FBM30 1647.11
-1.02points (-0.06%) Volume
1,211mil Value 1,106.5mil
1) KLCI was marginally weaker as investors sentiment
stayed cautious on unresolved debt crisis in Eurozone while global growth are
showing signs of slowing. Japan’s government cut its assessment of its economy
adding further weight of a slowing global growth. Penny stocks pared recent
gains led by INGENS-20%, DPS-17% as market breadth was negative with losers
dominating gainers 460:276. Futures closed 1647.5pts (0.5point premium).
2) Heavyweights: CIMB-0.64% RM7.83, TENAGA-0.73% RM6.82,
MAYBANK-0.33% RM9.15, UMW-1.56% RM10.10, HLBANK-1.17% RM13.50, GENTING+0.77%
RM9.14, BAT+2.08% RM63.90, PCHEM+0.46% RM6.53
3) DBT: PENERGY 57.7mil @ RM1.68 (26.9% PUC, 16.4%
discount, Acquisition of stake by WASEONG from Perdana), BONIA 35mil @ RM2.04
(17.36% PUC, 21% discount)
4) Situationals:
FAVCO+2.29% RM1.79: Share price rose after 2Q net profit
jumped 145% to RM19.75mil. This is due to increased sales from its crane
segment and good execution of several high margin projects. Orderbook now
stands at RM715.5mil.
5) FGV
1H JUNE 2012 Tover +42.1% RM5.25bn Net -31.7% RM443.4m 10.4sen
10% above
if excl LLA Cons (f) RM1.06bn
The 42.1% increase in revenue primarily reflects the
sales of CPO by FGVPM beginning on 1 March 2012, offset in part by a decrease
in revenue from the downstream segment as a result of tolling agreement
following which sales of soy and canola products is no longer recorded. While
profit before taxation including fair value changes in LLA liability
(RM140.48m) decreased to RM582.3 million. Pretax margin decreased to 11.1% for
the half year ended 30 June 2012, compared to 25.7% YOY, primarily reflecting the
lower CPO prices and FFB production, increase in replanting, manuring, labour
and fertilizer costs, the incurrence of fair value changes in the LLA liability
as well as a one off charges relating to IPO of RM40.4 million being share
based payment of RM25.7m and other IPO expenses of RM14.7m.
Segmental wise all divisions generally saw operating
profit dips, with Plantations -55.5% brought down by reduction in CPO prices of
RM3,230 per mt in 2012 as compared to RM3,461 per mt in 2011 and lower YTD June
FY2012 FFB production of 2.31 million MT as compared to 2.42 million in 2011.
The results were also affected by the rise in cost of sales which was primarily
due to higher costs of CPO, higher costs relating to replanting and manuring
costs, primarily reflecting higher volume of fertilizer used as well as higher
fertilizer prices and higher labour costs as a result of new incentive payments
to plantation workers effective November 2011.
Sugar -28.4% due to increase in raw sugar costs as the
purchase price for the raw sugar under the current long-term raw sugar supply
contract was higher than that under the long-term raw sugar supply contract in
effect in 2011.
Margins will continue to be under pressure in the
immediate future with the company’s initiative to improve its palm oil trees‟
age profile in accordance with its replanting policy as a total area of 16,000
hectares is expected to be planted by end of 2012.
Expect to continue to underperform due to its relatively
high valuations and its un attractive plantation age profile.
6) Market – Consolidation range to continue ahead of
fresh developments particularly in the US and China on the stimulus front.
