07 December 2011
AirAsia: Wants SLA for KLIA2. AirAsia Bhd wants MAHB to implement its requests by providing a service level agreement (SLA) which should incorporate aeronautical charges at KLIA2. Correspondingly, MAHB has responded positively to the request for SLA. AirAsia has asked for a full and parallel taxiway to Runway 2 that can save the airline some RM40m in additional fuel cost yearly. (Source: The Edge Financial Daily)
MAS: New revamp plan. MAS has put together yet another business plan to turn itself around. It is learnt that the new management of the national carrier, which had undergone several revamps, has been working on the plan for the past two months. This time the focus is on growing the routes in Asia, improving on products, cutting unprofitable routes and forming alliances with more airlines according to a source. (Source: The Star)
Maybank: Assets under custody set to grow 20%. Maybank expects its new eCustody service to grow assets under custody by 20% next year, from RM50b at June 30 this year. eCustody is an online module within Maybank's enterprise cash management portal, Maybank2E.net. Deputy president and head of global wholesale banking Abdul Farid Alias said that Maybank's local and international assets under custody stood at RM37b at June 30, 2010. (Source: The Star)
Ekovest, MRCB: JV gets River of Life project. Ekovest-MRCB JV Sdn Bhd, a 60:40-JV between Ekovest Bhd and MRCB has finally been appointed the project delivery partner (PDP) for the RM2.2b Klang river rehabilitation and beutification project known as the River of Life project. The JV as the PDP will receive 1% of the estimated value of the project of RM2.2b as compensation for managing and coordinating. (Source: The Edge Financial Daily)
Wijaya: To start Papua timber ops by April. Wijaya Baru Global Bhd, which won shareholders' approval today to acquire a 80,000ha timber concession in Papua province, Indonesia for USD80m (RM252.6m), hopes to start extracting logs from the area by April next year. The target is to harvest RM727m worth of timber in the first year of operation. Group CEO and executive director Datuk Faizal Abdullah said the company will need another RM40m to build up the necessary infrastructure at the site, including a RM10m sawmill. (Source: The Sun)
Guocoland: Buys Cheras land for RM108m. Guocoland Bhd said today an indirect wholly-owned unit Ace Acres Sdn Bhd has proposed to acquire an 18.9ha parcel of land in Cheras here from Bonds Corporation Sdn Bhd for RM107.9m. The property consists of nine parcels of contiguous land sandwiched between Alam Damai and Bandar Damai PerdanaTaman. The transaction valued the land at RM53 per sq ft. (Source: The Sun)
(Information from MBB)
Wednesday, 7 December 2011
Today Trading idea is an Accumulate call for BOILERM
07 December 2011
Boilermech Holding Berhad (BOILERM) manufactures, repairs and refurbishes boilers. The company primarily serves the palm oil milling industry, but has also designed boilers for the sugar milling, rubber-based manufacturing, food processing, and palm oil refining industries.
BOILERM made a major daily Wave 2 low of RM0.58 on 26 September 2011, with oversold and bullish signals. Furthermore, the positive indicators of the CCI, DMI, MACD, Stochastic and Oscillator indicators are supportive of much further upside. We feel that BOILERM will surge in the period mentioned above.
ACCUMULATE (TECHNICAL) on dips for BOILERM with its firm support areas of RM0.72 and RM0.82. The potential Wave 3 & 5 upside target areas is located at RM0.98, RM1.23 and RM1.51. Stop-loss is at RM0.70.
FBM KLCI: Key Points
Some trading stocks that we like are: AEONCR, AFG,
ARMADA, CARLSBG, GENP, GENTING, KFIMA,
MBFHLDG, MUDA, ORIENT, TM, TWSPLNT and WIJAYA.
(Information from MBB)
Boilermech Holding Berhad (BOILERM) manufactures, repairs and refurbishes boilers. The company primarily serves the palm oil milling industry, but has also designed boilers for the sugar milling, rubber-based manufacturing, food processing, and palm oil refining industries.
BOILERM made a major daily Wave 2 low of RM0.58 on 26 September 2011, with oversold and bullish signals. Furthermore, the positive indicators of the CCI, DMI, MACD, Stochastic and Oscillator indicators are supportive of much further upside. We feel that BOILERM will surge in the period mentioned above.
ACCUMULATE (TECHNICAL) on dips for BOILERM with its firm support areas of RM0.72 and RM0.82. The potential Wave 3 & 5 upside target areas is located at RM0.98, RM1.23 and RM1.51. Stop-loss is at RM0.70.
FBM KLCI: Key Points
- BOILERM – On a very strong Wave 3 surge
- FBMKLCI – “Gap-filling” decline
- Obvious supports of 1,458 & 1,477
- 1,480 & 1,503 will cap the rebounds
Some trading stocks that we like are: AEONCR, AFG,
ARMADA, CARLSBG, GENP, GENTING, KFIMA,
MBFHLDG, MUDA, ORIENT, TM, TWSPLNT and WIJAYA.
(Information from MBB)
Weekly Equity Flyer: 06 December 2011
06 December 2011
1. TRADEWINDS (MALAYSIA) BERHAD (stock code: 4421)
Tradewinds registered an increase in performance for the financial period ended 30th September 2011
For the financial period ended 30.09.11, the Group’s revenue increased to RM1.7 billion from RM1.4 billion in the corresponding quarter last year. The increase in revenue was contributed by favourable performance of the Rice, Plantation and Sugar Divisions. This had also resulted in the increase in profit before taxation to RM234.9 million during the current quarter as compared to RM233.7 million in the same quarter last year.
Did you know?
Tradewinds, through its subsidiary, BERNAS has positioned itself as the nation's partner in the domestic paddy and rice industry. BERNAS and its group of companies currently control about 24% of the paddy market and 45% of the local rice demand.
Rationale
TRADEWINDS is highlighted this week based on the following points: -
2. SEMBCORP INDUSTRIES LIMITED (stock code: 022053981) Sembcorp Delivers Healthy 9M2011 Performance
SembCorp Industries Limited (Sembcorp) achieved a healthy 5% increase in net profit (Net Profit) attributable to shareholders of the Company before exceptional items for the first nine months of 2011 (9M2011). Group Net Profit increased to S$557.4 million from 9M2010’s S$532.1 million. This excludes the Group’s share of Marine’s exceptional item of S$32.1 million in 9M2010. The Utilities business sustained its strong performance into 9M2011. Net Profit grew 22% and contribution to the Group’s Net Profit increased to 38% compared to 31% last year. The Marine business achieved a Net Profit of S$317.9 million compared to S$347.0 million in 9M2010.
Did you know?
Sembcorp Industries is a leading energy, water and marine group operating across six continents worldwide. With facilities with 5,600 megawatts of gross power capacity and over six million cubic metres of water per day in operation and under development, Sembcorp is a trusted provider of essential energy and water solutions to both industrial and municipal customers. It is also a world leader in marine and offshore engineering, as well as an established developer of integrated townships and industrial parks.The Group has total assets of over S$10 billion and employs over 9,000 employees. Listed on the main board of the Singapore Exchange, it is a component stock of the Straits Times Index and several MSCI indices.
Rationale
SEMBCORP is highlighted in this week's flyer based on these points: -
Happy Trading!
1. TRADEWINDS (MALAYSIA) BERHAD (stock code: 4421)
Tradewinds registered an increase in performance for the financial period ended 30th September 2011
For the financial period ended 30.09.11, the Group’s revenue increased to RM1.7 billion from RM1.4 billion in the corresponding quarter last year. The increase in revenue was contributed by favourable performance of the Rice, Plantation and Sugar Divisions. This had also resulted in the increase in profit before taxation to RM234.9 million during the current quarter as compared to RM233.7 million in the same quarter last year.
Did you know?
Tradewinds, through its subsidiary, BERNAS has positioned itself as the nation's partner in the domestic paddy and rice industry. BERNAS and its group of companies currently control about 24% of the paddy market and 45% of the local rice demand.
Rationale
TRADEWINDS is highlighted this week based on the following points: -
- Very low PE of 5.3x
- Great ROE of 24.6%
- Surging revenue & EPS trends since 2009
- Very high dividend yield (DY) of 6%
- Tightly held stock by its major shareholders.
2. SEMBCORP INDUSTRIES LIMITED (stock code: 022053981) Sembcorp Delivers Healthy 9M2011 Performance
SembCorp Industries Limited (Sembcorp) achieved a healthy 5% increase in net profit (Net Profit) attributable to shareholders of the Company before exceptional items for the first nine months of 2011 (9M2011). Group Net Profit increased to S$557.4 million from 9M2010’s S$532.1 million. This excludes the Group’s share of Marine’s exceptional item of S$32.1 million in 9M2010. The Utilities business sustained its strong performance into 9M2011. Net Profit grew 22% and contribution to the Group’s Net Profit increased to 38% compared to 31% last year. The Marine business achieved a Net Profit of S$317.9 million compared to S$347.0 million in 9M2010.
Did you know?
Sembcorp Industries is a leading energy, water and marine group operating across six continents worldwide. With facilities with 5,600 megawatts of gross power capacity and over six million cubic metres of water per day in operation and under development, Sembcorp is a trusted provider of essential energy and water solutions to both industrial and municipal customers. It is also a world leader in marine and offshore engineering, as well as an established developer of integrated townships and industrial parks.The Group has total assets of over S$10 billion and employs over 9,000 employees. Listed on the main board of the Singapore Exchange, it is a component stock of the Straits Times Index and several MSCI indices.
Rationale
SEMBCORP is highlighted in this week's flyer based on these points: -
- Low PE of 9.8x
- High ROE of 22.2%
- Firm revenue trend since 2010
- Good Dividend Yield of 3.94%
- Tightly held stock by Temasek and its major shareholders.
Happy Trading!
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