Thursday, May 30, 2013


Its earnings growth for the next five years from 2013 to be driven by its operations in Singapore, Malaysia and Turkey.

Its first phase of Mount Elizabeth Novena hospital had commenced operations in July 2012.

In Malaysia the company was currently (May 2013) undertaking expansion projects in four hospitals Gleneagles Medical centre Penang, Pantai Hospital KL, Klang and Gleneagles KL – and greenfield projects in KK, Manjung and Medini.

The three greenfield projects will add an estimated 500 beds to its network by 2014.

Meanwhile in Turkey, the company through its subsidiary, Acibadem, is currently (May 2013) undertaking expansion projects in two hospitals.

The group’s growth frontier would be HK, making its foray via winning a site for a greenfield project in HK, which is scheduled for commencement in financial year 2016. This acts as a platform to penetrate deeper into the large and underserved market in HK.

IHH was expected to continue its efforts to intensify revenue and exposure in its three key markets, Malaysia, Singapore and Turkey, to propel growth further underpinned by strong franchise value.

Wednesday, May 29, 2013


It is dismissing speculation that major shareholder as well as group MD The is taking the company private.

Teh has been steadily increasing her stake in the company and now holds a direct 18.31% stake compared to 15.75% in January 2012. Including her indirect holdings held mostly under The Wan Sang & Sons Sdn Bhd and The Kien Toh Sdn Bhd, she now (May 2013) holds close to 60% of the company. She has been acquiring shares via both off-market deals and acquisitions via the open market.

Her buying pattern raises questions on whether a privatisation bid is on the cards for the company which has niche lifestyle projects ranging from high rise and low rise service apartments, and is also in the hotel business with its five-star Hotel Maya in Jalan Ampang.

The company develops mostly niche lifestyle projects and owns the Hotel Maya, a five-star property located along Jalan Ampang.

Selangor Dredging has unbilled sales of about RM862mil as at end-December 2012 and have been among the few local developers who have made inroads into Singapore where the property prices have been rising.

The company have plans to expand its footprint in the island with the latest residential project being nine five-storey blocks comprising 148 apartments located in Singapore Village At Pasir Panjang with a gross development value (GDV) of RM640.05mil on a 0.99 ha site.

Besides this, ongoing projects include the Gilstead Two condominium project located along Gilstead Road consisting of 110 units with a GDV of S$200mil and the Okio Residences project launched in the second quarter of 2011, a mixed freehold residential and commercial project on a 0.2ha site at Balestier Road in district 12.

Other projects in Singapore include the 22 units of low-rise condominiums called Jia at Wilkie Road with a GDV of S$55mil completed in Dec 2010.

For the third quarter ended Dec 31, the niche property developer recorded a lower net profit of RM9.28mil compared with RM10.02mil achieved in the previous corresponding quarter.

Tuesday, May 28, 2013


Petronas would have to wait 12 more months from April 2013 before it could launch any new takeover bid for MISC.

Since the onset of the global financial crisis in 2009 and the resulting downturn of the economy had been a challenging but exciting period for the company. However there is some light at the end of the tunnel as the company had managed to remain profitable since the middle of last year after two consecutive quarters of losses.

Its offshore business is still holding steady and liquefied natural gas shipping is stable. It had have also managed to reduce losses in the chemical tanker business through various cost-cutting measures.

Bunker constitutes 27% of our operating cost.

Its chemical shipping and petroleum tanker business were still in the red albeit slowly improving.

There might be cause for some excitement as come December 2013, the commissioned Gumusut-Kakap semi-submersible floating production system (FPS), the region's first deepwater semi FPS with 1,200 m water depth, should be up and running. MISC and Petronas Carigali jointly own the system via a special vehicle, GKL Ltd

Once it is commissioned, it will be a new income for MISC via GKL.

The Gumusut-Kakap field is Malaysia's second deepwater development after Kikeh and is expected to produce about 150,000 barrels of oil per day. It is operated by Sabah Shell Petroleum Co, partnering with Murphy Sabah Oil Co, Conoco Philips Sabah and Petonras Carigali Sdm Bhd.

The worst fiscal period for MISC is over as its first quarter results are promising and meets expectations.

MISC’s management cited possibility of paying dividend for 2013 on expectations of am improving outlook.

The worst is over for MISC from May 2013 …

Sunday, May 26, 2013

Scomi Group

In Feb 2013 it was reported that it is tipped to win a rm2.3 billion contract for the provision of drilling fluids. It is believed that Petronas has picked Scomi over a few intl names to get the lion’s share of the five year drilling fluid contracts available under the Pan Malaysia mega cluster.

Meanwhile Comic is also believed to have been successful in its bid for a job offered by independent oil producer Dragon Oil in Turkmenistan worth US$40 million is also for the provision of drilling fluids.

IJM Corp is now the second largest shareholder in Scomi after Kaspadu Sdn Bhd, a private entity owned by Shah Hakim and two other parties this is firmly in control of the company.

Meanwhile Scomi Group received full support to dispose its subsidiary, Scomi Oilfield Ltd to Scomi Marine Bhd.

Scomi Group has proposed to dispose its entire interest of 76.08% stake in SOL to SMB for a total consideration of rm766 million. It will be satisfied by 1.22 billion new ordinary shares of 45 sen each in SMB totaling to rm575.26 million. The remainder consist of SOL’s receivables to be assumed by SMB.

This reorganization exercise will put the company in a better position to raise funds when necessary.

Post reorganization, the group’s gearing will decrease to 1.21 times as compared to 2.09 times as at Dec 31 2011.

The group is constantly looking out for new investment opportunities and will take a closer look at them after the reorganization is completed.

Its current (May 2013) order book has surpassed RM5 billion with the latest contract worth RM98.5 million in Turkmenistan.

Scomi Group - which underwent a restructuring that saw the disposal of its stakes in Scomi Oilfields Ltd, Scomi Sosma Sdn Bhd and Scomi KMC to its 65.65 per cent owned listed arm, Scomi Marine Bhd - has been actively bidding for new jobs worth over US$1 billion (RM3 billion) in Malaysia and internationally.

Shareholders Tussle …

Its CEO and key shareholder Shah Hakim purchased 1.42 million shares on the open market at 42 sen per share during 20 – 21 May 2013. He currently (May 2013) holds a 12.17% stake in the company after actively purchasing Scomi shares in the past months prior to May 2013. Earlier in 2013, his shareholding stood at 11.49%.

The net asset value per share of the oil and gas player stood at 32 sen as at end Dec 2012.

Meanwhile Tan Sri Abu Sahid Mohamed said in May 2013 he could increase his stake in Scomi Group Bhd as he believes that the company is undervalued.

Abu Sahid, who owns 6.8 per cent stake in Scomi, however, looks to be staying for the long run. The tycoon last bought Scomi shares on March 19 2013 when he acquired some 1.19 million shares.

Shah Hakim is also a key shareholder of Scomi Group.

To recap, Abu Sahid had disputed IJM Corp Bhd's emergence as a shareholder in Scomi, citing that it will dilute the stake of current shareholders.

IJM's entry into Scomi is said to have the backing of Shah Hakim. Under the deal, Scomi would issue RM110 million worth of convertible debt to IJM, which, upon conversion, would see the construction company owning 24.3 per cent of Scomi.

The convertible debt proposal went ahead after gaining shareholders' approval.

He is quitting as Avalon Minerals Ltd chairman. Abu Sahid had bought into Avalon, a company listed on the Australian Stock Exchange, in 2008 and controls about 11 per cent of its shares. However, he has no plans to hive off his stake in the Australian company as he is betting that the mineral exploration company will deliver in the long run.

Saturday, May 25, 2013


KNM’s prospects hinge on the Peterborough project as well as Borsig. Only after the group has got the project started off the ground and successfullylisted Borsig will investors regain confidence in its stock.

Winding Up Petition On KNM’s unit …

In April 2013, Australia-listed Mission New Eenrgy Ltd's subsidiary has served a winding-up petition on KNM Group Bhd’s unit, claiming the latter failed to pay A$3.80mil (RM12.2mil).

Its Renewable Energy Plant Project …

It continued to face a delay in securing a financial close for its rm2.3 billion renewable energy plant project in Peterborough, the UK.

The delay and a deviation in the group’s earnings – its audited results for the year ended Dec 31 2012 showed profit standing 37% below what was released in its unaudited results in Feb 2013 0 have sparked investor concerns.

A source says Exim Bank of Malaysia which is the lead arranger for a syndicated loan to fund 80% of the Peterborough project, is still looking for another partner bank to provide KNM with the funding requirement. It is learnt that KNM’s management had hoped to secure the financial close by end of 2012.

Initially, Deutsche Bank Bhd was supposed to be the partner bank but it is no longer in the picture. Exim Bank is now (May 2013) trying to rope in another bank to provide the syndicated loans.

The Peterborough plant is touted as an anchor project for KNM as it represents 47% of the group’s outstanding order book of rm4.9 billion. However it was reported in Feb 2013 that the Peterborough project has been delayed.

Excluding the UK project, KNM’s order book stands at rm2.1 billion including the rm308 million TAIK-NK sulphur recovery unit project in Russia.

Listing Of Its German Subsidiary Borsig GmbH On The SGX …

In early May 2013 KNM Group CEO said it is also finalizing the listing of its German subsidiary Borsig GmbH on the SGX. It aims to complete the listing by the third quarter 2013. However doubts about the deadline as there has been little news on the progress of the exercise … High valuations and unacceptable accounting practices are the main issues.

As at Dec 31 2012, its total loans and borrowings stood at rm937 million. Its cash and cash equivalent have came down to rm189 million which could be due for repayment.

However later reported it has not submitted any proposal to list Borsig GmbH on the Singapore Stock Exchange. This may dampen investor appetite for KNM shares, which were boosted by reports that the company would be listing its German unit in Singapore.

But KNM’s investor relations officier Stanley Khoo said KNM’s plans to list its German based subsidiary Borsig GmbH on the SGX is still intact. This is despite news report that KNM MD Lee as saying that the company has yet to submit any proposal to do so. Stanley Khoo said the company has plans to get Borsig listed in SGX by end 2013.

According to news report, UOB Bank Ltd has valued Borsig at between rm1.8 billion after taking into account the rm500 million loan repayment made to date (May 2013) to Maybank.

KNM could also raise up to rm475 million by taking Borsig public, assuming it divests 25% in the company.

Such a listing may potentially lower KNM’s current (May 2013) debt levels of about RM1 billion and trigger a re-rating on the stock.

KNM, which is involved in the oil and gas fabrication business, bought Borsig in 2008 for RM1.67 billion. Borsig is a market leader in the fields of waste heat recovery systems, quenched coolers and membrane technology.

KNM’s Borsig plan was to unlock its value. UOB Bank Ltd currently (May 2013) values Borsig at between RM1.8 billion and RM1.9 billion after taking into account the RM500 million loan repayment made to date to Malayan Banking Bhd (Maybank).

The listing of Borsig could raise up to RM475 million for KNM, assuming it divests a 25 per cent stake in the Berlin-based process equipment maker. The proceeds from the listing would help KNM to partly fund its renewable energy venture in Peterborough , United Kingdom. The RM2.1 billion build-own-operate project is expected to start in 2013 with KNM spearheading the job with an 80 per cent stake.

The KNM management is waiting for the outcome from the auditor in Singapore to revert on the German-based accounting policies so that it can proceed with the listing plan.

The listing will create a RM2 billion company, a slight premium to KNM's purchase price of RM1.67 billion.

Borsig is a cash cow for KNM, where it has contributed estimated net profits of RM112 million to RM141 million per year over three years.

On Borsig's order backlog of RM843 million as at December 2012, the group is planning to speed up work.

Thursday, May 23, 2013

About Airasia X

It is banking on retail participation to boost the take up of its impending IPO, will not have cornerstone investors.

Bankers familiar with the listing said this will be one of the few large offerings without cornerstone investors.

Besides offering what is to be the largest retail proposal allowed by the SC to date (May 2013), Airasia X is set to create another milestone in the history of Malaysia’s IPO as it does away with conventional cornerstone investors.

In the last few years, major IPOs in Malaysia have normally had a set of cornerstone investors – normally subject to a lock up period of six months. This is to ensure that there is some stability in the share prices in large offerings.

However Airasia X will have several anchor investors keen on taking up a long term position in the airline. It will keep it to about six or seven anchor investors and they will not subject to a lock up period.

The airline is offering 790 million shares and can raise up to rm1.15 billion assuming the shares are taken up at a higher end of the indicative range. It is offering 252 million shares or 10.6% of its enlarged share capital to retail investors.

A carrot for retail investors would be if they hold on to the shares for more than a year, they will receive sweeteners such as free flight tickets.

Sources say Airasia Bhd will holds a 18.3% stake in the company pre IPO, is also looking to pare down its stake to 15%.

Airasia X’s three largest shareholders are looking to reduce their interest are Aero Ventures Sdn Bhd is looking to trim down its stake to 34.4% from 52.2%, Orix Airline Holdings Ltd and Manara Malaysia I Ltd are seeking to reduce its stake in 6.4% each.

Upon the IPO, the three shareholders will hold on aggregate of 1.1 billion shares, which represent 47.2% stake of the company’s enlarged issued and paid up capital compared to a larger stake of 74% before the IPO.

On gross proceeds raised from the listing, the company plans to use 21.5% for capex, 43.8% for the repayment of bank borrowings, 31.5% for general working capital and the remaining 3.2% for listing expenses.

It has been categorized as syariah compliant. This will not only give the airline further mileage, but will lock in bumiputera investors in its soon to be traded shares.

Sunday, May 19, 2013

The well Connected Business Personalities

UMNO-Connected Business Personalities

Other-Well Connected Business Personalities

The Politcal Link Stocks

2013 Cabinet Minister

UMNO-Connected Business Personalities

Tan Sri Tan Kay Hock (GKetn/Johan)

He is chairman of GKent and also controls Johan. Reportedly the golfing buddy of the PM, he wants the thrust in the limelight when GKent was awarded the Ampang Line LRT extension project extension project reported to be worth some rm1 billion.

Tan Sri Lim Kang Hoo (Tebrau/IWH/Ekovest)

His main vehicle Ekovest Bhd where he is executive chairman. He is in the midst of listing IWH Bhd for close to rm1.3 billion. Ekovest has secured jobs worth more than rm100 million in Iskandar Waterfront’s Danga Bay in Johor and has also tendered for other reclamation and construction jobs said to be worth more than rm1 billion. He is said to be close to the DPM Tan Sri Muhyddin Yassin and Defence Minister Datuk Seri Hishammuddin Hussein, both from Johor. Lim was also in the news when was reported to be eyeing a stake in KFC Holdings Bhd.

Datuk Amar Abdul Hamed Sepawi (TA Ann Group/Naim Holdings)

He controls Sarawak based TA Ann Group where he is also executive chairman and NAIM Holdings Bhd and is linked to Sarawak Energy Bhd. A cousin of Sarawak Chief Minister Tan Sri Taib Mahmud, he is involved in plantations, energy and construction.

Datuk Mahmud Abu Bekir Taib (CMSB)

He is the son of Sarawak Chief Minister Tan Sri Taib Mahmud and group deputy chairman of CMSB, widely seen to be Taib’s family company. The company is reported to have benefited heavily from projects undertaken under the SCORE.

Datuk Mohamed Al Amin Abdul Majid (Ancom/Nylex/SME Corp)

Mohamed Amin, a non-executive director of Ancom Bhd is said to be close to the PM. He is also chairman of SME Corp Malaysia, Nylex and MCIS Zurich Insurance Bhd.

Datuk Mokhazani Mahathir and Datuk Shahril Shamsuddin (SKPEtro/Opcom)

Mokhazani is the second son of former PM Tun Dr Mahathir while Shahril’s father is Sapura Group founder, Tan Sri Samsuddin Kadir.

Datuk Fateh Iskandar Mohamed Mansor (Glomac/Axis REIT/NST)

The group MD and CEO of Glomac Bhd is also a director of AXIS REIT Managers and NST. He is an ex-treasurer of UMNO Selangor.

Datuk Sri Mohd Effendi Norwawi (Encorp)

The executive chairman of Encorp and former treasurer of PBB is said to be close to Sarawak chief minister Tan Sri Taib Mahmud. The successful property developer was chairman of the Sarawak Economic Development Corp for 18 years and Agriculture Minister from 1999-2004 and Minister’s Department, a post he gave up in 2008.

Datuk Norraesah Mohamad (MYEG)

She is reported to be a Wanita UMNO supreme council member and is executive chairman of MYEG. She is also chairman of Penang Bridge Sdn Bhd and Utusan Melayu Malaysia Bhd and served as chairman of Bank Rakyat from 2000 to 2003.

Tan Sri Tee Hock Seng (Bina Puri)

The group MD and ex-MCA treasurer general, sits on the board of trustees of the Perdana Leadership Foundation and is also a director of Bina Puri Holdings Bhd and KL-Kuala Selangor Expressway Bhd.

Datuk Rozabil Abdul Rahman (Destini)

The group MD of Destini is UMNO Youth treasurer and is reported to be close to its movement’s chief Khairy Jamaluddin. There was also talk that he is a nephew of former Defence Minister and newly appointed Home Minister Datuk Seri Zahid Hamidi but he has denied this.

Alongside Rozali on the board of Destini is UMNO supreme council member Datuk Abdul Aziz who wrested the Bandar Kulim parliamentary seat from Pakatan Rakyat in the GE13.

Tan Sri Rozali Ismail (Puncak Niaga)

He is the executive chairman of Puncak Niaga Holdings Bhd and former Selangor UMNO treasurer.

Datuk Idris Buang (HSL)

The chairman of HSL and director of Sarawak Energy Bhd is said to be close to Sarawak Chief Minister Tan Sri Taib Mahmud.

Datuk Jaffar Indot (Prestariang/Sycal/Melewar Ind)

Prestariang is largely led by a bumiputera management team. Its chairman Datuk Rami Abbas, was formerly CEO of Celcom Bhd. Ramli is known to have strong government links. Other than Ramli, another director Datuk Jaffar also has strong management credentials. He sits on the board of two listed companies, Sycal Ventures Bhd and Melewar Industries Group Bhd.

Datuk Wira Syed Ali Abbas Alhabshee (Redtone/TGOFFs/Bright Pack/Amedia)

Datuk Syed Syed Ali is the head of the Cheras Umno division. He is chairman of Redtone, a major shareholder in Bright Packaging, an independent non-executive chairman of TGOFFs and AMedia

Other-Well Connected Business Personalities

Tiger: Datuk Seri Mohd Nadzmi Mohd Salleh and Datuk Seri Abdul Azim Zabidi. Mohd Nadzmi, the former chairman of Proton Holdings Bhd, Abdul Azim is the former Bank Simpanan Nasional Bhd chairman.

Patimas: Datuk Seri Azim Zabidi is the former Bank Simpanan Nasional Bhd chairman.

Nicorp/Harvest/AGlobal/Mtronic: Raymond Chan

Alam Maritim: Co-founder Azmi Ahmad is MD and CEO. Azmi, a former Air Force senior officer was also previously a corporate banking manager at Bank Bumiputera Malaysia Bhd before leaving in 1994.

KUB: Umno-linked Gaya Edisi Sdn Bhd

Zeland/AZRB: UMNO-Linked

KYM: Datuk K.Y. Lim. Lim held key positions in Technology Resources Bhd (Celcom (M) Bhd), Naluri Bhd and Malaysia Airlines.

Perwaja/Kinsteel: Dr M

Permaju: Unknown

GOcean: Unknown

BornOil: Unknown

Lower Liners/Speculative: Wijaya, BHIC, OPCom, Tiger, IRCB, KYM, Patimas, Nicorp, Harvest, Permaju, Silver Bird, GOcean, KNM, GKent, Johan, KUB, Perak Corp/Integrax/MajuPerak/Gunung, DBhd, EPMB, Perwaja/Kinsteel, Amedia, Bright, Tebrau, Zeland, Time, Permaju, Censof, KHSB, Glomac, SILK Holdings, Muhibbah, AZRB, JAKS, Protasco, Zeland, Destini, Sycal

The Political Link Stocks

Banking & Finance: CIMB, BIMB/Takaful, MBSB

Hospitality: Faber, IHH, TMC Life, KPJ

Utilities: Tenaga, Puncak Niaga/KPS/JAKS/KHSB, Cypark,

Property Developer: Tebrau, Equine, E&O, UEM Land, MRCB, KLCCP

Plantation: FGV/MSM, TH Plantation, RSawit

Industrial: Destini

Airline: Airasia, MAS

O&G: Alam Maritim, Dayang/Petra Energy, THHeavy, SKPetro, Perdana Pet, Scomi Group, Handal, PetDag, PetGas, PetChem

Logistics: MISC, Armada, MMHE

Conglomerate: DRBHicom, MMC Corp, YTL Corp

Service: POS, Brahims, MAHB, Astro, MYEG, Prestariang, Censof, Paramount

Gaming: Genting Bhd, Genting Mal, BJtoto, MPHB

Construction: IJM Corp, Gamuda, Muhibbah, Mudajaya, Ekovest, Benalec, WCT

Telcos: Telekom, DIGI, Axiata, Time Eng/TimeCom, Redtone, Maxis

Sarawak/Sabah-based: NAIM/HSL/KBB Eng/SCB (SCORE), HSL, CMSB

2013 Cabinet Minister

Prime Minister: Datuk Seri Najib Tun Razak
Deputy Prime Minister: Tan Sri Muhyiddin Yassin
1. Prime Minister's Department:
Datuk Seri Jamil Khir Baharom
Datuk Seri Abdul Wahid Omar (to be appointed senator)
Datuk Seri Idris Jala (to be appointed senator)
Tan Sri Joseph Kurup
Datuk Seri Shahidan Kassim
Nancy Shukri
Datuk Joseph Entulu Belaun
Datuk Paul Low Seng Kuan (to be appointed senator)
Deputy Ministers:
Datuk Razali Ibrahim
P. Waythamoorthy (to be appointed senator)
2. Finance Ministry:
Minister I: Datuk Seri Najib Tun Razak
Minister II: Datuk Seri Ahmad Husni Hanadzlah
Deputy Minister: Datuk Ahmad Maslan
3. Education Ministry:
Minister I: Tan Sri Muhyiddin Yassin
Minister II Datuk Seri Idris Jusoh
Deputy Minister I: Datuk Mary Yap
Deputy Minister II: P. Kamalanathan
4. Home Affairs Ministry:
Minister: Datuk Seri Ahmad Zahid Hamidi
Deputy Minister: Datuk Wan Junaidi Tuanku Jaafar
5. Communication and Multimedia Ministry:
Minister: Datuk Seri Ahmad Shabery Cheek
Deputy Minister: Datuk Jailani Johari
6. International Trade and Industry Ministry:
Minister: Datuk Seri Mustapa Mohamed
Deputy Minister: Hamim Samuri
7. Natural Resources and Environment Ministry:
Minister: Datuk Seri G. Palanivel
Deputy Minister: Datuk James Dawos Mamit
8. Transport Ministry:
Minister: Datuk Seri Hishammuddin Tun Hussein (acting)
Deputy Minister: Datuk Aziz Kaprawi
9. Tourism and Culture Ministry:
Minister: Datuk Seri Mohamed Nazri Abdul Aziz
Deputy Minister: Datuk Joseph Salang
10. Agriculture and Agro-based Industry Ministry:
Minister: Datuk Seri Ismail Sabri Yaakob
Deputy Minister: Datuk Tajuddin Abdul Rahman
11. Defence Ministry:
Minister: Datuk Seri Hishammuddin Tun Hussein
Deputy Minister: Datuk Abdul Rahim Bakri
12. Works Ministry:
Minister: Datuk Fadillah Yusof
Deputy Minister: Datuk Rosnah Abdul Rashid Shirlin
13. Health Ministry:
Minister: Datuk Seri Dr S. Subramaniam
Deputy Minister: Datuk Seri Dr Hilmi Yahaya
14. Youth and Sports Ministry:
Minister: Khairy Jamaluddin Abu Bakar
Deputy Minister: Datuk M. Saravanan
15. Human Resources Ministry:
Minister: Datuk Richard Riot
Deputy Minister: Datuk Ismail Abdul Muttalib
16. Domestic Trade, Cooperatives and Consumerism Ministry:
Minister: Datuk Hasan Malek
Deputy Minister: Datuk Ahmad Bashah Md Hanipah (to be appointed senator)
17. Women, Family and Community Development Ministry:
Minister: Datuk Rohani Abdul Karim
Deputy Minister: Datuk Azizah Mohd Dun
18. Foreign Affairs Ministry:
Minister: Datuk Seri Anifah Aman
Deputy Minister: Datuk Hamzah Zainuddin
19. Urban Well-being, Housing and Local Government Ministry:
Minister: Datuk Abdul Rahman Dahalan
Deputy Minister: Datuk Halimah Sadique
20. Plantation Industries and Commodities Ministry:
Minister: Datuk Seri Douglas Uggah Embas
Deputy Minister: Datuk Noriah Kasnon
21. Rural and Regional Development Ministry:
Minister: Datuk Seri Mohd Shafie Apdal
Deputy Minister: Datuk Alexander Nanta Linggi
22. Federal Territories Ministry:
Minister: Datuk Seri Tengku Adnan Tengku Mansor
Deputy Minister: Datuk Dr J. Loga Bala Mohan
23. Energy, Green Technology and Water Ministry:
Minister: Datuk Seri Maximus Ongkili
Deputy Minister: Datuk Seri Mahdzir Khalid
24. Science, Technology and Innovation Ministry:
Minister: Datuk Dr Ewon Ebin
Deputy Minister: Datuk Dr Abu Bakar Mohamad Diah

UMNO-Linked Penny Stocks ....

OPCom: Datuk Mhkhriz Mahathir

Tiger: Datuk Seri Mohd Nadzmi Mohd Salleh and Datuk Seri Abdul Azim Zabidi. Mohd Nadzmi, the former chairman of Proton Holdings Bhd, Abdul Azim is the former Bank Simpanan Nasional Bhd chairman.

Patimas: Datuk Seri Azim Zabidi is the former Bank Simpanan Nasional Bhd chairman.

Nicorp/Harvest/AGlobal/Mtronic: Raymond Chan

Alam Maritim: Co-founder Azmi Ahmad is MD and CEO. Azmi, a former Air Force senior officer was also previously a corporate banking manager at Bank Bumiputera Malaysia Bhd before leaving in 1994.

GKent/Johan: Tan Sri Tan Kay Hock is among the people said to be close to Najib. They have known each other for a long time and are also golfing buddies.

KUB: UMNO-Linked

Destini: UMNO supreme council member Datuk Abdul Aziz Sheikh and Rozabil, an UMNO Youth treasurer, came on board as non executive directors

TGOFFs: Datuk Wira Syed Ali Abbas Cheras UMNO division chief

Redtone: Datuk Wira Syed Ali Abbas

Amedia: Datuk Wira Syed Ali Abbas

Bright: Datuk Wira Syed Ali

Zeland/AZRB: UMNO-Linked

KYM: Datuk K.Y. Lim. Lim held key positions in Technology Resources Bhd (Celcom (M) Bhd), Naluri Bhd and Malaysia Airlines.

Perwaja/Kinsteel: Dr M

Permaju: Unknown

GOcean: Unknown

BornOil: Unknown

Thursday, May 16, 2013

Gas Malaysia & PetGas

GAS Malaysia/PetGas: It is on track to higher profitability, after having been affected by increased gains tariffs since June 2011.

Gas Malaysia’s 10 year gas supply agreements with Petronas Bhd will be a major catalyst for the profit growth. It is fully contracted with Petronas to receive 40 million mmscfd in 2013. Another 30 mmscfd and 40 mmscfd will be provided in 2014 and 2015 respectively.

Its bottom line was significantly affected by a rm3 upward revision in gas tariffs, lifting its buying price for natural gas from rm11.05 to rm14.05 per million Mmbtu. Consequently its selling price rose from rm15 to rm16.07 per MMBtu.

The tariff revision was made in accordance with the government’s plan to reduce gas subsidies over the long term.

Gas Malaysia expects to receive additional gas supply from the Melaka Regasification Terminal (RGT), which had delayed the start of operations due to technical issues.

Petronas Gas Bhd, which owns a 14.8% stake in Gas Malaysia, is the operator of the LNG processing facility in Melaka.

Tuesday, May 14, 2013

To Subscribe Or Not To Subscribe For MAS Rights Shares !!!


While expectations are that some local institutions would follow Khazanah’s lead in subscribing for the rights, it is worth nothing that there is a risk of more MAS shares being sold in the market post the rights issue should there be any shortfall in the free float.

Khazanah’s holdings in MAS will rise from 69.73% to 91.89% if it is the only party that subscribes for the rights issue.

While MAS has said it will attempt to rectify any short fall in the free float after the exercise to stay listed, the company says the actual course of action will depend on the prevailing market conditions at the relevant time.

The rights shares are not underwritten and based on what has been announced so far (10 May 2013), Khazanah did not promise to take up more than its own entitlement to the rights ... probably rightly so in terms of capital outlay.

It would cost Khazanah as much as rm942 million more if it were to promise to buy all the rights shares not take by other MAS shareholders – this amount would be enough to pay every minority MAS shareholder 92 sen per share to buy them out if none of them subscribes for the MAS rights and only the minimum number of rights shares is issued.

The 92 sen per share is the same amount each MAS shareholder will have to fork out to subscribe for all four of the rights shares they were entitled for every MAS shares held before the ex rights date.

MAS’ share capital will balloon from 3.34 billion shares to between 12.62 billion and 16.71 billion shares, depending on how many investors subscribe for the rights.

It remains to be seen if the EPF – which has been sold down its stake in MAS to 6.5% as at April 30 2013 on the ex rights date from 7.83% as at Nov 2012 before the rights issue was announced – will subscribe for its portion of the rights. The EPF had been supportive in previous cash calls by MAS.

The 4 for 1 rights issue to raise up to rm3.1 billion will not fail as Khazanah’s irrevocable undertaking to take up its 69.37% portion will raise the minimum rm2.13 billion for the rights issue to go through.

If only Khazanah subscribes for the rights, MAS would only have rm367 million for working capital, versus rm1.31 billion if all the rights are taken up. Of the remaining amount rm987 million goes to capital expenditure while rm777 million is to pare down debt.

As at March 2013, MAS had rn11.41 billion in debt and had approved rm6.89 billion in capex relating to aircraft purchases and other expenditure.

Market observers say MAS has enough capital to last at least two years, even if only 70% of the rights shares are taken up, considering other financial group. Rm2.2 billion is a significant capital injection ...

It is believed that there will be significant cost savings in 2013 from new aircraft and productivity improvement.

The biggest hurdle to cross, perhaps is the fact that MAS showed similar promise to turnaround in the previous two mega cash calls. In Feb 2010, MAS raised rm3.05 billion from 1 for 1 rights issue at rm1.60 per share. Three years before that in Sept 2007, MAS raised rm1.1 billion through a 1 for 2 rights issue at rm2.70 per share.

Sunday, May 12, 2013

Future Destiny of STAR with MCA

Star: It currently (May 2013) offers the highest net dividend yield of 6.9% in the sector now that it is sustainable and backed by its strong operating cash flow as well as balance sheet with a net cash position.

However, it might be slightly affected by a boycott. The Star newspapers’ readers are largely the English educated kind who are concentrated in th

Circulation is important to Star as its earnings are derived largely from its newspapers.

The Star newspaper was once the most widely circulated English daily in Malaysia with more than 300000 copies distributed at one time. However, its circulation has dropped in 1H2012.

Investors can expect some uncertainty at the company for MCA is its major shareholder with a 42.45% stake. If Datuk Seri Chua Soi Lek steps down as MCA president, who will lead the company? Historically every time there was a change in MCA’s leadership, there were changes in the company. Secondly, will MCA make changes to its shareholding?

e urban areas where there is strong support for the opposition.

Friday, May 10, 2013

The Property Developers' Landbank ... Poised For Re rating..

The mega-listing of IOI Properties Bhd, which has total assets worth RM15bil, could spark a re-rating of the local property sector. The relisting slated for somewhere in September 2013, would definitely provide a boost to other developers.

Winners From Iskandar Malaysia

In the base case scenario for the outcome of the 13GE – another win by the BN coalition but by a reduced majority – expect the market to re rate and close the year stronger.

In this scenario, expect sectors and stocks that are significantly undervalued to re rate.

The Iskandar Malaysia’s projects are likely to be the key sales driver for companies over the short term and interest on these stocks would become stronger post 13 GE.

The price momentum and demand for properties would remain strong with rising foreign investments and with the property launches having strong take ups at record prices.

The Beneficiaries …

CapitalLand: Owns 71 acres in Danga Baym Iskandar with GDV of rm8.1 billion;
Dialog: Its massive rm5 billion Pengerang project has a 60 year concession;
Gamuda: 50% of Horizon Hills in Nusajaya (710 acres of unsold land, rm4.3 billion balance GDV);
IWH/Tebrau: Of the about 1,700ha, IWH has about 809.37ha in Danga Bay. Of the balance land-bank, 768.9ha are in the Johor Baru city centre and the eastern side or Tebrau Coast of the southern tip of Johor Baru, and it also has 121.41ha in Desaru;
Genting Plantation: Owns 6571 acres of land near Senai Airport. Owns the Johor Premium Outlet;
E&O: Owns 210 acres in Medini that will be developed into a wellness project;
IOI Corp: Owns 1955 acres of land in Kulai, near the Senai airport;
Mah Sing: Owns 433 acres in Johor including 8.2 acres in Medini;
SP Setia: Sominant developer in wider Johor with over 1000 acres of landbank;
Sunway: Owns 1858 acres of land in Iskandar with total GDV of rm30 billion;
UEM Land: Has the largest landbank of any developer in Iskandar with over 7000 acres undeveloped;
WCT: Owns 46 acrers of land in Johor including 34 acres in Medini
KSL: Owns 1900 acres near Iskandar Malaysia. The company is developing a nixed use development in Klang with a DGV of rm2.5 billion.
Crescendo Corp: Owns 3000 acres in Johor. The company is set to launch its rm3 billion Bandar Cemerland Development in 2014.
Daiman Development: Onws 2286 acres in Johor booked at an average price of rm5.92 psf.
Genting Plantation: Owns 6571 acres of land near Senai Airport. Owns the Johor Premium Outlet

Other Property Developers are …

Hua Yang: Expands GDV by 67% to rm3.8 billion with the purchase of a 29.2 acre tract in Puchong.
Net Cash/(Net Debt): -rm31.2 

LBS: The company has a huge war chest for acquistions after raising rm539 million cash through the disposal of two property subsidiaries in China.
Net Cash/(Net Debt): -270.5 

Tambun Indah Land Bhd: Owns 500 acres near Penang’s Second Bridge with good development potential.
Net Cash/(Net Debt): 12.2

I-Bhd: Has exclusive rights to develop the 72 acre I-City in Shah Alam which has a total GDV of rm5 billion.
Net Cash/(Net Debt): 16.1 

KEN Holdings: It is planning an integrated project in Johor Baru with a GDV of at least rm12.2 billion.
Net Cash/(Net Dedt): 4.2

Ho Hup: Owns exclusive rights to develop a 10 acre tract in Bukit Jalil and to develop another 50 acres with Malton Bhd via a JV. Total GDV for the 60 acres in Bukit Jalil amounts to rm4 billion.
Net Cash/(Net Debt): -6.7

IOI Corp: Owns 1955 acres of land in Kulai, near the Senai airport;

Mah Sing: Owns 433 acres in Johor including 8.2 acres in Medini;

Tuesday, May 7, 2013

About Destini ... UMNO Linked.

It was given a new lease of life after it exited PN17 category in April 2013, has set its sights on the global lifeboat maintenance, repair and overhaul (MRO) market and also commercial aircraft safety equipment business to reduce its dependency on military related jobs.

The company is an aircraft safety equipment MRO company for the RMAF, which contributed the bulk of its revenue.

The company is eyeing some rm700 million worth of jobs in the global lifeboat MRO market over the next five years from 2013.

It diversified into the maritime business in Dec 2012 when it acquired Singapore based outfit for rm9.88 million in the manufacturer of lifeboats and lifeboat equipment.

The company is also in the midst of making a rm43 million acquisition of Techno Fibre Ltd which is also involved in the marine safety industry.

It was previously reliant on MRO contracts for aircraft, safety equipment from the RMAF, will focus its resources on expanding this new segment.

Currently (May 2013), 70% - 80% of the company’s revenue comes from its military contracts. Its current (May 2013) agreement with the government will run until Sept 2013 but confident of an extension. The current contract was for five years with an option to extend for three years and an additional two years.

The company is reducing the number of military related work it takes on but the contribution to revenue will drop as its other business segments grow.

It is slowly moving into MRO for commercial aircraft safety equipment. For now (May 2013), it has a few contracts with Airasia.

The company’s gearing is now zero. Its acquisitions were funded internally through rights issues and private placements of shares.

The company has set aside rm100 million for the expansion of its marine safety segment.

In Nov 2012, the company saw the emergence of BPH Capital Sdn Bhd as a new shareholder and new members on the board and audit committee. UMNO supreme council member Datuk Abdul Aziz Sheikh and ROzabil, an UMNO Youth treasurer, came on board as non executive directors, and Rozabil took over the management after he and Abdul Aziz bought a 26.4% controlling g block of shares.

Rozabli is the major shareholder of Destini with a 24.52% stake through BPH Capital which other shareholder is Abdul Aziz.

Saturday, May 4, 2013

I'm coming home~ coming home

I'm coming home~ coming home~
tell the whole world i'm coming to vote~

Please help to vote to fight for corruption~

Wednesday, May 1, 2013

I'm Chinese. I'm not afraid of PAS, but I'm afraid of corruption~

Because corruption can cause a life, 
unfair business environment, 
unbalance wealth distribution,
import rubbish from other country and so on..

We pay income tax same as others, 
but we need pay more for house, 
need to be like begger to request Chinese school, 
and treated as 2nd category people..

Change now, or never~

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Please note that all data given are merely blogger's opinion. It is strongly recommended that you do your own analysis and research before investing.