The Star Online: Business

Navis buys HG Power Transmission, 5th Msian investment
Affin maintains "Reduce" on Kinsteel with higher TP of 38sen
AmResearch maintains "Buy" on IJM, raised FV to RM6.95

Navis buys HG Power Transmission, 5th Msian investment

Posted: 28 May 2013 07:11 PM PDT

Published: Wednesday May 29, 2013 MYT 10:12:00 AM

PETALING JAYA: Navis Capital Partner has completed an investment in HG Power Transmission Sdn Bhd (HGPT) in hopes to be a major player in the electrical transmission sector.

This marks the private equity firm's fifth investment by Navis' Malaysian Growth Opportunity Fund I and the second made by the fund in 2013.

Navis said the transaction involved Navis purchasing an equity stake in the company and subscribing to new shares via a substantial capital injection.

The investment is expected to enable HGPT to grow regionally, as economic growth of the developing countries in the region drives the demand for electricity transmission to previously under-served areas.

HGPT managing director Baskar Sharma said the partnership adds both regional management expertise and financial strength, allowing more growth opportunities across Asia.

The Asian-centric firm manages over US$3bil in equity capital, with almost 60 transactions completed since its establishment in 1998.

It had earlier completed an investment in Strateq Sdn Bhd, a leading Malaysian IT services provider on top cinema operator MCAT Box Office Sdn Bhd and private education services provider SEG International Bhd.

Affin maintains "Reduce" on Kinsteel with higher TP of 38sen

Posted: 28 May 2013 06:32 PM PDT

PETALING JAYA: Affin Investment Research maintains its "Reduce" on Kinsteel Bhd but raised its target price to 38 sen from 27 sen despite its earnings downgrade.

"We have lowered our financial year 2013-2015 earnings forecasts by 33-25% after lowering our blended average selling price by 10-13%. Although domestic demand is improving on the back of the various mega projects, the positive impact is mitigated by the subdued global economic outlook which will cap any meaningful recovery in selling prices," it said. Affin said Kinsteel reported a net loss of RM8.4mil, which is a reversal from the RM10.3mil net profit in 1Q12. "This is below our and consensus estimates of a full year 2013 net profit forecast of RM46mil and RM37mil respectively. For us, we believe the deviation was largely due to a lower-than-expected average selling price (ASP), which resulted in the compression in margin. As expected, no dividend was declared for the quarter," it said. The research house added the weak ASP prices has led to the of RM8.4mil in 1Q13. On the domestic front, it said domestic steel bar prices have remained soft, trading within RM2,100 to RM2,200/MT level. Affin said its 37% owned unit, Perwaja Holdings also recorded a net loss of RM18.5mil from a 26% sales drop.

"Given the soft global economic outlook, coupled with an oversupply situation in China, we expect the outlook for the global steel market to remain volatile and uncertain. On a more positive note, the existing pipeline under the Economic Transformation Programme is expected to sustain local demand," it said

AmResearch maintains "Buy" on IJM, raised FV to RM6.95

Posted: 28 May 2013 06:12 PM PDT

Published: Wednesday May 29, 2013 MYT 9:12:00 AM

PETALING JAYA: AmResearch maintained a "Buy" on IJM Corporation Bhd with a higher fair value to RM6.95 from RM5.71. "IJM reported financial year 2013 results that were in-line with expectations. The group declared a second interim dividend per share (DPS) of 9 sen (single-tier), taking full-year DPS to 13 sen (net yield of 2%)," it said. The research house said it had estimated IJM's net profit to increase about 3% on-year at RM438mil but its gains for the construction and property divisions were largely offset by lower plantation earnings. "Plantation earnings fell by 27% on-year on faltering fresh fruit bunches volume coupled with lower crude palm oil prices realized which was at RM2,620/mt in 2013 vs RM3,049/mt a year ago," it said. It said for IJM's financial year 2014, the research house expects greater orderbook visibility post elections mainly the West Coast Expressway project where IJM is a strong contender. "IJM Land's strong pipeline of new launches is well positioned to benefit from an expected return of buying interest post-elections. The maiden launch of Bandar Rimbayu last month was already a roaring success," it said. AmResearch noted with a market capital touching RM8bil, IJM is a liquid proxy that should benefit from a return of foreign investor interest in the Malaysian contractor.

Kredit: www.thestar.com.my

Selasa, 28 Mei 2013