PENNY STOCK ALERT

DRB-HICOM BHD

DRB-HICOM Berhad, through its subsidiaries, invests in the automotive, property and construction, services, and defense sectors primarily in Malaysia. The company engages in the manufacture, assembly, pre-delivery inspection, distribution, and sale of motor vehicles, motorcycles, and special purpose vehicles, as well as sale of related spares and services. It also involves in the construction of integrated townships and industrial parks; and development of retail, commercial, and residential properties. In addition, the company provides various services, including solid waste management, financial, automotive maintenance, vehicle inspection, leisure, and information technology services. Additionally, DRB-HICOM involves in assembling, body building, and fabricating military vehicles, as well as providing auxiliary services, including military vehicles repair, maintenance, retrofitting, and refurbishment. Further, the company engages in the Islamic banking business, as well as offers related financial services, including fund management and Islamic venture capital services; and underwrites general and life insurance products. It also involves in the cultivation and marketing of rubber and oil palm; management of projects, as well as rental of properties; operation and maintenance of a power plant; manufacture and supply of die cast parts, thermo plastic and thermo setting products, and plastic injected parts and plastic injection moulds; and importation, distribution, and servicing of industrial, marine, and engineering products. In addition, the company operates as a superintendent of airport operation systems, as well as provides related ground handling, in flight catering, cargo handling, and warehousing space services. DRB-HICOM is based in Shah Alam, Malaysia.

OPEN 1.21		PREVIOUS CLOSE 1.19
DAY HIGH 1.23		DAY LOW 1.19
52 WEEK HIGH 08/7/09 - 1.33		52 WEEK LOW 04/13/09 - 0.76
MARKET CAP 2.3B		AVERAGE VOLUME 10 D 4.9M
EPS TTM 0.07		SHARES OUTSTANDING 1.9B
EX-DATE 03/10/10		P/E TTM 18.0x
DIVIDEND 0.04		DIVIDEND YIELD 3.33%

DRB-HIcom is poised to become a sports car manufacturer after sealing a pact with the UK-based
Potenza Sports Car Ltd. DRB-HICOM and Potenza plan to produce a range of models in Malaysia
for the domestic and Asia-Pacific markets. Potenza is the designer and manufacturer of the niche
Westfield and GTM brands of sports cars. The company has sold over 10,000 cars since 1983 to
Europeans and other driving enthusiasts around the world. DRB-HICOM MD Datuk Seri Mohd
Khamil Jamil said that it could become the exclusive importer, manufacturer and distributor of the
Potenza sports cars. "The vehicles will include electric and the hybrid variants in the right-handdrive
markets of the Asia-Pacific region," Khamil said. At the break, the stock rose 1sen to RM1.21.

IOI thinks palm oil price can hit RM3,000 soon

IOI Corp Bhd (1961)anticipates palm oil prices to hit RM2,800 to RM3,000 a tonne in the next few months as it braces for lower output.
As one of the most efficient planters and biggest palm oil producers in the country, IOI's price forecast is highly awaited by vegetable oil traders and analysts around the world.

IOI executive chairman Tan Sri Lee Shin Cheng said that he expected the group's current-year palm oil output to fall as much as 8 per cent to around 715,000 tonnes.

In the last financial year ended June 30 2009, IOI managed to squeeze 777,310 tonnes of palm oil from its 80-odd estates.

"I still hold the forecast at between RM2,800 and RM3,000 per tonne because of localised weather phenomenon like El Nino that affects output. There's also the labour shortage issue - workers come and go," Lee told reporters on the sidelines of the official opening of Hong Leong Bank's branch in Bandar Puteri Puchong, Selangor, yesterday.
At an economic conference two months ago, when palm oil was trading at around RM2,400 a tonne, Lee said he was optimistic of prices trending upward to between RM2,800 and RM3,000 a tonne.

The price did rise to a high of RM2,700 a tonne, but has fallen rapidly in the last four weeks.

When asked why, Lee replied: "The US dollar has weakened against a stronger ringgit and that has dragged palm oil prices (lower) to a certain extent."

According to Bank Negara Malaysia's website, US$1 is at RM3.21 currently, from RM3.45 a month ago.

Lee does not expect the palm oil price to continue falling.

"Demand for palm oil is very strong all around the world, especially traditional markets. Palm oil is the best vegetable oil in the world. It is nutritious and far more flexible in its applications," he said.

Yesterday, third-month benchmark crude palm oil on the Bursa Malaysia Derivatives market traded RM39 lower to close at RM2,500 a tonne.

- BUSINESS TIMES

DJ Asian Crude Palm Oil Ends Down On Profit-Taking, Crude Oil

KUALA LUMPUR (Dow Jones)--Crude palm oil futures on Malaysia's derivatives exchange ended lower Thursday as investors took profits on lower crude oil and an improved supply outlook for March and April, trade participants said.

The benchmark June contract on the Bursa Malaysia Derivatives ended down MYR39 or 1.5% at an intraday low of MYR2,500 a metric ton.

The June contract had breached key resistance at MYR2,530, then MYR2,510 in late trade, making the market vulnerable to further declines in the next trading session, a senior trading executive based in Kuala Lumpur said.

"Investors were scurrying to take profits after prices weren't able to rise above MYR2,555/ton and it's likely prices may ease to around MYR2,460, as there are many bearish factors weighing on prices," he said.

The rally in the ringgit, which has gained 6.6% so far this year, was the "biggest impact to the decline in palm oil prices," said Lee Shin Cheng, executive chairman at IOI Corp. The currency's strength weighs on palm oil prices as it makes CPO, a key feedstock for refiners, more expensive and narrows their profit margins.

Lee also expects CPO output at its company to decline 8% in the 2010 fiscal year due to a labor shortage at its estates and an El-Nino weather condition last year that reduced rains and sapped palm fruit yields.

Palm production at IOI, the second largest listed palm producer in Malaysia, totaled 3.63 million tons in the 2009 fiscal year, according to the company's 2009 annual report.

Also weighing on palm prices is improved palm output in April, which may boost supply of the oil in the country, trade participants said.

March output is likely to have risen as well, between 7%-16% on month, as February was a shorter month and harvesting activity had spilt over to March, plantation company executives and traders said.

February CPO output totaled 1.16 million tons, according to the Malaysian Palm Oil Board.

The government-backed MPOB is scheduled to release March export, production and inventory data Monday.

In the cash market, palm olein for July/August/September shipment traded at $807.50/ton and $810/ton, May/June at $812.50/ton, and October/November/December at $795/ton, free-on-board Malaysian ports, a Singapore-based trading executive said.

Cash CPO for prompt delivery was offered MYR10 lower at MYR2,560/ton.

Open interest on the BMD was 78,915 lots, up from 78,794 lots Wednesday. One lot is equivalent to 25 tons.

Some 17,847 lots were traded versus 12,606 lots Wednesday.

Closing BMD CPO futures prices in MYR/ton at 1000 GMT:

Month      Close    Previous   Change    High    Low 
Apr 2010   2,550    2,572      Down 22   2,578   2,550 
May 2010   2,520    2,550      Down 30   2,563   2,520 
Jun 2010   2,500    2,539      Down 39   2,555   2,500 
Jul 2010   2,495    2,530      Down 35   2,545   2,495 

-By Shie-Lynn Lim, Dow Jones Newswires; +603 2026 1233;
shie-lynn.lim@dowjones.com