The Khazanah statement said the divestment price was determined based on the fundamentals of TEB, reflecting the remaining concession period with the Royal Malaysian Customs Department up to September 2014 held by TEB’s majority-owned subsidiary, Dagang Net Technologies Sdn Bhd (“DNT”), and the other two TEB subsidiaries which are operating at a loss.

DNT has submitted a tender proposal for the new uCustoms system to be implemented by Customs. (Source: The Malaysian Insider)

Comment: Have submitted and WILL EXTEND SOON. If not why MyEG and other 9 interested parties bid for TEB.

Censof will record a Comprehensive Income of RM31.4 million for the value gain in TIME at RM0.20, assume share price for TIME at RM0.29.

This will boost the P/E once the acquisation complete.

Positive drivers. Some positive factors that may propel HTVB’s earnings include: i) an increase in demand for water pipes, should water pipe replacement projects kick off, ii) the US’ anti-dumping duties against nine oil and gas pipe-exporting countries may open a window of opportunity for HTVB, iii) its trading arm’s margin is expected to recover, and iv) contributions from its 55%-owned Eastern Steel SB upon commencement of commercial production may boost earnings further.

- Sensitivity analysis shows positive outcome. With HTVB’s current utilisation rate at just 50-60%, the company is already profitable. Our sensitivity analysis suggests that a 10% increase in the utilisation rate will further improve its profitability by 12.0% and 9.9% in FY14F and FY15F respectively, due to operating leverage effects.
.

- BUY, MYR0.97 FV. We valued HTVB at 0.5x FY14F P/BV previously. In view of its stable operations and improving earnings visibility, we raise our valuation to 0.72x FY14F P/BV, which is -0.5 STD from the mean of its 5-year historical trading band (from -1.0 STD), to derive a new FV of MYR0.97.

JF Apex Securities Bhd said in a market strategy report yesterday that the implementation of the GST would be a major catalyst for e-services or IT solution providers, which could benefit front-runners such as MyEG and Censof Holdings Bhd.

By 2014, Censof most likely to touch RM1.00 above!

Khazanah said the divestment in TEB will offer an opportunity for the acquiring party to tap into TEB’s expertise and participate in a potential extension of its concession with the government, which is due to expire in 2014.

The divestment exercise will also allow TEB to enjoy financial and strategic benefits through the ownership and management of a qualified Bumiputera company with expertise in the relevant field. (Source: FMT)

Comment: Khazanah gave Censof to tap extention of concession with government.

Accumulating, patient will be the winner

TAS shareholders sold their shares once China deals unsucessful, or else may touch RM1.30

TAS management fail to secure any contracts in China.

TAS Offshore Berhad (5149)

TAS Offshore secures RM38m contract

TAS Offshore Bhd’s net profit for its first quarter ended Aug 31, 2013, rose three-fold to RM8.5 million from RM2.7 million in the previous corresponding period while revenue rose 66.5% to RM29.6 million from RM17.77 million. Compared with the preceding quarter, revenue was 31.67% lower although profit before tax more than tripled to RM10.22 million due to a reversal of impairment losses on trade receivables of RM3.3 million and a gain on foreign exchange of RM1.8 million in the current quarter as the US and Singapore dollars strengthened.
Did you know?
TAS’ business is predominantly export-oriented which provides them with the global market as well as the platform to sustain and grow the business. Its overseas markets are UAE, Bahrain, Singapore and Indonesia.
Rationale

1) Low historical PE of 10.1x
2) Decent pre-tax margin of 15.2%
3) Decent ROE & ROC of 12.3% and 11.8% respectively

China Oilfield Services Limited (COSL) planning to sign agreements for the construction of 15 vessels.

Comments We believe the items highlighted above in the Budget 2014 bode well for CENSOF as the government emphasises on the importance of OBB to improve budget management in the ministries. Note that CENSOF had previously secured OBB project from the Ministry of Finance worth RM25.47m (including the extension contract) to install and implement the online budget system for the outcome based budgeting in Jun-11 and Apr-12. The project is also its second largest contract in terms of value after PERKESO. As the government is targeting to expand the OBB system to another two ministries (Ministry of Health and Ministry of International Trade and Industry), we are positive for CENSOF based on its previous track record in securing government projects.

Meanwhile, as the government announced that GST will be implemented in Apr-15 (which is approximately 17 months from now), CENSOF’s GST-ready accounting software and training services are already ready which CENSOF can offer to their existing 80 plus government agencies in the country while creating new income streams. Based on our understanding, the GST-software upgrade service is charged at an average of RM200k-RM2m for GST-compliance accounting system upgrade and training services, depending on the client's corporate size, terminal stations, system integration and etc. Notably, the GST-upgrade service excludes annual service maintenance fee, which normally accounted for about 2%-5% of the software purchasing price.

Outlook We are positive on CENSOF’s long-term outlook underpinned by: (i) the potential influx of GST-compliance accounting system upgrade and training services demand from its existing 80 plus government agencies before the official implementation of GST in Apr-15, (ii) continued projects/contracts flow from various government agencies for its FMSS project, and (iii) potential massive synergistic benefits that could be created for CENSOF and Time Engineering Bhd (TEB) post acquisition.

Government to allocate RM3 billion in soft loans under the Maritime Development Fund through Bank Pembangunan Malaysia.

* The fund is to provide financing to encourage the development of the shipping industry, shipyard construction, oil and gas as well as maritime-related support activities.

Budget 2014 benefit HIAPTECK:-

■ The Government allocates RM1.6 billion for development in the five regional corridors
■ Agropolitan project and oil palm-based industries to be implemented in Sabah Development Corridor, Samalaju Industrial Park and Halal hub in Sarawak Regional Corridor.
■ Projects undertaken by Petronas include Sabah Ammonia Urea Project in Sipitang; integrated oil and gas production development project, Kebabangan; regasification plant project, Lahad Datu; and RAPID, Pengerang.
■ Projects to be implemented include 316-kilometre West Coast Expressway from Banting to Taiping as well as double-tracking projects from Ipoh to Padang Besar and later from Gemas to Johor Baharu.

■Projects undertaken by Petronas include Sabah Ammonia Urea Project in Sipitang; integrated oil and gas production development project, Kebabangan; regasification plant project, Lahad Datu; and RAPID, Pengerang.

Budget 2014 benefiting TAS:-
■RM3 billion in soft loans under the Maritime Development Fund through Bank Pembangunan Malaysia.

Government will spend million in training and ICT for custom departments and ports.

China contracts tender result out soon for RMB513million.

Budget 2014 benefit CENSOF:-
■Cost of purchasing ICT equipment and software is given Accelerated Capital Allowance until year of assessment 2016.
■Training grant of RM100 million to be provided to businesses that send employees for GST training in 2013 and 2014.
■Expenses incurred for training in accounting and ICT relating to GST to be given further tax deduction for years of assessment 2014 and 2015.
■Training grant of RM100 million to be provided to businesses that send employees for GST training in 2013 and 2014.
■RM150 million financial assistance for SMEs to purchase accounting software in 2014 and 2015.

steviebull: business associate working in Labuan offshore

TAS management went to China to secure 8 contracts value at RMB513 million

something is brewing

CENSOF WILLR T RECORD PROFIT FROM COMPREHENSIVE INCOME OF RM24 MILLION FROM THE ACQUISATION OF TEB SHARE AT RM0.20 SOON. A MAJOT BOOST TO PE.

INSIDER BOUGHT 5,000,000 SHARES AT RM0.53

News To recap, CENSOF had on 12th of September entered into a conditional share sale and purchase agreement (“SSA”) with Khazanah Nasional Bhd to acquire 45.03% or 349,112,731 shares of RM0.20 each in TIME Engineering Bhd (“TEB”, NOT RATED) for a cash consideration of approximately RM69.82m.

Yesterday, CENSOF was granted approval from Bursa Malaysia to proceed with the takeover offer within two

months from the completion date of the acquisition.

In addition, CENSOF also received concurrence from Securities Commission Malaysia that the offer would not result in a significant change in the business direction or policy of CENSOF upon the acquisition

Expanding customer base. Prior to this, all of TAS’ oil and gas (O&G)-related orders were from Singapore and the United Arab Emirates (UAE), whilst orders for its vessels came from Indonesian mining and timber players. Hence, we are fairly optimistic on this newly-clinched contract as it marks the company’s entry into the Indonesian O&G market. This further allows TAS to diversify its clientele base and mitigate customer concentration risk.

BUY, FV raised to MYR1.18. With the larger orderbook, we are revising our FY14F upward by 2.0% while raising our FV to MYR1.18 from MYR1.15, pegged to a P/E of 9x, which is a 55% discount to its four-year average P/E of 16.5x. We continue to like TAS for its: i) strong orderbook, ii) positive growth prospects in the O&G sector, (iii) ability to capitalise on the low-tax system in Labuan, and (iv) solid balance sheet. TAS is trading at a FY14 P/E of 6.4x.

coming

TP of RM0.72 before the annoucement, RUMOUR. You make your own decision based on RUMOUR.

Dato K bought 2 mil and 1 mill shares at RM0.50 and RM0.515

Completion of acquisation of Time Eng will boost another RM0.25 cents premium

Rumour from Khazanah, implementation of GST in Budget 2014 will be awarded to Censof. Target price to reach before annoucement will be around RM0.72.

Investment holding company Censof Holdings Bhd, which chalked up a revenue of RM44.8 million last year, expects to increase revenue by 20 per cent for the financial year ending December 31, 2013, driven by its ongoing and existing projects.

Group managing director Datuk Samsul Husin said the company had secured multiple projects such as Outcome-Based Budgeting from the Ministry of Finance and from the Social Security Organisation (Perkeso) worth RM22.5 million and RM33.08 million respectively.

"We are confident of achieving a better performance this year based on market developments and business trends," he told reporters after the company's fifth annual general meeting today.

Last year the company, which provides and develops business solutions as well as online payment solutions, surpassed the 2011 revenue of RM43.34 million by 3.3 per cent.




Apart from these projects, the group has also clinched a contract from the Inland Revenue Board (LHDN) worth a total of RM5.6 million for the maintenance of SAGA Century and its related hardware.

Samsul said other than these big projects, the company is also keen on undertaking smaller contracts to help sustain its financial performance.

Asked on its plan to expand into other regions, Samsul said the company is always on the lookout for joint ventures and acqusitions as this year its subsidiary Century Software Sdn Bhd has signed an MoU with Estemarat Service Ltd Liability Co to explore business opportunities in the United Arab Emirates, Middle East and Africa.

"As we are looking forward to regional and international expansion, we expect our Malaysia market to contribute more to the group as our majority clients are Malaysian companies," he said.

Censof Holdings to date has 80 clients in Malaysia both from the private and government sectors.-- Bernama

alex chan, i am not a con man. i read it from business times.

The Directors sold their shares to friendly parties through open market, mark to mark. Withour free float, how to push up. Kahzanah might be the friendly party. Director subscribed the warrant with RM0.46. something is cooking

Censof Holdings Bhd, via its unit Century Software (Malaysia) Sdn Bhd, has won a RM101 million contract from Lembaga Kemajuan Ikan Malaysia (LKIM).

World Indexs will drop further tomorrow. Sell if you can.

Thailand 1,306.12 -23.07 -1.74%
Philippines 5,903.21 -258.00 -4.19%
Malaysia 1,705.80 -16.69 -0.97%
Indonesia 3,980.82 -139.85 -3.39%
India 18,104.90 -453.23 -2.44%

Market crash will pull Sona below RM0.30 and RM0.20 for oridinary share and warrant soon

KUALA LUMPUR: RHB Research is maintaining its Buy call on Ahmad Zaki Resources Bhd (AZRB) with a fair value of RM1.47 after it won a suit over a contract dispute in Saudi Arabia and was awarded RM79.6mil.

The research house said on Tuesday that due to improved sentiment post the 13th General Election, it saw sustained interest in small-cap construction stocks.

“We also like Ahmad Zaki’s defensive non-construction businesses such as bunkering and plantations,” it said.

To recap, Paris-based International arbitrator, International Chamber of Commerce, ordered Alfaisal University/King Faisal Foundation to pay AZRB RM79.6mil over the latter’s claims in an arbitration case involving a construction contract for Phases 1 & 2 of Alfaisal University Campus in Riyadh, Saudi Arabia.

RHB Research described the award as good news for AZRB as the company could now write back the entire amount as an exceptional gain, which will translate into 29 sen per share.

“When the contract ended in dispute in FY10, AZRB bit the bullet by making full provisions for additional costs incurred by the project amounting to RM93.6mil in its FY10 accounts. This resulted in a record net loss of RM61.6mil for that year.

“We maintain our estimates as we exclude one-off items in our forecasts and await full settlement of the award. Assuming the award is paid, the RM79.6mil cash inflow will significantly reduce AZRB’s net debt and gearing of RM109.5mil and 0.52 times respectively as at March 31, 2013 to RM29.9mil and 0.1 times,” said RHB Research.

The research house said it liked AZRB’s strong earnings visibility, backed by its RM2.2bil-strong outstanding construction orderbook as well as two lucrative concessions with a minimum project IRR of 8% in the RM413mil International Islamic University Malaysia (IIUM) campus in Kuantan now under construction, and the RM1.55bil East Klang Valley Expressway (EKVE), which is pending financial close.

“Upon financial close, the EKVE will generate about RM1.5bil worth of internal construction works for AZRB, as well as substantially boost its outstanding construction orderbook to RM3.7bil,” it said

Corporate News Flash

¨ Paris-based International arbitrator, International Chamber of Commerce, has ordered Alfaisal University/King Faisal Foundation to pay Ahmad Zaki SAR92.6m (MYR79.6m) in respect of claims made by Ahmad Zaki against them in an arbitration case with regards to the construction contract for Phases 1 and 2 of the Alfaisal University Campus in Riyadh, Saudi Arabia.

¨ This is a major positive boost to Ahmad Zaki, as it can write back the entire amount as an exceptional gain, which translates to 29 sen per share.

¨ Forecasts are maintained, as we exclude one-off items in our forecasts and pending the settlement of the award.

¨ Assuming the clients do pay up, the MYR79.6m cash inflow will significantly reduce Ahmad Zaki’s net debt (MYR109.5m) and gearing (0.52x) as at 31 March to MYR29.9m and 0.1x respectively.

¨ FV is MYR1.47. Maintain BUY.

Poised for stronger growth
Earnings growth supported by livestock farming and marine products. Starting prawn aquaculture operation
end-2013. Better earnings contribution from Boilermech; nudged up FY14-16 EPS by 1-2%. Maintain BUY with higher RM4.05 TP.

QL‟s venture into prawn aquaculture is in line with the country‟s Economic Transformation Programme. The first phase of the project will cost MYR24m for 100 ponds in Kudat (Sabah); the first 20 ponds will commence operations by Dec 2013.

Total number of treasury shares sold (units) 3,915,000 on 15 Juy 2013

I SELL ALL WA at RM0.495. THANK YOU

Based on the rationale that Redtone sold their treasury share to the market.

Redtone sold 710,000 teasury shares at RM0.710 and RM0.715.

Puncak selected........shareholder is selling at RM072 and RM0715. Even Redtone company itself sell their treasury to the market at RM0710 to RM0715.

Rumour on DTTB contract. Sultan of Johor in favour.

Accumulating!

FM is any one persom manage funds from group of people. I am not refering to Institutional Manager.