Johor MB approves Mastel-KUB RM1.23b intra-city commuter train service plan

KUALA LUMPUR: The Johor government has approved the proposed RM1.23 billion intra-city commuter train service in Iskandar Malaysia, which would involve 100km rail network.

Menteri Besar Datuk Abdul Ghani Othman had on Friday, April 15 given the approval to Metropolitan Commuter Network Sdn Bhd - a joint venture between KUB MALAYSIA BHD [] and Malaysia Steel Works (KL) Bhd (Masteel).

A joint statement by Iskandar Regional Development Authority (IRDA) and Metropolitan Commuter Network said the intra-city train service would involve the building of seven new stations and 16 halts connecting all major suburbs in Iskandar Malaysia.

The commuter service would cover over 100km of rail network and serve all major upcoming Tipping Point developments such as the Johor Premium Outlet, Legoland Malaysia, Educity, Hi-Tech Park-Senai, and Lake Hill Resort City.

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Masteel, KUB in RM1b plan for inter-city rail transit infra in Iskandar Malaysia

KUALA LUMPUR: Malaysia Steel Works (KL) Bhd (Masteel) and KUB MALAYSIA BHD [] (KUB) have proposed to build and operate a 100km inter-city rail transit system in Iskandar Malaysia which will connect to the MRT line from Singapore.

The companies said in a joint statement on Wednesday, Jan 19, 2011, the project could cost over RM1 billion and consists of up to 25 commuter stations in major towns in the Iskandar Malaysia region in the initial stage.

"The operation of the inter-city rail transit shall be based on a 25-year concession," they said in the statement after the signing of the head of joint venture agreement to undertake the project.

Masteel and KUB would hold 60% and 40% equity stakes respectively in the JV company, Metropolitan Commuter Network Sdn Bhd. The project would be undertaken in three phases and completed within 24 months from project commencement.

The building of the rail transit infrastructure would also be funded by project financing under the public-private Partnership scheme (PPP).

Masteel managing director and chief executive officer Datuk Seri Tai Hean Leng said this would be a major infrastructure project in Johor as it would greatly boost its connectivity and economy.

"The upcoming inter-city rail transit is a reflection of Johor's continued progress thus far, and I believe that it would serve to bring the state to the next level of growth and vibrancy," he said.

The project will ease traffic congestion, estimated to grow at 4.2% every year along Johor and Singapore.

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KUB aims to turn food business into major earner within 3 years

CONGLOMERATE KUB Malaysia Bhd (6874) hopes to increase contribution from its food-related business from less than 10 per cent now and turn it into a major earner to the group's bottom line within three years.

It is capitalising on the steady demand from local consumers for fast food services as well as opportunities in a vast global market for halal food in order to cushion the volatility in commodities, particularly palm oil.

KUB group managing director Datuk Mohd Nazar Samad said its fast-food chain A&W (Malaysia) Sdn Bhd, which is undergoing a facelift to capture a wider market, is expected to break even on its investment soon, backed by aggressive expansion and opening of new outlets.

It now has 39 outlets throughout the country with the bulk of them located in the Klang Valley, but there are plans to open new outlets in Sabah and Sarawak next year.
"We are currently negotiating with related parties for openings in Sabah and Sarawak, which we intend to do simultaneously in both states to avoid unnecessary financial outflow," he told reporters after launching the new look of A&W Batu Road outlet and the A&W mobile fast-food truck in Kuala Lumpur yesterday.

The event was officiated by Federal Territories and Urban Well-being Minister Senator Datuk Raja Nong Chik Raja Zainal Abidin.

KUB bought A&W from its previous franchise holder, TDM Bhd, in 2002. The fast-food chain is aiming for a single-digit net profit in 2010 and a total of 100 outlets by 2015.

Mohd Nazar said the group is spending RM39 million to refurbish all its existing A&W outlets, with RM1 million allocated for each outlet.

"We expect the refurbishment exercise to be completed within this year. Of the 39 A&W outlets, only six left to be done," he said.

The refurbishment includes outlook expansion, more food and beverage offerings and the installation of modern utensils.

Mohd Nazar also said A&W will have three trucks operating by year-end. It plans to have a fleet of 10 trucks under its expansion drive.

"Our mobile A&W trucks will drive to hotspots around Peninsular Malaysia and focus in areas without A&W's presence," he added.

KUB, which was in the red from 1999, returned to profitability in 2008.

The bulk of its revenue comes from its property, engineering and construction divisions, followed by information and communications technology and food and beverage segments.

It hopes to remain in the black as the group continues to strengthen its core businesses and add value.

Buy investment holding firm KUB (6872.KU) based on charts for 65-sen target

MIMB says Buy investment holding firm KUB (6872.KU) based on charts for 65-sen target; notes stock stopped its downtrend since April 2009 and now appears slowly accumulated by aggressive speculators. "The stock is also in the process of forming its bullish flag pattern with a final target towards 65-sen," says MIMB; tips immediate support at 40-sen, resistance at 55-sen. "RSI is at positive territory area with very firm up-pointing arrow. MACD has shown bullish cross in six month time. Volume is superb with several bullish white candles," says MIMB; adds has high potential to make an explosive movement in longer term. Stock last +1.9% at 53 sen. (ECH)