AIRASIA,TAGLOBAL,HEKTAR REIT,PERISAI

AirAsia (AIRA MK, Buy, TP: RM1.80) sets record with 900,000 seats sold in 48 hours. The low cost airline set a new
international sales record with 402,222 seats snapped up in 24 hours after the launch of its “one million free seats” campaign
on Nov 11. The airline said it sold another 489,000 seats the second day. Regional commercial head Kathleen Tan said Air
Asia’s website registered over 300m hits in the first 11 hours of the campaign. The success of the campaign was attributed to
their powerful blog and social networking platforms. (The Star)
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TA Global Bhd, en route to a listing on the Main Market of Bursa Malaysia, has lined up a series of plans for next year,
including a possible dual listing abroad. Shareholders are looking to list the company either in Singapore or Hong Kong, a
year after its local debut, to build up the brand internationally. TA Global is due to list on Bursa Malaysia on Nov 23. (BT)
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Hektar Real Estate Investment Trust (REIT) expects “better” earnings prospects next year once it completes the
refurbishment of its mall in Melaka. The 15-year old Mahkota Parade, is presently undergoing a RM30m renovation exercise
since August this year and would be relaunched by the 2Q of 2010. “We hope that when Mahkota Parade is relaunched, it will
attract more and better shoppers that will help boost rental income,” Hektar Asset Management’s executive and chief financial
officer Zalila Mohd Toon said. A net profit RM9.59m, or 3 sen per share, was reported for the period between July and
September on the back of RM22.57m in revenue. (Malaysian Reserve)
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Perisai Petroleum Teknologi Bhd is in talks with parties in Australia, Indonesia and India to secure the first contract
for its award-winning mobile offshore production and storage unit (Mopsu). Perisai group CFO Yeo Pek Chin said it
looked forward to securing its first contract, which would keep it busy for “a few” years. He was not able to share any earnings
or revenue projection from these contracts. Yeo said the Mopsu, with a lifespan of 25 years, had the capability to operate water
depths of 80 to 120 metres, depending on its variant or type. It costs about US$70m (RM235.9m) to US$80m to fabricate a
Mopsu. To fund the deployment of the first Mopsu, Perisai recently raised funds via a US$10m redeemable convertible bonds
(RCB), which were fully taken up by a private equity fund in Singapore. As it takes 18 months to fabricate a Mopsu, it is safe to
assume that Perisai may only see earnings in the venture to trickle in from next year onwards. Nonetheless, Perisai had
projected a full-year net profit of RM61.1m for the year ending Dec 31, 2009 (FY09) and RM74m for FY10. (Financial Daily)
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A foreign investor has submitted a proposal for the RM10.24bn project to build an aluminium smelter complex in
Sabah and is awaiting positive response from the state government. Sabah Land Development Board (SLDB) chief
executive officer Jhuvarri Majid said the project vendors hoped to start construction of the complex, with an annual capacity of
620,000 tonnes per annum, by June 2010, provided all the approvals are obtained. “The investors have been engaged in
negotiations with SLDB over the last six months and are confident Sabah can become a major player in aluminium production
in South-East Asia,” he said. (Malaysian Reserve)
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Two-year review bodes well for construction, says Master Builders Association Malaysia (MBAM). MBAM president Ng
Kee Leen says the push by the Government under the 10th Malaysia Plan to monitor and review the construction industry’s
performance over two years instead of five years bodes well for the industry. This approach was supported by MBAM as it
would be more “current” for planning and allowed for better monitoring, thus increasing the prospects of the proposed projects
being achieved. With a shorter timeframe, the construction industry would be able to deliver its role more efficiently, cost
effectively and on time. (Starbiz)
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Exxon Mobil Corporation and Coca-Cola are expected to make substantial investments in the local beverage and gas
sectors soon. Prime Minister Datuk Seri Najib Tun Razak said Exxon expressed its intention to venture into high CO2 content
gas extraction while beverage giant Coca-Cola wanted to build a modern plant in Malaysia. He said, “For Exxon this will require
additional investment as it is a new form of technology,” while adding the project would be located in Kiminis Sabah. Coca-Cola
said the new bottling plant will be using advanced technology. The value of these investments will be announced later as the
Government was still working out details of the tax incentives requested by the companies. (The Star)
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