CIMB Report - 04 Dec 2007

What’s on the table

China Energy (S$1.17) - Moving up the value chain China Energy is expanding its methanol production capacity by three-fold by 3Q08. We estimate this could increase its self-reliance for methanol to 86% for its Shandong and Zhangjiagang DME plants. Coupled with rising DME prices and softer methanol prices, we expect gross margins to improve to 29-39% in FY08-09, from 17-21% previously. Revisions have been made to DME expansion plans, with a 400,000-tonne p.a. increase in capacity but 6-12-month delay in completion. We have raised our FY07-09 EPS forecasts by 6-63% to factor in higher DME ASP and gross margin assumptions. Accordingly, our target price climbs to S$2.12 from S$1.73, still based on a 30% discount to our new DCF valuation (WACC 13%, LTG 2%) of S$3.03 (S$2.48 previously). We believe the implied 7.5x CY09 P/E is undemanding, given its 3-year EPS CAGR of 79%. Maintain Outperform.

Quick Takes

• Tiong Woon Corporation (S$0.895) - Business on track, Middle East kicks off News of the Day
• Key proposals unveiled to stimulate social entrepreneurship
• Aussie trade deficit widens to A$2.98bn
• Keppel Offshore & Marine launches R&D centre
• SGX beefing up tech division with two key appointments
• Indonesian palm oil firm First Resources launches offer
• Third Ave sets up shop in Singapore

OCBC Report - 04 Dec 2007

Man Wah Holdings Ltd: Cheers to China's housing boom

Summary: We visited Man Wah Holdings Ltd's (MWH) plant in Huizhou Daya, PRC last week. It has completed the construction of its phase 2 capacity expansions, which are expected to be operational in Dec 2007. This is timely to support MWH's strategy of growing its China business. MWH's PRC sales grew 142.6% in 1H08, and it plans to grow this segment by setting up more Cheers stores and growing its same store sales. MWH is also on the lookout for potential acquisitions of smaller furniture manufacturers in the Shanghai region to enhance its efficiency in penetrating the central and northern regions of the PRC. The housing boom in China, coupled with expected margin improvements arising from economies of scale from its enlarged capacity, put MWH on track for continued growth. We maintain our FY08 revenue and net profit forecasts of HK$1.4b (+64.1% YoY) and HK$164.4m (+81.2% YoY), respectively. Our fair value estimate remains at S$0.99, pegged at 9x blended FY08/09 PER. Maintain BUY. (Lee Wen Ching)

For more information on the above, visit www.ocbcresearch.com for detailed report.

NEWS HEADLINES

• Keppel Corporation's wholly owned subsidiary Keppel Offshore & Marine Limited celebrated its fifth anniversary with the unveiling of Keppel Offshore & Marine Technology Centre - an S$150m R & D centre, and an order book of over S$13b.
• China Energy Ltd plans to triple its Methanol production capacity by end-2008 from 250,000 metric tons per annum (mtpa) to 750,000 mtpa, bringing total capex to US$443m.
• Genting International has taken a 9.4% stake in the Rank Group, a UK-based casino and Mecca bingo firm.
• Singapore Exchange Limited has strengthened its technology efforts with two key appointments for its operations & technology group.
• The Monetary Authority of Singapore has warned local banks of key short term risks to their profitability, stemming from a spike in volatility of financial asset prices or a sharp US economic slowdown.
• GuocoLand Ltd has completed the en-bloc acquisition of Leedon Heights for S$835m.
• KTL Global (rigging equipment provider), Soon Lian Holdings (aluminium alloy products supplier) and First Resources (crude palm oil producer) are set to launch their IPOs amid volatile market conditions.

Genting betting on Rank Group
By KATHY FONG

PETALING JAYA: The Genting group seems to have taken a bigger bet on the good prospects of the British gaming industry.

Genting Bhd subsidiary Genting International Plc has bought a 9.38% stake in Rank Group plc, the second biggest casino operator in Britain.

This is the third acquisition that Genting has made in Britain after Stanley Leisure, which is now called Genting Stanley (the biggest casino owner in Britain), and London Club International, which it has already divested to Harrah's Entertainment Plc.

Genting International is in the midst of building its S$5.75bil Sentosa integrated resort in Singapore.

Analysts said the acquisition showed Genting was banking on the liberalisation in the British gaming industry that would permit Las Vegas-style casino to be built to attract visitors from the euro land.

In an announcement to the Singapore Stock Exchange, Genting International said the acquisition, which was conducted through its wholly-owned unit, Palomino Ltd, was financed by internal funds and S$71.2mil from the net proceed of the rights issue that was completed in September.

However, it did not disclose the value of the purchase.

Rank Group has a paid-up capital of 390.53 million shares. An equity interest of 9.38% represents 36.63 million shares. At the price of 111 pence at press time, the stake would cost about £40.66mil (RM282mil).

Analysts estimated the cost could be lower because Rank Group, which is listed on the London Stock Exchange, actually tanked to a historic low of 77 pence last month as investors dumped the shares amid concerns over its profitability.

The counter only regained some lost ground recently when speculation on it being the takeover target was rife.

Several names were said to be keen on acquiring the group, which also operates bingo clubs plus on-line gaming and bookmaking services.

According to Bloomberg, Rank Group, indeed, had given warning that it would miss its forecast after the government's smoking ban drove away its gamblers and new laws forced the removal of some electronic gaming terminals that offered higher jackpots.

Genting International said the share purchase was not expected to have any material impact on the company's earnings and net tangible asset.

Holding a 9.38% stake in the Rank Group appears to be passive investment that may not generate much contribution.

However, some analysts did not rule out the possibility that Genting would raise its stake further in the future like what it did in Genting Stanley.

Analysts noted it was a natural move for Genting to buy more gaming assets.

But such acquisition might not bear fruit in the short term because the picture on the liberalisation in the British gaming sector seems rather patchy for the time being.

Semb E&C wins $463m MRT deal

SEMBAWANG Engineers & Constructors has won a $463 million contract to build the Downtown Line's Bayfront MRT station in Marina Bay.

The Land Transport Authority yesterday said it awarded the civil works contract to Sembawang E&C in atender and the contract includes the architectural, civil and structural works for the station as well as two pairs of tunnels.

Bayfront is one of the six stations in the first stage of the 40 km Downtown Line, which will connect thenorth-western and eastern parts of Singapore to the Central Business District and Marina Bay. The station will serve as an interchange station for the Circle and Downtown lines with the station's twin-stacked tunnels connected to the Marina Bay andLandmark stations.
The Downtown Line will also be a strategic transport link to support the Marina Bay area and its developments, such as the integrated resort, the financial centre and the Gardens by the Bay.
The line will run largelyunderground with a fully automated system and it will be built in three stages. The first stage is 4.3 km long and will link the East-West MRT Line's Bugis station to the North-East Line's Chinatown station. LTA says physical works will begin inend-2007 and completion is expected in 2013.

Sembawang E&C is one of the largest engineering and construction companies in South-east Asia and is currently involved in the construction of three stations on the Circle Line, as well as thefit-out works for another.

'Bayfront will be one of the first stations to open in the Downtown Line,' said Alwyn Bowden, president and CEO of Sembawang E&C. 'Being a fast-paced project, our schedule will require 24-hour work days for thestation to be completed in time for the opening of Marina Sands IR.'

Yangzijiang Shipbuilding Holdings

Wins shipbuilding contracts worth US$204

Shipbuilder Yangzijiang has won US$204 mln of shipbuilding contracts for four vessels in the month of November.

The contracts are to be delivered before February 2012.The company has secured US$3.7 bln worth of contracts from January to November and it has US$5.7 bln worth of contracts on hand.

The stock closed down at S$1.94 today. Reuters consensus has a 'Buy' call on the stock with a target price of S$2.45.

Tiong Woon Corp. Holdings

Incorporates in Saudi Arabia

Tiong Woon Corp has obtained the license to incorporate in Saudi Arabia. The subsidiary, called TWC Arabia Ltd, has a paid-up capital of 500,000 Saudi Riyals which is funded by Tiong Woon internally.

TWC Arabia will provide installation, lifting, maintenance services for oil, gas, petrochemicals and other electric power related projects. It will also provide marine transportation services.

Analysts surveyed by Reuters Estimates have an 'Outperform' call on Tiong Woon’s stock, with a target price of S$1.40.

Genting builds up 10 per cent Rank stake

MALAYSIAN company Genting International has taken a ten per cent holding in Grosvenor casino and Mecca bingo operator Rank.

Genting, which runs the Stanley Casino chain, built up the stake in the struggling company over several days last week, fuelling speculation that it has future plans to take over Rank.

The move comes just a week after UK company Rank rejected an approach by Ceaser's Palace casino operator Harrah's Entertainment. There has also been speculation that it is being circled by other predators such as the Gouco Group and Ladbrokes.

Interest in Rank has grown after its share price collapsed due to the impact of the smoking ban, which has led to customers leaving the premises to smoke between main stage games rather than playing interval games or fruit machines.

The move by Genting, which runs Edinburgh's portfolio of Stanley Casinos, including their new outlet at Fountainpark, means that shares in Rank are set to soar from their current value of 100.5p.

Analysts believe that the Malaysian company could use their 10 per cent holding to pursue a possible takeover of Rank, although the stake building may simply be an attempt to block a rival offer.

Rank-Genting

Rank went the right way though following confirmation this morning that Genting, the Malaysian owner of Stanley Casinos, has upped its stake in the embattled gaming operator to 9.38%. The news comes amid speculation that Rank is being circled by predators including Harrah’s Entertainment, the American owner of London Clubs International (LCI), Guoco Group, the Singapore company behind Thistle Hotels, and Ladbrokes, the bookmaker.

联明将配售3500万新股

联明集团(Lian Beng Group)计划以每股0.68元的价格，配售3500万股新股，筹集约2380万元。其中大约1000万元将用来偿还高文房地产发展项目的银行贷款，其余的则融资集团的房地产发展业务。
　　
有关配售价格，比联明集团在11月28日、29日的一日半加权平均价(每股0.6832元)低了大约0.47％。

这个配售计划完成后，联明集团截至2007年5月底的每股净利和每股净有形资产值，将由15.10分和0.71分，调整至18.46分和0.66分。

另外，联明集团主席兼董事经理王邦益也向交易所呈报，他将以每股0.68元的价格，将手头上持有的1000万股股票，同样委托金英证券代为配售。

HIGHLIGHT - Resorts World at Sentosa adds new attractions

In anticipation of the tourism boom for Singapore and Asia in the coming years, Resorts World at Sentosa (RWS) is adding six extra attractions to up the ante on its destination appeal.

Among the new draws are two rides at Universal Studios Singapore. One of the rides, a coaster, is an addition to another coaster in the original plans to make up a pair. This improved attraction now pits two different roller coasters — one seated and one suspended — against each other in aerial combat. A high-speed launch and heart-pumping near-misses make these coasters unlike any other in the world. The second ride is perennial favourite E.T. Steven Spielberg's timeless classic is brought to life in a fantasy attraction that captures the charm of childhood and the thrill of flying on an intimate scale that's sure to delight grandkids and grandparents alike.

There will be four new shows featuring multi-media, light and sound effects, on top of the three public performances that RWS proposed in its bid for the Integrated Resort in 2006. Four-time Emmy award-winner Jeremy Railton will be designing several of these acts.

As a result of these enhancements, RWS has revised its budget from S$5.2 billion to S$6 billion. This new budget also takes into account contingencies, improvements made to hotels and resort design, as well as the transportation and access infrastructure in the Resort.

PROGRESS UPDATE

Construction progress is on track for RWS to open in early 2010. Sixty per cent of excavation works and 40 per cent of reclamation works have been finished to date. The substructure for the 4,100-lot basement carpark is in the process of being laid. Since the construction of the four jetties, huge barges have been transporting materials and equipment to and from the site. There are currently around 500 workers from China, India, Bangladesh and Thailand working and living on-site. RWS expects to have up to 8,000 pairs of hands on deck at the peak of its construction in the later part of 2008. Work is on-going 24/7 to ensure that the Resort will be ready for opening.

View our webcast for more details.

http://www.resortsworldatsentosa.com/video/video2.html

OCBC Report - 03 Dec 2007

Oil & Gas Equipment and Services

Sector: Remains an OUTPERFORMSummary: While oil & gas stocks have outperformed in 2007, we are maintaining our OUTPERFORM rating on this sector for 2008. With the current investment climate, we view the upside potential as greater than the downside risks from lower energy price. We remain bullish on oil & gas stocks that focus their businesses on deepwater exploration services equipment such as Keppel Corporation [BUY; S$17.10] and Ezra Holdings [BUY; S$4.02]. We believe Rotary Engineering [BUY; S$1.60] is also in a good position to garner more contracts from the Middle East in the medium term. We are optimistic on oil & gas services-related stockists such as Aqua-Terra [BUY; S$0.70] and SSH Corporation [BUY; S$0.60] as we believe the true value of these stockists has not been fully priced in. With the recent market sell-down, this presents a good opportunity to re-enter the market, riding on the still strong demand growth in this sector. (Serene Lim)

For more information on the above, visit www.ocbcresearch.com for detailed report.

NEWS HEADLINES

• United Engineers Limited has been awarded a new Built-to-Suit project to build an ICT hub at the Changi Business Park, by the Jurong Town Corporation. Development cost is estimated at S$280m.
• STX Pan Ocean Co Ltd has secured a contract from the Middle East to construct four chemical tankers for S$384.7m, which brings its 2007 orders to US$9.63b.
• Equation Corp Limited has terminated its plans to build a solar film manufacturing plant in Singapore, due to its inability to raise enough funds amid the recent volatile market condition and sub-prime crisis.
• Asiatravel.com Holdings Ltd posted a 37.2% YoY gain in FY07 net profit to S$4.5m and a 23.3% increase in revenue to S$70.5m, due to robust demand for hotel rooms in its core Asian markets.
• Dayen Environmental Limited will raise about S$8.2m via a share placement of 22m new shares (S$0.38 each) to American Orient Capital Partners (Singapore), for its overseas expansion plans and working capital needs.
• Lian Beng Group Limited is placing out 35m new shares (S$0.68 each) to discharge a bank bridging loan and finance its property development business.

CIMB Report - 03 Dec 2007

What’s on the table

Hong Leong Asia (S$3.40) - Best of both worlds HLA offers earnings visibility from domestic growth cycles in both Singapore and China. This should insulate its earnings from macro uncertainties facing the global economy. HLA’s Building Materials Group (BMG) is a beneficiary from Singapore construction boom. Outlook is bright going into 2008 with sustained ready-mix concrete volume growth from commencement of Marina IR deliveries, en-bloc construction projects and large-scale projects, such as BFC. Xinfei offers exposure to China’s rising consumerism in third and fourth-tier cities. In addition, Xinfei will be benefiting from a further 30% capacity expansion in 2008. Meanwhile, Yuchai has turned around convincingly with strong pick-up in volumes and significant product mix improvements. Maintain Outperform and sum-of-the-parts target price of S$5.54. Valuations at 9.9x CY09 P/E appear attractive relative to its 3-year core EPS CAGR of 48%.

News of the Day

• 'Iron Lady' Chan wins symbolic election in HK
• HK's Nov PMI jumps to 11-month high
• Singapore property sales set for big drop in Q4
• Genting buys stake in rival Rank
• SCP director to become non-exec chairman in Dec
• Catalist rules tougher than AIM's to protect investors
• Hong Kong tycoon Li Ka-shing invests US$60m in Facebook
• New video game giant created by Vivendi-Activision
• Airbus mulls plants in US, Russia

FIRST STANLEY, NOW RANK

Malaysian giant Genting buys 10 percent of Brit gambling group

With the UK gambling industry still buzzing over reports that Rank plc had rejected a deal proposed by American gambling behemoth Harrah's Entertainment, The Times revealed over the weekend that the massive Malaysian gambling corporate Genting had secretly acquired a 10 percent stake in Rank.

Genting, which has extensive gambling businesses across Asia and in the UK, is understood to have taken the stake as a preemptive move against any rival bid for Rank.

Just last week (see previous Online-Casinos.com/InfoPowa report) it emerged that Rank had rebuffed an approach from Harrah’s Entertainment, which wanted to trade part of its UK business, London Clubs International, for a 28 percent stake in Rank. And other gambling groups are showing signs of interest, says The Times, naming Ladbrokes as a potential bidder, as is Aspers, a joint venture between Damian Aspinall and Australian gambling tycoon James Packer.

Genting already has extensive UK interests. Last year it bought Stanley Leisure for GBP 639 million, making it the largest casino operator. It had been a long-standing investor in London Clubs International before the Harrah’s takeover. The most recent quarterly accounts of Genting International revealed it had decided to write down the value of the Stanley business by GBP 152 million.

A combination of anti-smoking laws, taxation and uncertainty on the UK government's next move has had a depressing effect on the gambling and leisure business in Britain this year, as Prime Minister Gordon Brown has apparently backed away from a plan to deregulate the sector and allow the construction of new, larger casinos.

Rank shares have fallen by more than half in the last year, and underperformed the FTSE All-Share index by 64 percent in the same period.

But last week's events provided a resurgence of interest from investors, and the stock was among the best-performing on the London stock market, closing up 25 percent.

The appeal of the Rank shares lies in the relatively large share the group holds of the limited number of UK casino licences. There are 143 licences in the UK, of which Rank holds 45, though 12 of these are not presently in use.

主力的做庄过程

主力做庄一般经过以下几个阶段：进庄前的准备、建仓吸货、洗盘震仓、拉抬、整理、拔高、出货。这是个比较完整、标准的做庄过程，但不是所有庄股都做得这么清晰，主力常常省略其中的某些阶段，以使其操盘行为变得更为隐蔽。比如他可以进货后直接拉抬，目标位一到就出货。但无论如何，进货和出货总应该是有的。　　

1、进庄前的准备　　兵法上讲究“天时、地利、人和”，庄家投入巨额资金做庄，和行军打仗有很多相似的地方。天时，即指要选择一个合适的时机进场，比如当宏观经济由低谷初露启动迹象之时进场，就意味着日后对股价的操纵比较容易得到来自基本面及政策面的正面配合，顺势而为，做庄就容易成功。地利，即指要选择合适的个股，对该股进行深入的调研，并最好是取得该上市公司领导层的配合。人和，除了与上市公司的关系外，还有其他各方面关系都要协调好。比如当地政府的政策支持、金融机构的资金支持，新闻媒体的舆论支持等等。 　　

2、建仓吸货　　主力建仓吸货的方式和手法有很多：如打压吸货，底部温和吸货，次低位横盘吸货，震荡吸货，高位平台吸货等等，我们在后面几讲的内容中再做较详细的解说。 　　

3、洗盘震仓　　洗盘最主要的目的是提高市场平均持仓成本，把底部跟进的其他投资者清洗出局，换上另一批看多的散户。洗盘的位置一般在主力进货位上方不远，通常的形态是横盘震荡，但又跌不下去。我们常常利用主力的洗盘判断主力的仓位，市场满盘获利却又跌不下去，这是主力大量持仓的标志。也有些强悍的庄家喜欢采取狠砸猛打的方式洗盘，将股价打压到市场均价以下，并将所有传统技术指标打坏，这种洗盘方式对持股不坚定的散户投资者具有较大的杀伤力。 　　

4、拉抬　　主力吸货建仓的目的是为了实现低买高卖从中获得经济上的收益。洗盘之后，主力必然要做的就是拉抬股价，能拉到多高就拉到多高，然后在一个较高的价位套现出局。通常情况下，主力拉抬股价都要借助一些朦胧利好，以减轻拉抬过程中的抛压，并逐步吸引跟风盘进场帮助主力拉抬。 　　

5、整理　　整理是另一类的横盘，当主力已将股价拉抬到一定的高度，主力在此位置上停一下，让获利者在这个价位获利了结，换上另一批新多头，以有利于行情的继续上涨。在K线图上，这段整理通常表现为高位横盘的箱体，在箱底价位主力常常会采取一些护盘的动作，不让股价跌下来。 　　

6、拔高　　整理的目的就是为最后一次拔高做好准备，通常情况下，这次拔高主力操盘会表现得相当疯狂，并以高风险高收益为借口诱使短线投机客杀入。拔高的主要目的还在于为下一阶段的出货拉出价格上的空间。 　　

7、出货　　出货是关系到庄家做庄成败的关键的一个环节，相对来说，也是最难的一个环节。如果庄家顺利完成出货，获利必定十分丰厚。但通常情况下，庄家出货都需要反复进行数次炒作，才能最终完成全仓出货。 　　

在主力做庄的过程中，大量地使用消息和题材。主力吸货建仓阶段，必定空头气氛迷漫，市场上不会有关于该股的任何利好，时不时还会传来一些重大利空。在主力出货过程中，市场上就会有大量利好传闻，公众投资者因此纷纷看好该股，结果主力把希望留给了散户，把财富留给了自己。

庄家进驻的19个信号

1. 股价大幅下跌后，进入横向整理的同时，间断性的出现宽幅震荡。
2. 当股价处于底位时，如果多次出现大买单，而股价并未出现明显的上涨。
3. 分时图上忽上忽下，委买，委卖价格差距非常大。
4. 委卖大于成交，大于委买，价格上涨。
5. 近期每股成交股数超过市场平均每笔成交股数
6. 小盘股中经常出现100手的买盘，中盘股，300手。大盘股，500手
7. 3--5个月内，换手累计达到200%
8. 换手呈增加趋势
9. 原先成交极度萎靡，某天起，成交量逐步放大
10. 股价在低位整理时出现逐渐放量
11. 股价尾盘跳水，次日低开高走
12. 在5分钟走势图上经常出现以连串的小阳线
13. 股价低位盘整时，经常出现小十字线
14. 遇利空打击，股家反涨
15. 大盘急跌他盘跌，大盘下跌它盘跌，大盘横盘它微升
16. 大盘反弹时，它强劲反弹，且成交量放大
17. 股价每次回落的幅度明显小于大盘
18. 股价比同类股的价格坚挺
19. 日K线成缩量上升走势

RANK-GENTING

Malaysia`s Genting Builds Stake in UK`s Rank

Malaysian casino operator Genting has accumulated a significant stake in UK rival Rank , newspapers said on Sunday.

Rank, which owns the Grosvenor Casino chain, has been tipped as a takeover target since a recent profit warning hit its shares.

A ban on smoking and the forced removal of lucrative slot machines had sparked a sharp decline in its bingo business, while a surprise hike in taxes had hit casino profits hard.

Media reports and analysts have linked a string of names to a possible offer for the firm, including Ladbrokes and U.S. casino giant Harrah's Entertainment .

The Sunday Telegraph and Sunday Times said the stake comprised about 10 percent of Rank's shares, while the Mail on Sunday said the stake was over 3 percent.

Last month, Rank rejected an offer from Harrah's in which it offered to swap its own UK casinos for a 28 percent stake in the enlarged Rank, newspapers said.

Neither Rank nor Genting were immediately available to comment.

云顶收购对手朗克股权

(伦敦路透电)马来西亚赌场经营公司云顶集团(Genting)已累积英国竞争对手朗克集团(Rank Group)的相当股权。

拥有Grosvenor Casino连锁赌场的朗克集团，自最近发出盈利警讯后股价受挫，已成为被收购的对象。

禁止抽烟令和被逼移走角子机导致该公司的宾果游戏(Bingo)业务受到影响，而税务突然提高也严重打击到赌场的盈利。

媒体报道和分析师已提及可能提出献购该公司的名字，它们包括英国网络赌博公司Ladbrokes及美国的哈拉斯娱乐公司(Harrah’s Entertainment)。

媒体报道说，云顶集团买入朗克集团约10％的股权，也有些则报道说是超过3％。

朗克集团刚在上个月拒绝哈拉斯提出以其英国赌场的28％股权来交换扩大后朗克集团的股权。

朗克集团和云顶集团均不对报道置评。

Rank targeted by Malaysians
Helia Ebrahimi, Financial Mail2 December 2007, 11:30am

Britain's biggest casino operator Stanley Leisure, owned by Malaysian company Genting, has secretly built a stake thought to be more than three per cent in its beleaguered rival Rank

Genting, which entered the UK casino market in 2006, is thought to have swept in last week when the volume of shares traded in Rank was double normal daily levels.

It is thought the stake could herald a full bid for the casino and bingo hall operator, which has seen its share price nosedive in recent months after a profits warning following changes in gambling laws and the introduction of the smoking ban.

Shares hit an all-time low of 77¾p on November 22, but rose 25 per cent last week to close on Friday at 1001/ 2p, valuing the company at £392 million.

Rank is believed to have sent out 793 notices - which require owners of shares to declare their interest - to both Genting and Las Vegas giant Harrah's, which owns London Clubs International.

The companies have 48 hours to respond to the requests for information. If they have breached a three per cent limit they are obliged to inform Rank, which would then declare the information to the stock market.

However, it is possible the stake has been bought through contracts for difference, which is an indirect way of holding shares.

Genting owns Maxims Casino Club in central London while Stanley's 46 sites include Crockfords in Mayfair. Rank owns Grosvenor, which has 33 operations. If the operations were brought together they would exceed 50 per cent of the market, causing competition problems.

However, a source close to Genting, which itself last week disclosed a loss of almost £130 million as a result of a rise in gaming duty and the smoking ban, said: 'This problem is not insurmountable. The industry as a whole has been suffering and there will have to be consolidation.'

Malaysia's Genting builds stake in RankBy Ben Harrington and Iain Dey
Last Updated: 12:45am GMT 02/12/2007

One of Malaysia's richest families has bought a secret stake of more than 10 per cent in Rank, the bingo and casino operator. The shareholding, which was amassed in the past few days, could spark a bidding war for Rank. The UK operator has been tipped as a take­over target ever since a profit warning last month sent its shares crashing to their lowest level in seven years.

An announcement confirming the share purchase by Malaysia's Genting is expected as early as tomorrow morning. News of the stake is expected to flush out other potential bidders such as Harrah's, the Las Vegas-based gaming company, Ladbrokes and William Hill. BIL, the Singaporean company which already owns the Clermont Club, is another potential suitor.

Genting, whose interests span gaming to oil, is no stranger to the British gaming market. The group has gradually built up market share, buying London's high-end casino Maxims, which is in London's Kensington, and casino operator Stanley Leisure for around £700m last year.

Industry sources said last night Genting could be interested in merging its existing British casino operations with Rank's Grosvenor Casinos business.

However, the company has in the past also been prepared to buy large stakes in public companies and use them as bargaining chips in takeover situations. Genting bought a 28 per cent stake in London Clubs International (LCI) before it was approached last year by Harrah's.

The Malaysian conglomerate was founded by Lim Goh Tong, a self-made billionaire who died earlier this year. Born in China's Fujian province in 1918, Lim migrated to British-ruled Malaya in the late 1930s.

The entrepreneur made his first fortune in post-war Malaya by trading secondhand machinery for the country's tin mines and plantations. In the 1960s Lim decided to invest his entire fortune in developing a gaming resort in the mountains outside Malaysia's capital Kuala Lumpur.
He named the resort Genting, which means "on top of the clouds" and it now attracts gamblers from all over south-east Asia. On average 18m people visit the resort every year and its success has made him one of Asia's richest men.

Despite his wealth, Lim maintained a simple lifestyle and managed his companies in the manner of a traditional Chinese patriarch. The company is now run by his son, Lim Kok Thay, who is chairman, and Justin Leong, Lim's grandson who is head of strategic investments & corporate affairs.

Leong, who is in his late 20s, went to university in Oxford and is an old Harrovian. The young executive is believed to have been responsible for Genting's previous investments in Britain, although it is not clear whether he is behind the company's decision to buy a stake in Rank.

The Sunday Telegraph last week revealed that Rank recently rebuffed a proposal from Harrah's. Under the proposal, Harrah's would have injected its subsidiary LCI into Rank in return for a stake of around 28 per cent. Industry sources close to the situation said Harrah's and its new private equity backers, TPG and Apollo, could come back with another proposal.
Leisure and gaming groups such as Rank have had a difficult time of late as tougher legislation, in particular the smoking ban, has hit profits.

On Friday, Rank's shares closed at 100p, valuing the company at around £392m. However, analysts at City broker Evolution believe that if the company's profits were to recover it could be worth at least 175p a share within the next year and as much as 301p a share in two years.
Rank declined to comment.

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新加坡股市收盘走高；交易员预计将继续上涨
2007年11月30日 19:05

新加坡股市周五收盘连续第二个交易日走高，受美国联邦储备委员会(Federal Reserve, 简称Fed)可能进一步减息的迹象推动。

交易员预计，在技术性反弹的推动下，股市短期内可能进一步上涨。海峡时报指数收盘涨43.05点，至3521.27点，涨幅1.2%。市场成交量为19.9亿股，高于周四的17.7亿股。 某当地券商的交易商表示，由于股市已经连跌四周，短期内股指至少可回升至3,600点。