The World's Best Places to Live 2008

Mercer Consulting's annual roundup of the global cities with the best quality of life is here, and Zurich once again comes out on top. The best place in the U.S.? Honolulu at No. 28.

New York, London, and Paris are internationally renowned cities but consultants at Mercer Consulting have picked Zurich, Switzerland, as the best place to live in the company's annual survey.

Consultants rated each city on a variety of factors including the level of traffic congestion, air quality, and personal safety reported by expatriates living in more than 600 cities worldwide. In the top 25, U.S. cities such as San Francisco, Boston, and Chicago were all edged out by Geneva, Switzerland, Vancouver, B.C., and Auckland, New Zealand. The highest-scoring U.S. city is Honolulu, which came in at No. 28.

Still, Mercer acknowledges that cities with a high quality of life are not necessarily the most exciting. "There are a lot of 'sleepy' towns that got high ratings," said Rebecca Powers, a principal consultant in human capital for the company. "But if you were to judge them on something like nightlife, there are some that probably wouldn't have rated as high."


No. 1: Zurich, Switzerland

Mercer score: 108*
2007 rank: No. 1
GDP: $300.9 billion (2007 est.)**
Population: 7,581,520 (total country); 347,517 (total city)
Life expectancy: 80.74 years

No. 2 (tie): Vienna, Austria

Mercer score: 107.9
2007 rank: No. 3
GDP: $319.7 billion (2007 est.)
Population: 8,205,533 (total country); 1,825,287 (total city)
Life expectancy: 79.36 years


No. 2 (tie): Geneva, Switzerland

Mercer score: 107.9
2007 rank: No. 2
GDP: $300.9 billion (2007 est.)
Population: 7,581,520 (total country); 185,000 (total city)
Life expectancy: 80.74 years

No. 4: Vancouver, Canada

Mercer score: 107.6
2007 rank: No. 3
GDP: $1.274 trillion (2007 est.)
Population: 33,212,696 (total country); 560,000 (total city)
Life expectancy: 81.16 years


No. 5: Auckland, New Zealand

Mercer score: 107.3
2007 rank: No. 5
GDP: $112.6 billion (2007 est.)
Population: 4,173,460 (total country); 1.18 million (total city)
Life expectancy: 80.24 years

No. 6: Dusseldorf, Germany

Mercer score: 107.2
2007 rank: No. 6
GDP: $2.833 trillion (2007 est.)
Population: 82,369,548 (total country); 581,858 (total city)
Life expectancy: 79.1 years


No. 7 (tie): Munich, Germany

Mercer score: 107
2007 rank: No. 8
GDP: $2.833 trillion (2007 est.)
Population: 82,369,548 (total country); 1,332,650 (total city)
Life expectancy: 79.1 years

No. 7 (tie): Frankfurt, Germany

Mercer score: 107
2007 rank: No. 7
GDP: $2.833 trillion (2007 est.)
Population: 82,369,548 (total country); 3,700,000 (total city)
Life expectancy: 79.1 years


No. 9: Bern, Switzerland

Mercer score: 106.5
2007 rank: No. 9
GDP: $319.7 billion (2007 est.)
Population: 8,205,533 (total country); 122,178 (total city)
Life expectancy: 79.36 years

No. 10: Sydney, Australia

Mercer score: 106.3
2007 rank: No. 9
GDP: $766.8 billion (2007 est.)
Population: 20,600,856 (total country); 4,297,100 (total city)
Life expectancy: 80.73 years

Asia's best managed companies: Taiwan

We publish the results of our annual poll to find Asia's top companies. Today, Taiwan.

For our eighth annual poll of Asia's top companies we have collected votes from 167 investors and analysts across the region. The results are being published country by country over a two-week period and the final day will also reveal which companies are viewed to be the best managed in the region in eight key sectors.

Here are the results for Taiwan.

Best managed company Votes
1. TSMC 44
2. MediaTek 25
3. Delta Electronics 15
4. Hon Hai Precision 14
5. China Steel 12
5. Formosa Plastics Group 12
5. Cathay Financial 12
8. HTC 11
9. Yuanta Financial 7

Best corporate governance Votes
1. TSMC 52
2. China Steel 30
3. MediaTek 12
4. First Financial 10
5. FarEasTone 9
5. Formosa Plastics Group 9
7. Asustek 8
8. HTC 6
8. Yuanta Financial 6

Best investor relations Votes
1. TSMC 40
2. China Steel 26
3. Acer 22
4. Delta Electronics 14
5. Fubon Financial 10
6. MediaTek 9
7. Yuanta Financial 7
7. D-Link 7

Most committed to a strong dividend policy Votes
1. TSMC 34
2. China Steel 28
3. Chunghwa Telecom 18
4. Formosa Plastics Group 12
4. Mega Holdings 12
4. Delta Electronics 12
7. MediaTek 10

Best mid-cap Votes
1. Silitech 14

Best small-cap Votes
1. Shin Zu Shing 13

Best CFO Votes
1. Lora Ho (TSMC) 16
2. Ming-To Yu (MediaTek) 7

Asia's best managed companies: Thailand

We publish the results of our annual poll to find Asia's top companies. Today, Thailand.

For our eighth annual poll of Asia's top companies we have collected votes from 167 investors and analysts across the region. The results are being published country by country over a two-week period and the final day will also reveal which companies are viewed to be the best managed in the region in eight key sectors.

Here are the results for Thailand.

Best managed company Votes
1. PTT 46
2. Siam Cement 42
3. PTTEP 29
4. Thai Oil 14
5. Kasikornbank 12
5. Banpu 12
7. The Erawan Group 11
8. Siam Commercial Bank 10
9. Precious Shipping 9

Best corporate governance Votes
1. Siam Cement 52
2. PTT 32
3. Siam Commercial Bank 16
4. Banpu 15
5. Kasikornbank 14
6. PTTEP 12
7. DTAC 10
8. Thai Oil 9
9. Precious Shipping 6

Best investor relations Votes
1. PTT 34
2. Siam Commercial Bank 32
3. Banpu 27
4. Kasikornbank 21
5. Siam Cement 17
6. Charoen Pokphand Foods 16
7. Egco 12
8. The Erawan Group 11
9. PTTEP 10

Most committed to a strong dividend policy Votes
1. Siam Cement 60
2. PTT 24
3. Banpu 21
4. Egco 18
5. AIS 15
5. PTTEP 15
7. Thai Plastic & Chemicals 14
8. Land & Houses 12

Best mid-cap Votes
1. TISCO Bank 18
2. The Erawan Group 9
2. Thai Plastic & Chemicals 9

Best small-cap Votes
1. Thai Optical Group 13
2. TNDT 12

Best CFO Votes
Pichai Chunhavachira (PTT) 18

RHB cuts Zelan’s earnings, fair value

RHB Research has slashed its net profit forecast for Zelan Bhd by up to 10% for financial years ending March 2009 till 2011. This is in anticipation that the power plant builder will book lower earnings before interest and tax (Ebit) margins of 8% for its construction business compared to 8.5% previously.

At the same time, RHB Research also reduced its fair value for the stock’s price by 8% from RM5.53 to RM5.10. However, it kept its outpeform call for Zelan, encouraged by the builder’s RM4.2 billion construction order book, net cash of RM163.8 million and key liquid assets in the form of 82.3 million IJM Corp Bhd shares.

In a note yesterday, RHB Research said the downgrade in Zelan’s earnings came amid less favourable sentiments for Malaysian construction stocks due to the change in the local political landscape and higher input costs for the company’s operations.

However, Zelan is deemed capable of managing these challenges, the research house said. This is by virtue of the firm’s efforts to expand its global reach with new markets in Africa and Vietnam. The firm’s forward-buying of raw materials and insourcing of more work are also expected to its profit margins.

“The trend towards a more open public procurement model locally, prompted by the change in the political landscape means the demise of one key appeal of Malaysian construction companies, ie their ability to secure ‘direct-nego’ fat-margin public jobs and further delays, if not cancellation, of certain public projects,” noted RHB Research.

“The risks (for Zelan) include new contracts secured in 2008 coming in below our target of RM1 billion, and more severe-than-expected contraction in construction margins,” it added.

Meanwhile, Zelan’s net cash position and its liquid assets in the form of IJM shares are expected to offer Zelan the financial strength to capitalise on future opportunities.

Valuations-wise, RHB Research said Zelan was still cheaper than the average price earnings ratio (PER) of global peers. Its revised target share price of RM5.10 for Zelan values the builder’s core business at a PER of 18 times FY09 earnings.

Its PER is an estimated 20% discount to the average one-year forward PER of 22 times derived from its global rivals’ valuations. Zelan’s valuations is based on the builder’s relatively small market value and its 82.3 million IJM shares.

According to the research house, Zelan had said it should know, within days, if it was able to clinch a power plant job in Bostwana. This assumes the African nation’s policymakers will finalise the matter at its next meeting.

Zelan had also recently submitted bids for other jobs. These include tenders for the RM1.96 billion Tanjung Jati power plant in central Java, Indonesia and a RM680 million open-cycle gas turbine power plant in Saudi Arabia.

Zelan made a RM142.93 million net profit, or 25.38 sen a share in the year ended March 2008 on a RM1.37 billion revenue. As the company’s financial year has been changed to end in March from January previously, there are no comparative figures available.

Shares of Zelan declined five sen yesterday to finish at RM2.32.

Asia's best managed companies: Indonesia

We publish the results of our annual poll to find Asia's top companies. Today, Indonesia.


For our eighth annual poll of Asia's top companies we have collected votes from 167 investors and analysts across the region. The results are being published country by country over a two-week period and the final day will also reveal which companies are viewed to be the best managed in the region in eight key sectors.

Here are the results for Indonesia.

Best managed company Votes
1. Astra International 42
2. Unilever Indonesia 21
3. Telkom Indonesia 15
4. BCA 12
5. Antam 11
6. Bumi Resources 8
7. Indocement 7
8. Bank Niaga 6
8. Bank Mandiri 6

Best corporate governance Votes
1. Astra International 36
2. Antam 23
3. Unilever Indonesia 22
4. Telkom Indonesia 13
5. BCA 12
6. Bank Mandiri 10
7. Bank Danamon 8
7. United Tractors 8
7. Ramayana Lestari 8

Best investor relations Votes
1. Astra International 36
2. Bank Mandiri 26
3. Antam 21
4. Telkom Indonesia 12
5. United Tractors 10
6. Bumi Resources 8
7. Unilever Indonesia 7
8. Ramayama Lestari 6

Most committed to a strong dividend policy Votes
1. BCA 26
2. Telkom Indonesia 24
3. Aneka Tambang 22
3. Unilever Indonesia 22
5. Semen Gresik 14
6. Inco 10
7. Astra International 8

Best mid-cap Votes
1. Ace Hardware 24
2. Bakrie Brothers 12

Best small-cap Votes
1. Duta Graha 14
2. Trimegah Securities 8

Best CFO Votes
Simon Mawson (Astra International) 15
Jahja Setiaatmadja (BCA) 9

Asia's best managed companies: Korea

We publish the results of our annual poll to find Asia's top companies. Today, South Korea.


For our eighth annual poll of Asia's top companies we have collected votes from 167 investors and analysts across the region. The results are being published country by country over a two-week period and the final day will also reveal which companies are viewed to be the best managed in the region in eight key sectors.

Here are the results for South Korea.

Best managed company Votes
1. Samsung Electronics 46
2. Posco 25
3. LG Electronics 21
4. Kookmin Bank 16
5. Daewoo Shipbuilding & Marine 15
6. Shinsegae 10
7. NHN Corp 8
8. Hankook Tire 7
9. Hyundai Motors 5

Best corporate governance Votes
1. Samsung Electronics 36
2. Posco 25
3. Daewoo Shipbuilding & Marine 16
3. KT&G 16
5. LG Electronics 15
6. Amore Pacific 14
7. Shinhan Financial 11
8. LG Household and Health Care 10
9. Kookmin Bank 6
9. Shinsegae 6

Best investor relations Votes
1. Samsung Electronics 40
2. Hyundai Motors 25
3. Posco 20
4. LG Household and Health Care 16
5. Shinhan FInancial 13
6. Hana Bank 12
7. Daewoo Shipbuilding & Marine 8
7. Kookmin Bank 8
9. Amore Pacific 6
9. Kia Motors 6

Most committed to a strong dividend policy Votes
1. Korea Telecom 38
2. Samsung Electronics 30
3. KT&G 24
4. Posco 23
5. S-Oil 19
6. Daewoo Shipbuilding & Marine 7
7. Hyundai Motors 6

Best mid-cap Votes
1. Sung Kwang Bend 11
2. Jinsung TEC 7

Best small-cap Votes
Not awarded

Best CFO Votes
Doh Seok Choi (Samsung Electronics) 15

KNM: Borsig acquisition completed

KNM GROUP BHD
Price: RM6.40
Fair Value: RM7.26


• Acquisition of Borsig of Germany for RM1.7bn completed. The completion is slightly ahead schedule.
KNM would now concentrate on intergrating the new acquisitions into the group.
• Upgraded PAT guidance for FY09 from RM700m to RM750m arising from higher average selling prices
(ASP) as the company moves up the technological curve. ASP to improve from RM18,000 per mt in
FY08 to RM22,000 per mt in FY09.
• Profit guidance is based on current orders in hand and respective subsidiary company’s order flow.
Synergistic benefits arising from cross utulisation of resources (like central purchasing, treasury, central
engineering and costing, etc) are not taken into account.
• Capacity for FY08 is 160,000mt p.a. while in FY09 it will be 185,300mt p.a. Capacity utilisation would be
90% in FY09 as Borsig’s low- to medium-end fabrication work would be outsourced to Malaysia as part
of the capacity rationalization to produce synergistic benefits and technology transfer.
• Order book stands at RM4.2bn. Tender book at RM20bn with estimated order win at RM4bn.
• Possible upgrade to earnings as KNM rationalizes the orders throughout the group. Would also be
opening a new area of growth via the provision of maintenance services of especially of Borsig’s highend
process equipment. KNM would be applying for a tax waiver for its Borsig acquisition. Based on the
acquisition price of RM1.7bn, it is likely that the tax credit would stretch over 5 years of more.
• Borsig provides a new market to KNM i.e. Europe. Moreover, with a more complete product range from
low to high-end the expanded KNM group can now bid for high margin big orders.
• Orders flow visibility is high over the next few years as companies scramble to take advantage of the
high oil price.
• Upgraded our fair value to RM7.26 on account of improved PAT in FY09 and removal of 10% risk
discount from our PER target of 15x. The discount was incorporated due to the yet to be completion of
the Borsig acquisition. Upside potential is 13.4%.
• It is possible that KNM be rerated to a higher PER of 18x on an improving equity market and the return
of risk adverse investors. We also note that Asia Pacific Re Fidelity JP Morgan, Bournemouth holds
115.3m or 10.9% of KNM for its various funds. Based on a PER of 18x, fair value is RM8.70 (x-all -
RM2.90) giving a potential upside of 36%. BUY maintained.
Worth noting, what we said previously about KNM, which we recap below.
• Has ability to source out and acquire poorly performing companies and turn them around
• The acquired companies come with higher technology and new customers, hence expanding its product
offering and customers base and markets.
• Besides manufacturing capability, the M&A also adds to manufacturing capacity
• Current acquisitions are successful companies with even higher technology (hence, higher margins) and
entry into new segment of the oil and gas sector
• Has a good risk management system in the face volatile raw material prices and currency. KNM adopts
a policy of hedging its exposure in currency and raw materials via forward contracts for currency and
back-to-back arrangement with its suppliers for raw materials.
• Adopts central monitoring of vital business functions i.e. contracts tendering, treasury, finance and
procurement help keep cost in check and risk acceptable.


From Jupiter Securities

稅收降低‧購德公司協同效應 科恩馬財測上修

(吉隆坡)科恩馬集團（KNM，7164；主板工業產品組）因稅收降低和收購德國伯西格集團偕同效應，獲達證券上修2009財政年盈利預測，顯著合約競標烘托其盈利前景展望。

達證券因科恩馬集團的有效稅收從19.1%減至13.6%，以及整合伯西格盈利比預期中快速，上修科恩馬集團盈利預測11%至7億6050萬令吉。2008財政年凈利則料達4億5810萬令吉。

手握42億合約

目前，該公司手握總值42億令吉的合約，其中55%來自現有的營運，其餘則來自收購德國伯西格集團（Borsig NV）等公司的貢獻。

“科恩馬集團正競標200億令吉的合約，成功率達25%。”

分析員指出，上述合約總值仍未完全反映龐大的潛能，尤其是許多油業鉅子公佈龐大的資本開銷將在明年開始招標。舉例來說，科恩馬集團旗下客戶如日本日揮株式會社（JGC）、美國福陸公司（Fluor）、千代田化工建設株式會社（Chiyoda）和Technip公司，皆是競標沙地阿拉伯國家石油公司總值4190億令吉合約的前線競標者。

與此同時，該集團收購伯西格後的協同效應揮發，進一步加強盈利展望。伯西格在歐州市場地位顯著，整合後的銷售組合在區域和領域顯著改變。

亞洲市場貢獻料減少

分析員估計亞洲市場貢獻將在明年減少至38%，其餘國家貢獻將從去年的20%顯著增加至50%。高處理設備業務的貢獻，則從30%走高至55%。

科恩馬集團有望在2011年攫取全球配備市場逾5%佔有率。在消化伯西格收購計劃後，可能再度出手收購。

達證券給予該股“買進”評級，目標價上調至8令吉20仙。

星洲日報／財經‧2008.06.07



我的话:

今天，我暂时把KNM卖了，小赚一点钱，原因是对后市抱着谨慎的态度。有机会，我会买回的。

一个不能被忽略的蓝筹股:PBBANK

回顾大众银行2007常年报告精华

Release of Public Bank 2007 Annual Report

The Public Bank 2007 Annual Report has been sent out to shareholders of Public Bank on 4 February 2008, together with the Notice of the 42nd Annual General Meeting of Public Bank to be held on 26 February 2008. A financial summary of the 2007 Annual Report was sent together with the 2007 Annual Report for the convenience of shareholders.

I am pleased to highlight some of the contents of the Public Bank 2007 Annual Report.

Letter to Stakeholders

In the Letter to Stakeholders in the 2007 Annual Report, the Board of Directors has provided a summary of the Public Bank Group’s financial performance, its strategic business direction, its commitment to the delivery of superior shareholder value as well as caring for the Group’s customers, staff and the community it serves.

Total assets of the Public Bank Group increased by 17.8% to reach RM174.2 billion as at the end of 2007. The strong expansion of the balance sheet was driven by strong organic business growth in both the Group’s domestic operations as well as its overseas operations. The Group’s net return on equity has improved from 21.9% in 2006 to 26.3% in 2007.

Delivery of superior shareholder value is highlighted as follows:

The interim dividend of 25 sen per Public Bank share paid in August 2007, together with the final dividend of 40 sen and special dividend of 10 sen proposed by the Board of Directors, will mean that Public Bank shareholders will receive net dividends totaling RM1.85 billion for 2007, representing 87% of the Public Bank Group’s net profit attributable to equity holders.
Since 2004, Public Bank has maintained a high dividend payout ratio of close to or over 90% of the Group’s net profit attributable to equity holders.

A shareholder who purchased 1,000 Public Bank (Local) shares at RM4.54 per Public Bank (Local) share at the beginning of 2003 and held it for 5 years to the end of 2007 would have received gross dividends totaling RM3,955 over the 5-year period and would have 1,250 Public Bank (Local) shares as at the end of 2007. This is equivalent to an exceptionally high annual return on investment of 36.4% for each of the 5 years from 2003 to 2007 based on the share price of RM11.00 per Public Bank (Local) share as at the end of 2007.

A shareholder who bought 1,000 Public Bank shares when it was listed in 1967, and assuming the shareholder had subscribed for all the rights issues to date and had not sold any of the Public Bank shares would have 129,730 Public Bank shares worth RM1,427,030 based on the Public Bank (Local) share price of RM11.00 at the end of 2007 and received a total gross dividend of RM487,902 over the 40-year period. This works out to a remarkable annual rate of return on investment of 20.6% for each of the 40 years since Public Bank was listed in 1967.

Corporate Governance

The Board of Directors of Public Bank not only adheres to the principles of corporate governance but well exceeds mandatory requirements, particularly in terms of the extent and timeliness of corporate disclosure and financial reporting.

The release of the 2007 Annual Report on 4 February 2008 is 12 days earlier as compared to the release of the 2006 Annual Report on 16 February 2007 and is well in advance of the deadline set by the Listing Requirements of Bursa Malaysia Securities Berhad of 30 June 2008.
Public Bank’s culture of accountability, transparency, integrity, professionalism and responsible corporate conduct had been recognised in 2007 by the following awards:

Public Bank was ranked No. 1 in corporate governance amongst the top 500 companies listed on Bursa Malaysia Securities Berhad, for the third consecutive year, in the Corporate Governance Survey Report 2007, a joint study by the Minority Shareholder Watchdog Group and the Nottingham University Business School.

Public Bank received the Platinum Award in the Overall Excellence Award (for the most outstanding annual report of the year) in the National Annual Corporate Report Awards (“NACRA”) 2007, the Platinum Award for the Best Annual Report in Bahasa Malaysia as well as the NACRA 2007 Industry Excellence Award for the Finance Sector.

Public Bank received the Malaysian Business Corporate Governance Award 2006 by Malaysian Business magazine for the fifth consecutive year.

Chairman’s Review

The Chairman’s Review covers an analysis of the Public Bank Group’s financial performance, the Group’s performance benchmarked against the Malaysian banking industry as well as against leading regional banking groups, the capital management initiatives undertaken, the ratings of Public Bank and a comprehensive review of the Group’s business operations.
Highlights from the Chairman’s Review include the following:

The Public Bank Group achieved a growth of 24.3% in pre-tax profit to reach RM3.00 billion in 2007. The Group’s net profit attributable to shareholders increased by 23.0% to RM2.12 billion, driven by continued strong loan and deposit growth, further improvement in asset quality and strong growth in fee-based income.

The Group’s net return on equity rose to 26.3% in 2007 compared to 21.9% in 2006, and earnings per share improved to 63.3 sen from 52.1 sen in 2006.

The Group’s gross loans increased by RM17.1 billion to stand at RM101.4 billion as at the end of 2007, representing a growth rate of 20.2% as compared to 8.8% for the banking industry in 2007. As a result, the Group’s domestic market share of loans increased to 14.4% as at the end of 2007 as compared to 13.2% as at the end of 2006.

The Group’s customer deposits rose by RM27.0 billion or 24.1% in 2007 to reach RM138.8 billion as at the end of 2007, with individual depositors accounting for 70% of the Group’s demand, savings and fixed deposits.

The Group’s asset quality improved further in 2007 and was evidenced by the deccrease in the Group’s gross non-performing loans (“NPL”) by RM174 million or 11.0% in 2007 despite the strong loan growth. The Group’s gross and net NPL ratios improved to 1.4% and 1.2% respectively as at the end of 2007 as compared to 1.9% and 1.6% respectively a year earlier.
The Group’s wholly-owned unit trust management subsidiary, Public Mutual, increased its net asset value of funds under management by 75% during the year to RM28.4 billion as at the end of 2007 and commanded a strong market share of 40.0% as at the end of 2007, up from 27.6% as at the beginning of 2006. Total unit trust sales also surged to a record high of RM13.1 billion in 2007, more than three times the total unit trust sales achieved in 2006 through the launch of 21 new funds in 2007, bringing the number of funds managed by Public Mutual to 55 funds as at the end of 2007.

The Group’s profit from its overseas operations recorded a 32% increase to RM436 million in 2007, with Public Financial Holdings Group in Hong Kong and Cambodian Public Bank in Cambodia being the main contributors, registering growth in pre-tax profit of 32% and 65% respectively. The Group’s commercial bank in Hong Kong, Public Bank (Hong Kong) Limited achieved strong loan and deposit growth of 51% and 44% respectively. Cambodian Public Bank also recorded impressive growth in loan and deposit of 130% and 59% respectively as a result of rapid expansion of its lending and deposit-taking activities.

The Group entered into a 10-year exclusive bancassurance distribution agreement with the ING Group to provide life insurance and health insurance products and investment-linked insurance products to the customers of the Group in Malaysia and in Hong Kong. This agreement came into effect on 1 January 2008 and the Group was paid a goodwill payment of EUR41.2 million, equivalent to approximately RM200 million by ING Group. This regional strategic alliance is expected to boost the Group’s fee-based commission income in the medium-to-longer-term.
The strong capital position of the Public Bank Group was reflected in its risk-weighted capital ratio of 13.6% as at the end of 2007 which was well above the statutory requirement of 8.0%.
Public Bank has a AAA rating from Rating Agency Malaysia (“RAM”) which is the highest rating given by RAM. Public Bank is one of the only two Malaysian banks with a single A rating by Standard & Poor’s and is assigned a Bank Financial Strength Rating of C from Moody’s Investors Service.

Tan Sri Dato’ Sri Dr. Teh Hong Piow

Chairman

Press Release 4 February 2008

Asia's best managed companies: Singapore

We publish the results of our annual poll to find Asia's top companies. Today, Singapore.

For our eighth annual poll of Asia's top companies we have collected votes from 167 investors and analysts across the region. The results are being published country by country over a two-week period and the final day will also reveal which companies are viewed to be the best managed in the region in eight key sectors.Here are the results for Singapore.

Best managed company Votes
1. Singapore Airlines 41
2. DBS 30
3. SingTel 23
4. OCBC 18
5. Keppel Land 18
6. CapitaLand 12
7. ST Engineering 11
8. CapitaMall Trust 9


Best corporate governance Votes
1. SingTel 44
2. Singapore Airlines 35
3. DBS 28
4. Keppel Land 19
5. CapitaMall Trust 16
6. Chartered Semiconductor 13
7. CapitaLand 6


Best investor relations Votes
1. SingTel 49
2. Singapore Airlines 20
3. UOB 19
4. Noble Group 16
4. DBS 15
6. Chartered Semiconductor 12
6. OCBC 12
8. Keppel Land 11
9. Mobile One 10
10. CapitaMall Trust 8


Most committed to a strong dividend policy Votes
1. SingTel 38
1. Mobile One 38
3. Starhub 19
4. ST Engineering 16
5. CapitaMall Trust 15
6. Singapore Airlines 12
7. DBS 10
7. Sembcorp Marine 10


Best mid-cap Votes
1. Hyflux 14


Best small-cap Votes
Not awarded


Best CFO Votes
1. Francis Heng (SingTel) 17
2. Oliver Lim (CapitaLand) 11

From Finance Asia 6 June 2008

Asia's best managed companies: Malaysia

We publish the results of our annual poll to find Asia's top companies. Today, Malaysia.

For our eighth annual poll of Asia's top companies we have collected votes from 167 investors and analysts across the region. The results will be published country by country over a two-week period and the final day will also reveal which companies are viewed to be the best managed in the region in eight key sectors.Here are the results for Malaysia.

Best managed company Votes
1. Public Bank 39
2. CIMB 24
3. IOI Corp 21
4. Genting 18
5. Digi 14
5. Maybank 14
7. Petronas Gas 11
8. SP Setia 10
9. BAT Malaysia 9


Best corporate governance Votes
1. Public Bank 46
2. CIMB 25
3. Digi 20
4. Maybank 16
5. BAT Malaysia 13
6. IOI Corp 12
7. Telekom Malaysia 10
8. Media Prima 8
9. MMC Corp 7


Best investor relations Votes
1. Public Bank 36
2. Digi 31
3. CIMB 26
4. Sime Darby 23
5. Maybank 13
6. Tanjong 10
7. Media Prima 8
7. Genting 8


Most committed to a strong dividend policy Votes
1. Public Bank 47
2. BAT Malaysia 36
3. Maybank 18
4. Tanjong 16
5. IOI Corp 15
6. Petronas Gas 5


Best mid-cap Votes
1. Media Prima 17
2. Air Asia 13


Best small-cap Votes
1. Masteel 13
2. Deleum 9


Best CFO Votes
1. Gerard Nathan (Tanjong) 17
2. Stefan Carlsson (Digi) 11

From Finance Asia 5 June 2008

Sime Darby

Sime Darby Reports 113% Increase In Pre-Tax Profit In Third Quarter

Press Release

Group’s pre-tax profit for the first three quarters hits RM3.8 billion

KUALA LUMPUR, 28 May 2008 – Sime Darby Berhad’s pre-tax profit surged 113% in the quarter ended 31 March 2008, pushing the group’s pre-tax profit for the first three quarters to RM3.8 billion.

For the first three quarters of the year, the Group's solid performance was mainly due to the strong showing of the Plantation Division. The Plantation Division registered an increase in operating profit of 148% to RM2.8 billion during the three quarters, driven by better production yield, merger synergies and continued strong CPO prices. The Motors Division maintained its turnaround momentum with operating profit of RM182 million, as compared to RM21 million last year.

However, the Property Division’s operating profit dropped by 22% to RM239 million. Given the uncertain outlook for the sector, the Group expects that the Property Division will enter a more challenging period for the rest of the financial year.

Sime Darby realized RM160 million in merger synergies in the plantation and property businesses against RM28 million targeted for FY2008. Under the merger exercise, the Group announced that it would be able to achieve post-merger synergies of RM400-500 million by FY09/10.

Commenting on the results, Dato’ Seri Ahmad Zubir Murshid, President & Group Chief Executive, said “I am particularly pleased with the results as this had been achieved under very tough global macroeconomic conditions. The performance is also testament to the company’s continued effort to deliver the synergies from the merger.”

He also paid tribute to the employees of Sime Darby for their hard work and dedication in ensuring that efforts to achieve the merger synergies remain on track.

Despite the increasingly challenging global macroeconomic outlook, the Group remains optimistic that the company’s global strength, diversity of markets and business portfolio makes it well-positioned to deliver consistent long-term performance.

For the Group, in the first three quarters ended 31 March 2008, revenue grew by 22% to RM24.9 billion while net profit after tax and minority interest rose by 42% to RM2.5 billion.

YTL Corporation

YTL Corp's Foreign Operations Boost Net Profit 32% to RM1.1 Billion (US$330 Million) for 3rd Quarter

Kuala Lumpur, 22 May 2008

YTL Corporation Berhad (“YTL Corp”) today announced net profit of RM1,074.8 million (US$330.7 mil, based on the prevailing exchange rate of US$1.00:RM3.25) for the 9 months ended 31 March 2008, an increase of RM261.0 million (US$80.3 mil) or 32.1% compared to the previous corresponding period ended 31 March 2007. Revenue grew by 10.4% to RM4,731.7 million (US$1,455.9 mil), compared to RM4,285.7 million (US$1,318.7 mil) during the same period last year.

Commenting on the results, YTL Group Managing Director Tan Sri Dato’ (Dr) Francis Yeoh Sock Ping said, “The Group’s utilities and cement businesses continue to drive growth, enabling us to achieve another strong set of results for the quarter. With existing global market conditions necessitating even more concerted and innovative efforts on our part to further improve operational efficiencies and control rising costs, the Group continues to derive better performance and results from these improved technical efficiencies, both in our Malaysian-based and international utilities and cement businesses”.

The Group’s listed utilities arm, YTL Power International Berhad (“YTL Power”), reported net profit of RM758.2 million (US$233.3 mil) for the 9 months ended 31 March 2008, a marginal increase over RM748.5 million (US$230.3 mil) for the same period last year, whilst revenue increased by RM201.5 million (US$62.0 mil) or 6.9% to RM3,102.0 million (US$954.5 mil). The increases were due to better performance in all business segments, including Wessex Water Limited, one of the most efficient water and sewerage providers in the UK, and P.T. Jawa Power, a 35%-owned associate company in Indonesia, the owner of a 1,220 MW power station in East Java.

Meanwhile, YTL Cement Berhad (“YTL Cement”), the Group’s listed cement division, achieved a 30.9% increase in net profit to RM157.9 million (US$48.6 mil) for the 9 months ended 31 March 2008, compared to RM120.6 million (US$37.1 mil) for the previous corresponding 9 months ended 31 March 2007. Revenue grew 21.4% to RM1,012.4 million (US$311.5 mil) this year, compared to RM833.8 million (US$256.6 mil) last year. The growth in revenue and profit arose mainly from higher demand for cement in the construction industry, improved operational efficiencies and better selling prices during the period.

On the property investment and development front, Starhill Real Estate Investment Trust recorded distributable income of RM60.8 million, reflecting a 14.0% increase over RM53.4 million last year, generated from an 11.2% increase in revenue to RM81.0 million for the period under review. YTL Land & Development Berhad, meanwhile, recorded a marginal increase in net profit to RM11.25 million for the 9 months ended 31 March 2008, on the back of a 184.5% increase in revenue to RM250.89 million and a 25.2% growth in profit before taxation to RM15.81 million. The increases were contributed mainly by new phases under development, namely The Centrio at Pantai Hillpark, as well as progress recognition for The Saffron, currently under construction in the Group’s Sentul urban regeneration project.

The Group’s technology incubator, YTL e-Solutions Berhad, reported net profit of RM3.07 million for the 9 months ended 31 March 2008, a decrease of 5.4% compared to the same period last year, due to higher operating expenses. Revenue, however, increased 28.7% to RM23.73 million for the period under review and profit before taxation grew 13.3% to RM5.64 million, arising from higher demand for the Group’s products and services, and consolidation of the results of newly acquired subsidiaries.

Shareholders Rewarded with Additional Interim Dividends
YTL Corp 15% Interim Dividend
Resultant yield of 4.0%
YTL Corp declared a 3rd interim dividend of 15% per share, less Malaysian income tax. The book closure date for the interim dividend is 10 June 2008, whilst the payment date is 24 June 2008. YTL Corp has already declared gross 1st and 2nd interim dividends of 15% each in respect of the financial year ending 30 June 2008, in addition to the 1-for-15 restricted offer for sale of YTL Power shares to YTL Corp shareholders in January this year. These distributions combined represent a yield of 4.0%, based on the prevailing share price of RM7.50 per share.

YTL Power 7.5% Tax-Exempt Interim Dividend
Resultant yield of 7.5%
YTL Power declared a 2nd interim dividend of 7.5% per share, exempt from Malaysian income tax. The book closure date for the interim dividend is 10 June 2008, whilst the payment date is 24 June 2008. YTL Power declared a tax-exempt 1st interim dividend of 7.5% last quarter, in addition to the 1-for-25 share dividend distribution completed in January 2008. These distributions combined represent a yield of 7.5%, based on the prevailing share price of RM2.15 per share.

YTL Cement 10% Interim Dividend
Resultant yield of 3.2%
YTL Cement declared a 2nd interim dividend of 10% per share, less Malaysian income tax. The book closure date for the interim dividend is 10 June 2008, whilst the payment date is 24 June 2008. YTL Cement declared a gross 1st interim dividend of 20% per share last quarter. These distributions combined represent a yield of 3.2%, based on the prevailing share price of RM4.70 per share.

IOI Corporation

Premium Unlikely Affected By Dato’ Yeo’s Departure

Besides a dip in crude oil price and hence CPO price yesterday, IOI Corp’s stock price was hit by news of Dato’ Yeo How’s resignation. Dato’ Yeo is the financial controller and executive director who helped to build IOI Corp to what it is today.

COMMENTS
Knee-jerk reaction not surprising. Being the financial mastermind who helped to map IOI Corp’s strategy, Dato’ Yeo’s departure will certainly cause some discomfort among investors as Dato’ Yeo is the face of IOI Corp whom investors are familiar with. Nevertheless, we are comforted by the fact that:

1. Dato’ Yeo is leaving to join a large unlisted plantation company to which he can add tremendous value.
2. There is no corporate governance issue in IOI Corp which led to Dato’ Yeo’s leaving the company.
3. There’s no issue with continuity. Dato’ Lee Yow Chor, Tan Sri Lee’s eldest son will likely take over the operations overseen by Dato’ Yeo, namely the Rotterdam operation. Dato’ Yeo’s able deputy Mr Kong Chee Koon will stay put and take over some of the job functions. Mr Kong is also a familiar face to investors and analysts.

Premium valuation will not be impacted. After the smoke clears, we believe IOI will continue to command premium valuation to its peers. We are of the opinion that IOI’s premium valuation comes from:

1. Strong corporate governance, which will unlikely deteriorate just because of Dato’ Yeo’s departure.
2. More importantly, we think it is IOI’s value chain that is the key source of its premium valuation as the value chain IOI has built is unsurpassed by any other plantation company bar Wilmar International. This is why Wilmar commands the highest PE valuation (25.5x CY08 PE)in the oil palm plantation space. While we are impressed by Mr Kuok Khoon Hong and his team, Wilmar has really been listed too short a time for anybody to say much about its corporate governance. Hence Wilmar’s premium really must come from its value chain. If the value chain that Dato’ Yeo helped to build over the past 25 years (and which Tan Sri Lee spent his lifetime building) can be broken by Dato’ Yeo’s departure, that would be saying IOI has not built any sustainable competitive advantage. This we think is the furthest from the truth.

Dato’ Yeo’s departure paves way for mega merger? Dato’ Yeo will be joining an unlisted Indonesian plantation company, to be based in Singapore. According to our sources, there are 2 Indonesian plantation companies with offices in Singapore namely Musim Mas with about 100k ha planted area and Raja Garuda Mas with more than 200k ha. We believe Dato’ Yeo will be joining the latter with plans to take it public. This could pave the way for a mega merger between IOI Corp and the large Indonesian plantation. We wonder what company would Tan Sri Lee rather acquire than one which is run by his trusted right hand man? Also, of the large Malaysian plantation companies, IOI is the slowest in making inroads into Indonesia. While IOI already has a toehold in Indonesia, planted area is minimal. A merger will give IOI a springboard into Indonesia and immediately increase IOI’s planted hectarage to 350k ha, which is the size of Golden Agri Resources (Buy, TP SG$1.37).

Buy into weakness. IOI currently trades at 19x CY08 earnings, which is not expensive for a worldclass company. Our target price of RM8.75 is based on 23.8x CY08 EPS. We suggest taking the opportunity to buy into the stock price weakness, which we think will be temporary.

From: OSK Research 29 May 2008

KNM Challenge Limits

Borsig To Come In 2H

KNM’s 1Q08 earnings came in within expectations. Similar to last year, 1Q profits were typically weaker due to festive holidays. Operating margin improved to 19.5% vs 17.6% in the same period last year, indicating more higher-end process equipments were delivered. In 2H08, Borsig will start contributing to earnings and it is estimated that Borsig will bring in an additional RM260m net profit to the company on a full year basis. The acquisition is expected to be completed in the 1st week of June, with payment to be settled by a €450m bridging facility provided by Maybank. The subsequent RM1.1bn fund-raising exercise will be completed in mid- June hence there should be minimal risk for the deal. Our earnings estimates for FY08 and FY09 are based on the assumption of zero integration benefits. Synergies will likely come in only from 2010. Maintain Buy and RM8.40 fair value.

Earnings on track.

KNM’s 1Q08 net profits were inline with our estimates. Turnover and net earnings were 26% and 41% better than the same period last year. Besides the boost in profits from Borsig, the new capacity from recent acquisitions such as the Edmonton plant in Canada and Ellimetal in Belgium will start kicking in from 2H this year. Operating margins imrpoved. The continuous effort to fabricate more higher-value added process equipments has led operating margin to improve by 2%pt from 1Q07.

Status of Borsig.

Unlike the recent cancellation of the RM50m acquisition of Pisces, given the size of Borsig which worth RM1.67bn, we think this acquisition should have minimal risk. The €450m bridging facility provided by Maybank will be used to settle the payment which will be due in the 1st week of June. What is left is the US$350m exchangeable bond, which we believe may be denominated in Ringgit given its currency strength and domestic interest rate environment. Conversion ratio for the exchangeable bond could range from 1.3–1.4x.

Still a Buy.

We keep our earnings forecast unchanged. KNM could also potentially benefit from the tax re-investment allowance scheme in Malaysia. As such, Borsig’s typical 20% net margin generated in Germany previously can well be replicated. However, we have not factored in the lower tax rate, pending management’s guidance if the application is successful. Our FY09 fair value is on an ex-right basis, taken into account the dilution effects from rights and bonus issue as well as the exchangeable bond.

From: OSK Research 28 May 2008

Company Profile:

KNM Group Berhad was incorporated in Malaysia as a private limited company under the Companies Act, 1965 on 22nd July 2000 and was subsequently converted into a public limited company on 12th September 2000.KNM Group Berhad is principally an investment holding company while its subsidiary and associated companies are principally involved in integrated systems design and engineering, international procurement, manufacture of process equipments for the oil, gas, petrochemical and minerals processing industries, testing capabilities, site assembly, commissioning and maintenance.

IOI Corporation

A Good Quarter But Not Its Best Yet

IOI Corp’s y-t-d earnings were generally in line. However, the best is yet to come as the June quarter will likely see earnings surge on higher realised CPO price and higher FFB production. Our recently raised earnings forecast is under review again given the stronger than expected manufacturing earnings. Though we have stripped off currency translation gains from core earnings, such gains reflect the financial savvy and conservatism of the company in using USD borrowings to hedge its overseas assets. IOI is still one of the best run companies around and will likely be the first mover again when sector sentiment improves. Maintain Buy.

Results in line. IOI Corp’s annualized 9mthFY08 core net profit were within our expectation as well as consensus estimate. Reported net profit of RM1,634.3m appears to be ahead of market expectation but after stripping out currency translation gains from US$ borrowings and disposal of non-core assets amounting to RM243.5m, IOI’s results were generally in line. On q-o-q basis, core earnings were up by 8.0%. Plantation earnings were 7.5% lower as the higher CPO prices were not enough to offset the 23% drop in FFB output. Lower plantation earnings were more than offset by stronger resource-based manufacturing as well as property segment earnings. Manufacturing segment recorded RM457.4m 9 months EBIT, making up 95% of our full year forecast of RM479.7m. This is likely due to stronger than expected contribution from Pan Century refinery & oleochemical complex acquired last year.

Average CPO price. IOI realised average CPO price of RM2,705/t for the 9 months period against RM2,923/t we have imputed into our earnings model, taking into consideration Sabah discount and sales tax. We estimate that for the March quarter alone, IOI realised CPO selling price of RM3,050/t compared to MPOB average for West Malaysia of RM3,472 for March quarter and RM2,901 for the December quarter. We deem the realised price as fair considering its rolling forward sale.

A stronger 4Q ahead. We believe IOI will report a sequentially stronger June quarter as its March quarter has not fully reflected the record CPO price in the March quarter due to its forward sale. Moreover, the June quarter production is seasonally higher. We have forecasted RM2.2bn plantation EBIT for the full year against RM1.3bn achieved so far. While maintaining our plantation segment forecast, we are reviewing the manufacturing division earnings forecast given its stellar performance.

From OSK Research 16 May 2008

熊市炒股

目前，我所留意到熊市里买股首选IOICorp与YTL，
以在反弹之时，能套现获利。
基于以下因素:

1)在综指里，IOICorp的股票流通量相当高；
管理层积极从市场买回股票；
棕油营利高与稳定；
更重要的是股价在固定的范围内波动。

此外，要留意大豆油的表现，以选择在适当的时候进场。
如果棕油价保持在每公吨RM3500以上，
那么，IOICorp在于RM7.10或以下，
可以考虑买进。
这股我经常进进出出，有小赚一些。

2)在综指里，YTL的股票流通量不比IOICorp高，但股价波动不大，
价格经常在于RM7.50之间；
管理层积极从市场买回股票；
其主要营利来自YTLPower与YTLCement的贡献，业务稳定。
更重要的是股价在固定的范围内波动。

若股价在于RM7.40以下，可以买进试一试，以在RM7.50时套利。


好了，祝大家投资愉快，获利也快!



照片:游泳健儿

Higher steel prices may erode KNM’s margins

THE rising prices of steel has raised concerns about KNM Group Bhd ‘s potential earnings, in anticipation that the process equipment manufacturer’s margins may be eroded if it fails to lock in the price of the material it buys from steel millers.

In a research note, Aseambankers Research said steel millers might be reluctant to lock in forward sales of their products in the future to ride on the surging prices for the material. Due to KNM’s scale of operations, which requires substantial amount of steel, it currently secures its steel supply directly from regional steel millers at a pre-agreed price.

“Nevertheless, we think the unique relationship (between KNM and steel millers) may be short-lived, as millers may soon be reluctant to lock in forward sales in light of soaring steel prices.

As such, KNM’s margins may see some weakness in the coming quarters,” said Aseambankers which kept its buy call for KNM with a target price of RM6.50.

Meanwhile, AmResearch Sdn Bhd said that KNM’s earnings in the first quarter ended March 2008 (1QFY08) came in within the research firm’s estimates, accounting for 13% of its financial year 2008 (FY08) forecast. AmResearch expects KNM’s second half earnings to account for 70% of full-year earnings.

This is due to contributions from its three foreign subsidiaries — Borsig, Ellimetal, and HZM Companies. KNM’s earnings growth will also be underpinned by 10 additional fabrication facilities this year.

These include KNM’s two new plants in Canada and Saudi Arabia, Ellimetal’s two facilities in Belgium, HZM’s two entities in Brazil, and Borsig’s four plants in Germany.

“As utilisation rates for all its plants are close to optimum, KNM will give preference to high-value and high-margin projects ahead.

“This will lift KNM’s average selling price per tonne of process equipment going forward,” said AmResearch, which reiterated its buy call on KNM with a target price of RM8.20.

AmResearch’s 18 times price-to-earnings ratio (PER) valuation for KNM is higher than the 12 times average derived from locally listed peers. But the research firm said KNM’s higher valuation is justified due to, among others, its above average return on equity, and operating margins, besides its strong earnings visibility.

Aseambankers, meanwhile, said it did not expect KNM shares to outperform as the stock had already recovered by 42% from its recent low.

KNM saw its net profit jumped 41.3% to RM54.13 million in the first quarter ended March 2008, from RM38.32 million a year earlier, helped by a larger production capacity, and more jobs in hand. Revenue rose 26.3% to RM331.22 million from RM262.22 million.

“The board is confident that the group’s results for FY08 will exceed the financial performance of the group for FY07,” KNM said in its quarterly filings to Bursa Malaysia.

In February this year, KNM, which counts oil and gas firms, and miners as clients, had proposed to raise up to RM2.2 billion from a rights and bond issue to grow organically and acquire rivals. Subsequent to the rights issue, it also announced a two-for-one bonus issue. These exercises would expand its share capital base and lower its gearing level.


The Edge Daily 30 May 2008

Aseambankers bullish on WCT

Aseambankers favours WCT for its sizeable RM5.2 billion order book, backed by good project management and further exposure to the Middle East


RESEARCH firm Aseambankers Malaysia Bhd has maintained a "buy" call on WCT Engineering Bhd and estimates that the construction and property development group's share price can go up to RM4.15.

In a research note to investors yesterday, Aseambankers head of research Vincent Khoo said his target price is based on 11 times of WCT's share price to forecast earnings for next year.

WCT has so far completed the bulk of work at the Kota Kinabalu International Airport and the UiTM Campus, leaving a few building jobs in Putrajaya exposed to rising steel and cement prices.

However, WCT is expected to be able to claim for higher costs from the government.

"In the Middle East, however, rising building material costs are not a major concern as most of the materials have been procured," Khoo said.

"We favour WCT for its sizeable RM5.2 billion order book, backed by good project management and further exposure to the Middle East," he added.

Khoo believes that WCT is eyeing major infrastructure jobs in Bahrain, Dubai, Abu Dhabi and Qatar on a selective basis.

While WCT's order book should still sustain growth until next year, he anticipates that WCT is capable of securing up to RM1 billion worth of new jobs in the second half of this year.

"Over the near term, WCT's construction activities should offset the slowdown in property, which has seen revenue decline in this year's first quarter results following weaker buyer sentiment," he said.

Khoo also expects WCT's property project in Vietnam to start contributing to the group's bottom line in 2010.



From Business Times Online 20 May 2008

IJM

目前，IJM股价开始回调，要多加留意。同时，IJM也会在股价偏低时，从市场回收股票，价格RM5.50以下都应该不会放过。 不过，最近建筑股的表现不大理想，主要是钢铁料涨价，洋灰价自由浮动或起价，还有气油在8月又要起价，影响赚幅。

另外，IJM吸引我买进的原因如下：

IJM Announcement dated 23 May 2008

ORDINARY RESOLUTION 4: PROPOSED TAX EXEMPT DIVIDEND IN-SPECIE “THAT approval be and is hereby given for the Company to distribute up to 88,469,272 warrants of RB Land Holdings Berhad (“RB Land”) (to be subscribed by the Company pursuant to the proposed renounceable rights issue of shares with warrants by RB Land), on the basis of one (1) RB Land warrant for every ten (10) ordinary shares held by the shareholders on an entitlement date to be determined by the Directors (“Proposed Tax Exempt Dividend In-Specie”) AND THAT the Directors be and are authorised to deal with any fractional entitlements and to do such acts and things to give full effect to the Proposed Tax Exempt Dividend In-Specie.”

SPECIAL RESOLUTION: PROPOSED CAPITAL REPAYMENT OF RM0.50 CASH “THAT, subject to the approval of the High Court of Malaya for the Proposed Capital Reduction (as defined below), approval be and is hereby given for the Company:- (a) to capitalise a sum of up to RM442,328,363 from the balance standing in the share premium account of the Company by way of a bonus issue (“Proposed Bonus Issue”) of up to 442,328,363 new ordinary shares of RM1 each (“Bonus Shares”) PROVIDED THAT no Bonus Share shall be credited into the securities accounts of the shareholders and that the Bonus Shares shall be dealt with in accordance with the terms of the Proposed Capital Repayment (as defined below); and(b) immediately, upon the allotment of the Bonus Shares, to effect a capital reduction pursuant to and in accordance with Section 64 of the Companies Act 1965 by way of the reduction of up to RM442,328,363 in the issued and paid up share capital of the Company by the cancellation of all the Bonus Shares (“Proposed Capital Reduction”) AND THAT the credit arising from the Proposed Capital Reduction shall be applied in the cash payment of up to RM442,328,363 to the shareholders on the basis of RM0.50 for every share held by the shareholders on an entitlement date to be determined by the Directors (“Proposed Capital Repayment”) AND THAT the Directors be and are authorised to deal with any fractional entitlements and to do such acts and things to give full effect to the Proposed Capital Reduction and the Proposed Capital Repayment (with full power to assent to any condition, modification, variation and/or amendment in any manner as may be required by the High Court of Malaya).”

照片:漂亮的美眉