Yong Ing Hui expands market share in tugboat and shipping business

Gimhawk Group sets up subsidiary company

by Wilson Kong reporters@theborneopost.com. Posted on November 11, 2011, Friday

GROWING BUSINESS: The tugboat that Gimhawk Group is building.

SIBU: Gimhawk Group has reached another milestone of sorts in the shipping business by opening a subsidiary company, Gimhawk Enterprise Sdn Bhd, at a commercial centre in Jalan Wong King Huo here yesterday.
The company provides all-round services to customers, such as shipbuilding, shipping, forwarding, ship repairing, marine engine, generator, heavy machineries and spare part trading.
Gimhawk Group founder and president, Yong Ing Hui, has a vision to achieve the title of a world-class builder of superb quality vessels with comprehensive safety equipment and advanced navigation system at competitive prices.  Its business has expanded to overseas with rising annual turnover since 2003.
With only a handful of workers initially, the number has grown to over 200 now.
In a press conference here yesterday, Yong said his success did not come easy as one might think.
“My wife and I have faced many setbacks in the past, the worst one was during the global economic crisis in 1997 when the company was officially set up,” he recalled.
“I must thank my wife, Lee Sui Eng, who is the financial director of Gimhawk Enterprise Sdn Bhd, for her support and patience,” he said, adding that during the severe economic crises in the 1980s, many companies here failed but not Gimhawk Enterprise.
Yong said transformation was vital to overcome hardships in any business.
“Any company in the service business must learn to transform to suit the changing time and to tap opportunities during a crisis. There is opportunity in every doldrum.”
He added that the two key elements in bringing his company to greater height were (right) ethics and attitude.
On a more personal note, Yong, who is a father of five, said it was his wish to have all his children going into the family business.
“My three sons and two daughters have returned to help us (in the business) after their graduation,” he said smiling, and thanked God for his success.
“We reciprocate by donating to the Shen Dao Methodist Church where we go regularly for praise and worship,” he sai

CIMB hits record RM4b net profit for FY11, a 15% growth

Tuesday, 28 February 2012 10:31 Farah Saad 0 Comments

CIMB Group Holdings Bhd posted a record net profit of RM4.03 billion for its financial year ended Dec 31, 2011 (FY11) — a 15.1% growth year-on-year (YoY), in spite of subdued revenue growth. Net return on equity (ROE) was also a record high of 16.4%, although slightly below the bank’s target of 17%.

CIMB group managing director/ chief executive officer (CEO) Datuk Seri Nazir Razak, during the bank’s media briefing in Kuala Lumpur, said he was “very pleased” with the results.

“We delivered record profits and ROE in a year when revenue growth was subdued due to the high 2010 non-interest income base, compressing interest margins, and our more cautious approach to asset growth.”

The bank’s primary disappointment, said Nazir, was its share price which significantly underperformed benchmarks. “I don’t believe in tactics to boost share price. We will continue to be as transparent as we can, and let the investors decide. Let the market take its course.”

For the fourth-quarter (4Q) alone, CIMB's net profit of RM1.13 billion was 12% higher than the previous quarter, and 29.8% higher than the 2010’s 4Q net profit of RM873 million. YoY, the bank’s revenue was 2.1% higher at RM12.12 billion. Net interest income grew by 3%, while non-interest income was up only 0.3%.

“Last year’s non-interest revenue was boosted by the sale on ex-Lippo bonds, which created a bigger base,” said Nazir.

CIMB Islamic Bank Bhd’s YoY pretax profit increased 10.9% to RM447 million as its products gained more ground. Total deposits grew 28.9% to RM29.2 billion.

Bank CIMB Niaga, its Indonesian operations, reported a FY11 net profit of 3.17 trillion rupiah (RM1.06 billion), a 24.6% growth YoY, on the back of strong loans growth.

“We expect CIMB Niaga to continue its high growth rates in line with robust Indonesian markets. The Indonesian economy is expected to grow around 6%,” said Nazir.

CIMB Thai announced a FY11 net profit of 1.32 billion baht (RM131.21 million), a 58.8% improvement from the 829 million baht recorded in the previous year.

The Thai bank enjoyed a windfall gain of one billion baht in the 4Q, being the share of recoveries from legacy bad loans managed by Thai Asset Management Group, which was partly used to increase provisons following the flood.

On its outlook for 2012, Nazir said the bank is “cautiously optimistic” and an ROE target of 16.4% has been set for the year.

“I think 2012 could surprise on the upside as most of the downside risks are already quite visible. We believe that recent changes to our business model and processes have made us more competitive in our regional wholesale business, and our 2012 deal pipeline is very good,” he said.

Despite the anticipated slower credit growth environment for retail loans and softening in traditional areas like mortgages, Nazir said CIMB would build on last year’s growth in the consumer banking sector.

Meanwhile, commenting on the recent reports of CIMB’s bid to buy the Australian equity business of Britain-based Royal Bank of Scotland plc (RBS), Nazir confirmed that discussions are underway, but declined to comment further.

On the bank’s proposed acquisition of Bank of Commerce in the Philippines, he said CIMB hopes to complete the deal within next month. The Philippine central bank has a 60% cap on foreign ownership of banks.

HSL’s 2012 maiden contract marks a first of many over the next few months

Posted on February 15, 2012, Wednesday

KUCHING: Hock Seng Lee Bhd’s (HSL) recent contract win for the construction of the road from Balingian to Jalan Persekutan in Sarawak is in line with the view that construction projects in East Malaysia could finally gain some traction in the coming months.
“HSL’s subcontract agreement with PN Construction Sdn Bhd is reportedly worth RM82 million and its scope of works includes earthworks, drainage and culverts, road and bridges,” OSK Research Sdn Bhd (OSK Research) said in its research report.
The work on the project was slated to be completed in the first quarter of 2014. OSK Research noted that the recent award marked HSL’s maiden contract win for financial year 2012 which the research house deemed was in line with its expectations.
“Our financial year 2012 order book replenishment for HSL stands at RM400 million,” the report added.
OSK Research opined that the latest award tied in with its view that the slow-moving construction projects in East Malaysia could finally gain some traction, with the Sarawak Corridor of Renewable Energy (SCORE) leading the way.
Although the flow of contracts had slowed down substantially in recent months due to insufficient funding from the Federal Government, the research house believed that a ‘turn in fortunes’ could occur in the run-up to the general election.
AmResearch Sdn Bhd (AmResearch) echoed these beliefs in its own research report as it stated that this could be the start of a series of job awards this year to Sarawak’s construction players in tandem with SCORE.
“Notably, Baligian is the site of Sarawak Energy Bhd’s (SEB) proposed RM3 billion coal-fired power station. We understand that HSL is actively bidding for participation in energy-related projects,” the report said.
The research house also pointed out that HSL now had RM1.7 billion worth of projects in hand of which RM1.1 billion was outstanding.
“The company can see potential projects from the remaining packages of the Kuching central sewerage system worth approximately RM1.7 billion, additional flood mitigation packages worth RM250 million in Sibu, the development of a port and additional water treatment plants at Samalaju and some others in the pipeline,” according to AmResearch.

Linggi-owned and Graeme Brown-controlled Keresa Plantations profits from nearly 18,000 acres of palm oil

APPRECATION: Linggi (front right) presents a souvenir to Webber as (from right) Brown, Limar Group senior group general manager Khairul Azizan Alias and Keresa Plantations general manager AK Kumaran look on.

Keresa Plantations sees boost in sustainable palm oil production with RSPO, local smallholder cooperation

by Venu Puthankattil, venu@theborneopost.com. Posted on February 10, 2012, Friday

KUCHING: Sarawakian oil palm planter Keresa Plantations Sdn Bhd (Keresa Plantations) has seen improved efficiency as well as productivity in fresh fruit bunch (FFB) output thanks to guidance from the Roundtable on Sustainable Palm Oil (RSPO) as well as co-operative efforts with smallholders.
Keresa Plantations, a subdivision of Limar Group, started operations in 1996 and currently has a landbank of 6,023 hectares (ha) in Labang district between Bintulu and Belaga.
At a media conference, Keresa Plantations chairman Tan Sri Datuk Amar Leonard Linggi Jugah revealed, “Last year, we produced 134,673 metric tonnes (mt) of fresh fruit bunches (FFB) with a yield 25.9 tonnes per hectare per year.
“Sarawak’s average is 18mt per ha per year and national average is 19mt per ha per year so Keresa Plantations is slightly above the industry average in terms of yield. This is possible because we are small and we want to maximise efficiency in managing our plantation and running it professionally,” he said.
“We built a mill in 2007 running at a capacity of 45mt per hour which we have upgraded to 60mt per hour.
“We are also constructing another mill to be completed by December this year at a cost of RM60 million.
“When we started planting, the local Iban community wanted to follow suit. We decided to assist them by providing seedlings, fertiliser as well as generate employment and economic opportunities for them.
“That is very important to us because it gives us a good relationship with the local people and we have a good rapport with them,” he noted.
To maximise the productivity of the plantation, the company approached the RSPO whose guidance and requirements helped it to improve sustainability, help the local people within the area and gave it added advantage once it was RSPO certified.
Keresa Plantations was the first Sarawak-based company to have its mill certified by RSPO and with regards to this, Linggi said the certification had provided the company with a competitive advantage and opened up new markets.
Managing director of Keresa Plantations Graeme Brown remarked, “We are seeing the benefits of certification. Being RSPO certified has allowed us to communicate clearly to our consumers that we produce palm oil that is environmentally friendly and socially just.”
Representing RSPO was secretary general Darrel Webber who noted, “Companies like Keresa Plantations are one such example of how Sarawak should transform its cultivation of oil palm to sustainable standards in order to remain ahead of global trends and competition concurrently with responsible and conscientious practices.”
Certification under RSPO standards began in 2008 and since then the production of Certified Sustainable Palm Oil (CSPO) attained a share of 11 per cent of global crude palm oil.
Malaysia leads the global community as the world’s largest CSPO producer, commanding 48 per cent, leading other producing countries namely Indonesia, Papua New Guinea, South America and West Africa.

Hock Seng Lee to be a beneficiary of booming SCORE, Samalaju projects

Borneo Post February 11, 2012, Saturday

KUCHING: Hock Seng Lee Bhd (HSL) is set to benefit from the massive and rapid developments of the Sarawak Corridor of Renewable Energy (SCORE) and in particular, the Samalaju Industrial Park.
“We believe there will be a flurry of job announcements in the weeks and months ahead relating to Sarawak’s SCORE updates,” AmResearch Sdn Bhd (AmResearch) stated in its research report yesterday.
It highlighted some projects such as the Sarawak Hidro Sdn Bhd’s plan to ramp up the 2,400 megawatt Bakun hydroelectricity dam, Sarawak Energy Bhd’s (SEB) possible RM6 billion expenditure on the development of a coal-fired power station in Balingian, Mukah and a 500 kilovolt transmission network linking Bintulu to Kuching this year.
SEB had also recently formalised a second Power Purchase Agreement with OM Materials Sdn Bhd for a 20-year supply of 500megawatt to power the latter’s US$500 million manganese and ferrosilicon alloy smelting plant in Samalaju.
“This followed an earlier pact between SEB and Asia Minerals Ltd for the supply of 270 megawatt of power to a similar project estimated at RM790 million,” the research house informed.
The future appeared bright for HSL as AmResearch opined that it would be a direct beneficiary of the massive and rapid developments within SCORE, given its expertise in infrastructure and construction works and specifically in land reclamation.
“HSL currently has RM1.6 billion worth of projects in hand, of which RM1 billion is outstanding. We also understand that HSL is actively bidding for energy-related projects as well,” added the report.
AmResearch still anticipated some potential projects in the pipeline such as the remaining packages of the Kuching central sewerage system worth approximately RM1.7 billion, additional flood mitigation packages in Sibu worth RM250 million, the development of a port and additional water treatment plants at Samalaju and various road and rural water supply jobs.
With the numerous large-scale projects taking place in the state, the research house believed that HSL was well positioned for some multi-year rerating prospects, as it went on to peg a fair value of RM2.44 per share for the company.
It had also tweaked HSL’s earnings forecast for financial year 2011 by four per cent but increased its financial year 2012 and 2013 forecasts by one to five per cent, driven by the recent news flow.

Flood Drains in Kuala Baram in danger due to cement delays from monopoly suppplier

Shortage of cement delays drain project

January 4, 2012, Wednesday

THAT’S HOW IT IS: Mutang (left) briefs Lai (second left) on the project at the site.

MIRI: The prevailing cement shortage is delaying the construction of a monsoon drain to mitigate flood in Kuala Baram Industrial Estate here.
The RM1.9-million project is funded by Ministry of Industrial Development to address the frequent flooding in the area during the monsoon season which is made worse when it coincides with high tide and king tide.
Director of Semaring Logistic (M) Sdn Bhd, Mutang Tagal, who briefed Mayor Lawrence Lai on the project during his site visit yesterday afternoon disclosed: “Phase one of the project involving construction of a 280-metre long monsoon drain was supposed to be completed by the end of December. The acute shortage of cement experienced by us and others in the construction industry throughout the state is causing delay to the project.”
According to Mutang, the situation was made worse by the monsoon season which hampered their work.
“If we are able to get hold of the cement we ordered soon, we try to complete the job by the end of this month,” he assured.
The monsoon drain will help to discharge flood waters directly into the Baram River and then to the sea. The project also includes construction of a rubbish trap to ensure that logs and other floating debris will not float into the monsoon drain.Lai hoped that the project will reduce flooding in the area.

CMS has been having a cement monopoly in Sarawak for nearly 30 years.

Samling Profits 2011

Media Release
For Immediate Release
SAMLING GLOBAL ANNOUNCES FY2010/11 ANNUAL RESULTS
***** Profit Attributable to Equity Shareholders Surges 64.1% to US$20.7 Million
Improved Profit Performance; Strong Growth in the PRC and India
(HONG KONG, 22 September 2011) — Integrated forest resource and wood products company Samling Global Limited (―Samling‖ / the ―Group‖) (Stock code: 3938) today announced its annual results for the year ended 30 June 2011.
Financial Highlights
Financial year ended 30 June 2011 (US$’000) Financial year ended 30 June 2010 (US$’000) Change (%)
Revenue
US$729,047
(HK$5,686,566,600)
US$598,248
(HK$4,666,334,400)
+21.9
Gross profit
US$83,210
(HK$649,038,000)
US$57,351
(HK$447,337,800)
+45.1
Gross profit margin
11.4%
9.6%
Profit from operations
US$21,729
(HK$169,486,200)
US$18,092
(HK$141,117,600)
+20.1
Profit attributable to equity shareholders
US$20,746
(HK$161,818,800)
US$12,645
(HK$98,631,000)
+64.1
EBITDA
US$123,329
(HK$961,966,200)
US$94,238
(HK$735,056,400)
+30.9
Basic earnings per share
0.48 US cent
(3.744 HK cents)
0.29 US cent
(2.262 HK cents)
+65.5
Proposed final dividend
0.128 US cent
(1.0 HK cent)
0.080 US cent
(0.624 HK cent)
+60.0
*US$1 = HK$7.8
Key Highlights
 Revenue increased by 21.9% to US$729.0 million (HK$5,686.6 million) compared to the preceding financial year driven by increased sales volume and selling prices of logs
 Sustained profitability with gross profit and profit attributable to equity shareholders up 45.1% and 64.1% to US$83.2 million (HK$649.0 million) and US$20.7 million (HK$161.8 million) respectively
 India and the PRC were the Group’s strongest export markets and were key contributors to profit from logs and flooring product sales in the financial year under review
 EBITDA of US$123.3 million (HK$962.0 million) was 30.9% higher than the previous financial year

Hamed Sepawi and KH Wong-owned Ta Ann Holdings Bhd profits from 420,000 tonnes of palm fruit from Sarawak 2011

Ta Ann registers strong FFB growth of 47 per cent to be sustained into 2012

Posted on January 20, 2012, Friday

KUCHING: Ta Ann Holdings Bhd (Ta Ann) has registered fresh fruit bunch (FFB) growth of 47 per cent year-on-year (y-o-y) for the period between January to November 2011,  prompting predictions that the growth will be sustained into 2012.
“Ta Ann’s FFB production jumped by 47 per cent to 418,915 million tonnes, which was significantly higher than the industry’s average FFB growth of 11 per cent,” Kenanga Investment Bank Bhd (Kenanga Research) stated in its research report.
The research house believed that the FFB production soared in financial year 2011 as matured area had grown by 31 per cent y-o-y to 20,317 hectares. It predicted the trend to continue into financial year 2012 as the matured area would grow 26 per cent  y-o-y to 25,690 hectares.
This would lead the way for FFB production to surge 31 per cent  y-o-y to 596,000 million tonnes, the report said.
Kenanga Research foresaw a bountiful harvest ahead for Ta Ann as its average oil palm tree age profile of 4.5 to five years was the youngest for planters under the research house’s coverage. As the trees mature, it expected Ta Ann’s FFB production to grow at an enviable three year compound annual growth rate (CAGR) of 21 per cent.
“As oil palm trees’ FFB production usually peaks at between 10 to 12 years old, we can look ahead for at least five years of uninterrupted double digit FFB growth,” the research house enthused.
On the assumption of a disciplined planting of 3,000 hectares annually for financial years 2012 and 2013, the company’s FFB production could be maintained at a five year CAGR of 15 per cent.
The research house reiterated its view that Ta Ann should be categorised as a plantation company, noting that 72 per cent of its nine months 2011 profit before tax was derived from its plantation devision.
As the company’s FFB production surged, Kenange Research expected the plantation division preta profit contribution to reach 83 per cent and 93 per cent in financial year 2012 and 2013 estimates respectively.
Kenanga Research went on to upgrade financial year 2012 estimated core earnings by three per cent to RM195 million as it pegged a taret price of RM6.25 per share for Ta Ann.

Shin Yang-controlled SOP profits from 820,000 tonnes of FFB from Sarawak land in 2011

SOP registers 22 per cent FFB growth last year

Posted on January 6, 2012, Friday

KUCHING: Sarawak Oil Palms Bhd’s (SOP) registered a 22 per cent growth in fresh fruit bunch (FFB) for the year 2011 when compared with the yield for 2010.
OSK Research Sdn Bhd (OSK Research) stated that 2011 FFB production was above 820,000 tonnes while crude palm oil (CPO) production was above 310,000 tonnes, representing a 30 per cent boost from 2010.
“Weather has been good so far in central and northern Sarawak where SOP’s estates are located. FFB production growth this year should be in the high-teens,” the research house opined.
To cater for its FFB production growth, the company was building two CPO mills with a total capital expenditure estimated at RM115 million.
A 60 tonne per hour CPO mill would be completed and begin operations in mid-2012 while another 90 tonne per hour mill would come on stream in 2013.
Meanwhile, the company’s 1,500 tonne per day refinery in Bintulu was on track to commence operations in April this year.
The refinery should be fully utilised by the company’s own CPO production within two to three years, of which then the company would look to further expand its downstream capacity.
As of now, SOP’s own CPO production would cater for about 70 per cent of the refinery’s capacity, OSK Research stated. Based on 12 times financial year 2012 price earnings ratio, the research house pegged SOP’s fair value at RM6.51 per share.

Shin Yang-owned SOP reaps outstanding 9 months profit in Sarawak

 

Sarawak Oil Palms posts RM 200 million profit for 9 months

 November 30, 2011, Wednesday

UPSIDE SURPRISE: Photo shows workers on one of Sarawak Oil Palms’ estates. Sarawak Oil Palms saw its revenue surge 65.4 per cent year-on-year on the back of stronger palm prices and production, leading to earnings growth of close to 100 per cent.

KUCHING: Sarawak Oil Palms Bhd (Sarawak Oil Palms) nine months financial year 2011 earnings of RM199.7 million came in ahead of expectations, placing the company on track to form its best production year ever.
OSK Research Sdn Bhd (OSK Research) stated in its research report, “The company’s earnings blew away estimates, accounting for 90.7 per cent and 88.2 per cent of our and consensus full-year forecasts as we had originally expected a weaker second half.”
Sarawak Oil Palms saw its revenue surge 65.4 per cent year-on-year on the back of stronger palm prices and production, leading to earnings growth of close to 100 per cent, according to the research house. It went on to explain that the company was on course to record its best production year ever, with its nine months fresh fruit bunch production jumping 21.8 per cent year-on-year to meet 74.4 per cent of OSK Research’s 811,741-tonne full-year production forecast.
While the company’s crude palm oil (CPO) sales were transacted at prices marginally below the national average in the first half of the year, its realised CPO prices for thie third quarter were actually higher than the Malaysian average.
“This suggests some degree of forward sale as Sarawak transacted prices were below the national average during the quarter,” added the report.
Going forward, the research house raised its financial year 2011 earnings forecast by 19.6 per cent to RM263.3 million as it factored in better than estimated realised palm kernel prices and higher net interest income.
Financial year 2012 income had also been revised upwards b 24.6 per cent as OSK Research upgraded its 2012 average CPO price assumption to RM3,000 per tonne from RM2,700 tonne previously.
With regards to the company’s new Bintulu refinery, the research house factored in zero earnings, predicting multiple operation hiccups and under-utilisation in the initial age of commencing operation. OSK Research thus pegged a fair value of RM6.51 per share for Sarawak Oil Palms, an increase from the previous RM5.67.

Anthony Bujang is Petra Energy's new CEO

KUALA LUMPUR: Integrated oil and gas brown field services provider Petra Energy Bhd has appointed Datuk Anthony Fridauz Bujang its new chief executive officer.

In a statement today, Petra Energy said Anthony who is formerly Chief Executive Officer of the New Straits Times Press (M) Bhd (NSTP), was well experienced in banking, communications and the oil & gas industry.

The company also announced the appointment of Florentius Henry Toyad as Director of Operations, Mohamad Zaidee Abang Hipni as Chief Financial Officer, Saperi Rambli as Senior General Manager (Corporate Communications, Branding and Services), Mohamed Azahari Jantan as Head of Contract and Commercial, Mohamad
Subky Bustari as General Manager (Group Operations Planning), Abdullah Hashim as Senior Manager (Internal Audit) and Lee Hung Sang as Technical Operations Manager.- BERNAMA