Saturday, November 18, 2006

Tanjung Offshore 3Q net profit up 86%

Tanjung Offshore Bhd’s net profit jumped 85.24% to RM5.71 million for the third quarter ended Sept 30, 2006, from RM3.08 million a year earlier boosted by completion of various engineering equipment contracts and ongoing vessel charters.

Revenue rose 65.7% to RM78.64 million from RM47.46 million.

For the first nine months, its net profit rose 37.92% to RM12 million from RM8.8 million a year earlier, while revenue rose 35.21% to RM185.93 million from RM140.32 million.

In a statement on Nov 17, chairman Datuk Wira Syed Ali Alhabshee attributed the higher revenue and profitability mainly to contracts like the supply of gas turbine spares, compressors and various process systems.

He said Tanjung Offshore’s on-going vessel charters like MV Tanjung Jara, MV Tanjung Huma, MV Tanjung Manis and the recently launched Tanjung Pinang1 also contributed to the bottom line.

Syed Ali said the company’s mobile offshore production unit, which began operations at the Cendor field offshore Terengganu, is also expected to contribute to its future earnings.

Thursday, November 16, 2006

Another record high for the year

The KL Composite Index surged to another record high for the year on Nov 16. Trading gained momentum as the day progressed underpinned by active interest in lower-liner stocks.

Market breadth was positive for much of the day despite some ongoing profit-taking activities. At the close, gaining stocks outnumbered losing ones by nearly two to one.

The prevailing sentiment remains bullish even though the market has seen significant gains in recent weeks. Profit-taking activities have been very well absorbed on the back of healthy market volume. Over 1.2 billion shares were traded, the highest daily volume in nearly six months.

Lower-liner stocks with the likes of Amsteel Corp, Scomi Group and Ekran dominated the most actives list. Warrants also appears back in favour in view of the current expectations for more upside. These derivatives offer investors greater leverage (and gains) in a bullish market.

Gains chalked up by key index-linked stocks like BAT, Telekom Malaysia and Maxis Communications led the benchmark index nine points higher to 1,037.6. Other big gainers were DiGi.Com, KL Kepong, KNM Group, EON Capital and Ta Ann. Retailer AEON Co has also done very well over the past two weeks. The stock added another 30 sen to close at RM7.15.

Tuesday, November 14, 2006

KLCI hit another new multi-year high.

After a mild bout of profit-taking activities on Nov 13, the bulls returned with a vengeance on Nov 14. Trading volume expanded above the one billion shares mark and the KLCI hit another new multi-year high.

The positive sentiment was also partly helped by strong performances from most regional markets, plus a sharp overnight drop in crude oil prices and the strengthening ringgit.

The KLCI's ability to hold well above the 1,000-point level and fully absorb profit-taking activities has drawn fresh investor interest. While intermittent profit-taking activities may be expected, the market's underlying sentiment appears to remain fairly positive in the near term.

Investor interest appears to be broadening out, which is a positive development. Earlier gains were mostly concentrated within a small number of key blue chips and plantation stocks.

Investors are now also re-rating stocks in the construction and infrastructure sectors, particularly those seen as beneficiaries of increased infrastructure spending under the Ninth Malaysia Plan, or associated with the Second Penang Bridge and the Iskandar Development Region in South Johor.

The KLCI was in positive territory throughout the day, with the index adding on more gains as the day progressed. The benchmark index ended right at its intra-day high, up 10.3 points to 1,030.1. Advancing stocks beat declining ones by a 2.5-to-1 ratio on high volume of 1.12 billion shares.

Trading was dominated mostly by penny or construction and infrastructure-related stocks, including UEM Builders, PMI, Gamuda warrants, MRCB and Tebrau. The day's top gainers were mostly blue chips, led by BAT, Tanjong plc, Guinness, Batu Kawan and Tenaga. Losers include Negara Properties, Resorts World and DiGi.

Monday, November 13, 2006

Counter to monitor

Latest i buy sugarbun, keuro n apli...

Tuesday, November 07, 2006

APLI to invest RM33m in Vietnam plant expansion

Latex glove manufacturer APL Industries Bhd (APLI) is investing RM33 million to increase the output of its Vietnam plant next year, as it is making losses because it is running below capacity.

Group managing director Datuk Seri Stanley Thai said on Nov 7 that it made sense to expand in Vietnam because of its cheaper labour costs and abundant natural resources, including latex.

Under the first phase of the expansion, APLI would invest RM8 million in two boilers – biomass thermal-oil heat energy generators -- and upgrade six dipping process machines, which would increase the Vietnam plant's output and achieve economies of scale.

Speaking to reporters in Subang Jaya after signing an agreement with Ecotherm Sdn Bhd for the installation of the boilers, he said the company had obtained “sufficient borrowings” to fund the expansion.

Thai said its Vietnam plant's average monthly production would increase by 92% to about 86 million pieces of gloves when the expansion is completed by June 2007. The average monthly production was 45 million pieces in 2005.

“I believe by the third quarter of 2007, the total annual production capacity of APL group will be increased to 5.3 billion pieces of gloves,” said Thai, who is also Supermax Corporation Bhd managing director. Supermax has a 12.9% stake in APLI.

The company would invest another RM25 million in December next year to install 12 new production lines for its Vietnam plant to increase APLI’s annual production capacity to 7.1 billion pieces of gloves, Thai said.

He added that APLI was confident its Vietnam plant would become profitable by raising its output and manufacturing higher-end and value-added products.

“With the completion and commissioning of the new biomass boilers and the completion of machinery upgrade, APLI group would return to profitability and be part of the prominent supplier in the glove industry,” Thai said.

Meanwhile, stock market data showed there were 20.05 million APLI shares transacted off-market on Nov 7 at RM4.31 million.

The 5.75% stake was transacted at an average price of 21.5 sen.

Monday, November 06, 2006

Tanjung Offshore in RM41m shipbuilding contract with Boustead Naval Shipyard

Tanjung Offshore Bhd's unit Tanjung Kapal Services Sdn Bhd has awarded a RM41 million-shipbuilding contract to Boustead Naval Shipyard Sdn Bhd for an anchor-handling tug and supply vessel.

It said on Nov 6 that the construction of the vessel would be financed by internal funds and borrowings. Completion of the vessel is expected to be the third quarter of 2008.

The company said the 60-metre vessel would be able to perform as a safety vessel for offshore drilling and workover rigs on 24 hours a day basis.

Tanjung said the vessel could also be used for fire fighting, provision of supply and transportation of equipment and cargo between offshore facilities and platforms.

Sunday, November 05, 2006

K-ONE Technology Bhd expects organic growth

K-ONE Technology Bhd expects organic growth to spur its top and bottom lines substantially next year.

Founder and chairman Edwin Lim Beng Fook said by then, the company would be better equipped to take on design tasks worth over RM1mil compared with the present RM100,000- to RM200,000-sized projects. This is in addition to manufacturing contracts worth over RM10mil from the present RM1mil.

The company exports almost 100% of its design services and manufactured electronic products in the mobile phone accessories, computer peripherals and consumer electronic industries.

It is currently investing RM1.5mil to set up a new design and development centre in Damansara Jaya and another RM1.5mil to expand its manufacturing facilities from its listing proceeds of RM8.4mil.

“We are also buying additional design and development equipment such as wireless testing equipment and CAD (computer-aided design) stations for the new centre,” Lim said, adding that the company would move in by January.

Some RM4.4mil will be for working capital and to defer the listing expenses while the balance of about RM900,000 will be used to set up a new sales office each in Europe and the US.

Currently, it has only one sales office in Oslo, Norway, and a sales representative office each in Sweden, the Netherlands and Britain.

“With the presence of these sales offices, we will be closer to our customers and be able to work together with our major clients’ design and development team to scout for new projects,” Lim said.

He added that K-One would also seek opportunities to buy suitable design companies overseas or local technology firms that complemented its business model.

Being a global player, he said K-One was “just scratching the surface and has plenty of room to grow in design and development as well as contract manufacturing operations.”

According to statistics by investment group Bears Stearns Inc, the market value of design services this year is estimated at some US$18bil while the contract manufacturing market is worth almost US$360bil.

Wednesday, November 01, 2006

Blue chips firmer, led by Pos Malaysia

Blue chips started the new month on Nov 1 on a firmer footing led by Pos Malaysia, though penny stocks were lower after the sharp fall on Sugar Bun and Sanbumi on Oct 31.

At midday, the KLCI had risen 1.6 points to 989.9 and the FBM Emas gained 6.79 points to 6,446.04 but the Second Board Index fell 0.02 point to 87.72. The KLCI futures for November rose 2.5 points to 988.

Trading volume was 344.56 million shares valued at RM362 million. Losers beat gainers 380 to 255 while 299 counters were traded unchanged.

Major Asian markets were higher at midday. Singapore's Straits Times Index added 24.22 points or 0.9% to 2,725.97, South Korea's KOSPI 0.9% to 1,376.79 and Japan's Nikkei 225 0.2% to 16,432.5.

Light crude oil for December delivery was traded at US$58.56.

Analysts said the market undertone was healthy among blue chips, with rotational interest seen in counters with fresh corporate news including Pos Malaysia and Bursa Malaysia Bhd.

They said investors were awaiting more leads on contracts to be awarded in the Ninth Malaysia Plan in coming weeks.

Among the heavyweights, Telekom rose 10 sen to RM8.85, Maybank was flat at RM11.20 while Tenaga fell five sen to RM9.95.

Pos Malaysia rose 29 sen to RM5.25 after announcing its RM1.50 per share payment. Ta Ann extended its gains on stronger earnings, up 30 sen to RM10.70.

Bursa rose 15 sen to RM6.10 after its third quarter net profit rose 28.14% to RM25.1 million for the third quarter ended Sept 30, 2006. It also declared a special dividend of 28 sen per share less tax.

BAT and Hume Industries added 25 sen each to RM42.50 and RM3.24 while Kulim gained 22 sen to RM4.88 and Transmile 20 sen to RM12.90.

PLUS, which won a toll-concession contract in Indonesia, rose two sen to RM2.90.

GHL Systems was the most active with 17.74 million shares. It rose 0.5 sen to 21 sen.

The cautious sentiment towards penny stocks saw AT Systemisation falling four sen to 29.5 sen with 13.28 million shares traded. Talam extended its decline, down another two sen to 16.5 sen, after IJM denied buying a stake in the property developer.

Sugar Bun fell four sen to RM2.98 and the warrants lost 14 sen to RM2.49, as investors were cautious following Bursa Securities' recent query.

Selling pressure eased on Sanbumi, down one sen to 63.5 sen. On Oct 31, Sanbumi fell 29 sen to 64.5 sen.

Genting was the top loser, falling 25 sen to RM26.50 in thin trade, Shell lost 20 sen to RM10.40, IOI Corp and IOI Properties 10 sen each to RM17.10 and RM8.50.