Maybank IB Views

COMPANY UPDATE
Lafarge Malayan Cement RM6.85: Buy
A strong proxy to construction sector

Maintain Buy. As the largest cement producer in the country, LMC is undoubtedly a proxy to, and a major beneficiary of, the high growth construction sector, which in itself, should see robust activity, once projects under Economic Transformation Programme (ETP) take off. Additionally, we expect its share price to be supported by its decent net dividend yield of 5%. Maintain Buy with a marginally lower TP of RM7.60 (RM7.85 previously) on 17x 2013 PER as we roll forward valuations after trimming earnings forecasts by 11% p.a..

UMW Holdings RM6.60: Hold
Bareboat charters Hakuryu-5 to PCSB

Maintain Hold. UMW's USD72m bareboat charter contract of Hakuryu-5 to PCSB, which yields low margin, is earnings neutral to Group earnings (<1%). As such, we are keeping our forecasts and RM6.60 target price unchanged, based on 11x 2012 EPS.

ECONOMICS
ETP Update
One year after

The latest ETP briefing (1 Nov 2011) by PEMANDU provided three key updates. First, of the 70 EPPs and 27 initiatives announced so far, 31% are fully operational, 50% have commenced implementation, and 17% are still work-in-progress. Second, of the RM171b investment announced to date, 9% or RM15b is implemented in 2011, including RM10b actualised in 1H 2011. Third, private investment in 1H 2011 was RM51.2b, meaning 19.5% of it came from ETP.

ETP Progress Updates 1-7
Implementation Update

Provided by PEMANDU on the official website.

RESULTS REVIEW
Sunway REIT RM1.14: Buy
Sequentially stronger

On track. SunREIT's RM44.2m 1QFY12 net profit tracked our and market expectations. Longer-term view is positive supported by Sunway Putra Place's (SPP) attractive est. 9% property yield. We maintain our earnings forecasts, RM1.18 DCF-based TP and Buy call, the latter premised on a 12-month total return of 10% based on our target price and forecast dividends.

Technicals
The FBM KLCI fell 16.25-points to close at 1,475.64 yesterday. Its resistance areas of 1,475 and 1,494 will cap market gains, whilst the weaker support areas may be located at 1,446 and 1,470. Due to the US markets’ much lower tone last night; we may see an initial drop for the index. Some later miniscule local bargain hunting activities cushion the local markets’ plungein the afternoon session. We expect a very volatile trading day.

Trading Idea is a take profit call on CBIP.

Other Local News
SapuraCrest: Wins RM4.4b Brazilian oil and gas job. SapuraCrest gas clinched a contract from Petroleo Brasileiro SA worth about USD1.4b (RM4.4b) to charter and operate three deepwater flexible pipe-laying supports vessels (PLSVs).Revenue from the award was expected to be generated by the fourth quarter of 2014. (Source: Bursa Malaysia)

Supermax: Declares 1 for 1 bonus. Supermax Corp has proposed a one-for-one bonus issue involving 340.1m new shares and a share buyback of up to 10% of its issued share capital. Both proposals are expected to be completed by the first quarter of 2012. (Source:Bursa Malaysia)

DiGi: Capital Management Initiative. DiGi is expected to distribute about RM509m to its shareholders by the first half of 2012 under the proposed capital distribution upon its redemption of the redeemable preference shares of about RM509m. (Source: Bursa Malaysia)

TNB: Gas shortage for 2-3 months more. TNB will have to deal with losses caused by having to substitute costly fuel oil for power generation as the government decides that electricity prices will remain unchanged. TNB has been buying fuel oil to replace natural gas for electricity generation, which will cost the company an additional RM2.1b for the second half of 2011. (Source: Business Times)

Telekom: Tough procurement policy saves RM1b. The massive RM11.3b high-speed broadband (HSBB) project may eventually cost Telekom Malaysia Bhd (TM) at least RM1b less in expenditure than its original costing because it has implemented a tough procurement policy. (Source: The Star)

Aviation: SIA targets mid-2012 Scoot takeoff. SIA new long-haul budget carrier will be renamed “Scoot” with takeoff set for mid-2012. The new carrier will fly to cities in China and Australia, operating a fleet of 200 second-hand Boeing 777 jets and charging up to 40% less than full-service airlines. (Source:The Edge Financial Daily)

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Stocks to watch: DiGi, IOI, Supermax, YTL

KUALA LUMPUR: Stocks on Bursa Malaysia could extend their gains in light trade on Tuesday, Oct 25, in line with the firmer markets as investors pinned their hopes for a resolution to the euro debt crisis.

However, with the Deepavali holidays on Wednesday, there could be some profit taking later in the day.

The markets would also be seeking more clarity from the summit on Wednesday as the EU meeting over the weekend yielded no firm decisions, although the structure of the policy response has now begun to take shape.

A report from The Royal Bank of Scotland research said EU Finance Ministers agreed over the weekend that European banks could need to find 108 billion euros in fresh capital over the next six to nine months with an announcement reportedly set for Wednesday.

“However, this falls somewhat short of the IMF's 200 billion euros estimate. It was also confirmed that the ECB will not be utilised to increase the fire-power of the Euro-zone bailout fund.

“Instead, a special fund may be set up to attract global investors, possibly including the IMF, which would then buy bonds of struggling Euro-zone countries. This could run in parallel with another fund insuring against losses of up to 20% by bondholders,” it said.

Among the stocks to watch are DIGI.COM BHD [], IOI Corp Bhd, Supermax Corp Bhd and YTL Group.

DiGi.com’s earnings rose just a marginal 1.08% to RM292.44 million in the third quarter ended Sept 30, 2011 from RM289.31 million a year ago. The telco said the flat earnings were due to higher depreciation and amortisation while average revenue per user (ARPU) dipped.

An increase in data revenue pushed turnover up by 12.6% to RM1.52 billion from RM1.35 billion. Earnings per share were 37.6 sen compared with 37.20 sen a year ago.

DiGi declared an interim single-tier tax exempt dividend of 37 sen per share for financial year ending Dec 31, 2011 on Dec 8. Depreciation and amortisation was RM306.08 million in 3QFY11 compared with RM196.69 million a year ago.

IOI Corp expects its financial performance for the current financial year ending June 30, 2012 (FY2012) to be better than FY2011. The optimism was based on the improved profitability in its resources based manufacturing division, underpinned by lower crude palm oil prices.

The PLANTATION [] giant also expected crude palm oil (CPO) prices to rise above RM3,000 per tonne in the next three months due to the drop in production amid increasing overseas demand.

IOI chairman Tan Sri Lee Shin Cheng said the rainy season coupled with a labour shortage is expected to derail production of fresh fruit bunches in the next six months, despite increasing demand from China, India and Pakistan.

Supermax’s net profit fell 18.9% to RM30.91 million in the third quarter ended Sept 30, 2011 from RM38.11 million a year ago, affected by the higher natural rubber and nitrile latex prices.

However, it said although profitability is lower than last year, it is seeing positive signs for a rebound after recording a second consecutive quarter of core profit growth. Supermax’s revenue was however higher at RM271.42 million, up 15.4% from RM235.10 million.

For the nine-month period, earnings fell 42.5% to RM77.86 million from RM135.44 million. Revenue rose 8.7% to RM750.71 million from RM690.58 million.

YTL Communications Sdn Bhd (YTL Comms) has submitted its business plan to Malaysian Communications and Multimedia Commission (MCMC) to secure spectrum licences to roll out its Yes 4G mobile internet-with-voice service in Sabah and Sarawak.

Its chief executive officer, Wing K. Lee, said the company was currently awaiting feedback from MCMC. "MCMC will review the plan and give us the feedback," he added.

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Stocks to watch: Mudajaya, Fitters, Maybank, Supermax

KUALA LUMPUR: The markets may see some tentative recovery on Tuesday, Aug 23 after the selling on Monday, as investors scout for fundamentally strong companies despite the current uncertainties globally.

The fresh batch of results in the quarter ended June 30 should provide the data investors need to make their decisions, for instance companies like QL RESOURCES BHD [] and smaller cap stock like FITTERS DIVERSIFIED BHD [] which are beginning to reaping the benefits of their palm oil and renewable energy ventures.

MALAYAN BANKING BHD [] did not disappoint as its earnings rose 26.5% to RM1.15 billion in the fourth quarter ended June 30, 2011 from RM912.47 million a year ago.

However, glove maker Supermax Corp Bhd reported a decline in earnings due to continuously high volatility in latex prices and unfavourable exchange rates.

Stocks to watch are Mudajaya Corp Bhd, Fitters, Maybank and Supermax. Other companies with fresh corporate news are Prestariang Bhd, KNM GROUP BHD [] and Guocoland Bhd while JCY International continued to disappoint investors.

Mudajaya clinched a RM720 million contract for the design and civil works for part of the Manjung power plant.

Its unit had signed a subcontract with CMC Machipex Sdn Bhd for the detailed design and CONSTRUCTION [] of all civil works associated with the balance of plant component of Manjung No. 4 power plant project.

Fitters’s earnings were given a boost by its renewable energy and palm oil business in the second quarter ended June 30, with net profit at RM4.58 million, up 100.8% from RM2.28 million a year ago.

Its revenue surged 233.7% to RM116.70 million from RM34.96 million a year ago while earnings per share were 2.12 sen compared with 1.13 sen.

QL Resources Bhd’s earnings edged up 3.7% to RM27.79 million in the first quarter ended June 30, 2011 from RM26.79 million a year ago.

Its revenue increased 18.2% to RM454.56 million from RM384.51 million. Earnings per share were 3.34 sen compared with 3.43 sen.

It said the higher revenue was due to the marine product manufacturing at RM104.66 million, palm oil activities RM114.85 million and integrated livestock farming RM235.05 million.

Maybank's earnings rose 26.5% to RM1.15 billion in the fourth quarter ended June 30, 2011 from RM912.47 million a year ago.

It said the financial performance was boosted by income from its Islamic banking and also its insurance business also also lower allowance for losses on loans, advances and financing

Maybank’s revenue increased by 20.9% to RM5.72 billion from RM4.73 billion. Earnings per share were 15.54 sen versus 12.89 sen a year ago. Its board of directors proposed dividend of 32 sen per share compared with 44 sen a year ago.

Prestariang secured a RM28 million contract from the Ministry of Higher Education to implement the 1Citizen Certification provide “IC Citizen” training and certification in all public and selected private higher learning institutions.

The programme was expected to run for 24 months from its official start date and would cater to 80,000 students from 20 identified public institutes of higher learning including universities, polytechnics and community colleges in Malaysia, as well as selected private institutes of higher learning.

Supermax saw its earnings slip 50.6% to RM22.64 million in the second quarter ended June 30 from RM45.85 million a year ago as profit margins were eroded owing to continuously high volatility in latex prices and unfavourable exchange rates

Revenue dipped 1.3% to RM237.92 million from RM234.82 million while earnings per share were 6.66 sen compared with 13.51 sen. It did not declare any dividends unlike a year ago when it paid out 2.5 sen a share.

For the first half, its net profit slumped 51.7% to RM46.96 million from RM97.33 million in the previous corresponding period but its revenue was 5.2% higher at RM479.29 million compared with RM455.47 million.

KNM’s net profit for the second quarter ended June 30, 2011 fell 23.2% to RM10.86 million from RM14.14 million a year earlier, due to slower improvement in capacity utilisation in certain operating units. Revenue for the quarter rose to RM544.30 million from RM383.21 million in 2010 due to higher revenue recognition. Earnings per share was 1.11 sen while net assets per share was RM1.83.

For the six months ended June 30, KNM’s net profit fell 45.1% to RM29.87 million from RM54.48 million in 2010, on the back of revenue RM957.30 million.

Guocoland’s fourth quarter earnings rose 94.6% to RM22.34 million from RM11.47 million, boosted by higher share of results from associates and improved profit from its property development division.

Revenue increased by nearly 95% to RM58.48 million from RM30.02 million while earnings per share were 3.33 sen versus 1.71 sen. It proposed dividend payment of 2.0 sen a share.

For the financial year ended June 30, 2011, its net profit rose 42.9% to RM19.96 million from RM13.96 million while revenue declined 11% to RM142.77 million from RM160.52 million.

Hard-disk drive manufacturer JCY posted net loss RM31.86 million in the third quarter ended June 30, 2011 compared to net profit RM55.59 million a year earlier due mainly to higher raw material prices, inventory provision from depreciating US dollar and slow moving stocks.

Revenue for the quarter fell 17.8% to RM395.17 million from RM480.79 million a year ago. Loss per share was 1.56 sen compared with earnings per share of 2.72 sen.

For the six months ended June 30, JCY posted net loss RM11.89 million compared with net profit of RM198.94 million in 2010. Its revenue was RM1.23 billion compared with RM1.56 billion a year ago.

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Supermax, Top Glove up in early trade

KUALA LUMPUR: Shares of Supermax and Top Glove rose in early trade on Thursday, July 7 after CIMB Research rated both the stocks as technical Buys.

At 9.35am, Supermax rose seven sen to RM3.87 while Top Glove added four sen to RM5.48.

CIMB Research has a technical Buy on Supermax Corp at RM3.80 at which it is trading at a FY12P/E of 8.3 times and price-to-book value of 1.8 times.

The research house said on Thursday, July 7 that since its previous call on Supermax on June 2, prices have rebounded to a high of RM4.00 before succumbing to profit taking.

However, Wednesday’s long white candle on rising volume may be a sign that the bulls are ready to kick start another rally.

“With both the indicators reconfirming their buy signals, we think that there is a good chance of a decent rally in the near term,” it said.

It said traders may opt to buy now with a stop placed below the recent low of RM3.70. They could also place their stop below the RM3.60 mark. A push past the recent RM4.00 high is likely to send prices shooting towards its 200-day SMA at RM4.20 next. It also has potential to reach as high as RM4.52 in the longer term.

Meanwhile, CIMB Research has a technical Buy on Top Glove Corporation at RM5.44 at which it is trading at a FY12P/E of 17.0 times and price-to-book value of 3.1 times.

It said Top Glove broke out of its consolidation triangle on Wednesday. Although prices pulled back a tad at the close, prices remained above the triangle resistance turned support level of RM5.38.

“Both indicators are rising, supporting a positive outlook for the stock in the near term. The RSI has yet to reach the overbought region, suggesting that there is still room on the upside.

“Traders should jump in and buy now to try to ride on this breakout run. We expect prices to nudge higher towards RM5.87-RM6 once the RM5.58 minor resistance gives way. Only a fall below the RM5.24 support would trigger our stop loss,” it said.

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Stocks to watch: O&G, Kencana, Dialog, Sealink, Supermax, DRB-Hicom

KUALA LUMPUR: Stocks on Bursa Malaysia, especially oil and gas (O&G) counters and related industries are expected to continue see strong trading interest in the week ahead, starting on Monday, May 16.

The interest would be underpinned by Petroliam Nasional Bhd’s RM60 billion investments in the refinery and petrochemicals integrated development (RAPID) project in Pengerang, south Johor.

However, overall marketing trading could be slower due to the holiday-shortened week and the cautious overnight close on Wall Street.

US stocks ended a second week of losses on a down note Friday, May 13 reflecting growing worries that stocks are on the precipice of a pullback.

Concern about slowed growth worldwide, the coming end of a supportive Federal Reserve policy and the fear of a worsening euro-zone debt crisis are undermining the stock market's ability to maintain an upward direction.

The Dow Jones industrial average ended down 100.17 points, or 0.79 percent, at 12,595.75. The Standard & Poor's 500 Index finished down 10.88 points, or 0.81 percent, at 1,337.77. The Nasdaq Composite Index fell 34.57 points, or 1.21 percent, at 2,828.47.

For the week, the Dow was down 0.3 percent, the S&P 500 was off 0.2 percent and the Nasdaq was barely up at 0.03 percent.

Meanwhile, Petronas’ refinery and petrochemicals integrated development (RAPID) project will comprise a crude oil refinery with capacity of 300,000 barrels per day, a naptha cracker that will produce about three million tonnes of ethylene, propylene, C4 and C5 olefins annually, and a petrochemicals and polymer complex that will produce differentiated and highly specialised chemicals. The capacity of the project will be bigger than the current combined production in Kertih and Gebeng.

Stocks in focus would include DIALOG GROUP BHD [] which had received the Johor government’s approval to reclaim and use the site in Pengarang for the proposed RM5-billion independent deepwater petroleum terminal. It said the combined investment in the project is estimated at RM5 billion over a seven-year period.

KENCANA PETROLEUM BHD is buying Allied Marine & Equipment Sdn Bhd (AME) for RM400 million in its move to become a fully integrated offshore services player.

The company said the purchase of AME would be a share swap, where it would issue 149.25 million new Kencana shares at RM2.68 a share. The vendors of AME are Worldclass Inspiration Sdn Bhd and Allied Asset Holdings Sdn Bhd.

Kencana’s total order book increased to RM2.44 billion after it was recently awarded a RM250 million contract from Sarawak Shell Bhd

The Edge weekly reports that offshore vessel builder and charterer SEALINK INTERNATIONAL BHD is looking to raise at least RM30 million from a placement exercise as it plans to expand its chartering vessel fleet and increase shipbuilding activities.

Glove maker Supermax Corp Bhd’s earnings fell 52.6% to RM24.40 million in the first quarter ended March 31, 2011 from RM51.47 million a year ago as its margins were eroded by high latex prices and the weaker US dollar. Revenue rose 9.4% to RM241.37 million from RM220.65 million a year ago while earnings per share declined to 7.18 sen from 18.97 sen.

DRB-HICOM BHD is exploring a potential merger of its 70%-owned Bank Muamalat Malaysia Bhd and Bank Islam Malaysia Bhd but there are no plans to sell its Bank Muamalat stake.

The company submitted a letter of expression of interest to BIMB HOLDINGS BHD (BIMB) to explore a potential merger of the two banks and “has yet to commence any exploratory discussions with BIMB”.

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Maybank IB Views

RESULTS REVIEW
Malaysia Airports Holdings RM6.20: Buy
Accountants and Taxman Spoilt an Otherwise Fantastic Year!

Below estimate. RM378m (+0.4%YoY) 2010 recurring net income was 12% below our forecast and 2% above of consensus. There was a host of accounting treatment items and a substantially higher than statutory tax rate which masks the true performance of an otherwise a fantastic year. Nonetheless, we look forward to a promising 2011 as we enter the fourth year of the aviation up-cycle underpinned by strong GDP growth, global trade and tourism boom. Maintain Buy, no change to our RM7.12/share DCF-based target price.


IOI Corporation RM5.71: Hold
Largely priced in Shariah-compliant

In line. RM920m 1HFY11 recurring net profit (+14% YoY) is 45% of our full-year forecast. Reported RM1.02b net profit (+8% YoY) is also within street's expectations at 46% of consensus full-year estimate. We raise our FY11 net profit forecast by 9% after imputing for stronger average CPO price of RM3,500/t in 2H (1H: RM2,800/t). Our sum-of-parts based target price is marginally lifted to RM6.35 (+5sen).


Dialog Group RM2.13: Buy
On track Shariah-compliant

Pengerang CTF & marginal field projects are catalysts. Dialog's 2QFY11 net profit of RM36m (+9% QoQ) took 1H earnings to RM69m (+24% YoY), on track to meet our forecasts. We remain optimistic about Dialog's long-term growth prospects, driven by its CTF projects in Pengerang. Dialog is also touted to be in the running to co-develop PETRONAS' marginal field projects, a major positive in our view. Maintain Buy with an unchanged RM2.60 SOP target price.


Technicals
The FBM KLCI traded mixed to finally close higher by 0.97 points to 1,506.30 yesterday. Its resistance areas of 1,506 and 1,541 will cap market gains, whilst the weaker support areas are located at 1,480 and 1,504.

Trading idea for today is a TAKE PROFIT call on MEGB.


Other Local News
Sime Darby: To challenge suit by Abu Dhabi firm. Sime Darby Engineering Sdn Bhd (SDE), a wholly-owned subsidiary of Sime Darby has confirmed that Emirates International Energy Services (EMAS) has indeed filed the suit against the company and vowed to challenge the suit. EMAS has written a letter to SDE claiming compensation in the amount of USD20m for not accepting several projects EMAS had identified for SDE. However, SDE stressed that it was under no obligation to accept EMAS's recommendations and had no time bound requirements to decline EMAS's recommendations. (Source: Bursa Malaysia)

QL Resources: Boilermech gets nod to float on Ace Market. Boilermech Holdings Bhd (BHB), an indirect associate company of QL Resources, has obtained approval to list on the Ace Market of Bursa Securities. (Source: Bursa Malaysia)

Green Packet: Defers Ebitda-breakeven target to end-2011. Green Packet Bhd has deferred its target of breaking even at the Ebitda level to the end of this year as opposed to the first quarter of 2011. The deferment was due to the more competitive environment and lower price point in the nomadic (portable) broadband segment. (Source: The Edge Financial Daily)

Ramunia: Azizul pares down stake in Ramunia. Ramunia Holdings Bhd's major shareholder Datuk Azizul Rahman Abdul Samad has pared down his stake significantly recently, raising speculations that he may exit the group soon. Azizul indirect shareholding in Ramunia fell to 73.3m shares, representing 11.06% stake, from 14.3% or 94.7m shares as at Dec 30, 2010. (Source: The Edge Financial Daily)

Supermax: Counts on new income stream. Glove maker Supermax Corp Bhd is banking on a new income stream derived from global sales and marketing network to mitigate any effects of higher production cost. The company would aggressively globalise its operations via its network of about 700 distributors worldwide. The new income stream is expected to contribute 5% of its 2011 net profit. (Source: The Star)

Metro Kajang: To buy plantation land in Kalimantan. Metro Kajang Holdings Bhd is in negotiations to acquire 20,000ha of plantation land in East Kalimantan. The acquisition could double the size of its plantation land bank which measures about 16,000ha at present. Metro Kajang expects to see contributions from its oil palm venture in 2012, when it will contribute 20% to group revenue. (Source: The Edge Financial Daily)

Utilities: Govt no to coal power plants in Sabah. The government has agreed not to build coal-fired power plants in Sabah. The proposed construction of the plant in Felda Sahabat, Lahad Datu, to meet electricity supply needs in Sabah's east coast had previously received objections not only from local non-governmental organizations but also international activists. (Source: The Edge Financial Daily)

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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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