1MDB to sell 60% stake in Bandar Malaysia for 7.41bil

KUALA LUMPUR: 1Malaysia Development Berhad (1MDB) will sign a share sale and purchase agreement to sell 60% of its equity in Bandar Malaysia Sdn Bhd to a consortium for RM7.41bil, the final milestone in its rationalisation plan.

The buyer, a consortium known as IWH-CREC Sdn Bhd, is a 60:40 joint venture between Iskandar Waterfront Holding Sdn Bhd (IWH) and China Railway Engineering Corporation.

A press release issued by 1MDB before the start of the ceremony this morning said that the agreement marked the final milestone in the 1MDB rationalisation plan as presented to the Cabinet on May 29.

The agreement follows from the execution of the Binding Term Sheet with IPIC in June 2015 and the Share Sale and Purchase Agreement with CGN Group last month.

The statement said that the IWH-CREC Consortium has valued the Bandar Malaysia land situated in Sungai Besi at RM12.35bil.

"Accordingly, its 60% share will cost RM7.41bil. 1MDB will receive a 10% deposit of RM741mil upon execution of the Share Sale and Purchase Agreement, with completion of the transaction expected by end June 2016."

http://www.thestar.com.my/news/nation/2015/12/31/1mdb-to-sell-stake-in-bandar-malaysia-for-7_41bil/

Puerto Rico to default on some debts, will pay GO debt

Puerto Rico will default for the second time in five months, but will pay the bulk of $1 billion due on Jan. 4, including its most senior debt, Governor Alejandro Garcia Padilla said on Wednesday.

The Caribbean island's biggest payment, $328.7 million in general obligation debt, will be paid, the governor told reporters at a press conference in San Juan. More than half of that payment was made by taking revenues from other commonwealth agencies, he added.

A default on general obligation (GO) debt would have been seen as a more serious stumble because those bonds have the strongest legal protections of any of the island's obligations.

However, it also keeps alive the drama surrounding its deteriorating finances and $70 billion debt load as investors wait for the next shoe to drop.

The default opens the door to potential litigation from affected creditors, while the island must now turn its focus to trying to achieve a consensual debt restructuring with GO holders before its next big payment of $1.9 billion is due in July.

http://www.reuters.com/article/us-usa-puertorico-debt-idUSKBN0UD11B20151230

Technical Ideas - 31 Dec 2015 - IKHMAS (5268)

http://klse.i3investor.com/blogs/bursakakis/88910.jsp

KTC super bullish, already up 32.3 % in 3 trading days. Still a long way before 2016 ends.

@najib zamry...tdm chart wise very nice, breakout from the downtrend line and also bollinger band. Wish you luck.

Technical Ideas - 30 Dec 2015 - CIHLDG (2828)

http://klse.i3investor.com/blogs/bursakakis/88837.jsp

OWG
http://www.stockhut.com.my/news/89372

Poh Huat gets RM4.2 million fire damage claim

PETALING JAYA: Poh Huat Resources Holdings Bhd has received an interim payment of VND22 billion (RM4.2 million), as part of a fire damage claim for its Vietnam factory.

In a filing with the stock exchange, the company said it had received the first portion of VND11.0 billion on Dec 11 and the second portion of VND11.0 billion on Dec 23.

“The total settlement of the claim is pending finalisation and an announcement will be made upon confirmation/acceptance of the same,” it said.

Poh Huat’s factory building and warehouse in the province of Binh Duong caught fire on Aug 23.

The total net book value of the damaged factory buildings together with the plant and machinery are RM2.89 million, while damaged stock are worth RM6.12 million.

http://www.thesundaily.my/news/1649451

The company on Sept 17, had submitted a fire claim of US$3.62 million (RM15.57 million) to the insurance company, Bao Minh Insurance Corp

Poh Huat unit incurs RM9mil losses

PETALING JAYA: Furniture maker Poh Huat Resources Holdings Bhd, whose Poh Huat Furniture Industries Vietnam JSC unit’s factory was damaged in a fire on Aug 23, has assessed the losses at RM2.89mil for plant and machinery while stock losses amounted to RM6.12mil.

The fire had affected two factory blocks, which houses a finishing line and a finished goods warehouse, the company said in a stock-exchange filing

http://www.thestar.com.my/business/business-news/2015/12/29/poh-huat-unit-incurs-rm9mil-losses/?style=biz

Technical Stocks To Watch on 29/12/2015 - PESONA (8311), EFORCE (0065), COCOLND (7205) & TECGUAN (7439)

http://fatta888.blogspot.my/

Stock With Momentum: OKA Corporation

OKA (Fundamental: 2.4/3, Valuation: 1.8/3) triggered our momentum algorithm yesterday, closing 2.7% higher at 96 sen. With six plants scattered across Peninsular Malaysia, OKA is a major precast concrete products manufacturer catering to the infrastructure, construction and highway industries.

There appears no significant development recently save for quarterly results announcement on November 23. For 2QFYMar2016, net profit surged 23% y-y to RM6.2 million despite a 9.8% decline in revenue to RM37.6 million, thanks to favourable sales mix and lower operating expenses.

Concurrently, the company proposed an interim dividend of 1.5 sen per share, which goes “ex” on February 4. Dividends for FY2010-FY2015 ranged from 3 sen to 4 sen, translating into a net yield of 3.1-4.2%.

OKA, one of InsiderAsia’s Top 10 picks, is seen as a beneficiary of proposed infrastructure projects in West Malaysia. The stock currently trades at a trailing P/E of 9.1 times and 1.1 times book.

http://www.theedgemarkets.com/my/article/stock-momentum-oka-corporation

Insider Asia’s Stock Of The Day: UPA Corporation

UPA Corporation Bhd ( Valuation: 2.60, Fundamental: 2.50)

Given prevailing market uncertainties, investors are likely to gravitate towards more defensive stocks with high yields and, better yet, export exposure.

Founded in 1975, UPA (Fundamental: 2.5/3, Valuation: 2.6/3) has grown into one of the leading diary and paper products manufacturers in Asia. The paper and plastic division accounted for 88% of revenue in 2014 with the balance coming from distribution of printing related machines.

We like UPA for its attractive valuations and underlying fundamentals. It has a strong balance sheet with net cash and a good dividend track record. It also stands to benefit from the export business, which accounted for 50.6% of its 2014 revenue.

The company has consistently paid dividends, since 1999. Dividends totaled 8 sen per share annually over the past 2 years, translating into 4.02% yield. Furthermore, net cash stood at RM40.9 million, equating to 26.6% of its RM153.9 million market capitalization.

Additionally, UPA trades at an undemanding trailing P/E of 8.5 times and 0.8 times book. Valuations are cheap relative to its better-known peer, Asia File Corporation BHD ( Valuation: 2.00, Fundamental: 3.00), which currently trades at 13.6 times P/E and 1.7 times book.

Amidst a slew of disappointing corporate results this year, UPA has actually fared very well.

For 3Q2015, revenue rose 20.3% y-y to RM45.2 million, boosted by higher sales from the machine trading segment. In tandem with the revenue growth, net profit surged 76.4% y-y to RM5.7 million. The increased in margin was due, primarily, to higher other income of RM3.8 million as compared to RM2.3 million last year. Netting off the increase in other income would have resulted in 27.7% net profit growth. We believe the improved results can be attributed to their export exposure that benefited from the recent weakening of ringgit

http://www.theedgemarkets.com/my/article/insider-asia%E2%80%99s-stock-day-upa-corporation-1

Agreed with you Icon, paperplane2016 is a sadist. He only ventures into all the thread daily to take & never share. He will later shit on other's good work before leaving.

Just saw this research paper by Wilson & Yoke this morning
http://klse.i3investor.com/files/my/ptres/res33776.pdf

CCK (7035) - More Than Chicken & Egg

http://klse.i3investor.com/blogs/bursakakis/88762.jsp

CCK (7035) - More Than Chicken & Egg

http://klse.i3investor.com/blogs/bursakakis/88762.jsp

Good Gary, Keinhin is in my Top 10 Stocks For Year 2016 posted yesterday

Technical Ideas - 29 Dec 2015 - GHL (0021) | Keinhin (7199)

http://klse.i3investor.com/blogs/bursakakis/88767.jsp

Technical Ideas - 29 Dec 2015 - GHL (0021) | Keinhin (7199)

http://klse.i3investor.com/blogs/bursakakis/88767.jsp

Technical Ideas - 29 Dec 2015 - GHL (0021) | Keinhin (7199)

http://klse.i3investor.com/blogs/bursakakis/88767.jsp

Keinhin, based on latest q earning of 3.08 cts, should be value 1.23 forward PE of 10

Japan factory output drops 1 per cent on-month in November

TOKYO - Japan's factory output fell for the first time in three months in November, data showed on Monday, a sign that weak emerging market demand continues to cloud prospects for a sustained recovery in the world's third largest economy.

But manufacturers expect to increase output in the coming months, offering some relief for the Bank of Japan as it struggles to jump-start growth and accelerate inflation toward its 2 percent target.

Industrial output fell 1.0 percent in November from the previous month, more than a median market forecast for a 0.6 percent decline, trade ministry data showed.

"Factory output is moving sideways," the government said, keeping its assessment on industrial production unchanged from last month.

http://www.cnbc.com/2015/12/27/japan-factory-output-drops-1-percent-on-month-in-november.html

My ultimate purpose is to share. If it's for competition, I won't be showing you my cards. The share price may also run up these few days due to this posting, thus putting me in a disadvantage position.

soros228 http://themalaysianreserve.com/new/story/century-bond-jv-pt-bosowa-corporindo-set-plant-indonesia

27/12/2015 14:13

Vietnam economy grows at fastest pace in five years

HANOI - Vietnam reported that its economy grew 6.68 percent in 2015, the fastest pace in five years, helped by an expanding industrial sector and record foreign direct investment.

The annual growth rate exceeds a 6.55 percent forecast by Prime Minister Nguyen Tan Dung early this month and the official target of 6.2 percent, the government said on Saturday.

In the fourth quarter, gross domestic product (GDP) increased 7.01 percent from a year earlier, accelerating from 6.87 percent in July-September to be the year's best quarter, the General Statistics Office (GSO) said in a report.

The Southeast Asian nation's growth rate has been rising every year since 2012 as the country made reforms after being on the brink of a crisis after a property bubble burst and bad debts soared to reach 17.5 percent of total loans.

The 2015 rate "is an achievement of a five-year period but not a result of efforts of a single year," Nguyen Bich Lam, GSO head, told a media conference.

The GSO said growth has been supported by 9.4 annual percent growth in manufacturing and expansion of 10.8 percent, the highest in five years, for construction.

As of Dec. 15, actual foreign direct investment (FDI) this year was $14.5 billion, or 17.4 percent above the year-earlier figure.

http://www.cnbc.com/2015/12/26/vietnam-economy-grows-at-fastest-pace-in-five-years.html

@koonbee, all depends on next quarter profits. If recent revenue & profits can be maintained, then Icon's tp of 1.40 can be easily achieved.

@koonbee, seacera have many plans but the deals has not been confirmed. Almost all my picks already have firm commitments, either expansions or will be completed in 2016.

My Picks - Top 10 Stocks For Year 2016

http://klse.i3investor.com/blogs/bursakakis/88705.jsp

Bursa Malaysia likely to continue upward momentum

KUALA LUMPUR: Bursa Malaysia is likely to continue its upward momentum next week, with bargain hunting expected to push up the local index.

Affin Hwang Investment Bank Vice-President/Head of Retail Research Datuk Dr Nazri Khan Adam Khan said investors are expected to begin their pre-new year shopping in the last week of 2015.

"December and January are usually the seasonal buying months for stock market investors. With the oil prices starting to rebound, we expect some early buying for next year," he told Bernama.

He said he expects the local bourse to trade at between 1,660 and 1,680 points next week.

The sentiment would also be supported by the US Federal Reserve's decision to finally increase its interest rates, which has resolved uncertainty among investors, giving them a clearer investment direction.

"Also, investors are eagerly awaiting the China stimulus package early in January, which is expected to be in a positive way," he added.

The world's second-largest economy recently concluded its annual planning meeting, pledging to be more proactive and flexible in using fiscal and monetary policy to keep growth in a "proper range".

Back home, Nazri said the movement of the ringgit moving forward and the Trans-pacific Partnership (TPP) are expected to be the key drivers for the FBM KLCI's performance.

"The ringgit should go up as commodity prices rebound," he added.

http://www.thesundaily.my/news/1647573

Soros228, agreed with you.

Technical Ideas - 28 Dec 2015 - Mieco (5001) | Cenbond (7171) 

http://klse.i3investor.com/blogs/bursakakis/88680.jsp

Technical Ideas - 28 Dec 2015 - Mieco (5001) | Cenbond (7171)

http://klse.i3investor.com/blogs/bursakakis/88680.jsp

Congrat Icon, your articles has benefited many. Thank you.

Three Chinese industrial firms say they might miss bond payments

SHANGHAI (Dec 23): Three privately-owned Chinese industrial firms have said they might be unable to make bond payments due in less than a week.

Separate statements from the three unlisted firms were posted on the website of China's interbank market operator on Tuesday.

Huaian Farun Chemical Co and Huaian Jiacheng Hi-Tech Chemical Industry Co said they may be unable to make payments due Dec. 28 on a collective 350 million yuan (US$54.04 million)note maturing that day.

In their statements, both of the firms cited severe operating losses and cashflow difficulties as the reason.

Separately, Henan Sanli Carbon Products Co, a producer of graphite products and electrodes, said that due to business difficulties it was unsure if it could make payments due Dec 27 on a collective 270 million yuan note maturing that day.

In their statements, all three firms said that if they were unable to make payments, bond guarantor China Bond Insurance Co would be responsible for repayment.

During 2015, a growing number of Chinese companies have struggled to make bond payments on time. The construction, heavy industry and mining sectors remain under severe pressure from weak demand and falling factory gate prices.

Nonetheless, high-rated Chinese corporate debt has continued to perform well in the fourth quarter as falling interest rates and other monetary support have helped push down yields. That has raised concerns among analysts that some corporate bonds may be overpriced.

Earlier this year, several Chinese firms warned of defaults on collective notes, which are usually issued by small firms unable to secure credit on their own.

http://www.theedgemarkets.com/my/article/three-chinese-industrial-firms-say-they-might-miss-bond-payments

Rubber glove prices to go up next year

PETALING JAYA: Rubber glove producers are expected to increase product prices next year in a move to alleviate the cost of manufacturing following the latest increase in natural gas tariff, said the Malaysian Rubber Glove Manufacturers Association (Margma).

Margma estimates that this round of increase will mean an additional cost of 40 cents to 70 cents per 1,000 pieces of nitrile gloves and 30 cents to 50 cents for latex gloves.

Margma president Denis Low Jau Foo said in a statement yesterday that the 17.2% increase in the price of natural gas beginning Jan 1, 2016 comes too soon and too suddenly, with just 10 days' notice, and the quantum is too high.

It pointed out that it was only six months ago that Gas Malaysia increased the tariff by 10.27%, on July 1, 2015.

"Whist we understand the move, we are concerned that the announced quantum is too high, too sudden and a burden to us now. The 10 days' notice is too short and makes it difficult for manufacturers to manage the sudden increase in production costs as the selling prices for orders were already fixed months ahead," said Low.

He said that each manufacturer will have to adjust their pricing depending on the product type and their manufacturing costs.

Low noted that while the rubber gloves business is still robust with companies reporting good profits recently, the buyers are actually getting lower and lower price offers.

"The buyers are requesting lower prices every time there is an upward movement in the US dollar and a downward movement on commodity prices. This is resulting in profit margins being squeezed and may eventually hurt the rubber glove industry and the Malaysian economy in general," he added.

Meanwhile, HLIB Research in a separate report yesterday said any revision in the natural gas tariff will impact rubber glove manufacturers as, on average, it constitutes about 10% of total cost production.

"The final impact of the hike will actually depend on how soon rubber glove manufacturers are able to pass it to their end clients, which in our opinion, likely to be about three month lag," its analyst Nick Foo Mun Pang said.

Having anticipated the latest round of tariff increase, Foo has a neutral stance on the rubber products sector.

http://m.thesundaily.my/news/1646214

Multi-Code bags RM240mil contracts to supply Proton parts

KUALA LUMPUR: Multi-Code Electronics Industries (M) Bhd (MCE) expects to generate RM240mil in revenue from newly-clinched contracts to supply anti-theft systems, parking sensors and other parts for Proton cars.

The automotive electronics parts manufacturer told Bursa Malaysia that the five-year contracts also included the supply of power regulator systems, functional switches and ignition key set systems.

The supply of the parts will start in the second and third quarters of MCE’s financial year ending July 31, 2016.

The company estimated the initial investment outlay for the projects from Perusahaan Otomobil Nasional Sdn Bhd is RM1.55mil.

MCE, headquartered in Johor, began operations in 1990 to manufacture and supply car alarm systems, central locking and power window regulators. It has grown to become an original equipment manufacturer (OEM) specialising in a full spectrum of design, manufacture and supply of automotive electronics and mechatronics parts for the Malaysian and regional markets.

MCE shares gained 1 sen to close at 84 sen on Wednesday.

http://www.thestar.com.my/business/business-news/2015/12/23/multi-code-bags-rm240mil-contracts-to-supply-proton-parts/?style=biz

Thong  Guan  Industries  may  trend  higher  after  inching  above  the MYR2.87 level in its latest session.  Traders may buy as a bullish bias could  be  present  above  this  level,  with  a  target  price  of  MYR3.30. The stock may consolidate  if it falls back below the  MYR2.87  mark. In  this  case,  further  support  is  anticipated  at  MYR2.63,  where traders  can  exit  upon  a  breach  to  avoid  the  risk  of  a  further correction.
Sourse : RHB Research 23 Dec 2015

Magni-Tech 2Q net profit soars, pays 8 sen dividend

KUALA LUMPUR: Garments and plastic packaging products manufacturer Magni-Tech Industries Bhd saw its net profit soar 2.7 times year-on-year (y-o-y) to RM21.63 million in its second quarter ended Oct 31, 2015 (2QFY16) from RM8 million, largely due to the stronger US dollar against the ringgit during the period.

Revenue for the quarter rose 21.8% y-o-y to RM197.34 million from RM162.04 million, its filing with Bursa Malaysia yesterday showed.

The company also declared an interim dividend of five sen per share, along with a special dividend of three sen per share for the financial year ending April 30, 2016 (FY16). Both dividends are payable on Jan 26, 2016, and will go ex on Jan 7.

The group said its profit before taxation for the current quarter rose by 165%, mainly due to higher garment revenue and higher other operating income, which came about from the favourable currency exchange rate, and positive results from ongoing productivity improvement and cost-control measures.

It highlighted that its garment business was a beneficiary of the stronger greenback, which resulted in a 27.5% increase in the segment’s revenue, though that was partly offset by a 2.6% fall in revenue from its packaging business.

For the first half of its financial year (1HFY16), net profit more than doubled y-o-y to RM37.2 million from RM18.09 million, as revenue rose 15% y-o-y to RM391.16 million from RM339.28 million.

Going forward, the group expects its garments business to remain its major revenue contributor — it accounted for about 84.8% of its revenue for the financial period — and expects both its business divisions to remain profitable for the remainder of FY16.

Magni-Tech fell two sen or 0.48% to RM4.18 yesterday, which valued it at RM680.22 million.

US consumers lend economy a boost in November

WASHINGTON (Dec 22): US consumer spending picked up in November as households loosened their purse strings at the start of the holiday shopping season, boosting prospects for fourth quarter economic growth.

Spending rose by 0.3% last month after holding steady in October, according to data inadvertently released late on Tuesday by the Commerce Department.

http://www.theedgemarkets.com/my/article/us-consumers-lend-economy-boost-november

Insider Asia’s Stock Of The Day: REXIT (23/12/2015)

http://klse.i3investor.com/blogs/the_edge_insider_asia_stock/88607.jsp

Technical Ideas - 23 Dec 2015 - TGuan (7034)

http://klse.i3investor.com/blogs/bursakakis/88580.jsp

OPENSYS (0040): Price has breakout above the RM0.305 level. TP: RM0.325-RM0.345. SL: RM0.28.

Source :M+Online Research - 22 Dec 2015

Solution Engineering was testing the MYR0.42 resistance level in its latest session. Traders may buy if this level is breached in the near term, with a target price of MYR0.45, followed by MYR0.475. In the meantime, the stock may drift sideways if the MYR0.42 level cannot be breached. Support may be found at MYR0.395, where traders can exit upon a breach to avoid the risk of a further correction.

Source: RHB Research - 22 Dec 2015

Technical Ideas - 22 December 2015 - Solution (0093) | OpenSys (0040)

http://klse.i3investor.com/blogs/bursakakis/88510.jsp

Technical Ideas - 22 December 2015 - Solution (0093) | OpenSys (0040)

http://klse.i3investor.com/blogs/bursakakis/88510.jsp

Technical Ideas - 22 December 2015 - Solution (0093) | OpenSys (0040)

http://klse.i3investor.com/blogs/bursakakis/88510.jsp

Brahmal takes up stake in Instacom

Creador chief buys 2% in construction outfit on personal capacity

PETALING JAYA: Brahmal Vasudevan (pic), the founder and chief executive officer (CEO) of private equity firm Creador Sdn Bhd, has emerged as one of the investors who took up shares in Instacom Group Bhd via a private placement.

He acquired the 2% stake in the construction company on his own personal capacity.

Based on the placement price of 25 sen each, Brahmal would have paid about RM10mil for his portion of shares.

Shares in Instacom was last traded at 27.5 sen yesterday, giving it a market value of RM643mil. It was the most actively traded counter yesterday with 90.37 million shares transacted.

It was believed that Brahmal acquired the shares in his own personal capacity because the investment amount involved was too small for Creador to consider.

Brahmal has become as one of the most prolific investors having purchased shares in a number of relatively small, but fast growing and exciting companies.

Previous reports had named him as a shareholder in Mulpha Land Bhd, SMRT Holdings Bhd, Scicom (MSC) Bhd, MyEG Services Bhd and GHL Systems Bhd.

Meanwhile, the fund he manages has taken stakes in companies such as IFCA MSC Bhd, Oldtown Bhd, Asiamet Education Group Bhd and Bonia Corp Bhd. It also has investments in Indonesia and India, two of the most attractive markets in Asia because of its large domestic market.

“Creador largely goes into companies with strong consumer business. When it is too small for the fund, sometimes Brahmal takes a position in his personal capacity,” said an investment banker familiar with the group.

Brahmal’s interest in Instacom could be driven by the company’s exciting growth prospects.

CIMB Research in recent reports named Instacom as a proxy play to the growing tide of foreign direct investment from China.

The firm has a target price of 67 sen for the stock, based on its break-up value.

Instacom’s private placement exercise would raise RM58.5mil in fresh capital for the group, which it can quickly utilise to take advantage of new orders from China Railway Construction Corp Ltd (CRCC).

It has recently proposed to change its name to Vivocom International Holdings Bhd, to reflect its transformation to a full-fledge construction company.

Vivocom is the inhouse contractor for the global Chinese construction giant. It had bagged contracts totalling more than RM350mil from CRCC Malaysia Bhd in recent months.

“We have imputed contract wins of RM3bil in 2016 into our earnings forecasts. A contract award of RM2bil-RM3bil by CRCC would meet our order book win estimate,” CIMB Research said in a note dated Dec 6.

The Government, earlier this month, has awarded the Gemas-Johor Baru electrified double tracking project to CRCC. The project is worth an estimated RM8bil.

http://www.thestar.com.my/business/business-news/2015/12/19/brahmal-takes-up-stake-in-instacom/?style=biz

CIMB Research sees Komtar theme park boosting Only World Group

KUALA LUMPUR: CIMB Equities Research expects Only World Group’s (OWG) share price to be given a boost from the proposed theme park at Komtar in Penang.

The research house said on Friday it visited Komtar recently for a progress update on the state of launch readiness.

Its earlier expectation was for a launch in two phases, which were December 2015 and February 2016.

“It appears that this has now been changed to a single grand launch on April 1, 2016 so that the project becomes a single coherent destination where all attractions and destinations are ready. As a result, we lower our FY16 EPS by 10% to account for the delay,” it said.

CIMB Research said although Komtar will be launched on a single date, the various components are still targeted to be completed in two phases.

In phase one (end-January 2016), the themed attractions 1) I Love Penang gallery, 2) Doraemon, 3) Haunted House, 4) 5D Sea Explorer and 6) Playoke will be completed.

In phase 2 (mid-Feb 16), 1) Jurassic Park, 2) Zodiac Park, 3) Mirror Maze, 4) Milliondollar Carousel and 7D Planetarium Dome will be ready.

“Our current assumption of a blended ticket rate of RM15 (@1m visitors per annum) for the observation deck is conservative. Based on comparative pricing for tickets in KL Tower and Petronas Twin Towers, Komtar could potentially earn a blended ticket rate of RM40.

“This would lift our FY16-18 EPS forecasts by 11-46% and could raise our share price valuation to RM6.95.

“We have not imputed any revenue and profit contributions from the themed attractions at Komtar in our forecasts as ticket prices have not yet been finalised,” it said.

CIMB Research said based on OWG’s historical ticket prices in Genting Highlands, an average RM30 a ticket is not unreasonable.

At pretax margin of 30%, the themed attractions division could lift FY16- 18F EPS by 10-25% and could raise our share price valuation to RM6.03.

“Komtar opening could lift OWG to RM8 If we include the upside potential both from higher ticket prices and the themed attractions, our FY16-18F EPS could rise by 16%-71%, which could lift our share price valuation to RM8.

“As with all construction projects, the biggest risk to our earnings projections is further delays in the launch of Komtar,” it added.

http://www.thestar.com.my/business/business-news/2015/12/18/cimb-research-sees-komtar-theme-park-boosting-only-world-group/?style=biz

Gadang gets RM185m contract from Petronas

KUALA LUMPUR (Dec 17): Gadang Holdings Bhd ( Valuation: 1.80, Fundamental: 1.70) has secured civil and infrastructure works from Petroliam Nasional Bhd (Petronas) at Pengerang, Johor, worth RM185 million.

In a filing with Bursa Malaysia today, the civil engineering outfit said its wholly-owned subsidiary, Gadang Engineering (M) Sdn Bhd has been awarded with the contract by PRPC Utilities and Facilities Sdn Bhd, a subsidiary under the Petronas Group last Friday (Dec 11).

Gadang is tasked to undertake a project known as "Utilities, Interconnecting, Offsite (UIC) facilities: procurement, construction and commissioning (PCC) of civil and intrastructure works" at Storm Water East Area at Pengerang, Johor.  

The contract will commence from the date of the contract award, with a contract period of 20 months.

Gadang expects the contract to contribute positively to its earnings for the financial year ending May 31, 2016 onwards.  

Shares in Gadang closed up one sen or 0.46% at its five years high of RM2.17 today, for a market capitalisation of RM503.14 million.

http://www.theedgemarkets.com/my/article/gadang-gets-rm185m-contract-petronas

Comintel's 3Q net profit up 457.89% on strong USD

KUALA LUMPUR (Dec 17): Comintel Corporation Bhd ( Valuation: 1.50, Fundamental: 0.55) saw its net profit soar five folds or 457.89% to RM4.86 million or 3.47 sen per share in the third quarter ended Oct 31, 2015 (3QFY16), from RM871,000 or 0.62 sen per share a year ago, on higher profit margins from its manufacturing sector and the strengthening of the US dollar.

In a filing with Bursa Malaysia, Comintel said its revenue in 3QFY16 rose 31.13% to RM109.85 million, from RM83.77 million in the third quarter of financial year 2015 (3QFY15).

For the first nine months of financial year 2016 (9MFY16), the company recorded a net profit of RM7.6 million or 5.43 sen per share, from a loss of RM1.97 million.

Revenue increased 19.43% to RM267.91 million in 9MFY16, from RM224.33 million in 9MFY15.

In accompanying notes, Comintel said profitability improved on account of higher profit margins contributed by the manufacturing segment.

The company also said strengthening of the US dollar, shipment of better margin products and cost improvement initiatives, have helped to improve profit margins.

The manufacturing segment recorded an increase in revenue of RM23.2 million to RM105.2 million, due to more products shipped in 3QFY16, as well as the strengthening of the US dollar against the ringgit.

The company said its communication and system integration segment saw an increase of RM2.5 million to RM4.3 million, due to the completion of more projects in 3QFY16.

Noting that it is cautiously optimistic over its performance for the rest of the current financial year, Comintel said it foresees a strong demand for its commercial products and expects the manufacturing segment to continue to drive the group’s performance.

The company also noted the strengthening of the US dollar has contributed positively to its profitability.

Comintel also said it only expects its renewable energy sector to contribute to the group’s earnings after the second half of next year, due to technical difficulties faced with its 2 megawatt (MW) plant renewable energy plant, planned to be constructed in Kuang.

“For our green energy sector, due to some unforeseen technical issues to synchronise the engines and feedstock, supplies are not in accordance with the agreed sizes as per contract signed with the supplier; we are not expecting to commission our first 2MW advanced gasification (thermal decomposition) renewable green energy plant in Kuang by the end of this year,” the company said.

“These issues are being rectified with the suppliers now and we expect the Initial Operation Date (IOD), and the Feed in Tariff (FiT) Date to be in the first half of next year,” it added.

Comintel said it has alerted the Sustainable Energy Development Authority Malaysia (SEDA) on the problems the company is facing, seeking an extension to the IOD of the plant FiT to April 30, 2016 and May 31, 2016 respectively.

Comintel (fundamental: 0.55; valuation: 1.5) shares closed 3.5 sen lower at 37 sen today, for a market capitalization of RM51.8 million.  

http://www.theedgemarkets.com/my/article/comintels-3q-net-profit-45789-strong-usd