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