In view of the Government will vigorously promote the construction in 2010, as well as stimulate the economy and supporting the various works, therefore, analysts believe that this will certainly be able to iron and steel sphere into the road to recovery, two pairs in the field rating from "neutral" was revised to "short-term buy."
CIMB Investment Research analyst pointed out that in the past few months, can be signs, such as economic growth, construction and manufacturing recovery in steel demand to see a gradual return to warm message.
He said: "The Government first met in November 2008 and March 2009 to launch two worth 67 billion ringgit package to stimulate the economy, while in the past few months about the construction activities to stimulate the economy and supporting the news are very good, therefore, we expect the construction sector will grow 2.6% this year, next year's growth will increase to 4.0%. "
He revealed that, in addition to the construction sector, the manufacturing index also showed that the manufacturing sector in the past 5 months to obtain a monthly rise.
He said: "In addition to the region beyond the package to stimulate our economy, our country there are up to 76 billion ringgit of the large-scale projects yet to be conducted, which the steel sphere is a good omen, should be able to make demand for long steel products to re - the rise. "
Long steel products began back in April Young, followed by flat steel products are also in July to improve, so analysts believe that China's serious economic contraction has bottomed, and is expected to move towards stability and recovery.
Malaysian economy bottomed out
He said: "Since the fall of steel prices in Late last year, after, and now has been in a rising trend; exports have rebounded, and in most of the month, its performance was beyond the 2007 and 2008 levels."
In addition, analysts pointed out that despite a long steel manufacturers in the second quarter of this year, been successful in reducing losses, but they are still in the first half of this year, make ends meet dilemma.
"Therefore, we believe that most of the iron and steel manufacturers should be using their high-priced scrap metal inventory can be seen from the iron and steel plant in the fourth quarter of 2008, a large number of write-down of inventory reflected.
"From this trend, coupled with the steel demand is rising, export orders for more, as well as steel prices rise, steel companies in the second half of this year's performance should be better, and more iron and steel factory owners to switch from the third quarter of losses for the surplus. "
Analysts believe that the steel industry was the catalyst for re-evaluation include: to stimulate economic package pushed up demand for steel, start large-scale construction projects, as well as the 2009 changes in the second half of the potential benefits.
Saturday, October 31, 2009
Stimulus package are good prospects
Stimulus package are good prospects for South-East Asia continued for Yue resources, promote the good image
To stimulate the economy because of the prospect of supporting good, especially in the Southeast Asian countries, so Yue resources (AnnJoo, 6556, Bhd) continue to be analysts sing praises, was "short-term buy" rating.
Analysts pointed out that the company plans to blast the first half of 2010, will be completed in addition to the company to provide higher-quality steel, the can also reduce production costs and enhance profit margins.
"While we maintain our earnings forecasts and to assess, but we will at a reasonable price, from 3.09 ringgit per share, revised up to 3.50 ringgit, because we will be the benefits of these factors pushed to 2010 by year-end."
Preferred shares of Building Materials
The company's potential on the revised catalysts include: a high utilization rate and exports, as well as the ongoing blast furnace plans are designed to improve the company's earnings power.
As the company has the lowest PE ratio in 2010, and the highest three-year earnings per share 18% compound annual growth rate, therefore, continues to be the building materials in the field of securities firms are the preferred shares.
To stimulate the economy because of the prospect of supporting good, especially in the Southeast Asian countries, so Yue resources (AnnJoo, 6556, Bhd) continue to be analysts sing praises, was "short-term buy" rating.
Analysts pointed out that the company plans to blast the first half of 2010, will be completed in addition to the company to provide higher-quality steel, the can also reduce production costs and enhance profit margins.
"While we maintain our earnings forecasts and to assess, but we will at a reasonable price, from 3.09 ringgit per share, revised up to 3.50 ringgit, because we will be the benefits of these factors pushed to 2010 by year-end."
Preferred shares of Building Materials
The company's potential on the revised catalysts include: a high utilization rate and exports, as well as the ongoing blast furnace plans are designed to improve the company's earnings power.
As the company has the lowest PE ratio in 2010, and the highest three-year earnings per share 18% compound annual growth rate, therefore, continues to be the building materials in the field of securities firms are the preferred shares.
Thursday, October 8, 2009
A H1N1 in Genting Malaysia flu outbreak visitors expected second-quarter earnings fall
As the economic crisis, coupled with A (H1N1) influenza pandemic to reduce the tourists, analysts expect Genting, Malaysia (GENM, 4715, Bhd) as the second quarter of 2009, only sales and revenue decline will occur by year trend.
However, a defense based on the company's earnings and cash-rich, analysts raised the target price to 3.25 ringgit.
Malaysia Investment Bank pointed out that they believe that as tourists in particular, to reduce the number of visitors from Singapore, the company ended the second quarter of 2009, the turnover will be down to single-digit annual growth; the same time, its revenue is expected by year dropped sharply since the second quarter of 2008 net profit luck factor in the improvement of the contrast too high to make this year's level.
However, a defense based on the company's earnings and cash-rich, analysts raised the target price to 3.25 ringgit.
Malaysia Investment Bank pointed out that they believe that as tourists in particular, to reduce the number of visitors from Singapore, the company ended the second quarter of 2009, the turnover will be down to single-digit annual growth; the same time, its revenue is expected by year dropped sharply since the second quarter of 2008 net profit luck factor in the improvement of the contrast too high to make this year's level.
Race Amin: the number of financial institutions willing to finance
Recently proposed acquisition of all domestic charges Avenue Asas Serba Sdn Bhd said it has several financial institutions to reveal to them the wishes of all fees and charges for the acquisition of the domestic part of the Avenue of the plan to provide financing.
According to "Malaysia Reserve" reported that, Asas Serba Chairman Datuk Syed Amin said they will market a variety of financing models to raise the remaining funds needed acquisitions.
He revealed: "In the Government's proposals have been submitted to the book, we have also included in the upcoming financing used to raise funds."
Is also the Kuala Lumpur Malay Chamber of Commerce of the race Amin pointed out that the company will ensure that the acquisition of the company's borrowing costs Avenue, low enough to allow the acquisition is completed, road charges will remain low.
In any case, he did not say, as at present, the company has several financial institutions with which to conduct negotiations for the financing of evolution.
Asas Serba issued a statement last week that the company has this year, May 5 to submit proposals to the Government to seek the full support of the Government's acquisition of all of our road the company's management and operating rights, including their debt and equity.
The company also plans to integrate and streamline all franchises Avenue, and later reduce the road toll by 20%, as well as the right to operate in the remaining period of the maintenance of rates.
According to "Malaysia Reserve" reported that, Asas Serba Chairman Datuk Syed Amin said they will market a variety of financing models to raise the remaining funds needed acquisitions.
He revealed: "In the Government's proposals have been submitted to the book, we have also included in the upcoming financing used to raise funds."
Is also the Kuala Lumpur Malay Chamber of Commerce of the race Amin pointed out that the company will ensure that the acquisition of the company's borrowing costs Avenue, low enough to allow the acquisition is completed, road charges will remain low.
In any case, he did not say, as at present, the company has several financial institutions with which to conduct negotiations for the financing of evolution.
Asas Serba issued a statement last week that the company has this year, May 5 to submit proposals to the Government to seek the full support of the Government's acquisition of all of our road the company's management and operating rights, including their debt and equity.
The company also plans to integrate and streamline all franchises Avenue, and later reduce the road toll by 20%, as well as the right to operate in the remaining period of the maintenance of rates.
Affect the reputation of the cost of the huge North-South Road will not be acquired or privatized
In view of the huge costs involved, analysts believe that North-South Road (PLUS, 5052, Bhd) has been acquired or privatization plan is to not happen at the same time, this will also undermine the prestige of Malaysian toll road, for closed Fee Avenue company.
At the same time, private companies can not buy the country's road company, because just the North-South Road, (PLUS, 5052, Bhd) in market capitalization over 20 billion ringgit, while the rest of the road bonds issued by companies more than 26 billion ringgit .
The media reported that Asas Serba private limited plans to buy a domestic 22 Avenue, CIMB-GK Research analyst expressed a negative surprise, and pointed out that in view of the acquisition of this into a huge, financing is the most important obstacle to the transaction.
Analysts said that, assuming that private companies interested in acquiring the North-South Road, the acquirer would have to face a huge cost, simply on the basis of the market value of the North-South Road, more than 10 billion ringgit, coupled with the acquisition of its road, worth over 20 billion ringgit.
In addition, private companies acquired 22 Avenue franchise is also unlikely, because the buyers need to take into account the issue of bonds (worth over 26 billion ringgit), which will increase its acquisition costs.
As for the plans to the state of North-South Road, the analysts pointed out that this initiative will be the first to block the privatization of toll road companies.
However, analysts said that in this case, the government nationalized the nation's largest toll road franchise, not to be bullish investors or bond holders, and this move will affect the Malaysian toll road franchise, reputation.
However, analysts pointed out that, whether private companies or government acquisition of the North-South Road, will cause instability of the stock options, as during the acquisition negotiations often take a longer time, so the maintenance of the North-South Road, the "neutral" rating, target price of 3.55 ringgit.
At the same time, private companies can not buy the country's road company, because just the North-South Road, (PLUS, 5052, Bhd) in market capitalization over 20 billion ringgit, while the rest of the road bonds issued by companies more than 26 billion ringgit .
The media reported that Asas Serba private limited plans to buy a domestic 22 Avenue, CIMB-GK Research analyst expressed a negative surprise, and pointed out that in view of the acquisition of this into a huge, financing is the most important obstacle to the transaction.
Analysts said that, assuming that private companies interested in acquiring the North-South Road, the acquirer would have to face a huge cost, simply on the basis of the market value of the North-South Road, more than 10 billion ringgit, coupled with the acquisition of its road, worth over 20 billion ringgit.
In addition, private companies acquired 22 Avenue franchise is also unlikely, because the buyers need to take into account the issue of bonds (worth over 26 billion ringgit), which will increase its acquisition costs.
As for the plans to the state of North-South Road, the analysts pointed out that this initiative will be the first to block the privatization of toll road companies.
However, analysts said that in this case, the government nationalized the nation's largest toll road franchise, not to be bullish investors or bond holders, and this move will affect the Malaysian toll road franchise, reputation.
However, analysts pointed out that, whether private companies or government acquisition of the North-South Road, will cause instability of the stock options, as during the acquisition negotiations often take a longer time, so the maintenance of the North-South Road, the "neutral" rating, target price of 3.55 ringgit.
Wednesday, October 7, 2009
SMEs in corporate taxes should be lowered to 18%
Malaysian Chinese Business Association of SME survey team leader Kongling Long said that in order to reduce the burden on small and medium enterprises, he had the Ministry of Finance suggested that corporate tax for small and medium enterprises, the original and some 20% to 17% to 18%.
Kongling Long said he attended the recent 2010 Budget, the ad hoc group (Focus Group) talks, he put forward these proposals.
"I also suggested that the taxable profits of small and medium enterprises from the current 50 million ringgit, an increase to 100 million ringgit."
"Of course, I understand that at present can not be transferred to corporate taxes are too low, due to our introduction of consumption tax is now not yet (GST), the Government has no other source of revenue."
At the same time, he believed that the coming Budget, the Government is likely to cut corporate taxes, but the rate will not be significant.
"Since the past three years, the annual corporate tax reduced by 1% to 25% after the current year is a key year. The Government's next how to adjust the corporate tax, as well as the consumption tax when it will launch, are deeply concerned about."
He estimated that in 2010 the Budget, the Government will be the overall corporate tax and corporate tax for small and medium enterprises, respectively, cut 1% and 2%.
Income tax exemption amount should be increased to 10002
As for the personal income tax, he said: "The personal income tax and corporate tax adjustment is appropriate. If the reduction in corporate taxes, personal income tax should be reduced by about 1%."
Kong Linglong suggested that since all things prices, personal income tax exemption amount must also be from the current 8,000 ringgit, up to 10000 to 10002 ringgit ringgit. "Meanwhile, the taxable group (taxable bracket) must also be raised, so that low-income earners have a higher spending power, and thus help promote the country's economy."
Kongling Long said he attended the recent 2010 Budget, the ad hoc group (Focus Group) talks, he put forward these proposals.
"I also suggested that the taxable profits of small and medium enterprises from the current 50 million ringgit, an increase to 100 million ringgit."
"Of course, I understand that at present can not be transferred to corporate taxes are too low, due to our introduction of consumption tax is now not yet (GST), the Government has no other source of revenue."
At the same time, he believed that the coming Budget, the Government is likely to cut corporate taxes, but the rate will not be significant.
"Since the past three years, the annual corporate tax reduced by 1% to 25% after the current year is a key year. The Government's next how to adjust the corporate tax, as well as the consumption tax when it will launch, are deeply concerned about."
He estimated that in 2010 the Budget, the Government will be the overall corporate tax and corporate tax for small and medium enterprises, respectively, cut 1% and 2%.
Income tax exemption amount should be increased to 10002
As for the personal income tax, he said: "The personal income tax and corporate tax adjustment is appropriate. If the reduction in corporate taxes, personal income tax should be reduced by about 1%."
Kong Linglong suggested that since all things prices, personal income tax exemption amount must also be from the current 8,000 ringgit, up to 10000 to 10002 ringgit ringgit. "Meanwhile, the taxable group (taxable bracket) must also be raised, so that low-income earners have a higher spending power, and thus help promote the country's economy."
Budget does not introduce a new consumption tax
Asked whether the Government will be launched in the new Budget, excise duty, Kongling Long responded: "No, because the national economy is still below par, all things have prices."
He explained that wish to implement the consumption tax, the Government has at least 18 months time to prepare and enable all walks of life to adapt.
"For example, government agencies, especially the customs bureau's computer system needs to be upgraded, and all enterprises also need to replace the accounting computer systems, especially in taxation and tax-related mechanisms."
However, he believes that in the new Budget, the Government may announce when the introduction of consumption tax.
He explained that wish to implement the consumption tax, the Government has at least 18 months time to prepare and enable all walks of life to adapt.
"For example, government agencies, especially the customs bureau's computer system needs to be upgraded, and all enterprises also need to replace the accounting computer systems, especially in taxation and tax-related mechanisms."
However, he believes that in the new Budget, the Government may announce when the introduction of consumption tax.
Expansion of service tax to increase revenue
According to "The Edge" today quoted an informed source disclosed that the Government can not be declared in the October launch of the 2010 Budget, the consumption tax, but it may expand the service tax of 5% of the tax base. If this is true, whether they are a prelude to the implementation of consumption tax?
In this regard, Tsai Chao-source that, if expansion of 5% service tax, the scope of taxation, it is only to enhance government revenue.
"In simple terms, consumption tax, service tax and sales tax is a combination. Therefore, the consumption tax and service tax, internal mechanisms are different. In the absence of a consumption tax case, the expansion of service tax, the scope of taxation is to raise tax revenue to reduce the deficit, one of the way. "
He added that the government expand the tax base of the occasion, they have to ensure that civilians were not affected, that is, to be taxed more skewed towards the high income groups.
In this regard, Tsai Chao-source that, if expansion of 5% service tax, the scope of taxation, it is only to enhance government revenue.
"In simple terms, consumption tax, service tax and sales tax is a combination. Therefore, the consumption tax and service tax, internal mechanisms are different. In the absence of a consumption tax case, the expansion of service tax, the scope of taxation is to raise tax revenue to reduce the deficit, one of the way. "
He added that the government expand the tax base of the occasion, they have to ensure that civilians were not affected, that is, to be taxed more skewed towards the high income groups.
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