分，番茄汤应烧好并冷却后再喝，所含番茄红素有一定的抗前列腺癌和保护心肌的功效，最适合于男子；吃酸性物质马上刷牙会损害牙齿健康。
46.因外伤碰破皮肉时，在伤处涂上牙膏进行消炎、止血，再包扎，作为临时急救药，以药物牙膏效果最为显。
47.将白醋喷洒在菜板上，放上半小时后再洗，不但能杀菌，还能除味。
48.喝酸奶能解酒后烦躁，酸奶能保护胃黏膜、延缓酒精吸收，并且含钙丰富，对缓解酒后烦躁尤其有效。
49.皮鞋包皮放久了发霉时，可用软布蘸酒精加水（1：1）溶液擦拭即可。
50.发生头痛、头晕时，可在太阳穴涂上牙膏，因为牙膏含有薄荷脑、丁香油可镇痛。
42.早餐多食西红柿、柠檬酸等酸性蔬菜和水果，有益于养肝。
43.爽身止痒洗头或洗澡时，在水中加五六滴花露水，能起到很好的清凉除菌、祛痱止痒作用。
45.夏天多喝番茄汤既可获得养料，又能补充水分，番茄汤应烧好并冷却后再喝，所含番茄红素有一定的抗前列腺癌和保护心肌的功效，最适合于男子；吃酸性物质马上刷牙会损害牙齿健康。
46.因外伤碰破皮肉时，在伤处涂上牙膏进行消炎、止血，再包扎，作为临时急救药，以药物牙膏效果最为显。
47.将白醋喷洒在菜板上，放上半小时后再洗，不但能杀菌，还能除味。
48.喝酸奶能解酒后烦躁，酸奶能保护胃黏膜、延缓酒精吸收，并且含钙丰富，对缓解酒后烦躁尤其有效。
49.皮鞋包皮放久了发霉时，可用软布蘸酒精加水（1：1）溶液擦拭即可。
50.发生头痛、头晕时，可在太阳穴涂上牙膏，因为牙膏含有薄荷脑、丁香油可镇痛。
Saturday, May 1, 2010
生活小窍门 ... 4
31.烹调蔬菜时，如果必须要焯，焯好菜的水最好尽量利用。如做水饺的菜，焯好的水可适量放在肉馅里，这样既保证营养，又使水饺馅味美有汤。
32.夏天足部容易出汗，每天用淡盐水泡脚可有效应对汗脚。
33.夏天游泳后晒晒太阳，可防肌肤劳损等疾病发生。
34.夏天枕头易受潮滋生霉菌，时常曝晒枕芯有利健康。
35.多吃薏米小豆粥等潮湿健脾，可防暑湿。
36.防失眠：睡前少讲太多话，忌饮浓茶，睡前勿大用脑，可用热水加醋洗脚。
37.金银花有疏散风湿功效，金银花水煎取汁凉后与蜂蜜冲调可解暑。
38.吃过于肥腻的食物后喝茶，能刺激自律神经，促进脂肪代谢。
39.睡眠不足会变笨，一天需要睡眠八小时，有午睡习惯可延缓衰老。
40.双手易变得干燥粗糙，用醋泡手十分钟可护肤。
32.夏天足部容易出汗，每天用淡盐水泡脚可有效应对汗脚。
33.夏天游泳后晒晒太阳，可防肌肤劳损等疾病发生。
34.夏天枕头易受潮滋生霉菌，时常曝晒枕芯有利健康。
35.多吃薏米小豆粥等潮湿健脾，可防暑湿。
36.防失眠：睡前少讲太多话，忌饮浓茶，睡前勿大用脑，可用热水加醋洗脚。
37.金银花有疏散风湿功效，金银花水煎取汁凉后与蜂蜜冲调可解暑。
38.吃过于肥腻的食物后喝茶，能刺激自律神经，促进脂肪代谢。
39.睡眠不足会变笨，一天需要睡眠八小时，有午睡习惯可延缓衰老。
40.双手易变得干燥粗糙，用醋泡手十分钟可护肤。