Good morning,
1) SapCrest: announced that TL Offshore SB, a wholly owned subsidiary, has finalized, executed and formalized 2 separate contracts with Cosco (Nantong) Shipyard Co Ltd for the construction of 2 units pipelay cum heavylift offshore construction vessel at a combined contract value of US227m (RM712m). One of the vessels was scheduled to be delivered in Q4 2013 whilst the other to be delivered in Q1 2014; +ve, this contract win to add to healthy existing OB of RM10.6b. Catalyst for stock remains it's merger with Kencana Petroleum which will create one of the largest O&G service provider in south-east Asia with a 4-year CAGR of about 23%, backed by many long-term contracts. Also, the merged entity's potential mid 2012 inclusion in the FBMKLCI component stock.
2) BHIC: Boustead Heavy Industries Corp yesterday denied being part of any on-going privatization talks. In a statement to Bursa to clarify media reports following the rise of it's share price, BHIC said it had not received any indication or direction from it's shareholders with regards to any major acquisition of shares in the company which might include a privatization. BHIC also reiterated that it's major shareholder Boustead Holdings had on Dec 21, 2011 publicly announced it was not considering any proposal to privatize BHIC - May dampen speculative interest in stock which price has added almost 20% over the last 3 trading days.
3) Construction: Tenders for the beautification portion of the River of Life (RoL) programme, potentially worth up to RM1b, could be called in the second half of this year, upon completion of the project's master plan. KL Mayor said a total of RM4b has been earmarked by the federal govt for the RoL programme, a project identified under the ETP, that involves cleaning of 110km stretch of river basin and beautification along a 10.7km stretch within the city centre. Of the amount, RM3b will be for river cleaning (which is already underway) and the remaining RM1b is for beautification works. Mayor said the master plan for the beautification portion would be ready within 6 months ; +ve. Last December, Ekovest-MRCB JV SB, a 60:40 JV between Ekovest Bhd & MRCB, announced that it had been appointed the project delivery partner (PDP) of the RM2.2b river rehabilitation & beautification project, and stands to receive 1% of the project's estimated value, or about RM22m, as compensation for managing/coordinating the project for 3 years.
4) Mkt: situationals & plantation counters expected to be the main focus in a positive bias market.
