Good morning,
1) Alam: Alam has secured a RM29.8m job from Sarawak Shell to install offshore transport modules (the E8 & F13K Modules Offshore Transportation & Installation contract) for the oil major. In a Bursa statement, Alam said the 9 months contract commenced in Q4 of this year and is expected to complete by May 2012. The contract is not renewable, but is expected to contribute positively to earnings & NTA fro FY11 ending Dec and beyond; +ve, this brings jobs won this year to more than RM230m. The earnings recovery for Alam remains in tact, led by the turnaround in it's OIC services division & tightening conditions in the vessel charter industry.
2) PPB: PPB Group's flour milling arm FFM Bhd (80% owned) has received regulatory go-ahead for 1 of it's 3 proposed 20% stake acquisition in Wilmar International Ltd's Chinese flour milling units totalling RM80.14m - paving the way for greater collaboration between the 2 companies controlled by Robert Kuok. In a Bursa statement yesterday, PPB said FFM's 100% owned subsidiary Waikari SB has received the go-ahead from the Chongqing authorities to subscribe to 20% stake in Wilmar's Yihai (Chongqing) Foodstuff Co Ltd for US2.4m. Waikari is also paying US5.33m for a 20% stake in Yihai Kerry (Beijing) Oils, Grains & Foodstuff Ltd and US2.58m for 20% of Yihai Kerry (Shengyang) Oil, Grains & Foodstuff Co Ltd; +ve & expected. The proposals, which give FFM access to Wilmar's distribution network in China, are expected to contribute significantly to PPB's group future earnings, but would not materially impact earning for FY12/2011. The proposals are expected to be completed within 5 months.
3) Healthcare: The 3 parties - Faber Mediserve SB, Pantai Medivest & Radicare (M) SB- which are vying for the hospital support service (HSS) concessions by the govt are likely to get their contract renewed within the next month, according to sources close to the matter. The govt has renewed the contract for a period of 6 months initially and had called for a tendering process by these 3 companies a month before their contract ended in Oct 2011. It is learnt that the 3 parties were the only companies which were called to submit their tenders for renewal because of their experience & expertise in providing HSS for hospitals in Malaysia; +ve if true for Faber, which has a 50% market share in terms of revenue. Faber's concession covers 81 govt hospitals in Perak, Kedah, Penang, Perlis, Sabah & Sarawak.
4) Mkt: expect to remain resilient despite the correction in overseas markets in view of window-dressing activities.
