GHL, Managepay on steady rise after Bank Negara move

Since Bank Negara announced its Payment Card Reform Framework early this year, there has been obvious traction and new developments in the payment industry.

This is evident in the share price performance of GHL Systems Bhd and Managepay Systems Bhd (Mpay), the two direct beneficiaries of Bank Negara’s measures.

Year to date, GHL Systems is up 68% to RM1.20, while Mpay is up 55.81% at its current price of 33.5sen.

Both stocks are viewed as growth stocks, and not surprisingly are trading at rich valuations. Mpay trades at 91 times its historical price-earnings ratio while GHL trades at 95 times.

Are they benefitting simply because Bank Negara is making it compulsory for more card terminals to flood the market? Among its many measures to push Malaysia into a cashless society, Bank Negara is looking to increase card terminals from 220,000 presently to 800,000 over the next five years.

The 800,000 terminals roughly translates to 1.2 million card acceptance devices.

So yes, GHL Systems and Mpay will benefit, as they are suppliers of the payment terminals. However, just making a commission from selling these terminals do not make an exciting story. It definitely does not justify the stocks’ rich valuations.

GHL System has openly stated that it is looking to be Asean’s largest merchant acquirer. It currently holds a 25% market share in Malaysia for the payment devices, supplying 50,000 out of the 220,000 terminals in the country.

Outside of Malaysia, it has the lion’s share in the Philippines market, supplying about half of the 120,000 terminals in the archipelago.

Meanwhile, Mpay has stated that out of the 1.2 million card acceptance devices to be installed over the next 5 years. it is looking to capture 10% to 20% of that share.
Observers in the industry say that the main action for the payment players lie in the potential for third party acquirers (TPA).

Now this is something which both Mpay and GHL are starting to make huge inroads into. It is a known fact that most of the foreign banks aren’t in the business of acquiring merchants, but only issue cards. Hence it is very likely that the foreign banks will be the ones that will require TPA services.

A TPA owns the merchant relationship and therefore signs up the merchants in its own right, including performing credit and risk assessment.

The role of receiving and handling the sales proceeds still falls with the sponsor bank.

“In other words, the TPA earns a higher fee and gets to act like a ‘pseudo bank’,” says the observer. The slew of TPA announcements by GHL Systems and Mpay in the last two months have pointed to the fact that there is a push not just because of Bank Negara’s measures, but because there is an immense gap in the development of modes of payment in Malaysia. Most developed countries, including the Australia, New Zealand and the UK conduct the bulk of transactions via cards.

With more than 90% of Malaysian transactions being conducted in cash, the opportunities to capitalise on new cashless methods are there for the taking.

Perhaps that is another reason why payment stocks typically trade at a high PE. They are mostly valued based on the amount of transactions they process.

For 2014, ManagePay processed in excess of RM100mil worth of transactions and is looking to scale this up to RM500mil in 2015, and closer to RM2bil to RM3bil in five years’ time. Mpay has actually been on a roll in releasing announcements to Bursa over the last two months.

Earlier this week, Mpay’s wholly-owned subsidiary, ManagePay Resources Sdn Bhd (MRSB), registered as a UnionPay TPA provider provider.

Upon registration, Mpay will be responsible for switching and gateway services, system operation and product management of UnionPay card issuance in Malaysia, Myanmar, Thailand, Singapore and Indonesia.

UnionPay is a bankcard association based in China. Deemed as China’s own version of Visa and MasterCard, UnionPay card is most widely used in China and among Chinese tourists.

Not to be left out, GHL on Thursday inked a deal with CIMB Bank Bhd to provide payment facilitator or TPA services to the bank.

Under the agreement, GHL, which will act on behalf of CIMB Bank, will acquire between 3,000 and 4,000 merchants this year, enabling them to accept payments from the various international associations.

The strategy would also see the deployment of conventional electronic data capture terminals and mobile point-of-sales devices as well as e-Commerce, apart from offering e-pay services (mobile prepaid reload and bill payment collection services) to merchants.
It is in fact GHL’s objective of becoming Asean’s largest merchant acquirer.

In February, Mpay received a letter of approval from Bank Negara to issue electronic money (e-money) via the proposed online wallet (Mpay Balance) and prepaid card (Mpay MasterCard).
http://www.thestar.com.my/Business/Business-News/2015/04/25/Payment-system-operators-benef

Ares Green will be announcing Q1 financial result on April 30.....stay tuned....;)

Ringgit likely to stay at 3.5 level in medium term, says CIMB

The ringgit, which is at its two-month high at the 3.5 level against the US dollar today, will likely stay at the current level for the medium term, said a trader.
CIMB Regional Head of FX and FXO Trading, Selvaraj Sinnan, said foreign holdings of Malaysian Government Securities remain stable at between 40 and 45 per cent despite the lower ringgit, signalling foreign investors' confidence.
"Going forward, with Bank Negara Malaysia's assurance that interest rates will remain accommodating, Malaysia will remain attractive to foreign investors," he told reporters on the sidelines of the Invest Malaysia 2015 conference here today.

The two-day event, which ended today, was jointly organised by Bursa Malaysia and CIMB Group.

Selvaraj said traders have also started to shift their focus away from the 1Malaysia Development Bhd debt issue, which had weighed on the local note over the last five months, as it had been well-factored into the market.

"If you ask me, this non-economic factor is not a factor anymore," he added.

Meanwhile, CIMB Chief Economist Dr Arup Raha said the delay in the US interest rate hike would drive the ringgit upwards as the greenback's rally pauses.

He said he expects Federal Reserve Chair Janet Yellen to increase the country's borrowing cost only in December, with the change expected to be "a very shallow glide path".

"If she is late to raise the rates, her problem will be inflation but she has the instruments to deal with that.

"On the other hand, if she increases the rates early, the economy will capitulate and she will be left with no instruments and she cannot go back to quantitative easing," he added.-Bernama
http://www.thestar.com.my/Business/Business-News/2015/04/24/Ringgit-likely-to-stay-at-3-5-level-in-mediem-term-says-CIMB/?style=biz

MYR : Strengthening Against USD

Looking at Chart 1, we can see that USD/MYR has just broken its uptrend line, SS support at 3.65. At the same time, USD/MYR has broken below the line connecting the recent peaks in 2005 & 2008, which is the resistance-turned-support at 3.65 (see Chart 2). This means that USD/MYR is likely drift down to 3.50 or 3.35 over the next 3-6 months.

The drop in USD/MYR may not be attributable to the strengthening of our Ringgit. It is likely to be the weakening of the US Dollar, which has a fine rally over the past 12-15 months. If we look at Chart 3, we can see that SGD/MYR is still in the uptrend with support at 2.68. Then again, SGD/MYR has been in an upward channel for the past 10 years (see Chart 4). The immediate support & resistance at 2.50 & 2.75, respectively.

http://nexttrade.blogspot.com/

Ireka expects stake in Aseana Properties realised this year

Ireka Corporation Bhd expects its 23% stake in London-listed Aseana Properties Ltd to be realised as early as this year.

Ireka’s new executive chairman Datuk Lai Siew Wah said Aseana Properties plans to sell its assets and return its capital to its shareholders, including Ireka.

Aseana Properties’ core activities are acquisition, development and redevelopment of upscale residential, commercial, hospitality and healthcare projects in the major cities of Malaysia and Vietnam. 

He said that he was delighted with Ireka’s strategy for development over the next few years, especially as it approaches its our 50th birthday in 2017. 

“I am also hopeful that with Aseana’s plans to realise their assets, we will be able to get our capital returns. Ireka is determined to continue providing value for our shareholders and this is the board’s top priority,” he said in a statement released after its shareholders meeting.

Ireka met shareholders on Thursday on the single issue of disposing its land in Senawang, Negeri Sembilan to Japanese-owned Aeon for RM53.66mil. The 20.88 acre site would be for a shopping centre to serve Seremban, Seremban 2 and Kuala Pilah. 

Ireka’s unit, Ireka Engineering & Construction Sdn Bhd, which is selling the land, will also undertake to build  the shopping centre and car park for a total maximum price of RM203.14mil. The disposal price to Aeon includes land conversion premium, earthworks and infrastructure costs.  

This transaction provides a good opportunity for Ireka to employ its capability as both a developer and design & build contractor to serve multi-national corporations such as Aeon.  

Not only is Ireka able to source, purchase and improve on a piece of land in terms of approvals, it can also build on the land, giving AEON a hassle-free option to developing a shopping centre.

Ireka has projects with a total gross development value of RM2bil which will  keep the company busy for the next five years. 

“It is always the company’s intention to expand into property development, particularly in the mid-market section and this is why Ireka has launched its new zenZ brand in 2014. 

“Properties under the zenZ brand include the Kasia Greens development in Nilai which is 100% sold and due to be handed over to the owners this month. 

“Two other projects, Dwi@Rimbun Kasia Courtyard Homes, also in Nilai and ASTA Enterprise Park (Ireka’s first foray into the industrial sector), located in Kajang are expected to come on stream over the next few months,” it said.

Ireka’s construction order book is about RM1.4bil of which RM900mil is still outstanding. 

http://www.thestar.com.my/Business/Business-News/2015/04/23/Ireka-expects-stake-in-Aseana-Properties-realised-this-year/?style=biz

Eco World plans to list SPAC in H2 of 2015

Eco World Development Group Bhd (EW Bhd) expects to list its special-purpose acquisition company (SPAC), Eco World International Bhd, in the second half of this year. 

EW Bhd chief executive officer Datuk Chang Khim Wah said on Thursday that the group was still waiting for necessary approvals to list Eco World International, the country’s first property SPAC.

The SPAC, which will raise funds to acquire overseas real estate assets, is expected to raise about RM1.5bil.

EW Bhd has proposed to subscribe to a 30% stake in the enlarged paid-up capital of the SPAC on completion of the latter’s listing, for an indicative consideration of RM562.5mil.

In January, Eco World Investment Co Ltd, a private vehicle controlled by EW Bhd chairman Tan Sri Liew Kee Sin and executive director Datuk Voon Tin Yow, acquired a 75% stake in Eco World Ballymore Holding Co Ltd, which is developing three large-scale residential projects in London. Ballymore Group, the other party in the venture, is a property investment and development firm with over 30 years of experience in the UK property markets.

These projects, with a total gross development value of £2.3bil (RM12.5bil), will be injected into the SPAC.

According to a report, Liew expects the developments to attract more than 50% take-up rate from the locals in the UK. It was reported that there would be about 2,500 units of private residential apartments on the three sites.

http://www.thestar.com.my/Business/Business-News/2015/04/23/Eco-World-plans-to-list-SPAC-in-H2-of-2015/?style=biz

Eco World aims for RM4b sales in 2016

Property developer, Eco World Development Group Bhd, aims to achieve RM4 billion in sales for its financial year ending Oct 31, 2016, chief executive officer Datuk Chang Khim Wah said.

"For the current financial year, the company is eyeing RM3 billion," he told reporters at Invest Malaysia 2015 here today.

Chang, who is also Eco World president, said the sales targets for both years were on the back of strong sales momentum and high pre-sales registration.

"The group has achieved cumulative sales of RM3.8 billion over the last 16 months, including RM621 million in the first four months of financial year 2015.

"The prospects for the property market remain strong," he said.

He said the strong sales numbers were contributed by the group's projects in Iskandar Malaysia -- Eco Botanic, Eco Spring  and  Eco Summer and Eco Business Park I.

In Klang Valley, its two projects -- Eco Sky and Eco Majestic -- also continued to perform well, he said.
Chang said the company was highly selective in acquiring land to ensure that it was in the correct market segments and in the right locations.

Presently, the company has 209.8 hectares with a total gross development value of RM65 billion, he said. 
On its listing of RM1.5 billion special-purpose acquisition company (SPAC), Chang said the plan was on track for the second half of this year.

However, he said, the proposed listing was now pending regulatory approval.

"Under the proposed listing, the SPAC will be named Eco World International Bhd, which would be Malaysia's first property SPAC," he said.-Bernama

http://www.thestar.com.my/Business/Business-News/2015/04/23/EcoWorld-aims-for-RM4b-sales-in-2016/?style=biz

GHL to provide payment facilitator services to CIMB

GHL Systems Bhd ( Financial Dashboard) has signed an agreement to provide payment facilitator or third party acquisition (TPA) services to CIMB Bank Bhd.

Under the agreement, GHL will seek to acquire between 3,000 and 4,000 merchants on behalf of CIMB Bank in the first year. These merchants will then be able to accept payments from the various International Card Associations.

“Revenue earned by GHL is derived from terminal rental and merchant discount rates, which will continue as long as GHL signs-up merchants for card acceptance as a TPA with CIMB Bank,” said GHL in a statement today.

It said the strategy going forward will involve the deployment of conventional electronic data capture terminals and mobile point of sales devices as well as e-Commerce.

GHL will also offer e-pay services, such as  mobile prepaid reload and bill payment collection services, to these merchants as value-added services.

“This will be truly unique to GHL, as it will be the only company in Malaysia to be able to offer small and middle enterprise (SME) merchants cashless payment acceptance as well as the ability to earn additional revenue via e-pay products and services,” said GHL.

“CIMB Bank has a strong presence in the smaller enterprise segment of the SME market and this initiative will enable both CIMB Bank and GHL to increase our penetration into this segment. This collaboration closely follows GHL’s other deals in Thailand and the Philippines, in line with GHL’s objective of becoming ASEAN’s largest merchant acquirer,” said GHL group chief executive officer Raj Lorenz.

“In addition to this, the tie-up is aligned with BNM’s objective of increasing cashless payment acceptance points to its target of 800,000 payment devices by 2020,” Lorenz added.

http://www.theedgemarkets.com/my/article/ghl-provide-payment-facilitator-services-cimb

TMC Life Sciences 3Q net profit jumps 66%

TMC Life Sciences Bhd has posted a 66.7% jump in net profit for the third quarter ended Feb 28, 2015 at RM2.9 million, from RM1.7 million a year before on higher revenue and interest income.

Revenue for the quarter was 21.6% higher at RM26.4 million, compared with RM21.7 million previously.

“Higher revenue was contributed by higher patient load catered for by expanded bed capacity and additional consultants recruited,” said the group in a Bursa Malaysia filing.

For the nine months ended Feb 28, net profit rose 57.3% to RM5.9 million, from RM3.8 million a year ago, while revenue was RM74.7 million, 19% higher from RM62.7 million previously.

TMC (fundamental: 2.5; valuation: 0.5) said the higher revenue had been contributed by additional bed capacity and more variety of services offered coupled with continuing marketing activities.  

“Rising costs remain a concern and the introduction of Goods and Services Tax will have to be managed carefully by private hospital operators. Malaysian economy appears to be slowing down. Many of our supplies and drugs are imported products and these costs will be adversely affected by the weakening ringgit.

“Nonetheless, the directors are optimistic that the company will continue to grow in the current financial year and the company continues to expand the breadth of services through attracting medical, nursing and allied health talents,” said the group of its prospects.

TMC shares closed 0.5 lower at 68 sen, for a market capitalisation of RM815.67 million.

http://www.theedgemarkets.com/my/article/tmc-life-sciences-3q-net-profit-jumps-66

Coastal Contracts secures rig sale worth RM807 mil

Ship builder Coastal Contracts Bhd has secured a sale order for one unit of Jack-up Drilling Rig (JUDR) to a ‘reputable’ oil company, for RM807 million.

Coastal Contracts (fundamental: 2.6; valuation: 1.8) told Bursa Malaysia that its wholly-owned subsidiaryThaumas Marine Pte Ltd ( Financial Dashboard) had secured the order today, and is expected to deliver the JUDR in third quarter of 2015.

The deal is expected to contribute positively to the top and bottom line performance of the group for the financial year ending Dec 31, 2015, according to Coastal.

“I am pleased to announce that Coastal Group has secured a sale order of its first JUDR. With the latest sale, our cumulative sales order book has further increased to a high of RM1.92 billion, balanced with our long term charter contract for Jack-up Gas Compression Service Unit (JUGCSU) in Mexico,” Coastal Contracts’ executive chairman Ng Chin Heng said in a statement.

Currently, the group has a total order book of RM3.26 billion, of which the JUGCSU charter contract for Mexican state-owned petroleum company Petroleos Mexicanos constituted RM1.34 billion; while the remaining came from vessels sales and the aforesaid JUDR sales, which constituted RM1.11 billion and RM807 million respectively.

“The decision to sell our first JUDR was in order to reduce the company’s exposure to a potential downturn in the drilling market,” Ng explained.

Ng also said the management believes the sale of JUDR is a positive move, given the current market environment.

“On our second unit of JUDR, we are in the midst of negotiating a drilling contract with potential charterers. The construction for the second JUDR is progressing smoothly and we expect the construction to be completed by the fourth quarter of 2015,” he added.

Coastal Contracts’ share price fell one sen or 0.33% to RM3.01 today, valuing it at RM1.6 billion.

http://www.theedgemarkets.com/my/article/coastal-contracts-secures-rig-sale-worth-rm807-mil

Frontken up as much as 9%, sees continued interest from Apple chip demand

Frontken Corp Bhd ( Financial Dashboard) rose as much as 9% during the morning trade today, possibly on continued positive investor interest after news that Apple Inc had awarded nearly a third of its A9 chip orders to Taiwan Semiconducting Manufacturing Co (TSMC).

Frontken (fundamental: 1.8; valuation: 0.3) has a 57.79% stake in Taiwan-listed Ares Green Technology Corp, which counts TSMC as one of its clients.

Ares Green provides ultra-cleaning services, anodising treatment, electro and chemical polishment and other reburshiment services for the semiconductor and optoelectronic products.

A remisier told theedgemarkets.com that the recent run up in Frontken’s share price could be due to the news, but he believes it has already been priced in.

“Since TMSC has beat out its competition to secure the chip orders for the new iPhones, the entire value chain has benefitted from the spillover effects,” he said.

At 2.44 pm, the stock was two sen or 7.27% higher at 29.5 sen after some 132.07 million changed hands, making it the most actively-traded counter across the bourse. The current price gives it a market capitalisation of RM314.54 million.

Over the last year, the stock has risen 114.29%; it gained some 71.43% since April 7 alone.

Frontkn was also recently featured in the Stocks with Momentum column in The Edge Financial Daily on April 13.
http://www.theedgemarkets.com/my/article/frontken-much-9-sees-continued-interest-apple-chip-demand

AllianceDBS Research 22/4/15

Technical Buy - Coastal 3.02
TP 3.25 - 3.30
Cut-Loss - 2.96

ManagePay becomes third party service provider for UnionPay

ManagePay Systems Bhd’s wholly-owned subsidiary, ManagePay Resources Sdn Bhd (MRSB), has received a letter of notification from UnionPay International Co Ltd, on the registration of MRSB as a UnionPay third party service provider.

Upon registration, the electronic payment solutions provider will be responsible for switching and gateway services, system operation and product management of UnionPay card issuance in Malaysia, Myanmar, Thailand, Singapore and Indonesia.

“MRSB is responsible to apply to UnionPay in advance if MRSB desires to expand or change the services type and/or territory other than those listed above,” said ManagePay (fundamental: 1.5; valuation: 0.6) in a filing to the exchange.

UnionPay is a bankcard association based in the People’s Republic of China. Deemed as China’s own version of Visa and MasterCard, UnionPay card is most widely used in the mainland and among Chinese tourists.

ManagePay closed 1.5 sen higher at 32.5 sen, translating to a market capitalisation of RM124.83 million.

http://www.theedgemarkets.com/my/article/managepay-becomes-third-party-service-provider-unionpay

Yee Lee now an exclusive Red Bull distributor

Fast moving consumer products distributor Yee Lee Corp Bhd is once again the distributor for the ‘Red Bull’ energy drinks in Malaysia – and this time on an exclusive basis. It will be the sole distributor of the drinks here from Aug 1, 2015.

In a filing with Bursa Malaysia today, Yee Lee (fundamental: 1.0; valuation: 0.8) said its wholly-owned subsidiary Yee Lee Marketing Sdn Bhd entered into a distribution partnership agreement with Allexcel Trading Sdn Bhd today.

The agreement sees the appointment of Yee Lee Marketing as Allexcel’s exclusive distributor to market, distribute and sell Red Bull Gold, Red Bull Less Sugar, and Red Bull Bottle energy drinks in Malaysia.

“The agreement is for a period of five years commencing from Aug 1, 2015 (initial term) and shall automatically be renewed for further periods of two years upon each anniversary thereof (subsequent terms) unless or until rescinded or terminated by either party giving to the other party a written notice at least three months prior to the expiry date of the initial term or subsequent terms,” the filing read.

Yee Lee also said the agreement is expected to contribute positively to its future profits from financial year 2016.
http://www.theedgemarkets.com/my/article/yee-lee-now-exclusive-red-bull-distributor

Why Europe’s stock rally has a long road ahead

The potential for a "great rotation" into European stocks from bonds could be on the way, given low -- or even negative -- yields in government bond markets, one equity strategist told CNBC Monday.

"We still see, particularly in Europe, the potential for a great rotation," Neil Dwane, CIO for European Equities at Allianz Global Investors, told "Squawk Box" Europe.

"We think there's over 5 trillion euros ($5.37 trillion) now of cash and bonds that yield nothing, whereas even if you just buy a European index ETF [Exchange Traded Fund] you get a yield of 3.1 percent," he said.

A 1 trillion euro stimulus program from the European Central Bank has helped drive government bond yields lower across the euro zone.

http://www.cnbc.com/id/102600775

KWAP emerges as Hovid substantial shareholder

Kumpulan Wang Persaraan (Diperbadankan) (KWAP) has emerged as a substantial shareholder in Hovid Bhd.

Filings with Bursa Malaysia on Monday showed the pension fund held 5.3% or 40.547 million shares as at April 9.

KWAP bought five million Hovid shares on April 8 from the open market and increased its stake to 38.547 million shares or 5.042%.

On April 9, it bought two million shares and raised the stake further to 40.547 million shares or 5.303%.

Hovid’s pharmaceutical division manufactures and markets more than 350 types of ethical drugs, health and dietary supplements.

http://www.thestar.com.my/Business/Business-News/2015/04/20/KWAP-emerges-as-Hovid-substantial-shareholder/?style=biz

China surprised cut bank ratio may spur further rally
Posted in Uncategorized on 19/04/2015 by J&J 35

We suppose to expect a correction ahead for next week. A sudden move by China cut bank ratio to spur growth may revert the trend and push HSI and regional markets higher. A bull market needs liquidity and that’s the momentum now

China makes big cut in bank reserve requirement to fight slowdown

China's central bank on Sunday cut the amount of cash that banks must hold as reserves, the second industry-wide cut in two months, adding more liquidity to the world's second-biggest economy to help spur bank lending and combat slowing growth.

The People's Bank of China (PBOC) lowered the reserve requirement ratio (RRR) for all banks by 100 basis points to 18.5 percent, effective from April 20, the central bank said in a statement on its website www.pbc.gov.cn.

"Though the growth in the first quarter met the official target of around 7 percent for 2015, the slowdown in several areas, including industrial output and retail sales, has caused concern," said a report published by the official Xinhua news service covering the announcement.

The latest cut, the deepest single reduction since the depth of the global crisis in 2008, shows how the central bank is stepping up efforts to ward off a sharp slowdown in the economy.
http://www.reuters.com/article/2015/04/19/us-china-economy-rrr-idUSKBN0NA09X20150419

Alliance DBS considers re-rating Unisem

Semiconductor packaging and test service provider Unisem Bhd could be in for a re-rating in its valuation, according to Alliance DBS Research.

The research house said this was in view of the firm’s rising contribution from advanced packages and strong ties with RF customers.

Unisem’s key differentiation among other companies, it said, was its investment in advanced packaging technologies such as wafer-level chip-scale packaging (WLCSP).

With the rising number of customer using WLCP, Alliance DBS said this could help the group increase its market share.

Additionally, it said Unisem was also riding on the strong growth in RF customers, US-based Skyworks Solutions and Qorvo, which contribute close to 30% of its revenue.

“The company has a strong relationship with the companies, as evidenced by the numerous best supplier awards received.

“We think it is inevitable that Skyworks and Qorvo will increase their outsourcing activities to cope with the robust demand,” said Alliance DBS in its report yesterday.

It said this was reflected in the higher capital expenditure spending by Unisem to expand its wafer bumping and WLCSP capacity.

Alliance DBS raised Unisem’s financial year 2015 (FY15) to FY16 forecast earnings by 20 to 28%. “Our FY15 to FY16 forecast revenue growth assumption (in US$ terms) is now higher at 6 to 7% compared with 4% previously,” it said, adding that this was still below management’s 8% guidance for FY15 forecast.

Alliance DBS has a “buy” call on the stock and increased Unisem’s target price-to-book (P/B) to 1.7 times (from 1.5 times) with a higher target price of RM3.05 and 14% return on equity (ROE).

Unisem’s share price closed yesterday unchanged at RM2.44 with 10.9 million shares traded, giving it a market capitalisation of RM1.6bil.

http://www.thestar.com.my/Business/Business-News/2015/04/18/Alliance-DBS-considers-rerating-Unisem/?style=biz

Wall Street falls steeply with China, Greece fears paramount

The S&P 500 posted its biggest percentage loss since March 25 on Friday as investors shunned risk amid new trading regulations in China, renewed worries about Greece running out of money, and tepid U.S. corporate earnings.

Selling followed sharp overseas stocks declines and was broad, with all 10 major S&P 500 sectors losing ground.

Among the biggest drags, the S&P financials index was down 1.3 percent, with shares of Dow component American Express falling 4.4 percent to $77.32 after revenue missed analysts' estimates, partly due to the currency impact.

The Dow and S&P 500 both snapped two weeks of gains. For the week, the Dow was down 1.3 percent, the S&P 500 down 1 percent and the Nasdaq down 1.3 percent.

Both Honeywell International and General Electric blamed the strong dollar for lower revenue. Shares of Honeywell were down 2.1 percent at $101.70, while GE shares were down 0.1 percent at $27.25.

China's securities regulator warned investors to be cautious as Chinese shares hit seven-year highs. China allowed fund managers to lend stocks for short-selling and expanded the number of stocks investors can short.

China H-Share index futures fell 3.4 percent. Global equities lost ground as the weakness in China carried through to European and U.S. markets.

"We saw selling overseas, and that spilled over into the U.S. We've had a nice rally over the last few weeks to the upper half of the trading range, and it's moving back over," said Adam Sarhan, chief executive of Sarhan Capital in New York.

"It's still too early to tell what earnings are going to be for the quarter, but there haven't been that many upside surprises. And that's what we need to see."

The Dow Jones industrial average fell 279.47 points, or 1.54 percent, to 17,826.3, the S&P 500 lost 23.81 points, or 1.13 percent, to 2,081.18 and the Nasdaq Composite dropped 75.98 points, or 1.52 percent, to 4,931.81.

Market participants were also concerned Greece could leave the euro zone as it tries to reform its economy and deal with heavy debt. Greece dismissed reports it needed to tap remaining cash reserves to meet salary payments.

http://mobile.reuters.com/article/idUSKBN0N816320150418?irpc=932

tsy88, cimb very daring....revised tp twice recently......can't wait for the quarter result ;)

IFCA MSC rises 1.23% on firm outlook, target price upgrade

Shares of IFCA MSC Bhd ( Financial Dashboard) rose in early trade today on the back of positive outlook for the company and target price upgrade by CIMB Research.

At 9.20am, IFCA MSC was up two sen to RM1.64 with 533, 500 shares traded.

In a note April 16, CIMB Research said it recently took IFCA MSC’s management on a roadshow in Singapore and Hong Kong.

CIMB Research has maintained “Add” on IFCA MSC at RM1.63 with a higher target price of RM1.92 (from RM1.48).

The research house said it met 21 fund managers from 18 institutions.

CIMB Research said investor interest was strong for IFCA MSC and some were surprised that it was successful in China.

“Management spoke about its plans to launch service as a software (SaaS) in the domestic market in mid-2015.

“We raise our FY15-17 EPS forecasts by 5%-28% to reflect potential earnings from SaaS, which lifts our target price, still based on 21x 2016 P/E (in line with domestic peers).

“The stock remains an Add. Potential catalysts include higher-than-expected take-up rates for SaaS and its transfer to the Main Board in 2H15,” it said.
http://www.theedgemarkets.com/my/article/ifca-msc-rises-123-firm-outlook-target-price-upgrade

AllianceDBS Research 17/4/15

Technical Buy - Naim @ 2.90
TP 3.10 - 3.20
Cut-Loss - 2.81

Eco World's RM1bil 190ha mega deal, set to be big player in Penang

Eco World Development Group Bhd will ink a deal next week with the Penang Development Corp (PDC) to purchase 190.2ha in Batu Kawan and in the process become a major property developer in the state.

Sources said Eco World, which was the only bidder for the land, would pay about RM1bil or RM50 per sq ft for the 190.2ha.

The group will sign the sale and purchase agreement with PDC at a later date, but it is learnt that the award would be handed out next week in a ceremony to be attended by Eco World chairman Tan Sri Liew Kee Sin.

According to sources, Eco World is planning a major township development on the 190.2ha that is estimated to have a gross development value of RM10bil and is expected to last several years.

“Eco World is paying over RM50 per sq ft for the leasehold land that will have a development density of 60 units per acre. Eco World will use 60.7ha for the development of the golf course and the remainder for a mixed-development project comprising 60% residential and 40% commercial properties,” sources said.

Eco World will develop a waterfront city overlooking the island, a shopping mall, hotels and serviced condominiums for the site.
http://www.thestar.com.my/Business/Business-News/2015/04/16/Eco-Worlds-mega-deal/?style=biz

AllianceDBS Research 16/4/15

Technical Buy - SBC Corp @ 0.98
TP 1.07 - 1.12
Cut-Loss - 0.955

New substantial shareholder emerges in Khee San 
  
Confectionery manufacturer Khee San Bhd, whose share has rallied in recent days, saw the emergence of Lim Pei Tiam @ Liam Ahat Kiat as a substantial shareholder. 

A filing with Bursa Malaysia on Wednesday showed Lim had bought 4.55 million shares or 5.18% on Monday, April 13. 

Lim is an executive director of Komarkcorp Bhd which is involved in labelling solutions. 

The share price had surged from 48.4 sen on April 6 to 56 sen on April 13. 

London Biscuits is the single largest shareholder in Khee San with a 28.58% stake or 19.72 million shares.

London Biscuits’s core businesses are cakes confectionery, sweets and candies, wafers and assorted snack confectionery. 

http://www.thestar.com.my/Business/Business-News/2015/04/15/New-substantial-shareholder-emerges-in-Khee-San/?style=biz

Benalec gains 1.85% for progress in oil storage hub project

In a note to its client today, Am Research had maintained a “buy” recommendation on Benalec with an unchanged fair value of RM1.25 a share. This pegs the stock at a 45% discount to its sum-of-parts (SOP) value.

“We foresee this latest move as a measure of Benalec's commitment to develop its 3,485-acre Tg. Piai concession into a future oil storage hub via TPIPMIP.

“Apart from power, we expect the group to be in the midst of planning for other infrastructure requirements within the industrial park. This comes as the group had earlier submitted plans to raise RM200 million via convertible bonds,” the research firm said.

Am Research also expected initial works of between 100 acres to 200 acres at Tg. Piai to commence within the next few months.

“All in all, we believe the increased level of activities will improve the visibility of TPIPMIP when attracting major international oil storage players. However, as always, the real challenge will be finding trailblazing offtakers. Negotiations with 1MY Strategic Oil Terminal is expected to be concluded by June 11,” it added.
http://www.theedgemarkets.com/my/article/benalec-gains-185-progress-oil-storage-hub-project

hehe conie....there are many views both positive & negative on myeg. CIMB still promote as one of their top small-cap.

btw....I see great potential in ecowld-wa & I belief the share price will be able to double in less than 2 years.

Eco World jumps 3.41% after Kenanga IB starts coverage

Shares of Eco World Development Group Bhd ( Financial Dashboard) rose at mid-morning today after Kenanga IB Research initiated coverage on the stock at RM1.77 with an “Outperform” rating and target price of RM2.05.

At 9.45am. Eco World rose 3.41% or 6 sen to RM1.82 with 2.45 million shares done.

In a note today, the research house said its targ price only offered a 16% total return albeit applying a property RNAV discount of 35% (peer average: 50%).

It said the lower-than-sector average discount was for their:(i) solid management team who were pioneers in property development, (ii) huge appetite for landbanking which will provide

strong newsflow, (iii) ability to gain market share due to right product positioning as a township player and their experience with aggressive advertising and promotion.

Kenanga IB Research said resilience was seen in Eco World’s on-going projects as take-up rates for recent launches had been strong at 80%-100% versus industry average of 50%-60% within the first 3 months of launch.

“This will result in strong earnings growth of 420%-344% in FY15E-FY16E.

“Although normalisation of PERs may take up to FY17 as property contributions are still at an early stage while net gearing is expected to remain relatively high at 0.57x-0.65x over FY15-16E, we still like the stock as a longer-term value emerging stock given their aggressive growth path and the management team.

“Expect Eco World to be a ‘must-have’ stock as we will not be surprise if it becomes a market leader,” it said.
http://www.theedgemarkets.com/my/article/eco-world-jumps-341-after-kenanga-ib-starts-coverage

MYEG: Time to step aside

Sometimes we can bite off more than we can chew. That's the story of MYEG, a company that obtained a license to handle the renewal of working permits for foreign workers. The government has now agreed to the award of more license instead of giving MYEG the monopoly in this business.

Given the sharp rise in MYEG share price - from RM0.50 in May 2013 to about RM3.00 recently - this negative news can end its uptrend. I see the immediate support levels at RM2.40 or RM2.20. If these two support levels fail, then it could go down to RM1.55.
http://nexttrade.blogspot.com/

Bye-bye USA: Investors putting money elsewhere

2015 has seen the light start to dim on the U.S. bull market and shine more brightly in some unlikely corners of the world, like Russia, Israel and Japan. European stocks have staked their claim as new world leaders, and China and Japan equities have ripped higher as well.

Investors have taken notice in a big way, giving TINA some competition by spreading their money around the world.

Funds that focus on global equities have taken in $81.5 billion this year, a pace that, if continued, would break a record for four-month inflows in the category, according to data research firm TrimTabs. Thanks to a record $7.8 billion in European funds, March inflows are at $34.8 billion, also a single-month record, with April already showing a $14.8 billion inflow total. (The totals include mutual and exchange-traded products.)
http://www.cnbc.com/id/102585800

Retail sales rebound signals thaw in economic activity

(Reuters) - Retail sales rose in March for the first time since November as consumers stepped up purchases of automobiles and other goods, suggesting a sharp slowdown in economic growth in the first quarter was temporary.

The Commerce Department's fairly sturdy report on Tuesday together with other data showing that producer inflation crept up last month should keep the Federal Reserve on track to start raising interest rates later this year.

An unusually snowy winter undercut activity early in 2015. Labor disruptions at normally busy West Coast ports, a stronger dollar and softer global demand also have hurt growth.

"A rebound in retail sales in March provides evidence that the U.S. economy is pulling out of a soft patch seen at the start of the year. The improvement in retail sales ... adds to the likelihood of policymakers voting to hike rates this year," said Chris Williamson, chief economist at Markit in London.

Retail sales increased 0.9 percent in March, broadly in line with expectations. That was the largest gain since the same month last year and snapped three straight months of declines that had been blamed on harsh winter weather.
http://www.reuters.com/article/2015/04/14/us-usa-economy-idUSKBN0N51CQ20150414

Cahya Mata bags RM308m Sarawak museum, heritage trail job

Cahya Mata Sarawak Bhd (CMSB) ( Financial Dashboard) has bagged a RM308 million contract from the Sarawak state government to build a world class museum and a heritage trail in Kuching.

In a filing with Bursa Malaysia, CMSB (fundamental: 3; valuation: 1.1) said PPES Works (Sarawak) Sdn Bhd, a subsidiary of CMS Works Sdn Bhd which in turn is a wholly-owned subsidiary of CMSB, today signed a design and build and negotiated contract with the Sarawak government for the proposed Sarawak Museum Campus and Heritage Trail project.

Under the deal, CMSB will construct a museum and an adjoining annexe building with a combined total floor space of 30,000 cu m, as well as a heritage trail in central Kuching.

The overall duration of the contract is 60 months, with completion by the first quarter of 2020.

CMSB said the project will be taken in phases to ensure that sections of the museum will always stay open to visitors.

"The Sarawak government will fund the construction of the project. The funds will be released accordingly to work progress under the conventional building industry mode of payment," it added.

The contract is expected to contribute positively to the future earnings of CMSB Group for the financial years ending Dec 31, 2015 to 2020.

http://www.theedgemarkets.com/my/article/cahya-mata-bags-rm308m-sarawak-museum-heritage-trail-job

Stock To Watch - Tasco @ 3.78
TP 4.76 by RHB
Tasco - Promising Growth Outlook

Tasco is actively being invited to participate in more regi onal logistics contracts, which should propel its earnings growth further to an estimated 3-year CAGR of 17.4%. Maintain BUY with a higher TP of MYR4.76 (26% upside, 13x FY16F EPS), after raising FY15-17 earnings forecasts by 7-12%. We like Tasco for its improving ROEs of 11-13%, solid net cash position and strong earnings CAGR.

Full house. Tasco’s new Port of Tanjung Pelepas (PTP) 2-storey warehouse measuring 210,000 sqf commenced operations in late Jan2015, and we understand that utilisation space is currently full. We gather that demand at PTP is overwhelming, putting pressure on Tascoto seek more warehouse space by leasing from third parties in the interim.

Bidding for new jobs. Tasco has a client base of 80 companies which use its warehouses throughout Malaysia. Its managing director, Freddie Lim was quoted in The Edge Weekly that it is actively bidding for new jobs – receiving as many as 80-100 invitations for regional logistics contracts. The recent appointment of Tasco’s chairman and founder, Lee Check Poh as Yusen Logistics’ (Yusen) (9370 JP, NR) regional executive officer for South Asia and Oceania effective 1 Apr 2015 should propel Tasco to grow its customer base further, in our view.

Forecasts. We expect Tasco’s warehousing business to be the key topline driver, which should spur revenue contribution from its trucking division and contract logistics division. We expect these two divisions to grow by 12-20% in FY16-17, but we conservatively only expect theairfreight and sea freight divisions to grow by 2-3% over the next two years. In view of the favourable outlook for Tasco’s expansion plans, we raise our earnings projections for FY15/FY16/FY17 by 7%/12%/11% respectively.
http://klse.i3investor.com/blogs/rhb/74677.jsp

AllianceDBS Research 14/4/15

Technical Buy - KKB @ 1.55
TP 1.72 - 1.80
Cut-Loss - 1.49

Stocks With Momentum: Frontken @ 0.22

Frontken (Fundamental: 1.8/3, Valuation: 1.1/3) was the most actively traded stock last Friday with more than 177 million shares changing hands. It closed up 2.5 sen or 13.2% to 3-year high of 21.5 sen.

Frontken provides surface and mechanical engineering services to a wide range of heavy industries such as oil & gas, power generation and semiconductor.

For 2014, revenue saw a significant 62.6% increase to RM309.8 million. Domestic market accounted for about half of total revenue, with the balance coming from, mainly, Taiwan and Singapore.

Net profit surged to RM18.8 million, a reversal from net loss of RM2.3 million in 2013, due to stronger demand from the semiconductor industry and progressive income recognition from a hydrocarbon project in Tanjung Bin, Johor.

Frontken has a net cash position of RM28.8 million. The stock is trading at a trailing 12-month P/E of 10.6 times and 0.96 times book value of 24 sen.
http://www.theedgemarkets.com/my/article/stocks-momentum-frontken

Ewein eyes next Tanjong Pinang project

Ewein Bhd ( Financial Dashboard), which is developing its first property project valued at RM800 million at Bandar Tanjong Pinang, Penang in a joint venture (JV) with Consortium Zenith BUCG Sdn Bhd (CZBUCG), is looking to bag the next parcel of land the latter will be offering for development there.

It expects the next project to be up for grabs in the second half of this year.

“We are now working closely with CZBUCG to explore the potential [development] of the next parcel of land measuring 4.29 acres (1.73ha). It will also require the approval of the Penang Island City Council on the planning permission for the proposed development,” Ewein managing director Datuk Ewe Swee Kheng told The Edge Financial Daily in an interview last week.
http://www.theedgemarkets.com/my/article/ewein-eyes-next-tanjong-pinang-project

tj bro tj....your ruler very chun.....huat ah!!!

AllianceDBS Research 13/4/15

Technical Buy - Sealink @ 0.42
TP 0.46-0.50
Cut-Loss - 0.40

bro tj.......good........gu on rampage......borrow your ruler to check luxchem, sycal, frontkn, ireka, krono, sunzen & century.......eh sai bor? Huat ah!!!

Bursa To Track Higher Momentum On Improved Risk Appetite
By Zairina Zainudin

Shares on Bursa Malaysia are poised to trade higher next week, boosted by positive corporate sentiment and improvement in risk appetite.

Affin Hwang Investment Bank vice-president/head of retail research Datuk Dr Nazri Khan Adam Khan said the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) would remain buoyant amid a new round of recharged bullish momentum.

“FBM KLCI will maintain above the 1,830 point-level and support level of 1,800 points, before retesting the next resistance levels at 1,850 and 1,880 points,” he told Bernama.

On the external front, he said delay in the US Federal Reserve rate hike, European mega stimulus, easing tensions between Iran and Western powers, and no-loan-default of Greece would help fuel Bursa Malaysia upside next week.

For the week just ended, the local market started the week firmer, spurred by the likely delay in US’ interest rate hike, but the momentum pulled down by profit-taking activities that emerged on Wednesday.

On a Friday-to-Friday basis, the FBM KLCI gained 9.79 points to 1,844.31 from 1,834.52 last Friday. The FBM Emas Index surged 79.43 points to 12,662.46, FBMT100 Index advanced 69.66 points to 12,348.75, the FBM 70 increased 94.42 points to 13,579.17, but the FBM Ace dropped 107.74 points to 7,124.3. The Industrial Index improved 44.03 points to 3,401.12, the Finance Index eased 2.08 points to 16,325.86 and the Plantation Index trimmed 17.74 points to 7,794.55.

Weekly turnover decreased to 9.42 billion units worth RM9.26 billion from 10.94 billion units worth RM9.06 billion last week. Main market volume rose to 5.63 billion shares valued at RM8.45 billion from 4.89 billion shares valued at RM7.95 billion the previous week.
- Bernama

Bro hit, congrats to you too on frontkn. Suddenly so many new ids in frontkn thread & WW3 there !!!

Censof wins “Customs” accounting system contract

Censof Holdings Bhd has received orders worth RM2.31mil from Brilliance Information Sdn Bhd for a contract named “Financial Accounting System for the Royal Malaysian Customs Department.”

The financial management solutions firm told Bursa Malaysia on Friday that the contract given to its wholly-owned subsidiary, Century Software (M) Sdn Bhd, had a tenure of 33 months starting this month.

It includes nine months of implementation followed by two years of maintenance service. Thereafter, the maintenance service will be renewable on a yearly basis, but the time frame has yet to be determined.
http://www.thestar.com.my/Business/Business-News/2015/04/10/Censof-wins-Customs-accounting-system-contract/?style=biz

@OoiTeikBee....u are welcome & thank you for the analysis....hopefully everyone made money...:)

Posted by rikki > Mar 17, 2015 09:05 AM | Report Abuse X

Frontken Corp

FRONKEN Corp has recovered to within striking distance of the previous rally peak on bargain hunting interest. The trend ahead is pretty simple. A decisive breakthrough of the 20 sen hurdle would signal the resumption of an uptrend, en route to the 25 sen level, and probably the 30 sen mark later. Current support is pegged at the 15 sen line
http://www.thestar.com.my/Business/Business-News/2015/03/17/Support-Line/?style=biz

congrat everyone here for your patience & sincere sharing esp cpng & apini....cheers!!!

Semiconductor device market headed for sustained growth in 2015, says SEMI

The global semiconductor device market is headed for sustained growth this year, riding on the strong revenue growth last year, according to the US-based Semiconductor Equipment and Materials International (SEMI).

In a review of 2014 released in its Global Update on April 7, SEMI senior marker analysts Lara Chamness said 2014 was the second record breaking year in a row in terms of semiconductor device revenues.

She said the industry grew a robust 10% to total US$336 billion, citing the World Semiconductor Trade Statistics (WSTS).

Chamness said the strong momentum of the device market was enough to drive positive growth for both the equipment and materials markets.

“After two successive years of revenue decline, both the equipment and materials markets grew 18% and 3%, respectively last year.

“Even though the semiconductor materials market did not enjoy the same magnitude of recovery as the equipment market last year, the materials market has been larger than the equipment for the past seven years,” she said.
http://www.theedgemarkets.com/my/article/semiconductor-device-market-headed-sustained-growth-2015-says-semi

Stocks gain momentum, Europe at seven-year high

World stocks marched higher again on Thursday, drawing support from European auto sales and German trade data, while expectations that the first U.S. interest rate increase will come in the latter part of the year continue to grow.

Investors also breathed a sigh of relief as Greece confirmed it will pay a 450 million-euro loan tranche to the International Monetary Fund on Thursday, meeting a deadline and taking the immediate heat off the cash-strapped country.

http://mobile.reuters.com/article/idUSKBN0N001520150409?irpc=932

KNM bags contracts worth RM204m from Japan, Spanish groups

KNM Group Bhd ( Financial Dashboard) has secured three projects worth a combined US$56.67 million (RM204.01 million) from Japan's Toyo Group and Spanish-based Tecnidas Reunidas Group.

In a filing with Bursa Malaysia today, KNM (fundamental: 0.85; valuation: 1.8) said its wholly-owned subsidiaryKNM Process Systems Sdn Bhd was awarded a US$33.53 million contract by Toyo Group to supply columns, reactors, drums and tanks for the Pengerang Integrated Petroleum Complex Project in Johor.

The group also won a US$15.17 million contract from Tecnicas Reunidas Group to supply reactors, columns and pressure vessels for the same project.

Its third contract valued at US$7.97 million, involves supplying towers to Toyo Engineering Corp of Japan for the Turkmengas Petrochemical Complex project in Turkmenistan.

"The contract period for the three projects runs between 12 months and 18 months," said KNM.

The projects are expected to contribute positively to KNM Group's earnings for the financial years ending Dec 31, 2015, and 2016.

http://www.theedgemarkets.com/my/article/knm-bags-contracts-worth-rm204m-japan-spanish-groups

gogogo break the 0.20 resistance & the road is clear for you.