Reflections on Volume

Big volume without further upside equals distribution
Big volume without further downside equals accumulation

Volume tends to peak at turning points
Volume often precedes price movement
Volume is a relative study

Saturday, December 29, 2012

DiGi to expand network further

DIGI.COM Bhd, which has invested RM700mil to RM750mil on its telecommunication network this year, will further beef up its investment next year partly to drive its marketing ambitions to spur its mobile Internet business.
“Today, we have 3G sites covering about 60% of the population, and DiGi hopes to push it to about 70% in the first half of next year. For data, the coverage is about 95% of the population, including both 2G and 3G sites,'' he tells StarBizWeek in a recent interview.

For prepaid customers, he says, it plans to continue delivering “Internet for All” by providing the right plans for the different needs in the market, and build with Internet, among others. For postpaid, DiGi will focus on mobile Internet services, smartphones and roaming offerings.

Besides providing data access, Murty says the company will roll out packages with competitive pricing to various segments of the market that will involve both “above-the-line” and “below-the-line” campaigns regardless of the technology being deployed.

Among the successful mobile Internet campaigns rolled out by the company this year were the postpaid plan that offered unlimited Internet roaming at a flat rate when roaming in certain countries and the lowest tablet plans in the market at RM15 a month with Internet quota of 500MB for postpaid customers.

Its data revenue grew by 3.4% in the third quarter of this year compared with the second quarter (of this year) driven by strong mobile Internet usage, aided by higher take-up of its DG Smart Plans and smartphone bundles.

For prepaid users, one of the successful ones is the DiGi Easy Prepaid's Refreshed its Buddyz proposition that includes 24-hour free calls, SMS to three Buddyz and free Facebook access. DiGi is the only mobile operator to offer free FB access to prepaid and postpaid customers via Opera Mini browser.

According to Murty, plans are underway to expand the number of DiGi stores nationwide next year as part of company's strategy to meet the greater demand and needs of customers.


Wednesday, December 19, 2012

DiGi expects a 25% rise in smartphone customers

Kuala Lumpur (Dec 13, 2012): Mobile communications provider DiGi.Com Bhd expects to see a 25% rise in the number of its smartphone customers with the much anticipated iPhone 5 which will hit markets nationwide tomorrow.

Its head of internet and services product marketing, Praveen Rajan, said the latest iPhone is expected to strengthen the company's position as a market leader in the postpaid and prepaid segment.
Speaking at a media briefing here today, Rajan said DiGi's aim was to bring the internet to everyone and its main focus now was about making smartphones easier and more affordable for customers.
"The iPhone 5 happens to be one of the many devices we carry in the market, and it is also about bringing convenience to customers," he added. – Bernama

My TP for mum and bb.....haha


Wednesday, December 5, 2012

RHB Research: DiGi fair value at RM5.40

KUALA LUMPUR: RHB Research Institute is maintaining its fair value for DiGi.Com at RM5.40 as valuations are still not cheap at this juncture.

It said on Tuesday DiGi has largely sustained its revenue growth momentum while margins do not appear overly affected despite tougher competition.

"Management noted handset subsidies have become more aggressive in the last six months. While a risk to DiGi's EBITDA margins, we believe the risk should be controlled as management prefers to take a more rational and selective approach when subsidising handsets," it said.

RHB Research said despite lost revenue opportunities in 3Q due to prolonged post-swap optimisation, management maintained 2012 guidance of mid-to-high single digit revenue growth and stable EBITDA margins.

"There was some churn in postpaid due to the hiccup, and management will focus more on retention activities apart from acquiring new subscribers," it said.


My TP for mum and bb.....

Tuesday, December 4, 2012

MAS to add RM1b in profits in 2 years

Posted on 30 November 2012 - 05:37am
KUALA LUMPUR (Nov 30, 2012): Malaysia Airlines (MAS) aims to generate an additional RM1 billion in profits in two years, by re-negotiating its engineering supply and catering contracts, having a more fuel-efficient fleet, higher aircraft utilisation and turnaround time, said its CEO Ahmad Jauhari Yahya.
This would be met with just a 2 sen margin between revenue and costs. Its target is to bring revenue up to 22 sen, and costs down to 20 sen respectively.
MAS' revenue per available seat kilometre (RASK), a way airlines break down the measurement of revenue, currently stands at 20 sen, while its cost per available seat kilometer (CASK) -- how it breaks down costs -- is at 24.9 sen.
In comparison, a highly profitable airline like Singapore Airlines has a RASK of 27 sen.
"It sounds simple enough but a lot of work needs to be done," he told reporters after a luncheon with local fund managers organised by Maybank Investment Bank here yesterday.
Ahmad Jauhari insists that this time around changes made are structural changes, which will lead to sustainable operations of the national airline in the future.
Its revenue management team, for example, which now has a new head under Ahmad Jauhari's management, has become more sensitive to changes of ticket prices in the market. It is now mandated to react to market fares within six hours.
MAS is also in the midst of re-negotiating its large engineering supply and catering contracts, which make up RM1 billion and RM200 million costs per year, respectively.

Wednesday, November 28, 2012

MAS falls on delayed aircraft delivery

KUALA LUMPUR: Malaysia Airlines System Bhd's (MAS) share
prices dropped 18.8 per cent or 19 sen to 81.5 sen as at 10.05 am after economists anticipated negative impacts from the delayed re-delivery of 10 ageing Boeing 737-400 aircraft.

MIDF Research said MAS originally entered into an Aircraft Sale Agreement with Bank of Utah to buy back 10 existing Boeing 737-400 aircraft at US$6.4 million (RM19.5 million) per plane to avoid the impairment charge incurred in the re-delivery conditions imposed during the lease tenure.

"But now the ageing 10 aircraft will be utilised until the end of 2014 and this will not reduce the average fleet to 7.7 years from 12.2 years as planned before," it said in a research note today.

MIDF Research said in order to strengthen its balance sheet, the national carrier has unveiled a new fourth pillar of financing comprising share price par value reduction to RM0.10 from RM1 and new rights issues with gross proceeds of RM3.1 billion.

It said the cancellation of the RM0.90 par value will give a credit of RM3 billion to partially offset the accumulated losses in the balance sheet.

The rights issuance, targeted for completion in the second quarter of financial year 2013, will be utilised to pare down debt by RM777 million with the remainder for capital expenditure and working capital requirements.

Read more: MAS falls on delayed aircraft delivery

Seller’s Remorse Will Drive Stocks Higher Through Year End: Kilburg

Friday, November 16, 2012

Wednesday, November 14, 2012

Time to Buy Telco Stocks

Source: Bernama

Digi taps into M'sians for mobile instant messaging

KUALA LUMPUR (Nov 9, 2012): DiGi Telecommunications Sdn Bhd (DiGi) is reaching out to more Malaysians who cannot live without mobile instant messaging through an exclusive offer for DG Prepaid Smart Plan subscribers effective Monday.
"From Monday, the promotion offers subscribers an extended reload validity period and unlimited free data charges when using the WhatsApp Messenger, said DiGi in a statement today.
The mobile phone operator's collaboration with WhatsApp Inc has also given DiGi a competitive advantage in enabling customers to better enjoy the most popular mobile messaging service.
Its Head of Products (Consumer and Business) Ting Shiew Han said: "Our DG Prepaid Smart Plan is the first prepaid plan in Malaysia tailored for smartphone users."
He said with every six out of 10 phones sold in Malaysia being a smartphone, DiGi was committed to deliver even better value and more convenience to customers by giving a longer validity period and more value when they sign up for the package and reload.


Saturday, November 3, 2012

SapuraKencana awarded RM836mil jobs

KUALA LUMPUR: SapuraKencana Petroleum Bhd has been awarded RM836mil worth of jobs by Petronas Carigali Sdn Bhd and HESS Exploration and Production Malaysia BV.
The award is effective from October 2012 until April 2016, with the option to extend for another year. The award is expected to contribute positively towards the earnings and net assets per share of the SapuraKencana Group for the financial years ending Jan 31, 2013 to 2017.

Read also......from The Edge

Thursday, November 1, 2012

SapuraKencana secures RM135.8m EPCC contract

KUALA LUMPUR: SapuraKencana Petroleum Bhd has secured a RM135.8mil contract from HESS Exploration and Production Malaysia B.V. to provide its services to the North Malay Basin Field.

SapuraKencana said on Thursday its Kencana HL Sdn Bhd would provide the engineering, procurement, construction and commissioning (EPCC) of the Kamelia-A wellhead platform.

The platform would be used for the early production system of the integrated gas development project.

"The award comprises the provision of EPCC of a wellhead platform for Kamelia Field, which is part of the North Malay Basin, an area located approximately 300km offshore Peninsular Malaysia. The work is expected to be completed by the first quarter of 2013," it said.


Wednesday, October 24, 2012

‘Era of Uncertainty’ May Be Drawing to a Close

If economists, business executives and investors have been sure of one thing this year, it is that uncertainty — over economic policies, political leadership and central-bank actions — is largely to blame for the shambling global economic pace, spotty job growth and serial bouts of anxiety in financial markets.
But the bull market in "uncertainty" has likely peaked -- not that many have noticed amid the political noise and unsettled stock market, which is falling sharply Tuesday amid disappointing earnings and worries over Spain.


Saturday, September 29, 2012

Thursday, September 27, 2012

An Easy Way to Earn Big Returns — Penny Stocks

You may have noticed a lot of buzz lately about Penny Stocks.

Penny stocks are the common stocks of smaller public companies that trade for less than a dollar per share. Like other stocks, they are regulated by the SEC, but instead of trading on the major markets like the NYSE, they trade on “over-the-counter” markets, which are very accessible to the public.

Today, penny stocks are offering smaller investors a great opportunity to earn significant up-side on their investments, with relatively little risk.


Friday, September 21, 2012

DRB-Hicom raises sales target for Proton cars

KUALA LUMPUR: In a bid to establish Proton Holdings Bhd as the number one car maker in terms of sales this year, DRB-Hicom Bhd has raised the local sales target for the national car maker to 200,000 units for the current financial year ending March 31, 2013.

DRB-Hicom Managing Director, Datuk Seri Mohd Khamil Jamil said the conglomerate, which acquired Proton from Khazanah Nasional Bhd in January this year, believed that Proton has the ability to overtake the current leader, Perusahaan Otomobil Kedua Sdn Bhd (Perodua).

Mohd Khamil said prior to the takeover, Proton had an initial target of 167,000 units for the current fiscal year.

"From January to now, we have done about 100,000 cars. I am pretty sure about the target. Proton has a lot of unlocked potential.

"The main challenge to meet the target will be the revised lending guidelines by Bank Negara Malaysia. But we believe in the current models that we have," he told reporters after the company's Annual General Meeting, here today.

Mohd Khamil said DRB-Hicom aspires to establish Proton not only as an affordable car, but an international car.

"Nobody should buy Proton because it's cheap. The DNA of Proton must be changed. That is why we are raising the standards of the car. Proton aspires to increase quality while keeping cost down," he added.

He also said DRB-Hicom has in place several plans for the national car maker, which among all are to strengthen its domestic operations, rationalising its downstream and upstream businesses, building greater brand awareness, as well as unlocking its true value.

On Proton's loss-making sports car unit, Lotus, Mohd Khamil said DRB-Hicom has completed the operational review of the British sports car maker, and the conglomerate has laid out an immediate plans for Lotus.

"It will be far different from the plans that Lotus had before. The new plan will ensure Lotus will sustain for the next three years.

"We have to now present the plans to the bankers. We are hoping to finalise negotations with the bankers by the end of this year," he added.

Read more: DRB-Hicom raises sales target for Proton cars

DRB-Hicom to sell 30% Bank Muamalat stake?

KUALA LUMPUR: Malaysia’s auto-to-insurance conglomerate DRB-Hicom plans to sell 30 percent of its 70 percent stake in partly state-owned Islamic lender Bank Muamalat Malaysia, a source with knowledge of the deal said on Thursday.

Malaysia’s central bank last month gave the country’s ninth-largest Islamic bank, AFFIN Holdings, permission to enter talks with DRB-Hicom, which has been told by the central bank to reduce its stake to a maximum of 40 percent.

DRB-Hicom bought its 70 percent stake in Bank Muamalat from Bukhary Capital in 2008. The government’s investment holding arm Khazanah Nasional owns the other 30 per cent.

“The matter is in Bank Negara’s (Malaysia’s central bank) hands now,” the source told Reuters, adding that a deal should be completed by the end of the year.

DRB-Hicom, controlled by billionaire Syed Mokhtar Al-Bukhary, had tried to reduce its stake in Bank Muamalat with a sale to Bank Islam Malaysia last year and previously to Bahrain-based Islamic lender Al Baraka Banking Group.

Should the deal go through, Affin would emerge as Malaysia’s fourth-largest Islamic lender by assets.

Read more: DRB-Hicom to sell 30% Bank Muamalat stake?


Saturday, September 15, 2012

Friday, September 14, 2012

The Fed steps in, and stocks soar: Dow climbs 206

NEW YORK (AP) — The stock market staged a huge rally Thursday after investors got the aggressive economic help they wanted from the Federal Reserve.
The Dow Jones industrial average spiked more than 200 points and cleared 13,500 for the first time since the beginning of the Great Recession. The average is within 625 points of its all-time high.

The Fed said it would buy $40 billion of mortgage securities a month until the economy improves. It left open the possibilities of buying other assets and of buying long after the recovery picks up.
The central bank also extended its pledge of super-low short-term interest rates into 2015, and extended a program to drive down long-term rates.

It was the package known as QE3 — a third round of quantitative easing, in market-speak. And it was just what investors were hoping for.


Tuesday, September 11, 2012

Good times ahead for SapuraKencana: HwangDBS

PETALING JAYA (Sept 11, 2012): SapuraKencana Petroleum Bhd, which will be busy tendering for jobs by Petroliam Nasional Bhd (Petronas) these few months, is set to secure new fabrication and marginal field contracts in the second half of this year, HwangDBS Vickers Research Sdn Bhd said.

"Contracts in the pipeline include the Pan Malaysia hook-up commissioning jobs worth RM10 billion and Petronas' inspection, repair and maintenance contract, which may be worth up to RM800 million, as well as fabrication projects at the Samarang, Dulang and Bokor platforms worth over RM3 billion," the research firm said in a report yesterday.

"(Additionally,) Petronas is expected to award two risk service contracts for the Tembikai and Cenang marginal fields near Block PM314 off the peninsula and the award of these contracts, possibly by the fourth quarter of 2012, could be a catalyst," said HwangDBS.

HwangDBS believes that SapuraKencana is a top contender to bag major contracts from Petronas as it is the only player in the country that offers the full spectrum of services across the oil and gas (O&G) value chain.

Read more "Good times ahead for SapuraKencana"

Monday, September 10, 2012

SapuraKencana JV secures US$45m contract

KUALA LUMPUR: SapuraKencana Petroleum Bhd's joint venture SapuraAcergy Sdn Bhd has secured a US$45mil (about RM140mil) contract to provide a vessel in the Gulf of Mexico.

It said on Monday SapuraAcergy Sdn Bhd was awarded a contract to provide a vessel Sapura 3000 to Construcciones Maritimas Mexicanas S.A. de C.V. SapuraAcergy is a JV between SapuraKencana and Subsea 7 S.A.

"The award comprises provision of Sapura 3000 to undertake heavy lifts in the Gulf of Mexico region. The charter commenced on Aug 18, 2012 for a duration of 125 days," it said.


Friday, September 7, 2012

Dow Versus KLCI

Market Close Stocks End at Multi-Year Highs, Fueled by ECB

Stocks surged across the board to close at multi-year highs Thursday, propelled by a batch of upbeat economic reports and after ECB President Mario Draghi said the central bank agreed on a new bond-buying program.
The Dow logged its best close since December 2007, while the S&P 500 posted its best finish since January 2008.

The volatility index plunged more than 10 percent to close below 16.


KLCI Sharply lower on panic selling

BURSA Malaysia closed sharply lower on pa-nic selling after Standard and Poor's said it may cut Malaysia's sovereign credit rating if the government did not deliver promised reforms to cut spending to reduce its fiscal deficits.

The FTSE Bursa Malaysia Kuala Lumpur Composite Index (FBM KLCI) lost 23.02 points to close at 1,617.99. It hovered between 1,613.16 and 1,635.95 throughout the day.

The downtrend was dragged by losses in heavyweights Axiata and CIMB which fell 20 sen each to RM6.02 and RM7.54 respectively.

Read more... Sharply lower on panic selling

Wednesday, September 5, 2012

SapuraKencana Petroleum TP2.97

SapuraKencana Petroleum - Petrobras's surprise policy u-turn floats this boat

Date: 05/09/2012

Source : CIMB
Stock : SKPETROPrice Target: 2.97| Price Call: BUY
Last Price: 2.35| Upside/Downside: +0.62 (26.38%)


Wednesday, August 29, 2012

Hong Leong reiterates "buy" call on IHH

KUALA LUMPUR: Hong Leong Investment Bank (HLIB) has reiterated a "buy" rating on Asia's largest hospital chain operator, IHH Healthcare Bhd, with sum-of-parts derived target price of RM3.49.



Tuesday, August 28, 2012

UPDATE 1-Malaysia IHH Q2 profit soars on one-off gains, revenue jump

KUALA LUMPUR, Aug 28 (Reuters) - Malaysia's IHH Healthcare Bhd, the world's second-biggest listed healthcare provider by market value, posted a more than five-fold jump in second-quarter profit, mainly on consolidation of results from a Turkish hospital and gains from the sale of assets in Singapore.

The arm of Malaysia's state investor Khazanah Nasional Bhd is one of a small number of healthcare sector plays in the region, where rising incomes and an expanding middle class are boosting demand for better services.

IHH, which raised $2.1 billion in July in the world's third-biggest IPO so far this year, said net profit was 403.54 million ringgit ($130 million) in the three months ended June 30. Analysts generally don't provide quarterly profit estimates in Malaysia.

Revenue more than tripled to 2.70 billion ringgit from 815.97 million ringgit a year earlier, according to a stock exchange filing.

Net profit for the six months period ended June 30 rose nearly two-fold to 527.38 million ringgit, exceeding the 515.5 million ringgit full-year profit estimate of analysts tracked by Thomson Reuters I/B/E/S.


Monday, August 27, 2012

Systech ?

Wall Street Week Ahead: S&P to fly after wild ride to Wyoming

NEW YORK (Reuters) - The streak is over, but is the trend intact?

A six-week string of gains in the S&P 500 (^GSPC) ended on Friday amid shifting expectations for central bank stimulus. This week could bring clarity on that issue, and that could determine whether the recent rally that took the index to four-year highs will persist.

"The streak is broken, but the trend isn't, and I think the next major move on the S&P will push us up towards 1,450 or 1,500," said Mark Arbeter, chief technical strategist for Standard & Poor's in New York. "Small- and mid-cap stocks are near their all-time highs, and if they break those highs, I think that will prompt the market to really rip higher."

Still, the market could be in for a bumpy ride this week ahead of Friday's meeting of central bankers in Jackson Hole, Wyoming. Investors are looking for clues on whether Federal Reserve Chairman Ben Bernanke will announce a third round of quantitative easing.


Wednesday, August 22, 2012

Stay Bullish Until 2 Signs Say Otherwise: Pro

On Tuesday, pros were watching the market melt up take stocks to four-year highs, with the S&P (^GSPC) now more than 3 percent higher in August alone.

Although the action seems bullish, "The drawback to this most recent strength is that although we have achieved new cyclical bull market highs, the action may have pushed a good number of stocks into overbought territory " says Dan Wantrobski, director at Janney Capital Markets in a Reuters interview.

If stocks are overbought, is the market at an inflection point?

Trader Josh Brown says not yet - but it could happen at the drop of a hat.

And on CNBC's Fast Money Halftime Report Brown reveals market 'tells' that he'll be watching.

"First there's small cap strength (^RUT). As long as that continues the light is green to own stocks," says Brown.

"The second is participation. Watch new highs versus new lows and watch advances vs. decliners. That's how you know when to walk away."


Tuesday, August 21, 2012

Sunday, August 19, 2012

Affin makes its move

PETALING JAYA: Affin Holdings Bhd’s resolve to explore a possible acquisition of a stake in Bank Muamalat Malaysia Bhd seems to reflect an aspiration to become a bigger player, especially in the Islamic banking sector.

While news of Affin getting the authorities’ approval to start negotiations to potentially buy into Bank Muamalat had caught some analysts by surprise, there was no denying by market observers that a positive conclusion of the deal would up Affin’s game in the niche sector.

Kenanga Research, for one, which called the deal a potential synergistic acquisition, said in its report: “We believe Affin has identified Islamic banking as a growth area in which it wants to build its existing position in the medium to long term.”

“In our opinion, this is a good move and probably a natural progression, given that the acquisition of Bank Muamalat will be key to the group becoming a bigger player in Islamic banking,” the brokerage explained, pointing out that the potential acquisition would not only expand Affin’s existing branch network and asset and customer base, but it would also enable Affin to tap into Bank Muamalat’s existing business collaborations with DRB-Hicom Bhd, such as those in relation to Pos Malaysia Bhd and Proton Holdings Bhd.

Read more Affin makes its move
Read Affin Q2 net profit up on rise in income
Read Affin Financial Summary

Gravity-defying boom

SWEET SPOT: Malaysia’s economy helped by strong growth

KUALA LUMPUR: MALAYSIA has received the thumbs up from foreign analysts and media on how it manages the economy.

Analysts, both local and foreign were stunned on Wednesday following Bank Negara’s announcement that the country was growing at a much faster pace than anticipated.

The central bank backed this, when it announced a 5.4 per cent growth in economic activities between April and June, spurred by the investments in both private and public sector spending.

For the first half of the year, the economy clocked a 5.1 per cent growth.

The strong results, at a time when most economies in the world are suffering, immediately caught the eye of the foreign media.

In recent days, Malaysia’s economy has been described to be in a “sweet spot” helped by strong growth and a subdued inflation trajectory.

Read more: Gravity-defying boom - Top News - New Straits Times

Saturday, August 18, 2012

Friday, August 17, 2012

Re-rating in the works for MAS?

MALAYSIA Airlines (MAS) is still in the red and has been for the last six consecutive quarters.

But this time the losses were smaller compared with the corresponding quarter a year ago.

On Tuesday, MAS reported RM349mil net loss for the April-June 2012 period versus RM526mil net loss a year ago.

However, after stripping out the forex translation gains of RM173mil and derivative fair value adjustment of RM15.3mil, the airline's core net loss for the second quarter was only RM160.4mil.

Operationally, the loss also narrowed to RM101mil from RM443mil. Moving forward, the second half is generally a stronger period for airlines globally.


Thursday, August 16, 2012

Maybank IB raises MAS earnings forecast

Maybank IB Research has raised the financial year 2013-14 earnings forecast of Malaysia Airlines (MAS) by 5.5 per cent and 1.4 per cent respectively.
It took into account the management's latest capacity growth guidance and better fuel consumption rates due to a younger aircraft fleet.

"The earnings forecast is premised on a fuel price assumption of US$125 per barrel, which will be adjusted as required," it said in a research note today.

The research house is also positive on prospects of the national airline breaking even in the second half of the financial year 2012.

Read more: Maybank IB raises MAS earnings forecast

Thursday, August 9, 2012

IHH Healthcare makes global impact and is 2nd largest in the world by market capitalisation


In a previous interview with StarBiz, IHH managing director Dr Lim Cheok Peng said that the rich valuation for IHH was justified as the healthcare provider group had strong earnings and market growth prospects over the next five years.

Lim reiterated that in the pipeline were more than 3,300 new beds to be delivered and 17 hospital developments, which would be completed by end-2016.


Read more

Wednesday, August 8, 2012

Citigroup cautious on global equity markets in H2 on political factor

KUALA LUMPUR: Citigroup Inc is maintaining its cautious stance on the global equity markets for the remainder of the year as politics continue to overshadow policy.


For Malaysia, Citi analysts are positive on the construction sector due to spillovers from the Klang Valley Mass Rapid Transit project.

Citibank Bhd head of research and investment strategist, David Chua, said: “We are also positive on the oil and gas sector as Petronas (Petroliam Nasional Bhd) have said they will be spending RM300bil in the next five years.”

Chua added that he was also bullish on the consumer sector due to the strong domestic consumption.


Friday, July 27, 2012

SapuraKencana wins RM300m topside contracts

PETALING JAYA (July 26, 2012): SapuraKencana Petroleum Bhd has won two contracts worth up to RM300 million from Murphy Sarawak Oil Co Ltd to build topside facilities for its oil and gas field development located offshore Bintulu in Sarawak.

The contracts are expected to be completed and delivered to Murphy Sarawak in the first half of 2013.


Tuesday, July 24, 2012

IHH Healthcare poised for rapid growth

PETALING JAYA: The “rich” valuation for IHH Healthcare Bhd is justified as the healthcare provider group has strong earnings and market growth prospects over the next five years, according to managing director Dr Lim Cheok Peng. Lim reiterated that in the pipeline were more than 3,300 new beds to be delivered and 17 hospital developments, which would be completed by end-2016.

Known as Asia's biggest hospital operator, IHH presently operates over 4,900 beds in 30 hospitals as well as clinics and ancillary healthcare business across eight countries. “As we continue this journey, how will IHH look like in another three to five years? It will be a 47-hospital group with more than 8,000 beds,” Lim told StarBiz in a telephone interview.

He highlighted that this would obviously result in a significant impact on the group's annual revenue and earnings before interest, tax, depreciation and amortisation (EBITDA) by end-2016. For the financial year ended Dec 31, 2011 (FY11), the group posted a pro-forma revenue of RM5.2bil and EBITDA of RM1.03bil. Its net profit was RM132mil. IHH is en-route to a dual listing on the Main Market of Bursa Malaysia and the Main Board of Singapore Exchange Securities (SGX) tomorrow.

The group's US$2bil (RM6.3bil) initial public offering at RM2.80 per share will be the third largest IPO in the world this year after Facebook Inc and Felda Global Ventures Holdings Bhd.

In a recent report, JF Apex Securities said its fair value for IHH was RM3.00 per share, based on 20 times FY13 enterprise value (EV) over EBITDA or an implied 55% premium to the average FY13 EV/EBITDA of its regional peers of 13 times, in view of IHH being the world's second largest healthcare company and its relatively larger market capitalisation. Meanwhile, ECM Libra has a hold call on IHH's stock and target price of RM2.94 per share, based on sum-of-parts valuation.


Saturday, July 14, 2012

Gas Malaysia Major Trend is Up

Bapa borek, anak rintek!!
xprice RM2.20, xratio 3:1, xdate 28.06.13 - CIMB

IHH's institutional, retail price fixed at RM2.80

PETALING JAYA (July 13, 2012): IHH Healthcare Bhd has fixed its cornerstone, institutional and final retail share price under its RM6.2 billion initial public offering (IPO) at RM2.80 and S$1.113 a share, at the upper end of the indicative range of RM2.67 to RM2.85 per share, for its concurrent listing on Bursa Malaysia and Singapore Exchange.

In a joint filing with Bursa Malaysia yesterday, CIMB Bank Bhd's Singapore Branch and DBS Bank Ltd said the price for the global offering of up to 2.23 billion shares with an over-allotment option of up to 170 million shares, was fixed after the close of the book-building for institutions.

IHH will debut on the Malaysian and Singaporean bourses on July 25.


Tuesday, June 26, 2012

M&A: FGV fair value at RM5.65

‘BUY’ CALL: Research firm believes Felda Global Ventures will be able to maintain market with bigger landbank M&A Securities, which has called a "buy" on Felda Global Ventures Holdings Bhd, sees an upside of 24 per cent to the plantation company's IPO price of RM4.55.

In its research note, the firm is giving FGV a fair value at RM5.65 which translates into a price earnings multiple of 12.2 times, which is "still relatively low compared to its peers". The research firm said FGV, being a commercial arm of Felda is exposed to commercial crop through a land lease with Felda for 355,864ha of up to 99 years.

FVG will be listed on the main market of Bursa Malaysia this Thursday. "Going forward, there will be acquisitions of additional plantation landbank where it is available and economically attractive," M&A said. M&A Securities noted that half or RM2.2 billion of the IPO proceeds will be used to increase the company's landbank size in the Asean and Africa region.

With a plantation landbank size in the top three, just behind Sime Darby Bhd and Golden Agri Resources Ltd, the research firm believes FGV will be able to maintain its market with potential to increase its landbank with more acquisitions coming and commencement of new palm oil mills.

FGV is one of the world's largest millers of fresh fruit bunches (FFB) with 70 mills located throughout Malaysia. With 355,864ha of plantation estates, it has operated 343,521ha of oil palm estates in Malaysia that produced 5.2 million tonnes of FFB in 2011. Its 49 per cent-owned associate Felda Holdings Bhd, meanwhile, is the largest producer of crude palm oil (CPO) in the world, based on production volume, having produced 3.3 million tonnes of CPO last year. M&A Securities said FGV's strength lies in its accessibility to the CPO output as its 70 palm oil mills are able to produce aggregate annual milling capacity of 20.4 million metric tonnes of FFB.

Another one of its strength is its hedging strategy, whereby its crop diversification among palm oil, sugar, rubber, soya and canola will help manage against the risk of commodities prices volatility. FGV's operations in 10 countries are also an asset as it has access to global customers while its strong research and development (R&D) support would be key to its focus on improving upstream production and efficiency. Last year, FGV spent RM32.9 million on R&D, to improve the productivity capacity and other agricultural products as well as other potential crops beside oil palm.

The securities firm added that with FGV's good value chain structure, it has managed cost efficiently and has the flexibility to optimise earnings from its integrated operations across the palm oil value chain between upstream and downstream businesses within the group. It also noted that about six per cent of the proceeds from the IPO, or RM260 million will be used to reduce FGV's overseas borrowing, reducing its debt to equity ratio from 81 per cent to 43 per cent.

Read more: M&A: FGV fair value at RM5.65

Thursday, June 7, 2012

UEM Land’s Nusajaya to be driven by new projects

KUALA LUMPUR: For UEM Land Holdings Bhd's fledgling Nusajaya region, the next stage in its growth will be driven by new catalyst projects that are expected to be unveiled soon.

“We have concocted and put on the ground the initial catalysts, but we cannot live on what has been successful in the past, so new projects will be developed,” managing director and chief executive officer Datuk Wan Abdullah Wan Ibrahim told StarBiz.

“We have a few that are on the table and very advanced, but I can't talk about them yet,” he said, adding that official announcements would be made in the fourth quarter.


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