KNM??

Bursa-Chat

2 Dec 10, 23:05
12000: KNM climbing pattern is...... 2-2.50.....2.50-3.20......3.20-4.00....... within very short time....
 
21 Nov 10, 21:54
12000: After KNM's shares consolidation, it should be easily push to Rm4 per share... with the $$$ new projects coming in.... KNM is finally back on track and will challenge RM10-15 again...

KNM Group Bhd. (KNMG MK), an oil and gas services provider, jumped 14 percent to 49.5 sen, its steepest gain since Oct. 30, 2008. The company said third-quarter net income surged 76 percent from a year earlier to 56.1 million ringgit ($18 million), according to a statement to the stock exchange.
Bloomberg

Charts Never Lie

Market Summary

China Protests U.S. Exercise With S. Korea

What recession? Shoppers eat up Black Friday deals

Seems like old times: Voracious shoppers meet eager retailers on especially busy Black Friday!

Prasarana picks TRC, Bina Puri as main contractors for LRT extension jobs

Written by Joseph Chin Friday, 26 November 2010 20:28

KUALA LUMPUR: Syarikat Prasarana Negara Bhd has picked TRC Synergies Bhd and the joint venture between BINA PURI HOLDINGS BHD [] and Tim Sekata JV as main contractors for the multi-billion-ringgit light rail transit (LRT) extension projects.

Prasarana said on Friday, Nov 26 that it had picked TRC’s unit as the main contractor for the 17 km extension of the Kelana Jaya Line from Kelana Jaya station to Putra Heights, which includes 13 new stations. The contract value is RM950 million and it is for 30 months.

It also appointed Bina Puri- Tim Sekata JV as the main contractor to implement the 17.7 km extension for the Ampang LRT line between Sri Petaling to Putra Heights with 13 new stations. The contract value is RM634.64 million and the duration is 27 months.

The announcement confirmed The Edge FinancialDaily report that Bina Puri was in the forefront to win the LRT extension job for the Ampang line worth about RM600 million.

The EdgeFD also reported TRC was tipped to bag the main contract for the Kelana Jaya line extension, estimated to be worth between RM900 million and RM1 billion.

For the Kelana Jaya line extension, Prasarana said the nominated sub-contractor for the fabrication and delivery of segmental box girder was the joint venture between UEM BUILDERS BHD [] and Intria Bina Sdn Bhd.

The contract value is RM93.16 million and the contract period is for 21 months.

As for the Ampang LRT line extension, the nominated sub-contractor for the fabrication and delivery of segmental box girder was also the joint venture between Bina Puri and Tim Sekata.

The contract value is RM67.69 million and the duration of the contract is 19 months.

“In addition, within the total contract value the main contractors will also manage the nominated sub-contractors for contracts worth RM469 million (Kelana Jaya Line) and RM305 million (Ampang Line) respectively,” Prasarana said.

It added the nominated sub-contractors, to be appointed by Prasarana through a separate on-going open tender process, would cover CONSTRUCTION [] of stations; supply and installation of escalators and lifts; and construction of multi-storey car parks.

Taken from here

Petronas Chems' Listing Today

3.65 and 2.30

Taken from Malaysia-Finance Blog

Blogger Buyer said...

Hi S.Dali,

IJMLand will resume trading tomorrow, and since the rm3.65 is fixed, what is the expectation under this condition?? will it be only trading around 3.6 range?
Pls advise
Thanx in advance

5:19 PM

buyer,

thats a loaded question which plenty of ppl will pay good money to know ...lol ; )

if its a straight out G.O. ... then it should trade slightly below 3.65, maybe 3.60 because many ppl will give a bit discount so that they don't have to wait n go thru the exercise.. but in a G.O. there is an end buyer willing to pay at a fixed price

this is a swap exercise, and unlike the uemland sunrise deal, it will be swapped into a newco... one will notice that ijmland valuation has a higher premium than mrcb, which is fair considering mrcb's higher PB

does it mean that ijmland will go to 3.65??? well, maybe ... its not as straight forward .... as u can see, what if both parties just pull a figure from thin air and say ijmland swap at 5.00 and mrcb swap at 4.00, does that mean both will still go to those levels? its a swap, which means u will get something for the swap, in this case u get shares in the newco which will be listed as well

the key IS will everybody clamour to have shares in the newco ... if the swap was at 5.00 for ijmland, even krishnan tan won't want the shares in the newco, and will sell even at 4.80 or 4.50 or even 4.00 ... hence the key is whether ppl want to own shares in the newco

collectively, the newco will have a pb of around 2.1x, which is highly acceptable ... the merged entity will be a force to be reckoned with, and this merger basically confirms that the newco will get the mega Sg Buloh project, which will underpin strong interest, plus the newco will have very good liquidity, hence the controlling stakeholders and substantial shareholders will be silly to just offload shares at 2.30 and 3.65 for MRCB and IJMLAND respectively as that will mean they will get zero shares in the newco ... EPF won't sell, IJM Corp won't sell and definitely Krishnan Tan won't sell because they all know after the exercise, the newco will move even higher

if anything, the stakeholders will want to own more shares plus the merged entity is really a 1+1=3 just like uemland-sunrise

methinks both ijm land and mrcb will trade around 3.50 and 2.25 for the first hour to digests the traders and contra players .... before moving to 3.65 and 2.30, and then surge past those levels in a day or two ... because seriously, none of the stakeholders will be selling, they want shares in the newco .. you add in institutions and foreign funds into the fray who want to own a key property vehicle ... there are a lot more buyers out there than genuine sellers

PS. Dali, if you disagree this appears here for my record let me know - I'll then delete immediately.

Military tension has intensified between North Korea and South Korea

Market Update

4:30 pm : Participants kept stiff and steady pressure on stocks all session. Their efforts came amid news that military tension has intensified between North Korea and South Korea, and ongoing contagion concerns for Europe.

Each of the major equity averages tumbled more than 1% today. Downside momentum took the Dow below the 11,000 before it settled on its 50-day moving average and the S&P 500 moved below 1180 before it recovered to that point. Sell-offs of a similar degree were made abroad. Collective weakness left the Dow Jones World Index to drop 1.9% in its worst single-session slide since August.

The push to dump stocks came in response to news that artillery fire was exchanged overnight between North Korea and South Korea. Though tension between the two nations has been persistent, the latest episode marks a dramatic escalation of the tone between them.

That development added to the distress of market participants, who have long held concern for the fragile state of finances among countries in the European Union periphery. Even Ireland remains a point of worry as it has yet to completely structure a bailout package and implement austerity measures.

Distress and uncertainty moved many into the relative safety of the dollar, which was up 1.3% against competing currencies at the close of trade. The advance marked its biggest one-day bounce in a month and put the currency at its best level in almost two months.

Only a few pockets of strength were seen this session. Hewlett-Packard (HPQ 44.19, +0.94) was the only blue chip in the Dow to post a gain. Its strength was owed to better-than-expected earnings and upside guidance.

Source...

Fed lowers outlook for economy through 2011

Fed lowers outlook for economy through 2011, citing worse than expected growth

Christopher S. Rugaber, AP Economics Writer, On Tuesday November 23, 2010, 2:40 pm EST

WASHINGTON (AP) -- Federal Reserve officials have become more pessimistic in their economic outlook through next year and have lowered their forecast for growth.

The economy will grow only 2.4 percent to 2.5 percent this year, Fed officials said Tuesday in an updated forecast. That's down sharply from a previous projection of 3 percent to 3.5 percent. Next year, the economy will expand by 3 percent to 3.6 percent, the Fed said, also much lower than its June forecast.

Fed officials project that unemployment won't change much this year, averaging between 9.5 percent and 9.7 percent. The current unemployment rate is 9.6 percent. Progress in reducing unemployment has been "disappointingly slow," the central bank said, according to the minutes of its Nov. 2-3 meeting.

The darker view helps explain why the Fed decided at its meeting earlier this month to launch another round of stimulus. The central bank plans to buy $600 billion in Treasury bonds over the next eight months in an effort to lower interest rates and spur more spending.

The Fed is slightly more optimistic about 2012, in part because officials expect the bond-buying program to have a positive impact. The economy should grow 3.6 percent to 4.5 percent that year, a tick better than June's forecast of 3.5 percent to 4.5 percent.

The economy will also grow 3.5 percent to 4.6 percent in 2013, the central bank said, the first time it has issued projections for that year.

The economic outlook was prepared at the Fed's meeting earlier this month and released Tuesday. It reflects the views of the Fed's board of governors and its regional bank presidents.

The jobless rate will be 8.9 percent to 9.1 percent in 2011, Fed officials predict. That's much worse than June's projection of 8.3 percent to 8.7 percent.

By 2012, when President Barack Obama faces the electorate, unemployment will be 7.7 percent to 8.2 percent, up from the previous forecast of 7.1 percent to 7.5 percent.

The Fed's forecasts of a slow economy with only gradual improvement in the job market are broadly similar to those by private economists. An Associated Press survey of 43 leading economists last month found that they expect the economy to expand just 2.7 percent in 2011, after growing only 2.6 percent this year.

The unemployment rate will remain at 9 percent by the end of 2011, the economists said.

The Fed said that data released since its last projections showed the economy was weaker in the first half of this year than it previously thought. The economy grew at only a 1.7 percent annual pace in the April-June period, much lower than the first quarter's 3.7 percent rate.

Consumers are still holding back on their spending, the central bank said, and recent reports on housing, manufacturing, international trade and employment were all weaker than expected at the June meeting.

The central bank expects prices will remain in check. Inflation is projected to rise 1.1 percent to 1.7 percent in 2011, little changed from the previous forecast of 1.1 percent to 1.6 percent.

KNM is finally back on track and will challenge RM10-15 again

Bursa-Chat...
21 Nov 10, 21:54
12000: After KNM's shares consolidation, it should be easily push to Rm4 per share... with the $$$ new projects coming in.... KNM is finally back on track and will challenge RM10-15 again...

Najib wants MRT project to take off by July

PUTRAJAYA: Prime Minister Datuk Seri Najib Tun Razak wants the Mass Rapid Transit (MRT) project under the Greater KL initiative to be implemented by July next year, Minister in the Prime Minister’s Department Datuk Seri Idris Jala said.

He said the technical report on the project, including the route, had been completed and would be tabled at the National Economic Council and Cabinet for scrutiny this month.

“The public will be able to give their feedback after the council decides on the technical report,” he said at a news conference here yesterday.

Present was Federal Territories and Urban Wellbeing Minister Datuk Raja Nong Chik Raja Zainal Abidin.

Idris said another project – the high-speed railway – would enter the first phase of studies for two months from early next year, to be followed by six months of detailed studies.

Meanwhile, Raja Nong Chik said the MRT route would be on federal land to avoid problems related to land acquisition while the distribution of MRT stations would be determined later.

He said among the locations to be served by the MRT lines was Kampung Baru, which would be among the focus areas of the Greater KL initiative.

The MRT system would be integrated with existing transportation systems, he said, adding that Greater KL would also cover the rehabilitation of polluted rivers in the Klang Valley and greening of the national capital with the planting of 30,000 trees next year. – Bernama

Coming up Friday 4G service, five times faster than current 3G

By TEE LIN SAY
linsay@thestar.com.my

Launch set to make big impact on high-tech market

KUALA LUMPUR: It will be five times faster than the current 3G network but the price will be compatible ... very affordable and the best price.

That is all YTL Communications Sdn Bhd executive chairman Tan Sri Francis Yeoh will say for now about the rates of the much-anticipated 4G wireless broadband service or Yes to be launched Friday.

It will have the lowest rate in the industry with no monthly commitment and conditions, he said, in an interview with StarBiz, adding that the product line-up for the launch would include a 4G smartphone developed with Samsung (called Yes Buzz), USB dongle, MiFi device and a desktop WiFi router.

Yes, the next generation high-speed data service, is expected to have a coverage of up to 65% of the peninsula from day one while the states or areas which are not yet included will be covered not too long from now, according to Yeoh. The company has spent some RM2.5bil for the Yes 4G infrastructure.

“It will be five times faster than the current 3G network but the price will be compatible ... very affordable and the best price,” says YTL Communications Sdn Bhd executive chairman Tan Sri Francis Yeoh during the interview with StarBiz.

Tomorrow's launch has generated much excitement. Yeoh stressed that YTL Comms, with a staff strength of 2,000 built up over the past year, will be the first in the world to offer a converged 4G network voice, mobile Internet and mobile broadband.

Unlike current offerings where mobile data and voice are separated, we will bring everything into one plan with no additional charge. There will also be mobile TV at the end of next year, he said.

Yes will put Malaysia on par with the South Koreans, Singaporeans and Japanese on the technology front, Yeoh said, adding that the multiplier effect of such a technology was that it raised efficiency and productivity. With every 10% increase in broadband penetration, this increases the GDP by 1.3%, he said.

The response has been more than encouraging so far. Even prior to the launch, YTL Comms has received tens of thousands of pre-registrations three times above expectation which Yeoh said could partly be a reflection of the frustrations over the current wireless Internet speed.

3G is a legacy service. It is developed using voice technology and it can't cope with the massive amount of data that consumers are demanding. Devices such as iPhone and iPad have put a massive strain on current 3G networks. How many times have we tried to open files and experienced the buffering and streaming taking forever? The speed of our Yes' network is just amazing. Once people taste it, they won't go back to the old service, Yeoh said.

Under the Education Partner Programme, YTL Comms is providing free broadband services to 400,000 university students.

Quite interestingly, YTL's 4G network will be SIM-less. Simply put, Yeoh said the network runs on a user ID that comes with its own mobile number.

You don't need a SIM card and you're not locked on to one device. All you need to do is log-on using your user ID (we call this the Yes ID) and all your information is accessible on any device. You can log on to multiple devices, all at the same time. It's possible for you to receive a call and have it ring on your hand phone, your computer ... or your home phone, all at the same time. You pick the device most convenient to answer the call or make a call from, he said.

Yeoh said the market is spoilt by the voice network and that Malaysia's mobile call rates are far more expensive than Indonesia's. So many people make so much money on voice. That is why there is no innovation on data, he elaborated.

Under the mobile number portability, existing mobile phone users of other operators can port over their numbers to YTL Comms to enjoy 4G performance and innovation.

Internet is here to stay. That's the business of the future. We are targeting the youth market ... to engage the students. They are the customers we want. We are not targeting customers like my father, he said.

On how YTL's 4G differentiates from existing data networks, Yeoh said that Yes is a fully converged mobile network, and there is no other WiMAX operator in the country that is mobile.

In fact the services offered by Yes are among the first in the world. And this is just the beginning. We will continue to innovate and bring new services into the market, said Yeoh.

For 2011, Yes will offer the world's first wireless quad-play service giving its subscribers access to voice, data and television all on a mobile network.

The next big thing is making the Internet relevant. This entails looking at creating content and developing applications and service to take advantage of the enormous flexibility that the Internet has to offer, and we are ahead of the curve on this. Eventually, everyone will focus on this, because performance will be a given. Speed is fundamental but everyone will eventually be able to deliver this. The differentiator will be what can you go with that performance, how easy it will be for subscribers to use and how to make it as affordable as possible for everyone, he said.

Analysts expect YTL Comms' entry into the telco sector to galvanise the industry further, heightening competition particularly in the cellular broadband space, given the company's strong financial backing and track record.

Taken from here...

KNM wins US$216m job in Uzbekistan

KNM Group Bhd, a Malaysian oil and gas services provider, said in a statement it won a US$216 million contract to supply equipment and services for the development of gas condensate fields in Uzbekistan. -- Bloomberg

Read more: KNM wins US$216m job in Uzbekistan

21 Nov 10, 21:54

12000: After KNM's shares consolidation, it should be easily push to Rm4 per share... with the $$$ new projects coming in.... KNM is finally back on track and will challenge RM10-15 again...

Kencana Petroleum Bhd

Maintain outperform at RM1.98 with target price RM2.28: Over the weekend, The Edge quoted Kencana's CEO Datuk Mokhzani Mahathir as saying that he was not paring down his stake in the company. He also denied speculation that McDermott is looking to buy up to 5% of his holdings in Kencana. However, he confirmed that the company is considering raising funds for its expansion plans.

We are not surprised by the denial as Mokhzani has been consistently clear about his commitment to Kencana, which he bought into well before the company listed in 2006. He owns 38.6% of Kencana directly and indirectly through Khasera Baru Sdn Bhd. The other substantial shareholder is the Employees Provident Fund with an 8.2% stake.

As for the involvement with McDermott, we understand that the US-based company may surface as a JV partner of Kencana instead of a shareholder. We believe Kencana could be interested in working with McDermott to build a pipeline installation business after its attempt with US-based Global'' failed earlier this year.

Following the breakdown of the JV with Global in May, Kencana has maintained its interest in owning and operating pipelay barges, either by going it alone or by roping in a partner. McDermott has extensive experience in Malaysia and has been working closely with Bumi Armada in the pipeline installation business.

As a 2,000-tonne shallow-water pipelay barge would cost no less than US$100 million (RM314 million), Kencana may issue new shares to beef up its war chest and reduce borrowings. As at end-July, the company had borrowings of RM228 million, which amounted to 30% of shareholders' funds. At last Friday's closing price, a 10% private placement would raise gross proceeds of RM328 million. Kencana has received shareholders' approval for a private placement but the time line of the exercise has not been disclosed.

On Nov 11, Kencana's share price scaled to a new all-time high of RM2.11 before closing at RM2.03 with 31 million shares traded. Apart from the possibility of a new JV partner, order book expansion may have been a catalyst of the share price jump and active trade. In our visit note dated Nov 2, we wrote that Kencana is eyeing deals worth RM5.2 billion in Malaysia and at least US$300 million in India. We understand that the contract that may be awarded sooner than the others is the RM600 million fabrication contract given out by Petroliam Nasional Bhd (Petronas) and its production-sharing contractors. Year-to-date, the company has secured 12 jobs worth RM819 million, bringing its order book value to RM1.9 billion.

The potential entrance of a new high-profile partner adds to Kencana's attractions. The company is already benefiting from a steady flow of projects in Malaysia, Vietnam, India and Australia, and is expected to expand its order book. We maintain our EPS forecast and target price of RM2.28, pegged to an unchanged target market PER of 13.8 times. We continue to rate Kencana an outperform, with the potential share price triggers being: (i) active order book replenishment; (ii) a new JV partner; and (iii) M&A. ' CIMB Research, Nov 15

This article appeared in The Edge Financial Daily, November 16, 2010.

Petronas to announce specific incentives for O&G sector, says Idris Jala

Written by Daniel Kooo Tuesday, 16 November 2010 15:25

KUALA LUMPUR: Petroliam Nasional Bhd (Petronas) will be announcing more incentives for the oil & gas industries soon as the government sets the stage for the country to be a regional hub for oilfield service, says Minister in the Prime Minister’s Department Senator Datuk Seri Idris Jala.

“There are a lot of opportunities for local players to participate in this – be it in the form of CONSTRUCTION [] work, or providing related oil and gas services. All of this will come into play,” he said on Tuesday, Nov 16.

While Jala did not provide a timeframe, he said the incentives companies could expect were the renegotiation of certain contracts for renewal like for those production sharing contractors such as Shell and Exxonmobil.

He was speaking at the opening of Schlumberger Ltd’s financial hub in Kuala Lumpur which will provide employment for about 400 people by next year.

Jala, who is also the Performance Management & Delivery Unit chief executive officer, said that the nine Entry Point Projects under the ETP also targeted multinational companies to locate their global or regional headquarters in Greater Kuala Lumpur or Klang Valley.

Two rounds of Steering Committee meetings have already taken place and many initiatives are in various stages of progress towards attracting more MNCs to relocate their headquarters to Kuala Lumpur.

As for the Schlumberger Financial Hub, it is part of the government’s Entry Point Project to attract 100 multinational companies to set up their global or regional headquarters in Greater Kuala Lumpur or Klang Valley under the Economic Transformation Programme (ETP) recently announced by Prime Minister Datuk Seri Najib Razak.

Their financial hub will provide financial and accounting services to Schlumberger’s businesses in Asia Pacific, Middle East, European and African regions and 75% of its employees hired here will be Malaysians.

“Malaysia was the obvious choice for this new facility. The country offers highly qualified professionals with excellent customer service attitudes,” said Schlumberger’s chief financial officer Simon Ayat.

“Malaysia is open to attracting knowledge based activities, offers an excellent business environment with the government committed to the development of education as well as the country’s infrastructure,” Ayat added.

Schlumberger Limited, is a United States’ based oil and gas services company which had been present in Malaysia since 1935 and has offices for its other business chapters in Kemaman, Miri and Labuan.

Taken from here...

YTL Comms upbeat on its Wimax service

YTL Communications Sdn. is seeing “dramatic” demand for its WiMax service in Malaysia, with pre- registrations for the product exceeding expectations three times, Executive Chairman Tan Sri Francis Yeoh said in an interview.

Yeoh declined to give a specific target for the “Yes” wireless Internet and voice service, which allows users to pick an identification and number.

The company is the telecommunications unit of YTL Power International Bhd.

“I would expect that the uptake of this service, when people get the hang of it, will be tremendous,” Yeoh said in Kuala Lumpur yesterday.

“When people have tasted mobile Internet, they’ll never go back to mobile phone; same as when people have tasted color television, they’ll never go back to black-and-white.”

YTL’s broadband service is as much as five times faster than the already available third-generation, or 3G, network, he said.

This will enable businesses to be more effective and productive, in line with the government’s plans to turn Malaysia into a high-income nation, Yeoh said.

The company plans to spend 2.5 billion ringgit (US$798 million) to roll out the service to reach more than 65 per cent of the country’s population when it starts November 19, the company said in a statement. It will reach more than 80 per cent by the second quarter of 2011.

YTL Power has advanced 8.2 per cent in the past month, making it Malaysia’s best-performing stock, ahead of the benchmark FTSE Bursa Malaysia KLCI Index’s 0.9 per cent gain. The stock fell 0.4 per cent to RM2.51 at 12.29 pm today.

The utility’s “shares have recently surged on news that the pre-launch response to its WiMax service has been above management’s internal targets,” Alex Goh, an analyst at AmResearch, said in a report today.

“But note that this is not confirmed registration or fee-paying subscribers as the current Internet bookings allow potential customers to choose their own numbers.”

The company is working with partners including Clearwater Corp, Intel Corp, Cisco Systems Inc. and International Business Machines Corp to roll out the service, which will be “competitively” priced against present broadband access providers, according to Yeoh.

The “Yes” service charges the consumer what they use, much like electricity, the company said on its website. The rates will be revealed on November 19. - Bloomberg

Taken from here...

Tan Chong Motor to venture into luxury cars manufacturing

Written by Joseph Chin Saturday, 13 November 2010 20:38

KUALA LUMPUR: TAN CHONG MOTOR HOLDINGS BHD [] will invest RM285.0 million to manufacture and assemble luxury passenger cars at the Kota Kinabalu Industrial Park in Sabah.

Tan Chong said on Friday, Nov 12 it had received an approval from the Ministry of International Trade and Industry for a manufacturing licence at the industrial park to manufacture and assemble luxury passenger vehicles and commercial vehicles.

“The approval letter is subject to, among others, the condition that the manufacturing and assembly activities shall be for luxury passenger cars with engine capacities of 1,800cc and above, at on the road price of not less than RM150,000,” it said.

Tan Chong said the project would focus on the CONSTRUCTION [] of a manufacturing facility for 4-wheel drive vehicles with an initial planned production capacity of 3,000 units per annum.

“The group plans to invest up to RM285 million for the project (including purchase of 50 acres of land in the industrial park), which will be implemented over several phases,” it said.

The Sabah-owned industrial estate is 25 km north of Kota Kinabalu and occupies 8,320 acres, and it is set to be the next major centre of growth for the state.

Tan Chong said the state government’s plan was to establish Sabah as the gateway to the Brunei-Indonesia-Malaysia-Philippines-East ASEAN Growth Area (BIMP-EAGA).

Taken from here...

OSK keeps 'buy' call on Kencana

Published: 2010/11/12

Kencana Petroleum Bhd is expected to land some new contracts soon given the improving sentiment in the local oil and gas (O&G) industry, said OSK Research.

In its research note today, OSK said the contracts may include fabrication and hook-up and commissioning jobs.

OSK said with crude oil price stabilising at close to a one-year high since the fourth quarter of 2009 of US$70-US$80 a barrel, Petroliam Nasional Bhd and its production-sharing contractors would commence major capital expenditure.

"Also, since the O&G sector has been quiet over the past two years, any new contracts would start with fabrication and cascade down to other support services such as support vessels, pipe laying and so on," it said.

It said it was upbeat Kencana should be receiving new contracts anytime soon.

The research house has maintained its ''buy'' call on the company and raised the target price to RM2.57.

"The higher valuation was based on expectation that the listing of Malaysia Marine and Heavy Engineering Holdings Bhd has started the ball rolling for a re-rating of most of the share prices of O&G stocks," it said. -- Bernama

Read more: OSK keeps 'buy' call on Kencana

KNM ?

"9 Nov 10, 20:53

12000: arh..... I can share KNM will have good news next month or January... although it disappoint many people..."  ==>  taken from bursa-chat
 

MASTEEL - Masteel hopeful of riding on govt projects

Research House: OSK

Upgrade to trading buy at 98 sen with a target price of RM1.22: We visited Malaysia Steel Works (KL) Bhd (Masteel) last week and gather that its management is hopeful of riding on a long list of projects announced by the government.

After spending some RM60 million to RM70 million over the past two years to modify its furnace and billet caster, Masteel expects its billet capacity to progressively increase from 450,000 tonnes per year (tpy) to 650,000 tpy in FY12 by deploying in stages, 130mm billets instead of the original 120mm entities.

The company has also identified a plant near its existing rolling mill to embark on its downstream expansion. As the plant only requires minimum modification conversion to install a new rolling facility, the company has identified three machine suppliers from China to expedite the delivery of the required machines.

The management is targeting to increase its rolling capacity to 500,000 tpy upon full commissioning in FY12. It hopes this would be on time to ride on the string of public infrastructure and building projects announced by the government recently.

While we expect weak financial performance from steel mills in the second half of FY2010 (2HFY10), Masteel suggests that the company's sales is encouraging. Managing director/chief executive officer Datuk Seri Tai Hean Leng said the company had endeavored to import containerised scrap metal after the liberalisation of the scrap market since end-2008.

Although we are surprised at the possible increase in sales volume, we think Masteel might have benefited from being centrally located in the catchment areas of steel demand. Also being a smaller mill, the volume it produces is way easier for the market to absorb. We also suspect that its management might have accumulated enough experience in dealing with cheaper scrap imports by container, which are normally priced at about US$20 (RM61.80) discount compared to bulk imports.

Therefore, we are revising upwards our FY10 net profit estimates by 62.7% to RM42.4 million and FY11 numbers by 7% to RM47.5 million. As its earnings may exceed market expectation, we upgrade our call to Trading Buy, with a new target price of RM1.22. ' OSK Research, Nov 8

This article appeared in The Edge Financial Daily, November 9, 2010.

Proton Exora hybrid bags award at Brighton-to-London rally

From Zaharah Othman

LONDON: Proton's Exora Extended Range EV (5304) won an award in the best range extended electric vehicles category during the inaugural Brighton to London future car rally on Saturday, giving a boost to the company's effort in the production of eco-friendly cars.

In the event, organised by the Royal Automobile Club for eco-friendly cars, 64 cars including Proton's Saga Electric and Exora Extended Range EV took part to demonstrate the use of the lowest amount of energy possible.

The rally started from Madeira Drive on the East Sussex' seafront and arrived in central London at 8am, with the Exora arriving at 12.10pm London time.

Proton's managing director, Datuk Syed Zainal Abidin Syed Tahir, who was at the finishing line in Waterloo Place to meet the arrival of the Exora and the Saga, was jubilant with the award as it demonstrated that Proton could compete with other car companies.

"This win is really unexpected but it proves that the technology that we have now can compete with others. It is indeed a moment to be proud of," he said after the award was announced in Regent Street which was closed to traffic for the carnival-like occasion, heightened with the presence of vintage cars preparing for their annual London to Brighton rally.
He added that the rally had provided a good platform to not only introduce Proton's technology but the Proton brand in the UK.

"What is important for us now is to ensure that the Exora hybrid can be mass produced. This win has given us that motivation, " he added.

He said Proton and the Malaysian government are discussing the production of hybrid and electric cars and he hoped that this would be the trend to reduce CO2 and fuel consumption.

Exora's driver, software engineer Steve Riches who received the award, said the drive was very smooth and comfortable while co-driver, Rozadatul Intan Safrina Che Rus, a component and commissioning engineer with the green technology department, said all the hard work and working as a team with Frazer Nash and other departments had paid off.

"This is an opportunity for Proton to go even further," she said.

Driver of the Saga, Norman Siddique, an engineer with Frazer Nash who designed the battery management's system for the vehice said they had a lot of advantage over other cars participating in the event.

"We arrived here in good time with a lot of energy to spare," he said after the race.

The event ended with a display of all participating cars alongside vintage cars which were taking part in the London to Brighton rally yesterday.

Read more: Proton Exora hybrid bags award at Brighton-to-London rally

IJM JV secures RM690m contract for National Cancer Institute

Written by Joseph Chin Tuesday, 09 November 2010 19:50

KUALA LUMPUR: The Kiara Teratai-IJM joint venture has accepted a contract to design, build and equip the National Cancer Institute for a contract sum of RM690 million.
IJM Corp said on Tuesday, Nov 9 the contract was awarded by Kiara Teratai Sdn Bhd, which has a 60% stake in JV and IJM CONSTRUCTION [] Sdn Bhd 40%.

The project involves the construction of a hospital block and the completion date of the project is Aug 31, 2013.

Taken from here...

Price Target News for MRCB

Price Target date: 04/11/2010 | Source: HWANGDBS

KUALA LUMPUR: Shares of MALAYSIAN RESOURCES CORP [] Bhd rose in active trade in late afternoon on Thursday, Nov 4 after it was recently upgraded by a local research house due to MRCB's strong proxy to the 10th Malaysia Plan (10MP).

At 3.21pm, MRCB was up 10 sen to RM2.17. There were 10.9 million shares done.

The FBM KLCI was up 1.87 points to 1,509.47. Turnover was 858.37 million shares done valued at RM1.01 billion. There were 371 gainers, 356 losers and 305 stocks unchanged.

Hwang DBS Vickers Research (HDBSVR) said MRCB strong proxy to 10MP projects and raised its target price to RM2.90.

'We raised FY11-FY12F earnings by 13-27% after imputing larger new contract wins of RM600m p.a (vs RM400 million to RM600 million previously), and the launch of Lot D in 2H 2011 (GDV RM1.2 billion; average selling price RM900-RM1200 psf, JV with CapitaLand and Quill),' it said.

HDBSVR said it raised TP to RM2.90, also accounting for (i) higher RM1,200 psf ASP for the remaining 12 acres of land in KL Sentral premised on a scarcity premium for the strong maturing franchise. The last benchmark for office was Lot G at more than RM1,000 psf, similar for recent strata units for Lot B; (ii) higher values for its concessions, EDL and Duke, and (iii) inclusion of building services business at 10x CY11 PE.

HDBSVR said pending a formal participation in the Rubber Research Institute Malaysia (RRIM) land, MRCB seems set to capitalise on more 10MP projects, which carry stronger emphasis on environmental projects.

With the mass rapid transit (MRT) closer to receiving Cabinet approval, MRCB's fortune is even brighter with the red and green line converging at RRIM.

'It will benefit from: (i) better pricing power over our RM300 psf assumption. Every RM100 psf increase will raise our SOP by 7%, and (ii) it will likely receive a sizable portion of MRT CONSTRUCTION [] works for the portion leading to the RRIM land. Another wildcard could be MRCB's involvement in the redevelopment of Pudu Jail given its prior work for Gaya Bangsar condominium,' said the research house.

Petronas Chemicals' big debut

By Goh Thean Eu

Petronas Chemicals Group Bhd, a Petroliam Nasional Bhd (Petronas) subsidiary, will be listed on November 26 in what will potentially be the biggest initial public offering (IPO) in Southeast Asia, valued at over RM12.5 billion.

The IPO involves 2.48 billion shares, or 31 per cent of Petronas Chemicals' enlarged share capital, according to its listing prospectus published yesterday.

The exercise includes an offer for sale of 1.78 billion shares and issuance of 700 million new shares. More than 10 per cent, or 293 million of the IPO shares, are being offered to retail investors at RM5.05 each.

The price for institutional investors is being fixed via a bookbuilding, with the bidding price starting at RM4.50, sources said.

The share sale is set to be the biggest in the region, at least in recent times. It will surpass the US$2.7 billion (RM8.4 billion) raised by Global Logistic Properties Ltd in Singapore last month and the US$3.3 billion (RM10.2 billion) raised by Maxis Bhd last year.

Petronas Chemicals expects to generate some RM3.54 billion proceeds from the 700 million new shares, the prospectus noted.

Almost two-thirds of the proceeds, or RM2.24 billion, will be used for business expansion and acquisitions in the next five years. About one-third, or RM1.2 billion, is for working capital over two years.

Petronas Chemicals' sales and profit have declined in the past two years. Its earnings eased 25.5 per cent to RM3.45 billion in the financial year ended March 31 2009, while revenue dropped 3.79 per cent to RM12.86 billion.

The following fiscal year, net profit fell 24.7 per cent to RM2.59 billion while sales slowed 1.3 per cent to RM12.2 billion.

Analysts, however, remained upbeat about response to the IPO. This was due partly to the strong interest shown in last week's listing of Malaysia Marine and Heavy Engineering Holdings Bhd, another Petronas outfit.

"I believe the IPO will generate good response from investors. First is that the company gets its gas feedstock from its parent, which may translate into better margins. This will help it to be profitable, even during bad years.

"Second is that it will be a composite index component stock. Investors just can't ignore that," said an analyst from a local brokerage, who declined to be named.

The analyst added that Petronas Chemicals' proposed dividend policy of giving half of its net profit back to shareholders would add to its appeal.

Most analysts and research heads are in a "blackout" phase currently as the investment banks they are working for are involved in the IPO. During this time, they are not allowed to issue research reports or comment on Petronas Chemicals.Signs are that the company is on the growth path again.

In the four months ended July 31 2010, its net profit jumped 59 per cent to RM938 million. Group revenue rose by almost 30 per cent to RM4.22 billion.

"It is a volatile business. You have good years and bad years. And when you are in good years, the profits are really, really good," said a research head.

Some analysts, however, were not entirely positive on the company.

"It is currently in a very tight spot. It is caught in between the supplier countries and consumer countries, whereby supplier countries like those in the Middle East and consumer countries like China are setting up their own petrochemical plants.

This has resulted in increased competition," said another analyst.

The principal adviser, managing underwriter and joint underwriter of the mega-IPO is CIMB Investment Bank Bhd, with 13 other local investment banks as joint underwriters.

The retail offering, which began yesterday, will end on November 9.

The institutional offering, which started on October 26, will end on November 12.

Price determination date and balloting will also be on November 12.

Read more: Petronas Chemicals

DRB-HICOM seeks revenue balance

By Shahriman Johari

DRB-HICOM Bhd (1619) plans to improve the balance of revenue contribution from its services, automotive and property businesses over the next five years as it seeks to expand.

Currently, its motor vehicle business makes up some 57 per cent of revenue, followed by its banking, insurance and power plant maintenance services at about 40 per cent.

Property makes up less than 2 per cent of revenue now, but DRB-HICOM wants to boost this to 20 per cent in five years.

"I never like to put all my eggs in one basket," group managing director Datuk Seri Mohd Khamil Jamil told reporters at a briefing in Kuala Tahan, Pahang, yesterday.

DRB-HICOM, controlled by Tan Sri Syed Mokhtar Al-Bukhary, reported net profit of RM472 million in the financial year to March 31 2010, 29 per cent down from the year before mainly because it gained almost RM600 million from an asset sale last year. Revenue hit a record of RM6.3 billion.

The group plans to launch properties with a total gross development value of RM9 billion over 10 to 15 years. This will be a mix of residential and commercial properties. It has some 607ha near Mount Austin, Johor, which will be developed into a new township. "There are still pockets of land in DRB which are very prime," Mohd Khamil said. They include a piece of land in Taman Wahyu in Jalan Tun Razak, Kuala Lumpur, and tracts of land in Shah Alam, Selangor. This month, it plans to launch Glenmarie Gardens, a high-end bungalow project.

As for its motor vehicle business, it aims to sign a definitive agreement with Europe's Volkswagen AG (VW) next month. VW had signed in August a memorandum of understanding with DRB-HICOM to produce VW cars from 2012 at the group's plant in Pekan, Pahang. "The final negotiations are going on well and the parties are finalising the terms," he said. Eventually, the deal may include the export of VW cars to Asean countries, among other things.

DRB-HICOM is also still looking for a foreign partner to buy 30 per cent of its Islamic lender, Bank Muamalat Malaysia Bhd. It holds 70 per cent of the bank currently. It was in talks with five foreign parties and one local firm, but the talks fell through amid the global financial crisis last year.

Asked about the weak performance of its stock, Mohd Khamil said it could be due to the fact that the group was too diversified. It is also classified under the industrial sector on Bursa Malaysia although services have become a big part of its business. "If shareholders understood the nature of our business, the share would definitely escalate and show their true value," Mohd Khamil said. Apart from Syed Mokhtar with 55.92 per cent, its other main shareholders are the Employees Provident Fund with 9.11 per cent and Khazanah Nasional Bhd with 5.13 per cent, according to its 2010 annual report.

Taken from here...