TELEKOM,SUNRISE,SPSETIA, AIRASIA,F&N

Telekom Malaysia Bhd (T MK, Buy, TP: RM3.98) has so far spent RM1.3bn of the RM11.3bn allocated for the high-speed broadband (HSBB) project it hopes to launch by next March. Group CEO Datuk Zam Isa said most of the spending was to develop the core network and to secure international capacity. The next stage will be rolling out fibre optics for the last mile at
targeted geographical locations, which are high density areas within the Federal Territory and Selangor. Of the 95 exchanges nationwide to be covered by the intial rollout, to date physical work has been completed at four exchanges and in progress at 44 exchanges. (Starbiz)

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Telekom Malaysia Bhd (T MK, Buy, TP: RM3.98) has come under fire from The Malay Chamber of Commerce Malaysia (DPMM) for awarding contracts to foreign firms in the rollout of the high-speed broadband (HSBB) project. News reports said DPMM planned to write a formal letter to the Prime Minister about this, pointing out that contracts were awarded by TM to companies such as China’s Huawei and ZTE Corp as well as France’s Alcatel-Lucent, leaving outcompetent local firms. In response, TM issued a statement explaining that its decision to sign up foreign principal vendors for the HSBB project was because of the high technology involved and the equipment is not manufactured in Malaysia. TM said that as at the end of last month, it had awarded HSBB-related contracts worth RM1.2bn where more than 200 local vendors were involved, led by a RM600m contract for the fibre-to-the-home infrastructure which was awarded to local fibre optic manufacturers. (Starbiz)

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Sunrise Bhd (SUN MK, Buy, TP: RM2.85) expects to launch at least 2 real estate projects in the Klang Valley within its current financial year ending June 2010 and add to its unbilled property sales, which stand at some RM860m. The company also hopes to reduce its debt. After a shareholders’ meeting yesterday, executive chairman Tong Kooi Ong said the projects include its “28 @ Mont’ Kiara” (MK28) high-rise residential project along Jalan Kiara, within the upmarket enclave of Mont’Kiara. The launch of MK28 which comprises 460 condominium units, is scheduled for this December. Construction of MK28 is ongoing with completion expected 3 years from its launch date. The Office towers, which are intended for sale, have a net saleable area of about 550,000 sq ft and completion is expected within 4 years. (Financial Daily)\

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SP Setia Bhd (SPSB MK, Sell, TP: RM3.36) has acquired an additional five million shares or 10% equity interest in Setia Putrajaya Sdn Bhd from Abad KIlat Sdn Bhd for RM6.65m cash. Following the acquisition, SP Setia’s stake increased to 60% while the remaining 40% is held by Putrajaya Holdings Sdn Bhd. (Malaysian Reserve)

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AirAsia Bhd (AIRA MK, Buy, TP: RM1.80) officially signed an agreement regarding the deferring the delivery of eight of its A320 aircrafts with Airbus S A S which is initially due in 2011 on top of another eight aircraft announced last August. It is said that the delivery of the aircrafts have been pushed back to 2014 and 2015. With the deferment of the delivery of the eight A320s, the low cost carrier (LCC) has reduced the number of A320s it will take in possession of in 2011 from 23 planes to 15. However, no penalties were expected from the deferral but may impinge on its revenue growth rate. With the deferment of the 16 aircraft, Air Asia’s load factor, the ratio of passengers carried versus total passenger capacity is expected to grow between 10% and 15% over the next two years. Air Asia also added t hat the present low-cost carrier terminal did not have the sufficient room to cope with its fleet expansion. AirAsia continues to have doubts over the completion of the new LCCT in Sepang will be on time. Air Asia also said that it sold four B737s and took delivery of 14 A320s in 2009, and was looking to redeliver between 10 and 13 of the Boeing aircraft to lessors in 2010. Air Asia made its latest order of 25 A320s in 2007, with an option for 50 more, which makes it the largest customer for the A320s. Air Asia closed at RM1.30 per share yesterday, down one sen with
2.6 million shares done. (Financial Daily)
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Fraser and Neave Holdings Bhd (F&N) is targeting annual revenue of at least RM3.8bn compared with RM3.6bn achieved in the year ended Sept 30, 2008 (FY08). For FY09, it expects about 5.6% rise in revenue, or RM200m, over FY08. CEO Tan Ang Meng said the target could be achieved with the increasing demand for its products as well with its plan to produce more types of drinks next year and its new mineral water bottling plant in Bentong. (Starbiz)

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