FBM30 1584.90
-5.70points (-0.36%) Volume
1,281mil Value 1,415mil
1) KLCI gave back yesterday's gain as market fell inline
with the regionals on uncertainties within the euro region and concerns Spanish
banks will be force to raise money to cover their property assets ensuring
investors stayed on the sidelines. Index slid over the day and ended at day's
low as market saw broad base selling of key heavyweights. Broader market turned negative with decliners leading
advancers 450:273. Futures closed 1578 (7 points discount).
2) Heavyweights: IOICORP-1.13% RM5.24, MAYBANK-0.57%
RM8.70, GENM-1.83% RM3.76, GENTING-0.56% RM10.60, DIGI-0.49% RM4.05, TM-0.73%
RM5.43, BAT-1.15% RM55.04, YTL+1.73% RM1.76
3) DBT: CBSA 20mil @ RM0.50 (8.3% PUC, 12.3% premium),
ETITECH 3.6mil @ RM0.165
4) Situationals:
SUNWAY+3.04% RM2.37/ TRC+1.38% RM0.735: MRT Corp in a
statement said the packages - Viaduct (1,4 & 7) and depot 1 - said to be
worth RM3.22bn has been awarded. Sunway Construction was awarded V4 worth
RM1.17bn, TRC was awarded RM458.98mil for Sungai Buloh depot in an open tender
category.
Meanwhile V1 worth RM1.09bn, a bumiputra exclusive
package was awarded to Syarikat Muhibbah Perniagaan and Pembinaan Sdn Bhd and
V7 valued at RM499.98mil was secured by MTD Construction Sdn Bhd. MRT Corp said
it expected to award more tenders by next month.
5) MMHE - 1Q Mar 2012 Tover
-28% RM665.3m Net -39.3% RM78.1m EPS 4.9sen 12% below cons(f)
RM356m
The Group's operating profit of RM85.7million was lower
against the corresponding quarter's operating profit of RM90.5million. Revenue
reduction in Engineering and Construction from RM884.9million to RM516.6million
was mainly due to no further recognition of revenue from EPIC Turkmenistan
Block1, Phase1 project in the current quarter as compared to the corresponding
quarter.Theproject contract was novated to a jointly controlled
entity,MMHE-TPGM SdnBhd with effect from
1January2011 and has since completed. The lower revenue
was compensated by the contribution from the progress achieved on other
contracts in hand .As a result, the operating profit has decreased from
RM98.2million to RM65.8million due to the above. The profit from EPCIC TurkmenistanBlock1,
Phase1 project is currently reflected in the share of profit of jointly
controlled entities. The higher operating profit registered from other
contracts in hand compensated for the reduction of revenue from the EPCIC
Turkmenistan Block Phase.Revenue of Marine Conversion and Repair improved from
RM50.9million to RM151.8million mainly attributed to progress achieved for two
conversion contracts ,and high errig sand support vessel repairworks secured during the quarter as
compared to the corresponding quarter. The operating profit for Marine
Conversion and Repair improved during the quarter amounting to
RM10.3 million as compared to loss of RM14.1 million in
the corresponding quarter .The Group profit before tax for the quarter of
RM86.8million was lower against the corresponding quarter of RM114.1million due
to the above reduction in operating profits of the main segment Our Engineering
and Construction segment is expected to perform favourably through successful
execution of project hand. With the acquisition of Pasir Gudang fabrication
yard and the novation of Kebabangan project from SimeDarby Engineering SdnBh,
it is expected to contribute positively to Engineering and Construction's
earnings.The performance for Marine Repair and Conversion segment is expected
to remain satisfactory.
The stock could continue to underperform given its high
valuation (current year PE 24x) due to the slow contract replenishment after
experiencing the delay in its acquisition of Pasir Gudang.
6) Market - More
weakness likely with KLCI seeking support at the 1567 levels as investors await
a resolution to Greece impasse and renewed weakness in the Euro and European
sovereign bonds.