Posted by Mark T Bird > 2016-02-13 18:18 | Report Abuse

If you are too busy to read, you are too busy. :-)

Posted by rikki > 2016-02-15 12:39 | Report Abuse

Supermax gains 2.15% on rating and target upgrade

KUALA LUMPUR (Feb 15): Shares of Supermax Corporation Bhd rose 2.15% in early trade today after AffinHwang Capital Research upgraded the stock to “Buy” with a higher target price of RM3.40 (from RM2.20) and said Supermax is scheduled to release its 4QCY15 results in the last week of February.

At 9.14am, Supermax gained 6 sen to RM2.85 with 624,700 shares done.

In a note today, the research house said it is expecting a strong set of results due to higher installed capacity as Plants 10 & 11 are now operational.

“Its share price has corrected by 14% year-to-date; given our upward earnings revisions, we see value emerging in the stock.

“We raise our target price to RM3.40 at 16x FY16 PE due to the better earnings visibility. Upgrade to Buy on valuations,” it said.

Posted by rikki > 2016-02-15 12:40 | Report Abuse

AllianceDBS Research starts coverage on SKP Resources, target RM1.78

KUALA LUMPUR (Feb 15): AllianceDBS Research has initiated coverage on SKP Resources Bhd with a “Buy” rating and target price of RM1.78 and said the company was benefitting from Dyson’s aggressive expansion plans.

In a note today, the research said ample spare capacity at new plant to cater to further contract wins.

“Attractively priced at 0.25x PEG with strong 3-year EPS CAGR of 44%

“Initiate coverage: Buy, target price RM1.78,” it said.

Posted by rikki > 2016-02-15 19:02 | Report Abuse

Tek Seng's profit surges 76%, power by solar panel business

KUALA LUMPUR: PVC-related flooring and packaging product maker Tek Seng Holdings Bhd received a strong boost from the sale of photovoltaic products in the final quarter of 2015, resulting in a 76% annual growth in net profit to RM21.27mil for the year.

The company, whose profit slipped 13.7% year-on-year in Jan-Sept 2015, powered ahead in the fourth quarter (Q4) when it recorded a net profit of RM10.41mil, a turnaround from a net loss of RM513,000 a year earlier.

According to its filing with Bursa Malaysia on Monday, the Q4 growth was largely due to the much higher sales volume of solar-related products. The solar segment’s pre-tax profit surged by RM14.3mil to RM11.5mil.

Revenue for the quarter grew a whopping 150% to RM122.36mil, pulling up the annual revenue by 54.9% to RM359.52mil.

Tek Seng manufactures photovoltaic products such as solar cells and solar panels through 68.09%-owned subsidiary TS Solartech Sdn Bhd.
 
In late 2014, Tek Seng had brought in a strategic equity partner, Taiwan-listed photovoltaic product manufacturer Solartech Energy Corp, which led to its stake in TS Solartech to be diluted from 86.1% to 68.09%. The decision has proven to be a good move based on the latest results.

StarBiz reported on Monday that Tek Seng plans to triple its solar products’ production capacity this year to 740MW by spending RM237mil to add five production lines. (SeeTek Seng set to triple production capacity) 

Group managing director Loh Kok Beng said the solar panel business would contribute 60% to 70% of the group’s revenue this year.

Tek Seng has proposed a final dividend of 1.5 sen for the 2015 financial year, which will give a total dividend of 3 sen for the year. There was no dividend declared the previous year.

Tek Seng shares gained 3 sen to close at RM1.12 on Monday.

Posted by rikki > 2016-02-15 20:14 | Report Abuse

BP Plastics' 4Q net profits jumps 264 %

KUALA LUMPUR (Feb 15): BP Plastics Holding Bhd’s net profit for the fourth quarter ended Dec 31, 2015 (4QFY15) surged 264% to RM8.3 million, from RM2.28 million, mainly attributable to higher sales volume with better product mix, higher process efficiencies and the weaker ringgit.

Its 4QFY15 revenue gained 16.34% year-on-year (y-o-y) to RM81.07 million, from RM69.68 million.

According to the filing to Bursa Malaysia, BP Plastics has proposed a second interim dividend of three sen, payable on March 17. The ex-date and entitlement date fall on March 1 and March 3. This will bring its full year dividend to eight sen.

In a separate filing, the company said it has adopted a dividend policy of distributing minimum 40% of the consolidated profit after tax and non-controlling interests in respect of any financial year to its shareholders.

“This dividend policy shall commence for the financial year ending Dec 31, 2016 (FY16),” it added.

For the full year, BP Plastics' net profit climbed 119.3% to RM22.08 million, from RM10.07 million a year ago, due to lower raw material costs, favourable foreign exchange gained from export sales arising from the weaker ringgit, better product mix and higher process efficiencies.

Revenue was almost flat at RM283.46 million, compared with RM283.96 million.
 
Despite low crude oil and weak commodities prices that are unfavourable to producing countries, the group said it helps to ease and increase global consumer disposable incomes.

With a stronger economic recovery anticipated in US and additional stimulus in Japan and Europe Zone, BP Plastics has envisaged that the demand for manufacturing goods, as well as packaging goods, would remain resilient.

“Barring any unforeseen circumstances, the group is cautiously optimistic of delivering a satisfactory performance in FY16,” it added.

BP Plastics lost two sen or 1.09% at RM1.85 today, for a market capitalisation of RM347.22 million.

Posted by rikki > 2016-02-16 11:20 | Report Abuse

Aemulus skids after weaker earnings

KUALA LUMPUR: Semiconductor company Aemulus’ share price skidded early Tuesday after the weaker-than-expected results in the first quarter ended Dec 31, 2015

At 9.16am, it was down 6.5 sen to 37.5 sen. There were 4.99 million shares done.

The FBM KLCI rose 5.66 points or 0.34% to 1,655.62. Turnover was 133.27 million shares valued at RM57.07mil. There were 169 gainers, 72 losers and 148 counters unchanged.

Aemulus’ Q1 revenue fell by 69% on-year to RM2.7mil from RM8.7mil due to lower tester and module shipments.

CIMB Research said this was due to the weakness in seasonal demand and a slowdown in global semiconductor industry demand.

It added the 1QFY16 results were below CIMB Equities Research and consensus expectations due to lower-than-expected sales in the quarter.

http://www.thestar.com.my/business/business-news/2016/02/16/aemulus-q1-earnings-below-forecast/




http://www.thestar.com.my/business/business-news/2016/02/16/aemulus-q1-earnings-below-forecast/

Posted by rikki > 2016-02-18 06:54 | Report Abuse

Iran oil minister: Support any effort to stabilize market and prices

Iran could support any effort to stabilize oil prices, including cooperation between OPEC and non-OPEC oil producers, the nation's oil minister said after a meeting Wednesday, according to Reuters.

Oil Minister Bijan Zanganeh said while he supports a production "ceiling" to stabilize oil prices, it's the first of several steps that should be taken, according to Reuters reports quoting the ministry's official Shana news agency.

OPEC ministers had traveled to Iran to talk about a possible production freeze between global oil producers. Oil prices bounced slightly on the Iranian oil minister's comments, with U.S. oil popping above $30 per barrel and Brent futures nearing $34.

http://www.cnbc.com/2016/02/16/russia-saudi-arabia-output-freeze-helps-oil-price-higher-in-asia.html

Posted by rikki > 2016-02-18 06:58 | Report Abuse

Chinese bank hit by $4.9bn loan fraud

Fraudulent loans are on the rise in China as economic growth slows, threatening to further undermine the country's $29tn banking system, which is already under pressure from an indebted corporate sector.

A series of loan frauds has ripped holes in the balance sheets of a range of lenders, from the large — Agricultural Bank of China — through to the phalanx of small commercial lenders.

The latest victim to emerge is Bank of Liuzhou where $4.9bn (Rmb32.8bn) in fraudulent loans were discovered by the bank late last year, according to the state-backed China Business Journal. That represents more than 40 per cent of the bank's total assets of Rmb80bn at the end of 2014 — a dent so large on the bank's balance sheet that it is likely to require government intervention.

"I guess local government may have to swap the bad loans with asset injections to address the solvency issue," said Liao Qiang, director of financial institutions ratings at Standard & Poor's in Beijing.

http://www.cnbc.com/2016/02/17/chinese-bank-hit-by-loan-fraud.html

Posted by rikki > 2016-02-18 07:49 | Report Abuse

Strong U.S. industrial output bolsters growth picture

U.S. industrial production in January rose by the most in 14 months as manufacturing and utilities output increased, the latest sign the economy regained some ground early in the year.

While other data on Wednesday showed a surprise decline in housing starts last month, that was probably because of bad weather, especially in the Northeast and Midwest regions of the country. With building permits ahead of groundbreaking activity, home construction is likely to pick up in the months ahead.

The first increase in industrial output in five months should help allay the fears of a recession that have roiled the stock market and eliminated bets for an interest rate hike from the Federal Reserve in March. The chances of an increase in borrowing costs this year hang in the balance.

"If we step back and view the economy from afar, we see that consumers are spending, manufacturing is beginning to rebound and housing, though not great, is hardly weak. The domestic economy is fine," said Joel Naroff, chief economist at Naroff Economic Advisors in Holland, Pennsylvania.

Industrial production jumped 0.9 percent last month, the largest gain since November 2014, the Fed said. The increase followed a 0.7 percent decline in December and was boosted by a 0.5 percent advance in manufacturing output.

The rise in manufacturing production reflected gains in the output of long-lasting goods such as machinery, furniture and primary metals. Motor vehicle assembly accelerated. The production of food, textiles and chemicals also rose.

http://www.reuters.com/article/us-usa-economy-idUSKCN0VQ1NV

Posted by rikki > 2016-02-18 08:00 | Report Abuse

Don't Panic About China's Slowdown, Goldman Says

China’s growth is poised to decelerate this quarter and the road ahead will be bumpy. But don’t panic, says the most accurate forecaster on the nation’s economy.

Growth will slow to 6.7 percent in the first three months of this year as financial services contributes less to the expansion than a year ago and because policy measures to support growth have tapered off from the last quarter of 2015, says Song Yu, Beijing-based chief China economist at Goldman Sachs Gao Hua Securities Co. and the best overall forecaster of China’s economy according to Bloomberg Rankings for the past two years.

Even though full-year growth will drop to 6.4 percent in 2016 as wages, employment and consumption "take a hit," Song says he’s not negative about China’s economic prospects and dismisses dire predictions of a coming collapse.

"Some people are making extreme arguments to say the whole machine is not working," said Song. "That’s not what we see. Overall, the plane is moving in the direction it should be and it’s broadly under control."

This week, policy makers stepped up support for the economy, with the nation’s chief planning agency making more money available for local infrastructure projects, according to people familiar with the matter.

http://www.bloomberg.com/news/articles/2016-02-17/goldman-sachs-top-analyst-says-don-t-panic-as-china-growth-slows

Posted by Tessa Joseph > 2016-02-18 13:11 | Report Abuse

Ma
Mark hardly have time for anything. Telegram aso read only if don't paticipate/chat ada members don't like, if participate no one answered. Lol.

Posted by rikki > 2016-02-18 15:18 | Report Abuse

S&P cuts Saudi Arabia, Brazil, Oman, Kazakhstan, Bahrain, spares Russia

LONDON: Rating agency Standard & Poor's downgraded Saudi Arabia, Brazil, Kazakhstan, Bahrain and Oman's credit ratings on Wednesday, in its second mass cut of large oil producers in almost exactly a year.

S&P cited the pressures being created by the drop in oil prices for the moves which included double-notch downgrades of Saudi Arabia to A- stable from A+ negative and stripping Bahrain of its investment grade status.

"The decline in oil prices will have a marked and lasting impact on Saudi Arabia's fiscal and economic indicators given its high dependence on oil," the ratings agency said in a statement.

The plunge in oil prices since mid-2014 had already brought a blizzard of downgrades for oil producers, including Saudi Arabia, Russia, Brazil and Venezuela, where the oil rout has raised fears of a sovereign default.

The moves were a near repeat of similar co-ordinated cuts made this time last year. The firm's head of sovereign ratings in EMEA, Moritz Kraemer, told Reuters last month that another such move was being considered.

One country that was spared this time was Russia. S&P said Moscow's fiscal buffers gave it more leeway, though it could still cut its BB+ rating again if those were eroded faster than expected or if international sanctions were "significantly" tightened again.

Brazil was kept on a negative outlook, meaning a roughly 1-in-3 chance of another cut as its rating dropped one notch to BB from BB+.

However, it was Brazil's political difficulties as much as the economic pressures from falling oil prices that were cited for the move.

For the Middle East there is far more intense pressure from low oil because many currencies, including the Saudi riyal, are pegged to the dollar, limiting scope for currency weakness that could stimulate the economy.

Authorities are also having to dig into reserves to keep spending at levels that support their highly dependent economies.

Like Saudi Arabia, Bahrain saw its rating cut two notches. Significantly, though, it also lost investment grade as it went to BB from BBB-.

Oman was lowered two steps as well to BBB- stable from BBB+ negative while Kazakhstan was cut one notch to BBB- from BBB but left on a negative outlook due to concerns about inflation, exchange rate pressures and banking sector stability. - Reuters

Posted by YS Babe > 2016-02-18 15:48 | Report Abuse

Tessa, tu ler anak aku kata, depa dok buang members, masuk pun tak diminta hehehehe Tapi awak pun selalu update website awak, aku baca situ pun cukup der

KUTPAI hehehe

Posted by Tessa Joseph > 2016-02-18 15:54 | Report Abuse

Yup, I think the good thing about telegram is the channel, can read and compare with those from stock broking houses which I dapat everyday in my email....hmmm

Posted by rikki > 2016-02-19 08:41 | Report Abuse

Indonesia’s central bank reduced its main interest rates and reserve ratio for lenders, taking more determined action to boost the economy in the face of political pressure.

Governor Agus Martowardojo and his board lowered the benchmark
reference rate by 25 basis points to 7%, Bank Indonesia said Thursday.
That’s in line with the forecasts of 17 of the 28 economists surveyed by Bloomberg, while the rest predicted no change. The monetary authority also lowered the reserve-requirement ratio for lenders by 100 basis points to 6.5%.

Bank Indonesia stated that “The move is consistent with greater room to
ease monetary policy on the back of solid macroeconomic stability,
especially in terms of less intense inflationary pressures in 2016 as well as less uncertain global financial markets.” (Bloomberg, Reuters)

Posted by rikki > 2016-02-19 19:33 | Report Abuse

SKP Resources' 3Q net profit doubles

KUALA LUMPUR (Feb 19): SKP Resources Bhd's net profit for the third quarter ended Dec 31, 2015 (3QFY16) more than doubled to RM24.15 million, or 2.20 sen a share, from RM10.54 million, or 1.17 sen a share, a year ago, due to higher revenue recorded from existing customers as well as contribution from newly acquired subsidiaries.

In a filing with Bursa Malaysia today, revenue also more than doubled to RM314.77 million for the period, compared to RM150.18 million in 3QFY15.

For the nine-month period (9MFY16), net profit stood at RM60.47 million or 5.58 sen a share, against RM30.71 million or 3.41 sen a share a year ago.

Revenue, meanwhile, came in at RM819.06 million from RM422.16 million in 9MFY15.

Moving forward, the group expects to remain profitable as strong order books from existing customers will contribute positively to its performance for FY16.

"The acquisition of new subsidiaries would allow the group to leverage on their additional production capacity and broaden the product mix to better tailor its services to suit the demand of customers," SKP Resources said.

The plastic moulding manufacturer added that it would diversify its customer base with the acquisitions as the new subsidiaries have established long-term relationships with several multinational companies as its customers, which are spread over a diverse range of industries.

Shares of SKP Resources closed unchanged at RM1.32 with 2.4 million shares traded, giving it a value of RM1.48 billion.

- The Edge Markets

Posted by rikki > 2016-02-19 19:35 | Report Abuse

You are welcome Coldrisks :-)

Posted by rikki > 2016-02-19 20:32 | Report Abuse

Only World Group's 2Q net profit up 28.3% on higher contribution from amusement, recreation ops

KUALA LUMPUR (Feb 19): Only World Group Holdings Bhd's (OWG) net profit rose 28.3% to RM5.33 million or 2.88 sen per share in the second financial quarter ended Dec 31, 2015 (2QFY16) from RM4.16 million or 2.25 sen per share a year ago, due mainly to higher contribution from its amusement and recreation operations.

Revenue grew 15.4% to RM28.35 million in 2QFY16 from RM24.56 million in 2QFY15.

In a filing with Bursa Malaysia today, OWG said its amusement and recreation operations and other services segment posted pre-tax profit of RM2.9 million and RM776,158, compared with RM1.1 million and RM177,458 a year ago, respectively.

However, the food service operations recorded slightly lower pre-tax profit at RM3.8 million from RM4.3 million in 2QFY15.

For the cumulative six-month period (1HFY16), net profit grew 16.5% to RM8.39 million or 4.53 sen per share from RM7.2 million or 3.89 sen per share a year ago.

Revenue also increased 16.5% to RM51.03 million compared to RM43.79 million in 1HFY15.

Moving forward, the group is generally positive of its performance, but cautious of the prevailing economic conditions for the financial year.

OWG's expansion plan includes the Komtar Tower Revitalisation Project in Penang, the franchise programme for Only Mee and opening new food service outlets. The provider of leisure and hospitality services will also open "Fun, Food and Good Living" locations that package multiple food and beverage, attractions and other outlets in a single location, as well as expand and enhance the Wet World Water Park Shah Alam and Escaperoom.

Shares of OWG closed up 12 sen or 5.13% at RM2.46 today, giving it a market capitalisation of RM543.9 million.

- The Edge Markets

Posted by rikki > 2016-02-20 13:34 | Report Abuse

Foreign capital returning?

Malaysian debt market attracting inflows as developed economies turn dovish

THIS is no monkey business: capital is finding its way back to emerging Asian markets, including Malaysia, to seek better yields. This happens as doubts about further interest rate hike in the United States arise, while other developed countries have pushed their interest rates deeper into the negative territory.

Figures from international banking giant JP Morgan show that US$5.5 trillion (RM23 trillion) worth of advanced-economy government bonds were traded at negative yields as at the end of last month. But today, the amount of sovereign debt trading at negative yields is estimated to have grown to US$8 trillion; hence the inflows of capital to emerging Asian markets that offer positive returns.

“We are cautiously optimistic that longer-term foreign investors are the ones coming back into the emerging markets, as these fresh flows are coming in at a stage where there is still volatility in emerging markets,” CIMB Investment Bank director of regional fixed-income research Nik Ahmad Mukharriz Nik Muhammad tells StarBizWeek in an email.

“The fact that emerging markets offer better returns than most developed markets help (drive this round of foreign capital inflow), especially with emerging-market currencies now performing better than last year, while commodities prices have likely seen the worst behind them,” he says, pointing to the trend of low or negative interest rates in developed economies and the dovish tone of the US Federal Reserve of late.

In Thailand and Malaysia, for instance, Nik Ahmad Mukharriz notes that 10-year government bonds offer yields of 2% and 3.90% respectively, compared with levels much lower than 2% in developed countries.

As one of the beneficiaries of these capital inflows to emerging economies, Malaysia has seen increased foreign holdings in its bond market in recent months, while the ringgit has rebounded from its multi-year lows.

Year-to-date, the ringgit has gained 2.05% against the US dollar. This makes the Malaysian currency one of the top performers in the region so far this year.

http://www.thestar.com.my/business/business-news/2016/02/20/foreign-capital-returning/

Posted by rikki > 2016-02-22 08:28 | Report Abuse

Stocks to watch in the current economic slowdown

SMALL to mid cap stocks under the FBM70 are holding firm and selectively, there is potential for higher gains.

Within this list, Karex, IJM, Kulim, YTL Power, Sunway REIT, Berjaya Sports, WCT and IGB REIT are among some of the stocks in spotlight.

Why Karex? News that the Zika virus can be sexually transmitted may spur demand for condoms manufactured by Karex, said Pong Teng Siew, head of research, Inter-Pacific Securities.

Stocks in construction, plantations and utilities are under the radar of Chris Eng, head of research, Etiqa Insurance & Takaful. Within these categories, Mitrajaya, Protasco, KLK, IOI Corp, Tenaga and Malakoff are also recommended.

“Most of these stocks in the construction, REITs and gaming sectors are fairly insulated from the global economic slowdown as they are in mostly domestic-centric businesses,’’ said Vincent Khoo, head of research, UOBKayhian.

Hong Leong Industries is another overweight stock by UOBKayhian.

Magni-Tech has also been highlighted for its surprisingly strong earnings for the second quarter of financial year ending April 30, 2016. The company earned a revenue of RM197.3mil, giving it a profit of RM21.6mil and earnings per share (EPS) of 19.9 sen.

This compares with the previous second quarter where it recorded lower revenue of RM162mil, profit of RM8mil and EPS of 7.0 sen.

Commodities-related stocks could be the next to watch out for, said Danny Ng, CEO, Areca Capital.

Under this category, he favours IOI Corp, Sime Darby, KNM and Muhibbah for mediul to long-term exposure.

Problems in the Chinese economy may spill over to Singapore banks which could experience massive capital outflows if China comes down with a “hard landing,” said the Singapore Business Review, quoting Swiss billionaire investor Felix Zulauf.

http://www.thestar.com.my/business/business-news/2016/02/22/stocks-to-watch-in-current-economic-slowdown/

Posted by YS Babe > 2016-02-22 10:08 | Report Abuse

Selamat pagi semua

Tessa aku rasa group investment samada whasap atau telegram kalau 10% boleh ikut recommendation diberi kira dah bagus, masing2 ada recommendation lain gak, ikut selera masing2 ler. Aku fikir gitu aje, nak harap semua ikut susah ler hehehehe

KUTPAI

Posted by rikki > 2016-02-23 08:11 | Report Abuse

Tien Wah's 4Q net profit jumps 14.1%, plans 14 sen dividend

Kuala Lumpur (Feb 22): Tien Wah Press Holdings Bhd's net profit jumped 14.1% to RM11.8 million in the fourth quarter ended Dec 31, 2015 (4QFY15) from RM7.82 million a year earlier, boosted by RM2.1 million gain on disposal of 50% of Toyo (Viet) Paper Product Co. Ltd, sales rebate of RM3.9 million in 2014 and improvement in operating margins, favourable foreign currency exchange rate and lower depreciation charge.

The lower depreciation charge in the current quarter was RM1.5 million as the group had assessed and revised the residual useful life of certain plant and machineries to reflect its longer estimated useful life based on past experiences and machine vendor's validation.

Quarterly revenue grew by 11.9% to RM97.1 million from RM86.8 million in 4QFY14.

Tien Wah recommended a final single tier dividend of 14 sen, subject to shareholders' approval at the forthcoming annual general meeting. The payment date is June 30, 2016.

Tien Wah's full year (FY15) net profit more than doubled to RM33.8 million from RM13.5 million in the previous year while revenue was only up 3.87% at RM367.4 million from RM353.7 million in FY14.

In its filing to Bursa Malaysia, the management said that Tien Wah had completed its strategic restructuring of the production footprint within the group last year to service the customers and reduce operating cost, which incurred a total redundancy cost of RM6.7 million.

The group expects the outlook for 2016 to remain challenging with the current volatile global environment.

"Besides efficiency improvement, wastage control and active cost containments, the group continues to develop new opportunities which could lead to volume growth in new customers and geographical segments," the management said in a filing to Bursa.

As at closing today, Tien Wah shares rose 21 sen or 7.5% to RM3.01 for a market capitalisation of RM290.45 million. The stock saw 167,900 shares traded.

- The Edge Markets 22/2/2016

Posted by rikki > 2016-02-23 08:13 | Report Abuse

Tiong Nam's 3Q net profit more than doubles to RM22.08m

KUALA LUMPUR (Feb 22): Tiong Nam Logistics Holdings Bhd posted a net profit of RM22.08 million or 5.3 sen a share for the third quarter ended Dec 31, 2015 (3QFY16), 2.4 times or 136.7% higher compared to RM9.33 million or 2.22 sen a share a year ago, largely contributed by its logistics and warehouse services, as well as the property development segment.

In a filing with Bursa Malaysia today, Tiong Nam said that revenue for the period was 19.3% higher at RM173.89 million from RM145.7 million a year ago.

"Logistics and warehousing services revenue increased 11.8% to RM119.4 million compared to RM106.8 million in 3QFY15, mainly due to securing of new total logistics customers as well as business expansion from existing customers," the logistics player said in its filing.

Revenue for property development, meanwhile, increased by 40.8% to RM54.5 million for the quarter from RM38.7 million, as it secured new sales on completed projects, as well as smooth construction progress for ongoing projects.

For the nine-month period (9MFY16), net profit rose 15.3% to RM43.06 million or 10.34 sen a share from RM37.33 million or 8.87 sen a share a year ago, while revenue increased 4.6% to RM446.7 million from RM427.2 million in 9MFY15.

Moving forward, the group expects the global and regional economic climate in 2016 to be challenging to its core business segment.

"The group will continue seeking new business opportunities, focus on operational efficiency and cost control effectiveness to better contend with competition," Tiong Nam said.

It added that the property development segment is expected to contribute positively to the group for the remaining FY16.

Tiong Nam shares closed 1 sen or 0.81% higher at RM1.25 with 900,500 shares traded. It has a market capitalisation of RM521 million.

- The Edge Markets 22/2/2016

Posted by rikki > 2016-02-23 23:56 | Report Abuse

Fitch affirms Malaysia’s currency ratings with stable outlooks

KUALA LUMPUR: Fitch Ratings has affirmed Malaysia's long-term foreign- and local-currency issuer default ratings (IDRs) at 'A-' and 'A' respectively with Stable Outlooks. 

It said on Tuesday the issue ratings on Malaysia's senior unsecured local-currency bonds were also affirmed at 'A'. The country ceiling was affirmed at 'A' and the short-term foreign-currency IDR at 'F2'.

The international ratings agency said that Malaysia's IDRs reflected the following key rating drivers:

Firstly, the authorities have remained committed to their fiscal consolidation path, adopting a budget recalibration in January 2016 that cut 0.6% of GDP from spending to match a decline in oil revenues and other smaller revenue adjustments. 

“Fitch views the macroeconomic assumptions in the recalibrated budget as broadly realistic: the budgeted oil price is expected to average US$30 to US$35 per barrel in 2016 while Malaysian GDP growth is projected in a range of 4%-4.5%. 

“Fitch expects the ratio of federal government debt to GDP to rise modestly to 2017 but to remain below the authorities' 55% policy ceiling. Contingent liabilities in the form of explicit federal-government guarantees have stabilised at around 15% of GDP since 2013,” it said.

The agency also noted that the ringgit fell by 18.6% against the US dollar in 2015, or by 13.5% on a nominal trade-weighted basis, while foreign reserves dropped by 18%. 

The decline in global oil prices that began in August 2014 coincided with the onset of portfolio and debt-capital outflows from Malaysia that put pressure on the external finances, a situation that persisted for the first three quarters of 2015. 

“However, the currency and reserves have stabilised since September 2015, despite a further decline in oil prices. Malaysia's external liquidity has weakened but remains in line with 'A' range peers' medians for coverage of current external payments and the liquidity ratio. Fitch expects the current account to remain in modest surplus out to 2017,” it said.

Fitch acknowledged that the economy was slowing, but growth remained stronger than in 'A' peers. 

It expects real GDP growth of about 4% in 2016 and 2017, below the five-year average of 5%. 

Credit growth of 7.9% in 2015 was the weakest since 2009 partly owing to a tightening of financial conditions faced by the banks, to which the central bank responded with an easing of reserve requirements in January 2016. 

However, the decline in the ringgit has supported non-commodity exports, and the government and state-owned enterprises expect to continue with strategic investment projects.

Fitch also said Malaysia's banking system indicator of 'bbb' was in line with that of Poland (A-/Stable) or Israel (A/Stable), although weaker than those of the Czech Republic or Chile (both A+/Stable). 

The Malaysian private sector is relatively highly indebted. Bank credit to the private sector was the third highest among Fitch-rated emerging markets at end-2015, at 121% of GDP (behind only China and Thailand). 

Aggregate indebtedness across the Malaysian economy rose by 43 percentage points of GDP between end-2007 and June 2015 according to Bank of International Settlements data, more than in Thailand, Brazil or Turkey although much less than in China (+91pp). 

Malaysian household debt has grown fastest, by nearly 18pp against 17pp for the general government. 

High private-sector debt lessens the resilience of the Malaysian financial system and sovereign credit profile to macroeconomic volatility, such as a sharp rise in unemployment or interest rates, if it occurred.

Malaysia's levels of income (at market exchange rates) and development are weaker than 'A' range medians and closer to 'BBB' range norms. 

“Governance is also a weakness relative to other sovereigns in the 'A' rating range. 

“Malaysian politics and governance standards have come under the spotlight due to a range of domestic and international investigations into the state-owned investment company 1Malaysia Development Berhad (1MDB). 

“However, the political heat generated by these issues has not so far had a discernible impact on policy-making. For example, the government has pressed ahead with controversial structural fiscal reforms, including a goods and services tax and reduction in fuel subsidies,” it said. 

Fitch also said that sovereign funding flexibility benefits from Malaysia's deep local capital markets. The share of government debt denominated in ringgit is very high (over 95%). The Malaysian sovereign has no debt restructuring history.

“The stable outlooks reflect Fitch's assessment that upside and downside risks to the ratings are current broadly balanced.

Cont/n

Posted by rikki > 2016-02-23 23:58 | Report Abuse

Cont/n

However, the main factors that could, individually or collectively, lead to a negative rating action include a sustained deterioration in fiscal discipline and the public finances leading to a sharper rise in government debt ratios than Fitch currently expects.

Other factors are the further weakening of the balance of payments that strains domestic economic and/or financial stability and deterioration in political stability or governance that lead to a weakening of credibility of policy-making institutions,

The main factors that could, individually or collectively, lead to a positive rating action are sustained reductions in government debt ratios and also the narrowing of structural weaknesses relative to peers, including development indicators and governance

Fitch said the ratings assume the global economy evolves broadly in line with the projections in Fitch's latest Global Economic Outlook; that there is no sharp, disruptive slowdown in China; and that there is no global systemic crisis in emerging markets.

http://www.thestar.com.my/business/business-news/2016/02/23/fitch-affirms-malaysia-currency-ratings-with-stable-outlooks/

Posted by rikki > 2016-02-24 00:02 | Report Abuse

Unisem FY15 earnings surge on higher demand, forex

KUALA LUMPUR: Chip maker Unisem (M) Bhd’s earnings surged 127% to RM155.54mil in the financial year ended Dec 31, 2015, boosted by higher demand for its products and forex gains.

It said on Tuesday the higher FY15 revenue and earnings were mainly due to greater demand for the products and services and an appreciation in the US dollar against the ringgit and the yuan compared to a year ago.

“The improvement in net profit for the current quarter and financial year to date was due to increased revenue, better contribution from our wafer bumping and advanced package operations and lower interest expense,” it said.

Unisem said the earnings were a sharp improvement from the RM68.42mil a year ago, Revenue also increased 21.4% to RM1.260bil from RM1.038bil.

For the final quarter, the group recorded revenue of RM351.97mil, up 23.3% from RM285.37mil a year ago. Its earnings surged 185% to RM60.42mil from RM21.19mil.

Earnings per share were 8.23 sen compared with 3.14 sen. It rewarded shareholders with a final dividend of four sen a share, making it a total of 10 sen for FY15 compared with six sen in FY14.

“The improvement in net profit for the current quarter and financial year to date was due to increased revenue, better contribution from our wafer bumping and advanced package operations and lower interest expense,” it said.

- The Star Biz dd 23/2/2016

Posted by rikki > 2016-02-24 08:33 | Report Abuse

CIMB Research keeps Add on Tune Protect, ups target to RM2.29

KUALA LUMPUR (Feb 24): CIMB IB Research has maintained its “Add”rating on Tune Protect Group Bhd at RM1.19 with a higher target price of RM2.29 (from RM2.20) and said the company’s FY15 net profit was 13.5% above house forecast due to lower-than-expected tax rate.

In a note Feb 23, the research house said the results were in line with market consensus.

It said FY15 net profit dwindled by 4.2% to RM72.9 million.

“Global travel insurance’s premium and net profit rose by 22% and 15%, respectively, in FY15.

“Non-life insurance net profit advanced only 3.9% in FY15.

“Tune remains an Add given the positive growth prospects for travel insurance,” it said.

- The Edge Market dd 24/2/2016

Posted by rikki > 2016-02-24 08:43 | Report Abuse

Padini’s Q2 earnings double on better sales, lower expenses

PETALING JAYA: Padini Holdings Bhd’s net profit more than doubled to RM33.07 million for the second quarter ended Dec 31, 2015 versus RM16.21 million in the same period a year ago, on higher sales and slower expenses growth.

Revenue soared 38.6% from RM245.59 million to RM340.38 million. It has proposed to declare an interim dividend of 2.5 sen per share.

While a weaker ringgit has driven up merchandise costs, Padini said its selling prices have remained relatively unchanged as retail sentiment is still low. “While there is a real need at some future point to increase selling prices to cope with falling gross margins, the reality of the situation discourages that in the short term.

Thus we will continue with policies that will drive top-line growth while holding prices steady,” it reiterated. Padini said whenever opportunities arise, the distribution network must be expanded not just in size but also in geographical and market reach. “Falling gross margins can then be compensated by rising sales and the resultant larger absolute amount in gross profits would go a long way towards keeping bottomline healthy,” it noted.

The company expects to open another two Padini Concept Stores and three Brands Outlet stores within the financial year, on top of the total nine outlets that have opened within the first seven months of the financial year.

For the first half of the year, Padini’s net earnings surged 83.06% from RM35.45 million to RM64.9 million on the back of a 29.13% increase in revenue from RM472.34 million to RM609.95 million. -

http://www.thesundaily.my/news/1708659

Posted by rikki > 2016-02-24 09:18 | Report Abuse

Semicon equipment makers’ orders picking up

KUALA LUMPUR: North American manufacturers of semiconductor equipment reported an increase in orders in January with the book-to-bill ratio rising to 1.08 -- a significant increase since August and expectations are that the capital expenditure for 2016 would be similar to a year ago.

According to its statement posted on its website on Tuesday, the preliminary data for January was an improvement from the final December order of 1.0 and the highest since August’s 1.06.

“A book-to-bill of 1.08 means that US$108 worth of orders were received for every US$100 of product billed for the month,” it said.

The Semiconductor Equipment Manufacturers Industry (SEMI) said these manufacturers posted US$1.32bil in global orders in January 2016 (three-month average basis).

SEMI reported that the three-month average of worldwide bookings in January 2016 was US$1.32bil.

“The bookings figure is 1.4% lower than the final December 2015 level of $1.34bil, and is 0.1% lower than the January 2015 order level of US$1.33bil,” it said.

SEMI added the three-month average of worldwide billings in January 2016 was US$1.23bil.

It pointed out the billings figure was 8.8% lower than the final December 2015 level of US$1.35bil and it was 3.7% lower than the January 2015 billings level of US$1.28bil.

SEMI president and CEO Denny McGuirk said recent semiconductor order activity was on par with the figures reported one year ago.

“While uncertainty clouds the near-term economic outlook, we currently expect 2016 capex to remain in range of 2015 spending," he added.

http://www.thestar.com.my/business/business-news/2016/02/24/semicon-equipment-makers-orders-picking-up/

Posted by rikki > 2016-02-24 10:07 | Report Abuse

Investor sentiment towards Malaysia's fundamentals has improved as
reflected in the turnaround in portfolio investment, from a net outflow of RM24.4bn in 3Q15 to a net inflow of RM14.9bn in 4Q15.

In a research note, Affin Hwang Capital said this was the first positive quarterly increase since 2Q14 due to the net buying activity on bonds, in particular Malaysian Government Securities (MSG). It said direct investment also recorded a net inflow of RM5.7bn in 4Q15 after four consecutive quarters of net outflows also supporting the reserve position.

- Bernama

Posted by rikki > 2016-02-24 10:50 | Report Abuse

Saudi oil minister Naimi: Oil production cuts won't happen

Saudi oil minister Ali Ibrahim Naimi said Tuesday producers will hopefully meet in March to negotiate an output freeze, but production cuts will not happen.

Last week, Saudi Arabia, Russia, Qatar and Venezuela proposed a freeze that would cap production at January levels. Russian Energy Minister Alexander Novak said Saturday the deal, which is contingent on other producers participating, should be finalized by March 1, Reuters reported.

"Freeze is the beginning of a process, and that means if we can get all the major producers to agree not to add additional balance, then this high inventory we have now will probably decline in due time. It's going to take time," Naimi said.

"It is not like cutting production. That is not going to happen because not many countries are going to deliver even if they say they will cut production — they will not deliver. So there is no sense in wasting our time seeking production cuts," he added.

There is now less trust than normal among the world's oil exporters, he said.

http://www.cnbc.com/2016/02/23/al-naimi-we-in-oil-industry-have-more-that-unites-than-divides-us.html

Posted by rikki > 2016-02-24 21:28 | Report Abuse

Aspen Group plans RM500m RTO with Yi-Lai

KUALA LUMPUR (Feb 24): Penang-based property development and real estate investment group Aspen Group is planning a reverse takeover of ceramic and homogeneous tiles maker Yi-Lai Bhd, which will see the latter branching out into property development.

According to a bourse filing today, Yi-Lai said it has entered into a heads of agreement (HoA) with Aspen Vision Group Sdn Bhd and Setia Batu Kawan Sdn Bhd (Setia Batu Kawan), to acquire Aspen Vision All Sdn Bhd for RM550 million.

Under the HoA, to be effective for 90 days from today, the parties involved have agreed to enter into definitive agreement for the sale and purchase of Aspen Vision All, with the purchase consideration still subject to the revalued net asset value (NAV) of Aspen Vision All, and other factors.

According to Yi-Lai, the purchase consideration shall be settled via the issuance of 450 million new Yi-Lai shares at an issue price of RM1, while the remaining RM100 million will be paid in cash, which shall be funded through internally-generated funds and/or bank borrowings.

“The issue price of RM1 represents a premium of 22.3% over the 5-day volume-weighted average market price of Yi Lai shares, including Feb 23," it added.

Aspen Vision All is principally involved in the provision of management services and investment holding, while its subsidiaries are principally involved in property development. It was formed two years ago to undertake the Aspen Vision City and Vervéa development at Batu Kawan, Penang.

Yi-Lai said the proposed acquisition is expected to enable the existing shareholders of Yi-Lai to participate in a new, viable and profitable core business in property development via Aspen Vision.

"The diversification of the core business of Yi-Lai into property development will be a synergistic down-stream fit for Yi-Lai’s existing tile manufacturing business," it said.

The proposed acquisition will result in a significant change in business direction or policy of Yi-Lai and will also result in a reverse take-over of Yi-Lai, it added.

Shares in Yi-Lai closed up 1.5 sen or 1.78% today, at its one-month high of 86 sen, for a market capitalisation of RM129.6 million.

- The Edge Market dd 24/2/2016

Posted by rikki > 2016-02-24 21:46 | Report Abuse

Karex proposes 1-for-2 bonus share issuance

KUALA LUMPUR (Feb 24): Karex Bhd, which today reported a 55.7% jump in its net profit for its second quarter ended Dec 31, 2015, plans to issue one bonus share for every two existing Karex shares held at an entitlement date to be fixed and announced later, to reward shareholders.

In total, the world’s largest condom maker could be issuing 334.13 million new bonus shares. Currently, Karex’ share base comprises 668.25 million shares.

At a par value of 25 sen per share, Karex could spend up to RM83.53 million from its share premium to fund the bonus issuance, which will trim its share premium to RM31.39 million, following the exercise.

In a statement, Karex chief executive officer Goh Miah Kiat said the bonus share issuance will allow existing shareholders to maintain their equity stake in the group. The bigger share base may also eventually allow Karex’s shares to be priced more affordably and in turn raise its marketability and tradeability on the open market.

“We are very thankful to have very supportive shareholders and we would like to take this opportunity to thank them for their unwavering support through our bonus issue exercise.”

Goh said the group intends to complete the bonus share issuance by the second quarter of this year.

- The Edge Market dd 24/2/2016

Posted by rikki > 2016-02-27 13:40 | Report Abuse

Eye on stock: SHH Resources Holdings

AFTER peaking out temporarily at a high of RM2.48 on Nov 12, last year, the best level since Feb, 1998, SHH Resources Holdings Bhd (SHH, 7412) made two efforts to push to an upper ground, but each round was met with an apparent profit-taking activity.

Subsequently, this stock slipped into mild correction mode, which witnessed the shares retracing to a near four-month low of RM1.76 on Feb 12.

Thereafter, in the wake of fresh bargain hunting interest, prices staged a rebound, sending this counter to a high of RM2.12 during intra-day session yesterday.

Very evidently, SHH is making another move to resume the rally after a three-month consolidation period and it has a bright prospect of making it this time, with trading volumes growing and in favour of the bulls.

A breach of the immediate hurdle of RM2.15, followed by a decisive penetration of the RM2.30 will further raise investors’ optimism. The next upper strong barrier is expected at the RM2.48-RM2.50 range, of which a successful major breakout will signal the continuation of an uptrend.

If that happens, the near-term target to look for would be the RM2.80-RM2.82 band or the RM3 psychological level, which is also a heavy barrier.

Elsewhere, the oscillator per cent K and the oscillator per cent D of the daily slow-stochastic momentum index were curving up after triggering a short-term buy near the mid-range yesterday.

Also on the rise, the 14-day relative strength firmed from a reading of 45 in mid-week to settle at the 65-point level.

In addition, the daily moving average convergence/divergence histogram and the daily signal line advanced steadily towards the zero threshold. A buy call was issued the previous week.

Indicators are pretty promising, implying SHH shares are set to scale in the immediate term, with a potential of extending the previous leg of upward thrust.

As for the downside, current support is envisaged at the RM1.95 level. The lower floor is lying at RM1.76 and the 200-day simple moving average of RM1.67 will act as an important floor. —

The comments above do not represent a recommendation to buy or sell.

http://www.thestar.com.my/business/business-news/2016/02/27/eye-on-stock-shh-resources-holdings/

Posted by rikki > 2016-02-27 13:51 | Report Abuse

Cautionary tale of research reports

THE US$100,000 fine slapped on a former Deutsche Bank analyst for issuing a positive research report on a company when he actually had negative views on it is a stark reminder of why financial opinions should be taken with a pinch of salt.

It is also a firm reminder to retail investors, in particular, that financial opinions conveyed in research reports sometimes do not reflect the true belief of the analysts.

The more seasoned investors would know how to differentiate between the good ones and the rest. However, retailers are often caught in the game where everything is driven by commissions.

Last week, the Securities and Exchange Commission found that Charles Grom had published a glowing report on a discount retailer in March 2012.

However, in private communications with Deutsche’s research and sales staff, Grom indicated that he had maintained a positive recommendation on the company to maintain good relations with the management of the firm.

This runs in stark contrast to what is required of research analysts when they prepare their reports for investors. Research analysts are required to actually state what they truly believe about the stock.

In a nutshell, they cannot express an opinion or recommendation in public that runs contrary to what they state in private.

In Malaysia, of late, there have been some research reports that are conspicuously “lacking” in terms of material for proper analysis that it makes one wonder if the analysts who had crafted the reports really believe in the financial opinion stated.

The projections and assumptions used in arriving at earnings are long term in nature which makes it hard to justify a research report on the company in the first place. It could have been done when the assumptions had a higher degree of materialising.

The reports are particularly on small-cap stocks that do not have a track record.

For instance, a leading bank-backed research unit recently devoted 20 pages to a small-cap construction company.

The assumptions used in arriving at the profit projections were simply outrageous, to put it mildly.

And the basis of arriving at the profit numbers of the construction company was largely due to its connection with external parties that may pave the way for it to land some large construction jobs.

There was little devoted to the fundamentals of the company itself, its track record in carrying out large jobs and what happens if the “connections” do not pay off.

The research report on the construction firm is not the only one that glaringly lacked substance.

There are a few others and all involved small-cap stocks. There was a lengthy report on a pharmaceutical company whose valuations had already gone ballistic and another on an oil and gas (O&G) company where a “buy” call was maintained simply because it was able to recover some cost from its drilling operations.

The report did not delve into the risk of the earnings of the O&G firm coming down significantly, considering that jobs in the sector were scarce and margins were narrow.

A retired analyst, who is a successful fund manager, said that the structure of the equity research in the capital markets requires analysts to continuously come out with stock ideas and make definite calls.

The sales people and fund managers generally don’t like to hear a “hold” call. They expect a “buy” or “sell” recommendation because then they can proceed to advise their clients to trade with the stocks.

It brings them and the brokerage commissions. Most of the time, an analyst may have spotted a company that had potential, but the analyst needs time to come up with a credible research report that he himself is convinced of, which he or she may not have.

Due to time constraints and pressure from the bosses, the analyst has to come out with a report. And most of the time, because the company that the research is based on is a client of the brokerage, the analyst has to come up with a bullish report.

Essentially, the research analyst has two parties to answer to – one is the brokerage firm and the other is the company that the research is based on. The brokerage pays the analyst, while the company pays the brokerage.

There is nothing wrong in promoting stocks that have potential. However, not many investors are able to read between the lines and analyse a research report well.

Which is why all research reports are supposed to have limited circulation. But in today’s world, there is nothing limited in circulation.

Good analysts go on to become better fund managers because they employ the same set of skills.

Out of the many fund managers, very few can actually claim to be good equity analysts who consistently dish out credible research reports.

The reason is because their financial opinion conveyed in research reports does not always reflect their true beliefs. They are most of the time forced to comply with the nature of the business.

- The Star Biz 27/2/2016

Posted by rikki > 2016-02-27 13:55 | Report Abuse

AirAsia Q4 earnings at RM554m, drives FY15 higher

KUALA LUMPUR: AirAsia Bhd posted net profit of RM554.20mil in the fourth quarter ended Dec 31, 2015 compared with a net loss of RM428.51mil a year ago, boosting the full year FY15 earnings to RM540.96mil.

The low-cost carrier reported on Friday that quarterly revenue rose 47% to RM2.17bil fromRM1.48bil a year ago. 

“The strong revenue recorded was on the back of a 10% year-on-year growth in the number of passengers carried at 6.47 million which was ahead of the 1% capacity growth, allowing the company to record a high load factor of 85%, on-year growth of 7 percentage points (ppts).  

In 4Q15, AirAsia recorded strong operating profit of RM800.69 million (up 276% YoY) and net operating profit of RM694.33 million (up 620% YoY). 

AirAsia said revenue per available seat kilometre (RASK) was up 40% on-year to 22.29 sen. It pointed out RASK held up positively despite the company’s decision to remove fuel surcharge on Jan 26, 2015.

“Average fare similarly witnessed an increase to RM177 (up 4% on-year) on the back of strong and healthy demand. If excluding fuel surcharge, RASK for 4Q15 would have been up further at 59% on-year while average fare would have been up by around 26% on-year. 

Profit before tax was RM434.51mil compared with loss before tax of RM391.98mil a year ago. 

Elaborating on the Q4 FY15 profit after tax , it said there was a 229% increase to RM554.20mil, also boosted by deferred taxation of RM124.65mil. This was in contrast with the net loss of RM428.51mil a year ago.

“The growth in 4Q15 net profits is mainly attributable to the revenue growth during the quarter of 47% and a 21% reduction in the average fuel price from US$95 per barrel in 4Q14 to US$75 per barrel in 4Q15,” it said.

For FY15, its earnings of RM540.96mil was a sharp 553% increase from the RM82.84mil in FY14. Revenue increased 15% to RM6.30bil from RM5.41bil, supported by a 10% growth in passenger volume despite the lower average fare of RM157 in 2015
Ancillary income per passenger increased by 2% to RM47 on-year. The seat load factor was at 81% which was 2 percentage points higher than a year ago.

“Despite the improvements in revenue and operating profits for the year, profits before tax of the Group was negatively impacted from the recognition of current and prior year losses of Indonesia AirAsia of RM797.7mil in 2015,” it said.

AirAsia Berhad CEO, Aireen Omar said, “It was a very good quarter indeed for the Malaysian operations. The increase in RASK (including and excluding fuel surcharge) proved that lower fares stimulate the market as seen by the significant increase in the number of passengers that travelled with AirAsia who also received a windfall due to the removal of fuel surcharge”. 

Ancillary revenue rose 14% on-year with the highest contributor coming from baggage (43% of total ancillary revenue) followed by cargo (10% of total ancillary revenue) and insurance (7% of total ancillary revenue). 

The highest growth seen among the ancillary products were AirAsia Insure (up 43% on-year) and connecting fees for our “Flythru” service (up 56% on-year). These led to the Company recording an ancillary income per pax of RM49 this quarter (up 4%), “close to our near term target of RM50”.  

AirAsia’s cost, measured in terms of cost per available seat kilometre (CASK) rose 4% on-year to 14.06 sen. 

The slight increase in CASK was due to an additional 16 sale and leaseback aircraft undertaken throughout 2015 which led to an increase in aircraft operating lease expenses of 148% on-year. 

Maintenance and overhaul expenses increased by 53% on-year.  The decline in overall fuel expense by 15% on-year was on the back of 21% lower average fuel price at US$75 per barrel as compared to US$95 during the same period last year. This is despite the 7% increase in fuel consumption due to the increased number of flights and longer average stage length.  

AirAsia Group CEO Tan Sri Tony Fernandes said: “In Malaysia, we are benefiting from the weaker currency environment that has led to local consumers trading down when going on their travel and other nationalities looking at Malaysia as a value for money holiday destination. Regional destinations are also more appealing as compared to higher currency destinations such as Europe and North America”. 

On the outlook of cost environment, he said, “As seen in 4Q15, we are beneficiary of the low fuel price. As of now, the group has hedged 52% of its fuel requirement for 2016 at an average cost of USD59 per barrel on jet kerosene. Passing on this benefit to our passengers through the removal of fuel surcharge earlier last year proved to be rewarding with demand increasing double digit in 4Q15.”  

http://www.thestar.com.my/business/business-news/2016/02/26/airasia-q4-earnings-at-rm554m-drives-fy15-higher/

Posted by rikki > 2016-03-01 11:58 | Report Abuse

China Feb factory activity shrinks more than expected

SHANGHAI: Activity in China's manufacturing sector shrank for the seventh month in a row in February and more sharply than expected, an official survey showed, suggesting the government will have to ramp up stimulus to avoid a deeper economic slowdown.

Some investors had been bracing for a negative after the central bank unexpectedly eased policy late on Monday, injecting an estimated $100 billion worth of cash into the banking system to cushion the pain of upcoming reforms such as restructuring bloated state enterprises.

The official Purchasing Managers' Index (PMI) fell to 49.0 in February from January's reading of 49.4 and below the 50-point mark that separates growth from contraction on a monthly basis.

http://www.thestar.com.my/business/business-news/2016/03/01/china-feb-factory-activity-shrinks-more-than-expected/

Posted by rikki > 2016-03-01 17:10 | Report Abuse

Has the tide turned for emerging market flows?

One of the most bruised asset classes in financial markets may be about to turn a corner.

Emerging markets have had a horrid few years as investors pulled funds amid the prospect of weaker growth in once-booming economies, volatility in China's markets and likely higher interest rates in the U.S. In 2015, capital outflows from emerging markets were the heftiest since the late 1980s.

Now, there are tentative signs of recovery.

Fund flows into emerging markets turned flat in February after seven straight months of outflows, according to data from the Institute of International Finance released on Monday.

http://www.cnbc.com/2016/03/01/has-the-tide-turned-for-emerging-market-flows.html

Posted by rikki > 2016-03-02 11:10 | Report Abuse

Moody's lowers outlook on China's credit rating to negative from stable

Moody's Investors Service Wednesday lowered the outlook on China's credit rating from stable to negative, citing a weakening of fiscal metrics and a continuing fall in foreign exchange reserves.

The rating agency also noted uncertainty over the capacity of authorities to implement the reforms needed to address imbalances in the world's second-largest economy.

Moody's current Aa3 rating on China is seven notches above junk so even if the agency were to follow up on its warning and lower the rating, investors won't have to suddenly start selling the country's bonds.

Still, the warning underscores how the build-up in credit in the country's stuttering economy is making market observers nervous.

Rival Standard & Poor's assesses China's creditworthiness at similar levels to Moody's, while Fitch rates China a notch lower. S&P and Fitch both have stable outlooks on the country.

http://www.cnbc.com/2016/03/01/moodys-lowers-outlook-on-chinas-credit-rating-to-negative-from-stable.html

Posted by rikki > 2016-03-02 22:33 | Report Abuse

CIMB Research revises KLCI year-end target to 1,800 points

KUALA LUMPUR : CIMB Research revised downwards its KLCI year-end target to 1,800 points from 1,900 points previously following a mixed bag of results during the latest corporate earnings season for the fourth quarter of last year (Q4FY15). 

In a note today, the research house said that 40% of the companies under its coverage reported results which were below expectations. 

“Plantation and aviation sectors positively surprised while the rest disappointed. However, 4QFY15 earnings per share (EPS) rose 9.7% on a quarter-on-quarter basis due to the strong earnings recovery in the two sectors,” it said. 

On the other hand, CIMB is lowering its 2016 EPS growth forecast to 5.7% from 7.5% previously.
 
“However, our 8.4% EPS growth forecast for 2017 is higher than consensus. While the revision for 2016 reflects our more conservative market recovery expectations, we believe the earnings growth momentum should continue into 2017. 

While its previous KLCI year-end target of 1,900 points was based on a 5% premium to the three-year moving average earnings multiple of 15.5 times, the research house added that it is removing this due to the uninspiring growth outlook this year. 

CIMB Research recommends the banking, construction and select small cap stocks as its preferred picks going forward.

http://www.thestar.com.my/business/business-news/2016/03/02/cimb-revises-klci-target-to-1800/m

Posted by rikki > 2016-03-04 13:13 | Report Abuse

Malaysia’s January exports down 2.8% to nearly RM62b

KUALA LUMPUR: Malaysia’s January 2016 exports fell 2.8% to RM61.9bil from a year ago, which was a disappointment when compared with a survey of a 2.5% increase.

The Statistics Department said on Friday on a month-on-month basis, exports also fell RM6.4bil (-9.4%) from RM68.3bil.

“In seasonally adjusted terms, exports decreased 7.4%,” it said.

The department said the decrease in exports was due to the decline in exports to Japan (-RM1.9bil), South Korea (-RM752.0mil), Taiwan (-RM512.6mil), Australia (-RM454.3mil) and Hong Kong (-RM346.8mil).

The decline in exports were due to liquefied natural gas (LNG) and crude petroleum though there was an increase in electrical and electronic (E&E) products and palm oil and palm-based products.

It said total January imports rose 3.3% to RM56.5bil from a year ago, below the survey of a 4.9% increase. The increase in imports was attributed to intermediate goods and consumption goods.

However on a month-on-month basis, imports fell RM3.6bil (-6.0%) from RM60.1bill. In seasonally adjusted terms, imports decreased 3.2%.

Malaysia recorded a trade surplus of RM5.4bil in January, down 39.8% from RM9bil a year ago.

“When compared with the previous month, it (surplus) also posted a decrease of RM2.9bil or 34.6%,” said the department.

http://www.thestar.com.my/business/business-news/2016/03/04/malaysia-january-exports-down-to-nearly-rm62b/

Posted by rikki > 2016-03-04 13:17 | Report Abuse

Foreign funds step up buying on Bursa for second day

KUALA LUMPUR: Foreign funds continued their buying on Bursa Malaysia for the second day on Thursday with net buying rising to RM391.6mil.

According to BIMB Equities Research data, this saw the net buying rising to RM741.6mil over the past two days. They were net buyers at RM350mil on Wednesday.

However, local institutions and retail investors continued to take profit. Local institutions were net sellers at -RM341.9mil and retail -RM49.7mil.

http://www.thestar.com.my/business/business-news/2016/03/04/foreign-funds-step-up-buying-on-bursa-for-second-day/

Posted by rikki > 2016-03-05 09:43 | Report Abuse

US payrolls surge, bolster Fed rate hike prospects

WASHINGTON: U.S. employment gains surged in February, the clearest sign yet of labor market strength that could further ease fears the economy was heading into recession and allow the Federal Reserve to gradually raise interest rates this year.

Nonfarm payrolls increased by 242,000 jobs last month and 30,000 more jobs were added in December and January than previously reported, the Labor Department said on Friday. The unemployment rate held at an eight-year low of 4.9 percent even as more people piled into the labor market.

"Despite panic on Wall Street about impending recession, Main Street goes about its business as usual. This report will get the Fed's attention, and raises the odds of another rate hike before too long," said Scott Anderson, chief economist at Bank of the West in San Francisco.

http://www.thestar.com.my/business/business-news/2016/03/05/us-payrolls-surge-bolster-fed-rate-hike-prospects/

Posted by rikki > 2016-03-05 09:47 | Report Abuse

Eye on stock: AirAsia X

LONG-HAUL budget carrier AirAsia X Bhd (AAX, 5238) had a bad outing about three years ago.

Shortly after debuting on the Main Market under trading/services sector on July 10, 2013, making a sen premium against an initial public offer price of RM1.25, its shares were on the slide amid lack of support from investors.

One year into the downtrend, prices showed signs of stabilising, but the wake of a fresh bout of liquidation pressure emerged unexpectedly later to knock them lower, resulting AAX to tumble to an all-time low of 15 sen on Aug 25, last year.

Thereafter, prices staged a moderate rebound to trade mostly range-bound on consolidation and the pattern continued until earlier this week, which saw them powering ahead on aggressive bargain hunting momentum. The counter hit a high of 30 sen during intra-day trading yesterday, the best level since May, last year. Investors should take note that AAX had completed a round of rights issue with warrants not long ago.

Based on the daily chart, it looks like the worst of AAX has ended, with prices carving out a tentative new leg of upward thrust following the recent spike in the shares. The sighting of multiple “golden crossings” on several simple moving averages lines added to our optimism.

Initial resistance is envisaged at the 35-sen mark and a decisive breach of the next upper hurdle of 42 sen will probably set the stage for the bulls to challenge the greater resistance barrier, resting at the 49 sen-50 sen band.

Technically, the daily slow-stochastic momentum index and the 14-day relative strength index are painting a growing overbought condition but the daily moving average convergence/divergence histogram continues to expand upward against the daily trigger line to keep the bullish note.

Analysis suggests there is still room for AAX to advance before extreme overbought condition kicks in. But should the bulls decided to pause for air, investors can consider accumulating more on weakness. The immediate support is envisaged at the 25 sen-25.5-sen range and crucial support is pegged at the 20-sen mark. — K.M. Lee

The comments above do not represent a recommendation to buy or sell.

http://www.thestar.com.my/business/business-news/2016/03/05/eye-on-stock-airasia-x/

Posted by rikki > 2016-03-07 08:16 | Report Abuse

Bison: Bulk of IPO proceeds for expansion

PETALING JAYA: Convenience store operator Bison Consolidated Bhd, which is en route to the Main Market of Bursa Malaysia on March 29, aims to raise RM88.68 million from its initial public offering (IPO).

“We have plans to invest about RM50 million of our IPO proceeds to expand our network of outlets and enhance our existing outlets in order to meet the growing demands from our customers,” managing director Dang Tai Luk said at the launch of its IPO prospectus last Friday.

Of the RM50 million, RM35.55 million will be used for outlet expansion while RM14.45 million will be invested in business functions and back-end operations, to improve and establish nationwide logistics and IT capabilities in order to support its network and product base.

The rest of the IPO proceeds will be used for working capital and listing expenses.

“Our target is to open another 115 outlets from now until Oct 31, 2017. In addition to that, we will be improving our back-end operations and business functions such as an additional regional distribution centre within Malaysia and we will also set up our own food preparation and packaging facility,” he said.

Bison is involved in the business of press and convenience retailing in Malaysia under their main trade name myNEWS.com. It has a total of 255 outlets comprising 223 myNEWS.com outlets and 24 outlets under the trade names of Newsplus, MagBit and The Front Page. It also operates eight outlets under the trade name “WHSmith” located at Malaysian international airports, under a joint venture with WH Smith Travel Ltd.

Based on the Independent Market Research Report by Smith Zander International Sdn Bhd dated Feb 22, 2016, Bison is the second largest retail convenience store player in Malaysia with a market share of 8.6% in terms of outlet numbers and 6.6% in terms of revenue last year.

Bison’s IPO of 80.62 million ordinary shares of 20 sen each comprises institutional offering of 62.31 million shares and retail offering of 18.30 million shares. The retail price of the IPO shares is RM1.10 each.

The retail and institutional offerings close on March 14 and 15 respectively.

http://www.thesundaily.my/news/1719952

Posted by rikki > 2016-03-08 09:09 | Report Abuse

SAM Engineering’s RM100mil expansion, including new plant

GEORGE TOWN: SAM Engineering & Equipment (M) Bhd, an aircraft component maker, is spending RM100mil over the next two years for expansion, with the bulk of the investment going into a new plant in Penang.

Group chief executive officer Jeffery Goh Wee Keng said the company’s existing facilities were already running at full capacity and the expansion would cater for new orders.

He said RM70mil had been allocated for a new plant on a four-acre site in Bukit Minyak to produce nacelle beams for the new Airbus A320neo aircraft.

“The other RM30mil would be to equip an existing facility on the island to produce smaller aerospace components,” Goh said.

The company has seven plants on the island, of which three are aerospace facilities. Goh said the company has RM3.5bil of orders in hand to fulfil beyond 2020, compared to RM2bil in 2014.

“This is why we need to expand,” Goh added.

According to Goh, the group would be recruiting 100 engineers and technicians for the two plants, which are scheduled to start operations by the end of 2017.

For the 2016 fiscal year closing March 31, Goh expects the aerospace business to generate 70% of group revenue, while the equipment manufacturing segment for the data storage and semiconductor industries would generate the remaining 30%.

“Moving ahead, we expect the aerospace sector to contribute to 80% of group revenue, as the business prospects for the data storage and semiconductor industries look gloomy,” he said.

Goh said the 2016 fiscal year should close with good results, compared with the 2015 fiscal year.

“The nine months of the 2016 fiscal year ended Dec 31 have already produced results which are better than the full-year results of 2015,” he said.

For the nine months ended Dec 31, SAM Engineering posted RM45mil in net profit on the back of an RM458mil turnover, compared with the RM19mil and RM319mil achieved in the previous period.

http://www.thestar.com.my/business/business-news/2016/03/08/sam-engineerings-rm100mil-expansion/

Posted by rikki > 2016-03-08 18:42 | Report Abuse

German industrial output rises at fastest pace in 6 years in Jan

BERLIN (March 8): German industrial output rose in January at its fastest pace in more than six years, showing that the engine room of Europe's largest economy began 2016 well despite the financial market turmoil that has hurt business sentiment.

Output rose by 3.3% on the month, data from the Economy Ministry showed on Tuesday, surpassing the mid-range forecast in a Reuters poll for a 0.5% gain. The rise was the biggest since September 2009.

Relatively mild winter weather allowed construction output to rise by 7% on the month. Capital goods were another bright spot, rising 5.3%. However, analysts said the economy faced challenges.

"Order books are still not filled and the production boom coincides with inventory reductions," said ING economist Carsten Brzeski.

"Moreover, the drop in confidence indicators and production expectation over the last months suggest that things could still first get worse before they really get better for German industry," he added.

Industrial orders fell in January, but a spike in orders from euro zone countries cushioned a drop in demand from domestic customers, data showed on Monday.

Companies have also been unnerved by turmoil on global financial markets earlier this year and a slowdown in key export markets, including China.

Sentiment among German manufacturers plunged in February by the largest margin since the bankruptcy of Lehman Brothers in 2008, deepening concerns about the health of the economy.

- The Edge Markets dated 8/3/2016

Posted by rikki > 2016-03-09 08:25 | Report Abuse

Moody's: No Indication of global recession

KUALA LUMPUR: The protracted decline in oil prices and weaker growth in China have prompted a reappraisal of global economic growth prospects, causing risk aversion to rise and financial market conditions to tighten, says Moody’s Investors Service.

In a statement yesterday, the rating agency said while the current environment would curb growth in specific regions, it did not presage a global recession.

Moody’s said it had taken negative rating actions for a large number of corporates, banks and sovereigns whose revenues, loan portfolio performance and tax receipts were heavily dependent on the production of oil and other commodities.

“Our rating actions have been focused on those issuers directly exposed to the prices of oil and commodities because at present we believe that the positive impact of lower commodity prices on global growth helps mitigate the negative effects from the financial markets turbulence,” it said.

However, market volatility has recently spread beyond the energy and commodity sectors, leading to a broad decline in global equity prices and a surge in high-yield corporate bond spreads, it said.

“As a result, financial market conditions have worsened significantly – a development the rating agency is closely monitoring,” Moody's said. The rating agency still expected growth in Group of 20 advanced countries to be broadly stable at 1.8% for 2016 and 2% for 2017.

Moody’s said the positive effects of lower commodity prices, to a large extent, would mitigate negative factors, such as weaker consumer and business confidence levels caused by increased financial market volatility and deteriorating trade linkages with emerging markets.

– Bernama

Posted by rikki > 2016-03-10 15:31 | Report Abuse

Zecon-Kimlun JV gets RM1.46b Pan Borneo Highway

KUALA LUMPUR: The Zecon Bhd-Kimlun Sdn Bhd JV has secured a RM1.46bil contract to build and upgrade the Pan Borneo Highway in Sarawak.

Construction company Zecon said on Thursday the JV received the letter of award for the project under phase one, from the Serian roundabout to Pantu junction.

The contract is for 48 months, it said. Zecon holds a 70% stake in the JV and Kimlun the remaining 30%.

“A joint venture company will be incorporated in due course to undertake the contract as part of the condition imposed in the tender for the contract,” it said.

Meanwhile, Kimlun said the project was awarded by Lebuhraya Borneo Utara Sdn Bhd.

The estimated completion date is March 2020.

http://www.thestar.com.my/business/business-news/2016/03/10/zecon-kimlun-jv-gets-pan-borneo-highway/

Posted by rikki > 2016-03-10 15:37 | Report Abuse

Palm oil breaks trend, heads towards RM3,000 per tonne

KUALA LUMPUR: After more than two years of falling prices, the outlook for the crude palm oil (CPO) market has improved, with a breakout in prices from the RM2,500-per-tonne level on the back of harsh weather conditions that have resulted in lower output from major plantations in Malaysia and Indonesia.

Experts predict with a greater degree of certainty that CPO is likely to hit RM3,000 per tonne, a level last traded in September 2012.

A firmer indication on the uptrend will be known when the palm oil inventory is announced today. The Malaysian Palm Oil Board is expected to release Malaysian palm oil data for the month of February 2016.

According to industry sources, inventory levels are heading towards 1.6 million tonnes as at the end of this month on the back of a 20% reduction in production across the board.

In January, palm oil inventories fell 12% to 2.31 million tonnes. The production of 1.13 million tonnes during the month came in as one of the lowest productions for January since 2011.

Meanwhile, the CPO futures have staged a technical breakout, opening the window for prices to move up.

http://www.thestar.com.my/business/business-news/2016/03/10/palm-oil-breaks-trend-heads-towards-rm3000-per-tonne/