30 June 2012

IHH Healthcare IPO Update: IHH Healthcare Bhd IPO to offer 2.23 billion shares and set to be listed on 25 July under a dual listing on Bursa Malaysia and Singapore Stock Exchange

Khazanah Nasional Bhd’s IHH Healthcare Bhd is offering 2.23 billion shares under its dual listing on Bursa Malaysia and Singapore Exchange.

IHH is set to be listed on July 25 and will fix the prices for institutional and retail investors on July 12, according to its draft prospectus posted on the Securities Commission’s website

IHH’s initial public offering (IPO) will be Malaysia’s second largest this year after the planned US$3.1 billion (RM9.8 billion) listing of Felda Global Ventures Holdings Bhd and among the top three in Singapore.

Malaysia has become Asia’s top listing destination this year, bucking the IPO trend in other countries.

Singapore, for example, saw motor racing firm Formula One and Manchester United football club either postpone or cancel their multibillion dollar offering due to volatile markets.

IHH will be one of the largest listed private healthcare providers in the world based on market capitalisation upon listing, the draft prospectus noted.

The IPO entails a 1.8 billion public issue by IHH and an offer for sale of 434.65 million shares by major shareholder Khazanah.

Of the combined 2.23 billion shares, 1.39 billion are set aside for cornerstone investors and 498.01 million for local and foreign institutional investors including those approved by the Ministry of International Trade and Industry (Miti).

Under the 498.01 million portion, 360 million shares are meant for Miti investors, while the balance 138.01 million units are for global institutions.

A total of 208.51 million shares are allocated to retail investors and people who have contributed to the IHH group, including company staff and directors and business associates.

Rounding up the 2.23 billion shares, IHH and Khazanah are offering up to 140.64 million shares to retail investors in Singapore.

Khazanah owns 62.1 per cent of IHH.

Other shareholders are Japan's Mitsui & Co Ltd with a 26.6 per cent stake, Dubai-based Abraaj Capital (7.1 per cent) and Acibadem chief Mehmet Ali Aydinlar (4.2 per cent).

Blackrock Inc, Capital Group, Kuwait Investment Authority and Och-Ziff Capital Management Group are among cornerstone investors in IHH, according to the draft prospectus. Others include sovereign wealth fund Government of Singapore Investment Corp, Fullerton Fund Management, AIA Group and Hwang Investment Management.

The cornerstone investors among local funds include the Employees Provident Fund (EPF), Permodalan Nasional Bhd, Lembaga Tabung Haji, Tan Sri Chua Ma Yu's CMY Capital Markets Sdn Bhd, Eastspring Investments Bhd and CIMB-Principal Asset Management Bhd.

The institutional price will be determined by a book-building process that will start on July 4 and end on July 12.

The retail price will be determined after the institutional price is fixed.

IIH said its historical combined net asset (NA) per share before adjusting for the IPO as at March 31 2012 was RM11.54 billion, or RM1.86 per share.

The hospital company also noted that proceeds from the IPO will be partially used to pare down its debts. It did not disclose how much loans will be repaid but said that the move would save some RM120 million in interest payment.

For the year ended December 31 2011 and the three months ended 31 March 2012, IHH had combined revenues of RM3.33 billion and RM1.28 billion respectively.

Its assets include Turkish hospital group Acibadem AS, Singapore's Parkway Holdings, India's Apollo Hospitals Enterprise Ltd, Pantai Hospitals and International Medical University.

Source: www.btimes.com.my

28 June 2012

Felda Global Ventures (FGV) stock price rose to as high as RM 5.46 on first day trading

Felda Global Ventures Holdings Bhd. (FGV), the world’s third-biggest oil palm planter, jumped more than 16 percent in its Kuala Lumpur debut, after raising $3.3 billion in the biggest initial public offering since Facebook (FB) Inc.

That was the best first day of all initial public offerings above $500 million globally this year, according to data compiled by Bloomberg. The stock surged to as high as 5.46 ringgit ($1.71), before paring gains to close at 5.30 ringgit.

“Foreign investors haven’t been allocated sufficient shares,” said Alan Richardson, who helps oversee about $87 billion as a money manager at Samsung Asset Management Co. in Singapore. “An over-demand situation is likely.”

Demand from institutions exceeded supply by more than 40 times during the IPO, Felda Chief Executive Officer Sabri Ahmad said in an interview on June 20. The plantations group priced the stock below the top of its indicative range, unlike Facebook which has slumped since its May debut.

State-controlled Felda could have received more than 4.55 ringgit per share from institutions, though decided not to after allocating 90 percent of the available stock to Malaysian subscribers, Sabri said. “We wanted to put something on the table for them to enjoy,” he said.

With a market capitalization of 19.3 billion ringgit, Felda will qualify to join the 30-member FTSE Bursa Malaysia KLCI Index. The benchmark closed 0.5 percent lower today.

Funds that track the gauge would be obliged to buy the shares in the open market if they failed to get allocation during the initial sale.

Resilient Market

“People who didn’t get the shares want to,” said Abdul Jalil Abdul Rasheed, who helps manage $3 billion as chief executive officer of Aberdeen Islamic Asset Management Sdn. in Kuala Lumpur.

Malaysia has withstood a global stocks sell-off brought on by Europe’s debt crisis, which has seen at least $12.3 billion of first-time sales scrapped or delayed globally since the start of this year, according to data compiled by Bloomberg.

The KLCI index touched an intraday record this week, after foreign funds were net buyers of shares for an eighth straight month in May, according to the stock exchange’s website. Felda Global is ranked the equivalent of buy with an average price target of 5.53 ringgit by four brokerages surveyed by Bloomberg, including Public Investment Bank Bhd.

“The food business is quite resilient to recession,” said Sabri in Kuala Lumpur. “As long as China and India keep on buying oils and fats, the demand is there. The debt crisis shouldn’t have a big impact.”

Cornerstone Investors

State funds including Permodalan Nasional Bhd., Lembaga Tabung Haji and the Employees Provident Fund Board were among so-called cornerstone investors for its share sale.

“The strength of the Malaysian IPO market is that you have a lot of domestic liquidity, which ensures that real demand cannot fully be satisfied,” said Samsung Asset’s Richardson.

IHH Healthcare Bhd., Asia’s biggest hospital operator, has similarly signed up local pension funds among its 22 cornerstone investors, for more than 60 percent of its share sale in Kuala Lumpur next month. IHH plans to raise about 6.4 billion ringgit, two people familiar with the matter said June 15.

Felda, which also produces rubber and sugar, reported a 46 percent drop in profit to 192.2 million ringgit for the three months ended March 31. This was partly because of accounting changes after a business structure revamp, Chief Financial Officer Ahmad Tifli Mohd Talha said in a phone interview.

Relative Value

The company remains “quite positive” it can still achieve its full-year profit target this year, Sabri told reporters in Kuala Lumpur today, without providing an earnings forecast.

The Felda shares were priced at 14.2 times estimated full- year earnings, a person familiar with the matter said June 14. This compares with 14.7 times at local rival Sime Darby Bhd. (SIME), the world’s largest palm-oil company by acreage, and 9.9 times at Singapore’s Golden Agri-Resources Ltd., data compiled by Bloomberg show.

Facebook’s 28-year-old founder Mark Zuckerberg persuaded investors to pay about 107 times reported earnings, a higher price-to-earnings multiple than almost every company in the Standard & Poor’s 500 index.

Felda “won’t tank, it won’t be like Facebook,” Lye Thim Loong, who helps manage $500 million at Libra Invest Bhd. in Kuala Lumpur and subscribed for the Malaysian company’s shares, said before the debut. “It’s not as expensive.”

Felda, the largest shareholder of sugar refiner MSM Malaysia Holdings Bhd. (MSM), has 355,864 hectares (879,359 acres) of leased or managed palm and rubber plantations in the Southeast Asian nation.

It also has land in Indonesia, as well as overseas palm oil refining businesses, soybean and canola-crushing operations and a U.S. oleochemicals plant, the prospectus shows.

Global Ambition

“We want to be a global player,” Sabri said. The company intends to use part of its IPO’s proceeds to expand its palm oil upstream operations in Indonesia and venture into Africa. Cambodia and Myanmar are being targeted for rubber and sugar respectively, he said.

The group is part of the Federal Land Development Authority, a government agency formed in 1956 with World Bank funding to help steer the rural poor out of poverty by providing them with land to plant. Key to its creation was Abdul Razak Hussein, Malaysia’s second prime minister and father of current leader Najib Razak.

Najib, who must call elections by early next year, announced windfall one-off payments to plantation workers and their families, known as settlers, amounting to 1.69 billion ringgit on May 8. A trust will be set up to hold 20 percent of Felda shares for planters after the IPO so that they can reap dividends, he said.

“Political patronage will always be high as Felda has over 112,000 settlers who vote in many key rural constituencies,” Khor Yu Leng, an independent agribusiness analyst, said in an e- mail interview.

Source: www.bloomberg.com

Court of Appeal imposed jail term of 12 months and a fine of RM 1.3 million on Datuk Chin Chan Leong for market manipulation involving Fountain View shares, offence took place over a two-month period from November 2003 to January 2004 during which the price of Fountain View shares increased from RM1.99 to RM6.05, raising its market capitalisation from RM885mil to RM2.73bil

The Securities Commission (SC) has won another battle against market manipulators after the Court of Appeal decided in the regulator's favour to increase the punishment meted on former Fountain View Development Bhd director Datuk Chin Chan Leong.

“In a landmark decision, the Court of Appeal imposed a jail term of 12 months, and a fine of RM1.3mil on Datuk Chin Chan Leong for market manipulation involving Fountain View shares,” the SC said in a statement yesterday.

Chin, who pleaded guilty to shares manipulation two years ago, was initially given a one-day jail sentence and RM1.3mil fine for the offence.

“This is the third conviction for market manipulation which the SC has successfully prosecuted,” the regulator said. The other companies were Suremax Group Bhd and Actacorp Holdings Bhd.

The offence took place over a two-month period from November 2003 to January 2004 during which the price of Fountain View shares increased from RM1.99 to RM6.05, raising its market capitalisation from RM885mil to RM2.73bil.

Fountain View was listed on the Main Board of the stock exchange. The company was delisted on Sept 22, 2010 for failing to submit a regularisation plan to the SC or Bursa Malaysia within the prescribed timeframe.

Chin was charged in 2005 but had only pleaded guilty on Feb 5, 2010 to the offence of creating a misleading appearance of active trading in Fountain View shares by indirectly being concerned in transactions for the sale and purchase of those shares, which did not involve any change in beneficial ownership.

Chin was found to be trading with 20 central depository system accounts which he beneficially owned through the companies that he controlled.

The one-day jail sentence was affirmed by the High Court in September 2010 which led to an appeal by the Public Prosecutor .

The Court of Appeal held that the offence under section 84(1) of the Securities Industry Act 1983 was serious with adverse consequences on the stock market and the economy and that the earlier sentence did not reflect the gravity of the offence.

“In deciding to impose a 12-month jail term, the Court of Appeal took into account the fact that the offence committed was pre-planned and well thought out.

“The SC has been proactively pursuing this and other market misconduct cases (such as manipulation, market rigging and insider trading) because such activities severely undermine investor confidence and tarnishes the reputation of the Malaysian capital market,” the SC said, adding that it would continue to be vigilant and take whatever action necessary to protect investors and to maintain a fair and orderly capital market.

Over the years, there had been a number of account mismanagement and share manipulation court cases. Among them were Kenmark Industrial Co (M) Bhd, Granasia Corp Bhd, Kiara Emas Asia Industries Bhd, Idris Hydraulic (M) Bhd, Aokam Perdana Bhd and Ekran Bhd.

In the case of troubled furniture company Kenmark, its Taiwanese managing directors and key management personnel went missing in May 2010. In June 2010, one Datuk Ishak Ismail emerged as a 32% shareholder, but sold all his shares two weeks later. The SC alleged that he had committed insider trading.

In the case of Granasia Corp Bhd, in March 2010, the Kuala Lumpur Sessions Court convicted Chan Kok Suan, the former managing director of Granasia for submitting false statements to the SC, namely the revenue and profit after tax of the company for the year ended Dec 31, 2002.

The information was submitted in connection with Granasia's proposal to list on the main board of the stock exchange.

Chan was convicted under section 32B(4) of the Securities Commission Act and imposed a fine of RM500,000 in default, 10 months imprisonment, according to the SC. He was charged on Feb 9, 2006 and pleaded guilty on March 1, 2010.

According to reports, the prosecution had filed an appeal against the sentence to the High Court.

Source: www.thestar.com.my

KLCC Property Holdings Bhd (KLCCP)'s management to explore possibility of setting up a Real Estate Investment Trust (REIT) or equivalent to optimise shareholder value

KLCC Property Holdings Bhd (KLCCP) is exploring the setting up of a real estate investment trust (REIT) or equivalent to optimise shareholder value.

It said on Thursday it had authorised the management of KLCCP to explore a corporate structure including an appropriate REIT or equivalent.

"It is expected that any proposals arising from this exercise will be subject to the approvals of relevant authorities, the board of KLCCP, and shareholders," it said in a statement to Bursa Malaysia.

Shares of KLCC Property Holdings Bhd (KLCCP) rose to a high of RM4.32 on Thursday after it announced plans to look into the setting up of a real estate investment trust (REIT).

At 2.54pm, KLCCP was up 46 sen to RM4.32 with 1.99 million shares done. Its call warrants KLCCP-CA added 10.5 sen to 30.5 sen with 1.75 million unites done.

The FBM KLCI fell 5.26 points to 1,596.63. Turnover was 885.02 million shares valued at RM1.70bil. Losers beat gainers 413 to 193 while 313 counters were unchanged.

KLCCP announced earlier on Thursday that a REIT or equivalent would optimise shareholder value.

Its BOD authorised the management of KLCCP to explore a corporate structure including an appropriate REIT or equivalent.

"It is expected that any proposals arising from this exercise will be subject to the approvals of relevant authorities, the board of KLCCP, and shareholders," it said in a statement to Bursa Malaysia.

Source: www.thestar.com.my

27 June 2012

Top Glove to buy 95% stake in PT Agro Pramata Sejahtera for RM 22 million, which holds 60 year license to operate rubber forest plantation covering 30,000 ha on two islands east of the southern Sumatra city of Palembang (around 20,000ha in Kabupaten Belitung and about 10,000ha in Kabupaten Bangka), acquisition expected to be completed within 15 months time

Analysts have mixed views on Top Glove Corp Bhd's move to acquire greenfield rubber plantation in Indonesia.

On Monday, Top Glove announced that its wholly-owned sub-subsidiary, Best Advance Resources Ltd, would acquire 95% equity or 5,700 shares in PT Agro Pramata Sejahtera for RM22mil.

Agro Pratama holds a 60-year licence to operate a rubber forest plantation covering 30,000ha on two islands east of the southern Sumatra city of Palembang (around 20,000ha in Kabupaten Belitung and about 10,000ha in Kabupaten Bangka).

Top Glove said the proposed acquisition was expected to be completed within 15 months from the date of agreement or any later date as agreed by all parties.

Several research houses including Maybank Investment Bank Research and Affin Research view the acquisition positively.

“We are long-term positive on this latest development as it will reduce the volatility of its key input cost. Top Glove's operating environment remains conducive for now, amid declining latex prices and a strengthening US dollar,” Maybank Investment said.

Affin Research views the acquisition positively, as it is in line with Top Glove's aim of expanding upstream into the rubber plantation business.

“Previously, the company had focused on acquiring land in Cambodia, However, progress has been slow and there have been consistent delays in approvals. Consequently, we believe that management may abort its Cambodia plans, especially since it has been able to acquire land elsewhere.

“That said, the Indonesia land acquisition is a greenfield investment. Taking into account land acquisition (estimated at 15 months), planting and maturity requirements, we do not expect to see any earnings contribution within the next five to seven years,” Affin Research said.

CIMB Research has a contrarian view on this, saying Top Glove could be spending RM400mil, or RM50mil per annum over eight years, to clear land and fully cultivate the estate following its move to acquire Agro Pramata.

“We take a dim view of Top Glove's purchase of a 30,000ha greenfield rubber plantation in Indonesia's southern Sumatra, as the RM400mil that it may spend on developing it over the next eight years could be put to more efficient use to enhance manufacturing and brand equity,” CIMB Research said.

It added that hedging the variability of natural rubber prices, a financial instrument would be more prudent and less capital-intensive.

It said in the best-case scenario, the first planting could start by the second half of 2012, with first fruits by 2019 to 2020.

CIMB Research said the high capital expenditure was expected to be funded internally and the 30,000ha plantation could support a 12 billion-pieces-per-year glove-making facility.

“The acquisition is not a surprise as management has been talking about buying rubber plantation land for some time. Last quarter, it hinted that it may acquire land in Indonesia instead of Cambodia due to procedural difficulties there.

“We are negative on the acquisition as we believe that the capital allocated could be used to enhance Top Glove's manufacturing process and brand instead.

“Also, the rationale for diversifying upstream is to hedge the natural rubber price, which we believe is misguided. A less capital-intensive method would be to use the financial exchanges in Singapore and Japan,” CIMB Research said.

Source: www.thestar.com.my

DRB-Hicom's 32% owned Pos Malaysia on 80:20 joint venture with Bank Muamalat to roll out Islamic Pawn Broking (Pajak Gadai) service on its 700 plus outlets nationwide

Islamic pawn broking, otherwise known as Ar-Rahnu, is a concept not altogether familiar among the masses but that may change when Pos Malaysia Bhd rolls out the service at its 700 plus outlets nationwide.

After hinting two weeks ago that Ar-Rahnu was one of the businesses it would be launching “very soon”, the postal company on Monday took the wrapping off its new financial product.

At a briefing with analysts and the media on June 14, group chief executive officer Datuk Khalid Abdol Rahman had unveiled an aggressive five-year strategic plan that aimed to achieve double digit growth in revenue every year till 2017, significantly improve its current pre-tax margins of 12%, and explore new mergers and acquisitions opportunities.

A key thrust of the plan was to leverage on the group's extensive network of branches scattered across not only the state capitals and major towns, but also in small towns and rural areas.

At the same time, it wants to become a provider of one stop solutions for both physical and digital services.

The firm also stressed that it was trying to reduce its dependency on the core mail business, which made up 62% of its revenue in the 15 months ended March 31, to below 40% by end-2017.

The company reaped RM138.8mil in net profit on revenue of RM1.48bil during that period. It has changed its financial year end to March 31 from December 31 previously.

As it enters the second phase of its transformation, the group is looking to diversify its earnings base, whether through digital avenues, expanding its delivery channels and even providing supply chain management to third party companies.

For its Islamic pawn broking arm, Pos Malaysia will acquire a shelf company known as Pos Ar-Rahnu Sdn Bhd to be used as the operating entity, which is a 80:20 joint venture (JV) between itself and Bank Muamalat Malaysia Bhd.

The two are essentially sister companies courtesy of their common majority shareholder, the Tan Sri Syed Mokhtar Al-Bukhary-controlled DRB-Hicom Bhd, which has a 70% stake in Bank Muamalat and 32.2% in Pos Malaysia.

The JV will have an authorised share capital of RM20mil with the funding to be raised from financial institutions.

This may include Bank Muamalat, but shall be based on “the most favourable terms to the JV company,” Pos Malaysia said in a statement to the stock exchange.

It added that Pos Ar-Rahnu's principle activity would be the safekeeping of precious items, and it would, based on syariah principles, be able to lend money, negotiate loans; draw, accept, indorse and discount bills of exchange, promissory notes or other securities; act as auctioneer or dealers in gold, silver, precious stones, jewellery, coins and medals; and act as commission agents and general merchant.

“The collaboration would enhance the product offering at Pos Malaysia outlets, besides providing an alternative to distribute micro credit convenience to small time entrepreneurs who have difficulty to obtain financing from banks,” it said, adding that the company's existing network throughout the country was a crucial factor that would enable it to lower operating costs, spread the risk and generate higher returns.

Ar-Rahnu, where valuables such as gold or jewellery are offered as collateral for debt, is considered a source of short-term funds more commonly used by the lower income segment and small businesses who, by virtue of their backgrounds, are typically denied access to mainstream financiers.

Under this system, the creditor and borrower agree to a specific loan tenure, and if the latter fails to pay back his due after the stipulated time, the pawned asset is sold off to settle the debt, with any surplus returned to the owner.

In line with the religion's ban on interest, borrowers pay a safekeeping fee instead of a compounding interest, and this fee is based on the value of the asset rather than the loan itself.

It is for this reason that Ar-Rahnu is generally seen as the more cost-effective option for those with limited capital.

“We believe Pos Ar-Rahnu can be a sizeable business as it will leverage on Pos Malaysia's 700 outlets,” OSK Research said in a note to clients.

“This is based on the success of the existing Ar-Rahnu Pawn Broking Scheme currently provided via Agro Bank and Bank Rakyat, which have a much smaller network of 176 and 136 branches respectively nationwide.

“We think the Ar-Rahnu business will boost PosNiaga's earnings since there could be plenty of low-hanging fruits arising from the difficulties faced by small-time entrepreneurs in obtaining financing from banks in rural areas.”

Source: www.thestar.com.my

Puncak Niaga's 70% owned SYABAS suffers acute cash flow problem as a result from non-revision of water tariff rates starting from January 2009

The annual general meeting (AGM) of Puncak Niaga Holdings Bhd turned into a raucous affair as individuals claiming to be minority shareholders of the company carried placards urging the company to seek legal action to reclaim monies owned to it.

Speaking to the media after the three-hour long AGM, executive chairman Tan Sri Rozali Ismail said shareholders had asked Puncak Niaga to take legal action against its 70%-owned subsidiary, Syarikat Bekalan Air Selangor Sdn Bhd (Syabas), to claim an outstanding debt of RM1.09bil.

“All this while, we did not take any action as Syabas is majority owned by Puncak Niaga. But now we will be considering the options that had been suggested by the shareholders,” he said.

He said the matter would be brought up in Puncak Niaga's board meeting next week and would also be discussed with the group's lawyers.

“We respect the request from the minority shareholders who have been hoping to get their dividends, and this should be given consideration and we should take the next course of action,” he added.

Besides still owing an outstanding RM1.09bil to Puncak Niaga, Syabas also owes monies to two other water-treatment operators, namely Syarikat Pengeluar Air Sungai Selangor Sdn Bhd and Konsortium Abass Sdn Bhd.

The debt was accumulated as a result from the non-revision of water tariff rates starting from January 2009, which resulted in Syabas suffering from acute cash-flow problems that affected its ability to make full payment for water purchases from the three water-treatment operators.

Syabas was set up to undertake the privatisation of water-supply services in Selangor, Kuala Lumpur and Putrajaya. However, it is now entangled in a stalemate over the transfer of the state's water assets that has been ongoing since 2008.

Puncak Niaga and Syabas have been part of a tussle between the State and Federal Governments, with the State Government pressing to buy over Syabas in a bid to restructure it, before allowing it to be federalised under the Water Services Industry Act 2006.

To recap, Puncak Niaga owns 70% of Syabas while 15% is held by Kumpulan Darul Ehsan Bhd and the remaining 15% by Kumpulan Perangsang Selangor Bhd. The Federal Government, through the Minister of Finance Inc, holds one golden share in Syabas.

In its annual report, Puncak Niaga said the Government's decision to freeze the Syabas Capital Expenditure programme in July 2008 pending the restructuring in the water services sector in Selangor, Kuala Lumpur and Putrajaya had crippled its plans to refurbish, rehabilitate and enhance water distribution infrastructure.

Rozali said he hoped the deadlock could be resolved as soon as possible by the relevant parties.

“We don't want to repeat the water crisis that happened in 1998. There is always a solution for every problem. We need to talk and make sure that we can achieve a win-win solution. However, this is the difficult part to achieve,” he said.

He also said the company would be presenting a few suggestions to the National Water Services Commission (SPAN) to tackle a water crisis should it happened.

“We should know how to handle this and help consumers if there is a prolonged draught. We will be meeting up with SPAN to discuss ways to solve this issue on a short-term and also a longer-term basis,” he said.

Meanwhile, G. Parameswaran, who was representing the minority shareholders of Puncak Niaga, said should the chairman and board of Puncak Niaga choose to not take any action against Syabas, the minority shareholders would instead sue Syabas to protect their rights.

“For this, we will approach the other minority shareholders of Puncak Niaga and garner their support to requisite the board of Puncak Niaga to convene an EGM to approve the shareholders' resolution to empower Puncak Niaga to sue Syabas for the outstanding amount,” he said in a statement yesterday.

For its financial year ended Dec 31, 2011, Puncak Niaga recorded a net loss of RM83.72mil on revenue of RM2.59bil.

Source: www.thestar.com.my

24 June 2012

List and Contact Information Of All StockBrokers in Selangor and Kuala Lumpur



Name Broker No. Address Contact Information
Tingkat 2, 3 & 4 Wisma Amsteel Securities
No. 1 Lintang Pekan Baru
Off Jalan Meru
41050 Klang
Selangor Darul Ehsan
Tel: 03 - 3343 9999
Fax: 03 - 3343 3872
028-003 Mutiara Damansara Branch:
Lot 229, Tingkat 2
The Curve
No. 6, Jalan PJU 7/3
Mutiara Damansara
47800 Petaling Jaya
Selangor Darul Ehsan
Tel: 03 - 7729 8016
Fax: 03 - 7710 0598
028-006 Sea Park, Petaling Jaya Branch:
1st Floor, 20-22
Jalan 21/12, Sea Park
46300 Petaling Jaya
Selangor Darul Ehsan
Tel: 03 – 7877 6229
Fax: 03 – 7877 2885
086-003 Damansara Utama Branch:
Aras 4, Plaza Damansara Utama
2. Jalan SS21/60,
47400 Petaling Jaya,
Selangor Darul Ehsan
Tel: 03 - 7710 6613
Fax: 03 - 7710 7708
065-009 Tropicana City Branch:
Level G & Level 1
Tropicana City Office Tower
No. 3, Jalan SS 20/27
47400 Petaling Jaya
Selangor Darul Ehsan
Tel.: 03 – 7717 3388
Fax: 03 – 7717 3399
052-015 Klang Branch
35 (Ground, 1st & 2nd Floor)
Jalan Tiara 3
Bandar Baru Klang
41150 Klang
Tel: 03 - 3348 8080
Fax: 03 - 3348 8880
052-010 Subang Jaya Branch:
1st Floor, West Wing
Wisma Consplant 2
No. 7, Jalan SS 16/1
47500 Subang Jaya
Tel : 03 – 5621 2118
Fax: 03 – 5621 1748
Level 10, 1 First Avenue
Bandar Utama
47800 Petaling Jaya
Selangor Darul Ehsan
Tel: 03 - 7724 6888
Fax: 03 - 7729 7634
(Formerly known as HWANG-DBS SECURITIES BHD)
068-002 Shah Alam Branch:
16th, 18th-20th Floor, Plaza Masalam
2 Jalan Tengku Ampuan Zabedah
E9/E Section 9
40100 Shah Alam
Tel: 03 - 5513 3288
Fax: 03 - 5513 8288
068-010 Subang Jaya Branch:
East Wing & Central Link
Tingkat 3A, Wisma Consplant 2
No. 7, Jalan SS16/1
47500 Petaling Jaya
Tel: 03 - 5635 6688
Fax: 03 - 5636 2288
Sekinchan EAF:
No. 15, Tingkat Atas
Jalan Peria
45400 Sekinchan
Selangor Darul Ehsan
Tel: 03 - 3241 5025
Fax: 03 - 3241 5023
JF APEX SECURITIES BHD 079 3rd, 5th, 6th and 10th Floor
Menara Apex Off Jalan Semenyih
Bukit Mewah
43000 Kajang
Selangor Darul Ehsan
Tel: 03 - 8736 1118
Fax: 03 - 8737 4532
E-mail: apexetrade@jfapex.com.my
Website: www.apexetrade.com
079-002 Petaling Jaya Branch:
Level 15 & 16,
Menara Choy Fook On
No 1B, Jalan Yong Shook Lin
46050 Petaling Jaya
Selangor Darul Ehsan
Tel: 03 - 7620 1118
Fax: 03 - 7620 6388
JUPITER SECURITIES SDN BHD 055-004 Subang Jaya Branch Office
No 42- 46, 3rd Floor
Jalan SS19/1D
47500 Subang Jaya
Tel : 03-56324838
Fax : 03-56324839
KENANGA INVESTMENT BANK BHD 073-005 Petaling Jaya Branch:
Ground – Fifth Floor
East Wing, Quattro West
No. 4, Lorong Persiaran Barat
46200 Petaling Jaya
Selangor Darul Ehsan
Tel: 03 – 78626200/7800, 76296800
Fax: 03 - 79588840
073-016 The Curve, Mutiara Damansara Branch:
Lot 240, Second Floor
The Curve
No. 6, Jalan PJU 7/3
Mutiara Damansara
47800 Petaling Jaya
Selangor Darul Ehsan
Tel: 03 - 7725 9095
Fax: 03 - 7725 9079
073-006 Subang USJ Branch:
1st Floor, Wisma UEP
Pusat Perniagaan USJ 10
Jalan USJ 10/1A
47620 Subang Jaya
Tel: 03 - 802 41682
073-007 Klang Branch:
Suite 7.02, Level 7, Menara ING
Intan Millenium Square
No. 68, Jalan Batai Laut 4
Taman Intan
41300 Klang
Tel: 03 - 3005 7550 / 3345 1800
Fax: 03 - 3345 1788
MALACCA SECURITIES SDN BHD 012-002 Subang Jaya Branch Office
No 16, Jalan SS15/4B
47500 Subang Jaya
Tel: 03-5636 1533
Fax: 03-5635 1577
(Formerly known as OSK SECURITIES BHD)
056-011 SS2, Petaling Jaya Branch:
24, 24M, 24A, 26M, 28M, 28A, 30,
30M & 30A
Jalan SS2/63
547300 Petaling Jaya
Selangor Darul Ehsan
Tel: 03- 7873 6366
Fax: 03-7873 6566
Website: www.osk.com.my
056-045 Kajang Branch:
No. 37, Jalan Semenyih
43000 Kajang
Tel : 03 - 8736 3378
Fax : 03 - 8736 7939
056-047 Rawang Branch:
Tingkat Bawah & Tingkat Satu
No. 15, Jalan Bandar Rawang 4
48000 Rawang
Tel : 03 - 6092 8916
Fax : 03 - 6092 4541
056-048 Klang Branch:
Tingkat Bawah & Tingkat Mezanin
No. 87 & 89, Jalan Susur
Pusat Perniagaan NBC
Batu 1 1/2, Jalan Meru
41050 Klang
Tel : 03 - 3343 9180
Fax : 03 - 3342 6455
056-063 USJ, Taipan Branch:
Tingkat 3, 1A-D
Jalan USJ 10/1A
Pusat Perniagaan USJ 10
47610 UEP Subang Jaya
Selangor Darul Ehsan
Tel.: 03 - 8023 6518
Fax: 03 - 8023 6534
056-065 Kota Damansara Branch:
11-1, Jalan PJU 5/12
Dataran Sunway
Kota Damansara
47810 Petaling Jaya
Selangor Darul Ehsan
Tel: 03-61483361
Fax: 03-61483362
056-066 Bandar Puchong Jaya Branch:
Tingkat Bawah dan Tingkat Saturday No. 13 Jalan Kenari 3
Bandar Puchong Jaya
47100 Puchong
Selangor Darul Ehsan
Tel: 03-8070 6899
Fax: 03-8070 6748
PM SECURITIES SDN BHD ** 064-003 Puchong Branch:
Nos. 157 & 159, Jalan Kenari 23A
Bandar Puchong Jaya
47100 Puchong
Selangor Darul Ehsan
Tel: 03 - 8070 0773
Fax: 03 - 8076 2581
064-007 Klang Branch:
No.18 & 20, Jalan Tiara 2
Bandar Baru Klang
41150 Klang
Selangor Darul Ehsan
Tel: 03 - 3341 5300
Fax: 03 - 3341 5551
RHB INVESTMENT BANK BERHAD 087-003  Kuching Branch Office:
Yung Kong Abell
Units No. 1-10, 2nd Floor
Lot 365, Section 50, Jalan Abell
93100 Kuching Sarawak
Tel : 082-250888
Fax : 082-250868
SJ SECURITIES SDN BHD 096 Ground Floor, Podium Block
Wisma Synergy
Lot 72, Persiaran Jubli Perak
Seksyen 22
40000 Shah Alam
Selangor Darul Ehsan
Tel : 03-5192 0202
       (general line)
       03-5192 0808 (dealing)
       03-5192 0303 (CSR Helpline)
Fax : 03-5192 0909 (general)

TA SECURITIES HOLDINGS BHD 058-005 UEP Subang Jaya Branch:
No. 2-1, 2-2, 2-3 & 4-2
Jalan USJ 9/5T
Subang Business Centre
47620 UEP Subang Jaya
Selangor Darul Ehsan
Tel: 03 - 8025 1880
Fax: 03 - 8023 8820
058-007 Damansara Utama Branch:
2nd Floor, Wisma TA
No 1A, Jalan SS 20/1
Damansara Utama
47400 Petaling Jaya
Selangor Darul Ehsan
Tel: 03-77295713
Fax: 03-77255762


Name Broker No. Address Contact Information
A A ANTHONY SECURITIES SDN BHD 078-004 Sri Hartamas Branch:
N3, Plaza Damas
60, Jalan Sri Hartamas 1
Sri Hartamas
50480 Kuala Lumpur
Tel: 03 - 6201 1155
Fax: 03 - 6201 1001
AFFIN INVESTMENT BANK BHD 028-001 Principal Office:
Tingkat 14, 21, 24, and 27 Floor
Menara Boustead
69, Jalan Raja Chulan
50200 Kuala Lumpur
Tel: 03 - 2142 3700
Fax: 03 - 2142 3799
Kuala Lumpur Branch:
Ground, Mezzanine & 3rd Floor
Chulan Tower
No. 3 Jalan Conlay
50450 Kuala Lumpur
Tel: 03 - 2143 8668
Fax: 03 - 2143 3663
028-005 Taman Midah, Cheras Branch:
No. 38A & 40A
Jalan Midah 1
Taman Midah, Cheras
56000 Kuala Lumpur
Tel: 03 - 9130 8803
Fax: 03 - 9130 8303
Tingkat 18, 19 dan 20
Menara Multi-Purpose
Capital Square
No. 8 Jalan Munshi Abdullah
50100 Kuala Lumpur
Tel: 03- 2692 7788
Fax: 03- 2692 8787
076-001 Kuala Lumpur Branch:
17th Floor, Menara Multi-Purpose
Capital Square
8 Jalan Munshi Abdullah
50100 Kuala Lumpur
Tel: 03 - 2697 6333
Fax: 03 - 2697 2929
Tingkat 8-9, 11-18, 21-25 Bangunan AmBank Group
55 Jalan Raja Chulan
50200 Kuala Lumpur
Tel: 03 - 2036 2633
Fax: 03 - 2078 2842
086-004 Penang Branch:
Mezzanine Floor & Level 3
No. 37, Jalan Sultan Ahmad Shah
10050 Pulau Pinang
Tel: 04 – 226 1818
Fax : 04 – 229 2887
Menara Multi-Purpose Capital Square
No. 8, Jalan Munshi Abdullah
50100 Kuala Lumpur
Tel: 03 - 2691 8887 (General Line)
Fax: 03 - 2691 8854 / 8858 / 8969
CIMB INVESTMENT BANK BHD 065 Principal Office:
Tingkat 10, Bangunan CIMB
Jalan Semantan
Damansara Heights
50490 Kuala Lumpur
Tel: 03-2084 8888
Fax: 03-2084 8899
Correspondence Address:
9th Floor, Commerce Square
Jalan Semantan
Damansara Heights
50490 Kuala Lumpur
Tel: 03 - 2084 9999
Fax: 03 - 2084 9888
165 Jalan Ampang
50450 Kuala Lumpur
Tel: 03 - 2383 3890
Fax: 03 - 2383 2825
CLSA SECURITIES SDN BHD 033 Bilik 20-01, Aras 20
Menara Dion
27 Jalan Sultan Ismail
50250 Kuala Lumpur
Tel: 03 - 2056 7888
Fax: 03 - 20567988
Menara IMC
8 Jalan Sultan Ismail
50250 Kuala Lumpur
Tel: 03 - 2723 2020
Fax: 03 - 2026 9500
052-001 Bangunan ECMLibra
8, Jalan Damansara Endah
Damansara Heights
50490 Kuala Lumpur
Tel: 03-2089 1888
Fax: 03-2089 1801
052-009 Wisma Genting Branch
1st Floor, Wisma Genting
Jalan Sultan Ismail
50250 Kuala Lumpur
Tel: 03-2178 1133
Fax: 03-2032 5035
FA SECURITIES SDN BHD 021-002  Bangsar, KL Branch:
A-10-17 & A-10-1
Level 10, Menara UOA Bangsar
No. 5, Jalan Bangsar Utama 1
59000 Kuala Lumpur
Tel: 03 - 2288 1676
Fax: 03 - 2288 1676
Level 6-8, Menara HLA
No. 3, Jalan Kia Peng
50450 Kuala Lumpur
Tel: 03-2168 1168 / 2710 1168
Fax: 03-2161 6311
Website: www.hlgebiz.com.my
(Formerly known as HWANG-DBS SECURITIES BHD)
068-009 Taman Tun Dr Ismail,Kuala Lumpur Branch:
Tingkat 2, Bangunan AHP
No. 2, Jalan Tun Mohd Fuad 3
Taman Tun Dr Ismail
60000 Kuala Lumpur
Tel: 03 - 7710 6688
Fax: 03 - 7710 6699
068-012 Cheras Branch:
No. 34-5, 36-5, 38-5, 40-5, 42-5 & 44-5,
Tingkat 5
Cheras Commercial Centre
Jalan 5/101C
Off Jalan KasKas
Batu 5 Cheras
56100 Kuala Lumpur
Tel: 03 - 9130 3399
Fax: 03 - 9130 2299
068-014 Bukit Bintang Branch:
7th, 22nd and 23rd Floor
Menara Keck Seng
203 Jalan Bukit Bintang
55100 Kuala Lumpur
Tel: 03 - 2711 6888
Fax: 03 - 2711 3928
068-017 Mid Valley, KL Branch:
No. 57-10 Level 10
The Boulevard, Mid Valley City
Lingkaran Syed Putra
59000 Kuala Lumpur
Tel: 03 - 2287 2273
Fax: 03 - 2287 6377
Berjaya Times Square
No. 1, Jalan Imbi
55100 Kuala Lumpur
Tel: 03 - 2117 1888
Fax: 03 - 2144 1686
E-mail: ipsec@interpac.com.my
Website: www.paconline.com.my
054-003 Danau Desa Branch:
Tingkat Bawah 7-0-8
Jalan 3/109F
Danau Business Center
Danau Desa
58100 Kuala Lumpur
Tel: 03 - 7984 7796
Fax: 03 - 7984 7798
054-005 Kuchai Lama Branch:
Stesyen Minyak Shell
Jalan 1/116B
Off Jalan Kuchai Lama
Kuchai Entrepreneur Park
58200 Kuala Lumpur
Tel: 03 - 7981 8811
Fax: 03 - 7981 9211
054-006 Selayang Branch:
No. 77 & 79, Jalan 2/3A
Pusat Bandar Utara
KM12, Jalan Ipoh, Selayang
68100 Batu Caves
Selangor Darul Ehsan
Tel: 03 - 6137 1888
Fax: 03 - 6137 2828
A1-G2-7, Solaris Dutamas
No 1, Jalan Dutamas 1
50480 Kuala Lumpur.
Tel: 03-62054525
Fax: 03-62078524
Jalan Sultan Ismail
50250 Kuala Lumpur
Tel: 03 - 2270 4700
Fax: 03 - 2270 4787
JUPITER SECURITIES SDN BHD 055 Levels 8 & 9, Menara Olympia
8, Jalan Raja Chulan
50200 Kuala Lumpur
Tel: 03 - 2034 1888
Fax: 03 - 2034 2288
E-mail: jssb_corporate@jssb.com.my
Website: www.jupiteronline.com.my
KAF-SEAGROATT & CAMPBELL SECURITIES SDN BHD 053 11th - 14th Floor, Chulan Tower
No. 3, Jalan Conlay
50450 Kuala Lumpur
Tel: 03 - 2168 8800
Fax: 03 - 2168 8840
KENANGA INVESTMENT BANK BHD 073-001 Tingkat 4-10, 15-16, 18 & 20
Kenanga International
Jalan Sultan Ismail
50250 Kuala Lumpur
Tel: 03 - 2164 9080 /
             2162 1490
Fax: 03 - 2161 4990 /
             2163 5927
E-mail: kenanga@kenanga.com.my
Website: www.kenanga.com.my
27 Jalan Sultan Ismail
50250 Kuala Lumpur
Tel: 03-2059 8833
Fax: 03-2381 3082
Tingkat 31-33, Menara Maybank
100 Jalan Tun Perak
50050 Kuala Lumpur
Tel: 03-20591888
Fax: 03-20784194
098-001 Kuala Lumpur:
Tingkat 5-13, MaybanLife Tower
Dataran Maybank
No. 1 Jalan Maarof
59000 Kuala Lumpur
Tel: 03-22978888
Fax: 03-22825136
MIMB INVESTMENT BANK BERHAD 061 Tingkat 18, 19 & 21
Menara EON Bank
288 Jalan Raja Laut
50350 Kuala Lumpur
Tel: 03-2691 0200
Fax : 03-2698 5388 /
             2694 9788
Tingkat 10, 12, 14, 15 & 18,
Menara MIDF
No. 82, Jalan Raja Chulan
50200 Kuala Lumpur 
Tel.: 03-2163 0630
Fax: 03-2163 0248
026-001 Kuala Lumpur Branch:
8th, 9th, 10th, 11th & 12th Floors
Menara MIDF
82, Jalan Raja Chulan
50200 Kuala Lumpur
Tel: 03-2173 8888
Fax: 03-2173 8777
MERCURY SECURITIES SDN BHD 093 L-7-2, No. 2, Jalan Solaris
Solaris Mont’ Kiara
50480 Kuala Lumpur
Tel: 03- 6203 7227
Fax: 03- 6203 7117
E-mail Address: mercurykl@mersec.com.my
M & A SECURITIES SDN BHD 057-002 Aras 1 – 3, No. 45 & 47 and No. 43-6
The Boulevard, Bandar Mid Valley
Lingkaran Syed Putra
59200 Kuala Lumpur
Tel: 03-2282 1820
Fax: 03-2283 1019
057-004 Kuchai Lama Branch:
22A & 22A-1, Jalan Kuchai Maju 1
Kuchai Entrepreneurs’ Park
Off Jalan Kuchai Lama
58200 Kuala Lumpur
Tel: 03 - 7983 9890
Fax: 03 - 7983 9860
037 Suite 16.5, Level 16
Menara IMC, Letter Box 47
8, Jalan Sultan Ismail
50250 Kuala Lumpur
Tel: 03 – 2027 6811
Fax: 03 – 2027 6836
(Formerly known as OSK SECURITIES BHD)
056 Tingkat 9, 12 (sebahagian) & 21
Plaza OSK, Jalan Ampang
50450 Kuala Lumpur
Tel: 03 - 2333 8333 /
             2175 3388
Fax: 03 - 2175 3333
Website: www.osk.com.my
056-028 Kepong Branch:
No. 62, 62-1 & 64
Vista Magna
Jalan Prima, Metro Prima
52100 Kuala Lumpur
Tel: 03 - 6257 5869
Fax: 03 - 6257 5934
056-054 Pandan Indah Branch:
No. 5 dan 7
Jalan Pandan Indah 4/33
Pandan Indah
55100 Selangor Darul Ehsan
Tel: 03 - 4280 4798
Fax : 03 - 4280 5519
056-058 Seri Petaling Branch:
Ground, First, Second and Third Floor
No. 55, Zone J4
Jalan Radin Anum
Bandar Baru Seri Petaling
57000 Kuala Lumpur
Tel: 03 - 9058 7222
Fax: 03 - 9058 3386
PM SECURITIES SDN BHD ** 064 Principal Office:
Mezzanine & 1st Floors
Menara PMI
No. 2 Jalan Changkat Ceylon
50200 Kuala Lumpur
Tel: 03 - 2146 3000
Fax: 03 - 2144 8082
064-001 Kuala Lumpur Branch:
Ground Floors
Menara PMI
No. 2 Jalan Changkat Ceylon
50200 Kuala Lumpur
Tel: 03 - 2146 3000
Fax: 03 - 2144 8082
(Formerly known as PB SECURITIES SDN BHD)
051 Principal Office:
25th Floor, Menara Public Bank
146 Jalan Ampang
50450 Kuala Lumpur
Tel: 03-2166 9382
Fax: 03-2166 9362
051-001 Kuala Lumpur Branch:
27th Floor
Bangunan Public Bank
No.6, Jalan Sultan Sulaiman
50000 Kuala Lumpur 
Tel: 03 - 2031 3011
Fax: 03 - 2031 2533
RHB INVESTMENT BANK BHD 087 Principal Office:
Tingkat 10, Tower One
RHB Centre
Jalan Tun Razak
50400 Kuala Lumpur
Tel No: 03-9287 3888
Fax No: 03-9287 8000
Website: www.rhbinvest.com
Correspondence Address:
Level 9, Tower Three
RHB Centre
Jalan Tun Razak
50400 Kuala Lumpur
Tel No: 03-9287 3888
Fax No: 03-9287 8000
(Formerly known as Botly Securities Sdn Bhd)
058-003 Tingkat 13-16, 23, 28-30, 34 & 35
Menara TA One
22 Jalan P. Ramlee
50250 Kuala Lumpur
Tel: 03 - 2072 1277
Fax: 03 - 2031 6608
Website: www.ta.com.my
Wisma Hong Leong
18, Jalan Perak
50450 Kuala Lumpur
Tel: 03 - 2781 1100
Fax: 03 - 2161 7981

Source: www.bursamalaysia.com

22 June 2012

Malaysia Airlines (MAS) comes out with business plan that focuses on cost cuts and initiatives to “sweat” the airline's assets to maximise revenues - CEO Ahmad Jauhari Yahya

Malaysia Airlines (MAS) has come up with yet another business plan that focuses on more cost cuts and initiatives to “sweat” the airline's assets to maximise revenues. In addition, the airline's expected return to profitability has been postponed from next year to 2014.

The plan, which MAS group CEO Ahmad Jauhari Yahya refers to as the “renewed business Labels plan”, was announced yesterday but had few details.

However, a major proposed change that did emerge apart from pushing back the projected return to profitability by a year is that the latest plan does not involve housing the regional operations in a new entity. This will ease the staff unhappiness over the proposed separation of the regional and long-haul operations as outlined in the December 2011 business plan.

This latest plan was necessary for MAS to chart its future direction because the previous plan was crafted for both MAS and AirAsia Bhd to work together following a share swap between their owners. The deal has since collapsed.

At a press conference after a MAS AGM yesterday, Jauhari said the airline's aim was to push up revenue per seat km by 10% from 18.5 sen as at end of last year, and trim cost per available seat km by 20% or about 5 sen from 24.8 sen.

To do that, several “initiatives would need to be executed in the next six months to a year via optimising all the assets, implementing structural cost reductions for sustainability and leveraging on work efficiency”.

“We just have to sweat our assets more as under the previous network utilisation plan, the usage was low of our narrow and wide body aircraft. We also plan to make changes to the work practices to be more efficient and to drive productivity levels up,” Jauhari said.

Capacity cuts are not on the cards but MAS chairman Tan Sri Md Nor Yusof said that to grow revenues, there would be a need to realign capacity to match opportunities especially that within the six-hour flying radius.

MAS would focus on growing its business in the region as this is where the growth is, and Md Nor added that “we have the right mix of aircraft types that will enable us to build a better orientation towards capitalising on the region, particularly for the short-haul routes”.

Jauhari added that to “sweat” the assets, the B737 aircraft's flying hours would be extended from the current nine to 11, and MAS will look into frequency increases for some of its destinations. He, however, did not elaborate.

“The adding of the A380 (the new Airbus plane) would further help boost our fleet efficiency,'' he said. However, he said the A380 would only be used for the London sector and not for the KL-Sydney route as the aircraft was too big for the Sydney sector.

He also said the airline had appointed Duncan Bureau as head of sales and the airline had to rev up sales to bring in revenues because there was a mismatch in its cost and sales due to the airline spending more than what it made. The airline reported its worst net loss of RM2.5bil for 2011.

“We give ourselves up to 2014 basically to return to profitability, a change from our earlier target by 2013,” Jauhari said.

On cost cuts, Jauhari added that every aspect of cost, be it aircraft usage, procurement, maintenance, etc, will be looked into as part of the three-year initiative to bring cost down.

MAS has a staff base of 20,477 as per its 2011 annual report. When asked if there would be job cuts, he declined to address it, saying it was a sensitive matter but manpower costs would be dealt with.

Asked if there were plans to revive Firefly's jet operations, he said Firefly would concentrate on turboprops and maximise on point-to-point traffic.

To a question if MAS would set up low-cost airline or revive Firefly's jet operations for that purpose, he said “we are not closing our doors to (setting up a) new LCC model but we are not looking at it now. Our immediate focus is revenue growth.”

To a question if AirAsia will be using MAS maintenance, repair and overhaul (MRO) services following the collapse of the share swap agreement, Jauhari said that “we are ready to serve any customer.”

At the AGM yesterday, all the directors seeking election were voted in but Tan Sri Wan Azmi Wan Hamzah did not seek re-election as director.

Source: www.thestar.com.my

BLD Plantation Bhd currently has 25,100ha of oil palm estates, sold 543,300 tonnes of palm oil products last year

BLD Plantation Bhd, which has 25,100ha of oil palm estates representing 52% of the group's total land area, plans to develop the remaining landbank in five to seven years.

Executive chairman Datuk Henry Lau Lee Kong said the group could fully cultivate the undeveloped land within that timeframe if the conditions were right.

“Planting an average 3,000ha a year is reasonable. It costs about RM15,000 to develop one ha,” he told StarBiz after the company AGM here yesterday.

Lau said the group's total plantation area would increase to about 27,000ha by December (this year), of which about 90% would be in maturity stage. Most of the estates are in Miri and Sibu Divisions.

The group is also involved in joint-venture oil palm plantation development on native customary rights (NCR) land.

BLD, through wholly-owned subsidiary Kirana Palm Oil Refinery Sdn Bhd, is investing RM51mil to expand its palm oil refinery in Bintulu with the installation of a second plant.

The new plant, which would double existing capacity to 2,400 tonnes per day, is expected to commence operation in the fourth quarter this year.

The products from the refinery are exported mostly to China and India.

Lau said the existing plant was running at about its installed capacity. The group's kernel crushing plant, which has a capacity of 450 tonnes per day, is operating at about 76% of its installed capacity.

BLD refinery and kernel crushing plant have obtained ISO certifications in quality, environmental and food safety management systems.

He said the group's second palm oil mill at Kabang Land District in Sibu Division had started operations, with current processing capacity of 60 tonnes of fresh fruit bunches (FFBs) per hour.

The new mill also purchases FFBs from other plantations and smallholders.

Asked if there is any plan by BLD to acquire oil palm estates or increase its landbank through acquisition, Lau replied: “All the time we are on the look-out for opportunities and any business that is viable.”

As at Dec 31, 2011, BLD group had cash and bank balances of RM243.8mil, up from RM163.2mil in 2010.

Group pre-tax profit soared to RM125.8mil last year from RM77.1mil in 2010 while group revenue surged to RM1.89bil from RM1.32bil.

The increase in earnings was contributed mainly by a 21% increase in sales volume and 19% increase in average selling price of palm oil products.

The group sold 543,300 tonnes of palm oil products from its refinery and kernel plant last year.

At the AGM, shareholders approved a final single-tier dividend of 14sen per share to be paid on July 31.

Source: www.thestar.com.my

Automotive Sector Update: Vehicle sales in May 2012 rose by an impressive 27% year-on-year and 22% month-on-month to 58,299 units

Vehicle sales in May rose by an impressive 27% year-on-year and 22% month-on-month to 58,299 units, the highest since August last year's festive-driven sales of 58,382 units. The industry has not witnessed such a strong year-on-year monthly sales growth since January 2010.

While sales growth was seen across all vehicle segments, sales growth of the passenger car sub-segment was among the strongest.

With a market share of 30% in May, Perodua was still comfortably on top in terms of monthly vehicle sales. While its market share advanced by close to 6% percentage points year-on-year (y-o-y) due to supply recovery and sales contribution from the new Myvi, its market share was flat on a month-on-month (m-o-m) basis.

Unlike the sales of Viva which were affected by the stricter lending requirements, Myvi's sales were relatively unscathed.

In contrast, Proton's market share fell 6% percentage points y-o-y to 24%, suggesting some cannibalisation by the Myvi. But its market share inched up 3.4% percentage points m-o-m, thanks to a full-month contribution from Preve (2,771 units in May from 494 units April) and strong sales from core models like Persona, Saga (+12% m-o-m) and Exora.

After bouncing back 260% m-o-m in March and 73% m-o-m in April, Honda staged another impressive 49% m-o-m sales growth in May. We expect the upward momentum to persist due to continued supply recovery and the release of new models such as the Honda City facelift and all-new Civic.

Honda's market share in May rose 1% percentage point to 5.5%.

Relative to Honda and the industry's strong double-digit m-o-m sales growth, Toyota's 4% m-o-m sales uptick failed to excite. As a result, its market share fell by close to 3% percentage points to 16.6% in May.

Given that Nissan's market share held up on a m-o-m basis, Honda's market share gains seemed to be at the expense of Toyota. But its 53% y-o-y vehicle sales jump was among the strongest in the industry, courtesy of new models such as Avanza (launched in January, Prius C and Prius facelift (both launched in February).

We expect sales to pick up on the back of the newly launched Camry this month. Initial response to the new model has been positive, with over 2,000 units booked so far.

Nissan's vehicle sales rose 12% y-o-y and 15% m-o-m, lagging behind the industry growth of 27% y-o-y and 22% m-o-m. The Teana continued to fall short of our monthly sales target of 350 units and management's 500 units.

Even the new NV200 failed to boost Nissan's overall sales. Monthly sales for the NV200 have been quite disappointing at 71 units in May, way below the company's target of 200 to 300 units per month. Nissan's market share slipped 0.3% percentage points m-o-m and 0.7% percentage points y-o-y to 5% in May.

Source: www.thestar.com.my

20 June 2012

Mulpha International Bhd's shareholders approved plans to undertake a dividend reinvestment plan to allow shareholders to reinvest their dividend in new ordinary shares, board of directors exploring ways to close gap between NTA and market price - executive chairman Lee Seng-Huang

Mulpha International Bhd, which is trading at a large discount to its net tangible assets (NTA), is looking at narrowing this gap, according to executive chairman Lee Seng-Huang.

“We are very frustrated with the share price performance. The market price and NTA gap is very large. The board (of directors) is exploring ways to close the gap,” he said after the company's AGM.

As at March 31, Mulpha International's NTA stood at RM1.32 while its share price was 41 sen at the close yesterday.

Lee said the group would close the huge gap between its share price and NTA either through a share buyback programme or assets disposal that was above NTA.

“We are also looking at acquisition opportunities in the region but so far have not seen anything that was compelling in terms of value. Thus, we see more value in our share buyback exercise,” he said, adding that Mulpha had bought back 3% to 4% of its shares.

Mulpha is one company which believes in rewarding shareholders through share buybacks rather than dividend payment. The company had made numerous share buyback exercises to boost its share price.

The company started buying back its shares in 2001 when the share price was trading below 40 sen for most of the time. It continued its buyback effort in 2002 and 2003 until it reached the maximum 10% of share capital allowed.

The exercise saw its share price appreciate. Subsequently, the company repeated the share buyback exercises over the past few years.

Lee explained that by selling land it could unlock the NTA and use the proceeds to buy another piece of land which was more value accretive.

Asked if its options included privatisation, Lee said: “That's not a decision of the board. The board cannot take the company private. Certain shareholders may have to consider the options.”

Meanwhile, he said the company was “pretty much done” in terms of disposing of its non-core business, adding that the company had sold off the crane and paint business.

According to reports, Mulpha recently sold its 31,516 sq ft land in Jalan Sultan Ismail for RM104mil, or about RM3,300 per sq ft.

At the AGM, shareholders also approved Mulpha's plans to undertake a dividend reinvestment plan to allow shareholders to reinvest their dividend in new ordinary shares of 50 sen each.

Separately, Lee said it was “not high priority” for the company to enter a new market, especially new developing markets like Vietnam. He said the company still had 2,000 acres of undeveloped land in Malaysia.

Source: www.thestar.com.my

19 June 2012

Nasim Sdn Bhd launches four new variants for the Peugeot 508, price for Peugeot 508 standard is at RM155,888 on the road with insurance, Peugeot 508 premium (RM169,888), Peugeot 508 SW (RM179,888), Peugeot 508 GT (RM199,888) and Peugeot 508 SW GT (RM209,888)

Nasim Sdn Bhd, the local distributor of the Peugeot brand of vehicles, aims to sell up to 200 units of the expanded 508 model.

Peugeot Malaysia sold 5,400 units of all models last year and expects sales of 9,300 units this year.

Nasim, a member of the Naza group, introduced four new variants of the Peugeot 508, namely the diesel-powered 508 GT and 508 SW GT, 508 SW and 508 Standard.

The variants joined the 508 sedan now named 508 Premium which was introduced to the Malaysian market in October 2011.

Both the 508 GT and 508 SW GT are the first diesel-powered Peugeots sold by Nasim since its appointment as the official distributor for the French marquee in 2008.

The 508 SW and 508 Standards are petrol-powered.

Nasim chief operating officer Datuk Samson Anand George said the launch is a milestone for both Nasim and Peugeot in Malaysia as this is its maiden entry into the diesel segment which offers consumers more torque but lower fuel consumption.

Both the 508 GT and 508 SW GT are powered by a four-cylinder 2.2-litre diesel engine which is a newly developed engine by Peugeot.

The engine features sophisticated technology such as lightweight titanium turbocharger impeller, optimisation of friction, piezo-electric injectors with eight apertures and optimised combustion chambers to deliver superior performance.

Both variants are fitted with a six-speed auto adaptive gearbox with paddle shifters, Tiptronic functionality and sports mode.

To enhance the road-holding and drivability of the 508 GT and 508 SW GT, both variants feature a double wishbone suspension system with drop-link hub carrier and anti-roll bar at the front.

Fuel consumption on the 508 GT is 5.7-litres per 100 km on a mixed cycle while the 508 SW GT achieves a consumption of 5.9-litres per 100 km.

Other premium features include an intelligent keyless entry with push-start ignition, automatic quad-zone air-conditioning, 8-way electric front seats with massage and memory functionality for the driver's seat, a 10-speaker hi-fi system with a 500 watt surround sound amplifier with Arkamys audio processing, colour head-up display and 5-dial instrument panel with colour liquid crystal display.

The 508 standard is priced at RM155,888 on the road with insurance, 508 premium (RM169,888), 508 SW (RM179,888), 508 GT (RM199,888) and 508 SW GT (RM209,888).

Source: www.btimes.com.my