29.10.2009 local business news

PT Bank CIMB Niaga Tbk’s, a unit of CIMB group holdings (CIMB MK, Hold, TP: RM12.18) net profit rose to 457bn rupiah in the 3Q ended Sept 30 compared with 433bn rupiah in the preceding quarter. Net interest income for the period grew marginally to 1.62 trillion rupiah from 1.61 trillion in the preceding quarter. For the 9 months ended Sept 30, CIMB Niaga reported a 19% jump in net profit to 1.15 trillion against 967bn rupiah a year ago. (Starbiz)

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IOI Corp Bhd (IOI MK, Hold, TP: RM4.80) is investing RM1bn to expand and upgrade its refineries and specialty fats plants in Malaysia and the Netherlands. The money will be sourced from shareholders. Yesterday, IOI Corp Bhd's shareholders approved a renounceable 1-for-15 rights issue of up to 421m shares priced at RM2.90 each that would raise RM1.22bn. IOI's single largest shareholder of 41% stake, Progressive Holdings Sdn Bhd, will buy all entitled shares. IOI's 1.3m tonnes per year refinery in Pasir Gudang will see expansion by 150,000 tonnes while 450,000 tonnes a year capacity to the Rotterdam refinery. (BT)

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Proton Holdings sees opportunities for a strategic alliance with luxury passenger car manufacturers with the engine capacity of 1800cc and above. This is in light of the Government’s announcement in its review of the National Automotive Policy (NAP) was that it would be lifting the freeze of the issuance of new manufacturing licenses for luxury passenger vehicles with engine capacity of 1800cc and above costing more than RM150,000 effective 1st of January 2010. Proton’s current main vehicles are sold with capacities ranging from 1.3 to 1.6-litre engine sizes. As stated by the managing director Datuk Syed Zainal Abidin Syed Mohamed Tahir, Proton’s aim was also to establish a strategic partnership with a globally established original equipment manufacturer (OEM) to enhance competitiveness in the market. He also said Proton was looking to offer new variants at competitive prices to improve its domestic sales. (StarBiz)（So proton going to fly soon!)

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Mah Sing Group Bhd has proposed a corporate exercise to raise RM103m through a private placement and a one-forfive bonus issue. The placement involves the issuance of 63m shares, representing 10% of its paid up capital while the bonus issue is for up to 151.286m shares. The placement is expected to be completed by the end of the year while the bonus issue is targeted to be completed in the first quarter of next year. Mah Sing said wholly-owned subsidiary Nova Century Sdn Bhd acquired about 10.4ha of freehold development land in the matured township of Selayang for RM41.65m cash or about RM36.66 per square foot. Another wholly-owned subsidiary, Sierra Peninsular Development Sdn Bhd, had entered into a sale and purchase agreement with Panasonic HA Air-conditioning (M) Sdn Bhd to buy about 7.84ha of prime land in Petaling Jaya for RM89m or about RM104.23 per square foot. The land has an estimated gross development value of RM838m and will be developed over five years. (Malaysian Reserve)( good news!waiting to accumulate when drop!)

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Iskandar Investment Bhd has teamed up with WCT Bhd to jointly develop and co-own 1Medini, the first residential development in Medini which has a gross development value of RM600m. According to their joint statement yesterday, the partnership, the first for Iskandar Investment with a local company, would be carried via their respective subsidiries Medini Land Sdn Bhd and WCT Land Sdn Bhd. The parties said 1Medini, scheduled for launch in mid2010 and to be fully completed by 2015, would comprise 1,332 condominium units and a 68,800 square-feet commercial area for local retail businesses. The first phase comprising over 300 units will be ready by 2013. (Financial Daily) ( iskandar related counters any good fundamental one?)

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As expected, the revised National Automotive Policy (NAP) did not bring about cheaper cars as the import and excise duty structure remains unchanged. However, the auto plan liberalised the higher-end segments of the car assembly market and improved incentives for component manufacturers. It also mapped out the abolishing of open approved permits (APs) by end-2015 and franchise APs by 2020. In tandem with the abolishment of open APs by 2015, the import of used cars and commercial vehicles will be prohibited by January 2016. To weed out the “kereta potong” (cut and assemble) menace, the government will prohibit the import of used parts and components by June 2011. Minister of International Trade and Industry Datuk Mustapa Mohamed also announced the “vehicle end of life policy”. Under the policy, cars that are 15 years and above will undergo mandatory inspection before the renewal of their road tax. However, this part of the plan has yet to be finalised. Of the 18 measures in the NAP, noteworthy was the liberalisation of the vehicle market of 1,800cc and above and priced RM150,000 and above on the road. Mustapa also said foreigners can own 100% of the manufacturing facility. Also of interest was the eventual abolishment of the AP method of importing cars. Open APs, which can be used to import cars and are given out to bumpiputra entrepreneurs, would be abolished in 2015 while the franchise APs which are brand specific would be eliminated in 2020. (Financial Daily)( as usual, local make cars going to gain。）
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