PETALING JAYA: Plantation group Felda Global Ventures Holdings Bhd (FGV) is believed to have been offered up to 15% discount on its planned purchase of PT Eagle High Plantations Tbk despite seeking a higher reduction in the price, according to sources.
The 15% discount would mean FGV would be paying around US$578mil (RM2.39bil), compared with the original price tag of US$680mil (RM2.8bil).
StarBiz had first reported in November 2015 that FGV was seeking to secure a discount in the price of its 37% stake purchase in the Indonesian planter.
Recall that on June 12, 2015, FGV had proposed to acquire from Rajawali Group a 37% stake in Eagle High – the third-largest plantation group listed in Jakarta – for US$631.5mil (RM2.37bil) cash and 95.44 million new FGV shares, representing 2.55% of the enlarged and issued share capital of the group. It also plans to buy 95% of a sugar project from Rajawali for US$67mil.
The proposed deal was not well received by investors because of its valuation and the impact on FGV’s balance sheet.
Recently, a business weekly speculated that FGV was working with its parent, Federal Land Development Authority (Felda), to secure a 30% discount on the Eagle High deal.
In early December, FGV had said that there might be “a different mode of investment” in Eagle High.
Instead of the 37% stake, FGV could be taking a much smaller stake, with the larger stake being taken by Felda Investment Corp (FIC), which could take away a large portion of the risk from the former, which has been hit hard by weaker crude palm oil prices. FIC is Felda’s main investment arm and has made numerous strategic investments in recent years.
Following the news, CIMB Research said if this transaction were to materialise as reported and if FGV were to buy a 10% stake in Eagle High for around 563 rupiah per share (30% discount to the last proposed price), it would be negative for FGV as this could potentially dilute FGV’s value by RM416mil.
CIMB Research said this is because at 563 rupiah per share, the group would be paying a premium of 410% above Eagle High’s current market price of 137 rupiah per share, for a small stake.
“The persistent news flow on its plans to acquire Eagle High at a premium over its market price may dampen sentiment on share prices of the company. On top of this, the group’s FY15 results are likely to remain weak as it posted a 6% year-on-year decline in fresh fruit bunch (FFB) output for the 11 months of FY15, which is sharper than our estimate of a 5% decline for the full year as well as below Malaysia’s palm oil output growth of 1% in 11 months of FY15. We suspect this could be due to declining FFB yields at its estates,” it adds.
CIMB Research had cut its FGV target price to RM1.49 from RM1.73 while maintaining a “reduce” call for the stock. It raised FGV’s discount to sum-of-parts (SOP) valuation from 30% to 40% over concern about the company’s plan to acquire a stake in Eagle High.
“We are keeping our earnings forecasts, but lower our target price as we raise the discount to our SOP valuation from 30% to 40%. The higher discount was to reflect our concerns over its plans to buy Eagle High as well as for its lower-than-expected FFB output,” it said.
FGV shares have rebounded from RM1.45 on Jan 26 to RM1.72 on Friday giving the company a market capitalisation of over RM6.2bil.
PETALING JAYA: Plantation group Felda Global Ventures Holdings Bhd (FGV) is believed to have been offered up to 15% discount on its planned purchase of PT Eagle High Plantations Tbk despite seeking a higher reduction in the price, according to sources.
The 15% discount would mean FGV would be paying around US$578mil (RM2.39bil), compared with the original price tag of US$680mil (RM2.8bil).
StarBiz had first reported in November 2015 that FGV was seeking to secure a discount in the price of its 37% stake purchase in the Indonesian planter.
Recall that on June 12, 2015, FGV had proposed to acquire from Rajawali Group a 37% stake in Eagle High – the third-largest plantation group listed in Jakarta – for US$631.5mil (RM2.37bil) cash and 95.44 million new FGV shares, representing 2.55% of the enlarged and issued share capital of the group. It also plans to buy 95% of a sugar project from Rajawali for US$67mil.
The proposed deal was not well received by investors because of its valuation and the impact on FGV’s balance sheet.
Recently, a business weekly speculated that FGV was working with its parent, Federal Land Development Authority (Felda), to secure a 30% discount on the Eagle High deal.
In early December, FGV had said that there might be “a different mode of investment” in Eagle High.
Instead of the 37% stake, FGV could be taking a much smaller stake, with the larger stake being taken by Felda Investment Corp (FIC), which could take away a large portion of the risk from the former, which has been hit hard by weaker crude palm oil prices. FIC is Felda’s main investment arm and has made numerous strategic investments in recent years.
Following the news, CIMB Research said if this transaction were to materialise as reported and if FGV were to buy a 10% stake in Eagle High for around 563 rupiah per share (30% discount to the last proposed price), it would be negative for FGV as this could potentially dilute FGV’s value by RM416mil.
CIMB Research said this is because at 563 rupiah per share, the group would be paying a premium of 410% above Eagle High’s current market price of 137 rupiah per share, for a small stake.
“The persistent news flow on its plans to acquire Eagle High at a premium over its market price may dampen sentiment on share prices of the company. On top of this, the group’s FY15 results are likely to remain weak as it posted a 6% year-on-year decline in fresh fruit bunch (FFB) output for the 11 months of FY15, which is sharper than our estimate of a 5% decline for the full year as well as below Malaysia’s palm oil output growth of 1% in 11 months of FY15. We suspect this could be due to declining FFB yields at its estates,” it adds.
CIMB Research had cut its FGV target price to RM1.49 from RM1.73 while maintaining a “reduce” call for the stock. It raised FGV’s discount to sum-of-parts (SOP) valuation from 30% to 40% over concern about the company’s plan to acquire a stake in Eagle High.
“We are keeping our earnings forecasts, but lower our target price as we raise the discount to our SOP valuation from 30% to 40%. The higher discount was to reflect our concerns over its plans to buy Eagle High as well as for its lower-than-expected FFB output,” it said.
FGV shares have rebounded from RM1.45 on Jan 26 to RM1.72 on Friday giving the company a market capitalisation of over RM6.2bil.
1 February 2016
大马股市休市 亚股涨跌互见
大马股市今天因联邦直辖区日休市一天，亚洲股市小心翼翼地开始2月的第一个交易日，日本与澳洲股市走高，但两岸三地等股市下滑。
日本央行上周五意外宽松政策引发一些买盘，但中国制造业数据透露出经济放缓的更多迹象，加上油价回档整理，让投资人继续保持警戒。受惠于欧美与亚洲的货币政策分歧，美元持续走强。
MSCI亚太（日本除外）指数在东京午盘微升0.2%，1月跌8%。日经指数涨幅超1%，澳洲上午一度也涨逾1%，领涨亚洲股市。
中国周一公布的数据显示，1月官方制造业采购经理人指数（PMI）低于预期，制造业活动萎缩速度创近三年半来最快；1月官方非制造业PMI为53.5，代表服务业活动增速也放缓，加深市场对中国经济体质的担忧，要求中国继续放宽政策的呼声更强。
31 January 2016
2月油价继续下滑 RON95再降10仙
国际油价不断下探，大马油价也应声下滑。今年2月的油价继续降低，RON95汽油、RON97汽油和柴油每公升价格，分别下降10仙、20仙和25仙。
油站业者向《当今大马》透露，以下是2月的新油价：
- RON95每公升1令吉75仙；
- RON97每公升2令吉05仙；
- 柴油是每公升1令吉35仙。
1月的旧油价是RON95汽油每公升1令吉85仙，而RON97汽油和柴油则是每公升2令吉25仙和1令吉60仙。
2014年12月起，政府落实“管理式浮动机制”（managed float）来制定RON95汽油与柴油价格，即每月将会检讨燃油价格。
至于RON97汽油价格，早从2010年7月起已根据此机制来定夺零售价格。在政府于4月1日推行消费税后，RON97汽油也征收消费税。
27 December 2015
KLCI gains in mid-day break backed by heavyweights
KUALA LUMPUR: The FBM KLCI extended its gains on Monday after last week’s mid-week close, pushed up by heavyweights such as Maybank and Tenaga Nasional, and window dressing activities ahead of the new year.
The KLCI was 10.16 points or 0.61% higher at 1,673.67 from last Wednesday’s close. Bursa Malaysia was closed on Thursday and Friday for birth of Prophet Mohammad and Christmas holidays.
Shares in Maybank were 9 sen higher to RM8.39, pulling the index 1.47 points up, while Tenaga Nasional was up 12 sen to RM13.32 pushing the index up 1.14 points. IHH Healthcare pulled the index up 1.11 points up, gaining 8 sen to RM6.48.
Key regional markets were mixed due to losses in mainland China and Japan.
At Bursa Malaysia, turnover was 1.009 billion shares valued at RM783.5mil.
The broader market was stronger with advancers outpacing decliners. There were 412 gainers versus 373 losers while 308 stocks remained unchanged.
Both Brent crude and US crude were last trading slightly lower at US$37.76 per barrel and US$37.81 per barrel respectively.
Wall Street indices closed lower on Thursday with the DJIA and S&P500 lost 0.29% and 0.16% to end at 17,552.17 and 2,060.99 respectively.
European stocks ended flat in the shortened Christmas Holiday session on Thursday with thin volumes as the oil price remained choppy.
Among the top gainers at FBM KLCI at 12.30pm were Petronas Dagangan up 60 sen to RM24.60, Shell up 30 sen to RM5.20, United U-Li Corp up 29 sen to RM5.09.
Heading losers were P.I.E. Industrials down 36 sen to RM10.44, LayHong down 22 sen to RM6.00 and Warisan TC down 19 sen to RM2.23.
The ringgit weakened to RM4.3005 compared to RM4.2985 last Friday.
Crude palm oil’s benchmark third-month contract for March delivery fell RM4 to RM2,483 per tonne on Monday from RM2,487 last Wednesday.
Among the key regional markets:
Japan's Nikkei 225 is up 0.30% to 18,825.77;
Hong Kong's Hang Seng Index is down 0.41% to 22,047.44;
Shanghai Composite Index down 0.20% to 3,620.77;
Taiwan's Taiex gained 0.10% to 8,371.31;
South Korea's Kospi down 0.80% to 1,974.66 and;
Singapore's Straits Times Index is up 0.08% to 2,879.92 points.
Spot gold fell 0.20% to US$1,073.99 per troy ounce.
The KLCI was 10.16 points or 0.61% higher at 1,673.67 from last Wednesday’s close. Bursa Malaysia was closed on Thursday and Friday for birth of Prophet Mohammad and Christmas holidays.
Shares in Maybank were 9 sen higher to RM8.39, pulling the index 1.47 points up, while Tenaga Nasional was up 12 sen to RM13.32 pushing the index up 1.14 points. IHH Healthcare pulled the index up 1.11 points up, gaining 8 sen to RM6.48.
Key regional markets were mixed due to losses in mainland China and Japan.
At Bursa Malaysia, turnover was 1.009 billion shares valued at RM783.5mil.
The broader market was stronger with advancers outpacing decliners. There were 412 gainers versus 373 losers while 308 stocks remained unchanged.
Both Brent crude and US crude were last trading slightly lower at US$37.76 per barrel and US$37.81 per barrel respectively.
Wall Street indices closed lower on Thursday with the DJIA and S&P500 lost 0.29% and 0.16% to end at 17,552.17 and 2,060.99 respectively.
European stocks ended flat in the shortened Christmas Holiday session on Thursday with thin volumes as the oil price remained choppy.
Among the top gainers at FBM KLCI at 12.30pm were Petronas Dagangan up 60 sen to RM24.60, Shell up 30 sen to RM5.20, United U-Li Corp up 29 sen to RM5.09.
Heading losers were P.I.E. Industrials down 36 sen to RM10.44, LayHong down 22 sen to RM6.00 and Warisan TC down 19 sen to RM2.23.
The ringgit weakened to RM4.3005 compared to RM4.2985 last Friday.
Crude palm oil’s benchmark third-month contract for March delivery fell RM4 to RM2,483 per tonne on Monday from RM2,487 last Wednesday.
Among the key regional markets:
Japan's Nikkei 225 is up 0.30% to 18,825.77;
Hong Kong's Hang Seng Index is down 0.41% to 22,047.44;
Shanghai Composite Index down 0.20% to 3,620.77;
Taiwan's Taiex gained 0.10% to 8,371.31;
South Korea's Kospi down 0.80% to 1,974.66 and;
Singapore's Straits Times Index is up 0.08% to 2,879.92 points.
Spot gold fell 0.20% to US$1,073.99 per troy ounce.
15 December 2015
Malaysia's sovereign rating remains unchanged: S&P's
KUALA LUMPUR: Malaysia rating outlook remains unchanged at A- and stable despite domestic and global developments says Standard and Poor's. Developments over the past year ranging from the controversy surrounding the state fund 1Malaysia Development Fund (1MDB), China's policy shift and oil prices have not affected Malaysia's economic prospects and fiscal balance sheet said S&P's sovereign & international public finance ratings senior director Kim Eng Tan. "Key risk is political risk and even that has moderated," he told a media webcast on the 2016 Credit Outlook for Asia Pacific. The growth projection remains robust with the sovereign rating agency expecting more than 4 per cent this year and next year. Paul Gruenwald who is chief economist for the region said Asia Pacific will continue to be the fastest growing region in the world led by India. "Growth is however likely to remain weak in the region until confidence in the US recovery gains more traction and confidence in Chinese growth stabilises, including property or financial markets,"he said in a webcast on the regional market outlook. S&P expects China to record a 6 per cent growth in GDP in next few years. Gruenwald was however concerned that the export growth has slipped since the global financial crisis. "The contribution from external demand was one fifth of GDP but it has fallen and it is now contributed by domestic demand for eight years now." Global trade responsiveness to the GDP growth, he said, has shown that the global production is now "on-shoring" on the part of the US and China which traditionally imported capital and goods in the past. On the US Federal Reserve Fund's impending rate hike decision tonight, he said: "This is well telegraphed Fed increase and that it has been priced in at 90 per cent suggest we should not see much market volatility. "A 25 basis points hike today will not knock the wind off anyone's balance sheet."
Bursa Malaysia to see buying interest on Wall Street gains
KUALA LUMPUR: BIMB Securities Research expects the local stock market to gain buying interest today, following a positive lead from Wall Street.
The research house expects the FBM KLCI to hover at around 1,630 - 1,640.
Overnight at Wall Street, markets closed higher as investors turned positive following the stabilisation in oil prices and high expectations for the Federal Reserve to hike rates.
The DJIA and S&P500 gained 0.90% and 1.06% respectively to end at 17,524.91 and 2,043.41.
Meanwhile in Europe, shares soared yesterday following the recovery in oil prices and positive data from the auto sector.
On the other hand, key regional markets were mixed ahead of the interest rate hike by the Fed. The FBMKLCI slipped 7.12 points or 0.44% to finish at 1,622.84.
Bursa’s market breadth was positive with 387 gainers against 386 losers while 389 counters were traded unchanged. TOPGLOV (+86sen), AJI (+62sen) and TAANN (+18sen) led the gainers. While BAT (-100sen), UTDPLT (-48) and GAB (-22sen) led the losers.
Trading participation shows net buying by local institutions and retail while foreign institutions were net sellers.
SET emerged as the top gainer, 2.60% up to close at 1,300.51 followed by JCI (+0.80%), TWSE (+0.41%), KOSPI (+0.27%), STI (+0.21). While N225 (-1.68%), PSEi (-0.66%), SCHOMP (-0.29%) and HSI (-0.17%) were the losers.
The research house expects the FBM KLCI to hover at around 1,630 - 1,640.
Overnight at Wall Street, markets closed higher as investors turned positive following the stabilisation in oil prices and high expectations for the Federal Reserve to hike rates.
The DJIA and S&P500 gained 0.90% and 1.06% respectively to end at 17,524.91 and 2,043.41.
Meanwhile in Europe, shares soared yesterday following the recovery in oil prices and positive data from the auto sector.
On the other hand, key regional markets were mixed ahead of the interest rate hike by the Fed. The FBMKLCI slipped 7.12 points or 0.44% to finish at 1,622.84.
Bursa’s market breadth was positive with 387 gainers against 386 losers while 389 counters were traded unchanged. TOPGLOV (+86sen), AJI (+62sen) and TAANN (+18sen) led the gainers. While BAT (-100sen), UTDPLT (-48) and GAB (-22sen) led the losers.
Trading participation shows net buying by local institutions and retail while foreign institutions were net sellers.
SET emerged as the top gainer, 2.60% up to close at 1,300.51 followed by JCI (+0.80%), TWSE (+0.41%), KOSPI (+0.27%), STI (+0.21). While N225 (-1.68%), PSEi (-0.66%), SCHOMP (-0.29%) and HSI (-0.17%) were the losers.
22 November 2015
李克強：中國願買大馬國債
中國國務院總理李克強指出，中國願意加強與大馬的金融合作，中國願意按市場購買大馬的國債，並且在大馬發放人民幣債券。
李克強指出，中國希望內需可成為大馬的商機，他有信心中馬的投資前景廣闊。 中國國務院總理李克強趣談大馬果王榴槤時說，很多中國人告訴我，第一次吃（榴槤）可能會很難受，第二次吃會很難忘，而第三次吃就會忘不了。” 中國總理李克強今早10時抵達吉隆坡香格里拉大酒店，並趕在馬中經濟高層開始前，與副首相拿督斯里阿末扎希、第二貿工部長拿督斯里黃家泉及大馬10大富豪進行短時間會面。 這10人包括常青集團兼世華媒體集團執行主席丹斯里張曉卿爵士、丹斯里郭鶴年長子郭孔丞、楊忠禮集團創辦人丹斯里楊忠禮、IOI集團主席丹斯里李深靜、亞航集團創辦人丹斯里東尼費南達斯、馬來西亞中華總商會（中總）總會長拿督戴良業、吉隆坡甲洞首席執行員拿督斯里李愛賢、聯昌銀行首席執行員拿督蘇萊曼及國庫控股首席執行員等。
李克強指出，中國希望內需可成為大馬的商機，他有信心中馬的投資前景廣闊。 中國國務院總理李克強趣談大馬果王榴槤時說，很多中國人告訴我，第一次吃（榴槤）可能會很難受，第二次吃會很難忘，而第三次吃就會忘不了。” 中國總理李克強今早10時抵達吉隆坡香格里拉大酒店，並趕在馬中經濟高層開始前，與副首相拿督斯里阿末扎希、第二貿工部長拿督斯里黃家泉及大馬10大富豪進行短時間會面。 這10人包括常青集團兼世華媒體集團執行主席丹斯里張曉卿爵士、丹斯里郭鶴年長子郭孔丞、楊忠禮集團創辦人丹斯里楊忠禮、IOI集團主席丹斯里李深靜、亞航集團創辦人丹斯里東尼費南達斯、馬來西亞中華總商會（中總）總會長拿督戴良業、吉隆坡甲洞首席執行員拿督斯里李愛賢、聯昌銀行首席執行員拿督蘇萊曼及國庫控股首席執行員等。
31 October 2015
A story of Inflation...
Today went out lunch with colleague nearby Jalan Ampang. Mixed rice always come to my mind as I can choose the dishes I like to eat. This time I've taken a vege(KaiLan) and mushroom chicken, 1 vege and 1 meat with a small rice cost me about RM6 and bought a RM1.5 pack of fruit(a less quarter of pineapple) later. Well... RM6 + RM1.5 doesn't sound expensive now a day especially area nearby KLCC.
Unfortunately, we were forced to take shelter inside the old building(Wisma Central) by a heavy rain. So, we all snakes(lazy to get back to work) and yumcha(drink tea) for a while at the mamak store. While everyone were talking, I suddenly raised a question to them... "hey, how much was the cheapest per pack of fruit you guys bought last time and when was it?" while pointing the one I bought earlier. They replied "RM1 or RM0.50 long ago la". However, I told them the lowest price I got was RM0.50 during my primary education(which was around 18 years passed). The figure doesn't seems too big, but it'd got 200% increased when you calculate in terms of percentage. Well, that means a lot to me :P...
Besides that, lets take the price of mixed rice for the calculation... my lowest for 1 vege and 1 meat 10 years back was about RM3.5(I think lesser than this) which equivalent around 50% la...
Meaning to say, you are using twice the money to buy the same or even lesser quantity for the same thing 10years after. Somehow I thought this way... my RM10k saving 10years back has became a "value" of RM5k even tough you still can see the figure of RM10k in the bank book.
Eh, not saying that saving is not good here or not asking you to stop saving... Personally thinks saving is a must and is so important especially for the young one. But saving blindly without a plan is very dangerous as you don't realized the value of your money has become lesser than before. Suggest, to save for a purpose, such as for any types of investment, or something you think is worth buying that can create value for you....
Unfortunately, we were forced to take shelter inside the old building(Wisma Central) by a heavy rain. So, we all snakes(lazy to get back to work) and yumcha(drink tea) for a while at the mamak store. While everyone were talking, I suddenly raised a question to them... "hey, how much was the cheapest per pack of fruit you guys bought last time and when was it?" while pointing the one I bought earlier. They replied "RM1 or RM0.50 long ago la". However, I told them the lowest price I got was RM0.50 during my primary education(which was around 18 years passed). The figure doesn't seems too big, but it'd got 200% increased when you calculate in terms of percentage. Well, that means a lot to me :P...
Besides that, lets take the price of mixed rice for the calculation... my lowest for 1 vege and 1 meat 10 years back was about RM3.5(I think lesser than this) which equivalent around 50% la...
Meaning to say, you are using twice the money to buy the same or even lesser quantity for the same thing 10years after. Somehow I thought this way... my RM10k saving 10years back has became a "value" of RM5k even tough you still can see the figure of RM10k in the bank book.
Eh, not saying that saving is not good here or not asking you to stop saving... Personally thinks saving is a must and is so important especially for the young one. But saving blindly without a plan is very dangerous as you don't realized the value of your money has become lesser than before. Suggest, to save for a purpose, such as for any types of investment, or something you think is worth buying that can create value for you....
Hope you enjoy reading, good luck and to be continued...
Still learning and always will be :)
Subscribe to:
Posts (Atom)