online casino bluebook - online casino gambling guide, to top ranked online casinos and reviews of over 200 gambling related websites. www.onlinecasinobluebook.com also host a casino forum, blog, and casino news articles
PETALING JAYA: LCL Corp Bhd yesterday saw more board changes with five non-executive directors resigning.
In a filing with Bursa Malaysia, the interior fit-out company said Chiam Tau Meng, Datuk Emam Mohd Haniff Emam Mohd Hussain, Datuk Abd Wahab Harun, Tan Sri Abdul Halim Ali and Tan Sri Ahmad Fuzi Abdul Razak had resigned.
The first four also resigned from the audit committee.
On Nov 6, Paul Lim Pang Kiam was appointed chief executive officer after managing director Low Chin Meng was redesignated executive chairman, replacing Datuk Syed Ariff Fadzillah Syed Awalluddin who resigned. Executive director Pang Yew Foh also resigned from his position on the same day.
Four days later, three new non-executive directors were appointed – Chong Kok Keong, John Tong Hock Sen and Leong Choon Meng.
--------------------------
That the first four also resigned from the AUDIT committee...
By Nigel Foo
From our recent visit, we gather that prospects are still poor in Dubai and collection remains a challenge. We are, therefore, jacking up our FY09 forecast loss from RM13.1m to RM51.1m. LCL is likely to continue bleeding in FY10 and the magnitude of the loss depends on whether collection shows a strong recovery. In view of the likely losses over the next few quarters and the tough conditions in Dubai, we now value the stock at a 60% discount to the construction sector's 1.8x P/BV instead of 50%. This gives us a revised target price of RM0.54, down from RM0.68. LCL remains an UNDERPERFORM with the potential de-rating catalysts being i) continuing collection problems, ii) high net gearing of 3.6x and iii) share sales by major shareholders including Dato' Low who sold close to 12% of the company last week.
0812 GMT [Dow Jones] LCL Corp (7177.KU) down 5.6% at 59 sen in heavy volume; selling pressure mounts as investors react negatively to departure of two board members recently, resignation of five non-executive directors last week. "We read this as a sign of major changes to LCL's management and operations in the coming quarters," says CIMB, dubbing departures as negative surprise. Also, fundamentally, interior fit-out concern fairing poorly due to exposure to Dubai; "prospects are still poor in Dubai and collection remains a challenge," CIMB says. "The board room changes are troubling. Investors have turned jittery over these developments while the company's poor prospects is an added weight," says one dealer. (VGB)
“However, several of the new members appointed have finance background and are believed to be tasked to par down the company’s debt level,” he told StarBiz, noting that for the first three quarters, LCL’s earnings were depressed by its Dubai operations. The company faced low billings because of the doldrum in the Dubai property market, which weakened cash flow to cover interest payments, he said, adding that LCL’s gross debt was about RM400mil.
This month, Low sold down his shares in several transactions to about 18.8% from 30.8% previously, while in October, Tan Sri Abdul Halim Ali and Mohd Akib Abd Rashid disposed of their entire stakes in the open market. A bank-backed research house said the selldown “will deal another blow to investor confidence,” although the collapse of Dubai’s property market in the fourth quarter of last year had hit almost all multinationals and sub-contractors.
LCL’s share price has remained in the doldrum due to the weak sentiment. Yesterday, it closed 5.5 sen lower at 57 sen. Low was overseas and could not be reached for comments.
LCL loses Marina Bay fit-out contract
Written by Financial Daily
Wednesday, 18 November 2009 10:34
KUALA LUMPUR: LCL CORPORATION BHD [] has terminated its S$43.1 million (RM104.7 million) contract at the Marina project in Singapore and has accepted S$1.86 million as the settlement sum from Marina Bay Sands (MBS) Pte Ltd.
In a statement yesterday, LCL said its subsidiary LCL Furniture (S) Pte Ltd (LCLS) had on the previous day inked the settlement agreement with MBS, whereby the parties mutually agreed to the termination of LCLS as the trade contractor for the interior fit-out packages, with retrospective effect from Nov 13.
LCL said the development was due to “inconceivable differences arising from financial commitments with MBS”.
This article appeared in The Edge Financial Daily, November 18, 2009.
By Nigel Foo
Dubai World's announcement of a six-month debt standstill has knock-on effects for LCL which is already facing much difficulty in collecting from its clients in Dubai. With a net gearing of 3.6x, LCL cannot afford further delays in collections. Its share price has halved since end-Oct. Given the worsening conditions in Dubai, we now value the stock at a 75% discount to the construction sector's 1.8x P/BV instead of 60%. This gives us a revised target price of RM0.34, down from RM0.54. LCL is likely to announce continued losses for 3Q this evening. We reiterate our UNDERPERFORM recommendation, with the potential de-rating catalysts being i) worsening newsflow and continuing collection problems in Dubai, ii) LCL's high net gearing and iii) further selldowns by its major shareholders.
