Friday, February 24, 2012

20120224 1004 Malaysia Corporate Related News.

Group bags RM5bn Malakoff deal
Malakoff Corp has awarded a RM5bn contract to build a power station in Johor to a consortium led by Alstom Power System SA. The consortium will help Malakoff build a new 1,000 MW coal-fired power plant, adjacent to its existing facilities at Tanjung Bin. Malakoff’s wholly-owned Tanjung Bin Energy Issuer yesterday signed the engineering, procurement and construction (EPC) contract with the consortium yesterday. Other consortium members are Alstom Services SB, Mudajaya Group and Eversendai Corp. (BT)

18 groups submit RFQ to EC for new Prai power plant bid
The Energy Commission (EC) will announce mid-next month the results of an international competitive bidding for the Prai combined cycle gas turbine power project, which has attracted 18 consortiums comprising local and foreign players, and sole bidders. The EC had received prequalification statements from 33 out of 38 participants who purchased the request for qualification (RFQ) documents on 31 Jan, it said in a statement on its website yesterday. (Malaysian Reserve)

Petronas, Gas Malaysia sign supply deal; awards LNG train contract
Petroliam National (Petronas) has signed a more than RM80bn (USD26.4bn) deal extending the supply of gas to Gas Malaysia for another 10 years. The new supply agreement, which offers the option to extend for another five years, was one of the requirements for Gas Malaysia to list on the local bourse this year, a source close to the deal to Reuters. Meanwhile, Petronas also awarded a contract for front-end engineering design (FEED) for its new production train at its LNG complex in Bintulu, Sarawak, to a Japanese engineering company, JGC Corp, and a Japanese-Italian partnership between Chiyoda Corp and Saipem S.p.A. The job, awarded under a dual FEED scheme, will see the two contractors compete in the FEED and engineering, procurement and construction price proposal for the project, known as Petronas LNG Train 9. (StarBiz)

Kenanga, ECM unit close to finalizing deal
ECM Libra Financial Group, whose substantial shareholders have long wanted to divest their equity, is close to signing an agreement to sell the group’s stockbroking and investment banking operation to K&N Kenanga Holdings, according to sources. Sources close to the negotiations told The Edge Financial Daily that Kenanga Holding will pay about RM900m for the stockbroking and investment banking business in ECM Libra via a cash and share swap deal. (Financial Daily)

Vincent Tan retires from Berjaya Corp
Berjaya group founder Tan Sri Vincent Tan, one of Malaysia’s best known tycoons, has announced his retirement as chairman of Berjaya Corp (BCorp). In a filing with Bursa Malaysia yesterday, BCorp said Tan had decided to retire from an active corporate role to focus on social and charitable activities. He had earlier handed over the CEO position to his son, Datuk Robin Tan, in January last year. Robin will hold the chairman’s post until the board finds a suitable candidate. (StarBiz)

Local firm eyes AK assets
A Malaysian company is said to be in talks to buy over all of tycoon T. Ananda Krishnan’s power assets in the country, South Asia, Egypt and the Middle East, in a deal that could be worth USD3.2bn (RM9.6bn) to USD3.6bn (RM10.8bn), sources said. “The transaction is in the works,” a source added. On Wednesday, Reuters reported that the assets could be worth USD2bn (RM6bn), but those in the know claim the valuations are higher. The value of USD3.2bn and USD3.6bn is based on the value of recent power transactions where the purchase price of each megawatt was about USD800 to USD900. (StarBiz)

IOI Corp: Posts RM1.19bn pre-tax profit for first 6 months
IOI Corporation posted RM1.19bn in pre-tax profit for 1H FY2012 down from RM1.351bn in  the same quarter last year. Revenue for the period rose to RM8.313bn from RM7.489bn. For  2Q FY2012, IOI Corp's pre-tax profit soared to RM76.819m from RM689.324m in the same  quarter last year. Revenue for the 3-month period also grew to RM4.165bn from RM3.970bn.  The company said the higher profit was mainly due to an increase in the group's overall  operating profit except for the property investment segment. (Bernama)

Nestle (M): Revenue rises 16.8%
Nestle (Malaysia) Bhd posted a net profit of RM456.3m for FY2011, against a revenue of  RM4.7bn. It said the increase of 16.8% in revenue was driven by strong sales performance in  both domestic and exports. The Nestle board has recommended a final net dividend of  RM1.25 per share. It said good domestic growth was noted across all categories with  stronger demand for milks, coffee and beverage, confectionery as well as liquid drinks. It also  noted that the strong global demand for commodities kept the prices of key raw materials  consumed at higher levels, reducing its gross margin by 40 basis points. (Business Times)

Axiata: 4Q FY2011 net income rises to RM544.6m
Axiata Group reported a net income of RM544.6m for 4Q FY2011, compared with a RM367m loss a year earlier. Revenue climbed to RM4.3bn in the quarter from RM4bn a year ago. It  proposed a higher dividend of 15 sen per share, up from 10 sen for the same period a year  ago. (Business Times)

SP Setia: Eyes RM60bn in development value
SP Setia is poised to hit RM60bn in GDV this year. SP Setia president and CEO Tan Sri Liew  Kee Sin said this would be helped by the launch of at least 4 big projects worth RM6bn in  GDV, said, who added that the company was confident of achieving its sales target of RM4bn this year. Liew said SP Setia had locked in sales of RM933m for 1Q FY2012. This represents a  27% increase over the RM737m achieved in the corresponding period of the previous year.  For FY2011, SP Setia exceeded the RM2bn mark for the second year running, ringing in a new  sales record of RM3.29bn. (Business Times)

MAS: Chief says stemming losses top priority
Group chief executive officer Ahmad Jauhari Yahya said the top priority for Malaysia Airlines  (MAS) now is to stem its huge losses and return to profitability soon, said, while it also strives  to regain its stature as a preferred premium airline with better services and newer aircraft.  He said the recent senior management shake-up and drastic route cuts were among the  many strategies aimed at turning around the national carrier from the FY2013-FY2014  onwards. (StarBiz)

YTL Corp: Net profit up 10.4% in 1H FY2012
YTL Corp has registered a net profit of RM489.2m in1H FY2012, up 10.4% from the previous  corresponding period. This was posted against a 10.8% growth in revenue to RM9.87bn.  Group MD Tan Sri Francis Yeoh said the increase in revenue was due mainly to the ongoing resilience of our multi-utility businesses in Malaysia, the UK and Singapore. He added that  overall, the group's cement and multi-utility operations, which are the major contributors,  continued to register sound performance. (Business Times)

Proton: Transfer to be completed in Mac, says Dr M
Proton’s transfer of ownership from Khazanah Nasional Bhd to DRB-Hicom will be completed  by next month, says the adviser to the national automaker, Tun Dr Mahathir Mohamad. The  former Prime Minister said by the given timeline, the new leadership will also be finalised.  Asked as to whether former Proton chief executive officer, Tengku Tan Sri Mahaleel Tengku Ariff would make a comeback as the company's new chairman, Dr Mahathir said as far as he  is concerned, there is no confirmation. (Business Times)

Media Prima: Profit down on negative goodwill
Media Prima posted a lower net profit of RM75.046m in 4Q FY2011 from RM88.2m a year  earlier. Revenue was higher for the quarter at  RM428.8m compared with RM411.27m  previously as most corporate clients utilised their advertising budget for the year 2011 and  also because of the effective cost management. Earnings per share were 7.15 sen against  8.95 sen. For the full year, Media Prima posted a slightly lower net profit of RM207.65m  versus RM242.3m in FY10 on the back of RM1.62bn revenue versus RM1.55bn. The lower net  profit for the full year was primarily due to the negative goodwill arising from the acquisition  of The New Straits Times  Press (M) Bhd, which was recognised in 2010. Group MD Datuk  Amrin Awaluddin said the group was cautiously optimistic for FY12's financial outlook as it  continued to monitor the economic situation in Europe and North America. (StarBiz)

Boustead Heavy: Net profit down in FY2011
Boustead Heavy Industries Corp Bhd (BHIC) has posted a net profit of RM18m for FY2011  against last year's profit of RM80m. The lower profit was mainly due to costs incurred in  connection with the completion of commercial shipbuilding projects, higher finance charges  and lower share of profits from associates. BHIC MD Tan Sri Ahmad Ramli Mohd Nor said the  group is venturing into aerospace maintenance. He said, with the receipt of the letter of  award to construct six more Littoral Combat Ships for the Royal Malaysian Navy, our  associate Boustead Naval Shipyard Sdn Bhd has intensified its mobilisation works. He added  that discussions to finalise the contract terms for these vessels are progressing well with the  various project stakeholders. (Business Times)

Green Packet: To invest RM300m as capex
Green Packet plans to invest RM300m in capex this year to sustain its continuing growth.  Group CEO Puan Chan Cheong said this year the company aims to widen its 4G coverage in  populated areas in Peninsular Malaysia to 65% from 50% currently. He added that the 4G  operator and service provider arm, P1, would also expand to Sabah and Sarawak by Jun.  (Financial Daily)

Hibiscus Petroleum: Calls for vote on Lime Petroleum
Hibiscus Petroleum is holding a EGM on 21 Mac to obtain approvals from its shareholders for  its 35% acquisition of Lime Petroleum plc. The EGM comes after the Securities Commission  approved Hibiscus Petroleum acquisition of the stake last week. (Financial Daily)

Oil & Gas: Petronas ups gas supply to Gas Malaysia under new deal
Petronas will increase the natural gas supply to Gas Malaysia to 534,143 Gigajoule (492m standard cubic feet per day (MMScfd). The agreement is for 10 years from Jan 1, 2013 has an  option for it to be extended by another 5 years. The new gas supply agreement will replace  the existing gas supply agreement which will expire on Dec 31, 2012 for a total gas supply of  382 MMScfd.  According to Gas Malaysia, the contract is aimed at providing a long term  supply security of natural gas to Gas Malaysia’s existing customers, while the additional 110  MMScfd will enable Gas Malaysia to expand its supply to new customers. (Financial Daily)

Oil & Gas: Petronas awards design for Bintulu project to JGC Corp, Chiyoda-Saipem JV
Petronas has awarded the contract for the front-end engineering design (FEED) for its Bintulu  LNG complex to JGC Corporation and Chiyoda Corporation-Saipem SpA partnership. The  contract, awarded under a dual FEED scheme, will see the two contractors compete in the  feed and in the engineering, procurement and construction (EPC) price proposal for the  project, known as Petronas LNG Train 9. Petronas also said the FEED was scheduled to be  completed in Dec 2012, where the winner will be awarded the project’s engineering,  procurement, construction and commissioning (EPCC) contract. The project is targeted to  meet its final investment decision (FID) by 1Q 2013 while its ready for start-up (RFSU) date is by 4Q 2015. (Financial Daily)


The new lending guidelines on hire purchase loans may not be reviewed or adjusted for now as the government needs more data before making any decision. Based on the Malaysian Automotive Association's (MAA) numbers, new vehicles sales plunged 25% yoy last month. It was partly attributed to stricter lending rules imposed by Bank Negara Malaysia (BNM) on Jan 1 this year, besides less working days as a result of the festive season. "That is MAA's numbers. I would need to verify the numbers with the Road Transport Department (JPJ). "Bear in mind that the industry recorded a growth of over 4% in 2011 despite the tsunami in Japan and floods in Bangkok, which disrupted supply," said Transport Minister Datuk Seri Kong Cho Ha.(BT)

US-based fund manager Capital Income Builder has emerged as a new substantial shareholder in Sunway REIT. Capital Income Builder has recently acquired 174.95m units in Sunway REIT, representing 6.5% direct interest in the latter. The transaction was done in the open market. (Starbiz)

Mark Ding Peng Peng, the controlling stakeholder and managing director of Xidelang Holdings Ltd (XDL), is a man with a mission - to change public perception of his company. "First of all, we are not a shoe company. I don't know why the media here keeps referring us as a shoe maker. We are a sports apparel company," said Ding, who flew down from China early this week. "Sports apparel, accessories and equipment contribute some 47% to our revenue now, and this is expected to grow in the coming years," said Ding in an interview with BT. "Let's face the fact. My company is valued in the market at 2x P/E. "How many companies making a pre-tax profit of above RM100m a year constantly have such low valuation?" said Ding. He said the negative perception on China companies has played a key role, but feels that the investment public here has gone overboard. "Even in Hong Kong, our bigger rival Anta Sports Products Ltd has a better valuation, trading at 9.8x P/E," said Ding. (BT)

Time DotCom's pre-tax profit for the FY2011, rose to RM119.0m from RM88.9m yoy. Revenue, however, dwindled to RM313.9m from RM321.1m. TIME dotCom said its profit from core operations improved 35% to RM48.9m from RM36.1m yoy on the back of 34% hike to RM119.0m in net pre-tax profit. CEO Afzal Abdul Rahim attributed the better performance to increased focus on higher margin business driven by a healthier product mix. This year, the company would further monetise its network and build on expanding its coverage in key market segments, he said. TIME dotCom said its proposed plan to position itself as a regional wholesale player by acquiring a group of companies has been approved. This would allow the company to offer complete network solutions to regional providers, it said in a filing to Bursa Malaysia. (Bernama)

HeiTech Padu has received a letter of award for the Emirates Vehicle Gate portal project in the UAE. The contract value is estimated at RM20.1m. (Starbiz)

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