Is Tony Fernandes An Angel? Does He Know The Future?

Published on Business Times:

• AirAsia, Lion Air chiefs play down rivalry
  
  Published: 2013/03/23
  
  KUALA LUMPUR: AirAsia boss Tan Sri Tony Fernandes questioned his rival's growth plans after Lion Air struck a US$24 billion (RM75 billion) Airbus order while pledging to preserve his own ties with the European jetmaker.
  
  As competition intensifies between Southeast Asia's largest budget carriers, Lion Air co-founder Rusdi Kirana shot back by targeting sharp growth in AirAsia's domestic Malaysian market.
  
  In a realignment of industry loyalties, Indonesia's Lion Air loosened exclusive ties with Boeing this week to place a 234-plane order with Airbus, which is also sole supplier to AirAsia.
  
  Asked if he was upset about the blockbuster deal between his top supplier and his closest rival, Fernandes said, "Why should I be? I think Lion has probably bitten off more than it can chew. We are focused on ourselves".
  
  Lion Air co-founder Rusdi mocked any suggestion that the airline had over-extended itself.
  
  "Is he an angel? Does he know the future?" Rusdi said when asked about Fernandes's comments.
  
  The two airline chiefs discussed the deal in separate interviews.
  
  Lion Air launched its services in Malaysia yesterday through a partially owned venture, Malindo Air, while AirAsia says it is filling planes successfully in Indonesia.
  
  Rusdi said Malindo hopes to operate 100 Boeing aircraft within 10 years.
  
  The rapid rise of both airline groups has been channelled through exclusive partnerships with jetmakers Airbus and Boeing - making the two airline bosses star players in a broader power struggle in the US$100 billion jet industry.
  
  Those battle lines were abruptly redrawn when Lion Air announced the Airbus order in Paris on Monday, doubling up on a similar order placed with Boeing just over a year ago.
  
  AirAsia has taken delivery of more than 100 Airbus A320 aircraft out of a total of 475 it has ordered.
  
  Airlines can save money by running one type of fleet but can also obtain good pricing by forcing suppliers to compete.
  
  Fernandes, who bought AirAsia together with its fleet of two Boeing 737s in 2001 and then built it into the largest operator of Airbus A320s, pledged to stick with the European planemaker.
  
  Asked whether he might consider Boeing for future orders, he reiterated he wanted to stick with one type of aircraft. The Malaysian entrepreneur studied new jets from Canada's Bombardier before striking his most recent Airbus deal, however.
  
  "I run a proper business not an emotional business," Fernandes said in an electronic interview.
  
  "They have to sell planes. How can I stop them?" he said of Airbus's three-year courtship of Lion Air.
  
  Low-cost airlines prefer operating one type of aircraft to reduce the cost of parts and separate crews. But the sheer size of some of the world's largest fleets has raised questions over whether one supplier can meet the needs of the largest airlines.
  
  Air Berlin and Norwegian Air have a mixed portfolio of jets.
  Bankers and lessors have expressed concerns that a series of record-breaking orders risks flooding Southeast Asia with too many narrowbody planes, despite projections of sharp growth.
  
  "The world is big. There is a lot of space for everybody. We should accept that competition is normal," Rusdi said.
  
  Asia is expected to double its fleet in the next 20 years. Reuters

Tony said Lion Air had bitten off more than it can chew???

Haha!

It was just on Thursday that Tony Fernandes said ‘Asia can take a LOT of planes.’

• “There are 3 billion people in Asia, there are 300 million people in America. America has about three times more planes right now than Asia,” Fernandes said in a Bloomberg Television interview at the Credit Suisse Asian Investment conference in Hong Kong yesterday. “So it can take a lot of planes.”

Yeah, if Asia can take a lot of planes, why make comments like Lion Air 'had bitten off more than it can chew?'

Why?

I have always questioned about Business Times's choice of article titles.

Here's the screen shot of today's Business Times article.

 As mentioned on Business Times, this article originated from Reuters.

For some strange reason, I decided to read Reuters article too. Dunno why. :P

http://www.reuters.com/article/2013/03/21/us-airasia-lion-idUSBRE92K0QU20130321

As you can see the article is the same!!!!

Only difference is the title!!!

The original title from Reuters is "AirAsia, Lion Air bosses spar over plane orders".
Business Times however decided the title should be "AirAsia, Lion Air chiefs play down rivalry".

Don't you wonder why Business Times always have to be so creative with its article titles?

Astro Good Results And Double Digit Revenue Rise?????

Astro announced its earnings yesterday.

These are the figures posted by Dow Jones.

The net profit dropped a lot compared to last fiscal year.

The EdgeMalaysia carried the following news.

• Astro Q4 profit down 47% to RM83m
  Business & Markets 2013
  Written by Shalini Kumar of theedgemalaysia.com  
  Thursday, 14 March 2013 18:43
  
  KUALA LUMPUR (Mar 14): Astro Malaysia Holdings Bhd recorded a net profit of RM83.2 million for its fourth quarter ended Jan 31, 2013, a 47% fall from the RM157 million it posted in the last corresponding quarter.
  
  Its quarterly revenue came in at RM1.1 billion, a slight increase over the RM1 billion it brought in last year.
  
  “The decrease in net profit is mainly due to a reduction in interest income of RM41.4 million as well as higher depreciation of RM57.5 million compared with the corresponding quarter, which resulted in lower tax expenses by RM22.3 million,” Astro said in its explanatory notes accompanying its results.
  
  For its full year to January 2013, Astro recorded a net profit of RM418 million, down 33.5% from the RM629 million it saw last year.
  
  But its 2013 revenue came in at RM4.3 billion, up by 13.2% compared to 2012’s RM3.8 billion.
  
  In a statement released to Bursa Malaysia today, Astro’s CEO Datuk Rohana Rozhan said: “Astro continues to execute strongly on its growth strategy, delivering double-digit revenue growth of 10% to RM4.3 billion in FY13.
  
  “This is as a result of new customers and good take-up of value added products and services which has contributed to the ARPU growth of 5% from RM89 to RM93.”
  
  The group has also proposed a final dividend of 1 sen per share, which is subject to shareholder’s approval.
  
  Tun Zaki Azmi, Chairman of Astro said, “Our good financial results are a reflection of the achievement of challenging targets, generating strong cash flows from operating activities.
  
  “We therefore declare a second interim single-tier dividend of 1.5 sen per share and propose a final dividend of 1.0 sen per share subject to shareholders’ approval, giving a total dividend of 4.0 sen per share since listing in October last year.”
  
  Looking forward, Rozhan added the group was now aiming to convert the rest of its residential customers to the Astro B.yond platform by the end of January 2014.
  
  “We have momentum in adding both new Pay TV and Njoi customers, and will continue to build on our 52% household penetration rate, which in turn will make Astro more attractive to media buyers,” she added.
  
  “With Astro On-The-Go, we are now bringing Astro services to customers and non-customers in Malaysia, as well as the introduction of the service beyond Malaysia, expanding our footprint beyond our traditional customers of households to individuals in Malaysia and abroad.”
  
  “We will continue to strengthen our IP assets in content, including on-demand and prepaid offerings to remain our customers’ content provider of choice,” she said.

 I was puzzled by the following statement.

• “Our good financial results are a reflection of the achievement of challenging targets, generating strong cash flows from operating activities.

Net profit dropped 47%!

This is considered good?

And I was more amused by today's headlines on Business Times.

Since the net profit dropped by 47%, Business Times decided to focus on REVENUE!

Duh!

• Astro: Double-digit revenue rise
  
  By Cheryl Yvonne Achu Published: 2013/03/15
  
  STRONG STRATEGY: Astro credits new customers, good take-up of value-added products
  
  ASTRO Malaysia Holdings Bhd's revenue rose 10 per cent to RM4.3 billion in the financial year ended January 31 2013, driven by new customers and good take-up of value-added products and services.
  
  However, net profit was down 33.5 per cent to RM418 million from RM629 million a year ago.
  
  The group has declared a second interim dividend of 1.5 sen per 10 sen share, payable on April 18, and proposed a final dividend of one sen per 10 sen share.
  
  Chief executive officer Datuk Rohana Rozhan said Astro continues to execute strongly on its expansion strategy, delivering the double-digit revenue growth.
  
  "This is a result of new customers and good take-up of value added products and services such as high definition, Personal Video Recording, Multi-room, On Demand (Astro First and Astro Best) and Superpack, which have contributed to the ARPU (average revenue per use) growth of five per cent from RM89 to RM93," she told a press conference here yesterday.
  
  Rohana said total subscribers grew by 418,000 (comprising of 209,000 for Pay TV and 209,000 for Njoi), increasing Astro's total customer base to 3.5 million and an overall TV household penetration rate to 52 per cent.
  
  For its fourth quarter ended January 31 2013, Astro recorded a net profit of RM83.2 million, down 47 per cent from RM157 million in the previous year.
  
  Revenue stood at RM1.1 billion from RM1 billion recorded in the corresponding quarter.
  
  In a filing to Bursa Malaysia yesterday, Astro said the decrease in net profit was mainly due to a reduction in interest income of RM41.4 million and higher depreciation of RM57.5 million, which resulted in lower tax expenses by RM22.3 million.
  
  Rohana said Astro is aiming to convert the rest of its residential subscribers to the Astro B.yond platform by the end of January 2014.
  
  "We have momentum in adding both new Pay TV and Njoi customers and will continue to build on our 52 per cent household penetration rate, which in turn will make Astro more attractive," she added.

Media Prima's Outlook

The version on Star Biz:

• Wednesday August 15, 2012
  Media Prima MD sees positive Q3
  KUALA LUMPUR: Media Prima Bhd group managing director Datuk Amrin Awaluddin says he expects the results of the third quarter to be better than the second quarter.
  
  “FY11 (financial year ended Dec 31, 2011) was very challenging especially in the fourth quarter, even for corporate results. Because (there are) a lot of activities in the third quarter and in the fourth quarter everything is quiet. We are targeting to perform better than in FY11,” he told a press conference yesterday.
  
  He said newsprint prices were on a downward trend because of the worldwide economic slowdown.
  
  The company reported that its second quarter net profits rose 27.8% to RM56.8mil on revenue of RM447.62mil from RM421.67mil in the previous corresponding period.
  
  It had also declared an interim single-tier dividend of 3 sen per share for FY12 which will be paid on Sept 28

Source: http://biz.thestar.com.my/news/story.asp?file=/2012/8/15/business/11858278&sec=business

The version on Sun Daily:

• Media Prima warns of challenging outlook Posted on 14 August 2012 - 07:45pm
  Last updated on 14 August 2012 - 07:52pm
  
  Eva Yeong
  
  From left: Amrin, Media Prima chairman Datuk Johan Jaafar and group CFO Mohamad Ariff Ibrahim at the analysts and media briefing on its Q2 financial results. Saiful Hizam Mansor/THESUN
  
  KUALA LUMPUR (Aug 14, 2012): Media Prima Bhd, which posted a 27.7% rise in second-quarter net profit to RM56.8 million from RM44.4 million a year ago, has warned that the operating environment in the media industry will continue to be challenging.
  
  "(This is) not only for television, but across all the platforms that we are in, including radio and newspaper... (sales) cannibalisation is happening not just in specific media platforms but across all media platforms," its group managing director Datuk Amrin Awaluddin told reporters today when announcing Media Prima's financial results for the second quarter ended June 30, 2012.
  
  "In terms of the introduction of new pay channels, new platforms such as the advent of digital TV and mobile players becoming IPTV (Internet Protocol television) players, it poses a challenge but it is also good for Media Prima because we are a content company," he added.
  
  Media Prima is thus strategising itself to sell content and reduce its dependence on advertising revenue. TV and print media currently contribute 40% each to the group's revenue, with the rest coming from outdoor media, radio networks and new media.
  
  For Q2, Media Prima saw its revenue grow 6.16% to RM447.6 million from RM421.7 million a year ago, due to continuous investment in content creation.
  
  It declared an interim single-tier dividend of three sen per share for the current financial year ending Dec 31, 2012 (FY12), payable on Sept 28.
  
  Amrin also attributed the improved Q2 revenue to higher advertising spending during the Euro 2012 football tournament and a general improvement in the economy.
  
  "We will continue to be innovative in our business while developing new products and new markets. Our viewers watched the Euro 2012 matches not only via TV3 and ntv7, but through our Tonton portal as well as on big screens at our ground events," he said.
  
  However, Media Prima saw its net profit for the first half fall 2% to RM77.6 million from RM79.2 million a year ago, dragged down by a weak performance in Q1.
  
  Revenue rose 1% to RM782.9 million from RM775.9 million a year ago.
  
  For Q3, Amrin expects an improvement in the group's performance due to events and festivities namely Olympics Games, Hari Raya and Deepavali.
  
  "The big question is the fourth quarter of this year, with the impending general election and US presidential elections (taking place). For instance, Q42011 was a very challenging period where many companies' results were down due to the global economic uncertainty. We hope to have a better overall year but much depends on the economy," he said.
  
  The group has embarked on a strategy to solicit new types of advertisers such as small and medium enterprises, which hardly advertised in the past.

Source: http://www.thesundaily.my/news/463304 Confusing post titles?

MRCB Net Profit Rises to RM91.9M???

On Business Times this morning:

• MRCB net profit rises to RM91.9m
  
  Published: 2012/02/09
  
  KUALA LUMPUR: Malaysian Resources Corporation Bhd's (MRCB) net profit for the year ended December 31 2011 rose to RM91.92 million from RM73.79 million recorded previously.
  
  Group revenue edged up to RM1.21 billion from RM1.07 billion a year ago.
  
  MRCB said the improved performance was due to higher contribution from its ongoing and encouraging strata office sales of property development projects at Kuala Lumpur Sentral.
  
  The group recorded a slightly lower net profit of RM31.95 million in the fourth quarter compared with RM39.2 million previously.
  
  The lower profit was due mainly to recognition of full cost for variation order claims of which recovery of the same is pending clients' approval.
  
  Group net asset per share increased to 98.1 sen as at December 31 last year from 93 sen recorded as at end-2010.
  
  MRCB chief executive officer Datuk Mohamed Razeek Hussain said the group expects to deliver another year of revenue growth in 2012. This will be driven by ongoing property development projects in Kuala Lumpur Sentral, outstanding construction order book and the opening of the Eastern Dispersal Link Expressway (EDL).
  
  "However, given the intense competition within the construction industry and the anticipated start-up losses from the EDL, the board expects the profitability growth for the group to be challenging," he said in a statement yesterday.

All sounds so rosy except for that statement highlighted in red...

• The group recorded a slightly lower net profit of RM31.95 million in the fourth quarter compared with RM39.2 million previously.

rm 31.95 million compared with rm 39.2 million equals to 'SLIGHTLY LOWER'??

!!!

Here's the VERSION from the EdgeMalaysia... which is rather ......

• MRCB 4Q earnings down 37% to RM26.1m from RM41.50m yr ago
  Written by Joseph Chin of theedgemalaysia.com
  Wednesday, 08 February 2012 18:55
  
  KUALA LUMPUR (Feb 8): MALAYSIAN RESOURCES CORP []oration Bhd’s (MRCB) net profit fell 37% to RM26.11 million in the fourth quarter ended Dec 31, 2011 (4Q 2011) from RM41.50 million a year ago.
  
  It said on Wednesday the group recorded a slightly lower profit before taxation amounting to RM42.5 million for 4Q 2011 compared to RM49.3 million in 4Q 2010.
  
  “The lower profit reported was due to recognition of full cost for variation order claims of which recovery of the same are pending clients’ approval,” it said.
  
  Its revenue rose 8.6% to RM470.38 million from RM433.12 million. Its earnings per share were 1.88 sen compared with 3.01 sen. It proposed dividend of 2.0 sen a share compared with 1.50 sen a year ago.
  
  For the financial year ended Dec 31, 2011, its net profit rose 15.1% to RM77.46 million from RM67.27 million. Its revenue increased by 13.6% to RM1.213 billion from RM1.067 billion.
  
  “The improved performance in revenue and profitability in the current financial year was due to higher contribution from the group’s on-going and encouraging strata offices sales from property development projects at Kuala Lumpur Sentral.
  
  “However, this was offset by lower revenue from the infrastructure and environmental segment due to completion of existing environmental projects,” it said.
  
  On the outlook for 2012, MRCB expected to deliver another year of revenue growth, driven by on-going property development projects in Kuala Lumpur Sentral, outstanding CONSTRUCTION [] order book and the opening of the Eastern Dispersal Link Expressway (EDL).
  
  “However, given the intense competition within the construction industry and the anticipated start up losses from the EDL, the board expects the profitability growth for the group to be challenging,” it said.

Shall we say... dare to be different!!?

Well for what it's worth, here's the numbers highlighted by Dow Jones Newswire...

Is XDL Talking To Air Or Talking Air?

In the posting Would You Bet On XiDeLang (XDL) ???, I highlighted the new twist in bold published on BTimes.

Let me repeat once again:

• "Ding will reject the offer from Navis, and instead put in a rival proposal to create liquidity in the market place," a person familiar with the company said yesterday.

It was utterly nonsense.

Think about it.

Fact: The talk with Navis was purely informal.

Fact: The talk happened FEW MONTHS ago.

And if that's the case, why on earth is XDL making such a big fuss over it? And worst still Ding is said to reject the offer from Navis.

How?

If he had NO intention to accept the offer, an offer made few months ago, why make such a big fuss? Heck, XDL was even suspended so that it can make this announcement of 'no substance' (Yeah, in my flawed opinion, there's no substance. It was an informal discussion and no price was even mentioned! )

But note the snakey spin put on it.

• "put in a rival proposal to create liquidity in the market place,"

Oh yeah, with such a statement, XDL was going to have to answer to Bursa once more.

And the reply was not shocking at all.

• Reference is made to the news article published on page B2 in the Business Times entitled “Xidelang board to meet over Navis’ buyout offer” in particularly the following sentences:-
  
  “…instead put in a rival proposal to create liquidity in the market place”
  
  “It will be a script based reward exercise”
  
  “….Ding will likely propose that XiDelang to undertake a bonus issue and a warrant exercise so that…..”
  
  XDL, after having made due and diligent enquiry with the Board of Directors, major shareholder, namely HongPeng International Holdings Ltd and all such persons reasonably familiar with the above matter, wishes to inform that the Management has merely engaged in exploratory discussions with various professionals to undertake various corporate proposals to enhance value for the Company and shareholders. However, no concrete plans or proposal has been finalised at this juncture.
  
  XDL will make the necessary announcement to Bursa Malaysia Securities Berhad (“Bursa Securities”) in a timely manner in accordance with Bursa Securities Listing Requirements, should there be any further development on this matter.

Exactly!

Another exploratory discussion only.

NO CONCRETE PLANS yet!.

Is this talking to air or talking air?

I dunno.

I guess when the boss is frustrated with the stock lousy performance in the exchange, anything is possible!

And best of all, BTimes carried yet another article on XDL.

Yeah..... OMG!

• Xidelang in talks to boost shareholder value
  
  By Francis Fernandez Published: 2012/01/12
  
  KUALA LUMPUR: Xidelang Holdings Ltd, China's second largest maker of running and skateboard shoes, says it's in exploratory discussions with various professionals to undertake various corporate proposals to enhance shareholder value.
  
  The company said this in a statement to Bursa Malaysia yesterday, in response to an article in Business Times which stated that the mainland-based company is considering a script-based exercise to reward its shareholders.
  
  Business Times had reported that Xidelang could introduce a bonus-cum-warrants exercise so that shareholders, who did not directly benefit from Xidelang's growing business, will be rewarded in the market place.
  
  Xidelang's share price had fallen by as much as 35 per cent last year to 29.5 sen a share.
  
  This year, however, the shares are up by as much as 25 per cent to close the trading day at 38 sen.
  
  Up to the nine months ended September 30 2011, Xidelang's pre-tax profit stood at RM84.52 million, while for the 12 months of 2010, the company's pre-tax profit stood at RM106.78 million.
  
  As it stands, Xidelang is the only China-based company traded here with a consistent dividend policy in place.
  
  Xidelang paid out a 1.5 sen dividend in 2010 and a one-sen dividend the following year, giving shareholders a 12-month dividend yield of 2.63 per cent a year.
  
  The company also has about RM134 million in cash, while its book value per share comes in at just under 60 sen.
  
  Xidelang is the third China-based company to be listed on Bursa Malaysia.\

One huge article just to say "Xidelang Holdings Ltd, China's second largest maker of running and skateboard shoes, says it's in exploratory discussions with various professionals to undertake various corporate proposals to enhance shareholder value".

Duh!

Pos Malaysia To See 2 Billion In PROFITS???

On Business Times:

• DRB-HICOM sees RM2b Pos profit
  Published: 2012/01/11
  :
  DRB-HICOM has identified 17 areas of new businesses that can be tapped through Pos Malaysia including collaborating with Bank Muamalat Malaysia
  
  KUALA LUMPUR: DRB-HICOM Bhd expects Pos Malaysia Bhd to generate RM2 billion in earnings by 2015, said DRB HICOM's managing director Datuk Seri Mohd Khamil Jamil.
  
  DRB HICOM owns 32.27 per cent of Pos Malaysia, the country's largest postal company. It acquired the stake from Khazanah Nasional late last year for RM622.79 million or RM3.60 per share.
  
  For the year ended December 31 2010, Pos Malaysia earned RM1.01 billion in sales, while pre-tax profit stood at RM99.06 million. Up to the nine months ended September 30 2011, Pos Malaysia's revenue stood at RM883.98 million, while pre-tax profit came in at RM128.55 million.
  Mohd Khamil said that DRB- HICOM had identified 17 areas of new businesses that can be tapped through Pos Malaysia including collaborating with Bank Muamalat Malaysia Bhd.
  
  "The management of Pos Malaysia had put forward more than 39 points of its transformation plans," Mohd Khamil said, noting that Pos Malaysia had 39 points of transformation plan before it was handed over and after being acquired.
  
  Moving forward, DRB-HICOM plans to take Pos Malaysia to the next level of growth despite the postal business being a sunset industry. Worldwide, postal businesses have slowed down as people are moving away from traditional postal mail.
  
  "The margin to improve is tremendous if we concentrate on courier services," he said noting that courier services have about RM1.6 billion worth of business to tap on.

2 Billion in profits????

OMG!

Here we go again... the sound good news!

From The Edge Malaysia: UEM Land's Target Price Is ....

UEM Land's closing price yesterday was 2.28.

And then I saw this stange article from the EdgeMalaysia. It said HDBSVR sees upside for UEM Land and the TP is rm 2.30!

I went... huh????

UEM Land last traded at 2.28 woh...

TP at 2.30???

Is HDBSVR going bonkers??? Or is the EdgeMalaysia goofing up?

Here's the article: http://www.theedgemalaysia.com/business-news/198913-hdbsvr-sees-upside-for-uem-land-tp-rm230.html

• HDBSVR sees upside for UEM Land, TP RM2.30
  Written by theedgemalaysia.com
  Friday, 06 January 2012 09:11
  
  KUALA LUMPUR (Jan 6): Hwang DBS Vickers Research (HDBSVR) sees the successful talks between the governments of Malaysia and Singapore as a strong boost to the prospects of Iskandar Malaysia.
  
  The research house said on Friday that Iskandar Malaysia is expected to reach its tipping point in 2012 following the completion of key catalyst developments and infrastructure improvements.
  
  The industrial cooperation work group may serve as a springboard for more investments from Singapore into Iskandar Malaysia which has received RM77.8 billion worth of committed investments as at Dec 2011.
  
  HDBSVR said UEM Land will be the largest beneficiary of improving Malaysia-Singapore ties given that it is the largest landowner in Iskandar Malaysia with 11,000 acres in Nusajaya.
  
  UEM Land is also the project manager for the M+S Pte Ltd developments (S$11bn) in Singapore. Assuming project management fee of 3% of GDV and a 50% share, it could boost UEM Land’s RNAV by an additional 1.3% or 5 sen/share.
  
  “Maintain Hold call for UEM Land with RM2.30 TP, based on 40% discount to RNAV of RM3.82,” it said.

Ahh... the last line.... “Maintain Hold call for UEM Land with RM2.30 TP, based on 40% discount to RNAV of RM3.82,”

!!!!!

Another Fine Mess From OSK Research?

A brand New Year and a brand NEW MESS from OSK Research?

Well, just in case you need to know, I am NOT a fan of OSK Research at all. It's well documented on this site, the reasons why I reckon they are simply way below par. (for example do read: QC And The Research Reports or past postings

This morning, I noted this stunning snippet from Business Times: It’s OSK Research, not MCIL   (do note, that BTimes link is not a permanent link! )

• It’s OSK Research, not MCIL
  
  Published: 2012/01/04
  
  KUALA LUMPUR: Our report published on January 3 headlined “MCIL: Payout ratio of 60pc for next two years”, should quote OSK Research and not Media Chinese International Ltd (MCIL).
  
  MCIL has clarified that it has not at any time released any statement which forms the basis of the article.
  
  “We have also not given any statement stating that among others, we will be incorporating a payout ratio of 60 per cent for the next two years nor have we given any opinion on the exchange rate for USD into RM,” the company said in a statement.

So I decided to check Btimes 6 day's archive for yesterday's article: http://www.btimes.com.my/Current_News/BTIMES/6days_html?myday=Tuesday

That article could not be found. Googled it. I got this not working link: Media Chinese Int'l: Payout ratio of 60pc for next two years

But luckily I got a copy of that article. Business Times wrote the following:

• Media Chinese Int'l: Payout ratio of 60pc for next two years
  
  Published: 2012/01/03
  
  KUALA LUMPUR: Media Chinese International Ltd (MCIL) sees that its dividend surprises are likely to go forward to right-size the group's balance sheet.
  
  MCIL said it is incorporating a payout ratio of 60 per cent for the next two years, which translates into a decent yield of more than five per cent per year.
  
  MCIL was formed by the merger of Sin Chew Media Corp Bhd, Nanyang Press Holdings Bhd and Hong Kong-based Ming Pao Enterprise Corp Ltd.
  
  It emerged with four core daily publications in Malaysia, which are Sin Chew, Nanyang, China Press, and Guang Ming.
  
  MCIL came off a stellar 2011 with a nine-month advertising and expenditure (adex) growth of 10.4 per cent year-on-year.
  
  It saw a positive momentum spilling over to 2012, with adex likely to close at two times its 2012 gross domestic product growth forecast of 5.2 per cent.
  
  "It is expected to be boosted by upcoming major adex-friendly events such as the national snap polls and Euro 2012 in the middle of the year," MCIL said in a statement last week.
  
  Newspaper remains the largest advertising medium with more than 50 per cent share of total adex.
  
  Newsprint makes up more than 40 per cent of MCIL's financial year 2011 operating costs.
  
  It said that in the event of a sharp spike in newsprint prices, the negative impact would be partially mitigated by continuous weakness in the US dollar against the ringgit for which it is targeting to close the year at RM3 per US dollar compared with RM3.15 currently.

That was what Business Times wrote!

• MCIL said it is incorporating a payout ratio of 60 per cent for the next two years

Now interestingly, the Sun Business carried the following article on 1st Jan 2012: MCIL is OSK's top pick in media sector ( I know, I know... it's sounding like a circus.... he says she says he says... )

• MCIL is OSK’s top pick in media sector
  Posted on 1 January 2012 - 08:18pm
  
  PETALING JAYA (Jan 1, 2012): Media Chinese International (MCIL) is OSK Research's top pick in the media sector, supported by its strong management, sturdy 2012 advertising expenditure (adex) growth and its near-monopoly of the Chinese daily space in the country.
  
  The research house has maintained its buy call on MCIL at RM1.27, with an unchanged fair value of RM1.47 based on 13 times CY12 price/earnings ratio.
  
  "In view of the volatile global equity markets, we believe MCIL would also appeal to risk-averse investors given its decent dividend yield and relatively defensive earnings," it said in a report.
  
  For the first nine months of 2011, Malaysia's adex grew 10.4% year-on-year and the momentum is expected to spill over to 2012, with adex likely to close at two times OSK's 2012 GDP growth forecast of 5.2%.
  
  "It is expected to be boosted by upcoming major adex-friendly events such as the national snap polls and Euro 2012 in the middle of the year. Newspapers remain the largest advertising medium with more than 50% share of total adex. We believe that MCIL could again emerge as a key beneficiary, bolstered by its stranglehold in the Chinese daily segment as its adex share approaches a new high of 75%," OSK said.
  
  With over 40% of its FY11 operating costs coming from newsprint, MCIL is expected to benefit from newsprint prices that are likely to hover at the current US$600-650 per tonne in 2012, given worries over the global economy and Europe's deepening sovereign debt crisis.
  
  "In the event of a sharp spike in newsprint prices, which we believe is unlikely at this point of time, the negative impact would be partially mitigated by continued weakness in the USD against RM, for which we are targeting to close the year at 3.0 compared with 3.15 currently," said OSK.
  
  As of Q1 FY03/12, MCIL was sitting on a net cash hoard of RM370 million, representing 15% of its current market capitalisation. OSK said the group is a cash cow in the making with its strong cash generation of an estimated RM320 million a year.
  
  "And given its minimal annual capital expenditure of RM30 million, we believe that dividend surprises are likely, going forward, to right-size the group's balance sheet. We are incorporating a payout ratio of 60% for the next two years, which translates into a decent yield of more than 5% per annum," it added.
  MCIL is the result of a mega-merger involving Sin Chew and Nanyang, with Hong Kong's Ming Pao. Today, it has four core daily publications in Malaysia namely Sin Chew, Nanyang, China Press and Guang Ming, one in Hong Kong under the Ming Pao brand, and a few magazine titles as well as a Hong Kong travel business.
  
  The group's core Malaysian operations still contribute a significant 85% of group EBIT given its near-monopoly of Chinese daily publications, with the lion's share of 85% of the market.
  

Hmm.. and so for once (gulped) ... I would not fault OSK Research here. They have stated their reasoning ( ... but.. but... one could also start arguing the validity of OSK's reasoning, given the fact that MCIL had disputed this 60% payout assumption!!! ) and the Sun reported it as it is wheres Business Times just zoomed in to the juicy part and highlighted it!!!

Just to make it more interesting... the EdgeMalaysia reported the following yesterday evening. Media Chinese Intl director sells 400000 shares

• Media Chinese Intl director sells 400,000 shares
  KUALA LUMPUR (Jan 3): MEDIA CHINESE INTERNATIONAL LTd director Tiong Kiew Chiong disposed of 400,000 shares in the open market on Dec 30.
  A filing to Bursa Malaysia on Tuesday showed he disposed of the shares, representing 0.03%, for RM1.19 a share.
  After the disposal of the stake, Tiong’s stake was reduced to 3.607 million shares

And The Motor Vehicle Sales Is Down And UP...

Here's the Edge Malaysia version:

• MAA: November vehicle sales at 48,702 units, dn 9% on-month
  Written by Joseph Chin of theedgemalaysia.com
  Friday, 16 December 2011 16:23
  
  KUALA LUMPUR (Dec 16): The Malaysian Automotive Association expects vehicle sales to moderate further in December, extending the decline from November where sales were lower at 48,702 units.
  
  It said in a statement on Friday the November sales were down 4,913 units or 9% from October’s 53,615 units. However, when compared to a year ago, sales climbed 9%.
  
  MAA said the slower sales were also due to the severe floods in Thailand which had disrupted certain makes of vehicles. Of the 48,702 units, passenger vehicles accounted for 42,754 and the remaining 5,948 were commercial vehicles.
  
  “Sales volume for December 2011 is expected to moderate further due to the preference of customers to wait and take delivery of 2012 production year stocks and also the impact of the floods in Thailand may affect supply,” it said.
  
  The trade body said from January-November, total vehicle sales rose marginally to 552,561 units from 550,391 in the previous corresponding period. Passenger vehicles accounted for 492,884 units and the remaining 59,677 units were commercial vehicles.
  
  MAA data also showed that total production in November declined to 35,355 units from 36,265 units a year ago. Year-to-date, it said production fell 4.6% to 501,755 units from 526,194 units in the previous corresponding period.

Link to article:  http://www.theedgemalaysia.com/business-news/198008-maa-november-vehicle-sales-at-48702-units-dn-9-on-month.html

Here is the Star Biz version:

• Saturday December 17, 2011
  Vehicle sales up 8.6% in November
  By FARAH FAZANNA ZULZAHA
  
  KUALA LUMPUR: Total vehicle sales rose 8.6% to 48,702 units in November, from the 44,845 units sold in the same month last year, said the Malaysian Automotive Association (MAA).
  
  It also said that November sales were down 9%, or 4,913 units, from October.
  
  However, compared with a year ago, sales in November registered an increase of 9%.
  
  Of the 48,702 units, passenger vehicles accounted for 42,754; the remaining 5,948 were commercial vehicles.
  
  MAA said in a statement that the slower sales were due to the floods in Thailand, which had disrupted the production of certain makes of vehicles.
  
  From January to November, total vehicle sales rose to 552,561 units from 550,391 in the previous corresponding period.
  
  Passenger vehicles accounted for 492,884 units and the remaining 59,677 units were commercial vehicles.
  
  MAA data also showed that November total production declined 2.5% from 36,265 units in a year ago to 35,355 this year.
  
  Year-to-date, it said production fell 4.6% from 526,194 units to 501,755 units in the previous corresponding period.
  
  “Sales volume for December is expected to moderate further and customers are advised to wait and take delivery of 2012 production year stocks and the impact of floods in Thailand may affect supply,” said MAA.

Link to article: http://biz.thestar.com.my/news/story.asp?file=/2011/12/17/business/10114594&sec=business

Bernama's Amazing Article On Lingui

Just noticed the following article from Bernama published on Star Biz: Lingui first quarter pretax profit up 65%

• Saturday November 5, 2011
  
  Lingui first quarter pretax profit up 65%
  
  KUALA LUMPUR: Lingui Developments Bhd registered a 65.15% increase in pretax profit for the first quarter ended Sept 30, 2011 to RM24.04mil from RM14.56mil in the corresponding three-month period.
  
  Its revenue grew 19.16% to RM435.01mil from RM365.06mil.
  In a statement, Lingui said gross profit for the period increased 58.61% to RM34.03mil from RM21.46mil previously.
  
  “The increase in the group’s core profit before taxation was mainly attributed to strong operating results from the logs segment. In addition, the return to profitability of the group’s plywood and veneer operation also contributed significantly to this quarter’s performance,” it said.
  
  Lingui said the group’s performance in future quarters might be affected if the correction in timber prices following Japan’s delay in commencing its post earth quake reconstruction, was prolonged.
  
  “Although faced with a volatile and uncertain operating environment, the group continues to work on improving operational efficiency by enhancing the productivity of its workforce and equipment fleet and emphasising tight control over cash cost of production,” it added. — Bernama

How?

Sounds pretty good, yes?

Now compare that article to this one from the Edge: Lingui posts RM28m 1Q net loss

• Lingui posts RM28m 1Q net loss Written by Max Koh
  Friday, 04 November 2011 11:52
  
  KUALA LUMPUR: Lingui Developments Bhd posted a net loss of RM28.1 million for 1QFY12 ended Sept 30, compared with a net profit of RM39 million a year earlier. Revenue was up 19% year-on-year to RM435 million.
  
  In its notes to Bursa Malaysia, the timber company attributed the net loss to changes in fair value of biological assets less estimated point-of-sale costs of RM25.9 million, foreign exchange differences amounting to RM15 million, and losses in associates and joint-controlled entities of RM8.6 million.
  
  Lingui also noted that it saw lower sales of its timber products during the quarter.
  
  Lingui sold 186,501 cubic metres of hardwood logs at an average price of RM484 per cu m during the quarter. “Prices for hardwood logs achieved by the group remain stable due to tight log supply and relatively robust demand from India and China,” it said. It also sold 133,188 cu m of softwood logs at RM299 per cu m, and 55,910 cu m of plywood at RM1,902 per cu m.
  
  Lingui posted an operating profit of RM19.5 million in the quarter compared with RM9.6 million a year earlier.
  
  At the company AGM yesterday, managing director Yaw Chee Ming said Lingui is planning to invest RM143 million in FY12 for timber replanting efforts, infrastructure and upgrading of equipment. He said Lingui is looking at replanting 10,000ha to 15,000ha of its Sarawak timber plantation in FY12.
  
  “Our hardwood trees mature between eight and 10 years. We have planted some 30,000ha and hope to replant up to 15,000ha,” he said, adding that replanting costs RM4,000 to RM5,000 per ha.
  
  Lingui is planning to invest in and upgrade its machinery to cope with the worker shortage in Indonesia.
  
  On its softwood plantations in New Zealand, Yaw said Lingui plans to increase its harvest to 800,000 cu m per year in the next two to three years, with the upgrading of infrastructure and amenities.
  
  “We are investing between RM8 million and RM12 million to build roads and other infrastructure that will help increase our harvest,” he said. Lingui harvested 520,000 cu m of softwood for FY11.
  
  On its outlook, Yaw said hardwood prices have softened and are expected to maintain at current levels given the stable demand from China and India. “Demand for hardwood from India has been quite stable despite concerns of inflation. Demand from China has remained stable although there was a slight decline,” said Yaw.
  
  He added that plywood prices have already peaked on speculation on the rebuilding in Japan after the March 11 disaster. “The price has eased since. We expect prices to pick up again once the rebuilding in Japan begins and the stock depletes,” said Yaw.
  
  Analysts are expecting the rebuilding in Japan to begin next year, which would increase demand for plywood. Lingui exports 60% of its plywood to Japan.
  
  For FY11, Lingui posted RM191.7 million in net profit on the back of RM1.65 billion in revenue. It has 721,00ha of forest concessions in Sarawak and 35,000ha of forest plantations in New Zealand. It also has an associate stake in Glenealy Plantations (Malaya) Bhd.
  
  Lingui’s stock has fallen 40% in the last six months to a low of RM1.10 before closing at RM1.54 yesterday.
  
  
  This article appeared in The Edge Financial Daily, November 4, 2011

In short..

How?

Hello Bernama!!!

The Local Media's Coverage Of BLand Earnings

On the Edge yesterday: Berjaya Land sinks into red with 4Q net loss

• KUALA LUMPUR: BERJAYA LAND BHD [] went into the red in the fourth quarter ended April 30, 2011 with net losses of RM4.68 million compared with net profit of RM72.07 million a year ago due various factors including impairments and loss on disposal of certain quoted investments.
  
  It said on Monday, June 27 that revenue fell 5.83% to RM1.062 billion from RM1.128 billion mainly due to the lower property sales from the property development business.
  
  Pre-tax profit was RM105.1 million compared with RM161.2 million a year ago. Loss per share was 0.09 sen compared with earnings per share of 1.44 sen.
  
  “The drop in pre-tax profit for the quarter under review was mainly due to the impairment in value of certain property, plant and equipment and quoted investments coupled with loss on partial disposal of equity interest in a subsidiary company and certain quoted investments, as well as share of losses from jointly controlled entities,” it explained.
  
  The board recommended a final dividend of 1.0 sen per ordinary share of 50 sen each less 25% income tax.
  
  For the financial year ended April 30, 2011, its earnings fell 28.1% to RM80.44 million from RM111.96 million. Pre-tax profit dipped to RM458.57 million from RM465.79 million. Revenue was marginally higher at RM4.06 billion versus RM4.05 billion.
  
  The lower pre-tax profit was mainly due to lower profit contribution from BERJAYA SPORTS TOTO BHD [] as its principal subsidiary, Sports Toto (Malaysia) Sdn Bhd, was adversely affected by the increase in Pool Betting Duty from 6% to 8% effective June 1, 2010 and higher prize payout.
  
  This impact was mitigated by the reduction in the 4D Big Special Prize effective Dec 15, 2010. In addition, certain resorts of the group which are upgrading certain category of rooms incurred higher charge out of room refurbishment expenditure this year.

The SunBiz today, carried this version: BLand posts pre-tax profit of RM458m in FY11

• BLand posts pre-tax profit of RM458m in FY11
  
  Posted on 28 June 2011 - 05:41am
  
  PETALING JAYA (June 27, 2011): Berjaya Land Bhd (BLand) posted a slightly lower pre-tax profit of RM458.57 million for the financial year ended April 30, 2011 (FY11) from RM465.79 million a year ago on lower profit contribution from the gaming business due to the impact from the increase in pool betting duty from 6% to 8% in June last year and higher prize payout.
  
  However, the impact was mitigated by the reduction in the 4D Big Special Prize last December.
  
  In addition, certain resorts of the group, which are upgrading certain category of rooms, incurred higher charge out of room refurbishment expenditure in FY11.
  
  The impact on the earnings was partly mitigated by the gain on disposal of an associated company and favourable fair value changes of certain of the group's quoted investments, BLand said on Monday.
  
  Revenue in FY11 was marginally higher at RM4.06 billion against RM4.05 billion a year ago.
  
  On a quarterly basis, BLand's pre-tax profit for the three months ended April 30, 2011 (Q4) was lower at RM105.14 million against RM161.24 million mainly due to the impairment in value of certain property, plant and equipment and quoted investments coupled with loss on partial disposal of equity interest in a subsidiary company and certain quoted investments, as well as share of losses from jointly-controlled entities.
  
  Revenue in Q4 was RM1.06 billion compared with RM1.13 billion a year ago.
  
  "Barring unforeseen circumstances, the directors are of the view that the group's performance for the financial year ending April 30, 2012 will remain satisfactory," BLand said in a statement.
  
  BLand has recommended a final dividend of one sen a share less tax.

The Star Biz and Business Times did not report on BLand's earnings.

Hmmm... interesting?

Are we playing spot the difference or what?

Both articles appears to be correct with its facts but .... aren't they .... different?

How?

How is our local stock exchange going to attract more 'investors' when the local media publish rather 'different' set of news?

I mean, which set of news, should the 'reader' trust?

I understand that investors should know what they are buying and investors should do some form of research before investing but what chances do they stand if the local media spins out news like this?

And then Bland earnings itself.

They, the media, focus on 'pre-tax' profit but isn't 'pre-tax' meaningless to the investor?

Think about it.

At the end, doesn't the company, Bland, still have to pay tax? Or tax is free?

If not, why is the SunBiz making such meaningless comparison?

• On a quarterly basis, BLand's pre-tax profit for the three months ended April 30, 2011 (Q4) was lower at RM105.14 million against RM161.24 million....

And the Edge article...

• BERJAYA LAND BHD [] went into the red in the fourth quarter ended April 30, 2011 with net losses of RM4.68 million compared with net profit of RM72.07 million a year ago due various factors including impairments and loss on disposal of certain quoted investments..

So losses were caused by impairments and loss on disposal of certain quoted investments...

Now surely the inquiry mind would want to know what the impairments were and what the certain quoted investments were?

And here's the Edge or is it Bland explanation..

• “The drop in pre-tax profit for the quarter under review was mainly due to the impairment in value of certain property, plant and equipment and quoted investments coupled with loss on partial disposal of equity interest in a subsidiary company and certain quoted investments, as well as share of losses from jointly controlled entities,” it explained

 Err..  how? Doesn't explain much, doesn't it?

Don't You Ever Trust Them Headline News

I got so excited when I saw the headlines.

Them foreign funds are backkkkkkkkkkk and they are buying!

This is a must read news clip for me. So there I was getting all excited reading the news piece.

• Foreign funds buy RM3.8b stocks in two weeks
  
  By Goh Thean Eu Published: 2011/05/09
  
  Analysts, however, feel it is too early to conclude that the buying spree will be sustainable over the long term.
  
  Kuala Lumpur: Foreign funds were net buyers of Malaysian stocks over the past two trading weeks.
  
  Analysts, however, feel it is too early to conclude that the buying spree will be sustainable over the long term.
  
  Since April 20, foreign funds bought shares worth RM3.8 billion, while they sold about RM3.4 billion worth of shares, which translated into a net purchase of about RM320 million worth of shares.
  
  Foreign funds were net buyers for nine consecutive days beginning April 20.
  
  During the period, the FTSE Bursa Malaysia KLCI rose almost 10 points, or 0.7 per cent, to 1,531.47. However, foreign funds were net sellers in the last three trading days.
  
  Analysts said there were several factors which spurred the buying activities.
  
  "I think the foreign funds are just mainly trading and buying blue chips on pullback. Perhaps, they are averaging down," said Jupiter Securities head of research Pong Teng Siew.
  
  Other factors which may have sparked the buying spree were the underperformance of the Malaysian stock market, as compared to regional peers.
  
  Foreign funds were mainly net sellers in late January 2011, as they were concerned about how emerging markets like Malaysia will cope with rising inflation.
  
  Although the inflation fears have eased, investors' sentiment remained bearish as they are worried about the global economic outlook over the near to medium term, driven by below-than-expected data from the US as well as signs of slowing down in China.
  
  "Nevertheless, I think the increase in the interest rate could help keep the foreign funds interested for a short while," said Pong.

Err.... That statement in red made me wonder about the headline news.

• Since April 20, foreign funds bought shares worth RM3.8 billion, while they sold about RM3.4 billion worth of shares, which translated into a net purchase of about RM320 million worth of shares.

Comeon.... given the above statement, just how on earth did they conclude that the best fitting headline is that " Foreign funds buy RM3.8b stocks in two weeks ".

Comeon... during that same period, they SOLD just as much.

Yeah they sold only 3.4 billion worth.

Which meant that only rm 320 million net purchase was made.

rm 320 million, that's about it.

Well think about it.

In two weeks, there are 10 trading days. Which means that a net purchase of 32 million worth of shares were made daily.

And 32 million worth of shares? Is that a lot?

Let's see, how about the following 2 headlines.

" Foreign funds buy RM320 Million stocks in two weeks "

" Foreign funds buy RM32 Million stocks daily for past two weeks ".

Would those two headlines generate as much excitement?

Of course not.

>Yeah, don't you ever trust them headline news. You better read the rest of the article!

Different. Just Different.

Sometimes it's best not to take what we read for granted!

Here's an article published on the Edge website last night: RAM Ratings cautious about Star Publications’ new investments

• RAM Ratings cautious about Star Publications’ new investments
  Written by Joseph Chin of theedgemalaysia.com
  Thursday, 21 April 2011 19:33
  
  KUALA LUMPUR: RAM Rating Services Bhd is cautious about STAR PUBLICATIONS (M) BHD []’s new new investments may pose new risks to the group.
  
  The ratings agency said on Thursday, April 21 that in the near term, the group “may invest some RM60 million in new media assets”, that is television channels, radio stations, online media and event organising.
  
  “The group is expected to incur losses from some of these investments during their respective gestation periods given that they are fairly new businesses.
  
  “In addition, Star lacks experience in the TV segment, which is viewed to be more competitive than its mainstay newspaper business,” it said.
  
  RAM Ratings assigned respective preliminary long- and short-term ratings of AA1 and P1 to Star’s proposed up to RM750 million medium-term notes (MTN) programme (2011/2026) and proposed up to RM750 million commercial papers programme (2011/2018); both facilities have a combined limit of RM750 million in nominal value.
  
  Concurrently, RAM Ratings reaffirmed the AA1/P1 ratings of STAR’s RM350 million commercial papers/MTN programme (2005/2012). Both long-term ratings have a stable outlook.
  
  It said the ratings reflect Star’s dominant market position and robust financial profile. The Group’s flagship daily, The Star, remains the clear leader in the local English-language newspaper market, supported by its strong circulation and readership bases.
  
  RAM Ratings said Star’s balance sheet and cashflow-protection metrics remained strong as at end-December 2010; its gearing ratio had more than halved to 0.09 times (end-December 2009: 0.23 times), underscored by a lighter debt load.
  
  At the same time, Star retained its net-cash position. Led by its lower borrowings and stellar operating performance amid a more robust advertising market in 2010, the group’s funds from operations debt cover (FFODC) catapulted from 0.70 times to over 2 times.
  
  However, the ratings agency said the ratings remained constrained by the group’s susceptibility to economic cycles, its vulnerability to newsprint price volatility and the increasing prominence of other media platforms.
  
  While print advertising expenditure (adex) has expanded, TV and radio adex has been rising more rapidly.
  
  Circulation and readership of English-language newspapers have also been declining (although at a slower pace than in more developed nations).
  
  Nonetheless, it said print will remain relevant in the eyes of Malaysian advertisers, at least in the medium term.
  
  “Even factoring in additional borrowings for its investments, capital expenditure for the possible development of the Star media hub in Shah Alam and working capital, we expect the group to continue exhibiting conservative gearing levels and sturdy debt-coverage ratios.
  
  “Star’s gearing ratio is expected to be kept at around 0.3–0.4 times while its FFODC is envisaged to slip, albeit remain favourable at a minimum of 0.5 times over the next two years,” said RAM Ratings’ head of consumer & industrial ratings Kevin Lim.

Today, Star business decided to carry the same article.: RAM assigns AA1 and P1 to Star’s debt facilities

• Friday April 22, 2011
  
  RAM assigns AA1 and P1 to Star’s debt facilities
  
  PETALING JAYA: RAM Ratings has assigned preliminary long- and short-term ratings of AA1 and P1 to Star Publications (M) Bhd’s proposed medium-term note and commercial papers programme of up to RM750mil respectively.
  
  Both facilities have a combined limit of RM750mil in nominal value.
  
  The rating agency has also reaffirmed the AA1/P1 ratings of the newspaper publishing group’s RM350mil commercial papers/medium-term note programme with a stable outlook.
  
  The ratings reflected The Star’s dominant market position and robust financial profile, RAM Ratings consumer and industrial ratings head Kevin Lim said in a press release yesterday.
  
  “The group’s flagship daily, The Star, remains the clear leader in the local English-language newspaper market, supported by its strong circulation and readership bases,” he said.
  
  Lim added that the group’s balance sheet and cashflow-protection metrics remained strong as at end-December 2010; its gearing ratio had more than halved to 0.09 times (end-December 2009: 0.23 times), underscored by a lighter debt load.
  
  At the same time, the group retained its net-cash position.
  
  “Led by its lower borrowings and stellar operating performance amid a more robust advertising market in 2010, the group’s funds from operations debt cover catapulted from 0.70 times to over two times,” Lim said.
  
  He expects the group to continue to exhibit conservative gearing levels and sturdy debt-coverage ratios, even factoring in the additional borrowings for the investments, capital expenditure for the possible development of the Star media hub in Shah Alam and working capital with gearing ratio expected to be kept around 0.3 to 0.4 times.

Can we spot the difference?

Can we?

Glee!

Here's the article from RAM website: RAM Ratings assigns preliminary AA1 and P1 ratings to STAR’s proposed debt facilities, reaffirms existing ratings

• RAM Ratings assigns preliminary AA1 and P1 ratings to STAR’s proposed debt facilities, reaffirms existing ratings
  
  Published on 21 Apr 2011
  
  RAM Ratings has assigned respective preliminary long- and short-term ratings of AA1 and P1 to Star Publications (Malaysia) Berhad’s (STAR or the Group) proposed up to RM750 million Medium-Term Notes Programme (2011/2026) and proposed up to RM750 million Commercial Papers Programme (2011/2018); both facilities have a combined limit of RM750 million in nominal value. Concurrently, RAM Ratings has reaffirmed the AA1/P1 ratings of STAR’s RM350 million Commercial Papers/Medium-Term Notes Programme (2005/2012). Both long-term ratings have a stable outlook.
  
  The ratings reflect STAR’s dominant market position and robust financial profile. The Group’s flagship daily, The Star, remains the clear leader in the local English-language newspaper market, supported by its strong circulation and readership bases. STAR’s balance sheet and cashflow-protection metrics remained strong as at end-December 2010; its gearing ratio had more than halved to 0.09 times (end-December 2009: 0.23 times), underscored by a lighter debt load. At the same time, STAR retained its net-cash position. Led by its lower borrowings and stellar operating performance amid a more robust advertising market in 2010, the Group’s funds from operations debt cover (FFODC) catapulted from 0.70 times to over 2 times.
  
  On the other hand, STAR’s new investments may pose new risks to the Group. In the near term, it may invest some RM60 million in new media assets, i.e. television (TV) channels, radio stations, online media and event organising. The Group is expected to incur losses from some of these investments during their respective gestation periods given that they are fairly new businesses. In addition, STAR lacks experience in the TV segment, which is viewed to be more competitive than its mainstay newspaper business. The ratings also remain constrained by the Group’s susceptibility to economic cycles, its vulnerability to newsprint price volatility and the increasing prominence of other media platforms. While print advertising expenditure (adex) has expanded, TV and radio adex has been rising more rapidly. Circulation and readership of English-language newspapers have also been declining (although at a slower pace than in more developed nations). Nonetheless, we opine that print will remain relevant in the eyes of Malaysian advertisers, at least in the medium term.
  
  “Even factoring in additional borrowings for its investments, capital expenditure for the possible development of the STAR media hub in Shah Alam and working capital, we expect the Group to continue exhibiting conservative gearing levels and sturdy debt-coverage ratios. STAR’s gearing ratio is expected to be kept at around 0.3–0.4 times while its FFODC is envisaged to slip, albeit remain favourable at a minimum of 0.5 times over the next 2 years,” notes Kevin Lim, RAM Ratings’ Head of Consumer & Industrial Ratings.
  
  Media contact
  Low Su Lin
  (603) 7628 1071

Berjaya Corp's Net Profit... err....errr...

The Edge Financial Daliy's version: Berjaya Corp 2Q net profit up 66.9% to RM86.54m

• Berjaya Corp 2Q net profit up 66.9% to RM86.54m
  Written by Surin Murugiah of theedgemalaysia.com
  Thursday, 30 December 2010 19:03
  
  KUALA LUMPUR: BERJAYA CORPORATION BHD net profit for the second quarter ended Oct 31, 2010 jumped 66.9% to RM86.54 million from RM51.83 million a year ago.
  
  The better performance was due mainly to write-back of impairment in value of investment in associated companies and gain on disposal/partial disposal of subsidiary companies as well as gain arising on accretion of interest in an associated company and lower finance costs.
  
  BJCorp said on Thursday, Dec 30 its revenue for the quarter rose 6.2% to RM1.72 billion from RM1.62 billion in 2009. Earnings per share were 1.97 sen while net assets per share was RM1.39.
  
  It said the increase in revenue was mainly due to higher revenue contribution from the direct selling, retail and distribution business, higher property sales reported by the property development and investment division and higher agency sales registered by the general insurance business in the current quarter.
  
  For the six months ended Oct 31, its net profit rose 231% to RM212 million from RM91.73 million, while revenue increased to RM3.46 billion from RM3.23 billion in 2009.
  
  BJCorp said barring unforeseen circumstances, the company’s operating performance for the remaining quarters of the financial year ending April 30, would remain satisfactory.

The Star Biz version: BCorp Q2 net profit up on write-back of impairment

• Friday December 31, 2010
  
  BCorp Q2 net profit up on write-back of impairment
  
  KUALA LUMPUR: Berjaya Corp Bhd's (BCorp) net profit for its second quarter ended Dec 31 surged 67% to RM86.54mil from RM51.83mil previously.
  
  It told Bursa Malaysia the higher profit was mainly due to RM32.64mil write-back of impairment in value of investment in associated companies and gains on disposal/partial disposal of subsidiary companies as well as gains from accretion of interest in an associated company and lower finance costs.
  
  Revenue for the period rose 6.2% to RM1.72bil.
  
  In a separate statement, BCorp announced that it had appointed Datuk Robin Tan Yeong Ching as chief executive officer effective Jan 1, 2011.
  
  He replaces his father, Tan Sri Vincent Tan Chee Yioun, who has been redesignated as chairman.

Notion VTec Denies Article Published On The Edge Financial Daily

On today's Edge Financial Daily: Notion Vtec to gear up after shelving share placement

• KUALA LUMPUR: Hard disk drive (HDD) component manufacturer Notion VTec Bhd plans to gear up after shelving a plan to place out a 10% stake in the company following the fall in its share price.
  
  Chairman and executive director Thoo Chow Fah told The Edge Financial Daily that the company is in the process of securing a bank loan of around RM80 million to finance the expansion of a new plant, after seeing its share price plunge 30% over the last two months to RM1.65 last Friday, close to its 15-month low of RM1.50 on Sept 1.
  
  For 3Q2010 ended June 30, both the group’s long- and short-term borrowings stood at RM91.32 million, while cash and bank balances stood at RM32.51 million. With shareholders’ equity of RM224.96 million, its net gearing stood at 0.26 times.
  
  Thoo expects the group’s gearing to rise to around 0.4 time when the bank facility is approved, of which he is confident because Notion has “a good credit line with the bank”.
  
  In April, Notion announced a plan to place out a 10% stake to raise RM45.9 million, to be used to buy equipment and machinery for its new 2.5-inch HDD manufacturing plant in Klang.
  
  At that time, Notion’s shares were trading at a much higher level of RM3.50.
  
  The entire new plant is to be rolled out in three phases and will cost RM150 million over two years. The plant is expected to significantly boost its current production level of baseplates.
  
  But due to unfavourable market conditions and lower demand for HDD, which have affected Notion’s share price recently, Thoo said the private placement exercise had to be cancelled.
  
  In January, the company placed out a 10% stake to Nikon Corp to raise RM33.78 million to expand its single lens reflex (SLR) camera parts manufacturing plant in Thailand.
  
  The RM150 million, 2.5-inch HDD plant is already facing setbacks with a high rejection rate of baseplates due to a steeper than expected learning curve.
  
  High rejection rates at the die casting and machining stage have been reported, resulting in delays in reaching production targets.
  It was also reported that Notion has set a turnaround deadline by next March to resolve its manufacturing issues.
  
  Thoo had said recently that the learning curve at the new plant is longer than expected.
  
  But he described these as short-term setbacks and was optimistic that the 2.5-inch baseplate project will eventually bear fruit.
  
  For 3QFY2010 ended June 30, Notion’s revenue rose 36% year-on-year (y-o-y) from RM44.71 million to RM60.81 million, while net profit fell 73% y-o-y to RM2.97 million from RM11.09 million.
  
  This was attributed to initial start-up costs such as R&D, depreciation, materials and labour, and foreign exchange movements. EPS, meanwhile, dropped from 7.88 sen to 1.92 sen.
  
  Thoo said that demand for HDD is weak at the moment, so the company is expecting lower revenue for 4QFY2010 compared with 3Q due to lower HDD orders.
  
  “We also expect minimal contribution from the 2.5-inch baseplate project as we tackle the problems of casting, machining and ED coating and getting the stator assembly into operation.
  
  The higher than anticipated rejects arising from this baseplate project are to be finalised and the loss will be taken up in 4Q.
  
  We therefore do not expect the net margins to improve in the quarter,” the company said in a statement.
  
  
  This article appeared in The Edge Financial Daily, October 4, 2010.
  

Cancellation of the private placement is a huge deal, yes?

When asked by Bursa Malaysia, Notion Vtec gives the following reply:

• We refer to the above article which appeared in The Edge Financial Daily, Home Business Section, page 4, on 4 October 2010.
  
  Referring to the statement "...Thoo said the private placement exercise had to be cancelled", we wish to clarify that Mr Thoo Chow Fah, the Executive Chairman of Notion VTec did not make such statement to The Edge Financial Daily as implied in the article.
  
  The Board of Directors of Notion VTec, after due inquiry with all the directors and major shareholders of the Company as well as all such other persons reasonably familiar with the matter, wishes to clarify that as at to-date, the proposed share placement has not been cancelled.
  
  This announcement is dated 4 October 2010.

So what's up?

Another Stock Spin, Another Denial

So where have you seen this trend before?

Where eh?

On the Business Times:

• EPF denies report on RHB Capital merger
  
  Published: 2010/09/07
  
  THE Employees Provident Fund (EPF) has denied a report that it may merge RHB Capital Bhd (1066) with another local bank.
  
  The pension fund is the major shareholder of RHB Capital, the country's fourth largest banking group by assets.
  
  "The report is not true," EPF's general manager for public relations Nik Affendi Jaafar told Business Times yesterday.
  
  A business weekly had, over the weekend, cited sources as saying that the EPF was considering such a merger in its move to pare down its stake in the bank to less than 40 per cent from 55 per cent now.
  
  Potential partners for RHB Capital include AmBank Group, Malayan Banking Bhd and CIMB Group, it reported.
  
  The news boosted RHB Capital's share price to its highest close in just over 13 years on Bursa Malaysia yesterday.
  
  The share price closed at an intra-day high of RM7.13, about 4.2 per cent higher than the previous trading day, making it the day's third biggest gainer in absolute terms. It was its highest close since July 31 1997.
  
  Read more: EPF denies report on RHB Capital merger here

How?

That so-called financial newsletter writes... stock flies... company denies...

And it happens over and over and over again.

So fun eh?

ps... do they know what's need to be done? .... do they?

harloooooo...... is there anybody out there?

Misleading

theSun have this article http://203.115.192.117/tuesday/tue_page15.html

• KUALA LUMPUR: Berjaya Land Bhd’s (BLand) pre-tax profi t for the third quarter ended Jan 31, 2010 rose to RM79.7 million from RM78.9 million seen in the previous corresponding quarter.
  
  Revenue, however declined to RM993.9 million from RM1.158 billion, it said in a statement yesterday. It said the higher profi t contribution came from its property development division, higher share of profits from associated companies and lower finance costs, which offset the impairment loss on quoted investments and investments in associated companies as well as loss on partial disposal of investment in a subsidiary company.
  
  It attributed the lower revenue to lower revenue reported by the Number Forecast Operator (NFO) business operated by Berjaya Sports Toto Bhd (BToto) and the hotels and resorts division. For the nine-month period under review, the group reported a drop in revenue of about 8% whilst pre-tax profi t showed an increase of about 48% as compared to the previous year corresponding period.
  
  It attributed the lower revenue reported by the Number Forecast Operator (NFO) business operated by Berjaya Sports Toto Bhd (BToto) and the hotels and resorts division. For the nine-month period under review, the group reported a drop in revenue of about 8% whilst pre-tax profit showed an increase of about 48% as compared to the previous year corresponding period.
  
  BLand said with the property market and the hotels and resorts businesses all set to rebound given the improving economic conditions, and expected improvement in BToto’s gaming business following the launch of the Supreme Toto 6/58, which offers a guaranteed minimum upfront jackpot of RM8,888,888 – the highest in town – the group’s operating performance for the remaining quarter of the fi nancial year ending 30 April 2010
  will remain satisfactory.

Financial news talking only about pre-tax profits???????

What the heck?

Err... no need to pay taxes ah?

Anyway, here's a different version of Bland's earnings. BLand posts bigger net loss in 3Q. (Yeah, Bland reported a higher net loss!)

• KUALA LUMPUR: Berjaya Land Bhd’s (BLand) net loss widened to RM8.57 million in its third quarter ended Jan 31, 2010 (3QFY10) from a loss of RM356,000 a year earlier on the back of lower contributions from its numbers forecasting operations (NFO) and hotels and resorts division.
  
  Group profit after tax rose 6.9% to RM43.42 million from RM40.62 million, but higher minority interest portion at RM512 million versus RM40.97 million previously resulted in the widening of the net loss.
  
  Revenue fell 14.2% to RM993.96 million from RM1.16 billion while loss per share was 0.69 sen versus loss 0.03 sen previously. No dividend was declared.
  
  It said lower revenue from its gaming business operated by Berjaya Sports Toto Bhd (BToto) was due to the traditionally high Chinese New Year festive sales in January 2009 combined with stronger sales from high jackpots in the Mega 6/25 game and lower revenue from its hotels and resorts division which saw cutbacks in business travel due to the global economic downturn.
  
  BLand said the lower revenue was partly mitigated by a two-fold increase in property sales from several successful residential and commercial development sales launches by the property development division.
  
  Despite the lower revenue, it said the group’s pre-tax profit was marginally higher at RM79.65 million versus RM78.89 previously mainly due to the higher profit contribution from the property development division, higher share of profits from associated companies and lower finance costs.
  
  It said these offset the impairment in value of quoted investments, investment in associated companies and loss on partial disposal of investment in a subsidiary company, all totalling RM12.36 million.
  
  For the nine months ended Jan 31, 2010, net profit was RM35.42 million versus a net loss of RM48.17 million a year earlier.
  
  The higher profit was attributed to higher net investment income consisting mainly of reversal of impairments in value of quoted investments in the current period arising from improved stock market conditions compared to the previous year where the group incurred substantial impairments in value of investments in associated companies and quoted securities due to poor stock market performance.
  
  Revenue was RM2.93 billion from RM3.18 billion while earnings per share was 2.84 sen from loss per share of 3.84 sen.
  
  On its prospects, it expected the property market and the hotels and resorts businesses to rebound.
  
  “BToto’s principal subsidiary, Sports Toto (Malaysia) Sdn Bhd, had on March 18, 2010 launched its new game, Supreme Toto 6/58 in replacement of its Super Toto 6/49 game.
  
  “The Supreme Toto 6/58 game offers a guaranteed minimum upfront jackpot of RM8,888,888 which is the highest in town,” it said.
  
  “With the launch of Supreme Toto 6/58 lotto game, the directors are optimistic that the NFO business under BToto will be good in the remaining quarter of the financial year ending April 30, 2010.”
  
  
  This article appeared in The Edge Financial Daily, March 23, 2010.

Here comes the trick question. Who owns this two papers?

Which News Version Would You Want?

It's incredible really.

Here's the Business Times version.

• Stocks still offer good growth: Prudential
  
  Published: 2010/01/14
  
  PRUDENTIAL Fund Management Bhd, which manages RM17 billion, said global stocks still offer good growth even after a rally in world stock markets last year from multi-year lows in March.
  
  The fund manager remains bullish on China, India, the Philippines and Thailand, but Hong Kong and Malaysia are likely to offer limited growth this year.
  
  "We have been saying this for years and (will) once again (say) Malaysia is a good story, but not enough in a world of great stories. There's much better value elsewhere from a global fund perspective," said Robert Rountree, head of investment marketing at Prudential Fund Management Services, in Kuala Lumpur yesterday.
  
  "Last year, we were overweight on Indonesia because it was due for a major re-rating. We were very bullish on the Indonesian banks then. Then there was the rally. But eventhough the valuation in Indonesia has risen sharply, we can still find value there.
  
  "Comparatively, Malaysia is never cheap," Rountree told a media briefing on global market outlook.
  
  Prudential has a neutral stance on Indonesia this year, along with Australia, South Korea, Singapore and Taiwan.
  
  Meanwhile, its head of investment services Bernice Leaw said more positive policy surprises from the government could drive up Malaysian stocks this year.
  
  Foreign investors will also likely see bigger initial public offerings such as Maxis last year coming to the market, she said.
  
  "The market has reacted positively towards Prime Minister Datuk Seri Najib Razak's liberalisation measures so far, it will be good if there's continued efforts in that area.
  
  "The government has a lot of good policies, but as always, the implementation is key. Investors usually will give it six to eight months to see the results," Leaw said.
  
  It was reported that Asian stocks helped lead 2009's global rally as unprecedented government stimulus measures and economic recovery sent investors back to the region's markets en masse.
  
  With the exception of Japan, stock markets in Asia rocketed after touching lows in March with some gaining 80 per cent or more for the year.
  
  
  
  

How would you interpret that article?

Don't you think the TITLE of the article is rather misleading? Yes, stocks still offer good growth but if you are a Malaysian stock market player and you just read only the headline news that 'stocks still offer good growth', won't you be mislead? Further more, Mr. Roundtree said "Comparatively, Malaysia is never cheap"!

Yup, the danger of reading just the headline or the title of the article.

Now the Edge Financial Daily also carried the same story.

And unfortunately, it (the tone of the article) comes out different!

Prudential: Equities expensive but not in ‘bubble territory’

• Prudential: Equities expensive but not in ‘bubble territory’
  Written by Daniel Khoo
  Wednesday, 13 January 2010 22:16
  
  KUALA LUMPUR: Share prices which have enjoyed a good run-up since the first quarter of last year looks "expensive" in the short term and might be vulnerable to a correction, according to Prudential Fund Management Services' head of investment marketing Robert Rountree.
  
  However he added also that at the moment, "equities don't appear to be in bubble territory" implying that in the longer term, equity valuations are still considered cheap, compared to the years before the TECHNOLOGY [] bubble burst in the US.
  
  He said at a regional market outlook briefing titled Bonds & Equities 2010 Malaysia, that among external factors that could possibly spark a sell off in equities are if the US Federal Reserve decides to raise interest rates in the US.
  
  "The carry trade is coming back. So, a lot of the money that has been created in the central banks in the US and in Europe is coming into Asia. So if we do see a tightening of interest rates, then we could see money coming out of Asia in the short term," he said.
  
  Low interest rates in the West fuels the currency carry trade where international investors borrow in the lower yielding currency to invest into another country's higher yielding currency for higher gains — some of the borrowed money is then invested into equities for quick short term gains.
  
  Prudential had this suggestion for investors to look at purchasing corporate bonds instead in Malaysia because yields will continue to remain suppressed for the foreseeable future on the back of the expectation that interest rates will continue to remain at the same levels at least in the first half of this year.
  
  Suppressed bond yields mean that bond prices is expected to continue to stay at their present levels.
  
  However, at the same briefing, Prudential's Head of Investment Services Bernice Leaw said that "over the long term, equities will always give better returns than bonds," adding that she was bullish on Asian economic growth — led by China and India.
  
  The fund manager is overweight on China, India, Philippines and Thailand. Prudential is however underweight on Malaysia because from an international point of view, there is better value in markets elsewhere.
  
  "In other words, Malaysia's perennial problem, a good story in a world of great stories," Rountree said implying that Malaysia now has to compete with other rapidly industrialising countries like India and China.
  
  He added that this year there may be another shift towards the trend where Asian economies "delink" from the developed West — where "Asian economies start to generate its own momentum", Rountree added.
  
  Asia's actual declared profits seemed to have kept up so far with profit forecast expectations. However, actual profits declared by US companies show a different picture altogether, with profits only staying flat while historically, profit forecasts have gone up higher than that. He noted that the run up in equities so far in the US is due to high expectations of a recovery.
  
  A realisation of this stark reality could also be another contributing factor to a possible correction in world equity markets. "However, (any potential correction) would be viewed as a buying opportunity," Rountree said.

LOL! So how? Just as expected eh? So which news versions would you want to hear?

:P