CIMA,TNB,HONG LEONG,GENTING, IJM,AXIATA, PARKSON

CIMB: Investors in talks for bad debt unit
CIMB Group Holdings Bhd (CIMB MK, Buy, TP: RM15.25) is in talks with three foreign investors interested in buying stakes in a unit set up to manage its bad debt, CEO Datuk Seri Nazir Razak said. CIMB aims to conclude its first agreement by the end of this year. “We are looking at selling down at least 51%,” Nazir said. The South-East Asia Special Asset Management Bhd unit had about RM8.4bn worth of bad debt when it was created in October to gradually purge the estimated RM14bn of non performing loans inherited from Bumiputra-Commerce Bank and Southern Bank before the merger into CIMB in 2006. (Malaysian Reserve)
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TNB: Eyes second quarter profit boost
Tenaga Nasional Bhd (TNB) (TNB MK, Buy, TP: RM9.90) expects a strong second-quarter profit after electricity demand surged, and had doubled its full-year demand growth forecast, CEO Che Khalib Mohamad Noh said. TNB saw a 13.8% increase in power demand in the second quarter from a contraction of 7.6% in the equivalent period a year earlier. “Due to this, we think that we are going to exceed our initial estimate of 3% demand growth for the full year. My guess is that it will be 6%-7% for the full year,” Che Khalib said. (StarBiz)
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Hong Leong: Returns with the same RM7.10 a share offer for EON Cap
Hong Leong Bank Bhd (HLBB) (HLBK MK, Hold TP: RM8.71) has returned with the same cash offer for EON Capital Bhd (EON Cap) – RM7.10 a share or RM4.9bn for the latter’s entire assets and liabilities. The price is the same as its first offer made previously which values EON Cap at 1.4 times book value based on shareholders’ funds of RM3.6bn as at 31 Dec 2009. According to a statement from Bursa Malaysia, HLBB requires EON Cap’s board to confirm that EON Cap agrees to certain conditions regarding the offer on or before Apr 5. These include EON Cap and HLBB each submitting their respective applications to the finance ministry and relevant authorities for approval based on the offer price before Apr 9. (Financial Daily)
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Genting: ‘Aggressively’ looking at investments in the US and elsewhere
Genting Bhd (GENT MK, Hold, TP: RM6.37) is aggressively looking at a variety of potential investments in the United States and other countries, said its head of strategic investments and corporate affairs, Datuk Justin Leong. The company is “looking at investments” quite “aggressively” as the markets open up,” he said, but declined to delve into specifics. He
said Genting was cautiously optimistic about the global financial environment. (Financial Daily)
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IJM: Bidding for RM4bn worth of projects
IJM Corporation (IJM MK, Hold, TP: RM4.30) is bidding for projects worth RM4bn, giving it a strong possibility of boosting its total orderbook past the RM4bn mark from the current RM3.6bn, said its CEO Datuk Krishnan Tan Boon Seng. “With improving economic conditions, there should be opportunities to increase the order book. Certainly by year end we will
cross the RM4bn mark,” he said, adding that IJM would be sticking to its core business and continue to operate in its traditional markets. He also said there have been concerns about the lack of news flow in the infrastructure industry in Malaysia but believed the situation would change in a month or two. (Financial Daily)
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Axiata: To announce first dividend payout since Telekom demerger
Axiata Group Bhd (AXIATA MK, Hold, TP: RM4.15) will be announcing its dividend policy by 3Q2010 en route to its maiden dividend payout since being demerged from Telekom Malaysia Bhd (T MK, Hold, TP: RM3.54) in April 2008. Axiata’s move to pay dividends will be financed by its sale of an 18% stake in its Indonesian subsidiary PT XL Axiata Tbk, which is expected to raise between RM1.83bn to RM2.02bn. Axiata is inclined to use the proceeds for consistent dividends and lowering its borrowings. CEO Datuk Sri Jamaludin Ibrahim said there will be divestment of non-core businesses in Iran, Thailand and Pakistan. (Malaysian Reserve)
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Parkson: To invest RM220m this year
Parkson Holdings Bhd plans to invest about RM220m this year for expansion, up from RM180m in 2009, said CEO Datuk Albert Cheng. He said a total of RM150m to RM170m would be invested in its biggest market China and RM20m to RM25m for Malaysia. “We would invest around RM20m for our market in Vietnam,” he said. Cheng said the company was expecting an increase of 15% to 20% in its retail space this year for its stores in Malaysia, China and Vietnam. (Financial Daily)