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Friday, August 31, 2012

Singapore’s privatisation wave to continue: CIMB


Singapore’s wave of privatizations may continue, CIMB says. “Globally, corporates have been building up cash to prepare for the worst, ever since the global financial crisis. They have the means to make an offer.”
While the initial battles for APB and Cerebos weren’t surprising as Asian consumer businesses are among the few growing structurally globally, battered-down coal play Sakari joining the fray wasn’t anticipated, the house says, believing the acquirer detected long-term value; “poor prospects are by no means a sure-bet on underperformance,” it says. “Cashed-up buyers, highly-valued Asian consumer franchises and bashed-up valuations for cyclicals have all contributed to the trend.”

The house sifts the market for stocks trading below historical valuation ranges and shareholders with both interest and the means to de-list them. It tips candidates asChemoilCH OffshoreHiap SengKS EnergyMermaid MaritimeOtto Marine,STX OSVYangzijiangBukit SembawangHo BeePan PacificSingapore Land,Great EasternM1ArmstrongMewah and Biosensors.

Hua Yang allocates RM300m for land acquisition


KUALA LUMPUR: Hua Yang Bhd has allocated over RM300mil to buy more land as it plans to launch RM815mil worth of property projects in the financial year ending March 31, 2013 (FY2013).
Its CEO and executive director Ho Wen Yan said the property company had planned several launches in the current FY13 and it was "on track to achieve our targeted property launches worth RM815mil".
"We are constantly on the lookout to acquire land in Malaysia in FY2013, particularly in the Klang Valley, Johor and Perak and we have allocated over RM300mil for the said acquisitions," he said in a statement released after the AGM on Thursday.
Ho said Hua Yang had launched a few property projects valued at RM212mil in FY13, in the Klang Valley, Johor and Perak.
Hua Yang had a soft launch of its first phase in Taman Pulai Hijauan in its 140 acres mixed development township with total gross development value (GDV) of RM380mil in the first quarter of FY13.
On the cards are projects comprising of service apartments and retail units worth RM160mil in the Desa Pandan area and service apartments and retail units worth RM175mil in Section 13, Shah Alam.
"We strive to constantly improve our performance. Our revenue has increased four-fold to RM306.4mil in 2012 from 2008. This has also improved our net profit attributable to equity holders to RM53mil from merely RM6.6mil over the same period. We are also able to deliver a net return on shareholders' equity of 20% in 2012 compared with 4% in 2008," he said.
"With our strategic land banks and various launches in the pipeline, we now have a stronger platform to sustain our future growth. The government's recent emphasis on encouraging affordable housing should also augur well for Hua Yang, given our niche focus on delivering homes in this specific segment," Ho added.
Hua Yang has 766 acres of undeveloped land bank with an estimated GDV of RM2.2bil, which would be sufficient for its property development ventures for the next six to eight years.

Hua Yang plans RM815m property launches


PETALING JAYA: Property developer Hua Yang Bhd will launch RM815mil worth of property projects in the financial year ending March 31, 2013 (FY13) and has allocated over RM300mil for future land acquisition development.
So far, the company has launched a few property projects worth RM212mil in the current financial year across Klang Valley, Johor and Perak.
Chief executive officer and executive director of Hua Yang Bhd Ho Wen Yan said in a statement: “We strive to constantly improve our performance and our revenue has increased four-fold to RM306.4mil in 2012 from 2008.
“This has also improved our net profit attributable to equity holders to RM53mil from merely RM6.6mil over the same period. We are also able to deliver a net return on shareholders’ equity of 20% in 2012 compared with 4% in 2008.”
Ho said the company currently had a total undeveloped land bank of 766 acres with an estimated gross development value (GDV) of RM2.2bil, which can sustain its property development ventures for the next six to eight years.
“We have acquired land banks that are worth a total cumulative GDV value of RM549mil for a total cost of RM72mil in FY12.

Thursday, August 30, 2012

Olam down after Q4 profit fall, brokers cut target Olam down after Q4 profit fall, brokers cut target


Shares of Olam International fell as much as 3% to a three-week low after the Singapore commodities firm reported a 14% fall in fourth-quarter net profit and several brokers cut their target prices.

Olam shares hit an intra-day low of $1.93 on Wednesday, the weakest level since Aug 7. More than 19 million shares changed hands, 1.8 times the average full-day volume over the past 30 days.
Olam reported net profit of $109.5 million for the three months ended June, down from $127.4 million a year earlier, partly dragged by its industrial raw materials segment.

“Olam expects challenging market conditions to persist in the near term (in particular cotton, for at least another six months),” DBS Vickers said, cutting its earnings estimates for 2013-2015 fiscal years by 9-14% on lower margin outlook.

DBS reduced its target price on Olam to $1.80 from $2.00 and maintained its ‘hold‘ rating.

Nomura said with Olam shares having gone up 20% in the last three months and no visible near-term catalyst, it expects some weakness in the stock. Nomura cut its target price to $2.50 from $2.60 but maintained ‘buy’.

CIMB Research said it believes Olam has survived the worst of the earnings compression, as cotton is expected to recover from the second quarter of 2013 and the group will reap rewards as acquisitions start to pay off.

CIMB maintained its ‘outperform” rating and $2.61 target price on Olam.

Worst is over for Olam: CIMB


The worst is over for Olam, CIMB says. “Firstly, cotton is expected to recover from 2Q13. Secondly, EBIT margins came under pressure as the group front-loaded its planned investments.”

It notes management indicated it will slow the investment pace and focus on extracting value, implying profit and margin uplift. It notes excluding bio-gains, FY12 core net profit was 9% below its forecast, while headline net profit came in at 110% of its estimate; FY12 headline net profit fell 14% to $371 million as weak cotton and wood markets continued to drag the industrial raw material segment, while high opex for business expansion and gestation of new acquisitions helped lead to a 0.5 percentage-point compression in net profit margin, it says.

It keeps an Outperform call with $2.61 target. “The group will reap rewards as acquisitions start to pay off.” The stock is down 2.3% at $1.945.

Wednesday, August 29, 2012

渣打: 中印需求再涨 原棕油价可攀至RM3500


四小龙显疲态 泰菲马印经济钱景亮



JPMorgan advises long SGX, short HKEx, eyes 10% upside


JPMorgan advises long Singapore Exchange/short HKEx trade, for 10% upside in a 4-6 weeks’ time.
It expects SGX to outperform HKEx over next 4-6 weeks for three reasons: trading volumes at SGX are up 18% in last three months, while down 33% at HKEx; SGX share price is factoring in 11% lower volumes vs 30-day moving average turnover, while HKEx is factoring in 20% higher than current volumes, and “we think street expectations for 2012 HKEx earnings are at higher risk of downgrades.”

JPM adds, the HKEx/SGX price ratio is at 15.45x right now, which it expects to move down to 14x, with a stop loss at 16x.

DMG starts Nam Cheong with ‘buy’; target $0.29


DMG & Partners Securities initiated coverage of Singapore-listed Malaysian offshore vessel builder Nam Cheong with a ‘buy’ rating and a target price of $0.29.

Nam Cheong shares rose as much as 2.5% to $0.205 on Tuesday. The stock has surged around 58% so far this year, versus the 17% gain in the FT ST Small Cap Index.
Nam Cheong is the dominant offshore support vessel builder in Malaysia with a market share of 75% last year, DMG said, adding it expects the company’s net profit to double over the next two years on the back of strong vessel sales.

The broker said Nam Cheong offers a short time to delivery because of its build-to-stock model and the company is set to benefit from the higher capital expenditure of Malaysia’s state-owned oil and gas company Petronas.

Petronas has budgeted 300 billion ringgit ($120.7 billion) for capex over the next five years, an increase of 80% over the previous five, in response to its falling oil production, DMG said. “This provides a massive stimulus package to the entire Malaysian oil and gas industry.”

Nam Cheong a “steal” even after Monday’s 7% rise: DMG


Nam Cheong is trading at $2, in high volume of 4.5% of shares traded on the SGX, retracing just a tad of Monday’s 7% rise after DMG & Partners initiates the stock at Buy, saying at 5.4x FY12-13 blended EPS, the stock is a “steal”.
It sees a strong chance net profit will double over the next two years, with increasing vessel deliveries and higher-value vessels; it forecasts FY11-13 EPS CAGR of more than 40%. Nam Cheong is the dominant OSV builder in Malaysia, with a 75% market share last year, boosted by its short delivery times due to its build-to-stock model, it notes.

The house adds, an 80% increase in Petronas capex over the next five years offers a massive stimulus package to the entire Malaysian O&G industry. It sets a $0.29 target price, based on 8.5x blended FY12-13 EPS, which it views as undemanding. The 2% dividend is a “sweetener,” it adds. Orderbook quotes suggest it won’t retest its $0.197 intraday low, while its $0.205 intraday high both Monday and Tuesday may cap any gains.

Olam fourth-quarter profit falls 14% on industrial raw materials


Olam International, the food commodities supplier partly owned by Singapore’s Temasek Holdings, said fourth-quarter profit fell 14% on lower earnings at its industrial raw materials unit.

Net income was $109.5 million in the three months ended June 30, from $127.4 million a year ago, Singapore-based Olam said today in a statement. That beat the average estimate of $90.9 million by three analysts surveyed by Bloomberg. Revenue climbed 13% to $5.1 billion.
Olam, the third worst-performer this year on Singapore’s benchmark index, today reported its first decline in full-year profit since 2002, according to data compiled by Bloomberg. Net contribution from its second-largest unit by revenue in 2011 that supplies cotton, timber and rubber fell 48% to $68.5 million in the quarter from a year ago, Olam said today.

“While management has guided for cotton to be a drag into the fourth quarter, the year-on-year impact may still disappoint,” James Koh, an analyst at Maybank Kim Eng Holdings in Singapore, said in an Aug. 23 report.

The stock gained 0.3% to $1.99 at the close in Singapore today, before the earnings announcement. Olam is down 6.6% this year, compared with the 15% gain in the benchmark Straits Times Index.

“Our business continued to face macro-economic headwinds stemming from the global economic uncertainties,” Olam said in the statement. “Trading conditions, particularly in our industrial raw materials segment, continued to remain with a negative impact on our overall performance.”

Full-year net income fell 14% to $370.9 million, beating the average estimate of $354 million by 19 analysts, according to data compiled by Bloomberg.

Commodity prices as measured by the Standard & Poor’s GSCI Spot Index of 24 raw materials declined 13% in the quarter. The price of cotton has declined 17% this year on ICE Futures US in New York.

SembMarine unit wins $844m contract to build 8 FPSO modules


Sembcorp Marine’s subsidiary Jurong do Brasil Prestacao de Services Ltda (JDB) has secured a contract worth US$674 million ($844 million) for the construction of a total of 8 modules and module integration works for 2 Floating Production Storage and Offloading vessels (FPSO) P-68 and P-71 from Tupi B.V., a consortium owned by majority shareholder Petrobras Netherlands B.V., together with BG Overseas Holdings Ltd and Galp Energia E&P B.V.
Under the contract, the FPSOs P-68 and P-71 will have identical work scopes, comprising the fabrication of 4 modules for each FPSO and module integration works. Scheduled for completion in 60 months, the P-68 and P-71 will be deployed in the Tupi field offshore Brazil. Each FPSO will have a production capacity of 150,000 barrels of oil per day (bopd).

As part of the agreement, Tupi B.V. has a similar contract option to construct 4 modules and modules integration for a FPSO to be exercised within 18 months of the contract signing.

The fabrication of the modules and the integration of the FPSOs will be carried out in Sembcorp Marine’s wholly-owned Brazilian subsidiary Estaleiro Jurong Aracruz.

Monday, August 27, 2012

Odds of Global Recession Are 100%: Marc Faber


There’s still a 100 percent chance the world heads into recession, Marc Faber, publisher of “The Gloom, Boom & Doom Report,” told CNBC’s “Closing Bell” on Thursday, echoing a call he made in May.

Bloomberg | Getty Images
Marc Faber, managing director of Marc Faber Ltd. and publisher of the Gloom, Boom and Doom Report

When you look at the major economies, Europe, the U.S., China and the emerging markets that are dependent on China for growth, Faber, aka Dr. Doom, only sees weakness.

“Europe is already in recession,” he said. “Germany is still growing very, very slightly, but is likely to go into recession soon.”
Growth in the U.S. is also falling off. “The U.S. economy has decelerated and I don’t see much growth in the next six to 12 months,” Faber said. 

There’s also little the Federal Reserve and other policy makers can do to turn the U.S. economy around. “I think that if you look at the injection of liquidity and the intervention by the Federal Reserve and the Treasury with fiscal measures, it has already impoverished the U.S. economy,” he said. 

It would take “massive easing, a huge balance sheet expansion,” to boost economic activity in the U.S., according to Faber. (Read More: More Easing Not Needed If Growth Holds Up: Fed's Bullard.)

Faber also doesn’t expect much change in the U.S.’s finances regardless of who wins the election in November. “The deficit is $1.3 trillion and, in my view, will go up,” he cautioned. (Read More: The Biggest Holders of US Government Debt.) 

Even corporate profits, the lone bright spot, look to be at risk. “The corporate sector has recovered remarkably since the trough in earnings in 2009 and we are at record high earnings,” Faber said, but added, “Corporate profits will disappoint over the next 12 to 18 months.”



新浪财经讯 北京时间8月24日下午消息,老一代“末日博士”麦嘉华(Marc Faber)周四接受CNBC的《收市钟声》节目采访时表示,世界经济陷入衰退的可能性仍为100%,早在今年5月,他就曾有类似言论。   麦嘉华表示,当你看世界这些主要经济体——欧洲、美国、中国以及依靠中国取得增长的新兴市场时,只能看到疲弱。他说:“欧洲已经陷入衰退,德国仍在小幅增长,但是离衰退也不远了。”

Olam isn’t out of the woods yet: DBS Vickers


Olam isn’t out of the woods yet, DBS Vicker says.

It expects fiscal-4Q12 core earnings to rise 12% on-quarter to around $90 million on the almond harvest and coffee origination, but the industrial raw-materials segment should offset other segments’ gains, with its net contribution possibly dropping 71% on-year, on lower cotton and timber volumes.
“There is potentially further downside risk to our 4Q12 expectations from weaker than expected US/European dehydrates/cocoa/chocolate/cotton demand.”

The house adds, it may take longer than originally forecast for Olam’s free-cash-flow to turn positive.

“While we like Olam’s growth prospects and strong management team, the group has been in negative free cash flow, given a heavy investment phase over the last five years and skittish market conditions.”

It expects positive FCF next year, but it will depend on the level of capex outlay needed for potential M&As. It keeps a Hold call with $2.00 target.

The stock is down 1.0% at $2.04 at 1:46 pm

More room for Singapore shares to rise: Credit Suisse


While Singapore shares have rerated and yields have compressed, valuations have more room to expand, Credit Suisse says.

It notes the MSCI Singapore’s P/E multiple, vs MSCI Non-Japan Asia, has behaved counter-cyclically long-term, with the city-state seen as having lower earnings risk and as a defensive, safe-haven trade.
“While it is not at bottom valuations, Singapore is one of the few countries in NJA witnessing EPS upgrades. Unless earnings/earnings growth at key regional economies (China/India) improve and outpace Singapore (something that still remains uncertain), we think total (USD) MSCI Singapore returns can continue to match, if not outperform NJA.”

It tips underweighting Singapore banks on earnings concerns, with UOB its top pick. It tips overweighting selective property and REITS, with CapitaLand its top developer pick, CapitaMall Trust its preferred proxy to resilient retail-sector fundamentals, andCDL-HT its preferred proxy to thriving visitor arrivals.

It advises overweighting capital goods, with Keppel the best offshore-equipment demand exposure. It tips adding cyclical exposure through Golden Agri and Olam. It prefers “local” telecoms, tipping M1 over SingTel.

It sets a one-year-forward STI target of 3,350.

Singapore small-caps to see further interest: CIMB


Given the STI's rally, small-caps should see continued interest, CIMB says, but advises only adding positions on stocks with catalysts.
It notes the STI is up around 15.9% year-to-date, while small-caps, measured by the FSTS Index outperformed, rising around 17.2% year-to-date and the FSTM midcap index is up around 20.6%; it says REITs' presence in the mid-cap index explains its outperformance amid the current clamour for yield.

CIMB believes Singapore stocks are already "positioned for doomsday," with valuations pricing in an eventual 20% equity-price decline; "timing markets this year is utterly impossible but picking stocks with strong balance sheets, limited valuation downside and potential for some growth could prove fruitful."

It adds, stocks in industries still experiencing strong demand, such as offshore marine, may also do well. Among smaller-cap plays, it tips stocks it would add as EzionFrasers Commercial TrustYongnamChina MinzhongMidas and Tiger Airways. "Given the uncertain economic outlook, we believe domestic-focused companies may do well. In this category are Sheng Siong and Raffles Medical."

Vessel sales strengthen Nam Cheong track record: DBS Vickers


Nam Cheong’s sale of three vessels, two AHTS and one PSV, boosts its orderbook to MYR912 million ($366 million), DBS Vickers says.
The total price tag for the three vessels is largely in line with the house’s estimates at about US$12 million for each AHTS and about US$20 million for the PSV, it says, adding it won’t be changing its earnings forecasts as the sales are within its expectations for the year. It notes the PSV was sold to a new customer based in West Africa.

“The sale of the PSV marks the penetration of a new offshore oil & gas market for Nam Cheong, and expands its future geographical scope. These sale contracts also further strengthen Nam Cheong’s track record of being able to sell its built-to-stock vessels well ahead of completion.”

It expects Nam Cheong’s earnings to be stronger in 2H12 with more vessels to be delivered during this period. It keeps the stock at Buy with $0.24 target, expecting FY11-13 earnings CAGR of close to 30%. The stock is up 1.1% at $0.185 at 4:38 p.m.

Kreuz valuations unjustifiably cheap-DBS Vickers


Kreuz’s valuations are unjustifiably cheap, DBS Vickers says. 2Q12 net profit of US$13.3 million ($16.6 million), up 29% on-quarter, was above expectations on accelerated revenue recognition, while 1H12 net profit of US$23.6 million was nearly 75% of its FY12 estimate, it says.

It expects margins to improve with the 2Q12 acquisition of a diving-support vessel as it eliminates the higher costs of hiring third-party vessels. Year-to-date order wins of US$155 million surpassed DBSV’s initial US$150 million FY12 assumption and it doesn’t rule out further upside; it expects FY13 order wins to be similar given the region’s robust offshore E&P activity.
It expects 2H12 earnings to decline on-half on seasonality, but still forecasts FY12 net profit growth of 16%; it raises its FY13 earnings estimate by 5% on potentially better margins.

It forecasts FY11-13 net profit CAGR of 18%. “Despite a healthy earnings outlook, the counter has underperformed the broad index in 2012 and is still trading below 4X FY13 P/E.” 

P.I.E. banks on its e-commerce business solutions


GEORGE TOWN: P.I.E. Industrial Bhd expects the e-commerce business solutions sector to grow its business and to cushion against a softening global market for the group's industrial electronic products.
Group managing director Alvin Mui said that the group was now exploring to develop a new generation of e-commerce platform solutions that could support a more comprehensive range of business transactions.
“The increasing use of smart mobile devices is driving the popularity of e-commerce solutions supported by cloud-computing.
“We can see more people buying cinema tickets from their hand-held smart devices compared to a year ago,” he said.
According to the Connecticut-based Gartner, the sales of smart phones worldwide increased 42.7% to 154 million units in the second quarter 2012, compared to the corresponding period a year ago.
Smart phones comprised 36.7% of the 419 mobile phones sold worldwide in the second quarter of 2012.
Rakuten, a leading Japan-based internet service company that provide e-business solutions, revealed in a new survey that Brazil is leading the global e-shopping charge with 81% of consumers keen to shop in different markets online, followed by Indonesia (77%) Thailand (74%), China (69%) and Spain (66%).
According to M-Connect Solutions, a leading web company based India, the first quarter 2012 saw e-commerce transactions in the United States hitting US$50.27bil, a 15% growth over the same period a year ago.
The online products were for supporting various activities and transactions such as business, education, and healthcare.
“The e-commerce solutions will also have improved user experience, added security and confidentiality,” Mui said.
Mui said the group aimed to introduce the e-commerce solutions for the market next year.
On P.I.E.'s industrial product and cable manufacturing business, Mui said the group's newly-completed cable manufacturing facility in Seberang Jaya Industrial Park would start operations in the fourth quarter 2012.
“The plant will produce all range of cables for telecommunication infrastructure, automotive, audio-visual, and industrial products.
“It will raise our group's cable production capacity by about 40%. The cable business generates about 30% or RM105mil of the group's RM350mil revenue for 2011,” he said.
Although the present global market had softened for industrial and cable products, the new plant will position the group to better serve its customers when the economy recovers, Mui said.
The group expects its sales for industrial products this year to remain flat compared to a year ago, Mui said.
“The advantage that we have now is the stability of raw material prices, which has ensured steady flow of orders.
“If it fluctuates too much, the pricing will influence the customers to adopt a wait and see attitude before buying,” he said.
The two key essential raw materials such as copper and polyvinyl chloride (PVC) of the group, the copper price remains more stable around US$7,500 per tonne compared with a big fluctuation from US$3,000 to US$9,000 per tonne in last two years, while the PVC price is also more stable due to the less fluctuation in world crude oil price.

Yinson to invest RM47mil in Vietnam port ops


By Zazali Musa
JOHOR BARU: Yinson Holdings Bhd will invest US$15mil (RM46.5mil) to build warehouse facilities at Vietnam's PTSC Phu My Port in the third quarter of 2013.
Chairman and managing director Lim Han Weng said with the new facilities, the company would be in a better position to strengthen itself in the related port and logistic activities there.
“Vietnam's port industry is still not fully exploited, hence the prospects are good with many opportunities for us,” he told StarBiz.
Lim said the company was currently talking with several Vietnamese animal feed importers who had shown strong interest to lease the warehouse facilities.
He said the new warehouse facilities would also make PTSC Phu My Port the preferred port in Vietnam.
“This in return will improve services and logistic at the port and help to reduce backlogs,” said Lim.
He said backlogs and delay in unloading and loading of cargoes at most Vietnamese ports were normal occurrences due to aging infrastructures and equipment.
Presently it could take up to three weeks to unload the crop at the port as the 60,000 to 70,000-tonne vessels carrying them had to be anchored far away from the wharves.
Yinson holds a 40% equity in PTSC Phu My Port while PetroVietnam Technical Services Corp has a 60% stake.

Thursday, August 23, 2012

Nomura cuts SGX’s target price to $7.60, maintained neutral rating


Nomura cut its target price on Singapore Exchange (SGX) to $7.60 from $9.40 and maintained its ’neutral’rating, saying that the bourse operator’s sluggish revenue momentum is expected to continue.

SGX shares were unchanged on Thursday morning. The stock has risen 13.5 per cent so far this year versus a 16% gain in the broader Straits Times Index.
Nomura said the drop in its target price was mainly to reflect lower expectations for SGX’s securities average daily value traded (DVT) to $1.3 billion from $2.0 billion. It added that DVT will have to recover above $1.5 billion to support a re-rating.

But SGX is diversifying its revenue base in terms of products and geographies, Nomura said, adding that potential tie-ups with other bourses could generate upside to revenue.

JB Foods posts lower Q2 profit, revenue


PETALING JAYA: JB Foods Ltd posted a 4.7% year-on-year drop in net profit to RM10.5mil for its second quarter ended June 30, 2012 while revenue was 20.9% lower year-on-year at RM128.4mil.
For the first half of the year, the company suffered a 11.4% year-on-year drop in net profit to RM22.5mil while revenue declined 21.3% to RM271.6mil.
JB Foods told the Singapore Exchange (SGX) that the lower revenue was mainly due to lower cocoa bean terminal prices, which resulted in lower average selling price for its cocoa ingredient products.
The company also said its sales decreased by 1,556 tonnes to 22,134 tonnes in the first half of 2012, compared with 23,690 tonnes in the same period last year, mainly due to the disruption in production caused by a planned integration of expansion works-in-progress.
JB Foods, which is among the major cocoa ingredient producers in Malaysia, was listed on the main board of the SGX last month at 30 Singapore cents (75 sen) per share.
It has a cocoa processing plant in the Port of Tanjung Pelepas, Johor and its principal activities comprise the production and sales of cocoa ingredient products, namely cocoa butter, cocoa powder, cocoa liquor and cocoa cake.
The company said earnings per share for the second quarter was 7.97 sen, and has recommended a one-tier tax exempt interim dividend of one cent (2.5 sen) per share.
JB Foods said in a statement that it will endeavour to capitalise on increasing cocoa powder demand in Asia.
JB Foods chief executive officer Tey How Keong said the company has a strong reputation among global customers which were mainly multinational companies.
“We believe we are in a good position to grow in tandem with such customers as they extend their presence in key Asian markets such as Indonesia, India and China,” said Tey.
JB Foods' share price dropped one cent to 28.5 cents (71 sen) yesterday.

Wednesday, August 22, 2012

冀今年出口倍增至150吨 缅甸振兴稻米业争第一


当局正鼓励孟山都(Monsanto)公司和杜邦旗下的先锋喜孕育(Pioneer Hi-Bred)等跨国公司前来投资。




Noble will target US agriculture assets to tap China demand


Noble Group, Asia’s biggest listed commodity supplier, will target agricultural assets in the US as it seeks to meet demand from China and sees potential for deals across its units.
“It’s hard to be the supplier and partner of choice for China in the grain space, and especially in the corn space, without having significant origination assets in the US,” CEO Yusuf Alireza said today in interview with Susan Li on Bloomberg Television’s “First Up” programme. “Over the medium term, that’s an investment we’re looking to make.”

Noble announced at least US$2 billion ($2.5 billion) of deals in the past three years as it built its sugar operations in Brazil and energy assets in the US and Australia. The Hong Kong-based company last month said it was time to build the agriculture unit after shelving plans to sell shares in the business.

“We’re seeing a consolidation process in the agriculture sector and that’s going to arise very significant opportunities,” Alireza said today. Noble is considering different options including acquisitions and potential partnership with US companies, he said.

Noble’s second-quarter profit rose 39% to US$194.8 million as it posted record sales in its energy and metals units, the company said Aug 13. The agriculture unit, Noble’s second-biggest by revenue, accounted for 17% of sales in the six months ended June 30, according to Bloomberg calculations. Energy is its biggest business, comprising nearly 70% of its sales.

Corn Importer
“China is going to be the largest importer of corn over the next few years and we want to be in the position to help supply that,” Alireza said. The Asian nation was the world’s sixth-largest buyer of corn in 2011-12, according to the US Department of Agriculture. The US was the top corn producer, according to the USDA.

There have been 293 announced agriculture deals in the past year, with a combined value US$13.4 billion, including Glencore International Plc’s bid for grain handler Viterra Inc. for C$6.1 billion ($7.8 billion).

Noble will receive US$800 million from asset sales in the next five months and will look at “interesting asset opportunities,” Alireza said.

“The environment is going to be a tough environment for the next 12 to 24 months,” he said. “One of things we’re making sure of is our balance sheet is strong and we’re in the position to build businesses in down markets and we see opportunities across all three of our platforms.”

Lian Beng JV wins $168m contract to build Thomson Grand


Paul Y.-Lian Beng JV, a joint venture company between Lian Beng Group and Paul Y. Construction and Engineering, has won a $168 million contract to build Thomson Grand, condominium at Upper Thomson Road.
The contract was awarded by Luxury Green Development, a unit of Hong Kong-listed Cheung Kong Holdings. Paul. Y Construction and Engineering is a unit of Hong Kong-listed Paul Y. Engineering Group.

The development covers a total land area of over 224,000 square feet. The condominium encompasses nine blocks of 20-storey residential flats, representing 339 units with 22 strata houses (for a total of 361 units), with one basement carpark, swimming pools and other and ancillary facilities.

The project, due to start this month and should be completed by February 2015.

Tuesday, August 21, 2012

KSL allocates RM200mil to increase Klang Valley landbank


KLANG: Johor-based developer KSL Holdings Bhd is in the process of increasing its current 500-acre landbank in the Klang Valley.
Khoo Soon Lee Realty Sdn Bhd, a unit of KSL, to embark on its maiden Klang Valley project, Canary Garden, at Bandar Bestari, Klang.
Project director Patrick Khoo Keng Ghiap, who oversees the project, told StarBiz the company had allocated RM100mil to RM200mil to increase its landbank in the Klang Valley in one year.
Khoo is the son of KSL managing director Michael Khoo.
<B>New project:</B> Khoo Soon Lee Realty sales and marketing head Chris Fong showing a model of the Canary Garden project in Klang.New project: Khoo Soon Lee Realty sales and marketing head Chris Fong showing a model of the Canary Garden project in Klang.
“Our gearing of 0.3 is relatively low compared to the other players.
“We definitely have to buy new land because that is how we generate income,” he said.
Quality land in the Klang Valley is getting scarce, Khoo said. “You'll just have to wait for the right opportunities.”
Some of the factors to consider when acquiring land are the plot ratio and location.
He said the company would like to focus on the Klang Valley and did not have plans to expand to other states like Penang or Malacca at the moment.
“We want to do it one step at a time and would like to build our name as a main developer in Klang,” he explained.
The developer moved from its base to the Klang Valley due to better margins, Khoo said.
KSL is not the only developer that has ventured into the Klang Valley from Johor. Another Johor property player, BCB Bhd, has also developed projects in the Klang Valley like Concerto Kiara @ Mont Kiara and a bungalow project in Taman Yarl.
KSL's Canary Garden project sits on 446 acres which were acquired by the company in 2010.
“Our competitive edge will be our design and landscaping.”
“Out of the 446 acres, 52 acres is considered big for landscaping,” he said, adding that not all developers would allocate much land for landscaping.
“Other factors will be security and amenities. We have proposed several schools on the 446 acres, pending approval of our master plan,” he added.
“We target to complete this project in five to ten years,” he said.
Since the launch of the first phase of Canary Garden four months ago, the company has generated about RM100mil in sales. About 90% of the houses launched have been sold.
KSL is also working on the next project a 50-unit condominium development in Ampang Hilir, Kuala Lumpur. It will sit on a 0.8 acre and is expected be completed in 2015.
The condominium, starting from 2,000 sq ft, works out to RM2.6mil or more per unit.
“It costs RM1,300 per sq ft which is still cheaper than that of our competitors,” he said.
Back in Johor, KSL has three developments near completion, namely Taman Nusa Bestari along Jalan Sungai Danga, Taman Bestari Indah in Ulu Tiram and Taman Kempas Indah in Kempas.
It also has recurring income from two hypermarkets and a mall in Johor Baru.

Saturday, August 18, 2012

Guan Chong won’t proceed with listing in Singapore


PETALING JAYA: Main Board-listed Guan Chong Bhd will not proceed with its secondary initial public offering (IPO) on the Singapore Exchange (SGX-ST) “for the time being.”
In a statement, managing director and CEO Brandon Tay said that after much consideration, the processing company wished to reassess its strategic directions with regard to capital requirements for expansion.
“The group remains committed to expanding its global reach and broadening its profile as one of the leading cocoa processors in the world, going forward.
Ultimately, we remain focused on implementing growth strategies to bring sustainable benefit to Guan Chong,” it said.
It did not provide a reason for not proceeding with the IPO for now.
In July, Guan Chong refuted a report that it may want to scrap its plan for a secondary listing in Singapore in favour of selling a stake via a corporate exercise.
Guan Chong had in April announced plans for a secondary listing on the Singapore stock exchange to facilitate access to the island nation’s capital market, expand and diversify its shareholder base, and to enhance its profile in the international market.
The company said then that of the 62 million shares offered, 31 million were new shares and another 31 million were vendor shares that would be offered by certain existing shareholders.
Shares in Guan Chong closed 7 sen lower yesterday to RM3.01. A total of some 291,000 shares were traded.

Friday, August 17, 2012

Barclays sees more orders for Sembcorp Marine


Barclays said Singapore’s Sembcorp Marine, the world’s second-largest oil rig builder, may get more orders from drilling companies that are upgrading their fleets to position themselves for future projects.
Sembcorp Marine shares have risen 34% so far this year, while its rival Keppel Corp has gained 24%. Both stocks have outperformed the nearly 16% gain in the broader Straits Times Index (.FTSTI).

Sembcorp Marine recently received a US$135 million ($169 million) order from Diamond Offshore to rebuild a semisubmersible rig, Barclays said, adding that several deepwater drillers have commented that there is no more rig capacity available in 2012, while 2013 looks increasingly supply-constrained.

“We believe this could incentivize more drillers to pursue similar upgrades to have capacity available in 2014, which would support further orders for the rig-builders such as SembMarine.”

Barclays has an overweight rating on Sembcorp Marine stock and a positive industry view.

WCT wins RM1bil highway project


PETALING JAYA: WCT Bhd has been awarded a RM1bil highway project from the Oman government via a 80:20 joint venture with Oman Roads Engineering Company LLC.
In a filing with Bursa Malaysia, the construction outfit said the Oman Ministry of Transport and Communications had accepted its tender for the construction and completion of Batinah Expressway, Package 2 in the Middle East country.
The scope of works comprises the construction and completion of a 44.75km dual four lanes expressway, and it is expected to be completed in 36 months.
WCT said the contract was expected to contribute positively to the group's earnings and net assets for the financial years 2012 to 2015.

Thursday, August 16, 2012

Wilmar results were “kitchen sink and all”: Citi

Wilmar’s uncertain earnings outlook will likely spur investors to look closer at its $2.60 NAV support, Citigroup says.

“While it continues to demonstrate steady market share gains/volume growth and is likely to see seasonally stronger 2H, investors will likely wait for few quarters of improved operating performance before looking again at the stock.” It says 2Q12 was the “kitchen sink and all,” its weakest quarter ever.
The much-watched Oilseeds division’s 2Q12 losses narrowed to US$40 million ($50 million) from 1Q12’s US$53 million loss as Wilmar throttled back soy-processing volumes, supporting expectations losses will narrow further or turn a slight profit in 2H12, it says. But Wilmar showed weakness elsewhere, mainly on margins, it notes.

Citigroup expects further negative revisions to Street FY12 estimates even as it already received one of its sharpest revisions of around a 25% cut after 1Q12 results. “The worst of its negative revisions should set in post these results.” It rates Wilmar Buy with $4.80 target, but expects to review estimates post-briefing. Wilmar is down 7.4% at $3.14 at 11:57 a.m.


Wednesday, August 15, 2012

Noble profit rises 39% on record metals, energy sales

Noble Group, Asia’s biggest commodity supplier, said second-quarter profit rose 39 percent because of higher sales from energy and metals.

Net income was US$194.8 million ($242.5 million) in the three months ended June 30, from US$139.8 million a year earlier, the Hong Kong-based company said today in a statement. Sales rose 23% to US$24.2 billion.
Noble, which counts China’s sovereign wealth fund among its biggest shareholders, said today sales from its energy and metals units were a record in the quarter. Sales advanced 42% at its energy unit, its largest, and 28 percent in its metals business.

“These are generally pleasing numbers given that the market environment has been unusually uncertain for the entire period,” Chief Executive Officer Yusuf Alireza said in a separate statement.

The stock fell 2.2% to $1.115 at the close in Singapore today, before the earnings announcement. Noble is down 1.3% this year, compared with the 16% advance in the benchmark Straits Times Index.

Noble recorded a US$100 million gain in the quarter from the sale of its stake in Gloucester Coal to Yanzhou Coal Mining Co., the company said today. Yanzhou Coal merged its Australian unit with Gloucester and Noble retains 13.2% in the combined entity.


Wilmar 2Q profit falls 70% on oilseeds losses

Wilmar International, the world’s biggest palm-oil processor, said second-quarter profit dropped 70% on losses at its oilseeds and grains segment.

Net income fell to US$117.1 million ($145.9 million) in the three months ended June 30 from $393.1 million a year earlier, the Singapore-based company said today in a statement. That missed the US$316.5 million average of three analyst estimates surveyed by Bloomberg. Sales rose 4.3% to US$11 billion.
Wilmar’s profit dropped a second straight quarter as higher soybean prices, combined with escalating competition hurt crushing margins for companies including China Agri-Industries Holdings. Its oilseeds and grains division posted a pretax loss of US$40 million in the quarter on negative crush margin and depreciation of the yuan against the U.S. dollar, Wilmar said today.

“The poorer performance was largely due to losses at oilseeds and grains from a continued difficult operating environment in China and lower plantation profits reflecting lower prices, a drop in production yield and higher production cost,” Wilmar said in the statement.

The stock gained 1.8% to $3.39 at the close in Singapore today, before the earnings announcement. Wilmar has declined 32.2% this year, making it the worst performing member on the benchmark Straits Times Index.

“Crush margins in China remain weak,” Nomura Holdings Inc. analysts Tanuj Shori and Vishnuvardana Reddy wrote in a note dated Aug. 1. “We worry Wilmar may have been at the wrong end of rising soybean prices.”

The stock gained 1.8% to $3.39 at the close in Singapore today, before the earnings announcement. Wilmar has declined 32.2% this year, making it the worst performing member on the benchmark Straits Times Index.

China Agri, the Hong Kong-listed unit of China’s largest grains trader Cofco, said June 28 first-half profit fell as grain and soybean prices rose while demand for starch and rice was sluggish and China’s oilseeds crushing capacity continued to expand.

Soybean futures traded in Chicago averaged US$14.03 a bushel in the quarter, compared with US$13.61 a bushel a year earlier, and reached a record $16.915 a bushel on July 23 as the U.S. endured its worst drought in a half century.


Ho Bee sees 2Q earnings rise 45% to $73m

Ho Bee Investment announced earnings of $72.9 million for the 2nd quarter ended 30 June 2012. This was 45% higher than a year ago.
The increase in earnings was due mainly to the increase in turnover and a gain of $17.9 million in the sale of investment property. Group turnover amounted to $147.1 million, 7% higher than the same period last year. Share of profits of jointly controlled entities was however lower, at $4 million compared to $10.8 million in 2Q2011.

Revenue from property development for the 2nd quarter of 2012 rose 8% over the same period last year to $141.5 million. The bulk of the contribution to revenue was from One Pemimpin, the 115-units industrial development project which obtained Temporary Occupation Permit in April 2012.

Revenue from property investment for the 2nd quarter of this year was down 25% from $4.6 million in the same period last year to $3.4 million. This was due mainly to the sale of office space at Samsung Hub in 2011.

Earnings per share amounted to 12.6 cents while total shareholders’ fund as at 30 June 2012 rose to $1.69 billion, representing a net asset value of $2.40 per share. Net gearing decreased from 0.27 times as at the end of the last quarter to 0.26 times.

For the 1st half of 2012, earnings decreased 16% from $104.9 million in the previous year to $88.7 million. Group turnover was 14% lower, from $216.3 million in 1H2011 to $185.8 million, as a result of the lower revenue recognition from development properties.

Chua Thian Poh, Chairman & CEO of Ho Bee Group, said that the group’s earnings for the second half year will remain positive as the residential projects, Parvis and Trilight are expected to complete by the end of this year.


Tuesday, August 14, 2012

Handal upbeat on rising order book

KUALA LUMPUR: Integrated offshore crane services provider and fabricator Handal Resources Bhd remains upbeat on its future prospects, given positive revenue growth in its core business segments as well as a rising order book.

The group recorded revenue of RM43.6 million for the six-month period ended 30 June 2012 from RM38.4 million previously, a 13.6 per cent rise, driven largely by its core business of integrated crane services, which saw revenues increasing 44.7 per cent to RM25.1 million from RM17.3 million previously.

"We are heartened that Handal is still able to grow its topline despite a more competitive landscape and weakening global market sentiment in the first half of the year.

"In fact, our recently-renewed service contracts with two O&G giants in Malaysia have effectively bumped up our order book to RM300 million, which will sustain the group until 2017/18 with strong recurrent income.

"The second half of the year will be a crucial time for the group, not only in delivering the required services to our customers, but also in securing additional contracts to beef up our order book," said Handal's chief operating officer and executive director Zahari Hamzah in a statement yesterday.

The group recently witnessed a rising demand for its crane maintenance services just as its traditional oil and gas (O&G) customers of Petroliam Nasional Bhd (Petronas) and ExxonMobil renewed their contracts for the maintenance of their offshore cranes in Malaysia.

The contracts, signed separately in June, amounted to more than RM250 million.

In line with the increased activities in exploration and extraction, the group's workover projects lifting solutions segment grew 43.7 per cent to RM4.8 million from RM3.3 million, as a result of increased work scope and activities.

For the six-month period, Handal's group net profit reflected the competitive landscape in the O&G support services sector, with the group's bottomline declining from RM4.0 million to RM3.5 million. The lower profits were compounded by the group's higher cost of sales and overheads incurred during the period.

However, the group's first half net profit this year surpassed FY2011's net profit of RM3.1 million.

Basic earnings per share for 1H12 stood at 2.20 sen, based on the larger weighted average number of shares after the corporate exercises of Rights Issue of 2-for-3, and Bonus Issue of 1-for-6 rights share subscribed in Apr 2011, versus 4.50 sen in first half of 2011.

Zahari said the group is still bullish on the prospect of the Malaysia's O&G industry in light of Petronas and other O&G players' intensified efforts in exploration and production activities to enhance the nation's oil reserves.

"Petronas' commitment to invest RM300 billion of capital expenditure in the sector will provide spin-off benefits and positive prospects for industry players such as Handal," he said.

"Given the bright prospects going forward, we will continue to focus on delivering our services in a timely manner to our customers, whilst investing in new business activities to move up the value chain in O&G services," Zahari concluded.


Coastal Contracts sells four vessels for RM141mil

PETALING JAYA: Coastal Contracts Bhd, through its wholly-owned subsidiaries Coastal Offshore (Labuan) Pte Ltd and Thaumas Marine Ltd, has secured contracts for the sale of four vessels for an aggregate value of approximately RM141mil.
The vessels, one unit 300-man accommodation work barge, one unit anchor-handling tug supply and two units low-end vessels, are expected to deliver within this year and 2013.
From there, the revenue stream from the sale is expected to contribute positively to the group for the financial years ending Dec 31, 2012 (FY12) and FY13.
The group told Bursa Malaysia that it had about RM711mil worth of vessel sales orders waiting delivery to customers up to 2013.
Executive chairman Ng Chin Heng said that: “Following our recent order book intakes of RM446mil last month, we are glad to secure another major win within a short period of time despite the global economy’s growth is threatened by eurozone debt crisis and its spill-over effects.”
“We are pleased to have the opportunity to enter business relationships with our new customers through the sale of one unit 300-man accommodation work barge and two units tugboat. We would like to thank to our new customers for selecting us as their business partner.”
The 300-man accommodation work barge is designed to accommodate up to 300 work personnel and crew in the offshore work site. It is made to provide a better workplace to the offshore workmen.
This vessel is equipped with 88 cabin accommodation facilities and office facilities as well as with prayer room, TV room, gymnasium room, recreation room and more.
Except for the anchor-handling tug supply sold to a repeat customer, the rest of the vessels are sold to new customers from Singapore.


Saturday, August 11, 2012


大家不晓得是否还记得,该公司去年曾经要以8亿3000万令吉,将园坵卖给另一家上市公司IOI集团(IOI CORP),双方也签了买卖合约,IOI集团也交了10%的订金,此项交易,双方都通过大马股票交易所作出宣佈。
这3万英亩园坵,种植面积为25,820英亩,分为5个园坵:⑴Ladang Pertama:2703.90公顷⑵Ladang Sapa Payau:1638.80公顷⑶Ladang Sg.RukuRuku:3196.18公顷⑷Ladang Lokan:1873.93公顷⑸Ladang Sg.LokanBaru:2565.10公顷总共11,977.91公顷(29.599英亩)。