MARC AFFIRMS ITS AAID RATING ON INSTACOM SPV SDN BHD’S RM200.0 MILLION MURABAHAH MTN PROGRAMME
Oct 29, 2013 -

MARC has affirmed the rating of Instacom SPV Sdn Bhd’s (ISPV) RM200.0 million Murabahah Medium Term Notes (MMTN) Programme at AAID with a stable outlook. ISPV, a wholly-owned subsidiary of Instacom Engineering Sdn Bhd (IESB), was set up solely to facilitate the issuance of the MMTNs to finance the purchase of completed telecommunication (telco) towers constructed by the latter. ISPV has RM15.0 million MMTNs outstanding as at September 30, 2012.

The rating on the MMTNs primarily reflects the predictable source of cash flow generated from assigned monthly lease rentals of telco towers and the credit risk of the lessees, Maxis Berhad, Celcom Axiata Berhad and DiGi Telecommunications Sdn Bhd (DiGi). The rating on the notes is weak-linked to MARC’s AA/stable public information rating on the lowest rated lessee. The contractual nature of the lease rentals continues to provide structural stability to debt service coverage. ISPV’s finance service coverage ratio (FSCR) as at December 31, 2012 was 1.36 times (x), in compliance with its FSCR covenant of 1.25x.

Based on its projected cash flow, ISPV will have sufficient funds in its finance service reserve account (FSRA) for the redemptions of its outstanding MMTNs between December 2013 and end-December 2014. ISPV has a cash balance of RM12.0 million in its FSRA as of October 7, 2013 and is expected to collect lease rental income of RM5.8 million from October 2013 to December 2014.

Sarawak-based IESB was awarded a contract for the construction of telco towers by Terengganu state-backed Desabina Industries Sdn Bhd (DISB) in April 2005, with the former having completed 84 towers. The completed towers were then leased to the mobile operators for a seven-year period under a license agreement with DISB. DISB then surrendered its rights to the lease rental payments to ISPV. ISPV is also responsible for the fairly basic maintenance of the tower sites and related infrastructure, which MARC notes significantly limits noteholders’ exposure to performance risk.

Apart from telco tower construction, IESB constructed 883 telco structures for DiGi, financed under the rated programme, for which it received lump sum payments upon completion. Nonetheless, the rating agency understands that IESB is no longer funding its telco tower or structure construction contracts with the MMTN and hence there will be no further drawdowns from the programme.

The current stable outlook on the rating reflects continued timely payments from the existing towers.

Contacts:
Ngiam Tee Wei +03-2082 2268/ teewei@marc.com.my;
Taufiq Kamal +03-2082 2251/ taufiq@marc.com.my.

This information is accurate at the time of posting

» Find available Credit Analysis Reports for Instacom SPV Sdn Bhd
Search for similar group: Construction • INSTACOM

Prcwifefe already xplain. Tq

Beginer : dont asked me. Ask mr Hoh poh seng. Why march???sooooo long to wait

March next year??????

Still cant move d price up... Ahhhhh

China presiden already here......

Already burned...... Rentung........

Not related with Asuprem....

From where get this news?????

- The IHS Petrodata monthly Offshore Rig Day Rate Index reported over the weekend that the Northwest Europe standard jackup and mid-water depth semisubmersible rig rates have risen significantly this month, reaching their highest levels over the past 3 years. The Deepwater Floating Rig Day Rate Index was also higher, while the US Gulf of Mexico 250 to 300ft segment was unchanged over the past 3 months. However rig utilisation decreased in three categories, while Northwest Europe jack up utilization levels was unchanged.

- After remaining flat over the past 5 months, the Northwest Europe Standard Jackup Day Rate Index surged by 54 points month-on-month (MoM) in September to 644 points- the highest index level recorded for the segment since March 2009. Fleet utilisation was unchanged MoM and year-on-year (YoY) at 95%.

- The IHS Petrodata Mid-Water Depth Semisubmersible Day Rate Index rose by 76%-point Mom to 1,062 points in September 2013. While this is the highest over the past 3 years, it is still below the segment’s all-time record of 1,074 back in July 2009. Fleet utilization fell by 5%-point MoM and 6%-point YoY to 73%.

- The US Gulf of Mexico 250 to 300ft Jackup Day Rate Index remained at the same level at 535 points over the past 3 months, but this is still 75 points higher YoY. Utilisation for this category dropped by 11%-point MoM to 60%, but this is 2%-point up YoY. The Deepwater Floating Rig Day Rate Index rose by 28 points MoM to 918, just 4 points down YoY, with utilization sliding by 1%-point MoM to 97%.

- These improving rig rates augur well for the listing of UMW Oil & Gas, rescheduled to November this year, which is expected to reach prospective earnings multiple of over 20x. UMW Oil & Gas is currently the only domestic operator of jackup and semisubmersible rigs. Other operators are also hoping to move into the jackup rig segment, including Perisai Petroleum, Coastal Contracts and Alam Maritim Resources. Tanjung Offshore, which had earlier disposed off its offshore support vessel division to Ekuinas, is currently looking at acquiring two semisubmersible rigs, which could be potentially worth up to RM1bil, from Oslo-listed Songa Offshore.

- We maintain our OVERWEIGHT call on the sector as newsflow momentum is poised to gain traction, with new orders having surged by 2.2x QoQ to RM17bil in 2Q2013. In the short- to medium-term, excitement in the sector will still largely stem from the larger field projects in Malaysia such as the enhanced-oil recovery projects and gas cluster developments for the North Malay basin, as well as in Sabah and Sarawak which are tied to the completion of the Bintulu LNG complex expansion in 2015.

- We maintain our OVERWEIGHT call on the sector with our top pick being SapuraKencana Petroleum while our other BUYs are Alam Maritim, Bumi Armada, Dialog Group and Petronas Gas.

Any news......

More confuse.......

Limawarty, what do u meant?????

Sudah kena UMA...... Alamak

Tak mau gerak la....

Property development to play significant role for Salcon
icy 2013-09-18 1:52 52 Views Font： [ A- A A+ ]
Salcon Bhd expects its property development business to overtake its water and wastewater services business in a year or two.

Executive director Datuk Eddy Leong said this was due to higher volatility in the water business.

He said there could be periods of draught and “ if we have the projects lined up, we could start to see more consistent earnings,” he said at a briefing yesterday held in conjunction with its signing ceremony with Beijing Enterprises Water Group Ltd to dispose of its entire investment in China.

Salcon is selling six of its water assets in China to Beijing Enterprises Water Group for a total of 955 million yuan (RM518.3mil). Together with its joint venture company Salcon Water (Asia) Ltd, it entered into two sale and purchase agreements (SPAs) with the Hong Kong listed Beijing Enterprises Water Group.

The first SPA is between Salcon, Salcon Water (Asia), and Beijing Enterprises Water Group for the disposal of Salcon Fujian (HK) Ltd, Salcon Zhejiang (HK) Ltd, Salcon Linyi (HK) Ltd, and Salcon Shandong (HK) Ltd for 88 million yuan, 150 million yuan, 130 million yuan, and 280 million yuan respectively.

Meanwhile, the second SPA is between Salcon and Beijing Enterprises Water Group for the disposal of Salcon Darco Environmental Pte Ltd for 212 million yuan and Salcon Jiangsu (HK) Ltd for 95 million yuan.

Once the exercise is completed, Salcon will bring in RM284mil in cash and will contribute RM94.6mil to the group’s profit. Leong said the disposal unlocks the value of its investments in China.

“After the sale of the assets, we will literally have zero borrowings. There are lots of opportunities for us to invest our money. We will take our time to look for good deals,” he said.

The proceeds from the disposal will also fund the expansion of its landbank expansionin Klang Valley, Johor and Penang.

The disposal of the group’s China assets allows Salcon to retain a healthy balance sheet with improvements on its earnings per share from 2.21 sen to 16.9 sen, and net asset per share from 80 sen to 91 sen.

The entire disposal consists of six concessions, one waste water concession and two raw water concessions located in the Fujian Province, Zhejiang Province, Jiangsu Province and Shandong Province.

The company also announced that via its 50% owned subsidiary Nusantara Megajuta Sdn Bhd, it has signed a letter of intent with Eco World Development Sdn Bhd to jointly develop two pieces of land in Johor Baru.

Salcon had acquired the two pieces of land amounting to 51,476 sq m via Nusantara Megajuta for RM99.7mil.

The estimated mixed development project will comprise retail outlets, serviced residents and strata shop-cum-apartments, and is scheduled for launching next year. Leong said he expects the gross development value of the project to be more than RM1bil.

The joint development will entail Eco World Development acquiring 100% shares of Kembar Makmur Sdn Bhd, which owns the remaining 49.99% shares in Nusantara Megajuta.A shareholders agreement with Kembar Makmur is expected to be executed in a month’s time to formalise the agreement.

About Eco World Development

Eco World plans RM30bil projects
Who’s who in Eco World
Company draws its experience from ex-S P Setia personalities
Eco World out to make an impact in property sector
(Source: thestar online – Business)

SALCON BERHAD (“SALCON” OR THE “COMPANY”) PROPOSED DISPOSALS OF THE ENTIRE EQUITY INTERESTS HELD IN THE FOLLOWING: (I) SALCON DARCO ENVIRONMENTAL PTE LTD; (II) SALCON JIANGSU (HK) LIMITED; (III) SALCON FUJIAN (HK) LIMITED; (IV) SALCON ZHEJIANG (HK) LIMITED; (V) SALCON LINYI (HK) LIMITED; AND (VI) SALCON SHANDONG (HK) LIMITED
SALCON BERHAD (“SALCON” OR “COMPANY”) LETTER OF INTENT
（By icy, Copyright © LearnInvest)
icy @LearnInvest
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Ok bosssss.... Blh la.... But not like big2 sharks

Cant move already...... Whatever news......

Still not movinggggg!!!!!!!!

Alam Maritim Resources Bhd has been awarded an estimated RM39m contract to provide underwater services for a local oil and gas company. In a filing with Bursa Malaysia, the company said the contract was for 30 years, with an option to extend to a maximum of 21 days. It said the estimated value of the contract was inclusive of the optional period, if exercised by the client. (Starbiz)


Source: CIMB Daybreak - 18 September 2013

not moving at alllllll

SALCON is scheduled to launch a RM1bil mixed development project in Johor next year, a project it is jointly developing with Eco World Development Sdn Bhd , a Co linked to SP SETIA BHD's Tan Sri Liew Kee Sin.

SALCON, meanwhile has tendered for RM1.7bil of projects, which include the Langat 2 water treatment plant.

The future of SALCON looks bright if it is under the stewardship of Tan Sri Liew Kee Sin, who is expected to leave SP SETIA BHD by year 2015 as contractually agreed with Khazanah Nasional Bhd.

Rm2.50

the sun : Salcon disposes of 6 water firm in China for RM518 Millions

profit taking. traders all selling now......

Msuk skrg sure kena......

Obama : Senat to postponed voted on strike (BTV - Astro)

Obama : Pause strike on Syria (BTV - Astro)

Suddenly all stop.... Wat happen?????

Already miss morning "Rushing" trade time.....

37 mill trade only move 0.01.... Come on.......

Alam with little bt of energy.... Hopefully can go further up

Manyak untung maaaa.....

Can't wakeup already..... Toooo tired....

Naik pening......

Whatever news still maintain @ 0.23 o 0.235. Even most active counter still remain d same price. If other counter sure already up

Meaning???????

Maintain BUY and MYR1.90 TP. OSV hiring momentum is strong, in tandem with the intensification of drilling plans, improving prospects for local vessels. These MYR37m new contracts take Alam’s YTD OSV job wins to MYR818.9m. Our forecasts are unchanged, which has upside if Alam is to acquire and charter out new OSVs or secure more Inspection Repair Maintenance (IRM) jobs later this year. We retain our BUY call and MYR1.90 TP, pegging the stock to a target FY14 PER of 15x, implying an FY14 PBV of 2.1x vs its 8-year +1SD of mean PBV of 2.xx.

MYR37m contracts. Alam has clinched 2 OSV charters, comprising 1 AHTS and 1 SSV, with tenures of 12 plus 6 (extension option) months and 12 plus 12 months respectively. We believe these vessels would be deployed from Alam’s associate or JV units; they are newer vessels and thus more competitive. The total contract value of MYR37m equates to an estimated daily charter rate (DCR) of USD1.80/bhp (based on a USDMYR rate of 3.30) for both vessels, comparable to the market rate for the 5,000bhp series.

Maintaining forecasts. Assuming a 25% net margin, we estimate the 2 contracts would earn Alam MYR4.6m in associate profits over the contract tenure. We make no change to our forecasts as we have modelled wins for Alam’s associate and JV vessels. A re-rating that we look forward to is a decisive turnaround in Alam’s OIC and underwater services units, which would see Alam emerging as an established offshore construction and installation services provider.

Expect a newsflow-driven 4Q13. Alam stands to benefit from; 1) another wave of OSV charter awards, 2) IRM job tenders, estimated to be worth a total of MYR1.1b-1.6b over 3-4 years and 3) new bids for the next round of Pan-Malaysia T&I umbrella contracts reportedly worth a total of MYR3b-5b and executable over 2-3 years. We believe Alam is bidding for these contracts, which are to be awarded in 3Q-4Q13/1Q14.

Source: Maybank Research - 4 Sep 2013

Got new contract RM37 Million..... Up...... Up.........up

Yeah..... Soooo confident

What stock bro..... If can share la....

Hopefully tmrow can booommmm.......

Still can buy with d current price??????

STAR today, "Last Tuesday, Kinsteel Bhd secured d latest xclusive rights to mine iron ore n others minerals on 500 Acres at Kuala Lipis"........