Privatisation. Tanjong Capital, an SPV ultimately owned by Tan Sri T. Ananda Krishnan, last Friday offered to buy all Tanjong shares at RM21.80/share cash. We note that his private companies currently own 47.0% and have given their irrevocable undertaking to accept the offer.
Tanjong plc : Major Shareholder Privatising Tanjong At RM21.80/Share - 02/08/2010
Showing posts with label Tanjong plc. Show all posts
Showing posts with label Tanjong plc. Show all posts
Monday, August 2, 2010
Corporate Highlights - 02/08/2010
♦ Banking Sector Update : Jun ‘10 System Data – YoY Loan Growth At A High - Overweight
♦ Tanjong plc
News Update : Major Shareholder Privatising Tanjong At RM21.80/Share
Corporate Highlights - 02/08/2010
♦ Tanjong plc
News Update : Major Shareholder Privatising Tanjong At RM21.80/Share
Corporate Highlights - 02/08/2010
RHB Equity 360° - 2 August 2010 (Banks, Tanjong, Unisem; Technical: IJM Land, Mah Sing)
Top Story : Banks – Jun ‘10 system data – YoY loan growth at a high - Overweight
Sector Update
- Jun ’10 loan growth stood at +12.5% yoy (May ’10: +11.7% yoy) the strongest monthly growth rate achieved thus far this year. Growth was largely broad-based with the household and business segments up +12.9% yoy (May ’10: +12.5% yoy) and +7.2% yoy (May ‘10: +6.1% yoy) respectively.
RHB Equity 360° - 2 August 2010 (Banks, Tanjong, Unisem; Technical: IJM Land, Mah Sing)
Sector Update
- Jun ’10 loan growth stood at +12.5% yoy (May ’10: +11.7% yoy) the strongest monthly growth rate achieved thus far this year. Growth was largely broad-based with the household and business segments up +12.9% yoy (May ’10: +12.5% yoy) and +7.2% yoy (May ‘10: +6.1% yoy) respectively.
RHB Equity 360° - 2 August 2010 (Banks, Tanjong, Unisem; Technical: IJM Land, Mah Sing)
Friday, July 16, 2010
Corporate Highlights - 16/7/2010
♦ Tanjong plc
Company Visit : Gaming Under Pressure
♦ Government Measures
Market Update : Fuel Price Hike
Corporate Highlights - 16/7/2010
Company Visit : Gaming Under Pressure
♦ Government Measures
Market Update : Fuel Price Hike
Corporate Highlights - 16/7/2010
Tanjong plc Berhad : Gaming Under Pressure - 16/7/2010
NFO - Exploring potential measures to offset higher betting duties. We gather that management is still exploring various steps via the reduction of the prize payout to mitigate the recent 2%-pt hike in pool betting duties. This could involve either:
1) a direct reduction in individual prizes;
2) reduction in the total number of consolation prizes; and/or
3) a combination thereof.
Assuming there is no change in sales volumes, we estimate a 2%- pt reduction in prize payout should allow Tanjong to fully offset the impact of the higher betting duties. In terms of the impact of sales/draw to the group’s earnings, we estimate that every 1%-pt decline in sales/draw volume growth would impact net profit by just 0.2%. At this juncture, we have not imputed any reduction in our prize payout assumptions, pending approval from the Government.
Tanjong plc Berhad : Gaming Under Pressure - 16/7/2010
1) a direct reduction in individual prizes;
2) reduction in the total number of consolation prizes; and/or
3) a combination thereof.
Assuming there is no change in sales volumes, we estimate a 2%- pt reduction in prize payout should allow Tanjong to fully offset the impact of the higher betting duties. In terms of the impact of sales/draw to the group’s earnings, we estimate that every 1%-pt decline in sales/draw volume growth would impact net profit by just 0.2%. At this juncture, we have not imputed any reduction in our prize payout assumptions, pending approval from the Government.
Tanjong plc Berhad : Gaming Under Pressure - 16/7/2010
RHB Equity 360° - 15 July 2010 (Market, PLUS, Tanjong, Gamuda; Technical: Kencana)
Market Update
- The Government announced a fuel price hike involving petrol, diesel, LPG and sugar. The fuel price hikes were on an even more gradual basis than that proposed by Pemandu at the end of May, and the market’s reaction will likely be relatively muted.
- However, the market will now be anticipating future measures, including price hikes for natural gas and electricity. This will be positive for TNB (if the fuel cost pass through mechanism is approved), but negative for energy-intensive industries like building materials and rubber glove manufacturers. We note however,
that rubber glove manufacturers normally are able to pass on the higher costs with a short time lag.
- Overall, we continue to advocate a bottom-up strategy, preferring stocks with strong underlying businesses, good management and robust balance sheet.
RHB Equity 360° - 15 July 2010 (Market, PLUS, Tanjong, Gamuda; Technical: Kencana)
- The Government announced a fuel price hike involving petrol, diesel, LPG and sugar. The fuel price hikes were on an even more gradual basis than that proposed by Pemandu at the end of May, and the market’s reaction will likely be relatively muted.
- However, the market will now be anticipating future measures, including price hikes for natural gas and electricity. This will be positive for TNB (if the fuel cost pass through mechanism is approved), but negative for energy-intensive industries like building materials and rubber glove manufacturers. We note however,
that rubber glove manufacturers normally are able to pass on the higher costs with a short time lag.
- Overall, we continue to advocate a bottom-up strategy, preferring stocks with strong underlying businesses, good management and robust balance sheet.
RHB Equity 360° - 15 July 2010 (Market, PLUS, Tanjong, Gamuda; Technical: Kencana)
Friday, July 2, 2010
Tanjong plc : Gaming Hit By A Spate Of Negatives - 02/07/2010
Pool betting duties raised to 8% from 6%. Tanjong announced yesterday that Pan Malaysian Pools, its wholly-owned subsidiary, had been notified by the Ministry of Finance of a revision in betting duties to 8% from 6% currently. The new rate applies to draws held from Jun 2010.
Tanjong plc : Gaming Hit By A Spate Of Negatives - 02/07/2010
Tanjong plc : Gaming Hit By A Spate Of Negatives - 02/07/2010
RHB Equity 360° (B-Toto/Tanjong, Telecom, Semicon, Oil & Gas; Technical: Sinotop) - 02/07/2010
Top Story : Gaming – Pool betting duties raised by 2%-points Neutral (down from OW)
B-Toto : Struck by pool betting duty hike Market Perform (down from OP)
News Update
- BToto announced that the Ministry of Finance has raised the pool betting duty (PBD) for all NFOs to 8% (from 6%), to be applicable retroactively from 1 June 2010. Recall the PBD is applicable on gross turnover, after deduction of gaming tax of 8%.
- We understand this move by the Government comes as a surprise to the NFO players, and as such, there is no intention to revise the prize pool downwards for the moment. However, we believe this would be a matter of discussion among the NFOs as they will have to agree upon the quantum of change, if any, and apply to the Government to change it. Assuming an unchanged prize pool and no changes to our sales volume assumptions, the impact of the 2%-pt hike to BToto’s net profit is -12% p.a..
- We think that an additional risk has emerged for the gaming sector as a whole, as this move by the Government, as well as the recent abortion of the sports betting licence deal, could potentially signify a turnaround in policy with regards to the gaming sector and could mean a further crackdown on industry players. This could also potentially spell an oncoming hike in casino gaming duties (now at 25%). We
estimate every 1%-pt hike in casino gaming tax would impact earnings by 2-3% p.a..
- We have revised down our forecasts by 12-12.1% for FY11-13 to take into account the PBD hike. We have also reduced our DPS forecasts accordingly, to maintain our 80-85% net payout ratio assumption, translating to lower net yields of 5.7-6.2% p.a. (from 6-7% previously). Post-earnings revision, we reduce our DCF-based fair value to RM4.45 (from 5.05). Due to the higher risks involved in the sector, we are downgrading our recommendation to a Market Perform (from Outperform).
RHB Equity 360° ( B-Toto/Tanjong, Telecom, Semicon, Oil & Gas; Technical: Sinotop) - 02/07/2010
B-Toto : Struck by pool betting duty hike Market Perform (down from OP)
News Update
- BToto announced that the Ministry of Finance has raised the pool betting duty (PBD) for all NFOs to 8% (from 6%), to be applicable retroactively from 1 June 2010. Recall the PBD is applicable on gross turnover, after deduction of gaming tax of 8%.
- We understand this move by the Government comes as a surprise to the NFO players, and as such, there is no intention to revise the prize pool downwards for the moment. However, we believe this would be a matter of discussion among the NFOs as they will have to agree upon the quantum of change, if any, and apply to the Government to change it. Assuming an unchanged prize pool and no changes to our sales volume assumptions, the impact of the 2%-pt hike to BToto’s net profit is -12% p.a..
- We think that an additional risk has emerged for the gaming sector as a whole, as this move by the Government, as well as the recent abortion of the sports betting licence deal, could potentially signify a turnaround in policy with regards to the gaming sector and could mean a further crackdown on industry players. This could also potentially spell an oncoming hike in casino gaming duties (now at 25%). We
estimate every 1%-pt hike in casino gaming tax would impact earnings by 2-3% p.a..
- We have revised down our forecasts by 12-12.1% for FY11-13 to take into account the PBD hike. We have also reduced our DPS forecasts accordingly, to maintain our 80-85% net payout ratio assumption, translating to lower net yields of 5.7-6.2% p.a. (from 6-7% previously). Post-earnings revision, we reduce our DCF-based fair value to RM4.45 (from 5.05). Due to the higher risks involved in the sector, we are downgrading our recommendation to a Market Perform (from Outperform).
RHB Equity 360° ( B-Toto/Tanjong, Telecom, Semicon, Oil & Gas; Technical: Sinotop) - 02/07/2010
Thursday, July 1, 2010
Tanjong plc : Tanjong plc : Results In Line But Dividends Surprise - 1/7/2010
1QFY01/11 results in line. Tanjong’s 1QFY01/11 net profit of RM177m (-7.4% yoy; +54% qoq) was within our and consensus expectations, accounting for 25.5-26% of our and consensus full-year estimates.
Tanjong plc : Results In Line But Dividends Surprise - 1/7/2010
Tanjong plc : Results In Line But Dividends Surprise - 1/7/2010
RHB Equity 360° - 1 July 2010 (Strategy, Consumer, Banks, MRCB, Tanjong, Hiap Teck; Technical: Genting)
Top Story : Market Outlook & Strategy 2H2010 – Still a bumpy ride
Strategy Update
- Uncertainty persists in the global economy although we believe the risk to the global economy is a sharperthan-expected slowdown in the 2H and not a “double-dip”.
- For Malaysia, economic growth is envisaged to slow down to 4.8% yoy in the 2H, from an estimate of +8.8% in the 1H, as the “V-shape” export recovery normalised and demand from Europe and China softened. Consequently, corporate earnings growth is likely to have peaked. Market valuations, though not cheap, remain at reasonable levels.
RHB Equity 360° - 1 July 2010 (Strategy, Consumer, Banks, MRCB, Tanjong, Hiap Teck; Technical: Genting)
Strategy Update
- Uncertainty persists in the global economy although we believe the risk to the global economy is a sharperthan-expected slowdown in the 2H and not a “double-dip”.
- For Malaysia, economic growth is envisaged to slow down to 4.8% yoy in the 2H, from an estimate of +8.8% in the 1H, as the “V-shape” export recovery normalised and demand from Europe and China softened. Consequently, corporate earnings growth is likely to have peaked. Market valuations, though not cheap, remain at reasonable levels.
RHB Equity 360° - 1 July 2010 (Strategy, Consumer, Banks, MRCB, Tanjong, Hiap Teck; Technical: Genting)
Tuesday, June 22, 2010
Corporate Highlights - 22/6/2010
♦ Tanjong plc
Results Preview : 1Q Net Profit Likely Down YoY, Mainly Due To NFO
♦ Kencana Petroleum
News Update : Proposes To Take Control Of MKR1
♦ EON Capital
News Update : Primus Serves Petition Against EON Cap And Directors
Corporate Highlights - 22/6/2010
Results Preview : 1Q Net Profit Likely Down YoY, Mainly Due To NFO
♦ Kencana Petroleum
News Update : Proposes To Take Control Of MKR1
♦ EON Capital
News Update : Primus Serves Petition Against EON Cap And Directors
Corporate Highlights - 22/6/2010
Tanjong plc : 1Q Net Profit Likely Down YoY, Mainly Due To NFO - 22/6/2010
1QFY11 net profit expected to be weaker yoy but up significantly over 4QFY10. Tanjong is expected to report its 1QFY01/11 results at the end of the month. We expect 1Q net profit could be down yoy (low double-digit) due to weaker contribution from gaming and, possibly, power, while qoq, net profit is expected to be significantly higher thanks to better contribution from NFO as well as seasonally stronger results from Tropical Island.
Tanjong plc : 1Q Net Profit Likely Down YoY, Mainly Due To NFO - 22/6/2010
Tanjong plc : 1Q Net Profit Likely Down YoY, Mainly Due To NFO - 22/6/2010
RHB Equity 360° - 22 June 2010 (Tanjong, EON Cap, Kencana; Technical: CIMB)
Results Preview
- We expect Tanjong’s 1Q net profit could be down yoy (low double-digit) due to weaker contribution from gaming and, possibly, power, while qoq, net profit is expected to be significantly higher thanks to better contribution from NFO as well as seasonally stronger results from Tropical Island.
- For the power division, potential lumpy items that could impact the 1Q results include business development and bidding costs as well as scheduled maintenance expenses (RM50m budgeted for FY11). A weaker US$ vs. RM would also impact the division’s contribution.
RHB Equity 360° - 22 June 2010 (Tanjong, EON Cap, Kencana; Technical: CIMB)
- We expect Tanjong’s 1Q net profit could be down yoy (low double-digit) due to weaker contribution from gaming and, possibly, power, while qoq, net profit is expected to be significantly higher thanks to better contribution from NFO as well as seasonally stronger results from Tropical Island.
- For the power division, potential lumpy items that could impact the 1Q results include business development and bidding costs as well as scheduled maintenance expenses (RM50m budgeted for FY11). A weaker US$ vs. RM would also impact the division’s contribution.
RHB Equity 360° - 22 June 2010 (Tanjong, EON Cap, Kencana; Technical: CIMB)
Tuesday, April 13, 2010
Corporate Highlights - 13/04/2010
♦ Tanjong plc
Company Visit : Awaiting The Next Rerating Catalyst
♦ Plantation
Sector Update : Improvement In Production, But Jump In Exports Reduced Stock Levels Again
♦ Market Technical Reading
Daily Trading Strategy : Trading To Continue On Healthy Turnover..
Corporate Highlights-13/04/2010
Company Visit : Awaiting The Next Rerating Catalyst
♦ Plantation
Sector Update : Improvement In Production, But Jump In Exports Reduced Stock Levels Again
♦ Market Technical Reading
Daily Trading Strategy : Trading To Continue On Healthy Turnover..
Corporate Highlights-13/04/2010
Tanjong plc : Awaiting The Next Rerating Catalyst - 13/04/2010
Power division. The next leg of growth for the power division would depend on acquisitions and management had previously expressed a target of doubling its current power capacity to 8,000MW over the next four to five years. This could include greenfield and/or brownfield projects with particular focus on regions such as South Asia, South East Asia, Middle East and North Africa. According to management, globally, the power industry appears to be showing signs of recovery from the economic crisis and greenfield projects that were previously deferred are now seeing a return. Tanjong’s preference is for greenfield projects and management has a target IRR of low-mid teens for greenfield projects in emerging markets.
Tanjong plc :Awaiting The Next Rerating Catalyst - 13/04/2010
Tanjong plc :Awaiting The Next Rerating Catalyst - 13/04/2010
RHB Equity 360° (Tanjong, Plantation; Technical: Sunway) - 13/04/2010
Top Story : Tanjong – Awaiting the next rerating catalyst Market Perform (down from OP)
Visit Note
♦ The next leg of growth for the power division would depend on acquisitions and management had previously expressed a target of doubling its current power capacity to 8,000MW over the next four to five years. This could include greenfield and/or brownfield projects with particular focus on regions such as South Asia, South East Asia, Middle East and North Africa.
♦ While we understand Tanjong could launch a new jackpot game later this year, not many details are known at the moment. Assuming the new game brings in around RM1m in sales per draw, we estimate a full-year impact could lift our earnings projections by around 2%. As for the RTO segment, management continues to work towards a resolution to the escalating expenses but this would take time.
♦ For Tropical Islands, visitor arrivals and ARPUs have been trending up while construction of accommodation (19 homes built and sold thus far) should further help address the challenge of low weekday visitor attendances and short stay visitors. As for TGV, we expect its FY10 operating profit contribution of RM14.8m to hold steady going forward.
♦ No change to our earnings forecasts.
♦ Our SOP-derived fair value of RM19.20 is unchanged. Tanjong’s strong share price performance means that the stock’s total potential return is roughly in line with our expected market return and hence, we downgraded our recommendation to Market Perform from Outperform.
♦ That said, we believe Tanjong stands a strong chance in securing some of the new power projects, which we believe would be value accretive. Our SOP valuation does not reflect such additions and hence, we see upside potential to our fair value if Tanjong is successful with its bids.
RHB Equity 360°(Tanjong, Plantation; Technical: Sunway)-13/04/2010
Visit Note
♦ The next leg of growth for the power division would depend on acquisitions and management had previously expressed a target of doubling its current power capacity to 8,000MW over the next four to five years. This could include greenfield and/or brownfield projects with particular focus on regions such as South Asia, South East Asia, Middle East and North Africa.
♦ While we understand Tanjong could launch a new jackpot game later this year, not many details are known at the moment. Assuming the new game brings in around RM1m in sales per draw, we estimate a full-year impact could lift our earnings projections by around 2%. As for the RTO segment, management continues to work towards a resolution to the escalating expenses but this would take time.
♦ For Tropical Islands, visitor arrivals and ARPUs have been trending up while construction of accommodation (19 homes built and sold thus far) should further help address the challenge of low weekday visitor attendances and short stay visitors. As for TGV, we expect its FY10 operating profit contribution of RM14.8m to hold steady going forward.
♦ No change to our earnings forecasts.
♦ Our SOP-derived fair value of RM19.20 is unchanged. Tanjong’s strong share price performance means that the stock’s total potential return is roughly in line with our expected market return and hence, we downgraded our recommendation to Market Perform from Outperform.
♦ That said, we believe Tanjong stands a strong chance in securing some of the new power projects, which we believe would be value accretive. Our SOP valuation does not reflect such additions and hence, we see upside potential to our fair value if Tanjong is successful with its bids.
RHB Equity 360°(Tanjong, Plantation; Technical: Sunway)-13/04/2010
Thursday, March 25, 2010
Corporate Highlights...- 25/03/2010
♦ Kuala Lumpur Kepong
Visit Note : Benefitting From Its Young Age Profile
♦ Plantation
Sector Update : Closer To B5 Biodiesel Mandate Implementation
♦ Insurance
Sector Update : Capping 3rd Party Claims
♦ Infrastructure
Sector Update : SPLASH Offers To Acquire Water Assets In Selangor
♦ Gamuda
News Update : Splash Offers To Take Over Klang Valley Water Assets For RM10.75bn
♦ Tanjong plc
Results Note : 4Q Hampered By Poor Luck Factor But Dividend Surprise
Mandarin Version : Market Technical Reading : Short-term Volatility Likely To Persist...-25/03/2010
Visit Note : Benefitting From Its Young Age Profile
♦ Plantation
Sector Update : Closer To B5 Biodiesel Mandate Implementation
♦ Insurance
Sector Update : Capping 3rd Party Claims
♦ Infrastructure
Sector Update : SPLASH Offers To Acquire Water Assets In Selangor
♦ Gamuda
News Update : Splash Offers To Take Over Klang Valley Water Assets For RM10.75bn
♦ Tanjong plc
Results Note : 4Q Hampered By Poor Luck Factor But Dividend Surprise
Mandarin Version : Market Technical Reading : Short-term Volatility Likely To Persist...-25/03/2010
RHB Equity 360° (Infra, Plantation, Insurance, Gamuda, Tanjong, SapCrest, Jaya Tiasa; Technical: TDC) - 24/03/2010
Top Story :
KLK – Benefitting from its young age profile Outperform Visit Note
♦ Six key points:
1) Strong FFB growth so far in FY09/10, but this may moderate if affected by El Nino;
2) Better CPO prices to come in next few quarters as we believe KLK has already sold some of its FY10 production forward earlier, at more attractive prices;
3) No labour shortage problems yet, although this may materialise in the medium term, once labour permits start expiring;
4) Delay in new methyl ester sulfonate plant completion by 6-9 months to either 3Q/4Q FY09/10;
5) Good news from the retail division - coming from lower provisions to be made for its US store closures, and from the property division - coming from approval to start development for a new township development; and
6) Higher new land planting targets of 15,000ha p.a. (from 10,000ha)
♦ All in, we revised our forecasts down by 7.1% for FY10, 1.5% for FY11 and 18.7% for FY12.
♦ Post-earnings revision, we lower our SOP-based fair value for KLK to RM18.40 (from RM19.50) and maintain our Outperform rating. We continue to like KLK for its inexpensive valuations (as it remains the cheapest amongst the big-cap plantation stocks currently) and for its strong management with a good track record. Further catalysts could come from better-than-expected FFB production growth as well as potential return to profitability of the retail division.
RHB Equity 360°( Infra, Plantation, Insurance, Gamuda, Tanjong, SapCrest, Jaya Tiasa; Technical:TDC) - 24/0...
KLK – Benefitting from its young age profile Outperform Visit Note
♦ Six key points:
1) Strong FFB growth so far in FY09/10, but this may moderate if affected by El Nino;
2) Better CPO prices to come in next few quarters as we believe KLK has already sold some of its FY10 production forward earlier, at more attractive prices;
3) No labour shortage problems yet, although this may materialise in the medium term, once labour permits start expiring;
4) Delay in new methyl ester sulfonate plant completion by 6-9 months to either 3Q/4Q FY09/10;
5) Good news from the retail division - coming from lower provisions to be made for its US store closures, and from the property division - coming from approval to start development for a new township development; and
6) Higher new land planting targets of 15,000ha p.a. (from 10,000ha)
♦ All in, we revised our forecasts down by 7.1% for FY10, 1.5% for FY11 and 18.7% for FY12.
♦ Post-earnings revision, we lower our SOP-based fair value for KLK to RM18.40 (from RM19.50) and maintain our Outperform rating. We continue to like KLK for its inexpensive valuations (as it remains the cheapest amongst the big-cap plantation stocks currently) and for its strong management with a good track record. Further catalysts could come from better-than-expected FFB production growth as well as potential return to profitability of the retail division.
RHB Equity 360°( Infra, Plantation, Insurance, Gamuda, Tanjong, SapCrest, Jaya Tiasa; Technical:TDC) - 24/0...
Tuesday, March 16, 2010
Corporate Highlights - 16/03/2010
♦ Tanjong plc
Results Preview : A Weaker 4Q, But Largely Expected
♦ Top Glove Corporation
Results Preview : Expect Yet Another Strong Set Of Results
♦ Berjaya Sports Toto
Results Note : No Surprises
♦ Telecommunications
Sector Update : ST Telemedia To Buy 33% Stake In U Mobile
♦ Market Technical Reading
Daily Trading Strategy : Must Stabilise Around 1,300 To Attract Bargain Hunters...
Corporate Highlights - 16/03/2010
Results Preview : A Weaker 4Q, But Largely Expected
♦ Top Glove Corporation
Results Preview : Expect Yet Another Strong Set Of Results
♦ Berjaya Sports Toto
Results Note : No Surprises
♦ Telecommunications
Sector Update : ST Telemedia To Buy 33% Stake In U Mobile
♦ Market Technical Reading
Daily Trading Strategy : Must Stabilise Around 1,300 To Attract Bargain Hunters...
Corporate Highlights - 16/03/2010
Tanjong plc: A Weaker 4Q, But Largely Expected - 16/03/2010
Weaker 4Q earnings expected … Tanjong is expected to report its 4QFY01/10 results sometime next week. Our full-year net profit estimate implies that 4Q net profit could be down by around 20% yoy (ex-4QFY09 exceptionals) and 30% qoq. Both the power and gaming divisions are expected to post weaker earnings yoy and qoq (details below) while we expect a qoq drop in contribution from Tropical Island largely due to
seasonality.
Tanjong plc: A Weaker 4Q, But Largely Expected - 16/03/2010
seasonality.
Tanjong plc: A Weaker 4Q, But Largely Expected - 16/03/2010