LCL CORPORATION BHD, whose fortunes have been battered following its over exposure to the Dubai property market, has identified US-based KHS&S as a potential investor to regularise its financial condition.LCL, an interior out-fit company, said KHS&S is one of the leading theme contractors in the US and has built major theme parks in the world. They include Disney Land, Disney World, Universal Studio, Red Rock Casino, Sea World and the Las Vegas MGM Casino. "LCL will discuss, deliberate and outline the regularisation plan with the representatives from KHS&S on the details of LCL’s regularisation plan. LCL will make the necessary announcements to Bursa Securities accordingly in due course," it said on Friday, Jan 29. It said KHS&S has expanded to the Middle East, China and Eastern Asia. It has 11 major offices in the USA and its regional offices include Macau, Hong Kong, Kuala Lumpur, Bangkok and Singapore. KHS&S had completed over 3,000 projects worldwide and their profile can be found at www.khss.comMeanwhile, LCL also said its subsidiary, Authentique Gallery (M) Sdn Bhd, had on Jan 29 received notices of demand from Messrs Iza Ng Yeoh & Kit on behalf of PUBLIC BANK BHD for arrears amounting to RM1 million.LCL's subsidiary LCL Furniture Sdn Bhd is also in arrears amounting to RM114.58 million owing to Affin Bank Bhd, Bank Islam Malaysia Bhd, The Royal Bank of Scotland Bhd and AmBank (M) Bhd.
Sunday, January 31, 2010
Jetson, China company in JV for construction project bid
Gadang’s 2Q net up 88% to RM3.5m
CIMB Research positive on construction, building materials
CIMB Equities Research expects CONSTRUCTION sector growth and fundamentals for the building materials sector to stay positive in 2010 and beyond.
It said on Thursday, Jan 28 the growth should be sustainable given the implementation of larger government and private sector jobs this year, and increased construction on the property side.
The tabling of the 10th Malaysia Plan (10MP) in June 2010 should provide more visibility on infrastructure and construction spending beyond 2010.
CIMB Research said although the outlook for building materials appears positive, we continue to rate the building materials sector a NEUTRAL, it believed the earlier positive newsflow on stimulus packages and the potential pick-up in construction activities have already been priced in.
The pricing in has been for the biggest player in its coverage, Lafarge Malayan Cement. Ann Joo remains its top pick in the building materials sector.
“However, for exposure to pump-priming, we prefer direct exposure to the contractors,” it said.
CIMB Research said demand for Ann Joo’s products will pick up and possibly even gain momentum in 2H. Its target price remains at RM3.55, still pegged to 12.8 times P/E, a 15% discount to our target market P/E of 15 times.
It is Neutral on Lafarge as the share price has already priced in the positive newsflow on construction activities and stimulus packages. It retains its target price of RM6.96, which it will continue to base on a blend of its target market P/E of 15 times and a P/BV of 1.1 times.
“We maintain our Outperform rating (Tasek Corporation) in view of the potential strong pick-up in construction activities in 2010. With a cash hoard of RM332 million as at September 2009, it is in an excellent position to capitalise on M&A opportunities in the region.
“Our target price remains at RM5, still based on a blend of 12 times P/E and 0.8 times P/BV. These target valuations are a discount to Lafarge’s 15 times target P/E and 1.1 P/BV. Potential re-rating catalysts include stronger demand from pump-priming which could boost sales and selling prices,” it said.
Sunrise-Sime JV makes good business sense
Gadang to buy Sg Besi land for RM33m
Tuesday, January 26, 2010
Sime Darby, Sunrise to develop RM1b project
Sime Darby Property Bhd (Sime Property) is partnering Sunrise Bhd to develop a RM1 billion integrated commercial project in the Bukit Jelutong township in Selangor next year.It is the first tie-up between Sime Property and Sunrise. Sime Property is known for its landed properties, while Sunrise is well known for its high-end projects in Mont'Kiara, Kuala Lumpur.The deal means that both companies can take advantage of each other's strengths, Sime Property managing director Datuk Tunku Putra Badlishah Tunku Annuar said."We are always looking at ways to accelerate the land development with reputable and like-minded developers like Sunrise. This partnership will further enhance the value of properties at the township," he said after signing the joint-venture agreement in Bukit Jelutong, Shah Alam, yesterday. Sime Property has 14,800ha in Greater Klang Valley.
The two firms will have equal stakes in the joint-venture company, Baywood Avenue Sdn Bhd. They plan to build retail, shop-offices, office-suites and serviced apartments on some 8.4ha.The project, located opposite Sime Darby Pavilion, will be developed in five phases over seven years, beginning next year.The joint venture will buy the land from a subsidiary of Sime Property for RM118.1 million, or RM125 per sq ft.Sunrise executive chairman Datuk Tong Kooi Ong said the vision is to develop sustainable, or green, properties that will appreciate in value.Sime Property and Sunrise may even do more projects together."We have completed the first part of the marriage today. This means, going forward, things will be easier for us as we have already built a base here. If the project goes well and the chemistry is there, the joint venture could be extended," Tunku Putra Badlishah said.It is learnt that Sunrise may want to partner Sime Property to develop pockets of land along the Guthrie Corridor Expressway.Tunku Putra Badlishah also said that the project will be the first of many joint ventures Sime Property will be forming with reputable developers. It is already in talks with several other developers and may ink a second deal soon.
Friday, January 22, 2010
HOCK SENG LEE BERHAD
SAPURACREST PETROLEUM BERHAD
Thursday, January 21, 2010
Fajarbaru eyeing Klang Valley land for property venture
Its managing director and CEO Datuk Low Keng Kok said these were part of a two-pronged strategy the company had in place after the completion of its capital-raising exercise through a private placement at the end of last year.
“We are now in talks with several parties for land within the Klang Valley for housing project development, as the area is still the magnet for natural migration that will create demand for housing,” he told The Edge Financial Daily.
At the moment, the group has an 80ha land in Port Dickson, Negri Sembilan. While work has yet to commence, Fajarbaru plans to use the land for medium- to high-end property development.
Fajarbaru in October last year announced the completion of its private placement exercise with the listing of 14.1 million new shares that were issued at RM1.13 each.
With the completion of the private placement exercise, Fajarbaru has a total of 164.34 million
shares outstanding, while free float stands at 52.72% or 86.64 million shares, according to Bloomberg data.
In terms of construction jobs, Low said the group had submitted bids for the RM2 billion new low-cost carrier terminal (LCCT) near the Kuala Lumpur International Airport. Fajarbaru’s order book balance stood at RM505 million as at end-March 2009.
The group has vast airport-related experience, having previously been awarded a RM124 million contract for the expansion of the current LCCT in Sepang in 2008. The contract was a follow-up job from its previous RM108 million contact for the LCCT in May 2005, which was the group’s first major project.
Since then, Fajarbaru has secured at least two key construction contracts worth a total of RM440 million in the financial year ended June 30, 2008 (FY08), including a RM316 million subcontract for the Seremban-Gemas electrified double-tracking project from India’s Ircon International, the main contractor for the southern stretch.
For FY09, Fajarbaru recorded a net profit of RM18.12 million, up 32.7% from 13.65 million in the previous year, while revenue rose 110.7% to RM184.6 million from RM87.61 million.
Friday, January 15, 2010
PJI HOLDINGS BERHAD
Naim Holdings Berhad
LETTER OF AWARD FOR 275KV OVERHEAD TRANSMISSION LINE FOR BAKUN-SIMILAJAU TRANSMISSION SYSTEM
Tuesday, January 12, 2010
Gadang Eng JV gets RM291m LCCT job
In a filing to Bursa Malaysia yesterday, Gadang said the scope of works under the contract comprised site preparation, earthworks and main drainage for Runway 3 and its associated taxiways which were expected to be completed on Dec 18.
“The contract is awarded to Gadang-BJQ joint venture, an unincorporated joint venture comprising GESB and BJQ in the proportion of 70:30 respectively,” it said.
Gadang said the contract was expected to have a positive impact on the earnings and net assets of the group for the financial years ending May 31, 2010 and 2011.
Thursday, January 7, 2010
Ho Hup shares plunge the most in two years
The stock closed 36%, or 72 sen, lower to RM1.27, wiping out more than RM73mil in its market capitalisation. Around 5 million shares changed hands.
Its price had tripled in the past five days.
While the company has said that it was not aware of the reason behind the surge in its share price, analysts said the fall in price was fuelled by investors who were cautious on the company’s fundamentals due to the ensuing tussle between shareholders.
StarBiz reported yesterday that the board of directors of Ho Hup would fix a meeting to discuss the intention of Low Chee & Sons Sdn Bhd and Choo Soo Har to call a special meeting for the removal of the current board and appointment of a new one.
Low Chee & Sons and Choo are substantial shareholders in the company.
They had earlier announced to Bursa Malaysia their intention to call for an EGM on Feb 4 for the removal of seven members of the board and appointment of six others.
Ho Hup group managing director Lim Ching Choy had told StarBiz that he was unsure about the motive for the removal of the members of the board, which included himself and deputy executive chairman Datuk Vincent Lye Ek Seang, also a major shareholder.
“We’re going to have a board meeting to discuss the matter but we haven’t fixed the date yet,” he had said.
This development follows the ongoing tussle at Ho Hup, where Datuk Low Tuck Choy, one of three owners of Low Chee & Sons, had opposed the sale of two parcels of land held by Ho Hup and approved by the board headed by Lye on the basis that these were being sold at below market rates.
Meanwhile, in a statement to the stock exchange yesterday, Ho Hup said it had instructed its solicitors to commence legal proceedings against Low Chee & Sons and Datuk Low for defaming the company through the media.
The solicitors filed the writ indorsed with a statement of claim yesterday, the company said.
In another statement, Ho Hup said it received yesterday documents from Low Chee & Sons and Choo pertaining to the proposed Feb 4 EGM.