KUALA LUMPUR: MALAYSIAN RESOURCES CORP [] Bhd (MRCB), IJM Land Bhd’s proposed merger has been called off after both parties failed to agree on the terms of the MoU which expired.
Shares of both companies and IJM Corp fell on Thursday, Dec 30 ahead of the announcement which was made at midday. Trading in the shares of MRCB, IJM Corp and IJM Land has been suspended from 12pm and will resume trading on Monday, Jan 3 at 9am.
At 12pm, IJM Land was down 38 sen to RM2.86 with 21.53 million shares done while IJM Land-WA fell 28 sen to Rm1.61 with 44.39 million units transacted.
IJM and its warrants, IJM-WC fell 27 sen each to RM6.23 and RM2.76. MRCB shed six sen to RM1.99 with 4.86 million shares done.
MRCB said that after a series of discussions, MRCB and IJM Land have not been able to reach an agreement on the definitive terms and conditions of the proposed merger.
“As such, the memorandum of understanding in relation to the proposed merger has lapsed and ceased to have any further effect,” it said.
To recap, The Edge FinancialDaily reported the merger between MRCB and IJM Land was expected to create the country’s second-largest property company with a market capitalisation of over RM7 billion and landbank of more than 9,000 acres.
The newly merged entity (newco) is expected to be listed after the second quarter of next year.
In the proposed merger, shareholders of both companies will exchange their shares for shares in the newco. Shareholders of MRCB and IJM Land will be offered a non-binding offer price for their shares at RM2.30 and RM3.65, respectively, which are at premiums of 15.6% and 18.1%, respectively, over their last traded prices last Friday.
The offer valued IJM Land at a price-to-book ratio of 2.43 times and MRCB at 2.61 times, based on their latest reported results as at Sept 30.
The newco is also expected to have combined revenues of over RM2 billion and an asset base in excess of RM3 billion.
The Employees Provident Fund (EPF) is a common shareholder in all the companies involved in the merger. The EPF owns a 19.4% equity stake in IJM Corp, while it is the single largest shareholder of MRCB with a 41.63% stake. IJM Land is in turn a 62.48%-owned unit of IJM Corp Bhd.
The property development activities of MRCB are mainly concentrated in KL Sentral, although it has a 4,000-acre township in Perak.
IJM Land’s strength is in township developments with projects focused in the Klang Valley, Penang, Johor, Negri Sembilan, Sabah and Sarawak. It also has projects in Vietnam and China, and a total landbank of over 5,000 acres.
The merged company is also widely expected to gain from the development of the 3,300 acres of Rubber Research Institute (RRI) land in Sungai Buloh, which was awarded to the EPF.
Written by Joseph Chin
Thursday, December 30, 2010
Public Mutual declares distributions for 3 funds
KUALA LUMPUR: Public Mutual Bhd has declared distributions for its Public Savings Fund, Public Focus Select Fund and Public Islamic Enhanced Bond Fund.
It said on Thursday, Dec 30 the total gross distributions declared for the financial year ending Dec 31, 2010 were nine sen per unit for the Public Savings Fund and two sen per unit for the Public Focus Select Fund. It declared a gross distribution of three sen for the Public Islamic Enhanced Bond Fund.
Public Mutual’s chief executive officer Yeoh Kim Hong said all the three funds had delivered respectable returns to its investors.
“Public Savings Fund and Public Focus Select Fund have recorded one-year double-digit returns of 17.94% and 25.77% respectively for the period ended Dec 3, 2010. Both funds are open for EPF Members Investment Scheme,” she said.
Public Savings Fund, launched in 1981, is the company’s maiden fund. The investment strategy of the fund is to achieve long-term capital appreciation and at the same time produce a reasonable level of income. Public Focus Select Fund, launched in 2004, targets capital growth through investments in medium-sized companies in terms of market capitalisation from diversified economic sectors.
Public Islamic Enhanced Bond Fund, launched in 2006, recorded a one-year return of 4.88% for the same period.
The Shariah-compliant bond fund targets to provide a combination of annual income and modest capital growth primarily through a portfolio allocation across Islamic debt securities and equities that comply with Shariah requirements.
Written by Joseph Chin
It said on Thursday, Dec 30 the total gross distributions declared for the financial year ending Dec 31, 2010 were nine sen per unit for the Public Savings Fund and two sen per unit for the Public Focus Select Fund. It declared a gross distribution of three sen for the Public Islamic Enhanced Bond Fund.
Public Mutual’s chief executive officer Yeoh Kim Hong said all the three funds had delivered respectable returns to its investors.
“Public Savings Fund and Public Focus Select Fund have recorded one-year double-digit returns of 17.94% and 25.77% respectively for the period ended Dec 3, 2010. Both funds are open for EPF Members Investment Scheme,” she said.
Public Savings Fund, launched in 1981, is the company’s maiden fund. The investment strategy of the fund is to achieve long-term capital appreciation and at the same time produce a reasonable level of income. Public Focus Select Fund, launched in 2004, targets capital growth through investments in medium-sized companies in terms of market capitalisation from diversified economic sectors.
Public Islamic Enhanced Bond Fund, launched in 2006, recorded a one-year return of 4.88% for the same period.
The Shariah-compliant bond fund targets to provide a combination of annual income and modest capital growth primarily through a portfolio allocation across Islamic debt securities and equities that comply with Shariah requirements.
Written by Joseph Chin
SUNWAY - Real construction growth forecasted at 4pc
Stock Name: SUNWAY
Company Name: SUNWAY HOLDINGS BHD
Research House: OSK
Real construction growth for 2011 has been projected at four per cent, OSK Research said in its 2011 report.
It re-rated valuations upwards for the construction sector fuelled by the possibility of an early general election, implementation of the proposed projects under the Economic Transformation Programme and Budget 2011.
In its research note, OSK Research said the top pick was Sunway with a target price of RM2.72 and within the small cap space, AZRB, with a target price of RM1.51.
"Investors should pick Gamuda (TP: RM4.31) for the euphoria over the proposed MRT. Lastly, we recommend Naim (TP: RM5.10) for the Sarawak theme," OSK Research said.
In its overview of the construction sector, OSK Research said it was a constructive year for the construction sector.
"The KL Construction Index chalked up a year-to-date return of 24 per cent," it said, adding that a reduction was however expected for 2011 and 2012 development expenditure which would be negative for the sector.
"For 2011, development expenditure is targeted at RM48.5 billion, down 9 per cent year-on-year (y-o-y).
"We expect the negatives of lower development expenditure to be offset by more jobs being implemented via private finance incentives (PFI)," OSK Research added.
It said the momentum of contract awards would continue into 2011 and conservatively set domestic job wins at an estimated RM15 billion.
"Jan-Oct domestic contract awards totalled RM12.1 billion (+66.8 per cent y-o-y) and is very likely to surpass 2010 target of RM13 billion," OSK Research elaborated.
Company Name: SUNWAY HOLDINGS BHD
Research House: OSK
Real construction growth for 2011 has been projected at four per cent, OSK Research said in its 2011 report.
It re-rated valuations upwards for the construction sector fuelled by the possibility of an early general election, implementation of the proposed projects under the Economic Transformation Programme and Budget 2011.
In its research note, OSK Research said the top pick was Sunway with a target price of RM2.72 and within the small cap space, AZRB, with a target price of RM1.51.
"Investors should pick Gamuda (TP: RM4.31) for the euphoria over the proposed MRT. Lastly, we recommend Naim (TP: RM5.10) for the Sarawak theme," OSK Research said.
In its overview of the construction sector, OSK Research said it was a constructive year for the construction sector.
"The KL Construction Index chalked up a year-to-date return of 24 per cent," it said, adding that a reduction was however expected for 2011 and 2012 development expenditure which would be negative for the sector.
"For 2011, development expenditure is targeted at RM48.5 billion, down 9 per cent year-on-year (y-o-y).
"We expect the negatives of lower development expenditure to be offset by more jobs being implemented via private finance incentives (PFI)," OSK Research added.
It said the momentum of contract awards would continue into 2011 and conservatively set domestic job wins at an estimated RM15 billion.
"Jan-Oct domestic contract awards totalled RM12.1 billion (+66.8 per cent y-o-y) and is very likely to surpass 2010 target of RM13 billion," OSK Research elaborated.
QL - Consumer spending to remain resilient in 2011
Stock Name: QL
Company Name: QL RESOURCES BHD
Research House: RHB
Consumer sector
Maintain neutral: The government recently raised the prices of petrol and sugar by 2.7% and 2.8% respectively, and we expect a similar hike to follow in 1H2011, in line with its plan to reduce subsidies every six months. Due to the gradual and small nature of the subsidy reduction, we believe that it will have a minimal impact on consumer spending, which RHB Research Institute projects will grow by 5.4% in 2011 (against 5.6% estimated for 2010).
The stable consumer spending growth outlook of 5.4% will provide a growth platform for the retail stocks under our coverage that derive their revenues locally. We expect Aeon's ('market perform', fair value = RM6.47) same store sales (SSS) to grow at 3.5% in 2011 (2010: 2.5%). Parkson, on the other hand, will continue to ride on China's strong consumer spending growth in 2011 (2010: 10%), which is expected to grow by 9.4%, according to consensus estimates.
We believe domestic demand for F&B products such as those manufactured and distributed by CI Holdings ('outperform', FV = RM4.90), KFCH ('market perform', FV = RM3.85) and QL Resources ('outperform', FV = RM6.50) will continue to be resilient. However, in terms of growth, we expect F&B companies to be driven by expansion in either capacity (CI Holdings), geographical (KFCH), or both (QL Resources).
Dark days continue for the tobacco sub-sector and BAT ('underperform', FV=RM42.92), as the recent hike in excise duty of about 5% per stick effectively raised cigarette prices for both premium and value segments by 7.5% to 9%. We expect the higher cigarette prices, coupled with other government initiatives to reduce smoking, to cause legal total industry volume (TIV) to contract by 6% in 2011. Unlike tobacco, the brewery sub-sector was spared a hike in excise duty in Budget 2011, marking the fifth time in a row duty was not raised. However, Malaysia's excise duty on beer is the second highest in the world after Norway.
Risks include a further drop in consumer disposable income and rising costs of goods and services, reducing spending power.
We maintain our 'neutral' stance on the sector. Our top pick is CI Holdings as we are optimistic on its growth outlook. In our view, the stock is still inexpensive relative to its F&B peers. ' RHB Research Institute Sdn Bhd
Company Name: QL RESOURCES BHD
Research House: RHB
Consumer sector
Maintain neutral: The government recently raised the prices of petrol and sugar by 2.7% and 2.8% respectively, and we expect a similar hike to follow in 1H2011, in line with its plan to reduce subsidies every six months. Due to the gradual and small nature of the subsidy reduction, we believe that it will have a minimal impact on consumer spending, which RHB Research Institute projects will grow by 5.4% in 2011 (against 5.6% estimated for 2010).
The stable consumer spending growth outlook of 5.4% will provide a growth platform for the retail stocks under our coverage that derive their revenues locally. We expect Aeon's ('market perform', fair value = RM6.47) same store sales (SSS) to grow at 3.5% in 2011 (2010: 2.5%). Parkson, on the other hand, will continue to ride on China's strong consumer spending growth in 2011 (2010: 10%), which is expected to grow by 9.4%, according to consensus estimates.
We believe domestic demand for F&B products such as those manufactured and distributed by CI Holdings ('outperform', FV = RM4.90), KFCH ('market perform', FV = RM3.85) and QL Resources ('outperform', FV = RM6.50) will continue to be resilient. However, in terms of growth, we expect F&B companies to be driven by expansion in either capacity (CI Holdings), geographical (KFCH), or both (QL Resources).
Dark days continue for the tobacco sub-sector and BAT ('underperform', FV=RM42.92), as the recent hike in excise duty of about 5% per stick effectively raised cigarette prices for both premium and value segments by 7.5% to 9%. We expect the higher cigarette prices, coupled with other government initiatives to reduce smoking, to cause legal total industry volume (TIV) to contract by 6% in 2011. Unlike tobacco, the brewery sub-sector was spared a hike in excise duty in Budget 2011, marking the fifth time in a row duty was not raised. However, Malaysia's excise duty on beer is the second highest in the world after Norway.
Risks include a further drop in consumer disposable income and rising costs of goods and services, reducing spending power.
We maintain our 'neutral' stance on the sector. Our top pick is CI Holdings as we are optimistic on its growth outlook. In our view, the stock is still inexpensive relative to its F&B peers. ' RHB Research Institute Sdn Bhd
Wednesday, December 29, 2010
Tobacco industry volume may drop 8pc: OSK
OSK Research is projecting an eight per cent drop in tobacco industry volume which will result in tobacco manufacturers experiencing an earnings decline of between five per cent and ten per cent next year.
The research house said its slightly higher natural attrition rate for tobacco consumption was mainly due to more smokers kicking the habit owing to the currently high price of cigarettes, it said in its research note today.
A steep hike in the excise duty of cigarettes, of as much as three sen per stick a week before 2011 Budget, made tobacco manufacturers revise selling price by more than the quantum of duty increase in order to pass on the cost to consumers.
'In view of that, we expect the sector to see higher selling prices in downtrading to value-for-money brands from premium brands, a greater incidence of illicit trade and a greater likelihood of brand switching next year.
'We think the resulting higher selling prices of a pack of cigarettes, at RM10, would curb the consumption and further encourage the proliferation of illicit cigarettes next year.
'Keeping our bearish view, we maintain our underweight recommendation for the sector,' OSK added.
The research house said its slightly higher natural attrition rate for tobacco consumption was mainly due to more smokers kicking the habit owing to the currently high price of cigarettes, it said in its research note today.
A steep hike in the excise duty of cigarettes, of as much as three sen per stick a week before 2011 Budget, made tobacco manufacturers revise selling price by more than the quantum of duty increase in order to pass on the cost to consumers.
'In view of that, we expect the sector to see higher selling prices in downtrading to value-for-money brands from premium brands, a greater incidence of illicit trade and a greater likelihood of brand switching next year.
'We think the resulting higher selling prices of a pack of cigarettes, at RM10, would curb the consumption and further encourage the proliferation of illicit cigarettes next year.
'Keeping our bearish view, we maintain our underweight recommendation for the sector,' OSK added.
FBM KLCI just 8 pts away from historic high
KUALA LUMPUR: The FBM KLCI advanced on Wednesday, Dec 29, chalking up more than six points at the midday break to 1,523.61 but the benchmark index was still eight points away from the all-time intra-day high of 1,531.99 on Nov 9.
At 12.30pm, the FBM KLCI was up 0.41% or 6.17 points to 1,523.61, lifted by index-linked PLANTATION [] stocks that advanced on still favourable crude palm oil prices, as well as key blue chips including Genting and DiGi. The index had earlier risen to its intra-morning high of 1,526.93.
Gainers led losers by 378 to 269, while 288 counters traded unchanged. Volume was 417.08 million shares valued at RM607.83 million.
Key regional markets rose on bargain hunting activities earlier in the day before profit taking set in as investors wary of the weaker data from US and the holiday-shortened trading week at key regional markets are reluctant to take positions ahead of the year-end holidays.
The ringgit strengthened 0.06% to 3.0925 versus the US dollar; crude palm oil for the third month delivery eased RM28 per tonne to RM3,750, crude oil fell 18 cents per barrel to US$91.31 while gold lost US$2.02 per troy ounce to US$1,403.88.
At the regional markets, Hong Kong's Hang Seng Index jumped 1.04% to 22,856.00, Singapore's Straits Times Index rose 0.69% to 3,205.70, Japan's Nikkei 225 added 0.44% to 10,337.79, South Korea's Kospi rose 0.30% to 2,039.34, Taiwan's Taiex edged up 0.02% to 8,872.83 while the Shanghai Composite Index was up 0.10% to 2,735.82.
At Bursa Malaysia, the top gainer was BAT that added 64 sen to RM45.20; PPB and Hap Seng added 30 sen each to RM17.40 and RM6.89, CBIP rose 26 sen to RM3.95, Tradewinds Plantations was up 21 sen to RM3.31, and KLK, DiGi and Padini gained 20 sen each to RM22.84, RM25.14 and RM5.45 respectively
Genting rose 10 sen to RM11.08 while Sime Darby and Genting Plantations gained seven sen each to RM8.84 and RM8.85.
Mudajaya added 14 sen to 4.35. Tejari was the most actively traded counter this morning with 18.35 million shares done. The stock shed two sen to 17.5 sen.
Other actives included Compugates, Maxbiz, JAKS, Timecom, Olympia and CIMB.
The top loser was QSR that fell 14 sen to RM5.19; The Store lost 12 sen to RM2.48, MPI fell nine sen to RM5.60, Latexx lost eight sen to RM2.55 while Warisan and Lafarge fell seven sen each to RM2.40 and RM7.90.
At 12.30pm, the FBM KLCI was up 0.41% or 6.17 points to 1,523.61, lifted by index-linked PLANTATION [] stocks that advanced on still favourable crude palm oil prices, as well as key blue chips including Genting and DiGi. The index had earlier risen to its intra-morning high of 1,526.93.
Gainers led losers by 378 to 269, while 288 counters traded unchanged. Volume was 417.08 million shares valued at RM607.83 million.
Key regional markets rose on bargain hunting activities earlier in the day before profit taking set in as investors wary of the weaker data from US and the holiday-shortened trading week at key regional markets are reluctant to take positions ahead of the year-end holidays.
The ringgit strengthened 0.06% to 3.0925 versus the US dollar; crude palm oil for the third month delivery eased RM28 per tonne to RM3,750, crude oil fell 18 cents per barrel to US$91.31 while gold lost US$2.02 per troy ounce to US$1,403.88.
At the regional markets, Hong Kong's Hang Seng Index jumped 1.04% to 22,856.00, Singapore's Straits Times Index rose 0.69% to 3,205.70, Japan's Nikkei 225 added 0.44% to 10,337.79, South Korea's Kospi rose 0.30% to 2,039.34, Taiwan's Taiex edged up 0.02% to 8,872.83 while the Shanghai Composite Index was up 0.10% to 2,735.82.
At Bursa Malaysia, the top gainer was BAT that added 64 sen to RM45.20; PPB and Hap Seng added 30 sen each to RM17.40 and RM6.89, CBIP rose 26 sen to RM3.95, Tradewinds Plantations was up 21 sen to RM3.31, and KLK, DiGi and Padini gained 20 sen each to RM22.84, RM25.14 and RM5.45 respectively
Genting rose 10 sen to RM11.08 while Sime Darby and Genting Plantations gained seven sen each to RM8.84 and RM8.85.
Mudajaya added 14 sen to 4.35. Tejari was the most actively traded counter this morning with 18.35 million shares done. The stock shed two sen to 17.5 sen.
Other actives included Compugates, Maxbiz, JAKS, Timecom, Olympia and CIMB.
The top loser was QSR that fell 14 sen to RM5.19; The Store lost 12 sen to RM2.48, MPI fell nine sen to RM5.60, Latexx lost eight sen to RM2.55 while Warisan and Lafarge fell seven sen each to RM2.40 and RM7.90.
Tambun Indah finalising land acquisitions, plans project on Penang with GDV of RM178m
KUALA LUMPUR: A leading property developer in Penang, Tambun Indah Land Bhd is finalising the acquisition of two pieces of land in the northern state to add to its current landbank of more than 200 acres while planning to venture into the Klang Valley in the near future.
Tambun Indah managing director Teh Kiak Seng said the group had identified a piece of land in Penang island measuring over four acres with estimated gross development value (GDV) of RM170 million as well as another piece of land with similar size in the mainland with a much lower GDV of RM8 million.
He said the group hoped the acquisitions could be completed in the next few months.
"We are actually looking at land all the time. It is important to get quality land so that you can be visible and get good return for it," he said during the launch of the group's prospectus for its initial public offering on Wednesday, Dec 29.
Tambun Indah's IPO involved a public issue of 32 million new ordinary shares of 50 sen each comprising of 11.05 million new shares for application by the Malaysian public, another 11.05 million shares for application by eligible directors, employees and business associates as well as 9.9 million new shares for application by investors via placement at an issue price of 70 sen apiece.
The group is also offering to sell 22.1 million ordinary shares of 50 sen each for application by bumiputera investors. It is expected to be listed on the Main Market of Bursa Malaysia Securities on Jan 18, 2011.
Tambun Indah managing director Teh Kiak Seng said the group had identified a piece of land in Penang island measuring over four acres with estimated gross development value (GDV) of RM170 million as well as another piece of land with similar size in the mainland with a much lower GDV of RM8 million.
He said the group hoped the acquisitions could be completed in the next few months.
"We are actually looking at land all the time. It is important to get quality land so that you can be visible and get good return for it," he said during the launch of the group's prospectus for its initial public offering on Wednesday, Dec 29.
Tambun Indah's IPO involved a public issue of 32 million new ordinary shares of 50 sen each comprising of 11.05 million new shares for application by the Malaysian public, another 11.05 million shares for application by eligible directors, employees and business associates as well as 9.9 million new shares for application by investors via placement at an issue price of 70 sen apiece.
The group is also offering to sell 22.1 million ordinary shares of 50 sen each for application by bumiputera investors. It is expected to be listed on the Main Market of Bursa Malaysia Securities on Jan 18, 2011.
Saturday, December 25, 2010
理财
理财即对于财产(包含有形财产和无形财产=知识产权)的经营。多用于个人对于个人财产或家庭财产的经营，是指个人或机构根据个人或机构当前的实际经济状况,设定想要达成的经济目标,在限定的时限内采用一类或多类金融投资工具,通过一种或多种途径达成其经济目标的计划、规划或解决方案。在具体实施该规划方案的过程，也称理财。
这是大家都明白的道理。
baidu搜索可以着到一大片的关于理财的信息，但是我经过很长时间的琢磨，
其实，对于我们老板性最根本的是——如何用好它（货币）和 如何让它升值！
这才是老板性真正关心的。
外国的那些大鳄挂掉于大多数老百姓无关（不炒股和进行投机性的使用货币），
百度解释：【理财的含义】 一般人谈到理财，想到的不是投资，就是赚钱。实际上理财的范围很广，理财是理一生的财，也就是个人一生的现金流量与风险管理。包含以下涵义：
① 理财是理一生的财，不是解决燃眉之急的金钱问题而已。
② 理财是现金流量管理，每一个人一出生就需要用钱（现金流出）、也需要赚钱来产生现金流入。因此不管现在是否有钱，每一个人都需要理财。
③ 理财也涵盖了风险管理。因为未来的更多流量具有不确定性，包括人身风险、财产风险与市场风险，都会影响到现金流入（收入中断风险）或现金流出（费用递增风险）。
当然这跟老板性不算远，老百姓性不懂理财，老百姓却最懂理财！
理财有这几种；
赚钱--收入 用钱--支出 存钱--资产 借钱--负债
省钱--节税 护钱--保险与信托
真正跟老百姓密切相关的是：赚钱--收入 用钱--支出 存钱--资产 借钱--负债
省钱--节税：即使这小子不逃税，他老子知道不捶死他！ 纳税是老百姓最基本的尝试，当然交多少由当地的城管部门的
态度来决定！
赚钱--收入：老百姓的想法很简单——以前是吃饱穿暖，现在不是，而是如何赚钱买房！
存钱--资产：也是为了买房，由个漂亮媳妇。
用钱--支出 ：真正的会用钱的还是纳税人，100元的可以说道75元甚至是更少,你能说老百姓不是理财高手！
借钱--负债：呵呵，我说不许打我！——————也是为了买房！
买了半天的官司，其实理财很简单。
就是实现自己乃至理一生的财，不是解决燃眉之急的金钱问题而已。理财是现金流量管理，每一个人一出生就需要用钱（现金流出）、也需
要赚钱来产生现金流入。因此不管现在是否有钱，每一个人都需要理财。
我站在老百姓的立场上，其实老百姓的不是自私，不是无知，不是愚昧。其实是想让自己过得更好（过上小康生活，不比邻居差一截）！
简单的说是为了生存！
说的有点片面！这只是我个人的观点！
说一些有根据的！
【理财投资的热点】
理财投资可谓热点众多，归纳起来主要在八个方面：
■炒金：
自从中国银行在上海推出专门针对个人投资者的“黄金宝”业务之后，炒金一直是个人理财市场的热点，备受投资者们的关注和青睐。特别是近两年，国际黄金价格持续上涨。可以预见，随着国内黄金投资领域的逐步开放，未来黄金需求的增长潜力是巨大的。特别是在2004年以后，国内黄金饰品的标价方式将逐渐由价费合一改为价费分离，黄金饰品5%的消费税也有望取消，这些都将大大地推动黄金投资量的提升，炒金业务也必将成为个人理财领域的一大亮点，真正步入投资理财的黄金时期。
■基金：
自1997年首批封闭式基金成功发行至今，基金一直备受国内个人投资者的推崇，去年基金已经明显超过存款，成为投资理财众多看点中的重中之重。据有关资料，今年国内基金净值已近2000亿元，占到A股股票流通水平的10%以上。许多投资者们依然十分看好基金的收益稳定、风险较小等优势和特点，希望能够通过基金的投资以获得理想的收益。
■炒股：
国内股票市场资金供求形势相对乐观，这对于资金推动型的中国股市无疑是打了一剂强心针。再加上中国证监会对上市公司的业绩计算、融资额等提出了更加严格的要求，加强了对股市的调控，这将给投资者带来赢利的机会。但不管怎么样，股市的最大特点就是不确定性，机会与风险是并存的。因此，投资者应继续保持谨慎态度，看准时机再进行投资。
■国债：
2005年是国债市场的创新之年，不仅增加了国债品种，使广大投资者能有更多的选择。对国债发行方式也进行了新的尝试和改革，进一步提高了国债发行的市场化水平，以尽量减少非市场化因素的干扰。另外，国债的二级市场也将成为明年的发展重点。由此可见，国债的这一系列创新之举，必将为投资者们带来更多的投资选择和更大的获利空间。
■储蓄：
多年来，储蓄作为一种传统的理财方式，早已根深蒂固于人们的思想观念之中。大多数居民目前仍然将储蓄作为理财的首选。一方面因为外资流入中国势头仍较旺盛，我国基础货币供应量增加；另一方面政府为了适度控制物价指数和通货膨胀率的上升，采取提升利率手段，再加上利率的浮动区间进一步扩大。利率的上升，必将刺激储蓄额的增加。
■债券：
近年来，债券市场的火爆令人始料不及。种种迹象表明，2005年企业债券发行仍有提速的可能，企业可转换债券、浮息债券、银行次级债券等都将可能成为人们很好的投资品种。再加上银监会将次级定期债务计入附属资本，以增补商业银行的资本构成，使银行发债呼之欲出，将为债券市场的再度火爆，起到推波助澜的作用。
■外汇：
近年来美元汇率的持续下降，使越来越多的人们通过个人外汇买卖，获得了不菲的收益，也使汇市一度异常火爆。各种外汇理财品种也相继推出，如商业银行的汇市通、中国银行和农业银行的外汇宝、建设银行的速汇通等，供投资者选择。明年，我国政府将会继续坚持人民币稳定的原则，采取人民币与外汇挂钩以及加大企业的外汇自主权等措施，以促进汇市的健康发展。因此，有关专家分析，明年在汇市上投资获利的空间将会更大，机会也会更多。
■保险：
与其他不温不火的保险市场相比，收益类险种一经推出，便备受人们追捧。收益类险种一般品种较多，它不仅具备保险最基本的保障功能，而且能够给投资者带来不菲的收益，可谓保障与投资双赢。因此，购买收益类险种有望成为个人的一个新的投资理财热点。
这是大家都明白的道理。
baidu搜索可以着到一大片的关于理财的信息，但是我经过很长时间的琢磨，
其实，对于我们老板性最根本的是——如何用好它（货币）和 如何让它升值！
这才是老板性真正关心的。
外国的那些大鳄挂掉于大多数老百姓无关（不炒股和进行投机性的使用货币），
百度解释：【理财的含义】 一般人谈到理财，想到的不是投资，就是赚钱。实际上理财的范围很广，理财是理一生的财，也就是个人一生的现金流量与风险管理。包含以下涵义：
① 理财是理一生的财，不是解决燃眉之急的金钱问题而已。
② 理财是现金流量管理，每一个人一出生就需要用钱（现金流出）、也需要赚钱来产生现金流入。因此不管现在是否有钱，每一个人都需要理财。
③ 理财也涵盖了风险管理。因为未来的更多流量具有不确定性，包括人身风险、财产风险与市场风险，都会影响到现金流入（收入中断风险）或现金流出（费用递增风险）。
当然这跟老板性不算远，老百姓性不懂理财，老百姓却最懂理财！
理财有这几种；
赚钱--收入 用钱--支出 存钱--资产 借钱--负债
省钱--节税 护钱--保险与信托
真正跟老百姓密切相关的是：赚钱--收入 用钱--支出 存钱--资产 借钱--负债
省钱--节税：即使这小子不逃税，他老子知道不捶死他！ 纳税是老百姓最基本的尝试，当然交多少由当地的城管部门的
态度来决定！
赚钱--收入：老百姓的想法很简单——以前是吃饱穿暖，现在不是，而是如何赚钱买房！
存钱--资产：也是为了买房，由个漂亮媳妇。
用钱--支出 ：真正的会用钱的还是纳税人，100元的可以说道75元甚至是更少,你能说老百姓不是理财高手！
借钱--负债：呵呵，我说不许打我！——————也是为了买房！
买了半天的官司，其实理财很简单。
就是实现自己乃至理一生的财，不是解决燃眉之急的金钱问题而已。理财是现金流量管理，每一个人一出生就需要用钱（现金流出）、也需
要赚钱来产生现金流入。因此不管现在是否有钱，每一个人都需要理财。
我站在老百姓的立场上，其实老百姓的不是自私，不是无知，不是愚昧。其实是想让自己过得更好（过上小康生活，不比邻居差一截）！
简单的说是为了生存！
说的有点片面！这只是我个人的观点！
说一些有根据的！
【理财投资的热点】
理财投资可谓热点众多，归纳起来主要在八个方面：
■炒金：
自从中国银行在上海推出专门针对个人投资者的“黄金宝”业务之后，炒金一直是个人理财市场的热点，备受投资者们的关注和青睐。特别是近两年，国际黄金价格持续上涨。可以预见，随着国内黄金投资领域的逐步开放，未来黄金需求的增长潜力是巨大的。特别是在2004年以后，国内黄金饰品的标价方式将逐渐由价费合一改为价费分离，黄金饰品5%的消费税也有望取消，这些都将大大地推动黄金投资量的提升，炒金业务也必将成为个人理财领域的一大亮点，真正步入投资理财的黄金时期。
■基金：
自1997年首批封闭式基金成功发行至今，基金一直备受国内个人投资者的推崇，去年基金已经明显超过存款，成为投资理财众多看点中的重中之重。据有关资料，今年国内基金净值已近2000亿元，占到A股股票流通水平的10%以上。许多投资者们依然十分看好基金的收益稳定、风险较小等优势和特点，希望能够通过基金的投资以获得理想的收益。
■炒股：
国内股票市场资金供求形势相对乐观，这对于资金推动型的中国股市无疑是打了一剂强心针。再加上中国证监会对上市公司的业绩计算、融资额等提出了更加严格的要求，加强了对股市的调控，这将给投资者带来赢利的机会。但不管怎么样，股市的最大特点就是不确定性，机会与风险是并存的。因此，投资者应继续保持谨慎态度，看准时机再进行投资。
■国债：
2005年是国债市场的创新之年，不仅增加了国债品种，使广大投资者能有更多的选择。对国债发行方式也进行了新的尝试和改革，进一步提高了国债发行的市场化水平，以尽量减少非市场化因素的干扰。另外，国债的二级市场也将成为明年的发展重点。由此可见，国债的这一系列创新之举，必将为投资者们带来更多的投资选择和更大的获利空间。
■储蓄：
多年来，储蓄作为一种传统的理财方式，早已根深蒂固于人们的思想观念之中。大多数居民目前仍然将储蓄作为理财的首选。一方面因为外资流入中国势头仍较旺盛，我国基础货币供应量增加；另一方面政府为了适度控制物价指数和通货膨胀率的上升，采取提升利率手段，再加上利率的浮动区间进一步扩大。利率的上升，必将刺激储蓄额的增加。
■债券：
近年来，债券市场的火爆令人始料不及。种种迹象表明，2005年企业债券发行仍有提速的可能，企业可转换债券、浮息债券、银行次级债券等都将可能成为人们很好的投资品种。再加上银监会将次级定期债务计入附属资本，以增补商业银行的资本构成，使银行发债呼之欲出，将为债券市场的再度火爆，起到推波助澜的作用。
■外汇：
近年来美元汇率的持续下降，使越来越多的人们通过个人外汇买卖，获得了不菲的收益，也使汇市一度异常火爆。各种外汇理财品种也相继推出，如商业银行的汇市通、中国银行和农业银行的外汇宝、建设银行的速汇通等，供投资者选择。明年，我国政府将会继续坚持人民币稳定的原则，采取人民币与外汇挂钩以及加大企业的外汇自主权等措施，以促进汇市的健康发展。因此，有关专家分析，明年在汇市上投资获利的空间将会更大，机会也会更多。
■保险：
与其他不温不火的保险市场相比，收益类险种一经推出，便备受人们追捧。收益类险种一般品种较多，它不仅具备保险最基本的保障功能，而且能够给投资者带来不菲的收益，可谓保障与投资双赢。因此，购买收益类险种有望成为个人的一个新的投资理财热点。
Wednesday, December 22, 2010
Bursa Malaysia: KNM up on RM2.2b UK job; AmResearch ups TP to RM3.45
KUALA LUMPUR: KNM GROUP BHD [] shares advanced on Wednesday, Dec 22 after its wholly-owned subsidiary KNM Process Systems Sdn Bhd secured a contract worth ''450 million (RM2.196 billion) to develop an 80MWe gross capacity biomass and waste recycling centre project in Peterborough, United Kingdom.
At 9.35am, KNM was 18 sen to RM2.87 with 12.5 million shares done.
KNM said that the contract for the EnergyPark Peterborough was with Peterborough Renewable Energy Limited, and the duration was for four years from the commencement date.
AmResearch Sdn Bhd maintained its Buy call on KNM with a higher fair value of RM3.45 (versus RM2.12 previously), given reaccelerated order flows.
'While we have not factored in the new contract into our forecasts, our fair value on the stock is raised based on an unchanged CY11F PE of 14 times, while our FY11F-FY12F earnings are raised by 38%-50%,'it said.
At 9.35am, KNM was 18 sen to RM2.87 with 12.5 million shares done.
KNM said that the contract for the EnergyPark Peterborough was with Peterborough Renewable Energy Limited, and the duration was for four years from the commencement date.
AmResearch Sdn Bhd maintained its Buy call on KNM with a higher fair value of RM3.45 (versus RM2.12 previously), given reaccelerated order flows.
'While we have not factored in the new contract into our forecasts, our fair value on the stock is raised based on an unchanged CY11F PE of 14 times, while our FY11F-FY12F earnings are raised by 38%-50%,'it said.
Share prices close on firmer note
KUALA LUMPUR: Share prices on Bursa Malaysia ended Tuesday, Dec 21 on a firmer note, boosted by fresh buying interest from investors following positive corporate news including several takeover offers within the industry, dealers said.
The FTSE Bursa Malaysia KLCI (FBM KLCI) rose 9.3 points to 1,505.18, pushed by gains mostly in PLUS Expressways following the fourth new bid on Monday involving a RM26 billion takeover offer for the toll operator.
Besides that, MTD Capital ' which also received a RM1.1 billion takeover bid for all its shares ' was also among the favourite counters on Tuesday.
The benchmark FBM KLCI had earlier opened 2.47 points higher at 1,498.35.
Throughout the day, it moved between 1,497.81 and 1,510.24.
Another boost was from TELEKOM MALAYSIA BHD [], just upgraded to Overweight by Morgan Stanley Research which cited expectations of high dividend yields. It also replaced Axiata in the latter's regional top picks list.
Meanwhile, the Finance Index surged 51.47 points to 13,821.81, the PLANTATION [] Index increased to 11.52 points to 7,868.5 and the INDUSTRIAL INDEX [] rose 9.56 points to 2,798.37.
The FBM Emas Index jumped 77.989 points to 10,300.47, the FBM 70 Index was 110.15 points higher at 10,875.98, the FBMT100 increased 70.63 points to 10,040.41 and FBM Ace Index rose 66.45 points to 4,310.43.
Gainers outnumbered losers by 539 to 256, while 284 counters were unchanged, 313 untraded and 29 others suspended.
The market breadth was positive with total volume rising to 1.361 billion shares worth RM1.87 billion compared to Monday's closing volume of 1.05 billion shares valued at RM1.6 billion. '
The FTSE Bursa Malaysia KLCI (FBM KLCI) rose 9.3 points to 1,505.18, pushed by gains mostly in PLUS Expressways following the fourth new bid on Monday involving a RM26 billion takeover offer for the toll operator.
Besides that, MTD Capital ' which also received a RM1.1 billion takeover bid for all its shares ' was also among the favourite counters on Tuesday.
The benchmark FBM KLCI had earlier opened 2.47 points higher at 1,498.35.
Throughout the day, it moved between 1,497.81 and 1,510.24.
Another boost was from TELEKOM MALAYSIA BHD [], just upgraded to Overweight by Morgan Stanley Research which cited expectations of high dividend yields. It also replaced Axiata in the latter's regional top picks list.
Meanwhile, the Finance Index surged 51.47 points to 13,821.81, the PLANTATION [] Index increased to 11.52 points to 7,868.5 and the INDUSTRIAL INDEX [] rose 9.56 points to 2,798.37.
The FBM Emas Index jumped 77.989 points to 10,300.47, the FBM 70 Index was 110.15 points higher at 10,875.98, the FBMT100 increased 70.63 points to 10,040.41 and FBM Ace Index rose 66.45 points to 4,310.43.
Gainers outnumbered losers by 539 to 256, while 284 counters were unchanged, 313 untraded and 29 others suspended.
The market breadth was positive with total volume rising to 1.361 billion shares worth RM1.87 billion compared to Monday's closing volume of 1.05 billion shares valued at RM1.6 billion. '
PLUS - PLUS raised to 'trading buy' at RM5.20
Stock Name: PLUS
Company Name: PLUS EXPRESSWAYS BHD
Research House: RHB
PLUS Expressways Bhd, Malaysia's biggest toll road operator, was upgraded to "trading buy" from "underperform" at RHB Research Institute Sdn Bhd after receiving a RM26 billion takeover offer from Jelas Ulung Sdn Bhd, topping a rival bid.
The fair value was raised to RM5.20 from RM4.60 to "match the latest offer," Lim Tee Yang, an analyst at RHB Research said in a report today.
Company Name: PLUS EXPRESSWAYS BHD
Research House: RHB
PLUS Expressways Bhd, Malaysia's biggest toll road operator, was upgraded to "trading buy" from "underperform" at RHB Research Institute Sdn Bhd after receiving a RM26 billion takeover offer from Jelas Ulung Sdn Bhd, topping a rival bid.
The fair value was raised to RM5.20 from RM4.60 to "match the latest offer," Lim Tee Yang, an analyst at RHB Research said in a report today.
DIALOG - Dialog price estimate lifted to RM2.20
Stock Name: DIALOG
Company Name: DIALOG GROUP BHD
Research House: CIMB
Dialog Group Bhd was raised to "outperform" from "underperform" at CIMB Investment Bank Bhd to reflect the Malaysian oil and gas services provider's earnings growth prospects.
The share price estimate was increased to RM2.20 from RM1.10, Norziana Mohd Inon, an analyst at CIMB said in a report today.
Company Name: DIALOG GROUP BHD
Research House: CIMB
Dialog Group Bhd was raised to "outperform" from "underperform" at CIMB Investment Bank Bhd to reflect the Malaysian oil and gas services provider's earnings growth prospects.
The share price estimate was increased to RM2.20 from RM1.10, Norziana Mohd Inon, an analyst at CIMB said in a report today.
Monday, December 20, 2010
IJM at 43-month high, a 'neutral' at OSK
Stock Name: IJM
Company Name: IJM CORPORATION BHD
Research House: OSK
IJM Corp, a Malaysian builder and property group, rose to its highest level in almost four years after winning a RM460.6 million building contract from Naza TTDI Construction Sdn Bhd.
The stock climbed 2.7 per cent to RM6.44 at 11:09 a.m. local time, set for its highest close since May 3, 2007.
Meanwhile, OSK Research Sdn Bhd said it was keeping the earnings forecast unchanged for IJM Corp for the financial year 2011 but raised the numbers for financial year 2012-2013 between one per cent and six per cent.
Last Friday, IJM announced it won a RM461 million contract for phase three of the Platinum Park development by Naza TTDI.
The job scope for Platinum Park involves two office tower blocks, podium car parks and basement car parks which is scheduled for completion by December 2013 and will feed into IJM's financial year 2011-2014 earnings.
"Jobs won so far, into financial year 2011, totalling RM1.84 billion, have beaten our RM1.5 billion target," it said in a research note today.
Potential jobs in the pipeline include high-rise buildings in Kuala Lumpur, Kelau Dam, West Coast Expressway and Light Rail Transit packages.
"Given IJM's track record in high-rise buildings in the city centre, we believe it stands a chance of participating in the 100-storey Warisan Merdeka tower, which is expected to cost RM2.5 billion to RM3 billion," it added.
OSK maintained a "neutral" call on IJM given the limited 5.2 per cent upside
Read more: IJM at 43-month high, a 'neutral' at OSK
Company Name: IJM CORPORATION BHD
Research House: OSK
IJM Corp, a Malaysian builder and property group, rose to its highest level in almost four years after winning a RM460.6 million building contract from Naza TTDI Construction Sdn Bhd.
The stock climbed 2.7 per cent to RM6.44 at 11:09 a.m. local time, set for its highest close since May 3, 2007.
Meanwhile, OSK Research Sdn Bhd said it was keeping the earnings forecast unchanged for IJM Corp for the financial year 2011 but raised the numbers for financial year 2012-2013 between one per cent and six per cent.
Last Friday, IJM announced it won a RM461 million contract for phase three of the Platinum Park development by Naza TTDI.
The job scope for Platinum Park involves two office tower blocks, podium car parks and basement car parks which is scheduled for completion by December 2013 and will feed into IJM's financial year 2011-2014 earnings.
"Jobs won so far, into financial year 2011, totalling RM1.84 billion, have beaten our RM1.5 billion target," it said in a research note today.
Potential jobs in the pipeline include high-rise buildings in Kuala Lumpur, Kelau Dam, West Coast Expressway and Light Rail Transit packages.
"Given IJM's track record in high-rise buildings in the city centre, we believe it stands a chance of participating in the 100-storey Warisan Merdeka tower, which is expected to cost RM2.5 billion to RM3 billion," it added.
OSK maintained a "neutral" call on IJM given the limited 5.2 per cent upside
Read more: IJM at 43-month high, a 'neutral' at OSK
Saturday, December 18, 2010
TOPGLOV - Persistent headwinds for Top Glove
Stock Name: TOPGLOV
Company Name: TOP GLOVE CORPORATION BHD
Research House: HWANGDBS
Top Glove Corporation Bhd
( RM5.12)
Maintain fully valued at RM5.45 with revised target price RM4.60 (from RM4.80): Southern Thailand, a major rubber growing area, has been hit by severe flooding since October. This has disrupted transportation, lowered rubber output, and delayed shipments. Unfavourable weather has also affected rubber harvesting in Indonesia, Malaysia and Vietnam. As a result, latex prices hit a record high of RM9.45 per kg, and averaged RM7.35 year-to-date. Top Glove has consistently raised average selling prices (ASPs) in the past three months to keep up with rising latex prices. ASPs (per box of 1,000 pcs) for powdered, powder-free and nitrile gloves now average US$31 (RM97), US$35 and US$33, respectively. But as the ASPs lag latex price hikes, Top Glove is being pressured by rising operating costs, given that 83% of its gloves are made from natural rubber latex.
Demand remains soft as destocking is still ongoing. We understand 1QFY11 sales volume fell 5% quarter-on-quarter and capacity utilisation has fallen to 70% from 75%. Given the excess capacity, Top Glove has again deferred the commissioning of Factory 7 and 21 by three to five months. Latex prices rose 11% in the quarter, and as expected there was a time lag in passing on the higher costs. The greenback has also weakened 2% against the ringgit. Given the persistent headwinds, we cut FY11F earnings per share by 9%.
Maintain 'fully valued' with the target price lowered to RM4.60. We have nudged down our TP to RM4.60 (previously RM4.80), pegged to 13 times CY11 EPS. But demand should start to normalise in the next three months when restocking resumes. ' HwangDBS Vickers Research
Company Name: TOP GLOVE CORPORATION BHD
Research House: HWANGDBS
Top Glove Corporation Bhd
( RM5.12)
Maintain fully valued at RM5.45 with revised target price RM4.60 (from RM4.80): Southern Thailand, a major rubber growing area, has been hit by severe flooding since October. This has disrupted transportation, lowered rubber output, and delayed shipments. Unfavourable weather has also affected rubber harvesting in Indonesia, Malaysia and Vietnam. As a result, latex prices hit a record high of RM9.45 per kg, and averaged RM7.35 year-to-date. Top Glove has consistently raised average selling prices (ASPs) in the past three months to keep up with rising latex prices. ASPs (per box of 1,000 pcs) for powdered, powder-free and nitrile gloves now average US$31 (RM97), US$35 and US$33, respectively. But as the ASPs lag latex price hikes, Top Glove is being pressured by rising operating costs, given that 83% of its gloves are made from natural rubber latex.
Demand remains soft as destocking is still ongoing. We understand 1QFY11 sales volume fell 5% quarter-on-quarter and capacity utilisation has fallen to 70% from 75%. Given the excess capacity, Top Glove has again deferred the commissioning of Factory 7 and 21 by three to five months. Latex prices rose 11% in the quarter, and as expected there was a time lag in passing on the higher costs. The greenback has also weakened 2% against the ringgit. Given the persistent headwinds, we cut FY11F earnings per share by 9%.
Maintain 'fully valued' with the target price lowered to RM4.60. We have nudged down our TP to RM4.60 (previously RM4.80), pegged to 13 times CY11 EPS. But demand should start to normalise in the next three months when restocking resumes. ' HwangDBS Vickers Research
NOTION - Notion Vtec sued over share sale agreement
Stock Name: NOTION
Company Name: NOTION VTEC BHD
Research House: OSK
Notion VTec Bhd
( RM1.62)
Maintain sell at RM1.65 with target price RM1.45: Notion has been served with a writ and statement of claim on behalf of three key personnel of Swiss Impressive Sdn Bhd for the alleged breach by Notion of a share sale agreement dated Dec 10, 2009.
The principal business of Swiss Impressive is in designing, tooling and manufacturing high precision appearance parts for digital cameras and other consumer electronic devices. Notion has 70% equity interest in this subsidiary, while two of the plaintiffs collectively own the remaining 30%. In FY10, Swiss Impressive recorded an unaudited revenue and loss after tax of RM3.5 million and RM300,000 respectively.
In 2009, Notion entered into a share sale agreement with the plaintiffs to dispose of its 70% equity interest in Swiss Impressive to the plaintiffs for RM400,000. Management was of the view the business of Swiss was no longer in line with Notion's present business strategy. The agreement lapsed prior to the completion and finalisation of an audit on Swiss. The suit came about due to the non-completion of the share sale agreement, which the plaintiffs alleged was due to a breach by Notion.
The plaintiffs are claiming RM4.5 million from Notion, but the company has instructed its solicitors to defend the action. This suit is unlikely to have a major impact on Notion. The financial contribution from Swiss to Notion was considered insignificant as Notion recorded RM226.8 million of revenue and RM37.4 million earnings in FY10. On the operations side, Notion had appointed new personnel to manage Swiss. Should Notion lose this case, it would have no problem absorbing the RM4.5 million claim considering that it has a cash hoard of RM36.9 million as at Sept 30.
Due to the poor outlook for the HDD business, possibly until 1Q11, and given the uncertainty over its 2.5' HDD business, we remain cautious and stick to our 'sell' call by pegging its target price at seven times FY11 price-earnings ratio. For FY11, the company will give more priority to the camera business to sustain its uninterrupted earnings growth streak since FY03. It plans to expand its plant in Thailand from 25,000 sq ft to 100,000 sq ft by May 2011, mainly to cater for Nikon and new camera customers. We think it is still too early to factor in any meaningful contribution from the Thai plant expansion. The Thailand plant only contributed revenue of about RM1.4 million for FY10. ' OSK Investment Research
Company Name: NOTION VTEC BHD
Research House: OSK
Notion VTec Bhd
( RM1.62)
Maintain sell at RM1.65 with target price RM1.45: Notion has been served with a writ and statement of claim on behalf of three key personnel of Swiss Impressive Sdn Bhd for the alleged breach by Notion of a share sale agreement dated Dec 10, 2009.
The principal business of Swiss Impressive is in designing, tooling and manufacturing high precision appearance parts for digital cameras and other consumer electronic devices. Notion has 70% equity interest in this subsidiary, while two of the plaintiffs collectively own the remaining 30%. In FY10, Swiss Impressive recorded an unaudited revenue and loss after tax of RM3.5 million and RM300,000 respectively.
In 2009, Notion entered into a share sale agreement with the plaintiffs to dispose of its 70% equity interest in Swiss Impressive to the plaintiffs for RM400,000. Management was of the view the business of Swiss was no longer in line with Notion's present business strategy. The agreement lapsed prior to the completion and finalisation of an audit on Swiss. The suit came about due to the non-completion of the share sale agreement, which the plaintiffs alleged was due to a breach by Notion.
The plaintiffs are claiming RM4.5 million from Notion, but the company has instructed its solicitors to defend the action. This suit is unlikely to have a major impact on Notion. The financial contribution from Swiss to Notion was considered insignificant as Notion recorded RM226.8 million of revenue and RM37.4 million earnings in FY10. On the operations side, Notion had appointed new personnel to manage Swiss. Should Notion lose this case, it would have no problem absorbing the RM4.5 million claim considering that it has a cash hoard of RM36.9 million as at Sept 30.
Due to the poor outlook for the HDD business, possibly until 1Q11, and given the uncertainty over its 2.5' HDD business, we remain cautious and stick to our 'sell' call by pegging its target price at seven times FY11 price-earnings ratio. For FY11, the company will give more priority to the camera business to sustain its uninterrupted earnings growth streak since FY03. It plans to expand its plant in Thailand from 25,000 sq ft to 100,000 sq ft by May 2011, mainly to cater for Nikon and new camera customers. We think it is still too early to factor in any meaningful contribution from the Thai plant expansion. The Thailand plant only contributed revenue of about RM1.4 million for FY10. ' OSK Investment Research
Thursday, December 16, 2010
KNM - KNM jumps to highest since April on target price upgrades
Stock Name: KNM
Company Name: KNM GROUP BHD
Research House: MAYBANK
KUALA LUMPUR: KNM GROUP BHD []' shares and warrants advanced in active trade on Wednesday, Dec 15 after Maybank Investment Bank Bhd Research and OSK Investment Research upgraded their respective target prices for the stock.
At 11.01am, KNM was up 18 sen to RM2.51, the highest since April 20 this year, with 22.5 million shares done.
Its warrants added 1.5 sen to 16 sen with 28.15 million units done.
Maybank IB maintained its buy call on KNM and raised its target price to RM3.10 from RM2.20, while OSK Research said it was raising its target price to RM2.96 from RM2.22.
Maybank IB said it was positive over KNM's JV with Petrosab as East Malaysia fabrication opportunities are huge, riding on PETRONAS' rising domestic capex spend.
The Sabah Oil and Gas Terminal'' and Sipitang CTF projects are some of the JV's targeted projects, it said.
'KNM remains a Buy with a raised 12-month target price of RM3.10 (+41%) as we foresee a sustained recovery outlook, locally and globally.
'Our new target PER is 10 times (previously 9 times) and we roll-over valuations to 2012 earnings,' it said.
Company Name: KNM GROUP BHD
Research House: MAYBANK
KUALA LUMPUR: KNM GROUP BHD []' shares and warrants advanced in active trade on Wednesday, Dec 15 after Maybank Investment Bank Bhd Research and OSK Investment Research upgraded their respective target prices for the stock.
At 11.01am, KNM was up 18 sen to RM2.51, the highest since April 20 this year, with 22.5 million shares done.
Its warrants added 1.5 sen to 16 sen with 28.15 million units done.
Maybank IB maintained its buy call on KNM and raised its target price to RM3.10 from RM2.20, while OSK Research said it was raising its target price to RM2.96 from RM2.22.
Maybank IB said it was positive over KNM's JV with Petrosab as East Malaysia fabrication opportunities are huge, riding on PETRONAS' rising domestic capex spend.
The Sabah Oil and Gas Terminal'' and Sipitang CTF projects are some of the JV's targeted projects, it said.
'KNM remains a Buy with a raised 12-month target price of RM3.10 (+41%) as we foresee a sustained recovery outlook, locally and globally.
'Our new target PER is 10 times (previously 9 times) and we roll-over valuations to 2012 earnings,' it said.
IJM - IJM Corp morphing into infrastructure powerhouse
Stock Name: IJM
Company Name: IJM CORPORATION BHD
Research House: AMMB
IJM Corporation Bhd
( RM6.20)
Maintain buy at RM6.20 with revised fair value of RM7.52 (from RM6.30): We maintain our 'buy' call on IJM Corp Bhd with a higher sum-of-parts (SOP) derived fair value of RM7.52 per share (previously: RM6.30 per share).
IJM Corp is poised to be a key beneficiary of an imminent rollout of the government's Economic Transformation Programme, with an added kicker from the proposed IJM Land-MRCB pact.
IJM Corp's exciting new contract pipeline centres on a few key areas: (i) RM43 billion Klang Valley LRT/MRT; (ii) seven new highways worth RM19 billion (for example, the West Coast Expressway or WCE); (iii) balance of works for the Pahang-Selangor water project (circa RM5 billion); (iv) several mega development proposals within Greater KL (for example PNB's 100-storey tower); and (iv) new infrastructure opportunities in India.
Near-term, an IJM Land-MRCB union provides the impetus for IJM to morph into an integrated infrastructure and property giant ' with the Emplyees Provident Fund as the major shareholder.
First, we expect IJM Corp to play a front-running role in several exciting infrastructure and development projects under the EPF's mandate, including the prized MRB land in Sungai Buloh. This is further solidified by IJM Corp's status as a premium builder of Grade-A buildings that are likely to dominate the Klang Valley skyline.
Second, it could pave the way for IJM Corp to unlock further value via a listing of its infrastructure units (including its Indian highways) and potentially elevate the group to the second largest highway operator in Malaysia after PLUS. Presently, infrastructure assets account for RM1.93 share or 26% of IJM Corp's SOP value.
Just premised on (i) a 20% controlling stake in the IJM Land-MRCB pact and (ii) a 20% stake in WCE Concession/Capex works, IJM Corp's SOP-based value is forecast to rise by 6% to RM7.95 per share along with a near tripling of its order book to RM9.4 billion.
Our FY12F/13F new contract forecasts are raised by 10% to 15% to RM2.2 billion to RM2.5 billion. Construction margins appear to have bottomed ' rising to 5.1% to 8.3% in FY11F/13F (FY10: 2.2%) as legacy jobs are due to be completed by end-FY11.
We recommend a switch away from Gamuda Bhd to IJM Corp for exposure to big-cap construction stocks, given the latter's more exciting news flow and prolific contract pipeline. According to our estimates, every RM500 million of new order book would lift its earnings by 1.4% to 5.6%.
Renewed interest from foreign shareholders, who now control circa 43% of IJM Corp against a peak of more than 60% in 2007, is another re-rating catalyst with a strengthening ringgit.
Company Name: IJM CORPORATION BHD
Research House: AMMB
IJM Corporation Bhd
( RM6.20)
Maintain buy at RM6.20 with revised fair value of RM7.52 (from RM6.30): We maintain our 'buy' call on IJM Corp Bhd with a higher sum-of-parts (SOP) derived fair value of RM7.52 per share (previously: RM6.30 per share).
IJM Corp is poised to be a key beneficiary of an imminent rollout of the government's Economic Transformation Programme, with an added kicker from the proposed IJM Land-MRCB pact.
IJM Corp's exciting new contract pipeline centres on a few key areas: (i) RM43 billion Klang Valley LRT/MRT; (ii) seven new highways worth RM19 billion (for example, the West Coast Expressway or WCE); (iii) balance of works for the Pahang-Selangor water project (circa RM5 billion); (iv) several mega development proposals within Greater KL (for example PNB's 100-storey tower); and (iv) new infrastructure opportunities in India.
Near-term, an IJM Land-MRCB union provides the impetus for IJM to morph into an integrated infrastructure and property giant ' with the Emplyees Provident Fund as the major shareholder.
First, we expect IJM Corp to play a front-running role in several exciting infrastructure and development projects under the EPF's mandate, including the prized MRB land in Sungai Buloh. This is further solidified by IJM Corp's status as a premium builder of Grade-A buildings that are likely to dominate the Klang Valley skyline.
Second, it could pave the way for IJM Corp to unlock further value via a listing of its infrastructure units (including its Indian highways) and potentially elevate the group to the second largest highway operator in Malaysia after PLUS. Presently, infrastructure assets account for RM1.93 share or 26% of IJM Corp's SOP value.
Just premised on (i) a 20% controlling stake in the IJM Land-MRCB pact and (ii) a 20% stake in WCE Concession/Capex works, IJM Corp's SOP-based value is forecast to rise by 6% to RM7.95 per share along with a near tripling of its order book to RM9.4 billion.
Our FY12F/13F new contract forecasts are raised by 10% to 15% to RM2.2 billion to RM2.5 billion. Construction margins appear to have bottomed ' rising to 5.1% to 8.3% in FY11F/13F (FY10: 2.2%) as legacy jobs are due to be completed by end-FY11.
We recommend a switch away from Gamuda Bhd to IJM Corp for exposure to big-cap construction stocks, given the latter's more exciting news flow and prolific contract pipeline. According to our estimates, every RM500 million of new order book would lift its earnings by 1.4% to 5.6%.
Renewed interest from foreign shareholders, who now control circa 43% of IJM Corp against a peak of more than 60% in 2007, is another re-rating catalyst with a strengthening ringgit.
KFC - KFCH fast-tracking growth in India
Stock Name: KFC
Company Name: KFC HOLDINGS (M) BHD
Research House: RHB
KFC Holdings (M) Bhd
( RM3.81)
Upgrade to market perform at RM3.76 with fair value of RM3.85: KFCH announced that it is acquiring 100% of Kernel Foods Pte Ltd, via its subsidiary Pune Chicken Restaurants, by way of acquiring the total equity interest of the latter for RM84,000 and subscribing to an additional RM2.4 million worth of shares.
We understand that Kernel Foods has two KFC restaurants in Pune, India, where KFCH is currently running one of its stores in Deccan Mall. After the completion, KFCH will have three stores in Pune in total. Due to the higher number of stores in the city, KFCH will be able to enjoy more competitive rates from suppliers in terms of supply logistics, which would improve the overall profitability of its stores in India. While we consider this to be a positive move, we prefer to keep our profit margin forecasts for India unchanged for now, until we see some positive synergies coming through.
We believe the total purchase price of RM2.5 million is fair. Based on our previous discussions with management, it usually costs approximately RM1 million to RM1.2 million in set-up costs for KFCH to open a store in India. Furthermore, the direct purchase of the stores reduces the execution risk which is usually associated with opening a new 'greenfield' store. Recall that we previously highlighted that KFCH had some hiccups in opening new stores due to various construction and red-tape issues.
With the completion of the acquisition, KFCH will effectively have seven stores in total in the state of Maharashtra (currently five), which is the only state it is allowed to operate in currently. We consider this purchase as a new store opening, thus the total of seven store openings in FY10 is in line with our assumptions.
we make no change to our forecasts. Risks include: (i) bird/swine flu escalation; (ii) escalation of corn and soyabean prices, which would eat into margins; and (iii) deteriorating consumer spending power, resulting in lower same-store sales (SSS) growth.
We are maintaining our fair value for KFCH at RM3.85, based on unchanged 17 times target FY11 PER. We are, however, upgrading our call on the stock to 'market perform' (from 'underperform' previously) as we believe the downside risk from its current share price is minimal. ' RHB Research Institute
Company Name: KFC HOLDINGS (M) BHD
Research House: RHB
KFC Holdings (M) Bhd
( RM3.81)
Upgrade to market perform at RM3.76 with fair value of RM3.85: KFCH announced that it is acquiring 100% of Kernel Foods Pte Ltd, via its subsidiary Pune Chicken Restaurants, by way of acquiring the total equity interest of the latter for RM84,000 and subscribing to an additional RM2.4 million worth of shares.
We understand that Kernel Foods has two KFC restaurants in Pune, India, where KFCH is currently running one of its stores in Deccan Mall. After the completion, KFCH will have three stores in Pune in total. Due to the higher number of stores in the city, KFCH will be able to enjoy more competitive rates from suppliers in terms of supply logistics, which would improve the overall profitability of its stores in India. While we consider this to be a positive move, we prefer to keep our profit margin forecasts for India unchanged for now, until we see some positive synergies coming through.
We believe the total purchase price of RM2.5 million is fair. Based on our previous discussions with management, it usually costs approximately RM1 million to RM1.2 million in set-up costs for KFCH to open a store in India. Furthermore, the direct purchase of the stores reduces the execution risk which is usually associated with opening a new 'greenfield' store. Recall that we previously highlighted that KFCH had some hiccups in opening new stores due to various construction and red-tape issues.
With the completion of the acquisition, KFCH will effectively have seven stores in total in the state of Maharashtra (currently five), which is the only state it is allowed to operate in currently. We consider this purchase as a new store opening, thus the total of seven store openings in FY10 is in line with our assumptions.
we make no change to our forecasts. Risks include: (i) bird/swine flu escalation; (ii) escalation of corn and soyabean prices, which would eat into margins; and (iii) deteriorating consumer spending power, resulting in lower same-store sales (SSS) growth.
We are maintaining our fair value for KFCH at RM3.85, based on unchanged 17 times target FY11 PER. We are, however, upgrading our call on the stock to 'market perform' (from 'underperform' previously) as we believe the downside risk from its current share price is minimal. ' RHB Research Institute
QL - QL making the most of Asean's natural assets
Stock Name: QL
Company Name: QL RESOURCES BHD
Research House: ECMLIBRA
QL Resources Bhd
( RM5.69)
Initiate coverage with a buy call at RM5.60 and target price of RM7.30: We initiate our coverage of QL Resources with a 'buy' recommendation and target price of RM7.30 based on 20 times CY11 PER. QL's products will benefit directly from rising global demand and price trends for food commodities. The group is one of Asia's largest surimi manufacturers and a Malaysian market leader in livestock feed trading, fish meal and egg production.
We have forecast a three-year forward forecast EPS CAGR of 17.3% (FY11/13), that will be driven by strong demand for QL's marine, livestock feed, poultry products and palm oil, with rising population and disposable income, as well as the group's steady capacity expansion. Diversification reduces earnings volatility by smoothing out the cyclical nature of its resource-based activities.
QL's expansion plan is both local and regional, with total group capex set to increase by 60% in the next two years to RM200 million annually. The group is replicating its business model in the Asean region with: (i) new poultry farms in Tay Ninh, Vietnam, and Cianjur, Indonesia; (ii) a new marine plant being constructed in Surabaya; and (iii) further planting and palm oil mill slated for its plantation in Tarakan, Kalimantan.
QL benefits from the government's pro-agriculture stance via tax incentives that translate to a lower tax rate (15% in FY10) and subsidised diesel for its deepsea fishing operations. The group's latest venture into renewable energy is directly in accordance with the government's promotion of green technology as contained in Budget 2011.
Despite what seems like expensive valuations, we are bullish on QL as we firmly believe it deserves premium valuation to peers as well as the market. QL's next two years' earnings CAGR of 16.1% is impressive compared with Malaysian peers of 5.6%. Furthermore, over the last 10 years, QL's average 12-month forward earnings growth is impressive at 23%. At our target price, PEG ratio is undemanding at only 0.9 times based on 10-year average growth rate.
Company Name: QL RESOURCES BHD
Research House: ECMLIBRA
QL Resources Bhd
( RM5.69)
Initiate coverage with a buy call at RM5.60 and target price of RM7.30: We initiate our coverage of QL Resources with a 'buy' recommendation and target price of RM7.30 based on 20 times CY11 PER. QL's products will benefit directly from rising global demand and price trends for food commodities. The group is one of Asia's largest surimi manufacturers and a Malaysian market leader in livestock feed trading, fish meal and egg production.
We have forecast a three-year forward forecast EPS CAGR of 17.3% (FY11/13), that will be driven by strong demand for QL's marine, livestock feed, poultry products and palm oil, with rising population and disposable income, as well as the group's steady capacity expansion. Diversification reduces earnings volatility by smoothing out the cyclical nature of its resource-based activities.
QL's expansion plan is both local and regional, with total group capex set to increase by 60% in the next two years to RM200 million annually. The group is replicating its business model in the Asean region with: (i) new poultry farms in Tay Ninh, Vietnam, and Cianjur, Indonesia; (ii) a new marine plant being constructed in Surabaya; and (iii) further planting and palm oil mill slated for its plantation in Tarakan, Kalimantan.
QL benefits from the government's pro-agriculture stance via tax incentives that translate to a lower tax rate (15% in FY10) and subsidised diesel for its deepsea fishing operations. The group's latest venture into renewable energy is directly in accordance with the government's promotion of green technology as contained in Budget 2011.
Despite what seems like expensive valuations, we are bullish on QL as we firmly believe it deserves premium valuation to peers as well as the market. QL's next two years' earnings CAGR of 16.1% is impressive compared with Malaysian peers of 5.6%. Furthermore, over the last 10 years, QL's average 12-month forward earnings growth is impressive at 23%. At our target price, PEG ratio is undemanding at only 0.9 times based on 10-year average growth rate.
Wednesday, December 15, 2010
SAPCRES - SapuraCrest eyes strategic assets, target price lifted
Stock Name: SAPCRES
Company Name: SAPURACREST PETROLEUM BHD
Research House: MAYBANK
SapuraCrest Petroleum Bhd (SapCrest)
( RM2.89)
Maintain buy at RM2.85 with revised target price of RM3.30 (from RM3.05): 3Q results yielded no surprises but we are turning even more positive on SapCrest. It has a strengthened balance sheet to expand its core businesses (ie IPF, marine services, drilling operations) through M&As. Maintain buy with a higher RM3.30 target price (+8%) as we lift target PER multiple from 16 times to 17 times FY13 on new asset injection prospects.
3QFY net profit of RM55 million (+3% quarter-on-quarter, +3% year-on-year) took 9M earnings to RM159 million (+21% y-o-y), on track to meet our and consensus full-year forecasts of RM216 million to RM218 million. No dividend was declared in the quarter. SapCrest remained cash rich for the fourth consecutive quarter with net cash level of RM76 million as at October.
The IPF division was the key performer in 3Q. Pretax profit jumped 123% quarter-on-quarter (q-o-q) to RM83 million, driven primarily by higher contribution from transportation and installation (T&I) projects. Other divisions disappointed. Drilling division's pretax profit fell 21% q-o-q to RM79 million on higher dry-dock costs and lower utilisation. Marine services pretax losses swelled nine times q-o-q; 2 times y-o-y to RM39 million whilst operations and maintenance (O&M) turned into a pretax loss of RM1 million (2Q: +RM1 million).
No change to our forecasts. Its balance sheet allows SapCrest the opportunity to gear up and build its asset base. Marine services division is an area which SapCrest can strengthen ' through M&A or newbuild (or secondary) routes. We also do not rule out SapCrest growing its rigs and pipe-lay vessels through JV with its existing partners (ie Seadrill, Acergy).
Petra Perdana and Alam Maritim are touted as potential acquiree targets. Hypothetically, taking over 100% of any of these companies would cost SapCrest between RM389 million and RM687 million (based on Friday's closing price) and could add RM53 million to RM61 million (+22-25%) to its FY13 net profit (full-year impact); after netting off 7% interest cost.
Pricing will be a key issue for the existing owners to exit. Acquiring Petra could be a less expensive option at Petra's current market value of RM389 million. An asset-liability option may be easier as major owners/shareholders hold just a collective 14%. ' Maybank IB Research
Company Name: SAPURACREST PETROLEUM BHD
Research House: MAYBANK
SapuraCrest Petroleum Bhd (SapCrest)
( RM2.89)
Maintain buy at RM2.85 with revised target price of RM3.30 (from RM3.05): 3Q results yielded no surprises but we are turning even more positive on SapCrest. It has a strengthened balance sheet to expand its core businesses (ie IPF, marine services, drilling operations) through M&As. Maintain buy with a higher RM3.30 target price (+8%) as we lift target PER multiple from 16 times to 17 times FY13 on new asset injection prospects.
3QFY net profit of RM55 million (+3% quarter-on-quarter, +3% year-on-year) took 9M earnings to RM159 million (+21% y-o-y), on track to meet our and consensus full-year forecasts of RM216 million to RM218 million. No dividend was declared in the quarter. SapCrest remained cash rich for the fourth consecutive quarter with net cash level of RM76 million as at October.
The IPF division was the key performer in 3Q. Pretax profit jumped 123% quarter-on-quarter (q-o-q) to RM83 million, driven primarily by higher contribution from transportation and installation (T&I) projects. Other divisions disappointed. Drilling division's pretax profit fell 21% q-o-q to RM79 million on higher dry-dock costs and lower utilisation. Marine services pretax losses swelled nine times q-o-q; 2 times y-o-y to RM39 million whilst operations and maintenance (O&M) turned into a pretax loss of RM1 million (2Q: +RM1 million).
No change to our forecasts. Its balance sheet allows SapCrest the opportunity to gear up and build its asset base. Marine services division is an area which SapCrest can strengthen ' through M&A or newbuild (or secondary) routes. We also do not rule out SapCrest growing its rigs and pipe-lay vessels through JV with its existing partners (ie Seadrill, Acergy).
Petra Perdana and Alam Maritim are touted as potential acquiree targets. Hypothetically, taking over 100% of any of these companies would cost SapCrest between RM389 million and RM687 million (based on Friday's closing price) and could add RM53 million to RM61 million (+22-25%) to its FY13 net profit (full-year impact); after netting off 7% interest cost.
Pricing will be a key issue for the existing owners to exit. Acquiring Petra could be a less expensive option at Petra's current market value of RM389 million. An asset-liability option may be easier as major owners/shareholders hold just a collective 14%. ' Maybank IB Research
BJTOTO - BToto out of luck in 2Q
Stock Name: BJTOTO
Company Name: BERJAYA SPORTS TOTO BHD
Research House: CIMB
Berjaya Sports Toto Bhd
(, RM4.23)
Maintain neutral at RM4.13 with target price of RM4.67: A higher-than-expected prize payout led to a subpar interim showing by BToto, with 1HFY4/11 core earnings coming in at only 39% of our projection and 34% of consensus.
The second interim tax-exempt dividend per share (DPS) of four sen was marginally below forecast and took year-to-date (YTD) DPS to 12 sen or 42% of our full-year estimate. Factoring in the higher payout for 2Q, we cut our FY11 EPS forecast by 11% and trim FY11 DPS by one sen. Our FY12-13 numbers are unchanged. Our discount dividend model-based end-CY11 target price also stays at RM4.67 due to the minimal reduction in dividends assumed.
We remain neutral on BToto given the competitive threat from Magnum's 4D Jackpot game and concerns over softer sales following the recent cut in prize payout for the Big 4D game. We prefer Genting for exposure to the sector.
2QFY11 topline fell 1.3% year-on-year (y-o-y) due to a lower number of draw days compared to the previous year. On a quarter-on-quarter (q-o-q) basis, 2Q sales advanced 1.3%, lifted mainly by stronger lotto sales despite the lower number of draw days. Like the previous quarter, Supreme Toto 6/58 was the main growth driver, propelling 2Q11 lotto revenue higher by a staggering 55% y-o-y and 26% up q-o-q, thanks to its attractive jackpot which snowballed to RM47.8 million during the quarter. On a year-to-date basis, revenue dipped 0.1% y-o-y as the gaming business was affected by the lower number of draw days and rising competition.
2Q11 earnings before interest and tax (Ebit) fell 33% y-o-y due to the two percentage points (ppts) hike in pool betting duty on June 1 and the less favourable prize payout ratio of 70% versus 2Q10's 63%. Ebit margin continued to narrow q-o-q due to the higher payout ratio. We expect BToto's gaming margin to improve in 4Q as the government recently approved a reduction in the special prize payout, which we estimate will lower the payout ratio for the Big 4D game by two ppts effective Dec 15.
Although we expect BToto to retain its market leadership in CY11 due to decent punting interest in its flagship 4D game and the boost from its three lotto variants, we expect its lead to be crimped by strong interest in Magnum's 4D Jackpot game. Because of this and the maturity of the NFO market in general, we see some downside risk to our flat to +3% annual topline growth projections for BToto for FY11-13. ' CIMB Research
Company Name: BERJAYA SPORTS TOTO BHD
Research House: CIMB
Berjaya Sports Toto Bhd
(, RM4.23)
Maintain neutral at RM4.13 with target price of RM4.67: A higher-than-expected prize payout led to a subpar interim showing by BToto, with 1HFY4/11 core earnings coming in at only 39% of our projection and 34% of consensus.
The second interim tax-exempt dividend per share (DPS) of four sen was marginally below forecast and took year-to-date (YTD) DPS to 12 sen or 42% of our full-year estimate. Factoring in the higher payout for 2Q, we cut our FY11 EPS forecast by 11% and trim FY11 DPS by one sen. Our FY12-13 numbers are unchanged. Our discount dividend model-based end-CY11 target price also stays at RM4.67 due to the minimal reduction in dividends assumed.
We remain neutral on BToto given the competitive threat from Magnum's 4D Jackpot game and concerns over softer sales following the recent cut in prize payout for the Big 4D game. We prefer Genting for exposure to the sector.
2QFY11 topline fell 1.3% year-on-year (y-o-y) due to a lower number of draw days compared to the previous year. On a quarter-on-quarter (q-o-q) basis, 2Q sales advanced 1.3%, lifted mainly by stronger lotto sales despite the lower number of draw days. Like the previous quarter, Supreme Toto 6/58 was the main growth driver, propelling 2Q11 lotto revenue higher by a staggering 55% y-o-y and 26% up q-o-q, thanks to its attractive jackpot which snowballed to RM47.8 million during the quarter. On a year-to-date basis, revenue dipped 0.1% y-o-y as the gaming business was affected by the lower number of draw days and rising competition.
2Q11 earnings before interest and tax (Ebit) fell 33% y-o-y due to the two percentage points (ppts) hike in pool betting duty on June 1 and the less favourable prize payout ratio of 70% versus 2Q10's 63%. Ebit margin continued to narrow q-o-q due to the higher payout ratio. We expect BToto's gaming margin to improve in 4Q as the government recently approved a reduction in the special prize payout, which we estimate will lower the payout ratio for the Big 4D game by two ppts effective Dec 15.
Although we expect BToto to retain its market leadership in CY11 due to decent punting interest in its flagship 4D game and the boost from its three lotto variants, we expect its lead to be crimped by strong interest in Magnum's 4D Jackpot game. Because of this and the maturity of the NFO market in general, we see some downside risk to our flat to +3% annual topline growth projections for BToto for FY11-13. ' CIMB Research
Sunday, December 12, 2010
在没有金本位的制度下的經濟
這篇轉載源自8year的文章。
在没有金本位的制度下，政府或银行家有权利去印需要的钱，由于没有参考价值的系统，所以货币的价值就决定于信心。是的，就只是信心两个字。不论你货币怎样好，如果市场没有信心，那么你的货币就会贬值，相反的，如果市场有信心，你印很很多钱还是很有价值。
一個國家的經濟前景充滿希望，國際性的財團會注入資金，間接地造成當地貨幣的增值。美元兌新幣，新幣從2009年3月的1.55增值至2010年11月1.30的；同時美元兌馬幣，馬幣從3.70增值至3.10。同樣地，這也發生在泰國等一些發展中國家。這些發展中國家可以更低廉價格購買先進的美國貨。美國則需以更高的價格進口，美國人更能直接體會到通貨膨脹的威脅。
这就是没有金本位的制度下的货币。当然，这样的制度有好有坏。坏的就先不谈，先讲讲什么好处。有了印钱的制度，货币不能保值，政府不够钱就印，那么就会制造通货膨胀。通货膨胀有利于会投资的群众，所以以银行家和投资家的眼光来看，没有金本位的制度下是优秀的。
美國政府不夠錢支出開銷，就讓美聯儲印錢。
如果有金本位的制度，通货膨胀的情况会比较慢，喜欢存钱的人会继续累积财富，这会使货币的流通变慢，由于没有通货膨胀的效益，消费变慢，资产升值慢，人们会为黄金资源打仗，债务不能通过通货膨胀变少，货币市场不能炒作，世界资金流通慢。这样的情况下，政府钱不够用的时候就不能印钱，第一个减少的就是民众福利。
個人覺得以目前的經濟發展步伐，不可能回歸金本位制度。重金屬的資源有限，局限了貨幣的流通。再加上目前的法律體系及資訊科技發展，貨幣已成為一個數據罷了。
没有金本位的制度，懂得投资的人会有优势，因为货币供应量会变大，债务会变少，这使得保险和金融行业的制度可以进行。钱币会越变越小会让人民必将喜欢消费。钱币会越变越小会让人们努力消费，努力赚钱，因为你今天拥有的钱是不能保证未来的价值。钱币会越变越小让人们的资产升值如房子，让投资家的负债变少。钱币流通量越大会造成大量的人可以赚到钱，使得经济越来越好。最后的结果就是经济长期的成长。当然，每次的通货膨胀都是财富再分配的结果，每次的钱币越变越小都表示着越来越多钱在社会流通。
“貨幣供應量變大，債務變小”，這對我來說是新的見解。有人說過，“債務像雪球，越滾越大”。假設你目前有100千的債務，債務會隨時間以利滾利地方式，越滾越大。再假設你定期定額地償還，債務會隨時間慢慢地減少。再假設貨幣供應量變大，通貨膨脹率增加，貨幣貶值得越快。10年購買的雙層排屋只需100千，銀行貸款90千，利息7%，供期30年。10年後，貸款餘額是大約70千，每月供期一樣，可是雙層排屋市價在200千以上。這說明貨幣隨時間、通貨膨脹而失去先前的購買力。適當的舉債購買會增值的投資標的，是保留購買力的有效方法之一。
最后，没有金本位的制度会让经济大力发展，人们敢于借贷，敢于消费，人们敢于杠杆，这些是什么，这些就制造了长期的经济消费和需求。所以经济成长，没有金本位的制度是很大的功臣。
当然，没有金本位的制度下，如果你的收入不能快过通货膨胀，那么就会很糟糕的，所以，没有金本位的制度下，每个人都在拼命找钱和消费，制造了经济的荣景。赚不到钱的穷人也不用担心，政府依然会有福利来保护穷人（看国家决定）。
在没有金本位的制度下，政府或银行家有权利去印需要的钱，由于没有参考价值的系统，所以货币的价值就决定于信心。是的，就只是信心两个字。不论你货币怎样好，如果市场没有信心，那么你的货币就会贬值，相反的，如果市场有信心，你印很很多钱还是很有价值。
一個國家的經濟前景充滿希望，國際性的財團會注入資金，間接地造成當地貨幣的增值。美元兌新幣，新幣從2009年3月的1.55增值至2010年11月1.30的；同時美元兌馬幣，馬幣從3.70增值至3.10。同樣地，這也發生在泰國等一些發展中國家。這些發展中國家可以更低廉價格購買先進的美國貨。美國則需以更高的價格進口，美國人更能直接體會到通貨膨脹的威脅。
这就是没有金本位的制度下的货币。当然，这样的制度有好有坏。坏的就先不谈，先讲讲什么好处。有了印钱的制度，货币不能保值，政府不够钱就印，那么就会制造通货膨胀。通货膨胀有利于会投资的群众，所以以银行家和投资家的眼光来看，没有金本位的制度下是优秀的。
美國政府不夠錢支出開銷，就讓美聯儲印錢。
如果有金本位的制度，通货膨胀的情况会比较慢，喜欢存钱的人会继续累积财富，这会使货币的流通变慢，由于没有通货膨胀的效益，消费变慢，资产升值慢，人们会为黄金资源打仗，债务不能通过通货膨胀变少，货币市场不能炒作，世界资金流通慢。这样的情况下，政府钱不够用的时候就不能印钱，第一个减少的就是民众福利。
個人覺得以目前的經濟發展步伐，不可能回歸金本位制度。重金屬的資源有限，局限了貨幣的流通。再加上目前的法律體系及資訊科技發展，貨幣已成為一個數據罷了。
没有金本位的制度，懂得投资的人会有优势，因为货币供应量会变大，债务会变少，这使得保险和金融行业的制度可以进行。钱币会越变越小会让人民必将喜欢消费。钱币会越变越小会让人们努力消费，努力赚钱，因为你今天拥有的钱是不能保证未来的价值。钱币会越变越小让人们的资产升值如房子，让投资家的负债变少。钱币流通量越大会造成大量的人可以赚到钱，使得经济越来越好。最后的结果就是经济长期的成长。当然，每次的通货膨胀都是财富再分配的结果，每次的钱币越变越小都表示着越来越多钱在社会流通。
“貨幣供應量變大，債務變小”，這對我來說是新的見解。有人說過，“債務像雪球，越滾越大”。假設你目前有100千的債務，債務會隨時間以利滾利地方式，越滾越大。再假設你定期定額地償還，債務會隨時間慢慢地減少。再假設貨幣供應量變大，通貨膨脹率增加，貨幣貶值得越快。10年購買的雙層排屋只需100千，銀行貸款90千，利息7%，供期30年。10年後，貸款餘額是大約70千，每月供期一樣，可是雙層排屋市價在200千以上。這說明貨幣隨時間、通貨膨脹而失去先前的購買力。適當的舉債購買會增值的投資標的，是保留購買力的有效方法之一。
最后，没有金本位的制度会让经济大力发展，人们敢于借贷，敢于消费，人们敢于杠杆，这些是什么，这些就制造了长期的经济消费和需求。所以经济成长，没有金本位的制度是很大的功臣。
当然，没有金本位的制度下，如果你的收入不能快过通货膨胀，那么就会很糟糕的，所以，没有金本位的制度下，每个人都在拼命找钱和消费，制造了经济的荣景。赚不到钱的穷人也不用担心，政府依然会有福利来保护穷人（看国家决定）。
Friday, December 10, 2010
DRBHCOM - DRB-Hicom rated new 'buy'
Stock Name: DRBHCOM
Company Name: DRB-HICOM BHD
Research House: HWANGDBS
DRB-Hicom Bhd, an auto and financial services group, gained 2.4 per cent to RM1.69.
DRB-Hicom was rated new "buy" at HwangDBS Vickers Research Sdn Bhd, which said in a report today the company is a "strong proxy to the consumption story."
The brokerage has a share-price estimate of RM3.55 for the stock.
Company Name: DRB-HICOM BHD
Research House: HWANGDBS
DRB-Hicom Bhd, an auto and financial services group, gained 2.4 per cent to RM1.69.
DRB-Hicom was rated new "buy" at HwangDBS Vickers Research Sdn Bhd, which said in a report today the company is a "strong proxy to the consumption story."
The brokerage has a share-price estimate of RM3.55 for the stock.
THPLANT - RHB Research initiates coverage on TH Plantations, FV RM2.30
Stock Name: THPLANT
Company Name: TH PLANTATIONS BHD
Research House: RHB
KUALA LUMPUR: RHB Research Institute is initiating an Outperform call on TH PLANTATION []s and assigned it a PE of 11 times FY11 and fair value of RM2.30.
The research house said on Friday, Dec 10 TH Plantations is the plantation arm of Lembaga Tabung Haji and it has plantation land bank of about 39,159 hectares and five palm oil mills with a total milling capacity of 702,000 tonnes per annum.
'We project TH Plantations THP to record a three-year earnings CAGR of 25% to FY12, on the back of a three-year revenue CAGR of 14%.
'The reason for the stronger profit growth is the higher CPO prices as well as an expectation of improved FFB yields, which translate to better margins. We project net dividend payouts at a consistent 55-60% p.a., which translate to attractive net yields of 5.6% for FY10, rising to 7-8% for FY11-12,' it said.
RHB Research said TH Plantations' earnings are very sensitive to CPO price movements and every RM100/tonne change in CPO price would impact earnings by 10%-12% per annum.
'Assigning it a PE of 11 times FY11, which is the mid-point of its historical average, we arrive at a fair value of RM2.30. Initiate with Outperform,' it said.
Company Name: TH PLANTATIONS BHD
Research House: RHB
KUALA LUMPUR: RHB Research Institute is initiating an Outperform call on TH PLANTATION []s and assigned it a PE of 11 times FY11 and fair value of RM2.30.
The research house said on Friday, Dec 10 TH Plantations is the plantation arm of Lembaga Tabung Haji and it has plantation land bank of about 39,159 hectares and five palm oil mills with a total milling capacity of 702,000 tonnes per annum.
'We project TH Plantations THP to record a three-year earnings CAGR of 25% to FY12, on the back of a three-year revenue CAGR of 14%.
'The reason for the stronger profit growth is the higher CPO prices as well as an expectation of improved FFB yields, which translate to better margins. We project net dividend payouts at a consistent 55-60% p.a., which translate to attractive net yields of 5.6% for FY10, rising to 7-8% for FY11-12,' it said.
RHB Research said TH Plantations' earnings are very sensitive to CPO price movements and every RM100/tonne change in CPO price would impact earnings by 10%-12% per annum.
'Assigning it a PE of 11 times FY11, which is the mid-point of its historical average, we arrive at a fair value of RM2.30. Initiate with Outperform,' it said.
GENP - Genting Plantations offers buying opportunity on weakness
Stock Name: GENP
Company Name: GENTING PLANTATIONS BERHAD
Research House: MIDF
Genting Plantations Bhd
(RM8.59)
Upgrade to buy at RM8.68 with target price of RM9.90: Genting Plantations' share price has recently dropped 4.4% from its high of RM9. This presents a good buying opportunity as we remain bullish on the outlook for crude palm oil (CPO) prices and optimistic about the future performance of the company. Based on our target price of RM9.90 and dividend yield of 1.31%, we are expecting a total returns of 15.37%, which exceeds our buy recommendation threshold of 15%.
We are expecting 5,594ha of mature palms in Malaysia to be augmented by 1,716ha in Indonesia, which only started producing in July. At its 10-year average fresh fruit bunch (FFB) yield of 21.62, we are projecting total production next year to increase by 17%.
We are expecting positive contributions from the property and biotech divisions. The proceeds from the sale of industrial land in Johor is expected to contribute to the total earnings in 2011, after the completion of the condition precedents in the S&P agreement. In addition, management is projecting that the biotech division will start making a profit in 2013.
We are positive on'' CPO prices moving forward. The high price is likely to be strongest in 1Q11, as these bullish factors will coincide with expected low output and uncertainties in weather conditions coupled with strong global demand for vegetable oils. We maintain our target industry mean price at RM3,000 per tonne and realised CPO selling price for Genting Plantations of RM2,670 per tonne (+5.5%) for CY2011.
We foresee potential future growth for Genting Plantations on the back of: i) more matured acreage; ii) the planting programme for 10,000ha to 15,000ha mainly in Indonesia; and iii) improved contribution from the property segment with 93.2 acres of industrial land in Kulaijaya sold to a third party.
We are upgrading Genting Plantations to a buy with unchanged target price of RM9.90. The target price is pegged at 18 times 2011 PER, based on one standard deviation of its 11-year average historical PER of 13 times. ' MIDF Research
Company Name: GENTING PLANTATIONS BERHAD
Research House: MIDF
Genting Plantations Bhd
(RM8.59)
Upgrade to buy at RM8.68 with target price of RM9.90: Genting Plantations' share price has recently dropped 4.4% from its high of RM9. This presents a good buying opportunity as we remain bullish on the outlook for crude palm oil (CPO) prices and optimistic about the future performance of the company. Based on our target price of RM9.90 and dividend yield of 1.31%, we are expecting a total returns of 15.37%, which exceeds our buy recommendation threshold of 15%.
We are expecting 5,594ha of mature palms in Malaysia to be augmented by 1,716ha in Indonesia, which only started producing in July. At its 10-year average fresh fruit bunch (FFB) yield of 21.62, we are projecting total production next year to increase by 17%.
We are expecting positive contributions from the property and biotech divisions. The proceeds from the sale of industrial land in Johor is expected to contribute to the total earnings in 2011, after the completion of the condition precedents in the S&P agreement. In addition, management is projecting that the biotech division will start making a profit in 2013.
We are positive on'' CPO prices moving forward. The high price is likely to be strongest in 1Q11, as these bullish factors will coincide with expected low output and uncertainties in weather conditions coupled with strong global demand for vegetable oils. We maintain our target industry mean price at RM3,000 per tonne and realised CPO selling price for Genting Plantations of RM2,670 per tonne (+5.5%) for CY2011.
We foresee potential future growth for Genting Plantations on the back of: i) more matured acreage; ii) the planting programme for 10,000ha to 15,000ha mainly in Indonesia; and iii) improved contribution from the property segment with 93.2 acres of industrial land in Kulaijaya sold to a third party.
We are upgrading Genting Plantations to a buy with unchanged target price of RM9.90. The target price is pegged at 18 times 2011 PER, based on one standard deviation of its 11-year average historical PER of 13 times. ' MIDF Research
JTIASA - Jaya Tiasa a plantation company in the making
Stock Name: JTIASA
Company Name: JAYA TIASA HOLDINGS BHD
Research House: RHB
Jaya Tiasa Holdings Bhd
()
Maintain outperform at RM4.02 with revised target price of RM4.83 (from RM5.31): Owing to firm log prices and an improvement in log production of 8.6% quarter-on-quarter (q-o-q) in 2QFY2011 ending April, we expect Jaya Tiasa to report better earnings from its log division in its upcoming quarterly results. Going forward, we believe the tight log supply situation in Sarawak is likely to continue for another few months due to seasonal factors before log production starts to normalise.
Average selling prices for Jaya Tiasa's plywood division crept up by 3.1% q-o-q in 1QFY2011, while capacity utilisation rate improved to 60% (from 54% in 4QFY2010). Management agreed that demand volume is not that great but is sufficient for plywood prices to improve gradually. We note that South Korea's contribution to total plywood sales in 1QFY2011 has declined to a mere 6% (from 22% in 4QFY2010) due to the preliminary anti-dumping duties imposed on Malaysian plywood products by South Korea since early July.
Jaya Tiasa has revised downwards its fresh fruit bunch (FFB) production targets for future years, a result of lower assumptions of mature areas and average yield per hectare. We believe management is erring on the conservative side, as the revised FFB production forecast for FY2011 appears easily achieved based on current production levels and even after taking into account the potentially lower output in 2HFY2011 due to seasonal factors.
Risks include: i) timber and CPO prices falling; ii) a slower than expected recovery in the global economy; and iii) significant increase in crude oil-related glue and logistics costs.
We cut our FY2011/13 net profit by 6.1% to 9.7%, after adjusting for; i) lower FFB and CPO production projections; ii) a declining trend in cost of production per tonne; iii) higher interest expense going forward; and iv) lower depreciation expense.
We reduce our target price for Jaya Tiasa to RM4.83 (from RM5.31 previously) based on unchanged target PER of 12 times CY2011 earnings for the timber division and 13 times CY2011 earnings for the plantation division. Despite the cut in our target price, we maintain our outperform recommendation on Jaya Tiasa given the decent 20% potential upside as well as the significant upcoming change in its earnings profile, which will see the plantation division contributing about 70% to 75% of earnings from FY2011 onwards (from about 40% previously). ' RHB Research Institute Sdn Bhd
Company Name: JAYA TIASA HOLDINGS BHD
Research House: RHB
Jaya Tiasa Holdings Bhd
()
Maintain outperform at RM4.02 with revised target price of RM4.83 (from RM5.31): Owing to firm log prices and an improvement in log production of 8.6% quarter-on-quarter (q-o-q) in 2QFY2011 ending April, we expect Jaya Tiasa to report better earnings from its log division in its upcoming quarterly results. Going forward, we believe the tight log supply situation in Sarawak is likely to continue for another few months due to seasonal factors before log production starts to normalise.
Average selling prices for Jaya Tiasa's plywood division crept up by 3.1% q-o-q in 1QFY2011, while capacity utilisation rate improved to 60% (from 54% in 4QFY2010). Management agreed that demand volume is not that great but is sufficient for plywood prices to improve gradually. We note that South Korea's contribution to total plywood sales in 1QFY2011 has declined to a mere 6% (from 22% in 4QFY2010) due to the preliminary anti-dumping duties imposed on Malaysian plywood products by South Korea since early July.
Jaya Tiasa has revised downwards its fresh fruit bunch (FFB) production targets for future years, a result of lower assumptions of mature areas and average yield per hectare. We believe management is erring on the conservative side, as the revised FFB production forecast for FY2011 appears easily achieved based on current production levels and even after taking into account the potentially lower output in 2HFY2011 due to seasonal factors.
Risks include: i) timber and CPO prices falling; ii) a slower than expected recovery in the global economy; and iii) significant increase in crude oil-related glue and logistics costs.
We cut our FY2011/13 net profit by 6.1% to 9.7%, after adjusting for; i) lower FFB and CPO production projections; ii) a declining trend in cost of production per tonne; iii) higher interest expense going forward; and iv) lower depreciation expense.
We reduce our target price for Jaya Tiasa to RM4.83 (from RM5.31 previously) based on unchanged target PER of 12 times CY2011 earnings for the timber division and 13 times CY2011 earnings for the plantation division. Despite the cut in our target price, we maintain our outperform recommendation on Jaya Tiasa given the decent 20% potential upside as well as the significant upcoming change in its earnings profile, which will see the plantation division contributing about 70% to 75% of earnings from FY2011 onwards (from about 40% previously). ' RHB Research Institute Sdn Bhd
MISC - MISC cut to 'hold' at HwangDBS
Stock Name: MISC
Company Name: MISC BHD
Research House: HWANGDBS
MISC Bhd, the world's biggest owner-operator of liquefied natural gas tankers, was cut to "hold" from "buy" at HwangDBS Vickers Research Sdn Bhd to reflect weakening petroleum shipping rates.
The share-price estimate was reduced to RM8.90 from RM9.60, HwangDBS said in a report today
Company Name: MISC BHD
Research House: HWANGDBS
MISC Bhd, the world's biggest owner-operator of liquefied natural gas tankers, was cut to "hold" from "buy" at HwangDBS Vickers Research Sdn Bhd to reflect weakening petroleum shipping rates.
The share-price estimate was reduced to RM8.90 from RM9.60, HwangDBS said in a report today
AXIATA - Axiata rated 'overweight' at JPMorgan
Stock Name: AXIATA
Company Name: AXIATA GROUP BERHAD
Research House: JP MORGAN CHASE
Axiata Group Bhd, a Malaysian mobile-phone operator, rose to its highest level in more than two years after the stock was rated "overweight" at JPMorgan Chase & Co, citing the company's regional growth prospects.
The stock climbed 1.7 per cent to RM4.81 at 9:27 a.m. in Kuala Lumpur trading, set for its highest close since June 16, 2008.
The brokerage has a share-price estimate of RM5.90, according to a report by analysts including James R. Sullivan.
Company Name: AXIATA GROUP BERHAD
Research House: JP MORGAN CHASE
Axiata Group Bhd, a Malaysian mobile-phone operator, rose to its highest level in more than two years after the stock was rated "overweight" at JPMorgan Chase & Co, citing the company's regional growth prospects.
The stock climbed 1.7 per cent to RM4.81 at 9:27 a.m. in Kuala Lumpur trading, set for its highest close since June 16, 2008.
The brokerage has a share-price estimate of RM5.90, according to a report by analysts including James R. Sullivan.
KENCANA - OSK Research: Kencana remains top pick for O&G sector
Stock Name: KENCANA
Company Name: KENCANA PETROLEUM BHD
Research House: OSK
KUALA LUMPUR: OSK Research said KENCANA PETROLEUM BHD [], which is expected to announce its 1QFY11 results next Monday, Dec 13 will unveil numbers that are better on-quarter.
The research house said the better on-quarter performance would be underpinned by contributions from the MKR-1, recognition of a portion of fabrication works secured since April 2010, better yard utilisation on-quarter, as well as improved cost management and production efficiency.
'We believe the company's recently proposed fund raising exercise will also provide the stock with growth upside in the coming months. Kencana remains our top pick for the O&G sector. Maintain Buy with a higher target price of RM2.93 (previously RM2.57),' it said.
Company Name: KENCANA PETROLEUM BHD
Research House: OSK
KUALA LUMPUR: OSK Research said KENCANA PETROLEUM BHD [], which is expected to announce its 1QFY11 results next Monday, Dec 13 will unveil numbers that are better on-quarter.
The research house said the better on-quarter performance would be underpinned by contributions from the MKR-1, recognition of a portion of fabrication works secured since April 2010, better yard utilisation on-quarter, as well as improved cost management and production efficiency.
'We believe the company's recently proposed fund raising exercise will also provide the stock with growth upside in the coming months. Kencana remains our top pick for the O&G sector. Maintain Buy with a higher target price of RM2.93 (previously RM2.57),' it said.
Wednesday, December 8, 2010
US STOCKS-Spike in rates, insider probe derail rally
NEW YORK: U.S. stocks eked out a small gain as investors' enthusiasm over a tax cut extension deal was short-circuited by rising bond yields and reports regulators were stepping up an insider-trading probe.
The S&P 500 hit a two-year intraday high after U.S. President Barack Obama forged the deal with Republicans to renew Bush-era tax cuts.
But the rally fizzled late as the yield on the 10-year note hit its highest level since June and debt prices fell sharply.
"The smashing that (bonds) are taking today is disconcerting," said Peter Boockvar, equity strategist at Miller Tabak & Co in New York.
"The spike in interest rates could be enough to stop the equity rally in its tracks."
The rise in yields added to anxiety from news the U.S. Securities and Exchange Commission has issued more than a dozen subpoenas in its investigation of insider trading on Wall Street, potentially undermining public confidence in the markets.
Optimism over the tax agreement sent the S&P 500 to a new intraday two-year high and above a key technical measure, but the index retreated, confirming the 1,228 level remains a strong resistance point.
Analysts said the lofty heights recently attained by stock indexes may have also given investors reason to pause due to skittishness.
"The market has had a nice run. Investors are a little nervous about the move we just had and are looking for any type of reason to sell off," said Angel Mata, managing director of listed equity trading at Stifel Nicolaus Capital Markets in Baltimore.
Still, he noted the pullback could signal additional room for a move higher in equities.
The Dow Jones industrial average dropped 3.03 points, or 0.03 percent, to 11,359.16. The Standard & Poor's 500 Index added 0.63 points, or 0.05 percent, to 1,223.75. The Nasdaq Composite Index gained 3.57 points, or 0.14 percent, to 2,598.49.
Volume surged on Tuesday as more than 11 billion shares changed hands on the New York Stock Exchange, NYSE Amex and Nasdaq. That compared with the year-to-date estimated daily average of 8.63 billion.
The CBOE volatility index closed at 17.99 -- its lowest level since April and below a key technical resistance at 18.
Citigroup shares rose 3.8 percent to $4.62 on massive volume after the U.S. government sold its remaining stake in the company. The'' move could lead to an increased weighting for the bank in the S&P 500 as the company moves to a 100 percent float, according to Credit Suisse.
Credit Suisse estimated that portfolios following the S&P may need to buy up to 375 million Citigroup shares, although the timing of the purchases was uncertain. Citigroup volume totaled nearly 3.1 billion shares, roughly 30 percent of the total volume of 10.9 billion.
3M Co shares fell 3.1 percent to $84.19. The Dow component forecast 2011 profit that could top expectations but issued an outlook for sales growth that was lower than some analysts expected.
In other corporate news, natural gas distributor Nicor Inc climbed 4.3 percent to $48.79 after it agreed to be acquired by rival AGL Resources Inc for $2.4 billion. AGL shed 5.8 percent to $34.98
Talbots Inc plunged 22.7 percent to $8.81 after the women's clothing retailer said it might report a fourth-quarter loss from continuing operations and that holiday sales could fall. - Reuters
The S&P 500 hit a two-year intraday high after U.S. President Barack Obama forged the deal with Republicans to renew Bush-era tax cuts.
But the rally fizzled late as the yield on the 10-year note hit its highest level since June and debt prices fell sharply.
"The smashing that (bonds) are taking today is disconcerting," said Peter Boockvar, equity strategist at Miller Tabak & Co in New York.
"The spike in interest rates could be enough to stop the equity rally in its tracks."
The rise in yields added to anxiety from news the U.S. Securities and Exchange Commission has issued more than a dozen subpoenas in its investigation of insider trading on Wall Street, potentially undermining public confidence in the markets.
Optimism over the tax agreement sent the S&P 500 to a new intraday two-year high and above a key technical measure, but the index retreated, confirming the 1,228 level remains a strong resistance point.
Analysts said the lofty heights recently attained by stock indexes may have also given investors reason to pause due to skittishness.
"The market has had a nice run. Investors are a little nervous about the move we just had and are looking for any type of reason to sell off," said Angel Mata, managing director of listed equity trading at Stifel Nicolaus Capital Markets in Baltimore.
Still, he noted the pullback could signal additional room for a move higher in equities.
The Dow Jones industrial average dropped 3.03 points, or 0.03 percent, to 11,359.16. The Standard & Poor's 500 Index added 0.63 points, or 0.05 percent, to 1,223.75. The Nasdaq Composite Index gained 3.57 points, or 0.14 percent, to 2,598.49.
Volume surged on Tuesday as more than 11 billion shares changed hands on the New York Stock Exchange, NYSE Amex and Nasdaq. That compared with the year-to-date estimated daily average of 8.63 billion.
The CBOE volatility index closed at 17.99 -- its lowest level since April and below a key technical resistance at 18.
Citigroup shares rose 3.8 percent to $4.62 on massive volume after the U.S. government sold its remaining stake in the company. The'' move could lead to an increased weighting for the bank in the S&P 500 as the company moves to a 100 percent float, according to Credit Suisse.
Credit Suisse estimated that portfolios following the S&P may need to buy up to 375 million Citigroup shares, although the timing of the purchases was uncertain. Citigroup volume totaled nearly 3.1 billion shares, roughly 30 percent of the total volume of 10.9 billion.
3M Co shares fell 3.1 percent to $84.19. The Dow component forecast 2011 profit that could top expectations but issued an outlook for sales growth that was lower than some analysts expected.
In other corporate news, natural gas distributor Nicor Inc climbed 4.3 percent to $48.79 after it agreed to be acquired by rival AGL Resources Inc for $2.4 billion. AGL shed 5.8 percent to $34.98
Talbots Inc plunged 22.7 percent to $8.81 after the women's clothing retailer said it might report a fourth-quarter loss from continuing operations and that holiday sales could fall. - Reuters
Blue chips advance, banks lead
KUALA LUMPUR: Blue chips advanced in early trade on Wednesday, Dec 8, with banks taking the lead on expectations of more upside for equities but Maybank Investment Bank Research cautioned of late profit taking.
At 9.21am, the FBM KLCI was up 11.14 points to 1,513.18. Turnover was 110.73 million shares done valued at RM147.49 million. There were 226 gainers, 51 losers and 144 stocks unchanged.
Maybank Investment Bank Research said the FBM KLCI's resistance areas at 1,505 and 1,525 may cap market gains, whilst its obvious support areas are located at 1,488 and 1,501.
'Due to the mixed US markets last night, we may see the FBM KLCI in a steady mode today too ' with muted buying activities that may see some late profit-taking,' it said in its market outlook.
Maybank IB Research said the FBM KLCI had broken above the previous 1,524.69 all-time 2008 high to create another new peak at 1,531.99 on Nov 10. A temporary correction low had been formed at 1,474.02 on Nov 29.
'Global market trends may have become volatile recently but we may have turned a corner at the 1,474-low. The FBM KLCI remains trapped between the low of 1,474 and the high of 1,531 for now,' it said.
At Bursa Malaysia, KL Kepong rallied an other 32 sen to RM21.90 while BAT gained 28 sen to RM45.76.
CIMB rose 15 sen to RM8.62, Maybank 13 sen to RM8.45 and HLFG 11 sen to RM8.99. F&N added 14 sen to RM15.30 and SP Setia also 14 sen higher at RM5.38.
At 9.21am, the FBM KLCI was up 11.14 points to 1,513.18. Turnover was 110.73 million shares done valued at RM147.49 million. There were 226 gainers, 51 losers and 144 stocks unchanged.
Maybank Investment Bank Research said the FBM KLCI's resistance areas at 1,505 and 1,525 may cap market gains, whilst its obvious support areas are located at 1,488 and 1,501.
'Due to the mixed US markets last night, we may see the FBM KLCI in a steady mode today too ' with muted buying activities that may see some late profit-taking,' it said in its market outlook.
Maybank IB Research said the FBM KLCI had broken above the previous 1,524.69 all-time 2008 high to create another new peak at 1,531.99 on Nov 10. A temporary correction low had been formed at 1,474.02 on Nov 29.
'Global market trends may have become volatile recently but we may have turned a corner at the 1,474-low. The FBM KLCI remains trapped between the low of 1,474 and the high of 1,531 for now,' it said.
At Bursa Malaysia, KL Kepong rallied an other 32 sen to RM21.90 while BAT gained 28 sen to RM45.76.
CIMB rose 15 sen to RM8.62, Maybank 13 sen to RM8.45 and HLFG 11 sen to RM8.99. F&N added 14 sen to RM15.30 and SP Setia also 14 sen higher at RM5.38.
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Monday, December 6, 2010
PETRA - OSK Research: Worst over for Petra Perdana
Stock Name: PETRA
Company Name: PETRA PERDANA BHD
Research House: OSK
KUALA LUMPUR: OSK Research said it recently visited Petra Perdana and concluded that the worst for the company should be over.
The research house said that Petra Perdana's share price hit the lowest point of 73.5 sen recently and it believes that it has hit bottom.
'The company has successfully completed its 3:8 RI exercise, which had been view negatively by some investors. Also, we believe there is unlikely to be a further downgrade by MARC on its RM800 million dual currency revolving facility in the immediate term since the rating was done just recently.
'Finally, we think the 2QFY10 quarter was possibly the worst for the company when it reported a net loss of RM33 million, which it managed to improve its performance in 3QFY10 by narrowing the loss by 28% q-o-q,' it said.
Company Name: PETRA PERDANA BHD
Research House: OSK
KUALA LUMPUR: OSK Research said it recently visited Petra Perdana and concluded that the worst for the company should be over.
The research house said that Petra Perdana's share price hit the lowest point of 73.5 sen recently and it believes that it has hit bottom.
'The company has successfully completed its 3:8 RI exercise, which had been view negatively by some investors. Also, we believe there is unlikely to be a further downgrade by MARC on its RM800 million dual currency revolving facility in the immediate term since the rating was done just recently.
'Finally, we think the 2QFY10 quarter was possibly the worst for the company when it reported a net loss of RM33 million, which it managed to improve its performance in 3QFY10 by narrowing the loss by 28% q-o-q,' it said.
Saturday, December 4, 2010
无能的管理者之“四合一”涨价！白糖涨20仙,RON95、柴油及天然气涨5仙
续在7月16日宣布第一轮的“五合一涨价”之后，政府将在今日宣布第二轮物价上涨，白糖将涨价20仙，至于RON95、柴油及天然气则涨价5仙。
新价格将会在明日(12月4日) 凌晨12点开始实施。
调涨之后的白糖每公斤价格是2令吉10仙，至于RON95每公升价格是1令吉90仙，柴油每公升价格1令吉80仙，天然气每公斤价格则是1令吉90仙。
早在7月16日开始以“管制自由浮动”方式调涨的RON97汽油，则是每月依据国际油价调整价格，继在11月1日涨价5仙之后，又在2日前即12月1日，每公升再涨15仙。换言之，RON97每公升的价格已从2令吉15仙涨至2令吉30仙。
这次的涨价，乃是首相署表现管理和传递单位（Pemandu）所落实的削减津贴措施之一。
转载致《当今大马》http://www.malaysiakini.com/news/149919
新价格将会在明日(12月4日) 凌晨12点开始实施。
调涨之后的白糖每公斤价格是2令吉10仙，至于RON95每公升价格是1令吉90仙，柴油每公升价格1令吉80仙，天然气每公斤价格则是1令吉90仙。
早在7月16日开始以“管制自由浮动”方式调涨的RON97汽油，则是每月依据国际油价调整价格，继在11月1日涨价5仙之后，又在2日前即12月1日，每公升再涨15仙。换言之，RON97每公升的价格已从2令吉15仙涨至2令吉30仙。
这次的涨价，乃是首相署表现管理和传递单位（Pemandu）所落实的削减津贴措施之一。
转载致《当今大马》http://www.malaysiakini.com/news/149919
Thursday, December 2, 2010
ALAM - OSK Research cautions of potential provisions by Alam Maritim
Stock Name: ALAM
Company Name: ALAM MARITIM RESOURCES BHD
Research House: OSK
KUALA LUMPUR: OSK Research has cautioned of potential provision for doubtful debts by Alam Maritim following its exposure to Vastalux which is currently undergoing debt restructuring.
'We are downgrading our FY10-11 earnings by 12%-18% respectively and cut the stock to a Neutral, with a lower target price of RM1,' it said on Thursday, Dec 2. The previous target price was RM1.46.
OSK Research said Vastalux had proposed a debt restructuring scheme with its creditors, one of which is Alam Maritim.
The amount owing by Vastalux to its creditors is about RM146.8 million, to be resolved through: i) new ordinary shares of Vastalux (20%); ii) redeemable cumulative unsecured loan stocks (RCULS) (50%), and iii) the balance 30% to be waived.
Alam together with the other creditors has until Friday to decide whether to accept the proposal, to re-negotiate further, or consider the amount owing as bad debts.
'We understand that management is still considering their options and no decision had been made to date. Also, we gathered that the amount owing to Alam is less than RM30 million,' said the research house
Company Name: ALAM MARITIM RESOURCES BHD
Research House: OSK
KUALA LUMPUR: OSK Research has cautioned of potential provision for doubtful debts by Alam Maritim following its exposure to Vastalux which is currently undergoing debt restructuring.
'We are downgrading our FY10-11 earnings by 12%-18% respectively and cut the stock to a Neutral, with a lower target price of RM1,' it said on Thursday, Dec 2. The previous target price was RM1.46.
OSK Research said Vastalux had proposed a debt restructuring scheme with its creditors, one of which is Alam Maritim.
The amount owing by Vastalux to its creditors is about RM146.8 million, to be resolved through: i) new ordinary shares of Vastalux (20%); ii) redeemable cumulative unsecured loan stocks (RCULS) (50%), and iii) the balance 30% to be waived.
Alam together with the other creditors has until Friday to decide whether to accept the proposal, to re-negotiate further, or consider the amount owing as bad debts.
'We understand that management is still considering their options and no decision had been made to date. Also, we gathered that the amount owing to Alam is less than RM30 million,' said the research house
DIALOG - OSK Research maintains TP for Dialog at RM1.47
Stock Name: DIALOG
Company Name: DIALOG GROUP BHD
Research House: OSK
KUALA LUMPUR: OSK Research is maintaining its'' target price for DIALOG GROUP BHD [] at RM1.47 based on a sum-of-parts valuation following the latest corporate development involving the acquisition of Fitzroy Engineering Group Limited (FEGL) for a total cash consideration of NZ$13.5 million (RM31.7m).
'We understand that FEGL has been generating an average net profit of about NZ$3 million (RM7 million) over the past three years. This amount is of course immaterial compared to our net profit forecast for Dialog of about RM139 million and RM149 million for FY11 and FY12 respectively.
'Given that the earnings contribution for Dialog's FY11 is immaterial as announced, we are keeping our FY11-12 earnings unchanged for now,' it said on Thursday, Dec 2.
The acquisition of FEGL to strengthen and enhance its fabrication business in the O&G and petrochemical industries. This would also enable it to penetrate into the New Zealand and Australian markets.
Company Name: DIALOG GROUP BHD
Research House: OSK
KUALA LUMPUR: OSK Research is maintaining its'' target price for DIALOG GROUP BHD [] at RM1.47 based on a sum-of-parts valuation following the latest corporate development involving the acquisition of Fitzroy Engineering Group Limited (FEGL) for a total cash consideration of NZ$13.5 million (RM31.7m).
'We understand that FEGL has been generating an average net profit of about NZ$3 million (RM7 million) over the past three years. This amount is of course immaterial compared to our net profit forecast for Dialog of about RM139 million and RM149 million for FY11 and FY12 respectively.
'Given that the earnings contribution for Dialog's FY11 is immaterial as announced, we are keeping our FY11-12 earnings unchanged for now,' it said on Thursday, Dec 2.
The acquisition of FEGL to strengthen and enhance its fabrication business in the O&G and petrochemical industries. This would also enable it to penetrate into the New Zealand and Australian markets.
DELLOYD - Best numbers on record for Delloyd Ventures
Stock Name: DELLOYD
Company Name: DELLOYD VENTURES BHD
Research House: OSK
Delloyd Ventures Bhd
(DEC 2, RM3.13)
Maintain buy at RM3.13 with target price RM3.90: Delloyd Ventures (DV) registered a core net profit of RM13.3 million for the quarter on the back of revenue of RM99 million, with quarter-on-quarter (q-o-q) growth of 10% and 30.7% respectively. Revenue growth was witnessed across all segments, as DV reaped the benefits from its robust Indonesian autoparts division and higher output from its plantation side, which saw earnings more than double q-o-q as we expected.
While the results were lower at the PBT level (as minority income was somewhat distorted by translation losses), representing 71% of our full-year forecast (in line with consensus nonetheless), we deem the results in line as we expect to see another uptick in earnings in 4Q in view of the uptrend in crude palm oil (CPO) prices and the delivery of its buses.
DV's margins continued to expand, with earnings before interest and tax (Ebit) margin rising to its highest level of 17% owing to significant yield improvement in its plantation division amid surging CPO prices in the past few months. However, auto margins during the period were relatively lower as the lower volume generated from its Malaysia operation affected margins, while its distribution division has become operationally profitable given the increase in number of vehicles sold.
We remain optimistic on DV's prospects and diversification into the plantation business, which have proven the naysayers wrong. DV also benefitted from the growth of its automotive autoparts segment in Indonesia,which capitalised on the robust demand for vehicles in that country, and increasing orders for its elongated buses. With our earnings unchanged, we retain our target price of RM3.90 and 'buy' call. ' OSK Investment Research, DEC 2
Company Name: DELLOYD VENTURES BHD
Research House: OSK
Delloyd Ventures Bhd
(DEC 2, RM3.13)
Maintain buy at RM3.13 with target price RM3.90: Delloyd Ventures (DV) registered a core net profit of RM13.3 million for the quarter on the back of revenue of RM99 million, with quarter-on-quarter (q-o-q) growth of 10% and 30.7% respectively. Revenue growth was witnessed across all segments, as DV reaped the benefits from its robust Indonesian autoparts division and higher output from its plantation side, which saw earnings more than double q-o-q as we expected.
While the results were lower at the PBT level (as minority income was somewhat distorted by translation losses), representing 71% of our full-year forecast (in line with consensus nonetheless), we deem the results in line as we expect to see another uptick in earnings in 4Q in view of the uptrend in crude palm oil (CPO) prices and the delivery of its buses.
DV's margins continued to expand, with earnings before interest and tax (Ebit) margin rising to its highest level of 17% owing to significant yield improvement in its plantation division amid surging CPO prices in the past few months. However, auto margins during the period were relatively lower as the lower volume generated from its Malaysia operation affected margins, while its distribution division has become operationally profitable given the increase in number of vehicles sold.
We remain optimistic on DV's prospects and diversification into the plantation business, which have proven the naysayers wrong. DV also benefitted from the growth of its automotive autoparts segment in Indonesia,which capitalised on the robust demand for vehicles in that country, and increasing orders for its elongated buses. With our earnings unchanged, we retain our target price of RM3.90 and 'buy' call. ' OSK Investment Research, DEC 2
KLK - Early Yuletide cheer for KLK
Stock Name: KLK
Company Name: KUALA LUMPUR KEPONG BHD
Research House: CIMB
Kuala Lumpur Kepong Bhd
(DEC 2, RM20.22)
Maintain trading buy at RM19.98 with revised target price RM22.84 (from RM20.20): KL Kepong's 9MFY10 net profit met expectations, squeaking 2% past our forecast and 5% past consensus forecasts. The better performance came from higher investment income and retail profit. A final single-tier dividend of 45 sen was declared, bringing the full-year net dividend to 60 sen, above our forecast of 50 sen.
We are raising our FY11/12 EPS forecasts by 2% to 6% for higher retail profit and rubber prices. Our sum-of-parts-based target price increases from RM20.20 to RM22.84 as we apply a higher price-to-book ratio to its property and retail divisions due to rising land values and Crabtree & Evelyn's improved performance.
KLK remains a 'trading buy' and our top pick among the Malaysian planters as we are positive on crude palm oil (CPO) price and fresh fruit bunch (FFB) output growth prospects for KLK. Potential catalysts include higher CPO prices and potential M&A.
In fourth quarter (4Q), the group recorded a higher write-back of RM76 million relating to its investment in Yule Catto. However, this was partially offset by the impairment of some manufacturing assets. The retail division, represented by Crabtree, posted lower losses due to successful restructuring aimed at reducing operating costs. The effective tax rate was also marginally lower than expected due to tax allowances.
In 4Q, net profit grew 28% year-on-year (y-o-y) due to higher contributions from all divisions except manufacturing. Plantation profit rose 19% y-o-y as a result of higher production (+5% y-o-y) and better selling prices for its palm products and rubber.
Losses from the retail division narrowed due to successful efforts to cut costs for its overseas operations. Manufacturing earnings slumped 52% y-o-y because of lower profit margins from its oloechemical division and impairment of assets in a non-oleochem ical subsidiary. For the full-year, the group posted a 65% jump in its net profit, thanks to better performances from all its divisions plus a higher write-back of the allowance for diminution in the value of investments.
We expect the group to record earnings growth of 13% in 2011, driven by: (i) increased FFB output due to higher yields from its young estates and new mature areas; (ii) stronger earnings from its manufacturing division due to increased capacity and improved demand for oleochemical products; and (iii) higher earnings contribution from its retail division following a successful restructuring. ' CIMB Research, DEC 2
Company Name: KUALA LUMPUR KEPONG BHD
Research House: CIMB
Kuala Lumpur Kepong Bhd
(DEC 2, RM20.22)
Maintain trading buy at RM19.98 with revised target price RM22.84 (from RM20.20): KL Kepong's 9MFY10 net profit met expectations, squeaking 2% past our forecast and 5% past consensus forecasts. The better performance came from higher investment income and retail profit. A final single-tier dividend of 45 sen was declared, bringing the full-year net dividend to 60 sen, above our forecast of 50 sen.
We are raising our FY11/12 EPS forecasts by 2% to 6% for higher retail profit and rubber prices. Our sum-of-parts-based target price increases from RM20.20 to RM22.84 as we apply a higher price-to-book ratio to its property and retail divisions due to rising land values and Crabtree & Evelyn's improved performance.
KLK remains a 'trading buy' and our top pick among the Malaysian planters as we are positive on crude palm oil (CPO) price and fresh fruit bunch (FFB) output growth prospects for KLK. Potential catalysts include higher CPO prices and potential M&A.
In fourth quarter (4Q), the group recorded a higher write-back of RM76 million relating to its investment in Yule Catto. However, this was partially offset by the impairment of some manufacturing assets. The retail division, represented by Crabtree, posted lower losses due to successful restructuring aimed at reducing operating costs. The effective tax rate was also marginally lower than expected due to tax allowances.
In 4Q, net profit grew 28% year-on-year (y-o-y) due to higher contributions from all divisions except manufacturing. Plantation profit rose 19% y-o-y as a result of higher production (+5% y-o-y) and better selling prices for its palm products and rubber.
Losses from the retail division narrowed due to successful efforts to cut costs for its overseas operations. Manufacturing earnings slumped 52% y-o-y because of lower profit margins from its oloechemical division and impairment of assets in a non-oleochem ical subsidiary. For the full-year, the group posted a 65% jump in its net profit, thanks to better performances from all its divisions plus a higher write-back of the allowance for diminution in the value of investments.
We expect the group to record earnings growth of 13% in 2011, driven by: (i) increased FFB output due to higher yields from its young estates and new mature areas; (ii) stronger earnings from its manufacturing division due to increased capacity and improved demand for oleochemical products; and (iii) higher earnings contribution from its retail division following a successful restructuring. ' CIMB Research, DEC 2
JCY - JCY at fresh low since listing as results disappoint, downgrade
Stock Name: JCY
Company Name: JCY INTERNATIONAL BERHAD
Research House: CIMB
KUALA LUMPUR: JCY International Bhd's shares fell to their lowest since listing after the hard-disk drive manufacturer posted fourth quarter losses and was downgraded by analysts.
At 4.06pm, it was down 5.5 sen to 84 sen with 15.6 million shares done on Wednesday, Dec 1.
CIMB Equities Research had downgraded JCY to Underperformwith a target price of 92 sen after it slipped into the red in 4QFY10 with a net loss of RM22 million (RM73.5m profit in 4QFY09), which took FY10 net profit to RM176 million (-15% yoy), 33% below consensus and our forecast.
The negative surprises were lower-than-expected sales and a more severe margin erosion arising from the weaker US$ and higher costs.
'We slash our FY11-12 EPS estimates by 20-28%. In view of the murky near-term outlook and P/E compression for HDD suppliers, we cut our target P/E from 12x CY11 to 8x CY12, in line with the industry average. This reduces our target price from RM1.88 to 92 sen.
'We downgrade the stock from Outperform to UNDERPERFORM as the stock could be de-rated by these poor results. Although we remain positive on its long-term prospects, we believe a better time to revisit the stock would be 2H11,' it said.
Company Name: JCY INTERNATIONAL BERHAD
Research House: CIMB
KUALA LUMPUR: JCY International Bhd's shares fell to their lowest since listing after the hard-disk drive manufacturer posted fourth quarter losses and was downgraded by analysts.
At 4.06pm, it was down 5.5 sen to 84 sen with 15.6 million shares done on Wednesday, Dec 1.
CIMB Equities Research had downgraded JCY to Underperformwith a target price of 92 sen after it slipped into the red in 4QFY10 with a net loss of RM22 million (RM73.5m profit in 4QFY09), which took FY10 net profit to RM176 million (-15% yoy), 33% below consensus and our forecast.
The negative surprises were lower-than-expected sales and a more severe margin erosion arising from the weaker US$ and higher costs.
'We slash our FY11-12 EPS estimates by 20-28%. In view of the murky near-term outlook and P/E compression for HDD suppliers, we cut our target P/E from 12x CY11 to 8x CY12, in line with the industry average. This reduces our target price from RM1.88 to 92 sen.
'We downgrade the stock from Outperform to UNDERPERFORM as the stock could be de-rated by these poor results. Although we remain positive on its long-term prospects, we believe a better time to revisit the stock would be 2H11,' it said.
Wednesday, December 1, 2010
WASEONG - OSK Research: Wah Seong results below consensus
Stock Name: WASEONG
Company Name: WAH SEONG CORPORATION BHD
Research House: OSK
KUALA LUMPUR: OSK Research said Wah Seong Corp Bhd's 9MFY10 results were below consensus and its estimates, making up 39% and 37% of consensus and its FY10 forecasts respectively.
The research house said on Wednesday, Dec 1 the continuously poor performance was mainly due to delay in the commencement of the Gorgon pipe coating project by about two months due to changes in specifications.
th'However, we have reduced the target price for Wah Seong to RM2 (previously RM2.40) based on the existing PER of 14 times on FY11 earnings following our FY11 earnings downgrade. We believe the company is still supported by an orderbook of more than RM1 billion,' it said.
Company Name: WAH SEONG CORPORATION BHD
Research House: OSK
KUALA LUMPUR: OSK Research said Wah Seong Corp Bhd's 9MFY10 results were below consensus and its estimates, making up 39% and 37% of consensus and its FY10 forecasts respectively.
The research house said on Wednesday, Dec 1 the continuously poor performance was mainly due to delay in the commencement of the Gorgon pipe coating project by about two months due to changes in specifications.
th'However, we have reduced the target price for Wah Seong to RM2 (previously RM2.40) based on the existing PER of 14 times on FY11 earnings following our FY11 earnings downgrade. We believe the company is still supported by an orderbook of more than RM1 billion,' it said.
JCY falls on 4Q net losses
KUALA LUMPUR: Shares of JCY International Bhd fell in active trade on Wednesday, Dec 1 after it reported net losses of RM22.55 million in the fourth quarter ended Sept 30, 2010.
At 9.03am, JCY was down 3.5 sen to 86 sen with 1.21 million shares done.
The FBM KLCI fell 2.19 points to 1,483.04. Turnover was 16.48 million shares valued at RM16 million. There were 33 gainers, 36 losers and 48 stocks unchanged.
The hard-disk drive manufacturer posted net losses following a decline in the average selling price (ASP) and adverse foreign exchange losses. Revenue declined 3% to RM485.97 million from RM501.21 million a year ago while loss per share was 1.1 sen compared with earnings per share of 3.59 sen.
JCY, in its outlook, said consumer spending in the US and Europe was still weak and the on-going debt crisis of some of the European countries had continued to affect the recovery of the demand for HDD products.
Written by Joseph Chin
At 9.03am, JCY was down 3.5 sen to 86 sen with 1.21 million shares done.
The FBM KLCI fell 2.19 points to 1,483.04. Turnover was 16.48 million shares valued at RM16 million. There were 33 gainers, 36 losers and 48 stocks unchanged.
The hard-disk drive manufacturer posted net losses following a decline in the average selling price (ASP) and adverse foreign exchange losses. Revenue declined 3% to RM485.97 million from RM501.21 million a year ago while loss per share was 1.1 sen compared with earnings per share of 3.59 sen.
JCY, in its outlook, said consumer spending in the US and Europe was still weak and the on-going debt crisis of some of the European countries had continued to affect the recovery of the demand for HDD products.
Written by Joseph Chin
GLOBAL MARKETS-Euro sinks on Portugal debt woes; stocks down
NEW YORK: Growing fears about Portugal's debt drove the euro to a 10-week low against the dollar on Tuesday, Nov 30, while U.S. stocks fell for a third straight day even as the U.S. economy showed some encouraging signs.
The euro fell below the technically critical $1.30 level after Standard and Poor's put Portugal's A-minus credit ratings on review for a possible downgrade, citing uncertainties related to a possible financial rescue by the European Union and the International Monetary Fund.
Investors fled to to safe-haven assets on the worries about euro zone sovereign debt, driving U.S. government bond prices higher and sending gold prices to a 2-1/2 week peak.
The strengthening dollar helped drive down the price of oil by almost 2 percent, adding to ongoing concerns about China's economic growth.
The pressure is building around debt-soaked Portugal and Spain as investors worry about a repeat of this year's Irish and Greek bailouts.
Although Lisbon, much like Ireland earlier, denies Portugal needs aid, markets are already discounting an eventual Portuguese emergency financial rescue.
While rescuing Portugal would be manageable, assistance for Spain would sorely test the European Union's resources, raising deeper questions about the integrity of its 12-year-old currency and possible contagion beyond Europe.
S&P late on Tuesday said it was placing its A-minus long-term and A-2 short-term ratings on Portugal on creditwatch with negative implications, meaning a possibility of a downgrade.
"The market has taken what to happened to Ireland as a road stop, not the final destination," said Vincent Boberski, senior vice president at Vining Sparks in Memphis, Tennessee.
The spreads on bonds of peripheral European countries rose to new highs on Tuesday amid concern weak member states may ultimately be forced to default.
EUROPEAN JITTERS
On Wall Street, stocks finished lower, but showed some resilience as the Conference Board, an industry group, reported that U.S. consumer confidence rose to its highest level in five months in November.
In another positive sign, the Institute for Supply Management-Chicago reported that U.S. Midwest business activity grew faster than expected in November.
The Dow Jones industrial average closed down 46.47 points, or 0.42 percent, at 11,006.02. The Standard & Poor's 500 Index dipped 7.21 points, or 0.61 percent, at 1,180.55. The Nasdaq Composite Index shed 26.99 points, or 1.07 percent, at 2,498.23.
Google Inc shed 4.5 percent to $555.71 following media reports that the company was close to a deal to buy local advertising website Groupon Inc in what could be the Web search leader's biggest acquisition to date.
"You do have a bit of a tug of war between those investors who see the environment as positive for equities over the intermediate to long-term (and) traders who are more concerned about the short-term impact of European debt concerns," said Tim Ghriskey, chief investment officer of Solaris Asset Management in Bedford Hills, New York.
In Europe, the FTSEurofirst 300 index of top European companies closed 0.2 percent lower at 1,067.22 points, posting a 1.8 percent loss for November, its heaviest monthly slump since May.
In Europe, The December futures contract for the Nikkei 225 stock index trading in Chicago fell 155 points to 9,940.
MSCI's all country world index was down 0.62 percent.
The euro posted its worst month since May on Tuesday, with more losses likely next month.
"The European credit market is in panic mode because of fears of insolvency, and the euro is trading off those credit yields," said Boris Schlossberg, director of FX research at GFT in New York.
"For the euro to stabilize, credit yields need to stabilize and for that to happen, we need action from the European Central Bank. The Irish bailout was not enough and so the pressure is building."
The euro fell to $1.2980, its lowest level since mid-September, amid fear of regional contagion and uncertainty over the currency's future.
With the spotlight on the euro, the dollar continued to gain, hitting a more than two-month high against a currency basket at 81.310.
U.S. Treasuries prices rose on the anxiety over the fiscal and debt problems in Europe, but the bond market was still poised for its worst month since December 2009.
The benchmark 10-year U.S. Treasury note was up 5/32, with the yield at 2.8077 percent. The two-year U.S. Treasury note rose 3/32, with the yield at 0.4607 percent. The 30-year U.S. Treasury bond gained to 12/32, with the yield at 4.1203 percent.
U.S. crude oil settled down 1.89 percent to $84.10 per barrel, and spot gold prices rose $17.16, or 1.26 percent, to $1383.60 an ounce, a 2-1/2 week-high as investors bought the metal as a safe store of value. - Reuters
The euro fell below the technically critical $1.30 level after Standard and Poor's put Portugal's A-minus credit ratings on review for a possible downgrade, citing uncertainties related to a possible financial rescue by the European Union and the International Monetary Fund.
Investors fled to to safe-haven assets on the worries about euro zone sovereign debt, driving U.S. government bond prices higher and sending gold prices to a 2-1/2 week peak.
The strengthening dollar helped drive down the price of oil by almost 2 percent, adding to ongoing concerns about China's economic growth.
The pressure is building around debt-soaked Portugal and Spain as investors worry about a repeat of this year's Irish and Greek bailouts.
Although Lisbon, much like Ireland earlier, denies Portugal needs aid, markets are already discounting an eventual Portuguese emergency financial rescue.
While rescuing Portugal would be manageable, assistance for Spain would sorely test the European Union's resources, raising deeper questions about the integrity of its 12-year-old currency and possible contagion beyond Europe.
S&P late on Tuesday said it was placing its A-minus long-term and A-2 short-term ratings on Portugal on creditwatch with negative implications, meaning a possibility of a downgrade.
"The market has taken what to happened to Ireland as a road stop, not the final destination," said Vincent Boberski, senior vice president at Vining Sparks in Memphis, Tennessee.
The spreads on bonds of peripheral European countries rose to new highs on Tuesday amid concern weak member states may ultimately be forced to default.
EUROPEAN JITTERS
On Wall Street, stocks finished lower, but showed some resilience as the Conference Board, an industry group, reported that U.S. consumer confidence rose to its highest level in five months in November.
In another positive sign, the Institute for Supply Management-Chicago reported that U.S. Midwest business activity grew faster than expected in November.
The Dow Jones industrial average closed down 46.47 points, or 0.42 percent, at 11,006.02. The Standard & Poor's 500 Index dipped 7.21 points, or 0.61 percent, at 1,180.55. The Nasdaq Composite Index shed 26.99 points, or 1.07 percent, at 2,498.23.
Google Inc shed 4.5 percent to $555.71 following media reports that the company was close to a deal to buy local advertising website Groupon Inc in what could be the Web search leader's biggest acquisition to date.
"You do have a bit of a tug of war between those investors who see the environment as positive for equities over the intermediate to long-term (and) traders who are more concerned about the short-term impact of European debt concerns," said Tim Ghriskey, chief investment officer of Solaris Asset Management in Bedford Hills, New York.
In Europe, the FTSEurofirst 300 index of top European companies closed 0.2 percent lower at 1,067.22 points, posting a 1.8 percent loss for November, its heaviest monthly slump since May.
In Europe, The December futures contract for the Nikkei 225 stock index trading in Chicago fell 155 points to 9,940.
MSCI's all country world index was down 0.62 percent.
The euro posted its worst month since May on Tuesday, with more losses likely next month.
"The European credit market is in panic mode because of fears of insolvency, and the euro is trading off those credit yields," said Boris Schlossberg, director of FX research at GFT in New York.
"For the euro to stabilize, credit yields need to stabilize and for that to happen, we need action from the European Central Bank. The Irish bailout was not enough and so the pressure is building."
The euro fell to $1.2980, its lowest level since mid-September, amid fear of regional contagion and uncertainty over the currency's future.
With the spotlight on the euro, the dollar continued to gain, hitting a more than two-month high against a currency basket at 81.310.
U.S. Treasuries prices rose on the anxiety over the fiscal and debt problems in Europe, but the bond market was still poised for its worst month since December 2009.
The benchmark 10-year U.S. Treasury note was up 5/32, with the yield at 2.8077 percent. The two-year U.S. Treasury note rose 3/32, with the yield at 0.4607 percent. The 30-year U.S. Treasury bond gained to 12/32, with the yield at 4.1203 percent.
U.S. crude oil settled down 1.89 percent to $84.10 per barrel, and spot gold prices rose $17.16, or 1.26 percent, to $1383.60 an ounce, a 2-1/2 week-high as investors bought the metal as a safe store of value. - Reuters
Rice May Triple in 18 Months as Supplies Tighten, Duxton Says
Dec. 1 () -- Rice, the staple food of more than three billion people, may as much as triple in 18 months as supplies tighten after flooding in exporters including Thailand and demand climbs, according to Duxton Asset Management Pte.
“Rice will blow out the stocks,” said Ed Peter, chief executive officer, who co-founded the company last year with Managing Director Desmond Sheehy. Both worked at Deutsche Asset Management and the Deutsche Bank AG unit owns 19.9 percent of Duxton, while Peter, Sheehy and staff own the rest. Duxton, based in Singapore, invests in farmland, Asian stocks and wine.
Peter’s forecast, in an interview on Nov. 29, would put rice at more than the peak during the 2008 food crisis, which triggered social unrest in poorer states. Wheat and corn also surged that year, while record oil prices boosted fertilizer costs. Kiattisak Kanlayasirivat at Novel Commodities SA, which trades rice, said farmers can replant quickly as floods recede.
“A price increase of 10 percent to 20 percent would be considered quite a lot, not to mention double or triple,” said Kiattisak, a director at Novel Commodities’s Thai office, which handles about 1.5 million metric tons of rice a year.
Thai 100-percent grade-B white export rice, the Asian benchmark, peaked at $1,038 per ton in May 2008. The grain was at $551 last week, up 15 percent since the end of June, according to the Thai Rice Exporters Association. “Prices will triple over the next 18 months,” Peter said in the interview.
Investment Strategy
Duxton oversees about $600 million, allocating 50 percent to farmland in Australia, Argentina, Zambia and Tanzania and about 45 percent to Vietnamese shares. Peter had headed Deutsche Asset Management for Asia Pacific, Middle East and North Africa, while Sheehy was in charge of that unit’s complex-asset team, which focuses on non-traditional investments including farms.
The most severe floods in five decades in Thailand, the top exporter, may trigger a 7 percent fall in rough-rice production, which accounts for 70 percent of its total output, the Agriculture and Cooperative Ministry has said. Crops in Vietnam and Pakistan have also been hurt by severe weather, while a typhoon cut harvests in the Philippines, the biggest importer.
Rice inventories held by the world’s five biggest exporters will likely decline next year, tightening supply, Concepcion Calpe, senior economist at the Food & Agriculture Organization said in October. Prices were “unlikely to fall,” Calpe said.
At the end of the 2010-2011 marketing year, world stockpiles stood at 94.266 million tons, 1.2 percent less than the previous year’s estimate, according to U.S. Department of Agriculture data posted on its website.
“Rice is a long-term bet,” Duxton’s Sheehy said. Farm products including rice may outperform metals and fuel over the long term as the global population expands, Sheehy said.
Rice on the Chicago Board of Trade jumped 37 percent from the end of June, beating the advances in gold, copper and oil, three commodities that are more traded among investors than the cereal. Chicago futures were at $13.99 per 100 pounds today.
“Once floods subside, farmers can start new crops,” Novel’s Kiattisak said. Thai state stockpiles are about 2 million tons, he said. A Thai crop matures in four months.
--With assistance from Luzi Ann Javier in Singapore and Supunnabul Suwannakij in Bangkok.
By Chanyaporn Chanjaroen
“Rice will blow out the stocks,” said Ed Peter, chief executive officer, who co-founded the company last year with Managing Director Desmond Sheehy. Both worked at Deutsche Asset Management and the Deutsche Bank AG unit owns 19.9 percent of Duxton, while Peter, Sheehy and staff own the rest. Duxton, based in Singapore, invests in farmland, Asian stocks and wine.
Peter’s forecast, in an interview on Nov. 29, would put rice at more than the peak during the 2008 food crisis, which triggered social unrest in poorer states. Wheat and corn also surged that year, while record oil prices boosted fertilizer costs. Kiattisak Kanlayasirivat at Novel Commodities SA, which trades rice, said farmers can replant quickly as floods recede.
“A price increase of 10 percent to 20 percent would be considered quite a lot, not to mention double or triple,” said Kiattisak, a director at Novel Commodities’s Thai office, which handles about 1.5 million metric tons of rice a year.
Thai 100-percent grade-B white export rice, the Asian benchmark, peaked at $1,038 per ton in May 2008. The grain was at $551 last week, up 15 percent since the end of June, according to the Thai Rice Exporters Association. “Prices will triple over the next 18 months,” Peter said in the interview.
Investment Strategy
Duxton oversees about $600 million, allocating 50 percent to farmland in Australia, Argentina, Zambia and Tanzania and about 45 percent to Vietnamese shares. Peter had headed Deutsche Asset Management for Asia Pacific, Middle East and North Africa, while Sheehy was in charge of that unit’s complex-asset team, which focuses on non-traditional investments including farms.
The most severe floods in five decades in Thailand, the top exporter, may trigger a 7 percent fall in rough-rice production, which accounts for 70 percent of its total output, the Agriculture and Cooperative Ministry has said. Crops in Vietnam and Pakistan have also been hurt by severe weather, while a typhoon cut harvests in the Philippines, the biggest importer.
Rice inventories held by the world’s five biggest exporters will likely decline next year, tightening supply, Concepcion Calpe, senior economist at the Food & Agriculture Organization said in October. Prices were “unlikely to fall,” Calpe said.
At the end of the 2010-2011 marketing year, world stockpiles stood at 94.266 million tons, 1.2 percent less than the previous year’s estimate, according to U.S. Department of Agriculture data posted on its website.
“Rice is a long-term bet,” Duxton’s Sheehy said. Farm products including rice may outperform metals and fuel over the long term as the global population expands, Sheehy said.
Rice on the Chicago Board of Trade jumped 37 percent from the end of June, beating the advances in gold, copper and oil, three commodities that are more traded among investors than the cereal. Chicago futures were at $13.99 per 100 pounds today.
“Once floods subside, farmers can start new crops,” Novel’s Kiattisak said. Thai state stockpiles are about 2 million tons, he said. A Thai crop matures in four months.
--With assistance from Luzi Ann Javier in Singapore and Supunnabul Suwannakij in Bangkok.
By Chanyaporn Chanjaroen
Australia’s Economy Expands 0.2%, Less Than Expected
Dec. 1 () -- Australia’s economy expanded at half the pace economists forecast in the third quarter as a stronger currency hurt exports.
Gross domestic product advanced 0.2 percent from the second quarter, when it rose a revised 1.1 percent, the Bureau of Statistics said in Sydney today. That compares with the median forecast for a 0.4 percent gain in a Bloomberg News survey of 21 economists.
The report reflects Reserve Bank of Australia rate increases aimed at cooling inflation sparked by a mining- industry expansion that Governor Glenn Stevens said this week will extend “over a longish horizon.” Tighter monetary policy, less housing aid and a gain in the local dollar this year have weakened consumer demand and slowed sales abroad.
“There is no doubt that the domestic economy is limping along at present,” Savanth Sebastian, an economist at Commonwealth Bank of Australia in Sydney, said before the report. “Activity has been subdued with consumers keeping a tight rein on spending, while domestic businesses are also feeling the pinch of higher interest rates.”
Exports fell 2.4 percent in the quarter, subtracting 0.6 percentage point from GDP, today’s report showed. Household spending increased 0.6 percent, adding 0.3 percentage point.
2.7% Annual
The economy grew 2.7 percent from a year earlier, the report showed. Economists forecast a 3.4 percent expansion.
A private report earlier today showed Australian manufacturing contracted in November for a third month as the nation’s surging currency eroded demand for exports and higher borrowing costs curbed consumer spending.
The performance of manufacturing index fell to 47.6 from 49.4 in October, the Australian Industry Group and PricewaterhouseCoopers said in a survey released in Canberra today. A number below 50 indicates contraction. Capacity utilization fell to 74.6 percent from a 2 ½-year high of 77.4 percent, the report showed.
The RBA said in a release yesterday that loans provided by Australian banks and finance companies rose 0.1 percent in October from the previous month, when they were flat. Lending to companies fell 0.8 percent from September and 3.2 percent from a year earlier, the central bank said.
Australian business confidence fell for a second month in October as conditions deteriorated to the weakest in more than a year on declining profitability for retail and construction companies, according to a private monthly survey released Nov. 9.
‘Conservative Mood’
“Until the conservative mood of Australians changes, the economy will continue to struggle and the Reserve Bank will stay on the interest rate sidelines,” Sebastian said.
Even so, the nation’s employers added 106,200 jobs from July through September, the biggest increase in four years. That helped strengthen the local currency 15 percent against the U.S. dollar in the third quarter, according to Bloomberg data.
A stronger currency weighs on export sales, which account for about one-fifth of the country’s GDP.
“Exports growth softened but followed an exceptionally strong performance in the second quarter,” Matthew Circosta, an economist at Moody’s Analytics in Sydney, said before the report. “Shipments of coal and iron ore to China slowed as the Chinese scaled back steel production.”
RBA’s Outlook
In testimony last week to lawmakers in Canberra, Governor Glenn Stevens reiterated the central bank’s outlook for growth of about 3.5 percent in 2011 and 2012. He added that “it would take only pretty moderate growth in the second half of the year to achieve that forecast for 2010.”
Policy makers expect annual growth to accelerate, boosted by projects such as BG Group Plc’s $15 billion liquefied natural gas venture in Queensland, generating 5,000 construction jobs and potentially stoking inflation pressures.
BG, Chevron Corp., Royal Dutch Shell Plc and ConocoPhillips are among energy companies investing about A$200 billion in proposed LNG projects in Australia.
“On all the indications available, we are living through an event that occurs maybe once or twice in a century,” Stevens said in an address to a Committee for Economic Development of Australia event in Melbourne two days ago. “We obviously have to be wary of overheating.”
A report yesterday showed Australian home-building approvals snapped a six-month decline in October. The number of permits granted to build or renovate houses and apartments surged 9.3 percent from September, the Bureau of Statistics said in Sydney. That exceeded the median forecast for a 1.4 percent gain in a survey.
By Michael Heath
Gross domestic product advanced 0.2 percent from the second quarter, when it rose a revised 1.1 percent, the Bureau of Statistics said in Sydney today. That compares with the median forecast for a 0.4 percent gain in a Bloomberg News survey of 21 economists.
The report reflects Reserve Bank of Australia rate increases aimed at cooling inflation sparked by a mining- industry expansion that Governor Glenn Stevens said this week will extend “over a longish horizon.” Tighter monetary policy, less housing aid and a gain in the local dollar this year have weakened consumer demand and slowed sales abroad.
“There is no doubt that the domestic economy is limping along at present,” Savanth Sebastian, an economist at Commonwealth Bank of Australia in Sydney, said before the report. “Activity has been subdued with consumers keeping a tight rein on spending, while domestic businesses are also feeling the pinch of higher interest rates.”
Exports fell 2.4 percent in the quarter, subtracting 0.6 percentage point from GDP, today’s report showed. Household spending increased 0.6 percent, adding 0.3 percentage point.
2.7% Annual
The economy grew 2.7 percent from a year earlier, the report showed. Economists forecast a 3.4 percent expansion.
A private report earlier today showed Australian manufacturing contracted in November for a third month as the nation’s surging currency eroded demand for exports and higher borrowing costs curbed consumer spending.
The performance of manufacturing index fell to 47.6 from 49.4 in October, the Australian Industry Group and PricewaterhouseCoopers said in a survey released in Canberra today. A number below 50 indicates contraction. Capacity utilization fell to 74.6 percent from a 2 ½-year high of 77.4 percent, the report showed.
The RBA said in a release yesterday that loans provided by Australian banks and finance companies rose 0.1 percent in October from the previous month, when they were flat. Lending to companies fell 0.8 percent from September and 3.2 percent from a year earlier, the central bank said.
Australian business confidence fell for a second month in October as conditions deteriorated to the weakest in more than a year on declining profitability for retail and construction companies, according to a private monthly survey released Nov. 9.
‘Conservative Mood’
“Until the conservative mood of Australians changes, the economy will continue to struggle and the Reserve Bank will stay on the interest rate sidelines,” Sebastian said.
Even so, the nation’s employers added 106,200 jobs from July through September, the biggest increase in four years. That helped strengthen the local currency 15 percent against the U.S. dollar in the third quarter, according to Bloomberg data.
A stronger currency weighs on export sales, which account for about one-fifth of the country’s GDP.
“Exports growth softened but followed an exceptionally strong performance in the second quarter,” Matthew Circosta, an economist at Moody’s Analytics in Sydney, said before the report. “Shipments of coal and iron ore to China slowed as the Chinese scaled back steel production.”
RBA’s Outlook
In testimony last week to lawmakers in Canberra, Governor Glenn Stevens reiterated the central bank’s outlook for growth of about 3.5 percent in 2011 and 2012. He added that “it would take only pretty moderate growth in the second half of the year to achieve that forecast for 2010.”
Policy makers expect annual growth to accelerate, boosted by projects such as BG Group Plc’s $15 billion liquefied natural gas venture in Queensland, generating 5,000 construction jobs and potentially stoking inflation pressures.
BG, Chevron Corp., Royal Dutch Shell Plc and ConocoPhillips are among energy companies investing about A$200 billion in proposed LNG projects in Australia.
“On all the indications available, we are living through an event that occurs maybe once or twice in a century,” Stevens said in an address to a Committee for Economic Development of Australia event in Melbourne two days ago. “We obviously have to be wary of overheating.”
A report yesterday showed Australian home-building approvals snapped a six-month decline in October. The number of permits granted to build or renovate houses and apartments surged 9.3 percent from September, the Bureau of Statistics said in Sydney. That exceeded the median forecast for a 1.4 percent gain in a survey.
By Michael Heath
Most Japanese Stocks Fall on Europe Concern, Analyst Ratings
Dec. 1 () -- Most Japanese stocks fell after analysts cut investment recommendations and the euro depreciated to an 11-week low against the yen, damping the outlook for export earnings.
Panasonic Corp., an electronics maker that gets about 10 percent of its sales in Europe, dropped 0.8 percent as the euro weakened after Standard & Poor’s said it may cut Portugal’s credit ratings. Advantest Corp., the world’s biggest maker of chip-testing equipment, lost 0.8 percent. Asahi Glass Co. and Nippon Electric Glass Co. both slumped at least 3 percent after Goldman Sachs Group Inc. cut its ratings on the companies.
“The market is wary of the size of budget deficits in European nations, and that’s not the kind of issue that could be resolved in a few days,” said Hiroichi Nishi, an equities manager in Tokyo at Nikko Cordial Securities Inc.
More than four stocks declined for every three that rose in the broad Topix index, which was little changed at 861.31 as of 9:30 a.m. in Tokyo. The Nikkei 225 Stock Average gained 0.2 percent to 9,958.68.
The Topix decreased 5.1 percent this year through yesterday, compared with gains of 5.9 percent by the Standard & Poor’s 500 Index and 3.1 percent by the Stoxx Europe 600 Index. Stocks in the Japanese benchmark are valued at 14.9 times estimated earnings on average, compared with 13.9 times for the S&P 500 and 11.6 times for the Stoxx 600.
Panasonic, Europe
Panasonic decreased 0.8 percent to 1,195 yen. Advantest dropped 0.8 percent to 1,708 yen. Hoya Corp., which is Japan’s biggest maker of eyeglass lenses and gets 60 percent of its revenue abroad, slumped 2.1 percent to 1,933 yen. Olympus Corp., an optical-instrument maker that derives more than 20 percent of its sales from Europe, retreated 1.6 percent to 2,317 yen.
Standard & Poor’s Ratings Services said about 5:40 a.m. Tokyo time today that it may cut Portugal’s credit ratings on concern that the government has made little progress at boosting economic growth to offset the fiscal drag from scheduled 2011 budget cuts.
Officials meeting last weekend in Brussels agreed to an 85 billion-euro bailout ($110 billion) for Ireland, which followed Greece in getting assistance this year.
The euro weakened to 108.35 against the yen last night in Tokyo, the lowest level since Sept. 15. The dollar depreciated to 83.43 against Japan’s currency, a four-day low. Weaker foreign-exchange rates reduce the value of overseas income for Japanese companies when converted into their home currency.
Glassmakers Lead Declines
Glassmakers declined the most among the Topix’s 33 industry groups. Asahi Glass, Japan’s largest glass producer, tumbled 3.1 percent to 904 yen, the biggest drop in the Nikkei, after Goldman Sachs reduced its rating to “sell” from “neutral.” Nippon Electric Glass, which was cut to “neutral” from “buy,” sank 3 percent to 1,140 yen. Nippon Sheet Glass Co. retreated 1.5 percent to 193 yen.
Acom Co., a consumer lender, plunged 3.8 percent to 942 yen, the largest drop since Nov. 1. The company was removed from the MSCI Japan Index yesterday.
Among stocks that rose, Hitachi Cable Ltd., which makes power cables and optical fiber, jumped 3.2 percent to 228 yen, on course for the highest close since Aug. 9. Goldman Sachs raised the shares to “buy” from “neutral.”
--Editors: Nicolas Johnson, Sam Waite.
Panasonic Corp., an electronics maker that gets about 10 percent of its sales in Europe, dropped 0.8 percent as the euro weakened after Standard & Poor’s said it may cut Portugal’s credit ratings. Advantest Corp., the world’s biggest maker of chip-testing equipment, lost 0.8 percent. Asahi Glass Co. and Nippon Electric Glass Co. both slumped at least 3 percent after Goldman Sachs Group Inc. cut its ratings on the companies.
“The market is wary of the size of budget deficits in European nations, and that’s not the kind of issue that could be resolved in a few days,” said Hiroichi Nishi, an equities manager in Tokyo at Nikko Cordial Securities Inc.
More than four stocks declined for every three that rose in the broad Topix index, which was little changed at 861.31 as of 9:30 a.m. in Tokyo. The Nikkei 225 Stock Average gained 0.2 percent to 9,958.68.
The Topix decreased 5.1 percent this year through yesterday, compared with gains of 5.9 percent by the Standard & Poor’s 500 Index and 3.1 percent by the Stoxx Europe 600 Index. Stocks in the Japanese benchmark are valued at 14.9 times estimated earnings on average, compared with 13.9 times for the S&P 500 and 11.6 times for the Stoxx 600.
Panasonic, Europe
Panasonic decreased 0.8 percent to 1,195 yen. Advantest dropped 0.8 percent to 1,708 yen. Hoya Corp., which is Japan’s biggest maker of eyeglass lenses and gets 60 percent of its revenue abroad, slumped 2.1 percent to 1,933 yen. Olympus Corp., an optical-instrument maker that derives more than 20 percent of its sales from Europe, retreated 1.6 percent to 2,317 yen.
Standard & Poor’s Ratings Services said about 5:40 a.m. Tokyo time today that it may cut Portugal’s credit ratings on concern that the government has made little progress at boosting economic growth to offset the fiscal drag from scheduled 2011 budget cuts.
Officials meeting last weekend in Brussels agreed to an 85 billion-euro bailout ($110 billion) for Ireland, which followed Greece in getting assistance this year.
The euro weakened to 108.35 against the yen last night in Tokyo, the lowest level since Sept. 15. The dollar depreciated to 83.43 against Japan’s currency, a four-day low. Weaker foreign-exchange rates reduce the value of overseas income for Japanese companies when converted into their home currency.
Glassmakers Lead Declines
Glassmakers declined the most among the Topix’s 33 industry groups. Asahi Glass, Japan’s largest glass producer, tumbled 3.1 percent to 904 yen, the biggest drop in the Nikkei, after Goldman Sachs reduced its rating to “sell” from “neutral.” Nippon Electric Glass, which was cut to “neutral” from “buy,” sank 3 percent to 1,140 yen. Nippon Sheet Glass Co. retreated 1.5 percent to 193 yen.
Acom Co., a consumer lender, plunged 3.8 percent to 942 yen, the largest drop since Nov. 1. The company was removed from the MSCI Japan Index yesterday.
Among stocks that rose, Hitachi Cable Ltd., which makes power cables and optical fiber, jumped 3.2 percent to 228 yen, on course for the highest close since Aug. 9. Goldman Sachs raised the shares to “buy” from “neutral.”
--Editors: Nicolas Johnson, Sam Waite.
Market opens weaker
KUALA LUMPUR: Blue chips started the new month of December on a weaker note, as sentiment was impacted by external factors and mixed corporate results.
At 9.18am, the FBM KLCI was down 2.19 points to 1,483.04. Turnover was 41.17 million shares valued at RM36.86 million. There were 39 gainers, 50 losers and 59 stocks unchanged.
KL Kepong fell 10 sen to RM20.12 with 1,700 shares done while BAT gave up eight sen to RM44.18.
MMHE lost six sen to RM4.68, Public Bank shed four sen to RM17.84 while down four sen each also were PPB, YTL and CIMB to RM17.84, RM8.20 and RM8.40 respectively.
JCY shed four sen to a fresh low of 85.5 sen after reported net losses of RM22.55 million in the fourth quarter ended Sept 30, 2010.
Written by Joseph Chin
At 9.18am, the FBM KLCI was down 2.19 points to 1,483.04. Turnover was 41.17 million shares valued at RM36.86 million. There were 39 gainers, 50 losers and 59 stocks unchanged.
KL Kepong fell 10 sen to RM20.12 with 1,700 shares done while BAT gave up eight sen to RM44.18.
MMHE lost six sen to RM4.68, Public Bank shed four sen to RM17.84 while down four sen each also were PPB, YTL and CIMB to RM17.84, RM8.20 and RM8.40 respectively.
JCY shed four sen to a fresh low of 85.5 sen after reported net losses of RM22.55 million in the fourth quarter ended Sept 30, 2010.
Written by Joseph Chin
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