Thursday 17 May 2012

News Highlights - MISC, KFC Holdings, WCT, Bursa Malaysia


MISC Bhd (RM3.94/share)
1Q net loss widens
Shipping outfit MISC Bhd incurred a substantially larger net loss of RM465.1mil or 10.4 sen a share for 1QFY12 ended March 31, after making hefty provisions. This compared with a net loss of RM307.9mil incurred in 1QFY11, which was also dampened by provisions.

Revenue fell 17.8% y-o-y to RM2.bil, largely due to a 93% dip in revenue from its liner business following the group’s decision to completely exit the business by mid-2012. Its heavy engineering business also saw lower revenue.  Consequently, operating profit from both business segments fell. The group’s petroleum and chemical businesses were still loos-making, but showed improvements.

MISC recognised a net loss on disposal of RM1.6mil in the quarter, compared with a RM96.1mil net gain from asset sales in 1Q11. It also recognised RM116.4mil impairment provisions during the quarter “following decrease in asset values from deterioration of shipping markets”, besides another RM220.5mil in additional impairment provisions due to the exit of the liner business during the quarter. – The Edge

KFC Holdings (M) Bhd (RM3.80/share)
EPF to take big stake in SPV in the KFC and QSR buyout
The Employees Provident Fund (EPF) will take a significant stake in the special-purpose vehicle (SPV) that is proposing to buy out QSR Brands Bhd and KFC Holdings (M) Bhd (KFCH), sources said. The involvement of EPF in the buyout exercise was likely to be aimed at giving the buyout vehicle, Massive Equity Sdn Bhd, a firmer footing, from the standpoint of funding as well as governance.

Late last year, JCorp and Britain-based private equity firm CVC Capital Partners had formed a 51:49 joint venture (via Massive Equity) to buy out QSR and KFC. The EPF is now going to be the major shareholder of the 49% portion of Massive Equity, while JCorp’s 51% in the SPV remains intact. CVC portion of Massive Equity would be reduced. – StarBiz

WCT Bhd (RM2.27/share)
Eyes RM1b deals
Construction, engineering and property firm WCT Bhd hopes to bag another RM1.0bil worth of jobs this year. To date, It has already won some jobs worth RM600.0mil. WCT chairman Datuk Ahmad Sufian said it is bidding for some RM5.0bil work and with a track record of 20% success rate in securing jobs, a RM1.0bil appears achievable. The group has a current order book of RM3.3bil, which will last for another two to three years. On market expansion overseas, WCT deputy managing director Goh Chin Liong said the company is exploring job opportunities in Myanmar and Indonesia. Overseas markets contribute about 40% to its revenue while local business contributes 60%. Previously, international market contributed 70% to the revenue, but the company is generating more revenue from domestic market to mitigate risks. – Business Times

Bursa Malaysia Bhd (RM6.37/share)
New daily high for derivatives deals
Total contracts traded on Bursa Malaysia Derivatives (BMD) reached a historical daily volume high of 77,703 contracts yesterday, surpassing the previous record of 74,014 contracts on Feb 24, 2011. Bursa Malaysia said daily volume for crude palm oil futures contracts also charted a historical high of 63,019 contracts, surpassing the previous record of 48,741 contracts on Nov 17, 2011. It added that this is attributed to increased hedging activities resulting from the volatility and uncertainty seen in global financial and palm oil markets. – StarBiz

Source: AmeSecurities

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