The Star Online: Business
The Star Online: Business |
- Eye on stock
- Yayasan Melaka plans investment in oil palm project
- KLIA2 cost overrun poser to be answered on Tuesday
| Posted: 25 Nov 2011 09:44 PM PST ALTHOUGH the net earnings of Malaysia Marine & Heavy Engineering Bhd (MMHE) for the second quarter ended Sept 30, 2011, came in below expectations, analysts say the long-term prospects of the counter remains positive. Last week, the oil & gas services provider said its net profit grew only 3.2% year-on-year (y-o-y) to RM80.2mil on revenue of RM463.1mil. "Putting things into perspective while 2011 earnings are a foregone conclusion' we expect annualised net profit to be down 17% y-o-y and would largely have been reflected in MMHE's share price. It should be a stronger 2012 performance," Maybank Investment Bank Research analysts say. They term MMHE as a direct Petronas-proxy play, and ascribe an ambitious target price of RM8 for the counter. MMHE's order backlog currently stands at RM3.7bil, compared with RM1.9bil in September. There is an 18-month visibility of its order book, according to analysts, and this is underpinned largely by the recently awarded RM1.4bil contract from ExxonMobil for the Tapis Enhanced Oil Recovery Project and the more than RM800mil FPSO Cendor conversion project. In addition, MMHE's current tender orders are worth around RM4bil to RM5bil, comprising local and overseas gigs. On a technical basis, TA Research analysts argue that there is a fresh buy signal on the directional movement indicator, which implies that MMHE is ripe for an oversold rebound towards RM6.31, with a stronger resistance at RM6.90. They tag the RM5.40 level as the downside cushion. ● The comments above do not represent a recommendation to buy or sell. Full content generated by Get Full RSS. |
| Yayasan Melaka plans investment in oil palm project Posted: 25 Nov 2011 09:43 PM PST KUCHING: Yayasan Melaka will invest some RM120mil to develop 31,500 ha of land in Sarawak into oil palm plantations on a joint-venture (JV) basis. The investment arm of the Malacca state government will hold 65% stake in the JV with the other 35% by Pelita Holdings Sdn Bhd, a subsidiary of state-owned Land Custody Development Authority (LCDA). An agreement for the joint-venture project was signed here yesterday (Nov 25). The signatories were Yayasan Melaka director Datuk Nor Adibah Abdullah and Pelita Holdings chief executive officer Abdullah Chek Sahamat. Malacca Chief Minister Datuk Seri Mohd Ali Rustam and Sarawak Land Development Minister Tan Sri Dr James Masing witnessed the ceremony. The land to be developed is in Kanowit in the central region, and Lundu district in the southern region which comprise both state land and native customary rights (NCR) land. Dr Masing said the Kanowit Block C project covered a gross area of 20,383ha (17,017ha of NCR land and 3,363ha of state land) and involved 800 families from 55 Dayak longhouses. He said the Lundu project covered 11,094ha (3,421ha of NCR land and 7,673ha of state land) that involved 400 families from Kampung Stunggang Dayak and six other settlements. The Sarawak government approved the development of the two plots in 2009 and 2008 respectively. Yayasan Melaka general manager Sharabuddin Kudus said the foundation would bring in the capital required for the development of the oil palm estates. "The overall development cost is estimated at RM120mil. Preliminary investment is between RM20mil and RM30mil. "We plan to carry out planting of the entire land in five years," he told reporters after the agreement signing. Sharabuddin said the Lundu project would start first in the next three to six months as survey work on the land had to be carried out. He said a public relations company would be engaged to hold discussion with the NCR landowners concerned so as to cultivate a good relationship with them to facilitate the project's smooth implementation. Sharabuddin said this was Yayasan Melaka's first venture in Sarawak after Sabah where it owned about 5,000ha of planted oil palm estates. He said Yayasan Melaka' subsidiaries owned 3,000ha of matured oil palm estates in Malacca. Ali said Yayasan Melaka had turned to Sarawak and Sabah to expand its oil palm plantation as big plantation land in Malacca was no more available. Full content generated by Get Full RSS. |
| KLIA2 cost overrun poser to be answered on Tuesday Posted: 25 Nov 2011 09:42 PM PST PETALING JAYA: The billion dollar question as to whether the construction of KLIA2 has incurred significant cost overruns will be answered this Tuesday by Malaysia Airports Holdings Bhd, sources close to the matter told StarBizWeek. MAHB issued a statement yesterday stating that it would conduct a media conference and preview of KLIA2. "All will be revealed as to what has transpired," said a source. The media will also be offered a "walkabout" at KLIA2 on Tuesday, according to the advisory note. Some reports have suggested that the cost of building KLIA2 has escalated to RM4bil and that would mean a huge cost overrun for the airport operator in constructing Asia's biggest low cost air terminal. Recently, when an MAHB official was asked to comment on the recent reports suggesting the RM4bil cost overrun, he had said that "the only avenue for us to recoup the costs is from non-aeronautical revenue such as the retail segment.'' This comment gave AirAsia boss Tan Sri Tony Fernandes enough ammunition to poke fun at the airport operator. Fernandes has been the airport operator's biggest critic in recent times. He had been unhappy about the raising of the passenger service charge by MAHB. He had also questioned the need to have a third runway. (The third runway was not part of the initial plans but was added on later by MAHB at the request of airlines and to cater to both KLIA and KLIA2.) Fernandes had also expressed his displeasure over the RM7 hike in passenger service charge (PSC) from RM25 to RM32 for the LCCT. (MAHB had not increased its PSC charges for the last nine years and Malaysia's charges are one of the lowest in the region.) Fernandes also had a "war of words" with Transport Minister Datuk Seri Kong Cho Ha over the PSC issue where AirAsia initially did not want to collect on behalf of MAHB. Since then, AirAsia has conceded, and has agreed to collect the PSC as part of their ticket pricing. Hence industry observers say MAHB would do itself a favour by revealing the whole story about the cost it has been incurring in putting up KLIA2. Sources said that a key aspect of Tuesday's explanation by MAHB would involve the airport operator explaining how they had bumped up the size of KLIA2 from what was originally envisaged. KLIA2 was initially conceptualised as a low cost terminal which would have an area of 150,000 sqm, but to accommodate regulatory requirements it will now be a much bigger airport with 255,000 sqm and that would mean the cost would also be higher. "There was a need for a new design to be done and to also include the government's security requirement for the full separation of arriving and departing international passengers and segregation of domestic and international passengers. "If the terminal building is bigger, the apron also has to be bigger and the cost will surely rise from the original amount,'' said the source. The entire development will comprise a 3-storey main terminal building, a satellite building and domestic and international contact piers. The superstructure's initial cost was bandied at RM2bil for 150,000 sqm but could have swelled to RM2.8bil or over RM3bil because the plans had been changed and the airport is much bigger than originally planned. It is meant for over 30 million passengers. Full content generated by Get Full RSS. |
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