KUALA LUMPUR (Feb 15): Based on corporate announcements and news flow today, companies that will be in focus tomorrow (Thursday, Feb 16) may include: Heineken Malaysia Bhd, Boustead Plantations Bhd, Berjaya Land Bhd (BLand), Gas Malaysia Bhd, RCE Capital Bhd, Wah Seong Corp Bhd, Wong Engineering Corp Bhd and Dagang NeXchange Bhd (DNeX).
Heineken Malaysia Bhd’s net profit for its final quarter of its financial year 2016 came in at RM104.7 million or 34.65 sen per share, with higher revenue from more efficient and effective commercial spending, supported by supply chain cost efficiencies.
Revenue for the three months ended Dec 31, 2016 (3MFY16) was up 10% year-on-year at RM577.52 million, from RM524.55 million, on continued volume growth for its Heineken and Guiness premium brands and stronger overall portfolio performance.
For the full 18MFY16, cumulative net profit was at RM427.26 million, while revenue was at RM2.81 billion, up 4.9% from RM2.68 billion in the full 18 months prior. PBT, it said, was up 11% at RM549.22 million, from RM494.54 million previously.
The group expects 2017 to remain challenging, with global and domestic economic uncertainties, and increased regulatory requirements, like the increase in the legal purchasing age effective Dec 1 this year.
Boustead Plantations Bhd returned to the black in the fourth quarter ended Dec 31, 2016 (4QFY16) on gains from disposal of lands and a subsidiary, and higher palm product prices.
The group reported a net profit of RM50.29 million for the quarter, versus a net loss of RM975,000 a year earlier.
Revenue for 4QFY16 rose 20.4% to RM196.65 million, from RM163.38 million a year earlier.
Boustead Plantation declared a fourth interim dividend of 3.5 sen per share, payable on March 16. This brings total payout for FY16 to 14.5 sen per share.
It said gains realised on the disposal of lands in Kulaijaya, Johor, along with disposal of 76.1% equity interest in Boustead Sedili Sdn Bhd to Permodalan Darul Ta’zim Sdn Bhd for RM60 million, amounted to RM158 million.
For the full year (FY16), Boustead Plantations’ net profit surged 189.8% to RM227.79 million, from RM78.61 million in FY15.
Revenue climbed 15.1% to RM707.88 million, from RM615.2 million.
Moving forward, the group said prospects for the group are positive, as CPO prices are expected to remain high for 1QFY17, largely due to slower production and dwindling palm oil stocks.
Berjaya Land Bhd (BLand) will be selling its entire 70% stake in four-star Long Beach Resort Phu Quoc in Vietnam to Sulyna Hospitality Hotel Restaurant Travel Service Co Ltd for VND333.25 billion (RM65.32 million) cash.
The remaining 30% stake is still held by Le Thi Chi Private Enterprise (25%) and Long Beach J.S. Co (5%).
BLand said the proposed disposal provides an opportunity for the group to realise its investment in Berjaya Long Beach Ltd Liability Co (BLong Beach) — operator of the resort cum spa hotel. This will result in a RM17.2 million gain on sale, based on the unaudited carrying value as at Jan 31, 2017.
BLand plans to use the proceeds for working capital of the group. The proposed disposal is expected to be completed by early 2018.
Gas Malaysia Bhd’s fourth quarter net profit jumped five-fold year-on-year to RM51.86 million, from RM10.27 million, on higher volume of gas sold, tolling fees and assets contributed by customers.
Quarterly revenue was down 10% to RM1.05 billion, from RM1.17 billion a year ago, mainly due to the over-recovery of gas cost this quarter, and a deferment of tariff in the previous quarter.
The decrease in revenue was however offset by the upward revision of natural gas tariff, which took effect on Jan 1, 2016 and July 15, 2016, and higher volume of gas sold in the current quarter.
For the full year ended Dec 31, 2016 (FY16), Gas Malaysia’s net profit grew 56% to RM165.14 million, from RM106.16 million a year ago, as revenue climbed 12% to RM4.05 billion, from RM3.62 billion.
It declared a second interim dividend of four sen per share for the quarter, or RM51.36 million in all, to be paid on March 20.
RCE Capital Bhd's net profit for its third quarter ended Dec 31, 2016 (3QFY17) jumped 67% to RM21.77 million, from RM13 million a year ago, thanks to higher interest and fee income, driven by continuous growth in its consumer financing segment.
Revenue was 40% higher year-on-year at RM57.98 million, compared with RM41.55 million previously.
Cumulatively, RCE Capital’s net profit for the nine-month period (9MFY17) amounted to RM57.7 million, up 77% y-o-y from RM32.66 million, while revenue grew by 41% y-o-y to RM166.08 million, from RM118.08 million.
Wah Seong Corp Bhd has acquired a Germany-based pipe coating firm, mutares Holding-16 AG, for €19.5 million (RM91.5 million), to gain access to the latter's plant for pipe coating for the Nord Stream 2 Project in the Baltic Sea.
The purchase was done by Wah Seong's indirect wholly-owned unit, Wasco Coatings Germany GmbH, which inked the sale and purchase agreement with mutares AG, the parent of mutares Holding-16, on Tuesday.
"The acquisition will enable Wasco Coatings Germany to use the existing plant and machinery in Mukran, Germany, to perform its pipe coating activities for the purposes of the Nord Stream 2 Project," Wah Seong said in a stock exchange filing.
Wong Engineering Corp Bhd plans to develop new sources of revenue by diversifying into construction, property development and trading of construction materials.
The company said it will leverage, among others, on major shareholder and managing director Yong Loy Huat's expertise and experience to tender for construction and property development projects, as well as supply construction materials for these projects.
It noted its existing principal business has been experiencing a competitive business environment, which has affected the group’s revenue and profitability for the past four financial years ended Oct 31, 2013 to 2016.
To faciliate the proposed diversification, two new subsidiaries have been incorporated, namely WEC Construction Sdn Bhd and WEC Development Sdn Bhd, to undertake the group’s construction and property development projects respectively.
"The board anticipates that the construction and property development projects, as well as the trading of construction materials to be undertaken by the group, may contribute more than 25% of the group’s net profit in the future," said Wong Engineering.
Dagang NeXchange Bhd (DNeX)'s indirect subsidiary, MyCall Gateway Sdn Bhd, has been appointed the service provider for the eWork Permit System.
The appointment was made by Bukti Megah Sdn Bhd, which operates the one-stop centre for recruitment and management of foreign workers under the purview of the home ministry.
Bukti Megah will pay a service fee of RM30, subject to 6% goods and services tax, to DNeX for each transaction of the eWork Permit.
The contract will see DNeX providing consultancy, advice and services as the technology partner and solution provider for the eWork Permit System, for the rehiring programme of illegal foreign workers undertaken by Bukti Megah.
The programme involves foreign workers without permits from 15 countries, namely Bangladesh, Cambodia, India, Indonesia, Kazakhstan, Laos, Myanmar, Nepal, Pakistan, the Philippines, Sri Lanka, Thailand, Turkmenistan, Uzbekistan and Vietnam.
http://www.theedgemarkets.com/my/article/heineken-boustead-plantations-bland-gas-malaysia-rce-capital-wah-seong-wong-engineering-and
