CIMB shares stumble, speculation of EPF’s next move rife

Published: 23 October 2014

- See more at: http://www.themalaysianinsider.com/business/article/cimb-shares-stumble-speculation-of-key-shareholders-next-move-rife#sthash.RI9oxBTq.dpuf

Shares of Malaysia's second-biggest bank CIMB Group Holdings Bhd dropped today after local media reported that the Employees Provident Fund (EPF), a key CIMB shareholder, may be forced to cut its stake to push through a planned merger.

Analysts say the stock market views the merger of CIMB, RHB Capital Bhd and Malaysia Building Society Bhd (MBSB) as a negative for CIMB, which they fear would be valued too cheaply. The amalgamation of the lenders would create Malaysia's largest bank which financial sources have said could have a market value of US$22 billion (RM72 billion).

CIMB could be valued as high as two times book value based on its growth potential, regional presence and asset quality, but the current deal values CIMB at only 1.7 times book value, according to the analysts. Any sign that the merger may go through would weigh on CIMB's stock, they say.

The stock exchange Bursa Malaysia barred the EPF from voting in the proposed merger because the state pension fund is a major shareholder in all of the banks, according to filings on Tuesday. The EPF, which bankers say is in favour of the merger, owns about 14.5% of CIMB, 41% of RHB and 65% of MBSB.

Local media reported that the EPF may reduce its stake in CIMB, thereby removing the issue of the fund's conflict of interest in the merger.

"There is a lot of speculation in the Malaysian press about what EPF will do next. A lot of that is not correct," said a source close to the merger talks, adding that at this stage, the EPF is unlikely to sell out of CIMB.

Kelvin Ong, a banking analyst at Kuala Lumpur-based MIDF Research, told Reuters that it would not be suitable for the EPF to circumvent the bourse's ban, referring to local media reports.

As of 0242 GMT, shares in CIMB fell 0.78%, RHB dropped 0.35%, while MBSB declined 1.92%. The benchmark stock index rose 0.51%.

The move by the stock exchange has given other investors in the banks more clout and thrown some doubt on the deal's prospects.

Abu Dhabi-based Aabar Investments and OSK Holdings Bhd, the second and third-largest shareholders in RHB, will now have a bigger say in the deal.

Both investors would see their combined voting power in the lender increase to 53% from 31% now that the EPF is barred from voting.

The proposal is for CIMB to enter into a share swap deal with RHB, the country's fourth-biggest lender. CIMB shareholders would own 70% of the merged entity and RHB shareholders would own the rest.

In tandem, the Islamic banking arms of CIMB and RHB would then acquire MBSB to form a mega Islamic bank.

"The deal is relatively in favour to the shareholders of RHB, and not CIMB," Pong Teng Siew, head of research at Kuala Lumpur based Inter-Pacific Research, told Reuters. "Although it sounds like RHB is taking over CIMB, it is actually CIMB buying their assets, and at a premium."

The three banks said they were aiming to sign a agreement in early 2015 and hoped to complete the deal mid-year. – Reuters, October 23, 2014.

- See more at: http://www.themalaysianinsider.com/business/article/cimb-shares-stumble-speculation-of-key-shareholders-next-move-rife#sthash.RI9oxBTq.dpuf

Broad sell-off on Bursa Malaysia -- The Star

I consider myself very daring at this point of time still trade the stocks.Oh, No! I am actually changing counter and fighting together with our Mr ONG!

 

Broad sell-off on Bursa Malaysia

Friday, 17 October 2014

By: JOSEPH CHIN

 

 

KUALA LUMPUR: Fund selling of index-linked stocks on Bursa Malaysia saw nearly 20 points erased from the FBM KLCI while the broader market came under pressure with 1,001 counters in the red.

 

The selling pressure saw the KLCI closing down 19.07 points or 1.07% to 1,767.77 yesterday – the lowest since Sept 19 and it is down 5.31% year-to-date.

 

Declining counters beat advancers 15 to one or 1,001 to 64, reflecting the cautious market sentiment.

At press time, key European markets were in the red while regional markets posted losses of between 0.25% and 2.22% with Japan’s Nikkei 225 the worst performer.

 

Reuters reported the Euro STOXX 50 Volatility Index surged to 35.5 yesterday, its highest level since mid-2012, signalling a sharp rise in risk aversion on the back of worries over the strength of the global economy.

Malaysia’s stock market, which had been underpinned by oil and gas stocks, came under pressure also as weaker global growth saw oil prices sliding. At 5pm, US light crude oil fell US$1.28 to US$80.50 and Brent lost 62 cents to US$83.16.

 

Oil and gas heavyweight SapuraKencana Petroleum Bhd fell 25 sen to RM3.16 in active trade.

The double whammy was also from the weaker ringgit, which was trading at 3.2835, the lowest since April 2014.

 

Insurers and banks were among the major losers. Allianz Malaysia Bhd fell 46 sen to RM10.84 and Syarikat Takaful Malaysia Bhd was down 42 sen to RM11.38. CIMB Group Bhd fell 29 sen to RM6.19, RHB Capital Bhd 15 sen lower at RM8.36 and Malayan Banking Bhd lost 13 sen to RM9.45.

 

BIMB Securities Research, had in its strategy report, said foreign fund flows had been quite erratic this year purely dictated by the expectations in the United States.

 

“After some nominal movements during the June/August period, foreign outflow gathered in September when a whopping RM1.5bil exited the local bourse.

 

“At time of writing, foreign outflow remains evident of around RM300mil thus ramping up total net outflows to RM3.5bil year-to-date. Looking ahead, we reckon foreign fund outflows to persist as there is still an ample amount of short term ones in the local bourse estimated to a tune of RM16bil,” it said.

 

BIMB Research said the recent market selldown did not bode well for the local market as most investors preferred to wait and see.

 

“Meanwhile, we believe any absence of window dressing activity during the quarter may see the KLCI ending 2014 on a flat note,” it said, adding its fair valuation for the KLCI was 1,830.

 

The research house believed there could be some year-end buying hence its liquidity induced target for 2014 at 1,900.

 

“As for 2015, we have a preliminary target of 1,960 premised on 16.5 times price-to-earnings and a 10% earnings growth,” it said.

 

Bull run takes Bursa to record high

can it extended till pre and post chinese new year period? better log in some profit( if there is any!)

 

KUALA LUMPUR: Bursa Malaysia continued its bull run this week by closing at an all-time high yesterday, powered by select blue-chip gains as investors rode on positive external sentiments.

The FTSE Bursa Malaysia KLCI (FBM KLCI) gained 16.96 points, or 0.9 per cent, to settle at 1,861.06 points, surpassing the previous high of 1,850.9 recorded on December 17.

In its research note, JF Apex Securities Bhd said FBM KLCI’s gains were buoyed by the inspiring performances in the United States and Asian markets amid an improvement in the US labour
market.

Affin Investment Bank Bhd vice-president and head of retail research, Dr Nazri Khan, told Bernama that the improving market is a good sign as traders anticipate next year to be a good year.

“This is more than just window-dressing. This is fund accumulation in anticipation of a stronger year,” he said.

Meanwhile, Mercury Securities head of research Edmund Tham said the FBM KLCI uptrend did not reflect the broader market as the trading volume was low and buying was more focused on index-linked counters.

“It’s selective window-dressing in blue chips and key heavyweights, not the whole market,” Tham said.

Market volume yesterday rose to 1.18 billion shares worth RM1.28 billion from 905.01 million shares worth RM818.25 million on Thursday.

Gainers thumped losers 496 to 261. Top gainers included Kuala Lumpur Kepong Bhd, which surged 50 sen to RM24.60, Tenaga (46
sen to RM11.60), PPB Group (26 sen to RM15.96) and Petronas Gas (20 sen to RM23.98).

Malaysia to slash CPO export tax

Finally something is coming but will it be too late ?
Malaysia to slash CPO export tax

OOI TEE CHING and ZAIDI ISHAM ISMAIL

MATCHING INDONESIAN GAP: Minister to submit proposal on reducing rate to between 8pc and 10pc tomorrow
THE government plans to slash crude palm oil (CPO) tax to match the margin between crude and refined oil with that of Indonesia so that refiners here are better able to compete with rivals there.

Indonesia and Malaysia are the world's top two CPO producers respectively.
Plantation Industries and Commodities Minister Tan Sri Bernard Dompok said he will present to the Cabinet a proposal tomorrow to lower the CPO export tax to between eight and 10 per cent from the current 23 per cent.

"I think this will put us in a very much competitive position as the margin between crude and refined (palm oil) will match the 13.5 per cent tax gap in Indonesia," he said at the ministry's get-together with the media here yesterday.
In the last three weeks, CPO prices had plunged to below RM2,300 a tonne, its lowest in a year.
To stem falling prices, Dompok said the reduction of the CPO tax should make it easier for refiners in Malaysia to become more competitive in the market.
When the tax gap between crude and refined palm oil in Malaysia matches that of Indonesia, refiners here would stand a better chance to buy up more of the commodity and reduce the current high stock levels in the country.
As refining activities pick up, players would be able to reap economies of scale and make some money to stay in the business.

The minister also noted that for this move to be effective, there has to be curbing exports of duty-free CPO as well.
"Out of the quota of five million tonnes of duty free CPO we've allowed to be exported, only half has been utilised. I want the companies which have not used up their quotas to surrender back the approved permits," he added.

Investor may shift to stocks with rise in rpgt

Investors may shift to stocks with rise in RPGT
http://www.btimes.com.my/Current_News/BTIMES/articles/PROP13/Article/index_html


THE planned rise in the Real Property Gains Tax (RPGT) to curb speculative activities on properties and avoid a property bubble could return investors to the stock market, say analysts.
Under the 2013 Budget, the government has proposed a review of the RPGT. Effective January 1 2013, RPGT will be imposed on profits for the disposal of properties within two years of buying at 15 per cent, and 10 per cent for those sold in the third to fifth year.
The idea of raising the RPGT is to discourage people from buying and selling houses for quick profit. RPGT is also another government's source of revenue.
Properties held longer than five years are not subject to RPGT. Also, disposals of properties between husband and wife, parents and children, grandparents and grandchildren are exempted from RPGT.
"I don't think the move to increase RPGT rate would dampen the market. In absolute terms, it is not large enough to discourage people from speculating in properties," said OSK Investment equity capital market head Gan Kim Khoon.
"However, we believe property investors will put off buying houses for a while and invest in the stock market as the property market has softened," Gan told Business Times.

Mah Sing Group Bhd group managing director Tan Sri Leong Hoy Kum said the rise in RPGT rate was within expectation and it will have less physical impact on developers as the construction period for new projects usually takes two to three years.
Leong also lauded the government's efforts in increasing housing affordability and reducing the cost of property ownership.
"There is strong demand for serviced apartments from 500 square feet and landed properties below RM1 million. The 50 per cent stamp duty exemption for first-time purchase of homes under RM400,000 will help to reduce the cost of purchasing a house by up to RM3,500," he said.
Master Builders Association Malaysia (MBAM) is, however, disappointed with the increase in RPGT rate for properties sold within a period of two years and after three years.
"We feel that the financial measures imposed by Bank Negara Malaysia to curb property market speculation is sufficient as it is," said MBAM president Matthew Tee in a statement



 


Read more: Investors may shift to stocks with rise in RPGT http://www.btimes.com.my/Current_News/BTIMES/articles/PROP13/Article/index_html#ixzz27pG1BJGP

No election(not yet ) and the blue chips drop...

DLADY 32.30 71 -0.500


BKAWAN 18.30 403 -0.380

KLK 22.90 2,086 -0.300

SHELL 9.70 120 -0.300

NESTLE 54.60 33 -0.280

CARLSBG 10.54 1,165 -0.260

JTIASA 8.58 1,198 -0.260

TWS 9.52 2 -0.240

TSTORE 2.07 1 -0.230

TAANN 6.07 1,026 -0.230

No annoucement for the coming election and the blue chips drop like hell ............
anyone dare to catch the falling knife for a quick rebound or another slow death.....

Update Foreign selling weighs on KLCI

more selling to come,beware and please check your holdings/stocks

Update Foreign selling weighs on KLCI
Written by Joseph Chin of theedgemalaysia.com
Friday, 26 August 2011 15:29

KUALA LUMPUR: Malaysia’s stock market continued to be battered by fund selling of bank stocks on Friday, Aug 26 but more worrying was the selling was extending to other fundamentally strong and smaller capitalised stocks also.

Analysts said the selling was from foreign funds on concerns about the economy slowing, worsened further by the US and European economies. As for the recent corporate results, they said the earnings were not that impressive also.

At 3.21pm, the FBM KLCI was down 22.22 points to 1,442.52. Turnover was 602.32 million shares valued at RM1.39 billion. Losers battered gainers 661 to 99.

It was HL Bank and HLFG’s turn to come under selling, down 42 sen each to RM12.36 and RM11.72. CIMB was the most active, falling 23 sen to RM7.02.

Other big capitalised stocks fell, with GENTING BHD [] down 33 sen to RM9.45 and KLK 24 sen to RM21.24 while Bumi Armada shed 26 sen to RM3.54 after its disappointing results.

Petronas Chemicals lost 22 sen to RM6.08, Airasia 16 sen to RM3.341 and MRCB nine sen to RM1.96

klse news of my interest

Fajarbaru landed a contract worth RM36.47 million from the East Coast Economic Region Development Council (ECERDC) for the CONSTRUCTION of the first phase of the Pasir Mas Halal Park in Kelantan. Yesterday, Fajarbaru said its unit Fajarbaru Builder Sdn Bhd had received the letter of acceptance from the ECERDC on Oct 19. It said the construction period was 15 months commencing from the date of possession on Nov 1 this year.

AirAsia extended the term of its cooperation agreement with Tune Talk Sdn Bhd (TTSB) up to July 27, 2011 to generate extra revenue and further boost the low-cost carrier's branding. Under the terms of the agreement, AirAsia would continue selling any unsold TTSB SIM cards; allow TTSB to continue redeeming unused e-gift vouchers; continue utilising the various advertising platforms; and continue AirAsia's entitlement to be remunerated with a 5% sale commission on total top-up sales.
TTSB is 23.42% owned by Tune Ventures Sdn Bhd, in which both Datuk Seri Tony Fernandes and Datuk Kamarudin bin Meranun are substantial shareholders. The low-cost carrier has also been in focus lately after several analysts raised their target price and earnings estimates on it. - Analyst raised their target price for the low-cost carrier following the release of its preliminary 3Q operating statistics on Tuesday, which saw revenue passengers kilometre (RPK) increasing 26.6% from a year earlier.

MBSB’s net profit for the nine months ended Sept 30, 2010 surged to RM133.21 million from RM66.91 million a year earlier, due mainly to higher loan and financing income, especially from the expansion of personal financing and higher other operating income from personal financing activities. These were partly set off by higher operating expenses and higher loan loss impairment, it said in a filing to Bursa Malaysia on Thursday, Oct 21.
MBSB chief executive officer Datuk Ahmad Zaini Othman said the company’s sustainability of its profit for the current quarter was due to the right strategies adopted.

DAIBOCHI, SEB,OVERSEA,BJ CORP,POS,SUPERMAX

from the EDGE
CIMB research rates Daibochi (target price: RM4.60) and Tomypak (target price: RM 4.66) as Outperforms -ability to pass on rising raw material costs to their customers -double digit pretax margins recorded for 4 straight quarters, trend should continue in 2010 -potential catalysts for both stocks 1) further margin expansion
2) contracts from major non-F&B companies
3) attractive dividend yields of 5-6%

××××××××

Seremban Engineering Bhd (SEB) to expand capacity -to raise RM17m from its IPO and use half of it to fund group's capital expenditure, expected to be listed in the 2Q -1 SEB shares for every 15 Success Transformers shares -rights issue price RM0.85 Ex date: 12 April 2010

**********
OSK Research says Oversea has a well established presence with over 30 years of culinary expertise, earning them recognition across the region.Targeting to open one new outlet in Ipoh and a café outlet in Klang Valley by 2011, Overseas plans sights to expanding abroad via a new licensing program to operate food service outlets under their brand name."For its listing on the ACE market, we think the offer price of RM0.23 at 7.8x FY10 EPS is fair given that its earnings is relatively smaller as compared to its peers which are trading in the range of 9-11 times price-to-earnings ratio," it said.
*********

BERJAYA CORPORATION BHD [ ] (BCorp), whose share price hit an 11-year high of RM1.77 in intra-day trade on Tuesday, announced on Wednesday, a net loss of RM155.12 million on the back of RM1.66 billion revenue in its third quarter ended Jan 31, 2010 (3QFY10), was mainly due to non-cash dilution effects amounting to RM150.46 million when its interest in BERJAYA LAND BHD [ ] (BLand) was diluted from 56.44% to 53.25% upon maturity of the BLand ICULS on Dec 31, 2009.
********

Pos Malaysia has recommended a first and final dividend of 12.5 sen per ordinary share less tax. The dividend was subject to shareholders' approval at its forthcoming AGM.Shares of Pos Malaysia rose to a four-month high of RM2.34 in intra-day trade after the government announced that Khazanah Nasional would divest its 32% stake. On Tuesday, Pos Malaysia also jumped 19 sen (+9.2%), its largest gain since May 18 last year.

**********

SUPERMAX CORPORATION BHD [ ] is expected to reap the immediate fruits from the US Healthcare Reform Bill as the glove maker is set to increase its export of medical examination gloves to the US market by 5% to 7% in FY10.
IOI Corporation Bhd may write back the impairment loss made in the financial year ended June 30, 2009 (FY09) on a joint-venture property project in Singapore towards the end of the current financial year since the value of property has risen in the island state

NEM steers away from race-based affirmative plan

Very ambitious and strong commitment to change
FROM THE EDGE FINANCIAL DAILY
KUALA LUMPUR: The New Economic Model (NEM) proposed by Prime Minister Datuk Seri Najib Razak takes a fresh approach to the country’s affirmative action and targets to more than double the income per capita of Malaysian households by 2010.( good!though I doubt it can happen so soon!)
In unveiling the proposals for the NEM prepared by the National Economic Advisory Council (NEAC), Najib said that the renewed affirmative action policy in the NEM would focus on raising income levels of all disadvantaged groups. ( this is the correct and long awaited move)
“It will focus on the needs of all our people — those living in the long houses in Sabah and Sarawak and poor rural households in Semenanjung Malaysia (Peninsular Malaysia), who often feel disconnected from the mainstream economic activity,” he said at the opening of the Invest Malaysia 2010 here on Tuesday, March 30.
According to the NEAC report, the focus of the NEM should be on the bottom 40% of Malaysia’s income strata — both individually and regionally as this group was disadvantaged and required special attention. This 40% of the households earn less than RM1,500 per month.
One of the three objectives under the NEM is to raise income per capita of Malaysian households that currently is US$7,000 (RM22,890) to US$15,000 by 2020, said Najib.
He said that it would be no easy task to achieve the goals set by the economic model but the rewards would be great.
Another salient observation from the NEAC report is that 80% of the workforce has education up to the Sijil Pelajaran Malaysia (SPM) level.( yes, a lot of dropouts even Chinese before SPM )“This is not in line with a high-income economy,” the prime minister said. “Creating a high-income nation will mean higher wages throughout the economy. Even wages for blue-collar workers will be based on them acquiring higher competencies, with their performance more readily benchmarked against international competitors. With more skills, comes greater responsibility, and better, higher paying jobs.”
The NEAC, headed by Tan Sri Amirsham Abdul Aziz, handed the report and recommendations for the formulation of the NEM to Najib. It would now be discussed by the various stakeholders in the government which include the component parties of Barisan Nasional, before being incorporated into the 10th Malaysia Plan scheduled to be unveiled on June 10 in parliament.
The final blue print for the NEM would only be firmed up in August when the 10th Malaysia Plan is approved.
Najib said that the renewed affirmative action policy would be market-friendly, merit-based, transparent and must be based on needs and not race.( hopefully WHATEVER POLICY CHANGE ,this time will be REAL!)
“For instance, one important consideration will be developing a competitive and transparent tender process, with set and clear rules for the whole bumiputera community, made of both Malay and other indigenous groups. This is set out as a common-sense enhancement of our policies for a new economic reality and where inclusiveness is a key component in our new economic model. In practice, this approach will mean greater support for the bumiputeras — a greater support based on needs, not race,” he said.
Apart from creating a higher-income economy, the other two principles of the NEM are sustainability of the economic activities and inclusiveness that will ensure no one is left out of the wealth-creation process.“
There is little value in pursuing a future based entirely on wealth creation. Pursuing growth that depletes resources and displaces communities will have dire consequences for future generations. This is a false and futile choice,” he said.( TRUE,VERY TRUE!)
He also realised that there would be some opposition to the NEM as it required a change in mindset.“
In the short term, there will be entrenched opposition. Some economic sectors may experience adverse effects. The process of change is never easy, and there will be painful moments. But for the long-term strength of our nation, we cannot afford to duck these issues any longer,” he said.In assessing the results of the NEM, Najib said that it should encompass the whole spectrum of measuring wealth such as equity ownership, other financial and non-financial assets, and access to wealth-creating opportunities such as long-term concessions and contracts.“
Even in measuring ownership, it should go beyond equity to include other properties, business assets such as retail, landed properties, commercial building, intellectual property and other services as well as managerial positions,” he said.
IMPLEMENTATIONS!
IMPLEMENTATIONS!
IMPLEMENTATIONS! PLEASE.

TIMBER STOCKS TO LOOK OUT FOR

Timber stocks, Proton in focus

Written by Joseph Chin
Monday, 29 March 2010 10:21

KUALA LUMPUR: Timber stocks advanced in the early session on Monday, March 29 on expectations of higher prices as demand from Japan picks up .
Hwang DBS Vickers Research, on the stock market outlook, said even though key US equity barometers ended flat on Friday, it said there may be incremental buying interest coming in to lift share prices, ahead of the much anticipated Invest Malaysia 2010 conference to be held on Tuesday and Wednesday."
Hwang DBS Vickers Research said there could be rotational trading activity in CONSTRUCTION [registerQuotes("CONSTRUCTION", "CONSTRUCTION_span");] counters today following a news article speculating that Bina Puri (and its unlisted joint venture partner UEM Group) is on the verge of clinching the third package to build a new low cost carrier terminal valued at RM1.1 billion. Bina Puri and its partner might have beaten other contenders such as Sunway Construction, MRCB, Fajarbaru and Gadang Holdings-PPC joint venture, it said.
Timber stocks were the gainers, with Cymao up 24 sen to 90 sen but with only 200 shares done, Subur Tiasa rose 24 sen also to RM2.52, Jaya Tiasa 17 sen to RM3.92, Lingui 16 sen to RM1.36, Ta Ann 15 sen to RM5.95 while WTK added 11 sen to RM1.34.( ANY CHEAP AND UNDERVALUED TIMBER STOCKS THAT HAVEN'T MOVE?) ---cut & paste from the edge

IOI, AXIATA, BINA PURI, ALAM MARTIN, UNISEM

IOI Corp: IOI refutes NGO’s claim on unsustainable plantation
IOI Corp Bhd (IOI MK, Hold, TP: RM5.21) has rebutted the allegations of unsustainable plantation activities in West Kalimantan, Indonesia, by Western non-governmental organisation Milieudefensi. Milieudefensie, the Dutch branch of the international organisation Friends of the Earth, in a Mar 15 report, made several allegations including instances of potential land conflict, unauthorised plantation development on forest land, encroachment on peat land and open burning. IOI said a thorough investigation into all the allegations established that Milieudefensie’s field research had been highly selective and limited. “A clear action list and timeline has been set by IOI to address the remaining points raised by Milieudefensie,” IOI added. (StarBiz)

Axiata: Indonesia’s XL share sale nets US$554m
Malaysian telecoms firm Axiata (AXIATA MK, Hold, TP: RM4.15) has raised 5.1trn rupiah (US$554m or RM1.8bn) from the sale of shares in its Indonesian unit XL Axiata, XL’s president director said. Axiata is reducing its stake in XL Axiata, Indonesia’s No.3 mobile phone provider, to 68.5% through the share offering from currently 86.5%, in order to increase the free float and improve liquidity. The 1.53bn shares in XL Axiata were priced at 3,300 rupiah a piece, at the top end of the indicated range, and the share offering was 3 to 4 times oversubscribed, XL Axiata president director Hasnul Suhaimi said. (Financial Daily)

Bina Puri: RM1.1bn LCCT job almost in the bag
Bina Puri Holdings Bhd, together with its joint-venture partner UEM Group Bhd, is close to securing the third package of Malaysia Airport Holdings Bhd’s (MAHB) new low-cost carrier terminal (LCCT) worth some RM1.1bn, sources say. The JV is expected to receive the letter of award soon. The new project would be a boost to Bina Puri’s future earnings and order
book which currently stands at RM2.3bn, stretching over the next three years. (The Edge)

Alam Maritim: Bags charter contracts worth RM83.2m
Alam Maritim Resources Bhd said its unit Alam Maritim (M) Sdn Bhd has landed two charter contracts totalling RM83.16m from unidentified established oil majors to provide an accommodation vessel and an accommodation work barge. The three year charter for the accommodation vessel had a contract sum of about RM39.96m after which there is a two year
option to extend the charter on a yearly basis. The charter contract for the accommodation work barge had a contract sum of about RM43.2m, with a primary period of 13 months with options to extend for two more years. (Malaysian Reserve)

Unisem: US$60-70m for capex
Semiconductor manufacturer Unisem (M) Bhd is allocating between US$60-70m (RM198.6-231.7m) as capital expenditure (capex) for its current fiscal year to expand capacity and capitalise on rising demand for electrical and electronic (E&E) components ad products. Unisem chairman and managing director Jon Chia Sin Tet said about 75% of the capex would
go to expanding production capacity at its manufacturing site in Chengdu, China by building more factories. The remaining 25% will be used to augment the assembly and test capacity at its factories in Ipoh, Malaysia and Batam, Indonesia. “We will embark for organic growth in 2010 to 2012” Chia said. Unisem has no immediate fund-raising plans, Chia added.
(Financial Daily)

Bumi Armada: Talk of listing
Talk of an initial public offering (IPO) of T Ananda Krishnan’s oil and gas support services company, Bumi Armada Bhd, has surfaced again, after years of speculation. Parties familiar with the situation said some investment banks, both local and foreign, have been pitching for the advisory, placement and underwriting work for Bumi Armada’s IPO. Leading the pack, they said, is CIMB Investment Bank. However, other industry sources have not ruled out a sale of part of the company to private equity players, instead of the IPO route. (StarBiz)

Alliance: Shortlists 8 for CEO post
Alliance Bank Malaysia Bhd is considering a candidate from among eight individuals to replace Datuk Bridget Lai as its chief executive officer (CEO), sources said. The bank hopes to send the name of the chosen candidate to Bank Negara Malaysia for approval before the end of next month. Out of the eight candidates, three are Malaysian, three Singaporean and the rest foreigners from other countries. Alliance Bank is also on the lookout for senior management as it looks to partially reorganise the bank's management structure. (BT)

AXIATA, TM & OTHER BUSINESS NEWS

Axiata: XL bookbuilding favourably received
The bookbuilding exercise of PT XL Axiata Tbk, Axiata Group Bhd’s (AXIATA MK, Hold, TP: RM4.15) Indonesian operations, has been received favourably by investors, according to a news report. According to FinanceAsia, the shares of XL have received much interest because of the indicative price range was set at a steep discount to Indonesia’s number two mobile company, PT Indosat Tbk. Quoting sources, FinanceAsia said the order flow was bolstered by the fact that the deal would be open to qualified institutional buyers in both Malaysia and Indonesia, which are not typically tapped for international offerings. (Financial Daily)
**********

TM: To announce UniFi pricing
Telekom Malaysia Bhd (TM) (T MK, Hold, TP: RM3.54) will announce its much-anticipated pricing structure for its nextgeneration high-speed broadband service, “UniFi”, which was launched with the promise of a “world of faster, richer and more reliable online experience.” TM Chairman Datuk Dr Halim Shafie said the pricing would be made available on TM’s
website. (Financial Daily)

*******
Plantation: Malaysia to launch long delayed biofuel mandate
Malaysia has asked petroleum companies to bear the extra cost of selling diesel blended with palm oil from June next year to kickstart sales of the green fuel after a four year delay. Commodities Minister Tan Sri Bernard Dompok said that the green fuel, a blend of 5% palm and 95% diesel, will be introduced in stages in the central states on the mainland. Eventually, the mandate will be extended to other Malaysian states and will take up half a million tonnes. Dompok said the government will bear the cost of developing six petroleum depots with blending facilities at a cost of RM43.1m. (Financial Daily)
*******
Telecommunication: Lower broadband rates from Telekom and more community internet centres Prime Minister Datuk Seri Najib Razak announced six initiatives to encourage broadband usage among Malaysians, including a reduction in rates on broadband packages from Telekom Malaysia. The initiatives will benefit some 17m internet users in the country and boost broadband coverage. The measures would be implemented under the National Broadband Initiative (NBI). Among the initiatives are to set up community broadband centres at a cost of RM60m, to have e-kiosks at community centres and sub-district offices at a cost of RM4m, to set up 873 new telecommunications towers, and Telekom to make broadband packages together with netbooks with rates reduced from RM50 to RM38 a month. (NST) ( we are waiting far too long.)
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Banking: BNM to issue 7 more banking licenses
Bank Negara Malaysia (BNM) will issue seven more banking licences – five for conventional banking and two for Islamic banking. Governor Tan Sri Dr Zeti Akhtar Aziz said the central bank was in the final stage of assessing the applicants which comprised not only global banks but also Islamic insurance companies. The five conventional licences would be issued to those from Asia, Europe and the Middle East. “Sometime in May or early June, the announcement will be made,” she said. (Financial Daily) （good, more the better.)
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Economy: Khazanah and EPF to hasten GLCs divestment
The government has directed Khazanah Nasional Bhd and the Employees Provident Fund (EPF) to hasten the divestment of their equity holdings in government linked companies (GLCs) to make the capital market more attractive to foreign fund managers, Prime Minister Datuk Seri Najib Razak said. However, he said the reduction of holdings in GLCs by the government’s investment arm and EPF would not undermine national interest as it was protected by the government holding a golden share in strategic investments as well as regulators keeping an eye on what the companies do. (Financial Daily) (sure or not ?then better look out for small and medium size glc company。）
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Economy: Economy could grow up to 5.5%, says BNM
Bank Negara Malaysia (BNM) expects the economy to grow between 4.5% and 5.5% this year with higher consumer
spending, increase in business investment and improvement in exports to Asia. Furthermore, there is potential upside for
the economy to surpass the projection as gross domestic product (GDP) in the first quarter of 2010 itself is estimated to
surpass that of fourth quarter last year, according to BNM Governor Tan Sri Zeti Akhtar Aziz. The projected local growth in
2010 is based on the expectation of a “gradual and uneven” global economic recovery which is still facing downside risks
mainly in the advanced economies. (Malaysian Reserve)
3

MAH SING, ALLIANCE, EONCAP, HO HUP,MASTEEL & other business news

Mah Sing: On track to meet RM1bn sales targetMah Sing Group Bhd is on track to achieve its RM1bn sales target this year, having hit sales of RM516m in the first three months. Managing director Tan Sri Leong Hoy Kum said the achievement was three times the RM170m sales registered in the previous corresponding period. He said the company had gone on an acquisition trail last year to secure prime landand expected to see some results this year. The group has landbank with a GDV and unbilled sales of about RM6bn, which provides earnings visibility for about six to eight years. (StarBiz)( This is the stock I hold for quite sometime, somehow attached to its good news,finding it difficult to let go!)
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Alliance: Two more top executives quit A month after Alliance Bank Malaysia Bhd group CEO Datuk Bridget Lai resigned her position, two other top executives have submitted their resignations. In its confirmation, Alliance Bank said the two were Sachi Ratnajoothy, executive vicepresident/ CEO of Alliance Investment Bank and head of financial markets at Alliance Bank, and Lok Eng Hong, the head of dealing, equity markets at Alliance Investment Bank. “We confirm that Sachi and Lok have recently tendered their resignations from the bank for personal reasons to pursue their own interests,” it said. (StarBiz)( resignations again!)
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EON Cap: BNM clears directors’ resignationEON Capital Bhd confirmed the resignation of two of its independent directors, including its chairman, Tan Sri Syed Anwar Jamalullail, with immediate effect after obtaining clearance from Bank Negara Malaysia (BNM). According to its filing to Bursa Malaysia, the resignations of Syed Anwar and Yeo Kar Peng came into effect last Monday, Mar 22. In a separate statement, EON Cap said it had received BNM’s clearance for the resignations of its 4 independent directors. As such, the resignation of the two other directors Datuk Dr Mohd Shahari and Rodney Gordon Ward, has yet to come into effect. (Financial Daily)( resignations....)
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Ho Hup: Tan Sri Tong Yoke Kim emerges as substantial shareholderIn yet another twist to the Ho Hup Construction Co Bhd saga, Tan Sri Tong Yoke Kim who controls 19.3% of Bina Puri Holdings Bhd has emerged as a substantial shareholder in Ho Hup with 7.3% interest. According to a filing to Bursa Malaysia, Tong acquired 7.4m shares in Ho Hup in an off-market transaction on Mar 10, 7 days before the company held an EGM which saw the removal of seven directors and the effective control of the founding Low family. The emergence of Tong as a substantial shareholder in Ho Hup is bound to raise eyebrows, given that it had just crossed a major hurdle in resolving its boardroom tussle. (Financial Daily)( my once favourite stock in trading, missing the good timeloh.)
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Masteel: Second tranche of private placement at RM1.015 a shareMalaysia Steel Works (KL) Bhd (Masteel) has fixed the second tranche of its private placement shares which comprise 5.8m shares of 50 sen each at an issue price of RM1.015 a share. The issue price represented a discount of 3.82% to the five day volume weighted average market price (VWAMP) of its shares up to and including March 22, 2010. The issue price of its second tranche is the same as the price of its first tranche of placement shares, although this had represented a 7% discount to the five day VWAMP up to and including March 2. (Financial Daily)（out of the steel's stock, I had never touch masteel,always bypassed it to choose cscsteel, annjoo, kinsteel)
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Construction: Three Acts to be amended by 2011 Three Acts in the construction industry will be amended by early 2011 following liberalisation of the services sector, Works Minister Datuk Shaziman Abu Mansor said. The Acts are the Quantity Surveying Act 1967, the Engineers Act 1967 and the Architect Act 1967. The services sector is to be fully liberalised by 2012 to attract more foreign direct investments into the country and it is expected to contribute 60% to the gross domestic product. Shaziman said the Acts need to bestandardised for the benefit of all parties, such as standard guidelines on regulations for foreign companies in the local construction field. (Malaysian Reserve)
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Economy: PM sees higher FDI after coming admin reformMalaysia should see increased foreign direct investment (FDI) this year after the government implements administrative reforms, the country's Prime Minister Najib Razak said. The country's new economic model, to be announced later this month, would include unspecified administrative reforms that should result in a "marked improvement" in FDI, Najib toldan investment forum in Hong Kong. He also reiterated an earlier statement that Malaysia's GDP growth should hit 5% or more this year. The country's economy shrank by 1.7% last year. Najib is scheduled to unveil initial details of a new economic model to boost growth and win back foreign investment at the annual "Invest Malaysia" conference organised by Bursa Malaysia on Mar 30. (Financial Daily)

WAH SEONG, POS, KSL,HOHUP,MALTON

Wah Seong Bhd (WSC MK, Buy, TP: RM3.40) submitted its bid to buy over Italian company Socotherm SpA three weeks ago, said deputy managing director Giancarlo Maccagno. The wahresults of the tender, which has attracted four other parties,would be known by end-April. Maccagno declined to reveal the cost of the acquisition, which would be funded internally.
“We believe we are strong contenders for this bid as we are in the same business of pipe-coating and would derive tremendous synergies if both companies merged,” he said. “We are also bidding for RM5.3bn worth of projects,” Maccagno added. (StarBiz)
×××××

Pos Malaysia Bhd has set its 2010 key performance indicator (KPI) targets where it has projected a revenue of RM930m for the financial year ending 31 Dec 2010, a 3% increase over FY09’s achievement. Other KPI targets for the year include a dip in earnings before interest, taxes, depreciation, and amortization (EBITDA) to RM110m and lower return on assets
(ROA) of 3.3% to 4%. “The group’s growth for 2010 will be underpinned by strategic alliances with other postal operators and global integrators, higher sales of motor insurance and new financial services offered,” it said. (StarBiz)
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Templeton Asset Management Ltd’s unit Templeton Emerging Markets Group has emerged as a substantial shareholder with a 5% stake in KSL Holdings Bhd after taking up part of a placement of new shares by the property outfit. KSL announced the issuance of 35.1m shares at RM1.18 a piece on Feb 25. In a joint statement, Templeton Asset Management executive chairman Mark Mobius said the fund was impressed with KSL’s position as a leading Malaysian
property developer with a strong track record and an experienced management team. (Financial Daily)
******

Ho Hup Construction Bhd shareholders voted out all the directors linked to deputy chairman Datuk Vincent Lye Ek Seang and replaced them with a group that effectively help the founding Low family regain control. However, it is said that this may not be the end of the tussle and there may be more manoeuvrings including legal ones in the months ahead. 55.9% of shareholders voted to remove the seven directors. In their place, six new directors – Tan Sri Kamaruzzaman, Hew Thin Chay, Yusob Md Tasir, D Felix Dorairaj, Slamat Hamzah and Chow Seck Kai – were voted in. About 55.8% of shareholders voted to pass the resolutions. According to an observer, 118 shareholders, proxies and corporate representatives were present. (Financial Daily)
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Malton Bhd plans to develop a RM2.5bn commercial and residential project in Kuala Lumpur on a parcel of land owned by Ho Hup Construction Company Bhd. The proposed development would be carried out over 10 years, and is expected to comprise of shopping complexes, shop offices, office towers, service apartments and hotel. Malton’s unit Pioneer Haven
Sdn Bhd is solely responsible to meet the cost of the proposed development. Ho Hup’s unit Bukit Jalil Development Sdn will receive 17% of the gross development value with a minimum RM265m while the remaining 83% would go to Malton’s unit. (Malaysian Reserve)

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Top Glove Corp Bhd unveiled plans for two new factories costing RM70m to meet expected increase in demand after quarterly profit doubled recently. Dubbed “Factory 22” and “Factory 23”, the new facilities would be part of an on going expansion exercise to increase capacity by 8.3bn pieces a year once the expansion is completed by May 2011. Apart from
Factory 22 and Factory 23, other expansion plans includes adding more production lines in existing factories. (Malaysian Reserve)

WAH SEONG, HONG LEONG,TM, PHARMANIAGA,

Wah Seong: May buy pipe-coating business in Nigeria
Wah Seong Corp Bhd (WSC MK, Buy, TP: RM3.40) is in talks to acquire a venture in Nigeria to tap demand for its products amid increased exploration. The company may provide technical assistance and later take up an equity stake in Orleans Group, a pipe coating business based in the West African nation, deputy group managing director Giancarlo Maccagno said. Maccagno declined to reveal the cost of the acquisition, which would be funded internally as the company
has RM400m in cash reserves. Wah Seong may look at expanding its gas compressor business, he added. (Financial Daily)

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Hong Leong: Yet to revive EONCap bid
Rin Kei Mei has won shareholders’ support to appoint seven directors but it may be too early for him to declare victory as Hong Leong Bank Bhd (HLBB) (HLBK MK, Hold, TP: RM8.71) has yet to revive its offer to take over the group’s asset and liabilities. A HLBB official said the banking group was currently reviewing its plan to acquire EONCap. “Following EONCap’s EGM, HLBB is currently reviewing its position and thus will not at present be resubmitting its offer to acquire
the entire assets and liabilities of EONCap,” the official said. (Financial Daily)

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TM: Inks licensing deal with English FA
Telekom Malaysia Bhd (TM) (T MK, Hold TP: RM3.54) has signed a licensing agreement with the England Football Association to be the official England telco licensee in Malaysia. The partnership with the FA, which runs through to the end of 2010, will give TM the exclusive use of the England crest and England player imagery in the telco category in Malaysia. “This partnership provides us with a unique opportunity to create an exciting marketing campaign for our customers and football fans here in Malaysia” said TM chairman Datuk Dr Halim Shafie in a statement. (Financial Daily)

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Pharmaniaga: EPF denies plans to buy a stake
The Employee Provident Fund Board (EPF) has denied that it is interested in acquiring a part or the whole of UEM Group Bhd’s 87% stake in Pharmaniaga Bhd, as reported by an English-language daily. An official with the EPF said there was nothing further to comment as “this is not true.” Meanwhile, UEM Group said it was unable to comment on any speculation. Nevertheless, it is understood that several parties are interested in buying UEM’s stake in Pharmaniaga.
(StarBiz)

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Water: PFI of RM10bn for Klang River cleaning project
The RM10bn Klang River cleaning project, which is part of the river’s RM50bn rehabilitation and development project, is expected to be funded via a private financing initiative (PFI). Selangor Menteri Besar Tan Sri Khalid Ibrahim said that a detailed briefing on the project would be held on Mar 29. “We will come up with a detailed briefing whereby all the four
companies involved and the state will discuss the scheme and how to allocate the task of cleaning up the river,” he said. (Financial Daily)

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Water: PAAB to seal Perlis, Perak water deals by end-May
Pengurusan Aset Air Bhd (PAAB) will complete the takeover of water assets in Perlis and Perak by end-May as part of the national initiative to regulate the water services industry. “Things are moving very fast in these two states at the moment and we expect the agreements to be signed at least by the end of May,” a source said without divulging the value of the deals. PAAB has said it planned to wrap up the deals in all states by mid-year although CEO Ahmad Faizal Abdul Rahman said that “he didn’t like deadlines.” (StarBiz)

This is the page that I frequent most

THE EDGE

http://www.theedgemalaysia.com/business.html

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)
* * * * *
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)
* * * * *
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)
* * * * *
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)
* * * * *
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)
* * * * *
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)
* * * * *
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)

CIMB, PBB, SIME DARBY & OTHERS

CIMB Investment Bank Bhd, a wholly owned unit of CIMB Group Holdings (CIMB MK, Buy, TP: RM15.25) gets nod from
the Vietnam Securities Commission for its subscription of equity interest in Vinashin Shipbuilding Finance Company
Securities LLC, (VFC Securities). The approval was obtained on Feb 23, CIMB said in a statement to Bursa Malaysia. VFC
Securities will change its name to CIMB Vinashin Securities LLC with immediate effect. VFC is wholly owned by Vietnam
Shipbuilding Industry Group (Vinashin), the largest shipbuilder and an industrial conglomerate in Vietnam. (Financial Daily)
* * * * *
Public Bank Bhd (PBB) (PBK MK, Buy, TP: RM14.50) has no plans to raise fresh capital this year despite some quarters
expressing concern that its capital ratios may decline upon the implementation of enhancements to the Basel III framework,
said its chief operating officer, Leong Kwok Nyem. The Basel Committee announced that it had approved the consultation of a
package of proposals to strengthen global bank capital and liquidity regulations, dubbed as Basel III. Leong said that the bank
was comfortable with its capital levels. Its risk weighted capital ratio rose to 14.2% as at Dec 31, 2009. (Financial Daily)
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Sime Darby Property Bhd, a subsidiary of Sime Darby Bhd, (SIME MK, Hold, TP: RM8.30) is awaiting approval from the
state and federal governments for its proposed 10,861 acre Selangor Vision City (SVC) development. The SVC is
located along the Guthrie Corridor Expressway from Lagong to Bukit Jelutong, and 3,450 acres of the total 10,861 acres have
been developed. The entire SVC project will have an estimated GDV of RM10bn, and will focus on the Bukit Jelutong City
Centre and an environmentally-friendly township named Elmina East, which has an estimated GDV of RM6bn. (Financial Daily)
* * * * *
Bank Negara Malaysia (BNM) will raise interest rates in a measured, gradual way in order to keep supporting the
economy, governor Tan Sri Zeti Akhtar Aziz said. Zeti said that inflation pressures remained modest and the central bank
would not rush to withdraw policy support. “Interest rates will continue to be supportive of growth. Current rates were brought
down to these levels because of the extraordinary circumstances to avert a fundamental recession,” Zeti said. She also added
that a change to banks’ reserve requirements was not likely to be part of the normalisation process unless there is fundamental
situation of excess liquidity in the system. (Financial Daily)
* * * * *
The government will emphasize on promoting more domestic private investments through public-private partnership
(PPPs) under the 10th Malaysia Plan instead of depending on foreign direct investments to ensure future growth.
Minister in the Prime Minister’s department Tan Sri Nor Mohamed Yakcop said domestic private companies have upgraded
themselves to be at par with international standards and that it’s time to provide opportunities for local investors to support
sustainable economic growth. He added that the government will continue to place emphasis on infrastructure development to
propel the country’s economic transformation via private sector participation in PPP policies. (Malaysian Reserve)
* * * * *
Malaysia’s government said exports may grow this year at twice the pace it predicted earlier, citing rising global
demand for palm oil and electronics. Overseas shipment may increase 6% or 7% this year, more than a previous forecast of
3.5%, International Trade and Industry Minister Mustapa Mohamad said. “The recovering global economy would contribute to
increased demand for Malaysian exports such as electrical and electronic products, furniture, rubber products as well as
commodities,” he said. (Malaysian Reserve)
* * * * *

TELEKOM, MAS, SIME

Telekom Malaysia Bhd (TM) (T MK, Buy, TP: RM3.54) the country's dominant fixed-line operator, has finally revealed the pricing for its High Speed Broadband (HSBB) access to industry players, more than one year after the project was first announced. This means that service providers, including mobile operators, broadband service providers and pay-TV operators will now know how much it will cost them to ride on TM's fibre optics network to offer services like video-on-demand, Internet protocol television (IPTV), voice call and Internet surfing. It is believed that most of the industry players came away feeling that the pricing offered by TM was "good" and "reasonable", but remained concerned on how the prices will affect them in the long run. TM executive vice-president Rafaai Samsi gave an assurance that the company would not abuse its "power". The pricing comes in two forms: a one-time charge and a monthly recurring charge. It charges service providers one-time fees of between RM52 and RM55 for activation of each Internet port. On a monthly basis, it charges the service providers between RM100-200 per megabit per second (Mbps), in terms of bandwidth subscription. (BT)
* * * * *
Malaysian Airline System (MAS MK, Sell, TP: RM2.21) is seeking financing for 3 Boeing 737-800 aircraft according to its chief executive officer Tengku Datuk Azmil Zahruddin. MAS will receive three B737-800s this year with the first to arrive in October. Last week, MAS received the blessings of its shareholders to raise RM2.67bn from a rights issue mainly for a fleet expansion exercise. The company also got the approval of shareholders to spend about RM3.19bn on the acquisition of two B747s and two B777s from Penerbangan Malaysia Bhd and six new A380s. (Malaysian Reserve)
* * * * *
Sime Darby Bhd (SIME MK, Hold, TP: RM8.10) is in negotiations to acquire Sapura Resources Bhd’s BMW dealership held under wholly owned Sapura Auto Sdn Bhd, industry sources say. The price tag for the dealership is being bandied at some RM40m, adding that details of the acquisition are still being finalised. It is learnt that Munich based Bayerische Motoren Werke AG, the parent company of BMW, has to give the nod for the acquisition to go through. According to Sapura Resources’ annual report, this dealership and its assets have a net book value of RM24.8m. The RM40m price tag is likely to include inventories such as cars, parts and machinery. The sale of the BMW dealership will have huge impact on Sapura Resources, as the business is the core activity of the company. Sime Darby has established BMWdealerships in various parts of the region held under Auto Bavaria Sdn Bhd and has a 49% stake in BMW Malaysia Sdn Bhd, which is the wholesaler of BMW cars, spare parts, and accessories. (The Edge)
* * * * *
AirAsia X will temporarily suspend its flights to Abu Dhabi beginning Feb 21 in a bid to realign its fleet to cover priority areas. “We are temporarily suspending the flights to prepare for other flights especially to India but we will revert back to Abu Dhabi at a later date,” AirAsia X CEO Azran Osman-Rani said. He added that it wasn’t because of competition with Etihad
Airways the flights have been suspended. “We cannot be flying five times weekly to Abu Dhabi, we need more frequencies, better airplanes and capacity before we get back there,” Azran said. AirAsia X began flying to Abu Dhabi in November with load factors of over 65% using its A340 aircraft. The low-cost carrier’s A330 seats are not as comfortable and to add more flights or
use the A330 does not bode well for AirAsia X on that route, where passengers demand quality and comfort. It has embarked on a seat refurbishment exercise and would be grounding planes to fit the new seats. AirAsia X will get back to Abu Dhabi when the new seats have been fitted into its aircraft, according to a source. (Starbiz)
* * * * *
Wilmar International Ltd has shelved plans to spin off the group’s operations in China on the Hong Kong Stock Exchange after its original application lapsed. “The company has no current intention to submit a fresh listing application to the HKEX for the listing of Wilmar China,” Wilmar said in an announcement to the Singapore Stock Exchange. It noted that in
accordance with HKEX’s guidance letter, the exchange considers any new application submitted within three months of a lapsed application as a renewal/continuance of the original application. Wilmar did not elaborate. The PPB Group has an 18.35% stake in the Singapore listed company. (Starbiz)
* * * * *
DRB-Hicom Bhd plans to set up an automotive university college to produce skilled human capital for the industry. It told Bursa Malaysia yesterday it had formed a unit, HICOM University College Sdn Bhd (HUCSB), with an authorised capital of RM10m, or 10m ordinary shares of RM1 each, and paid-up capital of RM2 of two RM1 shares each. DRB-HICOM said the
university college would carry out the business of higher educational and vocational training institution, focusing on programmes to enhance the competency and skill of human capital for the automotive and automotive-related industries. DRBHICOM said the university college would complement its automotive business. DRB-HICOM said it foresaw itself contributing
towards making Malaysia as one of the leading education hubs for the region. (Starbiz)