Showing posts with label Integrax. Show all posts
Showing posts with label Integrax. Show all posts
Thursday, 7 November 2013
Higher throughput volume to propel Integrax earnings
Posted on October 31, 2013, Thursday
KUCHING: Port operator Integrax Bhd’s (Integrax) earnings is expected to grow by seven per cent in financial year 2014 due to more throughput handling capacity from both Lekir Bulk Terminal (LBT) and Lumut Maritime Terminal (LMT).
RHB Research Sdn Bhd (RHB Research) said the company’s net profit is on an upward trajectory as a result of improved margins given its economies of scale.
The research firm projected for the company to register double-digit earnings growth from 2015 to 2018, driven by surge in volume from LBT following the commencement of Tenaga Nasional Bhd’s (TNB) new power plants, M4, on March 31, 2015 and M5, on October 1, 2017.
The research firm added that each power plants will assist the company to boost annual volume of coal imports by an additional 3 million tonnes.
It noted that from 2012 to 2018, Integrax’s earnings could register a compound annual growth rate (CAGR) of 12.5 per cent.
Besides that, RHB Research observed that Integrax is also going to gain from stable throughput volume for TNB’s power plants’ feedstock, potential trans-shipment hub for dry bulk shipping and increasing client base.
It noted that Integrax has been in ongoing discussion with several parties.
The research firm pointed out that there are interests from other parties especially from industries such as fertilisers, bio mass pellets and ship-to-ship transfers to utilise the facilities of Integrax’s port.
Apart from that, RHB Research revealed that negotiations are being held with other parties to secure new customers for LBT and LMT, with some notable industries to boost volume are the minerals, limestone, palm oil and palm fibre industries.
Citing a case, the research firm said rising steel production in limestone-deficient India is spurring demand for imported limestone, which is used as feedstock in blast furnace-based steel production.
The company observed that limestone from Perak and Kelantan may be well-positioned to meet the huge steel demand on India’s east coast.
Therefore, RHB Research believed that those potential new clients could boost Integrax’s earnings as throughput handling volume increases.
Financially, for the second quarter of financial year 2013, Integrax’s bottom line suffered a dip of 12 per cent to RM9.66 million year-on-year from RM10.98 million in the second quarter of 2012 due to higher operating cost, lower profits from associate company, Lumut Maritime Terminal Sdn Bhd and lower land sales.
Nonetheless, the company’s turnover rose 6.2 per cent to RM23.65 million in the second quarter of 2013 compared with RM22.28 million in the same corresponding period last year.
Moreover, RHB Research noted that Integrax remains cash-rich with RM118 million in cash as at June 2013.
With a steady business and strong clientele, RHB Research estimated that Integrax’s cash pile is expected to soar to RM353 million by 2018.
Using a discounted cashflow valuation, the research firm believes that the company’s share price is worth RM2.32 per share.
Read more: http://www.theborneopost.com/2013/10/31/higher-throughput-volume-to-propel-integrax-earnings/#ixzz2jy9sPyaI
Tuesday, 7 August 2012
Integrax poised to seal 25-year TNB coal contract
Business & Markets 2012
Written by Ho Ching-Ling and Jose Barrock of theedgemalaysia
Friday, 27 July 2012 10:15
KUALA LUMPUR: Port operator INTEGRAX BHD [] is said to be close to
sealing a 25-year port utilisation agreement with utility giant TENAGA
NASIONAL BHD [] (TNB) for the handling of coal for the latter’s coal-fired
Janamanjung power plant in Manjung, Perak.
It is believed that the deal would entail Integrax handling an additional
three million tonnes of coal per year for TNB’s new 1,000mw coal-fired
power plant which is expected to be ready for commercial operations by
2015.
Integrax currently handles six million tonnes of coal per year for TNB to
power up its 2,100mw Janamanjung power plant located on Lekir Island.
This new agreement would be a substantial boost for Integrax as it would
increase its coal throughput at its deep-water terminal, Lekir Bulk
Terminal (LBT) by 50% to nine million tonnes per year.
“The negotiations have been on-going for some time now, (so) it should be concluded soon, at the latest, maybe late this week,” a financial executive familiar with the negotiations said on Thursday.
It is also noteworthy that TNB emerged as a substantial shareholder of Integrax in 2011 after it bought out Integrax’s former CEO Harun Halim Rasip’s 22% stake in the company
The acquisition by TNB came after an iron ore project by Brazilian mining giant Vale International SA in Sitiawan sparked disagreements between Harun and his brother Amin Halim Rasip, who is currently the co-CEO of Integrax.
Vale wanted Integrax to expand its capacity to facilitate the handling of iron ore, something Harun was not agreeable to because the expansion would involve huge capital. After Harun’s exit from the company, things were a little frosty between the management of Integrax and TNB.
In May 2011, Integrax received a writ of summons and statement of claim filed by TNB over the outcome of an extraordinary general meeting. However, the impending signing of the 25-year coal handling agreement seems to indicate that things are well between TNB and the Integrax management.
The new contract is likely to be a boon for Integrax. For its financial year ended December 2011, Integrax posted a net profit of RM43.8 million on the back of RM87.9 million revenue.
Earnings per share for the year stood at 14.58 sen. In contrast to a year earlier, net profits slipped 12.7% while revenue dipped only marginally. Nevertheless, the company’s outlook seems bright.
In notes accompanying its financial results, Integrax said, “The Lumut–Manjung corridor is expected to benefit from TNB’s 1,000mw Manjung 4 Power Plant project and Vale’s iron and steel investment in Teluk Rubiah.
“Integrax is currently in discussions with these parties to determine Integrax’s level of participation in these projects,” the company said. It was previously reported that Integrax is still keen to pursue a second attempt to tie-up with Vale after the lapse of its conditional contract to provide transshipment services for the latter for 10 years.
The Perak government has since given Vale the green light to construct its own jetty to serve the iron ore project. Integrax manages Lumut Port, which is made up of LBT and Lumut Maritime Terminal, which the company co-owns with Perak state.
Integrax closed unchanged at RM1.37 on Thursday.
This article appeared in The Edge Financial Daily on July 27, 2012.
Saturday, 23 June 2012
Investor's Checklist: Business Services
Understand the business model. Knowing if a company leverages technology, people, or hard assets will provide insight as to the kind of financial results the company may produce.
Look for scale and operating leverage. These characteristics can provide significant barriers to entry and lead to impressive financial performance.
Look for recurring revenue. Long-term customer contracts can guarantee certain levels of revenue for years into the future. This can provide a degree of stability in financial results.
Focus on cash flow. Investors ultimately earn returns based on a company's cash-generating ability. Avoid investments that aren't expected to generate adequate cash flow.
Size the market opportunity. Industries with big, untapped market opportunities provide an attractive environment for high growth. In addition, companies chasing markets perceived to be big enough to accommodate growth for all industry participants are less likely to compete on price alone.
Examine growth expectations. Understand what kind of growth rates are incorporated into the share price. If the rates of growth are unrealistic, avoid the stock.
Ref: The Five Rules for Successful Stock Investing by Pat Dorsey
Read also:
Investor's Checklist: A Guided Tour of the Market...
Look for scale and operating leverage. These characteristics can provide significant barriers to entry and lead to impressive financial performance.
Look for recurring revenue. Long-term customer contracts can guarantee certain levels of revenue for years into the future. This can provide a degree of stability in financial results.
Focus on cash flow. Investors ultimately earn returns based on a company's cash-generating ability. Avoid investments that aren't expected to generate adequate cash flow.
Size the market opportunity. Industries with big, untapped market opportunities provide an attractive environment for high growth. In addition, companies chasing markets perceived to be big enough to accommodate growth for all industry participants are less likely to compete on price alone.
Examine growth expectations. Understand what kind of growth rates are incorporated into the share price. If the rates of growth are unrealistic, avoid the stock.
Ref: The Five Rules for Successful Stock Investing by Pat Dorsey
Read also:
Investor's Checklist: A Guided Tour of the Market...
Saturday, 15 January 2011
A Brief Look at Integrax
Integrax Berhad Company
Business Description:
Integrax Berhad is a Malaysia-based investment holding company. The Company, through its subsidiaries, operates in five segments:
Current Price (7/1/2011): 1.72
2009 Sales 91,055,758
Employees: 14
Market Cap: 517,386,320
Shares Outstanding: 300,806,000
Closely Held Shares: 156,655,772
Estimated EPS for 2011 = (3.68+4.56+2.96)*4/3 = 11.2*4/3 = 14.93 sen
At price of 1.72, it is trading at a prospective 2011 PE = 1.72 / 0.1493 = 11.5 x
Historical
5 Yr
PE range 5.3 - 9.4
DY range 2.6% - 1.2%
10 Yr
PE range 7.4 - 14.5
DY range 1.3% - 0.6%
Year DPS EPS
2004 0.0 8.7
2005 0.0 9.2
2006 2.0 11.9
2007 1.7 12.2
2008 2.0 -1.0
2009 0.0 12.3
9M10 0.0 11.20 NTA 1.79
Business Description:
Integrax Berhad is a Malaysia-based investment holding company. The Company, through its subsidiaries, operates in five segments:
- port operations,
- marine services,
- investment holding,
- industrial property and
- mining.
- Lumut Maritime Terminal, which is a port facility for dry and liquid bulk, breakbulk and containers, and
- Lekir Bulk Terminal, which is a port facility for dry and liquid bulk comprising Lumut Port.
2009 Sales 91,055,758
Employees: 14
Market Cap: 517,386,320
Shares Outstanding: 300,806,000
Closely Held Shares: 156,655,772
| Announcement Date | Financial Yr. End | Qtr | Period End | Revenue RM '000 | Profit/Lost RM'000 | EPS | Amended | ||||||
| 22-Nov-10 | 31-Dec-10 | 3 | 30-Sep-10 | 24,918 | 12,526 | 3.68 | - | ||||||
| 26-Aug-10 | 31-Dec-10 | 2 | 30-Jun-10 | 23,483 | 15,198 | 4.56 | - | ||||||
| 04-Jun-10 | 31-Dec-10 | 1 | 31-Mar-10 | 23,023 | 10,372 | 2.96 | - | ||||||
| 27-May-10 | 31-Dec-10 | 1 | 31-Mar-10 | 23,023 | 10,372 | 2.96 | - | ||||||
Estimated EPS for 2011 = (3.68+4.56+2.96)*4/3 = 11.2*4/3 = 14.93 sen
At price of 1.72, it is trading at a prospective 2011 PE = 1.72 / 0.1493 = 11.5 x
Historical
5 Yr
PE range 5.3 - 9.4
DY range 2.6% - 1.2%
10 Yr
PE range 7.4 - 14.5
DY range 1.3% - 0.6%
Year DPS EPS
2004 0.0 8.7
2005 0.0 9.2
2006 2.0 11.9
2007 1.7 12.2
2008 2.0 -1.0
2009 0.0 12.3
9M10 0.0 11.20 NTA 1.79
Capital changes
Nil
Monday, 3 January 2011
Sunday, 26 December 2010
Integrax eyes more Indonesian ports
Published: 2010/12/25
Integrax Bhd, which already owns a port in Indonesia, plans to open two more ports there by 2020 to capitalise on the republic's rising demand for commodities and raw materials.
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Integrax (9555) already holds 80 per cent of Jakarta stock exchange-listed PT Indoexchange Tbk, which operates a port and provides marine services in Java.
Integrax executive director and co-chief executive officer Harun Halim Rasip said the company may build new ports either in Sumatera, Java or Kalimantan.
"The ports could either be built on brownfield or greenfield areas. By 2020, we aim the three ports to have an equity value of US$150 million (RM465 million)," Harun told Business Times in an interview in Kuala Lumpur recently.
Business prospects are good because over 17,000 islands in the country need to be linked by ports, and in East Java alone, the population is above 40 million people.
"Indonesia offers good potential for the port industry as the country is mainly connected by seaborne logistics," said Harun.
Indonesia is also Southeast Asia's biggest economy with a population ten times larger than Malaysia. It is also a large exporter of palm oil, coal and other minerals.
"Indonesia is hastening a deregulation process that began almost two years ago to increase competitiveness and improve efficiencies in its port industry," he added.
Apart from port operations, Integrax also manages an industrial park.
The company owns 80 per cent of the Lekir Bulk Terminal and 50 per cent (minus one share) of the Lumut Maritime Terminal. Both are located near Lumut in Manjung, Perak. It also owns a port in the Philippines, which handles shipments like nickel.
With cash reserves of RM150 million, the company serve traders plying within the Southeast Asian region.
Integrax executive director and co-chief executive officer Harun Halim Rasip said the company may build new ports either in Sumatera, Java or Kalimantan.
"The ports could either be built on brownfield or greenfield areas. By 2020, we aim the three ports to have an equity value of US$150 million (RM465 million)," Harun told Business Times in an interview in Kuala Lumpur recently.
Business prospects are good because over 17,000 islands in the country need to be linked by ports, and in East Java alone, the population is above 40 million people.
"Indonesia offers good potential for the port industry as the country is mainly connected by seaborne logistics," said Harun.
Indonesia is also Southeast Asia's biggest economy with a population ten times larger than Malaysia. It is also a large exporter of palm oil, coal and other minerals."Indonesia is hastening a deregulation process that began almost two years ago to increase competitiveness and improve efficiencies in its port industry," he added.
Apart from port operations, Integrax also manages an industrial park.
The company owns 80 per cent of the Lekir Bulk Terminal and 50 per cent (minus one share) of the Lumut Maritime Terminal. Both are located near Lumut in Manjung, Perak. It also owns a port in the Philippines, which handles shipments like nickel.
With cash reserves of RM150 million, the company serve traders plying within the Southeast Asian region.
Read more: Integrax eyes more Indonesian ports http://www.btimes.com.my/Current_News/BTIMES/articles/GRAXDON/Article/index_html#ixzz19D42Rric
Tuesday, 30 November 2010
Integrax sees LMT tagged at ‘no less than RM250m’
Integrax sees LMT tagged at ‘no less than RM250m’
Tags: Integrax Bhd | LMT
Written by Joy Lee
Tuesday, 30 November 2010 15:10
KUALA LUMPUR: Port operator Integrax Bhd may consider selling its stake in Lumut Maritime Terminal Sdn Bhd (LMT) for a price tag of no less than RM125 million.
LMT has a port facility and cash of about RM50 million as at June 2010. Additionally, LMT has an exclusive concession zone of a 30km radius around the terminal, which expires in 2015 with land available for sale.
“I think [the value of LMT] would be in excess of a quarter billion (RM250 million),” Harun Halim Rasip, joint chief executive of Integrax, said at a press briefing yesterday.
Currently, Integrax has a 50% minus one share in LMT while Perak Corp, via its unit Taipan Merit Sdn Bhd, has a 50% plus one share in LMT.
LMT has an exclusive contract to manage the deepwater port Lekir Bulk Terminal (LBT), in which Integrax has an 80% equity, till 2017. Malakoff Corp Bhd holds the remaining 20% of LBT.
There is a feud between Harun and his brother Amin Halim Rasip, who is also co-chief executive and executive director of Integrax. The duo hold a collective stake of 37.8% in Integrax via private vehicles.
Yesterday Amin took the stage before a press briefing called for by Harun.
The brothers do not see eye to eye on the plans ahead for Integrax, including the deal to provide transshipment services for Brazilian mining giant Vale, the world’s largest iron ore producer, for a 10-year tenure while Vale built its own facility.
While Amin is for the Vale deal, Harun and other board members, are opposed the deal as the cost of setting up the facility for Vale would be in the region of RM280 million.
Harun’s objection was due to the capital investment that Integrax would have to incur with no certainty of the port being utilised after the 10-year tenure. The board said it would be difficult to rope in new clients of Vale’s size. “The financial risks that were worked out against the permutation on capital cost yielded a return that was too low. The deal did not make sense,” Harun said.
At this, Amin, who has the backing of the state, interjected: “Data will be provided to you to show that this is totally incorrect. It does not accord to reality.”
Integrax and the Perak government have been at loggerheads since the former turned down the Vale offer. The Perak government and Amin said the Vale deal would benefit the state including a commitment by Vale to build a RM3 billion iron ore pellet distribution centre.
LMT is currently the object of a tussle between Taipan Merit and Integrax after Perak Corp terminated a shareholders’ agreement with Integrax for the operations of LMT. Integrax said earlier it had opted to exercise its option to acquire all of Taipan Merit’s shares in LMT.
Perak Corp is unlikely to give up LMT as it is the state’s main revenue generator. For the nine months ended September, Perak Corp posted a net profit of RM13.33 million on revenue of RM74.81 million. Its infrastructure arm accounted for almost RM64 million of Perak Corp’s revenue.
Nonetheless, should Taipan Merit be able to gain full control of LMT, LBT may opt to terminate the operations and maintenance agreement with LMT given the ongoing scuffle at Integrax’s level.
Perak Corp has an 8.29% interest in Integrax via Kuda Sejati.
Yesterday Perak Corp announced that it bought 20 million shares or a 6.67% stake in Intergrax for RM30 million, confirming an earlier report by The Edge Financial Daily. The acquisition is seen as a move by Perak Corp to strengthen its position in Integrax.
Last week, another block of 5.6 million shares, or 1.87% stake, was traded off-market. The block is believed to have been mopped up by KYM Holdings Bhd, which had sold 756 acres of land to Vale for RM93.76 million.
With KYM entering the fray, it will be interesting to see how the struggle for control at Integrax ends. Given that the only logical way for the tussle to end is for one party to exit, but it may be a long while before the dust settles.
The boardroom tussle has sent Integrax shares surging 107.7% year-to-date to RM1.60 yesterday. The stock’s net assets per share were RM1.79 as at Sept 30.
At that price, the company has a market capitalisation of RM481.3 million.
This article appeared in The Edge Financial Daily, November 30, 2010.
Tags: Integrax Bhd | LMT
Written by Joy Lee
Tuesday, 30 November 2010 15:10
KUALA LUMPUR: Port operator Integrax Bhd may consider selling its stake in Lumut Maritime Terminal Sdn Bhd (LMT) for a price tag of no less than RM125 million.
LMT has a port facility and cash of about RM50 million as at June 2010. Additionally, LMT has an exclusive concession zone of a 30km radius around the terminal, which expires in 2015 with land available for sale.
“I think [the value of LMT] would be in excess of a quarter billion (RM250 million),” Harun Halim Rasip, joint chief executive of Integrax, said at a press briefing yesterday.
Currently, Integrax has a 50% minus one share in LMT while Perak Corp, via its unit Taipan Merit Sdn Bhd, has a 50% plus one share in LMT.
LMT has an exclusive contract to manage the deepwater port Lekir Bulk Terminal (LBT), in which Integrax has an 80% equity, till 2017. Malakoff Corp Bhd holds the remaining 20% of LBT.
There is a feud between Harun and his brother Amin Halim Rasip, who is also co-chief executive and executive director of Integrax. The duo hold a collective stake of 37.8% in Integrax via private vehicles.
Yesterday Amin took the stage before a press briefing called for by Harun.
The brothers do not see eye to eye on the plans ahead for Integrax, including the deal to provide transshipment services for Brazilian mining giant Vale, the world’s largest iron ore producer, for a 10-year tenure while Vale built its own facility.
While Amin is for the Vale deal, Harun and other board members, are opposed the deal as the cost of setting up the facility for Vale would be in the region of RM280 million.
Harun’s objection was due to the capital investment that Integrax would have to incur with no certainty of the port being utilised after the 10-year tenure. The board said it would be difficult to rope in new clients of Vale’s size. “The financial risks that were worked out against the permutation on capital cost yielded a return that was too low. The deal did not make sense,” Harun said.
At this, Amin, who has the backing of the state, interjected: “Data will be provided to you to show that this is totally incorrect. It does not accord to reality.”
Integrax and the Perak government have been at loggerheads since the former turned down the Vale offer. The Perak government and Amin said the Vale deal would benefit the state including a commitment by Vale to build a RM3 billion iron ore pellet distribution centre.
LMT is currently the object of a tussle between Taipan Merit and Integrax after Perak Corp terminated a shareholders’ agreement with Integrax for the operations of LMT. Integrax said earlier it had opted to exercise its option to acquire all of Taipan Merit’s shares in LMT.
Perak Corp is unlikely to give up LMT as it is the state’s main revenue generator. For the nine months ended September, Perak Corp posted a net profit of RM13.33 million on revenue of RM74.81 million. Its infrastructure arm accounted for almost RM64 million of Perak Corp’s revenue.
Nonetheless, should Taipan Merit be able to gain full control of LMT, LBT may opt to terminate the operations and maintenance agreement with LMT given the ongoing scuffle at Integrax’s level.
Perak Corp has an 8.29% interest in Integrax via Kuda Sejati.
Yesterday Perak Corp announced that it bought 20 million shares or a 6.67% stake in Intergrax for RM30 million, confirming an earlier report by The Edge Financial Daily. The acquisition is seen as a move by Perak Corp to strengthen its position in Integrax.
Last week, another block of 5.6 million shares, or 1.87% stake, was traded off-market. The block is believed to have been mopped up by KYM Holdings Bhd, which had sold 756 acres of land to Vale for RM93.76 million.
With KYM entering the fray, it will be interesting to see how the struggle for control at Integrax ends. Given that the only logical way for the tussle to end is for one party to exit, but it may be a long while before the dust settles.
The boardroom tussle has sent Integrax shares surging 107.7% year-to-date to RM1.60 yesterday. The stock’s net assets per share were RM1.79 as at Sept 30.
At that price, the company has a market capitalisation of RM481.3 million.
This article appeared in The Edge Financial Daily, November 30, 2010.
Integrax co-CEO says buyout can clear row
Tuesday November 30, 2010
Integrax co-CEO says buyout can clear row
By SHARIDAN M. ALI
sharidan@thestar.com.my
KUALA LUMPUR: Integrax Bhd co-chief executive officer Harun Halim Rasip says the company's fallout with Taipan Merit Sdn Bhd may be solved if one of them buys the other out of Lumut Maritime Terminal Sdn Bhd (LMT).
Taipan Merit, a Perak state-owned enterprise under Perak Corp Bhd, had recently terminated the shareholders agreement with Integrax for LMT, a port-operating unit of Integrax.
It was set out under the agreement that Integrax had the right to nominate the CEO of LMT to be approved by the LMT board.
The agreement also provides for reserved matters which effectively makes LMT a 50:50 joint venture where both shareholders have to be in agreement although Taipan Merit holds 50% plus one share in LMT.
Integrax found the termination unacceptable and a breach of the agreement. Thus it filed a notification of arbitration and made an offer to buy out Taipan Merit on Nov 10.
Integrax also filed an originating summons to Perak Corp, Taipan Merit and the other Integrax co-CEO, Amin Halim Rasip, amongst others.
We are unable to offer the buy-out now until the arbitration stage and I am willing to pay a lot of money for it. We are also going for the injunction because we want to put somebody independent to run the company, protect our shares in LMT and make sure the money is not being dissipated inappropriately.
If it (Taipan Merit) is professional enough, it should offer to be bought out, he told a press briefing yesterday.
Harun said the problem with Taipan Merit started before the Vale International SA contract came into the picture. Harun and Amin, both major shareholders of Integrax, have been feuding over the matter with the latter and Taipan Merit in favour of the tie-up with Vale.
But the problem with Taipan Merit has some impact on the Vale matter. Now, as the transhipment services agreement with Vale had lapsed on Oct 19, we're just going to step back, Harun said.
All the noise for the Vale contract has no merit as it has problems to reflect stable financial return. Also, we do not want to be investing RM250mil to RM300mil while the relationship with our partner is on the rocks.
Harun added that the Vale contract required high capital expenditure where the minimum annual throughput from the project would not generate enough income to meet Integrax's minimum project hurdle rate of return.
It will result in asset yield destruction, he said.
The port signed an agreement with Vale on Dec 29, 2009 which allowed Integrax to expand existing facilities at the Lekir Bulk Terminal (LBT), one of two terminals in which Integrax has stakes in, to comply with the LBT's requirements over a 10-year period.
Meanwhile, Vale bought 166ha for almost RM102mil in cash from KYM Holdings Bhd and its 54%-owned subsidiary, Harta Makmur Sdn Bhd, in early January with an option to acquire an additional 306ha for RM93.8mil in cash.
Going forward, Harun said Integrax would be tapping into Indonesia's booming economy to expand its port operations. Integrax holds a 70% stake in PT Indoexchange Tbk, a public-listed Indonesian company.
Indonesia's vast economic potential is hampered by poor infrastructure, including ports. And supported by hastening of de-regulation process in the port industry, Integrax is ready to fill this gap and has committed to the state-owned enterprise to undertake the operations and management of an established port in Sumatra, amongst other potential projects there.
It is estimated that the expansion plan in Indonesia will cost about US$150mil, he said.
As for LMT and LBT, Harun said negotiations were under way to deal with additional coal-handling needs which would serve the expansion of Tenaga Nasional Bhd's Janamanjung power plant at LBT.
Meanwhile, Perak Corp, in a filing with Bursa Malaysia yesterday, said Taipan Merit had, on Nov 26, acquired 20 million ordinary shares of RM1 each in Integrax, representing 6.65% of the issued and paid-up capital of Integrax, for about RM30.05mil cash.
In a separate filing, Integrax said PT Indoexchange had announced to Bursa Efek Indonesia and had made the obligatory disclosure that it had received a notice of termination of share-sale agreement dated June 13, 2008 from one of three vendors of shares in PT Alkatara.
PT Indoexchange is taking the necessary legal actions against the vendors.
http://biz.thestar.com.my/news/story.asp?file=/2010/11/30/business/7522289&sec=business
Integrax co-CEO says buyout can clear row
By SHARIDAN M. ALI
sharidan@thestar.com.my
KUALA LUMPUR: Integrax Bhd co-chief executive officer Harun Halim Rasip says the company's fallout with Taipan Merit Sdn Bhd may be solved if one of them buys the other out of Lumut Maritime Terminal Sdn Bhd (LMT).
Taipan Merit, a Perak state-owned enterprise under Perak Corp Bhd, had recently terminated the shareholders agreement with Integrax for LMT, a port-operating unit of Integrax.
It was set out under the agreement that Integrax had the right to nominate the CEO of LMT to be approved by the LMT board.
The agreement also provides for reserved matters which effectively makes LMT a 50:50 joint venture where both shareholders have to be in agreement although Taipan Merit holds 50% plus one share in LMT.
Integrax found the termination unacceptable and a breach of the agreement. Thus it filed a notification of arbitration and made an offer to buy out Taipan Merit on Nov 10.
Integrax also filed an originating summons to Perak Corp, Taipan Merit and the other Integrax co-CEO, Amin Halim Rasip, amongst others.
We are unable to offer the buy-out now until the arbitration stage and I am willing to pay a lot of money for it. We are also going for the injunction because we want to put somebody independent to run the company, protect our shares in LMT and make sure the money is not being dissipated inappropriately.
If it (Taipan Merit) is professional enough, it should offer to be bought out, he told a press briefing yesterday.
Harun said the problem with Taipan Merit started before the Vale International SA contract came into the picture. Harun and Amin, both major shareholders of Integrax, have been feuding over the matter with the latter and Taipan Merit in favour of the tie-up with Vale.
But the problem with Taipan Merit has some impact on the Vale matter. Now, as the transhipment services agreement with Vale had lapsed on Oct 19, we're just going to step back, Harun said.
All the noise for the Vale contract has no merit as it has problems to reflect stable financial return. Also, we do not want to be investing RM250mil to RM300mil while the relationship with our partner is on the rocks.
Harun added that the Vale contract required high capital expenditure where the minimum annual throughput from the project would not generate enough income to meet Integrax's minimum project hurdle rate of return.
It will result in asset yield destruction, he said.
The port signed an agreement with Vale on Dec 29, 2009 which allowed Integrax to expand existing facilities at the Lekir Bulk Terminal (LBT), one of two terminals in which Integrax has stakes in, to comply with the LBT's requirements over a 10-year period.
Meanwhile, Vale bought 166ha for almost RM102mil in cash from KYM Holdings Bhd and its 54%-owned subsidiary, Harta Makmur Sdn Bhd, in early January with an option to acquire an additional 306ha for RM93.8mil in cash.
Going forward, Harun said Integrax would be tapping into Indonesia's booming economy to expand its port operations. Integrax holds a 70% stake in PT Indoexchange Tbk, a public-listed Indonesian company.
Indonesia's vast economic potential is hampered by poor infrastructure, including ports. And supported by hastening of de-regulation process in the port industry, Integrax is ready to fill this gap and has committed to the state-owned enterprise to undertake the operations and management of an established port in Sumatra, amongst other potential projects there.
It is estimated that the expansion plan in Indonesia will cost about US$150mil, he said.
As for LMT and LBT, Harun said negotiations were under way to deal with additional coal-handling needs which would serve the expansion of Tenaga Nasional Bhd's Janamanjung power plant at LBT.
Meanwhile, Perak Corp, in a filing with Bursa Malaysia yesterday, said Taipan Merit had, on Nov 26, acquired 20 million ordinary shares of RM1 each in Integrax, representing 6.65% of the issued and paid-up capital of Integrax, for about RM30.05mil cash.
In a separate filing, Integrax said PT Indoexchange had announced to Bursa Efek Indonesia and had made the obligatory disclosure that it had received a notice of termination of share-sale agreement dated June 13, 2008 from one of three vendors of shares in PT Alkatara.
PT Indoexchange is taking the necessary legal actions against the vendors.
http://biz.thestar.com.my/news/story.asp?file=/2010/11/30/business/7522289&sec=business
Perak Corp acquires 6.65pc stake in Integrax
PROPERTY group Perak Corp Bhd (PCB) has bought a 6.65 per cent stake in port operator Integrax Bhd for RM30.05 million.
The purchase was to provide a dividend stream for it, Perak Corp said in a filing yesterday.
The company also said that under the directive of Bursa Malaysia, it was negotiating with one of its related parties, Kuda Sejati Sdn Bhd, to transfer 25 million Integrax shares it held as part of its debt settlement to the latter.
Read more: Perak Corp acquires 6.65pc stake in Integrax http://www.btimes.com.my/Current_News/BTIMES/articles/20101130003513/Article/index_html#ixzz16ih0gQz6
The purchase was to provide a dividend stream for it, Perak Corp said in a filing yesterday.
The company also said that under the directive of Bursa Malaysia, it was negotiating with one of its related parties, Kuda Sejati Sdn Bhd, to transfer 25 million Integrax shares it held as part of its debt settlement to the latter.
Read more: Perak Corp acquires 6.65pc stake in Integrax http://www.btimes.com.my/Current_News/BTIMES/articles/20101130003513/Article/index_html#ixzz16ih0gQz6
Saturday, 27 November 2010
Integrax: Change in Shareholdings
Stock Name: INTEGRA
Date Announced:15/11/2010
Name: Mackenzie Financial Corporation
Disposed
03/11/2010
681,700 shares
Circumstances
Stock was sold by Mackenzie Financial Corporation ("MFC") on behalf of its clients, in its role as Portfolio Manager. MFC has voting control over the shares.
Direct (units):15,500,000
Direct (%): 5.15
Total no of securities after change:15,500,000
Date of notice:10/11/2010
Date Announced:15/11/2010
Name: Mackenzie Financial Corporation
Disposed
03/11/2010
681,700 shares
Circumstances
Stock was sold by Mackenzie Financial Corporation ("MFC") on behalf of its clients, in its role as Portfolio Manager. MFC has voting control over the shares.
Direct (units):15,500,000
Direct (%): 5.15
Total no of securities after change:15,500,000
Date of notice:10/11/2010
Monday, 22 November 2010
Integrax Berhad
Date announced 22/11/2010
Quarter 30/09/2010 Qtr 3 FYE 31/12/2010
STOCK Integra C0DE 9555
Price $ 1.6 Curr. ttm-PE 11.01 Curr. DY 1.88%
LFY Div 3.00 DPO ratio 21%
ROE 8.1% PBT Margin 61.6% PAT Margin 44.4%
Rec. qRev 24918 q-q % chg 6% y-y% chq 4%
Rec qPbt 15340 q-q % chg -15% y-y% chq 9%
Rec. qEps 3.68 q-q % chg -19% y-y% chq 13%
ttm-Eps 14.53 q-q % chg 3% y-y% chq 26%
Using VERY CONSERVATIVE ESTIMATES:
EPS GR 5% Avg.H PE 8.00 Avg. L PE 4.00
Forecast High Pr 1.48 Forecast Low Pr 0.94 Recent Severe Low Pr 0.94
Current price is at Upper 1/3 of valuation zone.
RISK: Upside -21% Downside 121%
One Year Appreciation Potential -1% Avg. yield 2%
Avg. Total Annual Potential Return (over next 5 years) 1%
CPE/SPE 1.84 P/NTA 0.89 NTA 1.79 SPE 6.00 Rational Pr 0.87
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
Friday, 12 November 2010
Integrax wants to exercise option to acquire LMT
 |
Published: 2010/11/12
PORT operator Integrax Bhd (9555) wants to exercise an option to take over Lumut Maritime Terminal Sdn Bhd (LMT) from Taipan Merit Sdn Bhd but the latter says it has no legal right to do so.
In a filling to Bursa Malaysia Bhd yesterday, Taipan Merit parent Perak Corp Bhd said the option belongs to the non-defaulting party.
Given the termination of a shareholders' agreement by Taipan Merit on October 28 this year, the non-defaulting party was Taipan, Perak Corp added.
Taipan Merit is wholly owned by Perak Corp, which in turn is 52.54 per cent controlled by Perbadanan Kemajuan Negeri Perak.
In a filling to Bursa Malaysia Bhd yesterday, Taipan Merit parent Perak Corp Bhd said the option belongs to the non-defaulting party.
Given the termination of a shareholders' agreement by Taipan Merit on October 28 this year, the non-defaulting party was Taipan, Perak Corp added.
Taipan Merit is wholly owned by Perak Corp, which in turn is 52.54 per cent controlled by Perbadanan Kemajuan Negeri Perak.
In its statement, Integrax said it did not recognise Taipan Merit's notice of termination of the agreement.
Integrax said it had made an offer to buy out Taipan Merit's 50 per cent plus one share in LMT under the purported option.
It gave Taipan Merit 30 days to transfer all its LMT shares and indicate a share sale price.
Integrax, together with subsidiary Pelabuhan Lumut Sdn Bhd (PLSB), has also served a notice to arbitrate the termination of the shareholders agreement.
In this regard, Perak Corp said it will inform Integrax of its choice of arbitrator in due course.
Meanwhile, Integrax director Harun Halim Rasip said the fallout between PLSB and Taipan Merit was centred on the Brazilian iron ore company Vale's request.
The latter had asked LMT to provide an interim port facility for a 10- year period at Lekir Island Satu, next to Vale's own jetty.
While Perak state officials saw it as a good deal, a majority of Integrax's board was against the move.
Read more: Integrax wants to exercise option to acquire LMT http://www.btimes.com.my/Current_News/BTIMES/articles/pinr/Article/#ixzz151NAP2Xd
Integrax offers to buy out Taipan Merit
Published: 2010/11/11
INTEGRAX Bhd has made an offer to buy out Taipan Merit Sdn Bhd at 50 per cent plus one share in Lumut Maritime Terminal Sdn Bhd (LMT), along with notice to arbitrate the termination of shareholders agreement by Taipan Merit.
The offer to acquire Taipan Merit's shares sees Integrax exercising its option under a shareholders agreement between the two parties which allows for the transfer of the shares, Integrax said in a statement today.
"At the same time, Integrax does not recognise Taipan Merit's notice of termination of the agreement," it said.
Taipan Merit, a wholly-owned unit of Perak Corp Bhd which in turn is 52.54 per cent controlled by Perbadanan Kemajuan Negeri Perak, been given 30 days to transfer all its shares in LMT to Integrax and to indicate a share sale price.
The submission of the notice to arbitrate cited three points, including notice of termination of shareholders agreement, the reappointment of Amin Halim Rasip as chief executive officer of LMT despite objections by Integrax and Taipan Merit's usurpation of the management of LMT.
Taipan Merit had terminated a shareholder's agreement with Integrax end-October which Integrax alleged was in breach.
-- BERNAMA
http://www.btimes.com.my/Current_News/BTIMES/articles/20101111185105/Article/index_html
INTEGRAX Bhd has made an offer to buy out Taipan Merit Sdn Bhd at 50 per cent plus one share in Lumut Maritime Terminal Sdn Bhd (LMT), along with notice to arbitrate the termination of shareholders agreement by Taipan Merit.
The offer to acquire Taipan Merit's shares sees Integrax exercising its option under a shareholders agreement between the two parties which allows for the transfer of the shares, Integrax said in a statement today.
"At the same time, Integrax does not recognise Taipan Merit's notice of termination of the agreement," it said.
Taipan Merit, a wholly-owned unit of Perak Corp Bhd which in turn is 52.54 per cent controlled by Perbadanan Kemajuan Negeri Perak, been given 30 days to transfer all its shares in LMT to Integrax and to indicate a share sale price.
The submission of the notice to arbitrate cited three points, including notice of termination of shareholders agreement, the reappointment of Amin Halim Rasip as chief executive officer of LMT despite objections by Integrax and Taipan Merit's usurpation of the management of LMT.
Taipan Merit had terminated a shareholder's agreement with Integrax end-October which Integrax alleged was in breach.
-- BERNAMA
http://www.btimes.com.my/Current_News/BTIMES/articles/20101111185105/Article/index_html
Wednesday, 3 November 2010
Integrax
Date announced 26/08/2010
Quarter 30/06/2010 Qtr 2
FYE 31/12/2010
STOCK Integra
C0DE 9555
Price $ 1.33 Curr. PE (ttm-Eps) 9.42 Curr. DY 2.26%
LFY Div 3.00 DPO ratio 21%
ROE 8.1% PBT Margin 77.1% PAT Margin 58.4%
Rec. qRev 23483 q-q % chg 2% y-y% chq 17%
Rec qPbt 18094 q-q % chg 38% y-y% chq 33%
Rec. qEps 4.56 q-q % chg 54% y-y% chq 50%
ttm-Eps 14.12 q-q % chg 12% y-y% chq 14%
Using VERY CONSERVATIVE ESTIMATES:
EPS GR 3% Avg.H PE 8.00 Avg. L PE 4.00
Forecast High Pr 1.31 Forecast Low Pr 0.88 Recent Severe Low Pr 0.88
Current price is at Upper 1/3 of valuation zone.
RISK: Upside -5% Downside 105%
One Year Appreciation Potential 0% Avg. yield 3%
Avg. Total Annual Potential Return (over next 5 years) 2%
CPE/SPE 1.57 P/NTA 0.76 NTA 1.75 SPE 6.00 Rational Pr 0.85
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
Monday, 7 June 2010
Historical Investment Data of Integrax (7.6.2010)
Historical Investment Data of Integrax (7.6.2010)
http://spreadsheets.google.com/pub?key=tZj_Lmc9qKtzpFRFfTu8iEw&output=html
http://spreadsheets.google.com/pub?key=tZj_Lmc9qKtzpFRFfTu8iEw&output=html
Saturday, 29 May 2010
A quick look at Integrax (29.5.2010)
A quick look at Integrax (29.5.2010)
http://spreadsheets.google.com/pub?key=txujh3smqdmRuyr5EFHRL6g&output=html
Benjamin Graham's Checklist for Integrax (29.5.2010)
http://spreadsheets.google.com/pub?key=tExTvvwUz3Wujx7jrqFlrZA&output=html
Tuesday, 4 May 2010
A quick look at Integrax (4.5.2010)
Integrax Berhad Company
Business Description:
Integrax Berhad. The Group's principal activities are owning and operating 2 port facilities, Lumut Maritime Terminal (port facility for dry and liquid bulk, break bulk and containers) and Lekir Bulk Terminal (port facility for dry and liquid bulk) comprising Lumut Port. Other activities include providing tuggage services, and extracting and smelting mineral ore. Operations are carried out in Malaysia.
Wright Quality Rating: LAD0
A quick look at Integrax (4.5.2010)
http://spreadsheets.google.com/pub?key=t8WcTpUdhaSg_cm5MvKQYLQ&output=html
30/04/2010
PROPOSED FINAL DIVIDEND
The Board of Directors of Integrax is pleased to recommend a final dividend of 3% less Malaysian income tax for the financial year ended 31 December 2009, subject to the approval of the Company's shareholders at the forthcoming Twenty-Fourth Annual General Meeting to be convened.
Business Description:
Integrax Berhad. The Group's principal activities are owning and operating 2 port facilities, Lumut Maritime Terminal (port facility for dry and liquid bulk, break bulk and containers) and Lekir Bulk Terminal (port facility for dry and liquid bulk) comprising Lumut Port. Other activities include providing tuggage services, and extracting and smelting mineral ore. Operations are carried out in Malaysia.
Wright Quality Rating: LAD0
A quick look at Integrax (4.5.2010)
http://spreadsheets.google.com/pub?key=t8WcTpUdhaSg_cm5MvKQYLQ&output=html
30/04/2010
PROPOSED FINAL DIVIDEND
The Board of Directors of Integrax is pleased to recommend a final dividend of 3% less Malaysian income tax for the financial year ended 31 December 2009, subject to the approval of the Company's shareholders at the forthcoming Twenty-Fourth Annual General Meeting to be convened.
Monday, 5 April 2010
A quick look at Integrax
Integrax Berhad Company
Business Description:
Integrax Berhad. The Group's principal activities are owning and operating 2 port facilities, Lumut Maritime Terminal (port facility for dry and liquid bulk, break bulk and containers) and Lekir Bulk Terminal (port facility for dry and liquid bulk) comprising Lumut Port. Other activities include providing tuggage services, and extracting and smelting mineral ore. Operations are carried out in Malaysia.
Wright Quality Rating: LAD0
A quick look at Integrax
http://spreadsheets.google.com/pub?key=tpsmR43G59-htWV9PkRJUgQ&output=html
In the year 2008, the company took an impairment on investment in its associates amounting to RM 30.189 million. This is a non-cash item. The company's long term borrowings continue to shrink yearly.
Despite good positive FCF and the company having a large amount of idle cash, it did not pay a dividend last year. This dividend cut is certainly not minority investor friendly. Ouch!
Business Description:
Integrax Berhad. The Group's principal activities are owning and operating 2 port facilities, Lumut Maritime Terminal (port facility for dry and liquid bulk, break bulk and containers) and Lekir Bulk Terminal (port facility for dry and liquid bulk) comprising Lumut Port. Other activities include providing tuggage services, and extracting and smelting mineral ore. Operations are carried out in Malaysia.
Wright Quality Rating: LAD0
A quick look at Integrax
http://spreadsheets.google.com/pub?key=tpsmR43G59-htWV9PkRJUgQ&output=html
In the year 2008, the company took an impairment on investment in its associates amounting to RM 30.189 million. This is a non-cash item. The company's long term borrowings continue to shrink yearly.
Despite good positive FCF and the company having a large amount of idle cash, it did not pay a dividend last year. This dividend cut is certainly not minority investor friendly. Ouch!
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