Posted by rikki > 2015-08-25 11:05 | Report Abuse

SKP Resources gets RM400m per year deal from Dyson

SKP Resources Bhd (Aug 24, RM1.33, Maintain buy with a higher target price (TP) of RM2.00)

We recently met up with the management of SKP Resources at their facilities in Senai, Johor. The meeting was centred on operational updates and future prospects, followed by a tour of their new three-storey facility. Below are the key takeaways:

i) Dyson Ltd is currently the group’s largest customer, contributing about 40% of total revenue. Excluding contribution from Tecnic Group Bhd ( Financial Dashboard)’s subsidiaries, the figure would be between 50% and 55%. Last year, the British technology company announced that it would invest £1.5 billion (RM9.93 billion) into the research and development of future products, which will include funding for a new campus at its headquarters in Malmesbury, United Kingdom. It plans to develop four new ranges of technology and launch 100 new products over the next four years;

ii) Among popular products currently produced by Dyson are its cordless vacuum cleaners. In the beginning of the year, it announced that it would invest S$100 million (RM300.41 million) in its motor plant in Tuas, Singapore — more than doubling its digital motor capacity to 11 million units from four million units.

The motors are said to power all of Dyson’s cordless vacuum cleaners, which are sold across more than 75 countries. We view the move as a positive indication of the future potential of the product;

iii) As per our earlier report in May, the company recently secured an additional contract valued at about RM400 million per year from Dyson. The contract is for the production of its popular cordless vacuum cleaners.

Manufacturing of the product will be conducted at its recently completed factory in Senai. It is currently undergoing testing stages, with commercial production expected to begin by end September — within previously stated timelines;

iv) From our previous meeting, management has also made efforts to rejig production lines in its new factory. The factory will house 20 assembly lines compared with three currently. Accounting for new products announced, only 25% of capacity for the new plant will be utilised. Coupled with Dyson’s aggressive expansion plans, we envision room for future growth; and

v) We revise our numbers to incorporate the rejig of lines and fulfilment of capacity over the next two years. We opine that the timeline is possible given reports of aggressive expansion plans by Dyson, potentially leading to future contract wins for the company.

We raise our financial year 2016 (FY16), FY17 and FY18 earnings by 1.2%, 30.1% and 49.2% to RM90.8 million, RM152.9 million and RM201.1 million. This translates into a three-year compounded annual growth rate of 68.2% year-on-year.

We increase our TP based on price-earnings ratio of 18 times and calendar year 2016 earnings per share of 11 sen.

For its upcoming results, we expect a marked improvement from the previous quarter, driven by the maiden consolidation of its result following the acquisition of Tecnic’s subsidiaries. This is then expected to be boosted by the production commencement of its cordless vacuum cleaners in end September. — TA Securities, Aug 24

http://www.theedgemarkets.com/my/article/skp-resources-gets-rm400m-year-deal-dyson

Posted by rikki > 2015-08-25 21:07 | Report Abuse

August 25, 2015 Commendable Quarter Results, both revenue & profit increased qoq & yoy :-  

1) Skpres @ RM1.32
QoQ Revenue increased by 25.0% from RM194.388m to RM243.062m  
QoQ Profit increased by 58.3% from RM11.309m to RM17.904m  

2) Karex @ RM3.22  
QoQ Revenue increased by 10.5% from RM71.395m to RM78.915m  
QoQ Profit increased by 14.2% from RM15.209m to RM17.362m

Posted by rikki > 2015-08-26 11:21 | Report Abuse

Stock With Momentum: Lii Hen

Lii Hen (Fundamental: 2.8/3, Valuation: 2.4/3) was first recommended by InsiderAsia on February 16 at RM3.53. The stock has since risen by a whopping 65.7% to close at RM 5.85 yesterday. By comparison, the FBM KLCI has fallen by 13.2% during the same period.

Notably, shares of furniture makers have fared very well, thanks to the weakening ringgit which favours exporters. About 77% of Lii Hen’s products are exported to America — its single largest market. Its second largest market is Asia, contributing about 13% of sales.

The company is backed by solid underlying fundamentals — it is sitting on net cash, pays consistent and fairly generous dividends and delivers double-digit return on equity. Net cash stood at RM55.9 million or 93 sen per share at end-June, up from RM10.2 million at end-2012.

On Monday, the company released a stellar set of 2Q2015 earnings results. Revenue surged 41.3% y-o-y to RM138.3 million while net profit increased an outsized 96.2% to RM12.7 million, due mainly to higher demand for its bedding products and foreign exchange gain of RM1.0 million.

Lii Hen also declared a second interim dividend of 7 sen per share for 2015, which will go “ex” on September 7. Dividends totaled 13 sen per share for 1H2015, up from 7.5 sen per share in 1H2014.

Last month, the company proposed a 1-for-2 bonus issue of up to 30 million new ordinary shares, and a 1-for-1 share split. The share split will be undertaken after the issuance of the bonus shares. Upon completion of both exercises, which is expected by 4Q2015, outstanding shares will increase to 180 million.

The company has consistently paid dividends, with payout ratio ranging from 30% to 50% of net profit. Dividends totaled 14.5 sen per share in 2014, yielding investors a net 2.48%

http://www.theedgemarkets.com/my/article/stock-momentum-lii-hen

Posted by rikki > 2015-08-26 21:59 | Report Abuse

August 26, 2015 Commendable Quarter Results, both revenue & profit increased QoQ & YoY :-   

1) Cihldg @ RM1.80
QoQ Revenue increased by 84.3% from RM71.021m to RM130.902m   
QoQ Profit increased by 208.4% from RM2.237m to RM6.898m   

2) Johotin @ RM1.28   
QoQ Revenue increased by 25.2% from RM90.778m to RM113.630m   
QoQ Profit increased by 67.9% from RM3.981m to RM6.683m

3) Ock @ RM0.71 
QoQ Revenue increased by 25.1% from RM56.162m to RM70.273m   
QoQ Profit increased by 67.6% from RM3.062m to RM5.133m   

4) Aji @ RM5.65   
QoQ Revenue increased by 17.8% from RM81.063m to RM95.518m   
QoQ Profit increased by 81.1% from RM5.686m to RM10.297m

Posted by rikki > 2015-08-27 11:43 | Report Abuse

Support Line: Heng Huat, IOI Properties, SAM

HENG Huat Resources retraced from an all-time peak of 53 sen on July 23 to a four-month low of 35.5 sen on July 18 owing to an apparent profit-taking activity before turning range-bound, undergoing consolidation. The trend ahead is pretty straightforward. A clear penetration of the upper 50-day simple moving average of 45 sen would lead to a re-test of the historical peak. On the opposite, a crack of the 35 sen floor will see prices retreating towards the 30 sen mark on extended correction process.

IOI Properties touched an all-time low of RM1.79 on July 8 before drifting sideways attempting to build a base for recovery. The immediate resistance is pegged at the 100-day simple moving average (SMA) of RM1.99, followed by the 200-day SMA of RM2.10, of which a successful breakout would see the fate of this counter changing for the better.


SAM Engineering pulled back from the recent high of RM5.82 on July 14, the best since June 2000 to a low of RM4.36 on August 12 before turning up again in the wake of renewed bargain hunting interest. Based on the daily chart, prices had penetrated the 50-day simple moving average of RM5.11 during intra-day session. Theoretically, the breakthrough would clear the way for a re-test of the recent peak of RM5.82 in the near-term. Important support is pegged at the recent lows of RM4.36.

Posted by rikki > 2015-08-27 20:33 | Report Abuse

August 27, 2015 Commendable Quarter Results, both revenue & profit increased QoQ & YoY :-    

1) Geshen @ RM0.815
QoQ Revenue increased by 104.3% from RM17.730m to RM36.226m    
QoQ Profit increased by 97.5% from RM1.167m to RM2.305m    

2) Chinwell @ RM1.39   
QoQ Revenue increased by 8.2% from RM119.635m to RM129.497m    
QoQ Profit increased by 14.1% from RM10.950m to RM12.496m

Posted by rikki > 2015-08-27 20:59 | Report Abuse

Stocks fly after Fed official cools Sept rate hike talk

LONDON/TOKYO (Aug 27): Stocks surged on Thursday, following the biggest gains on Wall Street in four years, after a U.S. Federal Reserve policymaker said the case for an interest rate increase next month "seems less compelling" than it was a few weeks ago.

Increased appetite for risk also lifted crude oil prices further from last week's lows. The price of government bonds and the Japanese yen fell.

At midday in Europe the FTSEuroFirst index of leading 300 European shares was up 3% at 1,420 points. Germany's DAX and France's CAC 40 were also up around 3%. Britain's FTSE 100 was up 2.4%.

"The bounce in Wall Street and stabilisation in Asia are causing the market to rally back," said Clairinvest fund manager Ion-Marc Valahu. "My short-term indicators are telling me that we hit a bottom in the market earlier this week."

New York Fed President William Dudley said on Wednesday that arguments for a September rate increase "seems less compelling" than they had only weeks ago, given the threat posed to the U.S. economy by recent market turmoil.

http://www.theedgemarkets.com/my/article/stocks-fly-after-fed-official-cools-sept-rate-hike-talk

Posted by rikki > 2015-08-28 10:11 | Report Abuse

Weaker ringgit a windfall for VS Industry

SENAI: For VS Industry Bhd, one of the top 50 electronics manufacturing service providers in the world, the weakening of the ringgit against the greenback is a windfall as it gains on export activities.

Managing director Datuk Gan Sem Yam said that 90% of the company products were exported to the United States, Australia, Japan and European countries with business transactions done in US dollars.

“Our economic fundamentals are strong and Malaysia is fully prepared, so are our local exporters,” Gan told reporters after the company’s EGM.

At the EGM, shareholders approved the one-to-five share split that will increase the number of shares from 229.86 million shares of RM1 each to 1,148.30 million shares of RM0.20 each.

Shareholders will hold five common shares for each existing share held.

He said the weakening ringgit since the last-quarter of 2014, had made the country’s manufacturing sector more competitive, especially for the export-oriented companies.

“Export-oriented manufacturers like us are allowed by Bank Negara to buy our raw materials in the US dollar and we source half of our raw materials from overseas with the rest from domestic suppliers,” said Gan.

Meanwhile, executive director Ng Yong Kang said although the weakening ringgit was a blessing for companies like VS Industry, the feel good factor would not last too long.

He said if ringgit took a long time to rebound against major currencies, it would send the wrong signal to foreign investors and fund managers that the country’s economy was in a bad shape.

Separately, Ng said the company was currently negotiating with three US-based multinationals (MNCs) to produce niche electrical products for export.

He said the company would focus on niche products in view of the competitive business environment.

“Our proven track record and good delivery system in undertaking jobs with existing local and foreign MNCs will help us to secure more new clients,” he said.

He pointed out that it had built a reputation with MNCs from Japan, Europe, the United Kingdom and the United States over the last four decades.

http://www.thestar.com.my/Business/Business-News/2015/08/28/Weaker-ringgit-a-windfall-for-VS-Industry/?style=biz

Posted by rikki > 2015-09-01 06:56 | Report Abuse

Oil jumps 8 percent, biggest three-day surge since 1990

Oil futures soared on Monday for a third consecutive day, rising more than 8 percent, as a downward revision of U.S. crude production data and OPEC's readiness to talk with other producers helped extend the biggest three-day price surge in 25 years.

U.S. crude oil prices have skyrocketed more than $10 a barrel in three days, erasing the month's declines as a series of relatively small-scale supply disruptions and output risks prompted bearish traders to take profits on short positions, which had been near a record a week ago.

On Monday, prices fell initially but reversed course mid-morning. The three-day gains were more than the 20 percent mark that often signals a bull market. Even so, few were prepared to call a definitive end to the slump.

"Sharp gains over the past three trading sessions were driven by a combination of short covering and chart-readers again looking to call a bottom falsely," Citi said in a report, saying that prices may yet test new lows before year's end.

http://www.reuters.com/article/2015/08/31/us-markets-oil-idUSKCN0R006K20150831

Posted by Icon8888 > 2015-09-01 06:59 | Report Abuse

Cantik

Posted by rikki > 2015-09-01 09:23 | Report Abuse

Mixed fortunes for packaging material ops

While exporters gain from stronger dollar, domestic suppliers face weaker demand

KULIM: Plastic packaging material manufacturers, especially those with a reach in export markets, are looking at a better performance this year due to the weakened plastic resin prices, new customers in the Asia-Pacific region and the weakened ringgit.

The main boost for producers comes from plunging polyethylene (PE) resin prices, which are down by about 25%, compared with about four months ago in April. This is in tandem with the falling crude oil prices.

PE resin is one of the main raw materials to produce plastic packaging materials and has helped reduce the production cost for the producers. Its drop in prices is more than the ringgit’s depreciation against the US dollar.

Apart from the lower raw material cost, there are now more Asia-Pacific customers from Japan, Australia and New Zealand, who prefer to source their flexible plastic packaging materials in South-East Asia and not from China, according to SLP Resources Bhd managing director Kelvin Khaw.

Khaw told StarBiz that the price of PE resin had declined to US$1,200 per tonne from US$1,500 per tonne in April 2015.

“Our ringgit has weakened by about 15% since April. Taking into consideration the 25% drop in resin prices and the 15% drop in the ringgit, we save about 10% in raw material costs, which would strengthen our bottomline this year.

“About 60% of the group’s earnings are in US dollars, which will also boost the group’s revenue and net profit,” he said.

SLP imports about 50% of PE resin from the Middle East and Singapore.

Khaw said there was also the trend of customers previously linked to China-based plastic packaging materials buying from South-East Asia. “Some of these customers have chosen to buy from Malaysian packaging material producers because of the consistent quality of their packaging products.

“For example, we are getting higher orders from Australia, New Zealand and Japan.

“Several years ago, China-made packaging products were priced at about 25% below our products.

“Now, the pricing for China-made packaging materials is almost on par with our pricing, as the production cost in China has risen,” he said.

Khaw said the group expected a record-breaking year for its net profit in 2015.

“For the first half of 2015, the group has already posted RM10.8mil in net profit, which is double the achievement of the same period in 2014, and very close to the RM12mil net profit achieved for the 2014 fiscal year.

SLP’s packaging products are priced around US$1,900 per tonne for its medium-range products, which is the same as the selling price of its competitors.

“Our recurring orders are reviewed and extended on a monthly basis, which takes into consideration the fluctuation of raw material prices,” he said.

However, not all plastic packaging material producers are seeing a boon from the drop in resin prices. Those supplying to the domestic market have been hit by the stronger dollar and weaker demand.

Cepco Trading Sdn Bhd, which supplies semi-finished extrusion plastic sheets for the semiconductor and food and beverage (F&B) industries, is an example.

Sales are down by about 20% so far due to the weaker demand from the semiconductor market.

“We expect the semiconductor segment to generate about 30% of our revenue for 2015, compared with 40% in 2014.

“The importation cost of engineering plastic resin and production cost have increased due to the weaker ringgit.

“It is also difficult to raise the selling price as the competition is tough, given that the demand from the semiconductor industry has softened,” Cepco director Jansen Lim said.

Lim said the company expected the packaging products from the F&B segment to perform better this year. “So far, orders from the F&B industry have increased over last year.”

Posted by Hitman > 2015-09-02 18:00 | Report Abuse

Posted by rikki > Sep 25, 2015 05:13 PM | Report Abuse

Bro rikki, how come you post at Sept 25???

Posted by Hitman > 2015-09-02 18:03 | Report Abuse

Eh magic!!..sudah hilang??

Posted by rikki > 2015-09-02 21:29 | Report Abuse

Ringgit down on Fitch downgrade warning

The ringgit fell as Kuala Lumpur stocks lost 0.8 percent, underperforming most Southeast Asian equities. 

Fitch said Malaysia's deteriorating currency position could force the rating agency to restore the negative outlook attached to the country's credit rating. 

Malaysia's July exports were expected to rise on a weaker ringgit, although moderating from an unexpected jump in the previous month due to plunging commodity prices, a Reuters poll showed. 

Oil prices slid, adding to concerns over exports. Malaysia is a major supplier of natural liquefied gas and palm oil. 

http://www.thestar.com.my/Business/Business-News/2015/09/02/Ringgit-down-on-Fitch-downgrade-warning/?style=biz

Posted by rikki > 2015-09-03 20:01 | Report Abuse

ECB leaves interest rates on hold, inflation in focus

The European Central Bank (ECB) left interest rates unchanged at record lows on Thursday, as expected, after a summer of volatility in financial markets, with the outlook for stubbornly low inflation now in focus.

http://www.cnbc.com/2015/09/03/ecb-leaves-interest-rates-unchanged-as-expected.html

Posted by rikki > 2015-09-03 20:07 | Report Abuse

Heveaboard to turn net cash by 2016

Particle board manufacturer, HeveaBoard Bhd, is on track to turn into net cash position by next year as its term loans have been mostly repaid and reduced to less than US$9mil (RM38mil).

Group managing director, Yoong Hau Chun, said on Thursday the company had been consistently paying RM26mil annually to service the principal of the loan. It also does not have plans to see any any major term loans.

"Once we have all the burdens off our shoulders, we can be a lot more bolder in our decisions and it will put put us in a strong position to increase dividend payout," he said on the business prospects.

Heveaboard would allocate RM15mil as capital expenditure for its upstream and downstream divisions to upgrade equipment and increase the quality of the products.

He said the company would rather focus on increasing the quality rather than the quantity given that its clients were mostly the higher-tier companies, especially its major export market, Japan, which contributed RM15mil in revenue monthly.

Yoong said HeveaBoard has all its cost denominated in ringgit while more than 90% of its revenue were US dollar-denominated, making the company a beneficiary of the currency volatility.

Executive director Liven Yoong, said the company, which was traditionally involved in the business-to-business market, would also venture into the business-to-consumer market by adding eco-friendly children furniture into its offerings.

She said for a start, the product would be marketed in the Malaysia by year-end and eventually exported regionally.

"What we are offering is a niche product as we emphasise on low formaldehyde emission furniture, which is not yet available in this market.

"Not many people are aware that formaldehyde is everywhere especially in furniture and children are the most vulnerable to its harmful effects," she said.

Among major toxic effects caused by acute formaldehyde exposure via inhalation are eye, nose, and throat irritation and effects on the nasal cavity while high levels of exposure could lead to coughing, wheezing, chest pains, and bronchitis. - Bernama

Posted by rikki > 2015-09-03 20:10 | Report Abuse

Banking sector to see subdued earnings growth

The banking sector in Malaysia will continue to face subdued earnings growth prospects amid slower lending, higher credit costs and ongoing net interest margin (NIM) compression.

These challenges give Maybank Investment Bank Research the conviction to maintain its “neutral” outlook on the country’s banking sector as a whole. 

The research house’s “buy” recommendations were only limited to three financial institutions, namely, BIMB Holdings Bhd, Hong Leong Bank Bhd and Hong Leong Financial Group Bhd.

“We have trimmed our aggregate loan growth forecast (including foreign loans) to 8.6% and 7.6% for 2015 and 2016 from 9.6% and 8.9%, respectively,” Maybank Research said on Thursday. 

“We estimate a 12-basis-point compression in average NIMs this year and five basis points in 2016,” it wrote, adding that credit costs were expected to normalise higher. 

Maybank Research noted that during the results season for the quarter ended June 2015, the banking sector presented a mixed bag of performances, with only Hong Leong Bank marginally beating expectations, while RHB Capital Bhd and Alliance Financial Group Bhd underperformed.

“Key trends included slower loan growth and ongoing NIM compression, but positively, non-interest income growth was decent, while expenses were under control,” the research house said. 

“Credit costs, however, doubled to negate the 6% year-on-year rise in operating profit. As a result, the core net profit of the industry for the second quarter rose just 1% on-year, while the cumulative six-month core net profit was flat on-year,” it added.

The subdued performance for the second quarter prompted Maybank Research to cut its earnings growth projection for the banking sector for 2015 and 2016. 

“We now project slower on-year operating profit growth of 5.7% for 2015 and 6.7% for 2016, versus 6.5% and 8.6% previously,” it said. 

“With higher credit cost assumptions, we expect 2015 net profit to expand by just 2.6% on-year versus 5.1% previously, but we do expect a pick-up in 2016 to 7.2% on-year, mainly on the back of a one percentage point cut in the corporate tax rate,” it explained. 

According to Maybank Research, the aggregate net profit growth for the banking industry was expected to be only 1.8% in 2015 and 4% in 2016. The estimation excluded CIMB Holdings Bhd, which was expected to register a strong 24% on-year in earnings rebound for 2016 from lower provisions. 

“Amid subdued earnings growth, we expect average the industry’s return on equity to moderate to 11.8% this year from 13.5% in 2014, and to 11.6% in 2016,” Maybank Research said.

Posted by rikki > 2015-09-04 09:50 | Report Abuse

Shrinking U.S. trade gap shows economy's underlying strength

The U.S. trade deficit fell in July to its lowest level in five months as exports rose broadly, signaling underlying strength in the economy amid concerns about a global growth slowdown.

While other data on Thursday showed an increase in the number of Americans filing new applications for unemployment benefits, the trend in jobless claims remained consistent with a strengthening labor market. Activity in the vast services sector also hovered at a 10-year high in August.

"There is little evidence that the abrupt deterioration in financial market conditions and the heightened concerns about the global economy have begun to affect the U.S. economy," said Ryan Sweet, a senior economist at Moody’s Analytics in West Chester, Pennsylvania.

The Commerce Department said the trade gap narrowed 7.4 percent to $41.9 billion, the smallest since February. When adjusted for inflation, the deficit fell to $56.2 billion from $59.0 billion in the prior month.

The smaller deficit implied a modest contribution to gross domestic product from trade early in the third quarter. Trade added 0.3 percentage point to the economy's 3.7 percent annualized growth rate in the second quarter.

Data ranging from consumer spending to employment and housing have suggested the economy retained much of its momentum from the second quarter and was on solid footing when global financial markets were rocked by turbulence triggered by worries over China's economy.

Stocks on Wall Street were trading higher after the data. Investor sentiment also was boosted after the European Central Bank indicated it could prolong its monetary stimulus program.

The dollar rose against a basket of currencies, while prices for longer-dated U.S. Treasuries fell.

http://www.reuters.com/article/2015/09/03/us-usa-economy-idUSKCN0R31BK20150903

Posted by rikki > 2015-09-04 09:56 | Report Abuse

IFCA MSC to buy business of Indonesian firm for RM32m

IFCA MSC Bhd is acquiring the business of PT IFCA Consulting Indonesia (PICI), including its trade receivables and all the rights under its existing contracts, for RM32 million.

In a filing with Bursa Malaysia, IFCA said it signed a business sale agreement with PICI today to undertake the proposed acquisition.

The two companies had entered into a heads of agreement on May 20, 2015 for the deal.

The business sale agreement stipulates that half of the purchase consideration will be fulfilled by the issuance of 16 million new IFCA shares of 10 sen each, at an issue price of RM1 per share.

The balance RM16 million will be satisfied with cash, of which RM4 million will be paid to PICI on the date of completion of the proposed acquisition and the balance RM12 million will be paid accordingly under the profit guarantee mechanism.

IFCA said it will funded the cash consideration via internal funds.

It added that the purchase consideration represents a price-to-earnings multiple of 8 times forward earnings based on the three years (ending Dec 31, 2016 to 2018) profit guarantee of RM4 million per year.

As this is a profit guarantee from PICI, in the event of a shortfall in net profit, IFCA is authorised to deduct the balance cash consideration to be paid to PICI.

On the rationale, IFCA explained that the proposed acquisition will accelerate its market penetration into Indonesia, which is in line with its regional expansion plans.

“The proposed acquisition may also potentially improve operating efficiency as the IFCA’s software solutions were previously offered in Indonesia via a Distributorship Agreement entered into between PICI and IFCA International Ltd, a wholly-owned subsidiary of IFCA,” it added.

The proposed acquisition is expected to be completed in the fourth quarter of this year.

IFCA’s (fundamental: 3; valuation: 1.5) share price closed 14 sen or 24.56% higher at 71 sen today, with 79.06 million shares changing hands. The counter was the second most actively traded stock across Bursa Malaysia, with a market capitalisation of RM396.86 million.

http://www.theedgemarkets.com/my/article/ifca-msc-buy-business-indonesian-firm-rm32m

Posted by rikki > 2015-09-04 13:54 | Report Abuse

Malaysia's July exports better than forecast

Malaysia saw exports in July increase 3.5% from a year earlier as demand for electrical and electronic goods surged, government data showed on Friday.

According to the median forecast from a Reuters poll, economists had forecast exports would rise 3.2% on the back of a weakening ringgit currency, although individual estimates varied.
Exports of manufactured products helped boost July's figure as demand for electronic integrated circuits grew, especially from China.

Despite a weaker ringgit, imports did much better than expected, rising 5.9% from last year due to increases in imports of electronic circuits, petroleum oils and medicament.

http://www.thestar.com.my/Business/Business-News/2015/09/04/Malaysia-July-exports-better-than-forecast/?style=biz

Posted by rikki > 2015-09-06 12:07 | Report Abuse

Reserves up after months of dips

The country’s international reserves rose RM1.3bil to RM357.7bil (US$94.7b) as at Aug 28 from two weeks ago, Bank Negara said.

This is the first rise after having dipped the last couple of months.

“The reserves position is sufficient to finance 7.4 months of retained imports and is one time the short-term external debt,” the central bank said. Reserves started to increase from the RM356.4bil (US$94.5b) level on Aug 14.

http://www.thestar.com.my/Business/Business-News/2015/09/05/Reserves-up-after-months-of-dips/?style=biz

Posted by Tessa Joseph > 2015-09-08 10:35 | Report Abuse

Good morning!

Hi rikki u so rajin :)

To all you can visit http://superawesomedeals.com.my/
I have updated most of the pages

another http://tessajoseph.blogspot.my/

Have a nice day!

Posted by Mark T Bird > 2015-09-08 12:28 | Report Abuse

Tessa, how are you doing?
One question, can you identify who visit your website?

Posted by Tessa Joseph > 2015-09-08 12:33 | Report Abuse

Fine, thanks! Yup, can! i3, chedet, google etc Why do you ask?

Posted by YS Babe > 2015-09-08 19:05 | Report Abuse

Hidup lagi hitMAN!!
hehehe

Posted by Tessa Joseph > 2015-09-09 09:42 | Report Abuse

Good morning YS! wah here aso ada red flag. What happened?

Posted by YS Babe > 2015-09-09 09:49 | Report Abuse

sa, yang merah side najib, yang kuning side mahathir
hehehehehehe

mana budak HIT, batang hidung pun tak nampak

Posted by Tessa Joseph > 2015-09-09 10:10 | Report Abuse

hahaha LOL

Posted by rikki > 2015-09-09 19:48 | Report Abuse

Market Outlook as at September 9, 2015

Our market is rebounding with increasing spread and volume. This means this rally is sustainable for possibly 1 or 2 weeks. Since it has managed to cross the psychological 1600 mark, this level will now serve as the support. The resistance ahead will be the 30-week EMA line at 1620; the recent high at 1660 and the neckline of the Head & Shoulder reversal pattern at 1680. For those who are nimble enough, the next few days may open up opportunity for moderate trading.

http://nexttrade.blogspot.my/

Posted by rikki > 2015-09-09 19:59 | Report Abuse

My new tax plan will push economic growth to 4%: Jeb Bush

On Wednesday, Republican presidential contender and former Florida Governor Jeb Bush will unveil the tax plan he would submit to Congress if elected president. He previewed the agenda in a Wall Street Journal op-ed on Tuesday, saying he would lower taxes, simplify the tax code, and eliminate "lobbyist-created" loopholes.

Bush is campaigning on the premise that, with the right policies, the United States economy can grow at a faster clip than the current average of 2 percent. He said a "complete overhaul" of the U.S. tax code is necessary to fuel that growth.

http://www.cnbc.com/2015/09/09/my-new-tax-plan-will-push-economic-growth-to-4-jeb-bush.html

Posted by rikki > 2015-09-09 20:02 | Report Abuse

Deripaska: Why I’m confident on China

Oleg Deripaska, the Russian tycoon who is president of aluminum giant Rusal, is confident that China should remain stable in the medium term, despite recent market turmoil.

"I wouldn't support this view that China will collapse tomorrow," Deripaska told CNBC at the World Economic Forum in Dalian, China.

"There is no foundation for that. Maybe you can see it better from New York or London but not from China soil for sure."

http://www.cnbc.com/2015/09/09/deripaska-why-im-confident-on-china.html

Posted by rikki > 2015-09-09 20:05 | Report Abuse

Europe stocks rally 2% on data, upbeat Asia

European equities traded sharply higher on Wednesday, boosted by positive German economic data and hopes of further stimulus measures in Asia that sent markets in the region higher.

The pan-European STOXX 600 was up around 2 percent.

London's FTSE 100 index was over 1.8 percent higher, the German DAXsaw a 2.3 percent pop while the French CAC surged over 1.8 percent.

European markets looked more positive following trade surplus data from the euro zone's largest economy, Germany, on Tuesday, which suggested strong demand for German goods. Both exports and imports in Germany hit a record high in July.

Investor sentiment has shifted, according to analysts, who say that the macroeconomic environment in Europe still remains positive.

"We have been investing in Europe all through the crisis and we've done really well. We have generated a lot of alpha relative to our peers," Ajoy Reddi, international equity analyst at Fred Alger Management, told CNBC in a TV interview.

"If I look today and I look at the macro conditions, I think the macro conditions are favorable, we know what Mario Draghi is doing. And I just see a lot of opportunity still in the European stock market."

http://www.cnbc.com/2015/09/09/europe-stocks-seen-higher-on-data-asia.html

Posted by rikki > 2015-09-10 20:32 | Report Abuse

Spotlight on SapuraKencana, Supermax after Brazil sovereign downgrade

SapuraKencana Petroleum Bhd ( Valuation: 1.80, Fundamental: 0.85) and glove manufacturer Supermax Corp Bhd ( Valuation: 0.80, Fundamental: 1.00) will be closely watched after Standard & Poor’s (S&P) downgraded Brazil’s credit rating to junk grade.

SapuraKencana offers support services to Brazil’s national oil company Petroleo Brasileiro SA (Petrobras) while Supermax operates in Brazil via Supermax Brasil Importadora S/A.

In Malaysia, SapuraKencana shares declined as much as six sen or 3% to RM1.76 before the stock pared losses at RM1.80 at 3.45pm. The stock saw some 6.5 million shares changed hands.

Supermax had earlier fallen as much as three sen or 1.4% to RM2.05. At 3.46pm, the stock traded unchanged at RM2.08 with 438,500 units traded.

S&P downgraded Brazil after the South American economy fell into recession. Reuters reported that S&P downgraded Brazil’s credit rating to junk grade on Wednesday, further hampering President Dilma Rousseff’s efforts to regain investors’ trust and pull Latin America’s largest economy out of recession.

S&P cut Brazil’s rating to BB-plus, the highest junk rating, from BBB-minus, based on the mounting political problems that have muddled economic policy.

http://www.theedgemarkets.com/my/article/spotlight-sapurakencana-supermax-after-brazil-sovereign-downgrade

Posted by rikki > 2015-09-11 08:56 | Report Abuse

Some countries facing possible rating cuts and 'junk' status

LONDON: Financial markets are betting that Russia, South Africa, Turkey and Colombia could all be next in line for "junk" debt status after Standard and Poor's stripped Brazil of its investment grade.
As well as those now teetering on the investment grade/junk cusp, China, Chile, Malaysia, South Africa, Mexico, Indonesia, Thailand, Israel, Saudi Arabia and much of the Middle East are also priced for rating cuts according to some data.

Brazil's downgrade had long been expected following recent scandals and its slump towards recession, but it has sharpened the focus on who could be next.

Slumping commodity prices and the prospect of rising global interest rates are adding to some liberal helpings of ugly national politics and laying bare a number of countries' failure to reform in the good times.

S&P's Capital IQ unit has what it calls Market Derived Signal (MDS) models that show credit default swap markets currently expecting a major wave of EM downgrades, a number of which would see the big names mentioned going into junk status.

Russia, which only Fitch of the three main agencies at BBB- still rates as investment grade (IG), is currently trading as if it were at least a three notches into junk.

Turkey, which both Moody's and Fitch currently have on the lowest investment grade rung, is trading as if were two steps into junk while for South Africa it is one.

Colombia, which is being hit hard by the fall in its main export oil and a rift with neighbour Venezuela, is also expected to slide back into junk according to the Market Derived Signal model.

The difference between investment grade and junk status can be huge for countries because many global investors tend to steer away from those with lower ratings.

The downgrades currently being seen are also reversing the roughly 200 upgrades emerging markets have earned since 2007, nearly half of them to the top "investment grade" category.

As well as those now teetering on the investment grade/junk cusp, China, Chile, Malaysia, South Africa, Mexico, Indonesia, Thailand, Israel, Saudi Arabia and much of the Middle East are also priced for rating cuts according to the data.

Historically, though, the gloomy view of markets does not always turn into reality.

The rating firms also point out that although there are a clutch of heavyweights on downgrade warnings, the picture in emerging markets for the moment at least is mostly of "stable" outlooks.

"The big markets that are most in focus are Turkey and Russia," Sarah Carlson, Senior Vice President at Moody's, told Reuters. "We don't have many countries in Latin America on a negative outlook. Most are on a stable outlook."

Ahead of its review of Turkey next week, Fitch senior director Paul Gamble said on Tuesday the country's fiscal position, which is a key metric for its rating, had not changed as a result of its recent political turmoil.- Reuters

Posted by yongyou > 2015-09-11 09:00 | Report Abuse

Good Morning rikki

Posted by YS Babe > 2015-09-11 16:00 | Report Abuse

rikki post jer, tak duduk sini hehehe
sini dah sunyi, tessa asyik dengan website dan blog
aku datang sini pun baca2 jer jarang nak cakap dengan orang, syukur market dah ok sikit

KUTPAI
aku Zzzzz

Posted by rikki > 2015-09-11 20:40 | Report Abuse

Goldman: This may push oil to $20

The risk that oil could fall as low as $20 a barrel is rising, with a persistent surplus requiring prices to remain lower for longer to rebalance the market, Goldman Sachs said, cutting its forecasts again.

"While we are increasingly convinced that the market needs to see lower oil prices for longer to achieve a production cut, the source of this production decline and its forcing mechanism is growing more uncertain, raising the possibility that we may ultimately clear at a sharply lower price with cash costs aro

http://www.cnbc.com/2015/09/11/goldman-this-may-push-oil-to-20.html

Posted by rikki > 2015-09-11 20:43 | Report Abuse

hi yongyou, tessa, ys, mark & hit.....have a wonderful weekend ;-)

Posted by rikki > 2015-09-14 06:57 | Report Abuse

Fed to hike? The problem is, it might not matter

The Federal Reservemay or may not elect to raise its target on the federal funds rate when it meets on Thursday. Yet either way, the much-anticipated decision is unlikely to have nearly as great an impact on the economy as it might have 30 years ago.

http://www.cnbc.com/2015/09/13/fed-to-hike-the-problem-is-it-might-not-matter.html

Posted by rikki > 2015-09-14 06:58 | Report Abuse

We think the market will slowly recover due to oversold in August

Posted in Uncategorized on 13/09/2015 by J&J 35

if there is no extra sudden event. Expected budget announcement in October to revise our reliance on high oil price and FED interest rate increase already losing its negative impact. Oversold stock will slowly recover by bargain hunters.

Posted by rikki > 2015-09-14 09:03 | Report Abuse

Factors that unsettle stocks in Bursa Malaysia

Last August 24, the FTSE-Bursa Malaysia KLCI closed at a 31/2-year low of 1504 points, down 18.5% from its high of 1845 points in 2014. This massive selling stunned the investing public.

Analysts have cited several reasons for this state of affairs, but most agree that the following are the most prominent:

1MDB: This is the mother of all crises facing Malaysians. “It shames us all,” says an economist. At the centre of the nationwide uproar are the unknown factors related to the company’s RM42 billion debt and the injection of RM2.6 billion into the personal accounts of the Prime Minister Najib Razak. New allegations appear almost every other day and that is worrying everyone.

Our PM seems to have staked everything to revive the domestic situation. He has, for instance, appointed a special committee to look into these issues. He has about six months to meet his deadline for clarifying everything. By that time, there’ll be just about 30 months before the 2018 general election. Will he be able to deliver?

China: We thought it would be Greece that would bring down the house. Instead China sneezed and it sent jitters throughout the world’s financial markets. It is tempting to assume the worst is behind us, but it isn’t.

The devaluation of the yuan, the first since 1994, and Beijing’s recent interest-rate cuts are a clear indication that there are other dynamics working. An analyst says the devaluation demonstrates China’s new resolve to move towards a market-determined currency. “This is not a currency war,” says another, “but an attempt that most nations would make to survive the after-effects of economic plans that have gone awry.”

There now appears signs of weakness on the Malaysian side even though it posted a 32.7% year-on-year jump in trade with China.

Currency woes: The ringgit is spiralling out of control. While this can be attributed to falling commodity prices and other factors, the business community most affected by this development point their fingers to the growing controversy surrounding 1MDB. Bank Negara’s efforts to stall the steep fall by way of selling US dollars and talking to currency traders have failed. This has only served to complicate the markets further.

Realising the central bank’s apparent weakness, traders and speculators have taken to massive selling of the ringgit. This has entrenched a school of thought that the ringgit could fall further.

Outflow of Foreign Institutional Investments: Malaysia is often an attractive destination for foreign direct investments. Due to its wide array of stocks from various sectors, there is also a strong net inflow of billions of dollars into stocks and bonds from foreign institutional investors (FII).

But these investors, rich in smart money but worried by the policy paralysis of the government, have felt compelled to quit the stock market and seek opportunities elsewhere. According to research by MIDF, more than RM16 billion in FII funds have been withdrawn, compared to RM6 billion in 2014.

US Fed rates: According to an economist, the United States is looking healthier now, but the tighter financial conditions due to a stronger dollar and weaker financials of US firms and the turbulence brought about by the Chinese will force the Federal Reserve to put off moves to raise rates until early next year. This should allow countries to find economic balance in growth amid global volatility.

Umno crisis: An analyst observes that Najib has shown no qualms about opening another chapter of chaos within his party by sacking his deputy, Muhyiddin Yassin. It was suspected that he also wanted to sack Muhyiddin as the party’s Number 2, but has apparently abandoned the idea following robust opposition to the move. This was an attempt to firmly entrench the position of Ahmad Zahid Hamidi in government and party. These political developments are not unprecedented, but the political repercussions normally come later.

These current woes are not confined to the corporate corridors or those involved in stocks. The common man is affected too. These factors are going to hit him where its hurts most: the pocket.

Nouriel Roubini, popularly known as Dr Doom, has advised investors to stay away from emerging markets. There could be more pain in Bursa trading before a recovery takes place.

V Bharathi is an FMT columnist.

http://www.freemalaysiatoday.com/category/opinion/2015/09/14/factors-that-unsettle-stocks-in-bursa-malaysia/

Posted by rikki > 2015-09-14 09:15 | Report Abuse

BP Plastics ups production with new plant

BP Plastics Holdings Bhd (BPP), one of the largest polyethylene film-makers in Asia, is ramping up production amid the ringgit turmoil and volatile climate.

The Johor-based company beefed up its plastic operations with a RM13.5mil investment in a new 3m cast stretch film machine from Austria, a move to increase production capacity and boost exports.

Group managing director Lim Chun Yow said that with the commissioning of the machine in June, it intended to lift export sales to 80% of total revenue for the financial year 2015, from last year’s 78%.

The bulk of BPP’s exports was denominated in US dollar, followed by Singapore dollar and euro. The domestic market contributed about 20% to BPP’s topline.

“The investment is part of the group’s strategy to increase production capacity and meet with the challenging demands from the export market.

“The new machine is now based at our plant in Batu Pahat,” Lim told StarBiz through email recently, adding that the investment would contribute positively to BPP’s future earnings.

The group has a second plant located within the vicinity as well. The combined building size for both plants were 294,670 sq ft.

Although Lim didn’t wish to divulge on the plants’ production capacity, it was reported that the combined annual capacity for stretch films and packaging bags was nearly 60,000 tonnes annually.

BPP specialises in stretch and shrink films, used to protect and enhance pallet stabilisation during warehousing and transportation of goods, apart from making PE packaging film and bags. It is one of the top three stretch film producers in the country and exports to 51 countries.

For the first half of 2015, net profit was up 22% to RM7.8mil against a revenue that fell 9.4% to RM134mil.

The group said the better earnings was boosted by lower resin costs, but the lower revenue was due to lower domestic market sales impacted by the goods and services tax (GST).

An interim dividend of 3 sen per share for 2015 and a special dividend of 2 sen per share was paid out in July.

Lim pointed out that the falling oil prices was an advantage to the company as it relied on raw materials like resin and various types of polyethylene materials to manufacture its products.

Nevertheless, Lim said supply and demand of polyethylene, seasonal demand for the packaging film in the northern parts of China and inconsistent plant shutdowns impacted the price movements of polyethylene.

Apart from GST, he said the weakening ringgit had somehow softened domestic demand for locally produced goods.

To add to that, the volatile landscape had brought about some changes in the global demand for BPP’s products, he pointed out.

“Demand from countries like Japan, South Korea and China has slowed down,” he said.

Aside from Japan, South Korea and China, BPP’s key export markets include Singapore, Australia, the Middle East and Europe.

It is on the lookout for new markets to expand to and would diversify, if the opportunity arises at the right time.

BPP dissolved Baoman Rubber Ltd in Cambodia last September as it aborted plans to venture into rubber cultivation.

For 2014, BPP saw a rather flattish net profit, mainly due to higher utility and labour costs, on the back of revenue that hiked 17.8% to RM284mil on higher demand in the export market.

Nonetheless, BPP has over the past 10 years consistently paid out dividends.

The company increased its dividend payout to 6 sen per share in 2014, from 4 sen per share in 2011. This gives a market yield of 5.22%.

BPP is debt-free and has cash and cash equivalents of RM58.5mil as at June 30, 2015.

The stock is trading at a historical price earnings of 18.4 times and 0.83 times book value. It closed two sen lower at RM1.10 on Friday.

Posted by rikki > 2015-09-14 15:31 | Report Abuse

SKP Resources bags manufacturing contract for Dyson vacuum cleaners

KUALA LUMPUR (Sept 14): Electronic and electrical equipment manufacturer SKP Resources Bhd ( Valuation: 1.10, Fundamental: 2.10) has secured a contract from Dyson Ltd, for the manufacturing of the latter's cordless vacuum cleaners.

In a filing with Bursa Malaysia today, SKP said it expects the new contract to contribute “significantly” to its revenue for five years starting 2016, following the commencement of the contract in January 2016.

“The contract is expected to contribute positively to the group's revenue and earnings for the financial years ending March 31, 2016 and 2017,” said the company.

However, SKP did not disclose exactly how much the contract is worth.

SKP is currently one of Dyson’s contract manufacturers in Malaysia, assembling a range of Dyson products including upright vacuum cleaners, hand dryers and bladeless fans.

For the first financial quarter ended June 30, 2015 (1QFY16), the company reported a net profit of RM17.9 million, soaring 85% from RM9.6 million in the previous year’s corresponding quarter.

SKP shares gained 1 sen or 0.74% to RM1.36 at the midday break today, giving it a market capitalisation of RM1.46 billion.

Posted by rikki > 2015-09-15 10:26 | Report Abuse

SKP Resources - Another Contract Secured

Author: PublicInvest | Publish date: Tue, 15 Sep 2015, 09:11 AM

The Group announced the securing of another 5-year contract from its key client Dyson Ltd, this time round also for the manufacture of cordless vacuum cleaners though presumably of a different variant. This comes in addition to the RM400m 5-year contract which it secured back in May from the same customer for the similar product. While no quantum was revealed, this current announcement, is in line with our expectations of the Group securing more works from Dyson and benefitting from its expected growth over the coming few years. Our Outperform call is reinforced, with an unchanged target price of RM1.71 based on a 15x multiple to FY17 EPS of 11.4sen. We could be in for upside earnings surprises should the contract value be larger-than-expected. Though the share price has performed admirably year-to-date and even since our coverage initiation, with respective gains of 109.4% and 51.4%, we see current price values not fully reflective of its robust growth prospects over the coming 2-3 financial years.

•Poised to grow with Dyson…. Longer term, Dyson’s plans to spend an estimated RM8.5bn on developing 4 new ranges of technology which will launch 100 new products all over the world over the next 4 years are eye-catching. Of immediate excitement however are its plans to increase the production of motors to 11m units by this year-end from 4m last year, suggesting an immense uplift in the production of various other products in both its manufacturing facilities in Singapore and Malaysia, which we are already starting to see as reflected in this two recent (May and current) announcements. SKP’s growing standing with Dyson in being a key manufacturing partner coupled with increased capacity arising from the newly-acquired subsidiaries as well as from its own expansion leads us to see the company poised to generate earnings CAGR growth of at least 50% over the next 3 years

• ... but not all about Dyson either. While seemingly intertwined in its fortunes, the Group does have about 30% of its output catered to non-Dyson production, amongst which are reputable household names worldwide. The Group is also seeing increasing demand for valued-added services such as assemblies of plastic products for the electrical and electronics industry helping augment growth, anticipated to be in the range of 8%-10%.

Source: PublicInvest Research - 15 Sep 2015

New contract award from Dyson. SKP Resources (SKP) announced yesterday that it has secured a new contract from its main customer, Dyson Ltd, for the manufacture of Dyson cordless vacuum cleaners. According to management, the 5-year contract is worth about MYR3bn(or MYR600m annually), with production slated to commence in Jan 2016. Note that this vacuum cleaner model is different than the modelpreviously awarded to the company back in May. Management has guided for a PAT margin of ~7% for this contract, which is in line with most of its other productions.

Source : RHB Research - 15 Sep 2015

Posted by rikki > 2015-09-20 08:54 | Report Abuse

Good times ahead for SKP

Bright days are ahead for SKP Resources Bhd, as the company is set to see an earnings expansion with RM5bil worth of contracts being clinched from Dyson Ltd to produce its popular cordless vacuum cleaner.

Amid the challenging climate, SKP grabbed the first RM2bil contract in May, valued at RM400mil annually and subsequently secured another RM3bil job valued at RM600mil per annum. The tenure for both contracts are five years.

“This is a feather in our cap, as we are seen as Dyson’s core strategic partner in producing the cordless vacuum cleaner.

“And the latest contract marks another milestone for SKP and is expected to contribute significantly to the company’s annual revenue for five years, beginning 2016,” executive director Ivan Gan (pic) told StarBizWeek in an interview recently.

SKP has been working with Dyson for the past 13 years, of which the first six years it was involved in complete assembly works for the British-based company’s upright vacuum cleaners, hand dryers and bladeless fans.

Ivan says with the job wins, SKP’s revenue is expected to grow from RM600mil now to about RM1.3bil for financial year 2016 (FY16), with net margins of about 7% to 7.5%.

It grew 50% in FY15 from RM400mil to RM600mil.

The 40-year-old Gan attributes the contract wins to Dyson’s expansion plan in increasing its digital motors. The digital motors are one of the many components in the cordless vacuum cleaners.

“We have started production for the first job this month, while the second job is expected to begin in January 2016,” says Gan.

In March, Dyson was reported to have pumped in US$100mil into its West Park plant in Tuas, to increase the plant size to 143,000 sq ft and increase its yearly motor production to 11 million units by year-end from the four million units annually.

These advanced, compact digital motors power all of Dyson’s cordless vacuum cleaners, which are sold in more than 75 countries.

In 2014, Dyson’s patented cordless vacuum technology sales grew by 68% globally.

Dyson is indeed on a growth mode as it announced a four-year investment drive of £1.5bil that includes funding for research and development on design innovations at a new campus in Dyson’s UK headquarters, according to Bloomberg.

“Dyson’s expansion bodes well for SKP, as production is ramped up to meet the global demand for cordless vacuum cleaners,” says Gan.

He points out that even with the latest job, the group’s RM40mil plant in Senai, Johor is only running at a 35% utilisation rate.

The plant has a built-up area of about 400,000 sq ft and is expected to be fully operational by 2017.

Although Gan didn’t wish to divulge on the production capacity for the new product range, he says the group has set aside about RM20mil in capital expenditure for new machinery annually.

Aside from Dyson, SKP’s customers include Sony and Hewlett Packard, among others.

“With new manufacturing techniques and solutions, we are now able to house more production lines in our facilities to meet the demands of our customers,” says Gan.

SKP’s first 10 year-old plant is located adjacent to its second plant and running at full capacity.

Gan says contract wins will inevitably open doors to other new jobs, but for now SKP is content with working with Dyson.

On plans to diversify, Gan says the group made strategic acquisitions in Plastictecnic (M) Sdn Bhd, Bangi Plastics Sdn Bhd and Sun Tong Seng Mould Tech Sdn Bhd that are primarily involved in the automative, oil and gas, food and beverage as well as consumer product industries.

“These subsidiaries are into commercial lubricant packaging and tool fabrication, and deal with customers like Axon Mobile, Shell, Petronas, UniLever, Nestle, Tupperware, Santori Group of Japan, among others,” Gan says, adding that their contribution to the group’s revenue is about 25% to 30% and is seeing steady growth of about 8% to 12% annually.

On whether the slowdown in China had any impact on Dyson or SKP, Gan says Dyson’s major markets are Japan, Australia and Singapore, among others, while China is not its main market.

http://www.thestar.com.my/Business/Business-News/2015/09/19/Good-times-ahead-for-SKP/?style=biz

Posted by rikki > 2015-09-20 09:05 | Report Abuse

Ringgit to continue upward momentum next week

KUALA LUMPUR: The ringgit is likely to continue its upward momentum next week despite the US Federal Reserve's (Fed) decision to maintain its interest rates.

Affin Hwang Investment Bank Vice-President/Head of Retail Research, Datuk Dr Nazri Khan Adam Khan said that as the Fed maintained the status quo in the interest rates, it would give less pressure to Bank Negara Malaysia as well as the local currency.

Speaking to Bernama today, he said the ringgit's current level and uncertainty in the US economy would encourage more foreign investors to come to invest in Malaysia, besides boosting the export industry.

Meanwhile, MIDF Research Head Zulkifli Hamzah said the Fed's decision to maintain the interest rate received mixed reactions from the market.

"The ringgit has been a beneficiary based on the appreciation today (Friday), as the delay accords a breathing space for the currency to consolidate. Indeed, sentiment towards the ringgit appears to be turning for the better.

"In the offshore market, the speculative element is receding," he said.

However, he said the movement of the local currency moving forward depended on the direction of oil prices and the local situation.

"It is a combination of events...which are within and beyond our control," he added. For the week just-ended, the ringgit strengthened against the US dollar to 4.2030/2110 from 4.3150/3200 last Friday.

The local unit appreciated against the Singapore dollar to 3.0211/0273 from 3.0510/0569 last Friday and rose against the yen to 3.5242/5315 from 3.5812/5868 last week.

It strengthened against the pound sterling to 6.5697/5831 from 6.6576/6679 last week and went up against the euro to 4.8112/8208 from 4.8716/8781 last Friday. – Bernama

- See more at: http://m.thesundaily.my/news/1557602#sthash.xpqUftN0.dpuf

Posted by rikki > 2015-09-22 21:22 | Report Abuse

Bank Negara’s international reserves up 0.63% to US$95.3b

KUALA LUMPUR (Sept 22): The international reserves of Bank Negara Malaysia have increased by 0.63% to US$95.3 billion (RM360.1 billion), as at Sept 15, from US$94.7 billion (RM357.7 billion) on Aug 28, 2015.

In a statement today, Bank Negara said the reserves’ position as at Sept 15 is sufficient to finance 7.3 months of retained imports and is 1.1 times the short-term external debt.

Short-term external debt refers to short-term offshore borrowing, non-resident holdings of short-term ringgit debt securities, non-resident deposits with the banking system, and other short-term debt, according to the statement.

This is the second consecutive increase in international reserves recorded by the central bank since June 30 this year.

The first increase was to US$94.7 billion (RM357.7 billion) as at Aug 28 from US$94.5 billion (RM356.4 billion) at Aug 14.

Analysts have previously raised concerns over Bank Negara’s international reserves, which had declined below US$100 billion on July 31, to stymie the further decline of the ringgit.

The ringgit retreated 0.75% to 4.3042 against the US dollar. Compared to the Singapore dollar, the ringgit weakened 0.2% to 3.0400.

The FBM KLCI also veered into negative territory today, closing 4.1 points or 0.3% at 1,635.37 points due to selling pressure on banking and plantation stocks such as Public Bank Bhd ( Valuation: 1.80, Fundamental: 2.80) and Kuala Lumpur Kepong Bhd ( Valuation: 0.50, Fundamental: 1.00).

http://www.theedgemarkets.com/my/article/bank-negara%E2%80%99s-international-reserves-063-us953b

Posted by rikki > 2015-09-22 21:34 | Report Abuse

Eco World buys 2,198 acres of land for RM1.1bil

KUALA LUMPUR: Eco World Development Group Bhd has proposed to buy 2,198.4 acres of land in Kuala Selangor for RM1.181bil mixed eco township with a gross development value (GDV) of about RM15bil.

The group said on Tuesday its unit Paragon Pinnacle Sdn Bhd (PPSB) had signed  five sales and purchase agreements (SPA) with Mujur Zaman Sdn Bhd, Ringgit Exotika Sdn Bhd, Liputan Canggih Sdn Bhd, and LBCN Development Sdn Bhd, to buy the land in Kuala Selangor.

Eco World said the acquisitions will provide it with sizeable tracts of lands in the North-Western growth corridor of the Klang Valley.

“This will enable Eco World to establish a dominant presence in this area with access to a new market catchment to complement its strong township positioning in the South-Western and South-Eastern corridors,” it said. 

It has so far identified three projects to develop including a 1,400 acres mixed eco township development to be known as “Eco Gardens” consisting mainly landed and high rise residential homes, among others. 

Also, it intends to build a 518 acres integrated gated industrial hub to be known as “Eco Business Park V”, and about 280 acres of affordable homes to be known as “Laman Indah”. 

The estimated gross development value to be generated is approximately RM15bil over a 15-year development period based on preliminary management estimates. 

The purchase consideration represents a discount of approximately 0.70% to the market value of the lands.

The lands are located at the North West of Klang Valley and are approximately 45km from Kuala Lumpur city centre, 40km from Petaling Jaya city centre and 18km from Sungai Buloh town centre. 

http://www.thestar.com.my/Business/Business-News/2015/09/22/Eco-World-buys-land-for-RM1bil/?style=biz

Posted by rikki > 2015-09-23 21:06 | Report Abuse

ManagePay to diversify into cybersecurity business

KUALA LUMPUR (Sept 23): ManagePay Systems Bhd ( Valuation: 0.00, Fundamental: 1.30) is acquiring a 29.5% stake in a cybersecurity firm Trustgate Bhd for RM1.8 million cash, to tap into the online security business.

In a filing with Bursa Malaysia today, the electronic payment specialist said it has entered into a conditional share purchase agreement with Trustgate chief executive officer Lo Nyan Tjing to acquire 8.84 million shares (29.5%) in Trustgate.

Lo holds a 33.33% stake in Trustgate, according to the filing. The remaining 66.67% is held by Sigmaview Diversified Sdn Bhd.

Based on the audited consolidated financial statements of Trustgate for the financial year ended Dec 31, 2014, Trustgate registered a loss of RM612,756 while its net assets then was RM5.49 million.

More importantly, Trustgate owns 94.43% of MSC Trustgate, one of only three licensed Certificate Authorities approved by the Malaysian Communications and Multimedia Commission.

MSC Trustgate, said ManagePay, has been in the business of providing cybersecurity products and services for over 10 years in Malaysia and has established strong clientele which includes major financial institutions in Malaysia.

ManagePay said the acquisition "will enable the group [to] leapfrog into the cybersecurity business supplying [such service] to financial institutions and payee organisations".

Aside from providing the group with additional revenue source, ManagePay said the deal will enable it to tap into a trusted and proven platform for securing internet of things (IoT) devices and infrastructure in Malaysia for the near future.

"The acquisition will enable us to derive business synergies through the cross selling and bundling of product offerings. The acquisition will enable ManagePay to offer its existing customers a proven security product solution to preserve the integrity of the clients' data and infrastructure," it said.

The purchase consideration will be satisfied in cash and funded through internally generated funds, it added.

"Barring any unforeseen circumstances, the acquisition is expected to be completed in the fourth quarter of 2015," it said.

The group expects the deal to contribute positively to its earnings in the ensuing financial years.

Shares in ManagePay surged six sen or 30% higher to close at its one-month high of 26 sen today, after some 11.85 million shares changed hands.

The current price gives it a market capitalisation of RM177.62 million.

Posted by rikki > 2015-09-23 21:13 | Report Abuse

BornOil Q2 turnover surges

LABUAN: Borneo Oil Bhd (BornOil) put on another strong showing, posting a higher turnover of RM51.18 million for the second quarter compared with RM19.32 million a year earlier, thanks to better contribution from the group's oil, gas, mining and related activities, as well as its fast food division.

For the first half year, revenue soared to RM65.81 million from RM27.39 million while net profit climbed to RM3.41 million from RM845,000 a year before.

BornOil executive director Raymond Teo said progress has been encouraging and that production sharing agreements secured are the start of bigger things to come.

"We are fast reinventing our company as a proxy for the Malaysian gold mining industry," said Teo.

From an operations perspective, he said the timing of the company's entry into gold mining couldn't be more ideal.

He said the weakening ringgit has worked in BornOil's favour as the direct cost of production has gone down (since production cost is incurred in ringgit).

To-date, BornOil has signed exclusive production sharing agreements to carry out mining works at five sites on 1,500ha in Pahang. The mining arrangements do not carry any acquisition cost as infrastructure and development facilities were already in place at the two sites.

As a result, BornOil saved a great deal on capital expenditure in terms of infrastructure and pre-mining preparations, said Teo.

Gold prices recently ran up to a six-week high as investors globally sought the commodity as a safe haven amid the backdrop of currency uncertainties and falling stock markets.

Last month, HSBC in a report predicted that the price of gold will rise by some 10% by the year-end to US$1,225 an ounce. Gold closed at US$1,135 an ounce 

Teo also estimates that there are low hanging fruits in the form of available alluvial ores of about 300,000 tonnes at Merapoh and 500,000 tonnes at Bukit Ibam, together with a combined tailing inventories of 1.7 million tonnes at Merapoh and 1.6 million tonnes at Bukit Ibam.

These available ores/tailings will keep BornOil busy for the next three years, while the quest for hard rock lode gold will continue through an exploration programme on both the areas, he elaborated.

Preliminary assessments have been conducted on the volume and grades of gold on both the alluvial and tailings and, once confirmed independently by a third party geologist, an announcement will be made by the company.

Meanwhile, BornOil shareholders have approved the company's renounceable six-for-one rights issue together with free detachable Warrants on the basis of one warrant for every two rights shares subscribed to.

BornOil's substantial shareholders Victoria Ltd and Hap Seng Insurance Services Sdn Bhd have subscribed in full for their respective entitlements. - Bernama