AirAsia may ground airline, focus on tech, says Fernandes
https://focusmalaysia.my/mainstream/airasia-may-ground-airline-focus-on-tech-says-fernandes/

Please correct me if I'm wrong ... No doubt shares of Genting took a severe bashing in 2008, back then there wasn't this deadly COVID-19 pandemic which brought its business to a halt, right? It was all about the shares losing its value, hence the stock was able to pick up gradually as the market restored its momentum. But now the case is is so different whereby most, if not all, its revenue streams are threatened ... from its casinos to resorts to cruise businesses.

The pending dividend is Maybank's jewel in the crown. The management is smart not to reveal the ex-date. Brilliant strategy!!!

Dow trading below 20k points: 19,927.99 -260.53 -1.29%
10:01:25 - Real-time Data. Currency in USD ( Disclaimer )

Affin Hwang Capital forecasts the FBM KLCI to end 2020 as low as 1,200 from a previous 1,540, with a worst-case bear scenario seeing the index falling to the 962 levels. This is based on the revised earnings estimates and a lower target price-to-earnings ratio (PER) multiple of 14 times from 17 times previously to reflect the higher risk premium for the market.

Brent crude currently trading at the RM31.80/barrel range ... indicating a drop circa 8%. Hoping for a Bursa miracle with Malaysia now tops the COVID-19 patient list.

Dow Futures have opened, and indicate a 1,000 point drop Monday morning, despite the fed cutting interest rates to near zero. #Coronavirus #COVID19

Dow Futures have opened, and indicate a 1,000 point drop Monday morning, despite the fed cutting interest rates to near zero. #Coronavirus #COVID19

@ paktua73 to the rescue.

Margin calls on the rise as share prices plunge
https://www.thestar.com.my/business/business-news/2020/03/11/margin-calls-on-the-rise-as-share-prices-plunge

Dow futures fall 500 points while Asian markets struggle
https://edition.cnn.com/2020/03/10/investing/dow-futures-decline/index.html

AirAsia to cut pay, other staff perks due to Covid-19
https://focusmalaysia.my/mainstream/airasia-to-cut-pay-other-staff-perks-due-to-covid-19/

Malindo staff asked to take 50% pay cut.

https://focusmalaysia.my/mainstream/malindo-staff-ordered-to-take-50-pay-cut-due-to-covid-19/

PETALING JAYA: The International Air Transport Association (Iata) has warned that airlines could lose US$63bil to US$113bil in revenue for passenger traffic this year as coronavirus (Covid-19) spreads globally.

https://www.thestar.com.my/business/business-news/2020/03/06/global-airlines-may-lose-up-to-us113bil-in-revenue

Agong has appointed Muhyiddin as our 8th PM.

Buy AirAsia or Datasonic is better? Both more or less same price.

Most welcome, @Jaack1 and @pjseow. Don't forget to also read Public Bank's research which is posted on the Market Buzz section above.

Below is excerpt from the Maybank IB Research note on MFCB

A strong finish
FY19 results were significantly above our/market expectations due to one-off gains from construction profit and tax reversal in 4Q19. More importantly, Don Sahong was formally completed, and delivered its maiden energy sales. Reiterate BUY with a higher MYR6.10 TP (+11%) as Mega First transitions from accounting profits to actual cash generation in FY20.

Results significantly above
Excluding unrealised forex and fair-value adjustments, Mega First’s 4Q19 core net profit of MYR84m (+163% YoY, +484% QoQ) brings FY19 core net profit to MYR152m, 50%/47% above our/consensus forecast. The beat was mainly due to: 1) a one-off MYR39m gain in construction profit in 4Q19 following a downward revision to Don Sahong’s construction cost, and 2) a MYR14m deferred tax reversal following a reduction in Laos’ corporate tax rate. A 6en DPS was declared for FY 19 (+50% YoY), representing a 17% DPR.

Maiden (test) energy sales
The Don Sahong dam was completed in 4Q19, and delivered MYR30m of pre-tax profit from test energy sales in the quarter. The dam was commissioned in Jan 2020, and would thus contribute a full year’s worth of earnings and cashflow to Mega First in FY20. Separately, pre-tax profits of both the Resources and Property segments were lower sequentially in 4Q19 due to revenue softness.

Reiterate BUY
We raise our FY20/21 net profit by 38%/34% respectively as we reflect higher contributions from Don Sahong. Our TP is consequently raised to MYR6.10 (from MYR5.50). Our TP is based on a sum-of-parts, with power (Don Sahong) valued on DCF, resources at 12x PER, and property valued at book value. We have not yet included the proposed fifth turbine expansion at Don Sahong into our forecasts.

Harap pagar, pagar makan padi.

https://focusmalaysia.my/mainstream/epf-dumps-492500-airasia-shares-on-jan-29/

EPF dumps 492,500 AirAsia shares

THE Employees Provident Fund (EPF) disposed a substantial block of AirAsia Group Bhd (AAGB) shares on Jan 29, two days before news broke that executives of the low cost airline had allegedly received bribes from European planemaker Airbus SE.

EPF, a substantial shareholder with a 6.31% stake, had dumped 492,500 shares on the open market, AAGB said in a Bursa filing today.

Citing UK court documents, FocusM reported on Feb 1 that directors and/or employees of the low-cost carrier and its long-haul arm AirAsia X Bhd (AAX) were allegedly the recipients of a US$50 mil (RM205 mil) bribe from Airbus.

According to British prosecutors, Airbus paid the sum to sponsor a sports team jointly owned by two unnamed AirAsia executives in Malaysia. Airbus allegedly made the payment to secure an order for 180 aircraft.

The documents also said Airbus employees also attempted to pay an additional US$55 mil to the directors and/or employees of AirAsia and AAX but were prevented by an October 2014 freeze on payments to agents and intermediaries.

AirAsia and AAX are now subject to public and regulatory scrutiny. The Malaysian Aviation Commission (Mavcom) said in a Feb 3 statement that it would review whether there had been any contravention of its regulations and guidelines following the graft allegations.

Mavcom said AirAsia and AAX, being holders of air service licences issued by the commission, and their key responsible persons are subject to the Malaysian Aviation Commission Act 2015 (Act 771) and its Guidelines on Fit and Proper Person.

According to a Guardian report in November 2015, Tan Sri Tony Fernandes and Datuk Kamarudin Meranun, respectively Group CEO and executive chairman of Air Asia Group Bhd, and major shareholders are listed as shareholders of Queens Parks Rangers. Fernandes and Meranun were also co-chairmen of former F1 team Caterham.

Fernandes and Kamarudin are top executives and key shareholders of AirAsia.

Of AirAsia’s current board of directors of seven, besides Fernandes and Kamarudin there are four who are independent and one non-independent.

AirAsia and AAX shares closed down 10.49% and 7.69% to RM1.28 and 12 sen, respectively, on Feb 3. The benchmark FBM KLCI, however, was only down 0.6% to close at 1,521.95 points.

@ shareprofit. EPF cannot buy BAT because the stock is not shariah-compliant.

Belated angpow to be declared before Chap Goh Mei?

At current prices, I reckon that BAT will be retail investor-driven moving forward. It will no longer be an institutional stock that pays handsome dividends. Rather it will be subjected to speculative activities whereby financial performance is a secondary buying criteria.

Dutch Lady seems to be dealt the same fate as BAT (although not so obvious yet at this stage).

My broker just sent reminder ... half-day trading today with force selling at 12 noon.

Battle of the sin business... Cigarette counter down but beer stocks up!!!

Holding steady but finding it tough to sustain above RM5.50.

Unbelievable but true. I think better be moderate in our expectations. The first hurdle is RM5.50.

Ain't sure if this year's angpow will be as generous as the previous years.

@Icwin & @KL Tneoh: Thanks for the insightful exchanges that are done in an intellectual manner. Good luck to all MFCB faithfuls.

Consolidation phase.

My late mother will be very happy. Her favourite stock has finally come to life!!!

Hydro and solar will power MFCB to continue bucking the trend in the current weak market. With the massive volume in recent times, I suspect something big is brewing ... could be the LSS3 tender outcome or something else.

So far holding steady with heavy volume being transacted.

Not wanting to sound pessimistic but am only expecting a so-so piece of financial results considering the current challenging operating conditions ... hopefully, the dividend rate can be maintained like last year's.

Slowly rebounding in anticipation of CNY 2019's dividend.

200 bonus shares for every one lot held in LPI. Yipee!!!

RM19 done ... Hopefully, news of bonus issue is true. Die-hard LPI investors can look forward to angpow for CNY.

Looks like a rally is brewing in LPI ... slowly and steadily.

LPI is burning on all cylinders today!!!

ongkkh: Some GLC stocks ... perhaps CIMB and Sime if you dare (election theme).

ongkkh: Many old man stocks have gone up ... If you've holding power, buy a few lots of Maybank ... hold for 3-6 months ... I think RM12 possible based on election play likelihood.

I think it's part of dividend stock theme play (alongside Ajinomoto, AEON Credit, BAT, Dutch Lady, Panasonic, Nestle etc). Anyway, LPI is ripe for price upshoot from a fundamental perspective.

@ongkkh: This is an old man stock ... RM18 breached, now testing RM18.50/RM19.

Looks like LPI is closing up on RM18.

I agree with ZeaXG. I don't wanna sound too bullish but I reckon Maybank can touch RM11-RM12 as GE14 approaches. After all, BN needs money to fight the opposition.

Not dumping ... rather accumulating for the medium-term as they see Maybank climbing to RM10 and beyond (I know because my wife is one of the ESOS beneficiaries).

ykloh: Are you implying that MFCB faithfuls can expect some form of 'happy ending'?

Time to accumulate.

For the past few days, the counter is holding steady at RM17.40. Either someone is accumulating or something is brewing.

GENP has become a darling plantation stock once again. Prices have been holding steady at the RM11.50 region.