Corporate News: Toll freeze won’t affect highway operators

By M Shanmugam and Siow Chen Ming

The Malaysian Highway Authority(MHA) has asked all highway operators to state the price of their concessions in the event the government decides to take them back, sources say.
The have been told to come up with an indicative value of their concessions as soon as possible. "Based on the brief contents of the letter from the MHA early last week, it is difficult to ascertain if the government is serious in wanting to take back the concessions. It could merely be a survey to ascertain what it would cost to take back the highways," says a source.
It is learnt that the highway operators have reverted to MHA with "high numbers" on the value of their concessions. There are 26 highway concessionaires, the biggest of which is PLUS Expressways Bhd. Plus operates about 85% of the country's highways, including the North-South Expressway, Central Link Expressway(Elite)that connects Subang Jaya to KLIA and Nilai, the Penang Bridge and the North Klang Valley Expressway(NKVE).
The other major listed players are Lingkaran Trans Kota Holdings Bhd(LItrak) and MTD InfraPerdana Bhd. Litrak's highways are mainly concentrated in the Klang valley while that of MTD Infra's run from Kuala Lumpur to the East Coast. THe latter is also building the second phase of the East Coast Expressway that will take it from Pahang to Terengganu.
The concessionaires have come under scrutiny of late following calls by various quarters to review toll hikes.
All concessionaires have a schedule of toll hikes. If they are not allowed to raise their rates, the government has to compensate them for loss of revenue.
Works Minister Datuk Seri S Samy Vellu was reported recently as saying that it would cost the government RM100 billion to take back all the concessions. Sceptics, however, contend that the cost will be much lower. The market capitalisation of PLUS, for example, is only RM16.6 billion, based on its closing price last week, they say.
“PLUS controls some 85% of the highways in the country. The other highways would probably cost a few billion. Excluding debts, the cost of all the highways would be less than RM40 billion, based on market prices,” says a source.
If the concessionaires’ debts were included, however, the cost would rise substantially. PLUS alone has debts of RM6.9 billion.
But observers argue that the government can re-finance the debts at a much lower cost should it opt to take over the highways.
It is unlikely though, that the concessionaires will value the highways based on the market price of their shares. The favoured valuation method for concessions is discounted cash flow.


Toll freeze
An indication of the base value or lowest possible value of the concessions can also be obtained from the operators’ balance sheets. For instance, based on PLUS’ latest annual report, the value of its concessions is stated as RM8.74 billion.
For MTD Infra, the value of its “concession and heavy repairs”, according to its annual report, is RM1.5 billion, which is higher than its market capitalisation of RM1.2 billion.
Last week, the government imposed a two-year freeze on toll hikes. However, this will not have an impact on most of the toll concessionaires because their scheduled toll hikes do not fall in 2005 and 2006.
“The government’s recent decision to freeze toll-rate hikes for the rest of this year and 2006 is not expected to have any impact on the credit profiles of the toll-road concessionaires rated by Rating Agency Malaysia Bhd [RAM]. None of the 10 toll road concessionaires currently rated by us have any scheduled rate increases due within this period,” says RAM.
The 10 toll concessionaires rated by RAM include PLUS, Penang Bridge Sdn Bhd, Besraya (M) Sdn Bhd, Elite, Grand Saga Sdn Bhd, Kesas Sdn Bhd, Litrak, New Pantai Expressway Sdn Bhd (NPE), Konsortium Lebuhraya Butterworth-Kulim Sdn Bhd and Sistem Lingkaran Lebuhraya Kajang Sdn Bhd (SILK).
While Penang Bridge had proposed a toll hike in August in lieu of its scheduled toll hike in 2003 that was rejected by the government, RAM said the move to freeze toll increases would not affect its credit rating. This is because the government has been paying compensation, amounting to some RM19 million a year, to Penang Bridge after it denied the toll rate hike two years ago.
Other toll operators not rated by RAM, such as MTD Prime Sdn Bhd and Sistem Penyuraian KL Barat Sdn Bhd (Sprint), are also not scheduled to raise toll rates in 2005 and 2006.

Will this spark acquisitions?
MHA’s move to determine the value of the concessions will certainly give rise to speculation of possible acquisitions involving highway operators.
While the profitable operators will seek a higher value for their concessions, the non-profitable ones will look at it as an opportunity to exit the business.
Only the older toll roads that have mature traffic flow are operationally viable. Most of the new highways are not viable as they have not achieved the expected traffic numbers, among them Sunway Infrastructure Bhd’s SILK. The company is looking to restructure SILK’s bonds amounting to RM580 million.
Other new highways that aren’t exactly meeting traffic numbers are the NPE, SPRINT and the stretch from Karak to Kuantan under MTD Infra. However, the shortfall along these highways is said to be not as far off traffic flow forecasts when compared with SILK.
Even on the North-South Expressway, observers point out that the most lucrative stretch is from Ipoh to Melaka. “The other stretches do not really have enough traffic flow to sustain the cost of maintaining those portions, for instance, in the northern region,” says an observer. While the concessionaires, on the face of it, are making money from the highways, the bulk of the profits go towards loan repayment.
Morever, returns from operating the highways are not that attractive most of the time, says an observer.

STOCK - MTDINFR

Stock : MTDINFR (9768)
Full Name : MTD Infraperdana Bhd
EPS (cents) : 2.71 (2006); 3.28 (2005)
NTA (RM) : 0.74
Price (RM) : 1.12
Div (RM): 0.02 (2006); 0.02 (2005)
PE : 41 (2006)
DY : 1.8%
Recommend : BUY


Looking at the price movement of LITRAK (6645) from RM2.9x to RM3.6x, apparently market has started to price in the effect of the toll hike that took place since 1st January 2007. However, there is another counter which is also the “beneficiary” seems being ignored by the market. Its share price has hardly moved even though our KLCI has broken its historically height – it is MTD Infraperdana (9768). I hold MTD Infraperdana and strongly believe there is much upside in this counter due to the following reasons:
Toll concessionaire for KL-Karak Highway, East Coast Expressway 1, East-West Link Expressway and KL-Seremban Expressway.
Increasing new residential areas in Cheras, potential 9MP projects in east coast and Visit Malaysia Year 2007. East-West Link Expressway is one of the most heavily used road toll in KL, providing the direct link between Cheras and PJ (Federal Highway). 9MP projects in east coast will contribute higher traffic volume in ECE1. The company will also benefit from the VMY2007, as more tourists will go to Genting Highlands using KL-Karak highway.
Capital repayment of RM0.35. Based on the previous capital repayment experience, I will expect the RM0.35 capital repayment date to be formally announced in two month’s time.
Heavy repair work expected to end by 2H of 2007. This will free up additional cash flow for future cash distribution.
High borrowing? Not a major concern. Though the latest MTN issued in March 2007 balloons the company’s borrowing to RM1.2b, the operating cash flow of approximately RM100m per year is more than sufficient to cover (the concessionaire still has more than 20 years to go).
MTD Capital needs capital to fund overseas projects, especially in those riskier countries such as Indonesia. Most bankers reluctant to give out loans on risky projects. One of the alternatives that MTD Capital can source capital will be having its subsidiary MTD Infraperdana to distribute cash. As a minority shareholder, we can benefit indirectly (refer to BJTOTO’s case).

The DY may looks low now, but as mentioned the management is capable to declare higher dividend due to the toll hike and upon the completion of heavy repair work. Since the downside is limited, I would recommend MTDINFRA a BUY at RM1.11

批发商不满稻米局无书面通知 白米悄悄起价

批发商不满稻米局无书面通知　白米悄悄起价
2007-7-5 0:14:53（吉隆坡4日讯）白米起价！国家稻米局（BERNAS）已向国内米商发出通知，各类型的白米将在7月1日全面调涨。据悉有关的涨幅介于5％至8％，同时一些批发商对国家稻米局（BERNAS）在没有发出“白纸黑字”的情况下，擅自调高价格深感无奈！

连兴泉：涨幅5％至8％

马来西亚杂货商联合会会长连兴泉表示，虽然政府并没有作出宣布，不过白米价格却“静悄悄”的在7月1日开始调整价格。

他指出，国家稻米局已经向国内米商发出通知，各类型的白米将在7月1日全面调涨。据悉有关的涨幅介于5％至8％，

他披露，虽然国家稻米局声称，本地白米并没有在这次的涨价风潮中受影响，不过这只是自欺欺人的说法，然而不只是入口白米，就连本地白米也已经涨价。

他认为，由于国内的白米已经被国家稻米局垄断，所以商家根本无法作出任何的“反抗”，只能继续面对涨价的风潮。

“在白米涨价的课题上，我们也是无可奈何！”，他这么说。

除了白米以外，他说，糯米也面对涨价的问题，而涨幅是每公斤2仙。

询及，白米涨价将会对消费者造成怎样的影响，连兴泉自我调侃说：“在百物腾涨的现今，消费者对于白米的涨价也已经感到麻木！”

连兴泉是在接受本报电访时发表针对白米涨价的课题谈话。

据悉，从本月1日开始，白米再次涨价，涨幅介于5％至8％，这也是继4月份后，我国的白米再次调整价格。保守估计，5公斤装的白米，将上涨50仙至1令吉，而10公斤装的白米，则上涨1令吉至2令吉。

根据国家稻米局的消息，由于入口白米的价格不断地攀升，所以白米的价格被逼再次作出调整。不过这次的价格调整并没有涉及本地白米。

稻米局擅自调高米价

消息指出，国家稻米局（BERNAS）是在没有发出“白纸黑字”的情况下，就擅自调高白米的价格，让批发商深感无奈！

本报今日致电国家稻米局，以了解白米在本月1日开始调整价格的问题，不过却没有任何的官员针对这项课题作出回应。

米粮批发商公会未接通知信

大马米粮批发商公会的代表向本报披露，部份的会员已经作出投诉，指国家稻米局在没有发出通知信的情况下，就调高米价，让人感到措手不及。

此外，尽管会员已经获知白米涨价一事，不过公会本身还没有收到来自稻米局的通知信，这确实不寻常。

吴子联不愿置评

另一方面，本报在致电大马米粮批发商公会会长吴子联了解白米涨价的进展时，他则以开会为由，而拒绝对白米涨价一事发表谈话。

何襄赞：未接获消息

此外贸消部政务次长拿督何襄赞在接受本报电访时也提到，他对于米价价格开始在本月进行调整一事没有接获消息，所以不能发表任何的谈话。

他说：“过去数天我都留在国会，所以对于白米涨价一事不是很了解。”

他将会尽快向部门了解白米涨价一事。

bernas nayang

更新: April 19, 2007 23:17

宏德增持股權
國家稻米開高走低
（吉隆坡19日訊）港商宏德（Wang Tak）增持國家稻米（BERNAS，6866，主板貿易）股權，激勵后者股價今日一度揚升。

國家稻米以微揚1仙迎市，報2.03令吉，惟后勁不足，作價盤中窄幅滑落。

休市時，該股暫以2.01令吉掛休，微跌1仙，半日成交量32萬200股。

午盤期間，國家稻米表現平平，全日作價徘徊在2令吉及2.03令吉之間。

持股17.45%

閉市時，該股同報2.01令吉，成交量72萬3500股。

據《商業時報》報導，相信宏德被大馬米商控制，繼續增持國家稻米股權。

另外，報導還說，大股東丹斯里賽莫達或私有化國家稻米。

該報曾在去年12月份報導說，賽莫達私有化計劃已近完成階段，惟賽莫達稍后作出澄清，並否認報導屬實。

宏德自去年開始大量買進國家稻米股權，並在12月份，持有股權高達12%。

根據馬證交所本月報備文件，宏德增持國家稻米股權至17.45%，去年同期的持股權僅達7.15%。

雖然賽莫達沒有出現在股東名單內，惟相信他是透過Budaya Generasi有限公司，持有國家稻米30.79%股權，成為最大的股東。

另外，他也透過Serba Etika有限公司，持有國家稻米6.46%股權。

bernas

WE hear often enough about how business is not all about the pursuit of profit. How many times have we been told that it's not only the owners who feel the impact of a business decision? That's why people increasingly prefer the term “stakeholders” to “shareholders”.

Perhaps nowhere is this need to temper earnings enhancement with broader responsibilities more acutely felt than at an enterprise that was once a government unit.

While retaining its social obligations, a privatised business is expected to be commercially successful. And when the company is listed, this duality deepens because so much is subject to scrutiny. How does the company protect and fatten its bottom line without creating widespread resentment?

That's a question that the management of Padiberas Nasional Bhd (Bernas) must surely grapple with all the time. The recent brouhaha over its decision to increase the price of rice – the Government subsequently stepped in to reverse the move – underscores the point that Bernas is not like most other listed companies.

Following the privatisation of Lembaga Padi dan Beras Negara in January 1996, Bernas took over the former's role as the custodian of Malaysian paddy and rice industry.

In its annual reports and on its website, Bernas clearly outlines its double identities when it describes its principal activities. On the commercial front, it is basically a rice importer (the only licensed one in Malaysia) and distributor.

At the same time, as part of its privatisation agreement with the Government, the company must “ensure the maintenance of the sufficient supply of rice at reasonably fair and stable prices”.

It does this by maintaining the national rice stockpile, distributing subsidies to paddy farmers on behalf of the Government, managing the Bumiputra Rice Miller Scheme and acting as a buyer of last resort of paddy at the guaranteed minimum price.

In addition, there's a political dimension to Bernas' social duties because the country's granaries are in the Malay heartlands.

All this means that the company's business operations affect a security crop and a staple food. There are national interests at stake. Any attempt to raise its selling prices may potentially lead to a nationwide uproar because such a step affects practically everybody in Malaysia.

And so it did when Bernas announced the hike from July 1.

In the opening sentence of his letter to shareholders in the annual report 2006, Bernas chairman Datuk Syed Abdul Jabbar Syed Hassan referred to “the challenging business environment of escalating fuel prices, rising cost of paddy production and increasing international prices of rice”.

Based on news reports, the price increase took the Government by surprise. Agriculture and Agro-Based Industry Minister Tan Sri Muhyiddin Yassin said under the privatisation agreement, Bernas was obliged to consult the Government before the prices could be raised.

It is understood that Bernas had raised prices before this. The difference this time around was apparently that it was done without the authorities' approval.

If this is so, it is a highly unusual occurrence. It is hard to imagine something like this happening at another listed privatised company such as Tenaga Nasional Bhd (TNB), Telekom Malaysia Bhd (TM) and Malaysia Airports Holdings Bhd (MAHB).

For example, despite agonising cost pressures, TNB had to wait for years before the Government agreed to a tariff hike.

Electricity and rice are vastly different, of course, but there's no doubt that the delicate social-commercial equilibrium applies for Bernas as much as it does for TNB. One thing that sets apart Bernas from the other listed privatised businesses is its shareholding structure.

TNB, TM and MAHB have Khazanah Nasional Bhd as a substantial shareholder. Khazanah is also a key shareholder for other listed companies whose businesses are arguably entwined with national interest. These include MAS, Proton Holdings Bhd and UEM World Bhd.

There are a number other Government-linked organisations, such as Petronas, Permodalan Nasional Bhd, the Employees' Provident Fund and Lembaga Tabung Haji, that have big stakes in companies that to some extent, have an influence over business and life in Malaysia.

The argument here is that the presence of these organisation as major shareholders and in the boardrooms helps ensure that the companies are run in line with national interests.

On the other hand, the three top shareholders of Bernas are Budaya Generasi (M) Sdn Bhd (30.79%), Wang Tak Co Ltd (17.58%) and Serba Etika Sdn Bhd (6.46%). Budaya Generasi is linked to tycoon Tan Sri Syed Mokhtar Albukhary, while Wing Tak is a wholly-owned subsidiary of the Hong Kong-listed Lee Hing Development Ltd.

Lee Hing's two longest-serving directors are corporate figures in Malaysia – chairman and managing director Tan Boon Seng and non-executive director Ang Guan Seng. Tan is executive director of IGB Corp Bhd, while Ang is managing director of Petaling Garden Bhd.

Not that there's zero Government involvement in Bernas. Through Minister of Finance (Inc), the Government holds a special rights redeemable preference share in Bernas. As the name suggests, this golden share allows the Government to exercise veto powers in certain situation so as to protect public interests.

MOF (Inc) is represented on the Bernas board by Datuk Dr Zulkifli Idris, the secretary general of the Agriculture and Agro-Based Industry Ministry, and Azman Umar, a senior Finance Ministry officer. Each of them has an alternate director.

Given that the Government had not been informed earlier, it looks like the entire board of directors had not been party to the latest decision by Bernas to raise the price of rice.

Bernas may well have strong grounds for the price hike. However, the controversy has not done any good to its goodwill and can be a hindrance to future bids to increase prices. Consumer and investor confidence is fragile. Much can be learnt from the experience of the Khazanah-controlled listed companies.

www.biznewsdb.com

比亚迪电子（0285.HK）

由比亚迪（1211.HK）分拆而来的比亚迪电子（0285.HK）已于上周五启动路演。

　　消息人士透露，主要从事手机零部件及模块业务的比亚迪电子计划以每股10.75港元～14港元发行5.5亿股，其中2.2亿股为旧股，IPO集资额约为59.13亿～77亿港元。公司将于本周五公开招股，股份股份预期12月20日上市，保荐人为瑞银。

　　有报道称，比亚迪电子此次发行价区间已经较早前下调了15%，原因是近期市况较为波动。据悉，比亚迪电子原先招股区间相当于2008年预测市盈率17倍～20倍，最新招股价则相当于2008年预测市盈率13.6倍～14.7倍。

　　据初步招股文件披露，比亚迪电子预测今年净利润将不少于10.9亿元，较去年同期的7.31亿元增长49%。今年上半年净利润为4.46亿元，同比大幅增长1.46倍。保荐人报告预测，该公司明年盈利将进一步上升至16.6亿元，估计来自诺基亚收入将会继续增加，同时该公司亦会加强与其它手机商的合作，例如摩托罗拉和三星等。比亚迪电子去年及今年上半年最大客户是诺基亚，占收入比例分别为53.5%及76.4%。

　　比亚迪电子计划上市集资最多77亿港元，其中约35%用作扩充手机部件及模块业务；约30%用作扩充生产塑料金属零部件所用模具的设计及制造产能，约15%用于扩充金属零部件设计及制造产能。
(责任编辑：吴妍丽)

apli scandal

General Announcement
Reference No CCS-071031-3783B
Company Name : APL INDUSTRIES BERHAD
Stock Name : APLI
Date Announced : 31/10/2007



Type : Announcement
Subject : APLI INDUSTRIES BERHAD (“APLI” OR “THE COMPANY”))
- Net Profit Variance in Audited and Unaudited Accounts

Contents :

-

Announcement Details :

Net Profit Variance in Audited and Unaudited Accounts


Based on the audited financial statements of APLI Group for the financial year ended 30 June 2007, the Net Loss After Tax amounting to RM 21.1 million, which is higher than the unaudited result (i.e. RM 4.5 million) for the same period. Details are as follows:
Unaudited Audited Variance
RM’000 RM’000 RM’000
Loss before taxation (3,451) (17,571) (14,120)
Taxation (1,068) (3,520) (2,452)
Loss after taxation (4,519) (21,091) (16,572)

The difference arose from the audit adjustments made, mainly attributed to the following:

1. Accounting treatment for land lease rental fees payable in respect of the unoccupied plot.

The Company had purchased a large plot of land for its Vietnam plant but large portion of the total land area is currently unoccupied. In this respect, the land lease rental fees payable was charged off based on the occupied land area while the remaining plot was capitalised as “pre-operating expenses”, amounting to USD 111,660 (RM 385,227).

However, according to the Vietnamese accounting standards, such item should instead be expensed off regardless of whether the land area has been occupied or not. Therefore, an additional amount of USD 111,660 (RM 385,227) has to be charged out as expenses (land lease rental). Total land lease rental charged out for FY06/07 is now RM 854,427 instead of RM 469,200.

2. Classification of certain machineries and equipment installed at Vietnam plant resulting in depreciation not charged.

Machineries and equipment purchased by the company’s Vietnam plant were not reclassified from “Construction in Progress” to “Fixed Assets” since they were commissioned. These items, once classified as “Fixed Assets” will be subject to annual depreciation charge. The Auditors had highlighted that the depreciation charge for these items was not recognised for 2 financial years. Therefore, an additional depreciation charge of USD 233,067 (RM 804,080) will be charged out during the audit year.

3. Damaged machinery parts not written-off.

The Company’s Vietnam plant is housing a number of damaged formers (being part of the machinery). Previously, it was anticipated that these formers could be disposed off as scrap and thus there was no decision to write-off.

However, the Auditors are of the opinion that these formers are not in recyclable condition and could not be easily disposed of. As such, these formers had to be written-off amounting to USD 143,474 (RM 494,985).

4. Computation of deferred tax asset and deferred tax liability.

(a) Based on the profits reported in Asia Pacific Latex Sdn Bhd’s unaudited financial results, a deferred tax asset was recognised amounting to RM 275,400. However, the audited financial statements revealed that the company recorded losses instead of profits as per unaudited results and thus such deferred tax asset has to be reversed accordingly.

(b) The Auditors’ computation of the deferred tax liability differs from the Management’s computation. Such difference resulted in under provision of deferred tax liabilities amounting to RM 343,266.

5. Accounting treatment on settlement of corporate tax underpaid.

IRB had carried out a tax investigation on APL Products Sdn Bhd’s tax affairs, for the year assessment 2001 to 2004. The outcome of the investigation revealed that the total tax underpaid amounted to RM 2,470,000 (including the tax penalty). Under initial understanding, this amount was supposed to be settled against the tax benefit carried forward from prior years and thus only need to be adjusted against deferred tax asset (i.e. 27% of the underpaid tax which is equivalent to RM 666,900).

However, the Auditors highlighted that the above item should instead be fully adjusted against the company’s tax credit. Therefore, additional tax expense should be recognised amounting to RM 1,803,100, making the total of RM2,470,000 for the entire FY06/07.

6. Downward revaluation of finished goods

All finished goods held are valued based on actual product costing.

However, the Auditors viewed certain finished goods as slow-moving stocks and thus they should be valued lower. This had resulted in a downward revaluation of such goods by RM 1,691,000.

7. Billing of finished goods sent to specific plant of an affiliated company for QC and packing and onward shipment to external customers.

During the financial year, there were certain goods transported from a manufacturing plant of APLI to another plant of an affiliated company for the purpose of QC and packing. These goods were then directly shipped to the external customers. The trading arm then issued sales invoices to overseas customers.

However, the Auditors highlighted that there were instances of incorrect billing where sales invoices had been erroneously issued based on shipment of goods to the plant handling the specific QC and packing functions.

As the shipment of these goods were already supported by sales invoices issued by the trading arm, the incorrect billing had resulted in sales being double taken-up amounting to RM 7,273,560.

8. Purchases of raw materials not taken up due to timing differences

There were several commercial invoices on purchases of raw materials which were captured as July 2007 transaction instead of June 2007. Although the commercial invoices were dated in July 2007, the delivery of stocks took place in June 2007.

Therefore, the purchases (amounting to RM 3,501,382) should be recognised in June 2007, i.e. at the point when the company took delivery of the stocks.



© 2007, Bursa Malaysia Berhad. All Rights Reserved.

SALCO Smelter’s Community Engagement Begins

Monday, 24 September 2007, Bintulu -- Sarawak Aluminium Company’s (SALCO) programme of community engagement for the proposed aluminium smelter project began last week with a dialogue held in Bintulu on Friday.

Hosted by the Resident of Bintulu, Dr Razali Abon, the dialogue saw over 40 residents representing a cross-section of the local community - from associations and the business community, local community heads and government departments - meet for the first time with the team from Rio Tinto Aluminium and CMS.

The dialogue, which lasted over 2 hours, addressed questions about the project, on RTA and its experience in developing and operating aluminium smelters, on safety & health concerns and future business opportunities related to the proposed aluminium smelter.

Among those present to answer questions and comments were RTA’s Matt Liddy (GM, Smelter Project Development), Alan Irving (Rio Tinto’s Principal Adviser for Environment), Angus Green (RTA’s consultant specializing in communities) and its External Affairs team. CMS’ team was led by Dato’ Richard Curtis (Group MD) and Isaac Lugun (Head of Similajau Development SBU).

The dialogue was the first of a series of events to be held under SALCO’s community engagement programme which is targeted towards providing the local community with information about the smelter project.

The proposed location of the SALCO smelter will be at Similajau, approximately 60 km from Bintulu town. Due to its proximity, it is expected that many resources and services, including employment, will come from Bintulu.

The previous week had been a busy week for the RTA and CMS teams on the SALCO smelter project. On Monday, 17 September 2007, an announcement was made on the appointment of 2 groups of consultants to begin the Detailed Environmental Impact Assessment (DEIA) study. On Wednesday, 20 September 2007, RTA and CMS met with non-governmental organization, the Malaysian Nature Society’s Kuching Branch, to gain a better understanding of the wildlife activities and concerns in the Similajau area.

SALCO smelter project gains momentum

Tuesday, 9 October 2007, Kuching: The proposed US$2 billion aluminium smelter project is making more progress, with the appointment of prominent international engineering consultant Bechtel to undertake an engineering study, and the allocation of a parcel of State-owned land by the Sarawak Government at Similajau, near Bintulu.

The appointment of Bechtel comes close on the heels of the appointment of Chemsain Konsultant Sdn Bhd (Chemsain) and URS Australia Pty Ltd (URS) to conduct the EIA for the smelter project, which has been identified as the catalyst for the development of Sarawak’s central regional economic growth corridor.

“The allocation of land, commencement of the EIA and the appointment of Bechtel for the engineering study take this significant project to another level, bringing it closer to realization,” said Rio Tinto Aluminium’s General Manager Smelter Project Development Matt Liddy.

Malaysian Main Board-listed conglomerate, Cahya Mata Sarawak (CMS) and global aluminium producer, Rio Tinto Aluminium (RTA) recently signed a Heads of Agreement to commence feasibility studies for the development of a world class aluminium smelter in Similajau, which will be known as Sarawak Aluminium Company (SALCO). The signing, held in Kuching in August 2007, was witnessed by the Chief Minister of Sarawak.

The proposed SALCO aluminium smelter is expected to generate 4,700 direct and indirect jobs as well as billions of Ringgit to the Malaysian economy annually.

According to Matt Liddy, who is based in Kuching, the purpose of the engineering study is to make a detailed cost estimate of all the factors needed to construct the smelter.

The study will also provide the design for the layout of the smelter, identify options to allow for future expansion of the smelter and estimate the size of the workforce needed.

“We are pleased with the appointment of Bechtel as the engineering consultant for this study. Bechtel has built the majority of the world’s aluminium smelters and we are glad to have their expertise on board for the project,” Mr Liddy said.

“Bechtel provides technical, management, and directly related services to develop, manage, engineer, and build aluminium facilities worldwide. Current major Bechtel projects in the aluminium industry include the 360,000 tonnes per year Sohar smelter, under construction in Oman, which includes the world’s longest potline.

“Bechtel also constructed both the initial phase and the expansion of RTA’s Boyne Smelter in Gladstone, Australia. The 550,000 tonnes per year smelter is situated adjacent to the world heritage listed Great Barrier Reef and has spurred on the development of the local community that is now home to around 10,000 people, with the nearest residents located just 400 metres from the smelter.”

Matt Liddy said the feasibility studies would take approximately 12 to 15 months to complete and construction of the smelter could begin in early 2009.

The proposed smelter, to be located in Similajau, 60 kilometres from Bintulu town, would have an initial production capacity of 550,000 tonnes per year, with the capability to be expanded to 1.5 million tonnes. First production from the smelter is targeted for the fourth quarter of 2010. It is proposed that electricity for the smelter will come from the Bakun Hydroelectric Dam, which is currently under construction.

The expertise and credentials of RTA and CMS will greatly boost SALCO’s ability to ensure world class smelting operations.

“RTA and CMS are committed to developing a world class aluminium smelter that meets international standards with regard to environmental, health and safety that the two companies and Malaysia can be proud of,” Matt Liddy said.

”The smelter will adopt leading engineering standards and practices based on RTA’s world class practices used in its mining, refining and smelting operations.”

Sarawak Aluminium Company
Rio Tinto Aluminium Limited (RTA) and Cahya Mata Sarawak (CMS) are undertaking studies to develop an aluminium smelter in Sarawak, which will be known as Sarawak Aluminium Company (SALCO). RTA owns bauxite mines, alumina refineries and aluminium smelters, and has extensive experience in the design, engineering, construction, commissioning and operation of world class aluminium smelters. An aluminium smelter converts alumina into aluminium metal. The alumina for the Sarawak smelter would be sourced from RTA.

Bechtel
Bechtel is one of the world’s premier engineering, construction, and project management companies, with annual revenues in excess of US$20 billion. 40,000 employees are teamed with customers, partners, and suppliers on a wide range of projects around the globe. Over the last 100 years, Bechtel has completed more than 22,000 projects in 140 countries, specializing in the design and construction of highly complex, first-of-a-kind, and remote facilities around the world.

RM7b smelter to start ops in 2010

The Star

Wednesday August 8, 2007

KUCHING: The proposed US$2bil (RM6.9bil) aluminium smelter to be built by the Cahya Mata Sarawak Bhd (CMSB)-Rio Tinto Aluminium joint venture in Bintulu is expected to come on stream in late 2010.


It would have an initial production capacity of 550,000 tonnes a year, and the capability to expand to 1.5 million tonnes per annum later, Rio Tinto chief executive Oscar Groeneveld told reporters.

The smelter would, in its first stage operation, require 900MW of electricity, which would be sourced from the 2,400MW Bakun hydroelectric dam project now under construction.

“We have to start negotiations soon on the purchase price of the Bakun power,” Groeneveld said after the signing of a heads of agreement between Rio Tinto and CMSB here yesterday.

Rio Tinto was represented by managing director (smelting) Sandeep Biswas and general manager (smelter project development) Matt Liddy while group managing director Datuk Richard Curtis and deputy group managing director Syed Ahmad Alsree Alwee signed on behalf of CMSB.

Sandeep Biswas (left) exchanging documents with Datuk Richard Curtis. With them are (from left) Penny Williams, Oscar Groeneveld, Tan Sri Abdul Taib Mahmud and CMSB group chairman Tan Sri Sayed Anwar Jamalullail

Sarawak Chief Minister Tan Sri Abdul Taib Mahmud and Australian High Commissioner to Malaysia Penny Williams witnessed the ceremony.

Rio Tinto and CMSB will have 60:40 equity interest in the joint venture, Sarawak Aluminium Co (Salco).

Curtis said CMSB would be raising long-term funding locally and in the international capital market to finance its investment in the project.

Salco will carry out detailed feasibility studies on the design, engineering, construction, commissioning and operation of the smelter project.

The studies, which will take between 12 and 18 months, will examine the technical, environmental, operational, social and economic aspects of the project, to be sited in Similajau, 80km from Bintulu.

Earlier, Groeneveld cited an independent study which said the project had the potential to generate RM3bil a year to Malaysia’s gross domestic product at current prices for the metal.

“On a per capita basis, consumption of aluminium in Asia is currently low but growing rapidly. A smelter in Malaysia is well poised to take advantage of this growth.”

Groeneveld said the raw materials for the proposed smelter would be imported from Rio Tinto's refinery in Queensland, Australia.

Posted by hmtipol at 12:27 AM

08-10-2007: MUI counters up on turnaround story

KUALA LUMPUR: The MUI group has stirred some interest lately, with several counters surging in active trade on market expectation of the group turning around to be on stronger financial footing.

Last Friday, Malayan United Industries Bhd (MUIB) surged 13 sen or 6.8% to 50 sen, the highest since April 22, 2002 when it also closed at 50 sen. On Friday, it was the volume leader with 143.38 million shares transacted.

Pan Malaysia Industries Bhd (PMI), which holds 46.56% of MUIB, jumped two sen to 10 sen, while MUI’s 68.17%-owned Pan Malaysia Holdings Bhd (PM Holdings) rose eight sen to 26 sen. MUI Properties Bhd rose 4.5 sen to 28 sen.

Industry observers said there could be a turnaround story in MUI group, especially MUIB, as it gets back on a stronger financial footing through its restructuring to pare down its debts to RM1.4 billion as at June 30, 2007 from RM3.5 billion in 2003.

The disposals involved sale of assets including MUI Plaza headquarters in Kuala Lumpur, equities in Malaysian-listed companies and overseas assets including hotels and insurance business.

MUIB had been out of analysts and investors’ radar screen over the past 20 years. In the early 1980s, it was trading as high as RM24 per share.

Currently, the group is in the final stage of its group-wide restructuring, with the last company in the group being PMI. In October last year, PM Holdings and MUI’s indirect associate Pan Malaysia Capital Bhd regularised their financial conditions.

PMI had in mid-September proposed to dispose of a 26.5% stake in MUIB or 515.4 million shares for RM154.6 million under a restricted offer for sale (ROS) to reduce its RM190 million debts.

PMI holds 46.56% comprising 903.49 million MUIB shares and under the corporate exercise, it would sell 26.5% of its MUIB stake or 515.4 million at 30 sen apiece.

MUIB is controlled by a low-profile Tan Sri Khoo Kay Peng, who owns 48.52% or 941.49 million shares in MUIB. Khoo and companies controlled by him have indicated their willingness to fully subscribe to any unsubscribed offer shares under the ROS.

The observers said PMI’s exit from Practice Note 17 would enable Khoo to consolidate the diversified businesses of the once high-flyer MUIB and PMI -- both which had been largely ignored by investors -- under MUIB ultimately.

PMI’s main asset was the MUIB stake after it sold its main asset, comprising 91.06% interest in Metrojaya Bhd (MJB), which reduced its borrowings to RM190 million. After the sale, PMI does not have any core business.

“Companies under the group could be consolidated to enhance their value with MUIB being the ultimate holding company,” said an industry observer, adding there were too many listed underperforming companies in the group.

They also said MUIB has been reducing its losses. In the second quarter ended June 30, 2007, the net loss was RM6.79 million compared with RM16.07 million a year ago. Net asset per share was 42.14 sen.

In the second quarter, MUIB had repaid RM105.49 million in borrowings, reducing its debts to RM912.71 million. Despite the repayment, as at June 30, 2007 it still had assets totalling RM2.82 billion and cash and cash balances of RM533.51 million.

After the acquisition of the Metrojaya stake from PMI, MUIB is expecting its retailing division to be further strengthened and would contribute to group revenue and earnings.

Industry observers said MUIB’s UK retailing operations under Laura Ashley Holdings plc had reported encouraging growth in its sales and margins while Metrojaya was profitable.

According to Laura Ashley’s latest earnings for the 26 weeks to July 28, 2007, it recorded sales of £113.9 million (RM793 million) while profit before taxation was £6.4 million.

“When the MUIB loans are taken care of, we will see an increase in the value of the group,” said an observer, adding that the company could be in the black by 2009.

ipo 2007

http://www.bursamalaysia.com/website/bm/listed_companies/ipos/ipos_resources/2007.html

Number of New Listings

Year Main Board Second Board MESDAQ Market Total
2007 12 5 3 20
2006 10 8 22 40
2005 16 17 46 79
2004 15 26 31 72
2003 16 22 20 58
2002 22 22 7 51
2001 6 14 20
2000 12 26 38
1999 10 11 21
1998 6 22 28
1997 25 63 88
1996 40 52 92
1995 18 33 51
1994 19 47 66
1993 12 32 44
1992 25 20 45
1991 21 18 39
1990 19 12 31
1989 11 2 13
1988 6 - 6
1987 5 - 5
1986 5 - 5
1985 4 - 4
1984 14 - 14
1983 10 - 10
1982 8 - 8
1981 5 - 5
1980 - - -
1979 5 - 5
1978 3 - 3
1977 4 - 4
1976 6 - 6
1975 4 - 4
1974 8 - 8
1973 - - -

Total Number of Listed Companies

Year Main Board Second Board MESDAQ Market Total
2007 642 233 126 1001
2006 649 250 128 1027
2005 646 268 107 1021
2004 622 278 63 963
2003 598 276 32 906
2002 562 294 12 868
2001 520 292 812
2000 498 297 795
1999 474 283 757
1998 454 282 736
1997 444 264 708
1996 413 208 621
1995 369 160 529
1994 347 131 478
1993 329 84 413
1992 317 52 369
1991 292 32 324
1990 271 14 285
1989 305 2 307
1988 295 - 295
1987 291 - 291
1986 288 - 288
1985 284 - 284
1984 282 - 282
1983 271 - 271
1982 261 - 261
1981 253 - 253
1980 250 - 250
1979 253 - 253
1978 253 - 253
1977 256 - 256
1976 264 - 264
1975 268 - 268
1974 264 - 264
1973 262 - 262

28-09-2007: Telekom to split into fixed biz, mobile biz, spin off Celcom

KUALA LUMPUR: Telekom Malaysia Bhd (Telekom or TM Group) has proposed to split its group’s business into two entities to create two leading telecommunications companies, which will see it focusing on regional mobile champion by spinning off Celcom (M) Bhd and another to focus on local business, including rolling out high speed broadband.

Under the plan announced on Sept 28, the proposed demerger of the mobile and fixed-line businesses of the TM Group is to create two separate entities to serve the different market segments within the telecommunications industry (regional company). The completion date is the second quarter of 2008.

Celcom will be transferred to TM International Sdn Bhd (TMI), and TMI will become the holding company for all of TM Group’s mobile and non-Malaysian businesses. It will be demerged from the TM Group through the distribution by Telekom of all the TMI shares to its shareholders, and will be listed on Bursa Malaysia Securities Bhd.

The remaining TM Group will after the demerger comprise of fixed line voice, data and broadband services, as well as other telecommunication and non-telecommunication related businesses. It will remain listed as Telekom on the Main Board of Bursa Securities.

Telekom said that the company undertaking the regional mobile business (RegionCo) will undertake the mobile business of the TM Group, which is presently being carried out by Celcom and the various operating subsidiaries and associated companies of TMI.

“RegionCo will be focused on becoming a best-in-class regional mobile champion with strong exposure to high growth mobile markets. As at June 30, 2007, RegionCo has a total of 31.8 million subscribers in high growth markets in Asia. The year-on-year subscribers growth as at June 30, 2007, was 33.1%,” it said.

Telekom said that the proposed demerger would enable RegionCo to better position itself in expanding its regional presence. Such strategic initiatives, which will continue to spur RegionCo’s growth, are expected to be supported through the steady cashflow streams derived from Celcom and a flexible capital structure.

The fixed line business will be undertaken by FixedCo, which will carry on the fixed-line voice, data and broadband services and other telecommunication and non-telecommunication related businesses.

FixedCo has a 95% market share in the fixed-line business, and a 96% share of broadband business. As at June 30, 2007, FixedCo has 4.4 million fixed-line subscribers and 1.1 million broadband subscribers.

“FixedCo intends to lead the broadband penetration in Malaysia, which has strong growth opportunity given Malaysia’s broadband penetration of only 12.8% for the second quarter of 2007. As at June 30, 2007, FixedCo’s broadband subscribers grew by 66.8% year-on-year (y-o-y),” it said.

Telekom said that the proposed demerger would provide each company with a set of additional benefits.

RegionCo will benefit from increased deal structuring capability with its enhanced profile as a successful and growing pure-play mobile operator. The separate listing also provides RegionCo with a more attractive acquisition currency, in the form of its own listed shares, and greater access to equity markets and increased flexibility in funding. These allow RegionCo to be better positioned to pursue its growth strategies.

Secondly, it would also provide the respective entities, which are involved in two distinct areas of business, the opportunity for better and more-tailored capital management initiatives.

“This would allow each business to design optimised capital structures through differentiated gearing levels, as well as enable better capital allocation processes, for more effective capital spending. Each entity will also be able to pursue specific dividend policies and investor relations strategies,” it said.

什么是CUP?DUP?

Committed Uncleared Purchase or CUP
Where there is cash or available margin in the account at the time of placing the purchase order, the said order can be tagged as 'CUP' trade. This cash or margin amount will be locked for this 'CUP' trade for settlement.

Direct Uncleared Purchase or DUP
When the said funds are available at the time of placing the purchase order, the order will be classified as a 'DUP' trade.

是在交易時戶口有錢....就會mark as CUP


是戶口在交易時沒錢... 不過交易後會補上...就會mark as DUP

ccb

year,quarter,revenue,profit,eps,dividend
31-Dec-07 2nd 177,259 3,621 4 5
31-Dec-07 1st 157,349 1,536 2 -
31-Dec-06 4th 158,800 31,745 32 5
31-Dec-06 3rd 165,655 812 1 -
31-Dec-06 2nd 168,736 7,989 8 208
31-Dec-06 1st 147,383 5,150 5 -
31-Dec-05 4th 186,122 7,829 8 10
31-Dec-05 3rd 180,126 5,208 5 -
31-Dec-05 2nd 212,821 7,659 8 5
31-Dec-05 1st 181,613 3,212 3 -
31-Dec-04 4th 183,737 391 0 10
31-Dec-04 3rd 181,943 1,390 1 -
31-Dec-04 2nd 197,265 7,102 7 7
31-Dec-04 1st 194,317 6,086 6 -
31-Dec-03 4th 147,353 -2,444 -2 10
31-Dec-03 3rd 178,670 7,071 7 417
31-Dec-03 2nd 265,890 1,272 1 15
31-Dec-03 1st 279,848 16,611 17 -


after pare down its non-core business from a series of special dividend , ccb turn cash rich position into debt-burden company.

reviews the acticle
Market rumour speculates that the cash rich company, Cycle & Carriage (M)Berhad, may via special issue or capital repayment exercise repay its shareholders half or at least RM100 million from its cash reserve representing approximately RM1.00 per share by way of cash repayment


in present, ccb is believed very hard to sustain in challenge market as well as paying huge financing cost.
after the second batch of special dividend 208sen which derived from property sold,ccb must sign another leaseback arrangement from that previous sold property. and this lease fee is charge by approx 9% of the selling price, equal to 3.65 millions annual lease charge.

somemore, the recurring profit of ccb in year2006 is actual loss, after deducting the extra gain from property sold.
in year2007-to-date,AAM records the volume of cars sales in malaysia is drop by 9% compare to pastyear-to-date.

supported by generous cash pay and potential appreciation from propertis revalue, current share price is reasonable , despite of 20 p/e.

just after that, ccb keep on to dispose its property, how many times they can do so? can pay another dividend more? i believe special dividend is near come , but i still stand aside from it.

计算观赏鱼的药量

想必网上提供的药量建议，常常让大家苦恼，在这里和大家分享用量。

盐的用量－
网友提供的1%到5%是错误的，除非是漂洗用途。
一般是千分之一到千分之五，即0.1%到0.3%养浴，和0.5%的药浴。

1.先测量缸的水高*长*宽，例：20cm*40cm*30cm，转为公升(L)即为24公升(L)。

公式
(高cm * 长cm * 宽cm) / 10000 ， 公升可转为kg。

知道了24公升的水量后，再计算盐的用量。
如果把24g的盐放入缸里，他就形成了0.1%的盐浓度。
如果把48g的盐放入缸里，他就形成了0.2%的盐浓度。

要计算盐的重量，这里有多个方法。只要你有茶匙，汤匙，和大腕公喝汤用的汤匙，都可以用来量盐重。

1茶匙盐，表面拨平，得5g盐。
1汤匙盐，表面拨平，得10g盐。
大腕公喝汤用的汤匙，1匙，表面拨平，得20g盐。


日本上野黄药－
这是比较多用途的抗生素，主要用来杀菌。用多会产生抗药性，因此放药要适当。

网友建议的用量是15ppm到25ppm。 ppm就是百万分之一。

在24L的水缸里，如果想要制作20ppm黄药，那么你就放0.48g的黄药。
( 0.48g / (24L*1000) * 1000000 = 20ppm )

0.48g的计算很艰难。
简单的方法是把一包5g的黄药，分成 10.42份， 每份0.48g。

当然，也可以分成10份，每次下药0.5g。
0.5g / (24L*1000) * 1000000 = 20.8 ppm

misc

year,quarter,revenue,profit,eps,dividend
31-Mar-08 1 2,921,219 575,616 15.47 -
31-Mar-07 4 2,864,619 702,590 18.89 20
31-Mar-07 3 2,827,623 944,479 25.39 -
31-Mar-07 2 2,787,969 682,734 18.35 10
31-Mar-07 1 2,718,734 522,220 14.04 -
31-Mar-06 4 2,857,245 665,726 17.9 20
31-Mar-06 3 2,768,880 775,710 20.9 -
31-Mar-06 2 2,539,707 655,333 35.2 10
31-Mar-06 1 2,600,594 853,046 45.86 -
31-Mar-05 4 2,600,594 853,046 45.86 -
31-Mar-05 3 2,835,618 2,203,322 118.46 -
31-Mar-05 2 2,939,871 1,018,541 54.76 20
31-Mar-05 1 2,556,434 621,491 33.4 20
31-Mar-04 4 2,291,099 727,750 39.1 -
31-Mar-04 3 2,006,058 620,382 33.4 -
31-Mar-04 2 1,830,554 491,058 26.4 -
31-Mar-04 1 1,478,560 450,381 24.2 -
31-Mar-03 4 1,387,774 399,862 21.5 15