Glomac earnings up on robust development activities

Glomac Bhd posted a higher net profit of RM9.3mil in its second quarter ended Oct 3 against RM7.7mil in the previous corresponding period.
Revenue for the period was lower by 17% at RM75.6mil compared with RM91mil previously partly due to the completion of its Suria Stonor condominium project, the company said in a statement yesterday.
Earnings per share stood at 3.26 sen compared with 2.74 sen before.
Group executive chairman Tan Sri F.D. Mansor said: “Robust development activities and a strengthened balance sheet have placed us on a stronger growth platform.
“We are confident of achieving better results this year, and success in our new projects such as Glomac Damansara and Glomac Cyberjaya will contribute positively to our performance in the next two financial years.”
The group turned in a net cash position of RM19.9mil as at end-October, and is expected to improve further with proceeds from the disposal of its investment properties earlier in the year.
“Going forward, our recent acquisition of 7.6 acres in Petaling Jaya for RM31.2mil will add to the group’s already strong prime future development projects,” he added.

LCL skids on investor jitters

Shares in interior design firm LCL Corp Bhd plunged yesterday to their lowest level post-listing in 2004 as worried investors dumped the stock on concern it may face bankruptcy because of the Dubai financial crisis.
On Thursday, LCL said it did not pay loans amounting to RM72mil and was facing further defaults.
The company said it was “deliberating the solvency status of the group’’ and would make further announcements within the required timeframe.
“This news is a major de-rating catalyst, along with worsening news flow and continuing collection problems in Dubai,’’ CIMB Research said yesterday.
“The company offered so much potential, but its operations and balance sheet were hit hard after working conditions in Dubai deteriorated in the aftermath of the property crash in the fourth quarter of 2008,’’ it said.
LCL shares tumbled 10 sen, or 31%, to 22 sen on heavy volume of 41.4 million units.
On Thursday, the company told Bursa Malaysia that it had been “severely impacted” by the financial turmoil in Dubai, where property prices have collapsed resulting in delay and non-payment of its receivables.
“Hence, LCL and its subsidiaries have been unable to meet their repayment obligations,’’ the company said.
As at end-September, LCL’s total debt stood at RM376mil. Most of the loans are short-term financing and almost all of its borrowings were intended for working capital.
The group said it had defaulted on loans worth RM69.4mil due to Affin Bank Bhd and RM2.6mil to Bank Islam Malaysia Bhd.
LCL said due to the overall tight working capital position, the defaulted credit facilities would have a consequence on the group’s bank borrowings, which would also be declared default by other banks under the cross-default clause.
Other lenders used by LCL with cross-default terms include AmBank Bhd, Alliance Bank Malaysia Bhd, Bank Muamalat Malaysia Bhd, EON Bank Bhd, CIMB Investment Bank, Exim Bank, Kuwait Finance House (M) Bhd, Public Bank Bhd, Standard Chartered Bank Malaysia Bhd and Royal Bank of Scotland Group Plc.
LCL had borrowed money from the banks to fund its aggressive expansion, but the group’s venture in Dubai had soured.
“The challenges are not only hitting LCL, but also the main contractors in Dubai, including (South) Korean and Japanese contractors,’’ CIMB Research said.

SUNWAY HOLDINGS BERHAD

LETTER OF AWARD FOR RM23.438 MILLION FROM DAMANSARA ASSETS SDN BHD

Sunway Geotechnics (M) Sdn Bhd, a wholly-owned subsidiary of Sunway Construction Sdn Bhd, which in turn is a wholly-owned subsidiary of Sunway, had on 2 December 2009, accepted the letter of award for a contract worth RM23.438 million from Damansara Assets Sdn Bhd for piling and substructure works (Phase B & C) on Lot 14530, Jalan Tun Abdul Razak, Johor Bahru.

The Proposed Project is targeted to be fully completed on 31 May 2010 with a construction period of 6 months.

The Proposed Project is subject to certain risks in the property and construction sector in Malaysia. These include changes in general economic conditions such as but not limited to inflation, taxation, interest rates, constraints in labour and material supply. The experience and expertise that Sunway Construction Sdn Bhd and Sunway Geotechnics (M) Sdn Bhd have in construction projects in Malaysia provide assurance in mitigating the execution risks.

WCT gets RM363mil job from MAHB

WCT Bhd has received a RM363mil contract from Malaysia Airports Holdings Bhd under the proposed building of a new low-cost carrier terminal at the KL International Airport.
WCT told Bursa Malaysia yesterday the scope of works under the contract comprised site preparation, earthworks and main drainage which were expected to be completed on Jan 1, 2011.
“The contract is not expected to have any material impact on the earnings and net assets of WCT group for the current financial year ending Dec 31, 2009 but is expected to contribute positively to the group’s future earnings and net assets,” it said.

Mah Sing plans mixed property project in China

It will establish a JV firm to undertake the US$620mil development

Property developer Mah Sing Group Bhd is planning a mixed development project in Wujin, Jiangsu province in China, with an estimated investment cost of US$620mil.
The company, via wholly-owned subsidiary Mah Sing International (HK) Ltd, yesterday signed a letter of intent with the Wujin Government to develop the said project.
In a statement yesterday, Mah Sing said it would establish a joint-venture (JV) company with China-based developer DanLong Realty (Beijing) Co to jointly develop a 87.31-acre site along Wuyi Road, a major thoroughfare in the central area of the Wujin district.
Mah Sing, which would have a 51% stake in the JV company, said the development would comprise “medium- to high-end residential and commercial components.”
The Wujin Government had also given the JV company the opportunity to explore additional land, namely 53.13 acres north of Wujin High-New Zone of Zhangzhou City and 82.37 acres at the north intersection of Wunan Road and Wuyi Road, Wujin District, it said.
Mah Sing group managing director-cum-group executive Tan Sri Leong Hoy Kum said in the statement: “We are confident of creating an outstanding development providing unique lifestyle experiences which will transform the way people live, work and play in Wujin.”
In a separate statement, Mah Sing said it had acquired 3.38 acres of freehold land in Penang for a cash consideration of RM38.65mil via its wholly-owned subsidiary, Klassik Tropika Sdn Bhd.
Mah Sing said the land in George Town would be developed into a high-end condominium with an estimated gross development value of RM280mil.
“The acquisition is strategic as it allows the group to tap on the success and spillover demand of Mah Sing’s Residence@Southbay project in Batu Maung,” Mah Sing said.

Salcon expands water concessions to Yizheng municipality

SALCON BHD signed a cooperation agreement yesterday with the local government of Yizheng City in Jiangsu province, China on water and wastewater integration projects in the city and its neighbourhoods.In a statement yesterday, Salcon said the water and wastewater works include planning, operation and maintenance, laying of pipe networks, management of wastewater and recycled water within the Yizheng City administrative area.Further to the cooperation agreement, Salcon said an agreement (JVA) had been signed by its wholly-owned Salcon Jiangsu (HK) Ltd and Yizheng City & Rural Water Co Ltd to incorporate a joint venture company known as Jiangsu Salcon Water Environment Development Co Ltd (JSWED)The registered capital of JSWED would be 60 million yuan (approximately RM29.78 million) with Salcon Jiangsu subscribing for two-thirds of the equity stake and Yizheng Rural Water a third. It noted that under the JV agreement, JSWED would undertake the integration of water and wastewater supply works in Yizheng City, production of potable water, operation of wastewater and recycled water treatment and the discharge of rainwater and wastewater.

Impact from devaluation of dong quite small for Malaysian firms

Malaysian construction companies on the stock market continued to be affected by the devaluation of the Vietnamese dong yesterday but analysts said the outlook of the economy is still attractive for investors.
“The impact from the devaluation is quite small for Malaysian companies,’’ said Pong Teng Siew, head of research at Jupiter Securities.
Vietnam devalued the dong by 5.4% against the US dollar late last week, the first time since December last year, as a means to deal with high inflation and a trade deficit. The country also raised its interest rate to 8% from 7%.
A number of construction companies, already reeling from the fallout from the Dubai debt problem, were hurt when news of Vietnam’s action broke.

Gamuda Bhd, WCT Bhd and SP Setia Bhd, which have large projects in Vietnam, took a hit but Gamuda bounced back slightly yesterday after taking a beating last week, closing up five sen to RM2.80. WCT was down eight sen to RM2.44 and SP Setia was 19 sen lower at RM3.51.
“Shakier economic fundamentals in Vietnam have a mild near-term impact on Malaysian companies’ initial investments, but could delay property launches,’’ UOBKayHian said in a note yesterday.
“A weaker dong and a potential further interest rate hike could temporarily dampen property market sentiment, but the longer-term prospects are still good, underpinned by the global economic recovery and Vietnam’s sizeable young population,’’ it said.
Analyst reports indicated that demand for property in Vietnam was still robust as checks with local steel companies showed demand for steel was increasing.

Other companies with construction and property exposure to Vietnam include Berjaya Land Bhd.
“We do not expect Vietnam to contribute significantly to both Gamuda and WCT’s earnings over the next one year or so,” AmResearch said in a note. “In any case, the dong has already depreciated by some 12% against the ringgit prior to the latest round of devaluation.’’
Analysts also do not think other Asian countries would mirror the action of Vietnam given that inflation and trade deficits are not prevalent in many of the countries.

Sin City pinning biggest ever bet, US$8.5b

Sin City is pinning its biggest bet ever - US$8.5 billion - on a 67-acre (27-hectare), six-tower complex of striking hotels, gourmet restaurants, swank shops and a single casino that starts opening Tuesday in the heart of the Las Vegas Strip.
Many watching the high-stakes roll of the dice shudder at the thought that nearly 5,900 rooms in three hotels will be awaiting guests when CityCenter's crown jewel - the 4,004-room Aria Resort & Casino - opens Dec. 16.
That will increase Las Vegas' already saturated inventory by more than 4 percent at a time when fewer visitors are coming and room prices have fallen 25 percent from last year.
CityCenter's debut might pull rates even lower, but state leaders hope the complex leads Nevada out of two years of economic misery that has hit the state with record unemployment, foreclosures and bankruptcies.

Crest Builder Holdings Bhd

Its unit has secured a RM145.3 million contract to build the superstructure of a 35-storey office tower along Jalan Ampang in Kuala Lumpur. The contract, awarded by Khor Joo Saik Sdn Bhd, is for 24 months and it is expected to be completed by Nov 11, 2011. The contract is expected to contribute positively to the earnings of the group for the financial years ending 31 December 2009 and onwards.

136 contractors keen on RM7bil LRT extension project

A total 136 companies have shown interest to participate in Syarikat Prasarana Negara Bhd’s open tender bidding for the RM7bil extension of its two light rail transit (LRT) lines project in the Klang Valley.
Group managing director Datuk Idrose Mohamed said the 136 contractors had collected pre-qualification forms from Prasarana to be submitted in a month’s time for assessment and shortlisting of candidates to bid for the project.
StarBiz had previously reported that analysts predicted UEM Builders Bhd, IJM Corp Bhd, Gamuda Bhd and Malaysian Resources Corp Bhd are likely major contractors to be involved, based on their experience in LRT projects.
Prasarana would also assess the feedback from the three-month public display for the proposed LRT line extension ending Dec 14, said Idrose.

“If everything goes well, the construction of the LRT extensions will start in the first quarter of next year,” he told reporters after the opening of the International Association of Public Transport (UITP) Asia Pacific Seminar by Second Finance Minister Datuk Seri Ahmad Husni Hanadzlah yesterday.
When completed in three years, the LRT extension is expected to double the current daily passenger volume of 170,000 for Ampang LRT and 180,000 for Kelana Jaya LRT.
On a more short-term development of Prasarana, Husni said the company would start its four-car train service in stages beginning next month.
“Four sets of the train will be delivered every quarter in 1½ years,” he said, adding that RM1bil had been invested in acquiring 35 sets of the four-car trains.
In terms of buses, he said the open tender to supply 400 new buses for Prasarana that closed recently attracted 12 bidders.
“The company is currently evaluating the bidders and the delivery of the buses will be in stages starting from the first quarter of next year,” he said.
Husni said these positive developments was in line with the Government’s national key result areas to increase public transport usage to 25% by 2012 from the current 16%.
The three-day seminar with the theme Making Public Transport of Tomorrow Happen is organised by Prasarana subsidiary, Rangkaian Pengangkutan Integrasi Deras Sdn Bhd, will see some 100 international delegates discuss issues in the public transport industry.
Prasarana chairman Tan Sri Izzuddin Dali said the seminar provides a platform for world-wide cooperation, business development and sharing of know-how of the industry.

AHMAD ZAKI RESOURCES BERHAD - LETTER OF AWARD

CADANGAN KOMPLEKS KERJA RAYA 2, JALAN SULTAN SALAHUDDIN, KUALA LUMPUR (REKA DAN BINA)
Wholly-owned subsidiary, Ahmad Zaki Sdn Bhd (“AZSB”) had on 17 November 2009 received the Letter Of Award from Jabatan Kerja Raya Malaysia, Kuala Lumpur for “Cadangan Kompleks Kerja Raya 2, Jalan Sultan Salahuddin, Kuala Lumpur (Secara Reka Dan Bina).
The Award for the Works amounted to a total value of RM 309,374,000.00. The Works is to be completed within the period of 130 weeks i.e commencing from 01 December 2009 to 28 May 2012.

Two-year review bodes well for construction, says MBAM

The push by the Government under the 10th Malaysia Plan to monitor and review the construction industry’s performance over two years, instead of the full five years under the plan, augurs well for the industry, said Master Builders Association Malaysia (MBAM) president Ng Kee Leen.
Ng said MBAM supported the approach as it would be more “current” for planning and allowed for better monitoring, thus increasing the prospects of the proposed projects being achieved.
“We observe that sometimes during a five-year plan, projects that are not completed or undertaken will be brought forward to the next national plan,” he said in a statement.
Ng said it is hoped that with a shorter timeframe, the construction industry would be able to deliver its role more efficiently, cost effectively and on time.
He said as the Government was pushing the private sector to be the engine of growth, the authorities should have a more efficient delivery system and adminstrative structure that allowed the private sector to operate in a business-friendly environment with reduced bureaucracy.

“In this respect, we are thankful for the special taskforce to facilitate business (Pemudah) for its various efforts to harness the strength of the private and public sectors to resolve construction industry issues for the benefit of the country,” he noted.
Ng said what was clearly needed in the local construction industry was speedy approvals by the various authorities to ensure project delivery.
When contacted, Ng told StarBizWeek that MBAM was encouraged by the Government’s recent announcement of having greater public-private partnership.
“This will not only promote healthy competition but also ensure a larger group of industry players will particpate in (Government) projects,” he said.
Annually, the local construction industry handles RM60bil worth of projects, of which about 50% is undertaken by the private sector while the balance 50% is by the Government, which takes on infrastructure works.
On financing, Ng said MBAM hoped local banks could consider setting higher loan quota for the construction sector to enable the industry to continue playing its role as a key economic growth driver.
“MBAM would like to actively participate in dialogues with the relevant agencies in formulating and providing input to assist the Government in instituting necessary measures and initiatives to help reduce costs and ultimately enhance efficiency and competitiveness of the construction industry,” Ng said.

Mudajaya - A Bumper Quarter

CIMB maintain BUY call with a higher target price of RM6.90 (RM6.65 previously), which remains pegged to a 30% discount to RNAV. Potential share price triggers include:
(i) this good set of results and possibly more to come,
(ii) more contract awards, and
(iii) financial closure for the balance of Phase 2 of the IPP in India.

Mudajaya earnings soar to RM107mil

An increased level of activities during the nine months ended Sept 30 led Mudajaya Group Bhd to post higher revenue and pre-tax profit of RM508.2mil and RM106.7mil compared with RM294.2mil and RM51.7mil respectively in the previous corresponding period.
In a filing with Bursa Malaysia, it said net profit for the third quarter ended Sept 30 rose to RM35.32mil from RM8.08mil a year ago, while revenue rose to RM200.10mil from RM112.47mil previously.
Earnings per share increased to 9.48 sen from 2.17 sen.

WHY SALCON?

Salcon saw a change in major shareholders in 2005 after Naga Muhibbah, under Datuk Seri Goh Eng Toon (former Ban Hin Lee CEO) acquired a majority stake from Kumpulan Emas Bhd in several off-market transactions. Since then, management has sought to clean up its business. In 2007, Salcon pared down its stake in PalmTech to 49%, a cumbersome legacy problem.

Salcon’s CEO Mr How See Hock joined the Group a few years ago after spending almost 20 years with IJM. Its Finance Director, Mr Law Woo Hock joined from Ireka Corporation.

Market Capitalisation : RM260M

Net Gearing (as at 30 June 2009) : Net Cash

NTA (as at 30 June 2009) : RM0.65

Salcon’s water projects range from construction of water treatment plants to being a holder of foreign water concessions. Previously active in the construction of domestic water treatment plants and wastewater treatment centres, the company has in recent years expanded to China, Thailand, Indonesia and Vietnam. Salcon’s water related projects encompass water and wastewater turnkey investment (design, finance and construct), turnkey contracting and water asset management (O&M, NRW Control). As of FY08, its water and wastewater related earnings accounted for 95% of revenue.

Salcon operates a total of 6 water concessions in China and 1 in Vietnam:

Ipoh airport gets RM60m facelift

The Cabinet has approved the allocation of RM60mil to extend and upgrade the underutilised Sultan Azlan Shah Airport.
The grant is to be used to extend the airport’s runway by 200m from the present 1.8km and to up­­grade the airport terminal. Work is expected to start next year.
Second Finance Minister Da­­­­­tuk Seri Ahmad Husni Hanadzlah said a government survey showed that Perak had immense potential to become a top tourist destination.
“With the extension, the government hopes more budget airlines will be attracted to use the airport,” he said yesterday after a ground-breaking ceremony for a market at the Tanah Hitam new village in Chemor near here.

RM5b worth of 9MP projects implemented in Penang

Almost RM5 billion worth of projects for Penang under the Ninth Malaysia Plan (9MP) have been implemented from the total RM7.616 billion allocated, the Dewan Rakyat was told today.

Sunrise 1Q net profit up 24% to RM37.3m

Sunrise Bhd's net profit rose 24% to RM37.3 million from RM30.2 million a year ago as earnings were sustained by progress billings for its ongoing developments.

Scomi, Geodesic to jointly bid for Bangalore monorail projects

Scomi Engineering Bhd is teaming up with Geodesic Techniques Private Ltd to bid for the construction of new monorail alignments in Bangalore.

Puncak Niaga eyes Indian water job

Puncak Niaga Holdings Bhd told the exchange yesterday that it has formed a 60:40 joint-venture company with India’s Lanco Infratech Ltd to participate in a bid for a water supply and drainage tender in India.
The project was identified as Hogenakkal water supply and fluorosis mitigation Project – Package I called by the Tamil Nadu Water Supply and Drainage Board, India.
“The joint venture is synergistic to Puncak group’s business expansion plans in India,” the company said yesterday.

Initial works on permanent LCCT to begin soon

Malaysia Airports Holdings Bhd (MAHB), which manages all the airports in Malaysia, said initial works for the permanent low-cost carrier terminal (LCCT) in Sepang will start next month.
"If everything goes well, site clearing works, like earthworks, will start next month," MAHB chairman Tan Sri Dr Aris Othman told Malaysian journalists who are in Istanbul for the official opening of the new terminal at Istanbul Sabiha Gocken International Airport yesterday.The company is also in the process of appointing consultants for the LCCT project - which is made up of more than 30 packages.These packages comprise both air and land segments. The air segment involves the extension of the runway, taxiway and apron parking, while the land segment involves the construction of the terminal, hotel, as well as the shopping area.Deputy Transport Minister Datuk Abdul Rahim Bakri, who also attended the press conference, said the tender for the construction of the new LCCT will be called as soon as the design is completed.The new LCCT is expected to be completed by September 2011. The terminal, estimated to cost RM2 billion, will be built about 2km away from KLIA.The terminal will be able to handle up to 30 million passengers a year, compared to the current capacity of about 10 million.It will also involve the construction of a RM100 million 2km express rail link (ERL) connecting KLIA to the new terminal."With more regional low-cost airlines flying to Malaysia, I believe the new terminal will provide a very good aviation infrastructure and will bring in more tourists to Malaysia," he said.

Mah Sing Q3 net profit up 42% on current projects

Mah Sing Group Bhd posted a net profit of RM23.5mil in the third quarter ended Sept 30, a 42% improvement from the previous corresponding period.
The higher profit was contributed by its current residential and commercial projects.
However, its revenue for the quarter dropped 17.5% to RM135.14mil.
In a filing with Bursa Malaysia, Mah Sing said its plastics division also contributed to the earnings apart from property development, adding that the latter contributed more than 90% to its operating profit.
“The group’s quick turnaround business model has generated healthy profit and cashflow with about RM120.4mil cash as at Sept 30,” it said.
Mah Sing managing director-cum-group chief executive Tan Sri Leong Hoy Kum said: “We believe the property market is gaining momentum for a likely up-cycle in the second half of 2010, and have planned ahead to meet the coming demand with several land acquisitions.”
The company yesterday acquired two pieces of prime land in Selayang and Petaling Jaya that could yield an estimated total gross development value of RM1.05bil.
Its wholly-owned subsidiary, Nova Century Sdn Bhd, acquired about 26 acres of freehold development land in Selayang for RM41.65mil cash.
Meanwhile, its other wholly-owned unit, Sierra Peninsular Development Sdn Bhd, acquired about 19.6 acres in Petaling Jaya for RM89mil.
Mah Sing has also announced that it proposed to undertake a share private placement and bonus issue that could potentially raise gross proceeds of RM103mil.
The private placement involves 63 million new 50 sen shares, representing about 10% of its issued and paid-up capital.
The one-for-five proposed bonus issue involves up to 151,286,435 new shares.
The private placement and bonus issue are targeted for completion by year-end and the first quarter next year respectively.

WCT agreement with Medini Land Sdn Bhd to undertake a Residential and Commercial Development known as "1Medini"

WCT Berhad ("WCT" or "the Company") wishes to announce that on 28th October 2009, WCT Land Sdn Bhd (“WCTL”), a wholly-owned subsidiary of the Company, has entered into a conditional Agreement (“Agreement”) with Medini Land Sdn Bhd (“MLSB”), a wholly-owned subsidiary of Iskandar Investment Berhad (“IIB”), to jointly undertake a residential and commercial development on a piece of 99-year leasehold land measuring 10.96 acres in area located in Medini, Iskandar Malaysia, Johor (“the Land”) which will be known as “1Medini”, through a special purpose vehicle known as One Medini Sdn Bhd (“OMSB”) with WCTL holding a 70% interest.
The Development, which is scheduled to be fully completed by 2015, will consist of 1,332 units of condominium and 68,800 square feet of commercial area for local retail businesses. Targeted to be launched in mid-2010, the Project offers owners an accessible, environmentally-friendly and sustainable property strategically located in close proximity to LEGOLAND Malaysia in Medini North, Newcastle University Medical Malaysia (NUMed) in EduCity, Kota Iskandar and the Iskandar Financial District. The Development boasts a thrilling view of Singapore on one side and LEGOLAND Malaysia on the other. It will also feature a beautiful sky garden. Construction and groundworks for 1Medini will commence in mid-2010 with the first phase of over 300 units ready by 2013. The Development is expected to yield a total Gross Development Value of RM600 million.

准备跃升中型公司 星辰建筑潜质非常优厚

在第2交易板挂牌的小型承包商星辰建筑集团有限公司（FAJAR，7047，次板建筑组）已准备就绪跃升国内中型建筑公司行列。兴业投资研究行说，专长于航空、陆路以及铁轨运输相关基建施的星辰建筑集团，是吉隆坡国际机场计划下20亿令吉永久廉价航空终站各种工程配套的强大竞逐者。这是由于它在推行廉价航空临时终站计划第1及第2阶段工程累积了极佳经验、技术专长以及技能。兴业投资研究行在报告中说：“在准确估计成本方面，我们认为星辰建筑集团将较竞逐者占优势，因此更有潜能竞标。”它给予星辰建筑集团超越大市的评级。它说，星辰建筑集团的订单全部是国内工程，因此免除在海湾国家发展计划暂停或取消的风险。此外，最近取得的主要合约大多数是“新”价格，因此订单收益率高。该投资研究行补充，截至09年3月止资产负债表有净现金8760万令吉或是每股64.5仙，证明星辰建筑集团有高度卓越的盈利潜能。“我们认为这是由于它竞标新合约时追随高度严格准则。星辰建筑集团专注于公共工程以及政府企业例如大马机场控股有限公司（AIRPORTS，5014，主板贸易服务组）的工程配套。”但是，兴业投资研究行警告说，风险包括在截至2010-2011年6月止财政年取得新合约低过每年4亿令吉指标以及成本增加。兴业投资研究行对建筑行业保持谨慎，但是星辰建筑集团是以完全稀释的2010年每股盈利14.5仙的7至8倍进行交易，它认为该公司有强大价值。该投资研究行给予星辰建筑集团的预示合理估值1.45令吉，相当于建筑行业基准的1年远期指标本益比的高端，以反映它的卓越资产负债表实力。

Can Mudajaya jumps to record?

MUDAJAYA Group Bhd, a Malaysian builder, surged to a record after CIMB Investment Bank Bhd said the company is targeting RM600 million (US$171 million) worth of orders by year-end and plans to venture into Vietnam and Saudi Arabia.
CIMB raised its target price for the stock to RM6.65 from RM3.68 and maintained its “buy” recommendation.

星辰建築

儘管星辰建築（FAJAR，7047，主板建築股）在建築領域中屬中型建築公司，惟在其首席執行員兼董事經理拿督劉景國的領導下，該公司持續接獲規模不小的工程合約，進而讓該公司在過去數個財政年都保持不錯的業績表現。

Fajarbaru Builder Group Bhd

Fajarbaru Builder Group Bhd (Fajar) is a home-grown contractor that has carved a niche in landing medium-sized government contracts of less than RM500mil in value.

1) Order book stands at RM550m to be completed in FY11. In their books include the RM108mil Low Cost Carrier Terminal (LCCT) in Sepang, LCCT Extension works (RM164mil) and Seremban-Gemas Double Tracking subcivil/ earthworks package (RM316mil). Some of the ongoing projects are Electrified Double Track Railway, LCCT expansion, and Tampin Hospital and KTM staff quarters at Batu Gajah. Fajarbaru is eyeing for at least RM1b contracts from LCCT and other government related projects . Currently bidding for some of the works for the new LCCT in KLIA which the Group is eyeing for at least RM500m worth of contracts.

2) Fajar stands out as a small-mid cap construction player with a carved out expertise in interesting sub-sectors. It stands a good chance of participating in the new LCCT given its airport related experience. The other expertise in with the double tracking / earthworks electrified rail projects. Both are nuanced and make the company's resume more solid for similar jobs in the near future.

3) The company is on track for a 3-year earnings CAGR of 23. One of the better managed and cash rich construction company (that is a new thing to hear about a construction firm) with a net cash balance of RM0.62. That's 50% of the share price in cash.

4) Owing to its track record and expertise, Fajar has its noses in front to snatch upcoming airport jobs such as the new LCCT (RM2bn) and Penang Airport upgrade (RM250m). To repeat, in recent years, Fajarbaru has acquired much airport related experience, having worked on jobs at the KLIA, temporary LCCT and Penang Airport. The new LCCT contract will be broken up into 20 packages. Management expects prequalification tenders to be called within the next month and some packages could be awarded by early 2010.

5) This is the key factor for me on why I like Fajar, its the management. Fajarbaru is led by Dato Low, best known as the last Managing Director of Road Builder Holdings before it was acquired. Always bet on a proven winner and Low has the capability to steer Fajarbaru to greater heights given his 3 decades of experience.

Zecon Berhad

Award of Contract: Cadangan Merekabentuk, Membina, Menyiapkan, Melengkapkan, Mentauliahkan dan Menyelenggarakan Bangunan Fakulti Perubatan dan Sains Kesihatan (FPSK) dan Institut Kesihatan dan Perubatan Komuniti (IKPK) di Universiti Malaysia Sarawak (UNIMAS), Kota Samarahan, Sarawak.
The Board of Directors of ZECON is pleased to announce that the Company had today, received a letter dated 08 October 2009,from Universiti Malaysia Sarawak ("UNIMAS"), informing that UNIMAS has accepted the Company's offer for Cadangan Merekabentuk, Membina, Menyiapkan, Melengkapkan, Mentauliahkan dan Menyelenggarakan Bangunan Fakulti Perubatan dan Sains Kesihatan (FPSK) dan Institut Kesihatan dan Perubatan Komuniti (IKPK) di Universiti Malaysia Sarawak (UNIMAS), Kota Samarahan, Sarawak ("the Project") for a sum of RM182,000,000.00. The duration for the Project is 30 months from the date of possession of the site which has been scheduled on 26 October 2009. The defects liability period for this Project is 24 months.

Bina Puri Holdings Bhd

Proposed 24 units (3 blocks) of 2-3 storey shop offices on part of Lot 3 (CL 015585225) Alamesra, Kuala Menggatal, Kota Kinabalu, Sabah
We would like to inform that Bina Puri Construction Sdn. Bhd., a wholly owned subsidiary of Bina Puri Holdings Bhd. has accepted the letter of award on 2 October 2009 from Arkitek Billings Leong & Tan Sdn. Bhd. for the construction of 24 units (3 blocks) of 2-3 storey shop offices on part of Lot 3 (CL 015585225) Alamesra, Kuala Menggatal, Kota Kinabalu, Sabah for contract sum of RM10.995 million only. The project is expected to be completed within 15 months. With the award, the Group’s current book order stands at RM2.38 billion. The Group has managed to secure new projects of up to RM1.34 billion so far in 2009 and is continuously bidding for new projects, both locally and overseas. The contract is expected to contribute positively to the earnings of Bina Puri Group for the financial year ending 31 December 2009.

10th Malaysia Plan will be based on new economic model

The 10th Malaysia Plan (10MP) will be based on a new economic model to ensure that all efforts towards economic recovery in the country run smoothly.
Minister in the Prime Minister's Department Tan Sri Nor Mohamed Yakcop said that although 10MP will take effect only in 2011, the government has started early planning on the five-year economic programme to ensure sustainable development.
The Tasek Gelugor MP said that among the areas of focus under the new model will be to create many more industries to generate higher income for the people and help them face future economic challenges as well.
Speaking to reporters following a meeting with the people from his parliamentary constituency, he said that besides aiming for high income, attention would be also paid to lowering production costs.
"The government has already started drafting the 10MP and has the Cabinet's approval so that it can be implemented earlier, and when the world economy makes a recovery, we would be at the right platform for recovery," he said.
Nor Mohamed said that among the sectors identified to drive the new economy were knowledge, skills and creativity based industries including tourism.
However, traditional industries such as manufacturing will be continued with new impetus through knowledge-based industries so that they are able to generate higher income.
"We see this current economic downturn as a ‘blessing’ to push the country towards a new economic direction capable of more progress and that all the stimulus packages given by the government so far have started to show results," he said.
Although there has been a contraction in economic growth, the plan to liberalise the 27 economic sectors including the financial sector has started to take effect, he said, adding that he was confident that the country's economy will start to recover in the second part of the year.
"The negative growth projection will not jeopardise the plans of the 9MP as each programme has already been given the special allocation," he said.
Nevertheless, Nor Mohamed said, in order to make a success of a modern economy, the people, especially those retrenched, should take up the training opportunities provided by the government.
Increasing the level of skills and knowledge of the new economy will be crucial for workers so that they can compete and generate higher income as well, he said.
"Although we know the response towards the retraining schemes and programmes for workers has not been as good, the people must realise that new skills are required to face the challenges of the new economy.
"A crisis is not always a bad thing as it also gives us the opportunity and space to reassess the existing strategies to continue to progress in line with current changes," he said. — Bernama