By BERNAMA
AmBank (M) Berhad (“AmBank”) is issuing five new European style cash-settled structured call warrants (“CW”) over the ordinary shares of Amway (Malaysia) Holdings Berhad (“AMWAY”), Hartalega Holdings Berhad (“HARTA”), PPB Group Berhad (“PPB”), S P Setia Berhad (“SPSETIA”) and Tencent Holdings Ltd (“TENCENT”). The structured warrants will be listed for trading on 21 March 2013, via the market making method, with issue size of up to 100 million and tenures of approximately 12 months each. The Bursa Malaysia stock short names for the five CWs are AMWAY-CA, HARTA-CH, PPB-CG, SP Setia and TENCENT
“The FBMKLCI has rebounded strongly since dipping below the 1,600 level in mid February, backed by Malaysia’s firm corporate earnings for the fourth quarter of 2012. Companies such as Hartelega Holdings Berhad, PPB Group Berhad, S P Setia Berhad and Amway (Malaysia) Holdings Berhad have shown resilience in their latest quarterly corporate earnings and sales by posting gains versus the previous year even in the face of the current challenging economic environment.
Therefore, for AmBank’s upcoming tranche of warrants, AmBank will be offering call warrants over the stock counters of Hartalega Holdings Berhad, PPB Group Berhad, S P Setia Berhad and Amway (Malaysia) Holdings Berhad. Besides that, AmBank will also be offering a call warrant over Hong Kong listed Tencent Holdings Ltd, the largest listed internet company in China with close to 800 million users in China for its internet messaging software. Tencent Holdings Ltd. is a component member of the benchmark Hang Seng Index and was also recently added to the FTSE China 25 Index,” said Ms Ng Ee Fang, Director/Head, Equity Derivatives, AmInvestment Bank Berhad.
Malaysia is among the top ten markets in the world for Amway’s products together with other major markets such as United States, China and Japan. AmBank’s CW on AMWAY is priced at 15 sen each with gearing of 4.18 times.
Glovemaker HARTA continues to be bullish on the nitrile glove market where it expects global demand for nitrile gloves to continue to grow at over 20% per annum. On its expansion plans to meet rising demand, HARTA’s Plant 6 is due to be completed by mid-2013 with ten production lines. Plant 6 is expected to boost production by 30% or 3.9 billion pieces per annum while HARTA’s massive Next Generation Glove Manufacturing Complex in Sepang will see total production tripling to 38 billion pieces by 2022. HARTA produces predominantly nitrile gloves with its current product mix at 93% nitrile gloves to 7% latex gloves. AmBank’s CW on HARTA is priced at 15 sen each with gearing of 4.02 times.
PPB’s net profit for 2012 came in at RM842.2 million as its share of profits in 18% owned associate Wilmar International declined to RM712.5 million. Its Massimo bread sub-division registered a positive performance and broke even after only one and a half years of operation. This was achieved even with its bread products being sold at promotional prices. For the next two years PPB is allocating some RM590 million as capital expenditure with about half of it for the grains trading, flour and feed milling division. Another RM183 million would be used to further develop and expand its cinema business under the GSC brand, RM57 million for the bakery division and the remainder for other divisions. AmBank’s CW on PPB is priced at 15 sen each with gearing of 5.88 times respectively.
Property developer SPSETIA received strong demand for the initial launch of its Battersea Power Station project in London. The initial launch of 800 units in January 2013 was fully booked by investors from Malaysia, Hong Kong, Singapore and London. SPSETIA also recently entered into a joint venture to develop close to 200 acres of land in Gombak. The project will involve the conversion of a golf course to residential developments with estimated gross development value of about RM1.2 billion. SPSETIA is targeting to achieve RM5.5 billion worth of property sales for the current financial year and has already achieved RM1.2 billion in sales up to January 2013. AmBank’s CW on SPSETIA is priced at 15 sen each with gearing of 5.58 times.
TENCENT is a market leader in China for internet media and content. It operates the second most visited internet portal in China as well as hugely popular social networking websites and casual gaming portals. TENCENT’s QQ internet messaging software is actively used by close to 800 million users in China which makes it the largest online community in the country. TENCENT’s mobile communication and private social networking app, Weixin or WeChat, which was launched in 2011 has proven to be extremely popular and well received with 300 million registered users to date. The mobile communication app offers tremendous upside earnings potential for TENCENT via monetization of mobile advertising, gaming and e-commerce. AmBank’s CW on TENCENT is priced at 15 sen each with gearing of 7.19 times.
This offer is aimed at sophisticated traders who want to trade on the direction and volatility of AMWAY, HARTA, PPB, SPSETIA and TENCENT. The new CWs have gearings ranging between 4.02 and 7.19 and are targeted at investors who want to enjoy leveraged exposure to the underlying stocks.
Source: AMBANK GROUP
-BERNAMA
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