Dagang NeXchange Berhad (KLSE:DNEX) currently has a Value Composite score of 48. The Value Composite One (VC1) is a method that investors use to determine a company’s value. A company with a value of 0 is thought to be an undervalued company, while a company with a value of 100 is considered an overvalued company. The VC1 is calculated using the price to book value, price to sales, EBITDA to EV, price to cash flow, and price to earnings. Similarly, the Value Composite Two (VC2) is calculated with the same ratios, but adds the Shareholder Yield. The Value Composite Two of Dagang NeXchange Berhad (KLSE:DNEX) is 62.

Technicals at a Glance
In taking a look at some other notable technicals, Dagang NeXchange Berhad (KLSE:DNEX)’s ROIC is 0.071674. The ROIC 5 year average is 0.108934 and the ROIC Quality ratio is 1.796543. ROIC is a profitability ratio that measures the return that an investment generates for those providing capital. ROIC helps show how efficient a firm is at turning capital into profits.

Shareholder Yield
We also note that Dagang NeXchange Berhad (KLSE:DNEX) has a Shareholder Yield of -1.219535 and a Shareholder Yield (Mebane Faber) of -1.21623. The first value is calculated by adding the dividend yield to the percentage of repurchased shares.

The second value adds in the net debt repaid yield to the calculation. Shareholder yield has the ability to show how much money the firm is giving back to shareholders via a few different avenues. Companies may issue new shares and buy back their own shares. This may occur at the same time. Investors may also use shareholder yield to gauge a baseline rate of return.

Dagang NeXchange Berhad (KLSE:DNEX) has a current MF Rank of 8566. Developed by hedge fund manager Joel Greenblatt, the intention of the formula is to spot high quality companies that are trading at an attractive price. The formula uses ROIC and earnings yield ratios to find quality, undervalued stocks. In general, companies with the lowest combined rank may be the higher quality picks.

We can now take aquick look at some historical stock price index data. Dagang NeXchange Berhad (KLSE:DNEX) presently has a 10 month price index of 2.80000. The price index is calculated by dividing the current share price by the share price ten months ago. A ratio over one indicates an increase in share price over the period.

A ratio lower than one shows that the price has decreased over that time period. Looking at some alternate time periods, the 12 month price index is 2.90909, the 24 month is 2.16949, and the 36 month is 2.09836. Narrowing in a bit closer, the 5 month price index is 2.57143, the 3 month is 2.15517, and the 1 month is currently 1.31579.

http://ozarktimes.com/dagang-nexchange-berhad-klsednex-how-is-this-stock-valued/23635/

http://www.theedgemarkets.com/article/mbsb-active-gains-231-positive-views-asian-finance-bank



KUALA LUMPUR (May 15): Shares in Malaysia Building Society Bhd (MBSB) rose 2.31% in active trade this morning after its president Datuk Seri Ahmad Zaini Othman last week said the proposed acquisition of Asian Finance Bank Bhd (AFB) by MBSB is "looking good".

At 10.32am, MBSB rose 3 sen to RM1.33 with 13.55 million shares traded.

Ahmad Zaini said the merger is likely to happen this time around.

"So far, we are talking. Nobody is backing out. From the discussion, it looks like they are still interested," he told reporters after MBSB's annual general meeting.

MBSB has completed due diligence on the proposed merger, he added. Bank Negara Malaysia has given until June 21 for the two parties to complete the negotiations.

http://www.thestar.com.my/business/business-news/2017/05/15/mbsbafb-merger-on-track-valuation-being-negotiated/



KUALA LUMPUR: The merger and acquisition talks between Malaysia Building Society Bhd (MBSB) and Asian Finance Bank Bhd (AFB) are on track with the only concern being valuation.

MBSB president and chief executive officer Datuk Ahmad Zaini Othman (pic) said the non-bank lender was in the midst of formulating reports and negotiating the valuations for the merger.

“We have completed the business plan as well and what’s pending is the sales and purchase agreement, which will include valuation (pricing),” Ahmad said on the sidelines of a shareholders’ meeting last Friday. Ahmad is more confident of seeing the merger through this time because it is with a smaller financial institution.

“I am not going to give up. I believe it shouldn’t be difficult this time around because it’s with a smaller bank.
“We do care about the company and this is a good opportunity for us,” said Ahmad, adding that once the merger was completed the new bank would be worth about RM45bil in asset size. AFB’s asset size stood at over RM2bil.

On whether there were any resistence from shareholders, Ahmad said that in general they (shareholders) were supportive as MBSB had explained that the route towards a merger was a better and most logical choice.

However, an EGM will be held for shareholders’ approval. In the meantime, Bank Negara has given June 22 as the deadline to conclude the transaction.

Meanwhile, Ahmad expects MBSB’s impairment programme to be concluded by year-end.

“This is on track as we remain focus in the programme to strengthen the company towards achieving its future direction.

“It’s also a way for us to conform within the industry’s standards as we look to move into banking status,” Ahmad noted.

He said the company has plans in place for the implementation of the International Financing Reporting Standard (IFRS) 9

“We would take advantage of the resources.

“For the last two and half years we have already been burdened by huge impairments and the bulk of it are from operating profit. We are used to hard times,” Ahmad said.

IFRS 9, which will set new accouting standards for banks, will take effect next year.

The non-bank lender’s RM777mil impairment was 70% of RM1.12bil in operating profit.

In terms of retail and corporate financing, MBSB is optimistic of achieving a 30:70 ratio this year, versus 20:80 last year.

“Over the last two years, our transition towards the corporate segment mainly in property financing and equipment financing in the small and medium enterprises segment are seeing results.

“We will be targeting aggressive growth in 2017,” he noted.

MBSB has also set a target of 6% to 7% overall loan growth this year, versus the 3% to 4% of last year.

Ahmad said this could be achieved by revisiting existing corporate clients who were submitting their second proposals.

MBSB’s total assets stood at RM43.27bil as at Dec 31, 2016 from RM41.09bil a year ago.

The growth was attributed to increase in net financing and loans as well as liquefiable assets.

It told research houses in February that its target for 2017 will be to disburse additional financing totalling RM3.46bil, which includes loans for affordable housing projects.

Read more at http://www.thestar.com.my/business/business-news/2017/05/15/mbsbafb-merger-on-track-valuation-being-negotiated/#0lkPOLskHuCjMiwV.99

MBSB-AFB merger on track, valuation being negotiated: The merger and acquisition talks between Malaysia Building Society Bhd (MBSB) and Asian Finance Bank Bhd (AFB) are on track with the only concern being valuation. MBSB president and CEO Datuk Ahmad Zaini Othman said the non-bank lender was in the midst of formulating reports and negotiating the valuations for the merger. - StarBiz

Read more at http://www.thestar.com.my/business/business-news/2017/05/15/breakfast-briefing-may-15/#31sX3zBRsMB8hEeu.99

https://www.homme-osc.net/

BUKTI MEGAH SDN BHD... under dnex

target dnex RM1.00 .... next few level... holding it

if 1person register DNEX gets RM30... so many ,, defienetly big earn...

In February, it was reported DNeX's “eWork Permit” involved the building of a new back-end system for Bukit Megah Sdn Bhd for the latter's rehiring programme.

DneX would be paid RM30 per transaction of “eWork Permit”, which is the name of the new back-end system to be set up for Bukit Megah’s rehiring operations.

CIMB Research had said in mid-Feb 2016, the government appointed three parties for the rehiring programme. Bukit Megah was picked for the registration of Myanmar illegal foreign workers (IFWs), IMAN for Indonesian IFWs and MyEG for other races.

Bukit Megah and IMAN used its back-end system to register the IFWs. MyEG dominated by handling 95% of the total IFWs registration as only 5% IFWs registered were from Myanmar and Indonesia,” it said.

However, from Feb 15, 2017 onwards, all three parties could now register IFWs of all races.
Read more at http://www.thestar.com.my/business/business-news/2017/04/10/dnex-sees-7pt46pct-stake-traded-off-market/#Av6oYDfrAXISm7eK.99

http://www.thestar.com.my/business/business-news/2017/05/03/wahid-malaysia-lacks-listed-islamic-financial-stocks/


KUALA LUMPUR: The listing of more Islamic financial institutions on Bursa Malaysia is needed to boost the Islamic fund and wealth management industry going forward.

Permodalan Nasional Bhd (PNB) group chairman Tan Sri Abdul Wahid Omar said this would also strengthen Malaysia’s position as a global hub for such funds.

He said of the 672 syariah-compliant securities listed on the local bourse, omly two were from the finance sector, namely BIMB Hodings Bhd and Syarikat Takaful Malaysia Bhd.

“The finance sector has thus the lowest number of syariah-compliant listed securities available.It also places the percentage of syariah- compliant securities under the sector at only 6%,” he told the International Islamic Fund and Wealth Management Forum here yesterday.

He said the shortage of listed Islamic finance institutions could pose big challenges to the industry, especially for the government linked investment companies (GLICs) such as PNB, Lembaga Tabung Haji, and Kumpulan Simpanan Pekerja, as they are expected to provide syariah compliant dividends to Muslim investors in Malaysia.

As such, it is impossible to provide a competitive return if GLICs have to avoid investing in the financial sector, since there are only 6% of syariah-compliant securities listed on Bursa Malaysia, he added.

He also suggested three possible ways to further grow the industry.

The first is the formation of a second listed Islamic universal banking group, apart from BIMB Holdings, which could be anchored by Malaysia Building Society Bhd (MBSB), Bank Muamalat Malaysia Bhd, Malaysia Industrial Development Finance Bhd (MIDF) or one of the larger foreign-owned Islamic banks.

The listing of some of Islamic Development Finance Institutions such as Bank Simpanan Nasional and Bank Rakyat is a second option.

The third approach is the creation of a separate listing of “Islamic” or “i-share” among banking groups that have sizeable Islamic finance activities embedded within them, such as Maybank, CIMB and RHB.

“For example, up to 25% of Maybank”s profit is derived from Islamic finance.

“Since Maybank Islamic is a wholly-owned subsidiary and an integral part of Maybank, we can designate say 20% of the latter”s shares as Islamic shares, via some ring fencing arrangements,” he explained.

He said based on Maybank’s market capitalisation of RM97bil, this initiative would create a new class of syariah compliant investment instruments worth RM19bil.

“Of course this will require a lot of consultations with the Securities Commission, Bank Negara and Bursa Malaysia.

“With positive thinking in trying to solve a problem, I believe we can come up with the right solutions,” he later said at a press conference. – Bernama

Read more at http://www.thestar.com.my/business/business-news/2017/05/03/wahid-malaysia-lacks-listed-islamic-financial-stocks/#AYIl5t2rkiczWV4e.99

TARGET NOW RM0.80

http://www.thestar.com.my/business/business-news/2017/05/03/dnex-to-bank-on-power-business/



PETALING JAYA: Dagang NeXchange Bhd (DNeX) is projecting a double-digit growth for both its top line and earnings this year in line with its expansion and diversification into the power business.

The Main Market-listed e-commerce services provider plans to penetrate the Indonesian power-generation business, particularly by participating in small-scale renewable energy projects related to mini-hydroelectricity, geo-thermal and solar power.

DNeX group managing director Zainal Abidin Jalil (pic) said that while Malaysia remained the company’s primary market, further expansion into other viable markets would continue. He added that revenue contribution from the company’s foreign involvements was still small.

“We are confident that we would be able to deliver double-digit growth on a year-on-year comparison, for both our revenue and net profit in financial year 2017 (FY17).

“Moving forward, we are planning to make inroads into the Indonesian power-generation market, given Indonesia’s high demand for electricity and better electricity tariffs. Despite our aim for further regional diversification, we will continue to strengthen both our core business segments, namely, energy and information technology (IT) and e-services,“ he told reporters after DNeX’s AGM here yesterday.

Apart from Malaysia, DNeX has marked its footprint in Bangladesh and the United Kingdom.

In the financial year ended Dec 31, 2016, the e-commerce services provider registered a commendable set of results, which saw its net profit surging eight-fold to RM132.2mil compared with RM15.8mil a year earlier. The significant growth in earnings was on the back of a strong revenue growth, which nearly doubled to RM178.5mil.

Zainal also said that the company aimed to increase its portfolio exposure in its relatively-new core business, the energy sector in the long run.

“As of last year, 85% of our total revenue was contributed by our strong traditional IT and e-services business, while the rest was contributed by our energy segment. We hope to see both the IT and services and energy segments contribute 50% each to our overall top line in the future.

“We are pleased with what we have achieved so far, especially having completed our strategic transformation into a two-core business, namely, energy as well as IT and e-services,” he said.

DNeX’s strategic transformation was initiated in 2014. Under the transformation, the company expanded its traditional IT and e-services business through projects such as the vehicle entry permit, road charges system project and the eWork permit system.

DNeX also penetrated into the energy business, following the acquisition of OGPC Group in 2014 and its stake in Ping Petroleum Ltd.

Read more at http://www.thestar.com.my/business/business-news/2017/05/03/dnex-to-bank-on-power-business/#DrkX5dk5GCuwoLio.99

HOLD IT TILL ,,, RM 1.00

DNEX ,,, NEXT ,, RM 0.70 , second phase RM 0.75 , Third phase RM 0.80 .... then.. so on target RM1.00

time being , target Dnex RM 0.70- 0.80 , next , RM 0.90 - 1.00

AAX , target 0.46 - 0.47

EITA , target 2.20 for sure ! wait n see !

REV , TARGET RM1.50

KUALA LUMPUR, April 10 — PublicInvest Research expects AirAsia X Bhd’s performance to be positive from the financial year 2017 onwards, due to better cost management. In a note today, the research firm said AirAsia X hopes to increase its average seat kilometers (ASK) through better aircraft utilisation and higher frequencies of current routes, by strengthening key markets like China and Australia. The long-haul budget airline’s ASK is also expected to improve through the introduction of new routes, such as Honolulu via Osaka, scheduled to be launched in June this year. “Meanwhile, it is expecting the next aircraft, the first two A330neos, to be delivered around end-2018. “Going forward, AirAsia X plans to gradually replace its aircraft with this latest variant, as it can save up to 14 per cent of fuel per seat and improve cost efficiency,” it said. PublicInvest Research upgraded its rating on AirAsia X to “outperform”, at a higher target price of 53 sen from 41.5 sen. As of 11.24 am, AirAsia X’s shares were half-a-sen lower at 39.5 sen, with 4.1 million traded. — Bernama - See more at: http://www.themalaymailonline.com/money/article/publicinvest-research-expects-positive-performance-by-airasia-x-from-fy17-o#sthash.guf2wuee.dpuf

http://www.nst.com.my/news/2017/04/228958/airasia-x-earnings-recovery-trajectory

KUALA LUMPUR: PublicInvest Research has issued an outperform call on AirAsia X Bhd (AAX) with a target price of 53 sen as FY2017 is seen as a good year for the low-cost, long haul airline.


"We believe the positive performance will flow through from FY17 onwards as a result of better cost efficiencies through improvement in aircraft utilisation and increase in route frequencies; improved performance from associates; less impact from fuel price volatility; and lower net gearing," explained PublicInvest Research.


The research house, however, noted that in terms of capacity expansion, the AAX fleet will remain unchanged as there is no new aircraft delivery expected this year.


As a result, AAX will be in a net cash position in FY18, but this is likely to reverse into net debt again once aircraft deliveries are back on track from FY19 onwards, PublicInvest Research said.


On a positive note, AAX is expected to increase its average seat km (ASK) through better aircraft utilisation and increase its frequencies of current routes by strengthening operations in key markets like China and Australia.


The firm is also positive on AAX's new Honolulu route, through Osaka, which is expected to be launched in June this year.


Additionally, on AAX's Indonesian unit IAAX services, which have been temporarily suspended since September 2016, PublicInvest Research made note of its two aircraft being temporarily wet-leased to Malaysia AirAsia (MAA).


"We understand that it has already submitted plans to resume its operations, probably by early 2H2017 and currently waiting for approval of new routes; with its route strategy to be towards North Asian and Indian market," said the firm.

AIR ASIA TARGET RM4.00 ......

AirAsia sets up low-cost carrier JV in Vietnam

KUALA LUMPUR: AirAsia Bhd is expanding its operations in Southeast Asia, with the proposed low-cost carrier (LCC) joint venture with Gumin Company Ltd and Hai Au Aviation Joint Stock Company.

AirAsia said on Friday its unit AirAsia Investment Ltd (AAIL) had signed a shareholders agreement and a share subscription agreement with Gumin, Tran Trong Kien and Hai Au Aviation to establish a LCC in Vietnam.

HAA, which is operating a general aviation business in Vietnam, will form the vehicle for the JV.

Currently, HAA has a paid-up charter capital of one billion Vietnam dong (RM19.4mil) and undertakes to increase its charter capital to one trillion dong (RM194mil) for the JV.

It said AAIL will hold a 30% stake or 30 million shares; Gumin 69.9% (69.99 million shares) and Tran one share.

AAIL and the JV company also signed a new shareholder loan agreement. Under the deal, AAIL will provide a loan of US$2mil (RM8.84mil). Separately, Gumin will provide a US$4mil to the JV Co.

“The rationale for the JV is to be an airline in Vietnam which offers an affordable but high-quality airline service to Vietnamese and foreign tourists by leveraging the best-in-class LCC business model which is expected to give the Vietnamese population a greater choice as well as spur overall economic growth.

“Improving connectivity in Vietnam would further support an uptick in GDP, providing a boost in multiple industries namely tourism, export related industries, logistics, airport retailers and airline support industries.

“An increase in connectivity will also stimulate demand for air travel amongst the population, opening doors to studies abroad, work related travel and sprouting of new small and medium industries,” it said.

AirAsia said the JV will require a capitalisation of one trillion dong of which, AirAsia will contribute 30% (300bil dong/RM58.2mil) of the aforesaid capital, with further support provided, at the discretion of the Board of AirAsia by loans, advances or other securities it sees fit.

“This commitment further cements AirAsia’s belief that this is a key strategic Joint Venture in the region.

AirAsia will raise internal funding for its portion of the equity,” it said.

Read more at http://www.thestar.com.my/business/business-news/2017/03/31/airasia-sets-up-low-cost-carrier-jv-in-vietnam/#G8oGgbVJ0mGyJcr8.99

https://www.bloomberg.com/news/articles/2017-03-31/airasia-plans-vietnam-venture-as-traffic-soars-in-southeast-asia

https://www.bloomberg.com/news/videos/2017-03-30/airasia-group-ceo-says-great-to-have-oil-stability-video


LET'S TAKE A LOOK JUST INTERVIEWED AIR ASIA CEO ....

http://www.dealstreetasia.com/stories/my-drb-hicom-doing-a-detailed-evaluation-of-bids-for-foreign-partner-in-proton-68854/


Malaysia’s DRB-Hicom says detailed evaluation of Proton bids underway

THIS MONTH APRIL 2017 , AIR ASIA WILL BE THE MOST HOT STOCK... huat huat ar ! fly high up... TARGET 3.80- 4.00

AffinHwang Capital upgrades AirAsia to a ‘buy’ recommendation based on its prospects, including the upcoming sale of its leasing unit for possibly RM4.4 billion.

http://www.freemalaysiatoday.com/category/highlight/2017/03/29/airasia-expected-to-successfully-navigate-challenging-times/

http://business.mb.com.ph/2017/03/28/south-korean-group-in-advanced-talks-to-buy-into-airasia-leasing-unit/

South Korean group in advanced talks to buy into AirAsia leasing unit

By Reuters

Singapore/Seoul – A little-known South Korean group is in advanced talks to acquire a stake in AirAsia Bhd’s aircraft leasing unit, according to three people familiar with the matter.

Two of the people said a deal would value AirAsia’s fully-owned unit, Asia Aviation Capital, at roughly $900 million.

Privately-owned KOTAM, or Korea Transportation Asset Management, has been picked as the preferred bidder, the people said, with one adding that state lender Korea Development Bank (KDB) was tapped to provide funding, though it was not clear whether the bank had agreed to back the deal.

KOTAM is part of Kukje Maritime Investment Corp., known as KMarin, which was founded in 2005 and has a fleet of 46 ships, according to its website.

KOTAM, KDB and AirAsia did not have immediate comment.

A successful deal would mark South Korea’s biggest move into the $256-billion global aircraft leasing sector, which has attracted others in Asia, including Industrial and Commercial Bank of China, BOC Aviation, China’s acquisitive HNA Group, and Japanese banks.

KOTAM and AirAsia are negotiating final terms of the purchase of a majority stake in the leasing unit, one of the sources said. Asia’s biggest budget airline has sought buyers for its subsidiary since last year, and has said it aimed to close a sale early this year.

A deal with KOTAM could still fall through, and two sources said that Air -Asia has not closed the door to a deal with a Chinese bidder.

The sources declined to be identified as the negotiations are ongoing and confidential.

South Korean insurers, asset managers and securities firms are attracted to aviation finance as aircraft leases offer fixed returns and are often seen as relatively safe transactions.

Paid for in US dollars, aircraft are comparatively easy to release to various airline operators across the world.

Reuters reported in December that AirAsia had received strong interest from North Asian firms, besides many Chinese companies.

One of the sources said AirAsia was becoming concerned about Chinese buyers’ ability to close a deal due to China’s recent measures to tighten controls on money moving out of the country.

AirAsia still on solid ground

Posted on 29 March 2017 - 05:36am

PETALING JAYA: The year 2017 is shaping up to be a challenging year for aviation due to aggressive expansion by regional players, but both AirAsia Bhd and AirAsia X Bhd look well positioned to weather yield pressure with their cost competitiveness superiority and dominant market share.

AffinHwang Capital said both AirAsia and AirAsia X posted record profitability in 2016, bolstered by declining fuel prices, robust passenger-demand growth and benign industry-capacity additions.

“Heading into 2017, we expect industry headwinds from heightened competition on the re-invigoration of Malaysia Airlines and aggressive expansion by Malindo Air to pressure industry yields, leading to revenue per available seat kilometre (RASK) decline,” it said in a report yesterday.

AffinHwang Capital expects AirAsia to weather the impending yield pressure with its cost competitiveness superiority, underpinned by higher aircraft-utilisation hours and process digitalisation to protect yield spreads. The successful turnaround of the previously loss-making affiliates in Indonesia and the Philippines should stem the decline in Thailand, and provide bottom-line support amidst intensifying competition in Malaysia.

“We also expect the upcoming sale of its leasing arm at US$1 billion (RM4.4 billion) to provide much-needed capital to pare down its borrowings and fund the 21 aircraft additions to its fleet in 2017. The potential listing of its Asean affiliates and Holding Company at the Hong Kong Stock Exchange/New York Stock Exchange could crystallise the embedded value and rerate the share price.”

It is upgrading AirAsia to a “buy” recommendation due to improving affiliate contribution and the imminent sale of its leasing arm, while maintaining its “buy” call on AirAsia X as it remains confident on its earnings turnaround sustainability.

“We see room in cutting CASK (cost per available seat kilometre) further via higher aircraft-utilisation efficiencies, which should also see a corresponding 25% increase in RASK with incremental flight frequencies and potential new routes. We continue to favour AirAsia X for its turnaround story and continuous drive for cost optimisation,” said AffinHwang.

It however has a sell rating on Malaysia Airports Holdings Bhd (MAHB) as it sees downside risks from its Turkey operation due to declining passenger growth and believe operational-cost escalation could hurt earnings.

Istanbul Sabiha Gokcen is not expected to break even at least until 2019, and this should continue to be a key drag on MAHB’s earnings. Despite the recent passenger service charge revision and concession-agreement extension, shareholder-return generation remains unappealing with less than a 5% return on equity and low 1-2% dividend yields.

http://www.thesundaily.my/news/2208954

http://www.thestar.com.my/business/business-news/2017/03/28/intensifying-competition-in-airline-industry/

KUALA LUMPUR: Affin Hwang Capital Research has upgraded AirAsia Bhd due to improving affiliate contribution and the imminent sale of its leasing arm.

The research house has maintained a “buy” call on AirAsia X as it remained confident on its earnings turnaround sustainability.

“We remain contrarian on Malaysia Airports Holdings Bhd (MAHB) with a ‘sell’ rating as we see downside risks from its Turkey operation due to declining passenger growth and believe operational-cost escalation could hurt earnings,” Affin said in a report.

The research house said 2017 was shaping up to be a challenging year for aviation due to aggressive expansion by regional players, but both AirAsia and AirAsia X look well positioned to weather yield pressure with their cost-competitiveness superiority and dominant market share.

Last year has been a highly profitable year for aviation industry as a whole, characterised by record-low jet-fuel prices, soaring air travel demand and a benign competitive environment owing to under-expansion in prior years.

Both AirAsia and AirAsia X posted record profitability in 2016, bolstered by declining fuel prices, robust passenger-demand growth and benign industry-capacity additions.

“Heading into 2017, we expect industry headwinds from heightened competition on the reinvigoration of Malaysia Airlines and aggressive expansion by Malindo Air to pressure industry yields, leading to RASK decline,” it said.

Affin expects AirAsia to weather the impending yield pressure with its cost competitiveness superiority, underpinned by higher aircraft-utilisation hours and process digitalisation to protect yield spreads.

It said the successful turnaround of the previously loss-making affiliates in Indonesia and Philippines should stem the decline in Thailand, and provide bottom-line support amidst intensifying competition in Malaysia.

“We also expect the upcoming sale of its leasing arm at US$1bil to provide much-needed capital to pare down its borrowings and fund the 21 aircraft additions to its fleet in 2017,” it said adding that the potential listing of its Asean affiliates and holding company at HKSE/NYSE could crystallise the embedded value and rerate the share price.

Affin has raised its our estimates by 25% for FY17, primarily after lifting its earnings assumption for its associate contribution. Its 12M target price is now lifted to RM3.80, pegged to an unchanged 10x CY17E EPS.

Affin also expected AirAsia X earnings turnaround to be sustainable due to ongoing route optimisation and efficient capacity deployment.

“We see room in cutting CASK further via higher aircraft-utilisation efficiencies, which should also see a corresponding 25% increase in ASK with incremental flight frequencies and potential new routes.

“We continue to favour AirAsia X for its turnaround story and continuous drive for cost optimisation. We maintain our BUY rating with an unchanged 12-month target price of RM0.57, pegged to an unchanged 8x CY17E EPS,” Affin said.

Meanwhile, Affin said the disappointing passenger growth from its Turkey operation on the horizon, ISG is not expected to break even at least until 2019, and this should continue to be a key drag on MAHB’s earnings.

It noted that shareholder-return generation remained unappealing with less than a 5% ROE and low 1-2% dividend yields despite the recent PSC revision and concession-agreement extension.

“With declining unit revenue due to lower pax spend and escalating costs on incremental maintenance expenses at key airports in its stable, we continue to see pressure on Ebitda delivery.

“Our assumptions imply only 2% in Ebitda growth despite a 5% top-line increase.

“We maintain our contrarian ‘sell’ call on MAHB, but we lift our 12M discounted cash flow-derived target price to RM5.80 after lowering our capex assumptions,” Affin said
Read more at http://www.thestar.com.my/business/business-news/2017/03/28/intensifying-competition-in-airline-industry/#xpUomKODW0cJKOX8.99

AIR ASIA FLIES HIGH SKY....,,, TARGET RM4.00

http://www.ch-aviation.com/portal/news/54498-koreas-kotam-nears-stake-in-airasia-leasing-unit

Korea's KOTAM nears stake in AirAsia leasing unit !

Korea Transportation Asset Management (KOTAM) has been named as the preferred bidder for a stake in AirAsia Group's leasing unit, Asia Aviation Capital. KOTAM is part of Kukje Maritime Investment Corp. (KMarin), which specializes in shipping and logistics.

According to sources who spoke to Reuters, talks with KOTAM have focussed on the purchase of a majority stake in the lessor. South Korean state lender, the Korea Development Bank (KDB), has been tapped to provide funding, though it was not clear whether the bank had agreed to back the deal.

Earlier this year, AirAsia Group confirmed it had received eight non-binding bids for full ownership of its Asia Aviation Capital leasing unit. In one instance, it said it had received an offer for an 80% stake.

The sale is expected to be concluded in April.

http://www.nst.com.my/news/2017/03/222313/partner-search-why-2-foreign-bidders-regard-proton-valuable

MyEG forms JVC in the Philippines

PETALING JAYA: My E.G. Services Bhd (MyEG) has entered into a joint venture agreement with I-Pay Commerce Ventures, Inc (IPCVI) for the development and implementation of electronic government services projects in the Philippines and the provision of other electronic government related services including electronic payment services in the country.

A joint venture company (JVC) will establish its office in Metro Manila.

IPCVI is a payment processing provider and a direct agent of Western Union in the Philippines. It is backed by renowned investors such as leading technology and retail conglomerate IP Ventures Inc, Kaikaku Fund (Softbank affiliated fund), JJ Atencio and Derrick Chiongbian.

“The JVC will enable MyEG to expand its geographical presence in the Asean region and open new frontier where MyEG will be able to offer its expertise to operate government services and government related services through the internet. Furthermore, MyEG will be able to continue to grow its business organically and continue with its expansion plans to offer its services to new market,” MyEG said.

MYEG will have a 40% share in the initial capitalisation of the JVC and will invest up to US$2 million (RM8.9 million) in three tranches subject to the JVC meeting certain targets.


http://www.thesundaily.my/news/2195490

CIMB Research retains Add for MY EG at RM3.14 on Manila
BUY CALL

KUALA LUMPUR: CIMB Equities Research is retaining its target price of RM3.14 for MY EG Services which is 72.5% above the last traded price of RM1.82.

It said on Thursday that it was maintaining its earnings per share (EPS) forecast and target price, based on an unchanged 25.2 times 2018 price-to-earnings (P/E), a 20% premium over its 21 times P/E target for the technology sector.

“The premium is justified by its 53.6% 3-year EPS CAGR (FY17-19F). A successful launch of the GST monitoring project and this Philippines venture are potential re-rating catalysts.
Risks include weak registration of illegal foreign workers (IFWs),” it said.

On Wednesday, MyEG announced it had signed a JV agreement with I-Pay Commerce Ventures (IPCV) to provide electronic government services in the Philippines and other related services, including electronic payment services.

IPCV is a payment processing services provider and a direct agent of Western Union in the country. MyEG will hold 40% of the new JV while IPCV will hold the rest.

IPCV is backed by renowned investors like IP Ventures (leading technology and retail conglomerate in the Philippines), Kaikaku Fund (Softbank affiliated fund), JJ Atenco (founder of 899 Holdings Inc.) and Derrick Chiongbian.

IPCV owns two concessions, providing services to the National Bureau of Investigation of Philippines (NBI) and Philippines Overseas Employment Agency (POEA).

CIMB Research said the JV comes with ongoing concessions with two agencies: 1) the National Bureau of Investigation of Philippines (NBI) – the service allows users to obtain a police clearance certificate, a requirement when applying for new jobs; and 2) Philippines Overseas Employment Agency (POEA) – the service enables users to obtain certification, allowing them to work overseas.

“This news is a positive surprise to us as it is MyEG‘s first successful overseas venture, an indication of how MYEG is entering other markets via partnerships with local companies.

“We believe MyEG can help the business grow further as it has developed the infrastructure required to set up electronic government services over the past 10 years. Partnering with MyEG will help the companies reduce their start-up costs considerably, in our view.

“While the announcement did not highlight any profit and loss figures from the two concessions, we have assumed the revenues generated are from a low base.

“With MyEG’s infrastructure support, we believe the revenues from these two concessions should pick up rapidly over the next few quarters. MyEG will invest US$2mil for its 40% stake in the new JV,” it said.
Read more at http://www.thestar.com.my/business/business-news/2017/03/16/cimb-research-retains-add-for-my-eg-at-rm3pt14-on-manila-jv/#yjW6cihzvvvzhBH8.99

The Malaysian Anti-Corruption Commission (MACC) is not investigating the corruption case involving AirAsia and jet engine manufacturer Rolls-Royce PLC, Minister in the Prime Minister's Department Paul Low said.

"As of now, there is no statement that can link any party to any offence under the MACC Act 2009 regarding the case probed by (UK's) Serious Fraud Office (SFO)," Low said in a parliamentary written reply today.

However, he said, the MACC welcomes any information on this case that any individual can furnish.

Low also said the MACC had cooperated with the SFO.

On Jan 21, it was reported that the SFO had named AirAsia Group as one of several foreign parties involved in bribery cases with jet engine manufacturer Rolls-Royce PLC.

The bribery in the AirAsia deal was one of 12 charges brought against Rolls-Royce after a four-year investigation into its dealings with clients in Indonesia, Thailand, India, Russia, China and Malaysia.

https://www.malaysiakini.com/news/375154

karex business should be profitable.. yet another problem to face it .. is this... black market condom

http://www.dailymail.co.uk/news/article-2566403/Population-boom-More-two-million-boxes-fake-condoms-released-Chinese-market-black-market-racket.html

Bursa Malaysia (2015) stated that Unusual Market Activities (UMA) refers to any abnormal trading activities which involve substantial price change, and/or volume movement, arising from the trading of an individual stock or its derivatives during any market session.

Unusual Market Activity [UMA] query by BURSA SEC

http://www.thestar.com.my/business/business-news/2017/03/02/airasia-to-focus-on-growth-push-down-cost/

KUALA LUMPUR: AirAsia Bhd will continue focusing on growth, while bringing down cost, Group Chief Executive Officer Tan Sri Tony Fernandes said today.

He said the low cost carrier would also emphasise higher utilisation of its fleet.

“Growth, growth, growth. That’s what we are focusing on in the Airasia group, and it will be profitable growth, as investment done.

“On top of growth we are pushing down costs, especially with our peers.

Higher utilisation. New aircraft. More seats. Data and technology,” added Fernandes, via his official twitter handle today.

Airasia Bhd reported a higher pre-tax profit of RM2.16bil for its financial year ended Dec 31, 2016 from RM215.15mil in 2015.

Revenue rose to RM6.92bil from RM6.29bil.

The airline attributed the better revenue performance to passenger growth, higher ancillary income per passenger year-on-year and an increase in average fares, which rose 6% to RM167.

Meanwhile, the Centre for Aviation (CAPA) quoted AirAsia’s Group Head of Strategy, Subashini Silvadas as saying that Malaysia AirAsia could end up growing fleet more than the eight A320s currently planned.

“The group now plans to reach 300 A320s by 2021 and 333 aircraft by 2022 compared with 176 at end-2016,” it said, in quoting Subashini from the ongoing CAPA Airline Fleet and Finance Summit 2017 in Singapore.

She had also said that the group had secured 10 A320ceo leases of the now 13 planned for 2017.

She was also quoted as saying that AirAsia Japan would launch services “soon” and end 2017 with five A320s.

According to Subashini, AirAsia Japan can’t take the Airbus Neo due to Japanese regulations. - Bernama


Read more at http://www.thestar.com.my/business/business-news/2017/03/02/airasia-to-focus-on-growth-push-down-cost/#Otm71vvQBbvxEufK.99

This story appears in the March 2017 issue of Forbes Asia.


Fortunes Of AirAsia's Bosses Soar On New Share Issue

The two men behind AirAsia--No. 37 on the Malaysian Rich List, Tony Fernandes, group chief executive, and his business partner, No. 38 Kamarudin Meranun, the airline's executive chairman--saw their fortunes soar by 50% or more over the past year.

In January they purchased the entire issuance of 559 million new shares in their flagship--spending $228 million. The duo now own nearly a third of AirAsia, which is Asia's largest low-cost airline in terms of passengers carried. The stock has risen 95% in the past year.

The rebound didn't come easy. The long-awaited share issue, which was announced last April, was extended four times pending approval for offshore funding from Malaysia's central bank. The cash will be used for everything from working capital and debt repayment to financing aircraft, engines and parts.

malaysias-richest-2017

In July AirAsia placed orders for 100 aircraft from Airbus and 200 engines from CFM International in the U.S.; the list price for the purchases was $15.2 billion.

Meanwhile, there's more action expected from the group as AirAsia is getting bids to sell its leasing arm, Asia Aviation Capital. And it's looking to build low-cost airports across the region.



https://www.forbes.com/sites/anuraghunathan/2017/03/01/fortunes-of-airasias-bosses-soar-on-new-share-issue/#b5bc96336f66
















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http://www.theedgemarkets.com/my/article/shell-malaysias-4q-net-profit-swells-115

Shell Malaysia's 4Q net profit swells 115%

KUALA LUMPUR (Feb 28): Shell Refining Company (Federation of Malaya) Bhd posted a 115% rise in net profit to RM207.8 million for the fourth quarter ended Dec 31, 2016 (4QFY16), from RM96.5 million a year earlier, due mainly to the gradual recovery of the prices of crude oil and other products.

Revenue grew 7.4% to RM2.53 billion from RM2.36 billion in 4QFY15, the group said in a filing to Bursa Malaysia.

Shell said its full year net profit dipped 4.7% to RM335.3 million from RM351.8 million in FY15 as the gross profit margins were offset by a higher depreciation cost.

Revenue for FY16 dropped 7.9% to RM8.37 billion from RM9.08 billion in FY15 due mainly to lower product prices, which are driven by market forces.

On prospects, the group said refinery margins are expected to remain uncertain.

"Operational efficiency, product quality and financial risk management will continue to remain the company's key focus in maximising margin opportunities for FY17," it said.

At 3.50pm, Shell rose 60 sen or 18.58% to RM3.83, for a market capitalisation of RM1.13 billion.

TOMOROW TARGET PRICE RM4.20 TO RM 4.50

AIR ASIA BY MARCH 30, TARGET PRICE RM2.80 TO RM3.50

Shell Malaysia's 4Q net profit swells 115%

KUALA LUMPUR (Feb 28): Shell Refining Company (Federation of Malaya) Bhd posted a 115% rise in net profit to RM207.8 million for the fourth quarter ended Dec 31, 2016 (4QFY16), from RM96.5 million a year earlier, due mainly to the gradual recovery of the prices of crude oil and other products.

Revenue grew 7.4% to RM2.53 billion from RM2.36 billion in 4QFY15, the group said in a filing to Bursa Malaysia.

Shell said its full year net profit dipped 4.7% to RM335.3 million from RM351.8 million in FY15 as the gross profit margins were offset by a higher depreciation cost.

Revenue for FY16 dropped 7.9% to RM8.37 billion from RM9.08 billion in FY15 due mainly to lower product prices, which are driven by market forces.

On prospects, the group said refinery margins are expected to remain uncertain.

"Operational efficiency, product quality and financial risk management will continue to remain the company's key focus in maximising margin opportunities for FY17," it said.

At 3.50pm, Shell rose 60 sen or 18.58% to RM3.83, for a market capitalisation of RM1.13 billion.

http://www.nst.com.my/news/2017/02/215775/flying-asean-dream-airasia-start-ball-rolling-dual-listing


Flying the Asean dream: AirAsia to start ball rolling with dual listing
KUALA LUMPUR: AirAsia Group, the world’s top low-cost airline, is planning a series of initial public offerings (IPOs) for its affiliates, starting with the dual listing of AirAsia Bhd in either Hong Kong or New York.

AirAsia Group chief executive officer Tan Sri Tony Fernandes told NST Business there was no definite period for the IPO yet as the plan
was being reviewed by the airline’s board members.

“The board has been presented with both options (in regard to AirAsia Bhd’s dual listing),” he said on Friday, adding that there were still work to be done on the dual listing.

Fernandes said the move would allow AirAsia Bhd to reach a broader base of investors.

AirAsia Bhd has been listed on Bursa Malaysia’s Main Market since November 2004.

The airline was founded by DRB-HICOM Bhd in 1993 before the then-heavily indebted carrier was sold to Fernandes and his business partner, Datuk Kamarudin Meranun, in December 2001 for a symbolic RM1.

AirAsia Group has affiliates in Thailand, Indonesia, the Philippines and India. Indonesia AirAsia and Philippines AirAsia are slated to be listed by the third quarter of the year.

The two airlines have appointed bankers in Indonesia and the Philippines to work on the IPOs.

Fernandes said the plan was to have its affiliates in Malaysia, Thailand, Indonesia and the Philippines listed on the countries’ local bourses first, and then to combine these affiliates into a single, listed Asean holding company.

“We now have four airlines making money. Basically, the Asean engine is working. The Asean holding company is beginning to take shape.”

The holding company would be similar to European group airlines such as the International Consolidated Airlines Group SA and Air France-KLM.

AirAsia Group recorded a profit of RM2.15 billion in the 2016 financial year, up 24 per cent from the 2015 financial year. Its revenue climbed to RM12.02 billion last year from RM10.79 billion in 2015.

Fernandes said AirAsia Bhd, Thai AirAsia and Indonesia AirAsia made a positive contribution to the group operating profit.

AirAsia Bhd’s net profit increased to RM2 billion in the 2016 financial year from RM541.2 million previously. Its revenue rose to RM6.92 billion from RM6.30billion.

“We are thrilled that our dream of being an Asean airline is coming to fruition with all four companies generating profits. It’s a landmark point for AirAsia Bhd to deliver RM2 billion profit,” said Fernandes.

AirAsia plans to monetise its non-core assets, which include Asia Aviation Capital worth some US$1 billion (RM4.4 billion) and training centre AirAsia Aviation Centre of Excellence. The group will also re-launch AirAsia Japan by June.

Tomypak may climb higher, says RHB Retail Research

KUALA LUMPUR (Feb 28): RHB Retail Research said Tomypak Holdings Bhd may climb higher after posting a long white candle and hitting its highest close in more than seven months.

In a trading stocks note today, the research house said that the positive slope of the 21-day SMA line suggests the likelihood of increasing demand in the coming sessions.

“A bullish bias may emerge at above the RM1.78 level, with an exit set below the RM1.64 threshold.

“Towards the upside, the immediate resistance level is seen at RM1.99. This is followed by the RM2.09 level,” it said.

http://www.theedgemarkets.com/my/article/tomypak-may-climb-higher-says-rhb-retail-research

westport.. falling falling falling... further..... dun be sad ya..

MyEG Q2 net profit jumps 57%

PETALING JAYA: My E.G. Services Bhd's net profit for the second quarter ended Dec 31, 2016 rose 57% to RM47.6 million from RM30.3 million a year ago attributable to higher transaction volumes from the online renewal of foreign workers' permits and insurance (FWP) and foreign worker rehiring programme services; as well as increase in revenue contribution from our motor vehicle trading related services.

Its revenue increased 39.6% to RM88.7 million compared with RM63.5 million in the previous year's corresponding quarter.

For the six months period net profit jumped 50% to RM88.1 million from RM58.8 million last year primarily attributable to higher transaction volumes from the online renewal of FWP and foreign worker rehiring programme services; increase in revenue contribution from our JPJ related services; and increase in revenue contribution from our motor vehicle trading related services.

Its revenue increased 34.6% to RM167.3 million against RM124.2 million a year ago.

The directors have declared a first interim single tier dividend of 0.5 sen per ordinary share amounting to RM18.03 million for the current financial year ending June 30, 2017, payable on May 24, 2017 to shareholders registered at the close of business on April 26, 2017.

For the financial year ending June 30, 2017 (FY2017), the continued growth in volume of our existing services, especially the online renewal of foreign workers' insurance and foreign worker services, are expected to contribute to its group revenue and profit after tax.

"While concession services continue to be our core business, non-concession related services, such as the road safety diagnostic services, sale of prepaid top ups for Celcom mobile lines and provision of hostel accommodation to foreign workers, are expected to contribute to our growth for FY2017," it said.

http://www.thesundaily.my/news/2177373

KUALA LUMPUR: CIMB Equities Research is maintaining its Add call on DRB-Hicom, with an unchanged sum-of-parts based target price of RM1.69, which is 10% below its realised net asset value (RNAV).

It said on Monday its Add call was supported by the imminent foreign strategic partner (FSP) for Proton Holdings Bhd (Proton) and better performance by DRB-Hicom’s services division.

StarBizWeek reported that French PSA Group (PSA) is likely to be chosen as the FSP for Proton as it presented the best proposal to rescue and expand Proton’s operations in Asean. PSA plans to raise Proton’s capacity from 150,000 units a year to between one million and two million units a year.

The report also said PSA proposed to consolidate Proton’s production by transferring the production lines in the Shah Alam plant to the underutilised Proton City plant in Tanjung Malim in order to gain better economies of scale and become more competitive.

PSA is said to be ready to finance the construction of the new plant in Tanjung Malim. According to the latest filling, PSA Group had net cash of €4.5bil as at December 2015.

StarBizWeek also reported that another contender for controlling stake in Proton, Geely
Automobile Holdings (Geely), was more interested in acquiring Lotus (British sports car manufacturer) than taking a stake in Proton.

CIMB Research also said it was not surprised that Geely is seeking to tap into Lotus’s engineering technology and experience in consulting and development for other global automakers.

“We think PSA would be a good fit for Proton given its strength in the sports utility vehicle (SUV) segment. The article mentioned that PSA intends to produce SUVs for the Asean market and Proton currently does not have exposure to SUV segment.

“We note that demand for SUVs in Malaysia is strong, given the popularity of SUV models such as Honda HR-V, CR-V and Mazda CX-5. PSA’s entry is likely to make its’ products more attractive due to competitive pricing, as there will not be any import duties on cars originating from Asean

“The article reported that PSA appears more interested in acquiring a controlling stake in Proton, while Geely prefers to acquire Lotus (instead of DRB’s entire stake in Proton).

“DRB stands to benefit from the proposed disposal or reduction in Proton stake, as it would no longer be required to consolidate Proton’s and Lotus’s losses in its group financial statements. Excluding Proton, we estimate that DRB would have reported RM467mil net profit in FY16, instead of RM992mil net loss,” said CIMB Research.


Read more at http://www.thestar.com.my/business/business-news/2017/02/20/cimb-research-retains-add-for-drb-hicom/#ZR4P8rdJmMcBFSOf.99