On The Platter
GENP (FV RM10.13 - BUY) Company Update: Steady Long Term
Grower We are maintaining our Buy call on Genting Plant with our FV unchanged
at RM10.13. Genting Plant is a core Malaysian plantation holding and one of the
biggest, best managed and most highly focused. While its PE valuation looks
stretched, this is due to the stock pricing in the value of its landbank in
Iskandar Region, which we estimate to be worth between RM1.71 and RM2.13 per
share. Knocking off the Iskandar land, Genting Plant is trading at 14.7x CY12
and 13.6x CY13 earnings.
SEG (FV RM2.17– BUY)
Corporate News Flash: Imminent GO For SEGi?
TNB (FV RM7.68 – BUY)
Corporate News Flash: CFO Resigns
Market Review
Profit taking continues. The
FBM KLCI declined 5.83 pts to 1,583.75 amid continued profit-taking and
weak sentiment in regional markets.
Decliners thumped advancers 352 to 342 while 317 counters were unchanged. Among
the key market news today are:.Navis may
increase its stake in SEG
International to over 33% that could
trigger a general offer, China’s CSR Zhuzhou Electric Locomotive Co Ltd
wins RM530m LRT deal, Favelle Favco secured RM102.1m worth of contracts, Xian
Leng reported irregular capex amounting to RM90.7m and Felda Global Ventures
Holding will soon submit its IPO prospectus to the SC. Meanwhile, TDM secures
nod on land for Terengganu hospital, Yung Kong unit sells land for RM12.2m,
TNB’s CFO resigns and the government postpones Lynas rare-earth mine licence.
On the global front, US stocks closed with weekly losses as investors weighed
Europe’s return to the headlines against positive weekly claims data. With the
Dow declining 14.61 pts to 13,060, local
investors are expected to continue
staying on the sidelines, pending any fresh lead.
MEDIA HIGHLIGHTS
SEGi GO may be
imminent
A general offer may be announced for SEGi by as early as the
end of next week should issues between interested stakeholders and Navis
Capital Partners, which recently became the second largest shareholder, be ironed
out. Sources said while nothing had been confirmed, a GO is a very real
possibility and would depend on several factors, including board-level
representation, level of management control by Navis and key performance
indices. Sources also did not rule out Navis bringing in SEGi MD Datuk Seri
Clement Hii, EPF or another GLIC as a joint offeror in the GO. (StarBiz) Please
see accompanying report
Irregular capex
amounting to RM90.7m at Xian Leng
Three former directors of Xian Leng Holdings Bhd did not
follow the group’s accounting procedures in capital expenditure (capex)
amounting to RM901.7m between FY05 and FY08, a special audit of the company has
found. According to filling with Bursa, the group said the three former
directors and substantial shareholders former managing director Ng Huan Tong,
his wife Lim Wan Hong and Chua Chong Seng were the signatories of cash cheques
amounting to RM85.7m given out under questionable circumstances to pay four
contractors for the construction of fish ponds. (Financial Daily)
Favelle secures 5
contracts worth RM102m
Favelle Favco has secured 5 purchase order contracts worth
RM102m through three of its wholly-owned subsidiaries. It said the contracts
were secured through Favelle Favco Cranes (M) SB (three contracts), Favelle Favco
Cranes Pty Ltd and Kroll Cranes A/S (one contract each). “The contracts secured
are for the supply of three offshore cranes and spare parts,” it said.
(Financial Daily)
Hitachi plans to
acquire Malaysia headquartered eBworx to expand network
Hitachi Ltd has initiated take-over proceedings to acquire
eBworx, a financial IT solutions company headquartered in Malaysia. Hitachi
intends to expand its system solutions business in South-East Asia and China,
by gaining access to eBworx's extensive customer base, software products, and
development base, including highly-skilled human resources. The share
acquisition proposal is subject to approval from regulatory authorities.
Hitachi also aims to establish a one-stop service framework targeting Japanese
and local financial institutions that were increasing their investments in
global operations especially in Asia. By acquiring eBworx, Hitachi would have a
business platform to provide comprehensive system solutions to financial
institutions as eBworx has an extensive
track record and established reputation with leading banks in South-East Asia
and China. (StarBiz)
Navis buys stake in
cinema operator
Navis Capital Partners has bought a majority stake in the
country’s 3rd largest cinema operator MCAT Box Office SB (MBO) at a
price of RM104m. The investment was done via a combination of existing shares
from the current sole shareholder, Tan Sri Abdul Rashid Abdul Manaf, and new
shares issued for a substantial capital injection from Navis. Upon completion
of the exercise, Navis and Rashid will emerged as the majority shareholder of
MBO. (StarBiz)
Rafique resigns as
TNB CFO
Tenaga Nasional’s CFO has resigned yesterday to pursue
career opportunities elsewhere, according to a Bursa Malaysia filling. The
47-year-old chartered accountant Mohd Rafique Merican resigned “to pursue
better opportunity and career advancement,” leaving without any disagreement with the board of
directors nor any issues to be highlighted to TNB’s shareholders. (StarBiz)
Please see accompanying report.
Terengganu approves
land for new hospital
The Terengganu state government has approved the lease of land in Batu Burok to build and
operate a new 130-bed specialist hospital which is operating at or near maximum
capacity,” said its chairman, Datuk Roslan Awang Chik, said in a statement.
“The hospital, on a 23,424 sq m land, will be the city’s flagship specialist hospital
that will serve the approximately 338,000 people of Kuala Terengganu.”
(StarBiz)
Naza TTDI’s listing
agenda
Naza TTDI SB is eyeing a listing on the local bourse in the
next 3-5 years to achieve its aim of becoming one of the largest property
developers in the country. Deputy executive chairman-cum-group MD SM Faliq SM Nasimuddin
said although internally the company was “all set to go”, it would be more
prudent to wait for the right time to undertake the listing exercise. “We want
to ensure the company realizes the right value from the listing and will wait
for the right market conditions and external factors before proceeding,” Faliq
told StarBiz. He said the local market would be quite challenging these few
years given the high number of projects coming onstream, especially high-rise
residential and commercial projects. To address the market uncertainties, Faliq
said Naza TTDI would be launching projects with good demand including terrace
houses, shop lots, and also its “bread and butter” township products. (StarBiz)
ECONOMIC
HIGHLIGHTS
China: Wen signals
easing as yield drops to 11-month low
China’s one-year central-bank bill yield dropped to the
lowest level in 11 months on speculation
Premier Wen Jiabao will ease monetary policy to revive growth in Asia’s biggest
economy. The yield declined 17bps last month to 3.31%, the fastest decline
since Oct, compared with similar-maturity U.S. Treasuries that rose 1bps to 0.16%.
Speculation that Wen will reduce banks’ reserve requirements or interest rates
has increased since he said policy should be fine-tuned “as soon as possible”
in comments reported 3 April by state media. [Bloomberg]
Taiwan: Inflation
quickens, limiting scope for rate cuts
Taiwan’s consumer prices rose in March on costlier fuel,
limiting the central bank’s scope to cut interest rates. The consumer-price
index climbed 1.21% from a year earlier, compared with a revised 0.23% increase
in Feb, the statistics bureau said in Taipei. Taiwan joined Asian nations
including China and Vietnam in raising fuel prices this year as crude oil costs
climbed. The island’s industrial output recovered in February for the first
time in four months and exports rebounded, prompting the central bank to say it
would focus on inflation after leaving borrowing costs unchanged for a third
meeting on 22 March. [Bloomberg]
UK: Manufacturing
unexpectedly drops for second month
UK manufacturing output unexpectedly declined for a second
month in Feb, indicating the economy’s return to growth may be uneven. Factory
output fell 1% from Jan, the most since Apr last year, the Office for National Statistics
said in London. Manufacturing, which accounts for 10% of the economy, was
revised to a 0.3% decline in Jan from a 0.1% increase. Reports this week showed
expansion in services, manufacturing and construction accelerated in March,
suggesting the economy probably returned to growth in the first quarter.
[Bloomberg]
EU: Monti labor
market overhaul ready for parliamentary review
Prime Minister Mario Monti’s bill to overhaul the country’s
labour market, his latest effort to spur Italy’s economic growth, will be sent
to parliament today for review after President Giorgio Napolitano signed the
draft law. Monti presented the bill yesterday after watering down some measures
easing firing rules to secure support of his political allies in parliament.
Mont backed away from his original goal of allowing companies to fire workers
for economic reasons without fear of reinstatement, and in the draft labour
courts will still have a limited right to reverse those dismissals. [Bloomberg]
US: Payroll gain in
US probably exceeded 200,000 for fourth month
Employers probably added more than 200,000 workers to payrolls in March for a fourth
straight month as US companies gained confidence that
sales will keep improving, economists said before a government report. Hiring
increased by 205,000 after rising by 227,000 in Feb, according to the median
projection of 80 economists surveyed by Bloomberg News. The last time
employment advanced at a similar pace for as many months was late 1999 into
2000. The jobless rate probably held at a three-year low of 8.3%. [Bloomberg]
US: New York Fed
Markets Group Chief Brian Sack to resign
Brian Sack, markets group chief at the Federal Reserve Bank
of New York, is resigning this year after leading operations in
implementing the central bank’s monetary policy since June 2009. Sack,
41, will remain at his current post until 29 June, the district bank said in a
statement on its website. He will then be placed on leave until his resignation
from the New York Fed effective 14 Sept, according to the statement. As head of
the markets group, Sack oversaw the record expansion of the Fed’s balance sheet
while policy makers turned to unconventional tools such as two
quantitative-easing programs in the aftermath of the credit crisis. [Bloomberg]
Source: OSK188
No comments:
Post a Comment