Coastal

Market Watch

Recent Financial Results

Announcement Date		Financial Yr. End		Qtr	Period End		Revenue RM '000		Profit/Lost RM'000		EPS		Amended
24-Nov-11		31-Dec-11		3	30-Sep-11		110,211		36,657		7.59		-
23-Aug-11		31-Dec-11		2	30-Jun-11		233,849		46,611		12.86		-
27-May-11		31-Dec-11		1	31-Mar-11		155,830		56,092		15.48		-
23-Feb-11		31-Dec-10		4	31-Dec-10		203,403		55,663		15.36		-

ttm-EPS 51.29 sen
DPS 9.7 sen
Price $ 1.92
Trailing PE 3.74x
DY 5%

Share Price Performance

	High Low Prices 1 Month 2.040   (15-Nov-11) 1.770   (10-Nov-11) Prices 3 Months 2.130   (07-Sep-11) 1.620   (26-Sep-11) Prices 12 Months 3.820   (25-Apr-11) 1.620   (26-Sep-11) Volume 12 Months 65,994   (05-Apr-11) 330   (01-Dec-10)

Selected Bursa counters 2 (COASTAL, DLady, GENM, Latexx, MBB, UMW)

Smoothing sailing for Coastal

Posted on April 9, 2011, Saturday

GIGANTIC: One of Coastal’s offshore landing craft. The company was keen in venturing into new 
areas such as fabrication, repair and maintenance to enhance shareholder value.

KUCHING: Coastal Contracts Bhd (Coastal) was recently listed as one of the top five small cap stocks for 2011 in OSK Research Sdn Bhd’s (OSK Research) Top 50 Small Cap Jewels book.

According to the research firm, Coastal was in ongoing talks with several undisclosed international industry players in relation to setting up joint ventures or strategic stakes in the company.

Coastal which deals primarily in ship building and vessel chartering in the oil and gas industry was keen in venturing into new areas of the industry such as fabrication, repair and maintenance to enhance shareholder value.

Despite Coastal’s impressive share price surge of 61 per cent since January, the analyst believed there was further upside to the stock as the current price was still attractive at a price earnings ratio (PER) of five to six times compared with the oils and gas sector‘s PER of 12 times to 14 times.

In addition, if the company was able to move up the value chain and venture into the fabrication business, investors should be comparing Coastal with its listed peers Kencana Petroleum Bhd and MMHE Sdn Bhd, both of which were trading at a PER of 21 to 27 times, noted OSK Research.

Although Coastal would be the ‘new kid on the block’, OSK Research believed that valuing the company at a PER of eight times was fair, as this comprised only about 30 per cent of its two bigger peers’ valuation and yet provided a 40 per cent upside from the current share price.

Now that Coastal had gained visibility among investors, its share price should trade higher than the current five to six times PER valuation.

The company was believed to have the makings of a merger and acquisition target because the focus was shifted on a potential new business to be injected into the company rather than on its core shipbuilding business.

Based on a PER of eight times for the financial year 2011 earnings per share, the target price for the company was pegged at RM4.85 per share, a boost from the last traded price of RM3.47 per share.

 http://www.theborneopost.com/?p=117349

Coastal Contracts 4Q net profit marginally stronger

Coastal Contracts 4Q net profit marginally stronger

Written by Financial Daily
Thursday, 24 February 2011 11:57


KUALA LUMPUR: Coastal Contracts Bhd’s net profit for 4QFY10 ended Dec 31 rose 3% to RM55.66 million from RM54.03 million a year ago, underpinned mainly by the delivery of higher end vessels.

In a filing with Bursa Malaysia yesterday, the group said revenue climbed 35% to RM203.4 million from RM150.9 million previously, while posting basic earnings per share of 15.36 sen versus 14.97 sen for the previous corresponding period. No interim dividend was declared for 4Q. Costal’s net assets per share stood at RM1.66.

For FY10 ended Dec 31, the group’s net profit surged 24% to RM200.87 million from RM162.44 million in FY09 on the back of improved revenue of RM675.25 million versus RM466.05 million in FY09.

On its prospects, Coastal expects a “reasonably satisfactory” financial performance for 2011 backed by the strong revenue visibility of the shipbuilding division’s vessel sales order book.

Shares in Coastal yesterday added 11 sen to close at RM2.71 with turnover of 706,100 units.


This article appeared in The Edge Financial Daily, February 24, 2011.

Coastal Contracts secures sales of RM268m for 12 vessels

Coastal Contracts secures sales of RM268m for 12 vessels
Written by Joseph Chin of theedgemalaysia.com
Wednesday, 09 February 2011 18:57


KUALA LUMPUR: COASTAL CONTRACTS BHD [] said its units have secured contracts for the sale of 12 vessels for an aggregate value of RM268 million, increasing its total sales to RM760 million up to 2012.

It said on Wednesday, Feb 9 its units Coastal Offshore (Labuan) Pte Ltd, Pleasant Engineering Sdn Bhd and Thaumas Marine Ltd had secured contracts for the sale of seven offshore support vessels (OSV), three tugboats and two oil barges for an aggregate value of approximately RM268 million.

Coastal contacts executive chairman Ng Chin Heng said these latest contracts would be the largest vessel sale orders for Coastal Group since December 2009 and would significantly replenish its vessel sales order book.

“Including the new contracts, Coastal Group now has about RM760 million worth of vessel sales orders awaiting delivery to customers up to 2012,” the company said.

Coastal Contracts said the revenue stream from the latest contracts were expected to contribute positively to the earnings per share and net assets per share of group for the financial years ending Dec 31, 2011 and 2012.

The company said of the seven OSV sales, six units were purchased by Tidewater Group -- the world’s largest and most experienced provider of marine support services for the offshore energy industry.

It added Tidewater, which is listed on the New York Stock Exchange, owns 384 vessels, and is the world’s largest fleet of vessels serving the global offshore energy industry.

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Coastal Group vessel sales of RM268m
Published: 2011/02/09


COASTAL Contracts Bhd's three units have collectively secured contracts for the sale of seven offshore support vessels, three tugboats and two oil barges worth RM268 million.

Including the new contracts, Coastal Group now has about RM760 million worth of vessel sales orders awaiting delivery to customers up to 2012, it said.

The revenue stream from the latest contracts is expected to contribute positively to the earnings per share and net assets per share of Coastal Group for the financial years ending Dec 31, 2011 and 2012, it said in a statement.

The wholly-owned subsidiaries that secured the new contract are Coastal Offshore (Labuan) Pte Ltd, Pleasant Engineering Sdn Bhd and Thaumas Marine Ltd.

The latest contracts will be the largest vessel sale orders for Coastal Group since December 2009, and will significantly replenish our vessel sales orderbook, its executive chairman Ng Chin Heng said.

Of the seven OSV sales secured by Coastal Group, six units were purchased by Tidewater Group, which is the world’s largest and most experienced provider of marine support services for the offshore energy industry.

The other unit of OSV was sold to Swiber Group, which offers a full range of offshore engineering, procurement, construction, installation and commissioning and marine support services to support the entire spectrum of offshore oil and gas exploration projects.

"We are pleased that Coastal Group was able to capitalise on the recovery in the shipbuilding sector by securing these contract wins from existing as well as new customers," he said.

Moving forward, he said, greater emphasis would be placed on building larger deepwatersuited and dynamic-positioning enabled vessels as Coastal Group seeks to broaden its product offering and scale up shipbuilding value chain.

Regionally, demand for OSV services would increase, especially in Malaysia, Indonesia and Vietnam, as more new oil and gas exploration activities are expected to take place in coming years, said Ng.

With the gradually improving world economic outlook, this will lead to increasing demand for oil and gas and increased production spending by oil majors.

"As structural demand for oil and gas from emerging economies continues to grow, investments in exploration and development activities are expected to increase.

"Paired with rising prices for crude oil, the resultant demand for OSV is expected to remain firm," he added. -- BERNAMA

Read more: Coastal Group vessel sales of RM268m http://www.btimes.com.my/Current_News/BTIMES/articles/20110209201750/Article/index_html#ixzz1DTbZSMh9

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Recent Financial Results

Announcement Date		Financial Yr. End		Qtr	Period End		Revenue RM '000		Profit/Lost RM'000		EPS		Profit Margin %
19-Nov-10		31-Dec-10		3	30-Sep-10		192,091		53,634		14.80		27.92%
24-Aug-10		31-Dec-10		2	30-Jun-10		138,619		48,275		13.32		34.83%
25-May-10		31-Dec-10		1	31-Mar-10		141,142		43,306		11.95		30.68%
22-Feb-10		31-Dec-09		4	31-Dec-09		150,901		54,030		14.97		35.80%

ttm-Revenue = 622.753m
ttm-Earnings = 199.245m
Net Profit Margin = 199.245 / 622.753 = 32%


ttm-EPS = 55.04 sen
Price (9.2.2010) MR 2.38
ttm-PE = 4.3 x




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Including the new contracts, Coastal Group now has about RM760 million worth of vessel sales orders awaiting delivery to customers up to 2012, it said.


Over the next 2 years or 8 quarters, the sales in the orders book = RM 760m (or RM 380m per year or RM 95m per quarter).

Assuming the profit margin is 32%, its net earnings for the next 2 years or 8 quarters = RM 243.2m (or RM  121.6m per year or RM 30.4m per quarter).

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Current Price (2/2/2011): 2.39
(Figures in Malaysian Ringgits)

Recent Stock Performance:
1 Week 0.4%
4 Weeks 6.7%
13 Week 0.8%
52 Weeks 19.5%

Coastal Contracts Bhd Key Data:

2009 Sales 466,058,353
Employees: 420

Market Cap: RM  866.260 m
Shares Outstanding: 362,452,000
Closely Held Shares: 252,641,000

A Brief Look at Coastal Contracts Bhd.

Coastal Contracts Bhd

Business Description:
Coastal Contracts Bhd is a Malaysia-based company engaged in investment holding and provision of management services. The Company, through its subsidiaries, operates in two segments:

1. vessels manufacturing and repairing services, which include fabrication and sale of marine transportation vessels and provision of ship repairs and maintenance services, and 
2. vessels chartering and equipment hire, which include the provision of vessels transportation and equipment hiring services. 

Its subsidiaries are Bonafile Shipbuilders & Repairs Sdn. Bhd., Coastal Transport (Sandakan) Sdn. Bhd., Coastway Transport Sdn. Bhd., Seri Modalwan Sdn. Bhd., Pleasant Engineering Sdn. Bhd., Coastal Marine Pte. Ltd., Coastal Marine Pte. Ltd., Coastal Offshore (Labuan) Pte. Ltd., Asiapride Sdn. Bhd.Thaumas Marine Ltd and Ace Capital Pte. Ltd. Operations are carried out in Malaysia, Indonesia and Singapore.

2004 DPS 1.2 EPS 4.1
2005 DPS 0.9 EPS 4.8
2006 DPS 1.0 EPS 10.2
2007 DPS 1.9 EPS 19.8
2008 DPS 3.5 EPS 27.4
2009 DPS 3.0 EPS 45.0
9M10 DPS 5.0 EPS 40.07 NTA 1.5129


Current Price (7/1/2011): 2.37
2009 Sales 466,058,353
Employees: 420
Market Cap: 859,011,240
Shares Outstanding: 362,452,000
Closely Held Shares: 252,641,000

Recent Financial Results

Announcement Date		Financial Yr. End		Qtr	Period End		Revenue RM '000		Profit/Lost RM'000		EPS		Amended
19-Nov-10		31-Dec-10		3	30-Sep-10		192,091		53,634		14.80		-
24-Aug-10		31-Dec-10		2	30-Jun-10		138,619		48,275		13.32		-
25-May-10		31-Dec-10		1	31-Mar-10		141,142		43,306		11.95		-
22-Feb-10		31-Dec-09		4	31-Dec-09		150,901		54,030		14.97		-

Estimated EPS for 2010 = ttm-EPS = 55.02 sen
Projected PE for 2010 = 2.37 / 0.5502 = 4.3 x

Historical
5 Yr
PE range 3.2 - 8.7
DY range 3.2% - 1.3%

10 Yr
PE range 5.8 - 11.3
DY range 2.5% - 1.2%

Capital Changes

2004  1 to 5 Share Split

One Year Performance of Selected Stocks in KLSE (2)

Coastal Contracts Bhd

Date announced 19/11/2010
Quarter 30/09/2010 Qtr 3 FYE 31/12/2010

STOCK COASTAL C0DE  5071

Price $ 2.32 Curr. PE (ttm-Eps) 4.22 Curr. DY 1.29%
LFY Div 3.00 DPO ratio 7%
ROE 36.4% PBT Margin 27.9% PAT Margin 27.9%

Rec. qRev 192091 q-q % chg 39% y-y% chq 37%
Rec qPbt 53601 q-q % chg 10% y-y% chq 11%
Rec. qEps 14.80 q-q % chg 11% y-y% chq 11%
ttm-Eps 55.04 q-q % chg 3% y-y% chq 40%

Using VERY CONSERVATIVE ESTIMATES:
EPS GR 2% Avg.H PE 5.00 Avg. L PE 4.00
Forecast High Pr 3.04 Forecast Low Pr 1.90 Recent Severe Low Pr 1.90
Current price is at Middle 1/3 of valuation zone.

RISK: Upside 63% Downside 37%
One Year Appreciation Potential 6% Avg. yield 2%
Avg. Total Annual Potential Return (over next 5 years) 8%

CPE/SPE 0.94 P/NTA 1.53 NTA 1.51 SPE 4.50 Rational Pr 2.48



Decision:
Already Owned: Buy Hold Sell Filed Review (future acq): Filed Discard: Filed
Guide: Valuation zones Lower 1/3 Buy Mid. 1/3 Maybe Upper 1/3 Sell

Aim:
To Buy a bargain: Buy at Lower 1/3 of Valuation Zone
To Minimise risk of Loss: Buy when risk is low i.e UPSIDE GAIN > 75% OR DOWNSIDE RISK <25%
To Double every 5 years: Seek for POTENTIAL RETURN of > 15%/yr.
To Prevent Loss: Sell immediately when fundamentals deteriorate
To Maximise Gain & Reduce Loss: Sell when CPE/SPE > 1.5, when in Upper 1/3 of Valuation Zone & Returns < 15%/yr

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Prospects

Given that offshore shipbuilding activity is slowly perking up, Coastal Group has modest optimism of clinching new contracts to add to its vessel sales order book. The Group also expects steady income stream from its ship chartering division through continued utilisation of the Group’s fleet in coastal transportation and in various oil and gas support services. It is anticipated that future participation in the offshore structure fabrication business will be earnings-accretive and reduce the Group’s dependency on shipbuilding orders. The Group’s strong financial footing paired with low level of borrowings will further shield it from major financial distress.

With more deepwater oilfield developments off the western coast of Sabah coming on stream, Coastal Group is looking to enter a new phase of growth by diversifying into offshore structure fabrication to gain industry knowledge of the oil and gas engineering, procurement and construction business. Central to this plan are the Group’s strong foundation in marine structures and the geographical proximity of the Group’s 52-acre fabrication yard to the heart of Sabah’s growing oil and gas activities. Upgrading of infrastructure is currently at advanced stage to expand the fabrication yard’s capabilities.

Oil prices have risen above USD85 a barrel as improvement in the manufacturing sector in the U.S. and China, the world’s two biggest economies, boosted optimism that growth in global oil consumption will remain strong. Also, the U.S. Federal Reserve’s second round of quantitative easing to unleash more dollar into the economy had weakened the U.S currency’s value, which in turn made the dollar-denominated crude oil relatively cheaper for buyers using other currencies. This latest oil price development in the current environment of depleting oil reserves and increasing long-term energy demand will drive up offshore exploration, development and production activities going forward. The resultant capital investments in upstream oil and gas sector would spur additional requirements for offshore support vessels (“OSVs”).

Barring adverse changes in the global and regional economic outlook, Coastal Group is on track to deliver solid revenue and earnings growth in 2010, backed by the strong revenue visibility of the shipbuilding division’s vessel sales order book.

Coastal

Date announced 24/08/2010
Quarter 30/06/2010 Qtr 2
FYE 31/12/2010

STOCK COASTAL
C0DE  5071 

Price $ 2.35
Curr. PE (ttm-Eps) 4.39 Curr. DY 1.28%
LFY Div 3.00 DPO ratio 7%
ROE 36.4% PBT Margin 35.0% PAT Margin 34.8%

Rec. qRev 138619 q-q % chg -2% y-y% chq 46%
Rec qPbt 48583 q-q % chg 13% y-y% chq 44%
Rec. qEps 13.32 q-q % chg 11% y-y% chq 43%
ttm-Eps 53.55 q-q % chg 8% y-y% chq 65%

Using VERY CONSERVATIVE ESTIMATES:
EPS GR 2% Avg.H PE 5.00 Avg. L PE 4.00
Forecast High Pr 2.96 Forecast Low Pr 1.90 Recent Severe Low Pr 1.90
Current price is at Middle 1/3 of valuation zone.

RISK: Upside 57% Downside 43%
One Year Appreciation Potential 5% Avg. yield 2%
Avg. Total Annual Potential Return (over next 5 years) 7%

CPE/SPE 0.98 P/NTA 1.60 NTA 1.47 SPE 4.50 Rational Pr 2.41



Decision:
Already Owned: Buy Hold Sell Filed; Review (future acq): Filed; Discard: Filed
Guide: Valuation zones Lower 1/3 Buy; Mid. 1/3 Maybe; Upper 1/3 Sell

Aim:
To Buy a bargain: Buy at Lower 1/3 of Valuation Zone
To Minimise risk of Loss: Buy when risk is low i.e UPSIDE GAIN > 75% OR DOWNSIDE RISK <25%
To Double every 5 years: Seek for POTENTIAL RETURN of > 15%/yr.
To Prevent Loss: Sell immediately when fundamentals deteriorate
To Maximise Gain & Reduce Loss: Sell when CPE/SPE > 1.5, when in Upper 1/3 of Valuation Zone & Returns < 15%/yr

Malaysia wants to be Asia's oil field services, equipment hub

By Kamarul Yunus
Published: 2010/11/04

MALAYSIA aims to become an oil field services and equipment (OFSE) hub for Asia, leveraging on its strategic location at the centre of the Asia Pacific region and adjacent to the international shipping lanes.

Under the Economic Transformation Programme (ETP), three entry point projects (EPPs) have been identified to attain the target.

As outlined under the National Key Economic Activity (NKEA) for oil, gas and energy sector, the three EPPs are to attract multinational companies (MNCs) to bring a sizeable share of their global operations to Malaysia, the ETP report said.

The projects are also geared at consolidating domestic fabrications, developing engineering, procurement and installation capabilities and capacity through strategic partnerships and joint ventures.

The global OFSE market is valued at RM800 billion and has undergone rapid growth of 25 per cent an annum in recent years.

With a burgeoning domestic oil and gas industry, proximity to oil fields and a cost-competitive workforce, Malaysia is well-placed to become Asia's OFSE hub.

In addition, by increasing competitive pressures in the domestic market, there is potential for Malaysian companies to first become domestic champions and subsequently regional champions as it captures a larger share of the regional market.

Under the sector's NKEA, the target is to attract 10 to 20 major international companies in the OFSE industry, bringing about 10 per cent of their business operations to Malaysia.

"This translates to around 40 per cent of their regional activities and would mean positioning Malaysia as a cost-competitive base for engineering, procurement and construction as well as strategic base for installation activities in the Asia Pacific region," the report noted.

If the goal is met, the OFSE industry will have considerable impact, creating over 20,000 jobs and almost RM6.1 billion of incremental gross national income (GNI) by 2020.

A permanent government body to be known as Oil Field Services Unit (OFSU) will be set up. It will be responsible for overseeing the oil field services industry's growth and development.

Comprising 20 people, with at least 10 of whom will have the oil and gas industry experience, OFSU will be fully operational within the next six months.

Among others, its responsibilities are to make recommendations on how to restructure the domestic industry to create a more competitive environment and position the industry and its companies for growth, and to promote the Malaysian OFSE industry and companies to overseas firms and investors.

OFSU will require only minimal funding of RM5 million a year to cover its operating expenses. However, the success of the EPP is contingent on attracting foreign players to set up operations here, which would require estimated funding totalling RM6.8 billion. This comprises of RM6.3 billion in private investment and RM500 million in public investment.

On the whole, the ETP has identified 12 EPPs and two business opportunities within the NKEA for oil, gas and energy sector.

"These EPPs will contribute RM47.1 billion to GNI to meet the 2020 targets. An additional RM61.2 billion will come from business opportunities and baseline growth," the report said.

Thus, the NKEA expects to deliver a RM131.4 billion GNI impact and create an additional 52,300 jobs in this sector.

A significant proportion of these jobs will be highly-skilled jobs, with an estimated 21,000 or 40 per cent for qualified professionals such as engineers and geologies, with monthly salaries in the range of RM5,000 to RM10,000.

The incremental GNI includes RM23.1 billion of GNI from the multiplier effect created by EPPs from other sectors.

The largest sources of the multiplier effect on the oil, gas and energy NKEA are palm oil, tourism and electronics and electrical NKEAs, for example, an increase in usage of energy due to an increase in tourists visiting Malaysia.

The oil, gas and energy NKEA is targeting a 5 per cent annual growth for the sector from 2010 to 2020. This is an ambitious goal, particularly against a backdrop of the natural 2 per cent decline of oil and gas production.


Read more: Malaysia wants to be Asia's oil field services, equipment hub http://www.btimes.com.my/Current_News/BTIMES/articles/ogas/Article/index_html#ixzz14J1VBcRc

Comment: This news is positive for the oil and gas sector of Malaysia. It is also good for Coastal.

Coastal

Date announced 24/08/2010
Quarter 30/06/2010 Qtr 2
FYE 31/12/2010

STOCK COASTAL
C0DE  5071 
Price $ 2.42 Curr. PE (ttm-Eps) 4.52 Curr. DY 1.24%

Rec. qRev 138619 q-q % chg -2% y-y% chq 46%
Rec qPbt 48583 q-q % chg 13% y-y% chq 44%
Rec. qEps 13.32 q-q % chg 11% y-y% chq 43%
ttm-Eps 53.55 q-q % chg 8% y-y% chq 65%

Using VERY CONSERVATIVE ESTIMATES:
EPS GR 5% Avg.H PE 5.00 Avg. L PE 4.00
Forecast High Pr 3.42 Forecast Low Pr 1.56 Recent Severe Low Pr 1.56
Current price is at Middle 1/3 of valuation zone.

RISK: Upside 54% Downside 46%
One Year Appreciation Potential 8% Avg. yield 2%
Avg. Total Annual Potential Return (over next 5 years):     10%

CPE/SPE 1.00
P/NTA 1.64
NTA 1.47
SPE 4.50
Rational Pr 2.41

Decision:
Already Owned: Buy Hold Sell Filed; Review (future acq): Filed; Discard: Filed
Guide: Valuation zones Lower 1/3 Buy; Mid. 1/3 Maybe; Upper 1/3 Sell.

Aim:
To Buy a bargain: Buy at Lower 1/3 of Valuation Zone
To Minimise risk of Loss: Buy when risk is low i.e UPSIDE GAIN > 75% OR DOWNSIDE RISK <25%
To Double every 5 years: Seek for POTENTIAL RETURN of > 15%/yr.
To Prevent Loss: Sell immediately when fundamentals deteriorate
To Maximise Gain & Reduce Loss: Sell when CPE/SPE > 1.5, when in Upper 1/3 of Valuation Zone & Returns < 15%/yr

Nine Malaysian firms on Forbes’ ‘best under a billion’ list

Nine Malaysian firms on Forbes’ ‘best under a billion’ list

By Lee Wei Lian

September 02, 2010

 

KUALA LUMPUR, Sept 2 — Nine Malaysian companies have made it to Forbes magazine’s ranking of best performing listed Asian companies with revenues under US$1 billion (RM3.1 billion).

Malaysia tied with Thailand for the sixth most number of entries on the list after China/Hong Kong with 71, India (39), South Korea (20), Taiwan (19) and Australia (13).

Singapore had eight entries on the list while Japan had two, down from 24 due to domestic economic woes.
“In aggregate the market-cap-weighted shares of our 2010 class were up 43 per cent over 12 months versus 21 per cent for the FTSE Asia Pacific Small Cap stock index,” said Forbes.

The nine Malaysian entries this year represented an increase of one over the eight entries it had on the list last year.

One Malaysian newcomer to the list, glove maker Hartalega Holdings, was profiled by the magazine.
The other companies were RFID solutions provider CBS Technology, marine services provider Coastal Contracts, herbal care multi-level marketing company Hai-O Enterprise, steel pipe maker KKB Engineering, glove maker Latexx Partners, construction company Mudajaya Group, e-government service provider My EG Services and IT firm Willowglen MSC.

The Singaporean entries were real estate fund manager ARA Asset Management, marine equipment manufacturer Baker Technology, furniture maker Design Studio Furniture, engineering outfit Hiap Seng Engineering, property developer Ho Bee Investment, infrastructure builder OKP Holdings, clean room supplier Riverstone Holdings and mining company Straits Asia Resources.

This year also marked the first time a Vietnamese company made it to the list — dairy outfit Vinamilk.

“Its history reflects the different nature of enterprises in nations with long-standing state dominance,” said Forbes.

The annual “Best Under A Billion” list picks the top-performing 200 firms from close to 13,000 listed Asia-Pacific companies with actively traded shares and sales of between US$5 million and US$1 billion.
Selection of the final 200 was based on earnings growth, sales growth, and shareholders’ return on equity in the past 12 months and over three years.

Prime Minister Datuk Seri Najib Razak said recently that small-medium enterprises (SMEs) are the backbone of the Malaysian economy.

SMEs contribute about one-third of Malaysia’s GDP and account for 20 per cent of its exports.

http://www.themalaysianinsider.com/business/article/nine-malaysian-firms-on-forbes-best-under-a-billion-list/

Malaysia was well on track to become the fourth deepwater oil and gas hub in the world.

DPM: Malaysia can be come global deepwater oil, gas hub

By Roy Goh

Published: 2010/07/23

MALAYSIA can become a key deep-water oil and gas (O&G) hub in the world, but this window of opportunity is not perpetual, says Deputy Prime Minister Tan Sri Muhyiddin Yassin.

The answer lies in its capacity and capability, he said, stressing that it is paramount for the country to leverage and build on existing O&G assets.

"If done right, Malaysia can become one of the world's key deep-water O&G hubs after Houston, Rio de Janeiro and Aberdeen," he said.

Muhyiddin was speaking to reporters after witnessing a memorandum of understanding signing ceremony between Asian Supply Base Sdn Bhd and Labuan Shipyard and Engineering Sdn Bhd in Labuan yesterday.

Technip Group president and chief executive officer Bernard Di Tullio at the 15th Asia Oil and Gas Conference last month said Malaysia was well on track to become the fourth deepwater oil and gas hub in the world.

Apart from Technip, Di Tullio said other key players in deepwater Malaysia include Malaysian Marine Heavy Engineering, Sapura and Aker Kvaerner.

"Sabah has shown a strong potential in the O&G business," Muhyiddin said, adding that recent deep-water field discoveries there are now being developed and expected to begin production between 2011 and 2015.

"These sizeable ultra deepwater blocks offshore, coupled with the Kebabangan cluster gas fields, the completion of the Sabah Oil and Gas Terminal and the Sabah-Sarawak (Kimanis-Bintulu) gas pipeline project would position Labuan and Sabah as one of the leading O&G hubs in the region.

"Clearly the era of 'easy oil' is over and the exploration and production of O&G will move increasingly into deeper waters, presenting us new challenges as well as opportunities," Muhyiddin said.

However, besides location, a regional hub demands one-stop centres with fully integratedport facilities, warehouses, workshops, ship maintainance and fabrication yards, Muhyiddin said, adding that this is where the partnership between Asian Supply Base and Labuan Shipyard is timely.

Read more: DPM: Malaysia can be come global deepwater oil, gas hub http://www.btimes.com.my/Current_News/BTIMES/articles/dpm22/Article/index_html#ixzz0uSS6JOqU




This news is positive for this company below.  Its CEO expressed optimism and has hinted on these developments in his annual report.

Historical Investment Data for Coastal (7.6.2010)

Historical Investment Data for Coastal (7.6.2010)
http://spreadsheets.google.com/pub?key=t2V7YCN7GFYfboe6OYDJYpA&output=html

A quick look at Coastal (25.5.2010)

A quick look at Coastal (25.5.2010)
http://spreadsheets.google.com/pub?key=taWOgEdJSr517zWzGn9LnQA&output=html

Coastal ties to help Ramunia see profits again

By Sharen Kaur

Published: 2010/04/21


RAMUNIA Holdings Bhd (7206), which has just sold its main asset, expects to be back in the black and free from the PN17 label this year as it partners shipbuilder Coastal Contracts Bhd.

It plans to continue with the engineering business, servicing the oil and gas industry, despite selling its fabrication yard in Johor to Sime Darby Bhd for RM515 million.

Loss-making Ramunia was classified as a PN17 company on February 25 this year as its shareholders' fund fell below half of its paid-up capital. The label typically identifies financially troubled firms.

The company has until March 1 next year to come up with a revamp plan, director Too Kok Leng told reporters after a shareholders' meeting in Kuala Lumpur yesterday.

On February 28, Ramunia signed a memorandum of understanding with Coastal's wholly-owned unit, Pleasant Engineering Sdn Bhd, to undertake oil and gas projects.

Coastal offers a wide range of marine services and vessels to worldwide clients of different industries and has a fabrication yard in Sandakan, Sabah.

"It is a good marriage. We have the licence and expertise, and Coastal has a yard. So we are complete in that sense. 

"We are looking at some fabrication work as well as onshore and offshore engineering projects by Petronas (Petroliam Nasional Bhd) and the private sector," Too said.

In the year ended October 31 2009, Ramunia posted a net loss of RM53 million.

"Our first quarter earnings were positive. We made a net profit of RM3.42 million, and we hope to keep that going," Too added.

Chairman Datuk Azizan Abd Rahman said the current management was looking at various opportunities.

Ramunia will also meet its creditors on May 7 to settle its borrowings.

The group has outstanding loans of RM347 million, money it borrowed to modernise the yard, and it is seeking a haircut from lenders.


 http://www.btimes.com.my/Current_News/BTIMES/articles/ramnia2-2/Article/#ixzz0lgkYC6iq

A quick look at Coastal

A quick look at Coastal
http://spreadsheets.google.com/pub?key=tNXNbfgtsCy8Dp9hnaH_Nfg&output=html


Also read:
Coastal Secured Vessel Sales Worth RM49.2 Million

Coastal at 52 weeks high

This news is positive for Coastal

Company Name : COASTAL CONTRACTS BHD
Stock Name : COASTAL
Date Announced : 28/01/2010



Type : Announcement
Subject : Coastal Contracts Bhd (“Coastal” or “Company”) – Memorandum of Understanding (“MoU”) between Ramunia Fabricators Sdn Bhd (“RFSB”) and Pleasant Engineering Sdn Bhd (“PESB”)



Contents : The Board of Directors of Coastal is pleased to announce that its wholly-owned subsidiary, PESB, has on 28 January 2010 signed a MoU with RFSB for the proposed collaboration to undertake the tendering, bidding and fabrication in relation to any contract involving the engineering, procurement and construction of any topsides, jackets or any structures for the oil and gas industry.

RFSB is a wholly-owned subsidiary of Ramunia Holdings Bhd (“Ramunia”), and is involved in civil, structural and building maintenance, mechanical engineering and maintenance, as well as offshore facilities and tanks/tanks farm construction.

PESB owns a yard with facilities to carry out fabrication and engineering works at Seguntor, Sandakan, Sabah, measuring approximately 52.37 acres in aggregate.

The MoU shall take effect on the date of its execution and shall continue to be of effect until the occurrence of any of the following, whichever is the earlier:

1. the execution of the appropriate legally binding agreement or agreements regarding the parties’ intended collaboration; or

2. the expiry of a period of 2 years from the date of the MoU’s execution or such later period as mutually agreed between the parties; or

3. the MoU’s early termination by either party by giving 2 months’ written notice of termination.

Except for Lembaga Tabung Haji which is the common substantial shareholder of both Ramunia and Coastal, none of the directors and/or substantial shareholders of the Company and persons connected with them has any interest, direct or indirect, in the above transaction.

http://announcements.bursamalaysia.com/EDMS/edmsweb.nsf/LsvAllByID/0B091A5A5420EC44482576B900324BF2?OpenDocument

Coastal Contracts year-to-date has topped RM148 million

Coastal to sell vessels for RM49.2m

Tags: Bursa Malaysia | Coastal Contracts Bhd | deck barge | Ng Chin Heng | offshore support vessel(OSV) | tugboat

Written by The Edge Financial Daily
Thursday, 24 December 2009 11:45

KUALA LUMPUR: Coastal Contracts Bhd have secured contracts for the sale of an offshore support vessel (OSV), a tugboat and a deck barge for RM49.2 million, the company announced yesterday.

Including the new contracts, the value of vessel orders clinched by Coastal Contracts year-to-date has topped RM148 million, it told Bursa Malaysia.

Coastal Contracts currently has about RM1.4 billion worth of vessel sales orders awaiting delivery to customers up to 2011.

The group said revenue stream from these three vessels was expected to contribute positively to its bottomline performance for the financial year ending Dec 31, 2010.

In a statement, its executive chairman Ng Chin Heng said: “Despite the challenging market conditions since the latter part of last year, we have been steadily replenishing our vessel sales order book, the ‘building blocks’ that will buoy the group’s future revenue and earnings clarity.”


http://www.theedgemalaysia.com/in-the-financial-daily/156290-coastal-to-sell-vessels-for-rm492m.html