We are neutral on this news as the 3% power demand growth guidance exactly matches our FY10 projection for Tenaga.
Mah Sing Group has secured an en bloc sale of a seven-storey retail and office space known as Apex Tower to a Taiwanese individual, Chen Ho-Yuan, for RM63m cash. The tower, which has about a net floor area of 90,126sf, formed part of the overall freehold commercial development project, Southgate, located at the intersection of Jalan Dua and Jalan Sungai Besi. The latest transaction had helped Mah Sing clock up total sales of RM678m, exceeding its full-year target of RM453m by 1.5x. (Financial Daily)
We are not surprised by the sale as it has been Mah Sing's intention to find an en bloc buyer for the building. Nonetheless, it is a positive development and indicates that the en bloc market still exists for strategically located property and developers with strong marketing prowess can still secure such sales.
Genting Singapore’s UK arm has been selected as the new casino operator of The Nile Ritz Carlton Hotel in Cairo for an initial period of 10 years. The Nile Hotel is owned by Misr Hotels Company, a leading government-controlled hotel owner and operator in Egypt. Misr Hotels will shortly refurbish this hotel before reopening it in early 2012. Genting UK plans to operate under the “Crocksfords on the Nile” brand when the hotel re-opens its doors. (SGX)
Mudajaya JV has bagged a RM241.3m contract to construct Boulevard Plaza in Putrajaya. The JV, comprises Mudajaya (51%) and Bina Rezeki Sdn Bhd (49%). The project is to be completed by Dec 2011. (BT, BMSB)
This announcement is positive but not a major surprise as the company had indicated potential local contract wins before end 09. This project was awarded on a negotiated basis. Mudajaya would undertake 51% share of works. Assuming a pretax margins of 10%, this project would raise FY10-11 pretax profits by around 2% and raise outstanding orderbook by 2% to RM5.5bn.
The much anticipated grand opening of the largest AEON Jusco mall in the country in Melaka this Dec 17 is likely to be postponed following a fatal gas explosion. The explosion was said to have happened at the food court section located on ground floor of the threestorey complex. Initial investigations indicated the blast originated from a leak in the gas system. (Star, Bernama)
Though this news is a negative surprise, we do not expect this to have a major implication to WCT, who is the contractor for the project. The project is already at its tail-end.
LCL Corp announced that it is now considered a Practice Note 17 (PN17) company as it is unable to provide a solvency declaration to Bursa. Bursa also publicly reprimanded LCL for failing to submit its FY08 annual audited accounts before end-Apr 09. LCL submitted it on 5/5/09, after a delay of two market days. (BMSB)
Tenaga (TNB) said the plan to supply electric power from the 2,400MW Bakun hydro dam to Peninsular Malaysia by 2015, is still on. "As far as we understand TNB will still be able to access power produced by the hydro plants in Sarawak," said its chairman, Tan Sri Leo Moggie. "Obviously some of the power will be utilised by Sarawak’s heavy industries but Sarawak has a potential of producing substantial capacity," Moggie said. What has been identified for transmission to Peninsular Malaysia, will still be within the total available capacity that can be generated in Sarawak. TNB plans on bringing in only 1,600MW and 800MW respectively by 2015 and 2017, he said. (Bernama)
Tenaga has short-circuited hopes for a reduction in power charges. “Logically, you can’t reduce both subsidies and tariffs at the same time,” said CEO Datuk Seri Che Khalib. “I think the revision of gas prices in Jan-10 and its impact is more crucial, rather than asking TNB whether we are going to increase tariffs,” he said. He added that any move by the government to lower electricity prices, even as natural gas costs rise, would not be feasible. (Starbiz)
Tenaga has no intention of selling its 20% stake in Jimah Energy Ventures Sdn Bhd. "There's no reason why we should sell," president and CEO Datuk Seri Che Khalib Mohamed Noh. "We have not been notified by Jimah. We are also a shareholder of Jimah. In fact, under the Jimah shareholder agreement, we have pre-emptive right and if they want to sell their stake to other party, they have to seek our consent," Che Khalib added. (Bernama)
AirAsia yesterday launched the Kochi - Kuala Lumpur route, its latest Indian destination alongside Kolkata and Thiruvananthapuram, which opened for sale on 15 October 2009.
- Since the opening of these routes less than two months ago, AirAsia has experienced an overwhelming response, of nearly 100,000 seats sold. AirAsia is the only airline from Kuala Lumpur which is servicing the flight to Kochi with direct daily flights.
- Kathleen Tan, Regional Head of Commercial AirAsia said: “Amongst the destinations which are on our network radar include Chennai, Hyderabad, Banglore and Mumbai, so stay tuned for our latest development on these exciting routes.”
- AirAsia launched its first route to Trichy, India which is situated in the South Indian state of Tamil Nadu on 1 December 2008, with the second daily frequency launched on 1 September 2009. (AirAsia Press Release)
Telekom Malaysia (TM) is offering a special year-end promotion for most of its telephony, internet and SMS products and services. In a statement today, it said among the products on promotion are the Streamyx Super Upgrade Deal campaign, low call rates from ITalk and TM Homeline, the ITalk iWin Contest and TM's InfoBlast promotion.
- "During the promotion period, users will be able to enjoy super low rates on calls and SMS greeting for Christmas and New Year and faster Streamyx speeds at cheaper subscription rates until Dec 31," TM VP of retail product, Azizi A.Hadi said. (BT)
- These “beta testers” are experiencing and enjoying network access speeds of 15Mbps along with the related triple-play services of voice, video and high-speed Internet, TM announced. To date, TM has a “premises passed” achievement of 143,000 with a target completion of 150,000 premises passed by year end.
- By Dec 31, TM also expects to complete 100% physical upgrade work in the four exchanges of Taman Tun Dr Ismail, Subang Jaya, Shah Alam and Bangsar. Currently, physical fibre access work in 44 exchanges out of 95 exchanges earmarked for HSBB network rollout nationwide is ongoing. (Star)
YTL Corp is proposing to issue up to US$400m nominal value of up to seven-year guaranteed exchangeable bonds that may be exchangeable into new YTL Corp shares. Proceeds raised were to refinance existing borrowings and to grow its operations and pursue opportunities in Malaysia and abroad. (Starbiz)
Genting Malaysia should have, in the spirit of good corporate governance, sought the approval of its minority shareholders for its latest RPTs, Minority Shareholder Watchdog Group (MSWG) said. MSWG CEO Rita Benoy Bushon voiced hopes that the regulators would look into RPTs of this nature and reduce the threshold level to, say, 2% instead of the current 5% of shareholders funds, especially for deals not in the ordinary course of business. (BT)
Kuwait Finance House has pulled out from a RM920m deal to purchase 50% of Menara YNH from YNH Property, with no immediate word from either party as to the reason for the move. YNH said that it may seek damages from the Kuwait based Islamic bank. (Malaysian Reserve)
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