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Friday, November 29, 2013

Kimlun Corporation - 3Q weaker than expected on lower margins BUY


- We maintain BUY on Kimlun Corporation Bhd with a lower fair value of RM2.77/share (vs. RM3.20/share previously), following the weaker than expected 9MFY13 results.

- Kimlun posted a core net profit of RM22.9mil for 9MFY13, which is 39% lower than RM37.2mil last year. This made up 52% and 57% of our earlier and consensus full-year estimates, respectively.

- 9MFY13 group revenue was flattish at RM676mil YoY (vs. RM661mil in 9MFY12). This was due to a slower recognition of construction revenue (-12% YoY). Note that in 1HFY12, the group saw strong contributions from two big projects that had since been completed.

- Construction gross profit margin declined to 7% (vs. 9% a year earlier) due to a less efficient absorption of overhead costs and higher payroll costs. There was also additional capex for new equipment and costs incurred for the setting up of a cast yard.

- The slower construction revenue was mitigated by the manufacturing division (115% YoY topline growth) due to higher delivery of tunnel lining segments (TLS) and segmental box girders (SBG) for the KVMRT project. However, margins were squeezed (18% vs. 28% a year earlier) due to “carriage onward expenses” which were related to delivery cost of products.

- For the 9M period, Kimlun also booked a minor RM3mil in gross profit on the back of RM12mil in revenue for its maiden property project, Hyve in Cyberjaya.

- Despite a healthy balance order book of RM2.2bil as at end-Sept, the bulk of it would only be recognised next year onwards. This is because 68% of the total RM1.1bil new job wins were only secured in the 2H.

- We trim our FY13F-15F earnings by 10%-31% to account for lower margins, deferred recognition of construction jobs, and higher financing costs in relation to capex for new plants and equipment.

- However, we are not too concerned about its net gearing (0.6x as at end-Sept) as the group is undertaking a 1-for-4 rights issue with free detachable warrants that is expected to raise RM172mil.

- Potential jobs in the near-term include the TLS package (worth ~SGD100mil) for Singapore’s MRT Thomson line, which is expected to be awarded by year-end.

Source: AmeSecurities

Nam Cheong Ltd - Still at full steam


• Potential early beneficiary of renewed strength in offshore support vessel (OSV) market

• Earnings execution above estimates YTD in FY13; FY13/14 EPS estimates revised up by 6-8%

• Expecting healthy 2-year earnings CAGR of 22%; further upside if FY15 built-to-stock programme bigger than expected

• Maintain BUY with TP revised up to S$0.42, as we roll over valuations to FY14 earnings

Robust earnings execution YTD
On the back of improving industry dynamics, Nam Cheong has consistently exceeded our expectations on both order wins and earnings YTD in FY13. Its 3Q13 net profit came in at record levels of RM59.2m (up 88% y-o-y and 44% q-o-q) as top line more than doubled y-o-y to RM341m. Shipbuilding revenues were boosted by the sale of seven vessels during the quarter, while chartering segment saw additional contribution from two vessels. Shipbuilding gross margin came in better than expected at 23%, boosted by higher margin PSV sales.
Vessel sales momentum upbeat
YTD in FY13, the Group has already sold 20 vessels worth a total of US$432m, ahead of FY12 vessel sales (21 vessels worth US$423m). We estimate that 18 of the 19 vessels scheduled to be completed in FY13 and about 13 out of the 25 vessels scheduled to be completed in FY14 have been sold already. The Group’s FY15 new building programme has not been disclosed yet but could likely be bigger than FY14. 
Apart from the built-to-stock series, Nam Cheong is also building four ERRVs to be deployed in the North Sea and four MPSVs for Bumi Armada on a built-to-order basis. Its net orderbook is worth RM$1.4bn now.

Potential beneficiary of an upswing in the OSV cycle
As we factor in better margins amid potentially recovering asset values, and include higher contributions from the chartering segment, we revise up our FY13/14 net profit estimates by 6- 8%

Maintain BUY with higher TP of S$0.42, pegged to 10x FY14 earnings. Expect catalysts from strong earnings performance and upside potential from bigger FY15 newbuilding programme, when unveiled next year. Nam Cheong remains one of our top picks in the O&M sector. (Read Report)

国外晶片订单加持 东益电子营收看涨60%






东益电子总执行长王合利在接受《星报》访问时说,公司的三大产品将成为未来的销售推动力,这三项产品包括照明领域使用的发光二极管(LED)晶片、智能器材的感应晶片,及视像器材使用的成像模块(imaging modules),这些产品主要输往美国、欧洲及日本。



KPJ Healthcare shareholders give nod to proposed bonus, rights issues


JOHOR BAHARU: KPJ Healthcare Bhd's shareholders today approved the company's proposed bonus issue and renounceable rights issue with free warrants, proposals that are strategic for its long-term growth.
KPJ Healthcare chairman Datuk Kamaruzzaman Abu Kassim said the proposed bonus issue would be capitalised from the company's share premium and retained earnings accounts to reward existing shareholders for their loyalty and continuing support.
In addition, he said the proposed rights issue would enable the company to raise funds for its continuous expansion and growth plans, raise equity capital and strengthen its capital base as well as potentially increase the group's market capitalisation. 
"The new warrants are expected to provide KPJ shareholders with further investments at an attractive conversion price," he said after the company's extraordinary general meeting (EGM) here today.
KPJ Healthcare has proposed a bonus issue of up to 329.77 million new shares of RM0.50 each on the basis of one bonus share for every two existing shares held on an entitlement date to be determined later.
It has also proposed a renounceable rights issue of up to 43.97 million new shares on a one-for-15 basis, together with up to 87.94 million free detachable new warrants 2013/2018 on the basis of two new warrants for every one rights share subscribed. 
"KPJ shareholders who are entitled to participate in these proposals will benefit from the future growth of the company and any capital appreciation arising from it," Kamaruzzaman said. 
At the EGM, shareholders had also approved the proposed increase in the company's authorised capital from RM500mil comprising one billion shares of 50 sen each to RM750mil comprising 1.5 billion shares of 50 sen each.

MKH earnings rise 34% on current and new projects


PETALING JAYA: MKH Bhd’s earnings rose 33.5% to RM103.4mil for the full year ended Sept 30, underpinned by a higher percentage of profit recognition of ongoing and new development projects. Revenue rose 23.8% to RM688.29mil from RM555.92mil.
These projects were the Pelangi Semenyih 2, Hill Park Home, Saville@Melawati, Pelangi Seri Alam, Saville@the Park, Bangsar and Mewah 9 Residence. There was recognition of a bargain purchase gain on the acquisition of subsidiaries totaling about RM31.2mil.
As at end-September 2013, the group had a locked-in unbilled sales value of RM503.2mil. For its fourth quarter, MKH’s earnings dropped 20.23% to RM24.17mil due to the inclusion of foreign exchange (forex) losses totaling RM63mil. This was due to the weakening of the rupiah against the US dollar and the ringgit from the plantation division’s US-dollar and ringgit borrowings.
For the said period, revenue increased 21.1% to RM217.85mil from RM179.88mil, contributed by the plantation division arising from its increase in sales of crude palm oil and palm kernel, and the property and construction division from ongoing and new development projects.
MKH said that its profit before tax, excluding the forex losses, amounted to RM89.6mil for the current quarter, which was 131% higher than the preceding year’s corresponding quarter profit before tax of RM38.8mil.
This was due to recognition of a bargain purchase gain on the acquisition of subsidiaries totaling about RM26.5mil by the property and construction division.
There was also higher profit contribution from both the property and construction, and plantation divisions.

Thursday, November 28, 2013

KSL Holdings - Strong results from progress billings



3Q13 core PAT rose 61.4% yoy to RM68.4m, with YTD net profit of RM182.9m making up 104% and 117% of HLIB and consensus estimates respectively.

We believe the deviation was due to strong takeup for completed apartment units at KSL City in Johor Bahru as well as stronger than expected performance of the mall and hotel segments, as well as progress billings from Bandar Bestari @ Klang; we have no guidance from management in this respect.

None, in line with our expectations.

Yoy: 3Q PAT rose 61.4% yoy, mainly driven by the higher take up rate and earnings contribution from its flagship projects, mainly KSL City in Johor Bahru and Bandar Bestari @ Klang, as well as earnings contribution from its hotel operations in KSL City. Revenue generated from the mall operation also formed a major part of the increase.

Qoq: 3Q PAT was stable qoq (+2.6%), as all three major segments (property development, property investment and hotel) were relatively unchanged qoq.

No dividends declared… Management continues to limit payout to shareholders, we believe in an effort to preserve funds for: (1) working capital needs for its flagship RM2bn development in Klang; and (2) potential land acquisitions, as its relatively clean balance sheet (only 0.12x net gearing) offers it close to RM680m of gearing headroom before net gearing hits 0.5x. Therefore, we maintain our forecasts of zero dividends going forward.

Execution and demand risk of Bandar Bestari, as the group's future earnings will be highly reliant on this flagship project; an overall downturn in the property sector.

FY13-15E forecast raised by 45-48% to factor in: (1) Stronger earnings flow through from KSL City and Bandar Bestari; and (2) Stronger recurring income from mall and hotel operations.


Positives: (1) Good proxy to IDR growth story; (2) new expansion to Klang Valley; and (3) growth in recurring investment income.

Negatives: Lack of liquidity; project concentration risk.

Given the prevailing macro and sector headwinds, we maintain discount to RNAV at 40% and keep our TP at RM2.04. HOLD

Source: Hong Leong Investment Bank Research - 28 Nov 2013




超级强势股 - Latitude




2)GST实行后,家具业原本10%的sale tax,将被6%的GST取代。家居业即将受惠于GST的实行

1)最新季度报告出炉,公司单季net profit:0.14亿
以目前市值:1.3亿,把最新业绩全年化,公司2014FY的net profit可突破0.6亿


3)由于latitud在越南业务是under *latitude tree international*(在新加坡上市)
而latitud持有77%的latitude tree international
目前作为母公司的latitud计划以1.11亿左右全面收购latitud tree international旗下子公司业务(包括越南业务),虽然表面上母公司以1.11亿收购,但实际上,母公司不需要付出任何一分钱,只需在账目上做出调整,尚诺全购完成,越南厂将完全100%属于latitud,预计未来净利会更上一层楼


5)越南劳工薪金廉宜,所以在salary&cost management方面,latitud更胜homeritz

6)latitud资产表非常健康,现金:1.13亿,银行贷款:0.91亿,net cash company

7)以五年平均25%派息率,估计今年的dividend yield可达4.5%,或更高

(虽然公司的银行贷款大多数是以美元计算,但很庆幸的是,公司有不少trade receivable是以美元计算,这足以抵消美元走强,所带来的冲击)





Kimlun's rights issue gets Bursa Securities nod


Kimlun said on Wednesday the exercise involved 60.11 million new rights shares of 50 sen on the basis of one rights shares for every four existing shares held and 60.112 free detachable warrants on the basis of one warrant for every rights share subscribed.
Based on the indicative issue price of RM1.10 per rights share, the company expects to raise RM66.12mil, of which RM64.92mil would be used as working capital.
The gross proceeds to be raised from the exercise of the warrants would be RM106.39mil based on the indicative exercise price of RM1.77 per warrant. The gross proceeds to be raised from the exercise of warrants will be utilised as additional working capital.

Fitters profit up 111% on property, palm oil


PETALING JAYA: Fitters Diversified Bhd’s net profit surged 111% to RM10.9mil in the third quarter ended Sept 30 from RM4.75mil a year earlier, boosted by an increase in contribution from its property development project and palm oil business.
Revenue rose 32.7% to RM131.8mil. Managing director and founder Datuk Wong Swee Yee said the group was contented with the results given that it was “slightly affected’ by a temporary stoppage at its green palm oil mill earlier in the year.
“We are growing steadily in our fire services division and the group’s property division is enjoying very good returns and we are looking forward for our next launch, which is ZetaPark DeSky Residence,” he said in a statement yesterday.
Sales from its property division climbed 233% to RM94mil in the third quarter, more than twice of the RM40.85mil generated by the group’s traditional fire fighting equipment and services unit.
The sharp increase was driven by higher unit sales of the group’s ZetaPark’s “LOFT” service apartments and improved construction billings.
Nine months earnings rose to RM30.88mil, or 10.66 sen a share, compared with RM17.54mil reported a year ago,
Fitters also announced it had entered into a Memorandum of Understanding with Molecaor Technologia S.L. to invest in Molecor (SEA) Sdn Bhd to enter the market of PVC pressure Pipes in Malaysia and other South-East Asian markets.
Fitters will emerge as the major shareholder in the company with a 65% stake.
“We are very excited to embark on this business venture that we foresee will bring the group to the next phase of growth,” Wong said.

Benalec shares fall on disappointing Q1 results


PETALING JAYA: Shares of Benalec Holdings Bhd fell to a record low of 94 sen, below the company’s initial public offering of RM1 following the announcement of a disappointing first quarter ended Sept 30 financial results.
The counter closed 7 sen, or 6.9%, lower with 14.3 million shares done. The counter has been on a downtrend in the week ahead of the release of the company’s quarterly results.
In the first quarter, Benalec posted a net loss of RM4.65mil compared with a net profit of RM22.79mil a year ago. Revenue fell 75% to RM14.40mil from RM57.75mil.
CIMB Investment Bank Bhd analyst Sharizan Rosely said Benalec’s annualised first quarter core net loss was lower than the research house and consensus full-year net profit estimate of RM77mil.
“This was a negative surprise. The loss was because zero land sale gains were recognised. The results were below expectations as we had overestimated margins and the timing of land sale gains,” he said.
Sharizan said the company’s revenue plunged 75% year-on-year in the first quarter, also due to delays in reclamation works. “Management said reclamation costs were rising, suggesting that our full-year earnings before interest, taxes, depreciation and amortisation (EBITDA) margin assumption of circa 50% is not achievable. The absence of dividends was not a surprise.”
“Incoming land sale gains from the group’s Malacca project will drive profitability in the coming quarters. The group is targeting to monetise 181 acres over the next three quarters at an indicative price of RM38-RM39 per sq ft, with 35%-40% EBITDA margins, based on our estimates,” he said.
Analysts at Kenanga Investment Bank Bhd said the major disappointment was mainly due to slower-than-expected marine construction work progress for the quarter and also the delayed recognition from the sale of circa 180 acres, which is expected to contribute from the second quarter of FY2014 onwards.
“Despite the recent concern over the group’s corporate governance issue and poor performance on its earnings, the outlook on its Johor project remains intact as talks with 1MY Strategic Oil Terminal Sdn Bhd have been progressing well. However, we do not exclude the possibility there would be another time extension beyond its upcoming expiry on Dec 11 in order to fine-tune details of this particular mega project before it could be concluded,” the analysts said.
Meanwhile, BIMB Securities analysts said the company came in largely below the house’s expectation. The analysts would be cutting earnings projection for FY14 and FY15 by 35.9% and 13.3% respectively.

BIMB Q3 net profit up 25%


KUALA LUMPUR: BIMB Holdings Bhd’s net profit surged 24.6% to RM75.4mil in the third quarter ended Sept 30, against RM60.5mil in the same quarter last year.
Revenue for the quarter increased 8.5% to RM696.02mil from RM641.58mil. Earnings per share was at 7.07 sen versus 5.68 sen.
For the nine months to Sept 30, BIMB’s net profit rose 19.3% to RM219.1mil from RM183.6mil a year ago. Revenue increased by 15% to RM2.08bil from RM1.81bil.
BIMB posted a consolidated profit before zakat and taxation of RM598.70mil for the nine-month period, up RM79.8mil or 15.4% over the previous corresponding nine-month period ended Sept 30, 2012.
“The higher profitability was mainly achieved on the back of higher operating results of RM32.5mil and an RM49.6mil improvement in allowances for impairment on financing and advances, investment and other assets, as well as the non-recurrence of provision for contingent liability,” group managing director/chief executive officer Johan Abdullah said in a statement.
He said: “BIMB’s consolidated net profit for the period under review stood at RM424.4mil, which recorded a growth of RM65.5mil or 18.2% compared to the same period last year. In tandem with the higher profitability, the net profit attributable to the shareholders of the company increased by RM35.5mil or 19.3%.”
BIMB said the group registered net financing growth of RM3.1bil or 15.7% for the nine months under review, as asset quality improved further with a gross impaired financing ratio of 1.39% as at Sept 30. Total capital ratio of unit Bank Islam Malaysia Bhd (computed in accordance with CAFIB-Basel III with effect from Jan 1, 2013) remained healthy at 14.18%.
Meanwhile, Bank Islam managing director Datuk Seri Zukri Samat has been named “Islamic Banker of the Year 2013” at the Global Islamic Finance Awards (GIFA). He received the prestigious award at the GIFA 2013 awards ceremony in Dubai held in conjunction with the 5th World Islamic Retail Banking Conference.
GIFA is the first of its kind in Islamic banking and finance. The awards recognise and celebrate the success and contributions of individuals and institutions in the Islamic financial services industry.
“I’m deeply honoured to be the recipient of this prestigious award. However, I wish to reiterate that the award is not for me alone but for the teamwork exhibited by all the staff of Bank Islam who have worked very hard to turn the bank into what it is today.
“I am also very grateful for the strong support given by Bank Negara and our shareholders, Lembaga Tabung Haji, the Dubai Financial Group and BIMB. This award marks another important milestone for the bank and will further motivate us to keep pushing towards excellence through innovation,” Zukri said in a separate statement.

HAFARY: Riding On Building Boom Over The Next Few Years


Written by Leong Chan Teik
Thursday, 28 November 2013 07:08

Last FY13 bumper dividend was largely due to the disposal of an investment property. Historically, Hafary paid 20-30% pre-tax profit as dividends.TO SOME investors, the first thing that comes to mind regarding Hafary Holdings is the generous dividends it has paid out in the past two financial years.

For FY13 (ended June 2013), Hafary, the top Singapore-listed supplier of premium tiles, stone and other building materials, has paid 4 cents a share in interim dividend.

It will pay a final dividend of 2.5 cents a share. The payment date has not been announced yet but Hafary typically pays 6-8 weeks from the date of approval.

Since the final dividend was approved at the AGM on 25 Oct, it follows that the payment could be before Christmas, or sometime between Dec 6 and Dec 20.

The dividend aside (at a time when the stock trades at 22.5 cents), Hafary has a positive outlook, as its financial controller, Jackson Tay, described to analysts and fund managers this week. Several takeaways from the event:
Good turnout to hear the Hafary story. Photo by Tang Yibing1. Multi-sources of revenue: Most players in its industry are exclusively focused on a niche -- either retail or projects, and they tend to be limited in their product offerings. Hafary supplies a very wide range of products and has its hands in both retailing and projects. 

2. Home-building boom:This will continue to be a major revenue source for Hafary over the next few years.

As at end-Sept 2013, about 85,000 private residential units are under construction or under planned development. "We feel comfortable about the outlook for the next two years as there are still a lot of project launches."

Revenue from public sector projects shot up to $13.1 million in FY13 (ended June 30) from $3.6 million in FY12.
Public and private projects made up 43% of revenue in FY13 -- the rest was accounted for by general customers (retail buyers and renovation contractors, etc).HDB's building boom will extend to 2016, with 100,000 HDB homes targeted to be built between 2012-2016.

HDB has identified certain manufacturers of tiles and specifications for use in its newbuilds. Hafary works with these manufacturers and has garnered exclusive distributorships for certain tile designs.

Hafary is already a major supplier of tiles to HDB newbuilds, deriving $13.1 million in revenue from public projects in FY13 compared to $3.6 million in FY12.

2. Renovation: As the number of homes expands and as homes age, the renovaton business thrives.

With people are getting more affluent and more sophisticated in their renovation choices, their spending on renovation is set to rise -- which spells good business opportunities for Hafary.

"Overall, the market is getting bigger by the day."

2. MRT projects: MRT stations need tiles too -- and after its initial foray into this business, Hafary is eyeing more MRT station contracts as new MRT construction projects are put up for tender by the government.

3. Competitive edge: Hafary holds a lot of inventory -- some S$35 million worth as at end-June 2013 -- which enables it to deliver promptly to customers.

Accounting-wise, any inventory that is more than 4 years off will be written off on its books -- but Hafary will still try to sell these. The obsolecence rate is very low at around 3%.

In addition, as Jackson said, Hafary's after-sales support when any issues crop up is top-notch.

Overall, this business is a lot also about efficiencies that a player can squeeze out of its logistics, warehousing and manpower.

Hafary reckons it is doing well in these areas.

4. Barriers to entry: While the business might not seem to have high barriers to entry and could attract many entrants, Jackson disagreed.

"We see fewer competitors and zero new entrants as the capital investment is fairly large. Existing players are getting out and we are taking their market share."

He estimated that Hafary has about 50% of the general market and 15% of the projects market.

5. China losses: Hafary's investment in an associate in China which manufactures tiles has been fully impaired to the tune of $4 million in FY13.

Thus, there will not be any losses to be recognised going forward.

In FY2013, after excluding the one-time gain on property disposal and associates' loss, Hafary achieved net attributable profit of $9.3 million, compared to $4.7 million in FY2012.

HAFARY's AGM: Rosy Outlook For Next 2-3 Years On HDB Building Boom


Written by Cheong Si Sien (aka Divads27)
Tuesday, 29 October 2013 07:00

This is an edited version of the post by Cheong Si Sien aka Divads27 in our NextInsight forum.

Time & Date: 9.30 am, 25 Oct 2013.
Venue: Wilkie Edge

THIS WAS my first time attending Hafary Holdings’ AGM. I met a friendly and cheerful CEO, Mr Eric Low, and the rest of the directors.

The standard procedures of approving the resolutions stated in the Notice of AGM were carried out and passed without objection, except for the resolution pertaining to the performance share plan.

A shareholder expressed his opinion that the plan was too vague.

But the resolution was passed with no objection.

The resolution which I think everyone was looking forward to was to approve the final dividend of 2.5 cents which, based on the closing share price of 22 cents on the day, gave a yield of more than 11%.

During the Q&A session, a private investor introduced himself as someone who invested in bonds and shares and was a new investor in Hafary. He posted some relevant and interesting questions.

The CEO, Mr Eric Low, was ever so friendly and patient in answering them.
Here is the essence of the session:

Q: What is the outlook for the company especially in the project segment?

A: For the next 2 to 3 years, the outlook for construction is positive and will benefit Hafary. The contribution from HDB projects (supplying tiles to HDB's Build-To-Order projects) will gain momentum as HDB goes full steam ahead with building of flats. Currently HDB projects constitute 10 to 20% of the total revenue from Hafary's project segment.

Q: Is Hafary the number one tiles providers in Singapore?

A: YES, was the simple answer from a smiling Mr Eric Low. He estimated the market share to be about 20 to 30% locally.

Q: Can you elaborate on the 18 Sungei Kadut St 2 International Furniture Park project?

A: Two main purposes for this acquisition. First, it is to secure the property for setting up of a warehouse to replace the one in Defu Lane as the latter's lease is expiring soon.

Secondly, working with listed company Sitra to venture into other areas of the furnishing industry as stated in an announcement on SGX website.

Q: What is the percentage of revenue from new products other than tiles?

A: Currently, the revenue from new products other than tiles, eg: sanitary products, marble etc. forms 5 to 10% of total revenue. The company will tap on its pool of over 1,000 loyal designers and contractors to grow the revenue from non-tile products.

Q: Are you concerned over your high inventory?

A: The company carries 6 months worth of inventory. The high inventory is due to an increase in business. For example, Hafary stocked up on marbles as its is venturing into the marble segment and there are increases in HDB BTO projects which require tiles. Mr Eric Low said high inventory is in fact a good sign as it means the company is expanding.

Hafary's dividend track record.... note that the upcoming final dividend of 2.5 cents comes after a stock split. In other words, investors who bought in pre-split would effectively be receiving 5 cents a share as final dividend.Q: Can the high dividend be sustained?

Mr Low seems confident, and he referred to the company’s good track record of dividends for the past few years. FY13 dividends came mostly from the gain from the sale of the Aljunied property.

Subsequent years’ dividend will be 20 to 30% of the profit of the group's operating business. As for divestment of properties at hand, the company has no plan to do that yet.

(My view: UOB Kayhian report in July, based on share price of $0.199, expected Hafary's dividend to have a yield of 6.3% on $0.199 share price = 1.25 cents dividend for FY14 and FY15.

But 1.25 cents seems to be on the conservative side. UOB Kayhian estimated a dividend of 4.25 cents for FY13 (post share split), at 21.3% yield, but the actual dividend was 5.25 cents for FY13 (post share split) which works out to be 26.4% yield.

I think with HDB building more flats in the 3 new towns, Punggol Matilda, Tampines North and the new centrally-located estate of Bidadari, I think the profit of Hafary should surprise on the upside.

The CEO mentioned HDB contribute around 10-20% of the revenue for project segment. So there is plenty of room for revenue to grow for the HDB project.

He seems confident of the prospect for the next 2 to 3 years. After that, the company has to depend on how well the construction sector performs.

Q: Will the company suffer more losses from the China operation?

A: The company faces difficulties in managing its China operation and has totally written off the investment. Thus the worst case scenario is over. The company will not incur any more losses from the investment. The company has also gained valuable lessons from the experience.

I left the AGM hopeful of the next 2 to 3 years. As for what lies after that, only time will tell.

周顯 - 買股票要值博 贏面大 輸極有限


買股票要值博 贏面大 輸極有限  2013年11月28日





投資無必勝 只有值博率高低




Wednesday, November 27, 2013




GDP to grow 5%-5.5% next year: MIER


KUALA LUMPUR (Nov 27, 2013): Malaysia's gross domestic product (GDP) is expected to grow by 5% to 5.5% next year and 5.5% to 6% in 2015, the Malaysian Institute of Economic Research (MIER) said, driven by domestic demand.

The think-tank is maintaining its 2013 GDP forecast of 4.8%, driven by the services sector which contributes about 60% to GDP.

"Our forecast is contingent to the world forecast by the International Monetary Fund (IMF). According to IMF, Europe will be going out of recession next year… this will give us some energy to grow better," its executive director Dr Zakariah Abdul Rashid (pix) told reporters at the MIER National Economic Outlook Conference 2014-2015 yesterday.

"The Chinese economy is also moderating but we have already factored in the moderation of the Asian economy. On the whole, we (Malaysia) will improve in 2014 compared with 2013 but only by a small amount…this is only our initial forecast, we will review (the figures of the GDP) again when we enter 2014," he added.

Zakariah also sees domestic demand as main driver of growth next year, despite the improvement in external demand.
"External demand will not drive the growth but its contribution will improve. The main driver is still domestic demand. I personally feel that we have been asking them (domestic sector) to work very hard, especially households.

"But now we are shifting from private consumption to private investment. Therefore private investment will have to do a lot more work going forward in 2014. If you look at the growth rate of private investments, it is faster than growth rate of private consumption," he said.

Zakariah added that projects under the Economic Transformation Programme must continue and the government must have the energy to continue pushing these projects and the economy forward rather than placing too much burden on private consumption and households, which are limited by rising household debts.

"In the past, domestic demand drove the economy and we hope it will continue to do so. What limits it is household debt. Our household debt is rising despite Bank Negara Malaysia's (BNM) measures. This issue is not easy to address because it deals with household behaviour and it is not easy to change behaviour.

"Also in the past, we asked households to work hard. A substantial share of domestic demand is actually contributed by households and they have contributed quite well. But there was a price to pay and that is debt," he said.

Zakariah reckons that the country must work towards a level of salary that matches productivity and although the minimum wage was implemented this year, there were some hiccups and labour market reforms will take some time.

"The key word is labour market reform. Household debt is high because the labour market is not remunerated well. They (employers) ask them to work hard, but they are not paid well," he added.






基於ISTA網的合約流可見度有限,以及為慎重起見,興業在財測中剔除2千500萬至2千600萬令吉的光纖貢獻以及來自1M Utama私人公司的2億零500萬令吉合約,2013/14財政年盈利預測因此大砍14%/29%,ISTA網原本指這些合約可望在下半年到手,但至今毫無下文。



Perodua's new Rawang plant to be world class

REPLICATION OF JAPANESE FACTORY: Improved defect per unit rate of 0.05pc

SECOND national carmaker Perusahaan Otomobil Kedua Sdn Bhd's (Perodua) new manufacturing plant in Rawang, Selangor, which is currently under construction, is set to be the first world-class highly-efficient car manufacturing plant in the country.

Perodua executive director Zainal Abidin Ahmad said the RM790 million factory, a replication of Perodua's Japanese partner Daihatsu Motor Co's high-tech plant in Fukuoka, Japan, mirrors the company's serious efforts to be a competent global player.

"The new plant will have an improved defect per unit (DPU) rate of 0.05 per cent, which is a world standard. We plan to achieve world-class level through this new plant. This shows that Perodua has come a long way to be where we are today.

"Through our transformation activity, which started two years ago, we've seen a lot of improvements in Perodua's operation, where we managed to gradually reduce our operation cost from 15 to 30 per cent. With the new plant, we are very much at par with certain companies at the international level," he said during a media trip to Daihatsu Motor Kyushu plant recently.

The Daihatsu Motor Kyushu plant, which started operation in November 2007, was specially designed to produce light vehicles. It rides on the "Simple, Slim and Compact" concept, which allows the plant to annually produce the same number of vehicles as the older Daihatsu plant but using half of the latter's floor space.

Due to the compact structure of the plant, power consumption for the air-conditioning systems and other equipment in the building is reduced.

Zainal Abidin said Perodua is aiming to emulate at least 85 per cent of the Fukuoka plant's system for the new plant in Rawang, as certain aspects still need to be done according to local requirements and environment.

"For example, the plant in Fukuoka has a cool environment because of the local weather. The weather is hotter in Malaysia and so we have to install enough air-conditioners in the plant to make sure that our workers can work in a comfortable environment, which in turn will help increase productivity," he added.

Zainal Abidin said Perodua's new 65,000 sq ft plant, which is located next to its plant in Sungai Choh, will only focus on manufacturing new models, which includes those existing models that will go through a full-model change.

"At the moment, the new plant is for new models and also for what we call full-model-change. So, our next model, which we will introduce soon, will be manufactured in this plant," he said, adding that Perodua plans to manufacture one model from the plant for a start.

He said the company has allocated up to RM1.3 billion for the plant, inclusive of the cost of the plant as well as the assem-bly line for one model with an annual production capacity of 100,000 units for one shift.

SBC earnings up 30% to RM8.6mil


KUALA LUMPUR: SBC Corporation Bhd posted a 30.52% increase in its second quarter results 2013 to RM8.6mil from RM6.6mil a year ago due to contributions gathered from its completed property projects.
Its revenue rose 8.89% to RM35.11mil from RM32.24mil a year ago while earnings per share stood higher at 10.48 sen against 8.03 sen a year ago.
For its first half, the group’s net profit rose 18.7% to RM14.97mil from RM12.6mil a year ago while revenue was up 0.4% to RM61.19mil from RM60.92mil a year ago,
In a filing to Bursa Malaysia on Tuesday, the group said its pretax profit of RM 19.27mil for the period compared to a year ago does not have much variance as the completed Peak Vista, Tower A @ Kota Kinabalu has been augmented by the commencement of construction of the Dex Suites @ Kiara East, Kuala Lumpur.
Moving forward, the group said it expects future performance to remain positive as projects such as the Dex Suites@Kiara East, Kuala Lumpur has commenced the super structure of the typical floor and the Cantonment Exchange@Jalan Ipoh has commenced site works.
“Further, the Peak Soho@Kota Kinabalu is targeted to be completed in this financial year,” it said.

Benalec’s outlook positive despite loss of RM4.7mil


PETALING JAYA: Benalec Holdings Bhd posted a loss of RM4.7mil for the period ended September 30, 2013, its first quarter for the financial year 2014, falling by 121% compared to its preceding year corresponding quarter earnings of RM22.8mil.

The marine construction services company showed a revenue of RM14.4mil for the period, registering a decrease of 75.1% against the previous year’s corresponding quarter.

In a filing to Bursa Malaysia, Benalec attributed the reduction in revenue to “the completion of certain projects in Melaka, as well as lesser progress of work recognition from the Pulau Indah and Sentosa Cove projects in the current quarter”.

“We are still positive, basing our outlook on the fact that 180.59 acres of land will generate revenue of approximately RM254mil and profits for recognition over the subsequent quarters,” Benalec said.

Inari posts RM20.9mil earnings in the first quarter


PETALING JAYA: Inari Amertron Bhd posted earnings of RM20.9mil for the first quarter of financial year 2013 ended Sept 30, 2013, increasing 182.7% from RM7.4mil for the previous corresponding quarter.
Revenues for the period were RM191.3mil, which represented growth of 250.1% compared to the corresponding quarter previously.
In a filing with Bursa Malaysia, Inari said that the higher revenue was mainly due to the consolidation of the revenue of the newly acquired Amertron Inc (Global) Ltd as well as higher trading volumes from the group’s existing businesses.
In line with higher revenue, the group’s gross profit for the current quarter – RM28.6mil – was 80.7% or RM12.8mil higher than the gross profit of RM15.8mil reported in the corresponding quarter in the previous year.
However, gross profit margin was 14.9% in the current quarter compared to 28.9% previously mainly due to lower gross margins from the Amertron business unit, which features a different product portfolio.
Inari said revenue contribution from the Amertron business unit was RM120.1mil, while the balance increase of RM16.6mil was from existing business.
“We remain optimistic about maintaining our profitable performance, as we operate in market segments that continue to be high-growth in the near future, such as the continued end-user adoption of smart mobile devices globally,” Inari said.

周顯 - 產品走錯路線 蘋果要「搵位沽」


產品走錯路線 蘋果要「搵位沽」


現在當iPhone 5c推出了之後,我終於肯定了,它的管理層的智力大有問題,連最基本的市場學也不懂得,所以,我可以正式宣布,這公司已經玩完,現在的問題,只是「搵位沽」而已。







Tuesday, November 26, 2013

向孔子學做人,跟曹操學做事 - 馬雲




1. 誠信:言而必有信。
2. 孝道:百善孝為先。
3. 悔過:知錯要悔改。
4. 志向:匹夫不可奪志。
5. 朋友:把握交友的度。
6. 寬容:是一種境界。




[转帖] 美國上司教會我的四個工作原則



1. 員工不是一台機器


2. 在腦力激盪衝突中產生的團隊決定,更經得起考驗。


3. 工作時間長,不等於工作效率好。


4. 員工流失率高,公司更花錢。


REX: Kick-Starts Unprecedented Drilling Campaign With Oman Well Spud


REX INTERNATIONAL HOLDING’S first offshore drilling campaign, an event eagerly anticipated by the investment community, has commenced this week, on track with the company's expansion schedule.
“We are going for the big offshore finds and that programme starts now, with Oman,” said executive chairman Dan Brostrom during an exclusive interview with NextInsight.

Unlike the typical exploration and production (E&P) company that generates income from crude oil production, Rex International intends to sell original oil in the ground and recycle the sale proceeds as capital for stakes in new concessions.

Current prices of original offshore oil in the ground range from US$5 to US$15 per barrel. The Oman prospect being drilled is about 17,000 square kilometers in size. This suggests that Rex International’s effective stake of 41.6% in the Oman concession can fetch a considerable amount.

By the time the Oman first phase test drilling ends this year, the following will be known:
1) If the oil at the Oman well is commercially recoverable
2) What the geophysical structure of the oilwell is

Mr Brostrom estimates that any sale from its Oman concession can only be completed up to a year later, as time is needed for negotiations and proving of oil reserves to and by prospective buyers.

“We intend to have 5 to 7 offshore drilling campaigns next year,” said Mr Brostrom. This could mean a phenomenal FY2015 performance for Rex International when oilwell sale proceeds roll in.

This rate of drilling campaigns is unprecedented among its E&P peers, and is possible only with Rex International’s unique business model.

A typical E&P company spends three to five years in securing a concession, conducting seismic survey, data appraisal and waiting for oilrig deployment before commencing exploratory drilling.

Rex International, on the other hand, has a business model that sidesteps much of this ponderous process.

With the exception of its first offshore concession from the Oman Sultanate, Rex now gains interest in oilfield concessions from concession holders who have already expended resources on gathering seismic data and other geophysical surveys.

For example, its effective equity interest in North Energy’s offshore licenses ranging from 3% to 8% came about through co-operation agreements for analysing seismic data from these concessions using Rex Virtual Drilling.

“There are many oilfield concession owners who have paid double digit millions for seismic studies and still don't know where the oil is.

"Now that Rex Virtual Drilling can analyse their seismic data in four to six weeks with a high level of accuracy, they are eagerly approaching us,” said Mr Brostrom.

From exploratory drilling to identifying recoverable oil reserves, Rex Virtual Drilling has proven to be more than 50% accurate compared to the global industry average of 15% when traditional methods are used.

"We don't sell our technology.  We are not a service company.  We will only use our technology for equity interest in concessions that we are keen on,” said Mr Brostrom.

The company's business model is the first of its kind among E&P players, and is the reason why it has is making good and may even exceed its aggressive claims of doubling oilfield concessions from 10 to 20 within a year of listing.

"Four months after listing, we have already grown our portfolio to 15 concessions, beating our target. We have spudded Oman according to schedule. With the added proceeds from our recent placement, we are well capitalised for our expansion plans and for our upcoming drilling campaigns," added Mr Brostrom.