Thesun 2009-01-07 Page16 Massive Landbank To Benefit Sime
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theSun
| WEDNESDAY JANUARY 7 2009
business Hang Seng
15,509.51
53.80
S&P/ASX200
TSEC
KLCI
3,742.70
4,727.26
922.23
55.70
28.95
STI
1,913.66
11.21
1.57
KOSPI
Nikkei
1,194.28
9,080.84
20.71
market summary JANUARY 6, 2008
37.72 INDICES
Massive landbank to benefit Sime KUALA LUMPUR: Sime Darby Bhd stands to be a prime beneficiary of Peninsular Malaysia’s long-term urbanisation process as evidenced by the plan to build a 1,200ha new low-cost carrier terminal (LCCT) for AirAsia at its Labu estate. According to OSK Research Sdn Bhd, urban development would eventually reach Sime’s 258,000ha of plantation landbank. The research house said although urbanisation is a slow process, bringing development to its plantation landbank could be expedited when the opportunity arises.
“It is in the sourcing of the landbank where we think Sime will derive the most synergy from the mega merger,” it said in a research note. OSK Research said the new airport would immediately boost development potential and hence the value of its plantation land in the surrounding areas. Sime, which emerged largely from the merger of Sime UEP and Kumpulan Guthrie’s property development arm, is one of the largest property developers in the country with landbank of about 14,800ha, of
Top Glove records higher Q1 net profit KUALA LUMPUR: Top Glove Corp Bhd’s pre-tax profit for the first quarter ended Nov 30, 2008 rose to RM43.3 million from RM34.6 million in the same quarter 2007. Revenue rose by 15% to RM386.1 million from RM336.5 million previously. In a statement here yesterday, the rubber glove manufacturer said the significantly higher sales and profit were in line with its continuous expansion in output capacity, better quality control, improvement in cost efficiency and marketing strategy. “The decline in oil and latex
prices and favourable exchange rate also helped to increase profit,” it said. Top Glove said the world economic slowdown due to the current financial crisis has a minimum impact on its performance as gloves were necessity items in the healthcare sector. “The group’s sales were mainly to the healthcare industry, which was less sensitive to the current economic situation. “However, a slowdown is expected in the non-medical sectors – industrial and food and beverage,” he said. – Bernama
which 3,480ha are ready for immediate development. The research house said the streamlining of Sime’s plantation and property sector is expected to derive some RM400-RM500 million in merger benefits in financial year 2009. “Assuming that Sime achieved these synergistic benefits in financial year 2008, and generated an extra RM500 million in operating profit in the same period, and that these profits were solely attributable to the plantation division, its profit per mature hectare would rise to RM9,173 from RM8,124,” it said. On plantations, OSK Research said, there is still room for Sime’s yield to improve, particularly in Indonesia where some 41.6% of the trees are aged between five and 10 years old. It said on the Malaysian side, the yield will be slower as trees aged five to 10 years old make up a much smaller proportion of 28%. – Bernama
FBMEMAS COMPOSITE INDUSTRIAL CONSUMER PROD INDUSTRIAL PROD CONSTRUCTION TRADING/SERVICES FINANCE PROPERTIES PLANTATIONS MINING FBMSHA FBM2BRD TECHNOLOGY TURNOVER
It is in the sourcing of the landbank where we think Sime will derive the most synergy from the mega merger.”
WCT could lose RM1.29bil in order book KUALA LUMPUR: Construction firm WCT Bhd is facing a potential loss of order book of about RM1.29 billion following the cancellation of its racecourse contract in Dubai. The RM4.6 billion contract, which was awarded by Meydan L.L.C, was given to a 50:50 joint venture (JV) between WCT and Arabtec Construction L.L.C. In its filing to Bursa Malaysia, the construction firm said as to date, the joint venture has completed about 55% of the physical portion of works. It said of the balance remaining works, about 40% was to be undertaken by nominated subcontractors and about 5% directly by the JV. “WCT’s share of potential loss of order book is approximately RM1.29 billion,” it added. Subsequent to the cancellation, Meydan called on the
performance bond and advance payment bond provided by the JV, which call the JV is contesting. “Should the JV fail in its contestation of the payment of bonds, the estimated net cash flow impact to the company will be about RM178 million. The company is of the opinion that it is able to fulfil its commitments with the issuing bank,” the group said. The above payment, when made will result in the net gearing ratio of the group to increase to 0.57 times from 0.42 times. This payment on the bonds is recoverable from Meydan, WCT said. The group viewed the cancellation as a breach of contract and is currently considering all its options and will take necessary steps to protect its interest. WCT’s shares were halted from trading yesterday. – Bernama
Support children with
Autism
Dyslexia, Dyspraxia & ADD/ADHD Linguistic Council is an organization devoted to helping children with special needs. Our programmes are designed to equip teachers, parents and care-givers with the skills necessary to identify and support children with learning difficulties.
Diploma in Learning Disorders Management & Child Psychology Register for a course preview by calling 03-2078 1613/16 Pusat Latihan Asia Pasifik Sdn Bhd (Linguistic Council) No. 57 Wisma AMGM Jalan Hang Lekiu Mezzanine Floor 50200 Kuala Lumpur Tel: 03-2078 1616 www.linguistic-council.com
765.472mil
CHANGE 6,043.00 +3.12 922.23 +1.57 2,152.72 +12.09 290.36 +2.91 69.41 +0.30 170.91 -2.81 122.12 -0.57 7,194.20 +123.30 541.26 -1.39 4,752.87 -23.16 247.23 +4.06 6,300.79 -25.73 4,070.27 -11.65 13.65 -0.47 VALUE RM1,084mil
Prices closed mixed SHARE prices on Bursa Malaysia closed mixed yesterday on mild buying interest in selected heavyweights and lower liners particularly banking stocks, dealers said. The KLCI edged up 1.57 points or 0.171% to 922.23, pushed by gains mostly in Maybank and Bumiputra-Commerce. It opened 0.49 of a point higher at 921.15. Dealers said mild profit-taking activities in plantation stocks capped some of the gains. Losers led gainers by 291 to 258 while 200 counters were unchanged, 503 untraded and 31 others suspended. Aseambankers, in its first quarter outlook for the local bourse said the KLCI could remain at modestly higher levels on hopes of a strong United States fiscal stimulus package and a firmer ringgit. Besides that, the investment bank said another fiscal stimulus package for Malaysia as well as more monetary easing by regulators during the quarter would likely lend some support to the local bourse. It also said plantation and banking stocks would likely be in focus during the quarter. For the top gainers, British American Tobacco moved 75 sen to RM44.75, Loh & Loh rose 51 sen to RM5.35 and Nestle increased 50 sen to RM28. For the actives, KNM edged up half sen to 48.5 sen, UEM Land and Malaysian Resources Corporation shed half sen each to 70 sen and 81 sen respectively and IOI Corporation eased four sen to RM4.34. As for the heavyweights, Sime Darby declined five sen to RM5.65 while Tenaga Nasional and Public Bank were unchanged at RM6.40 and RM8.80 respectively. Maybank and Bumiputra-Commerce added 15 sen each to RM5.55 and RM6.50 respectively while MISC added 10 sen to RM8.75. – Bernama
Auto sales expected to drop 8% this year KUALA LUMPUR: International consultant Frost & Sullivan expects sales of vehicles in Malaysia to drop by 8.1% this year to 501,500 units due to the economic slowdown and limited new model launches. The firm’s partner and head of the automotive and transportation practice for Asia Pacific, Kavan Mukhtyar, said that sales of passenger vehicles, including sport utility vehicles, multi-purpose vehicles (MPVs) and cars will drop by 6.8% as consumers will be more cautious in taking up new loans. “The commercial vehicle segment will see the biggest drop by 20.9% as many companies are freezing their new asset purchases,” he said during a media briefing on the Malaysian Automotive Outlook yesterday. However, he said, Proton’s market share may rise marginally in 2009 due to its multipurpose vehicle (MPV) launch in the first quarter this year, according to international consultants Frost & Sullivan. – Bernama
Janakuasa gets US$1.5bil power plant job in Vietnam HANOI: Janakuasa Sdn Bhd (Janakuasa) is to build a coal-powered US$1.5 billion power plant in Tra Vinh province in south Vietnam to meet the energy needs of the rapidlydeveloping former communist nation. Known as “Duyen Hai 2”, the 500KV plant will start construction in 2011 and slated for completion in 2015, says Janakuasa president and chief executive officer Ti Chee Liang. – Bernama
theSun
| WEDNESDAY JANUARY 7 2009
business Hang Seng
15,509.51
53.80
S&P/ASX200
TSEC
KLCI
3,742.70
4,727.26
922.23
55.70
28.95
STI
1,913.66
11.21
1.57
KOSPI
Nikkei
1,194.28
9,080.84
20.71
market summary JANUARY 6, 2008
37.72 INDICES
Massive landbank to benefit Sime KUALA LUMPUR: Sime Darby Bhd stands to be a prime beneficiary of Peninsular Malaysia’s long-term urbanisation process as evidenced by the plan to build a 1,200ha new low-cost carrier terminal (LCCT) for AirAsia at its Labu estate. According to OSK Research Sdn Bhd, urban development would eventually reach Sime’s 258,000ha of plantation landbank. The research house said although urbanisation is a slow process, bringing development to its plantation landbank could be expedited when the opportunity arises.
“It is in the sourcing of the landbank where we think Sime will derive the most synergy from the mega merger,” it said in a research note. OSK Research said the new airport would immediately boost development potential and hence the value of its plantation land in the surrounding areas. Sime, which emerged largely from the merger of Sime UEP and Kumpulan Guthrie’s property development arm, is one of the largest property developers in the country with landbank of about 14,800ha, of
Top Glove records higher Q1 net profit KUALA LUMPUR: Top Glove Corp Bhd’s pre-tax profit for the first quarter ended Nov 30, 2008 rose to RM43.3 million from RM34.6 million in the same quarter 2007. Revenue rose by 15% to RM386.1 million from RM336.5 million previously. In a statement here yesterday, the rubber glove manufacturer said the significantly higher sales and profit were in line with its continuous expansion in output capacity, better quality control, improvement in cost efficiency and marketing strategy. “The decline in oil and latex
prices and favourable exchange rate also helped to increase profit,” it said. Top Glove said the world economic slowdown due to the current financial crisis has a minimum impact on its performance as gloves were necessity items in the healthcare sector. “The group’s sales were mainly to the healthcare industry, which was less sensitive to the current economic situation. “However, a slowdown is expected in the non-medical sectors – industrial and food and beverage,” he said. – Bernama
which 3,480ha are ready for immediate development. The research house said the streamlining of Sime’s plantation and property sector is expected to derive some RM400-RM500 million in merger benefits in financial year 2009. “Assuming that Sime achieved these synergistic benefits in financial year 2008, and generated an extra RM500 million in operating profit in the same period, and that these profits were solely attributable to the plantation division, its profit per mature hectare would rise to RM9,173 from RM8,124,” it said. On plantations, OSK Research said, there is still room for Sime’s yield to improve, particularly in Indonesia where some 41.6% of the trees are aged between five and 10 years old. It said on the Malaysian side, the yield will be slower as trees aged five to 10 years old make up a much smaller proportion of 28%. – Bernama
FBMEMAS COMPOSITE INDUSTRIAL CONSUMER PROD INDUSTRIAL PROD CONSTRUCTION TRADING/SERVICES FINANCE PROPERTIES PLANTATIONS MINING FBMSHA FBM2BRD TECHNOLOGY TURNOVER
It is in the sourcing of the landbank where we think Sime will derive the most synergy from the mega merger.”
WCT could lose RM1.29bil in order book KUALA LUMPUR: Construction firm WCT Bhd is facing a potential loss of order book of about RM1.29 billion following the cancellation of its racecourse contract in Dubai. The RM4.6 billion contract, which was awarded by Meydan L.L.C, was given to a 50:50 joint venture (JV) between WCT and Arabtec Construction L.L.C. In its filing to Bursa Malaysia, the construction firm said as to date, the joint venture has completed about 55% of the physical portion of works. It said of the balance remaining works, about 40% was to be undertaken by nominated subcontractors and about 5% directly by the JV. “WCT’s share of potential loss of order book is approximately RM1.29 billion,” it added. Subsequent to the cancellation, Meydan called on the
performance bond and advance payment bond provided by the JV, which call the JV is contesting. “Should the JV fail in its contestation of the payment of bonds, the estimated net cash flow impact to the company will be about RM178 million. The company is of the opinion that it is able to fulfil its commitments with the issuing bank,” the group said. The above payment, when made will result in the net gearing ratio of the group to increase to 0.57 times from 0.42 times. This payment on the bonds is recoverable from Meydan, WCT said. The group viewed the cancellation as a breach of contract and is currently considering all its options and will take necessary steps to protect its interest. WCT’s shares were halted from trading yesterday. – Bernama
Support children with
Autism
Dyslexia, Dyspraxia & ADD/ADHD Linguistic Council is an organization devoted to helping children with special needs. Our programmes are designed to equip teachers, parents and care-givers with the skills necessary to identify and support children with learning difficulties.
Diploma in Learning Disorders Management & Child Psychology Register for a course preview by calling 03-2078 1613/16 Pusat Latihan Asia Pasifik Sdn Bhd (Linguistic Council) No. 57 Wisma AMGM Jalan Hang Lekiu Mezzanine Floor 50200 Kuala Lumpur Tel: 03-2078 1616 www.linguistic-council.com
765.472mil
CHANGE 6,043.00 +3.12 922.23 +1.57 2,152.72 +12.09 290.36 +2.91 69.41 +0.30 170.91 -2.81 122.12 -0.57 7,194.20 +123.30 541.26 -1.39 4,752.87 -23.16 247.23 +4.06 6,300.79 -25.73 4,070.27 -11.65 13.65 -0.47 VALUE RM1,084mil
Prices closed mixed SHARE prices on Bursa Malaysia closed mixed yesterday on mild buying interest in selected heavyweights and lower liners particularly banking stocks, dealers said. The KLCI edged up 1.57 points or 0.171% to 922.23, pushed by gains mostly in Maybank and Bumiputra-Commerce. It opened 0.49 of a point higher at 921.15. Dealers said mild profit-taking activities in plantation stocks capped some of the gains. Losers led gainers by 291 to 258 while 200 counters were unchanged, 503 untraded and 31 others suspended. Aseambankers, in its first quarter outlook for the local bourse said the KLCI could remain at modestly higher levels on hopes of a strong United States fiscal stimulus package and a firmer ringgit. Besides that, the investment bank said another fiscal stimulus package for Malaysia as well as more monetary easing by regulators during the quarter would likely lend some support to the local bourse. It also said plantation and banking stocks would likely be in focus during the quarter. For the top gainers, British American Tobacco moved 75 sen to RM44.75, Loh & Loh rose 51 sen to RM5.35 and Nestle increased 50 sen to RM28. For the actives, KNM edged up half sen to 48.5 sen, UEM Land and Malaysian Resources Corporation shed half sen each to 70 sen and 81 sen respectively and IOI Corporation eased four sen to RM4.34. As for the heavyweights, Sime Darby declined five sen to RM5.65 while Tenaga Nasional and Public Bank were unchanged at RM6.40 and RM8.80 respectively. Maybank and Bumiputra-Commerce added 15 sen each to RM5.55 and RM6.50 respectively while MISC added 10 sen to RM8.75. – Bernama
Auto sales expected to drop 8% this year KUALA LUMPUR: International consultant Frost & Sullivan expects sales of vehicles in Malaysia to drop by 8.1% this year to 501,500 units due to the economic slowdown and limited new model launches. The firm’s partner and head of the automotive and transportation practice for Asia Pacific, Kavan Mukhtyar, said that sales of passenger vehicles, including sport utility vehicles, multi-purpose vehicles (MPVs) and cars will drop by 6.8% as consumers will be more cautious in taking up new loans. “The commercial vehicle segment will see the biggest drop by 20.9% as many companies are freezing their new asset purchases,” he said during a media briefing on the Malaysian Automotive Outlook yesterday. However, he said, Proton’s market share may rise marginally in 2009 due to its multipurpose vehicle (MPV) launch in the first quarter this year, according to international consultants Frost & Sullivan. – Bernama
Janakuasa gets US$1.5bil power plant job in Vietnam HANOI: Janakuasa Sdn Bhd (Janakuasa) is to build a coal-powered US$1.5 billion power plant in Tra Vinh province in south Vietnam to meet the energy needs of the rapidlydeveloping former communist nation. Known as “Duyen Hai 2”, the 500KV plant will start construction in 2011 and slated for completion in 2015, says Janakuasa president and chief executive officer Ti Chee Liang. – Bernama
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