Tuesday, December 26, 2006

 

BURSA MALAYSIA PICK : Property Co benefit from Johor Flood : KSL


Kota Tinggi locate at Sungai Johor, After this flood, Many people consider to move to location near JB town. But KT is their hometown. They will select the area which near their old home and avoid risks of floods. KSL and project near KT or Ulu Tiram : Tmn Bastari indah. Which offer cheap and confortable house in that region may be will benefit from there.

KSL offer EPS as high as 26 cent. PE stand around 6. Technically just break to RM 1.60 and look positive at the near future.

Wednesday, December 20, 2006

 

Bursa Malaysia : Company will direct benefit from Johor Floods

There may be Billion money losts in this incident, May crisis become oprrtunity. YES. The following company is list may be benefit.

Farm and food counter
The foods counter, the farm counter like LHH, Emivest. (do you still remember the farm rally). If you go to pasar nowaday , you will noticed egg and chicken price are coming up. Hwatai this 2 day rally , whether relate to johor floods?

Flood Drain Project.
This is sure when incident like that, the government will allocate money for such project to prevent repeated. Gamuda the flood expert in selangor. I guess will be benefit. Other may be IJM and road builder.

Piping and infra structure
Such rebuild process , Hiaptek , jaks the piping supplier will benefit. Wood counter may benefit too, Jitasia, lingui today (21/12/06) Relate to this too?

 

Bursa Malaysia select MSC :Smelter shines on high prices

MALAYSIA Smelting Corp Bhd (MSC) group chief executive officer Datuk Dr Mohd Ajib Anuar talks to StarBiz assistant news editor HANIM ADNAN on the group's achievement and challenges, going forward.

STARBIZ: Please describe MSC’s performance over the past five years?

Ajib: MSC group has achieved stable earnings since it was listed at the end of 2004. Our Butterworth smelting and refining facility, with over a century's smelting excellence together with the group's international marketing operations in Kuala Lumpur, have provided us with well-cushioned earnings even during the regional economic crisis in the late 1990s and the cyclical downturn in tin price.

Tin mining, on the other hand, provides strong upside earnings potential during the period of high commodity price.
In the last five years to 2005, the group achieved an impressive average pre-tax return on shareholders' funds of 22% to 56% and paid gross dividends ranging from 18% to 40% annually.
The cost-sensitive and price-driven earnings potential of our tin mining business, acquired at the end of 2003 following the purchase of P.T. Koba Tin in Indonesia, was evident when the group achieved record earnings in 2004 with a pre-tax profit of RM127mil, giving a return on shareholders' fund of 56%. This was achieved on the back of a significant increase in tin price averaging US$8,493 per tonne that year.

However, Koba Tin received a double blow in the first nine months of this year when tin prices fell and the increase in fuel prices resulted in an about 20% to 30% hike in production costs, causing Koba Tin to incur losses in that period. Nevertheless, the group still recorded a satisfactory overall profit during the nine months ended Sept 30 with a pre-tax profit of RM35mil due to the better performance achieved by its Butterworth and Kuala Lumpur operations.
Koba Tin made a positive turnaround in its performance towards the end of the third quarter and is expected to show further improvements in earnings by year-end with the increase in tin prices.

StarBiz: Does MSC plan to downsize its tin operations within the next three years, given the new focus on gold and coal sectors?

Ajib: Volume business in tin smelting, trading and global positioning do not necessarily and fully guarantee growth in returns. However, we will continue to expand our tin-related operations as it provides stable earnings.
We will continue to explore for new tin reserves in potential tin mineralised countries as we have the niche capabilities, given the group's more than a decade commercial networking in countries like Australia, China, Russia, Africa and Indonesia.
During the last five years, we have seen structural and fundamental changes to the global tin industry, with some of the significant changes driven by our global leadership initiatives through strategic alliance and collaboration.
MSC group also played a leadership role in research and development and the commercial application of new tin uses, especially in electronics and chemicals through the International Tin Research Organisation based in London. Electronics now accounts for almost 50% of global tin consumption, with the chemical sector absorbing about 15%.
These two sectors have underpinned a global growth of 18.6% in the first half of this year. And we expect at least a 10% growth in 2006. Global supply at current prices is not expected to match the forecast long-term growth in demand of 3% thus exerting an upward pressure on prices to boost production and supply.

StarBiz: What is your opinion on the issue of sustainability in the tin sector?

Ajib: The need for sustainability is becoming a critical issue in the tin industry. Indonesia has clamped down on unregulated tin smelters licenced by local authorities and small-scale mines, which supplied more than 50% of the country's production, driven by the need for accountability in environment management, health and safety.
At P.T. Koba Tin, we are responsible for land rehabilitation and environment management of all areas mined out by small-scale mines and therefore, our production cost is much higher than those of other small scale operators.
All these mean that production from Indonesia will significantly reduced and the global industry's cost curve will continue to move up. Thus tin prices will have to respond upwards to ensure a long-term adequate supply of tin metal to meet growing demand.
The International Tin Research Organisation has taken the initiative to undertake extensive studies and statistics to provide global stakeholders with a clearer and more transparent understanding of the present cost structure of tin production.


MSC, the company just release from re-list after suspense for a year due to insufficent of public share spread. If you notice from filing of bursa malaysia , there are substantial off market transaction.
Some funds manager are aware of this counter. How far this counter will move on!

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