January 25, 2013

Parkson eyes 10pc growth in China

Parkson Retail Group Ltd (PGRL), the mainland's largest department store chain, expects sales to grow more than 10 per cent this year.

"We will try our best to catch up, hopefully we will achieve this," said Chairman of the Lion Group, Tan Sri William Cheng, who is also Chairman of Parkson Holdings Bhd, the investment holding company of PRGL.

Cheng said the company's sales in China last year had slowed to four per cent amid the economic downturn.

Parkson recorded a net profit of 1.4 billion yuan last year, he told Bernama on the sideline of an awards ceremony here on Thursday for the 2012 Outstanding Chinese Entrepreneurs Entering Asean, and Outstanding Asean Entrepreneurs Entering China Award.

Cheng was honoured with the Outstanding Asean Entrepreneurs Entering China award.

On the company's expansion in China, he said Parkson planned to open five to eight outlets every year in the first, second and third-tier cities in China.

"We would also open five to eight stores in South East Asia this year, including in Malaysia, Vietnam, Indonesia, and Myanmar." There are 54 Parkson outlets in China current

January 24, 2013

Tune Ins to raise RM222m from IPO

Tune Ins Holdings Bhd, an insurance products manager, is raising RM222.2 million from its initial public offering (IPO) pursuant to its listing on the Bursa Malaysia Securities Main Board.

The company is an insurance product manager for its on-line partners which are currently AirAsia, Tune Hotels and AirAsia Expedia.

Tune Ins Holdings, among others, designs and manages insurance products that will be sold to customers of on-line insurance partners.

Under the IPO, Tune Ins Holdings will offer up to 210,224,900 ordinary shares to Malaysian and selected institutional investors and Bumiputera investors approved by the Finance Ministry, Malaysian retail investors and foreign institutional investors, the company said in a statement.

The retail portion of the IPO will consists of up to 41,346,800 public issue shares while the institutional portion will comprise up to 102,028,100 public issue shares and up to 66,850,000 offer shares.

The retail portion of the shares will be offered at RM1.55 while the institutional price will be determined by way of a book building process.

According to the prospectus, proceeds of the IPO exercise will be used for the repayment of bank borrowings (59.86 per cent), working capital (12.24 per cent), strategic investments (22.50 per cent) and payment of listing expens

January 21, 2013

Genting outlook seen positive on expansion

Genting outlook seen positive on expansion

PETALING JAYA: Genting group of companies could be in for a better year ahead with possibilities of capacity expansion as well as mergers and acquisitions, said CIMB Research.

The research house said Genting Group has planted a strong footprint as the prime developer and owner of integrated resorts (IRs) in Asean where it pioneered the Asian IR with Genting Highlands, elevated it to another level with its Sentosa IR in Singapore and is now replicating it a second time in Manila, a nascent, potentially high-growth market.

“Beyond this, the group has positioned its operations and balance sheet in most hot spots around the world, be it the US or Japan. Genting's current footprint and global strategy is compelling and relevant,” said CIMB Research in a report yesterday.

CIMB Research added that Genting Singapore was very interested in the potential liberalisation of the Japanese market following the country's recent general election while Genting Hong Kong has a strategic 10% stake in Echo Entertainment, the exclusive casino licence holder for Sydney and New South Wales.

“Last but not least, Genting Malaysia is well positioned for the further liberalisation of US east coast markets after investing US$700mil in the Aqueduct racino in New York and US$442mil in prime waterfront Miami real estate.

“The group is in expansion mode, not surprisingly with RM23bil in unencumbered cash in Genting's consolidated balance sheet. With its feet in numerous prospective scenarios around the world, 2013 could be an event-driven year,” it said.

It said Macau would be the ultimate prize for Genting as there were opportunities to secure a sub-licence from one of the six concessionaires, though securing tables from the regulator was difficult.

Overall, the research house that maintained an “overweight” call on the sector said the group, which has 12% share of the Asian casino market, would remain a relevant force despite coming under the shadow of the Macau players in the last three years.

“Despite our neutral rating for Genting Malaysia and underperform for Genting Singapore, our outperform call on Genting is premised on valuations where it is still trading at crisis-like price-to-book multiples.

“Investors are also paying just for the value of its listed units and nothing for its non-listed assets and cash. The stream of cashflows from management fees paid by Genting Malaysia that account for 13% of Genting's earnings are not priced in,” it said.

http://biz.thestar.com.my/news/s ... 26&sec=business

January 18, 2013

Perisai Petroleum riding high on oil and gas boom

OIL and gas services provider Perisai Petroleum Teknologi Bhd expects its bottom line to register double-digit growth this year, riding on the sector's booming performance, especially in the Asia Pacific region.

Perisai Petroleum managing director Izzet Ishak said this year there will be more activities in the oil and gas sector, of which some of the oil majors will be using its services such as chartering its vessels and drilling services.

"We will also be allocating US$200 million (RM604 million) for capital expenditure this year on FPSO (floating, production, storage and offshore) activities," Izzet told reporters here yesterday after the naming ceremony of its first jack up drilling rig called Perisai Pacific 101.

Izzet said the company is expected to take delivery of Perisai Pacific which is its first drilling rig by July next year costing US$208 million.

"The first rig will impact our earnings in a big way at around RM50 million and RM60 million a year.

"We expect to take delivery of the second rig in 2015, of which it will be raised by equity and bank borrowings," said Izzet.

The company announced a share placement exercise last month to finance its second rig.

The drilling rig enables the company to drill for oil at sea depths of 400 feet and drill into the seabed as deep as 30,000 feet.

Meanwhile, in his speech, International Trade and Industry Deputy Minister Datuk Jacob Dungau Sagan said the oil and gas sector contributes 20 per cent of the country's gross domestic product.

Trade in petrochemical products increased by 22 per cent last year to reach US$52 billion.

At present, about 39 companies are in the operation in the oil and gas sector representing investments valued at about RM28 billion.

Perisai Petroleum - A New Rig In The Offing

Maintain BUY; TP MYR1.40. With Perisai well positioned to capitalise on PETRONAS’ demand for locally-owned rigs, we anticipate that it will exercise its option for a second jack-up rig by 1H13. We do not expect it to face any difficulty in securing charter contracts at decent rates. Our forecasts are unchanged; they do not include the earnings impact of a second rig. Current valuation offers upside at just 9.3x 12M forward earnings. Our target price is based on 11x FY14 EPS.

Officially names its new jack-up rig ‘Perisai Pacific 101’. The rig, which costs USD208m, is a PPL Pacific Class 400 rig and can accommodate up to 150 personnel. It is designed and equipped to drill high-pressure and high-temperature (HPHT) wells as deep as 30,000 feet and operate in water depths of up to 400 feet. The rig, under construction at PPL shipyard, is scheduled for delivery by Jul 2014.

Anticipates a contract in 2013 at decent rates. While the rig has yet to be committed to any particular job, we are confident of Perisai securing a contract before its delivery deadline, as it leverages on the rig’s high specifications and the strong demand for local assets. The rig is slated for operations in Malaysia, as it benefits from the import substitution effect and rising drilling activities. Of the 15 jack-up rigs currently deployed in Malaysian waters, only one is locally owned.

Likely to exercise the option for a second rig. The first rig can now command daily charter rates (DCR) of USD150k-160k (historical DCR: USD100-220k), with a 6 to 7-year payback (equivalent to a net profit of MYR40-50m p.a.). With a commanding ROE of ~30% and strong demand for locally-owned rigs, we expect Perisai to exercise the option to purchase a second rig of similar specifications at an earlier agreed price of USD210m (pending cost escalation clauses), with an end-Jul 2015 delivery date. The option granted by PPL will lapse in Feb 2013.

To tap the capital market for the second rig purchase. Should it exercise this option, we estimate that Perisai will need to raise about MYR130m for a 20% equity stake. This will be largely satisfied by the planned private placement exercise of 85.1m new Perisai shares, which is expected to be concluded by June 2013.

January 15, 2013

Staple REIT-KLCC Property to form stapled REIT?

KLCC Property Holdings Bhd (KLCCP) will be restructuring to form a stapled real estate investment trust (REIT) known as KLCCP Stapled Group that will ultimately end up with its shareholders owning shares and units in both KLCCP and KLCC REIT respectively.
The KLCC REIT would be listed on the Main Market of Bursa Malaysia and its units would be distributed to shareholders and “stapled” to the KLCCP shares that these shareholders owned on a one-for-one basis, the company said in a filing with the stock exchange.
Before it does this, the company will acquire the remaining 49.5% stake in Midciti Resources Sdn Bhd which owns the Petronas Twin Towers from KLCC (Holdings) Sdn Bhd (KLCCH) for RM2.86bil that will be paid by the issuance of new KLCCP shares to KLCCH.
It will then inject three assets – Petronas Twin Towers, Menara 3 Petronas and Menara ExxonMobil – into a REIT vehicle in exchange for these REIT units. According to the illustration shown in a KLCCP statement, KLCC REIT will eventually wholly-own these properties.
The KLCCP Stapled Group aims to pay at least 90% of its distributable income to shareholders.
“The group will have conservative capital structure with significant debt headroom to fund future growth,” the company said.
“This landmark transaction represents a unique value proposition for KLCCP and its shareholders,” said chief executive officer Hisham Wahir. “The structure will also allow our investors to continue benefitting from the upside from our future developments.”
The restructuring is expected to be completed by the second quarter of 2013.

DRB-Hicom sees growth in non-auto biz

DRB-Hicom Bhd expects its services, property and defence businesses, apart from automotive division, to grow further
and become major revenue contributors in the next 36 months.

Chief Operating Officer of Finance, Strategy and Planning, Datuk Seri Che Khalib Mohamad Noh said the company would be focusing on the four sectors, which formed its core businesses, to unlock their business growth potential.

"We are looking at streamlining and rationalising our core business and create group synergies within the whole group to further drive the growth of DRB-Hicom," he told reporters at a briefing here recently.

Elaborating further, he said in the next 36 months, the defence division is expected to start the delivery of 257 units of 8x8 armoured wheeled vehicle (AV8) to the Malaysian military, worth RM7.55 billion, which would be recognised in the division's revenue from financial year 2013/2014.

On the services sector, he said its wholly-owned subsidiary, KL Airport Services Sdn Bhd, planned to venture into the logistics value chain and expand the business to the new low-cost carrier terminal, klia2.

In addition, its waste management service provider, Alam Flora Sdn Bhd, also planned to expand to Kelantan and Terengganu, implement new rates, and explore the possibility of building an incinerator to dispose of waste while generating power for the community.

DRB-Hicom is also expanding the Pos Malaysia's courier business and non-postal revenue as well as embarked on network expansion for Bank Muamalat through the national courier branches.

Apart from services, Che Khalib said the company will also be realising the potential of the property division, which has about 1,214 hectares of land nationwide, with massive development.

He said there are a lot of new property launches in the pipeline, starting from the middle of this year, as the company wants to capitalise the parcels of land which are located in prime areas such as Jalan Tun Razak and Glenmarie.

Meanwhile, on the automotive sector, he said DRB-Hicom will collaborate Proton with global players and rationalise the national car's after-sales operation and network expansion.

The company would also optimise its Tanjung Malim plant's capacity utilisation and strengthen domestic sales while intensively prioritising the export markets, he added.

On the other marquees, Che Khalib said Volkswagen is expected to export cars to the Asean market by next year while the Honda plant expansion, scheduled to be completed by year-end, will see total capacity increasing to 100,000 units from 50,000 and supply hybrid cars to the Asean market.

In another development, Che Khalib said the company would continue to divest its non-core business and dilute its stakeholding in Bank Muamalat to 40 per cent from 70 per cent currently to focus on its core businesses.

"All this divestment and disposal plans are part of our rationalisation exercise, not an exercise because we are desperate to raise money to redeem our debt but because we are seriously looking to concentrate on the core business," he said.

He said the proposed sale of the company's stake in Bank Muamalat were to meet Bank Negara Malaysia's requirement, which asked the company to pare down its stake in the Islamic bank and partner it with other bank to make it bigger.

DRB-Hicom completed the divestment of its power division, Hicom Power Sdn Bhd, for RM575 million on Dec 17 last year.

It is expected to complete the divestment of its insurance unit, Uni.Asia General Insurance and Uni.Asia Life Insurance, in the fourth quarter of this year

Potential to see more REITs in 2013

POSSIBLE INJECTION: Both Loong and Yee hold high hopes for 1 Utama Mall – estimated to be worth RM3 billion and about two million sq ft of NLA – to be injected into a REIT, owned by private player See Hoy Chan.
KUCHING: Property players spinning off into the Real Estate Investment Trust (REIT) indus­try is expected to be one of the thematic plays for 2013 within the property sector, with various big caps pegged to be the beneficiaries of unlocking the value from said properties.

This sentiment was brought forward by HwangDBS Vickers Research Sdn Bhd (HwangDBS Research) analyst Yee Mei Hui in a sector outlook, stating that the environment was currently condu­cive for REITs due to their stable earnings and higher yields.

RHB Research Institute Sdn Bhd (RHB Research) analyst Loong Kok Wen shared the same sentiment in an email to BizHive Weekly.

“We do not discount the possibil­ity of more players (especially in the retail segment) entering the Malaysian REIT (M-REIT) sec­tor, given the successful listing of IGB REIT and Pavilion REIT,” she outlined.

This led to HwangDBS Research identifying RM12.4 billion worth of ‘REIT-able’ malls in the Klang Valley alone at around 17.1 million square feet (sq ft) of total net let­table area (NLA) and another 12.7 million sq ft of new retail space supply over the next three years.

“One of the developers with REIT potential include KLCC Property Holdings Bhd (KLCC Property),” Yee highlighted. “To note, the group’s restructuring into a stapled REIT structure was well-received; it had re-rated substantially over the last two months.

“There should be further upside with the imminent injection of Suria KLCC into a REIT to reap huge tax savings – we estimate revalued net asset value (RNAV) can improve by 16 per cent to RM8.70 per share.

“The latest valuation for the mall is RM4.4 billion with 1.1 million sq ft of NLA and there are plans to develop more retail space at adjacent Lot D1. The mall is 60 per cent owned by KLCC Property and 40 per cent by CBRE-ING.”

Another potential key potential she said was Boustead who owns popular malls The Curve and Ikano Shopping Centre at Mutiara Damansara with a total estimated value RM1.3 billion and 1.1 mil­lion sq ft of NLA which could be injected into a REIT.

“The potential acquisition pipe­line for the REIT, if it materialises, may include the proposed mall at Jalan Cochrane adjacent to the upcoming Mass Rapid Transit station.”

Table of existing malls with the potential to be injected into a REIT (SOURCE: Companies, HwangDBS Research)

Another possible candidate for a REIT player is WCT Bhd (WCT) which is currently building up its retail mall portfolio to boost recurring income base to 25 per cent of operating profit by 2016 from 15 per cent in 2011.

“By then, WCT will own three sizeable malls that can be injected into a REIT that is Paradigm Mall (680,000 sq ft of NLA opened in May 2012), KLIA2 retail (350,000 sq ft of NLA, estimated completion in 1Q13), and OUG Mall (one million sq ft NLA, expected completion in 2017).”

Privately owned See Hoy Chan Sdn Bhd (See Hoy Chan) was an­other player highlighted by Yee, who noted that the group had potential to list recently renovated 1 Utama Mall estimated to be worth RM3 billion (two million sq ft of NLA).

“We do not discount the possibil­ity of a mixed REIT with adjacent One World Hotel (508-room 5-star hotel) and two First Avenue office towers,” she explained.

“Also, Bandar Raya Develop­ment Sdn Bhd (BRDB) which was recently privatised is soliciting bids for its newly refurbished Bangsar Shopping Centre which was last revalued at RM700 million (330,000 sq ft of NLA). BRDB also owns malls in CapSquare (KL) and Permas Jaya (Johor).”

Nevertheless, Loong from RHB Research outlined that there were many factors to be considered prior to listing, such as the asset’s size and value, the asset’s and ten­ants’ quality, the asset’s age and the investors’ appetite for REITs at time of listing.

“In our opinion, a new REIT will only be on the investors’ radar if its asset size is more than RM1 billion, as a majority of the listed REITs now have asset sizes of more than RM1 billion,” she cautioned.

“Larger REITs such as Pavilion REIT, IGB REIT and Sunway REIT all boast asset sizes of above RM3 billion. Meanwhile, 1 Utama is highly anticipated to be injected into a REIT.”

January 14, 2013

13th the Most Popular Investment Spot in Asia

Every year, the Economist Corporate Network—the emerging markets advisory business of The Economist Group—conducts a survey of its 500 clients in Asia Pacific. These 500 firms are some of the world’s largest multinationals, and their collective views provide critical insights into the world’s fastest growing region.
The latest Asia Business Outlook Survey (ABOS) was carried out in December 2012. Respondents were all senior executives, many of them with overall responsibility for the Asia Pacific region. The majority came from Western multinational companies.
The survey shows that China, India and Indonesia hold the top 3 spot of the most popular investment spot in Asia while Malaysia not far behind at the 4th spot.
The table below is the top 13th list of the most popular investment spot in Asia.

Country Score
China 73.8
Indian subcontinent 54.1
Indonesia 53.5
Malaysia 43.0
Thailand 38.6
Vietnam 37.7
Singapore 34.8
South Korea 28.9
Philippines 28.1
Australia 27.0
Japan 26.2
Hong Kong 21.4
Taiwan 15.2

January 11, 2013

RHB Research: Still good reasons for DRB-Hicom privatisation

KUALA LUMPUR: RHB Research Institute states there are good reasons for DRB-Hicom's major shareholders to consider a privatisation offer for the remainder of the company.

It said on Friday that Etika Strategi owns 56% of DRB-Hicom. A buyout of the remaining 44% at RM4 a share would cost RM3.4bil.

"Even if no offer materialises, we continue to be positive on the longer-term fundamentals of the stock," said the research house.

On Thursday, DRB-Hicom reiterated that it had not been approached on any privatisation plan. Its management also revealed that it was considering a possible listing of the Proton distribution business, the proposal was still at a preliminary stage.

In a separate media article, DRB-Hicom's group managing director Datuk Seri Mohd Khamil Jamil said, "I believe that DRB-Hicom is in no position to be privatised. We are still in the state of rationalising Proton and some of our businesses as well

Golden opportunity for Genting in US

Genting Malaysia Bhd may enjoy spillover benefits from New York governor Andrew Cuomo's plan to expand the state's gambling to private casinos.

Given Genting Malaysia's strong financial strength and good track record as the operator of the Aqueduct racino in Queens, New York, it is well-positioned to benefit from the potential gaming liberalisation in the state of New York.

According to Alliance Research analyst Cheah King Yoong, the New York state regulators' willingness to liberalise the gaming sector will offer Genting Malaysia a golden opportunity to expand its gaming operations in the United States.

On Wednesday, Cuomo unveiled New York's plans to increase revenue and boost tourism in upstate New York. Phase One of the plan includes three private casinos in upstate New York.

According to him, no casinos will be located in New York City, as the plan is to bring downstate New Yorkers and other visitors to upstate New York.

Upstate New York is the region north of New York City and is less densely populated compared to New York City and Long Island.

Cuomo's plan is an amendment to the state legislature's constitutional amendment last year, which had allowed as many as seven commercial casinos in New York.

While the constitutional amendment would still be valid, the number of casinos has been restricted to only three. The Phase One casino gaming plan will have to be resubmitted and approved by the Legislature this year.

Last year, Cuomo named Genting Malaysia as the state's partner to build a US$4bil (RM12.16bil) convention centre at Aqueduct Racetrack in Queens, New York, as an extension of its existing project - Resort World New York.

“Despite the toned-down proposal announced by Governor Cuomo, we remain optimistic that the willingness of the New York state regulators to liberalise the gaming sector will offer Genting Malaysia a golden opportunity to expand its gaming operations in the US,” Cheah said.

Meanwhile, PublicInvest Research was unexcited about the latest plan.

“After spending US$700mil in New York, it would have been a boon to be able to use the existing facilities for a full-scale casino, rather than spending more somewhere upstate,” said the research house.

Additionally, Genting Malaysia's existing Aqueduct racino is in Queens, which is downstate.

“If they were to bid for a casino licence in Phase One, and if they were to win it, it would mean another hefty investment,” the research house noted.

PublicInvest Research said the location was definitely less attractive compared to the existing Aqueduct location, given that it is less densely populated.

However, there are many uncertainties, as the constitutional amendment would still need to go through another round of legislative approval and voter referendum

January 10, 2013

DRB-HICOM to go private?

FIRST QUARTER TARGET: Tycoon Syed Mokhtar may make standalone offer, says source

KUALA LUMPUR: Tan Sri Syed Mokhtar AlBukhary may make a standalone offer to privatise DRB-HICOM Bhd, the country's biggest automotive company, people working on the plan said yesterday.

Business Times understands that the plan is being helmed by privately-held Meridian Solutions Sdn Bhd. Meridian is a unit controlled by Syed Mokhtar's top financial aide, Ooi Teik Huat.

The low-profile 53-year-old Ooi is one of the Syed Mokhtar's top backroom boys, who sits on the board of many companies in which the Kedah-born businessman has a controlling stake.

Ooi currently sits on the board of Malakoff and MMC Corp Bhd.
It is further understood that Hong Leong Bank Bhd and Public Bank Bhd are the two top banks working with Ooi on the privatisation.

"Hong Leong and Public Bank will help provide the financing for the exercise. It is scheduled to take place in the first quarter of this year," said the source.

Business Times was also told that DRB-HICOM could be taken private for between RM3.50 and RM4 a share, and that the exercise will be solely driven by Syed Mokhtar, who controls some 55 per cent of the company.

Syed Mokhtar, 61, could fork out as much as RM7.73 billion to take DRB-HICOM private.

The exercise comes barely a year after he bought Proton Holdings Bhd at RM5.50 a share or 24 times estimated earnings.
At RM4 a share, DRB-HICOM is valued at RM7.73 billion.

The stock closed at RM2.63 a share yesterday, giving it a market capitalisation of RM5.08 billion.

"None of the other shareholders are involved. It is a standalone bid as DRB-HICOM is severely undervalued. Its landbank itself has a net worth of RM10 billion," said the source.

Neither Syed Mokthar nor his representatives on the board of DRB-HICOM have briefed the board on the planned exercise.

"When they are ready with the money and the numbers tally, they will file in straight the offer to take DRB-HICOM private to the company secretary," said the source

January 9, 2013

NY proposal: Use casino money to fund NY campaigns

ALBANY, N.Y. — An innovative proposal expected in the New York Legislature would take some revenue from casino promoters and opponents who spend millions in campaign contributions and create a fund designed to reduce the influence of money in politics.
Good-government advocate Bill Samuels and Democratic state Sen. Liz Krueger said Monday that the money from the proposal expected to be introduced to the new Legislature would pay for voluntary public funding of campaigns and level the playing field for candidates, creating more competitive elections. They say it would also open politics to more people without depending on large contributions from special interests.
It may also be a unique way to channel gambling money. A dozen states use casino tax revenue most often for education, local governments, and the state general fund, according to the National Conference of State Legislatures. New Jersey uses some for financial assistance to the elderly and disabled, while Colorado and South Dakota target some for historic preservation, and Puerto Rico uses some for tourism.
New York's so-called "grand bargain" would seek to tap into an anticipated deluge of campaign contributions from supporters and opponents of the proposal to allow casinos on non-Indian land in New York. The call for a publicly paid, matching fund system, as in New York City, has grown louder nationwide after the U.S. Supreme Court allowed a freer hand for corporations and other well-financed interests to fund massive TV ad blitzes under the Citizens United decision in 2010.
"Where casino gaming interests in other states have become a force for some of the darkest excesses of post-Citizens United politics ... this unique, counterintuitive opportunity is a way forward on government reform that Governor Cuomo and my fellow legislators cannot ignore," said Krueger, a Manhattan Democrat.
The Legislature is expected to approve up to seven casinos off Indian land this year, subject to a voter referendum in the fall.
New York's proposal would use casino licensing fees to raise $56 million a year for matching funds for contributions to candidates under strict limits, but still leave $250 million to $1 billion that could be directed to education, as is now done with lottery revenues.
"Campaign finance reform is at the heart of changing a state Legislature that seems to be driven by four- and five-figure checks from special interests," said Samuels, founder of the New Roosevelts government reform group. "Getting money out of politics will usher in a new era where legislators can focus on the needs of the people they represent, and enable the election of a new generation of reform-minded individuals who, like Franklin Delano Roosevelt, see public service as a noble profession and not as a way to accumulate power and dole out favors to campaign contributors."
Cuomo and the Assembly's Democratic majority have supported voluntary public financing of campaigns as part of stricter fundraising and spending requirements, but the Senate's Republican majority has opposed public financing, saying that tax dollars must instead go to schools and other high priorities, especially in tough economic times.
Republicans who run the Senate with the Independent Democratic Conference were cool to the proposal idea Monday. GOP spokesman Scott Reif said any public funding should go to tax relief or underprivileged schools.
Cuomo said there are many expenses facing state government, including schools and relief for victims of Superstorm Sandy, but said public financing of campaigns should be part of an effort that includes lower donation limits.
Neither Cuomo nor Senate Republicans ruled out the casino idea.

DanaInfra Retail Sukuk, First Retail Sukuk in ETBS

As highlighted in September 2012 regarding Bond/Sukuk for Retail, DanaInfra Nasional Berhad will be the first issuer to the Exchange Traded Bond and Sukuk (ETBS). It will be listed and traded on Bursa Malaysia on 8th February 2013. This product is known as DanaInfra Retail Sukuk.
The size of DanaInfra Retail Sukuk is RM300 million with 10-year maturity date. The Sukuk is an infrastructure issuance to fund the initial tranche of the RM1.5bil for the first phase of the MRT Kajang to Sungai Buloh line.
The minimum profit rate for DanaInfra Retail Sukuk is 3.70 percent per year The final profit rate will be notified prior to listing date. Profit payment will be semi-annually and not taxable.
The table below is the key point of DanaInfra Retail Sukuk.

Issuer DanaInfra Nasional Berhad
Guarantor (principal or face value & profit) Government of Malaysia
Offer Size Up to RM300 million
Face Value RM100 per unit
Maturity Date  10 years
Profit Payment Frequency Semi-annually
Profit Rate Minimum 3.70 percent. Final value to be confirm on Issue Date
Listing  Bursa Malaysia under the ‘Loans and Bonds’ Board
Tax Incentive Tax exemption under Section 127(3A) Income Tax Act 1967
Minimum & Maximum Investment Minimum 10 units or RM1,000 & no maximum
How to buy Application form or via ATM machine & Internet Banking (Maybank, CIMB & RHB only)
Shariah Complience Yes
Eligibility 1. Malaysian citizen & at least 18 years old.
2. Corporation incorporated in Malaysia with Malaysian as majority share holder.
3. Superannuation, cooperative, foundation, provident or pension fund established in Malaysia.
Requirement CDS account & Trading account
Restriction on the holding period No restriction

If the DanaInfra Retail Sukuk is over-subscribed, the Issuer will conduct a ballot to determine the allocation to retail investors in a fair and equitable manner.
For those who are interested, you may subscribe via online banking before 18th January 2013 at 5pm. Tentative balloting date in 22nd January 2013.
More information information can be found at DanaInfra Nasional Berhad and Bursa Malaysia website.

Genting's Norwegian Cruise Line files for US IPO

Genting's Norwegian Cruise Line files for US IPO

LONDON: Norwegian Cruise Line Holdings Ltd, owned by Genting Hong Kong Ltd, Apollo Global Management LLC and TPG Capital, has filed for an initial public offering in the United States that may raise as much as US$424mil.

The company is offering 23.5 million shares for between US$16 and US$18 apiece, according to a filing yesterday. UBS AG, Barclays Plc, Citigroup Inc, Deutsche Bank AG, Goldman Sachs Group Inc and JPMorgan Chase & Co are among the sale managers.

The proceeds will be used to redeem or prepay outstanding debt, according to the filing to the US Securities and Exchange Commission.

It didn't mention dates for the IPO.

The cruise liner, which said all its ships were modern and built after 1998, reported revenue of US$2.26bil for the 12 months ending September, according to the filing.

After the listing, Genting, Apollo and TPG will together own about 88% of the company's ordinary shares, according to the filing. Bloomberg

Danalnfra Nasional Berhad IPO

Mrt sukuk(伊斯兰债券)发表

"Bahawa Dewan ini mengikut peruntukan subperenggan 8(3)(a)(iv) Akta Tatacara Kewangan 1957 [Akta 61], mengambil ketetapan bersetuju supaya Kerajaan melalui Menteri Kewangan (Pemerbadanan) membuat pelaburan dengan memperoleh sejumlah 10,000,000 unit saham biasa Danalnfra Nasional Berhad, sebuah syarikat yang dimiliki sepenuhnya oleh Menteri Kewangan (Pemerbadanan) pada nilai RM1 bagi satu unit saham."

January 8, 2013

AirAsia to launch Tune Insurance IPO

The founders of Malaysia’s AirAsia Bhd are expected to launch a 65 million initial public offering (IPO) of Tune Insurance Bhd by the end of February, two sources close to the deal told Reuters.

The flotation would be the first of three IPOs due to raise a combined 500 million that Tony Fernandes and Kamarudin Meranun, founders of Asia’s largest budget carrier, are planning this year.

“An investor road show will begin towards the end of this month,” one of the sources said, declining to be named as the matter is still private. Tune Insurance officials were not immediately available to comment.

The company, a unit of financial services-to-discount hotel conglomerate Tune Group owned by Fernandes and Kamarudin, is looking at a market capitalisation of RM1.2 billion upon listing, the sources said.

The IPO, comprising 210 million shares, will help to fund Tune Insurance’s expansion plans in the underinsured Southeast Asia region, Fernandes told reporters last September.

RHB Investment Bank is the principal adviser for the IPO. CIMB Group Holdings Bhd, CLSA, ECM Libra Financial Group Bhd and RHB are the joint book runners

January 5, 2013

GFMS: Silver Prices to Climb 38% in 2013

The world's most respected precious metals consultancy, Thompson Reuters GFMS, came out last month with its 2013 forecast for silver prices.

After being bearish on silver prices over the past few years, GFMS has come around and predicted a good year for silver investors in 2013, with gains as high as 38%.

Philip Klapwijk, global head of metals analytics for Thomson Reuters GFMS, said "a rebound in investment demand stemming from continuing loose monetary policies is expected to drive silver prices towards and possibly over $50 during 2013."

Klapwijk said buyer interest may not match that of 2011, but it will rise compared to 2012.

"We wouldn't be surprised also if silver's gains outpaced gold's, not only as the usual result of lower liquidity but also as memories of early 2011's painful losses (in silver) continue to fade," said Klapwijk.

Here's why silver could be the precious metals star of 2013.

Silver Prices in 2013

Overall, GFMS says, demand for silver in 2012 broke down as follows: 43% from industrial users, 30% from investment demand, 21% from the manufacture of jewelry and silverware, and the remainder from photography and producer de-hedging, or closing out positions that had been used as a hedge.

In 2013, GFMS sees industrial demand being a bigger factor of higher silver prices.

Another is, of course, investment demand. Through Nov. 23, holdings in silver exchange-traded funds totaled 623 million ounces. That's up 47 million ounces from the 2011 year-end figure.

Besides "the persistence of ultra-low interest rates" driving investment demand, Klapwijk also cites demand from emerging markets as a factor.

"In China, for example, jewelry demand is growing at a double digit rate," he said.

GFMS also expects further producer de-hedging - unwinding positions used as a hedge - next year. This continues the trend from 2012, when GFMS says producers de-hedged roughly 10 million ounces of silver. Klapwijk said "producers continue to deliver into outstanding positions faster than they are replaced."

Money Morning Global Resources Specialist Peter Krauth is even more bullish than GFMS.

Krauth said he's expecting silver prices - at $32.55 in New York today (Thursday) - to climb to $54 an ounce in 2013.

Among the reasons Krauth cited for higher silver prices include the re-election of U.S. President Barack Obama, the gold/silver ratio and demand from both investors and industry.

How to Cash in On Higher Silver Prices

Several ETFs give investors a chance to try to cash in on higher silver prices.

One of the best ETFs is the iShares Silver Trust (NYSE: SLV).

With some $5.5 billion in assets, SLV is the world's largest silver-backed ETF, using JPMorgan Chase & Co. (NYSE: JPM) in London as its custodian. SLV shares, which represent approximately 1.0 silver ounce each, are easy to buy and sell through your brokerage account.

Investors should also consider the Sprott Physical Silver Trust ETV (NYSE: PSLV). Sprott actually allows investors to redeem the units in the exchange for physical silver bullion. The physical bullion that backs the fund is held in Canada - away from the potentially grasping hands of Washington, but still in a market that protects property rights and that's easy for you to physically access.

January 4, 2013


Bumitama http://www.bumitama-agri.com/
FirstRes http://www.first-resources.com/
Kencana Agri  http://www.kencanaagri.com/
GoldenAgri http://www.goldenagri.com.sg/
IndoAgri http://www.indofoodagri.com/
Mewah http://www.mewahgroup.com/
TSH http://www.tsh.com.my/
SOP http://www.sop.com.my/
CBIP http://www.cbip.com.my/
JAYA TIASA HOLDINGS BHD http://www.jayatiasa.net/usr/page.aspx?pgid=8
MKH http://mkhberhad.com/
INNOPRISE PLANTATIONS BERHAD http://innoprise.com.my/
MBL http://www.mbl.com/

Novo Group
Geo Energy
Swiber Swiber http://www.swiber.com/
Interra http://www.interraresources.com/
Ezion http://www.ezionholdings.com/
Noble Grp http://www.thisisnoble.com/?device=desktop
Kreuz Kreuz http://www.kreuzsubsea.com/
Ezra ://www.ezraholdings.com/
TechOil&Gas http://www.technicsgrp.com/
CYPARK http://www.crbenv.com/
BOILERMECH http://www.boilermech.com/

奥兰国际 http://olamonline.com/
MISC http://www.misc.com.my/

OLDTOWN http://www.oldtown.com.my/v1/
CCK http://www.cck.com.my/
POWER ROOT http://www.powerroot.com/
COCOALAND http://www.cocoaland.com/
GCB http://gcb.my/
CARLSBERG http://www.carlsberg.com.my/
JOHORE http://www.johoretin.com.my/
DUTCH LADY http://www.dutchlady.com.my/en/home.asp
DKSH http://www.dhmb.com.my/
SuperGroup http://www.super.com.sg/
Petra Foods Petra http://www.petrafoods.com.sg/
Thai Beverage http://www.thaibev.com/
Etika http://www.etika-intl.com/
Consciencefood http://consciencefood.com/
BreadTalk http://www.breadtalk.com/
ABR Hldgs ABR 控股 http://www.abr.com.sg/
大众食品 http://www.peoplesfood.com.sg/
UniFood http://www.unitedfood.com.sg/
Yamada http://www.yamada-green.com/
QAF http://www.qaf.com.sg/
Dukang 杜康
Viz Branz
Neo Group

AEONCR http://www.aeonmalaysia.com.my/acs/

AMWAY http://www.amway.my/?lng=ZH
HAIO http://www.hai-o.com.my/
ZHULIAN http://www.zhulian.com/

INARI http://www.inariberhad.com./
JCY http://www.jcyinternational.com/
佳杰科技 http://www.ecs.com.sg/index_n.php

REDTONE http://www.redtone.com/
DIGI http://www.digi.com.my/landing.do
TM http://www.tm.com.my/Pages/Home.aspx
M1 http://www.m1.com.sg/M1/site/M1Corp/

HARTA http://www.hartalega.com.my/
TOP GLOVE http://www.topglove.com.my/
SUPERMAX http://www.supermax.com.my/
CAREPLUS http://www.careplus.com/
KOSSAN http://www.kossan.com/

COASTAL http://www.coastalcontracts.com/
Otto Marine http://www.ottomarine.com/
Mencast http://mencast.listedcompany.com/home.html
Nam Cheong http://www.namcheong.com.my/

STX PanOcean STX泛洋 http://www.stxpanocean.com/Eng/default.aspx
MAYBULK http://www.maybulk.com.my/

MapleTreeLog http://www.mapletreelogisticstrust.com/cn/index.aspx
LippoMalls http://www.lmir-trust.com/
First REIT
AscendasIndT http://www.ascendas.com/
PAVILION http://www.pavilion-reit.com/Web/Home.aspx

HIAP HUAT http://www.hiaphuat.com/
Hyflux http://www.hyflux.com/

SCOMI ENGINEERING http://www.scomiengineering.com.my/core/energy_intro.asp
IJMLAND http://www.ijm.com/web/
YOMA http://www.yomastrategic.com/
成荣集团 http://www.mudajaya.com/

Q&M Dental
IHH http://www.ihh-healthcare.com/

Raffles Edu http://www.raffles-education-corporation.com/
SEG http://www.segi.edu.my/

SCIENTEX http://www.scientex.com.my/
TOMYPAK http://www.tomypak.com.my/
ADVENTA http://www.adventa.com.my/
CANONE http://www.canone.com.my/
DAIBOCHI http://www.daibochiplastic.com/

新航 http://www.singaporeair.com/SAA-flow.form?execution=e2s1
亚洲航空 http://www.airasia.com/my/en/home.page
AIRPORT http://www.malaysiaairports.com.my/
BRAHIMS http://www.tamadam.com/

PADINI http://www.padini.com/
BONIA http://www.bonia.com/
F J Ben http://www.fjbenjamin.com/
Eratat http://www.eratatgroup.com/v2/

AEON http://www.aeonretail.com.my/
PARKSON http://www.lion.com.my/WebCorp/phb.nsf/Intro
Epicentre http://www.epicentreasia.com/sg/
AUSSINO http://www.aussino.com/

华阳 http://www.huayang.com.my/
马星 http://www.mahsing.com.my/home.php
UEMLAND http://www.uemland.com/

HOMERITZ http://www.homeritzcorp.com/

TOYOTA http://www.toyota-global.com/showroom/vehicle_gallery/

Trading Stocks - Perisai | Genting Malaysia | Kimlun | China Ouhua Winery | Tan Chong Motor | Asas Dunia | DKSH | WCT

Perisai's rally may resume after the stock's firm close yesterday. A position can be initiated if it stays above RM1.10, with a close below RM1.06 as a stop-loss. The price target is RM1.35, with selling also anticipated at RM1.25. The stock's failure to get above RM1.15 will likely see it drift sideways, with strong support at RM1.00.
GenM's rebound may begin anew after the stock closed at its highest in more than 2 months yesterday. A purchase can be made if it stays above RM3.60, with a close below RM3.52 as a stop-loss. The price target is RM3.95, should the recent high of RM3.80 be broken. Failure to stay above RM3.60 could see the stock trend lower, with strong support expected at RM3.35.
Kimlun may climb higher if it can break the RM1.45 resistance level. A purchase can be made if the stock closes above RM1.45, with a close below RM1.37 as a stop-loss. The price target is RM1.70, with selling also expected at RM1.55. Failure to break above RM1.45 will likely see the stock trend sideways, with strong support seen at RM1.30.
CnOuhua may rebound after holding above the RM0.10 support level for a few weeks now. A purchase can be made if the stock closes above RM0.12, with a close below RM0.11 as a stop-loss. The price target is a prior low of RM0.17, if the recent high of RM0.14 is broken. The stock may decline if it fails to get above RM0.12, with selling expected to intensify if it closes below RM0.10.
TChong should continue to trade higher after closing at its highest in more than 52 weeks yesterday. A purchase can be made if the stock stays above RM4.70, with a close below RM4.50 as stop-loss. The price target is RM5.35, with selling expected at RM5.00. Failure to stay above RM4.70 will likely see the stock trade sideways, with further support seen at RM4.35.
Asas may rebound if it can breach the RM1.50-psychological level. A position can be initiated if this happens, with a close below RM1.40 as a stop-loss. The price target is RM1.80, with selling also anticipated at RM1.68. Failure to break above RM1.50 could see the stock trend lower, while further support is expected at RM1.30.
DKSH should continue to rise after closing at its highest in more than 10 years. A purchase can be made if it stays above RM2.30, with a close below RM2.15 as a stop-loss. The price target is RM3.00, with selling also expected at RM2.70. Failure to stay above RM2.30 will likely see the stock drift sideways, with further support at RM2.00.
WCT may decline after closing at its lowest in more than 3 months yesterday. A trader may liquidate if the stock closes below RM2.30, with supports anticipated at RM2.15 and RM2.00. On the other hand, failure to close below RM2.30 could see the stock move higher. Expect strong resistance at RM2.45.

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