RHBInvest Research

Top Story:

• Over 2011, we expect to see more innovation (in terms of technology, communications and multimedia, energy and engineering).
• We anticipate the healthcare sector to regain attention as superbugs re-emerge, and weather disruptions and macroeconomic concerns bring commodity prices to new highs.
• As for corporate Malaysia , we believe the (potentially lack of) execution of Government initiatives will drive sentiment as compared to the positive anticipation built up during 2010.
• News flow will thus remain the primary catalyst in the near term, but reversal of short-term capital will cause volatility.
• Our top picks thus reflect a mixture of both value and growth plays within their respective industries and markets.

Sector Call

Telecom:

• As a defensive play, telco stocks are the best bet to ride out any unpleasant volatility that may arise amid a record-breaking FBM KLCI and global economic uncertainties.
• We believe competition should remain rational in 2011, as a price war, particularly in the broadband segment will not really benefit anyone except YTL Communications (YTL Comms).
• Top pick is A
  
• for strong regional growth prospects and cheaper valuations against domestic peers.
• For capital management, we like TM and thus upgrade the stock from market perform to Trading Buy, for the high likelihood of significant special dividends, which may result in total dividend yield of 20.9% in 2011.

Corporate Highlights

TM:

• Caught in a storm.
• The media reported yesterday that TM is probing an international bribery scandal which led to a US$85m (RM263m) contract for Alcatel Lucent (Alcatel).
• In the short-term, we expect sentiment on the stock to be hurt by the news but we still like TM for potential active capital management.
• Upgrade TM to Trading Buy and view any dips as opportunity to accumulate the stock, for the high likelihood of significant special dividends, which may result in total dividend yield of 20.9% in 2011.
• Our fair value of RM3.55 is maintained.
  

VS Industry:

• 1QFY07/11 net profit was in line with expectations, accounting for 26.2% of our full-year estimate.
• The company is considering a quarterly dividend policy going forward.
• Fair value has been raised to RM2.30/share based on unchanged 7.5x CY11.
• Due to limited upside to the share price, we downgrade the stock to Market Perform (from outperform).

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RHBInvest Research

Timber

• Logs and plantation to drive earnings in 2011, plywood to remain stable.
• Maintain Overweight call on the sector
• Timber companies which have significant oil palm plantation are also set to benefit from rising CPO prices
• Top picks are Jaya Tiasa (OP, FV = RM5.78) and Ta Ann (OP, FV = RM5.92).

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Maybank IB Views

Wah Seong: Disposal of shares in Drilbits and Driltools. Wah Seong disposed its 60% equity stakes in Drilbits International Private Limited (DrilBits) and Driltools International FZCO (Driltools) for USD2.7m (RM8.4m) and USD4.8m (RM14.9m) cash respectively. This Proposed Disposals of DrilBits and DrilTools are part of the WSC Group's strategy to streamline and rationalise its core businesses and to divest non-core business. DrilBits is principally involved in manufacturing and trading of oilfield tools and equipment while Driltools is in marketing and provision of oilfield and water well supplies and services related to the oil and gas industry. (Source: Bursa Malaysia)

CIMB: Completes restructuring of Thai unit’s NPL. CIMB Group Holdings Bhd. has completed the restructuring of non-performing loans (NPLs) under the 93.15%-owned subsidiary CIMB Thai Bank plc. The restructuring involved the transfer of CIMB Thai's 2.5m shares held in Sathorn Asset Management Co Ltd for RM23.5m to a wholly-owned subsidiary of CIMB Group, Mutiara Makmur Ventures Sdn. Bhd. as well as the transfer of NPL portfolio of RM297.9m from CIMB Thai to Sathorn for RM297.9m cash. (Source: Bursa Malaysia)

Hartalega: Allegations cost company millions. Hartalega Holdings Bhd, said allegations against the company had caused damages running into "millions of ringgit". The allegations that were related to environmental concerns over its operations in Bestari Jaya, Ijok had come despite its total compliance with all regulations. (Source: The Edge Financial Daily)

PLUS: Jelas Ulung not planning to seek extension for concession. Jelas Ulung Sdn Bhd is not planning on asking the Government for an extension of PLUS Expressways Bhd's tolled-highway concessions post-2038 in its proposal to take over the company. Jelas Ulung believed that its business model works well within the concession period until 2038, as it would have realized its investment by then. (Source: The Star)

Sime Darby: To build bioethanol demo plant in S'gor. Sime Darby Plantation Sdn Bhd will construct and operate a bioethanol demonstration plant in collaboration with Mitsui Engineering Shipbuilding Co Ltd. The plant that would be built at Bestari Jaya, Selangor, will be able to convert oil palm empty fruit bunches (EFB) into bioethanol. (Source: The Edge Financial Daily)

MSC: Secondary listing approved. Shareholders of Malaysia Smelting Corp Bhd (MSC) has approved the secondary listing of the company on the main board of the Singapore Exchange Securities Trading Ltd (SGX-ST). MSC plans to list on the Singapore stock exchange by end of January 2011. (Source: The Edge Financial Daily)

Construction: Benalec targets regional growth. Integrated marine construction firm Benalec Holdings Bhd, en route to list on the local bourse on Jan 17 next year, is gearing up for regional expansion while looking to increase its strength in Malaysia. Benalec will focus on larger-scale marine construction projects and plans to diversify the geographical locations of its projects to Penang. Benalec is eyeing the land-reclamation work for the 24-km long Penang Second Bridge project. (Source: The Edge Financial Daily).

O&G: Petronas gets invite from Bangladesh. Bangladesh has invited some of the world's leading state-owned gas giants to help explore its Chittagong hill tracts region. The companies invited encompass Petronas, Gazprom of Russia, CNOOC of China, PTTEP of Thailand and ONGC of India. (Source: Business Times)

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Test your brains... How many legs do you see?

Test your brains... How many legs do you see? 4? or 6? You tell me....

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RHBInvest Research

Top Story:

Construction:

• The prospects of the construction sector will be bright in 2011.
• Maintain Overweight.
• Our top “tactical” pick is Gamuda (FV=RM4.51) T
• Top “value” pick is Fajarbaru (FV=RM1.37).

Corporate Highlights


KNM:

• The company has won a huge EPC contract worth GBP450m (RM2.2bn) from the UK’s Peterborough Renewable Energy Limited (PREL).
• Upgrading our FY11-12 core EPS estimates by 22.4% and 17.3% correspondingly.
• We maintain our Outperform call on the stock
• Upgraded target price of RM3.78/share (from RM3.09)

Sunrise:

• A cheaper entry to the enlarged UEM
• New fair value of RM3.25 for Sunrise (from RM2.80), based on a swap ratio of 1.33 under Option 1-direct share swap.
• Upgrade our call to Market Perform.

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Maybank IB Views

ACQUISITIONS / DISPOSAL
PLUS Expressways RM4.60: Buy
Sense and sensibility Shariah-compliant

Shareholders to decide. PLUS' EGM tomorrow will proceed and shareholders will vote to either accept UEM-EPF's offer or adjourn the passing of resolutions which will give PLUS more time to evaluate Jelas Ulung's offer. As we have written yesterday, we are not comfortable with Jelas Ulung's offer - we are concerned on financial implications or recourse later. After a 5.5% share price gain yesterday, PLUS is trading at UEM-EPF's offer price and just a tinge away from our RM4.70 DCF-based target price. Our Buy call is now under review.


COMPANY UPDATE
KNM Group RM2.69: Buy
Doing a double; raising target price Shariah-compliant

Double joy on orders. We are bullish on the fabricators and have raised KNM's target price by 40% to RM4.35 as it has started to exhibit strong new job wins. The latest RM2.2b EPCC project win instantly doubles its backlog to RM4.6b and the growing momentum is set to sustain into 2011. We opine delivering consistent earnings and margin recovery will supersede market skeptics. Maintain Buy.


Lafarge Malayan Cement RM7.68: Buy
Bright prospects; upgrade to Buy Shariah-compliant

Liquidity and scarcity. Share price has outperformed its cement and steel peers by 3% and 11% YTD respectively and the stock now trades at 15.4x 2012 earnings, which we expect to be a peak demand year for cement in view of major infrastructure projects in Greater KL starting in 2011. Nonetheless, 2012 could mark the start of sustained demand for cement driven by the LRT, MRT, and government land development projects. On that scenario, 15.4x 2012 valuation is not too demanding.


Technicals
The FBM KLCI surged 9.30 points to 1,505.18 yesterday. Its resistance areas at 1,507 and 1,525 may cap market gains, whilst its obvious support areas are located at 1,493 and 1,505.
Trading idea for today is a SHORT TERM BUY call on TWSPLNT.


Other Local News
DRB-Hicom: In RM1b tie up with VW, keen to be VW's distributor in Malaysia. DRB-Hicom Bhd and Volkswagen AG (VW)'s has officially tied up in a collaboration worth RM1b. DRB-Hicom will assemble the Passat, Polo and Jetta models in Pekan. DRB-Hicom has expressed an interest to distribute VW's vehicles in Malaysia. (Source: The Star)

Conglo: Ex-CEO explains why Johor Corp wanted him out. Former Johor Corp CEO Tan Sri Muhammad Ali Hashim said that the reason for his removal is for to facilitate the sale of Johor Corp's assets, including the fast-food businesses. (Source: Business Times)

Amanah Saham Nasional Bhd: Declares 22% higher income payout. ASNB, the subsidiary of Permodalan Nasional Bhd (PNB) has declared an income distribution of 7.5 sen per unit and a bonus of 1.25 sen per unit for ASNB for the financial year ending Dec 31, 2010. The total payout is 22% higher than last year, at RM5.93b while bonus portion payment is RM603.34m. (Source: The Star)

MTD: In JV for jobs in S. Arabia. MTD Capital Bhd has formed a joint-venture (JV) company with ANC Holdings Pte Ltd to target engineering and infrastructure projects in Saudi Arabia. MTD would hold 51% in the JV while ANC would have the remaining 49%. (Source: The Star)

Agriculture: Government negotiating to raise price of Kenaf. The Ministry of Plantation Industries and Commodities is negotiating with a Pahang-based Japanese company to raise the price of kenaf to more than RM750/t to enable the jute-like plant to be commercially cultivated by former tobacco planters. (Source: Bernama)

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ASB 8.75% dividend plus bonus

Amanah Saham Nasional Berhad (ASNB) a wholly-owned subsidiary of Permodalan Nasional Berhad has announced an income distribution of Amanah Saham Bumiputera (ASB) for the financial year ended December 31, 2010 as follows:

Income Distribution : 7.50 sen per unit

Bonus : 1.25 sen per unit

The calculation of the income distribution is based on the average monthly minimum balance held throughout the financial year of ASB ending December 31, 2010.

The calculation of the bonus on the other hand is based on the average monthly minimum balance held by the unit holders in the past ten years, starting from 2001 up to 2010.

The income distribution and bonus will be automatically credited into the respective unit holders’ accounts.

All transactions for ASB has been suspended on December 20, 2010 until January 02, 2011 to facilitate the calculation of income distribution and bonus. Unit holders will be able to update their accounts beginning January 03, 2011.

Amanah Saham Nasional Berhad (ASNB) a wholly-owned subsidiary of Permodalan Nasional Berhad has announced an income distribution of Amanah Saham Bumiputera (ASB) for the financial year ended December 31, 2010 as follows: Income Distribution : 7.50 sen per unit
Bonus : 1.25 sen per unit

The calculation of the income distribution is based on the average monthly minimum balance held throughout the financial year of ASB ending December 31, 2010.The calculation of the bonus on the other hand is based on the average monthly minimum balance held by the unit holders in the past ten years, starting from 2001 up to 2010.The income distribution and bonus will be automatically credited into the respective unit holders’ accounts. All transactions for ASB has been suspended on December 20, 2010 until January 02, 2011 to facilitate the calculation of income distribution and bonus. Unit holders will be able to update their accounts beginning January 03, 2011.

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Tanjung Offshore share price increased lately

Tanjung Offshore share price increased lately from RM1.33 to more than RM1.70 level. . Here is the TGOFFS daily chart.

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Dividend ASB 8.75 cents

PNB has declared that the ASB unit holders will receive a dividend of 7.5cent per unit for this financial year end compared with the last year 7.3cent per unit.

While the bonus payment is just same as previous year at 1.25cent. So total amount unit shareholders will receive 8.75 cents or 8.75%.

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RHBInvest Research

Plantation:

• Raise forecasts by RM200/tonne for CY2011 and 2012 to RM3,100 and RM2,900 respectively, while maintaining our RM2,700 assumption for CY2010.
• Upgrade call on Genting Plant to Market Perform (from underperform)
• Upgrade our sector call to Overweight (from neutral).
• Sime Darby remains a Market Perform,

Corporate Highlights

PLUS:

• Received a takeover offer from Jelas Ulung Sdn Bhd (JU) at RM5.20/share, a 13% premium over UEM-EPF’s RM4.60/share offer.
• Revise fair value from RM4.60 to RM5.20 to match the latest offer.
• Upgrade from underperform to Trading Buy.

Hai-O:

• Fair value has been cut to RM1.35 (RM1.71 previously) based on unchanged 10x CY11 EPS.
• Maintain Underperform.

Jaya Tiasa:

• 2QFY04/11 net profit boosted by higher FFB and CPO prices Indicative fair value is revised to RM5.78 (from RM4.83).

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Maybank IB Views

ACQUISITIONS / DISPOSAL
PLUS Expressways RM4.36:Buy
RM5.20 offer, but what is the return? Shariah-compliant

Highly enticing but .... Jelas Ulung's RM26b offer is 13% higher than the RM23b offer by UEM-EPF. It promises not to seek any tax waiver, government compensation, nor toll increases. While extremely enticing for shareholders, we fail to see the investment return for Jelas Ulung as the offer price is 11% above our RM23.4b DCF value based on existing concession terms. Without that comfort, we are concerned on financial implications or recourse later. The government must reveal the revised concession terms sought by Jelas Ulung, before the offer proceeds.

Technicals
The FBM KLCI tumbled 4.00 points to 1,495.88 yesterday. The FBM 100 and FBM EMAS closed lower by 21.45 points and 24.48 points respectively.
Trading idea for today is a SHORT TERM BUY call on DIALOG.


Other Local News
TdC: To jointly offer IPTV services with Astro. TIME dotcom Bhd's (TdC) is collaborating with Astro, via its wholly owned subsidiary TT dotcom Sdn Bhd to offer Internet Protocol Television (IPTV) and broadband services in the Klang Valley and Penang. Under the collaboration, Astro's high-definition, video on demand and B.yond TV services will be bundled with TdC's broadband and telephony services. (Source: The Edge Financial Daily)

Supermax: ADR to broaden foreign interest in its share. Supermax Corporation Bhd has obtained approval from the US Securities and Exchange Commission for its Sponsored Level-1 American Depositary Receipt (ADR) programme which facilitates the trading of Supermax's shares by American investors. The Bank of New York Mellon would be the depository bank whilst Malayan Banking Berhad (Maybank) serves as the custodian of Supermax's shares in Malaysia. (Source: The Edge Financial Daily)

UEM Land, Sunrise: Takeover becomes unconditional, deadline extended. UEM Land's conditional take-over offer for Sunrise became unconditional after the acceptance has crossed the 50% threshold yesterday. The closing date and time for acceptance of the takeover has been extended to 5p.m. on Jan 7, 2011. (Source: The Edge Financial Daily)

MAS: Revamps fleet, adds capacity to India. Malaysia Airlines (MAS) plans to revamp its fleet and scale up operations to achieve 30 to 40% passenger growth in the Indian sector next year. MAS will switch from the B777, used at present, to the A380 aircraft to India by 2012. The carrier would also revamp its frequency to its regular destinations and allocate additional 40% capacity in India. (Source: Business Times)

RHB Capital: RHB Bank to hold Bank Mestika stake. Having consulted the relevant authorities, RHB Capital will now park its Bank Mestika stake under RHB Bank, from RHB Venture Capital previously. (Source: The Star)

MTDCap: Gets RM2.6b takeover offer. MTD Capital Bhd (MTDCap) has received a takeover offer from a consortium of four local firms in a deal that values the construction company at about RM2.6b. The four companies, namely Nikvest Sdn Bhd, Alloy Consolidated Sdn Bhd, Alloy Concrete Engineering Sdn Bhd and Alloy Capital Sdn Bhd which collectively own 131.48m shares or 53% stake in the company, offered RM9.50 a share to acquire the balance 116.0m shares or 47% stake they did not already own. The joint offerors do not intend to maintain its listing status. (Source: The Star)

Bina Puri: Wins job in Brunei. Bina Puri Holdings Bhd's unit Bina Puri (B) Sdn Bhd has entered into a sub-contract worth RM158.4m in Brunei with Chuon Tzu Construction Co Sdn Bhd. Bina Puri will undertake infrastructure works for a housing project which is expected to be completed in 36 months. (Source: The Star)

Iskandar Malaysia: Records RM64.4b in investments. The total value of investments recorded by Iskandar Malaysia from the start of the development corridor project in 2006 until September 2010 was RM64.4b, which exceeded the RM47b target set for this year. A total of RM37.26b or 58% from the total investments were by domestic investors while the balance of RM27.12b from overseas. Of the overall investment recorded, RM25.7b was in the service sector, RM12.8b in the tourism sector, RM19.6b in properties and RM6.28b in the government sector. (Source: Bernama)

Infrastructure: Plans for bridge between Malacca, Dumai. Malacca state government is seeking approval for the longest sea-crossing bridge connecting Malacca with Dumai in Sumatra from the federal government, while the Governor of Riau, Rusli Zainal, will attempt to secure Jakarta's approval. The proposed 127.9km highway costs USD12.8b (RM40.1b) and will be privately funded. Construction is expected to be completed in 10 years. The bridge will be built by Straits of Malacca Partners Sdn Bhd, with financial support guaranteed by China Exim Bank and other financial institutions. (Source: New Straits Times)

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PLUS, MTD, Bina Puri, Jaya Tiasa, Time Dotcom, BLand

KUALA LUMPUR: Regional markets are likely continue to experience cautious trading on Tuesday, Dec 21, following the ongoing concerns on the European debt crisis as well as simmering tensions on the Korean Peninsula.

On Monday, major Asian markets slumped after South Korea carried out military drills, but some of the losses were minimised after there were no retaliatory actions from North Korea.

However, the bearish momentum is expected to continue for some time, as most regional investors have already begun their year-end holidays.

On Bursa Malaysia, the lack of fresh catalysts coupled with bearish regional sentiment have kept investor sentiment somewhat muted in recent times.

Among the stocks to watch on Tuesday include PLUS EXPRESSWAYS BHD [], MTD CAPITAL BHD [], BINA PURI HOLDINGS BHD [], Jaya Tiasa Bhd, TIME DOTCOM BHD [], BERJAYA LAND BHD [] (BLand).

PLUS has received an offer from Jelas Ulung Sdn Bhd to acquire all of its business undertakings, including assets and liabilities for RM26 billion, or RM5.20 per share cash.

MTD Capital received a buyout offer from its major shareholders Nikvest Sdn Bhd, Alloy Consolidated Sdn Bhd, Alloy Concrete Engineering Sdn Bhd and Alloy Capital Sdn Bhd (joint offerors) to acquire the remaining shares they do not already hold (excluding 27.49 million treasury shares) at RM9.50 apiece.

The joint offerors hold 131.48 million shares of RM1 each in MTD, representing 53.13%.

The joint offers have also made a downstream, take-over offer for the existing and paid-up shares of RM1 each in MTD ACPI ENGINEERING BHD [] not already held by MTD for a cash offer price of 53 sen per share.

Trading MTD and MTD ACPI would resume at 9am on Tuesday, Dec 21. The two companies had requested for a trading halt from 9am on Dec 20 pending the announcement

Bina Puri's unit in Brunei landed a sub-contract worth RM158.36 million to undertake the project known as Skim Tanah Kurnia Rakyat Jati Kampung Lugu: Kerja-kerja Infrastruktur dan Perumahan in Brunei .

Bina Puri said on Monday that Bina Puri (B) Sdn Bhd had entered into a subcontract agreement with Chuon Tzu CONSTRUCTION [] Company Sdn Bhd on Dec 3 to undertake the project.

Jaya Tiasa net profit for the second quarter ended Oct 31, 2010 surged nine-fold to RM30.08 million from RM3.24 million a year ago on higher profit margin from log sales, increase in sales volume and average selling price of fresh fruit bunches as well as doubling of crude palm oil sales volume.

Its revenue for the quarter rose 7% to RM192.21 million from RM180.42 million. Earnings per share was 11.27 sen while net assets per share was RM4.31.

Time Dotcom's wholly-owned subsidiary TT dotCom Sdn Bhd has entered into principal terms of collaboration with MEASAT Broadcast Network Systems Sdn Bhd (Astro) for the provision of IPTV and Broadband services across the Klang Valley and Penang.

BLand net profit for the second quarter ended Oct 31, 2010 fell to RM5.71 million from RM15.16 million a year earlier despite posting revenue RM1.02 billion.

For the six months ended Oct 31, BLand's net profit was RM121.58 million on the back of revenue RM2 billion.

The lower net profit was attributed to the lower profit contribution from the gaming business operated by BERJAYA SPORTS TOTO BHD []'s principal subsidiary company Sports Toto (Malaysia) Sdn Bhd.

It said Sports Toto registered a lower pre-tax profit in the quarter under review due to the increase in Pool Betting Duty from 6% to 8% (effective June 1, 2010) coupled with higher prize payout.

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Chocolate eaters may have healthier hearts

Older women who eat more chocolate are less likely to develop heart problems over a nearly 10 year period, new study findings report.

Women older than 70 who ate chocolate at least once a week were 35% less likely to be hospitalised or die from heart disease over the course of study, and nearly 60% were less likely to be hospitalised or die from heart failure.

Read more...

DiGi to spend RM700mil to improve services next year

SHAH ALAM: The robust growth in data/broadband/Internet is forcing telcos and celcos to invest more to upgrade and expand their networks and DiGi.Com Bhd says it will invest RM700mil in 2011 in capital expenditure.

Although the amount is similar to what it has spent this year, a lot more will go towards enhancing data and Internet rather than voice services next year.

“We are in the new era of data and Internet. We know where our growth is going to come from and we will invest RM700mil to grow our coverage and capacity,'' DiGi chief executive officer Henrik Clausen told StarBiz in an interview.

“We can still grow our voice (business) but it would not be as big; the potential is limited for we see a turning point in voice,'' he said.
Interview with CEO of DiGi Henrik Clausen. - M. Azhar Arif/The Star.

Last week, DiGi awarded a RM139mil contract to Time dotCom Bhd to plug the holes in its data network. The contract is for a 10-year period and also covers support and maintenance works.

Voice coverage for DiGi has reached 95% in populated areas and 50% for data.

“We are well on track to increase it next year and the capex will be internally funded,'' Clausen said.

Revenue growth in 2011 is expected to be in the “high single digit to 10%''. Contribution from the data and Internet business was expanding, he said.

For the nine months ended Sept 30, 2010, DiGi earned RM3.9bil in revenue and reported net profit of RM846mil which was a 12.2% increase year-on-year (y-o-y). Earnings before interest, taxes, depreciation and mortisation (EBITDA) margins stood at 44%, up from 43.5% a year earlier.

Data (including SMS) revenue for the period rose 16% to RM838mil from RM721mil a year ago.

DiGi had 8.2 million users as at end-September, which is a 10% jump from 7.4 million reported a year earlier. DiGi's rivals Maxis Bhd and Celcom Axiata Bhd have 13.5 million and 11.09 million users respectively.

Maxis controls with 45% market share, followed by Celcom at about 29%, DiGi at over 25% and the rest is held by other players.

“We have been good at taking our fair share of growth in the market and this year we added 1% market share. In the telecoms industry, size matters,'' Clausen said.

He said that over 30% of its users were on some data packages and he expected all DiGi users to be data/Internet users in a few years.

DiGi is a latecomer in the data business compared with Maxis and Celcom but the former's strategy of being transparent about broadband speeds on top of its reasonable pricing will see it through the year with about 5.7% market share of broadband subscribers from 1.9% in 2009, according to an analyst.

For next year, the analyst expects DiGi's share to rise to 7.2%. Maxis and Celcom's market share of broadband subscribers should be about 19.5% and 24.5% for 2010 and 21.5% and 24.4% in 2011 respectively.

The analyst said the broadband industry revenue should double in three years and the key driver would be wireless broadband, which would also triple in three years' time.

The data and broadband market may be booming but it is not without challenges and intense competition. With customers also more demanding, wanting quality service at more affordable prices, can DiGi fight its rivals?

“We want data to be an integral part of DiGi and (to do that) we will leverage on our distribution network, innovate and enhance the product offering. We will ride on our branding as that is where our stronghold is,'' he said. Clausen is fully aware of the need for the company to be more customer centric.

“We want to grow, and grow faster than the industry. We also want to be part of the growth story in Malaysia. The market is maturing and so is our company. We believe we need to stay smart all the time. We have managed thus far and will do that again in 2011,'' he said.

Plans are also in place to cut cost, set new targets, re-invent and equip the team so that they can better serve customers and be ready for the challenges ahead. Clausen is working for the organisation to be far more efficient, effective and leaner.

With the industry maturing, he foresees a lot more sharing and partnerships between the players to reduce costs. DiGi is gearing to sign a collaborative agreement with Celcom in that respect in January.

On Friday, DiGi shares fell 26 sen or 1% to RM24.60. The company has been actively paying out dividends the past few years and an analyst in his report said that even though DiGi and Maxis were high-yield telco picks, Maxis' net dividend yields are slightly higher at 7.4% versus DiGi's 7.2%.

source: thestar

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Maybank IB Views

RESULTS REVIEW
Gamuda RM3.83: Buy
No surprises in 1Q, MRT in the bag ! Shariah-compliant

Positive big win. RM88.5m 1QFY11 net profit (+11% YoY) is 25% of our full-year forecast and 23% of consensus. Construction and property drove earnings uptrend. The award of the Greater KL MRT project delivery partner (PDP) role to MMC-Gamuda is positive, to potentially drive mid term earnings. No change to our earnings forecasts for now, while we have already imputed a 50sen impact from the MRT project in our RM4.45 RNAV-based target price. Maintain Buy.


COMPANY UPDATE
IJM Corporation RM6.27: Buy
Another major win; MRT, LRT jobs ahead? Shariah-compliant

Replenishing nicely. A new RM461m building works contract has lifted IJM's FY11-YTD job wins to RM1.61b, closing in to our RM2b estimate for FY11. No change to our earnings forecasts. Last Friday's Greater KL MRT project go-ahead and the remaining packages of the LRT extension works may benefit IJM, based on its works experience. The stock remains a Buy with a RM6.40 RNAV-based TP.


Technicals
The FBM KLCI lost 7.40-points and closed at 1,499.28 last week. The obvious support areas for the FBM KLCI are located in the 1,474 to 1,495-zone. The key resistance areas of 1,499 and 1,531 may cap any rebound activity.


Other Local News
EPIC: Ambitious plans for Tasik Kenyir. Eastern Pacific Industrial Corp Bhd (EPIC) has been granted the project to transform Terengganu's Tasik Kenyir, the largest man-made lake in Southeast Asia, into a duty-free shopper's paradise. This is part of the redevelopment plan to turn Tasik Kenyir, which will attain a duty-free status by the end of 2012, into a major tourist spot. (Source: The Star)

Genting Group: Gets nod for Vietnam venture, eyes Sri Lanka. The JV between Genting Group and a Vietnam fund manger VinaCapital has obtained approval from the central government for a USD4b (RM12.5b) casino resort project in Hoi An city, Vietnam. The large scale project features a five-star hotel, resort villas and a casino. Genting Group is also exploring the setting up of a casino in Sri Lanka, as its parliament recently passed the Gambling (Special Provision) Bill to legalise gaming. (Source: The Edge Financial Weekly)

Sime Darby: Culprits in Sime's RM2.1b losses to face full brunt of the law. The Malaysian Anti-Corruption Commission (MACC) has found several "elements of fraud" in Sime Darby Berhad and has shared its findings with police and the Companies Commission (SSM) for them to initiate action. Sime Darby was found to have breached several provisions under the Penal Code, the Companies Act and the Anti-Corruption Act 2009. (Source: The Star)

DiGi: Plans to spend RM700m in capex next year. DiGi.com Bhd will invest RM700m in 2011 in capital expenditure, focusing on enhancing data and internet rather than voice services. Revenue growth is expected to be a high single digit to 10% with the expanding contribution from data and Internet business. (Source: The Star)

RHBCap: EPF may sell 9% in RHBCap. The Employees Provident Fund (EPF) is planning to sell another 9% stake in RHB Capital Bhd to a diverse group of institutional fund managers. The senior management of RHB Banking Group participated in roadshows in the region and in London and New York to meet foreign investors, mostly institutional fund, for the divestment. (Source: The Edge Financial Weekly)

Kencana: JV with Petrofac may bag Berantai job. Kencana Petroleum Bhd and its technical partner London-based Petrofac Ltd have emerged as the front runners to bag the exploration of the Berantai oil and gas field at PM309, off the coast of Peninsular Malaysia. Kencana and Petrofac may opt for either a processing platform or a standalone development, utilizing a floating production, storage and offloading (FSPO) vessel. (Source: The Edge Financial Weekly)

Conglo: JCorp seeks to remove Muhammad Ali. Johor Corp (JCorp) is seeking to remove Tan Sri Muhammad Ali Hashim, its previous head for 18 years, from the boards of three listed companies it has direct stakes in. JCorp has called for EGMs at Kulim (M) Bhd, KPJ Healthcare Bhd and Damansara Realty Bhd (DRealty) for this purpose. (Source: The Star)

Scomi Marine: Unit to sell foooour logistic firms. Scomi Marine Bhd (SMB) unit Scomi Marine Services Pte Ltd has proposed to sell four companies to its 80.5%-owned subsidiary PT Rig Tenders Indonesia Tbk for IDR323.1b (RM538.3m) in a group-related corporate exercise. The four companies Scomi Marine Services is disposing of (its entire equity interest) are CH Logistics Pte Ltd, CH Ship Management Pte Ltd, Grundtvig Marine Pte Ltd and Goldship Private Ltd. (Source: The Star)

KPJ: Shareholders approve hospitals sale. KPJ Healthcare Bhd's shareholders have approved the disposal of three hospitals to the company's associate Al-Aqar KPJ Real Estate Investment Trust (REIT) for RM138.8m. KPJ, a 48.4% associate of Johor Corp, has a 43% stake in Al-Aqar KPJ REIT. The three hospitals being sold were the Bandar Baru Klang Specialist Hospital and the Kluang Utama Specialist Hospital in Malaysia as well as the Rumah Sakit Bumi Serpong Damai hospital in Jakarta. (Source: The Star)

Read more...

RHBInvest Research

Gamuda:

• Trading Buy
• 1QFY07/11 net profit grows 20% yoy, appointed MRT’s PDP
• Fair value is RM4.51.
• Maintain Trading Buy.

Corporate Highlights


IJM:

• Awarded RM461m building contract for Naza’s Platinum
• Fair value is RM6.16.
• Maintain Market Perform.

Hai-O:

• Weak MLM sales continues
• Maintain Underperform.

Read more...

Trading with Trend Lines - Emini-Watch.com

Learn on how to use trend line method in trading.





http://Emini-Watch.com - "The big money is in the big moves" - Use trend lines to find congestion zones and then trade the trend line breaks to catch the large moves.

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Gamuda 1Q net profit up 19.6% to RM88.53m

Gamuda daily chart

KUAL A LUMPUR: GAMUDA BHD’s net profit rose 19.6% to RM88.53 million for the first quarter ended Oct 31, 2010 from RM74.02 million a year ago, underpinned by higher contributions from the CONSTRUCTION and property divisions.

It said on Friday, Dec 17 revenue rose marginally by 1.6% to RM634.20 million from RM623.96 million a year ago. Earnings per share rose to 4.35 sen from 3.67 sen, while net asset per share was RM1.75.

Gamuda declared a first interim dividend of three sen per share less 25% income tax and three sen per share single-tier (exempt from tax).

On its prospects, Gamuda with the existing construction projects progressing on schedule and the strong performance of the property division, the group expected to perform better in the next few quarters of the current financial year.

“The group is also expected to benefit from the roll-out of projects earmarked in the government’s Economic Transformation Programme such as the Klang Valley MRT project,” it said.

It also said work on the Yenso Park and sewage treatment plant in Gamuda City, Vietnam remained on track.

Work on the sewage treatment plant was at an advanced stage and was expected to be substantially completed in the current financial year.

On the property division, it said the group’s property developments in Malaysia achieved stronger sales on the back of a buoyant economy, improved consumer sentiments as well as an attractive mortgage environment.

“Unbilled sales reached RM760 million as a result of good sales performance. The property division’s financial performance is expected to be better in the next few quarters of the current financial year,” it said.

Gamuda said strong buying activity was evident, particularly in matured locations and well-regarded developments such as Bandar Botanic, which attracted significant demand for its semi-detached houses and bungalow homes, Horizon Hills and Jade Homes.

It added that its flagship development, Gamuda City in Hanoi, was gearing up for its maiden launch with several thousands of interested purchasers having registered their interest in this development.

The group’s second development, Celadon City in Ho Chi Minh City, was also ready for its maiden launch in the first half of 2011. These two developments in Vietnam are expected to be the key drivers of revenue and earnings growth for the overall property division.KUAL A LUMPUR: GAMUDA BHD’s net profit rose 19.6% to RM88.53 million for the first quarter ended Oct 31, 2010 from RM74.02 million a year ago, underpinned by higher contributions from the CONSTRUCTION and property divisions.

It said on Friday, Dec 17 revenue rose marginally by 1.6% to RM634.20 million from RM623.96 million a year ago. Earnings per share rose to 4.35 sen from 3.67 sen, while net asset per share was RM1.75.

Gamuda declared a first interim dividend of three sen per share less 25% income tax and three sen per share single-tier (exempt from tax).

On its prospects, Gamuda with the existing construction projects progressing on schedule and the strong performance of the property division, the group expected to perform better in the next few quarters of the current financial year.

“The group is also expected to benefit from the roll-out of projects earmarked in the government’s Economic Transformation Programme such as the Klang Valley MRT project,” it said.

It also said work on the Yenso Park and sewage treatment plant in Gamuda City, Vietnam remained on track.

Work on the sewage treatment plant was at an advanced stage and was expected to be substantially completed in the current financial year.

On the property division, it said the group’s property developments in Malaysia achieved stronger sales on the back of a buoyant economy, improved consumer sentiments as well as an attractive mortgage environment.

“Unbilled sales reached RM760 million as a result of good sales performance. The property division’s financial performance is expected to be better in the next few quarters of the current financial year,” it said.

Gamuda said strong buying activity was evident, particularly in matured locations and well-regarded developments such as Bandar Botanic, which attracted significant demand for its semi-detached houses and bungalow homes, Horizon Hills and Jade Homes.

It added that its flagship development, Gamuda City in Hanoi, was gearing up for its maiden launch with several thousands of interested purchasers having registered their interest in this development.

The group’s second development, Celadon City in Ho Chi Minh City, was also ready for its maiden launch in the first half of 2011. These two developments in Vietnam are expected to be the key drivers of revenue and earnings growth for the overall property division.

Read more...

Maybank IB Views

COMPANY UPDATE
AirAsia RM2.67: Buy
AirAsia Philippines: It is ON Shariah-compliant

Confirmation of JV. AirAsia has signed its latest JV agreement to replicate its business in the Philippines as early as Sep 2011. This news comes as no surprise; we highlighted it in our report dated 9 Dec (AirAsia Philippines: Tony meets Tony). We are upbeat on the long-term prospects of this JV, but are neutral short-term as it will incur start-up losses and require 2-3 years to turn profitable. Maintain Buy with a RM3.36 TP based on 9.0x 2011 PER, 20% discount to peers.


TH Plantations RM1.83: Buy
The end of pricing woes Shariah-compliant

Upgrade to Buy. Having finally addressed its pricing issues, THP is poised to deliver substantial earnings growth in the coming quarters. Our revised earnings forecasts suggest a 26% 3-year net profit CAGR. Valuations are attractive at 9.4x 2011 PER, with the stock trading at 1sd below mean on forward PER. We raise our target price to RM2.15 (+23%) based on 11x 2011 earnings, representing the 2-year average of THP's forward PER. We expect share price to re-rate up upon the delivery of substantial earnings growth in the coming quarters.


Technicals
The FBM KLCI tumbled 11.58 points to 1,497.52 yesterday. Its resistance areas at 1,497 and 1,515 will cap market gains, whilst its weaker support areas are located at 1,476 and 1,493.

Trading idea for today is a SHORT TERM BUY call on HAPSENG.


Other Local News
TNB: Awards RM991.8m contracts for hydro plant. Tenaga Nasional Bhd (TNB) has awarded jobs worth RM991.8m for the Hulu Terengganu hydroproject to various companies. The Project will involve the construction of two dams and the installation of two hydro turbines and generators in an underground power station with a total installed capacity of 250MW. The Project is located on the upper reaches of Sg. Terengganu upstream of Kenyir Lake. The Project is expected to be completed by October 2015. (Source: Bursa Announcements)

TM: Forge strategic tie-up with Multinet. Telekom Malaysia Bhd (TM) has teamed up with Multinet Pakistan Pte Ltd to offer Internet protocol virtual private network services to their corporate customers. (Source: The Star)

Mulpha: Sells Hilton Melbourne for RM327m. Mulpha International Bhd is selling its Hilton Melbourne Airport Hotel in Australia to Singapore-listed Pan Pacific Hotel Group Ltd for AUD108.9m (RM337.9m) cash. Mulpha will use the proceeds from the sale to repay its debt. The proceeds, if used to repay debts, could bring down the group's debt levels from RM1.5b to RM1.18b. (Source: The Star)

Proton, AutoV: Three companies to develop window regulator for Persona replacement model. AutoV Corp Bhd, an auto parts maker primarily for Proton vehicles, has tied up with US-based ArvinMeritor Inc and Germany-based Continental AG to develop a window regulator with an anti-pinch function for the Proton Persona replacement model, which will be launched in 2012. The collaboration was in line with Proton's strategy to improve the quality of its products and provide customers with value-added cars. (Source: The Star)

Regulations: Securities Commission amends takeover code. The Securities Commission (SC) has introduced a revision to the Malaysian Takeovers and Mergers Code, requiring higher level of disclosure. Main changes include notification to the SC if material changes occur after the dispatch of documents, prohibition of offerors, advisers and the boards of offerees from undertaking actions that could frustrate an offer, shorter settlement periods as well as enhanced timely disclosures in offer documents and independent advice circulars. Also, a voluntary offer to takeover a company is allowed to be carried out at a higher threshold (up to 90%). However, the changes do not address the issue of takeovers or privatisation of companies via the asset and liability (A&L) route, which is under the Companies Act's jurisdiction. (Source: The Star and The Edge Financial Daily)

Read more...

RHBInvest Research

Top Story

2011 Market Outlook & Strategy:

• Gravitate towards fundamentals as capital flow normalises.
• Short-term volatility, there is still room for the market to trend higher in 2011 given sustained economic and earnings growth.
• Our end-2011 FBM KLCI target has been revised up slightly to 1,700, from 1,640 previously
• Construction and property would be the sectors to focus in the immediate term
• Positive on the banking, oil & gas, plantation, timber, gaming and telecommunications sectors.

Sector Call

• Banks: Banking on another good year.
• CIMB is our top pick for large cap stocks while Affin is our pick for the small-mid sized banks.
• Overweight stance maintained.

Corporate Highlights


AirAsia:

• To set up a low-cost carrier in the Philippines
• Fair value is RM2.10. Maintain Underperform.

Technical Highlights


Daily Trading Strategy:

• Negative sentiment expected to continue…
• Index to drift lower towards the Nov low of 1,474 and the critical level of 1,450 in the near term.
• Breaching of 1,450 will trigger a stronger selling pressure on the FBM KLCI going forward.
• Immediate resistances are now seen at the 1,500 psychological level and the 10-day and 40-day SMAs.

Daily Technical Watch: Scomi

• Failure to sustain at above RM0.36 and 10-day SMA will reinvite sellers…
• Immediate Support = RM0.36
• Immediate Resistance = RM0.435

Read more...

Stocks to watch: Sozo, MTD Cap, Loh & Loh, AirAsia

KUALA LUMPUR: Stocks which could see trading interest on Friday, Dec 17 include Sozo Global Ltd, MTD CAPITAL BHD [], Loh & Loh and AIRASIA BHD following fresh corporate developments.

Sozo, a China-based company which manufactures ready-to-serve food, will be listed on the Main Market. Its offer price is 80 sen while RHB Research Institute has accorded a fair value of 95 sen.

RHB Research said it derived a fair value of 95 sen a share after applying a FY11 target of 4.0 times PER, which is a 10% discount to the weighted average FY11 target PER of the three listed China based companies on Bursa Malaysia.

“We believe it is more relevant to benchmark Sozo against its China listed peers in the KLSE than the Malaysian peers given the large discount usually applied to China listings in Malaysia, irrespective of its business model,” it said.

MTD Capital, Malaysia's second largest highway operator and owner, has obtained the go-ahead from the Philippines Toll Regulatory Board (TRB) to raise toll rate on the South Luzon Expressway (SLEX) effective Jan 1, 2011.

Its share price rose to a fresh all-time high of RM8.51 on Thursday as it stands to gain RM150 million annually from a proposed Philippine toll hike in South Luzon Expressway.

The year low was RM2.75 on Jan 21.

TENAGA NASIONAL BHD signed three agreements with various companies for jobs worth RM1.16 billion for the 250MW Hulu Terengganu hydroproject yesterday.

Of the contracts, Loh & Loh CONSTRUCTION Sdn Bhd and Sinohydro Corp Ltd JV sealed a RM828.3 million contract for the main civil works including building two dams, a water transfer tunnel and an underground power house.

AirAsia Bhd is stepping its presence in the Philippines, this time via the setting of a joint venture with several Filipino parties to establish a low cost airline there.

AirAsia said the JV will leverage on AirAsia’s strength to forge into markets in China (with Macau and Hong Kong), Taiwan, Korea, Japan as well as Singapore.

Bursa Malaysia Securities Bhd has served a court order on GOLDEN PLUS HOLDINGS BHD (GPlus), directing it to appoint a special auditor to review the group’s affairs from January 2006 to May 2010.

Bursa Securities had served a sealed court order granted by the High Court of Kuala Lumpur directing GPlus to appoint PriceWaterhouseCoopers Advisory Services Sdn Bhd (PWC) as the special auditor.

The Special Auditor will undertake to review the affairs of GPlus and its subsidiary companies for the period from January 2006 to May 2010.

MAA HOLDINGS BHD [] (MAAH) has received Bank Negara Malaysia’s approval for it to hold early talks with Zurich Insurance Company over possible sale of stake in its unit Malaysian Assurance Alliance Bhd (MAA).

Read more...

Xingquan wins over foreign funds

KUALA LUMPUR: Fund managers, notably foreign ones based in Europe and the US, have been buying into China-based shoe and shoe sole maker Xingquan International Sports Holdings Ltd, according to its corporate finance chief Ooi Guan Hoe.

“We have ongoing investor relations (IR) activities and analyst briefings. From July 2009 till June 30, 2010, we have met more than 80 fund managers. Our company puts a lot of emphasis on IR activities,” Ooi told journalists yesterday after Xingquan’s annual general meeting.

Ooi said these heightened IR activities have borne fruit. Xingquan’s latest annual report 2010 listed the Bank of New York Mellon among its 30 largest shareholders with a 3.2% stake or 9.85 million shares as at Nov 1, while European bank KAS Bank Effectenbewaargeorijf NV held a 1.13% stake or 3.47 million shares.

“Two weeks ago we also had another fund from Holland which came to visit us. When these foreign banks do their road shows in China — Hong Kong and Shanghai — they will pay us a visit. On average, every month we have investors from China, Taiwan, South Korea, Hong Kong or even Europe. We even have news magazine from the US which (recently) came to visit us,” Ooi added.

“If you notice in the (shareholders) list, we also have certain high net worth individuals who have bought into our company. Even the Employees Provident Fund has stakes in the company. We also have CIMB,” he said.

Analysts said Chinese footwear manufacturers have been trading at low price-to-earnings multiples despite their market potential in China and expansion opportunities, given the country’s growing middle class. Xingquan has a forward PER of 3.68 times, XiDeLang Holdings Ltd 1.77 times, Multi Sports Holdings Ltd (XDL) 3.27 times and K-Star Sports Ltd 1.1 times, compared with the FBM KLCI’s 17 times.

Analysts also noted that China-based companies listed here have been cast in a negative light due to a number of scandals among Singapore-listed China-based companies and perhaps because of the language barrier. Xingquan was the first China-based company to list on Bursa Malaysia in July last year.

Sources said XDL and Multi Sports’ management are contemplating a total revamp of their IR team, to empower the team with more qualified English-speaking personnel to reach out to institutional investors in Malaysia and around the world.

“It does seem to me that these China-based companies are beginning to learn from these past experiences. Sometimes, communication is the only barrier because these Chinese shoemakers are in a sweet spot, given China’s bright macroeconomic fundamentals,” a senior analyst with OSK Research House said.

“These companies have qualified and established auditors who have gone to the ground to view their operations and have certified them as genuine. In any business, the most important thing is that there is demand for your products, and these Chinese companies have got it in China,” the analyst said.

“Many people especially local investors are not aware that China-based companies like XDL, K-Star, and Xingquan’s major shareholders did not sell down their existing shareholding stakes when they listed their businesses in Malaysia — all the funds went to the business itself. This shows their long-term commitment to the business,” another analyst who covers Chinese shoemakers said.

For FY10 ended June 30, profit after tax rose 21.2% to RM103.8 million from RM85.7 million in FY09. Revenue was up 51.1% to RM609.3 million.

Read more...

Maybank IB Views

RESULTS REVIEW
Top Glove Corporation RM5.45: Sell
Weathering the perfect storm Shariah-compliant

Below expectations. 1QFY11 net profit of RM36m (-45% YoY, -20% QoQ) made up 15% of our and street's full-year estimates. We cut our FY11 forecast by 13%, expecting high latex prices to persist into 1HCY11. The stock is bereft of catalysts and M&A targets may not be attractively priced presently. Maintain Sell with a lower DCF-derived TP of RM4.70 (-4%), implying 12x CY12 PER.


Technicals
The FBM KLCI declined 1.48 points to 1,509.10 yesterday. Its resistance areas at 1,510 and 1,531 may cap market gains, whilst its firm support areas are located at 1,495 and 1,508.

Trading idea for today is a SHORT TERM BUY call on TALIWRK.


Other Local News
DiGi, Axiata: Celcom & Digi may ink tie-up next month. DiGi.Com Bhd's CEO Henrik Clausen believes the company will be able to ink a definitive agreement on network collaboration with Celcom Axiata Bhd next month and this tie-up will help each company save over RM150m annually. (Source: The Star)

MRCB, IJM Land: Extend validity of MoU. Malaysian Resources Corp Bhd (MRCB) and IJM Land Bhd have extended the validity of their memorandum of understanding from Dec 14 previously to Dec 29. Both parties are still in the midst of finalising the terms and conditions for the proposed merger. (Source: The Star)

RHB: Inks MoU with Sumitomo Mitsui. RHB Capital's subsidiary, RHB Bank has signed a memorandum of understanding (MoU) with Japan's Sumitomo Mitsui Banking Corp (SMBC) to establish the basic framework for future cooperation. (Source: The Edge Financial Daily)

TNB's capital expenditure may rise to RM6.5b. Tenaga Nasional Bhd's (TNB) capital expenditure (capex) for fiscal years ending Aug 31, 2011 and 2012 will remain between RM4.2b and RM4.5b but could rise to RM6.5b in 2013 as additional funds will be needed to complete its three new power plants. The plants include the Manjung coal-fired plant and two hydro plants in Hulu Terengganu and Ulu Jelai in Pahang. (Source: The Star)

AmBank: AmIslamic Bank to expand into two Asian countries. AmIslamic Bank Bhd plans to set up operations in two Asian countries next year as part of its overseas business expansion plan. The bank aims to increase its customer base by an additional 200,000. (Source: Bernama)

Proton: Two more concept cars to hit production line. Another two of Proton Holdings Bhd's five "Pahlawan" concept and customised cars could turn into production models and enter the market next year. They are the Tuah (to replace the existing Persona) and the Lekiu crossover (a mini SUV).
Currently, two of the Pahlawan series are already existing production models namely Kasturi (facelifted Saga) and Jebat (Inspira). (Source: Business Times)

Renewable Energy: Tariff system mooted. A special tariff system to speed up the generation of renewable energy will be implemented under the Renewable Energy Bill 2010. Also, a feed-in tariff system that supplies line connection points for the distribution of renewable energy would be established. (Source: The Star)

Autos: Plan on electric vehicles to go to Cabinet. A completed study on the rollout plan for the Electric Vehicle Infrastructure Roadmap will be sent to the Cabinet for approval by end of January. This is to make Malaysia an attractive destination for electric vehicle makers. (Source: The Star)

Read more...

RHBInvest Research

Top Story

Media Prima:

• Declining viewership not a concern
• Valuations remain decent while dividend yields are attractive.
• Outperform call on the stock.

Corporate Highlights


Top Glove:

• 1Q11 earnings down 44.7% yoy on higher latex cost.
• Fair value has been lowered to RM4.10 (from RM5.40)
• Underperform call on the stock remains unchanged.

Technical Highlights


Daily Trading Strategy:

• More negative outlook on the FBM KLCI’s immediate-term.
• Trend to revisit 1,474 recent low and the key level at 1,450.

Daily Technical Watch: Bursa Malaysia

• Short-term downswing to cover a technical gap at RM7.60 possible
• Immediate Support = RM7.60
• Immediate Resistance =RM8.20

Read more...

Taliworks Corporation

I like TALIWRK. Recent decline went to RM1.12 - its book value per share. Volume churn for the last 2 days. On Monday, there was volume without a price surge. Yesterday, price and volume moved up in tandem. Since it is at a "bombed-out" low at 1.12, stop-loss level is at 1.10. Support at 1.12, 1.22 & 1.28. Resistance at 1.34, 1.41 & 1.49. Happy trading.

source: maybank IB

Read more...

Maybank IB Views

COMPANY UPDATE
Axiata RM4.75: Buy
Secular growth trends to continue Shariah-compliant

Raising earnings and target price. We revisit our assumptions following Axiata's stellar 3Q10 results and tweak our earnings higher to reflect latest operating trends. We still like Axiata for its high-growth pan-Asian footprint, and believe Axiata would continue to benefit from a liquidity-induced market rally. Reiterate Buy with a higher RM5.45 TP.


KNM Group RM2.33: Buy
Sabah cross-over brings ample opportunity; target price raised Shariah-compliant

Target price lifted to RM3.10. We are positive over KNM's JV with Petrosab as East Malaysia fabrication opportunities are huge, riding on PETRONAS' rising domestic capex spend. The SOGT and Sipitang CTF projects are some of the JV's targeted projects. KNM remains a Buy with a raised 12-month target price of RM3.10 (+41%) as we foresee a sustained recovery outlook, locally and globally. Our new target PER is 10x (previously 9x) and we roll-over valuations to 2012 earnings.


ECONOMICS
US Economy
Stimulus begets stimulus...

FOMC meeting yesterday ended with the fed fund rate (FFR) retained at 0%-0.25% and more importantly, the Fed reiterating its commitment to the USD600b QE2, which has started with the purchases of USD114.1b US Treasuries since 12 Nov. In addition, there is a third fiscal stimulus package in the works in the form of USD858b tax incentives pending Congress approval. While these monetary and fiscal stimulus may be positive for the US and global economy in the short term, the risks are amplified over the long term.


Technicals
The FBM KLCI advanced 0.79 points to 1,510.58 yesterday. Its resistance areas at 1,512 and 1,531 may cap market gains, whilst its firm support areas are located at 1,495 and 1,510.
Trading idea for today is a SHORT TERM BUY call on TONGHER.


Other Local News
KLK: Subscribes to RM209.8m rights issue entitlement. Kuala Lumpur Kepong Bhd (KLK) and its unit will subscribe to their rights issue entitlement in London-listed Yule Catto & Co Plc amounting to GBP42.4m, or RM209.8. The subscription will be financed with cash reserves and bank borrowings.KLK and its unit hold 27.4m shares, or 18.8%, in the specialty chemical manufacturer. The funds raised from the rights issue is for Yule Catto's acquisition of PolymerLatex Group, an European emulsion polymer products manufacturer with assets in Europe and Asia worth GBP376m (RM1.85b). (Source: The Star)

MAS: Firefly airline plans four new hubs. Firefly plans to set up at least four new hubs for its jet operations within the next two years. This excludes KL International Airport (KLIA) where it would begin its jet services from Jan 15 next year. The four new hubs will be established at Kota Kinabalu (KK), Kuching, Senai and Penang. (Source: The Star)

DiGi, Time dotCom: Ties up in RM139m deal. Digi.Com Bhd has entered into a 10-year wavelength purchase agreement and a maintenance and support deal collectively worth RM139m with Time dotCom Bhd (TdC) as a follow-up to the bandwidth service agreement signed between the two companies in April 2008. TdC would fiberise, maintain and support parts of Digi's backhaul links between its aggregation wireless towers and mobile switching centres. (Source: The Star)

Maxis, TM: Ink 10-year deal. Telekom Malaysia Bhd (TM) and Maxis Broadband Sdn Bhd have signed a 10-year agreement for TM to provide high speed access connectivity, via its high speed broadband access (HSBB Access) service, to Maxis. The deal would enable Maxis to offer bundled services, including Internet Protocol (IP)-based offerings, to 700,000 homes at present and 1.3m households by the end of 2012. (Source: The Star)

Starhill REIT: YTL disposes properties to Starhill REIT. YTL Corp Bhd, via its units, will dispose nine of its hospitality-related properties to Starhill Real Estate Investment Trust (Starhill REIT) for RM1b. The properties disposed are Cameron Highlands Resort, Hilton Niseko, Vistana Penang, Vistana Kuala Lumpur, Vistana Kuantan, The Residences at The Ritz-Carlton, Kuala lumpur, The Ritz Carlton Hotel, Kuala Lumpur, Pangkor Laut Resort and Tanjong Jara Resort. Starhill would lease the properties to the respective vendors/leases for 15 years, with an option to renew for a further term of 15 years. The lease payments for the properties are fixed and include a 5% step-up rate every five years. (Source: Bernama)

YTL: Powers into Jordan. YTL Power International Bhd would invest USD5b to acquire 30% stake in Eesti Energia's Jordanian oil shale projects. The oil plant with output of 38,000 barrels per day will be jointly developed by the partnership between Eesti Energia (60%), YTL Power (30%) and Near East Investment (5%). (Source: The Star)

Autos: BMW unveils another locally assembled model. BMW Malaysia Sdn Bhd has added the contemporary sport-centric BMW X1 to its stable of locally assembled cars. The model would be assembled in Kulim, along with BMW 3 Series and BMW 5 Series that are currently assembled there. (Source: The Star)

Read more...

RHBInvest Research

Top Story

VS Industry:

• Vibrant sales ahead
• Maintain forecasts and Outperform call with a fair value of RM2.24.

Sector Call


Telecom:

• Maxis to ride on TM’s HSBB network
• TM benefits from a higher utilisation rate of its HSBB network, which leads to more wholesale revenue.
• Expect Maxis to focus on providing content via bundling, instead of competing head-on with TM in offering high speed Internet access.
• No change to our Overweight call on the sector.

Corporate Highlights


KLK:
To subscribe for Yule Catto rights issue
Fair value is raised to RM24.75 (from RM24.50). Maintain Outperform.

KNM:

• Going to Sabah
• The company is establishing a JV with Petrosab Logistik for a total initial investment outlay of RM51k.
• Positive on the JV given that the tie-up will improve KNM’s success rate for any potential contracts in the state.
• Raised our FY11-12 core EPS by 15.1% and 12.5% respectively
• Maintain our Outperform call on the stock with an upgraded target price of RM3.09/share

WCT:

• A second property jv project in Iskandar
• Fair value is RM2.55. Maintain Underperform.

Hiap Teck:

• 1QFY07/11 in the red due to lower margins
• Fair value is maintained at RM1.18 based on 7x CY11 EPS of 16.9 sen.

Technical Highlights

Daily Trading Strategy:

• Our technical outlook on the FBM KLCI remains on a negative bias.
• Further supports are seen near the recent low of 1,474 and 1,450, while the overhead resistance is at 1,524 and 1,532.

Daily Technical Watch: AMMB

• Short-term upswing remains intact if it sustains at above RM6.50…
• Immediate Support = RM6.50
• Immediate Resistance = RM7.32

Read more...

15 Tips to Increase Blog Traffic

5 Tips to Increase Blog Traffic

Simple Ways to Get Your Blog Noticed in the Blogosphere

1. Write Well and Write Often
2. Submit Your Blog to Search Engines
3. Use and Update Your Blogroll
4. Harness the Power of Comments
5. Syndicate Your Blog's Content with an RSS Feed
6. Use Links and Trackbacks
7. Tag Your Posts
8. Submit Your Posts to Social Bookmarking Sites
9. Remember Search Engine Optimization
10. Don't Forget Images
11. Consider Guest Blogging
12. Join Forums, Web Rings or Online Groups
13. Promote Outside Your Blog
14. Nominate Yourself and Other Blogs for Blog Awards
15. Don't Be Shy

1. 
   

I am just googgling at internet the keyword of 'how to increase blog traffic' and found this article. More details you can go to this weblogs. I am not the person who can wrote and talk the subject expert like this. But what is more important is I can learn a lot from this great website.

Hope everybody can learn as well.

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Do Rising Oil Prices Predict Another Economic Recession?

Do Rising Oil Prices Predict Another Economic Recession? By STEVE AUSTIN for OIL-PRICE.NET, 2010/12/13

The year 2008 saw the American economy topple over like a towering stack of light weight cards with the financial and market crash. The recession changed the economy of the country and left many people without jobs and means to sustain their families. More houses were put on foreclosure than ever before, leaving an even larger number of families homeless and destitute with no one to bank on. The initial contention was that the primary reasons for the recession that hit the country in 2008 was the downfall of the financial services market and the housing market. More and more financial experts came forward with another, more accurate reason for the financial crash. The reason put forward and accepted widely was that the market financial crash was caused by the high oil price rise which shot to an all time high of $147 per barrel in the year 2008.

Looking Better Briefly
In order to help the economy to gain a firm footing, the Federal Reserve took up the initiative of increasing the monetary base (quantitative easing). Two years down the line however, this idea seems to be showing wear. Pumping billions of dollars into the lagging economy boosted spending budgets for some but at the cost of devaluating the dollar. On the plus side, the country's economy is slowly recovering. The oil consumption of the country that had taken a hit after the recession has also been picking up.

Crude Oil Now
In a developed nation like the United States, every single aspect of business and life requires some or the other form of oil. As per the current scenario, crude oil is trading at much higher than what it was last at $87.82 per barrel on December 10, 2010. Truth be told, this price is nowhere as high as that which caused the Great Recession of mid 2008. The nation's economy is still recuperating from the recession though. Even a comparatively lower oil price at $85-90 per barrel adds to the heavy burden being lugged around by the consumers. It also adds to the woes of the financial market. When it is considered that the United States economy is still recuperating from the recession, the impact of rising energy prices is amplified.

Reaching New Highs
Experts predict that the end of the year 2010 might see the crude oil prices rise to $90 per barrel which would bring the already tottering economy to its knees. The economy is still running at its sluggish pace whereas the oil prices are rising unaffected by the situation of the economy. This non-elastic relationship has forced people to accept the fact that these high oil prices might just cause another recession in the year 2010. The reason a crash might be on the cards is not just the primary fact that the oil prices are rising but that the prices are rising at a fast rate making it impossible for the economy to keep up with it.

China Taking Over World Economy
While market analysts are running pillar to post to come up with solutions before the market crashes and brings them all down, the fact remains that the peak oil crisis has no reasonable solution in sight. The world economy now has a new backbone and that is the consumer rich country of China. The Red Dragon seems to have replaced the United States at least as far as relevance to the world economy goes. Most Asian economies seem to be thriving at the time when the American economy is reeling on a downward spiral path.

Cycle of Crashes
The problem here is that we seem to be caught in a vicious circle as far as market crashes and high oil prices are concerned with both of them aiding and abetting each other. A higher oil price increases the trade deficit of the US. This increased export bill leads to a weaker state of the dollar currency. A weak dollar in turn pulls up the international prices of dollar denominated commodities. This allows the oil prices to increase further leading to exorbitantly higher oil prices. A market crash for the US then becomes inevitable.

Analysis shows that there is a cyclical process where market health and oil prices modulate each other in opposite direction. In other terms the oil prices affect the global economic health adversely while at the same time, being greatly affected by it. The gains made as far as the US export and related avenues are concerned will inevitably be offset by the high oil prices as oil is priced in US dollars. It also needs to be understood that oil prices are factored in the export expenditure as shipping expenses for various companies as well. A weaker dollar might have some short term advantages for consumers but these will in no way outweigh the long term disadvantages of a weaker currency rate.

Oil Crisis Impending
At the same point in time, lack of new significant oil discoveries confirm that there is an impending oil crisis that will hit the global economy. This would further drive up already accelerating oil prices making it all the more difficult for the US economy to keep the stock market from crashing without preamble. Peak oil prices are set to cause the largest tumble down in the history of the economy.

Protect Your Investments
While do not typically make investment recommendations, we encourage investors to act defensively. To ensure that your investments do not suffer, read our research, anticipate macro-economic changes and think for yourself.

The global economy is headed toward an inexorable standstill. The reason for this is the shortage of energy channels available at a reasonable price. Consequently, the earnings that companies will show are bound to be a reflection of what is happening in the financial markets around the world. Protecting your investments and money ought to be your highest priority in these changing times.

Source: oil price dot net

This article was written by Oil-Price.net which provides free information on crude oil.

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Maybank IB Views

Proton Holdings RM4.90: Buy
Lotus burns cash

Lotus' £480m capex is higher than expected, and we do not share Proton's direction of spending for the F1 whilst most major automakers have already exited the circuit in recent years. The high capex will dent Proton’s war chest and affect cash flows, impacting its business and financial turnaround plans. We are placing Proton Under Review with downside bias pending outcome of the Proton-Perodua merger.


Technicals
The FBM KLCI advanced 2.51 points to 1,509.79 yesterday. Its resistance areas at 1,510 and 1,531 may cap market gains, whilst its firm support areas are located at 1,493 and 1,508.

Trading idea for today is a SHORT TERM BUY call on TWS.


Other Local News
O&G: M'sia and Brunei ink billion-ringgit oil and gas exploration pact. Malaysia has sealed a 40-year joint oil and gas exploration deal with Brunei which is expected to generate billions in revenue for both countries. The deal involves two deep water blocks - CA1 and CA2 - located within the two countries' commercial arrangement area along the Brunei-Sarawak maritime border near the Limbang division. Petronas will also be looking into possible joint ventures with Brunei National Petroleum Company Sdn Bhd (Petroleum Brunei) to explore oil and gas in a third country and development of downstream industries. (Source: The Star)

CIMB: Unit eyes USD100m in sales from Dublin funds. CIMB-Principal Islamic Asset Management Sdn Bhd(CPIAM) is targeting about USD100m in sales for its Dublin domiciled syariah funds by the end of next year. CIMB intends to launch three funds under the UCITS III structure, all of which can be freely marketed across Europe. (Source: The Star)

WCT: Eyes more jobs in Qatar. WCT sees opportunities in Qatar as more infrastructure projects are expected to be implemented in preparation for 2022's FIFA World Cup. Bloomberg has reported that Qatar would spend USD57b (RM178.4b) on infrastructure developments related to the World Cup over the next decade. (Source: The Edge Financial Daily)

KPJ: Enhances medical business with takeover. KPJ Healthcare Bhd has acquired the 28-year-old Sabah Medical Centre (SMC). SMC would be KPJ's second venture in Sabah after the company took over the Damai Medical Centre five years ago. (Source: The Star)

KYM: Secures jobs from Vale. KYM Holdings Bhd has been awarded a contract valued at RM0.6m by Vale International SA for the provision of consultancy services relating to Vale's land acquisition in Teluk Rubiah, Perak. (Source: The Star)

Conglo: JCorp is not selling assets to repay RM3.6b debt. Johor Corp (JCorp) will not be selling any of its assets to repay its RM3.6b bonds due on July 31, 2012. JCorp is planning to refinance the debt instead. CIMB Bank and Maybank Investment Bhd have been appointed as the financial advisor. (Source: The Star)

Gaming: Olympia said to be keen on Pan Malaysian Pools. Olympia Industries Bhd has expressed an interest to acquire Pan Malaysian Pools Sdn Bhd from Tanjong plc. However, no formal offer has been made yet. (Source: The Star)

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RHBInvest Research

Top Story


Mamee:

• Aggressive topline growth will compromise
• Fair value at RM3.60.

Corporate Highlights


KFC:

• Fast-tracking growth in India
• Fast-tracking growth in India
• Fair value of KFCH at RM3.85
• Upgrading the stock to Market Perform from underperform previously

Kencana:

• The company’s earnings were significantly better (+26.2% qoq and +69.8% yoy) due to the start-up of its KM-1 drilling rig
• We maintain our forecasts as results were within expectations.
• Maintain Outperform call. Fair value of RM2.60/share.
  

Technical Highlights


Daily Trading Strategy:

• FBM KLCI is unlikely to launch a powerful rally to re-challenge the key resistance level at 1,524 and the historical level of 1,531.99 soon, in our view.
• In fact, we see a constant risk of the index falling below the 1,500 psychological level should the profit-taking activities persist in the near term.
• We continue to stay negative and expect the index to see more pressure on the downside

Daily Technical Watch: Media Prima

• Bargain-hunting activities near the RM2.20 key support level ...
• Immediate Support = RM2.20
• Immediate Resistance= RM2.44

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Maybank IB Views

SECTOR UPDATE
Plantations: Neutral
MPOB data: Tightening supply

Bullish for prices. Stock levels fell below trend as demand stayed strong while production began its seasonal decline. In our view, Malaysian production is likely to decline in 2010. While spot prices have surpassed our CPO ASP forecast of RM3,000/t for 2011, we believe prices could trend down as weather concerns dissipate post the passing of the year-end monsoon season.


RESULTS REVIEW
Sapura Crest Petroleum RM2.85: Buy
Eyes strategic assets; target price lifted Shariah-compliant

Target price raised to RM3.30. 3Q results yielded no surprises but we are turning even more positive on SapCrest. It has a strengthened balance sheet to expand its core businesses (i.e. IPF, marine services, drilling ops) through M&As. Maintain Buy with a higher RM3.30 target price (+8%) as we lift target PER multiple from 16x to 17x FY13 on new asset injection prospects.


Technicals
The FBM KLCI rose 6.30-points and closed at 1,507.28 last week. The obvious support areas for the FBM KLCI are located in the 1,474 to 1,507-zone. The key resistance areas of 1,510 and 1,531 may cap any rebound activity.

Trading idea for today is an Accumulate call on KFIMA.


Other Local News
GreenPacket: P1 plans to improve and upgrade its 4G WiMAX coverage to 45% of Malaysian households by year-end, with the goal of hitting 65% by 2012. P1 also planning to roll out an array of rich media services, including Voice-over-Internet Protocol and mobile video. (Source: The Star)

KrisAssets: Could buy The Gardens from IGB. KrisAssets Holdings Bhd's plan to issue RM300m in redeemable convertible bonds may be a precursor to acquire The Gardens from parent IGB Corp Bhd (IGB). The acquisition could be via cash and shares. (Source: The Edge Weekly)

Landmarks: May start Bintan development in 1Q11. Landmarks Bhd, a 30.3% associate of Genting Bhd, is expected to start its Bintan development called Treasure Bay Bintan (TBB) by the first quarter of 2011. The development has been planned since 2007. This will be Landmark's second resort development after the Andaman Resort in Langkawi. (Source: The Edge Financial Daily)

Port: Ancom's Siew submits proposal for Penang Port. Oriental Pearl Harbour (led by Datuk Siew Ka Wei of the Ancom group), in partnership with China Shipping (Group) Co Ltd (the parent of China Cosco and Cosco Corp), has submitted a competing bid for Penang port. This rivals an earlier proposition by businessman Tan Sri Syed Mokhtar Al-Bukhary. Oriental's proposition would involve an outright purchase for RM500m (with the government holding a golden share) and the absorption of future capex totaling RM2b to RM2.5b. (Source: The Edge Weekly)

UEM-EPF: Seeks tax waiver on PLUS takeover. The special purpose vehicle (SPV) controlled by UEM Group and the Employees Provident Fund (EPF) which has made an offer of RM4.60 per share for PLUS Expressways Bhd is seeking a tax waiver for PLUS's toll operations until the end of its tenure in 2030. UEM-EPF is also seeking an exemption or relief from all stamp duty, real property gains tax and other taxes and levy that may arise during the acquisition. However, the acquisition of PLUS will still proceed if UEM-EPF is unable to secure any exemptions. (Source: The Edge Weekly)

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Bought Nokia C6-01 at Price RM1180

At last, I manage to purchase this Nokia C6-01 at Giant mall Kuala Terengganu. Earlier I said the price at Giant mall was only RM1100. Sorry to said that they make their mistake told me about the price before. I bought this one about Rm1180.

Instead of purchase of HTC Wildfire I think this Nokia C6-01 looks like more robust.



The package are as below:

• Coming with a standard Nokia box.
• Screen protector.
• Charger.
• Car charger.
• USB Cable adaptor.
• Headse.
• 1 year Avaxx warranty.
• 1 soft casing purple color.
  

Now, trying some features to make sure that all function properly. Hope no defects.

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