Investors should re-focus on Malton’s fundamental value as well as the
potential M&A catalysts following the recent share price retracement.
Leveraging on the success of the Bukit Jalil City project, the upcoming
Duta Park project could be its next property sales driver. Meanwhile, while
rumours of M&As have subsided, we still think the idea is viable and
should benefit shareholders if Malton/WCT/Pavilion Group are to merge.
Their combined presence, as a whole, could potentially pose as a threat to
other top-tier developers and construction players.
Fundamentals remained unchanged. Malton’s stock saw aggressive profittaking
over the past few months, partly due to the twist in events for Bandar
Malaysia. As its management has already announced that the company is not
in discussions with Dalian Wanda (Dalian) and Employees Provident Fund
(EPF) in bidding for the Bandar Malaysia project earlier, we believe investors
should refocus on its fundamental value as well as the potential M&A catalyst.
Last block in Bukit Jalil City is selling fast. Three years since the first launch
in 2014, the sellable portion in Malton’s Bukit Jalil City project has reached
almost the end. This is considered fast, amidst the softening property market –
on top of the fact that the sellable area has a sizeable GDV of about MYR2.5bn.
The last block (second block in The Park 2) was just launched last month.
Malton was still able to lift its ASP to MYR850 psf (post discount), vs an ASP of
MYR800 psf for the first block in The Park 2. Demand remains strong, and
management expects the take-up rate for the latest block to hit 70-80% soon.
As the entire development is gradually taking shape, and further boosted by the
opening of KL Sports City in the vicinity, confidence levels in the Pavilion Bukit
Jalil City Mall would likely be high. This should help Malton secure a funding
partner for the mall soon. We expect some disposal gain to be realised.
Launching Duta Park as scheduled. The success of the Bukit Jalil City project
should benefit Malton’s next launch of its Duta Park project at Jalan Kuching by
end-2017. A preview was held in end-September. Phase 1 of the project has a
GDV of MYR600m, comprising 840 units of service apartments. The indicative
ASP of MYR650-700 psf is within the current market price for primary projects.
Still a potential M&A target. 2017 has, so far, been a vibrant year for M&As,
particularly for the property sector. Although the media reported the possibility
of a Malton-WCT merger some time ago, we think this M&A catalyst is still on
the cards. The merger makes sense – the combined entity would be much
stronger in both the property development and construction. Also, WCT had
previously indicated its intention to tie up with some top China contractors to bid
for construction jobs domestically. Given the scope of work required in some of
the upcoming major projects in Malaysia such as Bandar Malaysia, the highspeed
rail and the East Coast Rail Line (ECRL), opportunities are aplenty.
Valuations. We have an indicative valuation of MYR1.78 for Malton, based on
a 40% discount to RNAV. Near-term earnings would be underpinned by
MYR1.08bn in unbilled sales and a MYR780m outstanding construction
orderbook.

Hibicus already up, next is this? Both share same oil field

DNeX Petroleum Sdn Bhd, In the second quarter 2016 (“2Q 2016”), DNeX through wholly-owned subsidiary company acquired a 30 per cent of enlarged issued share capital in Ping Petroleum Limited (“Ping”). Through the acquisition, DNeX has 15 per cent effective equity interest in producing Anasuria cluster, a fully operating oilfield in the North Sea, UK cluster for a total consideration of USD10.0 million. The Anasuria cluster is owned equally by Ping and Hibiscus Petroleum Berhad. Along with the completion of OGPC acquisition, the new Energy business is able to contribute a new stream of revenue to DNeX in addition to synergistic business within the Group

If Hibicus is worth RM1.06. then what about Dnex?

DNeX Petroleum Sdn Bhd, In the second quarter 2016 (“2Q 2016”), DNeX through wholly-owned subsidiary company acquired a 30 per cent of enlarged issued share capital in Ping Petroleum Limited (“Ping”). Through the acquisition, DNeX has 15 per cent effective equity interest in producing Anasuria cluster, a fully operating oilfield in the North Sea, UK cluster for a total consideration of USD10.0 million. The Anasuria cluster is owned equally by Ping and Hibiscus Petroleum Berhad. Along with the completion of OGPC acquisition, the new Energy business is able to contribute a new stream of revenue to DNeX in addition to synergistic business within the Group

Genting Singapore has run up 26% this year, Genting only up 8%. Time for a rally!

We initiate coverage of Bison Consolidated Berhad, a retail convenience store company, with a Buy rating and a TP of MYR2.25 based on 27x FY17F P/E. We like the stock for three key reasons:

We like the retail convenience store (CVS) space in Malaysia, as we think that this sub-sector has more room for growth, mainly due to: 1) stores per million people are still 5-15% / >60% underpenetrated versus regional / global peers (Fig. 21), and 2) fast-growing average sales per outlet in the CVS space (4% CAGR over FY12-15) as compared to modern grocery retailers (-4% CAGR over FY12-15).

While management currently guides an expansion of 70 stores per year (accounting for c. 80% of sales growth), we think that new stores could potentially be opened faster should quality locations with higher footfall be made available. There are currently two MRT lines and one LRT line planned in Malaysia. They would be expected to be opening over 2017-25F, potentially adding more space for CVS.

We expect gross margins to improve c. 150bps over the next three years to 35.7%, as management focuses on shifting its product mix to higher-margin food and beverages, fresh foods and non-food items. Furthermore, higher-margin segments such as advertising and promotions should increase proportionally to the increase in store space.

Higher valuations are justified with the stronger growth prospects.
While Bison currently trades at c. 20x FY17F P/E, versus the Malaysia consumer sector median of 18x, we believe it is justified on a FY17F PEG basis (0.7x vs sector median of 2.1x) given the potentially higher margins as well as stronger earnings growth due to the expansion of its store network. We further believe a full re-investment of IPO proceeds could also fuel a re-rating.

Because of leverage, the warrant will follow the mother and move even more. When Genting opens the theme park in 2017. Should rebound.

Budget coming. More funding for education sector

Recently,YINSON board of directors have been reshuffled including three resignations (1
executive director and 2 independent non-executive directors), re-designation of
Mr Lim Han Joeh as non-executive director from executive director and
appointment of four new directors, namely Dato' Nasir (EPF), Datuk Raja
Zaharaton (ex-EPU), Dato' Wee (finance) & Datuk Syed Zaid (legal expert).
YINSON is looking to appoint one more director with oil and gas experience to
join the board. We are positive on the new appointment as it provides diversified
skills and experience to the company.

Commercial offers to Repsol likely from Bumi Armada, Petrofac and Yinson Holdings for $1.1 billion field development project. Outcome should be soon.

Price moving might be results in the bag!

 Earnings still on a growth path: ACSM recorded a NP growth of +10% y-y in FY16 (Feb yr-end), +8% y-y for 1QFY17 and based on street estimates, growth is expected to continue with +6.2% y-y/+7.3% y-y FY17E/FY18E (despite earnings contraction within the banking sector). In my view, there is potentially upside risk to these numbers (volume growth), as ACSM’s target market are more sensitive to interest rate cuts (we expect another 50bps) and fiscal measures targeted for the low-middle income, which we expect in 2H16, i.e. min wage & civil servant wage increases, reduction in EPF contribution, more BR1M payouts.
 Growth much stronger for underlying receivables growth, versus the 8-10% NP growth and according to management is on track to grow +20% y-y in FY17E, (FY16: +20% y-y; 1QFY17: +21% y-y to RM5.8bn). Motorcycle financing (29.9% of receivables), auto financing (29.5% of receivables) and personal financing (22.4% of receivables) are the three top categories. We do note that there is some conscious slowing down in general easy payment (GEP i.e. white goods financing) and used car financing and a greater emphasis on personal financing and credit cards (~200k cards in circulation).
 Slowing economy, yet NPLs declined to 2.42% 1QFY17 (from 2.74% in 1Q16), due to ACSM’s prudent risk management policies and in-house expertise and processes having been in the business for over 20 years. Mr Lee believes that borrowers typically will continue repaying as long as they are employed. Classification of NPL happens after 3 months of non-payment, written-off after 6 months of non-payment. Net credit costs also fell to 3.32%, the lowest in 9 quarters.
 No real competitor as ACSM is sandwiched between money-lenders and banks, with >70% of its c.1mn customer base earning < RM3,000/mth and coupled with the average loan ticket size of RM8,000 and average tenure of 4 years, ACSM is in a segment which does not interest the banks. It’s direct competitors are Bank Rakyat (unlisted) and MBSB (MBS MK, RM0.86, NR) but both have been unsuccessful in migrating from super-safe civil servant salary deduction lending to the “free market” i.e. ACSM makes about 13-15mn calls a year to customers to remind them to pay on time. Parkson Credit, Singer Credit, Wilayah Credit also offer consumer financing and motorcycle financing but we understand are much smaller places in this space.
 Not as strictly regulated unlike the banks, ACSM only needs to ensure its capital ratio (total equity/receivables) does not fall < 16% as required for all credit card issuers. ACSM is given the freedom to set pricing, with gross yield from 14% for used car financing to as much as 27% for general easy payment.
 Beneficiary of lower interest rates? ACSM will not immediately benefit from declining interest rates in terms of lowering its funding cost as close to 70% of its funding is fixed-rate (to match its fixed rate lending base) and locked in for 5-6 years from Japanese banks (LT fixed-rate at c.4.28% which is way better than any local bank offers) and the balance (which will benefit from lower interest rates), 30% from local banks (more ST facilities), for an average funding cost of around 4.2%. This is against the overall gross yield for ACSM at ~20%. Lower interest rates should improve demand and a relief for their customers.
 Trading at 8.3-8.7x PER, below market average 15x, with 29% ROE and 4.2-4.6% div yield: Adjusting for RM14.4mn/p.a. distribution paid to perpetual note holders (below net earnings line), ACSM is trading at trading at 8.4-8.7x ann. 1QFY17/FY17E PER or 8.3x FY18E based on consensus estimates, offering a 4.2%/4.6% FY17E/18E dividend yield. ROE were ~35% in FY2014/15 but is lower ~29% in FY16.

For a large part of the past 3 years, KESM’s PE has traded within the range
of 5x to 8.6x, or between -1SD and its mean PE. Peer comparison is limited, as there is only one
other major listed player, Trio-Tech (TRT US), which trades at a 14x 2015
EPS.
Taking all this into account, we believe that a fair PE for KESM is 12x for
calendarised 2017E, which is at a 30% discount to our target PE multiple for
the FBMKLCI and also a 14% discount to the automotive IDM average PE of
13.9x for 2017E. On the whole, we think the lower PE is justified given
KESM’s smaller scale of operations but taking into account its strong 3-year
forward EPS CAGR of 35%.
At 12x our calendarised 2017E EPS, KESM’s target price is pegged at
RM11. We initiate coverage with a BUY for upside potential of 58%.

In the automotive sweet spot
KESM recorded a strong 2012-15 EPS CAGR of 32%. We believe the
solid growth is sustainable, underpinned by focused growth in the
automotive business and margin expansion from improved product
mix and growth in the high-margin testing business. Hence, despite
the 34% stock price outperformance ytd, we think valuations remain
attractive and expect a continued PE re-rating. Initiate coverage with
a BUY and target price of RM11 based on 12x our calendarised 2017E
EPS, for upside potential of 58%.
Set to benefit from automotive structural growth story
KESM provides a good proxy to the stable and growing automotive
semiconductor segment, in our view. With strong growing demand for
electronics for vehicles, from safety to infotainment and autonomous
vehicles, we believe KESM is in the right segment to benefit from an
automotive structural growth story.
2015-17E EPS CAGR of 35%
We forecast KESM to achieve a 3-year EPS CAGR of 35% on the
expansion of its testing business in the automotive segment. Its recent
investments, in our view, should gradually bear fruit in the coming years
and drive revenue growth. We look for EBITDA margins to rise from 31.9%
in 2015.
Further re-rating expected
We see several re-rating catalysts for the stock, including a strong earnings
upcycle and PE expansion, as awareness on the stock remains low and
institutional holdings are limited.
Initiate coverage with BUY and RM11 target price
We initiate coverage on KESM with a BUY rating, on: 1) solid growth
prospects in the automotive space, a strong working relationship with
customers and expansion into the testing business, which we expect to
drive a 3-year-forward EPS CAGR of 35%; 2) a hands-on and forwardlooking
management team; and 3) although valuation comparables are
limited as competitors are mainly integrated device manufacturers (IDM),
closest peer Trio-Tech (TRT US) trades at a 14x 2016E EPS. KESM also
trades on average at a 56% discount to automotive-related IDMs’ 2016E
PE of 20.7x. Thus, at a 2017E PER of 8x, valuation looks attractive. Our
target price of RM11 (12x calendarised 2017E EPS) offers 58% upside

Pos resistance at 3.90

Genting (GENT MK, Buy, PT:11.60): 20.7%-owned TauRx Pharmaceuticals will be entering into dialogues this year with European Medicines Agency (EMA) and US Food and Drug Administration (FDA) for its experimental Alzheimer's drug LMTX, said its co-founder and executive chairman Claude Wischik. Now, the most important thing is for TauRx to complete the data analysis and compile the overall conclusions from the 2 Alzheimer’s studies of Phase 3.

Over a week ago, TauRx released the results of the first study of Phase 3 on LMTX, which showed that it had failed to meet its “co-primary endpoints’. But the drug did benefit a small group of patients who were on the drug alone (i.e. monotherapy). The key findings in the first study with 891 patients are now confirmed in a second study in a further 800 patients. As such, the chances of the second trial achieving its revised primary analysis outcomes are 100% - confirming the monotherapy findings from the first study. It then depends on how the regulatory authorities respond to the second study and to an analysis of pooled data from both studies. We are not sure if they will require us to do another study, according to co-founder and executive Chairman Claude Wischik. Meanwhile, TauRx is expected to release its findings on the outcome of the third Phase III trial in frontotemporal dementia later this month.

We continue to like HLI for its robust business model, leading market
position and decent earnings prospects across its business units.
Coupled with generous payout that translates into yields of 4.8-5.2% in
the next three years, we maintain our BUY call. Despite making no
changes to our estimates, we raise our SOP-based TP to MYR10.00 (from
MYR8.63, 13% upside) as we rollover our valuation to 2017 and up the
target P/E for its motorcycle business to 12x (from 10x).

Vietnam is Yamaha’s growing market. Hong Leong Industries’ (HLI) Yamaha
motorcycles franchise in Malaysia and Vietnam contributed >60% to FY15 (Jun)
earnings, and there is still room for growth. Although local total industry volume
(TIV) for motorcycles locally is declining, we understand that Yamaha has
managed to keep its unit sales almost flat by taking market share away from its
peers. Separately, prospects from its 24% stake in Yamaha Motor Vietnam Co
Ltd (YMV) remains bright, thanks to Vietnam’s youthful population of 90m
people and improving purchasing power overall.
Room for improvements for its building materials unit. HLI is also a leader
in building materials products. Its Guocera Holdings SB subsidiary is the largest
ceramic tile manufacturer locally, and 40% of these tiles are exported. HLI
currently has c.50% market share in the duopoly domestic fibre cement market.
It exports 60% of its fibre products. We expect demand for building materials to
remain firm, as it rides on the tail-end of the property boom cycle and the start
of 1Malaysia Housing Programme (PR1MA). HLI’s exports remains competitive
thanks to a weaker MYR. Its internal cost rationalisation exercise at its ceramic
tiles and fibre cement plants may lower unit costs further.
Yield appeal. While the challenging business outlook may only translate into a
middling earnings growth of 5%/8.3% in FY17-18 respectively for HLI and thus
does not look too exciting, we believe investors should not overlook the counter
given its attractive dividend yield in a weak macroeconomic environment. The
group’s resilient business model, coupled with its net cash position and strong
cash-generating abilities, should allow the board to keep its >50% dividend
payout (our forecast: 55%). This should translate into decent yields of 4.8-5.2%
in the next three years.
Reiterate BUY with a higher MYR10.00 TP (from MYR8.63). While we are
keeping our earnings estimates unchanged, we roll over our SOP-based
valuations to 2017 and raised our target P/E for its motorcycle business to 12x
(from 10x), which increases our SOP-based TP to MYR10.00. The new TP
implies 12.1-13.8x FY16F-18F EPS. We see upside potential to share price on
the back of a P/E re-rating in a market currently short of good yield-generating
firms that still offer earnings growth. Key risks to our call are lower-thanexpected
sales, which will impact HLI’s earnings and a sudden weakness in the
USD that may dampen its export sales.

Maybank IB Research 20 July 2016

Worth a bet – up TP to MYR11.10, Upgrade to BUY
21%-owned TauRX will reveal results of two out of its three Phase III trial
studies very soon. We understand that there has been some success,
notably with frontotemporal dementia. We leave our earnings estimates
unchanged but remove the 20% discount to our GENT SOP/sh valuation to
lift our TP to MYR11.10 from MYR8.90 to reflect the potential
monetisation of TauRX. Consequently, we upgrade GENT to BUY from
HOLD. Downside risk also appears limited at current valuations.
TauRX to reveal results of 2 of 3 Phase III studies
Channel checks indicate that 21%-owned TauRX will reveal results of two
out of its three Phase III trial studies during the Alzheimer’s Association
International Conference in Toronto, Canada on 27 Jul 2016. We
understand that TauRX will reveal results of its TRx-237-015 (mild to
moderate Alzheimer’s) and TRx-237-007 (frontotemporal dementia)
studies. Please refer to Fig. 1 for details. We understand that results of
the TRx-237-005 (mild Alzheimer’s) study will only be revealed in 4Q16.
Anecdotes suggest some success in the 2 studies
While we do not know exactly how effective LMTX (the drug subjected to
the Phase III trials) was, in improving the cognitive function of patients,
we understand that TauRX’s participation in the Alzheimer’s Association
International Conference is a positive indication of the results. Our
perusal of online Alzheimer’s forums also indicate that LMTX has had
some success in improving the cognitive function of patients, most
notably with frontotemporal dementia.
One step closer to monetisation?
If TRx-237-005 is successful, the next step is for LMTX to obtain approval
from the US Food & Drug Administration. Despite reports of a potential
listing at USD15b valuation (link), we gather that a trade sale of LMTX is
more likely as a listing requires a profit track record. If LMTX were sold
at USD15b, we estimate that it will add ~MYR2.55/sh to our GENT TP
([USD15b valuation X 20.7% shareholding – USD120m investment – 20%
holding company discount]/3,750m shares X MYR4:USD1 exchange rate).

Maybank IB Research 20 July 2016

Worth a bet – up TP to MYR11.10, Upgrade to BUY
21%-owned TauRX will reveal results of two out of its three Phase III trial
studies very soon. We understand that there has been some success,
notably with frontotemporal dementia. We leave our earnings estimates
unchanged but remove the 20% discount to our GENT SOP/sh valuation to
lift our TP to MYR11.10 from MYR8.90 to reflect the potential
monetisation of TauRX. Consequently, we upgrade GENT to BUY from
HOLD. Downside risk also appears limited at current valuations.
TauRX to reveal results of 2 of 3 Phase III studies
Channel checks indicate that 21%-owned TauRX will reveal results of two
out of its three Phase III trial studies during the Alzheimer’s Association
International Conference in Toronto, Canada on 27 Jul 2016. We
understand that TauRX will reveal results of its TRx-237-015 (mild to
moderate Alzheimer’s) and TRx-237-007 (frontotemporal dementia)
studies. Please refer to Fig. 1 for details. We understand that results of
the TRx-237-005 (mild Alzheimer’s) study will only be revealed in 4Q16.
Anecdotes suggest some success in the 2 studies
While we do not know exactly how effective LMTX (the drug subjected to
the Phase III trials) was, in improving the cognitive function of patients,
we understand that TauRX’s participation in the Alzheimer’s Association
International Conference is a positive indication of the results. Our
perusal of online Alzheimer’s forums also indicate that LMTX has had
some success in improving the cognitive function of patients, most
notably with frontotemporal dementia.
One step closer to monetisation?
If TRx-237-005 is successful, the next step is for LMTX to obtain approval
from the US Food & Drug Administration. Despite reports of a potential
listing at USD15b valuation (link), we gather that a trade sale of LMTX is
more likely as a listing requires a profit track record. If LMTX were sold
at USD15b, we estimate that it will add ~MYR2.55/sh to our GENT TP
([USD15b valuation X 20.7% shareholding – USD120m investment – 20%
holding company discount]/3,750m shares X MYR4:USD1 exchange rate).

Fantastic! Thanks for this detailed insights. Not many will understand what drives Genting'share price due to its many businesses. But this analysis made it much easier to understand.

Singapore’s Straits Times reported that Malaysia and Singapore are set to sign a Memorandum of Understanding (MoU) on the proposed Kuala Lumpur-Singapore High Speed Rail (HSR) project.
 Quoting a spokesman from Singapore's Ministry of Transport (MoT), the report said the MoU could be signed tomorrow (19 July).
The 350km KL HSR route will run on two tracks for a 90-minute journey. It will have several stops in Bandar Malaysia, Seremban, Ayer Keroh, Muar, Batu Pahat and Iskandar Puteri (Nusajaya), before heading towards Jurong East (via Tuas) on the Singapore-end.

We initiate coverage on Tiong Nam Logistics Holdings (TNL) with a
BUY call and SOTP-based 12M target price of RM2.10. We believe TNL
is poised to benefit from the rising logistics outsourcing and growing
e-commerce fulfilment demand as Malaysia’s largest total logistics
solution provider. We expect logistics segment to grow at 14% CAGR
on robust demand for warehouse storage space.
Regional logistics champion
With 77 warehouses and more than 2,000 trucking fleet spanning across
many parts of the Peninsular Malaysia, Thailand and Singapore, TNL is
firmly established as one of the largest regional logistics champion with a
storage capacity of 4.7m sq ft. Rising logistics outsourcing, growing ecommerce
fulfilment and increasing cold room requirements should boost
demand for TNL’s strategically located storage space, keeping utilisation
level high. We expect TNL’s capacity to grow at 9% CAGR and margin to
expand on ongoing productivity gains and lower labour costs driven by
higher automation.
Healthy visibility
Aside from logistics, property development segment is a sizeable earnings
driver and contributed 36% to its FY16 EBITDA. Property sales were
commendable, averaging 76% take-up rate despite soft sentiment amid a
glut. We expect the unbilled sales of RM266m to sustain earnings visibility
for the next 2 years. Future growth prospects will be underpinned by
undeveloped land banks (153 acres) with an estimated RM1.5 bn GDV.
Potential REIT in the offing
High gearing ratio (0.8x) has dampened sentiment on the stock and led to
depressed valuations relative to peers. Management guided that the
company could convert its warehouses into a REIT as part of its debt
management plan. Assuming a conservative book value disposal at
RM532m and a 51% controlling stake, TNL could generate up to RM261m
cash which could reduce net gearing ratio to a comfortable 0.4x.
Resilient earnings
We like TNL for its resilient and stable logistic segment while unbilled
property sales should act as a buffer to earnings volatility in the property
development segment. TNL is currently trading at 7x PER CY16E with a
dividend yield of 3-4%, still below its mean of 8x and sector average of 12x.
Potential REIT to pare down borrowings could be re-rating catalyst. Key
risks are moderating global growth and weak property sales.

Houston to Apollo13. BDI now at 738, gone even higher than what was recorded on 27 April 2016 at 715. The rocket is going higher!

This one hasn't move much today after BNM cut rates.

Genting Berhad (GENT) has transformed itself since 1989 into a holding
company providing exposure across multiple sectors, predominantly in gaming
via Genting Malaysia (GENM) and Genting Singapore (GENS). Meanwhile the
company is building a USD4bn casino in Las Vegas, plantations and property
via Genting Plantation (GENP), and utility and medical businesses are held
directly.
The 49%-owned GENM is offering most of its growth. The opening of a new
shopping mall (Sky Avenue) in 2H16 and a theme park (Fox Studio) in 2H17,
coupled with the potential addition of 510 new gaming tables is likely to
double the profit contribution from Malaysian property by FY18E. We believe
that the government will be willing to approve this expansion because of the
boost it will provide to GDP as well as the extra incentive of enhanced tax
revenue potential. Separately, GENT management fees are also likely to double
alongside GENM profit, in our view (please see page 12 for details.
Since 2000, the group has been investing in research & development in
plantation (oil palm tree DNA study) and healthcare via its 20.6%-owned
TauRx, a pharmaceutical company specialising in Alzheimer’s Disease
treatment. TauRx has been reported to have made advancement in finding a
medical solution for Alzheimer. Although media reports (including WSJ)
indicated that it could potentially IPO with a market cap of USD15bn, we have
not factored any potential IPO of TauRx in our estimates. We initiate GENT
with a Buy recommendation.
We use a sum-of-the parts (SOTP) valuation for GENT on account of its various
investments. For its listed subsidiaries, we use SOTP, EV/EBITDA and P/E for
Genting Malaysia, Genting Singapore and Genting Plantation, respectively.
GENT’s other investments are mainly valued using equity value with the
exception of two power assets that have power purchasing agreements and
internal management fees income which are valued using a discounted cash
flow valuation due to visibility in cash flow stability. Our resulting SOTP price is
MYR12 per share.

Brexit is came and went. Is Genting gonna close shop?

The chief operating officer is just a ta kong chai and buying his co shares. He knows something that we don't? Is it a sign of confidence? or maybe TauRx on 27 July would be positive news. I am just sharing what is a potential opportunity.

The mid-stage TauRx study published in the Journal of Alzheimer’s Disease showed cognitive benefits to patients taking 138 mg a day of the drug for 24 and 50 weeks, although the highest dosage of 228 mg failed to produce the same positive results. Wischik said the high dose was poorly absorbed due to natural limitations of a conversion process in the gut. The problems were fixed by creating the new version of the drug called LMTX that was used in the Phase 3 trials and which has so far proven to be safer and better tolerated, he said.
The first Alzheimer’s treatment that targets the disease and treats a broad spectrum of patients is likely to be an extremely valuable product and quite capable of generating more than $10 billion a year in sales, said Tim Earle, chief operating officer of TauRx.
As a young researcher in Cambridge in the 1980s, TauRx’s Wischik accidentally discovered that a class of chemicals could dissolve filaments of tau in test tubes. After partnerships with big companies including one with what was then Zeneca didn’t lead to a drug, Wischik decided he would carry on by himself.
TauRx was started with seed capital from a Singaporean friend of Wischik’s family and has raised about $500 million since it was founded in 2002, according to the company, mainly from Asian investors in places like Singapore and Hong Kong.
LMTX is an altered version of the company’s previous experimental product called Rember, a form of the dye methylene blue. Last year, research by the Mayo Clinic found that the accumulation of dysfunctional tau protein is the real source of cognitive decline and memory loss seen in Alzheimer’s patients, although beta amyloid may also be involved in the disease’s progression.
As a drug discovery company, TauRx will have to partner with big pharma or biotech companies for their marketing and distribution network, said Earle.
Asked about a potential listing, Earle said the company is having "very exploratory discussions talking about concepts, talking about possible strategic choices that we may have to make as the Phase 3 results pan out." The Nasdaq might be the most suitable venue for a "high-value biotech company," he said.
— With assistance by Hui Li

Anyone noticed that management of Genting is buying shares ? http://www.bursamalaysia.com/market/listed-companies/company-announcements/5135433


TauRx will soon unveil human trial results for its drug LMTX
Singapore company's backers include Genting Berhad and Temasek
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After decades of researching a treatment for Alzheimer’s, Claude Wischik is set to find out whether his lonely 30-year battle can lead to one of the first real treatments for the memory-destroying brain disorder that afflicts millions worldwide.
The co-founder of Singapore-based TauRx Pharmaceuticals Ltd. plans to present results from ongoing final human trials on its experimental Alzheimer’s drug, LMTX, as early as July. An earlier study showed that patients given the company’s treatment had better cognitive scores than those who didn’t get it, according to research it published in the Journal of Alzheimer’s Disease.
QuickTake Alzheimer's Disease
The stakes are huge, and researchers estimate that more than 40 million people worldwide are living with Alzheimer’s and dementia. The world’s largest pharmaceutical companies from Pfizer Inc. to Biogen Inc. have poured resources into the field, but success has so far largely eluded scientists. There is still no cure for Alzheimer’s and no medicines to slow the progression of the disease.
Existing drugs mainly offer symptomatic relief for patients, and advisory firm GBI Research estimates that the market for Alzheimer’s therapies has the potential to expand from $5.2 billion in 2014 to $11.3 billion in 2021 in eight major countries including the U.S. and Japan.
Between 1998 and 2014, there were about 123 experimental Alzheimer’s medicines under development that were halted or did not receive regulatory approval, according to a report by the trade group Pharmaceutical Research and Manufacturers of America.
Successful trials would also be a boon for TauRx’s backers, including its biggest shareholder, Malaysian investment holding company Genting Berhad, and Singapore’s state investment company Temasek. Promising results might open the door for a possible initial public offering and tie-ups with large pharmaceutical companies, its executives say. If the trials are successful, the company would apply to both E.U. and U.S. regulators, and the timing of any approval would depend highly on the Phase 3 data, they said.
Wischik, a professor at the University of Aberdeen in Scotland, has spent his career looking for a drug to dissolve tangles of a protein called tau, one of the hallmarks of Alzheimer’s brain abnormalities. The majority of Alzheimer’s researchers have focused on another kind of protein clump known as beta-amyloid, which has had mixed results.
"Looking for ways to prevent tau aggregation is definitely a viable path for drug discovery," said Rosa Sancho, head of research at the charity Alzheimer’s Research UK. If the drug turns out effective and safe, "for the field it would be incredible, there are no treatments at the moment and they are so desperately needed."
Success isn’t guaranteed for TauRx. Sancho warns of pitfalls given the difficulties researchers have historically had with Alzheimer’s. "I would be cautious because in the past few years we’ve had so many failures in trials," she said, referring to tests from many pharma companies that failed to produce a viable drug.
Other Treatments
In 2013, as many as 5 million Americans were living with Alzheimer’s disease, according to the U.S. Centers for Disease Control and Prevention.
Other experimental Alzheimer’s treatments are also far along in clinical tests. Eli Lilly & Co.’s is conducting final stage trials on the beta-amyloid-directed drug solanezumab. Trial results announced in July last year showed that patients who had been taking its drug longer did better on a cognitive test than those who hadn’t. This month the company said it had changed the primary goal of a test on the drug to focus solely on whether it can forestall changes that may occur early in the course of the disease.
Biogen’s drug BIIB037 has had mixed results. In an early-stage trial of 166 patients, the treatment was shown to reverse build-up of beta amyloid in the brain and also reduced cognitive decline. But in findings released later in July, the experimental drug failed to show a statistically significant cognitive benefit for patients on a closely watched dose.
Even if proven successful, the amyloid treatments will work with a completely different mechanism than a tau-based drug and they won’t be direct competitors, said Wischik. "The consensus of the field is that ultimately some sort of cocktail will be necessary," he said, drawing parallels with AIDS therapies that use a combination of treatments. "There’s no one winner-takes-all drug."

http://www.theedgemarkets.com/my/article/maybulk%E2%80%99s-dry-bulk-shipping-issue-set-ease
This article first appeared in The Edge Financial Daily, on July 1, 2016.



Malaysian Bulk Carriers Bhd
(June 30, 86 sen)
Maintain buy with an unchanged target price (TP) of RM1.04: The Baltic Dry Index (BDI), which measures charter rates across dry bulk ship sizes and routes, has been maintained above 600 for the majority of the second quarter of financial year 2016 (2QFY16) (last closing as of Wednesday was 640), above its low of 290 recorded on Feb 10, 2016. Translated into one-year time charter rates of US$4,700 (RM18,894)/day, US$5,800/day and US$6,400/day for Handysize, Supramax and Panamax vessels, which Malaysian Bulk Carriers Bhd (Maybulk) operates, the rates are still below our estimated average fleet break-even cost of US$7,500/day for Maybulk. However, we believe losses could have bottomed for the dry bulk segment in 1QFY16, while associate PACC Offshore Services Ltd (Posh) could spring some positive surprises.

A repeat of the mini rally that took place in June to August 2015, when the BDI rose sharply from 589 to 1,222, and fizzled out is unlikely to transpire. However, we are not disheartened as we believe the prospect of a sustained recovery is more important for the company in the long run.

China’s average monthly iron ore import volume has grown at a pace of +4% year-on-year (y-o-y) at 82.5 million tonnes per month in 2016, double the growth rate registered in 2015 of +2% y-o-y.

The growth in imports bodes well for dry bulk shippers as it increases demand for shipping tonnage. The positive growth comes amid concerns about China’s economy losing steam, coupled with capacity cuts in steel mills. Iron ore prices at the Port of Qingdao trading at US$54/tonne are also firmly above the low of US$38/tonne registered in December 2015.

Growth in coal imports is positive, despite the shift to cleaner energy, at +1.4% y-o-y for the average monthly imports in 2016, compared with 2015. This is a welcomed sight after a -30% y-o-y drop in average monthly import volume in 2015, compared with 2014. Similar to iron ore, a positive growth in the volume of coal imports in China augurs well for the dry bulk industry, especially considering China’s 0.13% decline in thermal energy generation. Meanwhile, thermal coal prices at China’s Qinhuangdao Port are currently at 394 yuan (RM237.54)/tonne after reaching a low of 345 yuan/tonne in November 2015, indicative of rising demand.

Maybulk has disposed of three vessels so far in 2016, with an average age of 13 years, namely Alam Budi Product Tanker (US$13 million), Alam Pesona Post Panamax (US$6.9 million) and Alam Murni Supramax (US$4.65 million). While second-hand vessel values are unlikely to revisit prior-year highs, they have certainly come off their lows. For example, the price of 10-year-old Panamax vessels bottomed at US$6.15 million in February 2016, but has since rebounded to US$7.9 million in June 2016, a swing of 28%.

Singapore-listed Posh has gained 24% year to date, riding on a recovery in crude oil prices and leveraging its young fleet, which is customised to fit the specifications required by customers. In 1QFY16, the contribution from its associate amounted to RM4 million, and we are expecting this to rise to a conservative RM5 million per quarter for the remaining quarters in 2016, based on its secured order book, which would cushion weakness from the dry bulk segment until time charter rates recover further.

Our TP of RM1.04 is based on a five-year average price-to-book (PB) ratio of 0.88 times. We believe the worst could be over for the dry bulk shipping sector and that valuations of Maybulk should revert to their five-year mean. In addition, Maybulk has taken steps to impair various items on its balance sheet, making PB valuation more reflective of current market prices and conditions. Meanwhile, dry bulk shipping overcapacity issues are set to ease with a forecast net capacity addition of +1.3%, versus a higher +2.4% growth in demand. This bodes well for Maybulk, the sole dry bulk shipper under our coverage. — MIDF Research, June 30

After spending a few weeks under downside pressure, sparking the sentiment that the best was already over, the Baltic Dry Index has staged a surprising recovery and is now trading well above 600 points. On Tuesday, June 28 2016, the Baltic Dry Index climbed by 11 points, reaching 627 points.

While prior weakness was attributed to a decline in capesize hire rates, a jump in panamax rates has encouraged the recent upside, although capesize rates are also seeing some strength after recent losses. On Tuesday, capesize hire rates increased by 0.66%, panamax hire rates advanced by 2.75%, while rates for the smaller vessels, the supramaxes also saw some upside.

Capesize rates are under pressure, as expected. Capesize ships transport primarily iron ore, and the iron ore market is entering its period of seasonal weakness. Iron ore demand increases in spring during China’s restocking period, and decreases in summer when building demand in China slows amid the hot summer. While capesize demand has steadied amid the rebound in the BDI since falling below 600 points, capesize demand is definitely not driving the BDI higher. Panamax demand is. Panamax ships transport coal, grains, and minor bulks including steel products, cement and fertilizers. We are currently in the midst of peak harvest season for many of the world’s major crops and this could be driving solid panamax demand and, in turn, prices. Another factor that has been supporting the panamax index as of late is surprising demand to transport coal cargoes along Pacific routes. Still, demand for the different ships has been volatile this month. In early June demand for panamaxes was seen as weak, while their was a late season bounce in capesize demand.

Saturday, 18 June 2016
Eye on stock; Malaysian Bulk Carriers

MALAYSIAN Bulk Carriers Bhd (Maybulk, code: 5077) rebounded from an all-time low of 51 sen on March 1 to set a new high for this year at RM1 on April 7 in the wake of renewed bargain-hunting interest before slipping back into correction mode owing to apparent profit-taking activity.

This stock was traded at 81.5 sen, up two sen, yesterday.

Based on the daily chart, Maybulk shares remained in consolidation mode, but they have fairly good potential to come out of the present condition, with trading volumes expanding positively the past couple of days, indicating investors may be making a return to this counter.

A clear breakout of the two-year-old bearish descending line, resting on the 87-sen level will signal a bullish turnaround. If that happens, prices are expected to firm towards the 93-93.5 sen band in the immediate term.


Click on image to view bigger images.

The next objective would be to challenge this year’s peak of RM1 mark, of which another decisive breakthrough would further confirm that Maybulk is indeed on the mending path going forward.

Elsewhere, the oscillator per cent K and the oscillator per cent D of the daily slow-stochastic momentum index were on the rise after triggering a short-term buy near the mid-range in mid-week.

The past week saw the 14-day relative strength index rising from a reading of 43 on Tuesday to close at the 60 points level yesterday.

In addition, the daily moving average convergence/divergence histogram advanced steadily towards the zero threshold, in tandem with the daily signal line to keep the bullish note. It had issued a buy call on June 7.

Technically, indicators are painting a pretty encouraging pictogram, suggesting a positive breakout may be on the cards.

The immediate support is anticipated at the 100-day simple moving average of 73 sen.

An additional floor is pegged at the most recent lows of 67.5 sen. - K.M. Lee

Key ASIC Expects To Maximise 2016 Business Growth
Ayiys Yusof Thursday, June 16, 2016

Eg expects the remaining quarters to be better this year, which would also largely depend on the demand for the Kcard

KEY ASIC Bhd, a semi-conductor design specialist, is conf ident that its heavy investment on research and development (R&D) for its chips and system products over the years would pay off this year with the company recording better overal l performance.

Chairman and CEO Eg Kah Yee said the R&D exercise would also result in the company saving between 20% and 30% on product development expenses this year.

“We spent substantially over the past years developing new products. We have already introduced two key products, mainly the Kcard and Kdrive.

“We would also reduce our expenditure on software tools and workforce to grow our business,” he said after the company’s AGM in Petaling Jaya yesterday.

He added the company has two R&D centres located in Malaysia and Taiwan. Last year, Key ASIC spent about 80% of its expenses on R&D, amounting to RM20 million.

“We expect the remaining quarters to be better this year, which would also largely depend on the demand for the Kcard that we introduced in December 2015, and Kdrive which we expect to ship during the secondhalf of 2016.

With Kcard and Kdrive, the company also plans to extend its export market to neighbouring countries, he said.

“Our focus would be on promot ing our products, while we continue to build our distribution channel. We will also build integration of the Kcard and Kdrive products that would yield in multiple applications for medical equipment and devices,” he added.

For the financial year ended Dec 31, 2015, the company posted revenue of RM19.29 million compared to RM17.05 million previously.

The BDI rose w/w, mainly driven by higher rates in the Capesize vessel
segment: Capesize earnings rose 11% w/w to $7.1K/day. However, Panamax
earnings fell 4% w/w to $5.9K/day for the week ending June 3. Supramax index
fell 1% while Handysize index rose 1% w/w. No period fixtures were concluded
in the last two weeks. 1Y Capesize time-charter rate rose 4% w/w to $7.0K/day
(source: Clarksons).
•Forward curve points to higher rates in 3Q16 in all vessel segments except
Supramax: FFA indications for Capesize TC are at $9.0K/day in 3Q16 (current:
$6.4K/day), $11.0K/day in 4Q16, $7.0K/day in 1Q17. FFA for Panamax TC are
at $5.4K/day for 3Q16 (current: $4.5K/day), $5.6K/day in 4Q16, $5.0K/day in
1Q17. FFA for Supramax TC are at $5.9K/day for 3Q16 (current: $6.0K/day),
$6.1K/day in 4Q16, $5.6K/day in 1Q17. FFA for Handysize TC are at $4.6K/day
for 3Q16 (current: $4.4K/day), $4.7K in 4Q16, $4.4K/day in 1Q17 (source:
Clarksons, SSY).
Capesize chartering activity fell 18% w/w to 37 ships but rose 9% y/y: 68%
will carry iron ore (81% a week ago), 27% coal (18%) and 5% others (1%). Jan-
Dec 2015 split: 77% iron ore (76% in 2014), coal 20% (18%), others 3% (6%).
•China’s share of shipping demand rose, Europe’s share fell while the Rest of
Asia’s share held steady: 68% of the Capesize vessels were chartered to carry
cargo to China (from 67% a week ago), 84% carrying iron ore (86%), 12% coal
(14%) and 4% others (0%). Europe's share of demand fell slightly to 13% (14%)
and Rest of Asia's share remained steady at 19% (19%). In Jan-Dec 2015, the split
was China 70% (vs 71% in 2014), rest of Asia 14% (14%), Europe 15% (14%),
other 1% (1%). China’s iron ore inventories at ports fell 2% m/m but rose 18%
y/y.
•Ship chartering activity fell in Panamax and Handysize vessel segments: In
the Panamax spot market, number of ships chartered fell 26% w/w to 32 vessels
with coal/grain shipping demand driving 41%/38% of the ships chartered. The
number of ships chartered remained steady for Handymax but fell 50% for
Handysize.
•Global bulk shipping capacity held steady m/m at 779.0MM dwt as at June 1:
This is the 40th month of ≤1% m/m rise and implies only 0.8% growth annualized,
well below the 8% growth implied by the orderbook. Scrapping removed 262 ships
(20.2MM dwt) YTD (or c.6.3% of capacity annualized). New ship orders have dried
up (bulkcarrier contracts fell 68% y/y to 250 ships in 2015 and 76% y/y in YTD
2016). Current orderbook implies 7.8% supply growth in 2016. However, like 2015,
we believe net supply growth will be much lower (at 2.6% based on our estimates),
driven by vessel delivery shortfalls (c.33% average in last 5 years). Potential
bankruptcies could help remove some excess capacity.
•Global ports congestion update: 76 Capesize vessels were at anchorage or
c.5% of the global Capesize fleet. Details: 1) Australia’s main coal/ore ports –
33 (from 39) vessels plus 145 (125) vessels arriving in the next 14 days. 2)
Brazil – 24 (20) vessels at anchorage plus 50 (56) vessels arriving in the next 14
days. 3) China’s major ore & coal berths – 12 (9) vessels at anchorage plus 54
(45) vessels arriving in the next 14 days (source: Gports as at June 9).

The BDI rose w/w, mainly driven by higher rates in the Capesize vessel
segment: Capesize earnings rose 11% w/w to $7.1K/day. However, Panamax
earnings fell 4% w/w to $5.9K/day for the week ending June 3. Supramax index
fell 1% while Handysize index rose 1% w/w. No period fixtures were concluded
in the last two weeks. 1Y Capesize time-charter rate rose 4% w/w to $7.0K/day
(source: Clarksons).
•Forward curve points to higher rates in 3Q16 in all vessel segments except
Supramax: FFA indications for Capesize TC are at $9.0K/day in 3Q16 (current:
$6.4K/day), $11.0K/day in 4Q16, $7.0K/day in 1Q17. FFA for Panamax TC are
at $5.4K/day for 3Q16 (current: $4.5K/day), $5.6K/day in 4Q16, $5.0K/day in
1Q17. FFA for Supramax TC are at $5.9K/day for 3Q16 (current: $6.0K/day),
$6.1K/day in 4Q16, $5.6K/day in 1Q17. FFA for Handysize TC are at $4.6K/day
for 3Q16 (current: $4.4K/day), $4.7K in 4Q16, $4.4K/day in 1Q17 (source:
Clarksons, SSY).
Capesize chartering activity fell 18% w/w to 37 ships but rose 9% y/y: 68%
will carry iron ore (81% a week ago), 27% coal (18%) and 5% others (1%). Jan-
Dec 2015 split: 77% iron ore (76% in 2014), coal 20% (18%), others 3% (6%).
•China’s share of shipping demand rose, Europe’s share fell while the Rest of
Asia’s share held steady: 68% of the Capesize vessels were chartered to carry
cargo to China (from 67% a week ago), 84% carrying iron ore (86%), 12% coal
(14%) and 4% others (0%). Europe's share of demand fell slightly to 13% (14%)
and Rest of Asia's share remained steady at 19% (19%). In Jan-Dec 2015, the split
was China 70% (vs 71% in 2014), rest of Asia 14% (14%), Europe 15% (14%),
other 1% (1%). China’s iron ore inventories at ports fell 2% m/m but rose 18%
y/y.
•Ship chartering activity fell in Panamax and Handysize vessel segments: In
the Panamax spot market, number of ships chartered fell 26% w/w to 32 vessels
with coal/grain shipping demand driving 41%/38% of the ships chartered. The
number of ships chartered remained steady for Handymax but fell 50% for
Handysize.
•Global bulk shipping capacity held steady m/m at 779.0MM dwt as at June 1:
This is the 40th month of ≤1% m/m rise and implies only 0.8% growth annualized,
well below the 8% growth implied by the orderbook. Scrapping removed 262 ships
(20.2MM dwt) YTD (or c.6.3% of capacity annualized). New ship orders have dried
up (bulkcarrier contracts fell 68% y/y to 250 ships in 2015 and 76% y/y in YTD
2016). Current orderbook implies 7.8% supply growth in 2016. However, like 2015,
we believe net supply growth will be much lower (at 2.6% based on our estimates),
driven by vessel delivery shortfalls (c.33% average in last 5 years). Potential
bankruptcies could help remove some excess capacity.
•Global ports congestion update: 76 Capesize vessels were at anchorage or
c.5% of the global Capesize fleet. Details: 1) Australia’s main coal/ore ports –
33 (from 39) vessels plus 145 (125) vessels arriving in the next 14 days. 2)
Brazil – 24 (20) vessels at anchorage plus 50 (56) vessels arriving in the next 14
days. 3) China’s major ore & coal berths – 12 (9) vessels at anchorage plus 54
(45) vessels arriving in the next 14 days (source: Gports as at June 9).

Demand for dry bulk commodities
Agencies
Wednesday, June 15, 2016
When it comes to the dry bulk market, shipowners these days are looking for news in any shape or form they can find them.

However, as the discussion over the market's future prospects is being dominated by the obvious tonnage oversupply, things could very well start to show modest signs of improvement in the demand-side of the market as well.

Dry bulk ship owner Golden Ocean said in its latest quarterly report that "China's official GDP growth slowed to 6.7 per cent in the first quarter of 2016. In the new five year plan announced in China in March the target for annual GDP growth during the next five years was set to 6.5 per cent.

This is the first time that the target set has been higher than the consensus estimate from various analysts. Although the Chinese authorities are focused on growth from "softer" sectors like services, they still say that no goals should jeopardise social stability or economical prosperity.

This could bode for some additional investments in infrastructure projects and fixed asset investments if growth is not kept at an acceptable pace. Moreover, control of infrastructure projects have been taken back centrally to Beijing.

March statistics for China showed better economic outlook, as both growth in fixed asset and infrastructure investments as well as new loans all showed signs of improvement. Growth in fixed asset investments picked up from the low in the past three months to 11.2 per cent, the highest since July last year, and growth in infrastructure investments has been on a downward trend in the last two years and dropped to a multi-year low of 8.6 per cent in December last year but ramped up to 22.5 per cent in March. Whether the recovery of growth will remain is of course the big question", said the shipowner.

Golden Ocean added that "when looking at the various main commodities transported, all of them had a slow start to the year.

With low commodity prices and forward curves in backwardation, building down inventories has been preferred to importing new volumes. Imports of coal to China were very low at the beginning of the year at around 13 mt per month, but picked up in March to 19 mt per month, which annualised is at around the same levels as last year.

There are some signs of stability, and as many Chinese mines are closing down and imports are a small part of the total volumes, in the shorter term there could also be some upside potential on these numbers.

India has had a high local output on coal and also has around 25 days of inventories available and has disappointed those that were most optimistic on India's substitution of Chinese demand".

Stocks can still rocket after up 100%. Take a look at Hap Seng Con when it was at RM4.00 or 10x PE. it has gone up 185% in 2 years (2013-2014). Today it trades at RM7.60! +90%. Apollo13 to Houston ground control. We have a problem here?

SELL!

Karex will be releasing its 3QFY16 results on 27 May 2016. We expect sub-par
earnings performance as the operating environment has turned unfavourable.
■ In 3QFY16, the RM strengthened against the US$ by 9.2% qoq, while latex prices
increased by 33.1% qoq. Latex costs constituted 28% of total cost in FY15.
■ Hence, we lower FY6/16-18 EPS by 11.5-15.4% and switch our valuation
methodology to DCF to better reflect the intrinsic value of Karex’s OBM segment.

Malaysia’s largest home-■ grown convenience store player, with an estimated outlet
market share of 8.6% (in terms of outlets) in 2015.
■ The company is set to expand its store presence by 115 outlets from 255 stores
currently as well as to increase profitability through higher-margin products.
■ Our end-2017 target price of RM1.80 is based on both PER (20x target P/E) and
PEG (1.0x) valuation methodologies.
■ We initiate coverage with an Add recommendation

Food and raw material inflation could caused havoc on the co?

We understand that GENT has undertaken this
venture since late 2012 and so far invested about USD120m
on this venture. At present, we have not ascribed any value to
GENT’s 20.7% stake in TauRX into our valuation model since
it serves as a binary event. The successful listing of TauRX
with a valuation of USD15bn could increase GENT’s RNAV
from RM9.40/share to RM12.37/share. Nonetheless,
prolonged unsuccessful drug trials could significantly lower
the market value of TauRX.

There are currently four FDA-approved drugs that treat Alzheimer’s symptoms, with donepezil (Aricept) and memantine (Namenda) the most widely prescribed. (A combination of donepezil and memantine called Namzaric is used to treat moderate to severe Alzheimer’s dementia.)

But these medications only offer modest benefits, on average, and they improve cognition and daily functioning for just six months to a year and then wear off. They do not change the trajectory of the disease.

Several tau-focused drugs are in development. These are some of them:

LMTX. Developed by TauRx Therapeutics, the drug is supposed to reduce the clumping together of abnormal tau proteins. It recently entered Phase III testing in people with mild to moderate Alzheimer’s dementia—the last phase of testing, in which the drug is given to large groups of participants to confirm its effectiveness versus a placebo. Previous testing of an earlier version of the drug, called Rember, yielded mixed results, which suggests a possible benefit at certain doses.

TPI 287. This drug is supposed to stabilize the nerve cell microtubules that are damaged by abnormal tau proteins. A Phase I study was launched in November 2013 to determine the largest safe and tolerated dose for patients with mild to moderate Alzheimer’s dementia.

Nilotinib. This FDA-approved leukemia drug is thought to help clear abnormal tau from the brain. In a recent small trial with 12 participants who had Parkinson’s disease and dementia symptoms, the drug improved cognitive skills and lowered tau levels. They took 150 to 300 milligrams daily for six months, but there was no comparison with a placebo. A Phase II study to explore the drug’s efficacy and safety is planned to begin this year.

Leading Alzheimer’s researchers are optimistic that effective tau-focused treatments will be available within the next five to 10 years. But even then, it is likely that a tau drug combined with amyloid-modifying drugs may be the most fruitful.

“As these new drugs get tested and become available, our treatments will be able to span the spectrum of Alzheimer’s disease much better,” says Dr. Marshall. “We are getting much better at diagnosing Alzheimer’s disease early, and we are now hopeful that we can target multiple underlying processes to improve our chances of preventing in some, and treating in others, this terrible disease.”

TauRx Pharma Co-Founder's 30-Year Alzheimer's Quest May Bear Fruit in July
http://www.biospace.com/News/taurx-pharma-co-founders-30-year-alzheimers-quest/412723/source=TopBreaking

breakout!

this is a good co. pays good dividends,

Cimb write on AwC fly..
...,maybe next is IwC

iwcity and ekovest same owner. running at the same time

Rate cut by BNM coming...will spur cheaper funding for property development.

Malaysia’s monetary data for March reinforced our
call for a 25bp rate cut to 3% at BNM new governor
Ibrahim’s first policy meeting on 19 May. Bank
credit growth slowed to 6.4% from 7.4% in
February which in turn led to slowing broad M3
money supply growth to 0.9% Y0Y (see chart).
Business loan growth dropped to 5.2% YoY
(February 7.1%) while household loans slowed to
6.4% (February 7%). Rising oil prices have
provided only modest relief; realistically, sustained
oil price levels above USD65/bbl would be needed
to boost fiscal spending power. At current levels
below USD50/bbl, the onus will shift to monetary
stimulus. Recent ringgit stability and the USD1.9bn
year-to-date rise in foreign reserves to USD97.2bn
have provided the opportunity for a policy rate cut.

If Tan Sri Quek has a stake in Credence, Guocoland should have higher chances of winning some land parcels at Bandar Malaysia (BM), which is very valuable and strategic in KL city centre. Even though the property market is going through a challenging period, location is still important in a longer run.

In comparison to IWCITY, Guocoland has a better reputation, brand name, and execution track record in our view. Flagship projects include Damansara City, which is a luxury high-rise residence, and Emerald, which is a township project in Rawang. Therefore, it is also more reasonable for Guocoland to develop some iconic high-rise in BM

Known to make good stock trades, Quek has also taken up stakes in the new listings of Kencana Petroleum Bhd and Petra Perdana Bhd and was also an investor in Multipurpose Holdings Bhd and fertility treatment company TMC Life Sciences Bhd.

Is this his next one?

Calvin, good examples on pump n dump stocks , but bad example of blowing your own trumpet stock. In the same period, many others have gone up multiple fold. Do list them instead of just one only in PM corp, we know u r a good in picking stocks.