KUALA LUMPUR (Nov 29): Based on corporate announcements and news flow today, companies that may be in focus on Tuesday (Nov 30) could include: Melewar Industrial Group Bhd, Ahmad Zaki Resources Bhd, Alliance Financial Group Bhd, Panasonic Manufacturing Malaysia Bhd, Lafarge Malaysia Bhd, Lingkaran Trans Kota Holdings Bhd, Kimlun Corp Bhd, DRB-Hicom Bhd, PBA Holdings Bhd, My EG Services Bhd, Karex Bhd, Mudajaya Group Bhd, Power Root Bhd, Dutch Lady Milk Industries Bhd, Benalec Holdings Bhd, Media Prima Bhd, Allianz Malaysia Bhd, and Sime Darby Property Bhd.
Melewar Industrial Group Bhd posted a net loss of RM8.09 million for the first quarter ended Sept 30, 2016 (1QFY17) compared with a net profit of RM1.48 million a year earlier.
This was despite posting higher revenue of RM187.6 million, versus RM134.78 million a year earlier.
Reviewing its performance, Melewar said yesterday that the loss was mainly due to its engineering subsidiary’s significant pre-tax loss contribution of RM13.5 million for the current quarter (immediate preceding quarter pre-tax loss of RM9.9 million), arising from additional loss-provision of onerous contract.
On its outlook, Melewar said the group’s prospect for the remainder of the current financial year is generally negative, principally due to its engineering segment’s negative contribution.
The group’s shares fell 13 sen or 24.76% at closing today to RM 0.40 for a market capitalization of RM118.4 million.
Ahmad Zaki Resources Bhd (AZRB) saw its net profit jump 93% to RM8.52 million or 1.76 sen per share for the third quarter ended Sept 30, 2016 (3QFY16), from RM4.42 million or 0.92 sen per share in the previous year’s corresponding quarter.
Its revenue for the quarter expanded 53% to RM270.85 million, from RM177.14 million in 3QFY15.
Net profit for the cumulative nine-month period (9MFY16) rose 9% to RM18.93 million, from RM17.44 million a year earlier (9MFY15), on the back of 74% growth in revenue to RM844.28 million, from RM485.76 million.
The group said its order book stood at RM4.1 billion as at the end of 3QFY16, with the group optimistic to further expand its order book, going forward. AZRB said its construction division is expected to register continued strong performance.
Alliance Financial Group Bhd (AFG)’s net profit for the second quarter ended Sept 30, 2016 (2QFY17) dipped to RM132.58 million, versus RM134.66 million a year earlier.
In a filing with Bursa Malaysia today, AFG said its revenue for the quarter fell to RM359.72 million, versus RM365.91 million a year ago, while earnings per share was 8.7 sen compared with 8.8 sen last year.
It declared a first interim dividend of 8.5 sen per share, to be paid on Dec 16.
For the six months ended Sept 30 (1HFY17), AFG’s net profit rose to RM265.05 million, from RM256.59 million a year ago; on the back of revenue of RM723.53 million compared with RM710.25 million in 1HFY16.
“Our SME loans grew 14% and net interest margins improved to 2.22% year-on-year. Quarter-on-quarter, our loan to deposit ratio and loan to fund ratio improved to 84.6% and 81.5% respectively, while our CASA ratio remains steady at 32.9%," said AFG chief executive officer Joel Kornreich.
The group’s total capital ratio remains healthy at 16.8%, versus 13.6% a year ago.
The group declared an interim dividend of 8.5 sen per share, representing a dividend payout ratio of 50%.
Panasonic Manufacturing Malaysia Bhd’s net profit fell 23.62% to RM30.78 million in the second quarter ended Sept 30, 2016 (2QFY17) from RM40.3 million a year ago, on higher operating expenses and lower share of profits from an associated company.
Revenue, however, grew 4.19% to RM292.42 million from RM280.67 million, mainly led by stronger sales in domestic and export markets for fan products.
For the six-month (6MFY17) period, Panasonic’s net profit fell 4.16% to RM69.09 million from RM72.09 million.
Revenue rose 7.73% to RM590.21 million from RM547.87 million.
On its prospects, Panasonic said the global economic and financial landscape remain challenging and will influence the prospects of the Malaysian economy. Shares of
Panasonic fell 72 sen or 2% to RM34.58 today, for a market capitalisation of RM2.1 billion. Year to date, its share price has surged 42.42%.
Lafarge Malaysia Bhd’s net profit for the third quarter ended Sept 30, 2016 (3QFY16) plunged 94.7% to RM3.7 million or 0.4 sen per share from RM70.6 million or 8.3 sen per share a year ago.
The cement maker’s revenue fell 12.5% to RM587.2 million from RM671 million due to lower sales contribution from the cement segment as a result of soft market demand.
For the cumulative nine months (9MFY16), net profit fell 79.4% to RM42.7 million or five sen per share, from RM207.7 million or 24.2 sen per share in 9MFY15. Revenue dipped 5.7% to RM1.9 billion from RM2.03 billion last year.
Going forward, Lafarge said there is continued pricing pressure and stiff competition in the cement industry and it expects this to carry on into the next quarter.
It said prospects for the construction industry in the mid to long-term show a positive trend particularly in key infrastructure development, commercial and residential projects.
Lafarge’s share price closed down 13 sen or 1.75% at RM7.30 today, for a market capitalisation of RM6.2 billion.
Lingkaran Trans Kota Holdings Bhd (Litrak) said net profit rose 51.6% to RM58.93 million or 11.22 sen a share for the second quarter ended Sept 30, 2016 (2QFY17), from RM38.87 million or 7.47 sen a share a year ago.
In a filing with Bursa Malaysia today, the group said revenue rose 38.6% to RM132.38 million from RM95.53 million.
The higher profit and revenue was mainly due to the recognition of scheduled toll rates increase for the Damansara-Puchong Highway (LDP) due on Jan 1, 2016.
Although the toll hike was deferred by the government, Litrak will be compensated for the loss in the revenue.
Litrak shares today closed unchanged at RM5.80, for a market capitalisation of RM3.05 billion.
Kimlun Corp Bhd has bagged a contract worth RM52.8 million to supply and deliver precast concrete tunnel segment linings to the Mass Rapid Transit Line 2 (MRT2) project.
The company said in a filling to Bursa Malaysia today that the contract was awarded to its wholly-owned subsidiary SPC industries Sdn Bhd by MMC Gamuda KVMRT Sdn Bhd.
MMC Gamuda KVMRT is a joint venture company between engineering construction giants MMC Corporation Bhd and Gamuda Bhd.
The estimated completion date is Sept 30, 2019.
"The company does not foresee any exceptional risk other than operational risks associated with the supply contract," said Kimlun.
Kimlun shares fell 8 sen or 3.74% to close at RM2.06 today, with a market capitalisation of RM639.16 million.
DRB-Hicom Bhd posted its fourth straight quarterly loss with a net loss of RM309.63 million or 16.02 sen loss per share in the second financial quarter ended Sept 30, 2016 (2QFY17) compared with a net profit of RM3.9 million or 0.2 sen per share a year ago.
Revenue fell 18.7% to RM2.64 billion in 2QFY17 from RM3.25 billion in 2QFY16.
For the cumulative six months (1HFY17), the group widened its net loss to RM478.94 million from RM15.82 million a year ago, as revenue dropped 17% to RM5.14 billion from RM6.2 billion in 1HFY16.
"In this current volatile and difficult operating environment, the group’s performance for FY17 will continue to remain challenging," the group said in a filing on Bursa Malaysia today.
Shares in DRB-Hicom closed down 2.97% or 3 sen at 98 sen today, with a market capitalisation of RM1.93 billion.
PBA Holdings Bhd saw its net profit jump by 73.31% to RM22.74 million for the third quarter ended Sept 30, 2016 (3QFY16), from RM13.12 million a year ago, mainly driven by recognition of income for transfer of assets from customers.
Earnings per share (EPS) rose to 6.87 sen from 3.96 sen previously.
The group declared its first interim dividend of 1.75 sen with an ex-date of Dec 21. The payment date falls on Jan 13, 2017.
Revenue was flat at RM82.19 million for 3QFY16, only 0.23% lower than RM82.38 million a year ago.
Over the nine-month period (9MFY16), PBA recorded a net profit of RM44.99 million, which was 53.6% higher than the RM29.29 million in the previous corresponding period. Revenue grew 11.28% to RM247.03 million from RM221.98 million in the same period.
PBA's share price fell one sen or 0.87% to close at RM1.14 today, giving it a market capitalisation of RM380.65 million.
My EG Services Bhd's net profit for the first financial quarter ended Sept 30, 2016 (1QFY16), rose 42.2% to RM40.5 million or 1.7 sen per share from RM28.5 million or 1.2 sen per share a year earlier.
Revenue increased 29.4% to RM78.6 million from RM60.7 million, it said in a bourse filing today.
Going forward, My EG expects continued growth in volume of its existing services, especially the online renewal of foreign workers' insurance and foreign worker services, to contribute to its revenue and profit after tax for the financial year ending June 30, 2017 (FY17).
Barring unforeseen circumstances, My EG is cautiously optimistic that its FY17 results would continue to be satisfactory as more Malaysians adopt online government transaction services.
My EG's share price closed four sen or 1.78% lower at RM2.21 today, valuing the company at RM5.3 billion.
Karex Bhd reported a 63.5% fall in net profit to RM8.14 million or 81 sen a share for the first quarter ended Sept 30, 2016 (1QFY17), from RM22.28 million or RM2.22 a year ago, due to lower foreign exchange gain.
Revenue rose 5.2% to RM80.04 million from RM76.09 million largely due to the consolidation of sales from Pasante.
The group proposed a final single tier tax exempt dividend of two sen per share for FY16, payable on Dec 16.
Chief executive officer Goh Miah Kiat said the company is looking forward to integrating its new business in the UK as well as its recent acquisition of the Trustex brand in the United States.
“In short, we are optimistic of our FY2017 performance,” said Goh
Karex shares closed unchanged at five sen each today, giving it a market capitalization of RM2.5 billion.
Mudajaya Group Bhd reported its second consecutive quarter in the red, with a net loss of RM67.59 million for the third quarter ended Sept 30, 2016 (3QFY16) compared to a net profit of RM14.34 million recorded in the same quarter a year earlier.
Meanwhile, its quarterly revenue jumped 58% year-on-year to RM170.49 million from RM108.15 million.
The group said in a filing to Bursa Malaysia that its net loss was exacerbated by equity accounting of associate losses from RKM Powergen Pvt Ltd as well as impairment of assets provided for in the preceding quarter (2QFY16) under its power segment.
For the nine months to Sept 30 (9MFY16), net profit soared 682% to RM137.6 million from RM17.6 million, while cumulative revenue rose 37% to RM518.95 million from RM378.94 million.
Going forward, the group said it is well positioned to benefit from the various mega-infrastructure projects to be launched, including LRT Line 3, new power plants, highways and infrastructure projects.
Mudajaya closed up 1.5 sen or 1.86% at 82 sen, for a market capitalisation of RM441.49 million.
Power Root Bhd's net profit fell 13.57% to RM12.23 million in the second quarter ended Sept 30, 2016 (2QFY17), from RM14.15 million on lower foreign exchange gain.
Revenue rose 18.22% to RM99.32 million from RM84.01 million, mainly attributable to the increase in local and overseas sales from the group's fast moving consumer goods business, according to its Bursa Malaysia filing today.
For the six-month period (1HFY17), Power Root's net profit declined 24.94% to RM21.64 million from RM28.83 million.
Revenue for 1HFY17 grew 5.95% to RM204.39 million from RM192.92 million.
Power Root said it is of the view that the weak consumer sentiment will remain throughout the financial year and competition will continue to be intense.
"The group will continue to grow its export markets, particularly in the Middle East and North Africa region through the development of its existing distribution networks and through the introduction of new products," it added.
Shares of Power Root closed one sen or 0.5% higher at RM2.10, for a market capitalisation of RM627.16 million.
Dutch Lady Milk Industries Bhd's net profit fell 19% year-on-year in its third quarter ended Sept 30, 2016 (3QFY16) as it spent more to support new launches to drive sales, which offset the revenue increase that it saw during the quarter.
Net profit came in at RM40.66 million or 63.5 sen per share, compared with RM49.95 million or 78.1 sen per share a year ago, as it penned in higher cost of sales and advertising and promotion investment to support new launches.
Revenue was up 9% at RM279.59 million compared with RM255.95 million, its bourse filing today showed.
It also declared a single-tier interim dividend of 50 sen per share and a single-tier special interim dividend of 60 sen per share for the financial year ending Dec 31, 2016 (FY16), payable on Dec 29.
For the cumulative nine months (9MFY16), Dutch Lady’s net profit dipped 4% to RM111.25 million or 173.8 sen per share from RM115.76 million or 180.9 sen per share a year ago, though revenue rose 6% to RM776.06 million from RM730.76 million.
Going forward, Dutch Lady said the overall domestic market is expected to remain weak with poor consumer confidence.
Shares of Dutch Lady rose 10 sen or 0.2% to RM55.40 today, for a market capitalisation of RM3.55 billion. Year to date, the counter has risen 16%.
Benalec Holdings Bhd saw a 356% jump in net profit to RM5.62 million or 0.9 sen per share for the first financial quarter ended Sept 30, 2016 (1QFY17), from RM1.23 million or 0.2 sen per share a year ago, on higher revenue.
Revenue for the quarter more than doubled to RM99.66 million, from RM44.04 million in 1QFY16.
In a filing with Bursa Malaysia today, Benalec said the recognition of a land disposal during the current quarter had lifted its topline.
Benalec also saw lower administrative and other expenses in 1QFY17, which had supported profitability.
The group said its reclamation works would contribute a stable stream of revenue of approximately RM314.9 million to be recognised in FY17 and FY18.
Benalec shares fell 0.5 sen or 1.33% to close at 37 sen today, giving it a market capitalisation of RM295.67 million.
Media Prima Bhd was struck by its one-off restructuring expenses for its print media operation in the third quarter ended Sept 30, 2016 (3QFY16), resulting in a net loss of RM109.36 million or 9.86 sen per share, compared with a net profit of RM44.16 million or 3.96 sen a share a year ago.
Nevertheless, the group declared a second interim dividend of two sen per share for the financial year ending Dec 31, 2016 (FY16).
In the cumulative nine months (9MFY16), Media Prima posted a net loss of RM64.19 million or 5.79 sen per share; compared with a net profit of RM106.99 million or 9.65 sen per share a year ago, while revenue fell 8.5% to RM970.37 million, from RM1.06 billion in 9MFY15.
Media Prima’s share price fell three sen or 2.42% to close at RM1.21 today, giving it a market capitalisation of RM1.38 billion.
Allianz Malaysia Bhd saw its net profit for the third financial quarter ended Sept 30, 2016 (3QFY16) drop 7.4% to RM72.68 million or 42.92 sen per share, from RM78.51 million or 46.87 sen per share a year ago, mainly due to lower underwriting profits for its general insurance operations.
In a filing with Bursa Malaysia today, Allianz said revenue rose 1.5% to RM1.15 billion from RM1.13 billion on higher investment income.
For the first nine months of the year (9MFY16), Allianz reported a net profit of RM222.15 million or RM1.30 per share, marginally unchanged compared with the RM222.61 million or RM1.32 per share reported for 9MFY15.
Revenue was 3.5% higher at RM3.47 billion against RM3.35 billion in 9MFY15 due to higher gross earned premiums and investment income.
On its prospects, Allianz said that while the operating environment remains tough, it is confident that its insurance businesses remain resilient.
Sime Darby Property Bhd is targeting RM2.5 billion worth of new property sales in the current financial year, as the company plans more project launches.
Sime Darby Property managing director Datuk Jauhari Hamidi said the RM2.5 billion sales target for the financial year ending June 30, 2017 (FY17) was a 25% increase from RM2 billion in FY16.
For FY17, Jauhari said the company had so far launched 11 projects in 1QFY17. "Sime Darby Property is targeting 20 to 30 more launches in FY17.
"Overall, Sime Darby Property has a take-up rate of about 70%," he said.
Under the deal, Sime Darby Property has appointed Turner as project and construction management consultant for Sime Darby Property's high-rise projects.
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