Sarawak Election: Prime Minister Najib Abdul Razak had a closed-door meeting with 63 Sarawak state assemblymen from BN at a leading hotel in Miri. BN secretary-general Tengku Adnan Tengku Mansor also joined the prime minister at the meeting.
The Sarawak Election Stocks: CMSB, KKB Eng, Naim, Dayang, TA Ann, Sarawak Plantations, Encorp, Zecon, Sarawak Cable, Sarawak Consolidated, SIG Gases, Petra Energy
MRT: The second MRT line, which circles the Kuala Lumpur city centre (KLCC) orbital and known as the “circle line”, is already in the final planning stage. The details are expected to be announced in March 2011. The funding structure for the MRT would be disclosed by end-February 2011. Tenders for the preliminary and main works will likely be called by Syarikat Prasarana Negara Bhd at the end of April 2011, with the awards to be announced "around mid-May 2011.
Key Beneficiaries: Sunway City Bhd, Bstaed, MK Land, Glomac, Mulpha, Malton, Selangor Properties, GuocoLand, E&O, MRCB, YTL Land, SP Setia, TAGB, IJM Land, Metro Kajang, Bertam Alliance, Mah Sing, UDA, Gamuda Land, Bolton, IGB
Green Packet would reveal more details on its break-even levels when it announced its full-year results for 2010 in Feb 2011. Green Packet would likely record another Ebitda (earnings before interest, tax, depreciation and amortisation) loss in 4Q10 although broadband subscribers achieved was close to its 280,000 target.
GPacket: 0.800 (HDBS), 0.78 (OSK)
WellCall: The market is speculating whether WellCall will earmarked all its earnings as dividends this financial year ending Sept 30. The company will release its first financials in Feb 2011. This comes on the backdrop of costlier natural and synthetic rubber, the company’s primary raw materials.
Wellcall: 1.30 (Inter Pacific), 1.22 (CIMB)
Bernas: Bernas is sitting on a stockpile of rice that is growing in value due to the commodity’s uptrend on the international market. Although the commodity is on the government’s price control list, Bernas is posed to gain from higher prices on the international market because of its low cost inventory. However, the extent to which it can do so is controlled by the government, as some of the lower grades of rice are price controlled items in Malaysia . Bernas, which has been holding ample stock of the commodity will eventually benefit as rice prices climb in tandem with soaring food costs around the world and inflation rises.
Maxbiz: The future of Maxbiz hangs in the balance awaiting the outcome of an EGM likely to be held at the end of Feb 2011. It has announced to that it will seek shareholders’ approval at a meeting to remove its current auditor, Messrs Gomez & Co, and appoint STYL Associates as its new auditor. While this seem like a non even, such a change could have far reaching implications. In a nutshell, the company could be out of the doldrums if all goes as planned. What its officials are trying to do is to reverse its PN17 status, which Gomez & Co placed on Maxbiz.
Showing posts with label Petra. Show all posts
Showing posts with label Petra. Show all posts
Sunday, August 7, 2011
JIT News - SAAG,Hing Yiap, SP Setia,Axiata,O&G Players ... 19/1/2011
SAAG: In 2010 its cashflow difficulties due to the recession and high borrowings relative to issued capital and reserves impacted the company. This was made worse by the cancellation of projects which adversely affected cashflow. The management said its focus then was to conserve cash and are now (Aug 2010) refocusing and looking at a turnaround in 2011. The Jan 2011 rise in SAAG's shares could just be a rotational play as oil and gas counters were the focus following the third Economic Transformation Programme update, where entry point projects for the oil and gas industry were among those announced.
However, despite the company having returned to the black in recent quarters on a year-on-year basis, its funding was still “quite tight” and, therefore, getting financing for capital-intensive projects would be difficult. Without the financing, big projects will be hard to come by
Hing Yiap: The questions remain why did the major shareholders of Hing Yiap agree to sell their stakes at a discount? This is especially after considering that the block of shares that changed hands is a controlling stake suppose to command a premium? Its net cash position is rm7.59 million and short term borrowings of rm4.37 million and shareholders’ fund of rm98 million as at Sept 30, 2010. It also has receivables of rm34.26 million. It has stable of parcels of land measuring less than two acres in Kepong valued at rm10.8 million. The last revaluation of these pockets of land was more than seven years ago. However, its garment and fashion business does not warrant a premium to valuations. It has been constantly paying dividend over the past decade.
Will the takeover of Hing Yiap pave the way for Asia Brand corporation Bhd’s comeback to the stock market? Asia Brand, privatized in 2008, is controlled by Ng chin Huat, who in turn is a major shareholder of Everest that has acquired a controlling in Hing Yiap.
SP Setia: It is learned that the other 50% of Sentosa Jitra could be owned by Tan Sri Syed Mokhtar. To recap, in return for the development of the new health complex in Setia Alam, Sentosa Jitra will get the development rights for the government land along Jln Bangsar.
SP Setia: 7.23 (OSK), 8.00 (CIMB), 6.90 (MBB), 4.94 (Inter Pacific), 7.39 (RHB), 5.50 (Kenanga), 6.80 (AMResearch), 6.00 (ECM)
Axiata: Axiata Group will decide on whether it will impair its holding value in Indian mobile operator Idea Cellular at a board meeting in February 2011. Axiata was expected to take a charge on its stake in Idea, which it acquired at 100 rupees per share in 2008. Although Axiata’s businesses in Indonesia and Bangladesh are on an upward trajectory, there are still concerns about Indian unit Idea Cellular Ltd. While India ’ mobile market is booming, intense competition that put pressure on pricing has caused Idea to stutter as it seeks grow its market share.
In fact, Axiata has stated that it intends to write down the value of its 19.1% stake in Idea during its fourth quarter, which be announced in Feb 2011. Based on current market value (early Dec 2010) for Idea, the impairment charge would slash its FY2010 earnings forecast to a loss of RM695 million. Another forecasting lower earnings for Axiata’s local unit Celcom on the back of weaker margins as it seeks to aggressively push its data services via attractive subsidies.
While expecting Axiata’s Indonesian unit XL Axiata to take off, most were pleasantly surprise by the growth of its Bangladesh brand Robi. And while Axiata’s stake in Singapore’s M1 Ltd is still small at 29.5%, exciting developments down worth could it into a sleeper hit. Even Axiata’s overseas segments such as Dialog in Sri Lanka , which has been making losses have been showing improvement. Foreign interest in Axiata has risen to 16.1% as at end Oct 2010. The good news is that Axiata’s dividends will not be affected by its planned impairment of Idea since it is non cash item.
Axiata: 5.80 (OSK), 4.52 (Inter Pacific), 5.90 (CIMB), 4.50 (HDBS), 6.40 (AMResearch), 4.95 (ECM), 5.72 ( Macquarie ), 5.65 (Credit Suisse), 5.52 (RHB), 5.90 (JP Morgan), 5.45 (MBB), 5.50 (MIDF)
O&G Players: Petroliam Nasional Bhd (Petronas) is expected to award multi-billion ringgit contracts for the development of marginal oil fields by the end of Jan 2011 to several consortia comprising local and foreign companies.It is also believed that Petronas will unveil a new business model on the development of the marginal oil fields and possibly, more incentives for the industry.
It is believed that Kencana Petroleum Bhd and SapuraCrest Petroleum Bhd may form an alliance together with a foreign oil and gas major. SapuraCrest and Kencana have been busy raising capital to fund their expansion plans and are widely speculated to be one of the front runners.
Other potential beneficiaries, according to industry analysts, include Tanjung Offshore Bhd, Petra Energy Bhd, Malaysia Marine and Heavy Engineering Bhd and Perisai Petroleum Teknologi Bhd.
However, despite the company having returned to the black in recent quarters on a year-on-year basis, its funding was still “quite tight” and, therefore, getting financing for capital-intensive projects would be difficult. Without the financing, big projects will be hard to come by
Hing Yiap: The questions remain why did the major shareholders of Hing Yiap agree to sell their stakes at a discount? This is especially after considering that the block of shares that changed hands is a controlling stake suppose to command a premium? Its net cash position is rm7.59 million and short term borrowings of rm4.37 million and shareholders’ fund of rm98 million as at Sept 30, 2010. It also has receivables of rm34.26 million. It has stable of parcels of land measuring less than two acres in Kepong valued at rm10.8 million. The last revaluation of these pockets of land was more than seven years ago. However, its garment and fashion business does not warrant a premium to valuations. It has been constantly paying dividend over the past decade.
Will the takeover of Hing Yiap pave the way for Asia Brand corporation Bhd’s comeback to the stock market? Asia Brand, privatized in 2008, is controlled by Ng chin Huat, who in turn is a major shareholder of Everest that has acquired a controlling in Hing Yiap.
SP Setia: It is learned that the other 50% of Sentosa Jitra could be owned by Tan Sri Syed Mokhtar. To recap, in return for the development of the new health complex in Setia Alam, Sentosa Jitra will get the development rights for the government land along Jln Bangsar.
SP Setia: 7.23 (OSK), 8.00 (CIMB), 6.90 (MBB), 4.94 (Inter Pacific), 7.39 (RHB), 5.50 (Kenanga), 6.80 (AMResearch), 6.00 (ECM)
Axiata: Axiata Group will decide on whether it will impair its holding value in Indian mobile operator Idea Cellular at a board meeting in February 2011. Axiata was expected to take a charge on its stake in Idea, which it acquired at 100 rupees per share in 2008. Although Axiata’s businesses in Indonesia and Bangladesh are on an upward trajectory, there are still concerns about Indian unit Idea Cellular Ltd. While India ’ mobile market is booming, intense competition that put pressure on pricing has caused Idea to stutter as it seeks grow its market share.
In fact, Axiata has stated that it intends to write down the value of its 19.1% stake in Idea during its fourth quarter, which be announced in Feb 2011. Based on current market value (early Dec 2010) for Idea, the impairment charge would slash its FY2010 earnings forecast to a loss of RM695 million. Another forecasting lower earnings for Axiata’s local unit Celcom on the back of weaker margins as it seeks to aggressively push its data services via attractive subsidies.
While expecting Axiata’s Indonesian unit XL Axiata to take off, most were pleasantly surprise by the growth of its Bangladesh brand Robi. And while Axiata’s stake in Singapore’s M1 Ltd is still small at 29.5%, exciting developments down worth could it into a sleeper hit. Even Axiata’s overseas segments such as Dialog in Sri Lanka , which has been making losses have been showing improvement. Foreign interest in Axiata has risen to 16.1% as at end Oct 2010. The good news is that Axiata’s dividends will not be affected by its planned impairment of Idea since it is non cash item.
Axiata: 5.80 (OSK), 4.52 (Inter Pacific), 5.90 (CIMB), 4.50 (HDBS), 6.40 (AMResearch), 4.95 (ECM), 5.72 ( Macquarie ), 5.65 (Credit Suisse), 5.52 (RHB), 5.90 (JP Morgan), 5.45 (MBB), 5.50 (MIDF)
O&G Players: Petroliam Nasional Bhd (Petronas) is expected to award multi-billion ringgit contracts for the development of marginal oil fields by the end of Jan 2011 to several consortia comprising local and foreign companies.It is also believed that Petronas will unveil a new business model on the development of the marginal oil fields and possibly, more incentives for the industry.
It is believed that Kencana Petroleum Bhd and SapuraCrest Petroleum Bhd may form an alliance together with a foreign oil and gas major. SapuraCrest and Kencana have been busy raising capital to fund their expansion plans and are widely speculated to be one of the front runners.
Other potential beneficiaries, according to industry analysts, include Tanjung Offshore Bhd, Petra Energy Bhd, Malaysia Marine and Heavy Engineering Bhd and Perisai Petroleum Teknologi Bhd.
Friday, August 5, 2011
JIT News - Petra, IJM Land/MRCB, Maybulk/Hubline ... 4/1/2011
Petra Energy/Petra Perdana: Sources say Petra Energy Bhd is close to securing a rm100 million contract from Murphy Oil for hook up and commissioning works. It is learnt that Petra Energy Bhd could make an announcement to the local bourse soon after ironing out a few minor issues. Petra Energy is 29% owned by Petra Perdana.
Target Price: 1.21 (OSK), 1.92 (CIMB), 0.98 (CIMB), 1.26 (ECM)
IJM Land/MRCB: Despite the termination of merger talks between IJM Land and MRCB, prospects of both MRCB and IJM Land are still upbeat. In fact, industry observers said the aborted plans may work out to be a blessing in disguise in favor of MRCB. MRCB is well regarded as the front runner in securing the lead developer role, if not a major participation in the development of the 3300 acre RRIM land in Sungai Buloh. This is by virtue of the fact that the EPF is MRCB’s controlling shareholder with a 41.63% stake.
For EPF to maximize its returns from the RRIM Land , MRCB holds a significant interest has to play a major role. If the merger talks were to be reignited after it is being firmed up that MRCB would have a major role in the RRIM land, the latter’s shareholders – which include the EPF – would benefit from a higher swap ratio against IJM Land shares.
While details on why the deal fell through remain doubts at this stage, it is believed that a contributing factor was the pricing for MRCB’s concession assets. They were rationalized by IJM Land and would make up the potential cash payout on top of the swap price of rm2.30 for MRCB. The ref price for IJM Land was set at rm3.65. The termination of the merger deal is less negative for MRCB given its lower valuation for the swap price.
However, optimists did not expect this would not be the end to possible future partnerships between the two entities. With MRCB and IJM Land having the EPF as a common major shareholder, it is inevitable that both will enter into future partnerships or contemplating another merger again.
Maybulk/Hubline: The Baltic Dry Index (BDI) a barometer of global shipping prices for the dry bulk cargoes including coal, iron ore, and grain fell 41% to 1773 points on year end 2010 compared with a high of 2995 in Sept 2010. The dwindling demand for dry bulk cargo such as iron ore and an oversupply of vessels have resulted in lower charges for transporting these items. This has lent credence to expectations that dry bulk shipping companies profitability in the near future could be under threat as vessel capacity supply grows faster than the growth in dry bulk cargo consumption.
Target Price: Maybulk: 2.70 (CIMB), 3.70 (OSK)
Target Price: 1.21 (OSK), 1.92 (CIMB), 0.98 (CIMB), 1.26 (ECM)
IJM Land/MRCB: Despite the termination of merger talks between IJM Land and MRCB, prospects of both MRCB and IJM Land are still upbeat. In fact, industry observers said the aborted plans may work out to be a blessing in disguise in favor of MRCB. MRCB is well regarded as the front runner in securing the lead developer role, if not a major participation in the development of the 3300 acre RRIM land in Sungai Buloh. This is by virtue of the fact that the EPF is MRCB’s controlling shareholder with a 41.63% stake.
For EPF to maximize its returns from the RRIM Land , MRCB holds a significant interest has to play a major role. If the merger talks were to be reignited after it is being firmed up that MRCB would have a major role in the RRIM land, the latter’s shareholders – which include the EPF – would benefit from a higher swap ratio against IJM Land shares.
While details on why the deal fell through remain doubts at this stage, it is believed that a contributing factor was the pricing for MRCB’s concession assets. They were rationalized by IJM Land and would make up the potential cash payout on top of the swap price of rm2.30 for MRCB. The ref price for IJM Land was set at rm3.65. The termination of the merger deal is less negative for MRCB given its lower valuation for the swap price.
However, optimists did not expect this would not be the end to possible future partnerships between the two entities. With MRCB and IJM Land having the EPF as a common major shareholder, it is inevitable that both will enter into future partnerships or contemplating another merger again.
Target Price: IJM Land : 3.88 (ECM), 3.50 (RHB), 3.88 (AmResearch), 3.20 (Credit Suisse)
MRCB: 2.90 (HDBS), 1.96 (RHB), 2.30 (OSK)
MRCB: 2.90 (HDBS), 1.96 (RHB), 2.30 (OSK)
Maybulk/Hubline: The Baltic Dry Index (BDI) a barometer of global shipping prices for the dry bulk cargoes including coal, iron ore, and grain fell 41% to 1773 points on year end 2010 compared with a high of 2995 in Sept 2010. The dwindling demand for dry bulk cargo such as iron ore and an oversupply of vessels have resulted in lower charges for transporting these items. This has lent credence to expectations that dry bulk shipping companies profitability in the near future could be under threat as vessel capacity supply grows faster than the growth in dry bulk cargo consumption.
Target Price: Maybulk: 2.70 (CIMB), 3.70 (OSK)
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