F&N appoints new CEO

KUALA LUMPUR: Fraser & Neave Holdings Bhd (F&N) has appointed Datuk Ng Jui Sia as its chief executive officer with effect from Aug 1, 2010.

The group said on Friday, July 30 that Ng, 58, joined the F&N Group in 1995 and led a management team in F&N Coca-Cola Singapore and Malaysia in brand marketing, manufacturing, sales and distribution.

F&N said that prior to Ng's secondment to Times Publishing Limited as chief executive officer, he was responsible for a massive restructuring of the Malaysian soft drinks business over a six-year period.

The company said Ng, a Singaporean, holds a Bachelors degree in Business Administration from the University of Singapore and is an Associate of the Institute of the Chartered Accountants in England & Wales.

K-One Technology 2Q net profit jumps to RM2.2m on higher sales, cost reduction

KUALA LUMPUR: K-ONE TECHNOLOGY [] BHD [] net profit for the second quarter ended June 30, 2010 jumped significantly to RM2.2 million from RM315,000 a year earlier due to increase in sales and cost reduction exercises.

Revenue rose to RM33.77 million from RM15.34 million a year ago, while earnings per share was 1.99 sen.

For the six months ended June 30, K-One's registered net profit RM3.88 million compared to net loss RM1.19 million last year.

In a filing to Bursa on Friday, July 30, the company said its sales revenue increased by 121% comparing the current quarter and the same quarter last year.

The increase in sales was expected and attributed to the continuing momentum generated from the mass production of new network cameras, new electronic sports headlamps and new USB cables, it said.

'In fact, mobile phone accessories sales picked up substantially and contributed significantly in overall sales for this current quarter.

'The significant improvement in profit is attributable to the increased sales, the benefits of economies of scale, vigilant on-going cost reduction exercises and last but not least, the elimination of foreign exchange risks caused by foreign hedging contracts, which the group has replaced with natural hedging ie paying key suppliers in the same inward remittance currency, thus markedly reducing foreign exchange risks,' it said.

On its prospects, the company said it was optimistic that the group would continue to show escalating sales growth in the second half of 2010.

It said the demand for its products, which were categorised as mobile phone accessories, computer peripherals and consumer technology products looks vibrant because consumers its global OEM customers seemed to still have an appetite for consumer electronic products.

'The recent launch of the iPad is a reflection of this insatiable appetite for innovative consumer electronic products.

'Furthermore, our second half sales as in the past many years have always been much higher than the first. We therefore expect the sales and profit performance for the full year to be especially strong,' it said.

Chin Teck posts lower 3Q net profit, declares 24 sen 2nd interim dividend

KUALA LUMPUR: CHIN TECK PLANTATION []S BHD []'s net profit for the third quarter ended May 31, 2010 (3Q10) fell 23.8 % to RM10.89 million from RM14.29 million a year ago on the back of a higher revenue of RM29.62 million versus RM28.37 million.

In a filing to Bursa Malaysia, on Friday, July 30, the company's revenue increased 4.4% mainly due to a substantial increase in the average selling prices of fresh fruit bunches (FFB) and palm kernel (PK) even though the production of FFB, crude palm oil (CPO), and PK were significantly lower, resulting in reduced sales volume.

"Overall share in profits of associates were lower due mainly to a decrease in contribution from the joint ventures engaged in oil palm plantation in Indonesia," it said.

Chin Teck posted earnings per share of 11.92 sen for 3Q10 as against 15.65 sen in the same quarter last year. Its net asset per share stood at RM6.02 as at May 31.

Th company declared a second interim dividend of 24 sen per stock less tax for the financial year ending Aug 31, 2010 (FY10) which would be payable on Aug 30, 2010.

For the nine months ended May 31, 2010, Chin Teck's net profit rose 13% to RM35.43 million from RM31.37 million in the same period last year. Revenue increased marginally to RM82.24 million from RM82.19 million.

On its prospect, the group said the average selling price of CPO for the remaining financial quarter in respect of the year ending Aug 31, 2010 was expected to remain strong and should have a positive impact on the plantation profit.

The stock today added one sen to close at RM7.91 with 14,600 shares traded.

Suria's 2Q net profit up 52% y-o-y

KUALA LUMPUR: SURIA CAPITAL HOLDINGS BHD []'s net profit for the second quarter ended June 30, 2010 (2Q10) rose 52% to RM18.74 million from RM12.29 million a year ago due to higher revenue and lower operating expenditures in the current quarter.

The company said on Friday, July 30, that the group's revenue climbed 3% to RM62.78 million from RM60.95 million a year ago, thanks to higher contribution by the core business of port operations. It registered earnings per share of 6.62 sen for 2Q10 versus 4.34 sen in the same quarter last year.

The directors did not recommend any dividend for the current financial quarter ended June 30, 2010. Suria posted net asset per share of RM2.50 as at June 30.

For the six months ended June 30, 2010, Suria's net profit surged 81% to RM37.56 million from RM20.76 million in the same half last year, while revenue grew 7% to RM122.49 million from RM114.51 million.

On its prospects, Suria said port operations would continue to be the main contributor to the group's earnings and the board was optimistic of achieving satisfactory performance for the financial year.

The stock today added 2 sen to close at RM1.60 with turnover of 509,100 shares.

Mutiara's unit in RM38 m property disposal

KUALA LUMPUR: MUTIARA GOODYEAR DEVELOPMENT [] Bhd announced that its wholly owned subsidiary, Potensi Naga Sdn Bhd (PNSB), has entered into a sale and purchase agreement (SPA) with Prosper Palm Oil Mill Sdn Bhd (PPOM) to dispose a property for RM38 million cash.

The company said on Friday, July 30 that the property involved a 13-storey office building together with 230 car park bays in Kelana Centre Point, Petaling Jaya.

The group said the property was acquired by PNSB on May 15, 1999 for a consideration of RM31.9 million, adding that it was a leasehold property with the lease expiring on Jan 23, 2094.

"The property is currently leased to a mixed group of tenants for office use and has a tenancy rate of 77%," said Mutiara, adding that the approximate age of the property is 11 years.

It noted the fair book value of the property based on PNSB's latest audited financial statements for the year ended April 30, 2009 was RM32 million.

Mutiara said the the disposal represented an opportunity for the Mutiara Group to unlock the value of assets that did not contribute towards its core business of property development.

It added that the disposal would also free the group from future holding and maintenance costs of the property.

The proceeds from the disposal would provide future cashflow for the group's working capital purposes, reduce its borrowings and/or contribute towards expansion of its core business.

CMSB and Rio Tinto mutually agree to extend HOA to be terminable from Aug 1

KUALA LUMPUR: CAHYA MATA SARAWAK BHD [] (CMSB) announced that the company and Rio Tinto Aluminium (M) Sdn Bhd have mutually agreed to further extend the Heads of Agreement (HOA) from Aug 1, 2010 to be terminable by either party giving the other a one-month notice of termination.

In a filing to Bursa Malaysia, July 30, CMSB said the HOA involved the proposed design, engineering, CONSTRUCTION [] and commissioning and operation of an aluminium shelter in Sarawak.

The company had earlier announced in May that both parties have mutually agreed to extend the HOA to July 31, 2010.

KLCI hits new two-year high

KUALA LUMPUR: The FBM KLCI closed higher for the sixth straight day on Friday, July 30, helped by last minute buying in selected heavyweights and rotational plays on lower liners, dealers said.

At 5pm, the FBM KLCI rose 2.51 points or 0.19% to close at a new two-year high of 1,360.92.

The benchmark index opened 0.90 of a point lower at 1,357.51 in the morning and traded within 1,354.76 and 1,360.92 .

A dealer said the local market started the day in a negative note as players took cue from the overnight slip on Wall Street.

However, continued buying in selected blue chips such as Sime Darby in the afternoon session helped the key index to finish the day in positive territory.

OSK Research said the FBM KLCI this week had continued to inch higher after surpassing the psychological level of 1,350, something it failed to do in the previous 2009-2010 rally.

Although the index experienced great indecisiveness two days ago, the market is now trading at another new peak for the 2009-2010 rally, it said.

"The immediate technical outlook of the FBM KLCI remains bullish," it added.

At close, the Finance Index shed 2.96 points to 12,331.62, the PLANTATION [] Index declined 11.26 points to 6,399.38 but the Industrial Index gained 17.84 points to 2,667.67.

The FBM Emas Index rose 11.12 points to 9,212.77 but the FBM70 [] Index declined 18.97 points to 9,184.01 and the FBM Ace Index slipped 8.96 points to 3,794.77.

Losers led gainers 378 to 348 while 274 counters were unchanged, 364 untraded and 25 others suspended.

Volume declined to 918.318 million shares valued at RM1.422 billion from 999.630 million shares valued at RM1.481 billion yesterday.

Topping most active stocks were SAAG Consolidated which shed half sen to 7.5 sen and Time dotCom which inched up 1.5 sen to 62.0 sen.

Sinotop Holdings lost seven sen to 24.0 sen while Malton increased 8.5 sen to 50.0 sen.

Among top gainers, British American Tobacco rose RM1.02 to RM44.90 and Petronas Gas increased 45.0 sen to RM10.

As for the heavyweights, Maybank rose four sen to RM7.74 while CIMB Group declined five sen to RM7.40.

Sime Darby gained 11 sen to RM7.80 while Maxis shed two sen to RM5.29.

The Main Market volume declined to 857.246 million shares worth RM1.408 billion from 904.895 million shares valued at RM1.461 billion yesterday.

The volume of warrants eased to 28.204 million units worth RM4.293 million versus 50.583 million units worth RM7.924 million previously.

Turnover on the ACE Market also dropped to 27.826 million shares valued at RM5.207 million compared with 33.708 million shares worth RM5.529 million yesterday.

Consumer products accounted for 91.836 million shares traded on the Main Market, industrial products 118.880 million, CONSTRUCTION [] 50.161 million, trade and services 258.705 million, TECHNOLOGY [] 42.228 million, infrastructure 58.900 million, finance 63.620 million, hotels 10.671 million, PROPERTIES [] 139.207 million, plantations 14.018 million, mining nil, REITs 8.915 million, and closed/fund 105,400. -- Bernama

Unisem 2Q net profit surges 102% to RM48m

KUALA LUMPUR: UNISEM (M) BHD [] net profit for the second quarter ended June 30, 2010 surged 102.2% to RM48.05 million from RM23.98 million a year ago on the back of a 40.8% increase in revenue to RM359.5 million.

In a filing to Bursa Malaysia on Friday, July 30, Unisem attributed the significant increase in revenue and net profit to improved sales volume due to strong demand for its products and services.

Earnings per share was 9.27 sen, while net assets per share rose to RM1.94 from 1.83.

BNM: Net financing to private sector up at annual rate of 11.3%

KUALA LUMPUR: Net financing to the private sector through the banking system and the capital market expanded at a higher annual rate of 11.3%, according to Bank Negara.

All major loan indicators across both business and household sectors increased during the month, said the central bank.

Following the increase in the OPR to 2.75% on July 8, the daily weighted average overnight interbank rate trended higher and interbank rates of other maturities also rose accordingly, it said in a statement July 30.

In terms of the commercial banks' lending rates, both the average base lending rate and the average lending rate were higher as at end-June, it said, adding that the average fixed deposit rates have also increased.

Bank Negara said that from June 1 to July 29, 2010, the ringgit appreciated by 1.7% against the US dollar as further signs of regional economic recovery contributed to favourable investor sentiments towards the regional financial markets.

Against other major currencies, the ringgit depreciated against the pound sterling (-5.8%), euro (-3.7%) and the Japanese yen (-2.9%).

Against regional currencies, the ringgit appreciated against the Chinese renminbi (1%), Thai baht (1%), Philippine peso (0.7%) and Korean won (0.6%) but depreciated against the Singapore dollar (-0.8%) and Indonesian rupiah (-0.4%).

Headline inflation was higher at 1.7% in June, said Bank Negara.

The increase in headline inflation was largely the result of price increases in the food and non-alcoholic beverages category, it said.

Broad money (M3) rose at a faster annual rate of 8.8%. M3 also increased on a month-on-month basis, reflecting mainly higher credit extension by the banking system to the private sector, it said.

The banking system's capitalisation remained strong with the risk-weighted capital ratio and core capital ratio at 14.8% and 12.9% respectively, it said.

KUB subsidiary gets RM13.87 million phone contract

KUALA LUMPUR: KUB MALAYSIA BHD [] announced that its 70%-owned joint-venture subsidiary, KUB-Fujitsu Telecommunications (M) Sdn Bhd has accepted a RM13.87 million telephone equipment contract from Telekom Malaysia Bhd.

In a filing to Bursa Malaysia on Friday, July 30, KUB said the contract involved the supply and delivery of DECT cordless telephone''involving a''three-year period.

It said the contract would contribute positively to the group's earnings and earnings per share for the financial year ending Dec 31, 2010.

"There are minimal risks as the contract is based on current and immediate requirement of Telekom for the supply and delivery of telephone equipment," noted KUB.