Stocks In Focus MY AIRASIA (5099), MINETEC (7219), STAR (6084)– 20/11/14
Stocks In Focus MY (AirAsia, Minetech Resources, Star Publication) – 20/11/14
AirAsia 3Q14 Earnings Narrow To RM5m
For the third quarter ended 30 September, AirAsia reported a 84.8 percent fall in net profit to Rm5.4 million, despite revenue edging up 2.9 percent to RM1.3 billion.
The increase in top line was attributable to higher passenger numbers and unit passenger revenue, while the decline in bottom line was due mainly to the group’s affiliate Thai AirAsia, which recorded an operating loss of THB420 million (Rm43 million).
For the nine-month period, AirAsia’s turnover and earnings grew 2.4 percent and 157.9 percent to RM3.9 billion and RM512.3 million respectively.
Significance: In a separate report, AmResearch stated 3Q14 should mark the bottom for the group’s earnings and results are likely to show share recovery in the next two quarters due to cheaper fuel and better yield environment.
Minetech To Venture Into Gold Mining
Minetech Resources, whose core business is quarry mining, announced plans to pursue new mining projects, particularly gold mining in Indonesia.
The firm has signed a memorandum of understanding (MOU) with PT Gold Port Mineral, an Indonesian company which owns an offshore diamond and gold mining concession in Kalimantan.
PT Gold Port is the beneficiary to some mining concessions and is seeking a partner for technology transfer and also fund the initial commencement of operations. With the help of Minetech’s existing resources and expertise, the deal will be profitable for both parties.
Significance: The MOU is part of the company’s future plan to venture into new business activities abroad, to enhance its operations and revenue. The strategic collaboration allows both parties to penetrate the gold and mining works in Indonesia.
Star Publication 3Q14 Earnings Fall 22%
For the third quarter ended 30 September, Star Publications (Malaysia) posted a 6.4 percent and 22.1 percent decline in top and bottom lines, to RM247.2 million and RM 34.3 million respectively.
The weaker performance was attributable to lower income contribution from its print segment, due to lower advertising revenue, as advertisers exercised more caution and held back on spending due to weak consumer sentiments after the two Malaysia Airlines tragedies.
Other factors included economic uncertainties, the fuel price increase, increase in interest rate and the voluntary separation scheme (VSS) exercise to reduce the group’s headcount.
Significance: Going forward, the group expects advertising expenditure to remain soft and shared that it would intensify cost control measures, pointing out that there would be savings resulting from its VSS exercise and other cost control measures the group had undertaken which would maintain its profitability.
http://www.sharesinv.com
Stocks In Focus MY (AirAsia, Minetech Resources, Star Publication) – 20/11/14
AirAsia 3Q14 Earnings Narrow To RM5m
For the third quarter ended 30 September, AirAsia reported a 84.8 percent fall in net profit to Rm5.4 million, despite revenue edging up 2.9 percent to RM1.3 billion.
The increase in top line was attributable to higher passenger numbers and unit passenger revenue, while the decline in bottom line was due mainly to the group’s affiliate Thai AirAsia, which recorded an operating loss of THB420 million (Rm43 million).
For the nine-month period, AirAsia’s turnover and earnings grew 2.4 percent and 157.9 percent to RM3.9 billion and RM512.3 million respectively.
Significance: In a separate report, AmResearch stated 3Q14 should mark the bottom for the group’s earnings and results are likely to show share recovery in the next two quarters due to cheaper fuel and better yield environment.
Minetech To Venture Into Gold Mining
Minetech Resources, whose core business is quarry mining, announced plans to pursue new mining projects, particularly gold mining in Indonesia.
The firm has signed a memorandum of understanding (MOU) with PT Gold Port Mineral, an Indonesian company which owns an offshore diamond and gold mining concession in Kalimantan.
PT Gold Port is the beneficiary to some mining concessions and is seeking a partner for technology transfer and also fund the initial commencement of operations. With the help of Minetech’s existing resources and expertise, the deal will be profitable for both parties.
Significance: The MOU is part of the company’s future plan to venture into new business activities abroad, to enhance its operations and revenue. The strategic collaboration allows both parties to penetrate the gold and mining works in Indonesia.
Star Publication 3Q14 Earnings Fall 22%
For the third quarter ended 30 September, Star Publications (Malaysia) posted a 6.4 percent and 22.1 percent decline in top and bottom lines, to RM247.2 million and RM 34.3 million respectively.
The weaker performance was attributable to lower income contribution from its print segment, due to lower advertising revenue, as advertisers exercised more caution and held back on spending due to weak consumer sentiments after the two Malaysia Airlines tragedies.
Other factors included economic uncertainties, the fuel price increase, increase in interest rate and the voluntary separation scheme (VSS) exercise to reduce the group’s headcount.
Significance: Going forward, the group expects advertising expenditure to remain soft and shared that it would intensify cost control measures, pointing out that there would be savings resulting from its VSS exercise and other cost control measures the group had undertaken which would maintain its profitability.
http://www.sharesinv.com
