Professional Documents
Culture Documents
64
5.91
3.00
STI 2593.00
37.76
RM/USD 4.3930
CPO RM2469.00
5.00
OIL US$29.07
0.13
GOLD US$1090.60
0.10
PP 9974/08/2013 (032820)
PENINSULAR MALAYSIA RM1.60 (INCLUSIVE OF 6% GST)
FINANCIAL
DAILY
MAKE
BETTER
DECISIONS
AG returns SRC
International,
RM2.6b
investigation
papers to MACC
6 HOME BUSINESS
www.theedgemarkets.com
6 HOME BUSINESS
Boustead to raise
RM1.05b via rights
issue, proposes
2:5 bonus
7 HOME BUSINESS
Malaysias five-year
bond yield declines
9 PROPERT Y SNAPSHOT
Nangang hosts
Taiwans first
smart public
housing project
13 H O M E
COURT DISMISSES
APPEAL BY TAJUDIN,
BISTAMAM
AGAINST TRI
The duo and another former
director were ordered in 2013 to
repay monies in compensation
payments, EPF contributions
and incentive payments to the
company. Meena Lakshana has
the story on Page 4.
16 F O C U S
Meet Henrik
Fiskers new,
Force 1 supercar
ON EDGE T V
www.theedgemarkets.com
No more job
cuts this year
CIMB
Europe struggles
to lift global gloom
Markets, oil prices slump to multi-year lows
BY JAMIE MCGEEVER
Prasarana steps
up security
at stations
following arrest
of militant
suspect
IN BRIEF
Scan Associates makes
about-turn
on AGM results
KUALA LUMPUR: In an aboutturn, Scan Associates Bhd said
the resolutions to re-elect two
retiring directors, Datuk Nik
Ismail Nik Yusoff and Roy Winston George, tabled in last Fridays annual general meeting
(AGM), were withdrawn. In its
amended announcement to
Bursa Malaysia yesterday, the
ICT security solution provider
said the two retiring directors
were not re-elected in the AGM,
as they had decided not to seek
re-election. Scan Associates
said a resolution to approve
the payment of directors fees
of RM156,000 for the financial
year ended June 30, 2015 was
also rejected in the AGM.
SingPost combines
e-commerce businesses
to form new unit
SINGAPORE: Singapore Post
Ltd (SingPost) is combining its
e-commerce division with two
recent acquisitions to form a
new business unit called SP
Commerce, according to a
Business Times report. SP Commerce includes US e-commerce
provider TradeGlobal, which
focuses on high-end apparel and beauty products, and
US e-commerce logistics firm
Jagged Peak, which serves the
fast-moving consumer goods industry. Marcelo Wesseler, chief
executive officer (CEO) of SingPosts current e-commerce arm,
will be CEO of SP Commerce.
KUALA LUMPUR: 1Malaysia Development Bhd (1MDB) said yesterday it raised only RM1.5 billion
from the sukuk issued via Bandar
Malaysia Sdn Bhd two years ago,
and that the proceeds of the funds
raised had been used in accordance
with the terms and conditions of
the issuance.
It stressed that no default had
arisen under the sukuk documents
by 1MDB executing a share sale
agreement for the disposal of its
60% stake in Bandar Malaysia with
the Iskandar Waterfront Holdings
Sdn Bhd-Chinese Railway Express
Corp (IWH-CREC) consortium.
Its statement came after Pandan
member of parliament Rafizi Ramli accused the state-owned firm of
having violated its RM2.4 billion
4 HOME BUSINESS
KUALA LUMPUR: Mid- and smallcap stocks took a beating again yesterday amid the prevailing state of
cautious global sentiment that has
weighed on ACE Market counters
with heavy selling.
The FBM Small Cap Index (FBMSCAP) slipped 205.5 points or 1.32%
to close at 15,492.04 points, while the
FBM ACE Index, which features ACE
Market-listed counters, fell 139.99
points or 2.25% to settle at an eightweek low of 6,074.82 points. The
fall was in tandem with the weaker
global market sentiments.
Year to date (YTD), the FBMSCAP
has fallen 2.84%, while the FBM ACE
has declined 4.92%.
Meanwhile, the benchmark FBM
KLCI dropped 5.91 points or 0.4% to
close at 1,622.64 points yesterday,
recording its third consecutive day
of losses. YTD, it has lost 4.13%.
The continued drop in oil prices fuelled the selling in the equity
markets, particularly in the Middle
East, where worries of oil glut are
mounting after the sanctions against
Iran were lifted over the weekend.
The intensive selling on smallcap stocks raises concerns that the
bubble of high valuations among the
lower liners might have burst; thus
there is a rather bleak outlook on the
horizon for this breed of stocks. But
others beg to differ, believing that
earnings growth could be more exciting than the heavyweights.
The fall was expected as companies with smaller market capitalisations had begun to get overheated, Inter-Pacific Securities head of
research Pong Teng Siew told The
FBM ACE
Vol (bil)
2
7,000
1.5
Vol (bil)
2
BY SURIN MURUGIAH
Points
20,000
15,492.04
1.5
6,000
1
0.5
6,074.82
15,000
5,000
4,000
3,000
0.5
10,000
6, 2015 that it had reached a settlement with Lim, but did not disclose
details of the settlement.
Axiata shares closed one sen
or 0.64% higher at RM1.58 yesterday, with a market capitalisation of
RM54.14 billion.
declarations that TRIs board had offered and paid them compensation
for the termination of their employment to the sum of RM23.44 million
and RM6.19 million, respectively,
that the settlement was in exchange
for their agreement not to enforce
their legal rights against the company arising from their termination,
and that all compensation payments
were paid in accordance with the law.
However, the defendants counterclaims were also dismissed by
the High Court on March 20, 2013,
which ordered that costs be assessed on April 18, 2013.
Then on April 17, 2013, TRI was
served with the Notice of Appeal
filed by Tajudin and Bistamam
with the Court of Appeal against
the judgement of the High Court.
Axiata announced on March
6 HOME BUSINESS
AG returns
investigation
papers to MACC
Wants more info on SRC International, RM2.6b donation cases
KUALA LUMPUR: The Attorney-Generals Chambers (AGs
Chambers) yesterday returned investigation papers into SRC International Sdn Bhd and the RM2.6 billion
donation to the Malaysian Anti-Corruption Commission (MACC), seeking more information.
Attorney-General Tan Sri Mohamed Apandi Ali said in a statement he wanted additional information on the suggestions and
recommendations the MACC made
on the two cases.
After examining thoroughly
the testimonies in the investigation papers, the AGC (AGs Chambers) today (yesterday) returned
the investigation papers to obtain
HOME BUSINESS 7
8 HOME BUSINESS
Malaysias five-year
bond yield declines
On talk that nations debt is luring investors amid stock sell-off
KUALA LUMPUR: Malaysian government bonds rose, driving the
five-year yield to its lowest level
since 2013, on speculation the nations debt is luring investors amid
a sell-off in stocks.
The yield on the notes has
dropped 18 basis points in the
past month, while the benchmark
stock gauge lost 1.5%. Malaysias
10-year bonds, which are rated the
fourth-lowest investment grade by
Standard & Poors, offer the second-highest yields among Southeast Asias three biggest economies.
The government will take measures
to cut spending, including studying
the privatisation of projects, the
finance ministrys top bureaucrat
Tan Sri Dr Mohd Irwan Serigar Abdullah said.
In this part of the world, Malaysian bonds offer higher returns vis-vis the ratings, said Nik Mukharriz Muhammad, a fixed-income
analyst at the investment banking
unit of CIMB Group Holdings Bhd,
the countrys second-biggest lender by assets.
The yield on the five-year securities dropped for a fifth day, declining one basis point to 3.42% as of
12.41pm yesterday, the lowest level
for a benchmark of that maturity
since November 2013, according to
prices from Bursa Malaysia. The 10year bond also fell one basis point
to 4.16%, the lowest since November. The FTSE Bursa Malaysia KLCI
Index of shares slipped 0.6% in a
third straight day of losses.
The ringgit fell for a third day,
weakening 0.2% to 4.4095 a US dollar, as Brent crude extended declines after international sanctions
on Iran were lifted. The currency is
headed for its longest run of declines since November. Malaysias
government stands to lose RM300
million for every US$1 drop in the
price of the commodity, according
to government estimates.
Bank Negara Malaysia will keep
the overnight policy rate unchanged
at 3.25% at a review on Thursday,
according to all 12 economists in
a Bloomberg survey. The central
bank has kept borrowing costs unchanged since July 2014 and governor Tan Sri Dr Zeti Akhtar Aziz
said in Hong Kong yesterday that
the monetary policy is accommodative. Bloomberg
KUALA LUMPUR: Prasarana Malaysia Bhd said the first of its 14 new
Innovia Metro 300 trains will be operational by May this year, while the
remainder of the trains will be delivered one each month by Bombardier
Transportation and its consortium
partner Hartasuma Sdn Bhd.
The new four-car trains, to increase
capacity and improve the quality of
public transportation in Kuala Lumpur, will be deployed along the extended Kelana Jaya light rail transit
(LRT) line, which is also on tract for
its scheduled completion by June 30,
said Prasarana group managing director Datuk Azmi Abdul Aziz.
The new trains will offer a quieter
ride, dynamic station indicators, and
handicap facilities. We also expect
to improve waiting time, reducing
headway (the average interval between vehicles moving in the same
direction on the same route) to less
than the current 2.8 minutes.
It is not about injecting the trains
throughout the whole line. We have
to look at where demand is building up and well set the new trains
there, said Azmi at a press briefing
yesterday.
The Kelana Jaya line extension,
which will begin from the Kelana
Jaya station and pass through 13
new stations, including Ara Damansara, Subang Jaya and USJ before ending at the Putra Heights integrated station, covers a distance
of 17.4km. The lines full length,
upon completion of the LRT, will
be 46.4km.
Azmi added that the new trains
will be able to handle up to an additional 20 passengers per car, from the
(From left) Prasarana Group chairman Tan Sri Ismail Adam, Hartasuma managing
director Datuk Dr Abdul Rahman Abdul Halim, Azmi and Attendu posing in front of a
new Innovia Metro 300 train yesterday. Photo by Shahrin Yahya
NEWS IN BRIEF
ically in submitting business proposals for waste-to-energy technology projects in Malaysia and
regional markets, said DNeX.
Through the MoU, DNeX will
be making the first step into the
waste-to-energy sector with strong
international partners, namely China Everbright and HydroChina, as
the technology providers. Broadgate, meanwhile, is DNeXs partner
for engineering and subcontracting
works within Malaysia and in the
region, DNeX said.
According to DNeX, its energy
sector diversification comprises
power generation, upstream oil
and gas (O&G) ventures, and O&G
support services.
Through FESB, it has already
invested in a small independent
power producer (IPP) in Bangladesh and is pursuing small mini
hydro IPP projects in Indonesia.
P R O P E RT Y S NA P S H
FREE
transaction
data
latest
classied
listings
news
analytics
trend
analysis
T 9
and more
Source: TheEdgeProperty.com
Source: TheEdgeProperty.com
The Analytics are based on the data available at the date of publication and may be subject to further revision as
and when more data is made available to us.
Australia orders
sales of foreignowned houses
over concerns
SYDNEY: The Australian government said it ordered the sale of
another eight residential properties bought in breach of foreign
ownership laws, in a response to
concerns that offshore buyers
were driving up house prices.
Australian capital city homes
are considered among the most
overpriced in the world, and the
federal government announced
penalties for foreigners who
breach existing rules that restrict
them to buying new homes only.
Treasurer Scott Morrison said
yesterday the forced sale of eight
properties takes to 27 the total
number of homes the government had declared were bought
illegally by foreigners.
Since the foreign ownership
crackdown began last year, the
government said it had investigated more than 1,300 property
sales and had another 800 under investigation. Severe penalties apply to buyers who have
breached the rules.
The latest set of forced sales
amounts to more than A$8 million (RM24.33 million) and includes a A$5.1 million house in
Victoria. Reuters
MOST READ ON
TheEdgeProperty.com
Australia forces sales
of foreign-owned
properties after breach
of ownership laws
Terror groups target
Bangsar, Bukit
Bintang, Hartamas;
security at LRT
stations tightened
Ho Hup plays safe
this year
UOA to launch four
new projects this year
Dongming in Taipeis Nangang District will boast an enhanced ICT infrastructure and
eco-friendly environment. Photo by TCG
Homebuyers and
investors remain
cautious in Kota
Kinabalu
10 ST O C KS W I T H M O M E N T U M
Stocks with momentum were picked up using a proprietary algorithm by Asia Analytica Data Sdn Bhd and rst appeared at www.theedgemarkets.com.
Please exercise your own judgement or seek professional advice for your specic investment needs. We are not responsible for your investment decisions.
Our shareholders, directors and employees may have positions in any of the stocks mentioned.
Financials
Turnover
EBITDA
Interest expense
Pre-tax prot
Net prot - owners of company
Fixed assets - PPE
Total assets
Shareholders' fund
Gross borrowings
Net debt/(cash)
RESINTECH BHD
DPS ($)
Net asset per share ($)
ROE (%)
Turnover growth (%)
Net prot growth (%)
Net margin (%)
ROA (%)
Current ratio (x)
Gearing (%)
Interest cover (x)
Financials
Turnover
EBITDA
Interest expense
Pre-tax prot
Net prot - owners of company
Fixed assets - PPE
Total assets
Shareholders' fund
Gross borrowings
Net debt/(cash)
DPS ($)
Net asset per share ($)
ROE (%)
Turnover growth (%)
Net prot growth (%)
Net margin (%)
ROA (%)
Current ratio (x)
Gearing (%)
Interest cover (x)
RESINTECH BHD
Financials
Turnover
EBITDA
Interest expense
Pre-tax prot
Net prot - owners of company
Fixed assets - PPE
Total assets
Shareholders' fund
Gross borrowings
Net debt/(cash)
RESINTECH BHD
RATIOS
DPS ($)
Net asset per share ($)
ROE (%)
Turnover growth (%)
Net prot growth (%)
Net margin (%)
ROA (%)
Current ratio (x)
Gearing (%)
Interest cover (x)
FY12
FY13
FY14
FY2015Q3
31/12/2012
31/12/2013
31/12/2014
30/9/2015
114.5
13.7
2.5
(1.9)
(2.2)
95.3
115.3
83.5
57.9
51.4
104.2
10.1
2.6
(5.4)
(5.5)
89.5
121.0
91.7
53.8
40.1
136.0
15.2
2.3
7.2
6.3
70.0
115.8
100.0
37.9
23.0
48.0
10.1
0.5
6.3
4.6
64.0
119.6
109.1
15.0
(1.9)
FY12
FY13
31/12/2012
31/12/2013
31/12/2014
0.70
(2.58)
(4.00)
(1.92)
(1.88)
1.43
61.62
5.46
0.52
(6.32)
(9.02)
(5.32)
(4.69)
1.74
43.75
3.93
0.57
6.53
30.55
4.60
5.29
1.92
23.02
6.64
0.02
0.62
6.82
39.40
169.11
4.06
5.74
3.35
13.11
FY13
FY14
FY15
FY2016Q1
31/5/2013
31/5/2014
31/5/2015
31/8/2015
1,728.6
29.4
8.2
15.8
7.8
65.5
292.1
284.6
198.3
151.4
1,566.0
34.4
7.8
16.8
8.0
59.8
305.8
288.9
153.6
76.9
1,272.7
28.7
6.5
18.4
7.4
92.7
327.3
301.2
171.1
74.8
322.8
6.0
1.9
3.2
1.7
97.8
344.1
318.6
172.4
89.9
FY13
FY14
31/5/2013
31/5/2014
31/5/2015
0.02
1.47
2.73
16.15
(44.10)
0.45
2.64
1.27
53.21
3.56
0.03
1.50
2.78
(9.41)
2.63
0.51
2.66
1.43
26.61
4.40
0.02
1.56
2.50
(18.73)
(7.20)
0.58
2.33
1.39
24.83
4.40
0.02
1.66
2.08
(18.01)
(27.81)
0.50
1.93
1.38
28.23
4.26
FY13
FY14
FY15
FY2016Q2
31/3/2013
31/3/2014
31/3/2015
30/9/2015
84.7
10.9
2.0
3.0
2.8
76.1
101.5
86.4
32.0
21.4
86.2
6.8
1.9
5.8
5.0
67.9
104.3
91.4
27.2
21.5
91.9
13.6
1.8
9.9
5.9
95.5
142.5
122.1
24.3
21.7
18.3
2.3
0.3
0.5
0.3
93.5
141.5
122.4
29.7
20.6
FY13
FY14
31/3/2013
31/3/2014
31/3/2015
0.63
3.34
(12.75)
0.04
3.35
2.80
1.68
24.72
5.56
0.67
5.58
1.75
74.66
5.76
4.82
1.44
23.49
3.66
0.89
5.49
6.69
18.02
6.37
4.75
1.68
17.79
7.41
0.03
0.89
6.00
(5.57)
32.45
7.52
5.24
1.62
16.80
7.61
B R O K E R S C A L L 11
2014
2015F
2016F
2017F
Revenue
1,206.4
Core net profit
33.8
9.4
FD core EPS (sen)
FD core EPS growth (%) (21.1)
Consensus net profit
3.8
DPS (sen)
17.2
PER (x)
6.2
EV/Ebitda (x)
2.4
Dividend yield (%)
12.7
ROE (%)
19.1
Net gearing (%)
1,116.1
66.8
18.5
97.5
56.8
3.8
8.7
4.6
2.4
15.6
8.0
1,084.5
72.3
20.0
8.3
56.8
3.8
8.0
4.1
2.4
14.9
nm
1,073.9
75.6
21.0
4.7
57.5
3.8
7.7
3.4
2.4
13.8
nm
2014
2015
2016F
2017F
2018F
Total turnover
202
Reported net profit
54.2
Recurring net profit
54.2
Recurring net
3.7
profit growth (%)
0.45
Recurring EPS (RM)
0.15
DPS (RM)
8.1
Recurring PER (x)
1.90
P/BV (x)
6.9
P/CF (x)
4.1
Dividend yield (%)
3.83
EV/Ebitda (x)
Return on
18.8
average equity (%)
Net debt to equity (%) net cash
Our vs consensus
EPS (adjusted) (%)
243
51.9
51.9
207
37.6
37.6
319
59.9
59.9
339
65.7
65.7
(4.3)
0.32
0.18
11.3
1.71
8.4
4.9
4.74
(27.7)
0.23
0.18
15.8
1.67
11.8
4.9
6.10
59.5
0.37
0.19
9.9
1.55
12.5
5.2
4.10
9.8
0.40
0.20
9.0
1.42
7.8
5.5
3.47
15.9
10.7
net cash net cash
16.2
net cash
16.4
net cash
0.0
0.0
0.0
Filepic of
Pintaras Jayas
headquarters.
The prospects
for Pintaras
Jayas piling
segment
remain strong,
backed by
various mega
infrastructure
projects like
MRT2 and
LRT3. The Edge
le photo
Turnover
Ebit
Pre-tax profit
Net profit
EPS (sen)
PER (x)
NTA/share (RM)
Margins
Ebit margin (%)
Pre-tax margin (%)
Effective tax rate (%)
ROE (%)
ROA (%)
Net gearing (x)
Growth ratios
Turnover (%)
Ebit (%)
Pre-tax profit (%)
Core net profit (%)
Note: * - 15 months result
Source: BIMB Securities Research
2013*
2014
2015
2016E
2017E
1,471.7
151.2
134.7
90.1
3.8
6.0
0.19
1,416.0
154.9
127.9
81.9
3.5
6.6
0.24
1,560.2
142.1
117.9
77.1
3.3
7.0
0.28
1,244.5
88.8
67.0
51.3
2.2
10.5
0.31
1,386.8
116.2
92.0
70.4
3.0
7.6
0.34
10.3
9.2
27.9
16.0
6.0
0.6
10.9
9.0
36.7
12.2
4.9
0.4
9.1
7.6
36.1
9.9
4.3
0.3
7.1
5.4
25.0
6.2
3.2
0.2
8.4
6.6
25.0
7.8
4.1
0.2
276.6
-241.5
-222.4
-179.4
-3.8
2.4
-5.0
-9.1
10.2
-8.3
-7.9
-5.8
-20.2
-37.5
-43.2
-33.5
11.4
30.9
37.3
37.3
12 B R O K E R S C A L L
El Nino expected
to impact Simes
FY16 output
Sime Darby Bhd
(Jan 18, RM7.09)
Maintain hold with a lower target
price (TP) of RM7.85: Sime Darby
Bhds (Sime) plantation and energy
and utilities divisions comprised
37% and 4% of Simes financial year
ended June 30, 2015 (FY15) earnings before interest and tax.
Overall, we are slightly negative
as the group expects the El Nino to
impact output and is targeting FY16
fresh fruit bunch (FFB) output of
10 million to 10.1 million tonnes,
which is lower than the target of 11
million tonnes without the El Nino.
Sime revealed that the El Nino
has resulted in three to four months
of rainfall deficit at its estates in the
first half of FY16 (1HFY16).
The group expects FFB output
for Malaysian and Indonesian estates, ex-New Britain Palm Oil Ltd
(NBPOL), to fall by 5% to 9% in
FY16.
However, overall production will
still be up by around 5% in FY16,
due to the acquisition of NBPOL
in March last year.
Should La Nina start in September this year and bring ideal rainfall
to estates, future FFB yields may
be boosted.
The group expects higher crude
palm oil prices of RM2,500 per
tonne to RM2,600 per tonne in
2HFY16 and initiatives to reduce
its costs of production to mitigate
the negative earnings impact from
the lower FFB output.
It hopes to bring down current
costs of production (ex-replanting costs) of RM1,300 per tonne
to RM1,200 per tonne by lowering
Revenue
Operating Ebitda
Net profit
Core EPS (RM)
Core EPS growth (%)
FD core PER (x)
DPS (RM)
Dividend yield (%)
EV/Ebitda (x)
P/FCFE (x)
Net gearing (%)
P/BV (x)
ROE (%)
% change in core
EPS estimates
CIMB/consensus EPS (x)
2014A
2015A
2016F
2017F
2018F
44,568
5,404
3,353
0.53
(4.8)
13.35
0.36
5.06
8.99
29.70
21.3
1.50
11.5
43,729
4,276
2,313
0.32
(39.3)
21.73
0.25
3.51
13.45
65.45
44.2
1.46
6.8
47,103
4,465
1,884
0.31
(3.1)
23.46
0.15
2.13
12.62
33.26
43.4
1.42
6.1
49,540
5,066
2,291
0.38
21.6
19.28
0.18
2.59
11.25
42.23
44.3
1.38
7.3
52,003
5,565
2,661
0.44
16.1
16.60
0.21
3.01
10.30
31.95
44.5
1.34
8.2
(5.07)
0.92
(3.58)
0.92
(0.00)
0.94
Globetronics production
should normalise in 2Q16
Globetronics Technology Bhd
(Jan 18, RM5.98)
Maintain buy with a lower target
price of RM7.10: Globetronics Technology Bhd had been asked by its
end-customer to cut back production
of its proximity sensors in December
last year, with a further 20% to 25%
cut also expected in the first quarter
of 2016 (1Q16).
Though there is no visibility yet,
we think production should normalise in 2Q16 as channel inventory
should be more in line with lower
end-demand after the 1Q16 cut.
We understand there had been
a delay for the 3D imaging sensor
as the end-customer is still looking
to drive overall unit costs down and
fixing certain algorithm issues.
Because of those issues, the
Revenue
Ebitda
Pre-tax profit
Net profit
EPS (sen)
PER (x)
Core net profit
Core EPS (sen)
Core EPS growth (%)
Core PER (x)
Net DPS (sen)
Dividend yield (%)
EV/Ebitda (x)
2014
2015
2016E
2017E
2018E
170.2
10.7
153.7
171.3
29.4
2.9
40.1
6.9
(58.9)
12.3
25.0
29.4
49.5
173.6
50.3
41.2
35.5
5.9
14.3
35.5
5.9
(13.6)
14.3
3.0
3.5
11.2
170.8
100.9
110.2
97.7
16.4
5.2
80.0
13.4
125.2
6.3
4.1
4.8
3.5
136.2
34.8
110.8
104.8
17.6
4.8
104.8
17.6
31.0
4.8
4.4
5.2
10.4
136.7
36.0
163.0
156.4
26.2
3.2
156.4
26.2
49.3
3.2
6.6
7.7
10.3
2014A
2015F
2016F
2017F
Revenue
Ebitda
Pre-tax profit
Net profit
Net pft (Pre ex.)
Net pft gth (Pre-ex) (%)
EPS (sen)
EPS pre ex. (sen)
EPS gth pre ex (%)
Diluted EPS (sen)
Net DPS (sen)
BV per share (sen)
PER (x)
PER pre ex. (x)
P/Cash flow (x)
EV/Ebitda (x)
Net dividend yield (%)
P/BV (x)
Net debt/Equity (x)
ROAE (%)
355
110
76.2
64.3
64.3
22.3
23.1
23.1
22
23.1
21.0
102
25.5
25.5
20.1
13.5
3.6
5.8
Cash
23.0
376
109
84.3
71.7
71.7
11.4
25.7
25.7
11
25.7
25.0
103
22.9
22.9
15.1
13.7
4.3
5.7
Cash
25.1
477
150
117
102
102
42.2
36.5
36.5
42
36.5
34.0
105
16.1
16.1
12.2
10.1
5.8
5.6
Cash
35.1
577
188
151
132
132
29.2
47.2
47.2
29
47.2
42.0
111
12.4
12.4
9.8
8.0
7.1
5.3
Cash
43.8
H O M E 13
Filepic of primary school students at an assembly. Teachers and students are still trying
to familiarise themselves with the PT3 concept introduced in 2014. The Edge le photo
Clinton
countering
Sanders
revolution
Page 20
14 H O M E
Beheaded
hostages family
tells govt to
protect citizens
BY JEN N I FER G OM EZ
& A NGEL I NE TAN
IN BRIEF
MoH wants report on air
conditioning systems in
public hospitals
KUALA LUMPUR: The Ministry
of Health (MoH) will ensure
that the air conditioning systems in all public hospitals are
working optimally at all times
to bring comfort and convenience to the people, its minister
Datuk Seri Dr S Subramaniam
said. As such, he said all public
hospital directors nationwide
had been instructed to submit
a report on the condition of the
air conditioning system of their
respective hospital to enable
immediate action to be taken
to avoid disruption in the service delivery. Some hospitals
are very old; some of their instruments and air conditioning
systems are old ... they might
break down, he told reporters
after attending the MIC Ponggal
Festival celebration at the partys headquarters here yesterday. The Malaysian Insider
COMMENT 15
16 FO CU S
TUE
PHOTOS BY BLOOMBERG
BY
BY HA NN A H EL L IOTT
01
01. The side windows on
the VFL Automotive
Force 1 are the
best of detail in
this outwardly
aggressive design.
02. This is an American
supercar, and
American cars are
always about show
what you got be
up front.
02
FO
we
Ha
va,
are
(in
the
res
tha
gue
He
in G
Cra
Par
eve
You
to p
exp
hea
Per
and
a li
wil
ant
era
gro
wh
big
and
nin
bee
MB
and
for
ing
des
spo
on
FO CU S 17
BERG
PHOTOS BY BLOOMBERG
01
02
ue.
ing
ak-
akade
eri.18
but
He
ady
ovthe
the
ake
ith
ing
nia
gan
on
That
uch
op,
He
y at
ith
ong
untric
ker
The
ise
s.
to
eraid.
for
his
ith
his
erg
High tech
The time when the Swiss could ignore smartwatches and wearable technology is over. It
has been for a few months now, if were being
generous, longer if were not. In November,
TAG Heuer released its full-on Android Wear
smartwatch, and by all accounts sales are so
good the company is actually ramping up
production. Breitling soon followed with its
own take on a connected watch, with the
Exospace B55, more of a middle ground
between a traditional watch and a gadget.
I dont think well be seeing an Audemars
Piguet smartwatch or a Jaeger-LeCoultre fitness tracker, but I have a funny feeling well
see at least one thing that requires a battery
and a Bluetooth connection at SIHH 2016.
Whether we finally get more information
about the upcoming IWC Connect, a small
strap-worn device, or another iteration of
the Montblanc e-Strap, or a new device from
the likes of Baume & Mercier or Cartier that appeals to a different sort of
customer than the more traditional
products on offer.
Lower prices
Its no secret that this has been
a rough year for the Swiss
watch industry. It started with
currency problems last January,
continued into the mid-year
Apple Watch hype zone, and
then soft Asian markets prevented a second-half comeback. But
watchmakers are adjusting to new
market conditions after a few
pretty cushy years, and lowering
prices is one way to get people
shopping again.
Montblanc has made a splash the
past few years with affordable takes
on usually expensive complications.
We already know Montblanc will be
continuing that push in 2016, but
other brands are getting onboard,
03
18 W O R L D B U S I N E S S
Lower yuan
would be no
panacea for
China Inc
BY RAC H EL MORARJEE
LONDON/SINGAPORE: Currencies
from commodity exporters rebounded and the yen dropped from close
to a four-month high after Chinas
central bank helped calm investors
nerves by strengthening the yuan fixing by the most in almost a month.
The Australian dollar outperformed 15 of 16 major peers after
slumping last week to the lowest
level in almost seven years. China, which is due to publish a slew
of economic data this week, will
report today that fourth-quarter
gross domestic product grew at an
annual rate of 6.9%, according to
economist estimates. The country
is a major export destination for
Australia and Canada. The Canadian dollar climbed for the first
time this year.
We are seeing stability in sentiment which has been the primary
driver of the foreign-exchange market, said Peter Rosenstreich, head
of market strategy at Swissquote
Bank SA in Gland, Switzerland.
That has given well-oversold com-
IN BRIEF
HSBC CEO Gulliver
sees 6.7% growth
HONG KONG: HSBC chief executive Stuart Gulliver forecast
yesterday Chinas economy to
grow at 6.7% this year, in line
with official estimates, but higher than many economists who
say the data is over optimistic.
We do think the data are accurate, we think any errors in
the data are compensated for
by the fact a lot of the service
economy is not included [in
the numbers], Gulliver told the
annual Asia Financial Forum in
Hong Kong. Gulliver said he did
not foresee a so-called hard
landing for China, the bearish
scenario foretold by many economists in which the countrys
slowing growth results in widespread corporate defaults and
economic collapse. Reuters
JGBs rm on safe-haven
bids as equities slump
TOKYO: Japanese government
bonds (JGB) blossomed yesterday as stocks wilted, sending
JGB futures to another record
high. The Nikkei stock index shed
1.1% to its lowest close in a year.
March 10-year JGB futures ended up 0.14 of a point at 149.67,
marking another record high of
149.72, while the benchmark 10year yield edged down one basis
point to 0.205%, not far from a
record low of 0.19% plumbed last
Thursday. The Bank of Japan offered to buy a total of 890 billion
(RM33.4 billion) of JGBs, including 450 billion in the five-year
to 10-year zone, 260 billion in
the 10-year to 25-year zone, and
180 billion of JGBs maturing in
more than 25 years under its asset
purchase programme. Reuters
W O R L D B U S I N E S S 19
Airline operating
margins to reach
50-year high
SYDNEY: The low oil price is
poised to propel airline operating margins to the highest level
since the mid-1960s this year,
although margins will decline
slightly next year as the oil price
rises and fleets grow more rapidly
than usual, according to a leading
aviation analysis group, said The
Sydney Morning Herald.
Capa Centre for Aviations
World Airline Profit Outlook
2016 found operating margins
for global airlines, which were
just 5.5% in 2014, rose to 7.2%
last year and should reach 8.2%
this year, before declining to 7.5%
next year. The 2015 figure was
better than any year in the last
five decades, with 2016 set to
top it.
Beyond [2017], a challenge
for the industry will be to try
to sustain margins in a similar
range rather than allow a margin
peak to be followed by a rapid downturn, as has invariably
happened in the past, Capa
said, according to a report by
The Sydney Morning Herald.
IN BRIEF
data showed last Friday.
But gold could face resistance
at US$1,140, said Ang, citing slow
physical demand from top consumers China and India, with Chinese
spending seen dented by its slowing economy.
Im bearish on gold despite the
recent uptick weve seen, he said.
China will release its gross domestic product data for full-year
2015 today and economists polled
by Reuters have forecast that growth
cooled to 6.9%, the slowest in a
quarter of a century. Reuters
how long they can continue to overproduce for at that level, said Stuart
Gulliver, chief executive officer of
HSBC yesterday.
Traders and analysts, however,
have described the plunge in prices as a knee-jerk reaction, saying
Irans ambitions to export 500,000
bpd were not very realistic.
If you track Irans rhetoric over
the past 12-18 months, officials
were projecting a one million bpd
rise in exports as soon as sanctions
were lifted, said analyst Virendra
Chauhan at Energy Aspects, adding
that the most recent downgrade in
the number is indicative of the challenges that face Iranian upstream
and the markets capacity to absorb
its supply. Reuters
20 WORLD
Clinton countering
Sanders revolution
IN BRIEF
Tehran denounces
new US sanctions on
missile programme
Sparring over plans for healthcare, guns, battling IS extremists, reining in Wall Street
BY TI MOTHY C L ARY & M ICHAEL
MATHES I N WA SHINGTON
Four-nation
meeting in
Kabul seeks to
revive Taliban
KABUL (Afghanistan): A second round of four-country talks
aimed at reviving peace negotiations with the Taliban began
in Kabul yesterday, even as the
insurgents wage an unprecedented winter campaign of violence
across Afghanistan.
Delegates from Afghanistan,
Pakistan, China and the United
States convened in the Afghan
capital for a one-day meeting
seeking a negotiated end to the
bloody 14-year insurgency.
This meeting is important as
it will focus on the roadmap to
bringing peace in Afghanistan,
foreign ministry spokesman Ahmad Shekib Mostaghni told AFP.
Afghan Foreign Minister Salahuddin Rabbani will open the
four-way meeting.
The first round of the roadmap talks was held in Islamabad
last week as the four nations try
to lay the groundwork for direct
dialogue between Kabul and the
Islamist group. But analysts caution that any substantive talks are
still a long way off.
The Taliban have stepped up
attacks on government and foreign targets in Afghanistan this
winter underscoring a worsening
security situation. AFP
W O R L D 21
Abe seeks
Western
rapprochement
with Putin
TOKYO: Japanese Prime Minister Shinzo Abe, currently chair
of the G7, has said he wants to
bring Russian President Vladimir
Putin back into the fold to engage
Moscows help over a litany of
crises in the Middle East.
Abes remarks, in a joint
interview with Japans Nikkei
business daily and the Financial Times (FT) published yesterday, come with Washington
and Moscow taking opposite
sides over the years-long civil
war in Syria, with the region also
wracked by conflict in Yemen, a
Saudi-Iran row, as well as countless other issues.
We need the constructive
engagement of Russia, Abe told
the news outlets. I believe appropriate dialogue with Russia,
appropriate dialogue with President Putin is very important.
Abe said he was willing to go
to Moscow, or to invite Putin to
Tokyo for talks.
Russia counts Iran and Syrian President Bashar al-Assad
among its strongest allies in the
Middle East, and Moscow
which also holds a permanent
veto-wielding seat on the UN
Security Council is seen as a
powerbroker in the region.
In a video excerpt of the interview posted on the Nikkei
website, Abe also said that as
the chair of the G7 he would
consider a visit to Russia at the
appropriate time, which the Nikkei newspaper interpreted as
meaning ahead of the G7 summit in May.
The remarks came after Abe
said on Jan 4 that the international community must encourage Russias participation in the
global fight against terrorism,
the crisis in Syria and relations
with Iran.
Abe at that time also renewed
his call on Putin to make progress on a territorial dispute with
Tokyo dating from the closing
days of World War II.
Japan and Russia have never
officially struck a peace accord
due to the territorial row over
four Japanese islands seized by
Soviet troops at the wars conclusion.
In the Nikkei-FT interview,
Abe also said the international community should raise its
voice against Chinas construction of artificial islands in the
South China Sea. AFP
IN BRIEF
Taiwan president
Tsai Ing-wen
Wins January 16 election
Democratic Progressive Party
Age: 59
China-sceptic
Victory of the DPP tapped into
frustrations and fear that
the islands sovereignty is being
eroded by China
Promises to maintain the
status quo in China relations
Pledges a stronger Taiwan
that is proud of its identity
Warns that Chinese
suppression would
damage ties
Maldives disappointed
Nasheed will not
travel to Britain
MALE (Maldives): The Maldives government said yesterday it was disappointed that
jailed former leader Mohamed
Nasheed would not travel to
Britain for surgery after he rejected a demand that a relative
stay behind to guarantee his
return. The government had
said Nasheed, whose conviction last year on terror-related
charges has been widely criticised, could travel to Britain
for 30 days to receive urgent
spinal cord surgery. He was
due to leave late on Sunday,
but his lawyer accused the government of introducing the illegal last-minute condition to
the deal, brokered by diplomats
from India, Sri Lanka and Britain. AFP
British PM attacks
isolation of Muslim women
LONDON: British Prime Minister David Cameron yesterday
said more needs to be done
to help Muslim women learn
English to tackle discrimination and gender segregation in
their communities. Writing in
The Times newspaper, Cameron said it was time to confront
the backward attitudes held
by a minority of Muslim men
who were exerting damaging
control over the women in
their lives. AFP
22
live it!
TUE
A NOBLE
PARTNERSHIP
Louis Vuitton and Unicef
team up to help children
in need
Pendentif
Silver Lockit.
CO
les
of t
Jes
tha
wid
a lo
spi
its
in 3
firs
Jew
Th
com
sui
eas
do
in s
of t
pla
off
the
BY HANNAH M ER ICAN
E
d
cha
nife
for
gla
by
and
at t
bra
cha
03
LVforUNICEF Pinky Promise.
manitarian action. Together, we can make a real in line of the sixth biennial Unicef Ball which was
difference to children in the most vulnerable sit- held in Los Angeles last Tuesday.
uations, said Michael Burke, chairman and chief
This campaign aims to encourage as many
executive officer of Louis Vuitton.
people as possible to join Louis Vuittons efforts
in helping out children in need. With the help of
#MAKEAPROMISE
many high-profile and influential personalities,
Aside from the launch of the Silver Lockit, Lou- Louis Vuitton wants people to seal their commitis Vuitton for Unicef is also running an ongoing ment through a pinky promise and invite people
#MAKEAPROMISE campaign. The digital campaign to join them in doing so. As a popular sign to make
is another effort to help raise awareness and funds among school children in Asia, the pinky promise
gesture between two people encapsulates how a
promise has been sealed. People are encouraged
to get involved with this campaign by making a
pinky promise with the hashtag #MAKEAPROMISE
on social media.
When children make a promise, they take it
seriously. said Burke. These are promises that
A close-up of
come straight from the heart. The pinky promise
Pendentif Silver
is an instinctive and sincere way to seal a promise
Lockit.
and to share it with someone close.
Commenting on the luxury brands efforts, he
highlights, Charity starts at home. Our 20,000 staff
members have joined forces to generate strong
ideas for this cause. Our goal is to reach as many
people as possible, ask them to share our promise
and to make a real difference.
To take part in the #MAKEAPROMISE campaign, choose a partner who is willing to make a
pledge and help children in need. Take a photo of
both of you crossing your pinkie fingers and share
it with the #makeapromise hashtag on Facebook,
Twitter or Instagram. To spread the word further,
tag your friends and encourage them to take part
in this campaign as well.
Purchase the Silver Lockit online on www.louisvuitton.com/lvforunicef and in Louis Vuitton stores
worldwide. To find out more on Louis Vuitton for
Unicef initiatives visit www.unicef.org/lvforunicef.
P
A
C
live it! 23
WELLBEING . THE ARTS . WINE+DINE . STYLE+DESIGN . LEISURE
FASHION
BY HANNAH M ERICAN
01
02
04
Personal
ASSISTANT
CO MPI L ED BY SHALINI YEAP
24 F E AT U R E
Behavioural economics
wins US$1.5b US lottery
It takes more than the dollar and a dream marketing ploy of yesteryear to woo gamblers
BY JEFFREY GOLDFARB
LONDON: For financiers, the Middle East has turned from a source
of oil-rich clients to a major anxiety. That was the view of around
200 guests at the Breakingviews
Predictions summit in London last
Thursday. They voted the region as
the main reason for losing sleep
this year ahead of Chinas economy and collapsing commodity
markets. Worries about an Arab
winter are well founded.