AXIATA,SPSETIA,MRCB & other business news

Axiata Group Bhd (AXIATA MK, Buy, TP: RM4.15) is considering a dividend payout from 2011 onwards as its balance
sheet has improved on the back of improving business conditions. This would be its first payout to shareholders since its
listing in 2008 after the demerger from Telekom Malaysia. Also, the group’s Indonesian unit, XL Axiata has a free float of
0.2% as Emirates Telecommunications Corp controls another 13.3% stake in the Indonesian firm. “We have said back at the
end of 2008 that we are open at possibility in increasing the float up (to) 15% to 20%. It is something that we are always
looking at,” said the CEO, Datuk Seri Jamaluddin Ibrahim. (StarBiz)
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SP Setia Bhd (SPSB MK, Buy, TP: RM4.05 ) has increased its sales target for the financial year ending October 31,
2010 (FY10) to RM2bn from RM1.65bn, on the back of a jump in sales of RM608m in the first quarter. The group
recorded its record high sales of RM1.65bn in FY09. According to its president and CEO, almost all of the RM2bn target will
come from the local market and 10% will come from its projects in Vietnam. Its total 10 ongoing projects in Malaysia have a
GDV of RM26bn that would last for 10 to 20 years on 3,900 acres of land. (StarBiz)
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The Employees Provident Fund (EPF) is making a conditional takeover offer for the shares it does not already own in
Malaysian Resources Corporation Bhd (MRCB) at RM1.50 cash apiece, after it triggered the general offer (GO) following its
subscription of 171.47m rights shares last year. MRCB said following its subscription of the rights shares, EPF’s shareholding
in MRCB rose to 33.8% or 461.52m of RM1 each. EPF intended to maintain MRCB’s listing status and would explore various
options to rectify the company’s public shareholding spread. (Financial Daily)
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Pharmaniaga Manufacturing Bhd (PMB) has had its manufacturing licence revoked following a routine audit by the
pharmaceutical services division of the health ministry. In a statement to Bursa Malaysia, Pharmaniaga however did not
reveal the reason. It said the cessation of production would not have a significant financial impact on the group as the other
business lines were not affected. “The company is taking all necessary steps to ensure that the issues raised are addressed
expeditiously for the re-issuance of the licence to enable the plant to resume production as soon as possible,” it said, without
saying what the “issues” are. (Financial Daily)
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Malaysian Bulk Carriers Bhd (Maybulk) is eyeing potential vessels to grow its fleet as the global financial crisis has
resulted in lower vessel prices. The company will be looking for available second hand vessels instead of ordering new
vessels. On newly built vessels, the company is waiting for the market to correct itself. Maybulk’s fleet currently consist of 13
of its own vessels and two vessels on long term charter. In view of the fleet expansion, Maybulk may declare lower dividends
for shareholders as the company conserves its cash reserves to finance the expansion plan. (Malaysian Reserve)
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Faber Group Bhd is targeting revenue to grow between 12% and 15% this year. The company’s focus will still be on
overseas operations as it was the major contributor to the integrated facilities management (IFM) segment last year. “We will
be moving according to our roadmap which is to enhance operations in United Arab Emirates and India. We are also looking
at diversifying and expanding our business into the IFM segment which is the major contributor to company revenue,” said
managing director Adnan Mohammad. (Malaysian Reserve)
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Malaysia will miss its output target of 18.1m tonnes because of a shortage of foreign labour even as yields recover, a top
industry official said. Industry regulator Malaysian Palm Oil Board (MPOB) chairman Datuk Sabri Ahmad said Indonesian
plantation workers make better pay at home as more oil palm estates start up there while employers in Malaysia have trouble
hiring because of a stricter work-permit process. Sabri said the industry was in talks with the government to get more “flexible
work permits” for foreign labourers who make up about two-thirds of the half a million estate workers in Malaysia. Many of the
returned Indonesian labourers subsequently get jobs in plantations in Indonesia’s Kalimantan province. (Financial Daily)