Flash: Bank Negara maintains OPR at 3.25%

Siva68-good advice. This counter need holding power

Now -45c. Keep averaging. I want hold . I believe in GST sure bring this software up. Developer sure need to up date . Under they are mix supplier. Want or not without updated they cannot continue, the penalty is very high. Since 70% market they hold . We No need worry.

@FX Lee- what the agregat price u hold now

KUALA LUMPUR: The goods and services tax (GST) compliant software market is potentially worth about RM1.7 billion, and Censof Holdings Bhd and IFCA MSC Bhd are among the few public-listed companies to potentially benefit from it, said analysts.

MIDF Research approximated the value of the lucrative market by assuming an average software cost of RM6,000 and multiplying it by the number of yet-to-be-registered GST-compliant companies — 285,000 — which gives it RM1.7 billion.

In its research note last Friday, it said software vendors who provide GST-compliant software can expect a bump in sales come the fourth quarter of 2014 (4QCY14) or 1QCY15 as the slow take-up rate now would result in a pent-up demand since the government is not budging on its registration deadline.

Reiterating that it is positive on the sector, it identified three other public listed companies (PLCs) that could benefit from this, namely Asdion Bhd, DGB Asia Bhd and YGL Convergence Bhd.

Together with Censof and IFCA MSC, they are the only PLCs among the 100 or so authorised GST-compliant software vendors listed on the Royal Customs Department website that small to medium enterprises (SMEs) can choose from.

“However, the PLCs would still need to compete with private entities who are also providing GST-compliant software to secure contracts and a piece of this potential RM1.7 billion [in sales],” said MIDF analyst Martin Foo.

The research house added that as the Dec 31 deadline for companies with annual sales of over RM500,000 to register for GST draws nearer, software vendors are expected to enjoy brisk sales from last-minute demand for the software.

This could translate into better share price performance and short-term trading opportunities for vendors listed on the local bourse, said MIDF.

Censof, an information technology (IT) software solutions provider for both back-end and front-end products and services, is seen to be a front runner in this as it is a major accounting solutions provider for government agencies, with a clientele consisting of over 100 key government-related agencies and ministries, MIDF had noted in its April 29 analysis on the company.

Meanwhile, CIMB Research, in its research report dated Aug 27, said IFCA’s revenue in 2014 and 2015 is expected to be driven by the company’s GST software upgrade in Malaysia for its customers, as it is deemed to be the dominant software solutions provider for the property sector, with a market share exceeding 70%.

“As at end of June this year, we understand that only 10% of its customers have upgraded their software, an indication of the immense amount of business in the pipeline for the company over the next few quarters,” said CIMB.

The research house added that IFCA’s Malaysia sales contracts were already at RM42.1 million as of June, compared with RM39.8 million for the whole of 2013.




The edge

Why we need treat as our investment.hold because potential?

Today the star

KUALA LUMPUR: Companies are paying up to RM300,000 to tax and accounting consultants to register for the goods and services tax (GST) before its Dec 31 deadline.

Minister in the Prime Minister’s Department Datuk Dr Wee Ka Siong said the consultants were charging exorbitant sums due to a shortage of such service providers and for the urgency.

The Government had earlier announced that there would be no extension to the deadline for companies to register for the GST, which comes into effect from April 1 next year.

“The RM300,000 charges is a package deal, covering registration, training and upgrading to a GST-friendly tax system.

“Smaller accounting firms are charging between RM1,500 and RM8,000 per day for their services,” Dr Wee said, adding that only 32,000 companies or 11% of the 300,000 companies which should register for the GST implementation had done so to date.

“It is compulsory for companies with an annual turnover of at least RM500,000 to register for GST.”

Dr Wee was speaking at the “Leading SMEs towards the GST era” seminar here yesterday.

Officials from the Finance Ministry and the Customs Department briefed the hundreds of small and medium enterprises who attended the seminar, organised by the SME Asso­ciation.

While many SMEs agreed to register for the GST to help the Government meet its financial target and reduce public debt, Dr Wee said they also had concerns, like the hefty charges to enable them to register and comply with the implementation.

He urged more tax experts to volunteer their services to train some 645,000 SMEs in the country over the GST’s implementation.

Dr Wee, who is in charge of SME development in the PM’s Depart­ment, assured the SME’s that the Government would look into their concerns to come up with a GST-friendly tax-system.

He said their feedback would be channelled to the relevant authorities, citing as an example the proposal to abolish the need to register twice in order to get the E-voucher for companies to implement the GST friendly tax system.

Simple, i just hold. One reason only.............

Dividend +acquire other company can bring to another level.

I just hold. I no that there no any software can easily penetrate in property sector because the calculation not same as trading company. In gst regime in the future , all the company who register for collection gst cannot run gst software implementation. The company cannot do manually. The data must recall, keep track & other thing cannot do manually. No have time, every month, quarterly must report to KASTAM. If late, penalty come to company. Now sure all the company in upgrade mode. We cannot change world, but the world will change u.


Now I just put as investment.

It's ok, all in the game

Simple, if really good & fundamental, there is support, if not , there other thing will happen.

Time to buy.why
-contra player-now maybe not lot of contra player there

Time to buy?why
-Panic selling-the price drop NEXT DAY significantly after BV dispose
-BV still holding- If this shares not potential why BV still holding ( yesterday it's self he loosing more than 1/2 million on potential profit for the shares still holding.

KUALA LUMPUR: Brahmal Vasudevan, the founder of private equity fund Creador, described his entry into and partial exit from IFCA MSC Bhd as a “short term” trade.

After his sale of 11.25 million shares or 2.5% of IFCA on Sept 2, Brahmal, whose corporate moves are often watched by others, still has a 3% stake in the company.

Following the announcement of Brahmal selling his stake, the share price of IFCA has seen some heavy selling.

Yesterday, IFCA’s share price shed 4 sen or 8.79% to close at 41.5 sen with 61 million shares traded.

Despite him reducing his stake, Brahmal still views IFCA as a good company with many growth drivers and that the disposal was his personal trading strategy.

“It is a pity that I discovered IFCA too late. In fact, I bought into it after reading an analyst report by Maybank IB Research,” he told StarBiz on the sidelines of the Malaysian Private Equity Forum 2014.

Bursa Malaysia filings showed that Brahmal acquired 5.55% of the software company on Aug 26. The research report was issued on Aug 25.

Brahmal explained that he adopted different strategies for the companies that he bought into and that included the holding period of his investment.

Nonetheless, he still thinks that IFCA has the potential to grow 20% to 30% yearly.

He said he generally likes businesses with recurring income. “In IFCA’s case, it gets a percentage of fees from the software products it sells,” he added.

The investment in IFCA is Brahmal’s private investment and not part of Creador’s portfolio of investments.

Generally, Creador adopts a long-term investment strategy and some of its investments include Bonia Group Bhd, GHL Systems Bhd, MNC Sky Vision of Indonesia and Cholamandalam Investment & Finance Company Ltd.

Some of the opportunities that do not fit into Creador’s strategy are sometimes taken up by Brahmal in his personal capacity. In the past, Brahmal has also taken up stakes in his personal capacity in SMRT Holdings Bhd.

IFCA’s share price has surged more than 400% year-to-date and jumped close to 70% in a month.

Maybank IB Research said in the report that it projected a 406% growth in financial year ending Dec 31, 2014 (FY14) net profit to RM8.8mil and a 50% growth in FY15 to RM13.1mil on the back of strong contract flows and improving net margins.

“As of June 2014, IFCA’s balance sheet was clean with a net cash of RM30mil or 6.7 sen per share. Pegging it to 14.5 times price-to-earnings ratio, we derive a fair value of 42 sen for IFCA,” the research house noted.

The malaysia market-The shares price up before report card come out and go down when report card come ( although good result)

Mr. Brahmal Vasudevan (BV), the founder of Creador, a private equity firm that focus on Southeast Asia region and India. From the main page of the website, it is stated there :Creador is a private equity firm focused on long-term investments in growth-oriented businesses in Indonesia, Malaysia, Singapore and India.

BV emerged as IFCAMSC substantial shareholders on Aug 26 2014 with direct holding of 10 Million shares and indirect holding of 15 Million shares. On that day, the highest price and lowest price traded was 37 sen and 33 sen and it closed at 35 sen. But mere 4 trading days later, he disposed 11.5 Million shares or close to half of his holding on Sep 2 2014. On that day, the counter traded the highest at 52 sen and the lowest at 47.5 sen and closed at 49.5 sen. Since he didn't disclosed his average entry price and exit price so I'm just going for the average price of the day to estimate his entry and exit price. On Aug 26, highest was 37 sen and lowest was 33 sen so average 35 sen which will be his entry price. On Sep 2, highest was 52 sen and lowest was 47.5 sen so average is 49.75 sen which will be his exit price. So in just four trading days, he made roughly RM 1,659,375 (0.4975 - 0.35 * 11.25 Million shares). With some 13.75 Million shares left, his paper gain on his current holding based on today closing price of 45.5 sen is another RM 1.44 Million.

In just 4 trading days , he closed his position of 11.25 Million shares with some 42 % gain. This is one hell of a contra trade. Apparently fund manager doesn't necessary aim for long term after all. But with 42% return in just 4 trading days, can anyone blame him for taking his profit? Certainly not. But for those that bought the shares after the star fund manager emerged and thought that he is here for the long term, it could be an unpleasant surprise.

This is one godly trade that his clients will certainly hope for. It will be great for his clients if the trade is for the company's fund instead of his personal capacity. Anyway, job well done for BV!!!

Tigerchew, this few lines taken frm the star (30/08/2014) . Maybe this answer the question.

-IFCA, established in the late 1980s

-IFCA which is a good position for growth

-Foo is also predicting that IFCA will record RM8mil-RM9mil in FY14 and RM15mil in the following year, boosted by the China and GST factors.

- Director goals, including to grow the company’s market capitalisation to “a few hundred million ringgit” from the current RM222.8mil and get the ACE market company onto the Main Market,.

-With a net cash position of RM30mil and minimal borrowings

-Company is also in a good position to swallow up any of the smaller boys

-Reward shareholders.

IFCAMSC - 地产界的GST 垄断者

IFCAMSC 是一家提供商务软件的公司。最主要的对象是房地产商。除了房地产商还包括商场，商业，度假村，酒店及休闲运动俱乐部。IFCAMSC 可说是一间提供商务 GST 软件于房地产商的行家。

TP 1 : 42c (Maybank's TP)
TP 2 : 53c (CIMB's diluted TP)
TP 3 : 70c (CIMB's un-diluted TP = 53c X (450,053,000 shares + 143,351,000 shares) / 450,053,000 shares )
TP 4 : RM1.50 (after bonus issue and enter mainboard)


Chonology

30 Aug 2014 - the stars highlighted more institution buy in IFCA
http://www.thestar.com.my/Business/Business-News/2014/08/30/IFCA-gets-noticed-Software-vendors-shares-jump-77-from-a-month-ago/

27 Aug 2014 - CIMB out research report
(diluted TP = 53c, undiluted TP = 70c)

https://brokingrfs.cimb.com/TZM5qMDUt9by8xjspIANQVSLBiaQX7UjlbUVigisNFC3WrO2xpX5i5A1en6nMRPmyYwVo1q9hxs1.pdf

26 Aug 2014 - Bhamal entry (possible entry price 35c due to weighted volume highest at this level)

http://www.theedgemalaysia.com/business-news/304892-flashbrahmal-vasudevan-buys-substantial-stake-in-ifca-msc-.html

25 Aug 2014 - Maybank out research report (TP = 42c)
http://research.maybank-ib.com/pdf/document/IFCA_NR_20140825_MKEv2_6544.pdf

60k at RM 0.50

Yes, 60K units of shares

How about u lee

IFCAMSC 是一家提供商务软件的公司。最主要的对象是房地产商。除了房地产商还包括商场，商业，度假村，酒店及休闲运动俱乐部。IFCAMSC 可说是一间提供商务 GST 软件于房地产商的行家。

TP 1 : 42c (Maybank's TP)
TP 2 : 53c (CIMB's TP)
TP 3 : 68c
TP4 : 90c

Software vendor IFCA MSC Bhd’s founder Ken Yong Keang Cheun has never been this busy nor has his stock been this hot.

Yong’s been having meeting after meeting with institutional funds, analysts, investors and the media in recent weeks.

IFCA’s shares, meanwhile, are up a whopping 77% to 49.5 sen from a month ago compared with the benchmark index which is down as investors load up in anticipation of possible better days ahead for the company.

The smallish firm has even caught the attention of savvy investor Brahmal Vasudevan, who had in the past generated a handsome return for his bet on another IT stock, MYEG Services Bhd.

On Tuesday, Brahmal surfaced as a substantial shareholder in IFCA with a 5.55% stake.

Yong, who together with his brother controls over 40% of the company, is optimistic that Brahmal will increase further his stake in the firm.

“I think you will also see some institutional funds on our shareholder list soon,” he says.

Up until now, IFCA, established in the late 1980s has never really been a firm favourite with any investor probably because of a number of reasons.

For some time, the company was bleeding losses on several major write-offs after making some heavy investments and only just returned to the black two years ago, albeit making small profits.

Additionally, the perception of being just another IT firm to jump into the hot IT scene more than a decade ago has seen its share price depressed for most parts of its listed life.

“But what we have now is a stronger IFCA which is a good position for growth, ” Yong says.

It appears IFCA, which makes comprehensive software for property companies does have a couple of fundamental factors going for it at the moment, providing some justification of sorts for the optimism that is surrounding it.

It recently announced that net profit for its latest quarter came in at RM3mil, higher than the RM578,000 for the same period a year earlier.

IFCA has also grown its market share to 70% here in Malaysia and has a growing Chinese business, which currently makes up about 30% of the group’s sales and envisaged to grow further.

Its breakthrough in the Chinese market came about 4 years ago when IFCA managed to strike up a deal with China’s Wanda Group, Asia’s largest commercial real estate developer, Yong says.

“China wasn’t easy for us, we were there for years and years before coming into anything at all.”

Its efforts seem to have paid off with China sales for the first half of this year reaching RM21mil, which is higher than the RM16mil recorded in the whole of the last financial year. “We remain very small in China but hope to grow big, there are over 40,000 property firms in China as opposed to about 1,000 here.”

The impending implementation of the goods and services tax (GST) next April which will require IFCA’s huge local client-base to upgrade their software to meet with new requirements is another major catalyst for growth.

Notably, it counts most of the big boys in the property industry as its clients including SP Setia Bhd, Mah Sing Group Bhd, Berjaya Land Bhd and Sunway City group.

Two analysts who earlier this week released reports on the company have seemingly bought into the prospects of IFCA, believing that it is poised to deliver, at least for the next couple of years.

Maybank Research analyst Wong Wei Sum, whose note to clients came out two days before CIMB Research analyst Nigel Foo’s note, is expecting IFCA’s earnings to leap by over 400% in the current financial year ending Dec 31 (FY14) to RM8.8mil from RM1.7mil in FY 13 and further grow by 50% to RM13.1mil in FY15 on strong contract sales and improving margins.

Meanwhile, Foo is also predicting that IFCA will record RM8mil-RM9mil in FY14 and RM15mil in the following year, boosted by the China and GST factors.

Yong says IFCA has managed to grow its net profit margin to about 17%.

“We hope to increase this as revenue grows and costs are controlled.”

He has other goals, including to grow the company’s market capitalisation to “a few hundred million ringgit” from the current RM222.8mil and get the ACE market company onto the Main Market, as more investors get acquainted with the firm.

With a net cash position of RM30mil and minimal borrowings, Yong says the company is also in a good position to swallow up any of the smaller boys in the industry as well as to reward shareholders.

“But our focus remains to build a solid base from here.

“When we are on the radar, we must make sure we deliver and do not disappoint.”

Yong sold off some 17 million IFCA warrants this week in tandem with the uptrend in the price of the mother share.

He says that he did so to “settle his personal loans and “buy more mother shares.”

......................................
The star

Today carefull

KUALA LUMPUR (Aug 18): IFCA MSC Bhd, whose shares and warrants have flattened after their recent rise, rebounded ahead of its second quarter results announcement, expected tomorrow (Aug 19).

At 3:41 pm, shares of the accounting software producer were 3.5 sen or 14.58% higher at 27.5 sen with 36.43 million shares traded. IFCA MSC’s counter was earlier traded to a high of 28 sen, its highest price since Jul 31 when it touched 31 sen before closing at 28 sen. The stock cooled afterwards.

Concurrently, IFCAMSC-WA warrants were up by 2.5 sen or 12.82% to 22 sen after hitting the day’s high of 22.5 sen. A total of 24.24 million of the derivatives changed hands. At the last traded price, the one-for-one warrants were traded at a 16.36% premium to its mother share. IFCAMSC-WA has a strike price of 10 sen and will expire on Feb 15, 2016.

An executive familiar with IFCA told theedgemalaysia.com that the accounting software producer would announced its results for the second quarter ended Jun 30, 2014 (2QFY14) tomorrow.

Recently, The Edge and theedgemalaysia.com quoted CEO Ken Yong and Chief Operating Officer Leong Nyu Kuan as saying that IFCA was looking to finally reap the benefits of the impending goods and services tax (GST) system. Businesses are required to change their accounting software before the new tax system kicks in on Apr 1, 2015.

IFCA has a niche market among property developers and hotel and club operators. According to Yong, about 70% of the listed property developers in Malaysia are clients of IFCA.

The company is also expanding in China, according to Leong, and has seen an increase in its client base there after a long gestation period.


The edge

RM18

The Company caters to a range of industries, including contract accounting, property development and management, hotel and club resort, manufacturing and distribution, customized information technology (IT) projects and hardware and networking. Its subsidiaries are Push Technology Sdn Bhd, IFCA Systems (Penang) Sdn Bhd, IFCA Systems (JB) Sdn Bhd, IFCA Consulting (Sarawak Sdn Bhd, IFCA Solutions Sdn Bhd, IFCA Web Sdn Bhd, Network Online Sdn Bhd, IFCA Consulting (Sabah) Sdn Bhd, IFCA (Guangzhou) Technology Co Ltd, Jingyou Information Technology (Shanghai) Co Ltd, IFCA Technologies Limited and IFCA International Limited.

just hold as investment until end of the year

GST COUNTER

Just hold.

panic selling .......time to collect

top 10 active counter

SHIAOBA, HOW MANY U BOUGHT. IF HEAVY, U REALLY MAKE MONEY

RM7

RM18

down trend, carefull

Maintain buy with target price of RM14.90: TNB has signed a 25-year power purchase agreement to buy electricity from 1Malaysia Development Bhd’s (1MDB) proposed 50mw solar photovoltaic plant in Kedah, after direct negotiations with the energy, green technology and water ministry, Energy Commission and Sustainable Energy Development Authority Malaysia (Seda).

It was reported that 1MDB’s renewable energy (RE) tariff rates are between 40 sen and 46 sen per kWh, higher than TNB’s recently revised electricity tariff of 40 sen.

As for TNB’s results for the second half ended Feb 28 of financial year 2014 (2HFY14), scheduled to be released on April 24, we expect a sequentially weak quarter due to normalisation of tax rates and a one-month timing delay between the increase in gas costs in January and recognition of the tariff rate hike in February, as already forewarned on Jan 24.

The stock trades at a decent price-to-book value (P/BV) of 1.8 times, which is at the mid-range of adjusted 1.1 times to 2.7 times over the past five years. TNB also offers a decent calendar year 2014 (CY14) price-earnings ratio (PER) of 13 times, compared with the stock’s three-year average band of 10 to 16 times.

We maintain our “buy” call on TNB with an unchanged discounted cash flow-derived fair value of RM14.90 per share, which implies a CY14F PER of 16 times and a

P/BV of 2.4 times.

We maintain TNB’s FY14F to FY16F earnings, which will not be affected by additional payments for RE. — AmResearch, April 15


Theedge

good buy now-
18/03/2014-EPF - 129,900 SHARES
18/03/2014-EPF - 65,000 SHARES
18/03/2014-AMANAH RAYA - 1,250,000 SHARES
19/03/2014-AMANAH RAYA - 1,072,400 SHARES
19/03/2014-EPF - 500,000 SHARES

Don't buy this counter for the moment.

For me this counter fine to enter TP MORE THAN 12.00 by most of resercher. Oversold. Today price = price on nov 2012

KUALA LUMPUR: Petroliam Nasional Bhd (Petronas) and Shell Malaysia has announced oil discovery in offshore Sabah.

The discovery was made by Shell via the Limbayong-2 well during the appraisal of the Limbayong gas field.

“The appraisal well encountered 136 metres of oil bearing sands and there are plans to conduct more appraisal work on the discovery to determine its recoverable volume.

“Petronas is indeed pleased with the discovery, which affirms the hydrocarbon prospects of Malaysia’s deepwater areas,” said Petronas in a statement.

“This discovery attests to the significant potential in this area and is a positive development for exploration activities in Sabah and Sarawak,” it added.

The drilling of the Limbayong-2 appraisal well was carried out by the consortium of Shell Malaysia (35%), Conoco Phillips (35%) and Petronas Carigali Sdn Bhd (30%). — Bernama


The star.

KUALA LUMPUR: Petroliam Nasional Bhd (Petronas) and Shell Malaysia has announced oil discovery in offshore Sabah.

The discovery was made by Shell via the Limbayong-2 well during the appraisal of the Limbayong gas field.

“The appraisal well encountered 136 metres of oil bearing sands and there are plans to conduct more appraisal work on the discovery to determine its recoverable volume.

“Petronas is indeed pleased with the discovery, which affirms the hydrocarbon prospects of Malaysia’s deepwater areas,” said Petronas in a statement.

“This discovery attests to the significant potential in this area and is a positive development for exploration activities in Sabah and Sarawak,” it added.

The drilling of the Limbayong-2 appraisal well was carried out by the consortium of Shell Malaysia (35%), Conoco Phillips (35%) and Petronas Carigali Sdn Bhd (30%). — Bernama

Time to collect

Every year people talking about competitor, but still moving up trend & world no. 1, not easy to sustain like this.

Still world no. 1 car maker

6.90

Domestic construction contracts are expected to shrink by 16 percent to RM13 billion this year, on the back of the fiscal tightening and property cooling measures introduced by the government, according to Alliance Research Sdn Bhd analyst Jeremy Goh.

“With fiscal tightening setting in, we believe that a slowdown in government related projects is inevitable as a more prudent spending stance is taken,” he noted in his report.

On average, government related projects account for 72 percent of all the contract awards over the last five years.

To address the narrowing current account surplus in the balance of payments, the government now carefully considers public sector projects – giving priority to low import content as well as high multiplier projects while those with high import content will be “sequenced”.

“As for private sector contracts, we reckon that there is risk of a slowdown as well,” said Goh.

“This follows from the various property cooling measures that will take effect this year such as higher Real Property Gains Tax (RPGT), higher minimum property price for foreigners, lower margin of finance as banks are required to use net selling price, and prohibition of Developer Interest Bearing Scheme (DIBS).”

With the expected decline in construction activities, construction players will likely look for contracts overseas, he said.

Meanwhile, Alliance Research has rated the sector neutral from overweight.

“Our top large cap pick is Gamuda Bhd as its earnings growth is supported by the MRT and potential enhancement from the recent acquisition of Kesas. For the small caps, we like Ahmad Zaki Resources Bhd which is a beneficiary from the rollout of Bumi-projects,” added Goh.

PETALING JAYA: SapuraKencana Petroleum Bhd may spin off its drilling rig unit as a business trust to reduce debts, RHB Research Institute said.

“Monetisation of its stable drilling rig business is an attractive proposition that may ease concerns over the group’s high gearing,” RHB Research said in a report.

“We are of the view that there is an opportunity to spin off this unit and list it separately as a business trust,’’ it added.

So far, no company has taken advantage to list their assets as business trust on Bursa Malaysia, although the guidelines for such listing were issued by the Securities Commission way back in December 2012.

RHB Research also said SapuraKencana’s status as a syariah-compliant stock could be under review due its heavy debt obligations, which stood at RM11.68bil as of October 2013.

“The management is currently in the midst of reorganising its debts,” it said.

Meanwhile, SapuraKencana is poised to be the biggest beneficiary of Petroliam Nasional Bhd’s (Petronas) acceleration in capital spending over the next two years, said RHB Research.

“SapuraKencana stands to be the biggest beneficiary due to its technical capabilities and large resources, and we expect its existing relationship with Petronas to boost its orderbook further,” it said.

It said Petronas would dish out a number of projects involving marginal oilfields through risk-sharing contracts, enhanced oil recovery efforts and the development of deepwater oilfields.

On SapuraKencana’s recent acquisition in Newfield Exploration Co, the brokerage said it was expected to boost the company earnings. “We understand from the management that contribution from Newfield’s producing fields may be reflected in its financials as early as financial year 2014 (FY14).”

Nonetheless, the research house will maintain its FY14 to FY16 earnings estimates until the acquisition is finalised in the first quarter of calendar year 2015.

SapuraKencana won the bid to acquire Newfield’s oil and gas production blocks in Peninsular Malaysia, Sabah and Sarawak for US$898mil (RM2.8bil) back in October.

“Once the acquisition is finalised, we believe this new business segment may potentially nudge our fair value higher by 19 sen per share,” it said, adding that it maintained a “buy” call on SapuraKencana with a fair value of RM5.61.

RHB Research expects SapuraKencana to secure more contracts in Brazil by leveraging on its existing relationship with Pertobras.

“Brazil’s offshore oil and gas (O&G) activities have picked up pace in recent years, with O&G contracts making up 55% of the group’s RM23.2bil as of December 2013, excluding the recently awarded Pan-Malaysian transport and installation contracts,” it said.

The star

Happy new year :)

We see how long manipulator lock the price.