Bull Bear & Bursa with RY

Bought Axiata

2012-02-07T14:30:00.002+08:00

Bought back Axiata @ RM4.68.

Strong data growth @ XL Axiata

Disposed KFC

2012-01-31T21:49:00.001+08:00

Forgot to update. Disposed KFC last week @ RM3.82/share.

F&N Beverages Corporate Video

2012-01-31T20:18:00.001+08:00

Winning formula in diversified food products - QL

2012-01-26T23:03:00.001+08:00

By THOMAS HUONG
huong@thestar.com.my

A down-to-earth business philosophy combined with laudable foresight planning as well as Malaysia's rich natural resources and stable political environment has turned a small trading company into a billion-ringgit multinational over the course of 27 years. Today, agriculturebased QL Resources Bhd whose core business includes marine products manufacturing, integrated livestock farming and crude palm oil (CPO) milling, is the largest fishmeal maker in Malaysia and the largest producer of surimi (processed fish paste) in Asia.

The group is also among the country's leading operators in animal feed raw materials and poultry farming, with a production rate of about three million eggs per day.

The diversified group made its debut on the then second board of the Kuala Lumpur Stock Exchange on March 30, 2000 with a market capitalisation of RM100mil.

In the same year, the group posted a net profit of RM12.9mil on the back of revenue of RM407.2mil.

In the 11 years after its listing, the group enjoyed phenomenal success with a 22% average ROE (return on equity) as well as profit after tax's CAGR (compounded annual growth rate) of 23% and turnover CAGR of 15%.

Today, the group's market capitalisation stands at RM2.7bil. It has more than 4,500 employees across Malaysia, Singapore, Indonesia and Vietnam.

For its financial year ended March 31, 2011, the group posted a 16.5% year-on-year jump in net profit to RM124.5mil on the back of revenue of RM1.78bil.

Income from the sea: The group has a fleet of 25 fishing boats covering Johor and Sabah.

Humble beginnings

QL Resources Bhd managing director Chia Song Kun points out that the group's rags-to-riches story was a no-nonsense, step-by-step journey.

The group's roots lie in the sleepy fishing village of Sungai Burong in northern Selangor.

“We started with very little capital. No bank would lend us money as we were small and had no track record. In those days, we collected sea or cockle shells from the fishing village and sold them as animal feed to poultry farms,” recalls the 61-year-old Chia, who founded the venture together with several of his brothers in 1984.

At that time, Chia, who is a University Malaya mathematics graduate, had left his job as a lecturer in Universiti Teknologi Mara, Shah Alam where he had served for 11 years.

“I was looking at starting a business and went back to my brothers in the fishing village. We thought it was better to do something that we knew well. At least my brothers did not need to be fishermen anymore it's a tough life,” he says.

Chia, who comes from a family with 15 children (he is the third eldest son among the nine brothers), had long-term goals for the business.

“We thought about what we could do in a fishing village. It should be a business that has good growth potential, and we decided on fish processing and poultry. These are typical and traditional activites; we just needed to do them in a big way.”

Chia also co-founded private college group Inti Universal Holdings Bhd in the mid-80s, which was taken private in late-2008 after being acquired by Laureate Education Inc.

Sniffing out opportunities

According to Chia, the formula behind the succees of the group, which was recently awarded “Company of the Year” at The Edge Billion Ringgit Club Corporate Awards, are its corporate values, namely “integrity, win-win, teamwork and innovative.”

“This is our corporate culture which has been practised as much as possible since the founding of the business,” says Chia, who cited as an example, the value of innovation in the growth of the group's marine products division which manufactures fish-meal, surimi and surimi-based products.

Surimi paste and products such as fish cakes and balls are processed from minced, small fish.

“Innovation is very important in our business strategies.”

Chia explains that there is typically a lot of post-processing waste in the manufacture of surimi products.

“In the old days, the fish cakes and balls were mostly hand made. The waste is very smelly and a nuisance. What we did was to use available technology to treat the waste in our factories and process it into fishmeal for aquaculture feed. So, there is zero wastage as the whole fish is utilised.”

In 1994, the group started to expand its revenue base by exporting surimi to Japan.

Chia points out that many Malaysian surimi manufacturers cater only to the domestic market.

“It is not easy to sell to overseas markets like Japan they are very particular about quality. But we had to attempt it in order to achieve a higher level of value creation. So we bought Japanese technology, learnt about their processes in making surimi, and manufacture according to their standards.”

Today, the group exports surimi to China, Singapore, Japan and South Korea.

A typical layer farm such as this one at QL Poultry typically contains about 1,000 chickens which can produce up to 100 tonnes of manure per day.

Value for all

Another example is the construction of a 500kW capacity biogas facility at the group's poultry farm in Pajam, Negri Sembilan, which could save up to RM100,000 per month in energy costs.

The biogas facility, fuelled by chicken manure, is due to be completed by the end of this year.

Chia says that with around RM5mil invested in the facility, the project's payback period was five years.

He points out that the project is also in line with the group's “win-win” corporate value.

“This is also part of our corporate social responsibility (CSR). By doing this, we remove the smell from the poultry farm which can be a nuisance for the nearby community, and generate power at the same time. I think a five-year payback period is acceptable to our shareholders.”

If the project proves to be successful in providing significant cost savings, Chia plans to install more biogas facilities at poultry farms in Kedah and Sarawak.

In fact, the group's very name incorporates its “win-win” value.

QL stands for “quan li (value for all)” in Mandarin.

“The business should benefit all stakeholders owners, employees, partners, customers, suppliers.”

Perhaps an interesting example of this is the group's financial assistance scheme for fishermen which started in 1987.

To date, the scheme has provided more than RM25mil in interest-free advances to 700 fishermen in rural villages.

Chia says the scheme, which is similar to microfinancing by the Grameen Bank in Bangladesh, allows fishermen to build and modernise their boats and at the same time, enables QL to secure its long-term supply of marine catch.

“To produce high-quality surimi, the fish needs to be fresh. So, the fishing boat must be well-equipped with a cold room and methods of keeping the fish fresh. We provide financial help to the fishermen, and they sell fish to us at market prices.”

Chia adds that QL's three marine product factories in Hutan Melintang (Perak), Endau (Johor) and Tuaran (Sabah) also provide employment opportunities for local communities.

QL's Hutan Melintang complex is the largest integrated marine processing plant in Malaysia.

“In order for a business to carry on smoothly and grow, all participants in the venture must win. However, a win-win situation is only possible if we create extra value that is the challenge.”

Surviving tough times

Meanwhile, Chia points out that QL's core value of integrity has also been crucial.

“The banks never pulled back our credit lines in the 1997-1998 Asian financial crisis, which was a challenging period for us. The US dollar was high (ringgit was pegged at RM3.80 to the US dollar) and it was tough as we import a lot of raw feed materials,” he recalls.

Chia says QL's core value of integrity stemmed from the group's humble beginnings.

“We started from scratch. So to gain trust from customers, suppliers and financial institutions, one must build a good reputation. In other words, be honest and always honour agreements even if you have to make a loss. This is easy to say but tough to practise. So you also need to have a lot of business savvy. In the long run, you still win.”

On the value of teamwork, Chia says all employees of the group need to “sing as a team”.

“Of course, one must have tolerance in any team, there are bound to be differences of opinion. One important philosophy we have is leadership by example. The management must not be involved in unethical practices.”

Chia says employee turnover is very low. “We offer attractive incentive packages.”

The future is bright

Chia is looking forward to the next two years, when oil palm trees begin to mature in QL's plantations in Indonesia.

QL's palm oil division has not impressed in its performance, contributing only 2.7% of the group's pre-tax profit although it delivered 18.5% of group revenue in the previous financial year.

Integrated livestock farming was the largest pre-tax profit contributor (56.3%), followed by marine products manufacturing (41%). However, QL's latest annual report points out that the palm oil division suffered a 45% contraction in growth in the previous financial year, due mainly to the La Nina weather phenomenon that brought unusually heavy rainfalls to Malaysia and Indonesia and reduced yields of oil palm plantations.

QL has matured oil palm trees on 1,000 ha in Sabah and in 2007, the group acquired 20,000 ha in East Kalimantan, Indonesia.

As of May this year, about 9,000 ha have been planted in Indonesia.

Chia believes the palm oil division could contribute 20%-30% of group earnings from financial year 2015 onwards as the plantations in Indonesia gradually mature.

“This will help QL to grow further in the next 10 years. We will be a more balanced group with three pillars.”

QL is also replicating its marine products manufacturing and integrated livestock farming businesses in Vietnam and Indonesia.

In Indonesia, a marine processing plant to process surimi and fishmeal in Surabaya commenced operations in May this year while new egg and breeder centres are expected to contribute to earnings by September.

In Vietnam, new poultry farms should begin to contribute to earnings by April 2012.

A Maybank Investment Bank Research note issued in May says that with its regional expansion, the group's egg production is expected to climb to 4.5 million eggs per day (growth of 50%) in the first quarter of 2013.

Growing the business

Last year was also significant in terms of synergistic acquisitions by QL.

In August, QL acquired a 23.29% stake in rival company Lay Hong Bhdfor RM11.6mil. Lay Hong is mainly involved in the production of eggs, broiler farming and feedmill activities.

“In terms of egg production, QL and Lay Hong has 11% and 5% market share respectively. Together, we can manage our egg output and distribution activities as well as feed raw material sourcing arrangements more effectively,” says Chia.

Last October, QL paid RM29mil for a 40.51% stake in Boilermech Holdings Bhd, which was subsequently listed on the ACE Market of Bursa Malaysia in May this year.

Boilermech is mainly involved in the manufacturing and distribution of biomass boilers, and QL's stake meant acquiring technology in agricultural biomass power and heat generation for its palm oil division.

“Boilermech is our vehicle towards the future. It fits into our green energy engineering projects and palm oil downstream business.”

Another significant revenue source for QL in the future could be palm pellet biofuel, which is produced from palm oil mill by-products such as empty fruit bunches.

Palm pellet biofuel can be a substitute for coal in power plants, and QL has a patent pending on this biomass technology.

QL has invested more than RM12mil in research and development on palm biomass-related renewable energy technologies since 2008.

Meanwhile, many research analysts are bullish about QL's growth prospects.

An ECM Libra Investment Research report issued in May notes that QL has a unique mix of resilient business activities and proven track record.

It points out that QL's manufacturing of both surimi and downstream products such as fish balls and crab sticks allows for product mix flexibility and more stable profit margins.

“When the price of surimi is low, QL has the option of channelling more of its surimi into value-added products.” ECM Libra Investment Research head Bernard Ching says QL's agri-food business is “more or less recession-proof”.

“Given the uncertain market environment with low growth and high unemployment in the Western economies, QL looks solid. The maturity of the palm oil trees in Indonesia in the near future will also give a boost to its earnings growth,” he says.

An analyst from OSK Research concurs, saying there was plenty of room for growth for QL's agri-food businesses regionally, based on the large populations of Vietnam (89 million) and Indonesia (238 million).

A Maybank Investment Research analyst notes that QL has seen a decade of annual double-digit growth in net profit.

“Barring unforeseen circumstances, QL should see double-digit growth in net profit for the next two financial years,” he says.

However, Chia thinks the group will grow at a slightly slower pace in the next 10 years (compared with the last decade).

“We expanded our operations regionally in order to have a bigger platform for our next phase of growth. Still, being in other countries pose new challenges such as different cultures, languages, laws and bureaucracy. The environments are not as comfortable as Malaysia.”

2011 review and Happy New Year 2012

2012-01-02T23:10:00.005+08:00

Nothing much to write, just review of 2011 return. Well, my YTD performance following Japanese calender year (Apr-Mar), but just to keep a record my past year performance.

Well, portfolio 1 (Heavyweight - Mahsing) posted negative -4% return. Strong performance of Mahsing last year, end 2010/early 2011 but lower return in end of 2011 despite the company able to post uninterrupt earning growth. Negative performance mostly due to softening property market.

However, portfolio 2 (defensive play - heavyweight, CI Holding) managed to outperform KLCI by more than 95%, thanks to M&A exercise this year.

Overall, managed to outperform the market, thanks to privatisation of Mamee, Permanis, SP Setia and KFC Holdings. 2011 turned out to be my lucky year but 2012.....i think going to be very challenging...but looking forward for it.

'Compelling regional growth' for Maybank

2011-12-29T21:18:00.003+08:00

The acquisition of Singapore's banking franchise, Kim Eng Holdings, and the longer-term growth potential of Bank Internasional Indonesia (BII), will set the stage for a potentially compelling regional growth for Malayan Banking Bank Bhd (Maybank).

OSK Research said the bank's latest quarter net profit year-on-year (y-o-y) growth of 25.1 per cent and quarter-on-quarter growth of 11.4 per cent, respectively, far outpaced the industry's aggregate of 15.6 per cent and 8.2 per cent, respectively.

"Its earnings were propelled by an industry-beating loans growth of 17.6 per cent, y-o-y, the hefty 62.1 per cent drop in loans loss provision and maiden contribution from Kim Eng," OSK Research said in a note today.

It said BII was also aggressively expanding via new hiring and enlarging its branch network by 43 per cent over the next one-and-a-half years.

The research firm said BII's operating leverage would begin to flow through by financial year 2012 and financial year 2013 on a more stable cost base while generate new revenue from its enlarged presence.

"This would naturally help bring down the cost-to-income ratio closer to the industry average, driven largely by revenue growth from its enhanced infrastructure investments, as costs stabilises," it said.

OSK Research is maintaining a "Buy" call and fair value of RM9.60 on Maybank given the qualities provided by the bank and its alluring 7.6 per cent dividend yield which is the highest among domestic banking stocks. -- Bernama

QSR, KFC get takeover offers

2011-12-14T20:38:00.003+08:00

CVC Capital Partners Ltd teamed up with Johor Corp to make buyout offers today for KFC Holdings (Malaysia) Bhd and parent QSR Brands Bhd, which operate more than 900 fast-food outlets in Southeast Asia and India for brands including KFC and Pizza Hut. London-based buyout specialist CVC and Johor Corp, an investment arm of Malaysia’s Johor state government, offered RM4 per share for KFC Malaysia and RM6.80 per share for QSR, according to separate filings to the Kuala Lumpur stock exchange today. -- Bloomberg

============

Thanks to god, this is my forth luck this year, first mamee, then Permanis, then SP Setia-WB and now KFC.

KFC Holdings

2011-12-12T12:02:00.003+08:00

Bought KFC @ RM3.35. Banking on India growth and stability of local demand.

Bought Myeg

2011-12-01T21:09:00.001+08:00

Disposed Axiata @ RM4.90, bought Myeg @ RM0.61 today.

The Band Perry - If I Die Young

2011-11-28T15:17:00.001+08:00

Gallo Says Undersubscribed German Auction Is `Ominous'

2011-11-23T23:31:00.000+08:00

Part 1 - Buffett Buying IBM [NBC 11-14-2011]

2011-11-20T22:48:00.001+08:00

The Edge Billion Ringgit Club - Fraser & Neave Holdings Bhd

2011-11-15T21:53:00.000+08:00

Written by Financial Daily

Tuesday, 15 November 2011 11:31

Fraser & Neave group is a household beverages and dairies name that has been present in Malaysia since 1883.

In 1972, the Frase & Neave Ltd group ventured into glass manufacturing via acquisition of a substantial stake in Malaya Glass Bhd (MGB). In 1996, the group reorganised and realigned its Malaysian soft drinks and dairy businesses by injecting them into MGB, which later changed its name to Fraser & Neave Holdings (F&N) on March 5, 1996.

Since then, F&N has been regarded as the food and beverage (F&B) arm of its parent, Fraser & Neave, with wholly owned core businesses in Malaysia in soft drinks and dairies.

The group’s soft drink brands include 100Plus, F&N Fun Flavours, Seasons, Fruit Tree, Ice Mountain and Red Bull, while it is a franchise holder for Coca-Cola, Sprite and Aquarius. Its dairy brands include F&N, Tea Pot, Gold Coin, Farmhouse, Magnolia and Alive. It is also a franchise holder for brands such as Sunkist, Ideal, Carnation and Milkmaid.

F&N’s soft drinks factory in Shah Alam, operational since 1996, is one of the largest in Southeast Asia. The condensed milk factory in Petaling Jaya, set up in 1969, is Southeast Asia’s largest with an annual capacity of over 11 million cases. It also operates a can-making plant with a capacity of more than 420 million cans per annum.

A property division was added in 2004 and the group purchased a stake in Cocoaland Holdings Bhd in 2010 to further strengthen and accelerate the development of food products in its existing regional F&B portfolio. In 2010, the glass business was divested.

Datuk Ng Jui Sia, F&N CEO/managing director shares with The Edge Financial Daily his strategies and dreams for the company.

TEFD: What are the group’s competitive strengths and advantages?

Ng wants to see F&N establish itself as a leading regional F&B company.

Ng: Our competitive strengths lie in our people capability, established brands, a comprehensive distribution infrastructure and manufacturing excellence.

With a 128-year heritage, the F&N group in Malaysia has built a wealth of experience and established a legacy with distinctive embedded values. With intimate knowledge of the local market and consumer needs, we have managed to meet those needs for over four generations of Malaysians through product innovation. At the same time, we have built our distribution network to be second to none. F&N brands can be found in any distribution channel, ranging from hypermarket to sundry shops, from road side stalls to high-end F&B outlets.

Surveys have shown that virtually every household pantry and almost every F&B outlet in Malaysia stocks one or more of our products. Indeed, over the past 128 years our brands have become synonymous with the culture and traditions of Malaysia. Our products are affordable staples that are consumed nationally on a daily basis (and especially during Malaysia’s numerous festive seasons) and predominate in the market sectors in which we compete. For these reasons F&N is regarded as a good barometer of consumer confidence and of the national economy.

What have been the achievements of the group in the past four years?
The most significant achievement was Nestle’s canned milk acquisition in 2007. The acquisition propelled F&N into the largest canned milk producer in Southeast Asia. This was a very strategic investment as it enabled F&N to set a foothold in Thailand and a launch pad for expansion into the largely untapped Indochina and Myanmar markets with a population base of over 200 million. Its presence in the Thai market has helped F&N transform almost overnight into a top five non-alcoholic F&B company in Thailand, contributing to over RM1 billion revenue, next to the dairy business.

In 2009, a RM250 million Greenfield liquid milk plant was established in Rojana, 70km north of Bangkok with a total capacity of 3.5 million cans per day or annual production of 24 million cases of products. The plant is fully integrated with outsourced in-situ can manufacturing facility and on-site logistics operations.

The Thai plant became a blueprint for F&N Dairies Malaysia’s new RM350 million plant at the Pulau Indah halal hub in Selangor which is scheduled for completion in the second half of this year. This plant will showcase cutting-edge green technology which minimises carbon footprint via the incorporation of water, energy and environmental conservation technology.

Over the past five years since January 2006, the market capitalisation of F&N has seen a nearly threefold increase from RM2.21 billion to RM6.27 billion as at mid-October 2011.

What are the major challenges your company faced over the years and how did it overcome them? Is there anything else you would have done differently?
Our raw materials purchases are in US dollars. Thus, volatility in the USD/MYR exchange rate will have an impact. We will monitor our currency movements closely.

How is the company positioning itself within your industry? What are your strategies to grow or gain market share?
We are the market leaders in the ready-to-drink (RTD) beverages and canned milk (sweetened condensed milk and evaporated milk) in Malaysia. Our aim is to reinforce this leading position, while expanding our product portfolio towards becoming a total F&B company.

We are making fast and positive inroads into Thailand markets, and establishing a strong brand visibility in Indochina and Myanmar.

We have a two-pronged strategy for expansion. The first is to grow the business organically in the domestic markets that we operate in and seek new ones through exports, while the second is to seek out acquisition opportunities and/or strategic alliances with F&B entities, which will complement and synergise with our existing business model.

The F&N group is also able to leverage on the trained expertise from Nestle in terms of technical capability and R&D resources which have resulted in the introduction of innovative products to the market.

We will continue to launch more products and variants in addition to strengthening the distribution infrastructure of our remaining core products in the country. Our sound balance sheet coupled with strong liquidity will stand us in good stead as we pursue our vision of becoming a regional F&B company.

What are the group’s plans for the future, both short-term and long-term? What are your group plans to compete in the increasingly globalised environment?
With Coca-Cola’s impending entry, we expect the local beverage landscape to change and competition to intensify, both of which will pose challenges as well as provide new opportunities to the group. Noise levels (in terms of advertisement, promotions, merchandising, new product launches) will increase significantly with the entry of such a formidable player. Arising from this, we expect the RTD market to expand.

Presently F&N has a leading advantage in terms of width and depth of distribution and our brands like 100Plus, F&N, Seasons are household names. F&N will vigorously contest to reinforce our position in the market. After all, Malaysia is our home ground and we are homegrown. We expect F&N volume to continue to grow by double digits in the foreseeable future.

As for dairies, we have started the ball rolling by entering the Thai dairy market in 2007. The immediate focus is to grow share in the Thai market and build brand franchise and presence in Myanmar and the Indochina region.

Once there is a critical mass, it offers an opportunity to set up dairy plants in Indochina and Myanmar to cater to the growing demand as the Rojana plant in Thailand will not be able to fulfil demand of a 220-million population base.

How would you like to see the group in 10 years’ time?
We would like to see F&N establishing itself as a leading regional F&B company, with dairy and soft drink plants in the Asean region, particularly in Myanmar and Indochina.

QSR’s Tom Yum Crunch spices up a busy 4Q

2011-11-08T20:16:00.002+08:00

Written by Financial Daily
Tuesday, 08 November 2011 10:29

QSR Brands Bhd
(Nov 4, RM5.65)
Maintain outperform with revised target price of RM8.30 from RM7.22: Crowd favourite Tom Yum Crunch returns after seven years to a hot and spicy response, feeding into KFC’s mouth-watering same-store sales growth (SSSG) 0f 12% in October. Pizza Hut is playing catch-up in the delivery segment and the group is making further headway in India.

We raise our target price as we roll it forward, still pegged to 17.8 times forward price earnings ratio (PER), the average valuation of bigger peers. A further rise in average ticket prices, success in new markets and accelerated share buyback underpin our “outperform” call.

We are confident that Tom Yum Crunch will enable QSR to meet our FY11 SSSG target of 5% for both Pizza Hut and KFC. This will be the group’s best SSSG performance since FY09. We wasted no time in joining the queue at a KFC restaurant to welcome the return of Tom Yum Crunch.

During its debut in 2Q04, the wonder product helped KFC’s quarterly SSSG hit an unprecedented 44%. Just like the first round, the product did not disappoint and has generated a lot of buzz, contributing to KFC’s 12% SSSG in October. We applaud QSR’s latest initiative to drive Pizza Hut’s transactions across the delivery segment where it is lagging behind Domino’s. QSR has rolled out a new type of dough and a new distribution channel called Pizza Hut Delivery (PHD). PHD guarantees delivery within 30 minutes for 5km-radius catchment areas and offers free delivery and net prices to compete more effectively with Domino’s. We are encouraged by KFC India’s progress so far.

Monthly sales average RM350,000 to RM400,000 per outlet, substantially higher than the average of RM270,000 per outlet recorded by KFC Malaysia’s operations. A wide array of products that cater for vegetarians and non-vegetarians is bringing in the traffic and a staggering SSSG of 20%. Similar to the Malaysian operations, the average ticket price has been on the uptrend, hitting RM14 in 2Q11 compared with RM13.50 in 1Q11 and RM12 in 4Q10. — CIMB IB Research, Nov 4

The Edge Billion Ringgit Club - Mah Sing Group Bhd

2011-11-01T20:31:00.000+08:00

Written by Financial Daily

Tuesday, 01 November 2011 11:37

Incorporated in 1991, Mah Sing Group Bhd is one of Malaysia’s leading developers. With numerous international and domestic awards, the group has established a strong brand in medium to high-end landed residential properties, commercial projects including office buildings, shops, retail and SoHo as well as industrial projects. It also has a profitable plastic business, which was the original core business of the group before it diversified into property development. The group has about 34 projects across Malaysia.

Group managing director and CEO Tan Sri Leong Hoy Kum shares with The Edge Financial Daily his strategies and dreams for the company.

TEFD: What are the group’s competitive strengths and advantages?
Leong: Our competitive strengths include being versatile, having a strong brand, being innovative and being able to cater for various market segments.
• Versatility. Mah Sing is one of the few developers in Malaysia to offer a wide range of products comprising residential (catering for a wide range of customers, from medium to high-end developments, both landed and high-rise with built-up areas from 500 square feet), commercial (office, retail and shops) and industrial properties. Our wide ranging product offerings help the group identify and roll out different products in different phases of the economic cycle (see table).
• Quick turnaround strategy. The group ensures a short period between land purchases and launches for fast cash flow generation to maximise shareholders’ return.
• Strong research and development team. We conduct in-depth study of market needs. The team is able to identify new trends that appeal to the market. For instance, in the residential segment, we identified the trend and appeal of superlink, semi-detached and bungalow developments in a gated-and-guarded environment with facilities. In the commercial space, we popularise en bloc sales in the primary market (The Icon Jalan Tun Razak — West Wing and East Wing, and Apex Tower, Southgate). For the industrial segment, the group identified the opportunity for niche semi-detached industrial properties in the Klang Valley which resulted in the brisk sales for our iParc 1, 2 and 3
• Strong branding. The group has built a strong brand name over the years, delivering quality products on a timely basis that meet the needs of end buyers.

Leong is inpired by Li Ka Shing and aims to make Mah Sing the Cheung Kong of Malaysia one day.

• Innovative and fresh concepts, adaptable to changing market demands. Our product development team continuously work on innovative products based on market feedback obtained by our research and development team. While presenting fresh concepts, we ensure that practicality is given paramount importance.
• Quality and services. Mah Sing has a strong quality control and quality assurance team that ensures all our projects meet and exceed stringent quality standards. We are also adopting international best practices in ensuring quality and have sought CONQUAS (Construction Quality Assessment System) certification by BCA Singapore (Building and Construction Authority) for all new residential projects. We also have the distinction of being the first and only developer accorded the CONQUAS award for an office building in Malaysia, namely The Icon Tun Razak which was completed in 2009.
• Strong balance sheet and earnings sustainability. We had low net gearing of 0.32 times as at March 31, 2011. This provides us with the capacity to gear up for landbanking. Our present combined remaining gross development value and unbilled sales are about RM14 billion which should provide earnings sustainability for another five to seven years.
• Geographical diversification. Domestically, Mah Sing has developments in the three main growth corridors of the Klang Valley, Johor and Penang. It is also looking at opportunities abroad in China, Vietnam, Singapore and Australia.

What are the group’s achievements in the past four years?
Our revenue doubled from RM573 million in 2007 to RM1.11 billion in 2010, while net profit increased nearly 50% from RM81 million in 2007 to RM118 million in 2010. Our number of projects nearly tripled, from 13 projects in 2007 to 34 in 2011. We have maintained a consistent dividend payout of a minimum of 40% of net profit since 2006. Mah Sing has garnered both local and international awards and accolades for its projects as well as recognition for its performance as a leading property developer.

How is the group positioning itself within your industry? What are your strategies to grow or gain market share?
Mah Sing is a premier lifestyle developer and our expertise is in innovative product development, high quality finishing and timely delivery of products that surpass our buyers’ expectations. We are also one of the very few developers in the country to offer a full and complete range of properties, namely residential, commercial and industrial products. Hence, we are positioning ourselves as a one-stop centre where properties are concerned.

We will continue to offer properties in good locations, with concepts and designs that meet buyers’ needs. In 2007, we achieved sales of RM727 million and doubled that to RM1.5 billion in 2010. Moving forward, we aim to gain more market share, starting with a RM2 billion sales target for 2011.

We are committed to raising the bar to continuously improve our concepts, designs and also strive to create iconic buildings and developments. We will also continue to run our business well, grow our revenues, profits and returns to shareholders, as well as adopt good corporate governance.

What are the group’s plans for the future?
In the coming years, the group will proceed with its three-pronged strategy. We will continue with our niche, quick turnaround development model for our residential, commercial and industrial series as it is profitable and cash-generative. With our low net gearing, we target to acquire a large tract of strategic land bank over the next two years. In the future, we shall explore overseas expansion to drive future earnings growth.

What is your dream for your company? How would you like to see it in 10 years?
My vision is to be a regional developer. We would like to continue with our branding locally and hopefully someday, our brand will penetrate other parts of the world. This is what we wish for as we are looking at bringing value to the house buyers, improving the quality of life and enhancing their lifestyles. We are a dynamic company and seek continuous improvement. Ultimately, we want to leave a legacy of excellence.

I am inspired by business luminaries like Li Ka Shing and aim to make Mah Sing the Cheung Kong of Malaysia one day.

Axiata 6888

2011-10-24T19:51:00.003+08:00

Bought Axiata at RM4.83/share today.

Haydi Öp (Keremcem)

2011-10-16T21:10:00.001+08:00

My fav turkish singer

NTPM hit by rising costs

2011-10-10T23:12:00.002+08:00

KUALA LUMPUR: A market leader in tissue products, NTPM Holdings Bhd is concerned about the rising costs of its main raw materials, recycled paper and pulp, but has decided not to pass down the cost increases to consumers.

In an email interview with The Edge Financial Daily, NTPM’s managing director Lee See Jin explained: “NTPM has to be socially responsible not to pass on the cost increase to the consumers each time there is a hike in the material and operational costs. The consumer is already burdened by the increase in daily living costs such as petrol and electricity.”

Pulp and recycled paper constitute 30% of NTPM’s cost of sales, he said.

The prices of recycled paper and pulp have been increasing by an average of 45% and 33% respectively over the last two years and this had an impact on NTPM’s profitability in its previous financial year ended April (FY11).

For its first quarter (1Q) ended July 31, NTPM posted a 13.2% year-on-year rise in revenue to RM106.95 million from RM94.5 million a year ago.

But due to the increase in raw materials cost and production overheads, its net profit fell by 25.6% to RM9.23 million from RM12.41 million previously.

Asked if NTPM is compromising its shareholder value by not passing down the cost increases to consumers, Lee said: “It all depends on the situation, that is, market forces and the competitors’ market position. Increasing our selling price will improve our profitability in the short term.

Lee said NTPM will continue to find ways to mitigate the impact of higher costs by continuing to improve its business operations and looking for avenues to bring down energy costs.

“However, using this strategy may result in some cost conscious customers seeking cheaper alternatives. Hence, we may lose some market share in the future.”

He said there should not be any price increment in NTPM’s products for now.

On the strategies against rising raw material prices, Lee said NTPM will continue to find ways to mitigate the impact of higher costs by continuing to improve its business operations and looking for avenues to bring down energy costs.

Electricity accounts for about 8.5% of NTPM’s cost of sales.

For 1QFY12, NTPM derived 80% of its revenue from tissue products such as facial tissue (19%), toilet rolls (33%), kitchen towels (6%), serviettes (5%) and jumbo rolls (8%).

The balance 20% came from personal care products such as facial cotton (3%), sanitary napkins (7%), baby diapers (9%) and adult diapers (1%).

NTPM’s Premier and Royal Gold brands are the top two market leaders in the facial tissue segment with a market share of 38.3% and 9% respectively.

Its Cutie brand is also the market leader in the toilet tissue segment with 48.5% market share.

Its Diapex brand in the baby diaper segment and Intimate brand in the sanitary napkins segment have a market share of 4% and 6.1% respectively.

Lee said the information for its products’ market share was extracted from ACNielsen’s market report for 2010. But the current market share for these products should not differ much, he said.

According to Lee, NTPM’s major competitors are Kimberly-Clark, Uni-Charm, SCA and DSG (Thailand).

Sales of NTPM’s baby diaper products have been growing rapidly with a 78% increase in FY11.

Lee said NTPM targets to achieve a market share of 10% to 20% for baby diapers in the future, which translates into sales of RM100,000 to RM200,000 per annum.

“We expect the contribution from baby diapers to be 5% to 10% of our total revenue,” he said.

On the introduction of new products, Lee said the company is interested in wet wipes and its inclusion will provide a comprehensive answer to the range of personal care products NTPM currently owns.

To increase market share and stay ahead of competitors, NTPM will focus on growth by expanding its product portfolio and introducing new innovative products, he said.

“NTPM will continue to enhance its distribution network in the country, which is one of the group’s core competencies, and strengthen its foothold on its higher value-added products range,” he added.

He said NTPM will also beef up its presence in established markets such as Malaysia and Singapore, and seek opportunities in Southeast Asia and the Oceania region.

For 1QFY12, most of its revenue came from Malaysia (67%). Other revenue contributors include Singapore (15%), Australia (5%), Thailand (3%), South Africa (3%), USA (2.1%), New Zealand (1.5%) and Brunei (1%).

In July, NTPM, through a wholly owned subsidiary, NTPM Paper Mill (Bentong) Sdn Bhd, had proposed to acquire land and machinery from Union Paper Industries Sdn Bhd for RM20 million.

Lee said Union Paper has two paper-making machines with a capacity of 30 tonnes per day. The machines are meant to produce “high runner” toilet rolls and facial tissue products.

The acquisition is expected to be completed by April 2012 and NTPM Paper Mill is expected to contribute to NTPM’s earnings from FY13 onwards, said Lee.

Currently, NTPM has 18 paper-making machines with a total capacity of 255 tonnes per day. NTPM is currently operating at 80% capacity.

For its personal care products, NTPM has two production lines for baby diapers and six machines for sanitary napkins. Both operations are currently operating at 50% capacity.

On the industry’s outlook, Lee foresees the market growth for NTPM’s products over the next year or two possibly moderating due to inflationary pressures on consumer spending power and waning consumer confidence.

“At the same time, we are feeling the pinch of intense competition from other market players.

“However, we are optimistic that we shall continue to do well and thrive in the years ahead mainly due to Asia’s robust growth led by its strong domestic demand,” he said.

Since its listing in 2003 until FY11, NTPM has chalked up compound annual growth rates for revenue and net profit of about 11% and 8% respectively.

For FY11, it registered revenue of RM420.23 million, an increase of 9.7% from RM383.12 million for FY10.

Despite the higher revenue, its net profit declined 12.2% to RM52.06 million from RM59.32 million previously, due to the increase in raw material prices.

NTPM has a market capitalisation of RM555.98 million at its closing price of 49.5 sen last Friday. Its stock has fallen 11.61% year-to-date and has traded between a 52-week high of 58 sen and a low of 46 sen.

As at July 31, NTPM had cash reserves of RM20.75 million and total borrowings of RM75.8 million.

For FY11, it paid a total net dividend per share of 2.9 sen which represented a payout ratio of 62.56%. Its dividend yield was 5.86% based on its last traded price.

In a Sept 26 report, OSK Research downgraded NTPM to a “sell” with a fair value of 46 sen from 53 sen previously.

OSK Research said NTPM posted poorer than expected results in 1QFY12 as margins were impacted from gas and electricity price hikes, higher raw material prices, and higher indirect raw material such as chemical and packaging prices.

However, it stated that if the global economic conditions worsen, the potential decline in pulp prices would augur well for NTPM.

Raising some cash

2011-10-10T22:12:00.003+08:00

Took some (30%) profit on my Mahsing @ RM1.80. Holding too much property stock make me nervous looking at current uncertainty. Well, there's nothing new and exciting news from europe, thus, its better for me stay in sideline.

BNP, Societe Generale Say French Report They May Raise Capital Is False Q

2011-10-09T22:38:00.001+08:00

By Francois de Beaupuy - Oct 9, 2011 11:00 PM GMT+0900

BNP Paribas (BNP) SA, France’s largest bank, and Societe Generale SA denied a report in today’s Le Journal du Dimanche that they may seek to raise billions of euros to shore up their capital as part of a Europe-wide plan.

“BNP Paribas is denying this report, and is confirming that it plans to reach a Tier 1 capital ratio of 9 percent,” complying with Basel III rules “by the start of 2013, six years before the deadline, without a capital increase,” spokeswoman Carine Lauru said in a telephone interview today.

Societe Generale also “denies the report” and confirmed its strategic plan to reach a Tier 1 ratio of “well above 9 percent by the end of 2013 without a capital increase,” Laetitia Maurel, a spokeswoman for the Paris-based bank, said in an email statement.

Le Journal du Dimanche today reported that BNP Paribas and Societe Generale (GLE) may seek to raise 7 billion euros ($9.4 billion) and up to 4 billion euros respectively as part of a Europe-wide plan to be discussed between France and Germany to shore up the region’s banking system. The French newspaper didn’t say where it obtained the information.

Paris-based BNP Paribas and Societe Generale, France’s second-largest bank, said last month they were taking steps to assuage investors’ fears and reduce their need for U.S. dollar funding.

Balance Sheet Cuts

BNP Paribas is planning to reach a Tier 1 capital ratio, a measure of financial strength, of 9 percent by the start of 2013 through measures including cutting its corporate- and investment-banking balance sheet by $82 billion, according to a Sept. 14 presentation.

German Chancellor Angela Merkel and French President Nicolas Sarkozy, who are meeting today, will set a timeframe to reach equity goals in coming weeks because a signal must be given to reassure markets, Le Journal du Dimanche said, citing an unidentified person close to Sarkozy.

Banks will have to seek funds from private investors, according to the newspaper. If they fail to find private investors, governments or the European Union will take stakes in banks, it said.

Taylor Swift - Mean

2011-10-09T21:41:00.001+08:00

Always love Taylor Swift.

BFood on expansion spree

2011-10-03T21:16:00.003+08:00

I really like this counter, looking for the right time to buy in. Injection 50% of Berjaya Starbuck asset under Berjaya Foods definitely will offer a better growth opportunity rather than just relying on KRR. Its a good brand but i dont really feel like KRR has a ummph factor to drive customer to their restaurant frequently like KFC or McD.

Now, with Starbucks under BJFood umbrella, will give us opportunity to participate Starbucks' growth potential. Clean balance sheet, good business model and future growth through restaurant expansion and potential of enjection of other Berjaya asset such as Krispy Kreme and Wendy's

==============================================

KUALA LUMPUR: Berjaya Food Bhd (BFood) is showing promising growth prospects with the injection of Berjaya Starbucks Coffee Co Sdn Bhd into its business and the plan to expand its chain of Kenny Rogers Roasters (KRR) restaurants in Malaysia and Indonesia.

BGroup, which holds the global KRR franchise via wholly-owned Roasters Asia Pacific (HK) Ltd, is venturing into China.

BFood, on the other hand, is principally involved in the development and operations of KRR in Malaysia through wholly-owned Berjaya Roasters (M) Sdn Bhd, the franchise holder of KRR restaurants in Malaysia.

Listed on Bursa Malaysia in March, BFood’s FY11 net profit was up by 17% to RM10.2 million from RM8.68 million in FY10. Revenue grew by 19% to RM71.9 million from RM60.42 in FY10.

In a recent interview with The Edge Financial Daily, BFood CEO Datuk Francis Lee expected the company’s revenue and net profit for FY12 ending April 30 to grow at the same pace as in the previous year.

BFood’s earnings for FY13 onwards will get a boost from the ongoing acquisition of Berjaya Starbucks, which will be concluded in the first quarter of 2012, said Lee, a former director of Berjaya Starbucks.

Last month, BFood proposed to buy a 50% stake in Berjaya Starbucks from BGroup for RM71.69 million cash or at a price-to-earnings ratio (PER) of 13.5 times.

The acquisition will be financed by a proposed cash call to raise over RM70 million. The proposed rights issue is on the basis of four rights shares together with four free warrants for every five existing shares held at an issue price of 65 sen per share.

Kenny Rogers Roasters at Aeon Bandaraya Melaka shopping centre.

Berjaya Starbucks, for its FY11 ended April 30, recorded a net profit and revenue of RM10.62 million and RM145 million respectively.

When asked if the acquisition of Berjaya Starbucks at a PER of 13.5 is expensive, Lee’s response was: “At 13.5 times, I think it’s a fair value because of the visibility of Starbucks in the whole of Malaysia. It will propel BFood to a different level.”

“If you look at Starbucks Corporation (listed on Nasdaq) itself, it has a PER of 26 times,” he added.

However, Lee declined to give details of Berjaya Starbucks’s expected future earnings. He only revealed that Berjaya Starbucks same-store sales growth has been about 15%.

According to Lee, BFood is targeting to open 12 to 15 Starbucks outlets every year.

“With 120 outlets currently, Berjaya Starbucks’ store growth would be about 12%,” he said, adding that BFood plans to have 200 outlets over the next five years.

Lee said a master development agreement with Starbucks Corporation was in the process of being re-signed and should be concluded within two months.

The new agreement will allow Berjaya Starbucks to run its franchises for 20 years compared with 10 years previously.

Going forward, Lee said Starbucks would always be the preferred brand in Malaysia.

“Starbucks will be the first port of call when it comes to any mall or premises that is ready to be occupied because of its unique position and strength, US backing, product development and marketing tools,” he said.

On BFood’s expansion into Indonesia, Lee said in about two weeks, it would complete a deal allowing BFood to develop and operate the KRR franchise in Indonesia.

In late July, BFood entered into a joint venture with PT Mitra Samaya, PT Harapan Swasti Sentosa and PT Boga Lestari Sentosa to develop and operate the KRR franchise in Indonesia under PT Boga.

Under the deal, BFood will pay RM1.91 million for a 51% equity stake in PT Boga. On top of that, BFood will extend a RM6.09 million loan to the Indonesia-based company and will subscribe to the rights issue of PT Boga that will cost about RM1.99 million. BFood is granted an option to raise its shareholding to 70% within seven years.

PT Boga has four KRR restaurants in major shopping malls in Jakarta.

In addition to the four restaurants in Indonesia, Lee said PT Boga will open another five by the end of this year, and another three more by end-June 2012. In total, there will be 12 stores by end-June 2012.

Lee expects the KRR restaurants in Indonesia to break even by April 2012 and contribute to BFood’s earnings in FY13.

“The following financial year-end should have some positive growth in terms of bottom-line numbers,” he said.

Lee emphasised the potential of BFood’s business in Jakarta, the most populous city in Southeast Asia, with a population of over 20 million.

After opening 20 to 25 KRR restaurants in Jakarta, BFood will also look at other places in Indonesia, Lee said.

Within the next five years, he expects a total of 60 to 70 KRR restaurants to be in Indonesia.

Lee said Indonesia will be the company’s focus for the moment but other potential countries will include India, Taiwan, Vietnam and Thailand.

In Malaysia, there are currently 68 KRR restaurants — 55 BFood-owned and 13 franchised restaurants. BFood plans to open another 15 KRR restaurants in FY12, Lee said.

While BFood’s focus will be mostly in Southeast Asia for the moment, BCorp will be the vehicle for the KRR franchise venture in China.

In April, Lee had set up a team in Shenzhen, China, and said BCorp would open its first KRR restaurant there in the first week of November.

The restaurant will be located in Shenzhen Link City Underground Shopping Mall in Futian district. The unique underground mall is linked to an underground mass rapid transit, he said.

“It’s on the border of Kowloon and China, so there is a lot of traffic and people passing through,” he said.

Lee said BCorp has set up five stores in China and is under negotiation to open another 20.

BFood may inject other food and beverage (F&B) brands held under BGroup such as Papa John’s Pizza, Wendy’s Restaurants and Krispy Kreme Doughnuts.

“When the other franchises [under BGroup] are ready [in terms of earnings] there may be a possibility of injecting them into BFood,” he said.

“The idea is to hold BFood as the preferred route to hold all of our group’s F&B businesses,” he added.

Lee said BFood will look to buy other F&B businesses at low PERs to add value to the company. “BFood’s growth can be organic and also through external acquisitions,” he said.

To ensure a high success rate for its KRR operations, Lee said BCorp consults focus groups.

Based on the focus groups’ findings, Lee said they will tweak the KRR menu to better suit the food taste of different countries. For instance, people in China prefer a slightly sweeter sauce, whereas in Indonesia, a slightly saltier or spicier sauce is preferred.

However, KRR restaurants worldwide will maintain their signature products and sauces, he said.

KRR has redesigned its restaurants to create a modern and contemporary ambience, Lee said.

The KRR logo has been changed, too. The face of Kenny Rogers, country musician and co-founder of KRR, has been replaced with a flame and the new overall logo has more aggressive colours, Lee said.

“The younger generation does not know who Kenny Rogers is,” he explained.

Lee said BFood has streamlined the KRR menu to increased gross profit margins. He added that the average spending in Malaysian KRR restaurants is about RM45.

KRR’s competitors are table service restaurants in the mid-casual segment such as Pizza Hut, which has a similar ambience to KRR restaurants, he said. He clarified that KRR is not a fast food business.

To ensure KRR’s quality is maintained while the business is expanding, Lee said an important criteria is to keep recruiting and training employees.

Not known to many, Lee said KRR and Berjaya Starbucks have a mobile restaurant capable of serving up to 200 guests.

“If you can have the Starbucks and KRR van together at an event, it will be a unique experience,” said Lee, who holds such an event at his home once a year.

Financially, BFood has a sound balance sheet with cash reserves of RM31.29 million with no borrowings as at end-July.

Lee said the cash reserves will be used to open more stores and pay dividends.

BFood paid its first interim dividend of three sen in FY11 amounting to RM4.26 million, which translates into a payout ratio of 41.8%.

Based on its closing price last Friday at 84 sen, BFood has a dividend yield of 3.6%.

Since its maiden trading day on March 8, BFood’s share price has climbed 65% to 84 sen from its issue price of 51 sen.

According to Bloomberg data, BFood has a PER of 11.65 and market capitalisation of RM119 million. As a comparison, KFC Holdings (M) Bhd has a PER of 16.43 and market capitalisation of RM2.62 billion, while QSR Brands Bhd has a PER of 13.36 and market capitalisation of RM1.62 billion.

The other F&B stock listed this year, Oldtown Bhd, has a PER of 7.74 and market capitalisation of RM303.6 million.

Lee said BFood’s market capitalisation of RM119 million gives it much potential to grow compared with KFCH and QSR.

Buffett Says Berkshire Made $4 Billion of Stock Investments During Quarter

2011-10-02T19:40:00.001+08:00

By Andrew Frye and Charles Mead - Oct 1, 2011 1:57 AM GMT+0900

Enlarge image

Warren Buffett, chairman and chief executive officer of Berkshire Hathaway Inc., center, attends a ceremony with Cathy Baron Tamraz, chief executive officer of Business Wire, left, to ring the opening bell at the New York Stock Exchange (NYSE) in New York on Sept. 30, 2011. Photographer: Scott Eells/Bloomberg

Play Video

Sept. 30 (Bloomberg) -- Warren Buffett, chairman and chief executive officer of Berkshire Hathaway Inc., talks about his proposal for increasing taxes on ultra-rich Americans, and the European debt crisis. Buffett, speaking with Betty Liu on Bloomberg Television's "In the Loop," also discusses Berkshire's investment in Bank of America Corp. and share buyback program. Cathy Baron Tamraz, chief executive officer of Berkshire's Business Wire unit, also speaks. (Source: Bloomberg)

Warren Buffett’s Berkshire Hathaway Inc. (BRK/A) added about $4 billion in common stock to its investments during the third quarter, taking advantage of undervalued equities as stock markets slid.

The net change, described by Buffett today in a Bloomberg Television interview, compares with $3.4 billion in the second quarter. That was the most since Omaha, Nebraska-based Berkshire plowed a net $3.6 billion into stocks during the third quarter of 2008, the height of the global credit crisis.

“We’re ready to buy lots of things,” Buffett, 81, said in the interview with Betty Liu on the floor of the New York Stock Exchange. Berkshire’s program to purchase its own stock, announced earlier this week, “won’t keep us from investing billions and billions and billions in plants and equipment, in new acquisitions.”

Berkshire, which had a $67.6 billion equity portfolio as of June 30, is focusing on stocks after its cash hoard swelled and interest rates remained near record lows. Equities markets around the world fell during the third quarter amid speculation that Europe will fail to contain its sovereign debt crisis and that the U.S. economy will weaken.

Earnings from Berkshire’s businesses have grown to about $1 billion a month, and finding uses for that cash has become more difficult, Buffett said in April. The Standard & Poor’s 500 Index dropped 12 percent from the end of June through yesterday, heading for the worst quarterly performance since the last three months of 2008, while the Stoxx 600 Europe Index tumbled 16 percent.

Buying When ‘Cheap’

Buffett, the company’s chairman and chief executive officer, excluded the firm’s $5 billion purchase of Bank of America Corp. (BAC)’s preferred stock from his $4 billion estimate for common-stock investments. The deal with the Charlotte, North Carolina-based lender pays $300 million in annual dividends and gave Berkshire warrants to purchase 700 million shares of common stock for $7.14 each.

Berkshire, which has shunned buybacks for four decades, said Sept. 26 that it will repurchase shares for as much as 110 percent of their book value because the stock is undervalued. The firm has since started procuring them.

Its Class A shares had slipped below $100,000 in New York Stock Exchange composite trading on Sept. 22 for the first time since January 2009. They traded at $108,400 as of 11:43 a.m. today.

“If the stock is cheap, we will buy it,” Buffett said. “If it isn’t cheap, we won’t buy it.”

Cinta Muka Buku- Nice Song ;p

2011-10-01T11:03:00.001+08:00

Sold SP Setia-WB

2011-09-30T21:14:00.004+08:00

Managed to sold off my SP Setia-WB @ RM0.90. Not sure how long the negotiation between SPSB board and PNB going to last, thus its better for me to take profit first. Definitely my best short term ever. :p

Affin Holdings Bhd

2011-09-29T21:15:00.003+08:00

Affin Holdings looks very attractive to me at current valuation.

Price = RM2.46

PE = 7.6

NTA = RM3.48

Not so crazy about their ROE and customer loan breakdown. Though we are expecting a slower growth of loan in next few quarter due to gloomy outlook in global and domestic market but i think their share has been over punished to a unreasonable valuation. Trading buy?

My third Luck.... now SP Setia

2011-09-28T19:58:00.003+08:00

I'm a bit excited when i notice the share of SP Setia being suspended this morning, as i had similar experience/situation with Mamee early this year and C.I. Holding, mid of this year. So, first Mamee, then Permanis, now SP Setia.

Consider myself very lucky with latest PNB move to acquire SP Setia at RM3.90 and RM0.91 for its warrant. Honestly, i think the offer is undervalue for a good and a darling for local and international funds. Hope they will revised the offer at much higher side, at least RM4.00/share.

Nonetheless, im still happy as @RM0.91, im making ~139% gain in short time.(if share were traded near the offer) :p

Blain Says Enlarged EFSF Still Vulnerable to Speculators

2011-09-27T23:16:00.001+08:00

S P Setia posts strong numbers yet again

2011-09-26T21:38:00.006+08:00

Will collect more if its down again. I think SP Setia is the only giant property developer currently sitting on net cash, good landbank (local and o/sea) and mix combination of mid and high end residential and commercial development.

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S P Setia Bhd

(Sept 23, RM3.08)

Maintain buy at RM3.19 with fair value of RM5.41: We reaffirm our “buy” rating on S P Setia with our fair value unchanged at RM5.41, at par to its fully-diluted NAV estimate.

S P Setia reported 3QFY11 earnings of RM91 million, taking its 9MFY11 net profit to RM246 million, or a robust growth of 39% year-on-year. This is well within our estimate, covering 78% of our full-year earnings projection of RM311 million although it came way above consensus estimates by 12%.

At a glance, earnings were flat quarter-on-quarter. However, stripping off the RM32 million gain from the sale of Tenby International School in Setia Alam, core earnings jumped by half. Earnings were driven by progress billings at Setia Alam, Setia Eco Park, Bukit Indah and Setia Walk.

S P Setia’s sales remain strong, recording RM2.3 billion in new sales as at end-August, already surpassing its best ever full fiscal year sale. We expect the group to record sales above its bullish target of RM3 billion and FY11F earnings may exceed our current earnings forecast of RM311 million.

While latest monthly sales have dropped i.e. August figures dropped by some 12% month-on-month to RM186 million due to slower launches, sales are expected to rebound sharply in the next two months. S P Setia is expected to recognise the sale of the boutique offices in KL Eco City as the privatisation agreement with DBKL would be finalised soon. Sales from its maiden launch in Australia would also likely be accounted next month.

While there are a lot of uncertainties given the confidence crisis in the global economy, sector fundamentals remain solid. And S P Setia’s earnings are very much secured by record unbilled sales of RM3.9 billion (about two times its FY10 revenue). Should the economy turn, we believe sales would remain resilient and it has products to cater to the mass market; for example, Setia Alam and the recent land acquisition in Semenyih would provide more opportunities to launch mid-segment houses.

Following the weak sentiment, the stock has dropped by some 31% since its high of RM4.62. S P Setia is currently trading at a steep discount of 41% and an undemanding forward FY12F-FY13F PE of 11 to 14 times. We believe it is a good opportunity to accumulate the stock, notwithstanding the current weak market sentiment. — AmResearch, Sept 23

Market in Free fall mood

2011-09-26T12:37:00.004+08:00

F=mg, seems like the value of g is getting larger and larger since last few weeks. Anyway, added mahsing @ RM1.55. Regret added too early @ RM2.00, but then again company still a solid rock.

Added SPSetia-WB @RM0.38. :p

update= ok, now below 1.50 alr. wont touch anymore until market stabilizing.

MBSB transformation yields stronger results

2011-09-20T23:08:00.003+08:00

Malaysian Building Society Bhd
(Sept 19, RM1.38)
Initiating coverage at RM1.43 with buy call and target price of RM1.84: MBSB’s change in business direction has resulted in a turnaround in performance. Compound annual growth
rate (CAGR) for net net profit from FY08 to FY10 was 61.4%. The strong growth in personal loan financing extended to government servants as opposed to its past focus on property development financing made the difference.

MBSB’s loan portfolio comprises a mix of personal, mortgage and corporate loans representing 40%, 34% and 25% as at 2QFY11. Loans grew strongly at a CAGR of 16.3% over
FY08 to FY10. Key driver was personal loan financing for government servants. Growth of mortgage loans is expected to be flat for FY11 as the group is in the process of
restructuring its mortgage loan portfolio.

Loan to deposit (LD) ratio as at 2QFY11 stood at 109%. It improved compared with 254.35% in 1999. Since the Ministry of Finance’s approval in 2004, fixed deposits of government and statutory bodies are allowed be placed with MBSB. Year-to-date, customer deposits have grown 150%. MBSB has been securitising receivables (selling mortgage loans to Cagamas Bhd) to raise funds. It is in the progress of issuing sukuk securities to support the growth of its loan book.

Both impaired loan ratios (gross and net) gradually declined. For 2QFY11, gross impaired and net impaired loan ratio stood at 12.2% and 26.3% against FY08 of 48.3% and 23.2%.

With stronger risk management in place and a focus on growing personal loan financing which has a low impairment risk, we expect asset quality to improve further and are projecting a gross impaired loan ratio of 25% for FY11.

Cost-to-income came off a high of 46.3% in 2008 to 18.3% in 2QFY11, lower than the average CTI of 47% in 2QCY11 for banking stocks under our coverage. The improvement was mainly due to stronger growth in Islamic banking income over the past two years.

We believe CTI will not rise substantially as overheads, in particular personnel cost, will be kept low. Expansion of its retail and corporate loans will be done through strategic tie-ups with agents instead of recruitment of additional personnel with its limited branches. We project a CTI of 20% and 22% for FY11 and FY12.

We initiate coverage with a “buy” at a target price of RM1.84. Valuation is undemanding with price-earnings ratio of 8 times (one standard deviation below five-year historical
average PER) on a forecast earnings per share of 23 sen for FY12. Our fair value for the stock at RM1.84 equates to 1.8 times our forecast book value for FY12. — MIDF Research,
Sept 19

SocGen's Oudea Says `Big Merger' Wouldn't Solve Crisis

2011-09-18T22:35:00.001+08:00

Sime to benefit from Caterpillar-Bucyrus deal - Agree

2011-09-17T10:51:00.002+08:00

AGREE!

The gain will come from better sales of equipment and parts, lower production cost and improved service

Kuala Lumpur: Sime Darby Bhd, the exclusive distributor for Caterpillar Inc is expected to benefit from Caterpillar's US$8.8 billion (RM27.28 billion) purchase of Bucyrus International Inc.

The gain will come from better sales of equipment and parts, lower production cost and improved service.

Sime Darby executive vice president industrial division Scott William Cameron said there will be a good spillover effect on Sime Darby, especially for its Hasting Deerings operations in Australia.

"With the acquisition of Bucyrus, it will give a positive impact towards Sime Darby especially in Australia and China.

The benefits include higher sales of new equipment and aftermarket parts and support, lower product cost and greater reliability, driven by the use of Caterpillar engines and components in Bucyrus products," Cameron said in an e-mail interview.

He said Sime will benefit from an improved service and lower owning and operating costs, propelled by Caterpillar's global manufacturing, supply chain and purchasing capabilities.

US-based Caterpillar, which is one of the world's leading makers of heavy equipment, completed its Bucyrus purchase last July. Bucyrus produces huge machines and equipment for the mining sector.

New York Stock Exchange-listed Caterpillar said with the deal, it has created a mining equipment group with unmatched product range.

Caterpillar is one of the world's leading manufacturers of construction and mining equipment, diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives.

Sime Darby, which is one of Malaysia's largest conglomerates, has six business divisions, namely plantations, property, energy and utilities, industrial, healthcare and automotive.

Sime Darby Industrial Division is the world's fifth largest Caterpillar dealer. It has been distributing Caterpillar products for the past 80 years.

Sime's industrial division registered its highest ever operating profit of RM1.1 billion for the financial year ended June 2011.

The 41 per cent increase over the previous financial year was due to strong sales in Australia/Pacific Islands, China and Malaysia, as well as better price realisations across all regions.

Plantations: Stock level eases in August

2011-09-14T20:51:00.003+08:00

Plantation sector
Maintain neutral: Lower crude palm oil (CPO) inventory in August this year, the large price discount between CPO and soyoil/rapeseed oil of US$280 (RM854) to US$300 per tonne, and relatively softer soyabean prospects in the US and parts of South America will help support CPO price above RM3,000 per tonne in the short term. We expect short-term CPO price volatility to continue and maintain “neutral” on the sector. Our top “buys” are Sarawak Oil Palms Bhd (SOP) and TSH Resources Bhd which provide good long-term value and growth propositions with strong 16% and 20% three-year forward production compound annual growth rate respectively. SOP also trades at a single-digit price-earnings ratio of eight times 2012 PER.

Malaysia’s CPO production fell to 1.667 million tonnes (-4.8% month-on-month [m-o-m]) in August as work hours were shorter during the fasting month and workers went on holiday ahead of Hari Raya Aidilfitri. Lower m-o-m production was partially mitigated by weaker m-o-m exports of 1.689 million tonnes (-2.7% m-o-m, +39.4% year-on-year) and weaker m-o-m domestic consumption of 0.164 million tonnes (-10.1% m-o-m, -8.7% y-o-y). This resulted in lower August month-end stock of 1.885 million tonnes (-5.6% m-o-m, +10.2% y-o-y); in line with our expectations. Weaker m-o-m exports were mainly due to lower demand from China (0.39 million tonnes; -15% m-o-m, +204% y-o-y), and other non-core export markets (collectively 0.62 million tonnes; -13% m-o-m, +4% y-o-y). Exports to the European Union, the US, India and Pakistan registered higher m-o-m and y-o-y figures.

Early data point to the likelihood of an increase in inventory for September, with weaker m-o-m export estimates for Sept 1 to 10 of 389,069 tonnes (-36% m-o-m) and 337,038 tonnes (-36% m-o-m) by independent cargo surveyors Societe Generale de Surveillance and Intertek. Exports were likely impacted by the week-long Hari Raya and Independence Day celebrations in Malaysia. While we anticipate exports to pick up for Sept 11 to 20, the overall export figure for the month of September is likely to be weaker m-o-m. Demand may however receive a boost from CPO’s widening price discount to soyoil and rapeseed oil.

We maintain our RM3,200 per tonne average CPO price forecast for 2011 (year-to-date: RM3,390 per tonne) and RM3,000 per tonne for 2012 as we had expected prices to be lower in 2H11 on strong production recovery. The recent steep share price correction (-10% since August this year) presents investors with a good entry level into large-cap IOI Corp Bhd (“buy”). We also advocate “buy” on mid-caps, TSH and SOP, for their long-term value and growth propositions. — Maybank IB Research

Bought Mahsing :p

2011-09-14T19:56:00.003+08:00

Add another share of Mahsing.....at RM2.00. Damn closed lower today. Should've been more patience. Nvm, its still a good company with strong earning visibility.

Purves Says Europe Bank Recapitalization Is `Inevitable'

2011-09-12T22:36:00.001+08:00

Sarawak Oil Palms - Getting better and better

2011-09-12T20:53:00.007+08:00

Sarawak Oil Palms posted an amazing Q2 result, balance sheet is getting better and better, not to mention strong cash flow. My only issue with SOP is their low dividend payout with no fix rate. If they decide to increase the payout, SOP will trade at UMCCA or other players valuation in no time. Hoping i could buy back below RM3.50. :p

Overall, im very bullish with palm oil industry and SOP.

p/s- Malaysia’s Aug'11 palm stocks down 5.6pc

Malaysia’s Aug palm stocks down 5.6pc

Malaysia’s August palm oil stocks fell 5.6 per cent to 1,884,560 tonnes from a revised 1,996,396 tonnes in July, industry regulator Malaysian Palm Oil Board said today.August’s fall exceeded market expectations that stocks in the world’s No.2 palm oil producer likely dropped 2.3 per cent to 1.95 million tonnes. - Reuters

Tradewinds Plantation -

2011-09-11T15:48:00.009+08:00

Tradewinds Plantation is a plantation player and main income contributor to TWS (M) Bhd, a major commodity producer in Malaysia. Palm oil business is still their biggest driver, but we should a better and stable income through their diversification into rubber plantation business, upstream in 2008 and downstream through acquisition of Mardec Bhd, in coming years. I think its a good venture as both of commodity, rubber and CPO has a very promising demand. Been to their rubber plantation area at Padang Terap last week, looks very promising and well managed. Looking at their past track record, the income and margin was very volatile which is quite normal for commodity business, but with their recent busines countermeasure,, we should a slight lesser setback during depress time.

However, i think their balance is sheet is so-so and not as attractive as SOP, but the growing land bank and sizable reserve land and good mixture of mature and immature plant, kinda safe the company and im expecting an exciting income growth in near future. Land under rubber development business can be considered small but modest at current size, but the management already highlighted that they will grow more further, along with company progress .

I think below RM3.00 would be a good entry already, but looking at current economic condition, i will only consider buying into it at price below RM2.50.

Current Price = RM3.58

NTA = RM 3.09

PE = 8.3

PADINI - An impressive growth stock

2011-09-04T10:03:00.005+08:00

Padini just released another impressive annual earning. Well, if PADINI is not a growth stock, i don't know which stock is. The best part about Padini is their net margin is growing steadily over the year, from 7%+ in 2005 to over 13%+. Its clearly shows that they have more pricing power now and the brand is more well accepted, not to mention the ability to pass/share the cost impact to the customers. If the trend continues, i think Padini net earning going to record another set of impressive growth rate! Only thing i dont like about PADINI is their growing inventory, however overall quality of balance sheet, keep my mouth shut.

Gallo Says Euro May Break Up Without `Unified Approach'

2011-08-20T10:21:00.001+08:00

Disposed IOI

2011-08-20T01:09:00.003+08:00

Disposed IOI @ RM4.56. sigh, bad timing, bad economic indicators, better keep cash ~50% and can enjoy raya more peacefully. :p

PORTFOLIO 1

PORTFOLIO 2

Bought IOI

2011-08-17T16:40:00.002+08:00

Disposed Padini@ RM0.98 and bought IOI @ RM4.67. Just for raya rally. amen.

YTL Power International Berhad - RM1.79

2011-08-09T21:35:00.003+08:00

So freaking cheap. I think most of investor concern whether they can maintain high dividend pay out, plus uncertainty of local IPP and YES business. But i think the sell off is overdone. They have other good asset that should be worth more than current price. Will start collecting at RM1.70.

Raise some cash..

2011-08-09T18:53:00.007+08:00

Took some profit from my CI Holding for 31% gain, just to raise my cash level ~<40% - -. Balance plan to keep due to good deal with Asahi. Hope i could collect again...cheaper.

Now, i can sleep well, if market going north, at least profit already in my hand. :)

Yeo Hiap Seng chalks up good growth

2011-08-08T18:50:00.000+08:00

KUALA LUMPUR: Yeo Hiap Seng (M) Bhd (YHS), the owner of the popular household brand Yeo’s and Cintan noodles, seems to be chalking up impressive earnings growth so far this year.

For the six months ended June 30, the food and beverage (F&B) manufacturer posted a net profit of RM11.76 million or 7.7 sen per share, compared with barely RM264,000 or 0.17 sen a year ago.

Revenue rose slightly to RM267.7 million from RM254.4 million in the previous corresponding period.

In fact, the profit achieved for 1HFY11 ended June 30 had exceeded earnings for the entire FY10 ended Dec 31 when it posted a net profit of RM3.8 million.
Nonetheless, the F&B maker’s earnings were dragged down by an impairment provision of RM10.4 million in 2Q.

The company attributed the improved earnings to higher sales, particularly in Indonesia after it relaunched the products in the republic.

Sales in Indonesia more than doubled recorded growth of 124% and exports to Singapore went up 26%.

Vincent Chui, general manager (marketing) of YHS, said the company is positive on its prospects for the current year and will continue to grow operating profit further through brand building, promotion efforts and cost management.

In addition to beverages and instant noodles, YHS also produces canned food and sauces.

YHS is committed to introduce healthy products in line with market demands, he added.

After peaking in 2006, YHS profits have been rather inconsistent. It reported annual net losses in 2007 and 2009 of RM13.6 million and RM11.1 million respectively. Its performance in 2008 and 2010 were also lacklustre with respective annual net profits of RM2.2 million and RM3.8 million.

In late 2009, YHS suffered a setback in Indonesia. The authorities there cancelled 15 of the 31 registration numbers for imports of food issued by Badan Pengawas Obat and Makanan to the company’s wholly owned unit PT YHS Indonesia. The registration numbers are for the marketing and sales of Yeo’s products in Indonesia.

In April 2010, YHS lost the distribution rights of Red Bull energy drinks to rival Fraser & Neave Holdings Bhd (F&N), which dented YHS earnings.

F&N is estimated to earn RM120 million from the distribution of Red Bull energy drink.

In FY09, Red Bull energy drink generated a revenue of RM108.3 million for YHS, with an operating profit of RM1.2 million.

However, in the latest results for 2QFY11 ended June 30, YHS said it had relaunched its products in Indonesia and sales grew by 254% during the quarter.

Malaysia is the biggest market contributing 81% revenue for YHS in FY10. The Singapore market generated about 17% and Indonesia barely 1.8%.

YHS is a market leader in Asian drinks such as chrysanthemum tea, winter melon tea, sugarcane and lychee.

“We are the market leader in the Asian drinks segment with a 37.9% share of the market,” Chui told The Edge Financial Daily.

YHS exports its products to various countries including the US, Canada, Australia, New Zealand, China, Hong Kong, Japan and Vietnam.

In addition to beverages, instant noodle is another core product in the portfolio under the brand, Cintan. YHS also produces canned food and sauces.

“Cintan has a 13.2% market share in Malaysia’s instant noodle soup-based segment. We are also the leading brand in curry chicken and kaya segments [under its canned food products],” said Chui.

Earnings aside, not many have noticed that YHS actually has a clean balance sheet with zero borrowing. As at June 30, the company’s cash balance amounted to RM30 million.

The substantial improvement in earnings appears to have gotten the attention of investors seeking exposure to F&B companies, besides the usual names like F&N and CI Holdings.

CI Holdings is selling its core subsidiary Permanis Sdn Bhd for RM820 million to Japan’s Asahi Group Holdings Ltd. For 3QFY11 ended March 31, Permanis contributed RM129.29 million in revenue to CI’s total revenue of RM140.1mil.

YHS share price was a steady climb from RM1.50 in April to a high of RM2.01 in May. The stock closed at RM1.79 last Friday, and it has gained 28% year-to-date.

To annualise the half-year profit, YHS earnings per share may possibly come in at 15.4 sen. Based on the stock price of RM1.79, YHS shares are trading at price-earnings ratio of 11.6 times.

Emerging Stocks Drop on U.S. Rating, Dragging Index Down 16% From May High

2011-08-08T18:38:00.003+08:00

Very interesting market today. All covered with blood bath.

Took profit SOP and disposed all at 4.27 and 4.20. Raising my cash to ~25%.

Sunway Real Estate Investment Trust, SUNREIT

2011-08-07T06:02:00.008+08:00

Sunway Real Estate Investment Trust, SUNREIT is Malaysia largest REIT player with RM4.305billion worth asset. They have a very good mixture of asset, but mostly from retail section with more than 50% of asset value comes from Sunway Pyramid. Good retail property always deliver a consistence return even during crisis due to steady growth of consumerism and being a tourist heaven place. Looking at their expertise and track record in property sector and asset enhancement area, i think its safe to put our and trust on them.

Current Price = RM 1.14

Net Asset Value = RM 0.974

Asset = RM4.305bn

Market Value = RM3.063bn

Gross DPS - RM 0.065~RM0.07

DY = 5.7% ~ 6.2%

The yield might look not attractive for time being, but looking at their asset under Right of First Refusal, over the years, more and more good asset will be injected into Sunreit, thus will increase their NAV and DPS.

Looking at uncertain market with US and EU soverign debt issue, i think Sunriet is worth a bet.

Anyway, I always love Sunway Pyramid, very good place to shop and hang out. Clean, vibrant, timeless and exciting. My no.2 favourite mall, Mid valley being no.1.

C.I. Hldgs searches for new core business

2011-08-07T05:33:00.006+08:00

Interesting article. Im also excited for CIH new venture. Well, some analyst speculates that they might venture into snack/biscuit manufacturer, property and automotive distributor company, well out of all option, i strongly support if they want to venture into snack/biscuit manufacturers.

Since the MD has vast experience in F&B industry, it would be definitely be an advantage to the group, rather than venturing into uncharted territory for the group like automotive company. The margin is good plus since they have good and established relationship with Pepsi Co through Permanis, im sure it wont be an issue for them to bring in other Pepsi Co products like Frito Lays' etc.

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C.I. Holdings Bhd is exploring investment opportunities across various sectors, including potential investments in fast moving consumer goods (FMCG), its area of expertise.

Managing Director Datuk Johari Abdul Ghani told Bernama today that the company is focused on acquiring a controlling stake for a new core business for C.I.

C.I. has been in search of investment opportunities since it inked a proposed deal to sell off its wholly-owned subsidiary, Permanis Sdn Bhd, which provided a strong core business since the company was established.

Permanis contributed over 90 per cent to C.I.’s profit and revenue. On July 21, C.I. signed an agreement with Japan's Asahi Group Holdings Ltd, to sell Permanis for RM820 million cash.

"Since our announcement, we have received many proposals and continue evaluating them. The proposals received so far have spanned a broad range of industries including FMCG.

"At this point of time, we are not ruling out anything and will consider any new proposal received.

"However, we are focused on proposals where we can take a controlling interest. Hence, we also feel that it is important to take our time and consider each proposal carefully," Johari said.

He said C.I. is still deliberating and has yet to determine the utilisation of proceeds from the disposal of Permanis.

"We are mindful that the allocation of the proceeds must take into consideration the interest of the company and its shareholders," he added.

He is the single largest shareholder of CI with a 30 per cent stake.

Syed Khalil Syed Ibrahim and his mother, Datin Mariam Prudence Yusuf, collectively hold a 20 per cent equity interest in the company.

Johari said the company is in the midst of preparing a circular to obtain approval from shareholders for the disposal of Permanis.

"We expect to be in a position to issue the circular to shareholders in October and the extraordinary general meeting will take place 21 days thereafter," he added.

He said the company will release the results of its financial performance for the fourth quarter and full year on Aug 25.

For the financial year ended June 30, 2010, the company turned in a net profit of RM38.17 million on revenue of RM516.4 million.

C.I.posted a net profit of RM11.37 million on revenue of RM140.42 million for the fourth quarter of its financial year 2010. -– Bernama

Portfolio Update July 2011

2011-07-30T07:09:00.006+08:00

Market is doing rather poorly since mid of July 2011, mostly due to debt ceiling concern in the US and worsening debt crisis in western Europe. However, i dont think market will collapse anytime soon.

July performance was good in the first three weeks, thanks to CI Holdings strong performance due to acquisition of its main subsidiary, Permanis by Asahi Group. However, due to poor market sentiment in the last week, some of my holding has taken the hit, led by Mahsing and YTLPower-WB.

Overall, both of portfolio still outperforming KLCI index.

Portfolio 1 = +21.9% (CIH, Mahsing, Padini)

Portfolio 2 = +43.6% (CIH, SOP, YTLP-WB)

Portfolio 1

Portfolio 2

KNM - RM17b oil project in Johor

2011-07-26T23:19:00.003+08:00

KNM says it is forming a consortium with Zecon and either a Korean or Chinese contractor to build a refinery and an oil storage terminal in Teluk Ramunia

Kuala Lumpur: KNM Group Bhd and Zecon Bhd has entered into an agreement with Gulf Asian Petroleum (GAP) Sdn Bhd to build a refinery and an oil storage terminal worth a combined RM17 billion in Teluk Ramunia, Johor.

The deal, bound to cause waves of interest in the oil and gas sector here, came on a day when two other oil and gas projects were announced.The remaining shares in the firm is owned by Abdul Aziz Hamad Al-Dulaimi, the president of Gulf Petroleum Ltd, whose shareholders include Qatar General Insurance and Reinsurance Company, Al-Mana Group, National Petroleum Group and the banking arm of Al-Sari Group.

GAP, which on April 30 2010 obtained an approval from the Malaysian Industrial Development Authority for the manufacturing licence for the integrated petrochemical plant, is 50 per cent owned by Mubadala Capital Sdn Bhd (MCSB).

MCSB's controlling shareholder, Datuk Zainal Abidin Ahmad, is also the chief executive and controlling stakeholder of Zecon.

Petroleum Bhd and Kencana Petroleum Bhd announced a RM11.5 billion merger plan that will become the country's largest oil and gas (O&G) service provider.
In a late statement to the stock exchange, KNM said it was forming a consortium with Zecon and either a Korean or Chinese contractor to undertake both the projects.

The projects comprise a RM15 billion oil refinery and a RM2 billion oil storage terminal.
The refinery will have a capacity of up to 200,000 barrels a day and 525,000 tonnes-a-year polypropylene processing plant, while the oil storage terminal will have a capacity of 2.328 million cubic metres.

The refinery and the storage facility are expected to be completed within 40 months and 18 months respectively, KNM said, adding the refinery project will be funded by 30 per cent equity, with the balance funded through project financing or sukuk issuance.
To help cover some of the storage facility cost, KNM will also try to arrange a sukuk issuance of up to RM1.5 billion to cover project financing during construction, KNM said.

Apart from the KNM-Zecon announcement, Daya Materials Bhd said it had secured two supply and delivery agreements worth RM27.42 million from Petronas Methanol (Labuan) Sdn Bhd.
Elsewhere, China's largest petroleum refiner Sinopec Petroleum Services Corp (Sinopec) is reportedly poised to take a major stake in a planned RM2.06 billion venture to help develop a Petronas marginal oil field located off Te-rengganu.

The announcement comes merely weeks after SapuraCrest

Padini prepares for next growth phase

2011-07-26T22:26:00.000+08:00

Written by Joanne Nayagam

Monday, 25 July 2011 12:10

KUALA LUMPUR: The hustle and bustle at a Vincci shoe store, even during non-sale periods, is a telltale sign that local fashion company Padini Holdings Bhd has come some distance from its genesis as a simple garment maker four decades ago. Its success in making its mark on the local fashion scene goes beyond the homegrown shoe label to its other house labels like Seed and Padini Authentics.

Despite an upward trend in its momentum, however, the company is setting aside the next two years to iron out the creases in its supply chain and logistics. “One thing that we are looking at seriously is making sure that the existing doors have good growth rather than [to] keep expanding,” said CY Cheong, creative director with Padini, in a recent interview with The Edge Financial Daily.

The step back from expansion to consolidation mode to perfect its core mechanics, he said, is necessary to ensure the group can grow faster and more efficiently.

Despite the medium-term goal of perfecting its internal systems, Padini has scored well on its financial report card.

The last four years have seen uninterrupted growth, despite the 2008/09 financial crisis. Between 2006 and 2010, revenue has risen from RM286.11 million in 2006 to RM520.88, an average of 16.2% a year. Net profit surged from RM27.69 million to RM60.97 million, representing a 21.8% compound annual growth rate over the past four years.

Its market capitalisation stood at RM717.12 million as at last Friday’s RM1.09 close, being 10.58 times earnings for its current year ended June 30, 2011, according to Bloomberg data.

Indeed, some 40 years after its founding, Padini holds the enviable record as the largest and most profitable of Malaysia’s listed homegrown fashion companies. The company began in 1971 as a garment manufacturing and wholesale concern. It entered the retail industry in 1975 with its flagship brand Padini, while its other successful brand, Vincci, was established in 1986. Its other brands include PDI, Miki and Rope.

With its eye set to win more business in the region, Cheong said the group knows its operations at home need to run even more efficiently.

“I would say we are in quite a transitional stage of moving from a domestic-based company to regional. And for that, the way of working must change. The supply chain issue must be something we can address, because when you talk about doing business overseas, late delivery can sometimes be a problem, and also logistic[s],” said Cheong, adding that the company is constantly looking at increasing same store sales though physical store expansion may not be as aggressive for now. Money will still be spent to keep existing stores vibrant, to continue attracting customers while getting its existing loyal customers to buy more.

Even though overseas revenues currently contribute less than 10% to Padini’s total revenue, the Dubai Vincci store in Diera City Centre, is on par with the group’s best stores in Malaysia, such as at Mid Valley Megamall, Sungei Wang Plaza and Fahrenheit 88 (formerly KL Plaza) in Kuala Lumpur, Cheong said.

Cheong: I would say we are in quite a transitional stage of moving from a domestic-based company to regional.

And there’s good promise for growth. Notably, Padini’s partners in the Middle East are local distributor heavyweights that also distribute more internationally-recognised labels. For instance, Al Shamsi Holdings Llc in UAE, Oman, Qatar and Bahrain handle Zara, Promod, Stradivarius and Women’s Secret, Cheong said. Padini also has other international partnerships in Morocco and Egypt.

He admits, though, that some of its partner operations abroad aren’t doing as well as the company would like due to certain gaps in its supply chain. The need to bridge these gaps was even more evident in the last six months, when the cost of manufacturing and raw materials escalated. As such, one of the group’s top priorities is to ensure smooth and efficient product movement, from manufacturing to delivery.

As a part of the internal restructuring process, Padini has invested in a management information system. In 2008, the company put out RM7.5 million to acquire the SAP enterprise resource planning system which allows it to streamline all its processes into fewer steps and coordinate sales based on past customer demands. “SAP has been implemented and we do see improvement and better control of our work process. We need probably another year for our users to get used to the system,” said Cheong.

As Padini develops its brand by creating a stronger foothold locally, the brand will continue to provide what has been the key to its growth thus far: adaptibility. “I think change is essential in order to keep the business moving,” said Cheong.

“It can be a big change, but you’ve got to feel that what your customers want and need is reflected in your product,” he said.

C.I. Holdings - I love it

2011-07-19T19:57:00.009+08:00

CIH Holdings is the owner of Permanis since 2004 and has restructured the company from a lousy to a growth company, and now contributes almost 90% to group earning.

Brand Under Permanis = PEPSI, DIET PEPSI, TROPICANA TWISTER, LIPTON TEA, 7UP, BLUE MINERAL WATER, MOUNTAIN DEW, REVIVE ISOTONIC, BOSS COFFEE, MIRINDA, FROST & CHILLS.

Since the management already mentioned that they would like to expand further into full fledged F&B business, im expecting that they would like to introduce Frito Lays and Quaker Oat products more aggressively into Malaysian market. PepsiCo is widely know as the largest snack company through Frito Lays company. Thus, by having snack/food manufacturer company under CIH, would definitely complement their current business and create a better value to shareholders.

However, my only concern is acquisation of Permanis by Asahi, hopefully the management will put stop of this.

p/s = Tropicana Twister - Lychee, dont really like it, Fruit Tree Lychee much better. :p

Icon City phase two launch by September

2011-07-19T19:46:00.004+08:00

KUALA LUMPUR: Mah Sing Group Bhd, the country's fifth largest developer by revenue, will launch by September the second phase of Icon City in Petaling Jaya, Selangor, featuring 570 units of serviced residences worth RM439 million.

Group managing director-cum- group chief executive Tan Sri Leong Hoy Kum is upbeat that the units, worth RM450,000 to RM1.2 million each or RM700 to RM800 per sq ft, will be snapped up during the launch.

The residences come with space sizes of 550 sq ft to 1,779 sq ft.

"The right product in the right location will always sell well. We are bullish on the outlook led by the Economic Transformation Programme," Leong told Business Times.

Leong's confidence is further boosted by the launch of the first phase of of Icon City last weekend, where sales of RM426.5 million were raked in.

Icon City is a RM3.2 billion integrated commercial development located on 7.93ha in SS8, Sungei Way, at the crossroads of the Lebuhraya Damansara-Puchong and the Federal Highway.

The project comprises 30 Jewels (seven- to eight-storey lifestyle shop-offices), Gourmet Street (one- to two-storey retail outlets), i-SoVo (Small office Versatile offices), serviced apartments, and mall, boutique hotel and office towers.

The phase one featured i-SoVo tower 3, where 80 per cent of the units, priced from RM599,000 were sold, as well as 30 Jewels and Gourmet Street.

Some 96 per cent of 30 Jewels, which is worth more than RM10 million each, and 37 per cent of Gourmet Street, comprising 20 retail outlets worth from RM4.5 million, were taken.

Due to overwhelming sales and demand for i-SoVo tower 3, Mah Sing is selling the second block under Phase Two, known as i-SoVo tower 3A, comprising 212 units.

CIMB Research, meanwhile, is maintaining its forecasts and target price of RM3.30 on Mah Sing, based on an unchanged target market price to earnings of 14.5 times, largely because of the impressive take-up for Icon City's phase one.

The RM426.5 million sales achieved by Mah Sing for the phase one make up around 18 per cent to 23 per cent of its full-year sales target of RM2 billion to RM2.5 billion, the research house said.

CIMB Research has Buy on YTL Power, TP RM2.80

2011-07-08T19:41:00.002+08:00

Friday, 08 July 2011 08:32

KUALA LUMPUR: CIMB Equities Research has a Buy call on YTL POWER INTERNATIONAL BHD with a sum-of-parts target price of RM2.80.

It said on Friday, July 8 that YTLP is selling a 43% stake in its unit YTL Jawa Power Holdings to Marubeni Corp for US$224 million or US$1.5 a MW, which is a fair price.

The deal could be positive as the partnership will improve YTLP’s chances of clinching other Indonesian power projects.

“However, we cut our FY11-13 core EPS by 2-11% for lower contributions from YTL Jawa and higher WiMax losses. Our SOP-based target is now 2% lower at RM2.80 as cash received from Marubeni does not offset the drop in contributions from YTL Jawa and higher borrowings.

“We also cut FY11-13 net DPS by 31% to reflect a more conservative payout policy,” it said.

CIMB Research said despite the downgrade in its numbers, YTLP remains a BUY as it believe its share price already reflects the WiMax uncertainties and lower dividends.

It said there could be a re-rating on the back of M&A and positive WiMax developments.

Padini - Buy back & Latest Portfolio

2011-07-07T14:45:00.002+08:00

Just collected Padini again @ RM1.05.

Sarawak Oil Palms 5126

2011-06-13T21:16:00.004+08:00

A nice growth and cyclical stock.

Regional debut for Mah Sing

2011-06-11T23:02:00.004+08:00

By ANGIE NG

angie@thestar.com.my

MAH Sing Group Bhd plans to make its debut as a regional property player this year and hopes to kick off its first offshore project in China by year-end.

Group managing director and group chief executive Tan Sri Leong Hoy Kum says the decision to hold back from venturing overseas earlier has been a blessing for the company as it has allowed Mah Sing to build up a stronger market presence locally.

“We had planned to venture into China two years ago but decided against it after some careful analysis. On hindsight, this has proven to be the right decision and the company is in a much more comfortable position to do so now,” he tells StarBizWeek.

To achieve its vision as a world-class regional developer within the next five years, Leong says Mah Sing has also set its sight on Singapore, Australia and Indonesia.

An artist’s impression of Icon City Petaling Jaya.

Locally, the company has grown to be one of the most diversified property developers in the country with a broad product offering in the Klang Valley, Penang and Johor Baru.

It has 34 projects (including five completed ones) in the residential, commercial and industrial segments.

To support its sales target of RM2bil to RM2.5bil this year, Mah Sing plans to roll out between RM2.5bil and RM3bil worth of launches. Of this, some 36% will comprise landed residences, 32% will be service residences and small office home office (SoHo), 29% from commercial properties and 3% from industrial projects.

Mah Sing's range of residential projects are marketed under the township Perdana brand, medium high to high-end Residence brand, and high-end Legenda brand.

For high-rise properties, Mah Sing recently launched the M series M Suites and M-City, and Plaza series Garden Plaza in Cyberjaya.

Leong says the current trend is to have mixed-use developments that have a mixture of residential suites, office suites and retail outlets within the same development, “as buyers are opting for products that improve their quality of life, and the convenience of everything being in close proximity to each other.”

Its latest project to be previewed, M-City@Jalan Ampang, attracted over 3,000 registrants for the designer SoHo suites, residential suites and sky villas.

The RM920mil project features 1,200 units of residential suites, office suites and retail outlets, on five acres of freehold land.

The first component to be previewed was the designer SoHo suites comprising single storey units with built up of 781 sq ft, 853 sq ft and 1,066 sq ft, as well as duplex units with built up of 910 sq ft and 1,330 sq ft.

These semi-furnished residences have average price of RM800 per sq ft (psf).

Trendsetter

Based on a garden city concept, M-City boasts of over four acres of greenery with hanging gardens, lagoon parks and other thematic parks for residents.

There will also be lifestyle retail outlets to cater to the needs of residents and tenants. The three-storey boutique retail shops has average lot size of 28' x 78'.

According to Leong, Mah Sing is also making an impact in the commercial property sector, and is one of the few listed developers to offer industrial products through its iParc range of projects.

Its latest iParc 3@Bukit Jelutong will comprise 25 units of 3 storey semi-detached bungalows with land size of 60'x132', built up from 5,339 sq ft and indicative price from RM3.3mil.

They will be designed for 4-in-1 centralised functions, where the factory, office, showroom and warehouse can operate from one central location.

Going forward, Mah Sing wants to build more street malls and retail malls.

An artist’s impression of M-City@JalanA mpang in Kuala Lumpur.

It has three street mall projects Southgate KL, StarParc Point Setapak and Star Avenue D'Sara, and two retail malls Icon City Petaling Jaya and Southbay City on Penang island.

Since its launch in 2008, Southgate KL with gross development value (GDV) of RM458mil, has been 98% sold. Of the five blocks of lifestyle retail and modern office suites, two were sold en-bloc and the balance on strata.

“At the moment, we have approximately 70% tenancy rate for the retail portion of Block A, and

the building is expected to open for business in August,” Leong says.

StarParc Point Setapak with GDV of RM129mil was launched in the first quarter of 2009. It is nearly 100% taken up.

Fronting the upcoming Parkson Mall and Jalan Genting Klang, the covered lifestyle square will feature al-fresco dining outlets and boutique shopping.

The three-storey shop office units with built-up from 4,880 to 6,904 sq ft are priced from RM2.2mil,

There are also the six-storey series comprising double-storey retail lots from 2,251 to 4,950 sq ft priced from RM1.3mil, while the four-storey offices of 1,264 to 2,715 sq ft are from RM295,000.

Lifestyle projects

Star Avenue D'Sara that fronts Jalan Sungai Buloh is one of the first new commercial projects along Jalan Sungai Buloh.

Comprising 92 units of three- storey shop office priced from RM2.2mil, the RM402mil project was launched in April.

Located close to the proposed MRT station in Taman Industri Sungai Buloh, the project is adjacent to the Rubber Research Institute land, has dual access from Jalan Sungai Buloh Shah Alam and Persiaran Cakerawala.

Leong: ‘We had planned to venture into China two years ago but decided against it.’

As for retail malls, Icon City Petaling Jaya, located on 20 acres at the crossroads of Lebuhraya Damansara-Puchong and the Federal Highway, is Mah Sing's flagship project in the commercial segment.

The project with GDV of RM3.2bil offers one of the best visibility in the Klang Valley.

Under the first phase of the project, 30 prime lots comprising seven and eight storey lifestyle shop offices with wide frontage, high ceilings, quality finishing, private lifts and main road frontage, were recently previewed, of which 19 units valued at RM192mil were sold.

The second phase of the project comprising two and three storey retail lots (with indicative price from RM3.6mil), small office versatile offices (from RM570,000) and residential units, are now open for registration.

Leong says the development will also have a hotel, corporate office towers and a retail mall.

Meanwhile, Southbay City on Penang island, located about five minutes from the upcoming second Penang bridge, will have commercial portion to the tune of RM2bil in GDV.

The first phase of the project will comprise the RM265mil Southbay Plaza that will be ready for a preview soon.

The residential suites with built-up of 1,030 to 1,645 sq ft will have indicative price of RM550 psf, while the lifestyle retail shops of 1,000 to 12,500 sq ft will be at RM500 psf.

Portfolio Update June 2011

2011-06-11T18:26:00.006+08:00

My portfolio still unchanged consist of Mahsing, SOP, CI Holdings and YTL Power-WB. Portfolio 1 is badly hurt due to poor performance of C.I. Holdings, mostly due to impact higher cost impact from removal of sugar subsidy and YTL Power-WB on cautious over their YES business, however portfolio 2 is performing well, thanks to Mamee's SCR and SOP. :)

Portfolio 1 - YTD gain is drop from 17% gain in february to ~4%

Portfolio 2 - YTD gain is 16.5%.

Both still outperforming KLCI gain this year.

New Job, New Apt...

2011-05-11T09:16:00.001+08:00

Fuh, new job, new apt, no internet, its been tough for me for last few weeks. Anyway, i have disposed Padini and swap to CIH @ 2.48.

Spritzer - Worth a look?

2011-04-21T16:48:00.009+08:00

Spritzer is rather a small cap company, but i think their growth story is worth to look at. Their latest sales recorded another growth, however earning is slightly lower due to higher capex for new plant near Shah Alam. No need to explain their product range as pretty well known. I do hope they will improve their market distribution since its hard to find their other product (except for the mineral water). Been to Taiping last week, seems like they are doing well at their hometown. At RM0.99 and PE10.7, i dont find the price is attractive, and the balance sheet also rather boring with higher gearing due to their expansion plan. I will consider if ~ RM0.80. Going forward, with new plant i think they can earn due to better economic scale, competitive price point and consistence growth story...slow but steady.

Squeezed CIH ..again

2011-04-21T16:31:00.006+08:00

Collected another C.I. Holding at RM2.93 and Padini @ RM1.04. Disposed Mamee @ 4.22. Privatisation going to take another 6 months..>18% is quite ok already for me.

Much goodness in store at F&N, potential M&A?

2011-04-14T23:42:00.001+08:00

Fraser & Neave Holdings Bhd
(April 13, RM15.98)
Maintain buy at RM15.96 with revised fair value RM17.40 (from RM17.20): We re-affirm our “buy” rating on Fraser & Neave (F&N) with a higher fair value of RM17.40 (against RM17.20 previously) based on a price-earnings ratio (PER) of 18 times CY11F earnings, after raising our FY11F to FY13F earnings forecasts by 4% to 6%.

We expect F&N to continue to benefit from robust consumption trends, in light of sustained sales volume growth seen thus far. We remain bullish about the group’s earnings prospects for its key soft drinks and dairy businesses, well underpinned by: (i) juice beverages product expansion and; (ii) capacity boost from upcoming RM350 million Pulau Indah dairy plant. The manufacturing hub is set to alleviate supply constraints for the local and export markets upon commencement by end-2011.

Admittedly, we expect some margin normalisation owing to rising raw input costs. As an indication, prices of whey, skim milk, and aluminium have surged 16% to 22% year-to-date. However, the strengthening ringgit and sustained volume expansion should partially mitigate the risk of volatile prices. Alternatively, the group should be able to pass on additional costs, if necessary by leveraging on its market share leadership and strong brand equity.

Core operations aside, we believe potential earnings accretive M&A is a wild card which would provide some excitement over the medium term. We reckon food-based businesses remain a key area of interest as F&N seeks to increase its exposure to other F&B segments, in addition to its 23% stake in Cocoaland Holdings.

Net cash as at Dec 31, 2010 was a strong RM846 million. In the absence of a suitable target, investors can look forward to special dividends. Free cash flow for FY11F is an estimated RM235 million (70 sen per share).

Further ahead, a structural earnings transformation is inevitable as property development in its Petaling Jaya mixed commercial project kicks off, upon relocation of operations to Pulau Indah.

The 12.7-acre (5.1ha) factory land has an estimated gross development value of over RM1 billion, with Phase I comprising commercial and residential properties to commence in 2012. We have yet to factor this into our earnings model.

Our valuation continues to peg the raised CY11F earnings to a PER of 18 times — close to the stock’s three-year historical average of 17 times. We continue to like the stock for its strong fundamentals in a sustainable food industry, as proven by its consistent earnings delivery track record. — AmResearch, April 13

YTL Corp 'ready' for acquisitions: MD

2011-04-14T22:55:00.003+08:00

YTL Corp's managing director Francis Yeoh said the group is “ready” for acquisitions and will focus on assets in the water, power, cement and transportation industries.

YTL Corp may bid for power-generation assets in Java, Indonesia, Yeoh told reporters in Kuala Lumpur today.

YTL Power International Bhd, YTL Land Bhd and YTL Cement Bhd will be able to pay “consistent, substantial” dividends starting this financial year, he also said.-- Bloomberg

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collected another ytlp-wb, now my ave ~RM1.19/share and disposed Maybank @ RM8.79 today for a peanut capital gain and good dividend. I believe in Maybank growth potential but at current level, better switch to defensive counter like ytlp.

Btw, fuh had a good dinner today..wow

Mamee surprises with privatisation offer

2011-04-13T17:27:00.001+08:00

Written by Insider Asia

Wednesday, 13 April 2011 10:41

Mamee-Double Decker (M) Bhd surprised the market by proposing a selective capital repayment exercise late last week.

Under the proposal, the company will distribute some RM179.8 million or RM4.39 per share to all minority shareholders, after which their shares will be cancelled. This would leave its current controlling shareholders, the Pang family, with a 100% stake in the company. Mamee will then be delisted from the local bourse.

For the privatisation exercise to be successful, the company requires 75% approval from minority shareholders at the extraordinary general meeting to be held soon. If all goes to plan, the entire exercise is targeted for completion by mid-2011.

Offer price at about 14 and 13 times estimated 2011/12 earnings
The offer price of RM4.39 was fixed at a 21.9% premium over Mamee’s last traded price of RM3.60. It is also at the high-end of the stock’s trading range of RM2.80 to RM4.48 in the past one year.

The offer prices Mamee shares at roughly 14.2 and 12.9 times our forecast earnings for 2011/12 respectively.

Prior to the privatisation announcement, the stock was trading at just about 11.7 to 10.6 times our estimated earnings for the two years. Given that this is well below the prevailing average valuations for the broader market — estimated at about 15 times earnings — it may have been a key motivation behind the privatisation move.

One of the benchmarks for consumer-related stocks, Nestle Malaysia Sdn Bhd, currently trades at about 28 times our forward earnings estimates. To be sure, Mamee’s operations and product range are substantially smaller by comparison. Nevertheless, its products are among the best-selling brand names in their respective market segments. For instance, Mister Potato is estimated to hold a 54% share of the domestic potato crisps market, while the Mamee brand of instant noodles has the second largest share of the market behind Maggi (by Nestle). The Mamee Monster Noodle Snack is one of the most enduring brands in the country.

Mamee also has a strong balance sheet. Net cash and short-term investments totalled RM73.1 million as at end-2010. This and the expected cash flow from operations would allow it to comfortably fund the planned expansion and maintain a 50% profit payout. Indeed, we forecast the company will stay in a net cash position, albeit marginally so, after paying for its planned capital expenditure this year. We estimate single-tier dividends totalling 15 sen per share, which translate into a net yield of 4.2% based on its pre-announcement price of RM3.60.

Mamee’s latest privatisation proposal appears to highlight the fact that the market does, at times, fail to fairly value stocks for their underlying fundamentals. This has been one of the factors prompting controlling shareholders to take their companies private in recent years.

Should shareholders accept the offer?
Shareholders should weigh the options of taking profit from the privatisation offer today or betting on the company’s prospects over the longer term.

It should be noted that while the offer represents a smart premium over the pre-announcement price, investors in the stock have fared very well. Its share price has risen steadily from about RM1.10 in April 2008 and may well continue to do so.

Mamee expects its operating environment to remain challenging in the current year, against the backdrop of rising raw material and packaging prices. The industry is also very competitive, which makes it difficult to unilaterally raise selling prices.

Nonetheless, the company is pushing ahead with its multi-pronged approach to drive top line growth. Some of the measures being undertaken include increasing production capacity, the introduction of new products and the strengthening of its distribution network. The company is also working on raising the number of overseas distributors to boost export sales. The targeted increase in volume sales would in turn enhance economies of scale and help offset rising costs.

Double-digit sales growth sustainable
The company’s sales grew 17.3% last year to RM482.5 million, bolstered in part by good demand for its new products. The Mamee Mie Goreng Indonesia and Mister Potato Rice Crisps have been well received by the market since their launches in April 2010, while the Rio Fiesta apple and orange fruit juices were introduced in 4Q10.

Mamee also expanded its distribution network to 73% coverage nationwide — up from 70% in the previous year — including the deployment of its fleet of vans to cater for smaller outlets in suburban areas. Currently, the company is working with about 150 distributors and wholesalers, which account for some 60% of domestic sales. The remaining 40% of sales are channelled directly to major supermarkets, hypermarkets and convenience stores.

The company is banking on the same formula to keep sales growing at a double-digit pace over the next few years. It targets RM1 billion in sales by 2014 with a nationwide distribution network coverage reaching 95%.

More new products in the pipeline
More new products are in the pipeline for the current year. This includes the Mamee Mie Goreng Indonesia Cup, a more convenient packaging variation from the existing packet, and quite possibly an expansion of its noodle range into the premium market segment. Currently, its biggest competitors are the Maggi and Mie Sedaap brands of instant noodles targeted at the mass market.

Capacity expansion to support future growth
The company is planning to spend RM100 million for a new production facility-warehouse in Melaka. Once completed, scheduled for 4Q11, the plant will boost total capacity by 46%. The additional production lines will support expected demand growth for the next few years.

For a start, Mamee estimates there is unmet demand of up to 20% for its instant noodle sales due to existing production constraints. The increased capacity will also boost the production of Mister Potato Rice Crisps for the export market.

Exports to drive growth over the longer term
Export is key area of growth for Mamee, given the limitations of our relatively small population. In this respect, the company has had fairly good success. Export sales, to over 80 countries, rose an outsized 21% last year and contributed to 32% of total sales.

At the moment, some of its biggest overseas markets are Australia, Singapore, Russia, The Netherlands and Maldives. Going forward, Mamee intends to focus on strengthening its distribution network in neighbouring countries such as Thailand and Indonesia. It is also planning increased advertising and promotional activities to support sales in these countries.

Rising costs will weigh on margins in near term
Rising prices for raw materials is the primary challenge. The costs of flour, potatoes and palm oil collectively account for well over one-third of the company’s operating costs (including depreciation) while packaging accounts for another one-third. Both the raw materials and packaging costs are expected to trend higher in the current year.

Raising selling prices is sticky given the intense competition. To maintain market share, Mamee typically moves in lockstep with other key players in the market. It has had to absorb part of the higher costs last year, which resulted in lower profit margins.

In addition, the company was affected by the weakening of the US dollar. It is a net seller of the foreign currency, derived primarily from export sales after netting out payments for imported raw materials, mainly for potatoes.

To partially hedge against future currency fluctuations, Mamee is taking up a US dollar denominated loan to part-finance its expansion plans. The greenback has weakened further in the year-to-date from last year’s average rate, but the trend may start to reverse later in the year if the US economy continues to gain traction.

Mamee has also invested in an oil palm plantation to hedge against crude palm oil price movements over the longer term. Some US$6 million (RM18 million) is allocated to plant up to 2,000ha of land in Central Kalimantan, Indonesia. The transfer of plants from the nursery is expected to commence in May.

If all goes well, the company will expand its planting by up to another 3,000ha and 5,000ha in the second and third stages, after the initial planted acreage matures and starts generating income.

Maybank targets more IPO deals

2011-04-13T16:58:00.002+08:00

Malayan Banking Bhd, Malaysia’s biggest lender by assets, is aiming to capture for more international initial stock sales and corporate fund-raising deals in Southeast Asia this year after spending S$1.79 billion (US$1.4 billion) to buy Singapore’s Kim Eng Holdings Ltd.

The purchase will give Maybank the platform to expand its investment banking operations outside Malaysia, Chief Executive Officer Abdul Wahid Omar said. Maybank’s overseas ventures in markets such as Singapore and Indonesia were limited to retail and commercial banking given that it was previously without permits for other services.
“There are a number of Malaysia IPOs that we have missed in the past simply because of the lack of distribution capability within the region,” Abdul Wahid said in an interview yesterday. “There are also customers in Singapore and Indonesia that we have been nurturing and when it came to the time when they want to be listed or to access the capital markets, we were not able to fulfill their requirements.”
The acquisition will also help Malayan Banking, or Maybank, close the gap in investment banking services with local rival CIMB Group Holdings Bhd, which bought stakes in Indonesia, Vietnam and Pakistan lenders in the past three years. In 2005, CIMB acquired the stock-broking business of Singapore’s G.K. Goh Holdings Ltd, giving it access to regional markets and extending its network beyond Malaysia’s 28 million population.

CIMB, which helped arrange Petronas Chemicals Group Bhd’s share sale last year, has a 32.8 per cent market share in underwriting Malaysian equity and rights offerings in 2010, according to data compiled by Bloomberg. Maybank had 10.3 per cent of the market.
Cutting Malaysian Reliance

Maybank relied on Malaysia for 82 percent of its pretax income in the year ended June, according to data compiled by Bloomberg. The Kuala Lumpur-based bank has said it’s aiming to cut the ratio to 60 per cent by 2015.
The shares have risen 2.7 per cent this year, outperforming the 0.2 per cent gain in the benchmark FTSE Bursa Malaysia KLCI Index CIMB lost 4.2 per cent.
The bank, controlled by Malaysian state-owned funds, returned to the acquisition trail this January with the offer to buy Kim Eng, a Singapore-based brokerage. The takeover would give Maybank stock-broking and investment banking operations in Singapore, Thailand, Indonesia, the Philippines and Vietnam.

The Kim Eng acquisition should be completed by the end of May, said Tengku Zafrul Tengku Abdul Aziz, chief executive officer of Maybank’s investment banking arm.

“We are definitely busier than last year,” Tengku Zafrul said in an interview yesterday. “There will be more cross- border transactions. This year we’ll have the opportunity to look at more deals with the regional platform.”

There are a few more share sales that may raise more than RM1 billion each coming to the Malaysian market this year, Tengku Zafrul said, without naming the companies. -- Bloomberg

Mah Sing confident of hitting RM2b goal

2011-04-13T15:34:00.003+08:00

KUALA LUMPUR: Mah Sing Group Bhd (8583), having chalked up sales of RM738 million in the first 15 weeks of this year, is optimistic of achieving its RM2 billion target by year-end as housing demand is still strong.

"We're confident of meeting our target as the confluence of strong fundamentals and our branding, location, concept and products will make 2011 another good year," said group managing director and chief executive Tan Sri Leong Hoy Kum.

Last year, the group sold RM1.5 billion worth of properties. Leong was speaking to reporters at Invest Malaysia 2011 held in Kuala Lumpur yesterday. Also present was executive director and chief financial officer Steven Ng Poh Seng.

He said the Economic Transformation Programme has proven to be catalytic and the Greater KL high impact project, like the construction of the Mass Rapid Transport (MRT) was set to generate excitement for the property market.
"Seven of our projects with gross development value of RM2.25 billion should benefit from the MRT development. This is 37 per cent of our unbilled sales of RM12 billion," he said.

With market capitalisation of more than RM2.2 billion, Mah Sing is the sixth largest property developer in the country.

A favourite among investors, Mah Sing since 2006, has been paying out at least 40 per cent of its profits as dividends.

Axiata Group Berhad 6888

2011-04-11T23:26:00.006+08:00

12th April 2011, Axiata share price = RM4.70.

I think at current level, Axiata is pretty safe and worth to bet on. Plus, most of the doubtful asset has been written off (the latest was in Q4 for India's division, IDEA). Strong growth, great turnaround and market expansion, plus the quality of leadership and management makes Axiata a good long term bet. Will keep this stock under my radar.

CIMB aims for top 3 spot in Asean by 2015

2011-04-09T09:55:00.002+08:00

CIMB's group chief executive sees the group doing more mergers and acquisitions to grow

CIMB Group Holdings Bhd (1023) aims to be among the top three banking groups in Asean by 2015, in terms of market and asset size, its chief says.

This underscores its ambition of becoming "a leading Asean franchise" by that year, group chief executive Datuk Seri Nazir Razak said at a media briefing on its brand streamlining exercise here yesterday.

The group is currently the fifth largest in the region.

"I do foresee over this period to 2015, we'll do more mergers and acquisitions (M&As) to grow," he said, adding, however, that M&As will not be a priority for CIMB this year unless a compelling opportunity arises.
He said the group may not necessarily be in all ten countries within the Asean grouping by 2015, but would eventually like to. It is currently missing only in two, the Philippines and Laos.

"We would certainly like that one day ... we will get there in time," he remarked.

Other broad targets CIMB has outlined for itself to achieve by 2015 include having a market capitalisation of over RM100 billion from some RM61 billion now, and the top three return-on-equity (ROE) among Asean banks.

Its ROE, a measure of profitability, stood at 16.3 per cent last year, while its asset size was about RM300 billion.

The group also aims for its consumer banking operations in the region to constitute more than 60 per cent of its revenue or pre-tax profit by then.

The CIMB group, Malaysia's second largest by asset size after Malayan Banking Bhd, has gone on an acquisition spree since 2005 in its bid to become a universal bank that operates within the region.

Its core markets today are Malaysia, Indonesia, Singapore and Thailand, but it also has a presence in Brunei, Cambodia, Myanmar and Vietnam.

To reflect its move to becoming a unified, leading Asean franchise, CIMB will spend RM8 million this year to convert the different colours of its brands to just a single one - red.

"Our change to red is an important step forward and will further our claim to be the region's most Asean company," Nazir said, adding that red was chosen because it was the dominant colour for the brand across the region.

The banking group, which started on the colour conversion exercise in early March this year, expects to fully complete it - including on its office buildings, signage and advertising material - by the end of June.

The 'blue monster' to go private

2011-04-09T07:29:00.003+08:00

The executive chairman and his sons propose to take Mamee-Double Decker private in a deal valued at RM179.81 million

KUALA LUMPUR: Datuk Pang Chin Hin and his sons are proposing to take Mamee-Double Decker (M) Bhd, the country's largest home-grown food & beverage manufacturing company, private in a deal valued at RM179.81 million.
Pang, the executive chairman of Mamee, and his sons Datuk Pang Tee Chew and Datuk Pang Tee Nam collectively own more than 45 per cent of the company.

The trio, and other shareholders who in total own 71.9 per cent of Mamee collectively are offering the remaining stakeholders in the company RM4.39 a share.

The offer is a premium over Mamee's book value of RM1.71 as at end December 31, and over its last traded price of RM3.60 a share.

The parties acting in concert, also said that they have no intention of maintaing the listing status of Mamee in the event the minority shareholders decide to sell out.

Among reasons cited for the privatisation move was because the group may need to incur higher bank borrowings due to high raw material prices (huh,the cash flow and balance sheet still strong, why it is an issue..nvm) and this may eventually affect the dividend payment capability of Mamee and also because Mamee shares have been thinly traded.

OSK Investment Bank Bhd and OCBC Advisers (Malaysia) Sdn Bhd are the principal adviser and the financial ddviser respectively for the proposed capital repayment exercise.

==========================

The company that im in love with and willing to hold for a very long time...now being privatized...sigh. =( .nonetheless i'm still happy for the fair premium offer.

Now, gotta do extra work to find other companies that can offer the same growth potential.

Sozo to explore halal market with MOF unit

2011-04-08T18:16:00.001+08:00

Written by Financial Daily

Friday, 08 April 2011 11:49

KUALA LUMPUR: Sozo Global Ltd, a China-based foodstuff manufacturer listed on Bursa Malaysia, may venture

into the halal market via cooperation with the Halal Industry Development Corp Sdn Bhd (HDC), a unit of Minister

of Finance Inc.

This would diversify the company’s markets, which include Japan, to the halal segment.Sozo announced yesterday

to Bursa that it had entered into a MoU with HDC to cooperate in “certain activities toward promoting and developing

the halal market for both parties, in particular to create investment opportunities, transfer knowledge and business

matching.”

Another simple, cute but informative video - Working Dollars (1957)

2011-04-03T16:07:00.001+08:00

How the Stock Market Works - Simple yet informative

2011-04-03T09:17:00.001+08:00

YTL Power has got the power

2011-04-01T23:52:00.000+08:00

Written by The Edge Financial Daily

Friday, 01 April 2011 12:08

YTL Power International Bhd
(March 31, RM2.30

Initiate coverage at RM2.29 with buy call and target price RM2.70: We initiate coverage on YTL Power International (YTLP) with a “buy” call and RM2.70 target price.

We like its portfolio of steady concession businesses. While we are positive on Yes, YTL Communications’ new 4G mobile Internet service, we expect it to incur start-up losses.

That said, we postulate YTLP cash flows are strong enough to maintain net dividend per share (DPS) at 13.1 sen or a 5.7% net dividend yield. More M&A may beckon.

YTLP has interests in power generation in three countries (YTL Power Generation in Malaysia, Power Seraya in Singapore and 35%-owned Jawa Power in Indonesia), power transmission in Australia (33.5%-owned Electranet), water and sewerage services in the UK (Wessex Water), telecommunications in Malaysia (60%-owned YTL Communications) and a nascent oil shale joint venture in Jordan (30%-owned).

Its power generation assets are multi-fuels (oil, gas and coal) and it operates under different power purchasing agreement (PPA) models (take or pay, liberalised market, and capacity and energy payment), where the skill sets are rare in any independent power producer (IPP) company. Wessex Water is the best water and sewerage company in the UK. YTL Communications’ YES garnered 100,000 subscribers in just 105 days.

We estimate FY11 group core net profit to be 10% lower year-on-year on YTL Communications’ start-up losses. Ex-YTL Communications, we estimate 7% compound annual rowth rate over the next three years on steady earnings growth at Power Seraya and Wessex Water.

We believe the 50% lower quarter-on-quarter net DPS in 2QFY11 was due to RM1 billion in debt repaid. Based on our cash flow projections, YTLP can maintain FY10 net DPS of 13.1 sen in current FY11 and the next few years.

We initiate coverage with a “buy” call and RM2.70 target price (TP). Our sum-of-parts (SOP) TP is largely discounted cash flow-based. Re-rating catalysts are:

(i) resumption of quarterly 3.75 sen net DPS;
(ii) lower than expected losses at YTL Communications; and
(iii) M&A — recall that YTLP was one of two last bidders for

the 300MW to 450MW Bibiyana gas IPP in Bangladesh in October 2010. YTLP is likely not done with M&A just yet. —Maybank IB Research, March 31

1 Year Performance Review

2011-04-01T12:29:00.003+08:00

Nothing much to update, but luckily managed to outperform the market (66.2% vs 17.4% KLCI) for last Apr'10~Mar'11 financial year. Thanks to Scomi marine, Mahsing, IOI, Hunza and Bonia. :p

C.I. Holdings Berhad - A Dividend Play

2011-03-26T11:20:00.011+08:00

日本.....懐かしい

2011-03-25T23:47:00.001+08:00

平井賢...大好き!　日本。。。マジ懐かしい。戻りたい。。。

YTL Power International Berhad

2011-03-23T22:38:00.002+08:00

Been collecting YTLPower-WB since past few days. My average now down from RM1.33 to RM1.24.

Malaysia's Nonalcoholic Beverage Market

2011-03-20T15:11:00.006+08:00

Source: CIMB Research

It is exciting to know that Coca Cola company want to invest and expand their production in Malaysia. Well, it is a good sign that the local F&B industry has a bright future due to growing population, rising middle class income, a lot of untapped 'territory' looking at low beverage consumption per capita in comparison with regional market. So, theres a tremendous growth opportunity for local F&B players.

KO think that ..

Growth in Malaysia's nonalcoholic beverage market has been relatively slow at between 4 and 6 percent over the last five years, compared to double-digit growth in some other regional markets. He attributed this to a lack of aggressive competition and insufficient diversity in the product range."

I couldn't agree more. I'm not sure regional market but in Japan, there are a lot of product variates in the market. The leader of course KO, Suntory, Kirin and Sapporo..just to name a few.

I do hope Permanis will launch more new products in the market. Since they have good relationship with PepsiCo and Suntory, i think there a lot of new brand product opportunities that could be explore for Malaysian taste.

I really like the new Permanis management compare to many years ago as now they have more clearer guideline in which market they want to be in. The management already mentioned that CIH want to see contribution from non-soda market, like juices and healthy drink by more than 50%.

Looking at PepsiCo and Suntory product lines, i think it is possible to achieve that vision in next few years. Since production line and warehouse is expanding, i hope they will introduce more products from suntory like DAKARA (protien water, vitamin water etc) and C.C. Lemon. Being a health conscious, I really enjoys Dakara..and Boss of course when i was in Japan....Oh, and starbuck too. :p

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Coca-Cola Investing $302M In Malaysia

By Eileen Ng, Associated Press Writer
Manufacturing.Net - March 16, 2010

NILAI, Malaysia (AP) -- Coca-Cola said Tuesday it will build a new bottling plant in Malaysia and invest 1 billion ringgit ($302 million) over the next five years to boost growth in the Southeast Asian market.

The investment comes as the world's largest soft drink maker gets ready to end its franchise with a local bottler after sales remained stagnant over the years.

Coca-Cola Co. is expected to let its decades-long contract with a unit of Singapore's Fraser and Neave expire in September 2011. The contract, which covers mainly the bottling and distribution of Coca-Cola and Sprite brands, was worth 421 million ringgit ($127 million) a year.

Glenn Jordan, president of the company's Pacific Group, said in an interview with The Associated Press that a third of the 1 billion ringgit will be invested in an eco-friendly plant on a 30 acre (12 hectare) site in the southern state of Negeri Sembilan.

The rest will be plowed into sales and merchandising assets, product innovation and marketing to beef up the company's presence in Malaysia, where the annual per capita consumption of Coca-Cola is well below that of many countries in the region, he said.

The plant is expected to be operational by mid-2011, he said.

"This investment will enable us to support our core brands, Coca-Cola and Sprite, enhance our competitive edge and increase our geographic coverage," he said.

Jordan said Malaysian investors have 15 percent stake in the new bottling facility, with the Armed Forces Fund Board holding a 10 percent stake and private firm AAD Equity, led by former finance minister Daim Zainuddin, 5 percent.

The investment will directly create 600 to 800 new jobs at the bottling plant, and is expected to create between 6,000 and 8,000 jobs with local suppliers, he said.

Jordan said Coca-Cola's move to end its franchise with Fraser and Neave was an "amicable separation" as both companies have different growth strategies.

He said growth in Malaysia's nonalcoholic beverage market has been relatively slow at between 4 and 6 percent over the last five years, compared to double-digit growth in some other regional markets. He attributed this to a lack of aggressive competition and insufficient diversity in the product range.

"We are here to revolutionize the way we sell our products. We see a lot of opportunities here," Jordan said. He declined to give growth targets but said the company aims to achieve "healthy growth" and be more competitive in Malaysia.

At the groundbreaking ceremony of the plant earlier, Prime Minister Najib Razak welcomed Coca-Cola's long-term commitment to Malaysia.

"I take it as a strong signal that the world's most recognized brand is expanding in this important market and enhancing its contribution to the Malaysian market," he said.

Secret Millionaires Club Episode 5: PCs and Understanding

2011-03-18T23:47:00.001+08:00

Been following WB animation, i love all the episode especially "Why Pay More: Happy Cola vs Value Cola" heh.

Keep thing simple. Dont get involve with business we dont understand. :)

Update

2011-03-18T15:51:00.002+08:00

Plenty of room for growth at SOP

2011-03-17T21:52:00.002+08:00

Sarawak Oil Palm Bhd
(March 16, RM3.34)

Upgrade to buy at RM3.30 with target price RM4.07: We met Sarawak Oil Palm’s (SOP) management recently, who said SOP is committed to improve production by adopting operating efficiency standards, including making continuous estate inspections and ensuring that fertiliser is evenly applied.

Large immature areas will sustain SOP’s future growth. Currently, SOP has 26,548ha of immature areas which account for almost 45% of total planted areas. SOP is expected to register double digit fresh fruit bunch (FFB) production growth as 3,700ha which was planted in 2007 will start to bear fruit in FY11. We believe that SOP’s growth (in terms of FFB production) will accelerate in the future as the young trees and immature areas gradually reach maturity.

SOP will progressively develop its 12,000ha of unplanted areas. The management does not have any new planting policy, but it is expecting to plant 5,000ha to 6,000ha annually. Therefore, the landbank will be fully exhausted by 2013.

Management is continuously looking for new land, since more than 1.5 million hectares of land is available for palm oil cultivation in Sarawak. In addition, the government has approved more than 720,000ha of Native Customary Rights (NCR) land for plantation projects.

Total capital expenditure is estimated at RM560 million in FY11. SOP is expected to build two mills and a refinery which are targeted to be in operation by FY12 and FY13.

We are upgrading our recommendation for SOP to “buy” (from “neutral”) as the recent share price retracement has triggered our “buy” threshold. SOP’s steady earnings growth will be supported by: (i) large immature and young trees which account for more than 75% of total planted areas; (ii) improving FFB yield; and (iii) higher production as more trees gradually reach maturity.

We maintain our target price at RM4.07, derived at 11.3 times 2011 earnings per share, which is one standard deviation above its five-year historical price-earnings ratio (PER) of 8.9 times. SOP is currently trading at 8.9 times forward PER, which is a 23% discount to the weighted average market PER of 11.5 times. — MIDF Research, March 16

Changing risks profile for YTL Power

2011-03-16T19:46:00.003+08:00

Recent investment moves by YTL Power International (RM2.27) appear to underscore the company’s gradual diversification from the power generation and water utility business.

The company launched its high-speed WiMAX broadband services nationwide in November 2010 with some fanfare. This was followed by a joint-venture announcement for an oil shale-cum-power generation project in Jordan, in which it will take a 30% stake.

Whilst the latest ventures may yet offer exciting growth prospects over the longer-term, they also alter the company’s risk profile. Specifically, YTL Power was widely viewed as a defensive investment. This may no longer be the case.
Although the company’s oil trading arm — housed under Singapore-based Power Seraya — has contributed to some earnings gyrations over the past few quarters, earnings from its power generating and water utility businesses were, by and large, fairly predictable.

Steady cash flow from these investments, in turn, support a relatively generous dividend policy, giving investors higher-than-market average yields. But the high upfront investments required for the new ventures may dent the company’s dividend payout going forward.
YTL Power announced a lower second interim dividend of 1.875 sen per share in conjunction with its 2QFY11 earnings results, half of the 3.75 sen per share paid in the previous corresponding quarter.

YTL Power's mobile broadband service under Yes are expected to be loss-making for a number of years.

Despite the cutback, we still assume the company to maintain its total dividends of 13.125 sen per share for the full-year — on the basis of its strong balance sheet. YTL Power has gross cash totalling almost RM8.1 billion at end-December 2010, although net debt stands at about RM13.6 billion. Nevertheless, we do not discount the possibility of reduced dividends, as the new ventures will be a drain on resources, at least in the initial stages.

Perhaps more significantly, they also inject a higher degree to risks and volatility to the company’s earnings profile. With sketchy details on the new ventures unveiled to the investing community, thus far, earnings visibility has become more opaque.

Yes will be loss-making for several years

For starters, it is a given that the mobile broadband services — under the Yes brand name — will be loss-making for a number of years. Losses in 1QFY11 totalled RM7.9 million, rising to RM19.8 million in 2QFY11 following its nationwide launch in November.

We expect losses for the broadband arm to trim YTL Power’s overall earnings for the current financial year. Net profit is estimated at RM1.13 billion, down from RM1.21 billion in FY10. Based on our FY11 earnings forecast, YTL Power shares are currently trading at fully diluted P/E of roughly 15.1 times, which is more or less in line with the broader market’s average valuations.

Continued losses from its broadband unit will also cap earnings growth, at least for the next two to three years. Thus, upside gains for the stock may be limited for some time, although its dividends — net yield estimated at 5.8% — should still appeal to yield-seeking investors.

Intense competition in mobile broadband

YTL has reportedly spent some RM1.5 billion in rolling out its broadband services to-date, out of the estimated RM2.5 billion planned for the network coverage to reach 85% of the population.

Yes offers a novel “pay as you use” tariff structure, subject to a minimum RM30 per month for both voice and data, which favours customers with low usage. Based on the average mobile broadband user’s data consumption of between 1.5-3GB, its rates are fairly comparable to those currently offered by the cellular operators.

Nevertheless we are somewhat ambivalent on the company’s subscriber acquisition success in the intensely competitive mobile broadband market, currently dominated by Celcom, Maxis and DiGi — despite initial, positive anecdotal review on its services.

The cellular operators have the advantage in being able to bundle mobile broadband packages with the voice services of existing customers. Maxis, for instance, offers its subscribers promotional rates for add-on broadband services. Although Yes also offers voice services, the lack of WiMAX-enabled handsets is a major handicap. At the moment, the company has available only one Samsung handset model for subscribers.

As part of its strategy, YTL is planning to offer free broadband services to more than 400,000 students in 20 public universities and select private institutions in the country by end-2011. Earlier this year, the company successfully activated its network in the main campus of University Sains Malaysia in Penang. We expect the company will leverage on this customer base to upsell its services in the future.

Still substantial capex to be spent

Looking further ahead, we believe YTL’s competitiveness will improve when all the operators migrate to the next generation platform, called the LTE.
Supported by the expected robust ecosystem, Yes should better appeal to potential customers, particularly with its plans for quad play — to offer ubiquitous broadband, video and voice services. (Spectrum for rollout of 4G LTE services will be available for use in 2013).

The company inked a license and service agreement with US-based Sezmi Corporation to deploy hybrid TV — comprising of traditional, live over-the-air broadcast as well as over-the-top on-demand online content — in Malaysia and Asia Pacific late-last year. It plans to launch the service in the domestic market by end-2011, at a suggested investment cost of between RM1 billion to RM2 billion.

Success remains to be seen

For the moment though, it is far too soon to tell how YTL will fare in its broadband venture. Similarly, the oil shale project in Jordan is expected to be a long-term investment.

The project is led by Eestia Energia, the national energy company of Estonia, through its 65% stake in the joint-venture. EE was awarded an oil shale concession by the Jordanian government in May 2010. Construction of the oil plant, with output of some 38,000 barrels per day, will commence after the environmental studies are completed.

The venture company will also construct and operate a 900MW oil shale-fired power plant. The energy generated will be sold to the national utility company, Nepco under a long-term power purchase agreement. The oil and power plants — estimated to cost some US$5 billion (RM15.3 billion) — are likely to commence operation post-2015.

A quick recap

YTL Power owns and operates the country’s first independent power generating plants, which were commissioned back in 1994. In 2002, the company extended its reach beyond local shores by acquiring Wessex Water — a UK-based sewerage and water operator supplying 1.2 million customers.

Two years later, it bought a 35% stake in Jawa Power, an independent power producer with a 1,220 MW coal-fired plant in East Java, Indonesia. And in 2009, YTL Power acquired Power Seraya, a Singapore-based power generator and wholesale-retail utility company.

Bull Bear & Bursa with RY

Bought Axiata

Disposed KFC

F&N Beverages Corporate Video

Winning formula in diversified food products - QL

By THOMAS HUONGhuong@thestar.com.my

2011 review and Happy New Year 2012

'Compelling regional growth' for Maybank

QSR, KFC get takeover offers

KFC Holdings

Bought Myeg

The Band Perry - If I Die Young

Gallo Says Undersubscribed German Auction Is `Ominous'

Part 1 - Buffett Buying IBM [NBC 11-14-2011]

The Edge Billion Ringgit Club - Fraser & Neave Holdings Bhd

QSR’s Tom Yum Crunch spices up a busy 4Q

The Edge Billion Ringgit Club - Mah Sing Group Bhd

Axiata 6888

Haydi Öp (Keremcem)

NTPM hit by rising costs

Raising some cash

BNP, Societe Generale Say French Report They May Raise Capital Is False Q

Balance Sheet Cuts

Taylor Swift - Mean

BFood on expansion spree

Buffett Says Berkshire Made $4 Billion of Stock Investments During Quarter

Buying When ‘Cheap’

Cinta Muka Buku- Nice Song ;p

Sold SP Setia-WB

Affin Holdings Bhd

My third Luck.... now SP Setia

Blain Says Enlarged EFSF Still Vulnerable to Speculators

S P Setia posts strong numbers yet again

Market in Free fall mood

MBSB transformation yields stronger results

SocGen's Oudea Says `Big Merger' Wouldn't Solve Crisis

Sime to benefit from Caterpillar-Bucyrus deal - Agree

Plantations: Stock level eases in August

Bought Mahsing :p

Purves Says Europe Bank Recapitalization Is `Inevitable'

Sarawak Oil Palms - Getting better and better

Malaysia’s Aug palm stocks down 5.6pc

Tradewinds Plantation -

PADINI - An impressive growth stock

Gallo Says Euro May Break Up Without `Unified Approach'

Disposed IOI

Bought IOI

YTL Power International Berhad - RM1.79

Raise some cash..

Yeo Hiap Seng chalks up good growth

Emerging Stocks Drop on U.S. Rating, Dragging Index Down 16% From May High

Sunway Real Estate Investment Trust, SUNREIT

C.I. Hldgs searches for new core business

Portfolio Update July 2011

KNM - RM17b oil project in Johor

Padini prepares for next growth phase

C.I. Holdings - I love it

Icon City phase two launch by September

KUALA LUMPUR: Mah Sing Group Bhd, the country's fifth largest developer by revenue, will launch by September the second phase of Icon City in Petaling Jaya, Selangor, featuring 570 units of serviced residences worth RM439 million.

CIMB Research has Buy on YTL Power, TP RM2.80

Padini - Buy back & Latest Portfolio

Sarawak Oil Palms 5126

Regional debut for Mah Sing

angie@thestar.com.my

Portfolio Update June 2011

New Job, New Apt...

Spritzer - Worth a look?

Squeezed CIH ..again

Much goodness in store at F&N, potential M&A?

YTL Corp 'ready' for acquisitions: MD

Mamee surprises with privatisation offer

Maybank targets more IPO deals

Mah Sing confident of hitting RM2b goal

Axiata Group Berhad 6888

CIMB aims for top 3 spot in Asean by 2015

The 'blue monster' to go private

Sozo to explore halal market with MOF unit

Another simple, cute but informative video - Working Dollars (1957)

How the Stock Market Works - Simple yet informative

YTL Power has got the power

By THOMAS HUONG
huong@thestar.com.my