Axiata financial result, proposed dividend of 10sen

• A first DPS of 10sen (32% payout) has been proposed payable after its AGM in 2Q11.
• Celcom has opted to accelerate its USP provision over 3 years compared to 8 years previously which gave rise to the exceptional RM111m charge in its books for 4Q10. Management has guided for another RM79m of the same to booked in FY11.
• Management estimates a RM30-40m negative revenue impact over the next 2 years from the proposed cut in Malaysia and Singapore roaming tariffs. On the re-farming of the 900MHz spectrum, Axiata indicated that negotiations are on-going and the cost to ‘re-farm’ could come in lower than the RM1bn guided previously. It would be significant impact should more than 5MHz of its current 15MHz be re-farmed. 
• On Digi’s aggressive focus on the Malay and youth segments, management said that its target for 2011 would be to capture the urban Chinese and English speaking segments with a new promotion to be launched next month. 
• Celcom expects to maintain voice revenue and EBITDA margin in the mid-40s for FY11.
• FY10 capex came in at RM2.76bn which was below the earlier guidance of RM3.6bn as some spending was deferred into FY11. Of the capex guided for this year, RM900m-RM1bn will be allocated for Celcom, RM1.7bn (XL), Dialog (RM300m) and Robi(RM400m).
• Impairment charge on Idea which contributed to the headline loss in 4QFY10. 
• Target price RM5.83

Transmile faces suspension and delisting

• Transmile faces suspension and delisting from 3 March and 7 March respectively for failing to submit a regularization plan to the Securities Commission or Bursa Malaysia for approval by 22 Feb. It had until 2 March to submit an appeal to Bursa.

TWS to demolish assets for multi-billion-ringgit commercial development

• Tradewinds Bhd plans to demolish two of its prized assets in Kuala Lumpur to make way for a "multi-billion-ringgit" mixed commercial development. 
• Crowne Plaza Mutiara Hotel and Kompleks Antarabangsa, both located on Jalan Sultan Ismail, will make way for a new property project. The plan is in the advanced concept stage and could take more than a year to start.

PLUS gets approval from shareholders for UEM-EPF offer

• The following proposals were approved at the EGM yesterday:

1. Disposal of its entire business, including all assets and liabilities to UEM-EPF for RM23billion (or RM4.60/share)
2. Proposed distribution of cash proceeds from the disposal to shareholders.

• Press reported that some 100 disgruntled shareholders marched out of the EGM and called for a boycott of the meeting. Despite the incident, both resolutions were approved by minority shareholders. Khazanah and EPF, which collectively own 67.4% in PLUS, were not allowed to vote.

SATANG awarded RM8 million contract from Navy

• The RM8 million contract from the Ministry of Defence Malaysia, for the supply of spare parts and maintenance, repair and overhaul of life raft and life jacket for the Royal Malaysian Navy. 
• The three years contract is expected to contribute positively to the earnings and net assets of the Group for the financial year ending Sept 30, 2011 and beyond. Commencing from the date of acceptance.

MRCB & EKOVEST in JV for River of Life Project

• Ekovest–MRCB JV has received a Letter of Intent (LOI) from the Government for the River of Life Project. 
• It indicates the intention of the Government to obtain the services of the Ekovest-MRCB JV as the Project Delivery Partner (PDP) for the Project, an Entry Point Project (EPP) identified in the Greater Kuala Lumpur/Klang Valley National Key Economic Area (NKEA) under the Economic Transformation Programme (ETP).
• The entire project, which largely involves the clean up and development of the Klang river, is estimated to be worth around RM8bn-RM10bn, with Phase1 estimated at RM1bn-RM2bn. The JV to take the lead in undertaking Phase 1 coupled with partial involvement for the remaining phases.
• The project will definitely enhance MRCB’s future orderbook and earnings. Target price RM2.58.

RHB net profit up 18%, proposed dividend of 21.38sen

• Net profit for the fourth quarter ended Dec 31, 2010 increased 12.7% YoY to RM380.7mil from RM453.2mil previously.
• Final dividend of 21.38 sen, making total for the year at 26.38 sen.
• Earnings boosted by net interest income and low provisions but was partly offset by impairment loss on other assets.

 RHBCAP : Target price  RM9.56

TM & Axiata collaborate on fixed and mobile convergence solutions

• TM signed a MoU with Celcom Axiata for collaboration in providing complete fixed and mobile solutions to Malaysian consumers. The MoU collaborate on a range of services including:

1. HSBB Access, HSBB Transmission and Internet Connectivity Services for Celcom subscribers;
2. Digital Subscriber Line (DSL) services for Celcom subscribers;
3. Fiber Network System via Wholesale Long Term Lease for Celcom’s network; and
4. Mobile Virtual Network Operator (MVNO) services for TM.

• The MOU will be valid for a year, but Axiata and TM will endeavour for definitive agreements within 2 months.
• Positive that the partnership between Axiata and TM would benefit both companies and result in significant cost savings for both parties as Celcom would be able to address its mobile backhaul requirements and offer fixed-services to the Household via HSBB Access while TM would benefit from additional wholesale and HSBB Access revenues while being able to offer mobile services (as an MVNO). This would lead to a converged mobile and fixed services offering for both parties.

Malaysia Airport to venture into China

• MAHB has reached another milestone to enter China with the signing of a joint cooperation agreement (JCA) with Nagamas Enterprise Hong Kong Ltd. 
• The JCA will allow MAHB to help Nagamas Enterprise, a unit of Malaysia's Nagamas International, develop and expand a small airport in Yongzhou City in Hunan province.

BAT net profit increased 5.7% & declared RM0.63 dividend

• BAT net profit for the fourth quarter ended Dec 31, 2010 rose 5.7% to RM182.72 million from RM172.86 million.
• The earnings arising from lower financing costs due to better bond rates obtained in 2009, lower tax expense for year of assessment 2009 and higher utilisation of reinvestment allowance.
• BAT declared a third interim dividend of RM0.63 per share, tax exempt under the single-tier tax system, amounting to RM179.88 million for FY2010.

Maybank stronger earnings & attractive dividend

• Reported a 14.8% YoY increase in 1HFY11 earnings, while 2QFY11 earnings were up 9.4% QoQ. Loan loss provisions declining 55.6% QoQ.
• Declared a net dividend per share of 21 sen, (cash 3 sen & a re-investment electable portion of 18 sen). This translates into an attractive net dividend payout of 71.4%. Maybank will continue with its dividend reinvestment plan, its average net dividend payout ratio is likely to come in above the guided 40%-60% pure cash dividend payout guidance.
• Currently evaluating proposals on how best to reduce its stake in Bank Internasional Indonesia (BII) to 80% by June this year. The Indonesian market regulator has given it until June to meet a 20% free float requirement for BII. 
• Maybank, which held about 97.5% of BII, has already managed to sell less than 1% in the market and is also looking at undertaking private placements.

MAYBANK : Target Price RM10.07

METROK to acquire plantation land in Kalimantan

• Metro Kajang is in negotiations to acquire 20,000ha of plantation land in East Kalimantan.
• They have signed a silent term MoU with a local land owner last week. (pricing still being discusses),
• The acquisition could double the size of its current plantation land bank which measures about 16,000ha.
• Expect the plantation division to contribute about 20% to total revenue in FY12 onwards.

Possible takeover between IGB and KASSETS

• KrisAssets Holdings Bhd, the owner and operator of Mid Valley Megamall, is believed to be buying The Gardens Mall developed by IGB Corp in a deal estimated to be close to RM1 billion.
• KASSETS to operates like a real estate investment trust & a new opportunity for recurring income. 
• Both counters requested for suspension from 2.30pm yesterday and on Monday February 14, pending the announcement of a proposed material transaction.
• The Gardens Mall, together with 4,300 parking bays, a net book value of RM594.04 million. The property is on leasehold until 2103.
• The Mid Valley Megamall valued at RM1.85 billion. 

Supermax: FY2010 end net profit 168.163 million (increased 32.85%)

• Earnings rose 32.8% from RM126.58 million to RM168.16 million while revenue increased 14.8% from RM803.63 million to RM932.25 million.
• Announced Interim Tax Exempt Dividend of 5%.

Deadline for POS bidder today, Syed Mokhtar front runner

• There are likely to be 4-5 consortium bidding for POS such as:

1. Tan Sri Syed Mokhtar’s consortium,
2. Sapura Group, which has tied up with Deutsche Post,
3. Scomi Marine Bhd with an European Postal group, 
4. 2 other groups led by individuals

• At closing price of RM3.35 per share last Friday, the 32.21% stake would be worth as much as RM579.54 million.
• Key criteria for the potential buyer would be one with strategic fit to transform Pos & possess strengths in retail and courier segments other than conventional postal services. 
• Syed Mokhtar seen as the front runner in the bid. Already owns Bank Muamalat, they can establish an immediate tie-up to provide a full banking services like an actual bank with its own banking staff.
• Previously, Pos has tied-up with Maybank and RHB to offer a limited range of banking services. 
• There is also speculation that Syed Mokhtar may also take DRB-Hicom private.