Stocks In Focus MY (Fajarbaru Builder Grp, Berjaya Land, SapuraKencana Petroleum) – 25/03/15
Fajarbaru Builder Clinches RM109 Million LRT Contract
Fajarbaru Builder, unit of Fajarbaru Builder Group (FBG) has clinched an RM108.97 million contract from Prasarana Malaysia to complete the remaining works of the Kelana Jaya light rail transit (LRT) project.
The contract is to undertake works comprising construction, completion, testing and commissioning of works at stations 1,2 and 3, traction power sub-stations A and B, which will include civil, as well as external works and other related jobs related to Package A of the project.
FBG also announced that the unit had received a mutual termination agreement on 23 March 2015 from Trans Resources Corp to mutually terminate the RM62.7 million nominated sub-contract, which the unit previously accepted for the works on 4 March 2011.
Significance: The contract is expected to contribute positively to the earnings and net assets of the group for financial years ending 30 June 2015 and 30 June 2016.
Berjaya Land Loss Widens Despite Increased Sales
Berjaya Land’s net loss widened by 35 percent to RM26.6 million from RM19.7 million for the third quarter ended 30 April 2015, on the back of a 6 percent increase in revenue to RM1.4 billion.
The group attributes the loss to Berjaya Sports Toto’s principal subsidiary company, Sports Toto Malaysia, which reported lower pre-tax profit resulting from higher prize payout.
The property development and investment business incurred higher operating expenses despite the higher property progress billings, while the hotels and resorts business reported lower pre-tax profit from lower revenue.
The improved revenue was mainly due to the group having higher number of draws, with HR Owen reporting higher car sales from new model laucnhes and the property development and investment business achieving higher property progress billings.
Significance : There were non-recurring impairment losses in the value of property, plant and equipment as well as certain investment properties which have caused earnings to be lower.
SapuraKencana Predicts Tough Times Ahead
SapuraKencana Petroleum (SapKen) saw its net profits tumble 61.7 percent to RM129.1 million in the fourth quarter ended 31 January 2015 compared to RM337.2 million previously.
SapKen expects the oil and gas (O&G) industry to remain challenging due to volatility in oil prices. However, they are confident with their continued focus on operational effectiveness, cost optimisation and agrgressive drive to win new businesses worldwide as they have operated and thrived in challenging markets.
The environment for the industry remains challenging in the short to medium term and the group will see pressures in both revenue and margins. However, SapKen sees a positive outlook on the long term, believing that the group had strong fundamentals to navigate this uncertain period.
SapKen’s earnings visibility was excellent, with a 27 percent revenue jump to RM2.4 billion from RM1.9 billion a year ago for 4QFY14, while net profit rose 31.8 percent to RM1.4 billion from RM1.1 billion for financial year ending 31 January 2015.
Significance: Analysts believe that SapKen’s prospects remained bright despite fluctuating oil prices, attributing it to seasonal weaknesses as the monsoon kicked in. With 14 contracts secured worldwide, adding about RM1.5 billion to the group’s order book, its order book remains strong.
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Fajarbaru Builder Clinches RM109 Million LRT Contract
Fajarbaru Builder, unit of Fajarbaru Builder Group (FBG) has clinched an RM108.97 million contract from Prasarana Malaysia to complete the remaining works of the Kelana Jaya light rail transit (LRT) project.
The contract is to undertake works comprising construction, completion, testing and commissioning of works at stations 1,2 and 3, traction power sub-stations A and B, which will include civil, as well as external works and other related jobs related to Package A of the project.
FBG also announced that the unit had received a mutual termination agreement on 23 March 2015 from Trans Resources Corp to mutually terminate the RM62.7 million nominated sub-contract, which the unit previously accepted for the works on 4 March 2011.
Significance: The contract is expected to contribute positively to the earnings and net assets of the group for financial years ending 30 June 2015 and 30 June 2016.
Berjaya Land Loss Widens Despite Increased Sales
Berjaya Land’s net loss widened by 35 percent to RM26.6 million from RM19.7 million for the third quarter ended 30 April 2015, on the back of a 6 percent increase in revenue to RM1.4 billion.
The group attributes the loss to Berjaya Sports Toto’s principal subsidiary company, Sports Toto Malaysia, which reported lower pre-tax profit resulting from higher prize payout.
The property development and investment business incurred higher operating expenses despite the higher property progress billings, while the hotels and resorts business reported lower pre-tax profit from lower revenue.
The improved revenue was mainly due to the group having higher number of draws, with HR Owen reporting higher car sales from new model laucnhes and the property development and investment business achieving higher property progress billings.
Significance : There were non-recurring impairment losses in the value of property, plant and equipment as well as certain investment properties which have caused earnings to be lower.
SapuraKencana Predicts Tough Times Ahead
SapuraKencana Petroleum (SapKen) saw its net profits tumble 61.7 percent to RM129.1 million in the fourth quarter ended 31 January 2015 compared to RM337.2 million previously.
SapKen expects the oil and gas (O&G) industry to remain challenging due to volatility in oil prices. However, they are confident with their continued focus on operational effectiveness, cost optimisation and agrgressive drive to win new businesses worldwide as they have operated and thrived in challenging markets.
The environment for the industry remains challenging in the short to medium term and the group will see pressures in both revenue and margins. However, SapKen sees a positive outlook on the long term, believing that the group had strong fundamentals to navigate this uncertain period.
SapKen’s earnings visibility was excellent, with a 27 percent revenue jump to RM2.4 billion from RM1.9 billion a year ago for 4QFY14, while net profit rose 31.8 percent to RM1.4 billion from RM1.1 billion for financial year ending 31 January 2015.
Significance: Analysts believe that SapKen’s prospects remained bright despite fluctuating oil prices, attributing it to seasonal weaknesses as the monsoon kicked in. With 14 contracts secured worldwide, adding about RM1.5 billion to the group’s order book, its order book remains strong.
http://www.sharesinv.com
