Tuesday, November 03, 2009

Deadly Trading Day For Lityan!

And just for the record.

Lityan was relisted on Friday 30th Oct 2009.

  • Lityan surges on relisting
    Written by Joseph Chin
    Friday, 30 October 2009 09:20

    KUALA LUMPUR: Shares of LITYAN HOLDINGS BHD [] surged in early trade on Friday, Oct 30 as the shares were relisted after the completion of a restructuring exercise, with Lembaga Tabung Haji now the major shareholder.

    At 9.12am, Lityan rose 43 sen to RM1.43 with 739,800 shares done.

    The FBM KLCI rose 5.33 points to 1,247.08. Turnover was 78.9million shares done valued at RM65.56 million.

    Lityan had regularised its financial condition and resumed trading as it no longer triggered any of the criteria under Practice Note 17 (PN17) of the Main Market listing requirements.

    The reference price was RM1 and the upper trading limit 400% above.

Saturday news.

  • Lityan, partner eye chunk of TM broadband project

    Published: 2009/10/31

    LITYAN Holdings Bhd (9075) aims to secure a chunk of the high-speed broadband (HSBB) project by Telekom Malaysia (TM), its group managing director and chief executive officer Nor Badli Mohd Alias said. The information communications technology (ICT) company and its partner Huawei, the leading global telecommunications solutions provider based in China, have submitted a bid.

    "We will know the result within the next 12 months. We hope to get a significant portion of the project," he said after the company's re-quotation of shares on Bursa Malaysia in Kuala Lumpur yesterday.

    The first phase of the RM11.3 billion HSBB project covers 1.3 million premises in the inner Klang Valley and industrial areas of every state.

    As at the end of September, TM had awarded HSBB-related contract work worth RM1.186 billion, involving more than 200 local vendors.
    Meanwhile, Nor Badli said the company was also eyeing several government ICT projects which could cost a minimum US$1 million (RM3.41 million) in the Middle East, especially in Saudi Arabia.

    "We are now negotiating with the authorities and will announce the outcome by the end of the first half of next year," he added.

    He also disclosed that the company had RM40 million in cash and zero gearing.

    Lityan, which is trading again on the Main Market of Bursa Malaysia, has an outstanding order book of roughly RM200 million and this is expected to last till the end of 2011.

    Lityan's counter was last traded on June 15, 2006, prior to the trading suspension and it being classified a PN-17 company in May 2005. The company is now a subsidiary of Lembaga Tabung Haji (LTH) which has a 65 per cent equity interest.

    At the opening bell, Lityan's price stood at RM1.79, a premium of 79 sen over its offer price of RM1.00.

    Nor Badli said Lityan's comeback to the stock market was a very significant milestone as it is one of the fortunate PN-17 companies to done so.

    He said the company would continue to focus on improving the efficiency of its core businesses in view of the firmer financial footing.

    "We will start to embark on our re-branding exercise to take on the Tabung Haji identity soon."

    Lityan rose 74 sen to close at RM1.74 yesterday with 19.144 million lots traded. - Bernama

Here's another version.

  • Saturday October 31, 2009

    Lityan eyes TM broadband contract

    KUALA LUMPUR: Lityan Holdings Bhd, an information and communications technology (ICT) company, is eyeing parts of Telekom Malaysia’s (TM) RM11.3bil high-speed broadband project that is scheduled to be launch by March.

    Group managing director and chief executive officer Nor Badli Mohd Alias said the company was also pursuing some project tenders in the Middle East and should know the outcome by mid-2010.

    “We are confident of our tender to TM that we have submitted with our partner, Huawei, a leading global telecommunications solutions provider based in China. We are also eyeing several government ICT projects in the Middle East, especially in Saudi Arabia, as we now have the financial strength and also the back-up from our main shareholder, Lembaga Tabung Haji (LTH),” he said yesterday after the re-quotation of Lityan’s shares on Bursa Malaysia.

    The company came out from the Practice Note 17 (PN17) category yesterday after the completion of a regularisation plan involving capital reconstruction and debt restructuring in which LTH played the role of a white knight for a company that had languished in PN17 since 2004 after several overseas ventures fell through. LTH now holds 65% stake in Lityan.

    Nor Badli said with the completion of the plan, Lityan would now be a debt-free company.

    He also said the company now had about RM40mil in cash with an outstanding order book of about RM200mil that would last till end-2011.

    AmResearch in a report of the re-quotation said it expected Lityan’s structural industry positioning to improve significantly with LTH appointing Lityan as its total ICT outsourcing provider.

    “Prospects are underpinned by LTH emerging as a substantial shareholder in Lityan. Post-listing, it will turn Lityan into a government-linked company,” it said.

    Lityan was yesterday’s top gainer on Bursa Malaysia when it closed at RM1.74 for a 74% premium over its reference price of RM1.

    With 191 million shares traded, it was also one of the 10 most active counters.

Monday 3rd November 2009.

  • Lityan sizzles, up nearly RM1
    Written by Joseph Chin
    Monday, 02 November 2009 15:41

    KUALA LUMPUR: Shares of Lityan sizzled, jumping nearly RM1 in late-afternoon trade on Monday, Nov 2 to RM2.69 but the surge may raise concerns of a sharp pull-back later as analysts pegged a fair value of RM1.50 for the shares.

    Since it was relisted last Friday, Oct 30, the share price has jumped RM1.69 from its reference price of RM1.

    At 3.35pm, the share price was up 95 sen to RM2.69 with 21.5 million shares done.

    The FBM KLCI fell 4.64 points to 1,238.59. Turnover was 694 million shares valued at RM728 million.

    AmResearch had last Friday estimated a fair value of RM1.50 per share for Lityan and its valuation was based on 1.4 times FY10F book value -- pegged to a 10% discount of its mid-cycle price to book value (PBV) band of 1.6 times.

    To recap, the research house described Lityan as a home-grown system integration and IT solutions player with a strong track record within the government and government-linked companies sectors.

    Having been resructured the past two years, Lityan is on a strong footing to capture future growth opportunities within the local IT scene.

    AmResearch said its investment thesis on Lityan was centred on an improved structural positioning as a total ICT outsourcing provider for Tabung Haji; its record-high tender book; and potential acquisitive expansion over next 12 months and also its increased stable recurring income base.

    The research house had commented than based on its discussions with management, it learnt that Lityan's gross tender book has ballooned to a record high of RM5 billion.

    Lityan is eyeing a slice of Telekom Malaysia's RM11bil high speed broadband (HSBB) project, set for rollout over next 10 years.

    Almost half of Lityan's tender book revolves around fibre-to the-home implementation and Internet protocol television infrastructure provisions under the HSBB project scope.

Another version.

  • Tuesday November 3, 2009
    Lityan shares lifted by speculation on new GLC status
    By IZWAN IDRIS

    PETALING JAYA: Shares of Lityan Holdings Bhd posted sharp gains for a second straight day, lifted by heavy speculation that the revamped firm’s new status as a government-linked company (GLC) would put it in a better position, at least financially, to secure lucrative public contracts.

    The stock yesterday hit a high of RM2.88 but closed at RM2.70 – up 55% from Friday’s closing of RM1.74. The counter was relisted on Oct 30 at a reference price of RM1 after the completion of its restructuring exercise.

    Post-restructuring, Lityan is 56% owned by Lembaga Tabung Haji (LTH). The firm has a market value of RM170mil, based on current outstanding shares of 63 million and yesterday’s closing price. A total of 28.3 million shares were traded yesterday.

    Lityan group managing dircetor and CEO Nor Badli Mohd Alias told reporters on Friday that the company had partnered China’s Huawei to bid for part of Telekom Malaysia Bhd’s massive RM11.3bil high speed broadband project.

    Recent press reports suggested that Huawei was a leading contender for the project. “This makes Lityan an attractive stock to punters,” a head of research at a local brokerage remarked.

    Lityan is starting on a clean slate post-restructuring, and the injection of LTH’s information technology (IT) unit TH Technologies Integrated Solutions would immediately improve its profile and bump up its order book.

    So far this year, Lityan’s financial results have yet to inspire.

    It made a net profit of RM608,000 in the third quarter ended Sept 30, a slight improvement from RM597,000 in the second quarter.

    “Yes, we will do better,” Nor Badli told StarBiz in a reply via SMS yesterday on the company’s prospect for the last quarter and next year onwards.

    At least two brokerages – MIDF Research and AmResearch – projected Lityan’s net profit would hit RM8.8mil for the year ending Dec 31 (FY09). The two also have the same net-profit forecast of RM15.6mil, or 24.8 sen per share, for FY10.

    “Undoubtedly, Lityan’s financial performance will determine the direction of its share price,” MIDF Research analyst Mohd Izhar Mohd Alauddin said. Lityan operates via two main subsidiaries involved in the IT and telecommunication sectors, where competition is often tough and margins are normally thin.

    “We believe Lityan is more comparable to Heitech Padu Bhd, given that its customers are primarily government agencies and GLCs,” Izhar said.

    Despite its lack of proven track record, investors have high expectations of Lityan to deliver, judging from the stock’s steep advance post re-listing.

    It remains to be seen whether the group’s partnership with Huawei would bear fruit, and if it does, whether Lityan would be able to meet these expectations.

Yeah it made a profit of rm608,000.

Yeah.. things 'should' improve.

But at say 2.45, Lityan is valued at 154 million by the market.

Today on the Edge Financial Daily: 10.48am.

Lityan on strong footing to capture future local IT growth opportunities

  • AMRESEARCH has estimated a fair value of RM1.50 for newly relisted LITYAN HOLDINGS BHD [], based on a 1.4 times financial year ending Dec 31, 2009 book value, pegged to a 10% discount of its mid-cycle price-to-book value (PBV) band of 1.6 times.

    “Our investment thesis on Lityan is centred on an improved structural positioning as a total ICT outsourcing provider for Lembaga Tabung Haji (LTH), its record-high tender book, potential acquisitive expansion over the next 12 months, its increased stable recurring income base and its inexpensive valuation post-listing, at just four times FY10F earnings,” said the research house, which does not rate the stock.

    Lityan is a home-grown system integration and IT solutions player that has carved a strong track record with the government and government-linked companies. Following a restructuring in the past two years, the company is on a strong footing to capture future growth opportunities in the local IT scene, AmResearch said.

    “From our discussions with management, we learnt that Lityan’s gross tender book has ballooned to a record high of RM5 billion. It is eyeing a slice of TELEKOM MALAYSIA BHD []’s RM11 billion high-speed broadband (HSBB) project, set for rollout over the next 10 years,” it said.

    It added that almost half of the company’s tender book revolved around fibre-to-the-home (FTTH) implementation and Internet protocol television (IPTV) infrastructure provisions under the HSBB project scope.

    Lityan was specifically eyeing packages of projects involving the IPTV-related infrastructure provision contracts worth RM80 million, and a RM2 billion FTTH project, although this would likely be split between two or three companies.

    “Our channel checks suggest that Lityan is one of eight companies that have been shortlisted for the project,” it said.

    The research house said the company was also competing for the digital television implementation for RTM, worth RM2 billion.

    Meanwhile, Lityan’s partner, China-based Hua Wei, had a strong track record for telco-related bids in the local industry, having partnered TM for Malaysia’s 3G network deployment, it said.

    It said as of July 1, Lityan’s outstanding order book was worth RM100 million, representing 1.6 times FY08 revenue, which would keep the group busy over the next 24 months.

    “We expect Lityan’s structural industry positioning to improve significantly with LTH’s appointment of Lityan as its total ICT outsourcing provider. Prospects are underpinned by LTH emerging as a substantial shareholder in Lityan with an estimated 56% stake, post-listing, turning Lityan into a GLC (government-linked company),” it said.

    It also said an acquisitive expansion was on the cards for the company, possibly over the next 12 months, following its much-improved financial position post-restructuring, with a manageable gearing of 0.4 times, leaving room for leverage.

    Last Friday, Lityan leapt 74 sen to close at RM1.74.


    This article appeared in The Edge Financial Daily, November 2, 2009.

11:35am Update Lityan’s share price jumps

  • Update Lityan’s share price jumps

    Written by Nadia S Hassan
    Tuesday, 03 November 2009 11:35

    KUALA LUMPUR: Re-listed LITYAN HOLDINGS BHD [] saw its share price jump 55.1% to RM2.70 in its second day of trading yesterday. It had closed at RM1.74 last Friday.

    Volume was heavy with over 28 million shares traded, while its share price reached a high of RM2.88 in intra-day trade.

    According to analysts, interest in the once high-flying stock was spurred by Lityan’s ambitious plans to tender for some RM4 billion worth of projects, the bulk of which is from TELEKOM MALAYSIA BHD []’s (TM) high-speed broadband (HSBB) project.

    Almost half of Lityan’s tender book revolved around fibre-to-the-home implementation and Internet protocol television infrastructure provisions under the HSBB project scope, AmResearch said in a report last Friday.

    Lityan’s partner in most of its telco-related tenders is China’s Huawei, which according to AmResearch, has a track record of partnering TM in its 3G deployment network, which bodes well for Lityan’s chances.

    Lityan was a darling of investors prior to the Asian financial crisis, with its share price almost surpassing the RM40 mark. Confidence was driven by its portfolio of government contracts, the largest of which was to provide standardised accounting software for statutory bodies worth a potential RM500 million.

    Lityan also made its presence felt overseas with projects in the Philippines and Africa.

    However, post-1997, Lityan saw its fortunes go downhill. With most statutory bodies choosing not to standardise their systems, it only received some RM20 million to RM30 million from the project. Its overseas projects fared no better, with its African venture being completely written off.

    Even so, Lityan continued to obtain a number of government contracts and now held an order book of RM180 million, according to AmResearch. After being in limbo for a number of years, Lityan finally got its white knight in the form of major shareholder Lembaga Tabung Haji, which stepped in and made a number of management changes.

    AmResearch is positive on the new Lityan, saying: “Having restructured, Lityan will be on a much better financial footing to secure future growth opportunities — both organically and through mergers and acquisitions. During our discussions, the company hinted of possible strategic acquisitions within the next 12 months.”

    This article appeared in The Edge Financial Daily, November 3, 2009

However, the above article came AFTER the following news flash: Next >#Flash* Bursa queries Lityan over sharp rise in price, volume

  • KUALA LUMPUR: Bursa Malaysia Securities has queried LITYAN HOLDINGS BHD [], whose share price had surged more than two-fold since its resumption in trading last Friday.

    Bursa Securities had on Tuesday, Nov 3 issued an unusual market activity regarding the share price performance and surge in volume.

    At 11.05am, the share price was up 46 sen to RM3.16 with 12.5 million shares done. On Monday, it rose 96 sen.

    Bursa Securities advised investors to take note of the company’s reply to the unusual market activity query which will be posted at Bursa Malaysia’s website.

Hmm...

Come 4.34 pm, Lityan halted its own shares!

Flash Lityan falls, voluntarily suspended in late trade

  • KULA LUMPUR: Shares of Lityan Holdings fell for this first time in three days, down 25 sen to RM2.45 in late trade before it was voluntarily suspended on Tuesday, Nov 3.

    It fell 25 sen to RM2.45 with 27.29 million shares done. However, the shares have risen RM1.45 since last Friday, Oct 30, when it resumed trading at a reference price of RM1 after a debt restructuring.

    The company announced trading was halted from 4.34pm and would resume from 9am on Wednesday, on Nov 4.

    Earlier on Tuesday, the company was queried by Bursa Malaysia Securities over the sharp rise in the share price and volume.

    In its reply, Lityan said that "to the best of their knowledge, the directors are not aware of any of the following that may have caused the unusual market activity in the company's shares".

    LLityan's board said the directors were not aware of any corporate development relating to the group's business and affairs that has not been previously announced; any rumour or report concerning the business and affairs of the group; and any other reasons to account for the unusual market activity.

    "However the board is of the view that the market or public has full confidence in the company upon the implementation of the restructuring scheme.

    "Hence, the recent interest in the company's shares may be due to the fact that the company is now a 65% subsidiary of Lembaga Tabung Haji (LTH), making it a government-linked company (GLC). The company is also one of the three listed subsidiaries of LTH," it said.

This doesn't tell the whole story.

The stock was actually up by a massive 76 sen to 3.46 this morning!

And then it started to collapse in the afternoon session. The following picture tells the whole story!

Here's the minute chart of today's transactions.




2 comments:

ronnie said...

RM300k fine and suspended jail sentence. Next case ...

solomon said...

Lityan used to be a good speculation stock during the 90s. With the shares tightly held, one could suggest more UMA will be issued by Bursa before the relisting of Maxis??

If the participation in HSBB is confirmed, I think quite likely it will hit RM5. Crazy ya, not my cup of tea....better eat my char kueh teow....