KUALA LUMPUR (May 16): Based on corporate announcements and news flow today, companies that may be in focus tomorrow (Tuesday, May 17) could include the following: TNB, Cahya Mata Sarawak, Century Logistics, KLK, NetX, BToto, BLand, Tien Wah, Signature and Scan Associates.
Tenaga Nasional Bhd's (TNB) planned acquisition of a 30% stake in India's GMR Energy Ltd for US$300 million (about RM1.21 billion) is credit negative as the move will reduce the national utility company's liquidity, Moody's Investors Service said.
In a statement today, the rating agency said the acquisition would also increase TNB's debt, depending on the funding mix for the acquisition.
With the 30% stake in GMR Energy, TNB's foreign presence will include associate and joint-venture investments in Saudi Arabia, United Arab Emirates, Turkey, India and Pakistan, according to Moody's.
Cahya Mata Sarawak Bhd's (CMSB) net profit plunged 98% to RM1.05 million in the first quarter ended March 31, 2016 (1QFY16) from RM57.42 million a year ago, on lower revenue and profit margin and share of substantial losses in associates.
Revenue for 1QFY16 fell 29% to RM346.91 million from RM490.99 million in 1QFY15.
CMSB group managing director Datuk Richard Curtis said the group continues to remain confident that it will achieve an "acceptable performance" for full year ending Dec 31, 2016 (FY16), with performance levels rising again in FY17.
Century Logistics Holdings Bhd's net profit for the first quarter ended March 31, 2016 (1QFY16) dropped 40.3% to RM4.46 million from RM7.47 million a year ago, mainly due to the overall lower activities of the group as a result of overall weakness in consumer sentiments.
Revenue for 1QFY16 also declined 3.3% to RM69.54 million from RM71.92 million in 1QFY15.
Nevertheless, the group declared an interim dividend of one sen per share, payable on June 17.
On the group's prospects, Century Logistics said the logistics sector is expected to remain challenging in 2016.
Kuala Lumpur Kepong Bhd (KLK) saw its net profit for the second financial quarter ended March 31, 2016 (2QFY16) drop 24.3% to RM168.53 million from RM222.54 million a year ago, dragged down by both its plantation and property sectors.
Revenue was RM3.7 billion, up 20.8% from its 2QFY15 revenue of RM3.07 billion.
The group declared an interim dividend of 15 sen per share, payable on Aug 9.
For the first half of FY16 (1HFY16), KLK reported a net profit of RM963.74 million, more than double the RM436.74 million reported in 1HFY15.
Revenue was 30.1% higher at RM8.04 billion compared with RM6.18 billion in 1HFY15.
KLK said outlook for its plantation sector is challenging due to uncertain economic and weather conditions, together with anticipated higher fresh fruit bunches production in the coming months, and narrower discount of palm oil to soybean oil that could bear some negative effects on palm oil prices.
NetX Holdings Bhd is expected to develop electronic payment services for Pakistan-based Rockville Technologies LLC in the Middle East region as its 60%-owned subsidiary, Payallz Sdn Bhd, had entered into a technology collaboration agreement with Rockville for the deployment of the technical expertise and solution of Payallz to develop electronic data capture payment solution for the Pakistan firm.
In a separate statement, NetX said the collaboration provides it an opportunity to tap into the potential market of 7,000 merchants over four years.
Berjaya Group Bhd (BGroup) has disposed of 6 million shares in Berjaya Sports Toto Bhd (BToto) via its 100% equity interest in Bizurai Bijak (M) Sdn Bhd for RM17.7 million cash.
In a separate filing with Bursa Malaysia today, Berjaya Land Bhd (BLand) announced the disposal of 5.2 million shares for RM15.34 million cash.
BLand said the net cash proceeds from the disposals will be used for working capital and to repay bank borrowings.
Printing firm Tien Wah Press Holdings Bhd is proposing to jointly partake in a mixed-use commercial development in Petaling Jaya, Selangor, with Singapore-listed Lum Chang Holdings Ltd.
In a filing with Bursa Malaysia today, Tien Wah said its subsidiary Tien Wah Properties Sdn Bhd (TWPSB) has entered into a shareholders' agreement with Lum Chang's unit Kemensah Holdings Pte Ltd to form and operate a 50:50 joint venture company called Sterling Model Sdn Bhd for the proposed development.
On the same date, TWPSB has also entered into a sale and purchase agreement with Sterling Model to sell the land measuring 13,040 sq m for RM63.75 million.
The land was acquired by TWPSB in 2005. The total net book value of the land as at Dec 31 is RM26.5 million. The expected gain in the consolidated financial statements of Tien Wah is approximately RM29.5 million.
Tien Wah said proceeds from the proposed land sale are intended to be used for the proposed development.
Signature International Bhd saw its net profit fall 62.6% to RM5.01 million for the third financial quarter ended March 31, 2016 (3QFY16) from RM13.39 million a year ago, mainly due to lower project revenue contribution from the kitchen and wardrobe, and glass and aluminium segments.
Revenue for 3QFY16 also declined 37.5% to RM54.69 million from RM87.55 million in 3QFY15.
For the cumulative nine months (9MFY16), the group's net profit dropped 51.8% to RM15.55 million from RM32.25 million in 9MFY15.
Revenue dropped 29.1% to RM154.54 million in 9MFY16 from RM217.97 million in 9MFY15.
On the group's prospects, Signature expects to continue its growth in all business segments locally and internationally.
In a separate filing today, Signature said it has received a compensation sum of RM79.95 million from the Selangor state government following the compulsory acquisition of land measuring 13,506 sq m in Sungai Buloh to build the Damansara-Shah Alam Elevated Expressway.
Scan Associates Bhd director Yeoh Eng Kong has resorted to the courts in a bid to get a receiver and manager appointed for the Guidance Note 3 company.
The company has been embroiled in a boardroom tussle with Yong and former chief executive officer Datuk Norbik Bashah Idris that began late last year.
Companies in the news - TNB, Cahya Mata Sarawak, Century Logistics, KLK, NetX, BToto, BLand, Tien Wah, Signature and Scan Associates
http://www.theedgemarkets.com/my/article/tnb-cahya-mata-sarawak-century-logistics-klk-netx-btoto-bland-tien-wah-signature-and-scan
