Stocks In Focus MY (Deleum, Scicom, Tune Ins) – 18/11/14
DELEUM (5132), DELEUM, SCICOM (0099), SCICOM, TUNEINS (5230), TUNEINS,
Deleum 3Q14 Earnings Soar 17%
For the three months ended 30 September, Deleum saw a 17.3 percent rise in earnings to RM16.8 million. The improved results were driven by a 73.1 percent surge in revenue to RM188.3 million as growth was registered across all business segments.
Meanwhile, for the nine-month period, Deleum’s net profit stood at RM42.5 million, up 21.5 percent from the RM35 million achieved a year ago. Its revenue rose to RM453.9 million against RM307.8 million last year.
Despite the stronger performance, the company said it is “cautious” about its prospects amid plunging oil prices in the international market.
Significance: Deleum expects the downward pressure on the oil price to continue. This will in turn have an effect on the level of activities of the oil and gas producers and contractors in Malaysia.
Scicom Eyes Regional Markets
Business outsourcing company Scicom (MSC) is aiming to penetrate new markets in the region. Group chief executive officer Leo Ariyanayakam said that emerging markets have a large scale of training and business outsourcing needs.
That puts the company in a sweet spot as it has the scale, money and experience in business outsourcing to take advantage of these large-scale needs.
Earlier, Scicom inked a memorandum of understanding with Khazanah Nasional and ailing Malaysian Airline System (MAS) to provide 3,500 jobs for MAS employees who would be retrenched.
Significance: Should the company’s plan to penetrate new markets turn out well, it could keep the strong growth momentum by its outsourcing business going. For 1Q15, the segment has seen an 18.4 percent and 28.9 percent growth rate year-on-year for revenue and direct contribution.
Tune Ins Rides On Good Start From New Ventures
For the third quarter ended 30 September, Tune Ins Holdings posted a 10.8 percent rise in operating revenue to RM109.5 million. The growth was contributed by an increase of RM10.4 million in gross earned premiums and an increase of RM0.3 million in investment income.
Higher net claims for the general insurance segment and higher commission incurred mainly for Middle East market in the general reinsurance segment ate into profits. Earnings stayed flat at RM16.2 million.
For 9M14, operating revenue rose 15.1 percent to RM325 million while earnings gained 5.8 percent to RM49.8 million. The stronger performance was aided by good performance from its overseas associates with its Thai associate making a profit of RM4 million and its Middle East North Africa business making a profit of RM0.3 million in 3Q14.
Significance: Tune Ins is confident that the fourth quarter will be its strongest quarter of FY14 with it traditionally being the best quarter for travel insurance. Additionally, the firm anticipates strong profit contribution from both of its associate companies which served as part of its business diversification strategy.
http://www.sharesinv.com
DELEUM (5132), DELEUM, SCICOM (0099), SCICOM, TUNEINS (5230), TUNEINS,
Deleum 3Q14 Earnings Soar 17%
For the three months ended 30 September, Deleum saw a 17.3 percent rise in earnings to RM16.8 million. The improved results were driven by a 73.1 percent surge in revenue to RM188.3 million as growth was registered across all business segments.
Meanwhile, for the nine-month period, Deleum’s net profit stood at RM42.5 million, up 21.5 percent from the RM35 million achieved a year ago. Its revenue rose to RM453.9 million against RM307.8 million last year.
Despite the stronger performance, the company said it is “cautious” about its prospects amid plunging oil prices in the international market.
Significance: Deleum expects the downward pressure on the oil price to continue. This will in turn have an effect on the level of activities of the oil and gas producers and contractors in Malaysia.
Scicom Eyes Regional Markets
Business outsourcing company Scicom (MSC) is aiming to penetrate new markets in the region. Group chief executive officer Leo Ariyanayakam said that emerging markets have a large scale of training and business outsourcing needs.
That puts the company in a sweet spot as it has the scale, money and experience in business outsourcing to take advantage of these large-scale needs.
Earlier, Scicom inked a memorandum of understanding with Khazanah Nasional and ailing Malaysian Airline System (MAS) to provide 3,500 jobs for MAS employees who would be retrenched.
Significance: Should the company’s plan to penetrate new markets turn out well, it could keep the strong growth momentum by its outsourcing business going. For 1Q15, the segment has seen an 18.4 percent and 28.9 percent growth rate year-on-year for revenue and direct contribution.
Tune Ins Rides On Good Start From New Ventures
For the third quarter ended 30 September, Tune Ins Holdings posted a 10.8 percent rise in operating revenue to RM109.5 million. The growth was contributed by an increase of RM10.4 million in gross earned premiums and an increase of RM0.3 million in investment income.
Higher net claims for the general insurance segment and higher commission incurred mainly for Middle East market in the general reinsurance segment ate into profits. Earnings stayed flat at RM16.2 million.
For 9M14, operating revenue rose 15.1 percent to RM325 million while earnings gained 5.8 percent to RM49.8 million. The stronger performance was aided by good performance from its overseas associates with its Thai associate making a profit of RM4 million and its Middle East North Africa business making a profit of RM0.3 million in 3Q14.
Significance: Tune Ins is confident that the fourth quarter will be its strongest quarter of FY14 with it traditionally being the best quarter for travel insurance. Additionally, the firm anticipates strong profit contribution from both of its associate companies which served as part of its business diversification strategy.
http://www.sharesinv.com
