Good Morning,
1) DRBHCOM: Company had entered into an agreement to swap the Malay Reserve (MR) status of a plot of land in Langkawi with non-MR status of a piece of land in Kedah for RM76mil. Its MR land is located on Pulau Rebak Besar and spans 333 acres while the non-MR 350 acres land is an agricultural land which sits in the Northern Gateway Free Zone (NGFZ) at Bandar Kota Perdana, Kedah. The consideration pf RM76mil works out to RM5.23 psf to convert the MR to non-MR land.
2) QSR/KFC: The boards of QSR and KFC have accepted the joint takeover offer by Johor Corp and CVC Capital Partners Asia III Ltd and are not seeking any alternative bids for the sale of their assets and liabilities. This puts a rest to speculations on possible counter bids. However both companies noted that the takeover offers are subjected to "further negotiations and mutual agreement on terms and conditions to be incorporated into the definitive sale and purchase agreement".
3) JTIASA: 1H Oct 2011 Tover +32% RM499.5m, Net+84.7% RM97.07m, EPS 36.36sen, 18% above cons (f) RM163.67mil.
Yoy revenue rose 32% while its net jumped 84.7% mainly due to 21% improvement in logs average selling price, 45% increase in FFB sales volume with 17% rise in average selling price and 80% growth in CPO sales volume with 23% improvement in average selling price. QoQ, the pre-tax reduced by 24% to RM57.3 million from RM75.3 million. The decline was mainly due to 11%, 7% and 10% decrease in the average selling prices of logs, plywood and FFB respectively.
Going forward the oil palm segment remains bullish with higher FFB and CPO production volume while the performance for the timber segment will be challenging given the volatile operating environment and uncertain global economic environment.
4) Mkt: relatively quiet, range trading with firm undertone as it approaches the Christmas holidays.
