Tuesday, May 28, 2013

Alliance maintains "Neutral" on MPHB; TP: RM3.12

neutral !?let me take a look!

Alliance maintains "Neutral" on MPHB; TP: RM3.12

Nadya Ngui

PETALING JAYA: Alliance Research maintains its “Neutral” rating on Multi-Purpose Holdings Bhd (MPHB), given its limited upside post-demerger exercise as well as maintaining its target price at RM3.60, comprising of RM3.12 for its gaming operations and capital repayment of 48.5sen.

The research house said MPHB's earnings were above expectation, supported by improvement in all its divisions mainly from its gaming operations.

“Stripping out exceptional items amounting to RM16.4 million, which consist of gain on disposal of its stockbroking business of RM15.0 million, gain on disposal of investment properties of RM1.4 million -- core earnings for 1Q13 amounted to RM133 million, which achieved 31.9% and 33.9% of our and consensus full-year estimates respectively,” it said.

Alliance said profit from its gaming division surged by 49.8% to RM148.4 million driven by additional one extra draw during the quarter compared to 1Q12, prize payout ratio at 59% vs a normalised ratio of 63% as well as savings in interest expenses from its debt restructuring exercise.

“Operating profit from its financial services division for 1Q13 was 4.8 times higher on-year at RM13.2 million from RM2.3 million reported in the corresponding period last year due to stronger income generated from its general insurance business and disposal gains of investment securities,” it said.

Alliance added MPHB's operating profit from its corporate and other divisions for 1Q13 rose 50.1% on-year to RM25.2 million boosted by gain on disposal of its stockbroking business of RM15.0 million and savings in interest expenses arising from its debt restructuring exercise.

“Nonetheless, we observe that operational environment remains challenging for its gaming operations where gaming revenue per outlet eased by about 1.1% in 1Q13 compared to 1Q12. This reflects the ongoing competition in the numbers forecast operations industry," it said.

Saturday, May 25, 2013

Bursa likely to extend profit taking

Share prices are expected to undergo further profit-taking next week with the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) possibly retreating to the 1760 points support level.

Weak regional sentiment coupled with softer commodities and the declining ringgit would be contributing factors.

The minutes of the recent US Feds meeting showed that policy makers are now ready to start tapering off the central bank’s third round of quantitative easing as early as June.

Affin Investment Bank vice president and head of retail research Dr Nazri Khan said the anticipation will dampen sentiment across the region, as any scale back of the bonds purchase, would limit liquidity flows into Asian emerging assets, including Malaysia.

"However, the medium term local sentiment is increasingly turning towards a gradual equity price melt-up (rather than asset melt down) on improving fundamentals, post the General Election.

"Hence, we believe any correction should be temporary before an uptrend resumes," he told Bernama.

He said the local market is expected to end profit-taking possibly late next week - after the long school holidays - and just before the start of June.

Trading momentum is also likely to accelerate after local stocks consolidate their strong gains.

"Given the bearish seasonality’s of May/June and the FBM KLCI's strong performance over the past four months - FBM KLCI up +10.7 per cent since early February - we see higher probabilities for deeper correction near term," Nazri said.

He also said the softer commodities are likely to drag down local
equities, with light crude oil and crude palm oil down week-on-week 3.3 per cent and 4.1 per cent, respectively.

"With stocks looking ripe for a further pullback or correction, we are recommending investors to start looking for potential support levels and buy quality stocks on dips," he added.

According to Nazri, stocks of choice next week would be banks and services companies such as Public Bank, Ambank, Maybank, Tenaga, Astro and SapuraKencana Petroleum(SKPetro).

"On the local front, despite the school holiday season, we have seen some good headlines to cushion local market weakness," he said.

Nazri said these include the pending floatation of Air Asia X, Petronas Chemicals allocating a RM3 billion capex for its fertiliser plant in Sabah, Berjaya Sports Toto buying a 2.4 per cent stake in REDtone International Bhd and AEON Bhd investing RM240 million for retail store expansion this year.

During the week just ended, the FBM KLCI outgunned the previous
all-time-high of 1,788.43 with an intra-day high of 1,795.59 on May 22, and in tandem with the sterling performance of regional markets amid inflows of domestic and external funds.

However, the market lost its momentum on Thursday ahead of the Wesak Day holiday, on profit-taking as losses on regional markets spooked investors.

Comments by US Federal Reserve Chairman Ben Bernanke that policy makers may scale down bond purchase programmes also caused jitters on global equity markets.

On a week-to-week basis, the FBM KLCI ended 3.90 points higher at 1,773.06 from 1,769.16.

The Finance Index increased 27.37 points to 16,776.38 from 16,749.01 previously.

The Plantation Index improved 60.65 points to 8,289.95 from 8,229.30, while the Industrial Index declined 23.78 points to 3,000.67 from 3,024.45.

The FBM Emas Index increased 44.50 points to 12,316.68 from 12,272.18, with the FBMT100 Index gaining 35.86 points to 12,090.36 from 12,054.50 last Friday.

The FBM Ace Index declined 5.04 points to 4,674.37 from 4,679.41 and the FBM Mid 70 Index increased 79.38 points to 14,171.37 from 14,091.99.

Weekly turnover dipped 10.942 billion shares worth RM11.765 billion from 12.677 billion shares worth RM13.261 billion.

Main market volume slid to 9.378 billion shares worth RM11.478 billion from 10.65 billion shares valued at RM12.588 billion last week.

The Ace market volume fell to 1.315 billion shares worth RM211.266 million from 1.727 billion units worth RM265.042 million previously.

Warrants declined to 228.938 million units worth RM39.439 million
from 272.137 million shares valued at RM35.623 million.-- Bernama

Friday, May 24, 2013

KPJ and IHH...........buy, sell or hold?

let me get more details into the stocks before making any conclusions.

KPJ Healthcare Q1 earnings down 24.7% to RM25m

By Nadya Ngui

KUALA LUMPUR: KPJ Healthcare Bhd's net profit fell 24.7% to RM25.09mil in the first quarter ended March 31, 2013 from RM33.3mil a year ago due to losses sustained by the group's newly opened hospitals.
It said on Wednesday its topline however increased 4% to RM545mil from RM525.6mil a year ago due to higher revenue from its new and existing hospitals.
Earnings per share declined to 4.29 sen from 5.81 sen a year ago. The group declared a dividend of two sen a share and the ex date was June 26.
KPJ Healthcare said its local revenue increased 2% to RM491.6 while its Indonesian operations posted a 38% increase to RM6.9mil compared to a year ago.
It said RM10mil was included in the preceding quarter as a result of gain on disposal of shares in Al-'Aqar Healthcare REIT and gain on revaluation of Investment Properties.
KPJ, however, was optimistic on the growth driven by the launch of its four new hospitals -- KPJ Sabah Specialist Hospital, Pasir Gudang Specialist Hospital, Maharani Specialist Hospital and Rawang Specialist Hospital.
"The expansion of existing hospitals will have a positive impact to the Group results for 2013, however this will be moderated by the new greenfield hospitals where each of this hospital will have an average gestation period between three to five years," it said.

IHH first-quarter profit improves on higher revenue


PETALING JAYA: IHH Healthcare Bhd recorded a higher net profit of RM127.27mil for the first quarter ended March 31, 2013, up 3.7% from RM122.71 in the same quarter last year.

The healthcare services provider said in its Bursa Malaysia announcement yesterday that revenue was higher almost 30% year-on-year to RM1.62bil in the first quarter. “We are quite happy with our financial performance,” said its executive director of corporate services Ahmad Shahizam Mohd Shariff over a conference call with journalists yesterday.
Ahmad Shahizam said that the reported numbers have been reclassified due to the consolidation of ParkwayLife Real Estate Investment Trust (PLife REIT) in both the first quarter of financial year 2013 and the corresponding period last year. IHH said in their statement that the group adopted the Malaysian financial reporting standards (MFRS10) consolidated financial statements effective from Jan 1, 2013 which resulted in PLife REIT being reclassified from an associate to subsidiary and Khubchandani Hospital Private Limited reclassified from a subsidiary to a joint venture.
“Consequentially, PLife REIT was retrospectively consolidated whilst Khubchandani was retrospectively equity accounted,” the statement added.
Excluding these effects, IHH said its profit after tax and minority interests (PATMI) increased by a modest 3% yoy to RM113.7mil from RM110.1mil while group PATMI excluding exceptional items rose by 18% to RM119.9mil.
This, it said, will more accurately reflect the underlying performance of its healthcare business.
“This was a result of the growth in earnings before interest, taxes, depreciation and amortisatin (EBITDA) and savings in financing costs after the repayment of Parkway and Acibadem acquisition loans from the utilisation of the initial public offering proceeds, which also offset the incremental depreciation cost and financing cost relating to new hospitals,” IHH said.
On its outlook, IHH said its patient volume and revenue in home markets were expected to grow with the ramping up of new hospitals and the completion of various expansion projects.
It noted profitability may be affected by start-up costs, depreciation and financial costs associated with these new operations.
“IHH is also mindful that the industry-wide shortage of trained healthcare professionals in Singapore, Malaysia and Turkey and the general trend of rising operating costs and lease rental expenses could dampen the overall EBITDA and margins,” the company said.
Meanwhile, IHH said its Gleneagles Hong Kong Hospital was expected to commence operations in late 2016 with a full range of clinical services. “The development is expected to involve a capital investment of approximately HKD5bil, which is inclusive of land costs amounting to HKD1.688bil paid in April 2013,” IHH said.

Wednesday, May 22, 2013

Property stocks on the run, but wait for pullback!

An old article that sound interesting!


Friday January 18, 2013

UBS positive on property stocks this year

PETALING JAYA: Residential property stocks which underperformed in 2012 will do better this year and among them the best is Mah Sing Bhd, a report by UBS Investment Research said.

It said the Mah Sing was ‘entrepreneurially managed with ambitious plans to grow within Malaysia”.
UBS stated that while 2013 should remain challenging, the company will deliver circa 20% sales and earnings growth based on its diversified range of products.

“Our new price target for Mah Sing’s stock is RM2.80 based on a 30% discount in realisable net asset value (RNAV) of RM3.99 and the company has a dividend policy of paying a minimum 40% of net profit resulting in a forecast yield of 6.2% for 2013,” it said.

The company has announced its record sales target for this year of RM3bil, that is 20% higher than the 2012 and anticipates further landbank acquisitions through financing via a proposed RM400mil rights issue to be completed bt the first half of this year.

Aside from that, UBS is giving a “buy” call for SP Setia whose stock is currently traded at 14.3 times financial year 2013 expected price to earnings with 4.1% yield.

“The stock is currently traded at a 38% discount to our RNAV of RM5.14.

“This discount more than fairly reflects the risks associated with the departure of chief executive officer Tan Sri Liew Kee Sin, diversification of projects outside of Malaysia and upcoming product launches from its high-quality landbank should ensure that the company achieves its aggressive sales target for financial year 2013,” it said.

The share price for SP Setia has fallen almost 20% over the past one year because of the commitment of the company’s CEO and his management team, the upcoming 15% private placement of equity and exclusion from the MSCI index due to lack of liquidity.

The research house said SP Setia’s sales target for this year is RM5.5bil, which is 30% higher than last year, noting that the sales contribution was mainly from its oversea projects sales, specifically from its project in Battersea London.

Meawhile, the research house maintained a “hold” call on the UEM Land Holdings Bhd although it was encouraged by the recent Ascendas joint venture announcement to develop an integrated eco-friendly tech park in Nusanjaya, Johor that is believed to have long-term positive implications for the Iskandar region.

However, it suggested the potential of the Nusanjaya landbank has been a well discussed theme over the last decade and the ability of the company to translate into sustainable earnings stream has so far proven elusive.

UEM Land has not yet announced its target sales for 2013. UBS is expecting the sales contribution to be significantly above the 2012 revised sales of RM2bil in light of launches of new projects in this year that include Angkasa Raya, MK22, Sinaran Hills and Bangi.

The research house pointed out that the high-end property sales in Malaysia were sluggish while the mid- to low-end markets (RM500,00 to RM1mil) sales proved resilient.

Sales of high-end landed property and premium condominiums were weaker.

This was because if the concern about the external environment and the upcoming general election together with the intrduction of the resposible lending guidelines for banks.

“In our view, all the developers will be able to sustain sales momentum from 2012 into 2013 as they shift to more affordable housing units,” said UBS.

UBS said it expected better global economic data and pick-up in regional equity markets and that once the external picture improved, it said it was likely to result in stronger physical demand from the homebuyers curretly waiting in the sidelines.

UBS expects investors will reconsider putting fresh money into the physical property market after the general election and assuming political stability,

Friday, May 17, 2013

What do Chinese want? By Koon Yew Yin

What do Chinese want?

May 17, 2013
The most important concern of the Chinese is fairness in the system – especially in education, business and the civil service.
By Koon Yew Yin
Even before the elections took place, various Umno leaders led by Dr Mahathir Mohamad and Utusan Malaysia have led the onslaught against the Chinese in the country.

Now the results are in, they are taking to a new level the politics of suspicion, hatred and revenge in the Malay masses for what they say as a betrayal by the Chinese voters.

There are several undeniable contrary facts to their thinking. Firstly, as others have pointed out, the so-called Chinese tsunami was actually a Malaysian tsunami which accounted for the largest ever proportion of total votes – in fact the majority – going to the opposition.

Simple arithmetic explains why Chinese who comprise less than 30% of the total population can barely account for at most half the total votes cast against the Barisan Nasional even if all Chinese had voted against the BN.

Secondly, the Chinese rejection of BN is in fact a rejection of Chinese racial politics as espoused by MCA and its junior Chinese partners in BN.

If the Chinese had wanted to engage in racial politics as usual surely they would have voted for the towkays and the cronies who have been the leading players in MCA politics during the past 50 years.
Thirdly, the Chinese cannot in any way be described as being anti-Malay. The majority of Chinese are anti-Umno but this is quite different from being anti-Malay.

This can be seen from the Chinese votes which went to Malay candidates from PAS and PKR. The trend of Chinese voting for Malays and other non-Chinese from the opposition even when there is a Chinese BN candidate is a clear signal that they want the changes and reforms proposed by the opposition.

Handouts dished out by BN to Chinese schools and Chinese temples or angpows paid out to Chinese voters may have worked in the past but no longer now.

While many Malay voters will feel obligated to vote for BN after being provided with goodies, the Chinese will happily accept them but vote the other way.

They see no moral issue at stake in doing so; and from the voting data that is available they are being joined in this rejection of election bribes by young Malays throughout the country.

What do Chinese want
What are the specific changes that the Chinese want? In my social work I have found that the most important concern of the Chinese is fairness in the system – especially in education, business and the civil service.

Most Chinese are rational, adaptable and self-reliant which accounts for their ability to survive in even the most challenging of conditions.

Even though they have been against the NEP, they have lived with its discriminatory implementation for the last 40 years in the belief that the system of preference for Malays in economy and education would come to an end once the Malay share of the economic and educational pie has reached a reasonable proportion.

Never mind that the NEP was supposed to end in 1990 as first promised by the BN. The Chinese were willing to live with its extension for another 10 years beyond 1990.

Even after 2000, the Chinese were prepared to tolerate yet another 10 year extension of the NEP.
Today, 23 years after the NEP was to have ended, Chinese patience has run out and the sense of betrayal by the MCA and other Chinese parties has reached its peak.

The Chinese young and middle aged constituencies have had enough of what they view as political eunuchs and opportunists leading the MCA and Gerakan.

Moreover, they have no faith or trust in the country’s broken socio-economic system which is dominated by Umno and which has not only divided Malaysians but also held back our economic advancement.

Fair and open competition with due regard given to need and merit irrespective of race so that their young children can have a real future to look forward to, good governance so that the economy can grow to reach the levels of South Korea, Taiwan and Singapore – this is what the Chinese want.

Can the leopard change its spots?

Until the BN changes direction on educational scholarships, civil service jobs and promotion, permits and licenses, GLC employment, and the other sectors of Malaysian life in which the NEP has penetrated; until reforms are introduced to fight corruption and ensure a higher standard of life than what is presently the case, I can confidently predict that the Chinese votes will not be returning to the BN.

Can the BN leopard change its spots? There is little evidence that this can or will happen. In fact, some of the newly appointed ministers in Najib’s new cabinet are continuing to beat the drum on the politics of hatred and revenge.

Newly-appointed Home Minister Ahmad Zahid Hamidi has now said that Malaysians who are unhappy with the country’s political system should leave the country.

Zahid must be made to withdraw these irresponsible and provocative remarks which in the Malay papers and media will be seen as targeted mainly at the Chinese.

Otherwise it will be clear that Umno and BN have not learned anything at all from the elections – just the need to continue with or condone racist and hate politics.

Koon Yew Yin is an investor and philantropist. He is the founder IJM Group, Gamuda and Mudajaya.

Friday, May 10, 2013

A Malaysian Guide to Home Buying Fees & Charges [Infographic]

Like any other country, buying a house and taking a home loan / mortgage in Malaysia involve legal fees & charges - which many people fail to take into consideration especially when they’re buying a property for the very first time.
So to all Malaysians buying your dream houses right now, allow iMoney to show you ALL the fees and charges involved when you buy a house or apply for a home loan. To top it off, we’ll also show you why you should fight for every 0.01% on your home loan interest rate (because the difference is immense)!

Lee Ching Wei, CEO of iMoney.myAbout Author
Ching is the CEO and co-founder of iMoney, a leading price comparison website in Malaysia. Prior to iMoney, he was an investment consultant, advising clients ranging from $5 million to $500 million on investment related matters. He is also a CFA & CAIA Charterholder, two prestigious professional qualifications in the finance field.

Saturday, May 4, 2013

Bursa slips below 1,700-point level

Bursa Malaysia lost as much as 28.18 points yesterday ahead of the
13th General Election, but analysts said it is in for a sharp rebound if Barisan Nasional (BN) were to win big tomorrow.(no,no,no I prefer aother sharp decline for UBAH!)


The FTSE Bursa Malaysia KLCI (FTSE BM KLCI) traded below its key psychological level of 1,700 points for most of the day as investors took profit ahead of the elections.

The index, which tracks the market’s 30 most capitalised companies, hit an intra-day low of 1,685.28 before easing by 18.69 points, or 1.09 per cent, to 1,694.77, its lowest close since Tuesday.

Affin Fund Management Bhd head of investment Amenudden Abd Hadi said a “big” BN win will clear some doubts and bring back assurances that the government’s economic transformation
initiatives will continue and be improved.

“If Pakatan Rakyat were to win, the market could experience a knee-jerk reaction as we do not know who will form the Cabinet.

“There will be no clear indication on the government’s leadership and direction in the first 100 days,” Amenudden said yesterday.

AmInvestment Services Bhd director of retail funds, Ng Chze How, said any surprises such as in the 2008 elections will result in some degree of volatility in the short term.

“Our economy and its fundamentals are okay but if the results of the elections are not as expected, the market will go through a consolidation period,” he said.

JF Apex Securities Bhd said the selldown yesterday was due to election jitters.

While the United States and European markets finished higher yesterday, the optimism failed to boost local investors’ confidence, it added.

Axiata Group, UEM Land, Malaysia Airlines and CIMB Group were the most actively traded shares yesterday.

UEM was also the top gainer, climbing eight sen to RM2.64 while Kuala Lumpur Kepong Bhd was the top loser after easing 64 sen to RM20.90.

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