AMMB launches Asia Water Fund

KUALA LUMPUR: AMMB HOLDINGS BHD []'s wholly-owned private equity management arm has in conjunction with the International Finance Corporation (IFC) and the Asian Development Bank (ADB) launched an offshore private equity fund, named as Asia Water Fund LP, which invests in the water sector across Asia, primarily in China.

It said on Monday, April 18 that the fund was organized as an exempted limited partnership domiciled in the Cayman Islands.

'At its first closing, the fund had secured commitments from investors, including IFC, ADB, Kumpulan Wang Persaraan (Diperbadankan) and AmInvestment Group Bhd (AIGB), totalling US$69 million,' it said.

AMMB said AIGB's wholly-owned unit, Malaysian Ventures Management Incorporated Sdn Bhd, had acquired a 100% shareholding in AmAsia Water Management (GP) Limited (AmAsia Cayman), a company incorporated in the Cayman Islands.

It said AmAsia Cayman was the general partner of the fund and was empowered to manage, by itself or through duly appointed agents, the activities and operations of the fund.

AMMB said the the Asia Water Fund would invest 70% of its portfolio in China, and 30% in South East Asia.

The portfolio would be diversified into municipal water supply and wastewater treatment, industrial water supply and waste disposal, desalination, river and lake rehabilitation, rural water and waste treatment and other green water ventures, it said.

Besides capitalising on the investment potential of such projects, most of the projects in the fund will have demonstration effects on how the confluence of TECHNOLOGY [], deal structuring and financial engineering can potentially resolve the problem of lack of financing for good projects in the Asian countries, it said.

AMMB said the Asia Water Fund would continue fund raising until the end of 2011, and will also be inviting Japanese institutional investors to invest in the fund.

'We are targeting to increase the final fund size to up to US$200 million,' it said.

It said that AmWater, the fund manager, had its headquarters in Singapore, and would establish a subsidiary in Shanghai in the next few months.

'The company is also pleased to announce that it is reviewing various water projects in China and South East Asia at the moment, and is working towards completing its first investment in the next six months,' it said.

Zhulian 1Q net profit slips 14.2% to RM21.3m

KUALA LUMPUR: Costume jewellery and consumer products manufacturer Zhulian Corp Bhd's earnings fell 14.2% to RM21.30 million in the first quarter ended Nov 30, 2010 from RM24.84 million a year ago.

It said on Monday, April 18 that revenue was flat at RM86.22 million compared with RM86.33 million a year ago. Earnings per share were 4.78 sen compared with 5.42 sen.

The company reported cash and cash equivalent of RM133.14 million as at Nov 30, 2010.

'The revenue for the current quarter under review of RM86.223 million was higher than the immediate preceding quarter's revenue of RM84.896 million, mainly due to the increase in market demands for both local and overseas markets, offset by the increase in foreign currency loss.

'The current quarter's profit before tax of RM27.476 million has dropped as compared to the immediate preceding quarter's profit before tax of RM29.822 million, mainly due to the drop in gross profit margin as a result of strengthening of ringgit Malaysia against the US dollar,' it said.

Ken Holdings 1Q net profit surges to RM5m

KUALA LUMPUR: KEN HOLDINGS BHD []'s earnings surged to RM5.07 million in the first quarter ended March 31, 2011 from RM1 million a year ago.

It reported on Monday, April 18 revenue jumped 500% to RM19.55 million from RM3.26 million. Earnings per share were 5.55 sen compared with 1.07 sen.

It had cash of RM41.64 million as at March 31, 2011.

'The revenue for the current quarter at RM19.6 million was higher compared to the preceding year corresponding quarter.'' The profit before tax for the current quarter at RM6.8 million was higher than the preceding year corresponding period of RM1.4 million due mainly to higher revenue recorded for the current quarter,' it said.

Ken said the Group's project in Shah Alam, Selangor, the mixed residential/commercial development consisting of Ken Rimba Legian's double storey link houses together with Ken Rimba Commercial Centre consisting of shop/office units are progressing on schedule.

Maybank gets SC nod for proposed US$2 bln debt notes plan

KUALA LUMPUR: MALAYAN BANKING BHD [] has received the Securities Commission's approval to undertake a multi-currency medium term notes (MTN) programme totaling US$2 billion.

It said on Monday, April 18 the MTN programme would enable it to issue senior and/or subordinated notes in currencies other than in ringgit at any time, provided the aggregate amount of outstanding notes does not exceed US$2 billion in nominal value.

The MTN programme would provides flexibility to Maybank to issue notes from time to time through its Hong Kong branch and/or its Singapore branch.

'The proceeds from each issuance of notes will be used for Maybank's working capital, general banking and other corporate purposes,' it said.

UM Land, Singapore's Raffles Campus plan RM35m campus in Malaysia

KUALA LUMPUR: UNITED MALAYAN LAND BHD []'s unit Seri Alam PROPERTIES [] Sdn Bhd is teaming up with Singapore's Raffles Campus Pte Ltd to undertake a RM35 million campus in Iskandar Malaysia.

The MoU, which was signed on Monday, April 18, is to form a joint venture company to build the Raffles International School in Bandar Seri Alam. It will be managed and operated by Raffles as its first campus in Malaysia.

The parties will acquire 15 acres of freehold land within Bandar Seri Alam and develop it into an international school to be tenanted to Raffles''on a long term lease.

'The cost of developing the bare campus and land purchase are estimated to be in the region of RM35 million. The development of the campus will span into two or three phases over a four to five year period, with its projected first student intake by end of 2013,' it said.

FBM KLCI pares down gains

KUALA LUMPUR: The FBM KLCI rebounded on Monday, April 18 and briefly surpassed the 1,530 point-level before paring down some of its gains.

Regional markets mostly retreated on renewed nervousness ahead of quarterly earnings results and lingering worries about indebted euro zone countries.

Sarawak-based companies were in focus today after the weekend state election that saw Barisan Nasional retain its two-thirds majority to continue governing the state.

At 5pm, the benchmark index was up 5.98 points to 1,527.92, lifted by gains including at Genting, YTL Corp, CIMB and Gamuda.

The index had earlier risen to its intra-day high of 1,533.18.

Gainers led losers by 445 to 277, while 287 counters traded unchanged. Volume was 1.03 billion shares valued at RM1.49 billion.

At the regional markets, Hong Kong's Hang Seng Index fell 0.74% to 23,830.31, Japan's Nikkei 225 lost 0.36% to 9,556.65, Singapore's Straits Times Index was down 0.28% to 3,133.38, South Korea's Kospi shed 0.13% to 2,137.72 and Taiwan's Taiex edged down 0.04% to 8,714.48.

Meanwhile, the Shanghai Composite Index gained 0.22% to 3,057.33.

On Bursa Malaysia, F&N was the top gainer today and rose 68 sen to RM16.96; Genting was up 34 sen to RM11.14, Tahps 33 sen to RM4.83, Hong Leong Bank 20 sen to RM10.50, Coastal Contracts 19 sen to RM3.44, YTL Corp 18 sen to RM7.90, Gamuda 14 sen to RM3.83 and CIMB seven sen to RM8.30.

Among the Sarawak-based stocks, Ta Ann rose 22 sen to RM6.33, HSL 16 sen to RM1.79, CMSB 11 sen to RM2.37, Subur Tiasa and Naim Holdings seven sen each to RM3.20 and RM2.99, Jaya Tiasa six sen to RM6.35 and Encorp three sen to 85 sen.

Radio frequency identification (RFID) solutions provider Smartag Solutions Bhd, which made its debut on Bursa Malaysia today, was the most actively traded counter this morning.

The stock rose seven sen to 38 sen with 124.5 million shares done.

Other actives included DBE Gurney, Karambunai, CIMB, Focus, Axiata, Ramunia and MAA.

Decliners included Aeon, BAT, PPB, Shell, Warisan, MPI, UMW and IOI Corp.

Ken Holdings, UTAR make foray into green technology

KUALA LUMPUR: KEN HOLDINGS BHD [] is teaming up with Universiti Tunku Abdul Rahman (UTAR) to work together to develop green TECHNOLOGY [].

Ken Holdings said on Monday, April 18 it had signed an MoU with UTAR to undertake joint collaborative research, share expertise and joint development on green technology.

'With the knowledge, hands-on experience and technical expertise in green initiatives and innovations, Ken Holdings' collaboration with UTAR will bring forth value added contributions in research, share expertise and joint development of research in green technology for the Malaysian CONSTRUCTION [] industry,' it said.

Ken Holdings said the MoU would involve joint projects involving international collaborative research and to share expertise and joint development of research.

Mercedes-Benz Malaysia car sales up 12.6% to 1,226 units in 1Q

KUALA LUMPUR: Mercedes-Benz Malaysia sold 1,226 passenger cars in the first quarter ended March 31, 2011, which was a 12.58% increase from the 1,089 units sold a year ago.

MBM said on Monday, April 18 this was a 'noteworthy milestone' as the best first quarter performance since 2003.

'Leading the charge, the Mercedes-Benz E-Class posted a 25% increase in the first three months of 2011 while cementing its position as one of the most preferred choices in its segment,' it said.

The increase in the sales was underpinned by strong customer demand especially from the business community for its superior comfort, elegance and power.

Mercedes-Benz Malaysia said the E-Class remained the marquee's top model delivering 547 cars within that period, spearheaded by the E250 variant.

As for the Mercedes-Benz B-Class units, it recorded a 125% increase with 70 units sold in 1Q 2011 compared to a year ago.

The Mercedes-Benz C-Class also recorded 519 units sold in 1Q 2011. The fuel-efficient C200 and CGI C250 Blue Efficiency variants as well as the C300 Avantgarde AMG Sports Package introduced in 2010 buoyed the strong demand.

Mercedes-Benz Malaysia president and chief executive officer Roland S. Folger the demand for the cars in the first quarter of 2011 mirrored its expectations for another positive performance for the rest of the year.

He said the B-Class has performed exceptionally well while the E and C-Class have maintained their status as the stars of its fleet.

'The continuing overall positive sentiment in the market has certainly been an encouraging influence on the automotive industry including on Mercedes-Benz Malaysia. Early on in the year, we proactively implemented strategies to support a more robust marketplace and higher consumer demand by stepping up production at our plant in Pekan.

'The resultant reduction in waiting period boosted sales of the C and E-Classes and contributed to our sales performance,' he added.

Mercedes-Benz's flagship, the S-Class recorded 68 units sold while the Mercedes-Benz R-Class sports tourer increased 22% while the M-Class continues to generate strong interest from premium SUV enthusiasts.

As for the commercial vehicle segment, the Mitsubishi FUSO trucks led MBM's commercial vehicle segment with an 11% increase in sales at over 460 units.

Global performance

Globally, Mercedes-Benz posted a double-digit growth in the first quarter of 2011 with a sales increase of 12.7% at 280,552 units worldwide (1Q 2010: 248,958 units).

The growth was particularly dynamic in China including Hong Kong), where sales rose to a record level of 42,990 units (1Q 2010: 24,127) up by 78.2% -- the highest recorded by any premium brand in China.

Mercedes-Benz also set new quarterly records in the BRIC countries of Russia (up 86.4%) and India (up 37.0%), while sales were up by 41.6% in Brazil. High growth rates were also achieved in Taiwan (up 74.5%), South Korea (up 16.8%) and Australia (up 16.9%).

The brand's second-largest market, the US saw a total of 53,346 car delivered to customers in 1Q 2011 (1Q 2010: 49,229), representing an 8.4% increase. Mercedes-Benz also achieved a new sales record in Canada, with 6,133 units sold in the first three months of the year.

In Germany, Mercedes-Benz maintained its leading premium brand position with 49,318 units (1Q 2010: 49,245). Sales in Western Europe (excluding Germany) totalled 73,261 units (1Q 2010: 70,472), up 4% on 1Q 2010.

Sales particularly increased in the UK (up 16.1%), Belgium (up 24.2%), the Netherlands (up 15.0%), and Sweden (up 30.6%).

The S and E-Class recorded 16,869 units and 78,570 units delivered respectively. The new CLS recorded'' a 148.6% increase in sales while SUV sales reached a new record of 54,958 units (up 33.2%).

The B-Class recorded a 32.4% increase in sales from a year ago. Sales of the facelifted smart fortwo also rose during the first quarter, totaling 24,981 units (1Q 2010: 22,753), up 9.8% on-year.

Axiata slips on spectrum renewal fee concerns

KUALA LUMPUR: Shares of Axiata Group Bhd fell in active trade in late afternoon on Monday, April 18 on worries about the issue of spectrum renewal fee for Robi Axiata Ltd in Bangladesh.

At 3.27pm, it was down four sen to RM3.27 with 11 million shares done.

The FBM KLCI rose 6.84 points to 1,528. Turnover was 740.73 million shares valued at RM966.88 million. There were 450 gainers, 233 losers and 254 stocks unchanged.

RHB Research said the issue of spectrum renewal fee for Robi and the rest of the mobile operators continued to overhang. The exact amounts for the fees have not yet been determined, though at present it could be about US$400 million.

Hence, it said that Axiata did not rule out a cash call from Robi. 'Nonetheless, management hopes to see a resolution in June, given that the licences expire in November,' it said.

On Axiata's operations, RHB Research said it expected Celcom's revenue growth to moderate towards mid-single digit in FY11.

'So far, we gather from management that competition has been rational despite YTL Communications' aggressive marketing,' it said.

RHB Research said it still liked Axiata, which offers growth prospects albeit moderating this year.

'We see highest regulatory risks in Bangladesh, which could shave off 16 sen from our fair value. Maintain our SOP fair value of RM5.75, but upgrade to Outperform due to recent share price weakness,' it said.

IOI Corp falls to lowest since Sept last year

KUALA LUMPUR: Shares of IOI Corp fell to a low of RM5.28 in late afternoon trade on Monday, April 18, which was the lowest since Sept 1, 2010.

At 3.50pm, it was down 13 sen to RM5.28 with 8.40 million shares done.

The FBM KLCI rose 5.62 points to 1,527.56. Turnover was 809.16 million shares valued at RM1.07 billion. There were 414 gainers, 266 losers and 272 stocks unchanged.

The most recent development involving IOI was its acquisition of a 49.9% interest in the South Beach project in Singapore through a restructuring exercise.

To recap, recently IOI bought a 33.3% stake in the project from Elad Group Singapore Pte Ltd for S$174 million (RM417 million).

Subsequently, IOI had injected the 33.3% stake into Scottsdale PROPERTIES [] Pte Ltd. Scottsdale Properties now owns 100% of South Beach. IOI then paid S$115 million (RM276 million) for a 49.9% stake in Scottsdale and will advance S$28 million as a shareholder's loan. The other 50.1% shareholder of South Beach is City Developments Ltd (CDL).

AmResearch said:'' 'In total, we estimate that IOI paid S$317 million (RM761 million) for a 49.9% stake in the South Beach project. Previous reports had speculated that IOI would pay between S$170 million and S$175 million for a 33.3% stake in South Beach."

The research report said IOI and CDL may be required to further contribute equity of S$500million each to redeem existing mezzanine notes of the project, working capital and part-finance the CONSTRUCTION [] of South Beach. IOI's investment in the South Beach project has so far cost S$817 million (RM2 billion).

'We believe that IOI would be raising funds to finance its investment in South Beach. The group's net gearing stood at 8% as at end-June 2010. Net debt amounted RM876million while gross cash and short-term investments totalled RM3.9 billion,' AmResearch said.